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Home My WebLink About05-01-19 Board Packet 1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY May 1, 2019 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF JANUARY 2, 2019 AND SPECIAL BOARD MEETING OF JANUARY 29, 2019 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURIS- DICTION BUT NOT AN ITEM ON TODAY'S AGENDA CONSENT CALENDAR 6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICU- LAR ITEM: a) APPROVE CHANGE ORDER NOS. 4 AND 5 TO THE EXISTING CONSTRUC- TION CONTRACT WITH WIER CONSTRUCTION CORPORATION FOR THE CAMPO ROAD SEWER REPLACEMENT PROJECT IN A TOTAL AMOUNT OF $70,970 b) AWARD TWO (2) PROFESSIONAL SERVICE CONTRACTS FOR AS-NEEDED ENGINEERING DESIGN SERVICES TO NV5, INC. AND RICK ENGINEERING COMPANY, EACH IN AN AMOUNT NOT-TO-EXCEED $600,000. THE TOTAL 2 AMOUNT OF THE TWO (2) CONTRACTS WILL NOT EXCEED $600,000 DUR- ING FISCAL YEARS 2020-2022 (ENDING JUNE 30, 2022) c) AWARD A CONTRACT TO KIRK PAVING IN AN AMOUNT NOT-TO-EXCEED $200,000 FOR AS-NEEDED ASPHALT PAVING SERVICES FROM JULY 1, 2019 THROUGH JUNE 30, 2020 WITH FOUR (4) ONE-YEAR OPTIONS FOR RE- NEWAL AT THE GENERAL MANAGER’S DISCRETION d) ADOPT RESOLUTION NO. 4358 TO UPDATE BOARD POLICY NO. 24, “RE- CRUITMENT, SELECTION, AND EMPLOYMENT POLICY”, AND BOARD POL- ICY NO. 47, “POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIA- TION AND COMPLAINT PROCEDURE”; AND ADOPT ORDINANCE NO. 572 TO UPDATE CHAPTER 5, SECTION 5, OF THE DISTRICT’S CODE OF ORDI- NANCES, “PERSONNEL PRACTICES, EMPLOYER-EMPLOYEE RELATIONS”, DUE TO RECENT LEGISLATIVE CHANGES e) ADOPT RESOLUTION NO. 4360 AMENDING POLICY NO. 27, INVESTMENT POLICY, OF THE DISTRICT’S CODE OF ORDINANCES TO RE-DELEGATE AU- THORITY FOR ALL INVESTMENT RELATED ACTIVITIES TO THE CHIEF FI- NANCIAL OFFICER IN ACCORDANCE WITH GOVERNMENT CODE SECTION 53607 f) ADOPT ORDINANCE NO. 574 AND RESOLUTION NO. 4362 AMENDING AP- PENDIX A WITH THE PROPOSED CHANGES TO VARIOUS FEES, CHARGES, AND DEPOSITS; AMENDING SECTION 33, GENERAL REGULATIONS FOR USE OF WATER METERS; AMENDING SECTION 34, ISSUANCE AND PAY- MENT OF WATER BILLS; AND AMENDING POLICY 5B, RECORDS POLICY AND PROCEDURES ACCESSIBILITY, OF THE DISTRICT’S CODE OF ORDI- NANCES ACTION ITEMS 7. GENERAL MANAGER a) ADOPT RESOLUTION NO. 4363 TO AMEND POLICY NO. 46, MEDIA RELA- TIONS, OF THE BOARD OF DIRECTORS CODE OF ORDINANCE (OTERO) 8. BOARD a) DISCUSS THE 2019 BOARD MEETING CALENDAR INFORMATIONAL ITEMS 9. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: 3 a) REPORT ON THE STATUS OF COMMUNITY OUTREACH RELATED TO THE CAMPO ROAD SEWER REPLACEMENT PROJECT (OTERO) REPORTS 10. GENERAL MANAGER’S REPORT 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. DIRECTORS' REPORTS/REQUESTS 13. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 14. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERN- MENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, SAN DIEGO COUNTY WATER AUTHORITY, ET AL.; CASE NO. 37-2015-00023413 b) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERN- MENT CODE §54956.9] OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL RETURN TO OPEN SESSION 15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS 17. ADJOURNMENT 4 All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability which would require accommodation in order to enable you to partici- pate in this meeting, please call the District Secretary at (619) 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on April 26, 2019 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on April 26, 2019. /s/ Susan Cruz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT, OTAY SERVICE CORPORATION AND THE OTAY WATER DISTRICT FINANCING AUTHORITY January 2, 2019 1. The meeting was called to order by President Smith at 3:34 p.m. 2. ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson Staff Present: General Manager Mark Watton, General Counsel Daniel Shinoff, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Operations Jose Martinez, Assistant Chief of Finance Kevin Koeppen, Assistant Chief of Engineering Dan Martin, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. OATH OF OFFICE CEREMONY District Secretary Susan Cruz administered the oath of office to re-elected Directors Tim Smith and Gary Croucher. Both directors were re-elected in the November 2018 elections to the District’s Divisions 1 and 3 seats respectively. 5. PRESENTATION OF RECOGNITION PLAQUE TO BOARD PRESIDENT Vice President Thompson presented a recognition plaque on behalf of the Board of Directors and staff to Board President Smith in recognition of his service to the District as President of the Board in 2018. Vice President Thompson thanked President Smith for his leadership during the past calendar year. He stated that President Smith not only served on the District’s board, but also on the San Diego County Water Authority (CWA) Board and, through his leadership at CWA, was also appointed to the Metropolitan Water District Board. He thanked Director Smith for all his hard work and accomplishments on behalf of the District. President Smith indicated that he felt that the District accomplished much during the past year and that the accomplishments are due to the staff of the District. He stated that things cannot be accomplished without staff. He thanked each member of the staff for their efforts on behalf of the District. 6. RECESS FOR RECEPTION 2 The board recessed at 3:41 p.m. for a reception to congratulate Directors Croucher and Smith for their election to the Otay WD board of directors. 7. RECONVENE OTAY WATER DISTRICT BOARD MEETING The board reconvened at 3:59 p.m. 8. ELECTION OF BOARD PRESIDENT A motion was made by Director Robak, seconded by Director Croucher and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to elect Director Thompson as President. 9. ELECTION OF VICE PRESIDENT A motion was made by Director Gastelum, seconded by President Thompson and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to elect Director Robak as Vice President. 10. ELECTION OF BOARD TREASURER A motion was made by Director Robak, seconded by President Thompson and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to elect Director Gastelum as Treasurer. 11. APPROVAL OF AGENDA A motion was made by Director Croucher, and seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None 3 Abstain: None Absent: None to approve the agenda. 12. APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF AUGUST 1, 2018 AND SPECIAL BOARD MEETING OF AUGUST 6, 2018 A motion was made by Director Robak, and seconded by Director Gastelum and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the minutes of the regular board meetings of August 1, 2018 and special board meeting of August 6, 2018. 13. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. 14. RECESS THE OTAY WATER DISTRICT BOARD MEETING AND CONVENE THE OTAY SERVICE CORPORATION BOARD MEETING President Thompson recessed the Otay Water District board meeting at 4:04 p.m. and convened the Otay Service Corporation board meeting. 15. ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson Directors Absent: None 16. ELECTION OF OFFICERS A motion was made by Director Robak, seconded by President Thompson and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to elect Director Thompson as President, Director Robak as Vice-President, and Director Gastelum as Treasurer. 17. APPOINTMENT OF OFFICERS 4 A motion was made by Director Smith, seconded by President Thompson and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to appoint General Manager Mark Watton as Executive Director, Chief Financial Officer Joe Beachem as Chief Financial Officer, and District Secretary Susan Cruz as Secretary. 18. ADJOURN OTAY SERVICE CORPORATION BOARD MEETING AND CONVENE THE OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING President Thompson adjourned the Otay Service Corporation board meeting at 4:06 p.m. and convened the Otay Water District Financing Authority board meeting. 19. ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson Directors Absent: None 20. APPOINT OFFICERS OF THE OTAY WATER DISTRICT FINANCING AUTHORITY A motion was made by Director Robak, seconded by President Thompson and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to appoint Director Thompson as President, Director Robak as Vice President, General Manager Watton as Executive Director, Chief Financial Officer Beachem as Treasurer/Auditor, and District Secretary Cruz as Secretary. 21. ADJOURN OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING AND CONVENE THE OTAY WATER DISTRICT BOARD MEETING President Thompson adjourned the Otay District Financing Authority board meeting at 4:07 p.m. and reconvened the Otay Water District board meeting. CONSENT CALENDAR 5 22. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by Director Croucher, seconded by Director Gastelum and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the following consent calendar items: a) APPROVE A $50,000 (FROM $175,000 TO $225,000) INCREASE TO THE CIP R2147 BUDGET AND AWARD A CONSTRUCTION CONTRACT TO JAUREGUI AND CULVER, INC. FOR THE RALPH W. CHAPMAN WATER RECLAMATION FACILITY FUEL SYSTEM IMPROVEMENTS PROJECT IN AN AMOUNT NOT-TO-EXCEED $158,091.58 b) APPROVE CLOSE OUT CHANGE ORDER NO. 2 TO THE EXISTING CONTRACT WITH SIMPSON SANDBLASTING AND SPECIAL COATINGS, INC. IN THE AMOUNT OF $97.23 FOR THE 980-2 RESERVOIR INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT c) ADOPT RESOLUTION NO. 4355 DECLARING THE HILLSIDE DRIVE ASSESSOR’S PARCEL NUMBER (APN 597-041-66), A PORTION OF THE BUENA VISTA AVENUE PARCEL (A PORTION OF APN 579-364- 17), THE JAMACHA BOULEVARD PARCELS (APN 505-672-20 AND A PORTION OF APN 505-672-19) AND THE LA PRESA AVENUE PARCELS (APN 579-031-16 AND APN 579-031-18) COMPRISING A TOTAL OF APPROXIMATELY NINE (9) ACRES OF LAND AS SURPLUS, AND AUTHORIZE THE GENERAL MANAGER TO DISPOSE OF THE SURPLUS PROPERTIES IN ACCORDANCE WITH APPLICABLE STATUTES AND LAWS, AND IN THE BEST INTEREST OF THE DISTRICT ACTION ITEMS 23. ENGINEERING AND OPERATIONS a) ADOPT RESOLUTION NO. 4356 TO APPROVE THE AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT BETWEEN THE CITY OF SAN DIEGO AND THE PARTICIPATING AGENCIES IN THE METROPOLITAN SEWERAGE SYSTEM. THE UPDATED AGREEMENT INCORPORATES THE PURE WATER SAN DIEGO PROGRAM 6 General Manager Watton indicated that due to recently acquired information regarding letters exchanged between Padre Dam MWD and the City of San Diego, staff is requesting that the board consider tabling this item to a future board meeting to provide staff time to interpret how the discussion between Padre Dam MWD and the City of San Diego impacts the Otay WD’s operations. A motion was made by Director Croucher, seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to table this item for discussion at a future meeting. 24. BOARD a) DISCUSSION OF THE 2019 BOARD MEETING CALENDAR There were no changes to the board meeting calendar. INFORMATIONAL ITEM 25. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) FIRST QUARTER UPDATE ON THE FISCAL YEAR 2019 CAPITAL IMPROVEMENT PROGRAM Assistant Chief of Engineering Dan Martin provided an update on the 1st quarter of the District’s Capital Improvement Program (CIP). Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Martin’s report. Mr. Martin responded to questions and comments from members of the board concerning the District’s construction projects. b) INFORMATIONAL UPDATE ON COMMUNICATIONS ITEMS DISCUSSED AT THE AUGUST 22, 2018 PUBLIC RELATIONS, LEGAL AND LEGISLATIVE COMMITTEE MEETING Communications Officer Tenille Otero presented an update on the list of communications objectives that were presented at the August 22, 2018 Public Relations, Legal and Legislative Committee Meeting. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Ms. Otero’s report. The board had no comments or questions. REPORTS 26. GENERAL MANAGER’S REPORT 7 General Manager Watton presented information from his report that included updates regarding new hires, promotions and recruitments; boardroom audio visual system redesign, banking services, Special District Risk Management Authority credits, the FY 2018 - 2019 Comprehensive Annual Financial Report, 2018A water revenue bonds, Pure Water Project, and the coordination of with the County of San Diego on road paving in Rancho San Diego. General Manager Watton and staff responded to comments and inquiries from the board. 27. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported on information from CWA’s last board meeting that included CWA’s award of a $30 million contract for the update of its first aqueduct which was built during World War II, the amendment to the Carlsbad Desalination Project purchasing agreement due to the new intake pipeline, and the review of imported water for the regional emergency storage portfolio to assure the evaluation performed in the 1980’s is still applicable to current water needs. Director Croucher further reported with regard to CWA that its officers will be planning another retreat where discussions will include CWA’s relationship with MWD. He also shared information about CWA’s discussions concerning water portfolio diversification, education/information updates to CWA’s constituents, Intentionally Created Surplus (ICS) storage at Lake Mead, a meeting with Imperial Irrigation District’s board and staff, the possibility of a sub-conveyance study, legislative efforts, and that the Carlsbad Desalination Plant has produced its fortieth billion gallons of water and the water is being stored in the San Vicente Reservoir. 28. DIRECTORS' REPORTS/REQUESTS Director Smith’s report of meetings he attended in November and December 2018 is attached. He noted that his report includes a regional meeting with presidents and general managers of the retail water agencies located in the south and east of San Diego County on November 15, 2018 that was hosted by Helix WD. He reported information from the meeting and stated that he encourages the District’s current president to consider continuing to participate in these meetings during his presidency. Director Robak shared that he attended the swearing-in ceremony for the seating of the newly elected directors of Sweetwater Authority. He also noted that Sweetwater Authority and Helix WD’s boards have elected Steve Castaneda and Dan McMillan respectively as their board Presidents. 29. PRESIDENT’S REPORT President Thompson indicated that one of his jobs as president is to appoint members of the board to the District’s committees. He asked directors to share with him their appointment preferences and once he received their preferences, he would send a draft list of proposed appointments to the board for their 8 comment. A copy of the current board assignments was distributed to board members. 30. ADJOURNMENT With no further business to come before the Board, President Thompson adjourned the meeting at 5:00 p.m. ___________________________________ President ATTEST: District Secretary 9 Tim Smith Director Report January 2, 2019 Board Meeting # Date Meeting Purpose 1 1-Nov Chula Vista Interagency Task Force Discussed matters common to the city and agencies (OWD, Sweetwater Authority and City of Chula Vista) 2 2-Nov Board Agenda Briefing Met with General Manager Watton and General Counsel Shinoff to review items that will be presented at the November Board Meeting 3 7-Nov OWD Regular Board Meeting Monthly Board Meeting 4 15-Nov Regional Presidents and GMs Luncheon Meeting to share new ideas and provide an update on things occurring at each agency. Attended by: OWD, Helix WD, Padre Dam MWD, Sweetwater Authority and Lakeside WD 5 29-Nov Committee Agenda Briefing Met w/ General Manager Watton to review items that will be presented at the December committee meetings 6 30-Nov CWA Matters Meeting Met with Director Croucher and General Manager Watton to discuss CWA matters 7 3-Dec Quarterly Meeting with OWD GM Met with GM to receive an update on projects or items impacting Division 1 8 4-Dec EO&WR Committee Reviewed and made recommendations on items that will be presented at the January board meeting 9 4-Dec PRL&L Committee Reviewed and made recommendations on items that will be presented at the January board meeting 10 17-Dec Board Agenda Briefing Met with General Manager Watton and General Counsel Shinoff to review items that will be presented at the January Board Meeting 1 MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT January 29, 2019 1. The meeting was called to order by President Thompson at 8:29 a.m. 2. ROLL CALL Directors Present: Gastelum, Robak and Smith Directors Absent: Director Croucher (arrived at the Salt Creek Golf Course at 9:31 a.m.) and Director Thompson (out-of-town on prescheduled vacation) Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff, Chief Financial Officer Joe Beachem, Chief of Operations Pedro Porras, Chief of Engineering Rod Posada, Assistant Chief of Finance Kevin Koeppen, Assistant Chief of Engineering Dan Martin, Assistant Chief of Operation Jose Martinez, Engineering Manager Bob Kennedy, Field Services Manager Brandon DiPietro, Environmental Compliance Specialist Lisa-Coburn-Boyd, Communications Officer Tenille Otero, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Smith, seconded by Director Gastelum and carried with the following vote: Ayes: Directors Gastelum, Robak and Smith Noes: None Abstain: None Absent: Directors Croucher and Thompson to approve the agenda. 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. 6. DISCUSSION AND TOUR OF THE FOLLOWING DISTRICT FACILITIES: SALT CREEK PROPERTY LOCATED AT 525 HUNTE PARKWAY, THE 980-1 AND 2 RESERVOIRS AND THE 711-3 RESERVOIR 2 Vice President Robak indicated that the board and staff would be leaving the District to tour the District’s facilities that includes the Salt Creek property (525 Hunte Parkway), the 980-1 and 2 reservoirs and the 711-3 reservoir. The board and staff left the boardroom at 9:08 a.m. The tour group arrived at the Salt Creek Property at 9:31 a.m. Director Croucher was at the site. Staff reviewed on a map of the Salt Creek Property (see attached copy) the areas that will be sold and retained. Staff also indicated where the 980-1 and 2 and the 711-3 reservoirs, the landfill, and the San Diego Gas and Electric easement were located on the property. The group first visited the landfill. The landfill is designated as Class 3 and can only be used for disposing dirt. The District utilizes the site to dispose of excess excavated dirt from District construction projects. They then visited the 980-1 and 2 and 711-3 reservoirs. The 980-1 & 2 reservoirs were completed in 1989 and can store up to five million gallons. The 711-3 reservoir was constructed in 2008 and stores16 million gallons. Staff responded to comments and questions from the board. Director Croucher left at 10:49 a.m. The board requested for the February 6, 2019 board meeting that staff indicate on the map of the Salt Creek Golf Course the percentage of the property that is proposed to be sold. The board left the Salt Creek Golf Course at 11:27 a.m. to return to the District’s office. 7. ADJOURNMENT Board members and staff returned to the District’s boardroom at 11:52 a.m. and with no further business to come before the Board, Vice President Robak adjourned the meeting at 11:52 p.m. ___________________________________ President ATTEST: District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 SUBMITTED BY: Dan Martin Assistant Chief of Engineering PROJECT: S2024-001103 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Approval of Change Order Nos. 4 and 5 to the Construction Contract with Wier Construction Corporation for the Campo Road Sewer Replacement Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve: o Change Order No. 4 to the existing construction contract with Wier Construction Corporation (Wier Construction) in the amount of $70,970.00 for the Campo Road Sewer Replacement Project. o Change Order No. 5 to the existing construction contract with Wier Construction in the amount of $0.00 for the Campo Road Sewer Replacement Project. See Exhibit A for Project location. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No. 4 in the amount of $70,970.00 and to execute Change Order No. 5 in the amount of $0.00 to the construction contract with Wier Construction for the Campo Road Sewer Replacement Project. 2 ANALYSIS: The District’s Campo Road Sewer Replacement project is replacing an existing 10-inch sewer pipeline, located within and south of Campo Road between Avocado Boulevard and Singer Lane, which is undersized to handle current sewer flows. To accommodate current and future flows, approximately 7,420 linear feet of 15-inch gravity sewer main will be installed to replace the existing 9,225 feet of 10-inch sewer main. The eastern terminus of the new 15-inch sewer main will be located at the intersection of Avocado Boulevard/Rancho San Diego Village Shopping Center driveway. The new main’s western terminus will be located in the Rancho San Diego Towne Center where it will connect to the existing 27-inch sewer main within the shopping center’s parking lot. Sewer laterals stemming from the existing pipe will be reconnected to the proposed new pipeline. The majority of the pipeline will be installed with open trench construction except in two (2) locations where horizontal auger boring will be used for crossing Campo Road. These two (2) locations are Campo Road east of Via Mercado, and at the intersection of Campo Road/Jamacha Boulevard. The existing sewer will be abandoned in place with the exception of a 210-feet long section of aboveground pipeline and seven (7) supporting pillars that will be removed. At the May 3, 2017 Board Meeting, the Board awarded a construction contract in the amount of $7,816,645.95 to Wier Construction. Since the award of the construction contract, there have been three (3) change orders approved for the contract. Change Order No. 1, which totaled $74,266.00, compensated the contractor for a realignment of the planned sewer main due to a utility conflict. This Change Order also increased the quantity for rock removal and disposal due to rock encountered on the Project and provided for additional Class 2 base due to field conditions at the Rancho San Diego Town Center parking lot. Lastly, this Change Order issued a credit for modifications to traffic control requirements. In total, Change Order No. 1 added 46 days to the contract as a result of the added work. Change Order No. 2 provided for modifications to the planned grade of the jack and bore pipe at the Campo Road West Bore crossing, which is located east of Via Mercado. This change also included the removal of the internal beading, which is generated during the field construction of the fusible pipe. This was a no-cost change and did not include adjustments to contract time. 3 Board approved Change order No. 3, which totaled $156,192.12, compensated the contractor for realignment of the East Bore launch pit due to a communications utility conflict with the shoring limits indicated on the contract plans. This Change Order also included addressing other unmarked utilities found to be in conflict with the planned sewer installation. Lastly, Change Order No. 3 increased bid item quantity for rock removal and disposal due to rock encountered on the Project. Change Order No. 3 added 29 days to the contract as a result of the added work. Change order No. 4, which is the subject of this staff report, provides for the following six (6) items: 1. Removal and disposal of an unmarked abandoned 24-inch storm drain. 2. Removal and disposal of an unmarked abandoned storm drain slot drain and concrete encasement. 3. Additional trench excavation and backfill associated with field conditions of the existing sewer alignment being different than the contract plans. 4. Removal and replacement of a Caltrans fiber optic traffic signal interconnection conduit and cable not shown on the plans. 5. Granting contract time in accordance with the contract due to weather impacts. 6. Granting contract time for delays associated with unforeseen rock encountered on the project. In total, the cost associated with the items in Change Order No. 4 is $70,970.00. Time impacts associated with this change are also provided in Exhibit B. In total, the fifty-three (53) additional days added to the contract will result in a revised total contract duration of 758 calendar days. Change Order No. 5, which is also the subject of this staff report is for a contractor requested change to the horizontal and vertical alignment of the planned East Bore sewer main located at the intersection of Jamacha Boulevard and Campo Road. The planned work at the East Bore location involved the jack and bore installation of a 30-inch steel casing from the jacking pit located at the north-east corner of the intersection diagonally across the intersection to the receiving pit located on the south-west corner of the intersection. The 30-inch steel casing will contain the District’s new 15-inch sewer main. The resulting installation of the 30-inch steel casing by the subcontractor performing the work deviated from the planned construction both horizontally and vertically. While the subcontractor’s means and methods resulted in a longer bore (addition of approximately 90-linear feet), the resulting horizontal and 4 vertical alignments for the new 15-inch sewer main in the casing are within the Project’s design criteria and tolerances. District staff notified the contractor that the District is willing to consider acceptance of the changed alignment at no additional cost and with no additional time added to the construction contract. Change Order No. 5 (Exhibit C) memorializes the revised alignment to the construction contract with no additional construction cost or time granted. Change Order No. 5 also states that there will be no claims allowed as part of this change. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The Fiscal Year 2019 budget for CIP S2024 is $10,530,000. Total expenditures, plus outstanding commitments and forecast, including the contract change orders, are $10,529,644. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget for CIP S2024 is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 50% of the funding is available from the Betterment ID 18 fund and 50% of the funding is available from the Replacement Fund for CIP S2024. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the District’s Vision, “To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices.” LEGAL IMPACT: None. DM:jf P:\WORKING\CIP S2024 Campo Road Sewer Replacement\Staff Reports\BD 05-01-19\BD 05-01-19, Staff Report Campo Road Sewer Replacement - CO Nos. 4 and 5.docx Attachments: Attachment A – Committee Action Attachment B – S2024 Budget Detail Exhibit A – Project Location Map Exhibit B – Change Order No. 4 Exhibit C – Change Order No. 5 ATTACHMENT A SUBJECT/PROJECT: S2024-001103 Approval of Change Order Nos. 4 and 5 to the Construction Contract with Wier Construction Corporation for the Campo Road Sewer Replacement Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 16, 2019 and the following comments were made: • After reviewing the staff report with the Committee, staff recommended that the Board approve: o Change Order No. 4 to the existing construction contract with Wier Construction Corporation (Wier Construction) in the amount of $70,970.00 for the Campo Road Sewer Replacement Project; and o Change Order No. 5 to the existing construction contract with Wier Construction in the amount of $0.00 for the Campo Road Sewer Replacement Project. • Staff noted that one of the major goals of this project is to relocate the sewer main from the existing location within an environmentally sensitive habitat area to the Campo Road area where it will be more maintainable and operable for staff. • Staff discussed Change Order Nos. 4 and 5, which are detailed on pages 3 and 4 of the staff report. • It was noted that Change Order No. 5 (Exhibit C) memorializes the revised alignment to the construction contract with no additional construction cost or time granted. It also states that there will be no claims allowed as part of this change. • In response to a question from the Committee, staff stated that the anticipated completion date for the relocation of the sewer pipeline within Campo Road along with removal of temporary k- rail is June 2019. To close out the project, three items will need to be completed in fall 2019 after the bird breeding season in the adjacent environmentally sensitive area ends. These items are as follows: o Final paving of the trench line located on the Campo Road eastbound shoulder of the project. This is anticipated to be completed in late September/early October 2019; o Final work on the abandonment of the existing sewer main; and o Installation of 600 linier feet of fiber optic conduit. • In response to an inquiry from the Committee with regards to the total of 128 days added to the contract for Change Orders 1 through 5, staff stated that this project was anticipated to complete in two (2) years. Staff indicated that in those two years, the contractor experienced two weather seasons and lost approximately two (2) months of time. The contractor also encountered unforeseen items such as utility conflicts and the removal and disposal of rock within the planned sewer excavation. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as a consent item. ATTACHMENT B – S2024 Budget Detail SUBJECT/PROJECT: S2024-001103 Approval of Change Order Nos. 4 and 5 to the Construction Contract with Wier Construction Corporation for the Campo Road Sewer Replacement Project 4/3/2019 Budget 10,530,000 Planning Consultant Contracts 20,020 20,020 - 20,020 AEGIS ENGINEERING MGMT INC 2,119 2,119 - 2,119 HELIX ENVIRONMNTL PLANNING INC Regulatory Agency Fees 2,260 2,260 - 2,260 COUNTY OF SAN DIEGO 894 894 - 894 STATE WATER RESOURCES 132 132 - 132 US BANK Service Contracts 43 43 - 43 EAST COUNTY GAZETTE 162 162 - 162 SAN DIEGO DAILY TRANSCRIPT Standard Salaries 147,748 147,748 - 147,748 Total Planning 173,377 173,377 - 173,377 Design 001102 Consultant Contracts 9,315 9,315 - 9,315 WATER SYSTEMS CONSULTING INC 4,025 4,025 - 4,025 MICHAEL D KEAGY REAL ESTATE 3,508 3,508 - 3,508 NINYO & MOORE GEOTECHNICAL AND 691,074 691,074 - 691,074 RICK ENGINEERING COMPANY 735 735 - 735 AIRX UTILITY SURVEYORS INC Professional Legal Fees 182 182 - 182 STUTZ ARTIANO SHINOFF 1,910 1,910 - 1,910 ARTIANO SHINOFF Regulatory Agency Fees 956 956 - 956 COUNTY OF SAN DIEGO Service Contracts 158 158 - 158 SAN DIEGO DAILY TRANSCRIPT 62 62 - 62 DAILY JOURNAL CORPORATION Settlements 190,000 190,000 - 190,000 VESTAR CALIFORNIA XVII LLC 144,950 144,950 - 144,950 GRI-REGENCY LLC Standard Salaries 299,842 299,842 - 299,842 Total Design 1,346,718 1,346,718 - 1,346,718 Construction Construction Contracts 402,355 300,855 101,500 402,355 WESTERN ALLIANCE BANK 7,644,749 5,716,253 1,928,495 7,644,749 WIER CONSTRUCTION CORP 70,970 - 70,970 70,970 Change Order No. 4 - - - - Change Order No. 5 Consultant Contracts 8,444 8,444 - 8,444 AIRX UTILITY SURVEYORS INC 17,400 17,400 - 17,400 ALYSON CONSULTING 8,112 8,112 - 8,112 HUNSAKER & ASSOCIATES 116,461 83,311 33,150 116,461 RICK ENGINEERING COMPANY 12,258 12,258 - 12,258 NINYO & MOORE GEOTECHNICAL AND 418,531 348,858 69,673 418,531 VALLEY CONSTRUCTION MANAGEMENT Regulatory Agency Fees 9,000 6,125 2,875 9,000 COUNTY OF SAN DIEGO 20,000 - 20,000 20,000 CALTRANS PERMIT FEE Service Contracts 3,270 3,270 - 3,270 MAYER REPROGRAPHICS INC Standard Salaries 278,000 252,020 25,980 278,000 - - - - Total Construction 9,009,550 6,756,906 2,252,644 9,009,550 Grand Total 10,529,644 8,277,001 2,252,644 10,529,644 Vendor/Comments Otay Water District S2024-Campo Road Sewer Main Replacement Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost SKYLINEWESLEYANCHURCH ?Ë AV O C A D O B L V D FURY LANE JAMA C H A B L V D JAMAC H A R D CUYAMACACOLLEGE C A M P O R D C A M P O R D ?Ë PROJECTALIGNMENT OWDREGULATORYSITE Ralph W. ChapmanWater ReclamationFacility SINGER L N RANCHOSAN DIEGOVILLAGE RANCHOSAN DIEGOTOWNECENTER Existing 10-inchGravity Sewer tobe Replaced VICINITY MAP PROJECT SITE NTS DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä;&s ?p ?Ë !\ OTAY WATER DISTRICTCAMPO ROAD SEWER MAIN REPLACEMENTLOCATION MAP EXHIBIT A CIP S2024 0 1,000500 Feet F F P: \ W O R K I N G \ C I P S 2 0 2 4 C a m p o R o a d S e w e r R e p l a c e m e n t \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A , L o c a t i o n M a p , O c t 2 0 1 5 . m x d Legend Proposed 15-Inch Sewer Main Alignment Existing 10-inch Gravity Sewer to be Replaced Existing Sewer Mains Description Increase Decrease Time Item No. 1 – An unmarked abandoned 24-inch storm drain not shown on plans was found to conflict with the alignment of the sewer at Sta. 17+29 and required removal. PCO #12 $10,750.60 2 Item No. 2 – An unmarked abandoned storm drain encasement not shown on plans was encountered at Sta. 85+05 that required removal. PCO #13 $12,951.71 3 Item No. 3– Additional work due to existing sewer not following the planned alignment between Sta. 85+00 and 84+40. PCO #14 $12,020.00 2 Item No. 4 – Relocate conflicting Caltrans fiber optic traffic signal interconnection conduit between Sta. 36+60 and 40+50. PCO #15 $35,247.69 1 Item No. 5 - Delays due to inclement weather. $0.00 28 Item No. 6 - Delays due to rock encountered per Bid Item #43-Rock Removal and Disposal. $0.00 17 Subtotal Amount: $70,970.00 53 Total Net Change Order Amount: $70,970.00 Reason: Item No. 1: During sewer main installation, an unmarked 24-inch storm drain not shown on plans was found to conflict with the sewer alignment. Additional work was required to determine it was abandoned and remove the conflicting portion to allow the sewer main installation. See RFI #72 and PCO #12 for details. Two (2) days were added for this work. Item No. 2: During sewer main installation, an unmarked, abandoned storm drain slot drain encased in concrete not shown on plans was found to conflict with the sewer main alignment and required removal. See RFI #74 and PCO #13 for details. Three (3) days were added for this work. Item No. 3: During sewer main installation that followed the existing sewer, the existing sewer alignment was found to be not per plan and to vary as much as 6-feet from the plan alignment. This result in increased trench width, additional excavation and backfill for the construction of the new sewer. See RFI #75 and PCO #14 for details. Two (2) days were added for this work. Item No. 4: During sewer installation, a Caltrans fiber optic traffic signal interconnection conduit not shown on plans was found to conflict with the sewer alignment and required relocation. See RFI #80 and PCO #15 for details. One (1) day was added for this work. Item No. 5: The contractor was prevented from working twenty-eight (28) days due to inclement weather on the following dates: 12/20/17, 12/21/17, 1/8/18, 1/9/18, 1/11/18, 2/11/18, 2/26/18, 3/13/18, 3/14/18, 3/22/18, 10/14/18, 11/28/18, 11/29/18, 12/5/18, 12/6/18, 1/14/19, 1/15/19, 1/16/19, 1/17/19, 1/31/19, 2/3/19, 2/4/19, 2/5/19, 2/13/19, 2/14/19, 2/19/19, 2/20/19, and 2/21/19. Item No. 6: The contractor was delayed seventeen (17) days due to rock encountered per Bid Item #43-Rock Removal and on the following dates: 9/16/18, 9/25/18, 10/18/18, 12/11/18, 12/12/18, 12/13/18, 12/16/18, 12/17/18, 12/18/18, 1/10/19, 1/20/19, 1/21/19, 1/22/19, 1/23/19, 1/28/19, 1/29/19 and 1/30/19. Contact/P.O. Change Order No. 4 Page 2 of 2 OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA. 91978, (619) 670-2222 CONTRACT/P.O. CHANGE ORDER No. 5 PROJECT/ITEM: Campo Road Sewer Replacement Project CONTRACTOR/VENDOR: Wier Construction Corporation REF.CIP No.: S2024-001103 APPROVED BY: General Manager REF. P.O. No: 719982 DATE: 4/4/19 _________________________________________________________________________________________________ DESCRIPTION: 1. Revise the horizontal and vertical alignment between MH 14 (Sta. 63+41), MH 13 (Sta. 59+26/56+26) and MH 12A (Sta. 56+26) per revised Drawings C-6 and C-7. 2. Remove the internal joint bead resulting from the construction of the fusible C900 PVC pipe between MH 13 (Sta. 59+26/56+26) and Sta. 60+06 (approximately 80 LF) to construct a smooth surface on the inside wall of the pipe. 3. CCTV inspection of the fusible C900 PVC pipe is required before and after placing grout in the annular space located between the fusible C900 PVC pipe and steel casing. Contractor to provide a copy of the CCTV inspection to the District for review and approval prior to placing grout in the annular space. 4. Total compensation for sewer main installed as part of this change order between MH 14 and MH 12A will be made in accordance with the original contract horizontal and vertical plan lengths and unit prices (except as modified by Change Order No. 3). 5. No contractor claims for additional compensation or time are allowed for any work related to changed contract work between MH #14 and MH #12A. This work includes but is not limited to shaft construction, shaft removal, horizontal auger boring, carrier pipe installation, annular space and contact grouting, manhole installation, storm drain removal and replacement, adjacent pipe installation and any other related work. REASON: Item No. 1-5: The installation of the 30-inch steel casing between MH #14 and MH #13 via Horizontal Auger Boring was not completed within the horizontal and vertical alignment tolerances as required by the contract documents. This also affected the slope of the pipe between MH 13 and MH 12A. Based on a review of the hydraulic requirements of the system, the final horizontal and vertical alignment is determined to be acceptable to the District. The work associated with this Contractor requested change order will be performed at no additional cost to the District and no increase in the contract duration. CIP S2024 - Campo Road Sewer Replacement Project Project: S2024 Consultant/Contractor:Wier Construction Corporation Subproject: 001103 APPROVED C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O. 1 $74,266.00 GM 1/12/2018 Utility Conflict per RFI #10 and PCO #1A, Traffic control credit per RFI #4 and PCO #2. Base material at RSD Towne Center parking lot. Rock removal and disposal increase in quantity. Add 46 days. Contractor 2 $0.00 RP 4/5/2018 Revise sewer slope between MH #7 and MH# 8 to a minimum of 1%.Contractor 3 $156,192.12 Board 11/8/2018 East Bore Pit Realignment PCO #3, Cut and Cap Irrigation PCO #5, Sewer Main Realignment MH #18A to MH 17A PCO #7, Remove abandoned utilities PCO #8, Repair Offset Pipe at MH #20 PCO #9, and Increase Bid Item No. 43 Rock Removal and Disposal. Contractor 4 $70,970.00 Board Unmarked 24-inch storm drain, abandoned storm drain along SR 94, Increased excavation due to existing sewer alignment, removal and replacement of Caltrans traffic signal interconnect conduit and fiber optic cable, weather days. Contractor 5 $0.00 Board No cost/time contractor requested change to revise the horizontal and vertical alignment for the sewer main between MH 12A and MH 14 due to East Pit Jack and Bore. Contractor 6 7 8 9 10 11 12 13 14 15 Total C.O.'s To Date: $301,428.12 3.9% Original Contract Amount:$7,816,645.95 Current Contract Amount:$8,118,074.07 Month Net C.O.$ Limit Authorization Absolute C.O.$ C.O. % 4/19 $70,970.00 $2,000 Insp $70,970.00 0.9% $10,000 PM/Sr. Engr. 0.0% $20,000 DivM 0.0% $25,000 Chief 0.0% $75,000 GM 0.0% >$75000 Board 0.0% CHANGE ORDER LOG P:\WORKING\CIP S2024 Campo Road Sewer Replacement\Construction\Change Orders\S2024_COLOG_190408 1 4/8/2019 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 SUBMITTED BY: Kevin Cameron Associate Civil Engineer PROJECT: Various DIV. NO. All APPROVED BY: Bob Kennedy, Engineering Manager Dan Martin, Assistant Chief, Engineering Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Award of Two (2) Professional Services Contracts for As-Needed Engineering Design Services to NV5, Inc. and Rick Engineering Company for Fiscal Years 2020-2022 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award two (2) professional service contracts for As-Needed Engineering Design Services and to authorize the General Manager to execute two agreements with NV5, Inc. (NV5) and Rick Engineering Company (Rick Engineering), each in an amount not-to-exceed $600,000. The total amount of the two (2) contracts will not exceed $600,000 during Fiscal Years 2020-2022 (ending June 30, 2022). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into two (2) professional services contracts for As-Needed Engineering Design Services with NV5 and Rick Engineering, with each contract in an amount not-to-exceed $600,000 for Fiscal Years 2020-2022. The total amount of the two (2) contracts will not exceed $600,000 during Fiscal Years 2020-2022. 2 ANALYSIS: The District will require the services of two (2) professional engineering design consultants on an as-needed basis in support of Capital Improvement Program (CIP) projects for Fiscal Years 2020- 2022. It is more efficient and cost effective to issue as-needed contracts for engineering design, which will provide the District with the ability to obtain consulting services in a timely and efficient manner. This concept has also been used in the past for other disciplines, such as construction management, geotechnical, electrical, and environmental services. The District staff will identify tasks and request cost proposals from the two (2) consultants during the contract period. Each consultant will prepare a detailed scope of work, schedule, and fee for each task order, with the District evaluating the proposals based upon qualifications and cost. The District will enter into negotiations with the consultants, selecting the proposal that has the best value for the District. Upon written task order authorization from the District, the selected consultant shall then proceed with the project, as described in the scope of work. The CIP projects that are estimated to require engineering design services for Fiscal Years 2020-2022, at this time, are listed below: CIP DESCRIPTION ESTIMATED COST P2174 1090-1 Pump Station Replacement $75,000 P2405 624/340 PRSs Paseo Ranchero and Otay Valley Road $25,000 P2453 SR-11 Utility Relocations $50,000 P2553 Heritage Road Bridge Replacement and Utility Relocation $175,000 P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande $125,000 P2635 Vista Diego Hydropneumatic Tank Replacement $35,000 P2641 Rancho Jamul Hydropneumatic Tank Replacement $35,000 S2049 Calavo Basin Sewer Rehabilitation - Phase 2 $50,000 TOTAL: $570,000 3 Staff believes that a $600,000 cap on each of the As-Needed Engineering Design Services contracts is adequate, while still providing a buffer for any unforeseen tasks. Fees for professional services will be charged to the CIP projects. The As-Needed Engineering Design Services contracts do not commit the District to any expenditure until a task order is approved to perform the work. The District does not guarantee work to the consultants, nor does the District guarantee to the consultants that it will expend all the funds authorized by the contract on professional services. The District solicited engineering design services by placing an advertisement on the Otay Water District’s website and using BidSync, the District’s online bid solicitation website on January 22, 2019. The advertisement was also placed in the Daily Transcript. Eighteen (18) firms submitted a Letter of Interest and a Statement of Qualifications. The Request for Proposal (RFP) for Engineering Design Services was sent to all eighteen (18) firms resulting in nine (9) proposals received on February 27, 2019. They are as follows: • Brandow & Johnston (Newport Beach, CA) • Carollo (San Diego, CA) • Hazen and Sawyer (San Diego, CA) • Horrocks Engineers (San Diego, CA) • HydroScience Engineers (Carlsbad, CA) • Lee & Ro (San Diego, CA) • NV5, Inc. (San Diego, CA) • Rick Engineering Company (San Diego, CA) • Wood Rodgers (San Diego, CA) Firms that submitted Letters of Interest (LOI), but did not propose, were Engineering Resources of Southern California, Kennedy Jenks, Michael Baker, MurraySmith, Psomas, and West & Associates Engineering. Beyaz & Patel, Peterson Structural Engineers, and Brady & Associates submitted LOI’s, but elected to be sub-consultants on various proposals listed above. In accordance with the District’s Policy 21, staff evaluated and scored all written proposals and interviewed the top five (5) firms on March 21, 2019. NV5 and Rick Engineering received the highest scores based on their experience, understanding of the scope of work, proposed method to accomplish the work, and their composite hourly rate. Both consultants have provided similar services to the District in the past as well as to other local agencies and are readily available to provide the services required. A summary of the complete evaluation is shown in Attachment B. 4 NV5 and Rick Engineering submitted the Company Background Questionnaire, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds for these contracts will be expended on a variety of projects, as previously noted above. These contracts are for as- needed professional services based on the District's need and schedule, and expenditures will not be made until a task order is approved by the District for the consultant's services on a specific CIP project. Based on a review of the financial budget, the Project Manager anticipates that the budgets will be sufficient to support the professional as-needed consulting services required for the CIP projects noted above. The Finance Department has determined that the funds to cover these contracts will be available as budgeted for these projects. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." GRANTS/LOANS: Not applicable. LEGAL IMPACT: None. KC/BK:jf P:\WORKING\As Needed Services\Engineering Design\FY 2020-2022\Staff Report\BD_05-01-2019_Staff Report_Award of As-Needed Engineering Design Services (KC-BK).docx Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: Various Award of Two (2) Professional Services Contracts for As- Needed Engineering Design Services to NV5, Inc. and Rick Engineering Company for Fiscal Years 2020-2022 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 16, 2019 and the following comments were made: • Staff recommended that the Board award two (2) professional service contracts for As-Needed Engineering Design Services with NV5, Inc. (NV5) and Rick Engineering Company (Rick Engineering), each in an amount not-to-exceed $600,000. The total amount of the two (2) contracts will not exceed $600,000 during Fiscal Years 2020-2022 (ending June 30, 2022). • The Committee inquired about staffs’ in-house engineering design capabilities for CIP projects. Staff stated that it would depend on the workload, specialty and needs of each project. There are staff members who provide in-house engineering design services for the District along with project management over more complex projects. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as a consent item. Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Fee*Consultant's Commitment to DBE TOTAL - WRITTEN Additional Creativity and Insight Strength of Project Manager Presentation and Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL TOTAL SCORE WITHOUT FEE TOTAL SCORE 30 25 30 85 85 15 Y/N 100 15 15 10 10 50 50 135 150 Poor/Good/ Excellent Jose Martinez 20 18 20 58 Brandon DiPietro 22 20 22 64 Ming Zhao 23 18 19 60 Eid Fakhouri 20 19 19 58 Kevin Cameron 23 19 22 64 Jose Martinez 26 22 26 74 11 11 8 6 36 Brandon DiPietro 29 23 28 80 13 12 8 7 40 Ming Zhao 27 21 26 74 10 10 7 7 34 Eid Fakhouri 25 23 26 74 13 9 8 8 38 Kevin Cameron 27 23 27 77 12 12 8 8 40 Jose Martinez 24 20 22 66 Brandon DiPietro 25 20 23 68 Ming Zhao 26 20 24 70 Eid Fakhouri 24 20 22 66 Kevin Cameron 25 21 25 71 Jose Martinez 22 21 22 65 Brandon DiPietro 26 21 24 71 Ming Zhao 25 18 23 66 Eid Fakhouri 24 21 20 65 Kevin Cameron 24 22 24 70 Jose Martinez 24 23 24 71 11 11 8 7 37 Brandon DiPietro 26 20 23 69 11 12 7 6 36 Ming Zhao 26 20 25 71 12 12 7 7 38 Eid Fakhouri 25 22 24 71 11 11 7 7 36 Kevin Cameron 25 22 25 72 11 12 7 6 36 Jose Martinez 23 19 20 62 Brandon DiPietro 25 20 23 68 Ming Zhao 24 21 23 68 Eid Fakhouri 23 19 20 62 Kevin Cameron 24 21 23 68 Jose Martinez 25 23 24 72 13 13 8 9 43 Brandon DiPietro 28 23 26 77 14 14 8 8 44 Ming Zhao 27 23 26 76 14 13 8 9 44 Eid Fakhouri 28 22 24 74 12 12 9 7 40 Kevin Cameron 28 23 27 78 14 14 9 9 46 Jose Martinez 25 20 23 68 13 12 8 8 41 Brandon DiPietro 26 21 21 68 12 13 8 7 40 Ming Zhao 27 22 26 75 13 13 8 8 42 Eid Fakhouri 24 24 23 71 12 11 7 6 36 Kevin Cameron 25 22 24 71 13 13 8 8 42 Jose Martinez 25 23 27 75 14 13 9 8 44 Brandon DiPietro 27 21 22 70 15 14 9 8 46 Ming Zhao 26 20 25 71 12 14 8 8 42 Eid Fakhouri 23 23 23 69 14 14 9 9 46 Kevin Cameron 26 21 26 73 13 13 10 8 44 Consultant Weighted Fee ScoreB&J HBK $152 7Carollo$150 8 *The fees were evaluated by comparing weighted rates for seven positions. The sum of the weighted rates are noted on the table to the left.Hazen and Sawyer $169 1 Horrocks $154 7 Hydroscience Engineers $154 7 Lee & Ro $166 2 NV5 $137 13 Rick Engineering $131 15 Wood Rodgers $157 5 FIRM NOT INTERVIEWED 38 122 FIRM NOT INTERVIEWED 43 Y 44 68 114 108 118 67 Y 66 2 Excellent88131 FIRM NOT INTERVIEWED ATTACHMENT B SUMMARY OF PROPOSAL RANKINGS As-Needed Engineering Design Services - Fiscal Years 2020 - 2022 WRITTEN ORAL FEE SCORING CHART Wood Rodgers NV5 75 13 MAXIMUM POINTS 8Carollo 37 74 74 FIRM NOT INTERVIEWED 7 72 121Y REFERENCES 68 Y 69 76 Y 5 Y 86 40 12615Y111 116 Excellent Hydroscience Engineers Y Hazen and Sawyer Lee & Ro Horrocks Engineers 71 Rick Engineering 71 7 1 84 69 115 68 78 77 68B&J HBK 61 7 Y 68 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 SUBMITTED BY: Jose Martinez, Assistant Chief of Water Operations PROJECT: DIV. NO. All APPROVED BY: Pedro Porras, Chief of Water Operations Mark Watton, General Manager SUBJECT: ANNUAL AS-NEEDED PAVING SERVICES GENERAL MANAGER’S RECOMMENDATION: That the Board authorize entering into an agreement with Kirk Paving in an amount not to exceed $200,000 for as-needed asphalt paving services from July 1, 2019 through June 30, 2020, and with four (4) one-year options for renewal at the General Manager’s discretion. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To perform the needed and critical asphaltic concrete paving work the District is responsible for in a cost effective and timely manner. ANALYSIS: As a regular course of business, the District is required to maintain and repair its water delivery infrastructure. Routinely this work requires the removal and re-installation of asphalt paving in public roadways. It has been shown more effective and efficient for the District to use outside contractors for its asphalt paving work. Therefore, the District has used outside asphalt paving contract services for more than fourteen (14) years. As-needed paving services have been included in the FY 2019 Operating Budget under Contracted Services. The FY 2020 budget for annual as-needed paving under Contracted Services is $200,000. In accordance with the District’s purchasing requirements, a notice was published and bids were solicited for this work on a “unit price” basis. The solicitation was completed via BidSync with 230 companies successfully invited and viewed by over 30 contractors including the Associated General Contractors of America San Diego Chapter Plan Room which provides members complete access to bidding projects, both public and private, including plans and specifications in San Diego, Imperial, Orange, Riverside, and San Bernardino counties, and some projects within other Southern California areas. On March 19, three contractors attended a mandatory pre-bid meeting and on April 4, 2019, one bid was received and publicly opened with the following result: Bidder Weighted Score Kirk Paving, Lakeside 630.50 Although only one bid was received by Kirk Paving of Lakeside, CA it should be noted that Kirk Paving served as the FY 2019 as- needed paving service contractor for the District and has performed all required work with no issues noted. Staff is confident that they will be able to perform the required work. Furthermore, staff has compared the aggregate unit pricing submitted and against those submitted in the 2017 solicitation determined the prices to be less than the increases in the California Statewide Crude Oil Price Index (used by CALTRANS in determining price adjustments in paving projects) over the past two years. Bids have been submitted on a unit-cost basis for the different types of work typically required during paving. The types of work are assigned a weight factor based on the District’s experience of the frequency they will be employed during the term of the agreement and these weights are multiplied by the unit cost to determine a unit score. Unit scores are totaled to provide the overall score of the bid and the contractor with the lowest overall score is the low bidder. Please refer to Attachment B. Under Contracted Services for Utility Maintenance staff budgeted $200,000 per year for this paving service, therefore, near the completion of FY20, staff will assess the cost of paving, which we believe may go up due to increases in construction activities. At that time staff will ask the contractor to let us know if its unit price will remain the same or if any adjusted increase is reasonable for an additional year contract. At that point, staff will either propose to renew its contract or will go over the process again requesting additional proposals from other contactors. Consequently, staff would like to negotiate an optional second-year contract that remains competitive. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The FY 2020 budget request includes $200,000 for as-needed paving services. The project manager has projected that this requested amount is sufficient to cover the anticipated expenses for the paving needs in the 2020 fiscal year. STRATEGIC GOAL: Strategy: Stewards of Public Infrastructure. Goal: Conduct the best practice preventative maintenance activities. LEGAL IMPACT: None. Attachment A: Committee Action Form Attachment B: FY 2020 As-Needed Paving Services Score Sheet ATTACHMENT A SUBJECT/PROJECT: ANNUAL AS-NEEDED PAVING SERVICES COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on April 16, 2019 and the following comments were made: • As stated in the staff report, Kirk Paving of Lakeside, CA was the only bid that the District received; however, it should be noted that Kirk Paving served as the FY 2019 as-needed paving service contractor for the District and has performed all required work with no issues noted. • It was also stated in the staff report that staff compared the aggregate unit pricing submitted and against those submitted in the 2017 solicitation determined the prices to be less than the increases in the California Statewide Crude Oil Price Index (used by CALTRANS in determining price adjustments in paving projects) over the past two years. • Staff indicated that this is the first year for the District to recommend an agreement with four (4) one-year options. The purpose of this recommendation is to have an annual option to solicit bids that may result in a lower amount or extend the existing agreement. • Staff indicated that Thermo Plastic and Thermo Plastic Striping were added to the project’s service needs. See Attachment B, Items 7 and 8 for additional details. • The Committee inquired about the General Manager’s discretion to renew the agreement. Staff stated that giving the General Manager the authorization and option to renew the agreement would increase efficiency and save money. • The Committee asked if staff had reached out to contractors that attended the pre-bid meeting but elected not to bid. Staff replied they had reached out to several contractors, but received only one response. The contractor who responded said that they were not sure how to obtain bond approval from the surety company given this was an as-needed contract. However, the contractor did acknowledge that they would have been able to work that out themselves, but would have required extra paperwork and effort on their part. Additionally, staff stated that this contract is relatively small and not as appealing to most contractors in the current bidding environment when the local construction economy is so strong and bigger profits can be made over a shorter period of time. • The Committee acknowledged that Kirk Paving has performed well for the District and appears to have received a reasonable bid and requested staff to compare the pricing with that of a neighboring agency. As a result, staff compared the submitted unit price of asphalt paving with those of the Helix Water District’s (Helix WD) as-needed paving contract. The unit price for Helix WD is $4.85 per square foot less than the Otay Water District’s unit price. However, it should be noted that the Helix WD’s paving contract amount is approximately 500% greater annually and designed for larger paving projects than that of the District. Therefore, staff is confident the submitted unit price is reasonable and competitive. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as a consent item. ATTACHMENT B Item Wght Type of Service Unit Bid Price Total Score 1 10 Asphalt 0"-6"15.75$ 157.5 2 10 1.5" Grind & Pav 3.00$ 30 3 3 Asphalt 7"-12"16.25$ 48.75 4 3 Traffic Stripping 0.20$ 0.6 5 3 Grinding 1.50$ 4.5 6 3 Sand/Seal 0.50$ 1.5 7 3 Thermo Plastic*10.00$ 30 8 3 Thermo Plastic Striping*10.00$ 30 9 1 Cap/Sheet 0"-1"0.50$ 0.5 10 1 Satin Seal 0.35$ 0.35 11 1 Traffic Loops 10.00$ 10 12 1 Base Rem/Rep 0.10$ 0.1 13 1 Saw Cut 0"-6"0.10$ 0.1 14 1 Saw Cut 6"-12"0.10$ 0.1 15 1 Saw Cut 12"+0.25$ 0.25 16 1 Chip Seal 1.00$ 1 315.25 Item Score Type of Service Unit Bid Price Total Score 1 10 Asphalt 0"-6"15.75$ 157.5 2 10 1.5" Grind & Pav 3.00$ 30 3 3 Asphalt 7"-12"16.25$ 48.75 4 3 Traffic Stripping 0.20$ 0.6 5 3 Grinding 1.50$ 4.5 6 3 Sand/Seal 0.50$ 1.5 7 3 Thermo Plastic*10.00$ 30 8 3 Thermo Plastic Striping*10.00$ 30 9 1 Cap/Sheet 0"-1"0.50$ 0.5 10 1 Satin Seal 0.35$ 0.35 11 1 Traffic Loops 10.00$ 10 12 1 Base Rem/Rep 0.10$ 0.1 13 1 Saw Cut 0"-6"0.10$ 0.1 14 1 Saw Cut 6"-12"0.10$ 0.1 15 1 Saw Cut 12"+0.25$ 0.25 16 1 Chip Seal 1.00$ 1 315.25 630.5 Score Month 1-6 Months 7-12 Score Month 7-12 Total Score FY 2020 As-Needed Paving Services Bid Score Sheet Months 1-6 Kirk Paving STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 PROJECT: DIV. NO. ALL SUBMITTED BY: Kelli Williamson Human Resources Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services Mark Watton, General Manager SUBJECT: ADOPT RESOLUTION #4358 TO UPDATE BOARD POLICY #24, “RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY”, AND BOARD POLICY #47, “POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE”; AND ADOPT ORDINANCE #572 TO UPDATE CHAPTER 5, SECTION 5, OF THE DISTRICT’S CODE OF ORDINANCES, “PERSONNEL PRACTICES, EMPLOYER-EMPLOYEE RELATIONS” GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution #4358 to update Board Policy #24, “Recruitment, Selection, and Employment Policy”, and Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”; and adopt Ordinance #572 to update Chapter 5, Section 5, of the District’s Code of Ordinances, “Personnel Practices, Employer- Employee Relations”, due to recent legislative changes. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To request that the Board adopt Resolution #4358 to update Board Policy #24, “Recruitment, Selection, and Employment Policy”, and Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”; and adopt Ordinance #572 to update Chapter 5, Section 5, of the District’s Code of Ordinances, “Personnel Practices, Employer-Employee Relations”, due to recent legislative changes that include when an applicant’s criminal conviction history can be requested; requirement that all nonsupervisory employees attend harassment prevention training; and changes to Agency Shop that included the mandatory collection of agency fees from non-members as no longer enforceable. ANALYSIS: Consistent with the District’s Strategic Plan, the District regularly reviews policies and procedures to ensure they are streamlined and are clear and consistent with applicable laws. Based on recent changes to California legislation, District staff is recommending revisions to the attached Board Policy #24, “Recruitment, Selection, and Employment Policy”, Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”, and Chapter 5, Section 5, of the District’s Code of Ordinances, “Personnel Practices, Employer-Employee Relations”. Changes are detailed below and revisions are shown in the attached strike-through copies of the policies (Exhibits 1, 2, and 3). Recruitment, Selection, and Employment Policy (Board Policy #24) The “Recruitment, Selection, and Employment Policy” is being updated due to legislative changes that include when an applicant’s criminal conviction history can be requested. It is now required that a conditional offer of employment be made to an applicant, before pre- employment checks can be initiated, which include a physical examination, drug screen and an evaluation of the applicant’s criminal conviction history. In addition, felony convictions can no longer be an automatic disqualification from employment. The relevancy, recency and job being sought will be part of the individualized evaluation of the applicant’s criminal conviction history (Attachment D). Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure (Board Policy #47) The “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure” is being updated due to legislative changes expanding training to now include one-hour harassment prevention training for nonsupervisory employees, as well as pertinent updates as recommended by General Counsel (Attachment E). Personnel Practices, Employer-Employee Relations (Chapter 5, Section 5, of the District’s Code of Ordinances) The “Personnel Practices, Employer-Employee Relations” section is being updated due to legislative changes to collective bargaining in the public sector that no longer allows the mandatory collection of agency fees from non-members as well as pertinent updates as recommended by General Counsel (Attachment F). The Association has reviewed and agreed to the policies where appropriate and General Counsel has reviewed the proposed changes. Based on the above, it is recommended that the Board of Directors adopt Resolution #4358 and Ordinance #572 in support of the proposed revisions. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Optimize the District’s operating efficiency. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Resolution #4358 Exhibit 1 – Board Policy #24, “Recruitment, Selection, and Employment Policy” Exhibit 2 - Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure” Attachment C – Ordinance #572 Exhibit 3 – Chapter 5, Section 5 of the Code of Ordinances, “Personnel Practices, Employer-Employee Relations” Attachment D – Proposed Copy, Board Policy #24, “Recruitment, Selection, and Employment Policy” Attachment E – Proposed Copy, Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure” Attachment F – Proposed Copy, Chapter 5, Section 5 of the Code of Ordinances, “Personnel Practices, Employer-Employee Relations” ATTACHMENT A SUBJECT/PROJECT: ADOPT RESOLUTION #4358 TO UPDATE BOARD POLICY #24, “RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY”, AND BOARD POLICY #47, “POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE”; AND ADOPT ORDINANCE #572 TO UPDATE CHAPTER 5, SECTION 5, OF THE DISTRICT’S CODE OF ORDINANCES, “PERSONNEL PRACTICES, EMPLOYER-EMPLOYEE RELATIONS” COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on April 15, 2019 and the following comments were made: • Staff is requesting that the Board adopt Resolution No. 4358 to update Board Policy No. 24, “Recruitment, Selection, and Employment Policy”, and Board Policy No. 47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”; and adopt Ordinance No. 572 to update Chapter 5, Section 5, of the District’s Code of Ordinances, “ • Staff reviewed information in the staff report. • In response to an inquiry from the Committee, staff explained that the District can no longer request an applicant’s criminal conviction history on the job application and the final candidate’s criminal background cannot be checked prior to the District making a job offer. The District must make a conditional job offer, subject to the applicant passing a background check. It was discussed that part of the goal of the law change is to give an applicant an opportunity to go through the interview process without being automatically disqualified because of something he/she had in his/her history many years ago. Thus, providing those who have completed their sentences an opportunity to become a productive member of society. The employer can decide after selecting a candidate whether the nature of the conviction/offense is severe enough to withdraw the conditional offer. Staff reviews each position and circumstance on a case-by-case basis. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board on the consent calendar. 1 RESOLUTION NO. 4358 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT TO REVISE BOARD POLICY #24, RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY; AND BOARD POLICY #47, POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE WHEREAS, the Board of Directors of Otay Water District have established policies, procedures, ordinances, and resolutions for the efficient operation of the District; and WHEREAS, it is the policy of the District to establish procedures to review policies, procedures, ordinances, and resolutions periodically to ensure they are current and relevant; and WHEREAS, District staff has identified Board Policy #24, “Recruitment, Selection, and Employment Policy”, and Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”, as requiring updates as per the attached strike-through copies. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Otay Water District amends the Board Policies indicated above in the form presented to the Board at this meeting. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 1st of May, 2019. __________________________ President ATTEST: ___________________________ Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 1 of 5 PURPOSE It is the purpose of this policy to provide guidelines for the recruitment and selection of regular, student intern, temporary and/or contract employees. POLICY It is the policy of the Otay Water District (“District”) to recruit and select the best qualified Applicants on the basis of job-related standards of experience, education, training, ability, and merit; to encourage members of the communities which we serve, to apply for employment opportunities with the District; to encourage District employees to apply for positions for which they believe they qualify, to assure that qualified internal Applicants are given fair and adequate consideration; and to advance regular District employees when it is determined that they are the best qualified. EQUAL EMPLOYMENT OPPORTUNITY The District is an equal opportunity employer. All employees and Applicants shall receive equal consideration and treatment. The District shall recruit, hire, and promote the best qualified individuals without regard to race, color, religion, religious creed including religious dress and grooming practices, sex (including wages, gender, pregnancy, childbirth, or related medical condition), national origin, ancestry, age, physical or mental disability, medical condition, genetic information, marital status, sexual orientation, military or veteran status, or membership in any other “protected class” recognized by California, or Federal or local laws. AUTHORITY OF THE GENERAL MANAGER AND EMPLOYMENT AT WILL Section 2.01 of the District’s Code of Ordinances provides that, pursuant to Sections 71362 and 71363 of the California Water Code, the General Manager has the authority to manage and operate the affairs of the District. This authority includes the employment, discharging and fixing of compensation for all employees and assistants, except those referred to in California Water Code Section 71340, at pleasure, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants. All employment at the District is thus “at-will,” pursuant to Section 71362, and both employees and the District have a right to terminate employment at any time, with or without advance notice, and with or without cause. The General Manager’s authority also includes making appointments of temporary or contract employees needed to perform District work resulting from such matters as interim vacancies, peak workload, and special projects so long as he/she operates within Board-approved budgeted appropriation levels. Contract or Temporary Appointments are not subject to amount limits for agreements, contracts, or other documents as defined in Section 2.01(E) of the District’s Code of Ordinance, or to formal competition, selection and advertisement requirements identified herein. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 2 of 5 DEFINITIONS A. Applicant: A person applying for a position, including a District employee who seeks Appointment to a different position. B. Appointment: The employment of a person in a position, whether on a regular or temporary basis. C. Closed/Promotional Recruitment: A recruitment open only to qualified regular District employees, or open only to qualified regular District employees in a particular classification, unit or division. D. Conviction: Any sentence, suspended sentence, probation or other resolution followed by a verdict, plea (including a no contest plea) or other finding of guilt. The term “Conviction,” as used herein, shall not include any conviction that has been otherwise exempted by law. E. Eligible List: A list of qualified Applicants who remain eligible for consideration for a position. F. Employment Announcement: A formal notice by the District of an employment opportunity. G. Open/Competitive Recruitment: A recruitment open to all interested qualified Applicants. H. Promulgation: The date Human Resources certifies the list of eligible Applicants for consideration. I. Qualified Applicant: An Applicant who has passed all elements of the selection process, is would be at least 18 years old at the time of Appointment and remains eligible for Appointment. J. Recruitment and Selection Plan: A planned process to establish an adequate pool of qualified Applicants which shall consist of an open/competitive or a Closed/Promotional Recruitment. K. Regular Appointment: An Appointment to a regular authorized position with benefits. L. Regular Vacancy: A vacancy in an authorized position. M. Student Intern: An employee who is currently enrolled at or near full-time status as a student in an accredited community college, college, or university in an undergraduate or graduate program in good academic standing. N. Temporary Appointment: An Appointment made for a specific duration, generally not to exceed one year. Temporary Appointments may be exempt from the formal Recruitment and Selection Plan. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 3 of 5 RECRUITMENT AND SELECTION PLAN All Regular Vacancies shall be filled through an Open/Competitive Recruitment and Selection Plan unless otherwise approved by the General Manager. This is consistent with best practice and expected to maximize community participation, competition, diversity, and the number of highly qualified Applicants available for consideration for employment. However, the General Manager may authorize a Closed/Promotional Recruitment and Selection Plan given the requirements of the position and the quality of the internal Applicant pool. All Applicants for regular positions shall submit to the same Recruitment and Selection Plan for that position. The General Manager may approve revising the Recruitment and Selection Plan in order to better meet the needs of the District. A. Notice of Employment Opportunities Human Resources shall post- employment opportunities for Regular Vacancies consistent with the approved Recruitment and Selection Plan. The Employment Announcement shall include the following: 1. Classification Title 2. Salary Rate and/or Range 3. Essential Functions 4. Required Qualifications 5. Skills Exam 6. Application Filing Instructions 7. Equal Employment Opportunity Employer Statement B. Disqualification of Applicants Applicants may be disqualified at any time during the process for any of the following reasons: 1. The Applicant is found to lack any of the minimum job requirements established for the position. 2. The Applicant has made a false statement of material fact in the application or has committed fraud or deception in the selection process or in securing eligibility for Appointment. 3. The Applicant has a history of less than satisfactory employment. 4. The Applicant uses or attempts to use any personal or political influence to further eligibility. 5. The Applicant has without authorization directly or indirectly obtained information regarding examinations. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 4 of 5 6. The Applicant fails to submit his or her application in compliance with articulated guidelines or within the prescribed time limits. 7. The Applicant has taken part in the compilation, administration, or correction of the examinations for the position for which he/she is an Applicant. 8. Any other reason deemed by the General Manager to protect the best interests of the District. C. Examination Content The Recruitment and Selection Plan shall be job-related in order to determine the ability of Applicants to perform the duties of the job classification. The plan may provide for one or more of the following types of examinations: 1. Review of Employment Application and/or Required Supplementary Material(s); 2. Written Examination; 3. Physical Agility and/or Performance Skill Examination; or 4. Oral Interview. D. Eligible Lists Eligible Lists may be maintained to fill current and future vacancies. The Eligible List will be valid for up to twelve (12) months from Date of Promulgation. Human Resources may pull Applicants from any Eligible List in lieu of posting a position or to augment the Applicant pool for other similar classifications with related skills and abilities. E. Conditions of Appointment Once an Applicant has beenis offered a conditional offer of employment, determined to be the best qualified, but prior to Appointment, the Applicant shall meet and agree to the terms and conditions of employment specified for thea particular position. Failure of such pre-employment examinations may cause the Applicant to be disqualified for employment. Conditions of employment may include, but are not limited to the following: 1. Physical Fitness/Medical Examination; 2. Drug/Alcohol Screening; 3. Verification of lawful work status under Immigration rules; and 4. Verification of employment, education, certificates, licenses, driving, and criminal conviction history including fingerprinting. F. Evaluation of Criminal Conviction Information Upon receipt of the Criminal Conviction information, the District shall determine if the information shall disqualify the Applicant. The District shall make an individualized assessment of whether an OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 5 of 5 Applicant’s criminal conviction history has a direct and adverse relationship with the specific duties of the job that justify denying the Applicant the position. The District may, but is not required to, commit the results of this individualized assessment to writing. In making the assessment, the District shall consider all of the following: (i) The nature and gravity of the offense or conduct. (ii) The time that has passed since the offense or conduct and completion of the sentence. (iii) The nature of the job sought. There shall be an automatic disqualification for employment for any of the following: a. Any felony Conviction; b. Any misdemeanor Conviction within one year preceding the date of application for any offense(s) considered to be crimes of moral turpitude by any court of the state, and/or crimes involving, firearms, explosives, violence, dishonesty and/or requiring registration under Penal Code §290; or c. Intentionally failing to disclose a prior Conviction of any type, unless said Conviction has been otherwise exempted by law. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 1 of 8 PURPOSE The Otay Water District (“District”) disapproves of and will not tolerate unlawful discrimination or harassment of its employees, members of the Board of Directors, unpaid interns, volunteers, job applicants or persons providing services pursuant to a contract with the District, or retaliation against those who report such behavior. This policy sets forth a procedure for investigating and resolving internal complaints of discrimination, harassment, or retaliation. DEFINITIONS Discrimination – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class that adversely affects the employee, unpaid intern, volunteer, job applicant, person providing services pursuant to a contract with the District, or his/her work conditions, terms of employment, or work environment. Harassment – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class, made for the purpose or having the effect of adversely affecting that employee’s, unpaid intern’s, volunteer’s, job applicant’s or persons providing services pursuant to a contract with the District’s terms of employment, work conditions, or work environment. Harassment may include, but is not limited to: • Verbal conduct such as epithets, derogatory jokes or comments, slurs, or unwelcome invitations or comments; • Visual displays such as derogatory posters, photography, cartoons, drawings or gestures; • Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 2 of 8 Such conduct constitutes harassment when (1) submission to the conduct is made as either an explicit or implicit condition of employment; (2) submission or rejection of the conduct is used as the basis for an employment decision; or (3) the harassment interferes with work performance or creates an intimidating, hostile, or offensive work environment. Sexual Harassment – Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, or verbal, visual, or physical conduct pertaining to a person’s sex (including pregnancy, childbirth, breastfeeding or related medical conditions) and/or of a sexual nature, when submission to such conduct is committed by a supervisor, co-worker, or a non-employee, in the work setting, under any of the following conditions: 1. Submission to the conduct is explicitly or implicitly made a term or condition of employment, progress, or participation in a District employment activity; or 2. Submission to, or rejection of, the conduct by the individual is used as the basis of employment decision(s) affecting the individual; or 3. The conduct has the purpose or effect of having a negative impact upon the individual's work performance or of creating an intimidating, hostile, or offensive work environment. Examples of actions that might constitute sexual harassment, include but are not limited to: 1. Unwelcome verbal conduct such as sexual flirtations or propositions; graphic comments; overly personal conversations; pressure for sexual activity; sexual jokes or stories; unwelcome sexual slurs; epithets; threats; innuendoes; derogatory comments; sexual descriptions; degrading comments; or the spreading of sexual rumors. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 3 of 8 2. Unwelcome visual conduct such as sexually explicit drawings, pictures, photographs, or gestures,; sexual emails, text messages and/or communications via social media; display of sexually explicit or suggestive objects. 3. Unwelcome physical conduct such as massaging, rubbing, grabbing, fondling, stroking, brushing of the body; touching in an unwanted and/or sexual manner; cornering, blocking, leaning on or over, or impeding normal walking, movements, or standing. 4. Threats and demands to submit to sexual requests as a condition of continued employment, condition for advancement in pay, position or authority or to avoid an adverse consequence, and offers of employment benefits in return for sexual favors. Two general categories of sexual harassment exist: (1) Quid pro quo, meaning "this for that" such as submission to sexual conduct as a condition of employment, benefits or terms and conditions of employment, and (2) Hostile work environment, meaning the sexual conduct is so severe, persistent, or pervasive that it creates an intimidating, demeaning, hostile, or offensive environment that unreasonably interferes with an employee’s job performance. Protected Class – Any class of persons who share a common sex, race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status or any other “protected class” recognized by federal, or state or local laws. For purposes of this definition, “sex” includes gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or a pregnancy-related or childbirth-related medical condition. Retaliation – Any decision or action that is based on the fact that a District employee, unpaid intern, volunteer, job applicant, or OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 4 of 8 person providing services pursuant to a contract with the District has previously complained of Discrimination, Harassment, or Retaliation prohibited by this Policy (regardless of whether a formal complaint has been made) or has provided evidence in the investigation of another District employee’s, unpaid intern’s, volunteer’s, job applicant’s or person providing services pursuant to a contract with the District’s complaint under this Policy, made for the purpose of adversely affecting the employee’s, unpaid intern’s, volunteer’s, job applicant or person providing services pursuant to a contract with the District’s conditions of employment, terms of employment, or work environment. POLICY The District is committed to providing a work environment free of unlawful Discrimination, Harassment, or Retaliation against those who report Discrimination or Harassment. Discrimination or Harassment based on sex (including gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or related medical condition), race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status, or any other basis protected by federal or , state or local law, is prohibited. Discrimination or Harassment based on the perception that a person has any of the aforementioned characteristics, or is associated with a person who has or is perceived as having any of the aforementioned characteristics, is prohibited. Retaliation against any person who complains of unlawful Discrimination or Harassment or who provides evidence relating to such a complaint, is prohibited. This Policy applies to all terms and conditions of employment including, but not limited to: hiring, placement, advancement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, compensation and training. It applies to every District employee including management, regular, temporary or contract employees, members of the Board of Directors, unpaid interns, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 5 of 8 volunteers, job applicants and to persons providing services pursuant to a contract with the District. Similarly, the District will not tolerate Discrimination or Harassment by its employees, unpaid interns, volunteers, or non-employees with whom the District has a business, service or professional relationship. The District will also take reasonable steps to protect employees, unpaid interns, and volunteers from Harassment by non-employees in the workplace. Training will be provided to all supervisory and nonsupervisory employees, management, and the Board of Directors as required by law. COMPLAINT PROCEDURE An employee, unpaid intern, volunteer, or job applicant, or person providing services pursuant to a contract with the District, who believes he or she has been the victim of Discrimination, Harassment, or Retaliation by a District employee, a member of the Board of Directors, or a person providing services pursuant to a contract with the District may make a complaint verbally, or in writing by completing the District’s Discrimination, Harassment, and Retaliation Complaint Form. An employee, unpaid intern, or volunteer may make a complaint to any of the following: • Human Resources; • Any Ssupervisor, Mmanager, Department Assistant Chief, Department Chief, Assistant General Manager, or General Manager; • Complaints against the General Manager should be directed to the President of the Board of Directors. Job applicants, or persons providing services pursuant to a contract with the District may make a complaint to any of the following: • Human Resources or; • General Manager. Any person described above shall forward each written Discrimination, Harassment, and Retaliation complaint to the General Manager or designee, immediately upon receiving the complaint or OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 6 of 8 having knowledge of the complaint. If a complaint is made verbally, the person receiving the complaint shall notify Human Resources immediately. Every reported complaint of Discrimination, Harassment or Retaliation will be investigated in a fair, timely and thorough manner. If any Mmanager, Ssupervisor, Department Assistant Chief, or Department Chief, or Assistant General Manager becomes aware of or suspects Discrimination, Harassment, or Retaliation against a District employee, unpaid intern, volunteer, job applicant, member of the Board, or person providing services pursuant to a contract with the District, he/she must immediately notify the Human Resources Manager of the relevant facts and circumstances. The General Manager or designee may conduct anthe investigation of alleged Discrimination, Harassment, or Retaliation, or may delegate responsibility for the investigation to another District management employee or an outside investigator. If the complaint is against the General Manager, the President of the Board of Directors shall be responsible for conducting anthe investigation, assigning the investigation to another management employee, or outside investigator, and overseeing the investigation. If the complaint is against the Board of Directors or one of its members, the General Manager shall be responsible for contracting with an outside investigator to conduct the investigation. The Board will take appropriate action based on the findings. During its investigation, the District shall take appropriate steps to protect the privacy of all parties involved and confidentiality will be maintained to the extent possible. However, this shall not be construed to justify refusing to inform a person who has been accused of violating this Policy of the identity of the complainant and witnesses against him/her. Reports of Discrimination, Harassment, or Retaliation may not be made anonymously, but information regarding any report and subsequent investigation will be disseminated on a “need to know” basis. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 7 of 8 If a finding is made that Discrimination, Harassment, or Retaliation has occurred, the District shall take remedial action appropriate to the circumstances, which may include disciplinary action up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer who has violated this Policy, or sanctions for a person providing services pursuant to a contract with the District, who has violated this Policy. Every District employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, and person providing services pursuant to a contract with the District, has a duty to participate in good faith in any investigation conducted under this Policy. Failure to participate in good faith is a ground for disciplinary action appropriate to the circumstances. All employees, unpaid interns, volunteers, job applicants, members of the Board of Directors and persons providing services pursuant to a contract with the District are encouraged to report, in good faith, Discrimination, Harassment, or Retaliation. The District will not tolerate Retaliation against any employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or person providing services pursuant to a contract with the District who makes a good faith complaint of Discrimination, Harassment or Retaliation, or cooperates in an investigation. However, reports made maliciously or in bad faith may subject an employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or persons providing services pursuant to a contract with the District, to disciplinary action appropriate to the circumstances up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer, or sanctions for a member of the Board of Directors or a person providing services pursuant to a contract with the District. The action of filing a complaint with the District does not preclude a complainant from filing a complaint with the appropriate State or Federal agency. An employee, unpaid intern, volunteer, job applicant or a person providing services pursuant to a contract with the District may contact the Equal Employment Opportunity Commission at OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 8 of 8 www.eeoc.gov or (213) 894-1000, or the Department of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a complaint, or for information relating to discrimination complaint procedures and requirements. POLICY HISTORY Human Resources Policy and Procedure, Effective August 4, 1993. Board Policy adopted October 11, 2005. Page 1 of 1 ORDINANCE NO. 572 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT UPDATING CHAPTER 5, SECTION 5, OF THE DISTRICT’S CODE OF ORDINANCES, PERSONNEL PRACTICES, EMPLOYER-EMPLOYEE RELATIONS BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances, Chapter 5, Section 5, “Personnel Practices, Employer-Employee Relations”, be updated due to legislative changes to collective bargaining in the public sector that no longer allows the mandatory collection of agency fees from non-members. The updates are presented and attached to this ordinance in Exhibit 3. NOW, THEREFORE, BE IT RESOLVED that the update to Chapter 5, Section 5, of the District’s Code of Ordinances, “Personnel Practices, Employer-Employee Relations”, shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 1st of May, 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary 1 CHAPTER 5 PERSONNEL PRACTICES SECTION 5 EMPLOYER-EMPLOYEE RELATIONS 5.01 PURPOSE It is the purpose of this Chapter to establish orderly procedures to promote full communication between the District and its employees by providing a reasonable method for meeting and conferring and/or consulting in good faith with Recognized Employee Organizations, and resolving disputes, regarding matters that directly and significantly affect and primarily involve matters regarding wages, hours, and other terms and conditions of employment, as well as to promote the improvement of personnel management and employee relations by providing a uniform basis for recognizing the right of District employees to join or not to join any organization of their choice and be represented by such organization in their employment relationship with the District. It is also the purpose of this Chapter to fully comply with the provisions of the Meyers- Milias Brown Act (Gov. Code, § 3500.5 et seq.) and to provide orderly procedures for the administration of employer-employee relations. 5.02 DEFINITIONS A. District: The Otay Water District. B. Board of Directors or Board: The Board of Directors of the District. C. Employee: Any person employed by the District other than elected officials. D. A. Employee Organization: AEither (1) any lawful organization that includes employees of the District and that has as one of its primary purposes representing those employees in their employment relations with the District; or (2) any organization that seeks to represent employees of the District in their relations with the District. A. B. Registered Employee Organization: An employee organization that has registered with the District as provided in this Chapter. E. C. Recognized Employee Organization: An employee organization that has been certified by the District as the majority representative of a representation unit in accordance with this Chapter.formally acknowledged by the District pursuant to this Chapter as the sole employee organization representing the employees in an appropriate unit. A recognized employee organization has the exclusive right to meet and confer in good faith on behalf of the employees within such unit concerning matters within the scope of representation, and thereby assumes a corresponding obligation of fairly representing such employees. 2 FD. Representation Unit: A group of District employee classifications that have a common community of interest, established pursuant to this Chapter. GE. Meet and Confer: The free exchange of information, opinions and proposals in good faith between representatives of the District and a recognized employee organization with the goal of reaching agreement on matters within the scope of representation. HF. Consult or Consultation: Verbal or written communication for the purpose of presenting and obtaining views or advising of intended actions in a good faith effort to reach a consensus, and as distinguished from meeting and conferring in good faith regarding matters within the scope of the meet and confer process as required by applicable law. IG. Proof of Employee Support: An unambiguous written statement that an employee wishes to designate an employee organization as the recognized employee organization for his/her representation unit, or that an employee wishes to cease having an employee organization be the recognized employee organization for his/her representation unit. This statement must appear on the same page as and under which an employee’s printed name, classification, and signature appear, and must have been signed within the year preceding its submission. J. General Manager: The General Manager of the District. KH. Terms not defined herein shall have the meanings as set forth in the Meyers- Milias Brown ActMMBA. 5.03 DISTRICT AUTHORITY A. The District has the sole right and exclusive authority to direct the affairs of, manage, and maintain the efficiency of the District, to set standards of services to be offered to the public, and to control the organization and operation of the District. The District also has the sole and exclusive authority to take any actions which the District deems desirable to conduct its affairs including, but not limited to, directing its work force (including scheduling and assigning work and overtime); hiring, firing, discharging, promoting, demoting, transferring, or disciplining employees, consistent with and pursuant to the authority of Water Code section 71362; determining the methods, means and personnel by which District operations are to be conducted; layoffs for budgetary considerations or lack of work; subcontracting work; maintaining efficiency of employees; taking all necessary actions to carry out its mission in emergencies; and exercising complete control and discretion over its organization and the technology of performing its work consistent with the provisions of this Chapter and the Meyers-Milias Brown Act. The foregoing authority of the District is descriptive, not exhaustive. 3 B. Except as otherwise stated, all powers and obligations described in this Chapter are hereby delegated to the General Manager. The General Manager may delegate these powers and obligations to other District managers as he/she deems necessary. 5.04 EMPLOYEE RIGHTS Each employee has the following rights which he/she may exercise in accordance with the Meyers-Milias Brown Act: 1. The right to form, join and participate in the activities of employee organizations of the employee's own choosing for the purpose of representation on matters of the employee's relations with the District, or to refuse to join or participate in the activities of any employee organization. 2. The right to be free from interference, intimidation, restraint, coercion, discrimination or reprisal by the District, other employees, or employee organizations with respect to the employee's membership or non- membership in any employee organization, or with respect to any lawful activity associated therewith which is within the scope of representation. 3. The right to represent himself or herself individually in his or her employee relations with the District, to the extent allowed by law. Whenever a District employee desires to represent himself or herself in consulting with District management during regular hours of work, the employee shall first request and obtain permission to take time off to do so. 5.05 ESTABLISHMENT OF REPRESENTATION UNITS A. The General Manager shall determine the appropriate composition of a representation unit by considering the following factors: 1. The effect of the proposed unit on the operations of the District. 2. The proposed unit’s compatibility with the primary responsibility of the District and its employees to serve the public effectively and economically. 3. The ability to provide effective representation to employees based on a recognized community of interest, within the broadest feasible grouping of classifications sharing an identifiable community of interest. B. In considering whether classifications share an identifiable community of interest, the following factors shall be considered: 4 1. Similarity of the work performed, required qualifications, level of responsibility, and general working conditions. 2. History of representation in the District, except that no representation unit shall be deemed appropriate solely on the basis of the extent to which employees in the proposed unit have organized. 3. Consistency with District administrative organization. 4. Number of employees and classifications, and the effect on the administration of employer-employee relations created by the fragmentation of classifications and/or increase in number of representation units. 5. Effect on the classification structure and impact on the stability of the employer-employee relationship of dividing related classifications among two or more representation units. 6. Supervisory employees shall not be placed in a representation unit with non- supervisory employees. 7. Management employees shall not be placed in a representation unit with non-management employees. 8. Confidential employees shall not be placed in a representation unit with non-confidential employees. 9. Professional employees shall not be required to be included in the same unit with non-professional employees. C. After notice to and consultation with affected employee organizations, the Human Resources Manager shall allocate new classifications or positions, delete eliminated classifications or positions, and retain, reallocate or delete classifications in accordance with this Section. 5.06 CERTIFICATION OF EMPLOYEE ORGANIZATIONS A. Recognized Employee Organizations – Requirements:Registered Employee Organizations: An employee organization that wishes to become the recognized employee organization of a representation unit or proposed representation unit shall file with the General Manager a petition for certification as a recognized employee organization. The petition shall : Any group of employees that wishes to create a registered employee organization shall file with the General Manager a written application for registration of the employee organization. The application shall include: 5 1. The name and mailing address and electronic mailing address of the employee organization. 2. The names and titles of its officers and mailing address. 3. A designation of one person, including his/her address, to whom notice to the organization may be sent for any purpose. 4. The names of persons who are authorized to act as representatives of the organization in any communications with the District. 5. A statement that the employeer organization has, as one of its primary purposes, the responsibility of representing employees in their employment relations with the District. 6. A statement whether the employee organization is a chapter of, or affiliated directly or indirectly in any manner, with a local, regional, state, national, or international organization, and, if so, the name and address of each such other organization. 7. A statement that the employee organization agrees to comply with the provisions of this Chapter. 87. Certified copies of the employee organization’s constitution and bylaws. 98. A statement that the organization does not restrict membership based on race, color, creed, national origin, political affiliation, sex, disability, age, or any other classification prohibited by state or federal law. 109. A list of all District employees who are represented by the organization and their job classifications or position titles. 1110. A statement that the employee organization has in its possession proof of employee support as herein defined to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the District. Such written proof shall be submitted for confirmation to the General Manager or to a mutually agreed upon disinterested third party. 12. A request that the District formally acknowledge the petitioner as the recognized employee organization of a representation unit of District employees. When an employee organization has complied with the requirements of this Section, the General Manager shall register the organization and notify it that it is a registered employee organization. 6 B. Processing Of Recognition Petition: Recognized Employee Organizations: An employee organization or registered employee organization that wishes to become the recognized employee organization of a representation unit or proposed representation unit shall file with the General Manager a petition for certification as a recognized employee organization. The petition shall: 1. Name and provide an address for the representation unit or proposed representation unit which it purports to represent. 2. Be accompanied by proof of support by at least thirty percent (30%) of the employees within the representation unit or proposed representation unit. Upon receipt of a petition that proposes a new representation unit, the General Manager shall determine whether: 1. There has been compliance with the requirements of the recognition petition, and 2. The proposed representation unit is an appropriate unit. If the representation unit is appropriate and the proof of support is found to be valid, the General Manager shall accept the petition and give notice of the request for recognition filing thereof to all District employees and shall take no action on said request for thirty (30) days thereafter. Recognized employee organization status shall be granted if the proof of support shows that a majority (50% plus one) of the employees in the representation unit or proposed representation unit desire the representation.; Hhowever, if another labor organization has previously been lawfully recognized as a recognized employee organization of all or part of the same unit, or if more than one labor organization has been proposed as the recognized employee organization, determination of the recognized employee organization shall be made by the State Mediation and Conciliation Service, who shall review the proof of support to verify the status of the employee organization. The General Manager shall engage the State Mediation and Conciliation Service to conduct an election within 30 days of the foregoing notice, or as soon thereafter as the State Mediation and Conciliation Service can conduct it, among the eligible members of the representation unit. If the General Manager does not accept the petition, he/sheit shall notify the petitioning registered employee organization of the reasons therefore in writing. No petition shall be accepted affecting a representation unit or proposed representation unit for which, within the preceding 12 months, a certification or decertification election was conducted. C. Election Procedure: 1. When an election is required pursuant to this Section, it shall be conducted by secret ballot in accordance with the procedures and regulations of this section. Eligible voters shall be those employees in the representation unit whose names appear on the payroll immediately prior to the date which 7 ended at least fifteen (15) days before the date of the election, including those shown as on vacation or authorized leaves of absence, and who are employed by the District in the same unit on the date of the election. If the State Mediation and Conciliation Service declines to conduct the election, the Board of Directors will adopt rules for the conduct of election. There shall be no more than one valid election under this Section pursuant to any petition in a 12-month period affecting the same unit. 2. The General Manager shall declare the results of the election in accordance with the following: a. When a majority of the eligible employees voting at the election vote to certify an organization, the General Manager shall certify the organization as the recognized employee organization of the representation unit. b. When two organizations appear on the ballot and no organization receives a majority of the votes cast, the General Manager shall declare that no organization will be the recognized employee organization of the unit. c. When three or more organizations appear on the ballot and no organization receives a majority of the votes cast, the General Manager shall order a runoff election between the two organizations receiving the greatest number of votes, the rules governing an initial election being applicable to a run-off election. d. If less than a majority of eligible employees voted, the General Manager shall declare the election void and no further election shall be held based on the petition. Half of the cost incurred in conducting a certification election shall be borne by the District, and the other half shall be divided equally among and be paid by the employee organizations appearing on the ballot. D. Current Information: The information contained in the petition shall be kept current by the recognized employee organization. The General Manager may, from time to time, require verification by the recognized employee organization of any information contained in the petition (and current supplements thereto), including submission of such written proof as the recognized employee organization has that it has been designated by the listed employees to represent them. 8 5.07 EMPLOYEE ORGANIZATIONS' RIGHTS A. A registered employee organization may represent its members in disputes on wages, hours and any other terms or conditions of employment as allowed by law. A registered employee organization may not present a grievance or dispute in its own name or on behalf of itself. The District is not obliged to meet and confer or enter into a memorandum of understanding with a registered employee organization or with an individual employee. A.B. The District recognizes the right of any recognized employee organization to govern its internal affairs. A recognized employee organization may represent itself and/or its members in disputes and grievance matters. A registered recognized employee organization may not present a grievance or dispute in its own name or on behalf of itself. Should the recognized employee organization be dissatisfied with the results of such consultations, it has the further right to meet and confer with the General Manager. The scope of representation includes all matters relating to employment conditions and employee relations, including, but not limited to, wages, hours and other terms and conditions of employment. However, the scope of representation shall not include the merit, necessity, or organization of any service or activity provided by law or established by the Districtexecutive or Board order. If the General Manager and the recognized employee organization reach agreement, they shall jointly prepare a written memorandum of understanding which shall not be binding on the District until it is ratified by the Board of Directors. B.C Officers and/or representatives of recognized employee organizations may petition the General Manager, or designee, in writing for access to work facilities and work locations outside of regular working hours. The petition shall identify where they wish to have access and the purpose for which access is sought. The General Manager shall not unreasonably refuse such petition and will provide to persons granted access an appropriate escort and rules and regulations governing access to District property, consistent with Board of Directors Policy No. 13. 5.08 CONFERENCES The General Manager or designee shall, upon written request, meet and confer in good faith regarding wages, hours and other terms and conditions of employment with the representatives of any recognized employee organization and shall consider fully such presentations as are made on behalf of employees who are members of such recognized employee organization. Such meetings and conferences shall be held within a reasonable time upon written request, which shall set forth the matter(s) desired to be presented. The General Manager may utilize other staff of the District to assist him/her and to attend conferences with him/her. In the event that any Memorandum of Understanding (MOU) exists with a procedure different than as stated above, the Memorandum of Understanding shall prevail. Meet and confer sessions for future memoranda of understanding shall commence on a date so that negotiations may be completed, if possible, prior to the end of the existing MOU. 9 5.0908 IMPASSE PROCEDURE If, after a reasonable period of time of meeting and conferring, a recognized employee organization and the General Manager fail to reach agreement on matters within the scope of representation, either party may declare the existence of an impasse. Upon declarationing of impasse, a partythe District and a Recognized Employee Organization may mutually ask the California State Conciliation Service to assist the parties in reconciling differences through mediation. All mediation proceedings shall be private. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. All mediation costs shall be borne equally by the District and the recognized employee organization. If mediation does not resolve the impasse, theA Recognized Eemployee organization may request to the Public Employment Relations Board (PERB) to submit the impasse to fact-finding, pursuant to Government Code sections 3505.4 through 3505.7, no sooner than 30 days, but no more than 45 days, following the appointment or selection of a mediatordeclaration of impasse. Fact-finding panel recommendations are only advisory, not binding. All mutually incurred costs for fact-finding shall be borne equally by the District and the recognized employee organization (i.e. cost for the services of the panel chairperson). After applicable mediation and fact-finding procedures have been exhausted, the General Manager may take such action regarding the matters in dispute as he/she deems necessary to the public interestbut need not implement its last, best, and final offer, but not earlier than 10 days after the factfinders’ written findings of fact and recommended terms of settlement have been submitted to the parties pursuant to Government Code section 3505.5 and following a public hearing regarding the impasse. Any legislative action by the Board of Directors on the matters in dispute shall be final and binding. 5.1009 DECERTIFICATION PROCEDURE A. An employee may present to the General Manager a petition to decertify the recognized employee organization for his/her representation unit. No action may be taken on a petition that is submitted within 12 months of the date of initial certification of a recognized employee organization or of any election to certify or decertify such organization. B. A decertification petition must be declared by the duly authorized signatory under penalty of perjury to be true, correct, and complete and include the following: 1. The name, mailing address, electronic mailing address, and telephone number of the petitioning employee and a designated representative authorized to receive notices or requests for further information; 2. The title of the representation unit; 10 3. The name of the incumbent recognized employee organization for the representation unit sought to be decertified; 4. If another organization is proposed to become the recognized employee organization, the name of such organization and the name, mailing address, electronic mailing address, and telephone number of its agent; 5. An allegation that the incumbent recognized employee organization no longer represents a majority of the employees in the appropriate unit, and any other relevant and material facts relating thereto; 6. Proof of support from at least 30 percent of the employees in the representation unit who: a. no longer wish to be represented by the incumbent recognized employee organization; and/or b. wish to be represented by a different employee organization. C. Within five business days of receiving a decertification petition, the General Manager shall serve a copy of the petition on the recognized employee organization. The General Manager shall verify that proof of support for decertification and/or certification of a new recognized employee organization contains the signatures of at least thirty percent (30%) of the employees in the representation unit. Verification shall consist of confirming that each person identified in a proof of support is in the representation unit and that his/her signature is genuine. Upon verifying proof of support or lack thereof, the General Manager shall so notify the petitioner, the recognized employee organization, and, where applicable, the agent of the proposed new recognized employee organization in writing. If the General Manager verifies proof of support of at least 30 percent (30%) of the representation unit for more than one proposed new recognized employee organization, each such organization shall be placed on the ballot. D. Upon verifying appropriate proof of support, the General Manager shall schedule an election, to be conducted no earlier than 21 calendar days and no later than 42 calendar days after verification. At least 15 calendar days before the scheduled date of the election, General Manager shall post in one or more conspicuous places frequented by members of the representation unit a copy of the decertification petition, notice of the date, time, and place of the election, and a brief statement of the purpose of the election. The notice shall remain posted until the day after the election. E. If appropriate proof of support was verified for a proposed new recognized employee organization, the ballot shall state the following: 11 1. Shall the [recognized employee organization] continue to be the recognized employee organization for the [name of representation unit] unit? ____ Yes ([recognized employee organization] continues to be the recognized employee organization) ____ No ([recognized employee organization] ceases to be the recognized employee organization) {use when there is only one proposed new representative} 2. If the [recognized employee organization] ceases to be the recognized employee organization, shall the [proposed new recognized employee organization] become the recognized employee organization for the [name of representation unit] unit? ____ Yes ____ No {use when there is more than one proposed new representative} 2. If the [recognized employee organization] ceases to be the recognized employee organization, please choose one of the following options: ____ [proposed new recognized employee organization #1] becomes the recognized employee organization ____ [proposed new recognized employee organization #2] becomes the recognized employee organization ____ [proposed new recognized employee organization #3 (if applicable)] becomes the recognized employee organization ____ No representative Where more than one proposed new representative appears on the ballot, the order in which each proposed new representative appears shall be determined by lot. If the election is only to decertify the recognized employee organization, the ballot shall state the following: Shall the [recognized employee organization] continue to be the recognized employee organization for the [name of representation unit] unit? ____ Yes ([recognized employee organization] continues to be the recognized employee organization) ____ No ([recognized employee organization] ceases to be the recognized employee organization) F. Elections shall be conducted under the following guidelines: 1.) The recognized employee organization may have a representative present at all polling places and during the counting of ballots. The representative shall only observe activities and may not advocate for a particular vote or comment on the tabulation of votes while tabulation is in progress. 12 2.) The proposed new recognized employee organization(s), if any, may have a representative present at all polling places and during the counting of ballots. The representative shall only observe activities and may not advocate for a particular vote or comment on the tabulation of votes while tabulation is in progress. 3.) Other than the actual act of voting, no activity shall be conducted within 100 feet of a polling place that advocates for a particular vote. 4.) A recognized employee organization shall be decertified if a majority of the representation unit members voting vote to decertify. 5.) The votes to certify a proposed new recognized employee organization shall be tabulated only if a majority of those voting vote to decertify the existing recognized employee organization. If the certification votes are tabulated, the proposed new recognized employee organization shall be certified if a majority of the representation unit members voting vote to certify or, if there is more than one new employee organization proposed, the organization receiving the most votes of the representation unit members voting shall be certified. 6.) No later than 10:00 a.m. on the day following the election, the General Manager shall post the results of the tabulation of votes at the same location(s) at which notice of the election was posted. 7.) A member of the representation unit, an agent of the recognized employee organization, or an agent of the proposed new recognized employee organization may protest the tabulation results within 24 hours of posting of the results. To protest the tabulation results, a person must deliver to the General Manager a letter setting forth all bases for protest. The only acceptable bases for protest are: a.) Error or fraud in tabulating the ballots b.) Prohibited advocacy at or within 100 feet of a polling place c.) A ballot cast by a person who was ineligible to vote d.) Multiple ballots cast by one person 8.) The General Manager shall promptly investigate all protests, if any, before accepting the tabulation results. The General Manager may only reject the tabulation results if one of the bases for protest exists and he/she concludes that the outcome of the election was affected thereby. If the General Manager does not accept the tabulation results, he/she shall schedule a new election. G. The election results shall be final upon acceptance of the tabulation results by the General Manager following a rejection of any protests or, if no protests are received, following the 13 expiration of the 24 hour protest period. If the recognized employee organization is decertified, the District shall cease to recognize the organization as the representative for the representation unit as of the date the results are final. If a new organization has been certified as the recognized employee organization, the District shall thereafter recognize that organization as the representative of the representation unit. A new recognized employee organization shall be bound by any memoranda of understanding then in place for the representation unit. 5.1110 INDIVIDUAL REPRESENTATION A. Any individual may present a concern relating to working conditions to the General Manager pursuant to the administrative procedures of the District, if any, and have such concern fairly considered, without the participation of a recognized employee organization. The individual may be represented by any person of his/her choosing., including a registered employee organization. Any concerns brought pursuant to this Section is subject to the provisions of Section 5.07(A). B. If an employee or group of employees who are members of a recognized employee organization present a concern to the General Manager, he/she shall notify an affected recognized employee organization of such concerns within three (3) days of receiving it. C. The right to individual representation provided above is not intended to nor shall it confer a right to bargain or negotiate individual terms and conditions of employment. 5.1211 EMPLOYER-EMPLOYEE COMMUNICATIONS A. The General Manager shall make available space on a bulletin board or other reasonable means of communication to a recognized employee organization, so that it may communicate with its members. No employee organization literature may be distributed in work areas, nor may any person solicit employees during working time. The General Manager shall communicate to all employees and all registered or recognized employee organizations the contents of this Chapter. B. Recognized employee organizations may use District facilities for meetings of District employees, provided such meetings are held outside of regularly scheduled working hours for the employees in attendance, space permitting. Recognized employee organizations must obtain permission from the General Manager or designee to use District facilities, as discussed in Section 5.07(BC), above. 5.1312 INFORMATION REQUESTS A. A recognized employee organization or a registered employee organization may request that the General Manager provide documents or information that are necessary and relevant to their representation rights, such as the preparation or processing of a grievance, for consulting, 14 or for meeting and conferring. The District shall not, however, be required to provide information in a particular form requested or desired by the requestor. B. Requests that do not fall within the following parameters are presumed as requesting irrelevant document(s) and/or information, placing the burden on the requesting party to demonstrate its relevance: 1. The document or information was created within the two years preceding the request. 2. The document or information may be retrieved without resulting in an undue burden on the District i.e. retrieval does not require an extraordinary expense or use of staff time the documents or information may be compiled in the manner requested without extraordinary expense or use of staff time, etc. 3. The document or information does not invade the privacy rights of any person who has not consented to their disclosure in writing. 5.1413 INTERPRETATION This Chapter shall be administered and construed as follows: A. Nothing in this Chapter shall be construed to deny to any person, employee, organization, the District, or any authorized officer, body or other representative of the District, the rights, powers and authority granted by federal or state law. B. This Chapter shall be interpreted so as to carry out the purposes set forth in Section 5.01. C. Nothing in this Chapter shall be construed as giving employees or employee organizations the right to participate in, support, cooperate with or encourage, directly or indirectly, a strike, sick-out, other total or partial stoppage or slowdown of work, or any unlawful concerted action. In consideration of and as a condition of employment by the District, employees recognize that any such actions by them are in violation of their conditions of employment except as expressly otherwise provided by legally preemptive state or contrary local law. District employees who engage in such actions shall be subject to disciplinary action, up to and including termination, and/or may be deemed to have abandoned their employment, and may be replaced, to the extent such actions are not prohibited by preemptive law. Employee organizations that engage in such acts may lose all rights accorded them under this Chapter for a period of up to one year from the last such act. 5.1514 AMENDMENTS After consulting with recognized and registered employee organizations, the Board may from time to time amend this Chapter. 15 5.1615 SEVERABILITY If any provision of this Chapter, or the application of such provision to any persons or circumstances, is held invalid, the remainder of this Chapter, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 1 of 5 PURPOSE It is the purpose of this policy to provide guidelines for the recruitment and selection of regular, student intern, temporary and/or contract employees. POLICY It is the policy of the Otay Water District (“District”) to recruit and select the best qualified Applicants on the basis of job-related standards of experience, education, training, ability, and merit; to encourage members of the communities which we serve, to apply for employment opportunities with the District; to encourage District employees to apply for positions for which they believe they qualify, to assure that qualified internal Applicants are given fair and adequate consideration; and to advance regular District employees when it is determined that they are the best qualified. EQUAL EMPLOYMENT OPPORTUNITY The District is an equal opportunity employer. All employees and Applicants shall receive equal consideration and treatment. The District shall recruit, hire, and promote the best qualified individuals without regard to race, color, religion, religious creed including religious dress and grooming practices, sex (including wages, gender, pregnancy, childbirth, or related medical condition), national origin, ancestry, age, physical or mental disability, medical condition, genetic information, marital status, sexual orientation, military or veteran status, or membership in any other “protected class” recognized by California, Federal or local laws. AUTHORITY OF THE GENERAL MANAGER AND EMPLOYMENT AT WILL Section 2.01 of the District’s Code of Ordinances provides that, pursuant to Sections 71362 and 71363 of the California Water Code, the General Manager has the authority to manage and operate the affairs of the District. This authority includes the employment, discharging and fixing of compensation for all employees and assistants, except those referred to in California Water Code Section 71340, at pleasure, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants. All employment at the District is thus “at-will,” pursuant to Section 71362, and both employees and the District have a right to terminate employment at any time, with or without advance notice, and with or without cause. The General Manager’s authority also includes making appointments of temporary or contract employees needed to perform District work resulting from such matters as interim vacancies, peak workload, and special projects so long as he/she operates within Board-approved budgeted appropriation levels. Contract or Temporary Appointments are not subject to amount limits for agreements, contracts, or other documents as defined in Section 2.01(E) of the District’s Code of Ordinance, or to formal competition, selection and advertisement requirements identified herein. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 2 of 5 DEFINITIONS A. Applicant: A person applying for a position, including a District employee who seeks Appointment to a different position. B. Appointment: The employment of a person in a position, whether on a regular or temporary basis. C. Closed/Promotional Recruitment: A recruitment open only to qualified regular District employees, or open only to qualified regular District employees in a particular classification, unit or division. D. Conviction: Any sentence, suspended sentence, probation or other resolution followed by a verdict, plea (including a no contest plea) or other finding of guilt. The term “Conviction,” as used herein, shall not include any conviction that has been otherwise exempted by law. E. Eligible List: A list of qualified Applicants who remain eligible for consideration for a position. F. Employment Announcement: A formal notice by the District of an employment opportunity. G. Open/Competitive Recruitment: A recruitment open to all interested qualified Applicants. H. Promulgation: The date Human Resources certifies the list of eligible Applicants for consideration. I. Qualified Applicant: An Applicant who has passed all elements of the selection process, is at least 18 years old at the time of Appointment and remains eligible for Appointment. J. Recruitment and Selection Plan: A planned process to establish an adequate pool of qualified Applicants which shall consist of an open/competitive or a Closed/Promotional Recruitment. K. Regular Appointment: An Appointment to a regular authorized position with benefits. L. Regular Vacancy: A vacancy in an authorized position. M. Student Intern: An employee who is currently enrolled at or near full-time status as a student in an accredited community college, college, or university in an undergraduate or graduate program in good academic standing. N. Temporary Appointment: An Appointment made for a specific duration, generally not to exceed one year. Temporary Appointments may be exempt from the formal Recruitment and Selection Plan. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 3 of 5 RECRUITMENT AND SELECTION PLAN All Regular Vacancies shall be filled through an Open/Competitive Recruitment and Selection Plan unless otherwise approved by the General Manager. This is consistent with best practice and expected to maximize community participation, competition, diversity, and the number of highly qualified Applicants available for consideration for employment. However, the General Manager may authorize a Closed/Promotional Recruitment and Selection Plan given the requirements of the position and the quality of the internal Applicant pool. All Applicants for regular positions shall submit to the same Recruitment and Selection Plan for that position. The General Manager may approve revising the Recruitment and Selection Plan in order to better meet the needs of the District. A. Notice of Employment Opportunities Human Resources shall post employment opportunities for Regular Vacancies consistent with the approved Recruitment and Selection Plan. The Employment Announcement shall include the following: 1. Classification Title 2. Salary Rate and/or Range 3. Essential Functions 4. Required Qualifications 5. Skills Exam 6. Application Filing Instructions 7. Equal Employment Opportunity Employer Statement B. Disqualification of Applicants Applicants may be disqualified at any time during the process for any of the following reasons: 1. The Applicant is found to lack any of the minimum job requirements established for the position. 2. The Applicant has made a false statement of material fact in the application or has committed fraud or deception in the selection process or in securing eligibility for Appointment. 3. The Applicant has a history of less than satisfactory employment. 4. The Applicant uses or attempts to use any personal or political influence to further eligibility. 5. The Applicant has without authorization directly or indirectly obtained information regarding examinations. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 4 of 5 6. The Applicant fails to submit his or her application in compliance with articulated guidelines or within the prescribed time limits. 7. The Applicant has taken part in the compilation, administration, or correction of the examinations for the position for which he/she is an Applicant. 8. Any other reason deemed by the General Manager to protect the best interests of the District. C. Examination Content The Recruitment and Selection Plan shall be job-related in order to determine the ability of Applicants to perform the duties of the job classification. The plan may provide for one or more of the following types of examinations: 1. Review of Employment Application and/or Required Supplementary Material(s); 2. Written Examination; 3. Physical Agility and/or Performance Skill Examination; or 4. Oral Interview. D. Eligible Lists Eligible Lists may be maintained to fill current and future vacancies. The Eligible List will be valid for up to twelve (12) months from Date of Promulgation. Human Resources may pull Applicants from any Eligible List in lieu of posting a position or to augment the Applicant pool for other similar classifications with related skills and abilities. E. Conditions of Appointment Once an Applicant has been offered a conditional offer of employment, the Applicant shall meet and agree to the terms and conditions of employment specified for the particular position. Failure of pre- employment examinations may cause the Applicant to be disqualified for employment. Conditions of employment may include, but are not limited to the following: 1. Physical Fitness/Medical Examination; 2. Drug/Alcohol Screening; 3. Verification of lawful work status under Immigration rules; and 4. Verification of employment, education, certificates, licenses, driving, and criminal conviction history including fingerprinting. F. Evaluation of Criminal Conviction Information Upon receipt of Criminal Conviction information, the District shall determine if the information shall disqualify the Applicant. The District shall make an individualized assessment of whether an Applicant’s criminal conviction history has a direct and adverse relationship with the specific duties OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 5 of 5 of the job that justify denying the Applicant the position. The District may, but is not required to, commit the results of this individualized assessment to writing. In making the assessment, the District shall consider all of the following: (i) The nature and gravity of the offense or conduct. (ii) The time that has passed since the offense or conduct and completion of the sentence. (iii) The nature of the job sought. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 1 of 8 PURPOSE The Otay Water District (“District”) disapproves of and will not tolerate unlawful discrimination or harassment of its employees, members of the Board of Directors, unpaid interns, volunteers, job applicants or persons providing services pursuant to a contract with the District, or retaliation against those who report such behavior. This policy sets forth a procedure for investigating and resolving internal complaints of discrimination, harassment, or retaliation. DEFINITIONS Discrimination – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class that adversely affects the employee, unpaid intern, volunteer, job applicant, person providing services pursuant to a contract with the District, or his/her work conditions, terms of employment, or work environment. Harassment – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class, made for the purpose or having the effect of adversely affecting that employee’s, unpaid intern’s, volunteer’s, job applicant’s or person providing services pursuant to a contract with the District’s terms of employment, work conditions, or work environment. Harassment may include, but is not limited to: • Verbal conduct such as epithets, derogatory jokes or comments, slurs, or unwelcome invitations or comments; • Visual displays such as derogatory posters, photography, cartoons, drawings or gestures; • Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 2 of 8 Such conduct constitutes harassment when (1) submission to the conduct is made as either an explicit or implicit condition of employment; (2) submission or rejection of the conduct is used as the basis for an employment decision; or (3) the harassment interferes with work performance or creates an intimidating, hostile, or offensive work environment. Sexual Harassment – Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, or verbal, visual, or physical conduct pertaining to a person’s sex (including pregnancy, childbirth, breastfeeding or related medical conditions) and/or of a sexual nature, when submission to such conduct is committed by a supervisor, co-worker, or a non-employee, in the work setting, under any of the following conditions: 1. Submission to the conduct is explicitly or implicitly made a term or condition of employment, progress, or participation in a District employment activity; or 2. Submission to, or rejection of, the conduct by the individual is used as the basis of employment decision(s) affecting the individual; or 3. The conduct has the purpose or effect of having a negative impact upon the individual's work performance or of creating an intimidating, hostile, or offensive work environment. Examples of actions that might constitute sexual harassment, include but are not limited to: 1. Unwelcome verbal conduct such as sexual flirtations or propositions; graphic comments; overly personal conversations; pressure for sexual activity; sexual jokes or stories; unwelcome sexual slurs; epithets; threats; innuendoes; derogatory comments; sexual descriptions; degrading comments; or the spreading of sexual rumors. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 3 of 8 2. Unwelcome visual conduct such as sexually explicit drawings, pictures, photographs, gestures, emails, text messages and/or communications via social media; display of sexually explicit or suggestive objects. 3. Unwelcome physical conduct such as massaging, rubbing, grabbing, fondling, stroking, brushing of the body; touching in an unwanted and/or sexual manner; cornering, blocking, leaning on or over, or impeding normal walking, movements, or standing. 4. Threats and demands to submit to sexual requests as a condition of continued employment, condition for advancement in pay, position or authority or to avoid an adverse consequence, and offers of employment benefits in return for sexual favors. Two general categories of sexual harassment exist: (1) Quid pro quo, meaning "this for that" such as submission to sexual conduct as a condition of employment, benefits or terms and conditions of employment, and (2) Hostile work environment, meaning the sexual conduct is so severe, or pervasive that it creates an intimidating, demeaning, hostile, or offensive environment that unreasonably interferes with an employee’s job performance. Protected Class – Any class of persons who share a common sex, race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status or any other “protected class” recognized by federal or state laws. For purposes of this definition, “sex” includes gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or a pregnancy-related or childbirth-related medical condition. Retaliation – Any decision or action that is based on the fact that a District employee, unpaid intern, volunteer, job applicant, or OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 4 of 8 person providing services pursuant to a contract with the District has previously complained of Discrimination, Harassment, or Retaliation prohibited by this Policy (regardless of whether a formal complaint has been made) or has provided evidence in the investigation of another District employee’s, unpaid intern’s, volunteer’s, job applicant’s or person providing services pursuant to a contract with the District’s complaint under this Policy, made for the purpose of adversely affecting the employee’s, unpaid intern’s, volunteer’s, job applicant or person providing services pursuant to a contract with the District’s conditions of employment, terms of employment, or work environment. POLICY The District is committed to providing a work environment free of unlawful Discrimination, Harassment, or Retaliation against those who report Discrimination or Harassment. Discrimination or Harassment based on sex (including gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or related medical condition), race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status, or any other basis protected by federal or state law, is prohibited. Discrimination or Harassment based on the perception that a person has any of the aforementioned characteristics, or is associated with a person who has or is perceived as having any of the aforementioned characteristics, is prohibited. Retaliation against any person who complains of unlawful Discrimination or Harassment or who provides evidence relating to such a complaint, is prohibited. This Policy applies to all terms and conditions of employment including, but not limited to: hiring, placement, advancement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, compensation and training. It applies to every District employee including management, regular, temporary or contract employees, members of the Board of Directors, unpaid interns, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 5 of 8 volunteers, job applicants and to persons providing services pursuant to a contract with the District. Similarly, the District will not tolerate Discrimination or Harassment by its employees, unpaid interns, volunteers, or non-employees with whom the District has a business, service or professional relationship. The District will also take reasonable steps to protect employees, unpaid interns, and volunteers from Harassment by non-employees in the workplace. Training will be provided to all supervisory and nonsupervisory employees, management, and the Board of Directors as required by law. COMPLAINT PROCEDURE An employee, unpaid intern, volunteer, job applicant, or person providing services pursuant to a contract with the District, who believes he or she has been the victim of Discrimination, Harassment, or Retaliation by a District employee, a member of the Board of Directors, or a person providing services pursuant to a contract with the District may make a complaint verbally, or in writing by completing the District’s Discrimination, Harassment, and Retaliation Complaint Form. An employee, unpaid intern, or volunteer may make a complaint to any of the following: • Human Resources; • Any Supervisor, Manager, Department Assistant Chief, Department Chief, or General Manager; • Complaints against the General Manager should be directed to the President of the Board of Directors. Job applicants, or persons providing services pursuant to a contract with the District may make a complaint to any of the following: • Human Resources or; • General Manager. Any person described above shall forward each written Discrimination, Harassment, and Retaliation complaint to the General Manager or designee, immediately upon receiving the complaint or having knowledge of the complaint. If a complaint is made verbally, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 6 of 8 the person receiving the complaint shall notify Human Resources immediately. Every reported complaint of Discrimination, Harassment or Retaliation will be investigated in a fair, timely and thorough manner. If any Manager, Supervisor, Department Assistant Chief, or Department Chief becomes aware of or suspects Discrimination, Harassment, or Retaliation against a District employee, unpaid intern, volunteer, job applicant, member of the Board, or person providing services pursuant to a contract with the District, he/she must immediately notify the Human Resources Manager of the relevant facts and circumstances. The General Manager or designee may conduct an investigation of alleged Discrimination, Harassment, or Retaliation, or may delegate responsibility for the investigation to another District management employee or an outside investigator. If the complaint is against the General Manager, the President of the Board of Directors shall be responsible for conducting an investigation, assigning the investigation to another management employee or outside investigator, and overseeing the investigation. If the complaint is against the Board of Directors or one of its members, the General Manager shall be responsible for contracting with an outside investigator to conduct the investigation. The Board will take appropriate action based on the findings. During its investigation, the District shall take appropriate steps to protect the privacy of all parties involved and confidentiality will be maintained to the extent possible. However, this shall not be construed to justify refusing to inform a person who has been accused of violating this Policy of the identity of the complainant and witnesses against him/her. Reports of Discrimination, Harassment, or Retaliation may not be made anonymously, but information regarding any report and subsequent investigation will be disseminated on a “need to know” basis. If a finding is made that Discrimination, Harassment, or Retaliation has occurred, the District shall take remedial action appropriate to OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 7 of 8 the circumstances, which may include disciplinary action up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer who has violated this Policy, or sanctions for a person providing services pursuant to a contract with the District, who has violated this Policy. Every District employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, and person providing services pursuant to a contract with the District, has a duty to participate in good faith in any investigation conducted under this Policy. Failure to participate in good faith is a ground for disciplinary action appropriate to the circumstances. All employees, unpaid interns, volunteers, job applicants, members of the Board of Directors and persons providing services pursuant to a contract with the District are encouraged to report, in good faith, Discrimination, Harassment, or Retaliation. The District will not tolerate Retaliation against any employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or person providing services pursuant to a contract with the District who makes a good faith complaint of Discrimination, Harassment or Retaliation, or cooperates in an investigation. However, reports made maliciously or in bad faith may subject an employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or person providing services pursuant to a contract with the District, to disciplinary action appropriate to the circumstances up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer, or sanctions for a member of the Board of Directors or a person providing services pursuant to a contract with the District. The action of filing a complaint with the District does not preclude a complainant from filing a complaint with the appropriate State or Federal agency. An employee, unpaid intern, volunteer, job applicant or a person providing services pursuant to a contract with the District may contact the Equal Employment Opportunity Commission at www.eeoc.gov or (213) 894-1000, or the Department of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 8 of 8 complaint, or for information relating to discrimination complaint procedures and requirements. POLICY HISTORY Human Resources Policy and Procedure, Effective August 4, 1993. Board Policy adopted October 11, 2005. 1 CHAPTER 5 PERSONNEL PRACTICES SECTION 5 EMPLOYER-EMPLOYEE RELATIONS 5.01 PURPOSE It is the purpose of this Chapter to establish orderly procedures to promote full communication between the District and its employees by providing a reasonable method for meeting and conferring and/or consulting in good faith with Recognized Employee Organizations, and resolving disputes, regarding wages, hours, and other terms and conditions of employment, as well as to promote the improvement of personnel management and employee relations by providing a uniform basis for recognizing the right of District employees to join or not to join any organization of their choice and be represented by such organization in their employment relationship with the District. It is also the purpose of this Chapter to fully comply with the provisions of the Meyers-Milias Brown Act (Gov. Code, § 3500.5 et seq.) and to provide orderly procedures for the administration of employer-employee relations. 5.02 DEFINITIONS A. District: The Otay Water District. B. Board of Directors or Board: The Board of Directors of the District. C. Employee: Any person employed by the District other than elected officials. D. Employee Organization: A lawful organization that includes employees of the District and that has as one of its primary purposes representing those employees in their employment relations with the District. E. Recognized Employee Organization: An employee organization that has been formally acknowledged by the District pursuant to this Chapter as the sole employee organization representing the employees in an appropriate unit. A recognized employee organization has the exclusive right to meet and confer in good faith on behalf of the employees within such unit concerning matters within the scope of representation, and thereby assumes a corresponding obligation of fairly representing such employees. F. Representation Unit: A group of District employee classifications that have a common community of interest, established pursuant to this Chapter. G. Meet and Confer: The free exchange of information, opinions and proposals in good faith between representatives of the District and a recognized employee organization with the goal of reaching agreement on matters within the scope of representation. 2 H. Consult or Consultation: Verbal or written communication for the purpose of presenting and obtaining views or advising of intended actions in a good faith effort to reach a consensus, and as distinguished from meeting and conferring in good faith regarding matters within the scope of the meet and confer process as required by applicable law. I. Proof of Employee Support: An unambiguous written statement that an employee wishes to designate an employee organization as the recognized employee organization for his/her representation unit, or that an employee wishes to cease having an employee organization be the recognized employee organization for his/her representation unit. This statement must appear on the same page as and under which an employee’s printed name, classification, and signature appear, and must have been signed within the year preceding its submission. J. General Manager: The General Manager of the District. K. Terms not defined herein shall have the meanings as set forth in the Meyers-Milias Brown Act. 5.03 DISTRICT AUTHORITY A. The District has the sole right and exclusive authority to direct the affairs of, manage, and maintain the efficiency of the District, to set standards of services to be offered to the public, and to control the organization and operation of the District. The District also has the sole and exclusive authority to take any actions which the District deems desirable to conduct its affairs including, but not limited to, directing its work force (including scheduling and assigning work and overtime); hiring, firing, discharging, promoting, demoting, transferring, or disciplining employees, consistent with and pursuant to the authority of Water Code section 71362; determining the methods, means and personnel by which District operations are to be conducted; layoffs for budgetary considerations or lack of work; subcontracting work; maintaining efficiency of employees; taking all necessary actions to carry out its mission in emergencies; and exercising complete control and discretion over its organization and the technology of performing its work consistent with the provisions of this Chapter and the Meyers-Milias Brown Act. The foregoing authority of the District is descriptive, not exhaustive. B. Except as otherwise stated, all powers and obligations described in this Chapter are hereby delegated to the General Manager. The General Manager may delegate these powers and obligations to other District managers as he/she deems necessary. 5.04 EMPLOYEE RIGHTS Each employee has the following rights which he/she may exercise in accordance with the Meyers-Milias Brown Act: 3 1. The right to form, join and participate in the activities of employee organizations of the employee's own choosing for the purpose of representation on matters of the employee's relations with the District, or to refuse to join or participate in the activities of any employee organization. 2. The right to be free from interference, intimidation, restraint, coercion, discrimination or reprisal by the District, other employees, or employee organizations with respect to the employee's membership or non- membership in any employee organization, or with respect to any lawful activity associated therewith which is within the scope of representation. 3. The right to represent himself or herself individually in his or her employee relations with the District, to the extent allowed by law. Whenever a District employee desires to represent himself or herself in consulting with District management during regular hours of work, the employee shall first request and obtain permission to take time off to do so. 5.05 ESTABLISHMENT OF REPRESENTATION UNITS A. The General Manager shall determine the appropriate composition of a representation unit by considering the following factors: 1. The effect of the proposed unit on the operations of the District. 2. The proposed unit’s compatibility with the primary responsibility of the District and its employees to serve the public effectively and economically. 3. The ability to provide effective representation to employees based on a recognized community of interest, within the broadest feasible grouping of classifications sharing an identifiable community of interest. B. In considering whether classifications share an identifiable community of interest, the following factors shall be considered: 1. Similarity of the work performed, required qualifications, level of responsibility, and general working conditions. 2. History of representation in the District, except that no representation unit shall be deemed appropriate solely on the basis of the extent to which employees in the proposed unit have organized. 3. Consistency with District administrative organization. 4. Number of employees and classifications, and the effect on the administration of employer-employee relations created by the 4 fragmentation of classifications and/or increase in number of representation units. 5. Effect on the classification structure and impact on the stability of the employer-employee relationship of dividing related classifications among two or more representation units. 6. Supervisory employees shall not be placed in a representation unit with non- supervisory employees. 7. Management employees shall not be placed in a representation unit with non-management employees. 8. Confidential employees shall not be placed in a representation unit with non-confidential employees. 9. Professional employees shall not be required to be included in the same unit with non-professional employees. C. After notice to and consultation with affected employee organizations, the Human Resources Manager shall allocate new classifications or positions, delete eliminated classifications or positions, and retain, reallocate or delete classifications in accordance with this Section. 5.06 CERTIFICATION OF EMPLOYEE ORGANIZATIONS A. Recognized Employee Organizations – Requirements: An employee organization that wishes to become the recognized employee organization of a representation unit or proposed representation unit shall file with the General Manager a petition for certification as a recognized employee organization. The petition shall include: 1. The name mailing address and electronic mailing address of the employee organization. 2. The names and titles of its officers. 3. A designation of one person, including his/her address, to whom notice to the organization may be sent for any purpose. 4. The names of persons who are authorized to act as representatives of the organization in any communications with the District. 5. A statement that the employee organization has, as one of its primary purposes, the responsibility of representing employees in their employment relations with the District. 5 6. A statement whether the employee organization is a chapter of, or affiliated directly or indirectly in any manner, with a local, regional, state, national, or international organization, and, if so, the name and address of each such other organization. 7. A statement that the employee organization agrees to comply with the provisions of this Chapter. 8. Certified copies of the employee organization’s constitution and bylaws. 9. A statement that the organization does not restrict membership based on race, color, creed, national origin, political affiliation, sex, disability, age, or any other classification prohibited by state or federal law. 10. A list of all District employees who are represented by the organization and their job classifications or position titles. 11. A statement that the employee organization has in its possession proof of employee support as herein defined to establish that a majority of the employees in the unit have designated the employee organization to represent them in their employment relations with the District. Such written proof shall be submitted for confirmation to the General Manager or to a mutually agreed upon disinterested third party. 12. A request that the District formally acknowledge the petitioner as the recognized employee organization of a representation unit of District employees. B. Processing Of Recognition Petition: Upon receipt of a petition that proposes a new representation unit, the General Manager shall determine whether: 1. There has been compliance with the requirements of the recognition petition, and 2. The proposed representation unit is an appropriate unit. If the representation unit is appropriate and the proof of support is found to be valid, the General Manager shall accept the petition and give notice of the request for recognition filing thereof to all District employees and shall take no action on said request for thirty (30) days thereafter. Recognized employee organization status shall be granted if the proof of support shows that a majority (50% plus one) of the employees in the representation unit or proposed representation unit desire the representation. However, if another labor organization has previously been lawfully recognized as a recognized employee organization of all or part of the same unit, or if more than one labor organization has been proposed as the recognized employee 6 organization, determination of the recognized employee organization shall be made by the State Mediation and Conciliation Service, who shall review the proof of support to verify the status of the employee organization. The General Manager shall engage the State Mediation and Conciliation Service to conduct an election within 30 days of the foregoing notice, or as soon thereafter as the State Mediation and Conciliation Service can conduct it, among the eligible members of the representation unit. If the General Manager does not accept the petition, he/she shall notify the petitioning employee organization of the reasons therefore in writing. No petition shall be accepted affecting a representation unit or proposed representation unit for which, within the preceding 12 months, a certification or decertification election was conducted. C. Election Procedure: 1. When an election is required pursuant to this Section, it shall be conducted by secret ballot in accordance with the procedures and regulations of this section. Eligible voters shall be those employees in the representation unit whose names appear on the payroll immediately prior to the date which ended at least fifteen (15) days before the date of the election, including those shown as on vacation or authorized leaves of absence, and who are employed by the District in the same unit on the date of the election. If the State Mediation and Conciliation Service declines to conduct the election, the Board of Directors will adopt rules for the conduct of election. There shall be no more than one valid election under this Section pursuant to any petition in a 12-month period affecting the same unit. 2. The General Manager shall declare the results of the election in accordance with the following: a. When a majority of the eligible employees voting at the election vote to certify an organization, the General Manager shall certify the organization as the recognized employee organization of the representation unit. b. When two organizations appear on the ballot and no organization receives a majority of the votes cast, the General Manager shall declare that no organization will be the recognized employee organization of the unit. c. When three or more organizations appear on the ballot and no organization receives a majority of the votes cast, the General Manager shall order a runoff election between the two organizations receiving the greatest number of votes, the rules governing an initial election being applicable to a run-off election. 7 d. If less than a majority of eligible employees voted, the General Manager shall declare the election void and no further election shall be held based on the petition. Half of the cost incurred in conducting a certification election shall be borne by the District, and the other half shall be divided equally among and be paid by the employee organizations appearing on the ballot. D. Current Information: The information contained in the petition shall be kept current by the recognized employee organization. The General Manager may, from time to time, require verification by the recognized employee organization of any information contained in the petition (and current supplements thereto), including submission of such written proof as the recognized employee organization has that it has been designated by the listed employees to represent them. 5.07 EMPLOYEE ORGANIZATIONS' RIGHTS A. The District recognizes the right of any recognized employee organization to govern its internal affairs. A recognized employee organization may represent its members in disputes and grievance matters. A recognized employee organization may not present a grievance or dispute in its own name or on behalf of itself. The scope of representation includes all matters relating to employment conditions and employee relations, including, but not limited to, wages, hours and other terms and conditions of employment. However, the scope of representation shall not include the merit, necessity, or organization of any service or activity provided by law or established by the District. If the General Manager and the recognized employee organization reach agreement, they shall jointly prepare a written memorandum of understanding which shall not be binding on the District until it is ratified by the Board of Directors. B. Officers and/or representatives of recognized employee organizations may petition the General Manager, or designee, in writing for access to work facilities and work locations outside of regular working hours. The petition shall identify where they wish to have access and the purpose for which access is sought. The General Manager shall not unreasonably refuse such petition and will provide to persons granted access an appropriate escort and rules and regulations governing access to District property, consistent with Board of Directors Policy No. 13. 5.08 CONFERENCES The General Manager or designee shall, upon written request, meet and confer in good faith regarding wages, hours and other terms and conditions of employment with the representatives of any recognized employee organization and shall consider fully such presentations as are made on behalf of employees who are members of such recognized employee organization. Such meetings and conferences shall be held within a reasonable time upon written 8 request, which shall set forth the matter(s) desired to be presented. The General Manager may utilize other staff of the District to assist him/her and to attend conferences with him/her. In the event that any Memorandum of Understanding (MOU) exists with a procedure different than as stated above, the Memorandum of Understanding shall prevail. Meet and confer sessions for future memoranda of understanding shall commence on a date so that negotiations may be completed, if possible, prior to the end of the existing MOU. 5.09 IMPASSE PROCEDURE If, after a reasonable period of time of meeting and conferring, a recognized employee organization and the General Manager fail to reach agreement on matters within the scope of representation, either party may declare the existence of an impasse. Upon declaration of impasse, the District and a Recognized Employee Organization may mutually ask the California State Conciliation Service to assist the parties in reconciling differences through mediation. All mediation proceedings shall be private. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. All mediation costs shall be borne equally by the District and the recognized employee organization. A Recognized Employee organization may request to the Public Employment Relations Board (PERB) to submit the impasse to fact-finding, pursuant to Government Code sections 3505.4 through 3505.7, no sooner than 30 days, but no more than 45 days, following the declaration of impasse. Fact-finding panel recommendations are only advisory, not binding. All mutually incurred costs for fact-finding shall be borne equally by the District and the recognized employee organization (i.e. cost for the services of the panel chairperson). After applicable mediation and fact-finding procedures have been exhausted, the General Manager may but need not implement its last, best, and final offer, but not earlier than 10 days after the factfinders’ written findings of fact and recommended terms of settlement have been submitted to the parties pursuant to Government Code section 3505.5 and following a public hearing regarding the impasse. Any legislative action by the Board of Directors on the matters in dispute shall be final and binding. 5.10 DECERTIFICATION PROCEDURE A. An employee may present to the General Manager a petition to decertify the recognized employee organization for his/her representation unit. No action may be taken on a petition that is submitted within 12 months of the date of initial certification of a recognized employee organization or of any election to certify or decertify such organization. B. A decertification petition must be declared by the duly authorized signatory under penalty of perjury to be true, correct, and complete and include the following: 9 1. The name, mailing address, electronic mailing address, and telephone number of the petitioning employee and a designated representative authorized to receive notices or requests for further information; 2. The title of the representation unit; 3. The name of the incumbent recognized employee organization for the representation unit sought to be decertified; 4. If another organization is proposed to become the recognized employee organization, the name of such organization and the name, mailing address, electronic mailing address, and telephone number of its agent; 5. An allegation that the incumbent recognized employee organization no longer represents a majority of the employees in the appropriate unit, and any other relevant and material facts relating thereto; 6. Proof of support from at least 30 percent of the employees in the representation unit who: a. no longer wish to be represented by the incumbent recognized employee organization; and/or b. wish to be represented by a different employee organization. C. Within five business days of receiving a decertification petition, the General Manager shall serve a copy of the petition on the recognized employee organization. The General Manager shall verify that proof of support for decertification and/or certification of a new recognized employee organization contains the signatures of at least thirty percent (30%) of the employees in the representation unit. Verification shall consist of confirming that each person identified in a proof of support is in the representation unit and that his/her signature is genuine. Upon verifying proof of support or lack thereof, the General Manager shall so notify the petitioner, the recognized employee organization, and, where applicable, the agent of the proposed new recognized employee organization in writing. If the General Manager verifies proof of support of at least 30 percent (30%) of the representation unit for more than one proposed new recognized employee organization, each such organization shall be placed on the ballot. D. Upon verifying appropriate proof of support, the General Manager shall schedule an election, to be conducted no earlier than 21 calendar days and no later than 42 calendar days after verification. At least 15 calendar days before the scheduled date of the election, General Manager shall post in one or more conspicuous places frequented by members of the representation unit a copy of the decertification petition, notice of the date, time, and place of the election, and a brief 10 statement of the purpose of the election. The notice shall remain posted until the day after the election. E. If appropriate proof of support was verified for a proposed new recognized employee organization, the ballot shall state the following: 1. Shall the [recognized employee organization] continue to be the recognized employee organization for the [name of representation unit] unit? ____ Yes ([recognized employee organization] continues to be the recognized employee organization) ____ No ([recognized employee organization] ceases to be the recognized employee organization) {use when there is only one proposed new representative} 2. If the [recognized employee organization] ceases to be the recognized employee organization, shall the [proposed new recognized employee organization] become the recognized employee organization for the [name of representation unit] unit? ____ Yes ____ No {use when there is more than one proposed new representative} 2. If the [recognized employee organization] ceases to be the recognized employee organization, please choose one of the following options: ____ [proposed new recognized employee organization #1] becomes the recognized employee organization ____ [proposed new recognized employee organization #2] becomes the recognized employee organization ____ [proposed new recognized employee organization #3 (if applicable)] becomes the recognized employee organization ____ No representative Where more than one proposed new representative appears on the ballot, the order in which each proposed new representative appears shall be determined by lot. If the election is only to decertify the recognized employee organization, the ballot shall state the following: Shall the [recognized employee organization] continue to be the recognized employee organization for the [name of representation unit] unit? ____ Yes ([recognized employee organization] continues to be the recognized employee organization) ____ No ([recognized employee organization] ceases to be the recognized employee organization) 11 F. Elections shall be conducted under the following guidelines: 1. The recognized employee organization may have a representative present at all polling places and during the counting of ballots. The representative shall only observe activities and may not advocate for a particular vote or comment on the tabulation of votes while tabulation is in progress. 2. The proposed new recognized employee organization(s), if any, may have a representative present at all polling places and during the counting of ballots. The representative shall only observe activities and may not advocate for a particular vote or comment on the tabulation of votes while tabulation is in progress. 3. Other than the actual act of voting, no activity shall be conducted within 100 feet of a polling place that advocates for a particular vote. 4. A recognized employee organization shall be decertified if a majority of the representation unit members voting vote to decertify. 5. The votes to certify a proposed new recognized employee organization shall be tabulated only if a majority of those voting vote to decertify the existing recognized employee organization. If the certification votes are tabulated, the proposed new recognized employee organization shall be certified if a majority of the representation unit members voting vote to certify or, if there is more than one new employee organization proposed, the organization receiving the most votes of the representation unit members voting shall be certified. 6. No later than 10:00 a.m. on the day following the election, the General Manager shall post the results of the tabulation of votes at the same location(s) at which notice of the election was posted. 7. A member of the representation unit, an agent of the recognized employee organization, or an agent of the proposed new recognized employee organization may protest the tabulation results within 24 hours of posting of the results. To protest the tabulation results, a person must deliver to the General Manager a letter setting forth all bases for protest. The only acceptable bases for protest are: a. Error or fraud in tabulating the ballots b. Prohibited advocacy at or within 100 feet of a polling place c. A ballot cast by a person who was ineligible to vote d. Multiple ballots cast by one person 8. The General Manager shall promptly investigate all protests, if any, before accepting the tabulation results. The General Manager may only reject the tabulation results if one of the bases for protest exists and he/she concludes 12 that the outcome of the election was affected thereby. If the General Manager does not accept the tabulation results, he/she shall schedule a new election. G. The election results shall be final upon acceptance of the tabulation results by the General Manager following a rejection of any protests or, if no protests are received, following the expiration of the 24 hour protest period. If the recognized employee organization is decertified, the District shall cease to recognize the organization as the representative for the representation unit as of the date the results are final. If a new organization has been certified as the recognized employee organization, the District shall thereafter recognize that organization as the representative of the representation unit. A new recognized employee organization shall be bound by any memoranda of understanding then in place for the representation unit. 5.11 INDIVIDUAL REPRESENTATION A. Any individual may present a concern relating to working conditions to the General Manager pursuant to the administrative procedures of the District, if any, and have such concern fairly considered, without the participation of a recognized employee organization. The individual may be represented by any person of his/her choosing.. B. If an employee or group of employees who are members of a recognized employee organization present a concern to the General Manager, he/she shall notify an affected recognized employee organization of such concerns within three (3) days of receiving it. C. The right to individual representation provided above is not intended to nor shall it confer a right to bargain or negotiate individual terms and conditions of employment. 5.12 EMPLOYER-EMPLOYEE COMMUNICATIONS A. The General Manager shall make available space on a bulletin board or other reasonable means of communication to a recognized employee organization, so that it may communicate with its members. No employee organization literature may be distributed in work areas, nor may any person solicit employees during working time. The General Manager shall communicate to all employees and all recognized employee organizations the contents of this Chapter. B. Recognized employee organizations may use District facilities for meetings of District employees, provided such meetings are held outside of regularly scheduled working hours for the employees in attendance, space permitting. Recognized employee organizations must obtain permission from the General Manager or designee to use District facilities, as discussed in Section 5.07(B), above. 13 5.13 INFORMATION REQUESTS A recognized employee organization may request that the General Manager provide documents or information that are necessary and relevant to their representation rights, such as the preparation or processing of a grievance, for consulting, or for meeting and conferring. The District shall not, however, be required to provide information in a particular form requested or desired by the requestor. 5.14 INTERPRETATION This Chapter shall be administered and construed as follows: A. Nothing in this Chapter shall be construed to deny to any person, employee, organization, the District, or any authorized officer, body or other representative of the District, the rights, powers and authority granted by federal or state law. B. This Chapter shall be interpreted so as to carry out the purposes set forth in Section 5.01. 5.15 AMENDMENTS After consulting with recognized employee organizations, the Board may from time to time amend this Chapter. 5.16 SEVERABILITY If any provision of this Chapter, or the application of such provision to any persons or circumstances, is held invalid, the remainder of this Chapter, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 SUBMITTED BY: Eid Fakhouri, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Kevin Koeppen, Assistant Chief of Finance Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Adopt Resolution No. 4360 Amending Policy No. 27, the Investment Policy, of District’s Code of Ordinances and the Re-Delegation of Authority for All Investment Related Activities to the Chief Financial Officer GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution No. 4360 amending Policy No. 27, the Investment Policy, of the District’s Code of Ordinances and re- delegate authority for all investment related activities to the Chief Financial Officer, in accordance with Government Code Section 53607. COMMITTEE ACTION: See Attachment A. PURPOSE: Government Code Section 53646 recommends that the District’s Investment Policy be tendered to the Board on an annual basis for review. In addition, Government Code Section 53607 requires that for the Board’s delegation of investment responsibilities to the Chief Financial Officer to remain effective, the governing board must re- delegate authority over investment activities on an annual basis. ANALYSIS: The primary goals of the Investment Policy are to assure compliance with the California Government Code, Sections 53600 et seq. The primary objectives, in priority order, of investment activities are: 1. Protect the principal of the funds. 2. Remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 3. The District’s return is a market rate of return that is commensurate with the conservative investments approach to meet the first two objectives of safety and liquidity. The code provides a broad range of investment options for local agencies, including Federal Treasuries, Federal Agencies, Callable Federal Agencies, the State Pool, the County Pool, high-grade corporate debt, and others. Each year, staff reviews the legislative changes to the California Government Code to ensure our Investment Policy reflects the most recent updates approved by the California State Legislature. During this year’s policy review, there were no legislative changes that affect our Investment Policy. On an annual basis, staff submits the Investment Policy to our list of Broker/Dealers for their professional input and guidance of the District’s Investment Policy. This year, Otay’s Broker/Dealers recommended 3 changes be made to our Investment Policy. Staff reviewed these changes and recommend the following updates be made: 1. Section 8.04: The current wording is interpreted by our Broker/Dealers as restricting the purchase of Certificates of Deposits (CDs) to be made directly from FDIC insured entities only. This restriction prevents the District from purchasing negotiable FDIC insured CDs through our Broker/Dealers. The revised language removes the restriction and allows the District to purchase FDIC insured CDs through Otay’s Broker/Dealers. 2. Section 8.05: The revised language reduces the percentage of commercial paper investment the District can own from 10 percent to no more than 2 percent of the outstanding commercial paper of any single issuer. This change is recommended to reduce the District’s overall investment risk. 3. Section 8.06: The revised language reduces the percentage of medium-term notes the District can own from 10 percent to no more than 2 percent of the outstanding medium-term notes of any single issuer. This change is recommended to reduce the District’s overall investment risk. Because of the District’s adherence to a conservative range of authorized investments, we have been able to maintain a healthy and diversified portfolio that meets our overall investment objectives and supports our long-term financial plans. The policy is consistent with the current law and the overall objectives of the policy are being met. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Demonstrate financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. Attachments: A) Committee Action B) Resolution No. 4360 Exhibit 1 - Policy No. 27 Strike-through Exhibit 2 – Policy No. 27 Proposed ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 4360 Amending Policy No. 27, the Investment Policy, of District’s Code of Ordinances and the Re-Delegation of Authority for All Investment Related Activities to the Chief Financial Officer COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on April 15, 2019 and the following comments were made: • Staff is requesting that the Board adopt Resolution No. 4360 amending Policy No. 27, the Investment Policy, of the District’s Code of Ordinances and redelegate authority for all investment related activities to the Chief Financial Officer, in accordance with government Code Section 53607. • Staff reviewed information in the staff report. • The policy provides guidance for making prudent investment decisions and assures ratepayers that the District’s funds are invested safely, are liquid to meet demands and obligations, and the District is earning a reasonable market rate of return. • Staff presented proposed changes to the policy and noted a minor edit to the Glossary with regard to the Federal Deposit Insurance Corporation (FDIC). The Committee felt the proposed policy changes were very clear and straightforward and had no inquiries. The Committee supported staff’s recommendation and presentation to the full board on the consent calendar. Page 1 of 2 RESOLUTION NO.4360 WHEREAS, the Otay Water District Board of Directors has been presented with an amended Investment Policy No. 27 of the District’s Code of Ordinances for the financial management of the Otay Water District; and WHEREAS, the amended Investment Policy has been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended Investment Policy; and WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the amended Investment Policy, incorporated herein as Exhibit 2, is hereby adopted. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 1st day of May 2019, by the following vote: Ayes: Noes: Abstain: Absent: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING INVESTMENT POLICY NO.27 OF THE DISTRICT’S CODE OF ORDINANCES Attachment B Page 2 of 2 _______________________ President ATTEST: ____________________________ District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 1 of 19 1.0: POLICY It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds. 2.0: SCOPE This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include: 2.1) General Fund 2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund 2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund 2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB) 2.4) Debt Reserve Fund Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by the legal documents that govern the terms of such debt issuances. 3.0: PRUDENCE Investments should be made with judgment and care, under current prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Exhibit 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 2 of 19 The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0: OBJECTIVE As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. 4.2) Liquidity: The Otay Water District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 4.3) Return on Investment: The Otay Water District’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 3 of 19 53692. Management responsibility for the investment program is hereby delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. 6.0: ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the District. 7.0: AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Chief Financial Officer shall maintain a list of District selected financial institutions and security broker/dealers authorized and approved to provide investment services in the State of California. Investment services include the buying or selling of permissible investments such as treasuries, government agencies, etc. for delivery to the custodian bank. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 4 of 19 qualified bidders for investment transactions must supply the District with the following, as appropriate:  Audited Financial Statements.  Proof of Financial Industry Regulatory Authority (FINRA) certification.  Proof of state registration.  Completed broker/dealer questionnaire.  Certification of having read the District’s Investment Policy.  Evidence of adequate insurance coverage. An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer through which the District invests. 8.0: AUTHORIZED AND SUITABLE INVESTMENTS From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of securities, as further limited herein: 8.01) United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. 8.02) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $65 million). The District may also invest bond proceeds in LAIF with the same but independent maximum limitation. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 5 of 19 8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 6 of 19  Federal Home Loan Bank (FHLB)  Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac")  Federal National Mortgage Association (FNMA or "Fannie Mae")  Government National Mortgage Association (GNMA or “Ginnie Mae”)  Federal Farm Credit Bank (FFCB)  Federal Agricultural Mortgage Corporation ( FAMCA or “Farmer Mac”) There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity from the settlement date limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A” rating or higher by a nationally recognized statistical rating organization. 8.04) Interest-bearing demand deposit accounts and Certificates of Deposit (CD) willmust be made only in Federal Deposit Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with California Government Code, Section 53652. Certificates of Deposit (CD) will be made only to the FDIC-insured limit of $250,000. Investments in CD’s are limited to 15 percent of the District’s portfolio. 8.05) Commercial paper, which is short-term, unsecured promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 10 2 percent of the outstanding paper of an issuing corporation, and maximum investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code, Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio. and no more than 10 percent of the outstanding commercial paper of any single issuer. 8.06) Medium-term notes defined as all corporate debt securities with a maximum remaining maturity of five years from OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 7 of 19 the settlement date or less, and that meet the further requirements of California Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the District’s portfolio and no more than 2 percent of the outstanding medium- term notes of any single issuer. 8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio. 8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09) Under the provisions of California Government Code 53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero interest accrual if held to maturity. Also, the borrowing of funds for investment purposes, known as leveraging, is prohibited. 9.0: INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:  A description of eligible investment securities, and a written statement of investment policy and objectives.  A description of interest calculations and how it is distributed, and how gains and losses are treated.  A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 8 of 19  A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed.  A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc., utilized by the pool/fund?  A fee schedule, and when and how is it assessed.  Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 10.0 COLLATERALIZATION Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 11.0: SAFEKEEPING AND CUSTODY All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the District and evidenced by safekeeping receipts. 12.0: DIVERSIFICATION The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial institution. 13.0: MAXIMUM MATURITIES OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 9 of 19 To the extent possible, the Otay Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the settlement date of the purchase. However, for time deposits with banks or savings and loan associations, investment maturities will not exceed two years. Investments in commercial paper will be restricted to 270 days. 14.0: INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 15.0: PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark. 16.0: REPORTING The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following:  A listing of individual securities held at the end of the reporting period by authorized investment category.  Average life and final maturity of all investments listed. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 10 of 19  Coupon, discount or earnings rate.  Par value, amortized book value, and market value.  Percentage of the portfolio represented by each investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 11 of 19 17.0: INVESTMENT POLICY ADOPTION The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be reviewed annually by the Board and any modifications made thereto must be approved by the Board. 18.0: GLOSSARY See Appendix A. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 12 of 19 APPENDIX A: GLOSSARY ACTIVE INVESTING: Active investors will purchase investments and continuously monitor their activity, often looking at the price movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER/DEALER: Any individual or firm in the business of buying and selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or other firms, or become a part of the firm's holdings. CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing, FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 13 of 19 COMMERCIAL PAPER: An unsecured short-term promissory note, issued by corporations, with maturities ranging from 2 to 270 days. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 14 of 19 DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures deposits in member banks and thrifts, currently up to $100,000 per deposit. FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest. FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A stockholder owned, publicly traded company chartered by the United OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 15 of 19 States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD). FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities. INTEREST-ONLY STRIPS: A mortgage backed instrument where the investor receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 16 of 19 stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested. INVERSE FLOATER: A bond or note that does not earn a fixed rate of interest. Rather, the interest rate is tied to a specific interest rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment. LEVERAGE: Investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 17 of 19 MUTUAL FUNDS: An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds, and money market instruments. MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy. PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 18 of 19 QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REGIONAL DEALER: A securities broker/dealer, registered with the Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding securities issues following their initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 19 of 19 STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 1 of 17 1.0: POLICY It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds. 2.0: SCOPE This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include: 2.1) General Fund 2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund 2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund 2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB) 2.4) Debt Reserve Fund Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by the legal documents that govern the terms of such debt issuances. 3.0: PRUDENCE Investments should be made with judgment and care, under current prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Exhibit 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 2 of 17 The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0: OBJECTIVE As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. 4.2) Liquidity: The Otay Water District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 4.3) Return on Investment: The Otay Water District’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through 53692. Management responsibility for the investment program is hereby OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 3 of 17 delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. 6.0: ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the District. 7.0: AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Chief Financial Officer shall maintain a list of District selected financial institutions and security broker/dealers authorized and approved to provide investment services in the State of California. Investment services include the buying or selling of permissible investments such as treasuries, government agencies, etc. for delivery to the custodian bank. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the District with the following, as appropriate: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 4 of 17  Audited Financial Statements.  Proof of Financial Industry Regulatory Authority (FINRA) certification.  Proof of state registration.  Completed broker/dealer questionnaire.  Certification of having read the District’s Investment Policy.  Evidence of adequate insurance coverage. An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer through which the District invests. 8.0: AUTHORIZED AND SUITABLE INVESTMENTS From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of securities, as further limited herein: 8.01) United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. 8.02) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $65 million). The District may also invest bond proceeds in LAIF with the same but independent maximum limitation. 8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 5 of 17  Federal Home Loan Bank (FHLB)  Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac")  Federal National Mortgage Association (FNMA or "Fannie Mae")  Government National Mortgage Association (GNMA or “Ginnie Mae”)  Federal Farm Credit Bank (FFCB)  Federal Agricultural Mortgage Corporation ( FAMCA or “Farmer Mac”) There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity from the settlement date limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A” rating or higher by a nationally recognized statistical rating organization. 8.04) Interest-bearing demand deposit accounts must be made only in Federal Deposit Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with California Government Code, Section 53652. Certificates of Deposit (CD) will be made only to the FDIC-insured limit of $250,000. Investments in CD’s are limited to 15 percent of the District’s portfolio. 8.05) Commercial paper, which is short-term, unsecured promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 2 percent of the outstanding paper of an issuing corporation, and maximum investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code, Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio. 8.06) Medium-term notes defined as all corporate debt securities with a maximum remaining maturity of five years from the settlement date or less, and that meet the further requirements of California Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 6 of 17 District’s portfolio and no more than 2 percent of the outstanding medium-term notes of any single issuer. 8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio. 8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09) Under the provisions of California Government Code 53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero interest accrual if held to maturity. Also, the borrowing of funds for investment purposes, known as leveraging, is prohibited. 9.0: INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:  A description of eligible investment securities, and a written statement of investment policy and objectives.  A description of interest calculations and how it is distributed, and how gains and losses are treated.  A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed.  A schedule for receiving statements and portfolio listings. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 7 of 17  Are reserves, retained earnings, etc., utilized by the pool/fund?  A fee schedule, and when and how is it assessed.  Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 10.0 COLLATERALIZATION Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 11.0: SAFEKEEPING AND CUSTODY All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the District and evidenced by safekeeping receipts. 12.0: DIVERSIFICATION The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial institution. 13.0: MAXIMUM MATURITIES To the extent possible, the Otay Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the settlement date OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 8 of 17 of the purchase. However, for time deposits with banks or savings and loan associations, investment maturities will not exceed two years. Investments in commercial paper will be restricted to 270 days. 14.0: INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 15.0: PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark. 16.0: REPORTING The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following:  A listing of individual securities held at the end of the reporting period by authorized investment category.  Average life and final maturity of all investments listed.  Coupon, discount or earnings rate.  Par value, amortized book value, and market value.  Percentage of the portfolio represented by each investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 9 of 17 17.0: INVESTMENT POLICY ADOPTION The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be reviewed annually by the Board and any modifications made thereto must be approved by the Board. 18.0: GLOSSARY See Appendix A. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 10 of 17 APPENDIX A: GLOSSARY ACTIVE INVESTING: Active investors will purchase investments and continuously monitor their activity, often looking at the price movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER/DEALER: Any individual or firm in the business of buying and selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or other firms, or become a part of the firm's holdings. CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing, FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: An unsecured short-term promissory note, issued by corporations, with maturities ranging from 2 to 270 days. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 11 of 17 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 12 of 17 FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures deposits in member banks and thrifts. FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest. FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A stockholder owned, publicly traded company chartered by the United States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD). OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 13 of 17 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities. INTEREST-ONLY STRIPS: A mortgage backed instrument where the investor receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested. INVERSE FLOATER: A bond or note that does not earn a fixed rate of interest. Rather, the interest rate is tied to a specific interest OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 14 of 17 rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment. LEVERAGE: Investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. MUTUAL FUNDS: An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 15 of 17 various investment vehicles, such as stocks, bonds, and money market instruments. MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy. PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 16 of 17 RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REGIONAL DEALER: A securities broker/dealer, registered with the Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding securities issues following their initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 17 of 17 TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 SUBMITTED BY: Andrea Carey Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 574 and Resolution No. 4362 Amending Appendix A with the Proposed Changes to Various Fees, Charges, and Deposits; Amending Section 33 General Regulations for Use of Water Meters; Amending Section 34 Issuance and Payment of Water Bills; and Amending Policy 5B Records Policy and Procedures Accessibility, of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 574 and Resolution No. 4362 amending Appendix A with the proposed changes to various fees, charges, and deposits; amending Section 33 General Regulations for Use of Water Meters; amending Section 34 Issuance and Payment of Water Bills; and amending Policy 5B Records Policy and Procedures Accessibility, of the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board the proposed changes to various fees, charges, and deposits in Appendix A, and amending Sections 33, 34, and Policy 5B, of the District’s Code of Ordinances. ANALYSIS: Periodically, the District analyzes fees to ensure all costs are recovered from the individual benefiting from the service performed. At the March 1, 2017 Board meeting was the last time staff brought an update to the Board. Staff has also reviewed common deposits required from customers to ensure the amounts are appropriate for the current time period. Proposed Fee Changes For each fee, staff determined the time spent on the activity. Various staff members were consulted to determine the average time spent completing each task in the office and/or field. In addition, payroll personnel were asked to provide fully loaded labor rates. Using these labor rates and the average time spent to complete a specific task, staff then determined the overall cost required to provide each service. With regard to updating the copy cost, staff also inquired with the San Diego County Water Authority member agencies, the Cities of Chula Vista and San Diego, and the County of San Diego for their copy cost and the District’s proposed charge is in alignment with these agencies. To ensure financial equity to all rate payers, staff is recommending changes to the following fees effective June 1, 2019, as shown in the table below. Code Numbers Item Current Fees Proposed Fees 25.03 & 53.10/11 Set-up Fee for Accounts $10.00 $15.00 34.02 G.1. Lien Processing Fee New $50.00 34.02 G.2. Delinquent Tax Roll Fee New $40.00 Policy 5B Copies of Identifiable Public Records 8 ½” x 11” .10/page .20/page Set-Up Fee A setup fee is charged on any account transferred to a new customer. This fee covers the field and administrative costs associated with opening a new account. Staff has worked hard over the years to minimize the costs of transferring service and, even with this increase, continues to have one of the lowest set-up fees in the county. Lien Processing Fee This proposed new fee covers the costs of processing liens on delinquent owner accounts. California Water Code 72102 allows water districts to file liens with the county for unpaid water and sewer charges. In 2018, the District filed 36 liens. Staff identifies owner accounts that have delinquent balances over 60 days and begins the lien process on these accounts. Staff is required to send an intent to lien letter 30 days prior to filing the lien with the county. This fee will offset staff time associated with researching, noticing and filing the lien with the county. Delinquent Tax Roll Fee In addition to filing liens on the delinquent owner, on an annual basis Otay sends delinquent owner account balances to the County of San Diego’s tax roll. These balances are then collected through the property’s tax bill and reimbursed to Otay. In 2018, the District sent $34,684.92 to the county for collection. This new proposed fee would cover the costs associated with identifying, noticing and submitting these accounts to the county. The changes to Section 34 of the Code of Ordinances reflect the addition of the two new fees above. Proposed Deposit Changes Code Numbers Item Meter Size Current Fees Proposed Fees 25.04 Deposit for Non-Property Owners .75” 75.00 100.00 1” 150.00 200.00 1.5” 200.00 250.00 33.07 Customer Request for Meter Test (Deposit) .75”-1” 25.00 60.00 1.5”-2” 50.00 120.00 3” and Larger 125.00 300.00 Deposits for Non-Property Owners Customers who start service with Otay and are not the owner of the property are required to pay a deposit. This deposit remains on the customer’s account for either 1)12-months, provided they have no more than one late payment during that time period, or 2) until the account is closed. Staff is proposing an increase to this deposit. These new amounts were determined by looking at the District’s average bills for each meter size. The vast majority of tenant deposits are collected on residential .75” meters. The current average bill for this customer class is $80.00 per month. Staff feels the increase from $75 to $100 will reduce the District’s uncollectable balances without placing too heavy a burden on an individual starting new water service. It is important to understand that even if a customer’s initial deposit is refunded due to good payment history, the District’s Code of Ordinances allows for additional deposits, up to two times the average annual monthly bill, to be placed on any account with a repeated history of delinquency. Customer Request for Meter Test The District allows a customer to request for their meter to be tested if they feel it is not working properly. The District asks for the customer to pay a deposit for this test, which is refunded to the customer if the meter does not meet appropriate accuracy ratings. In order to be reimbursed for current labor rates and staff time associated with this meter testing, staff is proposing an increase to these deposit amounts. In addition, staff has proposed a change to the language in Section 33 regarding the accuracy of the meter test to conform to AWWA’s accuracy ratings which are used throughout the industry to determine meter performance. Fees Removed The District provides copies of records to the public pursuant to the California Public Records Act. As the vast majority of the public has the ability to receive information in electronic format, records have been mainly provided electronically. As such, Policy 5B is being updated to reflect this practice. The changes to the policy is noted in the attached strike-through copy, Exhibit 1a. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Based on the average number of occurrences for each fee, staff estimates an increase of approximately $30,000 in annual revenue. The proposed changes reflect the current labor rates and time involved for each task. Updating these fees help to ensure the financial equity of all rate payers as the fees are only charged to those customers that require these services. STRATEGIC GOAL: This revenue source will help the District meet its fiscal responsibility to its ratepayers. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B - Ordinance No. 574 Exhibit 1 – Section 33 Strike-through Exhibit 2 – Section 34 Strike-through Exhibit 3 – Appendix A Strike-through Attachment C – Section 33 Proposed Attachment D – Section 34 Proposed Attachment E – Appendix A Proposed Attachment F – Resolution No. 4362 Exhibit 1a – Policy No. 5B Strike-through Attachment G - Policy No. 5B Proposed ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 574 and Resolution No. 4362 Amending Appendix A with the Proposed Changes to Various Fees, Charges, and Deposits; Amending Section 33 General Regulations for Use of Water Meters; Amending Section 34 Issuance and Payment of Water Bills; and Amending Policy 5B Records Policy and Procedures Accessibility, of the District’s Code of Ordinances COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on April 15, 2019 and the following comments were made: • Staff is requesting that the Board adopt Ordinance No. 574 and Resolution 4362 amending Appendix A with the proposed changes to various fees, charges, and deposits; amending section 33 General Regulations for Use of Water Meters; amending Section 34 Issuance and Payment of Water Bills; and amending Policy 5B Records Policy and Procedures Accessibility, of the District’s Code of Ordinances. • Staff reviewed information in the staff report. • In response to an inquiry from the Committee, staff indicated that the proposed fee changes does cover the District’s costs. • Staff indicated with regard to Public Records Requests (PRRs) that, today, it is rare to fulfill requests through hard copies of records. The preponderance of the public has the ability to receive records in electronic format and the majority of requests are fulfilled electronically. It was noted that the District cannot charge for the time it takes to search for records per California State Statute. • The Committee inquired how many staff hours it is taking to fulfill PRRs. It was indicated that staff has not tracked the hours to fulfill requests and staff has been able to meet the demands of the requests. It was discussed if a request comes in that is overly burdensome, the District could consider outsourcing the request and charging the cost to the requestor. • Staff indicated, in response to a question from the Committee, that the deposit fee for non-property owners (reference page 3 of the staff report) was calculated to be approximately 1 1/3 the average monthly bill based on meter size. Staff indicated that in February 2020, new legislation (SB 998) concerning the delinquency process will be modified to extend the time period for when a customer can be locked for nonpayment. Staff will likely propose another fee change at that time to assure costs can be recovered. It was indicated that the current deposit amount of $75 for a 3/4” meter has been in place for quite some time (over 10 years). • It was discussed that a deposit fee is not required from a property owner as the District could place a lien on the property for any outstanding bills. • The District’s current bad debt percentage is 0.02% of overall revenues (this includes both property owners and tenants). Staff noted that the District utilizes outside collection agencies and the District’s collection rate is approximately 17%. • In response to another inquiry from the Committee, staff indicated that the District does not perform credit background checks to determine if a deposit is required by the customer. However, the District will consider a letter of credit from a previous water provider or SDG&E, or if the customer has a long term history at another property within the District’s service area. It was further discussed that the District currently waives the deposit for about 1% of the approximately 1400 tenant customers. Staff noted that the majority of tenant customers pay the deposit as it is common practice by utilities to require a deposit. • Staff indicated that before a lien can be placed on a customer’s property their past due balance must be over $100 and be 60-days past due. The District must also send the customer a notice of “Intent to Lien” their property. Thirty-days following the lien notice, the District can place a lien on the property. The District would, at this point, charge the customer the $50 fee for the cost to place the lien on their property. Staff indicated that the imposed fee fully covers the District’s expense to place the lien on the customer’s property. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board on the consent calendar. 1 ORDINANCE NO. 574 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 33 GENERAL REGULATIONS FOR USE OF WATER METERS; SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS; AND APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Section 33, General Regulations for Use of Water Meters; Section 34 Issuance and Payment of Water Bills; and Appendix A, be amended as per Exhibits 1, 2 & 3 to this resolution. NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 33, General Regulations for Use of Water Meters; (Attachment C); Section 34 Issuance and Payment of Water Bills (Attachment D); and Appendix A (Attachment E) of the Code of Ordinances shall become effective June 1, 2019. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 1st day of May 2019, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President Attachment B 2 ATTEST: __________________________ District Secretary 33- 1 SECTION 33 GENERAL REGULATIONS FOR USE OF WATER METERS 33.01 FURNISHED AND INSTALLED ONLY BY DISTRICT Water meters used for service from a District water distri- bution system shall be furnished and installed by the District. Meters will be furnished only for use for a specific parcel of land. Master meters and meters for irrigation purposes may be furnished for more than one specific parcel of land upon the ap- proval by the District. The Fees and charges are set forth in Appendix A, 28.02. 33.02 OWNERSHIP OF METERS The District shall retain title to all meters installed within the District. Payment by a customer of installation fees, capacity fees, meter charges, connection charges or any other fees or charges shall not transfer ownership of a meter from the District to the customer. 33.03 RELOCATION OF METERS With prior District approval, water meters may be moved at the request of the owner from one location to another location on the same parcel or within the same tract owned by the customer upon payment of an amount determined by the District. 33.04 METER TURN-OFF REQUESTED BY CUSTOMER At the request of the customer, a water meter may be turned off and locked without charge; provided, however, the system charge shall continue to apply. 33.05 REMOVAL OF METERS A. Abandonment of Service. The District may remove any water meter where the customer has abandoned water ser- vice through that meter. B. Permanent Removal of Meters for Agricultural or Irriga- tion Service. When service is no longer required, me- ters for agricultural and irrigation service may be re- moved upon the request of a lessee who paid the fees and charges (or upon request of the owner if the lease has expired), or upon the request of the owner if the fees were paid by the owner. C. Request for Removal of a Water Meter After Installa- tion. If, after installation of a water meter, a re- quest is made by a customer for the removal of that wa- ter meter from service, the customer shall be credited with the number of Equivalent Dwelling Units ("EDU") Exhibit 1 33- 2 for that meter size. If thereafter a request is made for the installation of the same size water meter at the same location, no capacity fee shall be due. If the customer’s request is for a larger meter, all ca- pacity fees and charges per 28.01 and 28.02 shall be due and payable for all EDUs, less the EDU credit for the meter previously removed. No refund shall be due or payable for any portion of a capacity fee previously paid. The customer shall pay any expenses incurred by the District for removing and replacing the meters. D. Removal of Meters for Delinquent Payment of Water System Charges. If an owner/customer remains delin- quent in the payment of water charges or system charges after written notice of delinquency from the District, the District may remove the owner/customer's water me- ter. Refer to Section 72 for additional information regarding the procedure for removal of the meters. The fees and charges are set forth in Appendix A, 72.04 A.1. If the request for such service is made more than six months after removal of the meter, the request shall be processed as a new order for service and all applicable fees and charges for a new service (except for capacity fees) shall be due and payable. 33.06 READING OF METERS Meters shall be read once each calendar month. Meters are read each time a meter is "turned-on" or "turned- off" and when water service is established as a new account. 33.07 ADJUSTMENT FOR METER INACCURACIES A. Customer Request for Meter Test. A customer may re- quest that the meter for the customer's service be tested for accuracy upon making a deposit with the Dis- trict. The deposit is set forth in Appendix A, 33.07 A. per meter size. B. Results of Meter Test. If upon testing, the meter does not register outside the standard meter accuracy per- centages as set by the AWWA M6 manualmore than five percent (5%) in excess of the rated calibration for such meter size, the deposit shall be retained by the District. If the meter so tested registers more than five percent (5%) in excess of the rated calibration for such meter sizeoutside the standard meter accuracy percentages as set by the AWWA M6 manual, the meter will be replaced by the District and the deposit shall be returned to the customer. No adjustment in billing 33- 3 shall be made for excess registration during any period prior to 120 days before the request for the test. C. Failure of Meter to Register During Service. Should any meter in service fail to register during a billing period, a bill will be issued by the District for the estimated amount of water used during the period of the meter failure, based on prior use under that account. 34-1 SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 34.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE A. Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. B. Due Date. Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date. All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Payment of Charges. 1. Place of Payment. Payments shall not be credited to a customer's account until cash, check, credit card, draft, electronic funds transfer, money order, or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer's account until received at the business office. 2. Returned Check Charges. A returned payment charge (see Appendix A, 34.01 D.2. for charge) shall be added to a customer's account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 34.02 DELINQUENT ACCOUNTS A. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent. B. Late Payment Charge. A late payment charge (see Appendix A, 34.02 B. for charge) of the total amount Exhibit 2 34-2 delinquent shall be added to each delinquent account at the time any amount becomes delinquent, provided that the charge shall not be made on any account which at that time has no delinquencies of record. When a late payment charge is made, such shall be added to the delinquent account as of the date the account becomes delinquent and such charges shall become an inseparable part of the amount due as of that time. C. Notice of Delinquency. A delinquency notice shall be mailed to each customer whose account is delinquent, notifying the customer that service will be turned off unless payment is made. The notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within fifteen (15) calendar days from the date of mailing or presentation of the notice to the customer, or service will be discontinued. D. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. E. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account; however, the partial payment shall not cause removal of the account from a delinquent status and furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. F. Financial Arrangements for Delinquent Accounts. 1. Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service to a delinquent account if financial arrangements, satisfactory to the District, have been established. 2. Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief 34-3 Financial Officer, but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. (a) Handling of Deposit. A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. (b) Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. G. Liens against Property for Delinquent Charges Upon written notice to the property owner, a lien against the property may be secured for unpaid bills. One or both of the following lien procedures may apply: 1. Judgement Lien. In case any charges for water or other services remain unpaid, the amount of the unpaid charges may, in the discretion of the District, be secured at any time by filing for record in the Office of the County Recorder, a certificate specifying the amount of such charges and the name and address of the person liable therefore. The lien acquired thereby shall attach to all property within the County that is owned or thereafter acquired by the person. Such lien shall have the force, priority and effect of a judgment lien and shall continue for 10 years from the filing date, unless released or discharged sooner. The lien may be extended, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien, by filing a new certificate in the Office of the County Recorder. A service charge will be applied to any account where a lien is filed (see Appendix A 34.02 G.1. for charge). 2. Tax Lien. Any unpaid charges or fees that are at least 60 days past due on July 1, may become part of the annual taxes levied upon the property upon which service is provided. In addition, if the charges remain unpaid by July 1, the outstanding charges, plus a service charge (see Appendix A 34.02 G.2. for charge) 34-4 will be added to the “secure tax roll” of the County of San Diego for collection. These lien procedures shall be in addition to any termination of service procedures. HG. Termination and Reinstatement of Water Service Under Delinquent Accounts 1. Termination of Service. The water meter or meters under delinquent accounts may be turned off and locked if payment has not been made in accordance with the Notice of Delinquency. (a) Where an owner or manager is listed by the Dis-trict as the customer of record of the service, the District shall make every good faith effort to inform the actual users of the services when the account is in arrears by means of a notice that service will be terminated in ten days. The notice shall further inform the actual users that they have the right to become cus-tomers of the District without being required to pay the amount due on the delinquent account. (b) Residential water service shall not be termi-nated for non-payment in any of the following situations: (1) During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non-payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for payment, shall be given an opportunity for a review. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time not to exceed 12 months. No termination of service shall be effected for any customer complying with an amortization agreement, if the customer 34-5 also keeps the account current as charges accrue in each subsequent billing period. Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. (2) When a customer has been granted an exten-sion of the period for payment of a bill. (3) On the certification of a licensed physi-cian and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortiza-tion agreement to pay the unpaid balance of any bill asserted to be beyond the means of the customer over a period not to exceed 12 months. (c) The ten-day notice of proposed termination may not be sent to the customer until at least 19 days from the date of mailing of the bill for services. The ten-day period shall not com-mence until five days after the mailing of the notice. (d) The District shall make a reasonable, good faith effort to contact an adult person resid-ing at the premises of the customer by tele-phone or in person, at least 48 hours prior to any termination of service. A charge (see Appendix A, 34.02 HG.1.(. (d) for charge) shall be added to the bill for a contact made in person. (e) Every notice of termination of service pursuant to subdivisions (a) and (c) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. (2) The amount of the delinquency. (3) The date by which payment or arrangements for payment is required in order to avoid termination. (4) The procedure by which the customer may initiate a complaint or request an inves- 34-6 tigation concerning service or charges, except that if the bill for service con-tains a description of that procedure, then the notice is not required to contain that information. (5) The procedure by which the customer may request amortization of the unpaid charges. (6) The procedure for the customer to obtain information on the availability of finan-cial assistance including private, local, state or federal sources, if applicable. (7) The telephone number of a representative of the District who can provide additional information or institute arrangements for payment. (f) If a residential customer fails to comply with an amortization agreement, the District shall not terminate service without giving notice to the customer at least 48 hours prior to termi-nation of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the District. (g) Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday or at any time during which the business offices of the District are not open to the public. (h) No termination of service may be effected with-out compliance with this section and any ser-vice wrongfully terminated shall be restored, without charge, for the restoration of service. (See California Government Code Section 60373.) 2. Reinstatement of Service. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and meter "turn-on" charges, have been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. 3. Meter "Turn-On" Charge. A "turn-on" charge shall be made for turning on any meter which has previously been turned off for a delinquent account. 34-7 The charge to turn-on a meter is set forth in Appendix A, 34.02 HG.3. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $827.54 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $2,104.11 1" $5,260.28 1-1/2" $10,520.55 2" $16,832.88 3" $33,665.76 4 $52,602.75 6" $105,205.50 8" $168,328.80 10" $241,972.65 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,151.04 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4" $15.10 1" $28.04 1-1/2" $63.40 2" $107.84 3" $229.36 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2019. Exhibit 3 Section #Code #Fee Description Meter Size Charges 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1) (continued)4" $367.29 6" $751.85 8" $1,214.16 10" $1,747.63 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4" $18.05 1" $25.51 1-1/2" $44.13 2" $66.47 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4" $39.69 1" $56.05 1-1/2" $96.98 2" $146.04 3" $276.96 4" $424.28 6" $833.54 8" $1,324.59 10" $1,897.47 25 25.03 C.3. Business and Publicly-Owned Monthly Fixed System Charges (1)3/4" $37.38 1" $52.79 1-1/2" $91.35 2" $137.57 3" $260.89 4" $399.65 6" $785.17 8" $1,247.71 10" $1,787.32 25 25.03 C.4.3/4" $31.57 1" $44.59 1-1/2" $77.15 2" $116.17 3" $220.32 4" $337.53 6" $663.10 8" $1,053.74 10" $1,509.46 Irrigation and Commercial Agricultural Monthly Fixed System Charges (1) (1) All Water used in December and billed in January 2019. Section #Code #Fee Description Meter Size Charges 25 25.03 C.5. - Irrigation 3/4" $32.20 1" $45.48 1-1/2" $78.70 2" $118.51 3" $224.75 4" $344.31 6" $686.76 8" $1,074.91 10" $1,539.79 25 25.03 C.6. - Commercial 3/4" $38.14 1" $53.86 1-1/2" $93.21 2" $140.38 3" $266.21 4" $407.80 6" $801.16 8" $1,273.13 10" $1,823.75 25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge 1-10 $3.17 11-22 $5.65 23 or more $7.30 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-4 $2.96 5-9 $5.37 10 or more $6.60 25 25.03 D.3.(b) Business and Publicly-Owned Water Rates (1)All Units $3.75 25 25.03 D.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)All Units $5.47 25 25.03 D.5.(c)Recycled Irrigation Water Rates (1)All Units $4.41 25 25.03 D.6.(c)Recycled Commercial Water Rates (1)All Units $3.12 (1) All Water used in December and billed in January 2019. Recyled Monthly Fixed System Charges (1) Recyled Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.7.(b) Potable Temporary and Construction Water Service Rates (1)All Units $10.94 25 25.03 D.8.(b) Recycled Temporary and Construction Water Service Rates (1)All Units $8.82 25 25.03 D.10.(b) Tank Trucks Water Rates (1)All Units $10.94 25 25.03 D.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.11.(d) Water Rate for Service Outside District Boundaries (1)All Units $10.94 25 25.03 D.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.12.(c) Water Rate for Service Outside Improvement District (1)All Units $10.94 25 25.03 D.13.(c) Fire Service Monthly Charge 3" or less $21.57 more than 4"$29.06 25 25.03 D.14.(b)Government Fee Per Unit $0.42 25 25.03 D.15.(b)Interim Service Water Rate(1)All Units $10.94 25 25.03 E.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.056 25 25.04 A. Deposits for Non-Property Owners 3/4"$75.00 1"$150.00 1-1/2"$200.00 2"$360.00 3"$800.00 4"$1,350.00 6"$3,300.00 8"$4,400.00 10"$5,500.00 (1) All Water used in December and billed in January 2019. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $7,660.34 1" $19,150.85 1-1/2" $38,301.70 2" $61,282.72 3" $122,565.44 4 $191,508.50 6" $383,017.00 8" $612,827.20 10" $880,939.10 - TRIAD 3/4" $5,746.79 1" $14,366.98 1 -1/2" $28,733.95 2" $45,974.32 3" $91,948.64 4 $143,669.75 6" $287,339.50 8" $459,743.20 10" $660,880.85 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $831.53 1" $2,078.83 1-1/2" $4,157.65 2" $6,652.24 3" $13,304.48 4" $20,788.25 6" $41,576.50 8" $66,522.40 10" $95,625.95 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$236.25 $112.11 $348.36 $95.18 3/4" x 9"$251.53 $112.11 $363.64 $95.18 1"$304.86 $112.11 $416.97 $95.18 1.5"$495.51 $112.11 $607.62 $215.76 2"$710.01 $112.11 $822.12 $215.76 3"$2,212.68 $674.99 $2,887.67 $3,848.86 4"$3,843.08 $674.99 $4,518.07 $3,848.86 6"$6,638.04 $1,066.20 $7,704.24 $3,848.86 8"$8,293.74 $1,634.92 $9,928.66 $5,521.46 10"$11,927.94 $1,634.92 $13,562.86 $5,521.46 Section #Code #Fee Description Meter Size Charges 28 28.02 - Potable/Recycled Irrigation 3/4" x 7.5"$236.25 $112.11 $348.36 $242.55 3/4" x 9"$251.53 $112.11 $363.64 $242.55 1"$304.86 $112.11 $416.97 $242.55 1.5"$495.51 $112.11 $607.62 $242.55 2"$710.01 $112.11 $822.12 $242.55 3"$1,531.40 $674.99 $2,206.39 $3,848.86 4"$2,981.40 $674.99 $3,656.39 $3,848.86 6"$5,367.49 $1,066.20 $6,433.69 $3,848.86 8"$7,150.46 $1,634.92 $8,785.38 $5,521.46 10"$10,147.04 $1,634.92 $11,781.96 $5,521.46 - Combined Fire and Domestic 4"$9,143.03 $674.99 $9,818.02 $3,848.86 6"$12,168.57 $1,066.20 $13,234.77 $3,848.86 8"$17,692.22 $1,634.92 $19,327.14 $5,521.46 10"$24,144.03 $1,634.92 $25,778.95 $5,521.46 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4. Temporary Meter Install & Removal 3/4" - 4" (on hydrant) $150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10"Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$25.00 1-1/2" & 2 "$50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.02 B.Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d)Delinquency Tag $15.00 34 34.02 G.3.Meter "Turn-On" Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $3,379.23 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $5,781.67 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by winter average units $2.67 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $14.91 53 53.10 A.4. Residential Sewer Without Consumption History 5/8", 3/4" & larger $43.51 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by winter average units $2.67 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$14.91 1"$37.27 1.5"$74.55 2"$119.27 3"$223.64 4"$372.73 6"$745.45 8" $1,192.73 10"$1,714.54 Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates with Consumption History (2) Per dwelling unit $19.08 53 53.11 Commercial and Institutional Sewer Rates Rate multiplied by Low Strength $2.67 annual avg.Medium Strength $3.31 units High Strength $4.56 53 53.11 Commercial and Institutional Monthly Fixed Sewer System Charges (2).75"$14.91 1"$37.27 1.5"$74.55 2"$119.27 3"$223.64 4"$372.73 6"$745.45 8" $1,192.73 10"$1,714.54 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes $100.00/year for first copy and $200.00/year for each copy thereafter Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 22 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 18 Per acre I.D. 18 Will not exceed per each day the violation is identified or continues. $20.00/year or $0.50/meeting Per $1000 of assessed value for I.D. 27 33- 1 SECTION 33 GENERAL REGULATIONS FOR USE OF WATER METERS 33.01 FURNISHED AND INSTALLED ONLY BY DISTRICT Water meters used for service from a District water distri- bution system shall be furnished and installed by the District. Meters will be furnished only for use for a specific parcel of land. Master meters and meters for irrigation purposes may be furnished for more than one specific parcel of land upon the ap- proval by the District. The Fees and charges are set forth in Appendix A, 28.02. 33.02 OWNERSHIP OF METERS The District shall retain title to all meters installed within the District. Payment by a customer of installation fees, capacity fees, meter charges, connection charges or any other fees or charges shall not transfer ownership of a meter from the District to the customer. 33.03 RELOCATION OF METERS With prior District approval, water meters may be moved at the request of the owner from one location to another location on the same parcel or within the same tract owned by the customer upon payment of an amount determined by the District. 33.04 METER TURN-OFF REQUESTED BY CUSTOMER At the request of the customer, a water meter may be turned off and locked without charge; provided, however, the system charge shall continue to apply. 33.05 REMOVAL OF METERS A. Abandonment of Service. The District may remove any water meter where the customer has abandoned water ser- vice through that meter. B. Permanent Removal of Meters for Agricultural or Irriga- tion Service. When service is no longer required, me- ters for agricultural and irrigation service may be re- moved upon the request of a lessee who paid the fees and charges (or upon request of the owner if the lease has expired), or upon the request of the owner if the fees were paid by the owner. C. Request for Removal of a Water Meter After Installa- tion. If, after installation of a water meter, a re- quest is made by a customer for the removal of that wa- ter meter from service, the customer shall be credited with the number of Equivalent Dwelling Units ("EDU") for that meter size. If thereafter a request is made Attachment C 33- 2 for the installation of the same size water meter at the same location, no capacity fee shall be due. If the customer’s request is for a larger meter, all ca- pacity fees and charges per 28.01 and 28.02 shall be due and payable for all EDUs, less the EDU credit for the meter previously removed. No refund shall be due or payable for any portion of a capacity fee previously paid. The customer shall pay any expenses incurred by the District for removing and replacing the meters. D. Removal of Meters for Delinquent Payment of Water System Charges. If an owner/customer remains delin- quent in the payment of water charges or system charges after written notice of delinquency from the District, the District may remove the owner/customer's water me- ter. Refer to Section 72 for additional information regarding the procedure for removal of the meters. The fees and charges are set forth in Appendix A, 72.04 A.1. If the request for such service is made more than six months after removal of the meter, the request shall be processed as a new order for service and all applicable fees and charges for a new service (except for capacity fees) shall be due and payable. 33.06 READING OF METERS Meters shall be read once each calendar month. Meters are read each time a meter is "turned-on" or "turned- off" and when water service is established as a new account. 33.07 ADJUSTMENT FOR METER INACCURACIES A. Customer Request for Meter Test. A customer may re- quest that the meter for the customer's service be tested for accuracy upon making a deposit with the Dis- trict. The deposit is set forth in Appendix A, 33.07 A. per meter size. B. Results of Meter Test. If upon testing, the meter does not register outside the standard meter accuracy per- centages as set by the AWWA M6 manual, the deposit shall be retained by the District. If the meter tested registers outside the standard meter accuracy percent- ages as set by the AWWA M6 manual, the meter will be replaced by the District and the deposit shall be re- turned to the customer. No adjustment in billing shall be made for excess registration during any period prior to 120 days before the request for the test. C. Failure of Meter to Register During Service. Should any meter in service fail to register during a billing 33- 3 period, a bill will be issued by the District for the estimated amount of water used during the period of the meter failure, based on prior use under that account. 34-1 SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 34.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE A. Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. B. Due Date. Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date. All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Payment of Charges. 1. Place of Payment. Payments shall not be credited to a customer's account until cash, check, credit card, draft, electronic funds transfer, money order, or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer's account until received at the business office. 2. Returned Check Charges. A returned payment charge (see Appendix A, 34.01 D.2. for charge) shall be added to a customer's account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 34.02 DELINQUENT ACCOUNTS A. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent. B. Late Payment Charge. A late payment charge (see Appendix A, 34.02 B. for charge) of the total amount Attachment D 34-2 delinquent shall be added to each delinquent account at the time any amount becomes delinquent, provided that the charge shall not be made on any account which at that time has no delinquencies of record. When a late payment charge is made, such shall be added to the delinquent account as of the date the account becomes delinquent and such charges shall become an inseparable part of the amount due as of that time. C. Notice of Delinquency. A delinquency notice shall be mailed to each customer whose account is delinquent, notifying the customer that service will be turned off unless payment is made. The notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within fifteen (15) calendar days from the date of mailing or presentation of the notice to the customer, or service will be discontinued. D. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. E. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account; however, the partial payment shall not cause removal of the account from a delinquent status and furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. F. Financial Arrangements for Delinquent Accounts. 1. Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service to a delinquent account if financial arrangements, satisfactory to the District, have been established. 2. Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief 34-3 Financial Officer, but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. (a) Handling of Deposit. A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. (b) Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. G. Liens against Property for Delinquent Charges Upon written notice to the property owner, a lien against the property may be secured for unpaid bills. One or both of the following lien procedures may apply: 1. Judgement Lien. In case any charges for water or other services remain unpaid, the amount of the unpaid charges may, in the discretion of the District, be secured at any time by filing for record in the Office of the County Recorder, a certificate specifying the amount of such charges and the name and address of the person liable therefore. The lien acquired thereby shall attach to all property within the County that is owned or thereafter acquired by the person. Such lien shall have the force, priority and effect of a judgment lien and shall continue for 10 years from the filing date, unless released or discharged sooner. The lien may be extended, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien, by filing a new certificate in the Office of the County Recorder. A service charge will be applied to any account where a lien is filed (see Appendix A 34.02 G.1. for charge). 2. Tax Lien. Any unpaid charges or fees that are at least 60 days past due on July 1, may become part of the annual taxes levied upon the property upon which service is provided. In addition, if the charges remain unpaid by July 1, the outstanding charges, plus a service charge (see Appendix A 34.02 G.2. for charge) will be added to the “secure tax roll” of the County of San Diego for collection. 34-4 These lien procedures shall be in addition to any termination of service procedures. H. Termination and Reinstatement of Water Service Under Delinquent Accounts 1. Termination of Service. The water meter or meters under delinquent accounts may be turned off and locked if payment has not been made in accordance with the Notice of Delinquency. (a) Where an owner or manager is listed by the Dis-trict as the customer of record of the service, the District shall make every good faith effort to inform the actual users of the services when the account is in arrears by means of a notice that service will be terminated in ten days. The notice shall further inform the actual users that they have the right to become cus-tomers of the District without being required to pay the amount due on the delinquent account. (b) Residential water service shall not be termi-nated for non-payment in any of the following situations: (1) During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non-payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for payment, shall be given an opportunity for a review. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time not to exceed 12 months. No termination of service shall be effected for any customer complying with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period. 34-5 Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. (2) When a customer has been granted an exten-sion of the period for payment of a bill. (3) On the certification of a licensed physi-cian and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortiza-tion agreement to pay the unpaid balance of any bill asserted to be beyond the means of the customer over a period not to exceed 12 months. (c) The ten-day notice of proposed termination may not be sent to the customer until at least 19 days from the date of mailing of the bill for services. The ten-day period shall not com-mence until five days after the mailing of the notice. (d) The District shall make a reasonable, good faith effort to contact an adult person resid-ing at the premises of the customer by tele-phone or in person, at least 48 hours prior to any termination of service. A charge (see Appendix A, 34.02 H.1. (d) for charge) shall be added to the bill for a contact made in person. (e) Every notice of termination of service pursuant to subdivisions (a) and (c) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. (2) The amount of the delinquency. (3) The date by which payment or arrangements for payment is required in order to avoid termination. (4) The procedure by which the customer may initiate a complaint or request an inves-tigation concerning service or charges, except that if the bill for service con-tains a description of that procedure, 34-6 then the notice is not required to contain that information. (5) The procedure by which the customer may request amortization of the unpaid charges. (6) The procedure for the customer to obtain information on the availability of finan-cial assistance including private, local, state or federal sources, if applicable. (7) The telephone number of a representative of the District who can provide additional information or institute arrangements for payment. (f) If a residential customer fails to comply with an amortization agreement, the District shall not terminate service without giving notice to the customer at least 48 hours prior to termi-nation of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the District. (g) Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday or at any time during which the business offices of the District are not open to the public. (h) No termination of service may be effected with-out compliance with this section and any ser-vice wrongfully terminated shall be restored, without charge, for the restoration of service. (See California Government Code Section 60373.) 2. Reinstatement of Service. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and meter "turn-on" charges, have been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. 3. Meter "Turn-On" Charge. A "turn-on" charge shall be made for turning on any meter which has previously been turned off for a delinquent account. The charge to turn-on a meter is set forth in Appendix A, 34.02 H.3. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $827.54 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $2,104.11 1" $5,260.28 1-1/2" $10,520.55 2" $16,832.88 3" $33,665.76 4 $52,602.75 6" $105,205.50 8" $168,328.80 10" $241,972.65 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,151.04 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $15.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4" $15.10 1" $28.04 1-1/2" $63.40 2" $107.84 3" $229.36 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2019. Attachment E Section #Code #Fee Description Meter Size Charges 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1) (continued)4" $367.29 6" $751.85 8" $1,214.16 10" $1,747.63 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4" $18.05 1" $25.51 1-1/2" $44.13 2" $66.47 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4" $39.69 1" $56.05 1-1/2" $96.98 2" $146.04 3" $276.96 4" $424.28 6" $833.54 8" $1,324.59 10" $1,897.47 25 25.03 C.3. Business and Publicly-Owned Monthly Fixed System Charges (1)3/4" $37.38 1" $52.79 1-1/2" $91.35 2" $137.57 3" $260.89 4" $399.65 6" $785.17 8" $1,247.71 10" $1,787.32 25 25.03 C.4.3/4" $31.57 1" $44.59 1-1/2" $77.15 2" $116.17 3" $220.32 4" $337.53 6" $663.10 8" $1,053.74 10" $1,509.46 (1) All Water used in December and billed in January 2019. Irrigation and Commercial Agricultural Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 C.5. - Irrigation 3/4" $32.20 1" $45.48 1-1/2" $78.70 2" $118.51 3" $224.75 4" $344.31 6" $686.76 8" $1,074.91 10" $1,539.79 25 25.03 C.6. - Commercial 3/4" $38.14 1" $53.86 1-1/2" $93.21 2" $140.38 3" $266.21 4" $407.80 6" $801.16 8" $1,273.13 10" $1,823.75 25 25.03 D.1.(b) Domestic Residential Water Rates(1)Unit Charge 1-10 $3.17 11-22 $5.65 23 or more $7.30 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-4 $2.96 5-9 $5.37 10 or more $6.60 25 25.03 D.3.(b) Business and Publicly-Owned Water Rates (1)All Units $3.75 25 25.03 D.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)All Units $5.47 25 25.03 D.5.(c)Recycled Irrigation Water Rates (1)All Units $4.41 25 25.03 D.6.(c)Recycled Commercial Water Rates (1)All Units $3.12 (1) All Water used in December and billed in January 2019. Recyled Monthly Fixed System Charges (1) Recyled Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.7.(b) Potable Temporary and Construction Water Service Rates (1)All Units $10.94 25 25.03 D.8.(b) Recycled Temporary and Construction Water Service Rates (1)All Units $8.82 25 25.03 D.10.(b) Tank Trucks Water Rates (1)All Units $10.94 25 25.03 D.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.11.(d) Water Rate for Service Outside District Boundaries (1)All Units $10.94 25 25.03 D.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.12.(c) Water Rate for Service Outside Improvement District (1)All Units $10.94 25 25.03 D.13.(c) Fire Service Monthly Charge 3" or less $21.57 more than 4"$29.06 25 25.03 D.14.(b)Government Fee Per Unit $0.42 25 25.03 D.15.(b)Interim Service Water Rate(1)All Units $10.94 25 25.03 E.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.056 25 25.04 A. Deposits for Non-Property Owners 3/4" $100.00 1" $200.00 1-1/2" $250.00 2" $400.00 3" $1,000.00 4" $1,350.00 6"$3,300.00 8"$7,000.00 10"$10,000.00 (1) All Water used in December and billed in January 2019. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $7,660.34 1" $19,150.85 1-1/2" $38,301.70 2" $61,282.72 3" $122,565.44 4 $191,508.50 6" $383,017.00 8" $612,827.20 10" $880,939.10 - TRIAD 3/4" $5,746.79 1" $14,366.98 1 -1/2" $28,733.95 2" $45,974.32 3" $91,948.64 4 $143,669.75 6" $287,339.50 8" $459,743.20 10" $660,880.85 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $831.53 1" $2,078.83 1-1/2" $4,157.65 2" $6,652.24 3" $13,304.48 4" $20,788.25 6" $41,576.50 8" $66,522.40 10" $95,625.95 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$236.25 $112.11 $348.36 $95.18 3/4" x 9"$251.53 $112.11 $363.64 $95.18 1"$304.86 $112.11 $416.97 $95.18 1.5"$495.51 $112.11 $607.62 $215.76 2"$710.01 $112.11 $822.12 $215.76 3"$2,212.68 $674.99 $2,887.67 $3,848.86 4"$3,843.08 $674.99 $4,518.07 $3,848.86 6"$6,638.04 $1,066.20 $7,704.24 $3,848.86 8"$8,293.74 $1,634.92 $9,928.66 $5,521.46 10"$11,927.94 $1,634.92 $13,562.86 $5,521.46 Section #Code #Fee Description Meter Size Charges 28 28.02 - Potable/Recycled Irrigation 3/4" x 7.5"$236.25 $112.11 $348.36 $242.55 3/4" x 9"$251.53 $112.11 $363.64 $242.55 1"$304.86 $112.11 $416.97 $242.55 1.5"$495.51 $112.11 $607.62 $242.55 2"$710.01 $112.11 $822.12 $242.55 3"$1,531.40 $674.99 $2,206.39 $3,848.86 4"$2,981.40 $674.99 $3,656.39 $3,848.86 6"$5,367.49 $1,066.20 $6,433.69 $3,848.86 8"$7,150.46 $1,634.92 $8,785.38 $5,521.46 10"$10,147.04 $1,634.92 $11,781.96 $5,521.46 - Combined Fire and Domestic 4"$9,143.03 $674.99 $9,818.02 $3,848.86 6"$12,168.57 $1,066.20 $13,234.77 $3,848.86 8"$17,692.22 $1,634.92 $19,327.14 $5,521.46 10"$24,144.03 $1,634.92 $25,778.95 $5,521.46 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4. Temporary Meter Install & Removal 3/4" - 4" (on hydrant) $150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10"Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$60.00 1-1/2" & 2 "$120.00 3" & Larger $300.00 34 34.01 D.2. Returned Check Charges $25.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.02 B.Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1. Lien Processing Fee 50.00 34 34.02 G.2. Delinquent Tax Roll Fee 40.00 34 34.02 H.1.(d) Delinquency Tag $15.00 34 34.02 H.3. Meter "Turn-On" Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $3,379.23 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $5,781.67 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $15.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by winter average units $2.67 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $14.91 53 53.10 A.4. Residential Sewer Without Consumption History 5/8", 3/4" & larger $43.51 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by winter average units $2.67 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$14.91 1"$37.27 1.5"$74.55 2"$119.27 3"$223.64 4"$372.73 6"$745.45 8" $1,192.73 10"$1,714.54 Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates with Consumption History (2) Per dwelling unit $19.08 Section #Code #Fee Description Meter Size Charges 53 53.11 Commercial and Institutional Sewer Rates Rate multiplied by Low Strength $2.67 annual avg.Medium Strength $3.31 units High Strength $4.56 53 53.11 Commercial and Institutional Monthly Fixed Sewer System Charges (2).75"$14.91 1"$37.27 1.5"$74.55 2"$119.27 3"$223.64 4"$372.73 6"$745.45 8" $1,192.73 10"$1,714.54 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5B Copies of Identifiable Public Records $0.20/page Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 18 Per acre I.D. 18 8 1/2" x 11" Per $1000 of assessed value for I.D. 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 22 The cost for all other copy sizes is the direct cost of duplication. Will not exceed per each day the violation is identified or continues. Page 1 of 2 RESOLUTION NO.4362 WHEREAS, it is the policy of the District to establish procedures to review policies, procedures, ordinances, and resolutions periodically to ensure they are current and relevant; and WHEREAS, District staff has identified Board policy 5B, Records Policy and Procedures -- Accessibility, as requiring revisions as per the attached strike-through copy (Exhibit 1a); and WHEREAS, the Otay Water District Board of Directors has been presented with the proposed amendments to Policy 5B, Records Policy and Procedures - Accessibility, and Appendix A of the District’s Code of Ordinances; and WHEREAS, the amendments have been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended Policy No. 5B, Records Policy and Procedures - Accessibility, and Appendix A; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the amended Policy 5B and Appendix A, incorporated herein as Exhibit 2a and Attachment C, respectively, is hereby adopted. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 1st day of May 2019, by the following vote: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY NO. 5, RECORDS POLICY AND PROCEDURES ACCESSIBILITY, AND APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES Attachment F Page 2 of 2 Ayes: Noes: Abstain: Absent: _______________________ President ATTEST: ____________________________ District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 1 of 5 Purpose To set forth the procedures that will facilitate the process for responding to requests under the California Public Records Act (‘‘CPRA’’). Policy The CPRA permits local agencies to adopt regulations stating the procedures to be followed when making their records available to the public. The Otay Water District’s Board of Directors desires to set forth the procedures by which such records will be made available to the public. The Board is mindful of the constitutional right of privacy accorded to individuals and it is the intent of the Board to promulgate a policy that strikes an appropriate balance between the objectives of open government and the individual’s right of privacy. Procedures Records Available for Inspection and Copying Except for records exempt from disclosure by express provisions of law, records available for inspection and copying include any writing containing information relating to the conduct of the public’s business that is prepared, owned, used, or retained by the District, regardless of the physical form and characteristics. The records do not have to be written but may be in another format that contains information such as computer tape or disc or video or audio recording. ‘‘Writing’’ includes any handwriting, typewriting, printing, photographing, and every other means of recording upon any form of communication or representation such as letters, words, pictures, sounds, or symbols, as well as all papers, maps, magnetic or paper tapes, photographic films and prints, and electronic mail. Making a Request for Records There is no specific form that must be used to request records. Requests may be made orally or in writing and may be delivered in person, through the mail, via e-mail or via facsimile. The request must contain a reasonable description of the desired records. When an oral request is received, the District may request that the public records request be confirmed in writing. The District may also follow-up verbally or in writing to clarify or eliminate any confusion concerning a request. Requests must be submitted to the District Secretary. Exhibit 1a OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 2 of 5 Locating and Identifying Records Public records are open to inspection at all times during regular District business hours. The District Secretary shall be responsible for responding to records requests and coordinating with the various departments within the District to compile documents and information responsive to such requests. If a request for records seeks the production of records or documents that are not in existence at the time the request is made, the District is not obligated to create a document in order to respond to the request. Form of Records Provided Records will be made available in their original form or by a true and correct copy. Audio, photographic and computer data, or any other such records, shall be exact replicas unless the District determines it is impracticable to provide exact replicas. Any reasonably segregable portion of a record shall be provided to the public after deletion of portions that are deemed exempt from disclosure. Common Exemptions Certain categories of documents are generally not subject to disclosure. These include, but are not limited to: (1) preliminary drafts of certain documents that are not retained by the District in the ordinary course of business; (2) records related to pending litigation; (3)attorney-client communications; (4) personnel records, medical information, or other similar records the disclosure of which would constitute an unwarranted invasion of personal privacy; (5) corporate financial and proprietary information, including trade secrets; and (6) records protected by State or Federal law. Time for Response Upon receipt of a request for records, the District shall make the records promptly available to the requestor. When a copy of a record is requested, the District shall determine within ten (10) calendar days whether to comply with the request, and shall promptly inform the requestor of the District’s decision and reasons therefor. In unusual circumstances, as defined in the CPRA, the initial ten (10) calendar day period to make a determination may be extended for up to an additional fourteen (14) calendar days. If so, the District will inform the requestor of the extension, in writing, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 3 of 5 within the initial ten (10) day period, setting forth the reasons for the extension, along with the estimated date of the District’s further response. If a written request for information is denied in whole or in part, the denial shall be in writing and shall contain the reasons for denial of access to the subject records. Fees and Charges The District charges for the direct costs of duplicating records (in paper, CDs, audio cassettes, tape or other appropriate medium) and for the direct cost of postage and other delivery methods as set forth on Appendix A to the District’s Code of Ordinance. Requestors of electronic records shall pay for production costs, including the cost to construct the record and the cost of programming and computer services necessary to produce the copy if response to the request requires the immediate production of a record that is otherwise only produced at regularly scheduled intervals, or if data compilation, extraction, or programming is required to produce the requested record. However, the District will not charge for access to electronic data that is accessible in its existing form (including PDF copies of agenda items that are provided in the form previously made available on the District’s website) and that does not require staff to locate, identify or extract data or to incur other costs to the District. Responding to Requests for Particular Documents The following procedures shall apply when responding to requests for these particular categories of documents: Disclosure of Litigation Materials 1. When litigation in which the District is a party is finally adjudicated or otherwise settled, records of communications between the District and the adverse party in the litigation shall be subject to disclosure including the text and terms of any settlement agreement between the parties. 2. Such disclosure shall not apply to records that are otherwise privileged under federal or state law, such as attorney-client communications, or to records sealed by the court or where disclosure is otherwise limited by the court. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 4 of 5 Disclosure of Information Relating to Contracts, Bids and Proposals 1. Records of contractors’ bids shall be available for inspection immediately following the opening of bids. 2. Responses to Requests for Proposals, Qualifications or Quotations and similar submittals shall be regarded as public records and are available for inspection after District staff’s recommendation has been made public, unless there are elements in the proposal which are defined by the proposer as business or trade secrets and plainly marked as ‘‘Confidential,’’ Trade Secret,’’ or ‘‘Proprietary.’’ Although trade secret information may be exempt from disclosure, the District typically is not in a position to establish whether the information that a proposer has submitted is a trade secret. If a request is made for information marked ‘‘Confidential,’’ ‘‘Trade Secret,’’ or ‘‘Proprietary’’, the District will provide the proposer who submitted the information with reasonable notice to allow the proposer to seek protection from disclosure by a court or government agency of competent jurisdiction. 3. When an individual, firm or organization is awarded a contract, information including financial information which was submitted to the District during the bid or proposal process from all proposers will be subject to disclosure unless otherwise exempt. Budgetary Information Budgetary information including bills or records of payments, which are submitted to the District’s Board or other body having budgetary authority, shall be subject to disclosure unless the record is confidential or privileged under State or Federal law. Personal Information Requests for records and documents containing personal information such as social security numbers, home addresses, home telephone numbers, financial matters, and medical or employment history, should be reviewed on a case by case with the District’s General Counsel. The District may respond to requests for personal information in one or more of the following ways: 1. delete or redact those portions of the records that include personal information and make the remaining portion of the record available for inspection if the remaining portion of the record is not otherwise exempt from disclosure; OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 5 of 5 2. notify the party whose personal information is being sought and provide the party with the opportunity to initiate legal proceedings or other appropriate process to prevent the release of such information; 3. seek a judicial determination as to whether or not the requested personal information should be disclosed; or 4. disclose the information where permitted, allowed or compelled to do so. Complaints and Complaint Information Information regarding complaints shall be made available. However, specific information about complainants shall be redacted from any record furnished if necessary in order to protect the privacy rights and safety of individuals making complaints and to protect an individual’s right to petition government for redress of grievances. Electronic Mail E-mail shall be treated the same as other written documents. If the e-mail is kept in the ordinary course of business, it is a public record unless it falls within some exception to disclosure under the CPRA. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 1 of 5 Purpose To set forth the procedures that will facilitate the process for responding to requests under the California Public Records Act (‘‘CPRA’’). Policy The CPRA permits local agencies to adopt regulations stating the procedures to be followed when making their records available to the public. The Otay Water District’s Board of Directors desires to set forth the procedures by which such records will be made available to the public. The Board is mindful of the constitutional right of privacy accorded to individuals and it is the intent of the Board to promulgate a policy that strikes an appropriate balance between the objectives of open government and the individual’s right of privacy. Procedures Records Available for Inspection and Copying Except for records exempt from disclosure by express provisions of law, records available for inspection and copying include any writing containing information relating to the conduct of the public’s business that is prepared, owned, used, or retained by the District, regardless of the physical form and characteristics. The records do not have to be written but may be in another format that contains information such as computer tape or disc or video or audio recording. ‘‘Writing’’ includes any handwriting, typewriting, printing, photographing, and every other means of recording upon any form of communication or representation such as letters, words, pictures, sounds, or symbols, as well as all papers, maps, magnetic or paper tapes, photographic films and prints, and electronic mail. Making a Request for Records There is no specific form that must be used to request records. Requests may be made orally or in writing and may be delivered in person, through the mail, via e-mail or via facsimile. The request must contain a reasonable description of the desired records. When an oral request is received, the District may request that the public records request be confirmed in writing. The District may also follow-up verbally or in writing to clarify or eliminate any confusion concerning a request. Requests must be submitted to the District Secretary. Attachment G OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 2 of 5 Locating and Identifying Records Public records are open to inspection at all times during regular District business hours. The District Secretary shall be responsible for responding to records requests and coordinating with the various departments within the District to compile documents and information responsive to such requests. If a request for records seeks the production of records or documents that are not in existence at the time the request is made, the District is not obligated to create a document in order to respond to the request. Form of Records Provided Records will be made available in their original form or by a true and correct copy. Audio, photographic and computer data, or any other such records, shall be exact replicas unless the District determines it is impracticable to provide exact replicas. Any reasonably segregable portion of a record shall be provided to the public after deletion of portions that are deemed exempt from disclosure. Common Exemptions Certain categories of documents are generally not subject to disclosure. These include, but are not limited to: (1) preliminary drafts of certain documents that are not retained by the District in the ordinary course of business; (2) records related to pending litigation; (3)attorney-client communications; (4) personnel records, medical information, or other similar records the disclosure of which would constitute an unwarranted invasion of personal privacy; (5) corporate financial and proprietary information, including trade secrets; and (6) records protected by State or Federal law. Time for Response Upon receipt of a request for records, the District shall make the records promptly available to the requestor. When a copy of a record is requested, the District shall determine within ten (10) calendar days whether to comply with the request, and shall promptly inform the requestor of the District’s decision and reasons therefor. In unusual circumstances, as defined in the CPRA, the initial ten (10) calendar day period to make a determination may be extended for up to an additional fourteen (14) calendar days. If so, the District will inform the requestor of the extension, in writing, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 3 of 5 within the initial ten (10) day period, setting forth the reasons for the extension, along with the estimated date of the District’s further response. If a written request for information is denied in whole or in part, the denial shall be in writing and shall contain the reasons for denial of access to the subject records. Fees and Charges The District charges for the direct costs of duplicating records) and for the direct cost of postage and other delivery methods as set forth on Appendix A to the District’s Code of Ordinance. Requestors of electronic records shall pay for production costs, including the cost to construct the record and the cost of programming and computer services necessary to produce the copy if response to the request requires the immediate production of a record that is otherwise only produced at regularly scheduled intervals, or if data compilation, extraction, or programming is required to produce the requested record. However, the District will not charge for access to electronic data that is accessible in its existing form (including PDF copies of agenda items that are provided in the form previously made available on the District’s website) and that does not require staff to locate, identify or extract data or to incur other costs to the District. Responding to Requests for Particular Documents The following procedures shall apply when responding to requests for these particular categories of documents: Disclosure of Litigation Materials 1. When litigation in which the District is a party is finally adjudicated or otherwise settled, records of communications between the District and the adverse party in the litigation shall be subject to disclosure including the text and terms of any settlement agreement between the parties. 2. Such disclosure shall not apply to records that are otherwise privileged under federal or state law, such as attorney-client communications, or to records sealed by the court or where disclosure is otherwise limited by the court. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 4 of 5 Disclosure of Information Relating to Contracts, Bids and Proposals 1. Records of contractors’ bids shall be available for inspection immediately following the opening of bids. 2. Responses to Requests for Proposals, Qualifications or Quotations and similar submittals shall be regarded as public records and are available for inspection after District staff’s recommendation has been made public, unless there are elements in the proposal which are defined by the proposer as business or trade secrets and plainly marked as ‘‘Confidential,’’ Trade Secret,’’ or ‘‘Proprietary.’’ Although trade secret information may be exempt from disclosure, the District typically is not in a position to establish whether the information that a proposer has submitted is a trade secret. If a request is made for information marked ‘‘Confidential,’’ ‘‘Trade Secret,’’ or ‘‘Proprietary’’, the District will provide the proposer who submitted the information with reasonable notice to allow the proposer to seek protection from disclosure by a court or government agency of competent jurisdiction. 3. When an individual, firm or organization is awarded a contract, information including financial information which was submitted to the District during the bid or proposal process from all proposers will be subject to disclosure unless otherwise exempt. Budgetary Information Budgetary information including bills or records of payments, which are submitted to the District’s Board or other body having budgetary authority, shall be subject to disclosure unless the record is confidential or privileged under State or Federal law. Personal Information Requests for records and documents containing personal information such as social security numbers, home addresses, home telephone numbers, financial matters, and medical or employment history, should be reviewed on a case by case with the District’s General Counsel. The District may respond to requests for personal information in one or more of the following ways: 1. delete or redact those portions of the records that include personal information and make the remaining portion of the record available for inspection if the remaining portion of the record is not otherwise exempt from disclosure; OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 5 of 5 2. notify the party whose personal information is being sought and provide the party with the opportunity to initiate legal proceedings or other appropriate process to prevent the release of such information; 3. seek a judicial determination as to whether or not the requested personal information should be disclosed; or 4. disclose the information where permitted, allowed or compelled to do so. Complaints and Complaint Information Information regarding complaints shall be made available. However, specific information about complainants shall be redacted from any record furnished if necessary in order to protect the privacy rights and safety of individuals making complaints and to protect an individual’s right to petition government for redress of grievances. Electronic Mail E-mail shall be treated the same as other written documents. If the e-mail is kept in the ordinary course of business, it is a public record unless it falls within some exception to disclosure under the CPRA. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: May 1, 2019 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Mark Watton, General Manager SUBJECT: Adopt Resolution 4363, Amending Policy No. 46, Media Relations Policy of the Otay Water District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors adopt Resolution 4363, amending Policy 46, Media Relations Policy of the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To update Policy 46 of the District’s Code of Ordinances and provide an update and additional clarity on the Media Relations Policy. ANALYSIS: The Board adopted Resolution No. 4028 to implement the Media Relations Policy (Policy 46) in September 2004. The purpose of the policy was to establish procedures to better inform the public, the District’s customers, businesses and other stakeholders about water, sewer, recycled water service, and other-District related matters by engaging in a defined and proactive media relations program. Communicating with the media is a standard and established responsibility of every public organization. District staff recognizes the importance of creating and sustaining media relationships through expedient and effective communications with media representatives. Therefore, Policy 46 was developed so that news media inquiries regarding the District and the District’s position on matters should be given high priority, and should be responded to as quickly and efficiently as possible. Communications staff makes every effort to obtain accurate information from District staff and/or others involved in District-related matters to ensure that information released to the media is accurate and is in compliance with laws and regulations concerning individual privacy and confidentiality. Policy 46 with redlined changes is included in Exhibit 1 as part of Attachment B. Highlights of the updated policy, including the redlined changes, are as follows: The General Manager’s office is responsible for the District's media relations program. The policy notes that all District employees should notify the General Manager, their department’s Chief or the General Manager’s Communications Officer, about media inquiries. Media representatives shall contact the General Manager and/or the Communications Officer, who is authorized to speak on behalf of the District. Regarding the District’s spokesperson, unless otherwise authorized, the District’s only designated spokesperson to speak on behalf of the District are the following: • President of the Board of Directors or Board members assigned • General Manager • Designees authorized by General Manager as noted by General Manager’s memo to Management (Attachment E). Any media inquiry received by other District staff regarding the District or the District’s position on a matter should be referred immediately to the General Manager through Department Chief. The General Manager’s staff will make all reasonable efforts to coordinate a response with the General Manager and appropriate District staff, including designating a spokesperson. Included also is a section on the subject of litigation, personnel, and District-election issues. Any inquiries regarding pending litigation or exposure to litigation and District election issues should be referred to the General Manager’s office. In addition, District staff makes proactive efforts to reach out to the media, initiated through staff in the General Manager’s office. This includes issuing press releases and media advisories, and making personal contacts with reporters and editors for stories and other coverage. The policy also notes that District departments seeking publicity for events or activities should contact the Communications Officer in the General Manager’s office to ensure the best media coverage of their activities. Department staff members shall not initiate news media contacts on behalf of the District before notifying the General Manager or Department Chief. Also, covered in the policy is an Emergency and Service Outage Issues section. Because the Operations Department may be called upon to restore service due to outages, breakages or in other critical situations, their work is fundamental to the overall mission of the District. Consequently, Operations personnel may be the only staff at the scene of an incident and may be called upon to address service restoration questions by the media. In these situations, all such inquires will be immediately referred to the Chief of Operations who will make every effort to ensure that all information released is accurate, relevant, and appropriate. Operations staff should notify the Chief of Operations immediately of any such media inquiry. The Chief of Operations will then take the lead for follow-up media communications and contact the General Manager and Communications Officer. Any media calls to other District staff regarding Operations matters should be referred immediately to the Chief of Operations and General Manager’s Communications Officer. All information released directly to the media by Operations should be provided immediately to the General Manager's Communications Officer. During a crisis or major emergency, the District’s Standardized Emergency Management Plan Section 5.1-1 designates the news media responsibilities to the General Manager and Communications Officer. To conclude, nothing in policy 46 should be construed as to restrict or preclude any employee of the District or a representative of the Otay Water District Employee Association (OWDEA) from communicating with the press on matters of public concern or on matters related to association and/or union activities. Conversely, these communications should not be made while the employee is on duty, nor be disruptive to the District’s operations, and should be clearly understood as not being made on behalf of the District or representing the District’s official position on such matters. Because the media often works on tight deadlines, and the District and the media both share the desire to provide accurate, relevant and timely information to the District’s customers and stakeholders, staff will continue to work closely with the General Manager, the Board, Chiefs, and other staff to provide this timely and accurate information. FISCAL IMPACT: Joe Beachem, Chief Financial Officer N/A STRATEGIC GOAL: Execute and deliver services that meet or exceed customer expectations, and increase customer engagement in order to improve District Services. 1. Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region about the District’s strategies, policies, projects, programs, and legislative/regulatory issues. LEGAL IMPACT: None. Attachments: A) Committee Action B) Resolution 4363 Exhibit 1: Redlined Copy of Policy 46 C) Proposed Copy of Policy 46 D) Section 5.1-1 of Standardized Emergency Management Plan E) General Manager’s Memo to Management – Designated Media Spokespersons ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution 4363, Amending Policy No. 46, Media Relations Policy of the Otay Water District’s Code of Ordinances COMMITTEE ACTION: The Public Relations, Legal and Legislative Committee reviewed this item at a meeting held on April 17, 2019 and the following comments were made: •Staff is requesting that the Board adopt Resolution 4363 amending Policy 46, Media Relations Policy of the District’s Code of Ordinances. •Staff reviewed information in the staff report. •Staff indicated in response to an inquiry from the Committee with regard to how staff responds to water pipeline breaks or other incidents of interest to the public and media, that a discussion is held internally to determine the facts and how the information will be shared with the media, the facts are shared with the media, and staff will continue to update the media until the situation is resolved. Staff noted that it is important to respond to the media even if there is no information that can be shared at the time. Acknowledging the media and keeping them informed will help maintain rapport regarding the situation. •It was discussed that staff is made aware of breaks from customers, the police (when there is water flooding the streets), from the media when listening to police or fire radio systems, and the SCADA system. •In response to another inquiry from the Committee, staff indicated that Policy 46 identifies who the spokespersons are for the District and provides direction to staff on how to handle inquiries from the media. •The Committee suggested that staff add to Policy 46 a few sentences or a paragraph concerning assessing when to hire a consultant during a crisis management or emergency situation. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board as an action item. Page 1 of 2 RESOLUTION NO.4363 WHEREAS, it is the policy of the District to establish procedures to review policies, procedures, ordinances, and resolutions periodically to ensure they are current and relevant; and WHEREAS, District staff has identified Board policy 46, Media Relations Policy, as requiring revisions as per the attached strike-thru copy (Exhibit 1); and WHEREAS, the Otay Water District Board of Directors has been presented with the proposed amendments to Policy 46, Media Policy of the District’s Code of Ordinances; and WHEREAS, the amendments have been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended Policy No. 46, Media Relations Policy; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the amended Policy 46, incorporated herein as Exhibit 1, is hereby adopted. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 1st day of May 2019, by the following vote: Ayes: Noes: Abstain: Absent: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY NO. 46, MEDIA RELATIONS POLICY OF THE DISTRICT’S CODE OF ORDINANCES Attachment B Page 2 of 2 _______________________ President ATTEST: ____________________________ District Secretary Page 1 of 54 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: MEDIA RELATIONS POLICY Policy Number Date Adopted Date Revised 46 9/01/04 5/01/19 PURPOSE To establish procedures to better inform the public, Otay Water District (District) customers, businesses and other stakeholders on water, sewer, and recycled water service, and other District- related matters by engaging in a defined and proactive media relations program. BACKGROUND The District recognizes an effective and quick way to communicate District policies and activities is by working in partnership with the news media. This policy requires that news media inquiries regarding the District and the District’s position on matters should be given high priority, and should be responded to as quickly and efficiently as possible. Every effort should be made to reasonably meet media deadlines and to ensure that all information released is accurate and is in compliance with laws and regulations concerning individual privacy and confidentiality. POLICY The General Manager’s office is responsible for the District's media relations program. To assist with this vital critical function, the District may retain media relations assistance to provide public, community and governmental relations services. All District employees should notify the General Manager, their department’s Assistant General ManagerChief or the General Manager’s staff Communications Officer about media inquiries. With regard to District media requests, the media representative shall contact the General Manager and/or the Communications Officer who is authorized to speak on behalf of the District. Because the media often work on deadlines, all departments should respond as soon as reasonably possible when the General Manager requests department information or a spokesperson for the media. Specific guidelines for responding to media requests regarding the District’s position on matters are as follow: DISTRICT SPOKESPERSONS Unless otherwise authorized, the District's only designated spokespersons to speak on behalf of the District are: •President of the Board of Directors or Board members assigned Exhibit 1 Page 2 of 54 •General Manager •Designees authorized by General Manager as noted by General Manager’s Ordermemo. Page 3 of 54 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: MEDIA RELATIONS POLICY Policy Number Date Adopted Date Revised 46 9/01/04 5/01/19 MEDIA INQUIRIES Any media inquiry received by other District staff regarding the District or the District’s position on a matter should be referred immediately to the General Manager through the Assistant General Manager or Department Chief. An appropriate response to the media is: "I'm sorry; I don't have the full information regarding that matter. I will give your request to my Department Chief District management, who and someone from the District will respond to you as soon as he/shethey isare available." Any staff member should obtain the reporter's name, phone number or cell phone number, topic of the story and deadline. Staff in the General Manager’s office will make all reasonable efforts to coordinate a response with the General Manager and appropriate District staff. LITIGATION, PERSONNEL AND DISTRICT ELECTION ISSUES Generally, the business conducted by the District is public, and therefore, is public information. Inquiries regarding pending litigation, matters involving a significant exposure to litigation, certain personnel related information and District election information are exceptions. Inquiries regarding pending litigation or exposure to litigation and District election issues should be referred to the General Manager’s office. GENERAL OR ROUTINE ISSUES Calls from media should always be referred immediately to the General Manager’s office through the employee's Department Chief or supervisor. The General Manager’s office will coordinate a response, including designating a spokesperson. When the General Manager has designated a spokesperson to respond to specific questions from the media, the General Manager should be informed of the topic, the name of the reporter and the proposed date of airing or publication, either before or immediately following these interviews. Page 4 of 54 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: MEDIA RELATIONS POLICY Policy Number Date Adopted Date Revised 46 9/01/04 5/01/19 DISTRICT-INITIATED INFORMATION The District also makes its own efforts to get in touch with the media. For the most part, this proactive media contact is initiated through the General Manager’s office. This includes issuing press releases and media advisories, and making personal contacts with reporters and editors for stories and other coverage. Departments seeking publicity for events or activities should contact the public relationsCommunications staff Officer in the General Manager’s office as soon as possible to ensure the best media coverage of their activities. Department staff members shall not initiate news media contacts on behalf of the District before notifying the General Manager, Assistant General Manager, or dDepartment cChief. CRISIS MANAGEMENT AND EMERGENCY/SERVICE OUTAGE ISSUES Because the Operations Division Department may be called upon to restore service due to outages, breakages or in other critical situations, their work is fundamental to the overall mission of the District. As a result, Operations personnel may be the only staff at the scene of an incident and may be called upon to address service restoration questions by the media. In these situations, all such inquires will be immediately referred to the Chief of Operations who will make every effort to ensure that all information released is accurate, relevant, and appropriate. Operations staff should notify the Chief of Operations immediately of any such media inquiry. The Chief of Operations will then take the lead for follow-up media communications and contact the General Manager and Communications Officer. Any media calls to other District staff regarding Operations matters should be referred immediately to the Chief of Operations, Assistant General Manager and General Manager’s Communications Officerstaff. All information released directly to the media by Operations should be provided immediately to the General Manager's staff Communications Officer and the Assistant General Manager. Page 5 of 54 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: MEDIA RELATIONS POLICY Policy Number Date Adopted Date Revised 46 9/01/04 5/01/19 During a crisis or major emergency, the District’s Standardized Emergency Management Plan Section 5.1-1 assigns responsibilities and procedures for handling media and customer information. To manage a crisis or a major emergency that may or may not consist of a service outage, the Communications Officer will work with the General Manager and designated Department Chiefs to assess if the situation requires outside services to assist with and/or manage the crisis. Each situation is unique and will be discussed on an as-needed basis. CONCLUSION Nothing in this policy should be construed as to restrict or preclude an employee of the District or a representative of the Otay Water District Employee Association (OWDEA) or other bargaining unit from communicating with the press on matters of public concern or on matters related to association and/or union activities. However, such communications should not be made during duty-time, nor be disruptive to the District’s operations, and should be clearly understood as not being made on behalf of the District or representing the District’s official position on such matters. Page 1 of 5 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: MEDIA RELATIONS POLICY Policy Number Date Adopted Date Revised 46 9/01/04 5/01/19 PURPOSE To establish procedures to better inform the public, Otay Water District (District) customers, businesses and other stakeholders on water, sewer, and recycled water service, and other District- related matters by engaging in a defined and proactive media relations program. BACKGROUND The District recognizes an effective and quick way to communicate District policies and activities is by working in partnership with the news media. This policy requires that news media inquiries regarding the District and the District’s position on matters should be given high priority, and should be responded to as quickly and efficiently as possible. Every effort should be made to reasonably meet media deadlines and to ensure that all information released is accurate and is in compliance with laws and regulations concerning individual privacy and confidentiality. POLICY The General Manager’s office is responsible for the District's media relations program. To assist with this critical function, the District may retain media relations assistance to provide public, community and governmental relations services. All District employees should notify the General Manager, their department’s Chief or the General Manager’s Communications Officer about media inquiries. With regard to District media requests, the media representative shall contact the General Manager and/or the Communications Officer who is authorized to speak on behalf of the District. Because the media often work on deadlines, all departments should respond as soon as reasonably possible when the General Manager requests department information or a spokesperson for the media. Specific guidelines for responding to media requests regarding the District’s position on matters are as follow: DISTRICT SPOKESPERSONS Unless otherwise authorized, the District's only designated spokespersons to speak on behalf of the District are: •President of the Board of Directors or Board members assigned Attachment C Page 2 of 5 •General Manager •Designees authorized by General Manager as noted by General Manager’s memo. Page 3 of 5 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: MEDIA RELATIONS POLICY Policy Number Date Adopted Date Revised 46 9/01/04 5/01/19 MEDIA INQUIRIES Any media inquiry received by other District staff regarding the District or the District’s position on a matter should be referred immediately to the General Manager through the Department Chief. An appropriate response to the media is: "I'm sorry; I don't have the full information regarding that matter. I will give your request to District management, and someone from the District will respond to you as soon as they are available." Any staff member should obtain the reporter's name, phone number or cell phone number, topic of the story and deadline. Staff in the General Manager’s office will make all reasonable efforts to coordinate a response with the General Manager and appropriate District staff. LITIGATION, PERSONNEL AND DISTRICT ELECTION ISSUES Generally, the business conducted by the District is public, and therefore, is public information. Inquiries regarding pending litigation, matters involving a significant exposure to litigation, certain personnel related information and District election information are exceptions. Inquiries regarding pending litigation or exposure to litigation and District election issues should be referred to the General Manager’s office. GENERAL OR ROUTINE ISSUES Calls from media should always be referred immediately to the General Manager’s office through the employee's Department Chief or supervisor. The General Manager’s office will coordinate a response, including designating a spokesperson. When the General Manager has designated a spokesperson to respond to specific questions from the media, the General Manager should be informed of the topic, the name of the reporter and the proposed date of airing or publication, either before or immediately following these interviews. Page 4 of 5 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: MEDIA RELATIONS POLICY Policy Number Date Adopted Date Revised 46 9/01/04 5/01/19 DISTRICT-INITIATED INFORMATION The District also makes its own efforts to get in touch with the media. For the most part, this proactive media contact is initiated through the General Manager’s office. This includes issuing press releases and media advisories, and making personal contacts with reporters and editors for stories and other coverage. Departments seeking publicity for events or activities should contact the Communications Officer in the General Manager’s office as soon as possible to ensure the best media coverage of their activities. Department staff members shall not initiate news media contacts on behalf of the District before notifying the General Manager or Department Chief. CRISIS MANAGEMENT AND EMERGENCY/SERVICE OUTAGE ISSUES Because the Operations Department may be called upon to restore service due to outages, breakages or in other critical situations, their work is fundamental to the overall mission of the District. As a result, Operations personnel may be the only staff at the scene of an incident and may be called upon to address service restoration questions by the media. In these situations, all such inquires will be immediately referred to the Chief of Operations who will make every effort to ensure that all information released is accurate, relevant, and appropriate. Operations staff should notify the Chief of Operations immediately of any such media inquiry. The Chief of Operations will then take the lead for follow-up media communications and contact the General Manager and Communications Officer. Any media calls to other District staff regarding Operations matters should be referred immediately to the Chief of Operations, and General Manager’s Communications Officer. All information released directly to the media by Operations should be provided immediately to the General Manager's Communications Officer. Page 5 of 5 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: MEDIA RELATIONS POLICY Policy Number Date Adopted Date Revised 46 9/01/04 5/01/19 During a crisis or major emergency, the District’s Standardized Emergency Management Plan Section 5.1-1 assigns responsibilities and procedures for handling media and customer information. To manage a crisis or a major emergency that may or may not consist of a service outage, the Communications Officer will work with the General Manager and designated Department Chiefs to assess if the situation requires outside services to assist with and/or manage the crisis. Each situation is unique and will be discussed on an as-needed basis. CONCLUSION Nothing in this policy should be construed as to restrict or preclude an employee of the District or a representative of the Otay Water District Employee Association (OWDEA) or other bargaining unit from communicating with the press on matters of public concern or on matters related to association and/or union activities. However, such communications should not be made during duty-time, nor be disruptive to the District’s operations, and should be clearly understood as not being made on behalf of the District or representing the District’s official position on such matters. Otay Water District – Emergency Response Plan 23 Section 5 Function Leader Assignments 5.1 ASSIGNMENTS 5.1-1 Public Information PRIMARY ALTERNATE Employee/Family/News Media Communications General Manager Communications Officer Customer Information Customer Service Manager Customer Service Supervisor 5.1-2 Advisory Support PRIMARY ALTERNATE Legal Counsel General Manager Stutz Artiano Shinoff & Holtz, APC Board Policy OWD Board President OWD Board Vice President Safety/Security Control Safety and Security Specialist Chief of Administrative Services 5.1-3 Operations PRIMARY ALTERNATE Distribution/Systems Chief of Operations Assistant Chief of Operations Collection System Utility Service Manager Reclamation Plant Supervisor Water Quality/Reclamation System Operations Manager Lab Analyst II Distribution Maintenance Utility Service Manager Utility Maintenance Supervisor Communications (Radio)Utility Service Manager Utility Maintenance Supervisor Fleet /Pump/Electric Fleet Shop Supervisor Pump Electric Supervisor Disinfection Water Systems Supervisor Water Systems Supervisor 5.1-4 Emergency Planning PRIMARY ALTERNATE Damage Assessment Operations and Engineering Inspection Construction Services EOC Operations General Manager General Manager Designee Inter-Agency Communications Chief of Operations Assistant Chief of Operations Engineering Department Chief of Engineering Assistant Chief of Engineering 5.1-5 Logistics/Resources PRIMARY ALTERNATE Personnel Chief of Administrative Services Human Resources Manager Equipment Fleet Maintenance Supervisor Equipment Mechanic II Telephone IT Manager Network Engineer Materials Purchasing & Facilities Manager Procurement & Contracts Analyst Other Supplies (food, etc.) Purchasing & Facilities Manager Facilities Maintenance Technician 5.1-6 Finance Administration PRIMARY ALTERNATE Cost Accounting/Finance Audit FEMA Documentation Chief of Finance Assistant Chief of Finance Attachment D OTAY WATER DISTRICT General Manager’s Memo To: MANAGEMENT Date: 5/1/2019 Subject: DESIGNATED MEDIA SPOKESPERSONS Purpose: To designate spokespersons for the Otay Water District. Background The Media Relations Policy was developed in order to establish procedures to better inform the public, District customers, businesses and other stakeholders about water, sewer, and recycled water service and other District-related matters by engaging in a defined and proactive media relations program. The policy was adopted by the Board of Directors on September 1, 2004 as Policy 46 - Media Relations Policy. The Board of Directors also authorized the General Manager to designate spokespersons as per the policy. Policy The following positions are authorized to be designated spokesperson for the District: •General Manager •Communications Officer •Department Chiefs •District Secretary •General Counsel ____________________________________ General Manager Attachment E STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: May 1, 2019 SUBMITTED BY: Mark Watton, General Manager W.O./G.F. NO: DIV. NO. APPROVED BY: Susan Cruz, District Secretary Mark Watton, General Manager SUBJECT: Board of Directors 2019 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2019 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2019 Board of Director’s meeting calendar and amend the schedule as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. Attachment: Calendar of Meetings for 2019 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 5-01-19.doc Board of Directors, Workshops and Committee Meetings 2019 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 2, 2019 February 6, 2019 March 6, 2019 April 3, 2019 May 1, 2019 June 5, 2019 July 3, 2019 August 7, 2019 September 4, 2019 October 2, 2019 November 6, 2019 December 4, 2019 January 16, 2019 February 20, 2019 March 20, 2019 April 17, 2019 May 22, 2019 June 19, 2019 July 24, 2019 August 21, 2019 September 18, 2019 October 23, 2019 November 20, 2019 December 18, 2019 SPECIAL BOARD MEETINGS: May 2, 2019 at 3:00 p.m.: Budget Workshop No. 1 BOARD WORKSHOPS: June 5, 2019 at 3:30 p.m.: Budget Workshop No. 2 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: May 1, 2019 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Mark Watton, General Manager SUBJECT: Informational Item: Campo Road Sewer Replacement Project Community Outreach Update GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: See Attachment A. PURPOSE: To update the Board on status of community outreach related to the Campo Road Sewer Project. ANALYSIS: When completed, the Campo Road Sewer Replacement Project will replace 1.41 miles of 10-inch-diameter sewer main with a new 15-inch-diameter sewer main pipeline in easements that cross the properties of Rancho San Diego Village and the Rancho San Diego Town Center, and in the SR-94 public right of way between Avocado Blvd. and Jamacha Rd. Construction began in September 2017 and is scheduled to be completed by late October 2019 after the environmental window for the project opens. To address environmental concerns, the District paused some activities from March 2018 to September 2018 and again in March 2019 to September 2019. The Public Relations firm, Acqua Community Relations Group (Acqua CRG), formerly Humanability Communications, has managed outreach as a subcontractor on the project since prior to the start of construction. Acqua CRG’s outreach has consisted of identifying stakeholders, including but not limited to planning groups and local elected officials, developing messaging for print materials and the District’s website, distributing emails, newsletters, door hangers, and notifications to stakeholders, attending construction team meetings, and participating in public meetings and updating community planning groups. Acqua CRG and District staff recommends against a media or ribbon cutting event, especially due to the numerous impacts to the project including rain delays, unforeseen utilities, and rock encountered within the planned sewer trench excavation. Instead, the consultant and staff recommend closing out the project with continued outreach to the community planning groups and other stakeholders, an email newsletter update, a news release, and a direct mail piece that discusses the wildlife benefits of the project. In a recent construction progress meeting in early April, the contractor confirmed that most of the work on the project should be substantially complete by late June 2019 except for the following three items: 1. Abandonment of the existing sewer main within the environmentally sensitive area. This will need to wait until September when the environmental window reopens. 2. Installation of 600 liner feet of Caltrans fiber optic communication conduit located along the dirt area adjacent to the eastbound shoulder of Campo Road next to the environmentally sensitive area. 3. Final paving of the eastbound shoulder area where the sewer was constructed. The sewer trench is primarily located in the shoulder of the roadway and base paving for a majority of this trench line has been completed. The final paving of the trench is dependent on the September environmental window opening and Caltrans. Should Caltrans decide to override the environmental requirement and direct the District to complete the final paving sooner than September, the District will comply with that requirement. Caltrans made a similar request a year ago in the westbound direction and the final paving work for the westbound direction was performed in June 2018. Currently, staff anticipates that temporary pavement will be in place until September 2019. Acqua CRG has the following outreach tactics planned from now through the completion of the project: • Construction Team Meetings • Community Planning Groups • Project Update Email Newsletter • Updates in Community Periodicals, i.e. Jamul Shopper and Deerhorn Valley News (community news section) • News Release • Distribution/Pitching of News Release The following dates are confirmed for providing updates to the community planning groups: • Jamula/Dulzura Planning Group, April 23 at 7:30 p.m., Oak Grove Middle School • Valle de Oro Planning Group, May 7 at 7 p.m., Otay Water District Training Room • Spring Valley Planning Group, May 14 at 7 p.m., Otay Water District Training Room FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds are included in the Capital Improvement Program for the Campo Road Sewer Replacement Project. STRATEGIC GOAL: Execute and deliver services that meet or exceed customer expectations, and increase customer engagement in order to improve District Services. 1. Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region about the District’s strategies, policies, projects, programs, and legislative/regulatory issues. LEGAL IMPACT: None. Attachments: A) Committee Action ATTACHMENT A SUBJECT/PROJECT: Informational Item: Campo Road Sewer Replacement Project Community Outreach Update COMMITTEE ACTION: The Public Relations, Legal and Legislative Committee reviewed this item at a meeting held on April 17, 2019 and the following comments were made: • Staff presented an update on the community outreach plan related to the Campo Road Sewer Replacement Project. • Staff reviewed information in the staff report. • Staff introduced Ms. Paula Roberts, Acqua Community Relations Group (Acqua CRG), who is the community outreach subcontractor for the District’s consultant Rick Engineering, the design services engineering firm for the project. Ms. Roberts has provided the community outreach services for the project since prior to the start of construction. Staff reviewed the status of the project and the status of Acqua CRG’s outreach plans. • Staff indicated that they recommend against a media or ribbon- cutting event at the completion of the project. Staff explained that they weighed the cost of a ribbon-cutting event versus the benefit it would provide to its ratepayers in terms of providing positive “goodwill” for the District. The PR consultant and staff stated that hosting an event may instead remind commuters of how the project negatively impacted their commutes. Staff and Ms. Roberts instead suggested providing continued outreach to the community planning groups and other stakeholders, an email newsletter update, a news release, and a direct mail piece that discusses the wildlife benefits of the project. • In response to an inquiry from the Committee, it was indicated that the construction associated with the Campo Road Sewer Replacement Project impacts both the east and westbound commuters in and out of Rancho San Diego via State Route 94 during rush hour traffic and the Skyline Church community during the weekends when services are held. Construction on the project began in September 2017 and the project is still within the allotted construction schedule and is anticipated to be completed in October 2019. • The Committee inquired about utilizing the “Nextdoor” app for sharing project updates with the community. Staff indicated that they did not recommend utilizing “Nextdoor” to post information about District projects as the app could be used by the community to air their frustrations about anything happening in their community. Staff indicated that the District mainly posts positive items to “Nextdoor,” such as contests, free items, rebates, services, etc. Staff monitors “Nextdoor” to manage positive and negative comments concerning the District. • It was further discussed that though the District had posted signs in the construction area providing information about the project, had distributed fact sheets, posted information on the District’s website, and met with planning groups and other stakeholders, much of the public/community is likely not aware that it is an Otay Water District project. The community’s main concern is their access through the area. The public will be happy when the construction barriers have been removed and their commutes are no longer being impacted. • It was indicated that staff had anticipated that the project was going to be very difficult from the beginning due to the environmentally sensitivity area, the terrain, and the jack- and-bore trenching (at two locations) beneath Highway 94 that was required by the project for the installation of the pipeline. • Staff noted the goal of the project is to increase the size of the sewer pipeline serving the area and to move the sewer line out of the environmentally sensitive area along Campo Road. • Staff indicated, in response to another inquiry from the Committee, that the change order rate on the project is approximately 3.5% and the target is 5%. It was discussed that the largest impact to the project is the rain delays, which has lengthened the duration of the project. The project, as noted above, is still on schedule to be completed in October 2019. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board as an informational item. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 SUBMITTED BY: Mark Watton General Manager W.O./G.F. NO: N/A DIV. NO. N/A APPROVED BY: Mark Watton, General Manager SUBJECT: General Manager’s Report ADMINISTRATIVE SERVICES: GIS: • Easement and Encroaching Web Application – Staff is working with the Engineering Department to develop a location-based web application for the mobile collection of field easement and encroachment information. Testing of the new application is expected to commence in mid-May. The application will create new efficiencies by having four distinct work groups use the same tool with data management via a centralized repository. Human Resources: • Employee Survey - Staff will be working with Rea and Parker to conduct an employee survey. Employee surveys measure employees’ opinions about compensation, workload, management insight, and more. The District last conducted a survey in 2010. Information gathered from the survey will be used to drive strategic initiatives to improve employee engagement, enhance teamwork, and further the District’s mission commitment. • New Hires/Promotions/Recruitments: o The Pump Mechanic position was filled. o The District is currently recruiting for: Senior Utility Worker/Equipment Operator. o These positions are critical to District operations. 2 IT Operations: • Department of Homeland Security (DHS) Network Risk and Vulnerability Assessment - Staff recently completed a DHS-sponsored cyber security network risk and audit assessment to determine the current state of the District’s technology security measures, data protection methods, and SCADA environment safeguards. The assessment also included penetration testing via social engineering, and wireless vulnerability scanning. DHS concluded that the District currently maintains effective technology security practices, controls, and safeguards. Key security enhancement recommendations included the hardening of user account passwords and privileged access management. DHS also ran several social engineering and phishing campaigns and complimented the District for its cyber awareness and vigilance. • Monthly Board Audio Streaming - During the District’s April Board meeting, 12 customers engaged in the listening of the live monthly meeting. The live audio broadcast was aired for 3 hours and 10 minutes. Purchasing & Facilities: • Doing Business with Otay Water District Workshop – On April 2, 2019, the San Diego Contracting Opportunities Center (SDCOC) held its semi-annual vendor outreach workshop “Doing Business with Otay Water District” where 26 companies had a representative in attendance. Out of the 18 workshop evaluations received, 5 rated the program ‘excellent’ and 13 rated it ‘good’ or ‘very good’. Included in the workshop is an introduction to Otay Water District, a review of policies and procedures for responding to solicitation, and how to register as a vendor online through BidSync. SDCOC is affiliated with Southwestern College Higher Education Center for Business Advancement and will schedule the next session in the Fall of 2019. • Securitas Mobile Guarding Replaces US Securities Patrol Service - US Securities provided alarm response patrol services for the District for several years and has been replaced with Securitas USA’s Mobile Guarding as of April 1. In recent months, US Securities’ service level began to drop with the company ultimately being purchased by Allied Universal but with no improvement in service. After soliciting patrol services and polling other water agencies, Securitas became the best and only choice to meet the District’s needs. Securitas USA is a Division of Swedish based Securitas AB with over 350,000 employees worldwide and entered the US market by acquiring Pinkerton in 1999. Securitas offers many protective services with Mobile Guarding being one, which includes patrol inspections, employee escorts, alarm response with real-time reporting through MobileVision, and a versatile dispatch. It also includes a communication and management system with an online 3 client portal to view and update account and site information, review incident reports and other analytical data. The cost per dispatch is $65.00. • BidSync Solicitations - Currently there are no solicitations advertised on BidSync. Safety & Security: • America’s Water Infrastructure Act of 2018 (AWIA 2018) UPDATE – The District requested and received from EPA the copy of the District’s originally submitted Vulnerabilities Assessment dated March 2003. EPA released information that they would be destroying these documents and gave the option of having the same returned to the originating Districts. Staff is in process of reviewing this document to determine areas of applicability in the preparation and completion of the still developing AWIA requirements. • District Drone Use Policy - The goal of this policy is to establish District drone use, guidelines and procedures, for the safe and compliant use of drone technology for internal staff, as well as external vendors, contractors and consultants. • SDRMA Triennial Inspection UPDATE – Staff continues to wait for the final report. The list of 12 minor observations is in the process of completion with 4 items completed. The remaining items are anticipated to be completed by mid-May 2019. • Water Emergency Agency Coordinators (WEAC) – Staff attended the WEAC quarterly meeting. The meeting’s topic: Mutual Aid Agreement, which provides for emergency assistance among the member agencies of the San Diego County Water Authority (SDCWA). SDCWA representatives (Lisa Pruss and Carol Olvera) have been working on the review and update of the current Mutual Aid Agreement that began in March 2018. The draft version was provided to the Chief of Administrative Services, and CWA representatives stated they would be asking for time at the next GM’s meeting to present the draft document. Finance: • FY 2020 Budget - Staff is finalizing the budget for presentation to the Board on June 5, 2019. At the Board meeting, staff will be presenting the consolidated FY 2020 budget and requesting the Board to approve the following items: FY 2020 Operating and CIP Budget, Interfund Transfers, and actions associated with recommended rate changes. • ID 27 Tax Rate – Staff is finalizing the 2019-2020 ID 27 tax rate calculation. The rate will be brought to the June 5th Board meeting. The voters approved the debt issuance and the tax which is used to pay the outstanding 1992 General Obligation bonds. 4 • Sewer Debt Issuance Update – Finance issued an RFP on April 5, 2019 for solicitation of a Bond/Disclosure Counsel with responses due on May 3, 2019. Staff and the District’s Municipal Advisor are continuing to work on a timeline that ends with a closing date in October 2019. Staff is estimating a bond issuance of $6M. • Audit – Teaman, Ramirez & Smith is scheduled to be onsite the week of May 20th to perform the interim audit field work. • AMR Change Outs- All AMR change outs for this fiscal year will be completed the first week of May. Since 2016, 80% of all District meters have been upgraded to new registers. The remaining 20% will be completed by January 2020. • Eden User Conference- Customer Service and IT staff attended the Eden User Conference in April. The conference allows users to learn about new features in Eden, network with other Eden users and view other ERP software supported by their parent company Tyler Technologies. Financial Reporting: • The financial reporting for March 31, 2019 is as follows: o For the nine months ending March 31, 2019, there are total revenues of $73,323,351 and total expenses of $75,589,809. The expenses exceeded revenues by $2,266,458. Total rainfall was 11.6 inches for the six month period between October 2018 and March 2019, compared to 3.2 inches for the same period of October 2017 to March 2018. As a result, residential, commercial irrigation, and recycled irrigation sales were down because customers watered their landscaping a lot less frequently. • The financial reporting for investments for March 31, 2019 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of March 31, 2019 total $73,118,363 with an average yield to maturity of 1.810%. The total earnings year-to-date are $893,578. 5 ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: • 870-2 Pump Station Replacement: This project consists of a new Pump Station to replace the existing Low Head 571-1 and High Head 870-1 Pump Stations. The project also includes the replacement of the existing liner and cover for the 571-1 Reservoir (36.7 MG). During the month of April 2019, Pacific Hydrotech, the District’s construction contractor, continued work on the station’s interior, including the installation of electrical cable trays and conduit. Work to install utility piping for the Station’s exterior yard zone pipe, electrical, gas, and sewer also progressed. Environmental compliance during construction is being monitored by Helix Environmental and to date there have been no issues. The project is within budget and scheduled to be completed in December 2019. (P2083 & P2562) • Campo Road Sewer Replacement: The existing sanitary sewer from Avocado Road to Singer Lane is undersized and located in environmentally sensitive areas that are difficult to access. The Campo Road Sewer Replacement project will install approximately 7,420 linear feet of new 15-inch gravity sewer pipe and includes abandonment of the existing sewer main. During April 2019, the contractor’s horizontal auger boring subcontractor completed work to grout the exterior of the jack and bore casing at the East Bore Jacking Pit located along westbound Campo Road at the north east corner of the Campo Road/Jamacha Boulevard intersection. Work to install the planned sewer main immediately west of the East Bore Receiving Pit also began. As part of this work, the contractor installed an 8-feet high temporary sound wall to mitigate noise generated by the sewer main construction as required by the project’s environmental document. Migratory bird surveys for the project continued in April 2019. Wier Construction, the contractor for the project, completed the installation of the planned sewer in the Rancho San Diego Village Shopping Center in the area behind the IHOP and began the planned water main relocation. The project is within budget and the installation of the new sewer and removal of temporary traffic control within the traveled way of Campo Road is scheduled to complete in June 2019. It is anticipated that the overall project, which includes abandonment of the existing sewer located in the environmentally sensitive area along Campo Road, will complete in December 2019. (S2024) • Vista Vereda and Hidden Mesa Water Pipelines Replacement: The existing 1950’s steel water line along Vista Vereda between Vista Grande Road and Hidden Mesa Trail in the Hillsdale area has experienced leaks and is nearing the end of its useful life. The existing water main is located primarily within easements, many of 6 which have had significant improvements performed over the years since the water line was constructed. This project will replace the existing water lines with new water lines in both Vista Vereda and Hidden Mesa Road. During April 2019, Cass Arietta, the District’s construction contractor, continued installation of the new water main in Hidden Mesa Road between Hidden Springs Drive and Hidden Mesa Trail. It is anticipated that the water main installation within Hidden Mesa will be completed in May 2019. Work to install a new water main in Vista Vereda is scheduled to begin in May 2019. Overall completion of the construction is scheduled for August 2019. (P2574 & P2625) • Temporary Lower Otay Pump Station Redundancy: This project will add a second pump to the District’s existing temporary Lower Otay Pump Station (TLOPS) to provide redundancy. The redundant trailer vendor’s (Hawthorne) purchase agreement may be revised to include a Selective Catalyst Reduction (SCR) emissions control system to facilitate permitting with the Air Pollution Control District (APCD) of San Diego County. A public works bid package, including grading, mechanical, structural, electrical, instrumentation & control, and installation of the trailer is scheduled to be advertised for construction and awarded in July 2019. The City of Chula Vista issued a Utility Permit on January 18, 2019. The final revision of the City of San Diego permit application was accepted on March 12, 2019. (P2619) • Pipeline Cathodic Protection Replacement Program: This project includes repairs to existing cathodic protection systems, such as anode replacement, cathodic test station repairs, retrofit/repair of isolation kits, and repair of existing impressed current systems and anode beds. The first phase was completed on the District’s 1980 era RWCWRF 14-inch force main in 2017. A portion of the second phase was bid and awarded with the District’s 870-2 Pump Station project. The remainder of the second phase was awarded to M-Rae Engineering, Inc. M-Rae completed work in the Sweetwater River east of the Cottonwood Golf Club, in Salt Creek east of Hunte Parkway, and in the area of Proctor Valley Road from November 2018 through March 2019. M-Rae’s contract also includes cathodic protection improvements on existing interconnect pipelines between the Central Area and Otay Mesa. Work on this project is being coordinated with the completion of other CIP projects during the fiscal year to minimize operational impacts. This project is within budget and scheduled to be completed in June 2019. (P2508) • 711-3 Reservoir Cover/Liner Replacement: The existing cover/liner at the 711-3 Reservoir was installed in 2002 and shows substantial deterioration that has necessitated its replacement. Layfield, the construction contractor for the project, completed installation of the new Reservoir Cover in April 2019. It is anticipated that 7 testing of the new Reservoir will be completed, and the Reservoir will be returned into service in May 2019. The project is within budget and scheduled to be completed in May 2019. (P2561) • 803-2 Reservoir Interior/Exterior Coating and Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 803-2 (2.0 MG) Reservoir, along with providing structural upgrades, to ensure the tank complies with both state and federal OSHA standards as well as the American Water Works Association and the County Health Department standards. During April 2019, Advanced Industrial Services, the construction contractor for the project, completed structural repairs of the Reservoir’s rafter that support the Reservoir’s roof. Blasting of the Reservoir’s interior also began in early April 2019. The project is within budget and is scheduled to be completed in August 2019. (P2565) • RWCWRF Fuel Lines Replacement: Existing below grade fuel oil piping, partially installed together with the original treatment plant in 1979, will be replaced to gain compliance with a 2017 County of San Diego inspection report and current codes. The existing piping will be replaced, rather than retrofitted with a cathodic protection system, because the piping has reached the end of its useful life. During April, the contractor, Jauregui & Culver, began installation of the new fuel oil piping. Submittals for the return tank, that is part of this project, were also under review in April. The project is scheduled to be completed in June 2019. (R2147) • Desalination and Recycled Water Update for the West Workshop: The AWWA CA-NV Desalination and Recycled Water Committee, along with District staff, have been instrumental in organizing the May 9, 2019 “Desalination and Recycled Water Update for the West” workshop, which will be held at the Orange County Water District, 18700 Ward Street, Fountain Valley, CA 92708 from 8:00am–5:00pm. This workshop is intended as a forum to discuss and provide updates on pertinent regulations, emerging technologies, and exciting new projects. It also includes a panel of utility representatives from San Diego County Water Authority, Orange County Water District and Sanitation District, Otay Water District, and the Water Replenishment District of Southern California. These utility representatives will discuss how conservation and declining sewer flows impact drinking water, recycled water, and wastewater infrastructure and what they are doing to adapt. See attached flyer for further details and registration. • For the month of March 2019, the District sold 47 meters (88.5 EDUs), generating $770,612 in revenue. Projection for this period was 60.8 meters (77.1 EDUs), with a budgeted revenue of $672,173. 8 Total revenue for Fiscal Year 2019 is $6,849,826 against the annual budget of $8,066,070. Water System Operations (reporting for March): • On March 2, there was an unplanned power outage that affected the 458 Reservoirs and the 450-680 Pump Station which caused a loss of communication and limit lock-out. The emergency generator ran for two hours. In order to prevent any violations with the Air Pollution Control District, a letter for system reliability has been requested from SDG&E stating the outage was beyond the District’s control. • As reported last month, on March 12, staff responded to a sanitary sewer overflow from a manhole south of the Rancho San Diego Village Shopping Center in La Mesa. Staff cleared the sewer main and discovered pieces of pipe in the sewer main that was causing the partial blockage. It was determined that the contractor working on the Campo Road Sewer Replacement Project left the pieces of pipe in the sewer main and is responsible for the overflow. • On March 20, Cal-American Water (Cal-Am) requested to have the emergency interconnect on Otay Valley Road open due to a main break on their side. Cal-Am took water for about 90 minutes for a total of 129,000 gallons. Purchases and Change Orders: • The following table summarizes purchases and Change Orders issued during the period of March 27 through April 11, 2019 that were within staff signatory authority: Date Action Amount Contractor/ Consultant Project 03/27/19 P.O. $7,780.96 GHA Technologies, Inc. Cradlepoints Software License 03/28/19 P.O. $3,120.17 FullCourt Press Newsletter Printing 03/28/19 3rd Amendment $70,000.00 Aegis Contract Amendment Supports Developer Funded Potable and Recycled Water Projects 9 Water Conservation and Sales: • Water Conservation - March 2018 usage was 28% lower than March 2013. Since March 2018, customers have saved an average of 14% over 2013 levels. 04/03/19 C.O. ($5,805.00) Tharsos, Inc. Ralph W. Chapman Water Recycled Facility Headworks Improvements (S2051/R2118) 04/04/19 C.O. $61,620.80 Pacific Hydrotech Corporation 870-2 Pump Station Replacement (P2083/P2562) 04/05/19 P.O. $7,000.00 Southwestern College San Diego Contracting Opportunities Center Partnership 04/09/19 P.O. $75,000.00 Hendrickson Appraisal Co, Inc. Appraisal Services FY 2019-2021 04/11/19 P.O. $12,060.00 ESM Software, LLC Strat Plan Software 10 • The March potable water purchases were 1,621.3 acre-feet which is 13.2% below the budget of 1,868.8 acre-feet. The cumulative purchases through March were 20,375.6 acre-feet which is 11.8% below the cumulative budget of 23,107.5 acre-feet. • The March recycled water purchases and production were 46.0 acre-feet which is 68.0% below the budget of 143.7 acre-feet. The cumulative production and purchases through March were 2,396.4 acre-feet which is 8.3% below the cumulative budget of 2,612.4 acre-feet. 11 Potable, Recycled, and Sewer (Reporting up to the month of March): • Total number of potable water meters: 50,636. • Total number of sewer connections: 4,736. • Recycled water consumption for the month of March: o Total consumption: 26.7 acre-feet or 8,696,996 gallons. o Average daily consumption: 250,548 gallons per day. o Total cumulative recycled water consumption since July 1, 2018: 2459.2 acre-feet. o Total number of recycled water meters: 729. • Wastewater flows for the month of March: o Total basin flow: 1,675,484 gallons per day. This is an increase of 3.81% from March 2018. o Spring Valley Sanitation District Flow to Metro: 556,052 gallons per day. o Total Otay flow: 1,119,290 gallons per day. o Flow Processed at the Ralph W. Chapman Water Recycling Facility: zero gallons per day. o Flow to Metro from Otay Water District: 1,119,549 gallons per day. • By the end of March there were 6,747 wastewater EDUs. Attachment: Two One-Day Workshops Flyer - Desalination and Recycled Water Update for the West Workshop NORTHERN CALIFORNIA TUESDAY, MAY 7, 2019 HOST: Monterey One Water Regional Treatment Plant 14811 Del Monte Boulevard Marina, CA 93933 Phone: 831.883.1118 www.montereyonewater.org Tour Site: Pure Water Monterey AWPF SOUTHERN CALIFORNIA THURSDAY, MAY 9, 2019 HOST: Orange County Water District 18700 Ward Street Fountain Valley, CA 92708 Phone: 714.738.8209 www.ocwd.com Tour Site: Orange County Groundwater Replenishment System WHO SHOULD ATTEND? Utility Managers Planners Engineers Operators Regulators Consultants Scientists Elected Officials Two One-Day Workshops Desalination & Recycled Water Update for the West: What’s New? What has Changed? Where is it Going? Organized by the Desalination & Recycled Water Committee of the CA-NV AWWA ROD POSADA, WORKSHOP PLANNING COMMITTEE CHAIR email: RodP@otaywater.gov SUNNY WANG, DESALINATION & RECYCLED WATER COMMITTEE CHAIR email: Sunny.Wang@smgov.net 6 CONTACT HOURS As water becomes an increasingly precious commodity in many parts of the world, the role of desalination and water reuse grows larger in addressing the global thirst for new water resources. This water awareness is particularly true in the western United States, where climate change and population growth are increasing the stress on finite water supplies. Fortunately, technology for desalination and water reuse — such as higher wa- ter recovery, less brine for disposal, and more energy-efficient processes — continues to improve. There have also been increases in water use efficiency, which benefits water supplies by reducing demand, but re- sults in declining flows within the urban water cycle. This workshop is intended as a forum to discuss and pro- vide updates on pertinent regulations, emerging technologies, and exciting new projects. It also includes a panel of utility representatives to discuss impacts to water supplies and what they’re doing to adapt. Two One-Day Workshops Organized by the CA-NV AWWA Desalination & Recycled Water Committee REGISTRATION Price Includes 6 Contact Hours. Continental breakfast, coffee breaks and lunch will be provided. Online registration is available at: www.ca-nv-awwa.org For registration questions call Jennifer Sandoval 909.291.2113 Address: 10574 Acacia Street, Suite D6, Rancho Cucamonga, CA 91730 Faxed reservations will be accepted with a copy of the purchase order or credit card. Fax: 909.291.2107 I am registering for:  TUESDAY, MAY 7, 2019  THURSDAY, MAY 9, 2019 I will be attending the tour:  YES  NO Name (s): Title (s): Organization: Payment/Mailing Address: email: Phone: Enclosed is my $135.00 Member Fee or $175.00 Non-member Fee* Credit Card: (please circle) Visa MC AMEX Name of Cardholder: AWWA Member#: Credit Card Number: Exp. Amount: $ Billing Zip: Signature: (Must be signed to process credit card order) Time TUESDAY, MAY 7, 2019 Monterey One Water 14811 Del Monte Boulevard Marina, CA 93933 Phone: 831.883.1118 www.montereyonewater.org 8:00 - 8:20 Registration & Continental Breakfast 8:20 - 8:30 Introduction & Goals Bill Faisst, Brown & Caldwell 8:30 - 9:20 Technology Update Joe Wong, Brown & Caldwell 9:20 - 10:10 Regulatory Update: IPR/DPR Sherly Rosilela/Stefan Cajina, Division of Drinking Water 10:10 - 10:40 Break 10:40 - 11:30 Construction, Commissioning & Lessons Learned of Desal & Water Reuse Projects Tony Joyce, Kiewit Infrastructure West 11:30 - 12:20 Operators Training on Advanced Technology Gordon Williams, East Bay Municipal Utility District 12:20 - 1:20 Lunch 1:20 - 2:10 Panel Discussion: Impacts on Declining Flows and How Agencies are Adapting Moderator: Bill Faisst, Brown & Caldwell Panelists: Laura Hidas, Alameda County Water District; Rosemary Menard, City of Santa Cruz; Paul Sciuto, Mon- terey One Water; Gordon Williams, East Bay Municipal Utility District 2:10 - 3:00 California Ocean Plan Amendment: Implications of this Regulation on Desal Projects Speaker: Joe Monaco, Dudek 3:00 - 3:30 Overview of a Project: Pure Water Monterey Groundwater Replenishment Project Presentation: Paul Sciuto, Monterey One Water 3:30 - 5:00 Plant Tour: Monterey One Water Project Time THURSDAY, MAY 9, 2019 Orange County Water District 18700 Ward Street Fountain Valley, CA 92708 www.ocwd.com Phone: 714.738.8209 8:00 - 8:20 Registration & Continental Breakfast 8:20 - 8:30 Introduction & Goals Jocelyn Lu, Brown & Caldwell 8:30 - 9:20 Technology Update Sunny Wang, City of Santa Monica 9:20 - 10:10 Regulatory Update: IPR/DPR Saeed Hafeznezami, Division of Drinking Water 10:10 - 10:40 Break 10:40 - 11:30 Construction, Commissioning & Lessons Learned of Desal & Water Reuse Projects Greg Wetterau/Christian Sanders, CDM Smith 11:30 - 12:20 Operators Training on Advanced Technology Jack Bebee, Fallbrook Public Utility District 12:20 - 1:20 Lunch 1:20 - 2:10 Panel Discussion: Impacts on Declining Flows and How Agencies are Adapting Moderator: Wendy Broley, Brown & Caldwell Panelists: Chris Castaing, San Diego County Water Au- thority; Mehul Patel, Orange County Water District/ Orange County Sanitation District; Bob Kennedy, Otay Water District; Lindsay Bloxom, Water Replenishment District of So. California 2:10 - 3:00 California Ocean Plan Amendment: Implications of this Regulation on Desal Projects Speaker: Mark Donovan, GHD 3:00 - 3:30 Overview of a Project: Orange County Groundwater Replenishment System Presentation Presentation: Sandy Scott-Roberts, OCWD 3:30 - 5:00 Plant Tour: OCGWRS Check Total 2,032.18 1,926.97 1,577.51 28,223.90 4,262.96 4,262.96205220004/17/19 07785 AT&T 000012740461 03/12/19 65,503.02 2052199 04/17/19 19498 ASHLEY LUNN Ref002548146 04/15/19 UB Refund Cst #0000161192 180.46 180.46 946.59 946.59 2052119 04/03/19 17264 ARTIANO SHINOFF ABED 301907 03/19/19 LEGAL SERVICES (THRU FEB 2019)65,503.02 CM201916 03/11/19 2,240.00 2052157 04/10/19 08967 ANTHEM EAP 77331 04/01/19 EMP ASSISTANCE PROG (APR-JUN 2019) CM201914 03/11/19 3,360.00 CM201918 03/11/19 2,943.90 MGMT/INSP (FEB 2019) MGMT/INSP (FEB 2019) CM201913 03/11/19 6,320.00 CM201917 03/11/19 3,520.00 MGMT/INSP (FEB 2019) MGMT/INSP (FEB 2019) 7,520.00 7,520.00 2052077 03/27/19 14462 ALYSON CONSULTING CM201915 03/11/19 MGMT/INSP (FEB 2019)9,840.00 AS-NEEDED UTILITY LOCATING (JAN 2019)585.00 585.00 2052076 03/27/19 15024 AIRX UTILITY SURVEYORS INC 1202282019 03/04/19 UTILITY LOCATING (FEB 2019) 2052156 04/10/19 15024 AIRX UTILITY SURVEYORS INC 1301312019 03/14/19 131588636 03/25/19 AQUA AMMONIA 371.50 131588555 03/25/19 AQUA AMMONIA 273.51 97,161.25 2052155 04/10/19 07732 AIRGAS SPECIALTY PRODUCTS INC 131588635 03/25/19 AQUA AMMONIA 932.50 675.00 675.00 2052154 04/10/19 13901 ADVANCED INDUSTRIAL SVCS INC 202282019 03/12/19 803-2 RES COAT & UPGRADES (THRU 2/28/19)97,161.25 SHAREPOINT SERVICES (MAR 2019)1,650.00 1,650.00 2052198 04/17/19 17989 ADS CORP 22335220319 03/23/19 ADS MAINTENANCE & REPORTING 2052153 04/10/19 08488 ABLEFORCE INC 8438 04/01/19 1039890 03/20/19 SODIUM HYPOCHLORITE 606.92 1039897 03/20/19 SODIUM HYPOCHLORITE 55.63 SODIUM HYPOCHLORITE 657.50 1039643 03/13/19 SODIUM HYPOCHLORITE 606.92 2052152 04/10/19 01910 ABCANA INDUSTRIES INC 1039642 03/13/19 1039419 03/06/19 SODIUM HYPOCHLORITE 80.92 1039190 02/28/19 SODIUM HYPOCHLORITE 43.50 809.23 1039189 02/28/19 SODIUM HYPOCHLORITE 572.53 1039418 03/06/19 SODIUM HYPOCHLORITE 526.00 GLASS REPLACEMENT 7,500.00 7,500.00 2052075 03/27/19 01910 ABCANA INDUSTRIES INC 1039188 02/28/19 SODIUM HYPOCHLORITE 2052151 04/10/19 14617 A GLASCO INC 83213 03/19/19 460.37 2052197 04/17/19 14617 A GLASCO INC 83231 04/03/19 GLASS REPLACEMENT 7,670.00 7,670.00 Amount 2052118 04/03/19 19458 1351 AIR WING LLC Ref002545744 03/29/19 UB Refund Cst #0000161900 460.37 CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description MGMT/INSP (FEB 2019) TELEPHONE SERVICES (02/12/19 - 03/11/19) Page 1 of 9 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description 10,579.54 1,618.00 33,259.84 1,377.00 16,274.62 GPS TRACKING SYSTEM 1,525.75 1,525.75 I20190236 03/05/19 W&T PARTS 4,871.78 2052086 03/27/19 18705 DELPAK SYSTEMS LTD EI198000288 03/05/19 RCS TRAILER RENTAL (MAR 2019)6,465.00 i20190248 03/07/19 ENCORE700 PARTS 4,937.84 03/21/19 COATING INSPECTION SVCS (3/20/19)19,875.00 19,875.00 2052085 03/27/19 11797 D&H WATER SYSTEMS INC I20190211 02/28/19 918.00 2003193E602320219 03/04/19 SHUT DOWN TEST (FEB 2019)459.00 2052162 04/10/19 04443 CSI SERVICES INC 8879 UPFP PERMIT RENEWAL (4/30/19-4/30/20)547.00 547.00 2052084 03/27/19 00184 COUNTY OF SAN DIEGO 2003193E602340219 03/04/19 SHUT DOWN TEST (FEB 2019) 2052161 04/10/19 00184 COUNTY OF SAN DIEGO 2818021419 02/14/19 1,750.94 2052083 03/27/19 02612 COUNCIL OF WATER UTILITIES 03192019 03/19/19 BUSINESS MEETING 45.00 45.00 6,271.05 6,271.05 2052082 03/27/19 18331 CORE & MAIN LP K203553 03/01/19 INVENTORY 1,750.94 REG REPLACEMENT PROG (3/22/19)15,823.28 15,823.28 2052160 04/10/19 18331 CORE & MAIN LP K246575 03/20/19 INVENTORY 02/22/19 REG REPLACEMENT PROG (2/18/19-2/22/19)9,344.16 9,344.16 2052203 04/17/19 17923 CONCORD UTILITY SERVICES 2562 03/22/19 17,622.44 2532 03/01/19 REG REPLACEMENT PROG (2/25/19-3/1/19)15,637.40 2052159 04/10/19 17923 CONCORD UTILITY SERVICES 2518 UB Refund Cst #0000250286 27.71 27.71 2052081 03/27/19 17923 CONCORD UTILITY SERVICES 2541 03/08/19 REG REPLACEMENT PROG (3/4/19-3/8/19) 10453 02/28/19 BACTERIOLOGICAL TESTING (2/19/19)38.00 2052122 04/03/19 19472 CLAUDE DIEGO Ref002545758 03/29/19 638.00 10452 02/28/19 BACTERIOLOGICAL TESTING (2/19/19-2/20/19)490.00 10450 02/28/19 BACTERIOLOGICAL TESTING (2/4/19-2/5/19)452.00 2052080 03/27/19 04119 CLARKSON LAB & SUPPLY INC 10451 02/28/19 9,913.00 2052202 04/17/19 04349 CHAMBERS, JONATHAN 041519 04/15/19 MEAL ADVANCE (4/28/19-5/3/19)711.00 711.00 287,475.70 287,475.70 2052121 04/03/19 18170 CED INDUSTRIAL & LIGHT 7148-557787 03/26/19 VARIABLE FREQUENCY DRIVE 9,913.00 04/04/19 PERMIT FEES 19,034.00 19,034.00 2052079 03/27/19 00848 CASS CONSTRUCTION INC 302282019 02/28/19 5,512.45 0410180014 02/11/19 LEGISLATIVE ADVOC SERV (THRU JAN 2019)5,067.09 2052158 04/10/19 08388 CALTRANS 040219 2052120 04/03/19 08156 BROWNSTEIN HYATT FARBER 0410180014A 03/15/19 5,150.45 2052201 04/17/19 19496 BEN SEGAWA Ref002548144 04/15/19 UB Refund Cst #0000057496 86.15 86.15 2052078 03/27/19 00145 BARRETT ENGINEERED PUMPS 112782 02/28/19 HYDROMATIC PUMP 5,150.45 LEGISLATIVE ADVOC SERV (THRU MAR 2019) WATER LINE REPLACEMENT (ENDING 2/28/19) BACTERIOLOGICAL TESTING (2/14/19-2/17/19) Page 2 of 9 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description 8,137.07 676.38 IRRIGATION INSTALL (FEB 2019)9,758.98 03/29/19 UB Refund Cst #0000073638 26.17 26.17 2052093 03/27/19 12907 GREENRIDGE LANDSCAPE INC 17917 02/28/19 426.40 030119033119 03/31/19 EXPENSE REIMBURSEMENT (3/1/19-3/31/19)249.98 2052130 04/03/19 19456 GLORIA G DE VEGA Ref002545742 WATER RECLAMATION DESIGN (9/1/18-3/1/19)3,487.00 3,487.00 2052208 04/17/19 17855 GASTELUM, HECTOR 022519022819 02/28/19 EXPENSE REIMBURSEMENT (2/25/19-2/28/19) 2052166 04/10/19 19236 GANNETT FLEMING INC 0643690170868 03/14/19 52.06 2052092 03/27/19 19221 FUTURE INDUSTRIAL TECHNOLOGIES 20731 03/18/19 BIONOMICS TRAINING 9,885.72 9,885.72 100.00 100.00 2052129 04/03/19 19473 FRANCISCO LOPEZ Ref002545759 03/29/19 UB Refund Cst #0000251783 52.06 FLEET WASH SERVICES 231.72 231.72 2052128 04/03/19 19420 FRANCHISE TAX BOARD Ben2545786 04/04/19 BI-WEEKLY PAYROLL DEDUCTION 2052207 04/17/19 11962 FLEETWASH INC x1557925 03/22/19 218.44 2052165 04/10/19 11962 FLEETWASH INC x1550122 03/15/19 FLEET WASH SERVICES 101.94 101.94 99.00 99.00 2052127 04/03/19 11962 FLEETWASH INC x1546425 03/08/19 FLEET WASH SERVICES 218.44 INVENTORY 9,460.78 9,460.78 2052091 03/27/19 17888 FIRST AMERICAN DATA TREE LLC 9003400219 02/28/19 ONLINE DOCUMENTS (MONTHLY) 0668521 03/21/19 INVENTORY 274.12 2052090 03/27/19 03546 FERGUSON WATERWORKS # 1083 0666617 03/08/19 BUTTERFLY VALVES 7,440.14 0667442 03/14/19 INVENTORY 422.81 2052164 04/10/19 03546 FERGUSON WATERWORKS # 1083 0664778 03/20/19 12,060.00 2052126 04/03/19 19471 FATIN BENNY Ref002545757 03/29/19 UB Refund Cst #0000250000 11.10 11.10 115,765.58 115,765.58 2052206 04/17/19 18795 ESM SOFTWARE LLC 599 04/20/19 STRAT PLAN SOFTWARE (5/21/19-5/20/20)12,060.00 EXPENSE REIMBURSEMENT (3/6/19-3/7/19)174.27 174.27 2052163 04/10/19 12578 ERS INDUSTRIAL SERVICES INC 100189 03/15/19 LABOR FOR FILTER MEDIA & NOZZLES 2052089 03/27/19 13825 ENRIQUEZ, LUIS 030619030719 03/25/19 65.03 2052125 04/03/19 19463 ELIZABETH MAGDALENA Ref002545749 03/29/19 UB Refund Cst #0000198608 99.60 99.60 632.15 632.15 2052205 04/17/19 19497 EDILBERT BANANA Ref002548145 04/15/19 UB Refund Cst #0000160206 65.03 UB Refund Cst #0000229999 1,684.36 1,684.36 2052088 03/27/19 19453 EBELE ENUNWA 5413032119 03/21/19 CUSTOMER REFUND 2052124 04/03/19 19464 DRI MAPLE MILLENIA LLC Ref002545750 03/29/19 37.09 2052087 03/27/19 05746 DOWNSTREAM SERVICES INC 102951 02/28/19 SEWER CONNECTION VERIFICATION SERVICES 1,356.00 1,356.00 18,750.00 18,750.00 2052123 04/03/19 19466 DOMINIQUE WISEMAN Ref002545752 03/29/19 UB Refund Cst #0000239917 37.09 2052204 04/17/19 15855 DIG-SMART LLC 1343 03/18/19 DIG-SMART SOFTWARE MAINTENANCE Page 3 of 9 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description 18,902.98 3,838.03 4,138.75 14,301.53 13,014.33 151.07 151.07 RECRUITMENT ADVERTISEMENT 65.00 65.00 2052136 04/03/19 19455 LARRY HURLEY Ref002545741 03/29/19 UB Refund Cst #0000048143 2052211 04/17/19 16998 LA PRENSA SAN DIEGO 2409 04/12/19 650.00 2052135 04/03/19 19467 KRISTEN KRON Ref002545753 03/29/19 UB Refund Cst #0000242459 82.27 82.27 13,278.50 13,278.50 2052134 04/03/19 12276 KONECRANES INC 154075848 03/20/19 CRANE INSPECTIONS 650.00 LICENSE RENEWAL 115.00 115.00 2052098 03/27/19 05840 KIRK PAVING INC 7042 03/05/19 PAVING SERVICES 2052172 04/10/19 10089 KENNEDY, ROBERT 38336040819 04/08/19 78.59 2052210 04/17/19 05217 JONES, DANIEL 041019 04/10/19 EXPENSE REIMBURSEMENT 283.00 283.00 173.28 173.28 2052133 04/03/19 19462 JENITA BEY Ref002545748 03/29/19 UB Refund Cst #0000195832 78.59 ANTENNA SUBLEASE (APR 2019)1,757.00 1,757.00 2052132 04/03/19 19459 JAMES EDWARDS Ref002545745 03/29/19 UB Refund Cst #0000175385 150567 03/04/19 BILL PROCESSING SERVICES 2,357.89 2052171 04/10/19 17106 IWG TOWERS ASSETS II LLC 484247 04/01/19 2,921.44 2052097 03/27/19 08969 INFOSEND INC 150193 02/28/19 BILL PROCESSING SERVICES 10,656.44 855.43 855.43 2052170 04/10/19 08969 INFOSEND INC 150192 03/12/19 BILL PROCESSING SERVICES 2,921.44 AS-NEEDED ENVIRO (1/26/19-2/22/19)2,457.90 2,457.90 2052096 03/27/19 17816 INDUSTRIAL SCIENTIFIC CORP 2184822 02/28/19 GAS DETECTION PROGRAM 0137249 03/18/19 AS-NEEDED ENVIRO (1/26/19-2/22/19)550.38 2052095 03/27/19 15622 ICF JONES & STOKES INC 0136975 03/08/19 6,927.91 0137248 03/18/19 SAN MIGUEL HMA (1/29/19-2/22/19)6,048.24 0137133 03/14/19 AS-NEEDED ENVIRO (1/26/19-2/22/19)775.00 UB Refund Cst #0000242640 381.67 381.67 2052169 04/10/19 15622 ICF JONES & STOKES INC 0137139 03/14/19 AS-NEEDED ENVIRO (1/26/19-2/22/19) 03/29/19 UB Refund Cst #0000242640 1,571.22 1,571.22 2052209 04/17/19 19468 HOMEFED SPIC OTAY LLC Ref002548148 04/15/19 3,850.00 200940015 03/21/19 ASSET MANAGMENT SVCS (FEB 2019)288.75 2052131 04/03/19 19468 HOMEFED SPIC OTAY LLC Ref002545754 HACH APA6000 1,111.98 1,111.98 2052168 04/10/19 18436 HAZEN AND SAWYER DPC 2009400013 03/22/19 HYDRAULIC MODELING (FEB 2019) 2052167 04/10/19 00174 HACH COMPANY 11365670 03/05/19 HACH APA6000 2,041.56 11368402 03/06/19 HACH APA6000 1,796.47 2052094 03/27/19 00174 HACH COMPANY 11362677 03/01/19 IRRIGATION INSTALL (FEB 2019)9,758.98 17894 02/28/19 LANDSCAPING SERVICES (FEB 2019)9,144.00 2052093 03/27/19 12907 GREENRIDGE LANDSCAPE INC 17917 02/28/19 Page 4 of 9 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description 7,390.00 2052218 04/17/19 02950 RDO EQUIPMENT CO E02316 03/29/19 LOADER & EXCAVATOR CP #13 & 14 123,868.79 123,868.79 2,591.06 2,591.06 2052182 04/10/19 03613 PSOMAS 149810 03/18/19 LAND SURVEYING SERV (ENDING 10/26/18)7,390.00 FY19 CP #12 UTV 13,744.90 13,744.90 2052104 03/27/19 01715 PORRAS, PEDRO 060919061219 03/22/19 EXPENSE REIMBURSEMENT (6/9/19-6/12/19) 2052217 04/17/19 19092 POLARIS SALES INC INV13973PJKK0881540004/03/19 610.14 2052216 04/17/19 15081 PINOMAKI DESIGN 5838 04/01/19 GRAPHIC DESIGN SERVICES 42.50 42.50 207.91 207.91 2052181 04/10/19 00137 PETTY CASH CUSTODIAN 040919 04/09/19 PETTY CASH REIMBURSEMENT (APR 2019)610.14 RET/PACIFIC HYDRO A#7533 (ENDING 2/28/19)20,458.54 20,458.54 2052180 04/10/19 19310 PALM LAUNDRY INC OWD003 03/31/19 TOWEL LAUNDRY SERVICE (MAR 2019) 2052179 04/10/19 18562 PACIFIC WESTERN BANK 1502282019 03/12/19 14,149.00 2052178 04/10/19 06646 PACIFIC HYDROTECH CORPORATION 1502282019 03/12/19 870-2 PS REPLACEMENT (ENDING 2/28/19)388,712.30 388,712.30 19.42 19.42 2052103 03/27/19 02027 NTH GENERATION COMPUTING INC 34052H 02/28/19 SECUREAUTH RENEWAL (1/3/19-1/2/22)14,149.00 GEOTECHNICAL SERVICES (1/26/19-2/22/19)3,049.50 3,049.50 2052215 04/17/19 19499 NORMA ESTES Ref002548147 04/15/19 UB Refund Cst #0000226234 2052102 03/27/19 00761 NINYO & MOORE GEOTECHNICAL 225975 03/07/19 12,573.12 2052177 04/10/19 00761 NINYO & MOORE GEOTECHNICAL 226542 03/22/19 GEOTECHNICAL SERVICES (1/26/19-2/22/19)5,182.00 5,182.00 12,573.12 12,573.12 2052139 04/03/19 16255 NATIONWIDE RETIREMENT Ben2545776 04/04/19 BI-WEEKLY DEFERRED COMP PLAN 12,573.12 UB Refund Cst #0000250070 40.34 40.34 2052214 04/17/19 16255 NATIONWIDE RETIREMENT Ben2548208 04/18/19 BI-WEEKLY DEFERRED COMP PLAN 2052213 04/17/19 19501 NANAZ LANDSBERGER Ref002548150 04/15/19 47.14 2052176 04/10/19 16608 MICHAEL BAKER INT'L INC 1042526 03/19/19 870-2 PS INSPECTION SERV (ENDING 3/3/19)29,632.50 29,632.50 40,800.00 40,800.00 2052138 04/03/19 19461 MICH DOS LLC Ref002545747 03/29/19 UB Refund Cst #0000177624 47.14 UB Refund Cst #0000243896 21.67 21.67 2052101 03/27/19 19313 MAXIM ENGINEERING 1901011 02/20/19 MESSNER PANEL INSTALL 2052212 04/17/19 19500 MATTHEW BRUHIN Ref002548149 04/15/19 9,604.00 2052100 03/27/19 15921 MATCHPOINT INC 727 03/19/19 2019 LEAK DETECTION SERVICES 8,469.16 8,469.16 8,552.58 8,552.58 2052175 04/10/19 15921 MATCHPOINT INC 734 04/01/19 2019 LEAK DETECTION SERVICES 9,604.00 EXPENSE REIMBURSEMENT (MAR 2019)984.20 984.20 2052174 04/10/19 19475 MASS TRANSIT PROPERTIES LLC MTR17109040419 04/04/19 METER REFUND 2052173 04/10/19 07591 MA, DONGXING 030519030819 03/05/19 9.03 2052099 03/27/19 18905 M RAE ENGINEERING INC 502282019 02/28/19 PIPELINE CP IMPROVE PHASE II (THRU 2/28/19)14,986.25 14,986.25 2052137 04/03/19 19454 LYNDA OSBORN Ref002545740 03/29/19 UB Refund Cst #0000002440 9.03 Page 5 of 9 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description 2,031.00 3,114.50 87,603.13 73,403.83 BASIC LIFE & BASIC AD&D (MARCH 2019)9,425.67 9,425.67205218704/10/19 15974 SUN LIFE FINANCIAL 38166030119 03/01/19 103.35 2052144 04/03/19 19460 STEWART ONSRUD Ref002545746 03/29/19 UB Refund Cst #0000176564 39.70 39.70 7,000.00 7,000.00 2052223 04/17/19 19495 STEVE STEINMETZ Ref002548143 04/15/19 UB Refund Cst #0000025505 103.35 CUSTOMER SERVICE DESKS INSTALL 1,942.30 1,942.30 2052186 04/10/19 07728 SOUTHWESTERN COLLEGE OWD032119 03/21/19 SDCOC PARTNERSHIP (JAN 2019 - DEC 2019) 2052143 04/03/19 19401 SOUTHWEST MILLWORKS INC 5371 03/19/19 38.11 2052222 04/17/19 16229 SMITH, TIMOTHY 030119033119 03/31/19 EXPENSE REIMBURSEMENT (MAR 2019)27.26 27.26 678.16 678.16 2052142 04/03/19 19470 SKII FLEETON Ref002545756 03/29/19 UB Refund Cst #0000249265 38.11 UTILITY EXPENSES (MONTHLY)220.72 220.72 2052108 03/27/19 05512 SD COUNTY VECTOR CONTROL PROG SD100372018-19 03/21/19 OTHER AGENCY FEES 2052221 04/17/19 00121 SAN DIEGO GAS & ELECTRIC 040519 04/05/19 032919 03/29/19 UTILITY EXPENSES (MONTHLY)55.86 040419A 04/04/19 UTILITY EXPENSES (MONTHLY)41.49 UTILITY EXPENSES (MONTHLY)65,228.32 040119 04/01/19 UTILITY EXPENSES (MONTHLY)8,078.16 032619 03/26/19 UTILITY EXPENSES (MONTHLY)585.02 2052185 04/10/19 00121 SAN DIEGO GAS & ELECTRIC 040419 04/04/19 55,485.57 032719 03/27/19 UTILITY EXPENSES (MONTHLY)20,934.03 032219 03/22/19 UTILITY EXPENSES (MONTHLY)10,598.51 UTILITY EXPENSES (MONTHLY)14,760.25 14,760.25 2052141 04/03/19 00121 SAN DIEGO GAS & ELECTRIC 032819 03/28/19 UTILITY EXPENSES (MONTHLY) 0000001780 03/04/19 WATERSMART PROG INCENTIVES (DEC 2018)917.33 2052107 03/27/19 00121 SAN DIEGO GAS & ELECTRIC 032519 03/25/19 WATERSMART PROG INCENTIVES (Nov 2018)1,175.08 0000001788 03/04/19 WATERSMART PROG INCENTIVES (JAN 2019)1,022.09 2052106 03/27/19 00003 SAN DIEGO COUNTY WATER AUTH 0000001775 03/01/19 13.62 2052220 04/17/19 02586 SAN DIEGO COUNTY ASSESSOR 201900259 04/04/19 ASSESSOR DATA (MONTHLY)125.00 125.00 111.36 111.36 2052140 04/03/19 19457 ROBERT MANNESS Ref002545743 03/29/19 UB Refund Cst #0000080773 13.62 WELDING FORCE MAIN REPAIR 1,050.00 1,050.00 2052219 04/17/19 04542 ROBAK, MARK 030119033119 03/31/19 EXPENSE REIMBURSEMENT (MAR 2019) 2052184 04/10/19 00521 RICK POST WELD & WET TAPPING 12176 03/22/19 859.00 0066451 03/15/19 DESIGN SERVICES (1/26/19-2/22/19)797.00 0066452 03/15/19 CAMPO RD SUPP SVCS (1/26/19-2/22/19)375.00 CORROSION SERVICES (FEB 2019)21,047.00 21,047.00 2052183 04/10/19 08972 RICK ENGINEERING COMPANY 17829D15 03/15/19 DESIGN SERVICES (1/26/19-2/22/19) 2052105 03/27/19 15647 RFYEAGER ENGINEERING LLC 19050 03/01/19 Page 6 of 9 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description 17,614.34 8,796.00 1,372.11 658.29 220.00 BI-WEEKLY 401A PLAN 4,755.39 4,755.39205215004/03/19 06414 VANTAGEPOINT TRANSFER AGENTS Ben2545782 04/04/19 16,910.30 2052228 04/17/19 01095 VANTAGEPOINT TRANSFER AGENTS Ben2548216 04/18/19 BI-WEEKLY DEFERRED COMP PLAN 16,963.98 16,963.98 9,528.00 9,528.00 2052149 04/03/19 01095 VANTAGEPOINT TRANSFER AGENTS Ben2545784 04/04/19 BI-WEEKLY DEFERRED COMP PLAN 16,910.30 VALCO PARTS 3,765.37 3,765.37 2052112 03/27/19 08028 VALLEY CONSTRUCTION MANAGEMENT SD10774 03/07/19 CMIS (FEB 2019) 03/13/19 VALCO PARTS 805.38 805.38 2052227 04/17/19 03190 VALCO INSTRUMENTS CO INC 90387147 03/22/19 110.00 8620623 02/28/19 PATROLLING SERVICES (2/22/19-2/28/19)110.00 2052192 04/10/19 03190 VALCO INSTRUMENTS CO INC 90386379 PREPAID POSTAGE MACHINE 6,000.00 6,000.00 2052226 04/17/19 06829 US SECURITY ASSOCIATES INC 8688605 03/28/19 PATROLLING SERVICES (3/22/19-3/28/19) 2052191 04/10/19 00350 UNITED STATES POSTAL SERVICE 3951040419 04/04/19 1148194144 03/18/19 PORT. TOILET RENTAL 87.50 1148193015 03/18/19 PORT. TOILET RENTAL 79.96 PORT. TOILET RENTAL 392.58 1148194145 03/18/19 PORT. TOILET RENTAL 98.25 2052148 04/03/19 15675 UNITED SITE SERVICES INC 1148194179 03/18/19 UNDERGROUND ALERTS (MONTHLY)752.50 18dsbfee978 03/01/19 DIG SAFE BOARD FEES (MONTHLY)619.61 2052111 03/27/19 00427 UNDERGROUND SERVICE ALERT 220190487 03/01/19 7.76 2052147 04/03/19 02641 TRANE US INC 39754538 03/09/19 SERV AGREEMENT (MAR 2019-MAR 2020)8,161.58 8,161.58 113.68 113.68 2052146 04/03/19 19469 TIM CLASEMAN Ref002545755 03/29/19 UB Refund Cst #0000243118 7.76 ACTUARIAL SERVICES 2,750.00 2,750.00 2052225 04/17/19 14177 THOMPSON, MITCHELL 030119033119 03/31/19 EXPENSE REIMBURSEMENT (3/1/19-3/31/19) TCFOE2702 03/15/19 MANAGEMENT TRAINING (MAR 19)399.00 2052190 04/10/19 18064 THE HOWARD E NYHART CO INC 0147941 02/28/19 70,303.75 2052224 04/17/19 03236 THE CENTRE FOR ORGANIZATION TCFOE2686 03/01/19 MANAGEMENT TRAINING (FEB 19-NOV19)8,397.00 4,780.00 4,780.00 2052189 04/10/19 19272 THARSOS INC 202282019 03/14/19 HEADWORKS/WET WELLS IMPROVE(FEB 2019)70,303.75 COMMUNICATION CONSULTANT (FEB 2019)2,500.00 2,500.00 2052188 04/10/19 17704 T&T JANITORIAL INC 20185500 02/28/19 JANITORIAL SERVICES (FEB 2019) 463460 03/01/19 DIESEL FUEL 6,944.29 2052110 03/27/19 18376 SVPR COMMUNICATIONS 1257 02/28/19 3,921.86 3,921.86 2052109 03/27/19 10339 SUPREME OIL COMPANY 720752 03/01/19 UNLEADED FUEL 10,670.05 BASIC LIFE & BASIC AD&D (MARCH 2019)9,425.67 9,425.67 2052145 04/03/19 19465 SUNDT CONSTRUCTION INC Ref002545751 03/29/19 UB Refund Cst #0000239537 2052187 04/10/19 15974 SUN LIFE FINANCIAL 38166030119 03/01/19 Page 7 of 9 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description 38,075.08 14,968.90 3,351.05205223004/17/19 15807 WATCHLIGHT CORPORATION 614535 02/22/19 614556 02/22/19 SECURITY EQUIPEMENT INSTALLATION 1,236.45 614608 02/25/19 SECURITY EQUIPEMENT INSTALLATION 404.25 614544 02/22/19 SECURITY EQUIPEMENT INSTALLATION 1,547.05 614552 02/22/19 SECURITY EQUIPEMENT INSTALLATION 1,437.74 614830 03/01/19 SECURITY EQUIPEMENT INSTALLATION 2,006.69 614539 02/22/19 SECURITY EQUIPEMENT INSTALLATION 1,580.52 2,472.92 614319 02/18/19 SECURITY EQUIPEMENT INSTALLATION 2,160.18 614617 02/25/19 SECURITY EQUIPEMENT INSTALLATION 2,123.10 2052193 04/10/19 15807 WATCHLIGHT CORPORATION 616793 03/15/19 614822 03/01/19 SECURITY EQUIPEMENT INSTALLATION 300.45 614852 03/01/19 SECURITY EQUIPEMENT INSTALLATION 225.33 614786 02/28/19 SECURITY EQUIPEMENT INSTALLATION 383.03 614847 03/01/19 SECURITY EQUIPEMENT INSTALLATION 362.90 614843 03/01/19 SECURITY EQUIPEMENT INSTALLATION 686.94 614833 03/01/19 SECURITY EQUIPEMENT INSTALLATION 437.80 614840 03/01/19 SECURITY EQUIPEMENT INSTALLATION 946.30 614828 03/01/19 SECURITY EQUIPEMENT INSTALLATION 752.51 617955 03/05/19 SECURITY EQUIPEMENT INSTALLATION 1,021.52 614841 03/01/19 SECURITY EQUIPEMENT INSTALLATION 995.85 614832 03/01/19 SECURITY EQUIPEMENT INSTALLATION 1,138.85 614825 03/01/19 SECURITY EQUIPEMENT INSTALLATION 1,093.84 614827 03/01/19 SECURITY EQUIPEMENT INSTALLATION 1,274.24 614789 02/28/19 SECURITY EQUIPEMENT INSTALLATION 1,218.53 614849 03/01/19 SECURITY EQUIPEMENT INSTALLATION 1,604.76 614823 03/01/19 SECURITY EQUIPEMENT INSTALLATION 1,560.79 614793 02/28/19 SECURITY EQUIPEMENT INSTALLATION 2,585.83 614779 02/28/19 SECURITY EQUIPEMENT INSTALLATION 2,224.94 614842 03/01/19 SECURITY EQUIPEMENT INSTALLATION 2,833.78 614817 03/01/19 SECURITY EQUIPEMENT INSTALLATION 2,731.26 614680 02/26/19 SECURITY EQUIPEMENT INSTALLATION 5,260.84 614845 03/01/19 SECURITY EQUIPEMENT INSTALLATION 2,873.65 2,905.39 2,905.39 2052113 03/27/19 15807 WATCHLIGHT CORPORATION 614676 02/26/19 5,561.14 2052229 04/17/19 06414 VANTAGEPOINT TRANSFER AGENTS Ben2548214 04/18/19 BI-WEEKLY 401A PLAN SECURITY ALARM MONITORING (APR 2019) SECURITY EQUIPEMENT INSTALLATION SECURITY EQUIPEMENT INSTALLATION Page 8 of 9 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/21/2019 - 4/18/2019 Check #Date Vendor Vendor Name Invoice Inv. Date Description 11,203.81 102,045.43 250.00 1,575.00 Check Grand Total:2,450,836.80 04/01/19 COLOCATION SERVICES 2,117.20 2,117.20 Amount Pd Total:2,450,836.80 787.50 00924941IN 03/31/19 EMPLOYEE BENEFITS 787.50 2052196 04/10/19 18215 ZAYO GROUP LLC 2019040024566 SEWER REPLACEMENT (FEB 2019)183,268.53 183,268.53 2052232 04/17/19 08023 WORKTERRA 0092465IN 02/28/19 EMPLOYEE BENEFITS 03/08/19 RET/WEIR CONST A#2222 (FEB 2019)9,645.71 9,645.71 2052117 03/27/19 18101 WIER CONSTRUCTION CORP 2002282019 03/08/19 125.00 21227 03/01/19 BEE REMOVAL 125.00 2052116 03/27/19 18173 WESTERN ALLIANCE BANK 2002282019 BEE REMOVAL 125.00 125.00 2052115 03/27/19 01343 WE GOT YA PEST CONTROL INC 21221 03/01/19 BEE REMOVAL 2052195 04/10/19 01343 WE GOT YA PEST CONTROL INC 21294 03/15/19 190592 04/16/19 CP 4, 7, 9 1/2 TON TRUCKS #244 33,689.02 190574 04/16/19 CP 4, 7, 9 1/2 TON TRUCKS #245 33,689.02 7,870.00 7,870.00 2052231 04/17/19 19176 WAYNE GOSSETT DBA 190581 04/16/19 CP 4, 7, 9 1/2 TON TRUCKS #246 34,667.39 QTRYLY GARDEN FUNDING (Q4)24,000.00 24,000.00 2052114 03/27/19 15726 WATER SYSTEMS CONSULTING INC 3688 02/28/19 HYDRAULIC MODELING (ENDING 2/28/19) 2052194 04/10/19 14879 WATER CONSERVATION GARDEN 20190303 03/12/19 614559 02/22/19 SECURITY EQUIPEMENT INSTALLATION 2,171.48 614824 03/01/19 SECURITY EQUIPEMENT INSTALLATION 856.63 614368 02/19/19 SECURITY EQUIPEMENT INSTALLATION 2,605.27 614316 02/18/19 SECURITY EQUIPEMENT INSTALLATION 2,219.38 Page 9 of 9