HomeMy WebLinkAbout03-06-19 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
March 6, 2019
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. WATER CONSERVATION GARDEN UPDATE (JENNIFER PILLSBURY, WATER CON-
SERVATION GARDEN EXECUTIVE DIRECTOR)
5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF OCTOBER 3,
2018
6. 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
7. 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) ADOPT ORDINANCE NO. 570 TO AMEND SECTION 0 (DEFINITIONS AND MIS-
CELLANEOUS PROVISIONS) AND SECTION 51 (DISTRICT SEWER SYSTEM)
OF THE DISTRICT’S CODE OF ORDINANCES; AND, ADOPT RESOLUTION
NO. 4357 TO AMEND BOARD OF DIRECTORS POLICY NO. 1 (PRIVATE
SEWER LATERALS) OF THE DISTRICT’S CODE OF ORDINANCES
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b) APPROVE STAFF’S RECOMMENDATION TO CONTINUE THE DISTRICT’S
BANKING SERVICES WITH UNION BANK. STAFF WILL PERFORM THE NEXT
BANKING SERVICES REVIEW IN SIX (6) YEARS AND A PRICING REVIEW IN
THREE (3) YEARS
c) IMPOSE A $5,000 FINE TO WHITING TURNER CONSTRUCTION COMPANY
FOR AN ILLEGAL CONNECTION TO A FIRE HYDRANT AND WATER THEFT
d) APPROVE AN AGREEMENT WITH BROWNSTEIN HYATT FARBER SCHRECK
COMMENCING MARCH 6, 2019 THROUGH DECEMBER 31, 2021 FOR AN
AMOUNT NOT-TO-EXCEED $200,000
e) APPROVE A FIFTH AMENDMENT WITH CAROLLO ENGINEERS, INC. FOR
THE DESIGN AND CONSTRUCTION SUPPORT OF THE 870-2 PUMP STATION
PROJECT IN AN AMOUNT NOT-TO-EXCEED $88,352
ACTION ITEMS
8. BOARD
a) BOARD OF DIRECTOR’S POLICY NO. 8, DIRECTORS COMPENSATION, RE-
IMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS: MEET-
ING ATTENDANCE AND VERBIAGE UPDATES
b) 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:
a) SECOND QUARTER OF FISCAL YEAR 2019 CAPITAL IMPROVEMENT PRO-
GRAM REPORT (MARTIN)
b) FISCAL YEAR 2019 MID-YEAR STRATEGIC PLAN UPDATE (SEGURA)
REPORTS
10. GENERAL MANAGER’S REPORT
11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
12. DIRECTORS' REPORTS/REQUESTS
13. PRESIDENT’S REPORT/REQUESTS
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OTAY WATER DISTRICT FINANCING AUTHORITY
14. NO MATTERS TO DISCUSS
15. ADJOURNMENT
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 March 1, 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 March 1, 2019.
/s/ Susan Cruz, District Secretary
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MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT
AND
OTAY WATER DISTRICT FINANCING AUTHORITY
October 3, 2018
1. The meeting was called to order by President Smith at 3:30 p.m.
2. ROLL CALL
Directors Present: Gastelum, Robak, Smith and Thompson
Directors Absent: Croucher (out-of-town on business)
Staff Present: General Manager Mark Watton, General Counsel Dan
Shinoff, Chief Financial Officer Joe Beachem, Chief of
Engineering Rod Posada, Chief of Operations Pedro
Porras, Chief of Administration Adolfo Segura, Asst. Chief
of Finance Kevin Koeppen, Asst. Chief of Engineering Dan
Martin, District Secretary Susan Cruz and others per
attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
A motion was made by Director Robak, seconded by Director Gastelum and
carried with the following vote:
Ayes: Directors Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Director Croucher
to approve the agenda.
5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF JUNE 6,
2018
A motion was made by Director Robak, seconded by Director Gastelum and
carried with the following vote:
Ayes: Directors Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Director Croucher
to approve the minutes of the regular board meeting of June 6, 2018.
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6. 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
General Manager Watton presented District Secretary Susan Cruz a certificate
recognizing her for her 20 years of service to the District. He congratulated her
on her service accomplishment. Ms. Cruz thanked the Board and District and
indicated she enjoyed doing her job and was happy to be with the District for 20
years. President Smith thanked her and indicated that they were happy to have
her.
PUBLIC HEARING
7. PUBLIC HEARING ON RATES AND CHARGES
THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER THE
PROPOSED SEWER RATES, FEES, AND CHARGES TO BE IMPLEMENTED
IN THE FISCAL YEAR 2018-2019 OPERATING AND CAPITAL BUDGET AND
TO AUTHORIZE, FOR A PERIOD OF FIVE YEARS, THE PASS-THROUGH OF
COST INCREASES FROM SEWER SERVICE PROVIDERS AND DISTRICT
SEWER INCREASES FOR FISCAL YEARS 2020-2024 NOT-TO-EXCEED 10
PERCENT ANNUALLY FOR ALL COSTS OTHER THAN PASS-THROUGH
COSTS. THE BOARD INVITES THE PUBLIC TO PROVIDE COMMENTS ON
THE PROPOSED RATES, FEES AND CHARGES
a) APPROVE THE PROPOSED SEWER RATES AND CHARGES TO BE
IMPLEMENTED IN THE FISCAL YEAR 2018-2019 OPERATING AND
CAPITAL BUDGET; ADOPT ORDINANCE NO. 568 AMENDING
SECTION 53, AND APPENDIX A, SCHEDULE OF FEES OF THE
DISTRICT’S CODE OF ORDINANCES; AUTHORIZE, FOR A PERIOD
OF FIVE-YEARS, THE PASS-THROUGH OF COST INCREASES FROM
SEWER SERVICE PROVIDERS; AND AUTHORIZE, FOR A PERIOD OF
FIVE-YEARS, DISTRICT SEWER RATE INCREASES NOT-TO-EXCEED
10 PERCENT ANNUALLY, FOR ALL COSTS OTHER THAN PASS-
THROUGH COSTS
Assistance Chief of Finance Kevin Koeppen indicated the District is holding a
Proposition 218 hearing on sewer rates. Staff will presenting the sewer rate
changes, hear the public comments on the rate changes and, at the close of the
public hearing, request that the board consider approving Ordinance No. 568 to
adopt the changes to rates, fees and charges to sewer billings beginning on
January 1, 2019. In addition, to authorize the changes to pass-through increases
or decreases to cover changes to rates and fees from the District’s sewer
providers and authorize, for a period of five years, sewer increases and pass-
through increases not to exceed 10% per year for internal District costs.
Mr. Koeppen indicated that in March staff presented the sewer cost of service
study to the board and in May the board adopted the budget incorporating the
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presented rates. Today, the District is holding the Proposition 218 Public
Hearing and, if the proposed rate changes are approved by the board, the rates
will become effective January 1, 2019.
He reviewed the rate changes and indicated that the overall proposed sewer rate
decrease is 7%. He stated that the District has not received any disputes
regarding the sewer rate changes and staff is recommending that the board
adopt Ordinance No. 568 approving the rate changes and the pass-through of
sewer costs not to exceed 10% per year for a period of five years.
In response to an inquiry from President Smith, Mr. Koeppen indicated that
based on current estimates, the District’s sewer rate increases will be 4.6%
annually for the next five years. It was discussed that staff felt that it is best to
make the rate adjustments as needed annually.
Mr. Koeppen explained in response to an inquiry from Director Gastelum that the
reason for the proposed decrease in the sewer rate is during the drought, the
average winter water use average dropped from 14 to 9.5 units due to
conservation. Because of this conservation, the sewer rate needed to be
increased. Currently, water use is going up and the average winter water use is
back to 14 units which is allowing the District to reduce its sewer rate.
It was discussed that the District is the 6th lowest cost sewer provider in the
County. This is worth noting as the District’s system is very small and does not
have the benefit of economies of scale, but the District is able to run its sewer
system efficiently and keep its costs down. The District has reached out to the
County to possibly share services and increase efficiency. The County has not
expressed interest at this time.
President Smith opened the Public Hearing to hear the public’s comments on the
sewer rate changes at 3:50 p.m. There were no requests to speak and President
Smith closed the hearing at 3:50 p.m.
In response to an inquiry from Director Robak, Mr. Sean Cooper of HDR
(District’s rate consultant) indicated that there has been instances where sewer
utilities have had their rates challenged, however, he is not aware of any recent
or current lawsuits. He stated that they do follow accepted principles and
methodologies when establishing sewer rates and the Cost of Service Study
supports the rates presented for the board’s adoption.
A motion was made by Director Robak, seconded by Director Thompson and
carried with the following vote:
Ayes: Directors Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Director Croucher
to approve staff’s recommendation.
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CONSENT CALENDAR
8. 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 Thompson, seconded by Director Gastelum and
carried with the following vote:
Ayes: Directors Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Director Croucher
to approve the following consent calendar items:
a) ADOPT ORDINANCE NO. 569 AMENDING THE APPENDIX OF
SECTION 6, CONFLICT OF INTEREST CODE (COIC), CONTAINED
WITHIN THE DISTRICT’S CODE OF ORDINANCES TO UPDATE THE
POSITION TITLES REQUIRED TO FILE A FORM 700; UPDATE WITHIN
SECTION 6.05, STATEMENTS OF ECONOMIC INTERESTS: TIME OF
FILING, IF A PERSON FILES AN ASSUMING OFFICE FORM 700
FILING BETWEEN OCTOBER 1 AND DECEMBER 31, THAT PERSON
NEED NOT FILE AN ANNUAL FORM 700 UNTIL TWO (2) APRILS
FROM THE MONTH OF FILING AN ASSUMING OFFICE FORM AND
THAT PERSONS WHO REPORT FOR MILITARY SERVICE SHALL FILE
WITHIN 30 DAYS OF RETURNING TO OFFICE; TO CODIFY WITHIN
SECTION 6.04, STATEMENTS OF ECONOMIC INTERESTS: PLACE OF
FILING, THE PRACTICE OF ELECTRONICALLY FILING FORM 700’S;
AND TO UPDATE GOVERNMENT CODE SECTION NUMBERS AND
REFLECT CURRENT STATUTE LANGUAGE THROUGHOUT THE COIC
b) AWARD TWO (2) PROFESSIONAL AS-NEEDED CONSTRUCTION
MANAGEMENT AND INSPECTION SERVICES CONTRACTS TO
ALYSON CONSULTING AND VALLEY CONSTRUCTION
MANAGEMENT, EACH IN AN AMOUNT NOT-TO-EXCEED $600,000.
THE TOTAL AMOUNT FOR THE TWO (2) CONTRACTS WILL NOT
EXCEED $600,000 DURING FISCAL YEARS 2019 AND 2020 (ENDING
JUNE 30, 2020)
c) ADOPT RESOLUTION NO. 4351 AMENDING POLICY NO. 6, ANNUAL
CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT, OF THE
DISTRICT’S CODE OF ORDINANCES
d) ADOPT A NEGATIVE DECLARATION FOR THE VISTA VEREDA AND
HIDDEN MESA ROAD WATER LINE REPLACEMENT PROJECT
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ACTION ITEMS
9. FINANCE AND ADMINISTRATION
a) ADOPT RESOLUTION NO. 4352 OF THE OTAY WATER DISTRICT
AMENDING RESOLUTION NO. 4350 TO AUTHORIZE THE
REFINANCING OF THE DISTRICT’S VARIABLE RATE DEMAND
CERTIFICATES OF PARTICIPATION (1996 CAPITAL PROJECTS)
THROUGH THE ISSUANCE BY THE OTAY WATER DISTRICT
FINANCING AUTHORITY OF ITS WATER REVENUE BONDS, SERIES
2018A IN AN AGGREGATE PRINCIPAL AMOUNT NOT-TO-EXCEED
$36,000,000, APPROVING THE EXECUTION OF CERTAIN
DOCUMENTS AND AUTHORIZING CERTAIN ACTS IN CONNECTION
THEREWITH
Assistant Chief of Finance Kevin Koeppen indicated that staff is requesting that
the board adopt Resolution No. 4352 amending Resolution No. 4350 to authorize
the refinancing of the District’s variable rate demand Certificates of Participation
(1996 Capital Projects) through the issuance by the Otay Water District
Financing Authority of its water revenue bonds, series 2018A in an amount not-
to-exceed $36 million, approving the execution of certain documents and
authorizing certain acts in connection with the refinancing. Please reference the
Committee Action notes (Attachment A) attached to the staff report for the details
of Mr. Koeppen’s report. Staff responded to comments and questions from the
board and indicated that they felt this would be a very prudent action as the
District will be going from a variable rate to a fixed rate on the issuance.
A motion was made by Director Thompson, seconded by Director Gastelum and
carried with the following vote:
Ayes: Directors Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Director Croucher
to approve staff’s recommendation.
10. RECESS OTAY WATER DISTRICT BOARD MEETING AND CONVENE OTAY
WATER DISTRICT FINANCING AUTHORITY BOARD MEETING
President Smith recessed the Otay Water District board meeting and convened
the Otay Water District Financing Authority board meeting at 4:00 p.m.
11. ROLL CALL
Directors Present: Gastelum, Robak, Smith and Thompson
Directors Absent: Director Croucher
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ACTION ITEMS
12. FINANCE
a) ADOPT RESOLUTION NO. 2018-03 RESOLUTION OF THE OTAY
WATER DISTRICT FINANCING AUTHORITY AMENDING RESOLUTION
NO. 2018-02 TO AUTHORIZE THE REFINANCING OF THE DISTRICT’S
VARIABLE RATE DEMAND CERTIFICATES OF PARTICIPATION (1996
CAPITAL PROJECTS) AND INCREASING THE ISSUANCE AMOUNT OF
THE AUTHORITY’S WATER REVENUE BONDS, SERIES 2018A TO AN
AGGREGATE PRINCIPAL AMOUNT NOT-TO-EXCEED $36,000,000,
APPROVING THE EXECUTION OF CERTAIN DOCUMENTS AND
AUTHORIZING CERTAIN ACTS IN CONNECTION THEREWITH
Assistant Chief of Finance Koeppen requested that the board adopt the Otay
Water District Financing Authority Resolution No. 2018-03 amending Resolution
No. 2018-02 to authorize the refinancing of the District’s variable rate demand
Certificates of Participation (1996 capital projects) and increasing the issuance
amount of the authority’s water revenue bonds, series 2018a, to an aggregate
principal amount not-to-exceed $36,000,000, approving the execution of certain
documents and authorizing certain acts in connection therewith.
A motion was made by Director Robak, seconded by Director Gastelum and
carried with the following vote:
Ayes: Directors Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Director Croucher
to approve staff’s recommendation.
13. ADJOURN OTAY WATER DISTRICT FINANCING AUTHORITY BOARD
MEETING AND RECONVENE OTAY WATER DISTRICT BOARD MEETING
President Smith adjourned the Otay Water District Financing Authority Board
meeting was reconvened the Otay Water District board meeting at 4:06 p.m.
14. BOARD
a) DISCUSSION OF 2018 BOARD MEETING CALENDAR
As there were no critical matters to discuss, the board canceled the December
2018 board meeting.
There were no other changes to the board meeting calendar.
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INFORMATIONAL ITEM
15. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR
INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE
FOLLOWING AGENDA ITEMS:
a) FISCAL YEAR 2018 DIRECTORS’ EXPENSES
Finance Manager Eid Fakhouri provided an update on the Fiscal Year 2018
Directors’ expenses. Please reference the Committee Action notes (Attachment
A) attached to the staff report for the details of Mr. Fakhouri’s report.
In response to an inquiry from President Smith, Mr. Fakhouri indicated that the
total expenditures for FY 2018 was $55,921.75 and the budget was $62,000.
President Smith indicated that he made an effort to find the best match for
conferences, etc. to educate the board on water issues to manage board
expenditures and assure that the board stayed under its budget. He stated that
he is proud to say that during his term as President, the board expenses were
under budget.
b) UPDATE ON THE POTABLE WATER, RECYCLED WATER, AND
WASTEWATER TREATMENT STUDIES PREPARED BY THE DISTRICT
AND OTHER AGENCIES OVER THE LAST TWENTY-FIVE YEARS
Engineering Manager Bob Kennedy indicated that this item is being presented to
update the board on potable, recycled and wastewater treatment studies
prepared by the District and other agencies over the last twenty-five years.
Please reference the Committee Action notes (Attachment A) attached to the
staff report for the details of Mr. Kennedy’s report.
The board and staff discussed the various studies and it was indicated that many
agencies are discussing diversifying their water supplies. Within the District’s
service area, there is not a lot of opportunities for diversification as there is no
groundwater basins, open reservoirs or a large supply of recycled water. The
District’s best opportunity for water supply diversification is desalinated water.
The District will continue to look at potential water resource projects and if they
can provide water at CWA’s cost or lower, these are projects the District will
pursue.
c) YEAR-END REPORT ON THE DISTRICT’S FISCAL YEARS 2015-2018
STRATEGIC PERFORMANCE PLAN FOR FISCAL YEAR 2018
Chief of Administration Adolfo Segura presented the Fiscal Year-end 2018
Strategic Performance Plan update. Please reference the Committee Action
notes (Attachment A) attached to the staff report for the details of Mr. Segura’s
report.
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The board discussed how some of the measures in the Strategic Plan directly
impact water rates, such as the results for the measures Distribution System
Water Loss and Change Order Rate. The water loss savings for FY 2018 is
$620,000 which decreases water rate increases by 0.7% and the change order
rate savings is $740,000 which decreases water rate increases by 0.8%. It was
noted as a comparison for the Distribution System Water Loss measure that
Sacramento’s water loss was 17.1% and the District’s water loss measure was
3.3% for FY 2018.
The board commended staff for their good work.
REPORTS
16. GENERAL MANAGER’S REPORT
General Manager Watton presented information from his report which included
an update on the hydrants being included in parcel manager in the customer
service database, employee recognition luncheon, monthly board meeting audio
streaming, emergency response plan, AMR change outs, water conservation and
potable and recycled water sales. Staff responded to comments and questions
from the board.
17. CWA REPORT
President Smith reported on an item discussed at CWA’s Engineering and
Operations Committee that is pertinent to the District. He indicated that CWA
had solicited bids for the San Diego 28 Flow Control Facility. The engineer’s cost
estimate for the project was $7 to 8 million and the actual bids were $14 to $19
million. CWA’s staff indicated that the contractors are so busy with work that it is
driving the bids up. It was noted that bids are also being affected by the possible
increase in steel cost due to the new tariffs that are being instituted and by the
purchase by Northwest Pipe Company of Amron which is decreasing
competition.
He shared that a report distributed at CWA’s Imported Water Committee
describes the history of the Local Resource Projects and the incentive funding
($250 to $350 an acre foot) that MWD provides agencies to produce more
diverse water supplies. He stated that to receive the funding, the agencies must
provide/complete items on a list. Until the list is completed, MWD will not release
funding. He indicated that if MWD has not released the incentive funding to an
agency who has applied for it, it is likely they have not completed the list of items.
President Smith asked District Secretary Susan Cruz to forward a copy of the
report to the members of the board. She indicated that she would do so.
He lastly reported with regard to CWA’s two-year budget that the first year of the
budget has been completed and CWA expended $13 million of their $26 million
budget for that year. Thus, CWA saved $13 million this past fiscal year.
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18. DIRECTORS' REPORTS/REQUESTS
Director Thompson reported that he attended, along with Director Gastelum, a
meeting of the Conservation Action Committee where they discussed the
Colorado River, its historic trends and its current situation.
Director Gastelum reported that he did attend the Conservation Action
Committee as reported by Director Thompson. He indicated that he also
attended a tour of the Twin Oaks Water Treatment Plant, the Citizens Water
Academy and CSDA’s Quarterly Meeting.
Director Robak explained that the Conservation Action Committee is a standing
committee of CWA and the purpose of the committee is to work with the private
sector to promote water conservation. He stated that he felt they are doing a
good job in leading the program. He shared that he attended MWD’s board
meeting in September to support Director Smith on his official “seating” on
MWD’s board. He lastly shared that a former Otay WD board member, Mr. John
Lamp, who served on the board in the 1970’s and 1980’s passed away about a
month ago. He stated Mr. Lamp was a real credit to the agency.
19. PRESIDENT’S REPORT
President Smith thanked Director Robak for attending his induction onto MWD’s
board. He shared that he hosted his first MWD/CWA Inspection Trip where he
led a tour of the State Water Project/Bay Delta. (President Smith’s report of
meetings he attended during the month of September will be attached to these
minutes.)
20. CLOSED SESSION
The board recessed to closed session at 5:15 p.m. to discuss the following
matters:
a) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE
§54957.6]
AGENCY DESIGNATED REPRESENTATIVES: BOARD AD HOC
COMMITTEE
MEMBERS
EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’
ASSOCIATION
AND
ALL REPRESENTED AND UNREPRESENTED PERSONNEL
INCLUDING MANAGEMENT AND CONFIDENTIAL EMPLOYEES
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The board reconvened from closed session at 6:04 p.m. General Counsel Dan
Shinoff indicated that the board met in closed session and took no reportable
actions.
21. ADJOURNMENT
With no further business to come before the Board, President Smith adjourned
the meeting at 6:04 p.m.
___________________________________
President
ATTEST:
District Secretary
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President’s Report
Tim Smith
October 3, 2018
Board Meeting
# Date Meeting Purpose
1 4-Sep Quarterly Meeting with OWD
General Manager Watton
Met with GM to receive an update on
projects or items impacting Division 1
2 5-Sep OWD Regular Board Meeting Monthly Board Meeting
3 13-Sep Committee Agenda Briefing
Met w/ General Manager Watton to
review items that will be presented at the
September committee meetings.
4 18-Sep EO&WR Committee Reviewed items that will be presented at
the October board meeting.
5 20-Sep Met with Dir Croucher and
General Manager Watton Discussed CWA Matters
6 26-Sep East County Caucus Discuss CWA issues
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: March 6, 2019
SUBMITTED BY:
Dan Martin
Assistant Chief of
Engineering
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Rod Posada, Chief of Engineering
Mark Watton, General Manager
SUBJECT: Adopt Ordinance No. 570 Amending Section 0 Definitions and
Miscellaneous Provisions, and Section 51 District Sewer System
of the District’s Code of Ordinances; and, Adopt Resolution
No. 4357 Amending Policy No. 1 for Private Sewer Laterals of
the District’s Code of Ordinances
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
adopt:
1. Ordinance No. 570 amending Section 0 Definitions and
Miscellaneous Provisions, and Section 51 District Sewer System of
the District’s Code of Ordinances; and,
2. Resolution No. 4357 amending Policy No. 1 for Private Sewer
Laterals of the District’s Code of Ordinances.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
The purpose of the proposed amendments outlined in this staff report
is to update Policy No. 1 of the District’s Code of Ordinances to
provide additional clarity with respect to responsibility and
maintenance of a property’s sewer lateral.
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ANALYSIS:
Policy No. 1 of the District’s Code of Ordinances establishes that
sewer laterals are the responsibility of the owner of the property
that the sewer lateral serves.
Staff has reviewed the current Policy No. 1, dated October 15, 1984.
A comparative analysis of sewer lateral policies for neighboring sewer
providers, including the County of San Diego, City of Chula Vista,
City of El Cajon, City of La Mesa, and Padre Dam Municipal Water
District was also performed by staff as part of this review for
consistency and equitability between the District and other agencies.
This review noted that the District’s current policy which states that
the sewer laterals are the responsibility of property owners is
consistent with the policies of neighboring sewer providers. Although
the specific policy language for each sewer provider is written in
different forms, in all cases, except for Padre Dam, the neighboring
sewer provider policies state that the maintenance, cleaning, and
repair of sewer laterals from the private property structure to the
public sewer main connection are the responsibility of the property
owner. In the case of Padre Dam, their policy for repairs of the
sewer lateral in the public right-of-way states that if documentation
verifies a sewer lateral repair issue, and not a maintenance issue,
Padre Dam will make the repair at no cost to the owner. The review by
District staff has concluded that additional language should be added
to Policy No. 1 of the District’s Code of Ordinances to provide
clarity to the property owner’s ownership, responsibility, and
maintenance of the sewer lateral that serves their property.
The amendments to Policy No. 1 provide clarity on the property owner’s
responsibility for:
District notification of a stoppage in a sewer lateral;
Repair/replacement costs associated with the property’s sewer
lateral;
Costs associated with corrective work or upsizing of the sewer
lateral;
Permitting requirements; and
Property owner’s responsibility for sewer lateral overflows.
3
The amendments to Policy No. 1 also include the District’s
responsibility for the relocation of a sewer lateral as part of a
District sponsored project.
The proposed amendments to Section 0 of the Code of Ordinances add
definitions for District Sewer, Sewer Lateral, and Sewer Maintenance.
This staff recommendation also includes a proposed amendment to
Section 51 of the Code of Ordinances. The word “District” is stricken
from Section 51.02 as it relates to a sewer lateral to avoid any
ambiguity to the property owner’s responsibility for the sewer
lateral.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Adoption of Ordinance No. 570 and Resolution No. 4357 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.”
LEGAL IMPACT:
None.
DM/RP:jf
P:\Public-s\STAFF REPORTS\2019\BD 02-06-19\BD 02-06-19 Staff Report Policy 1 Proposed Changes Report (DM-RP).docx
Attachments: Attachment A – Committee Action
Attachment B - Ordinance No. 570
Exhibit 1 – Strike-through Section 0
Exhibit 2 – Strike-through Section 51
Attachment C – Resolution No. 4357
Exhibit 1 – Strike-through Policy No. 1
Attachment D – Proposed Section 0
Attachment E – Proposed Section 51
Attachment F – Proposed Policy No. 1
ATTACHMENT A
SUBJECT/PROJECT:
VARIOUS
Adopt Ordinance No. 570 Amending Section 0 Definitions and
Miscellaneous Provisions, and Section 51 District Sewer
System of the District’s Code of Ordinances; and Adopt
Resolution No. 4357 Amending Policy No. 1 for Private Sewer
Laterals of the District’s Code of Ordinances
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this
item at a meeting held on February 19, 2019 and the following comments
were made:
Staff is requesting that the Board adopt Ordinance No. 570 amending
Section 0, Definitions and Miscellaneous Provisions, and Section 51,
District Sewer System; and adopt Resolution No. 4357 amending Policy
No. 1, Private Sewer Laterals, of the District’s Code of Ordinances.
Staff reviewed information in the staff report.
It was indicated that, though, specific policy language for each
sewer provider is written in different forms, in all cases, with the
exception of Padre Dam, the neighboring sewer provider policies
state that the maintenance, cleaning, and repair of sewer laterals
from the private property to the public sewer main connection in the
public right-of-way are the responsibility of the property owner.
Staff noted in the case of City policies, the Cities of La Mesa and
Chula Vista will perform repairs to the sewer lateral within the
public right-of-way if it is determined that a City street tree in
the public right-of-way caused the damage to the sewer lateral.
The proposed amendments to Policy No. 1 (reference page 2 of the
attached staff report) will provide clarity on the property owner’s
responsibility.
5
Staff is also proposing new language in Policy No. 1 indicating that
the District will investigate sewer lateral overflows that are the
result of a stoppage within the District’s sewer main to determine
responsibility.
In response to an inquiry from the Committee, staff indicated that
the repair of sewer laterals has always been the responsibility of
the property owner per District policy. Staff indicated that the
policy also discourages property owners from dumping waste that
could clog the sewer collection system. In the last 31 years, staff
could only recall one or two incidents where the property owner
contacted the District about problems within their sewer lateral in
the public right of way. These customers paid for the repairs to
clear their laterals.
It was indicated in response to another inquiry from the Committee
that, within development contracts, the District is only accepting
the sewer main lines within the public right-of-way. The sewer
laterals are not part of the main system. Following the committee
meeting, staff reviewed the District’s development construction
contracts and within paragraph 17 of the contracts, the General
Manager has been authorized by the Board to accept a developer’s
dedication of facilities. That acceptance is made in accordance
with the District’s Code of Ordinances, Policy No. 1, which states
that a sewer lateral is deemed to be the portion of the property
owner's sewer line that connects to the District main, whether in an
easement on the owner's property or in a public right-of-way. As
such, the property owner’s sewer lateral is not considered part of
the public facilities authorized by the Board for acceptance by the
General Manager.
Upon completion of the discussion, the committee supported staff’s
recommendation and presentation to the full board on the consent
calendar.
Attachment B
ORDINANCE NO. 570
AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY
WATER DISTRICT AMENDING SECTION 0 DEFINITIONS, AND SECTION 51 DISTRICT
SEWER SYSTEM 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 0 Definitions, and
Section 51 District Sewer System be amended as per Exhibits 1 and 2
(attached).
NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 0
(Attachment D), and Section 51 (Attachment E) of the Code of Ordinances
shall become effective March 6, 2019.
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the
Otay Water District at a regular meeting duly held this 6th day of March,
2019, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
President
ATTEST:
_____________________________
District Secretary
ATTACHMENT B – EXHIBIT 1
0-1
DIVISION I DISTRICT ADMINISTRATION
CHAPTER 1 GENERAL PROVISIONS
SECTION 0 DEFINITIONS AND MISCELLANEOUS PROVISIONS
0.01 TITLE - REFERENCE TO CODE
This Code shall be known as the "Otay Water District Code of
Ordinances." References herein to the "Code" or the "Ordinances"
shall be deemed to mean said Code of Ordinances.
0.02 DEFINITIONS
The following words as used in this Code shall have the
meanings set forth below unless otherwise apparent in the context
in which they are used:
"Board of Directors" or "Board" means the Board of Directors
of the District.
"Board Member" or "Member of the Board" means a Director of
the Board of Directors.
"Central Area Service Zone" means all land within the bounda-
ries of the area identified as the Central Area Service Zone
as shown on the map on file in the Office of the District Sec-
retary.
"County" means the County of San Diego.
"Customer" means any person, firm, association, partnership,
corporation or governmental agency supplied or entitled to be
supplied with water or sewer service by the District for com-
pensation.
"Developer" means any person, firm, association, partnership,
joint venture or corporation who applies for acceptance by the
District of an addition or change to its water distribution
system or its sewer collection system.
“Development” means the improvement of a parcel or a group of
parcels that are owned by the same or affiliated parent
entity, subsidiary, or Developer.
"District" means the Otay Water District (formerly Otay
Municipal Water District).
ATTACHMENT B – EXHIBIT 1
0-2
“District Sewer” means sewer mains owned and operated by
the District which are tributaries to treatment or
reclamation facilities operated or utilized by the
District, excluding Sewer Laterals.
"Equivalent Dwelling Unit" or "EDU" means a unit of meas-
urement for water service or sewer service. For water
service, one EDU shall be considered to be equivalent to
a ¾-inch meter, and is also typically considered to be
equivalent to 650 gallons per day (gpd) for planning pur-
poses. For sewer service, one EDU shall be 250 gallons
per day (gpd) of residential strength wastewater defined
as having a maximum concentration of 280 milligrams per
liter (mg/l) biochemical oxygen demand (BOD) and 234 mil-
ligrams per liter (mg/l) suspended solids.
"General Manager" means the General Manager of the Dis-
trict or the designated representative.
"Irrigated area" means the area of land (measured in
square feet) which may require supplemental water (pota-
ble or recycled) from the District for the support of
landscaping, but does not include decks, walkways, pat-
ios, tennis courts or any other permanently hard-surfaced
areas maintained within or around landscaped areas.
Trees shall have an irrigated area equal to the area
within the circumference of the canopy (drip line) of the
tree at maturity.
"Landscape or landscaping" means the living plant mate-
rial and organic or inorganic ground covers (mulches)
used for aesthetic, erosion control and/or fire control
purposes as specified by city or county regulations.
"Line Extension" means a water or sewer main constructed
from the termination point of an existing District main
to provide service beyond the existing main.
"Non-permanent Irrigation Service" means temporary water
service furnished to establish and maintain re-vegetated
native plants.
“Facilities” means structures, and water or sewer system
elements that may be located above or below ground level
including, but not limited to, pipelines, system
appurtenances, pump stations and reservoirs.
"Off-Site Facilities" means facilities which must be con-
structed outside the boundaries of a development to bring
utility service from the nearest District facility to the
boundary of the land being developed.
ATTACHMENT B – EXHIBIT 1
0-3
"On-Site Facilities" means facilities which must be con-
structed within the boundaries of a development for util-
ity service within the development or other land to be
served.
"Parcel Map Development" or "Lot-Split" means a real es-
tate development resulting in a division of land into
four or less parcels for which no subdivision map is re-
quired but for which a parcel map is required to be filed
and approved by the applicable local governmental agency.
"Person" means any individual, firm, co-partnership,
joint venture association, corporation, county, city,
municipal corporation or other political subdivision, or
any other group or combination acting as a unit.
"Regional Facility” means those facilities that serve a
regional need and are not required for a specific
Development or Developments as defined in Section 0.02 of
the District’s Code of Ordinances and as demonstrated by
the Development’s Sub Area Master Plan(s). The
District’s Water Facilities Master Plan defines which
Regional Facilities are eligible for reimbursement.
"Sewer Lateral" means a privately-owned pipeline
connecting a property to the District Sewer. the portion
of pipe between the District sewer main and the coupling
at the property owner's point of connection.
“Sewer Maintenance” means the cleaning, servicing,
inspection, repairing and/or replacing of sewer-related
facilities.
The word "shall" means mandatory and the word "may" means
permissive.
"Staff" means the General Manager and other administra-
tive personnel of the District.
"Subdivision" means a real estate development resulting
in a division of land into five or more lots or parcels
for which a subdivision map is required to be filed and
approved by the applicable local governmental agency.
"Utility" or "Utility System" means a water system and/or
sewer system, as applicable.
"Water Lateral" means the portion of pipe between the
District water main and the water meter location.
ATTACHMENT B – EXHIBIT 1
0-4
"Water Meter" means an instrument used for automatic
recording of the quantity of water delivered to a cus-
tomer and the term shall include the fittings, valves and
equipment required for operation of the water meter.
"Water Service" means the furnishing of water to a cus-
tomer through a District-owned water meter or meters.
0.03 EFFECT OF HEADING
The title, division or section headings contained in this
Code shall not be deemed to govern, limit or modify in any
manner the scope, meaning or intent of the provisions of any
section or subsection of this Code.
0.04 NOTICES
A. Whenever a notice is required to be given under this
Code, unless different provisions are specifically made
herein, such notice may be made either by personal delivery
thereof to the person to be notified or by deposit in the U.S.
Mail in a sealed envelope, postage prepaid, addressed to such
person at his last known business or residence address as the
name appears in public records or other records pertaining to
the matter to which the notice is directed. Service by mail
shall be deemed to have been completed at the time of deposit
in the post office.
B. Proof of giving any notice may be made by the cer-
tificate of any officer or employee of the District or by
affidavit of any person over the age of eighteen years, which
shows service in conformity with this Code or other provisions
of law applicable to the subject matter concerned.
0.05 VALIDITY OF CODE
If any section, subsection, sentence, clause, phrase or
portion of this Code is for any reason held to be invalid or
unconstitutional by the decision of any court, such decision
shall not affect the remaining portions of this Code. The
Board of Directors hereby declares that it would have adopted
this Code and each section, subsection, sentence, clause,
phrase or portion thereof, irrespective that any one or more
sections, subsections, clauses, phrases or portions be
declared invalid or unconstitutional.
ATTACHMENT B – EXHIBIT 1
0-5
0.06 TIME LIMIT FOR SEEKING REVIEW OF ADMINISTRATIVE
DECISIONS
Judicial review of any administrative decision of the
District may be had pursuant to Code of Civil Procedure Sec-
tion 1094.5 only if the petition for writ of mandate is filed
not later than the ninetieth day following the date on which
the decision become final.
ATTACHMENT B - EXHIBIT 2
SECTION 51 DISTRICT SEWER SYSTEM
51.01 CONTROL AND OPERATION OF SYSTEM
The District sewer system and appurtenances thereto
shall be under the management and control of the General
Manager. No person, other than an employee or agent of the
District, shall have any right to operate any part of a
District sewer system. As provided in Division IV, any
person who tampers or interferes with the Districts systems
or facilities, or causes or permits any such act, shall be
responsible for any injury or damage caused thereby or
resulting therefrom.
51.02 CONNECTIONS AND DISCONNECTIONS TO SEWER SYSTEM
Connection to and disconnection from a District sewer
main shall be made only by District employees. Connection
to and disconnection from a District sewer lateral shall be
made by the customer subject to inspection and approval of
the District.
51.03 INSPECTION OF CUSTOMER PREMISES
Authorized District personnel shall have unrestricted
access at reasonable hours to all premises served by
District sewers for inspection and testing purposes, and to
determine whether the customer is complying with the rules,
regulations and ordinances of the District concerning sewer
services.
51.04 (RESERVED)
51.05 PERMIT REVOCATED OR SUSPENDED
The General Manager will give at least five (5) days
notice prior to suspending or revoke a permit, stating the
reason for the proposed action and, if determined to be
reasonable by the General Manager, providing a reasonable
time to correct the violation. Notice shall be given to
the holder of the permit, at the address for such person on
file with the District.
ATTACHMENT C
RESOLUTION NO. 4357
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY
WATER DISTRICT AMENDING POLICY 1 PRIVATE SEWER
LATERALS OF THE DISTRICT’S CODE OF ORDINANCES
WHEREAS, the Otay Water District Board of Directors has been
presented with an amended Policy No. 1 of the District’s Code of
Ordinances for the management of the Otay Water District; and
WHEREAS, the amended Policy No. 1 has been reviewed and
considered by the Board, and it is in the interest of the District to
adopt the amended 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 Policy
No. 1, incorporated herein as Attachment F, is hereby adopted.
PASSED, APPROVED, AND ADOPTED by the Board of Directors of Otay
Water District at a board meeting held this 6th day of March 2019, by
the following vote:
Ayes:
Noes:
Abstain:
Absent:
________________________
President
ATTEST:
____________________________
District Secretary
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
CLEANING OF PRIVATE SEWER LATERALS 01 10/15/84 3/6/19
Page 1 of 2
Purpose.
To establish policy determining that sewer laterals are the
responsibility of property owners and not the District.
Background.
The District operates and maintains District sewer mains which
collect sewage from sewer laterals on privately-owned property. A
sewer lateral is deemed to be the portion of the property owner's
sewer line that connects to the District main, whether in an
easement on the owner's property or in a public right-of-way.
Maintenance of sewer laterals is the responsibility of the owner
of the property that the sewer lateral serves. Maintenance of
District sewer mains and appurtenances, such as manholes, is the
sole responsibility of the District. Frequently stoppage occurs
within privately-owned sewer laterals due to property owner's use
and requests are made to the District to clear the stoppage in the
lateral.
Policy.
The District is responsible for operation and maintenance of the
District Ssewer. mains, which includes cleaning of the mains. The
District has no responsibility for performing sewer maintenance on
cleaning any portion of infrastructure not owned by the District
including, but not limited to, a property owner's sewer lateral or
sewer connection to a building. line or sewer lateral. District
personnel are prohibited from performing sewer maintenance on
cleaning or servicing any such sewer line or lateral without prior
unless otherwise authorized authorization from to do so by the
General Manager. The General Manager may grant such authorization
when it is deemed he deems it to be in the best interest of the
District. to do so. The property owner Charges may be charged
made to the owner for such sewer maintenance service at the
discretion of the General Manager.
The following Sewer Lateral Maintenance Policy is hereby adopted
by the District’s Board of Directors.
1. If a stoppage is determined to be in the District Sewer, the
property owner shall notify the District immediately.
2. If repair/replacement is necessary to restore sewer service to
the sewer lateral, the property owner shall obtain all permits
prior to performing any such repair/replacement, and the
repair/replacement shall be performed in accordance with the
permitting agency’s requirements at the property owner’s sole
expense.
ATTACHMENT C -- EXHIBIT 1
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
CLEANING OF PRIVATE SEWER LATERALS 01 10/15/84 3/6/19
Page 2 of 2
3. If a sewer lateral must be relocated due to the construction of
projects sponsored by the District, the District will bear the
sewer lateral relocation costs. The District will warranty the
relocation of the sewer lateral for one year from the
associated District sponsored project’s acceptance date.
4. If the existing sewer lateral serving the property is not
adequate for the property owner’s needs, because of size,
depth, location or any other factor, the entire cost of any
related corrective work shall be borne by the property owner.
5. A District permit is required for the connection of any sewer
lateral to the District Sewer, or work on the connection point
of any sewer lateral to the District Sewer.
6. Where sewage from a sewer lateral overflows into the street,
the property owner is responsible for immediate abatement of
the overflow condition and remediation of any effects from the
overflow. The cost for such cleaning and for all restoration
work required as a result of an overflow from a sewer lateral
shall be borne by the property owner. In instances where sewer
lateral overflow sewage could reach or enter a storm drain
system or the public right-of-way, and the property owner has
failed to address or abate the overflow condition, the District
may attempt to abate the sewer lateral overflow to prevent
storm water pollution and protect public health. The District
will bill the property owner for all costs associated with
sewer lateral overflow abatement. If it is determined that the
sewer lateral overflow is the result of a stoppage within the
District Sewer, the District will perform an investigation to
determine responsibility for abatement of the overflow
condition and remediation of any effects from the overflow.
ATTACHMENT D
0-1
DIVISION I DISTRICT ADMINISTRATION
CHAPTER 1 GENERAL PROVISIONS
SECTION 0 DEFINITIONS AND MISCELLANEOUS PROVISIONS
0.01 TITLE - REFERENCE TO CODE
This Code shall be known as the "Otay Water District Code of
Ordinances." References herein to the "Code" or the "Ordinances"
shall be deemed to mean said Code of Ordinances.
0.02 DEFINITIONS
The following words as used in this Code shall have the
meanings set forth below unless otherwise apparent in the context
in which they are used:
"Board of Directors" or "Board" means the Board of Directors
of the District.
"Board Member" or "Member of the Board" means a Director of
the Board of Directors.
"Central Area Service Zone" means all land within the bounda-
ries of the area identified as the Central Area Service Zone
as shown on the map on file in the Office of the District Sec-
retary.
"County" means the County of San Diego.
"Customer" means any person, firm, association, partnership,
corporation or governmental agency supplied or entitled to be
supplied with water or sewer service by the District for com-
pensation.
"Developer" means any person, firm, association, partnership,
joint venture or corporation who applies for acceptance by the
District of an addition or change to its water distribution
system or its sewer collection system.
“Development” means the improvement of a parcel or a group of
parcels that are owned by the same or affiliated parent
entity, subsidiary, or Developer.
"District" means the Otay Water District (formerly Otay
Municipal Water District).
ATTACHMENT D
0-2
“District Sewer” means sewer mains owned and operated by
the District which are tributaries to treatment or
reclamation facilities operated or utilized by the
District, excluding Sewer Laterals.
"Equivalent Dwelling Unit" or "EDU" means a unit of meas-
urement for water service or sewer service. For water
service, one EDU shall be considered to be equivalent to
a ¾-inch meter, and is also typically considered to be
equivalent to 650 gallons per day (gpd) for planning pur-
poses. For sewer service, one EDU shall be 250 gallons
per day (gpd) of residential strength wastewater defined
as having a maximum concentration of 280 milligrams per
liter (mg/l) biochemical oxygen demand (BOD) and 234 mil-
ligrams per liter (mg/l) suspended solids.
"General Manager" means the General Manager of the Dis-
trict or the designated representative.
"Irrigated area" means the area of land (measured in
square feet) which may require supplemental water (pota-
ble or recycled) from the District for the support of
landscaping, but does not include decks, walkways, pat-
ios, tennis courts or any other permanently hard-surfaced
areas maintained within or around landscaped areas.
Trees shall have an irrigated area equal to the area
within the circumference of the canopy (drip line) of the
tree at maturity.
"Landscape or landscaping" means the living plant mate-
rial and organic or inorganic ground covers (mulches)
used for aesthetic, erosion control and/or fire control
purposes as specified by city or county regulations.
"Line Extension" means a water or sewer main constructed
from the termination point of an existing District main
to provide service beyond the existing main.
"Non-permanent Irrigation Service" means temporary water
service furnished to establish and maintain re-vegetated
native plants.
“Facilities” means structures, and water or sewer system
elements that may be located above or below ground level
including, but not limited to, pipelines, system
appurtenances, pump stations and reservoirs.
"Off-Site Facilities" means facilities which must be con-
structed outside the boundaries of a development to bring
utility service from the nearest District facility to the
boundary of the land being developed.
ATTACHMENT D
0-3
"On-Site Facilities" means facilities which must be con-
structed within the boundaries of a development for util-
ity service within the development or other land to be
served.
"Parcel Map Development" or "Lot-Split" means a real es-
tate development resulting in a division of land into
four or less parcels for which no subdivision map is re-
quired but for which a parcel map is required to be filed
and approved by the applicable local governmental agency.
"Person" means any individual, firm, co-partnership,
joint venture association, corporation, county, city,
municipal corporation or other political subdivision, or
any other group or combination acting as a unit.
"Regional Facility” means those facilities that serve a
regional need and are not required for a specific
Development or Developments as defined in Section 0.02 of
the District’s Code of Ordinances and as demonstrated by
the Development’s Sub Area Master Plan(s). The
District’s Water Facilities Master Plan defines which
Regional Facilities are eligible for reimbursement.
"Sewer Lateral" means a privately-owned pipeline
connecting a property to the District Sewer.
“Sewer Maintenance” means the cleaning, servicing,
inspection, repairing and/or replacing of sewer-related
facilities.
The word "shall" means mandatory and the word "may" means
permissive.
"Staff" means the General Manager and other administra-
tive personnel of the District.
"Subdivision" means a real estate development resulting
in a division of land into five or more lots or parcels
for which a subdivision map is required to be filed and
approved by the applicable local governmental agency.
"Utility" or "Utility System" means a water system and/or
sewer system, as applicable.
"Water Lateral" means the portion of pipe between the
District water main and the water meter location.
"Water Meter" means an instrument used for automatic
recording of the quantity of water delivered to a cus-
ATTACHMENT D
0-4
tomer and the term shall include the fittings, valves and
equipment required for operation of the water meter.
"Water Service" means the furnishing of water to a cus-
tomer through a District-owned water meter or meters.
0.03 EFFECT OF HEADING
The title, division or section headings contained in this
Code shall not be deemed to govern, limit or modify in any
manner the scope, meaning or intent of the provisions of any
section or subsection of this Code.
0.04 NOTICES
A. Whenever a notice is required to be given under this
Code, unless different provisions are specifically made
herein, such notice may be made either by personal delivery
thereof to the person to be notified or by deposit in the U.S.
Mail in a sealed envelope, postage prepaid, addressed to such
person at his last known business or residence address as the
name appears in public records or other records pertaining to
the matter to which the notice is directed. Service by mail
shall be deemed to have been completed at the time of deposit
in the post office.
B. Proof of giving any notice may be made by the cer-
tificate of any officer or employee of the District or by
affidavit of any person over the age of eighteen years, which
shows service in conformity with this Code or other provisions
of law applicable to the subject matter concerned.
0.05 VALIDITY OF CODE
If any section, subsection, sentence, clause, phrase or
portion of this Code is for any reason held to be invalid or
unconstitutional by the decision of any court, such decision
shall not affect the remaining portions of this Code. The
Board of Directors hereby declares that it would have adopted
this Code and each section, subsection, sentence, clause,
phrase or portion thereof, irrespective that any one or more
sections, subsections, clauses, phrases or portions be
declared invalid or unconstitutional.
ATTACHMENT D
0-5
0.06 TIME LIMIT FOR SEEKING REVIEW OF ADMINISTRATIVE
DECISIONS
Judicial review of any administrative decision of the
District may be had pursuant to Code of Civil Procedure Sec-
tion 1094.5 only if the petition for writ of mandate is filed
not later than the ninetieth day following the date on which
the decision become final.
ATTACHMENT E
SECTION 51 DISTRICT SEWER SYSTEM
51.01 CONTROL AND OPERATION OF SYSTEM
The District sewer system and appurtenances thereto
shall be under the management and control of the General
Manager. No person, other than an employee or agent of the
District, shall have any right to operate any part of a
District sewer system. As provided in Division IV, any
person who tampers or interferes with the Districts systems
or facilities, or causes or permits any such act, shall be
responsible for any injury or damage caused thereby or
resulting therefrom.
51.02 CONNECTIONS AND DISCONNECTIONS TO SEWER SYSTEM
Connection to and disconnection from a District sewer
main shall be made only by District employees. Connection
to and disconnection from a sewer lateral shall be made by
the customer subject to inspection and approval of the
District.
51.03 INSPECTION OF CUSTOMER PREMISES
Authorized District personnel shall have unrestricted
access at reasonable hours to all premises served by
District sewers for inspection and testing purposes, and to
determine whether the customer is complying with the rules,
regulations and ordinances of the District concerning sewer
services.
51.04 (RESERVED)
51.05 PERMIT REVOCATED OR SUSPENDED
The General Manager will give at least five (5) days
notice prior to suspending or revoke a permit, stating the
reason for the proposed action and, if determined to be
reasonable by the General Manager, providing a reasonable
time to correct the violation. Notice shall be given to
the holder of the permit, at the address for such person on
file with the District.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PRIVATE SEWER LATERALS 01 10/15/84 3/6/19
Page 1 of 2
Purpose.
To establish policy determining that sewer laterals are the
responsibility of property owners and not the District.
Background.
The District operates and maintains District sewer mains which
collect sewage from sewer laterals on privately-owned property. A
sewer lateral is the portion of the property owner's sewer line
that connects to the District main, whether in an easement on the
owner's property or in a public right-of-way. Maintenance of
sewer laterals is the responsibility of the owner of the property
that the sewer lateral serves. Maintenance of District sewer mains
and appurtenances, such as manholes, is the sole responsibility of
the District.
Policy.
The District is responsible for operation and maintenance of the
District Sewer. The District has no responsibility for performing
sewer maintenance on any portion of infrastructure not owned by
the District including, but not limited to, a property owner's
sewer lateral or sewer connection to a building. District
personnel are prohibited from performing sewer maintenance on any
sewer lateral without prior authorization from the General
Manager. The General Manager may grant such authorization when it
is deemed to be in the best interest of the District. The
property owner may be charged for such sewer maintenance at the
discretion of the General Manager.
The following Sewer Lateral Maintenance Policy is hereby adopted
by the District’s Board of Directors.
1. If a stoppage is determined to be in the District Sewer, the
property owner shall notify the District immediately.
2. If repair/replacement is necessary to restore sewer service
to the sewer lateral, the property owner shall obtain all permits
prior to performing any such repair/replacement, and the
repair/replacement shall be performed in accordance with the
permitting agency’s requirements at the property owner’s sole
expense.
3. If a sewer lateral must be relocated due to the construction
of projects sponsored by the District, the District will bear the
sewer lateral relocation costs. The District will warranty the
relocation of the sewer lateral for one year from the associated
District sponsored project’s acceptance date.
ATTACHMENT F
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PRIVATE SEWER LATERALS 01 10/15/84 3/6/19
Page 2 of 2
4. If the existing sewer lateral serving the property is not
adequate for the property owner’s needs, because of size, depth,
location or any other factor, the entire cost of any related
corrective work shall be borne by the property owner.
5. A District permit is required for the connection of any sewer
lateral to the District Sewer, or work on the connection point of
any sewer lateral to the District Sewer.
6. Where sewage from a sewer lateral overflows into the street,
the property owner is responsible for immediate abatement of the
overflow condition and remediation of any effects from the
overflow. The cost for such cleaning and for all restoration work
required as a result of an overflow from a sewer lateral shall be
borne by the property owner. In instances where sewer lateral
overflow sewage could reach or enter a storm drain system or the
public right-of-way, and the property owner has failed to address
or abate the overflow condition, the District may attempt to abate
the sewer lateral overflow to prevent storm water pollution and
protect public health. The District will bill the property owner
for all costs associated with sewer lateral overflow abatement. If
it is determined that the sewer lateral overflow is the result of
a stoppage within the District Sewer, the District will perform an
investigation to determine responsibility for abatement of the
overflow condition and remediation of any effects from the
overflow.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: March 6, 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: Continue the Banking Services with Union Bank
GENERAL MANAGER’S RECOMMENDATION:
That the Board approve staff’s recommendation to continue the banking
services with Union Bank. Staff will perform the next banking
services review in 6 years and a pricing review in 3 years.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To evaluate the cost of banking services to ensure the District’s
banking fees are competitive with current market rates.
ANALYSIS:
The Board has requested that staff perform a review of banking
services on a recurring basis, considering the changing economy,
technological advances and business competition within the banking
and financial industries. Union Bank has been the primary bank of
the District for its operating needs since 2006 and to ensure we are
receiving competitive pricing, staff has performed banking service
reviews on March 5, 2008, February 3, 2010, and March 5, 2015 and in
2
all instances recommended to the Board that the District maintain its
banking services relationship with Union Bank based on their
competitive pricing, range of banking services, customer service and
overall highly satisfactory performance.
This report is based on the most recent review of the District’s
banking services and fees as of January 2019.
Staff is recommending the District continue to utilize Union Bank for
its banking services. Based on the analysis performed, Union Bank is
the best value and least expensive provider when considering multiple
factors including: annual banking fees, internal costs associated
with changing banks, customer disruption and potential service risks
associated with a banking change.
Staff will perform the next banking services review in 6 years and a
pricing review in 3 years. This is a change from our customary
practice of performing banking service reviews every 4 years and a
pricing review every 2 years. Staff is making this recommendation
based on Union Bank’s competitive pricing, performance and agreeing
to fix its rates for a 6-year period. If events were to occur that
would affect the cost or services provided to the District, staff has
the option to perform a banking services review at any time.
QUOTATION PROCESS: Staff requested quotes from six banking
institutions. The table below summarizes the institutions that the
District sought quotes from and a brief statement regarding each
institution’s response:
Institution Response
Union Bank Complete response and quote was
received by the District.
J.P. Morgan Chase Complete response and quote was
received by the District.
Wells Fargo Bank Complete response and quote was
received by the District.
U.S. Bank We received a letter explaining
they had timing issues and were
unable to respond to our RFQ
Solicitation.
Bank of the West Bank of the West’s policy states
they cannot respond to a request
if a particular service is not
offered by the bank. Bank of the
West does not offer bill
concentration services;
3
therefore, they were unable to
respond to the request for quote.
Bank of America Did not respond to the request
for quote.
Staff performed the following evaluations of services based on the
responses received from Union Bank, J.P. Morgan Chase and Wells Fargo
Bank.
AVAILABLE SERVICES: Staff performed a review of banking services
offered by each institution to ensure each candidate was able to
meet, at a minimum, the District’s current servicing needs. All of
the institutions responding to the District’s request offer services
consistent with those currently being performed by Union Bank. Each
institution provides a full range of banking services including:
account reconciliation, account analysis, lockbox, bill
concentration, checking, web services, wire transfers, availability
of funds, payroll, payroll tax, check fraud, daylight overdraft
protection, and debt services.
BANKING FACILITIES: Union Bank, J.P. Morgan Chase and Wells Fargo
have physical locations within the District’s boundaries.
CURRENT STAFF SATISFACTION: Staff who work with Union Bank on a
repetitive basis were asked if they were dissatisfied or had any
unresolved issues. This included Customer Service, Payroll, Accounts
Payable, Information Technology, and Investment personnel. Responses
were positive as any issues were minor in scope and Union Bank has
been quick to respond and remediate issues as they arise. Staff is
also very pleased with Union Bank’s services and personnel contacts.
BANKING FEES: Staff performed an analysis based on each
institution’s quote to determine their estimated annual fees using a
typical set of service levels.
Institution
Overall Estimated Annual Fees
Union Bank $70,500
J.P. Morgan Chase $71,000
Wells Fargo Bank $87,700
From the evaluation, staff found that service fees overall are
competitively priced and the banks offer similar services.
4
Union Bank fees were significantly lower than Wells Fargo Bank and
only slightly lower than J.P. Morgan Chase.
The proposed pricing from Union Bank shall be fixed through June 30,
2025.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The District’s ongoing banking fees would be similar to the current
annual fees. Based on the analysis performed, staff estimates the
total annual banking service fees from Union Bank to be $70,500.
Currently, Union Bank service fees are estimated to be within the
Fiscal Year 2019 budget.
STRATEGIC GOAL:
The District ensures its continue financial health through long-term
financial planning, formalized financial policies, enhanced budget
controls, fair pricing, debt planning, and improved financial
reporting.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action
ATTACHMENT A
SUBJECT/PROJECT:
Continue the Banking Services with Union Bank
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this
item at a meeting held on February 19, 2019 and the following comments
were made:
Staff is recommending that the District continue banking services
with Union Bank.
Staff reviewed information in the staff report.
To initiate the pricing comparison, staff created a comprehensive
list of all banking services utilized by the District including
average monthly transactional volume.
The list of services was then issued to 6 banking institutions
requesting price quotations to determine the competitiveness and
reasonability of our current rate structure provided by Union Bank.
These banks were selected based upon their organizational size,
operational stability, location and available services.
Three (3) submitted complete responses: Union Bank, JP Morgan Chase
and Wells Fargo. Union Bank fees were significantly lower than
Wells Fargo Bank and only slightly lower than J.P. Morgan Chase.
Overall, Union Bank fees are reasonable and competitive and Union
Bank agreed to not increase their pricing for 6 years. The service
fees will remain fixed through June 30, 2025.
In addition to pricing, staff also considered the overall
satisfaction with Union Bank’s customer service and location of
banking facilities (please reference page 3 of the staff report).
The next banking services review will be performed in 6 years and a
pricing review will be performed in 3 years. This is a change from
our customary practice of performing banking service reviews every 4
years and a pricing review every 2 years. Staff is making this
recommendation based on Union Bank’s competitive pricing,
performance and agreeing to keep its service fees rates fixed for a
6-year period.
Upon completion of the discussion, the committee supported staff’s
recommendation and presentation to the full board on the consent
calendar.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: March 6, 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: Impose a $5,000 Fine to Whiting Turner Construction Company
for an Illegal Connection to a Fire Hydrant and Water Theft
GENERAL MANAGER’S RECOMMENDATION:
That the Board uphold staff’s decision to impose a $5,000 fine to
Whiting Turner Construction Company for an illegal connection to a
fire hydrant and water theft.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To ensure the District continues to protect the water supply and
applies violations consistent with the Code of Ordinances.
ANALYSIS:
On November 30, 2018, Otay Inspector Jeff Edwards encountered a hose
illegally connected to a fire hydrant at the intersection of Stylus
Street and Montage. It was determined one of Whiting Turner
Construction Company’s subcontractors, Farley Interlocking Pavers,
had hooked the hose up to the hydrant. Mr. Edwards immediately
disconnected the hose and reported the situation to Sean Harmon of
Whiting Turner. This was the third time that a subcontractor of
2
Whiting Turner had hooked up to a fire hydrant without using a
temporary meter. The first incident occurred on October 15th when
Farley Interlocking Pavers hooked up to a hydrant on lot 3 of the
Milennia project and the second occurred on October 18th when Apptek
Stucco hooked up to a hydrant on lot 2. Mr. Edwards spoke with both
Sean Harmon and Jonathan Mendez from Whiting Turner about both of
these incidents.
The District’s Code of Ordinances Section 24.04 states “No person may
withdraw water from any fire hydrant, blow-off valve, or other
connection to the facilities of the District, unless an agreement has
been entered into with this District for such withdrawal. Such
agreement shall provide that all withdrawals shall be made through a
meter.” A temporary water meter was installed for Whiting Turner on
April 30, 2018. Per the Temporary Water Meter Uses and Procedures
agreement that Whiting Turner’s agent, Wayne Toups, signed on April
10, 2018, Whiting Turner acknowledged they are subject to any fines
associated with an unauthorized connection made by the company’s
subcontractors or independent contractors.
Section 71A of the District’s Code of Ordinances prohibits
“installing or benefiting from any unauthorized connection to any
District system.” Section 72.03D of the District’s Code of Ordinances
states that illegal connections or other violations relating to fire
service are subject to a fine, at the option of the District. Section
72.06 C.2 specifies that a Type II fine is assessed on “any violation
that has the potential to endanger the health or safety, including,
but not limited to, unauthorized or illegal connections, meter
tampering, water theft, or knowingly filing a false statement or
report required by a local health officer.” A Type II fine carries a
maximum penalty of $5,000 for each day the violation continues.
Pursuant to Section 72 of the District’s Code of Ordinances, the
District assessed a $5,000 fine to Whiting Turner Construction
Company on December 28, 2018.
Whiting Turner has authorized Farley Interlocking Pavers to appeal
this fine on their behalf. Charissa Farley of Farley Interlocking
Pavers, appeared at the Board Meeting on February 6, 2019 to verbally
appeal the fine.
FISCAL IMPACT:
The fiscal impact is limited to the amount of the fine assessed.
3
STRATEGIC GOAL:
Enforce the District’s Code of Ordinances and protect the public
water supply.
LEGAL IMPACT:
None.
Attachments: A) Committee Action Form
B) Temporary Water Meter Uses and Procedures Agreement
C) Three Photos of the Illegal Connections
D) Code Section 24
E) Code Section 71
F) Code Section 72
ATTACHMENT A
SUBJECT/PROJECT:
Impose a $5,000 Fine to Whiting Turner Construction Company
for an Illegal Connection to a Fire Hydrant and Water Theft
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this
item at a meeting held on February 19, 2019 and the following comments
were made:
Staff is requesting that the Board impose a $5,000 fine to Whiting
Turner Construction Company for an illegal connection to a fire
hydrant and water theft.
Staff reviewed information in the staff report.
It was indicated the $5,000 fine is in-line with past fines imposed
on other contractors for unauthorized connections to a District fire
hydrant. It is a Type II fine that is assessed on any violation
that has a potential to endanger the public’s health or safety
through, including, but not limited to, unauthorized or illegal
connections, meter tampering, water theft, or knowingly filing a
false statement or report required by a local health officer.
It was discussed that Whiting Turner had three unauthorized
connection infractions which were committed by their subcontractors.
The first and third infractions were committed by Farley
Interlocking Pavers.
In response to an inquiry from the Committee, staff indicated that
construction meters are permitted annually and can be re-permitted
via email. The District has issued approximately 170 construction
meters to date. The District’s cost for a construction meter is
approximately $1000.
The Committee requested that staff provide a summary of the number
of penalties the District has issued due to unauthorized connections
(please see attached Exhibit 1). The Committee also suggested that
the District bring this matter to the attention of the Associated
General Contractors of America.
There was discussion by the Committee if a $5,000 penalty is a large
enough fine to deter unauthorized connections. The District might
consider increasing subsequent fines to the same
customer/contractor. The Committee also wanted to explore other
actions the District might take to deter unauthorized connections.
There was also discussion on whether the District could pass on
fines assessed by regulatory agencies that might fine the District
for unauthorized actions of the public, staff researched and
confirmed with legal counsel that per Section 72.01 subd. B, C and D
the District has the authority to assess and collect any fines for
violations imposed by a 3rd party regulatory agency.
It was indicated in response to an inquiry from the Committee, that
the District does not charge the City of Chula Vista for water they
use from the fire hydrants for firefighting as it is part of the
services the District provides for public safety. Water used for
firefighting is included in the water loss calculation and is
included in the budget as a potential cost. The City forwards to
the District, after each fire incident, an estimate of how much
water they utilized for firefighting.
Upon completion of the discussion, the committee supported staff’s
recommendation and presentation to the full board on the consent
calendar.
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SECTION 24 CERTAIN SERVICE LIMITATIONS
24.01 NON-SERVICE AREAS
A. Except as provided in Section 25 of this Code, no customer may use or
permit the use of water:
1. for any property other than that described in the application for service;
2. for any property outside of the boundaries of an improvement district; or
3. for property outside the boundaries of the District.
B. Water service shall not be supplied to more than one parcel through one
meter, except for master meters when approved by the General Manager. A "parcel"
shall be deemed to mean land or property identified as a parcel by the County Tax
Assessor.
24.02 (RESERVED)
24.03 (RESERVED)
24.04 FIRE HYDRANTS AND CERTAIN OTHER FACILITIES
A. No person may withdraw water from any fire hydrant, blow-off valve, or
other connection to the facilities of this District, unless an agreement has been entered
into with the District for such withdrawal. Such agreement shall provide that all
withdrawals shall be made through a meter.
B. The provisions of paragraph A shall not apply to withdrawals of water
made from fire hydrants or other facilities for fire department purposes or to withdrawals
made by other governmental agencies with prior District approval.
Attachment D
71-1 Adopted 2/03/2010
SECTION 71. VIOLATIONS; PROHIBITED ACTIVITIES
In addition to the prohibited practices described in any other sections of this Code
or by law, all persons and entities are specifically prohibited from doing, or aiding or
abetting any person in, any of the following:
A. Installing or benefiting from any unauthorized connection to any District
system;
B. Refusing or failing to pay for services, in full, when bills are due;
C. Entering, improving, purchasing, trading, selling, borrowing, using or
otherwise benefiting from any District property or service without authorization from the
District or without following authorized procedure;
D. Vandalizing, tampering with, or threatening any portion of the District
systems, services, facilities or property, including but not limited to taking any action to
prevent any meter or other equipment device from accurately performing its function;
E. Failing or refusing to install, maintain in good repair and working
condition, or test any portion of any facilities required by the District in connection with a
service, including any safety or prevention device or any measuring device;
F. Knowingly permitting leaks or other wastes of water or recycled water or
leaks or spills of sewage or other discharge;
G. Preventing District staff from accessing any facilities connected to a
service, including but not limited to meters located on private property, or in any manner
threatening or interfering with any District staff performing his or her duties;
H. Using or allowing the use of service for more than one parcel through one
meter (except for master meters approved by the General Manager under Section 24.01)
or supplying, reselling, using or permitting the use of any service by any other parcel,
except as permitted under Section 27.04 of this Code or in writing by the District;
I. Using or permitting the use of any District service for property outside the
boundaries of an improvement district or not subject to District taxes, without prior
written consent of the District;
J. Using or attempting to use or connect to any fire hydrant within the
District without proper authorization as required by Section 24.04 of this Code; or
K. Violating or refusing to comply with any condition of service under this
Code or with any law or regulation applicable to the use of any such service; including
violating any conditions of any permit required for service or to regulate waste, such as a
waste discharge permit under Sections 26 or 52 of the Code, or failing or refusing to
obtain, maintain or comply with any required permit.
Attachment E
SECTION 72 PENALTIES AND DAMAGES
72.01 GENERAL
A. User and Owner Responsibility. Each person receiving service, or that
owns a property that receives service, agrees to pay the District any applicable fees and
charges. Such persons are also responsible for all costs and damages in connection with
any violation of this Code relating to their service.
B. District Not Liable. The District shall bear no liability for any cost,
damage, claim or expense incurred by District or any responsible party or third party on
behalf of the District arising from or related to any violation, including, but not limited to,
costs, damages, claims or expenses arising from any corrective action of the District.
Such corrective actions include, but are not limited to, the removal, confiscation,
disposition or use of any device, equipment, improvement or material encroaching on any
District property or used in connection with any other violation.
C. District Obligation to Collect Damages. Pursuant to Government Code
Section 53069.6, the District shall take all practical and reasonable steps, including
appropriate legal action, if necessary, to recover civil damages for the negligent, willful,
or unlawful damaging or taking of property of the District.
D. Assessment of Damages. Actual damages resulting from any violation,
including late payment or failure or refusal to pay for service and any interest thereon,
may be assessed and collected as part of a customer’s monthly bill to the extent allowed
by law. The District will separately invoice any actual damages not assessed on a
monthly bill, including any damages assessed against any responsible person who is not a
customer.
E. Unpaid or Partially Paid Bills. Bills issued by the District are due in full
as provided in such bills. Failure to timely pay bills in full may lead to a reduction,
suspension, or termination of service, as provided in Section 72.02(B), below, in Section
34 of this Code, or pursuant to other provisions of this Code or applicable law. In
addition, if bills remain unpaid, in full or in part, the District may lien the delinquent real
property and may assess damages and penalties established by District or otherwise
authorized by law.
72.02 VIOLATIONS AND GENERAL PENALTIES FOR VIOLATIONS
A. Notice of Violation. Notice and a reasonable period of time to
correct a violation will be given prior to the termination, reduction or suspension of
service or the imposition of any administrative fine. However, the District may, without
notice, correct any condition or violation that endangers the health or safety or impairs
any District service, facility or property or is otherwise determined by the District to
require immediate action.
Attachment F
1. Investigative Procedures. If a possible
violation is identified, observed or reported, the District will contact the allegedly
responsible party to investigate. If the violation is in fact occurring, District staff will
issue a notice of violation or otherwise inform the responsible party that corrective
actions must be taken within a period of time deemed reasonable by the District, taking
into consideration the nature of the violation and the potential damage that can arise if the
violation continues.
2. Content of Notice of Violation. The notice will describe the
violation, indicate the actions that must be taken, and indicate the date by which those
actions must be taken. Unless immediate action is required, the notice will provide a
reasonable time for the violation to be corrected. The notice will also specify the amount
of any delinquency, actual damages or other amounts due the District, if any, and the
telephone number of a representative of the District who can provide additional
information.
3. No Notice Required; District Action. If the District determines
that immediate or prompt correction of the violation is necessary to prevent waste or to
maintain the integrity of the water supply, systems or facilities of the District, or for the
immediate protection of the health, safety or welfare of persons or property, or for any
other compelling reason, the District will take any action deemed necessary (including
suspension, reduction or termination of service; locking or removal of meters; or repairs
of any improvements) and a notice will be left at the affected parcel specifying any
further corrective actions required. Any costs incurred by District and any applicable
fines will be the responsibility of the responsible party.
4. Notice; Failure to Comply. The responsible party will be given an
opportunity to correct the violation and to provide verbal, written and pictorial
exculpatory evidence. If such evidence does not exonerate the responsible parties and if
the violation(s) are not corrected to the satisfaction of the District within the time
provided, the District may assess cost and penalties, administrative fines and may take
any other action or pursue any other remedy available. Furthermore, if the violation
concerns any service requirement or facility, or to prevent waste or protect the integrity
of the system or the health and safety of the public, the District may suspend, reduce or
terminate service to the extent permitted by law.
B. Service Termination, Suspension or Reduction; Removing or
Locking Meters. Service may be reduced, suspended or terminated for failure to pay for
service or in connection with a violation of this Code or applicable law. Termination,
suspension or reduction of service will proceed as follows:
1. Notice Prior to Termination, Suspension or Reduction of Service.
Except as provided in Paragraph A, above, or in other provisions of this Code or
applicable law, not less than ten (10) days notice will be given prior to the date service is
reduced, suspended or terminated; provided that, where service is terminated due to
failure to comply with the terms of an amortization agreement, under Section 34 of this
Code, only forty-eight (48) hours prior notice is required. The notice will be delivered to
the affected parcel and, if the owner of record does not reside in the
affected parcel, a copy of the notice will be forwarded to the owner’s address on record
with the assessor’s office via any available means, such as personal delivery, certified
mail return receipt requested, email, fax or fed-ex.
2. Termination for failure to pay for service. The District may
discontinue any or all service due to failure to pay the whole or any part of a bill issued
by the District. In connection with termination of water service, the provisions of Section
60373 of the Government Code, or any other appropriate provision of law, or as set forth
in Section 34 of this Code of Ordinance, will be followed. In connection with sewer,
Section 71672 of the California Water Code or other applicable requirements will be
followed.
C. Reconnection or Reinstatement of Service, Unlocking or
Reinstalling Meters. If service is reduced, suspended or terminated for any reason, each
of the following conditions applicable to the situation must be satisfied or arrangements
satisfactory to the General Manager or a designee must be made before service is
reinstated:
1. Outstanding amounts for service bills, including any service
charges for benefits derived from the violation, must be paid;
2. All required deposits (including any security deposits), actual
damages, fines, costs, charges and penalties must be paid;
3. Any amounts due for the removal, locking, servicing, repair or
replacement of meters or other facilities required for service must be paid at the rates in
effect at the time of reinstatement, as set forth on Appendix A to this Code or other
schedule of fees then in effect;
4. All violations and related damages or conditions must have been
corrected and/or repaired and evidence satisfactory to the District to that effect and
demonstrating that it is safe to reinstate service, must have been provided to and
approved by the District; and
5. If the service was originally in the name of a tenant, the District
may require the owner of the parcel to request the service account under his or her name
and responsibility.
D. Owner Responsibility for Account. In addition to owners’
obligations under subsection (A) of section 72.01 and subsection (C)(5) of Section 72.02,
above, and any other remedies provided by this Code or by applicable law, Owners may
be required to deliver to the District a form of acknowledgement or authorization for
service to a tenant. In addition, if (i) a tenant engages in any violation, (ii) if the District
has reduced, suspended or terminated any service to a tenant three (3) times within any
twenty-four (24) month period or (iii) the tenant has failed or refuses to comply with the
terms of payment arrangements with the District four (4) times, the District reserves the
right to demand that the property owner take responsibility for services to the tenant-
occupied parcel. The General Manager or a designee shall develop
procedures to implement these requirements.
E. Right of Access to Customer’s Premises; Interference. If any
person refuses to consent to an investigation of a possible violation, or prevents or refuses
to allow access to District staff or authorized representatives to any premises or facility
during an investigation or in connection with any termination, reduction or suspension of
service, the District may seek an injunction or a warrant, as provided in Section 71601 of
the Water Code.
F. Other Remedies. In addition to the actions contemplated in this
Section, the District may seek other remedies authorized or required by any applicable
law, including imposing an administrative fine, pursuant to Section 72.06, or pursuing
other available civil or criminal remedies.
72.03 CERTAIN SPECIFIC OPERATIONAL VIOLATIONS
A. Unauthorized Connections. The District shall bear no cost or liability for
any unauthorized connection. In addition to other remedies, any unauthorized connection
is subject to a Type II fine, pursuant to Section 72.06 depending upon the severity,
duration and reoccurrence of the violation and any other factors the District may
reasonably take into consideration.., Further, the District may demand that the
unauthorized connection be immediately disconnected. In the alternative, if the customer
refuses to take immediate action, or if immediate actions is necessary as set forth in
Section 72.02(A)(3), above, the District may immediately disconnect, remove, confiscate,
destroy or dispose of any parts installed or used for the unauthorized connection, all at the
expense of the customer and any other responsible party. To the extent allowed by law,
the District may also, immediately or as otherwise deemed advisable by the District,
terminate service to any parcel and any person that allows, uses or benefits from such
unauthorized connection.
B. Water waste. No customer shall knowingly permit leaks or other wastes
of water, including, but not limited to, allowing runoff on any portion of his or her
property, engaging in non-permitted uses of water, or failing to take corrective action
after notice of any leaks or water waste is given. If the District determines that water
waste is occurring, the District will:
1. Notify the customer that they are in violation of the District’s Code
of Ordinances.
2. Notwithstanding the foregoing, the District may, without prior
notice, repair or replace any District controlled facilities at the cost of the person
identified as the responsible party, if any.
3. If the water waste is due to a condition within the customer’s
property or facilities, the District may (i) require the customer to repair or replace the
affected facilities, immediately or within a reasonable time, depending on the situation; or
(ii) if necessary to prevent further waste, adjust, lock or remove the meter. If any repair
or replacement required is not completed in a timely manner, the
District may perform the repair or replacement at the cost of the customer or may
terminate service without further notice.
C. Meter Tampering. In addition to other remedies, tampering is subject to a
Type II fine pursuant to Section 72.06 depending upon the severity, duration and
reoccurrence of the violation and any other factors the District may reasonably take into
consideration. Additionally, tampering may be prosecuted as a crime under Section 498
of the California Penal Code, as set forth in Section 73.01 of this Code.
D. Fire Service Violation. Fire service is subject to compliance with all
provisions of this Code and the law concerning water service, and failure to comply with
such provisions may result in the reduction, suspension, termination or disconnection of
water service for fire protection, without any liability to District. Furthermore, illegal
connections or other violations relating to fire service are subject to either a Type I or
Type II fine, at the option of the District, and may be prosecuted as crimes.
E. Backflow prevention, screens and other safety devices. If service
requirements include the installation, testing and maintenance of backflow prevention
devices (Section 23.04 of this Code), screens or other safety operational items, in addition
to, or in lieu of, other remedies provided herein, the District may apply any of the
remedies under Section VI and VII of the District’s Ordinance No. 386, as amended or
renumbered. Furthermore, violations relating to backflow testing may be prosecuted as
set forth in Section 73.01 of this Code. Violations of backflow requirements or
knowingly filing a false statement or report required by a local health officer are subject
to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06,
below.
F. Violation Concerning Recycled Water Service. In addition to any fine,
revocation, suspension or penalty imposed under Section 26 in connection with any
violation of said Section, including permit suspension or revocation under Section
26.07.C, the District may (i) suspend or terminate water and or sewer service to the
property, the owner and/or the operator; (ii) require payment by the owner for any
damage to the District facilities, reimbursement to District of costs and expenses, or fines
imposed on the District in connection with such violation; or (iii) prosecute the
responsible party under any applicable provision of this Code, the Water Code or the
Penal Code. Additionally, any violation concerning recycled water service is subject to
either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06,
below.
G. Violation Concerning Sewer Service. In addition to any other remedy,
fine or penalty provided by this Code or applicable law, failure to comply with any
requirements of sewer service, including requirements for the preservation of public
health, safety and welfare and including, but not limited to, the requirements established
under Article II, Chapter 2, Sections 50 to 56.04 of this Code, as hereafter amended or as
supplemented by other District Rules and Regulations for Sewer Service, the California
Health and Safety Code, the California Code of Regulations, Titles 17 and 22, and Water
Agency Standards. Furthermore, may be prosecuted as set forth in
Section 73.01 of this Code. Additionally, any violation concerning sewer service is
subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06,
below.
H. Theft, Fraud, or Misappropriation. In addition to any other remedy, fine
or penalty provided by this Code or applicable law, any violation involving theft, fraud or
misappropriation of District water, services, or property is subject to a Type I or Type II
fine, at the option of the District, pursuant to Section 72.06, below.
72.04 VIOLATIONS OF CONSERVATION OR OTHER WATER USE
RESTRICTION PROVISIONS
The District has established and published conservation measures set forth in
Section 39 of the Code. Commencing with declared Level 2 conditions, the District may
assess water shortage rates and charges previously adopted. In addition, after notice of
the declared water shortage level is given as required by law, any person who uses,
causes to be used, or permits the use of water in violation of such requirements (other
than a person who qualifies for an applicable exemption, if any) may be assessed
damages, penalties and fines.
A. Additional provisions concerning use restriction violations. In addition to
payment of actual damages, the following may apply to a violation of any water
conservation or water use restriction measure:
1. A change on the account holder shall not cause the account to
revert to pre-violation status unless the new account holder provides evidence that
it is not related to the violator and had no responsibility for the prior account.
2. The District may reduce, suspend or terminate service to any
parcel immediately and without further notice if the violation involves or results
in water waste, as set for in Section 72.03(B), above.
3. Willful violations of mandatory conservation measures described
in Section 39 of this Code may be enforced by terminating service to the property
at which the violation occurs, as provided by Section 356 of the California Water
Code.
B. Prosecution for violations of conservation measures. Pursuant to Section
377 and 71644 of the California Water Code, each violation of the District’s
Conservation Ordinance, set fort in Section 39 of this Code, may be prosecuted as a
misdemeanor, punishable by imprisonment in the County jail for no more than thirty (30)
days or by a fine, as set forth in subsection (C), below.
C. Assessment of fines for violations of conservation or water use restriction
provisions. Any responsible party who fails to comply with any conservation or use
restriction measure is subject to the assessment of an administrative Type I fine, added to
account, pursuant to Section 72.06, below.
72.05 VIOLATIONS INVOLVING DISTRICT REAL
PROPERTY
A. Removal, Disposition and Costs. The District has absolute discretion to
determine the corrective action required in connection with any violation involving
District real property, including requiring the owner of any unauthorized encroachment or
improvement to remove it or taking action to remove it immediately and without notice.
Any improvements or uses placed within or on any District property or right of way are
subject to the following:
1. Costs and Damages. All costs and damages shall be the
responsibility of the customer and any other responsible party. Furthermore, the District
shall not be liable for costs to repair or replace any unauthorized encroachment or
improvement, or any property, improvement or thing used in connection with, supported
by or attached thereto.
2. Burden of proof. The burden shall be on the user to prove to the
District’s satisfaction, the authority, scope and extent of any right to access, improve or
use the District’s property. Only written evidence in the form of an agreement, deed,
statute, recorded or official map or plat, governmental regulation or other right may be
used to establish such claim of right.
B. Notice. In connection with any improvement or use that does not
constitute a health hazard and does not interfere with the District’s use of its property, the
District will give written notice of up to sixty (60) days, at the discretion of the General
Manager, to cease, terminate, eliminate or remove the offending improvement, structure
or use. Any written notice will be given to the responsible party or posted at the property
where the trespass or encroachment occurs. If the responsible party is not the owner of
any real property affected by the violation, the District will also give notice to the owner
of record at the address on record with the assessor’s office via personal delivery,
certified mail return receipt requested or via Fed-Ex.
C. Immediate action. In connection with any improvement that constitutes a
health hazard or interferes with the District’s use of any District property, the District will
take any immediate action deemed necessary by the General Manager.
D. Fines. In addition to all other remedies provided under this Article or
under applicable law, the District may impose a fine as provided in Section 72.06.
Additionally, the District may impose a fine up to either the amount specified on any
sign, or a Type I or Type II fine, at the option of the District, in connection with any
trespass on District property in violation of a sign prohibiting trespassing, pursuant to
Section 72.06, below.
E. Separate violation. A separate violation will accrue for each day after the
deadline to cease, terminate, eliminate or remove the trespass or encroachment, as set
forth in the notice.
72.06 ADMINISTRATIVE FINES
Any administrative fines established herein shall be in the nature of civil penalties
and shall be additional and cumulative to any other fines, damages or any other charges
established by the District and are also separate from and cumulative to any other civil or
criminal penalty, fine or remedy. In connection with each violation, the District may
assess a fine up to the amount specified in the schedule of fines for the type of fine being
imposed.
Each day during which a violation is in effect constitutes a separate violation and
violations are cumulative while the account is in the name of the original violator or any
person that participated in or benefited from the violation. Except where the violation
creates an immediate danger to health or safety, the person responsible for the continuing
violation will be provided a reasonable period of time to correct or otherwise remedy the
violation(s) prior to the imposition of administrative fines.
A. Assessment of Fines for Technical Violations of Other Code Provisions.
Any person who engages in a violation of any provision of this Code is subject to the
assessment of a separate administrative Type I Fine, unless subject to a more severe fine
as set forth in this Code.
B. Assessment of Separate Fines.
Nothing in this code or the limits specified per violation shall prevent the
imposition of separate fines for each separate violation committed during a single act.
For example, in connection with a violation concerning sewer service that involves a
trespass on any portion of the District’s real property, separate fines may be assessed for
the trespass, the damage to District personal property, the damage to District real
property; the damage to the sewer system and the activity resulting on all the damages.
C. Types of Fines. The amount for each type of fine specified below may
increase automatically to reflect any higher amount authorized by law or regulation. The
District has determined to establish two types of fines based on the nature of the
violation, as follows:
1. Type I Fine. Any violation that does not have the potential to
endanger the health or safety of the public. The fine will not exceed the amount
specified in the Section 36900(b) of the California Government Code or
Appendix A for a first, second, third or each additional violation of that same
ordinance or requirement within a twelve-month period.
2. Type II Fine. Any violation that has the potential to endanger the
health or safety, including, but not limited to, unauthorized or illegal connections,
meter tampering, water theft, or knowingly filing a false statement or report
required by a local health officer . The fine will not exceed the amount specified
on Appendix A per each day the violation is identified or continues.
D. Collection of Fines. Any fines assessed by the
District are payable directly to the District, are due upon issuance or as otherwise
indicated on the notice or bill, and are delinquent 30 calendar days from the due date.
E. Notice of Administrative Fine; Content. Notice of an administrative fine
pursuant to this section will contain the following information: (i) a brief description of
the violation(s); (ii) the date and location of the violation(s); (iii) a brief description of
corrective action(s) required, as appropriate; (iv) a statement explaining that each day the
violation continues constitutes a new violation; (v) in the case of violations creating an
immediate danger to health or safety, the amount of civil penalty assessed or, in all other
cases, the amount of civil penalty to be assessed if the violation(s) are not corrected
within the time provided by the notice; (vi) a statement of the procedure for payment and
the consequences of failure to pay; (vii) contact information for the District employee
that should be contacted to discuss the notice and provide evidence of compliance; and
(viii) a brief statement describing the responsible party’s right to request further review,
pursuant to subsection (F), below.
F. Option for Board Review . Persons receiving a Notice of Administrative
Fine may request Board review. The request for Board consideration must be in writing,
must be received by the District Secretary within ten (10) calendar days from the date of
the notice and must include contact information, an explanation of the basis for the
request, and any supporting documentation said person(s) wish to provide to the Board
for review and consideration. District staff will review the petitioner’s request and will
make a recommendation to the Board in light of its investigation. The District will
provide notice of the date, time and place for Board consideration by electronic means,
facsimile or first class mail sent to the return addressee indicated on the written request.
G. Any fines assessed pursuant to the Notice of Administrative Fines must be
timely paid notwithstanding the filing of a request for Board review.
At the time of Board review, the petitioner may, address the Board and respond to
the charges to show good cause why the fine should not be imposed; however, the
customer is not entitled to a full judicial-type hearing with cross examination, sworn
testimony, etc. In accordance with the provisions of Government Code Section 53069.4,
the Board’s determination shall be final and conclusive, and shall be deemed confirmed,
if not appealed within 20 calendar days to the Superior Court of the County of San Diego.
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: March 6, 2019
SUBMITTED BY: Tenille M. Otero
PROJECT: Various DIV. NO. All
APPROVED BY:
Mark Watton, General Manager
SUBJECT: Authorize Agreement with Brownstein Hyatt Farber Schreck LLP
(BHFS) for Legislative Advocacy Services
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors authorize
the General Manager to enter into an agreement with Brownstein Hyatt
Farber Schreck, LLP (BHFS) for legislative advocacy in an amount not-
to-exceed $200,000 terminating December 31, 2021.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into
an agreement with BHFS for an amount not-to-exceed $200,000
commencing March 6, 2019 through December 31, 2021 for professional
and consulting services for District-related state and federal
legislative advocacy.
ANALYSIS:
Procedures governing the selection of general consultants in the
performance of District work are outlined in the District's
Purchasing Manual.
The original agreement with BHFS has ended and the District, for the
purposes of continuity of representation in Sacramento and Washington
D.C. desires to enter into this agreement through December 31, 2021.
Therefore, staff is presenting the new agreement to the Board for
authorization. The new agreement will allow the District to solicit
professional services with BHFS acting as the government relations
advocate and counsel.
Based on past work, the District believes BHFS is uniquely qualified
to best meet the District's needs for comprehensive state and federal
legislative issues advocacy.
This action would also authorize the General Manager to amend the
Agreement with BHFS to extend the term and/or increase the contract
amount as necessary and within the General Manager’s Authority to
provide for the continuation of services, terminate elements of the
Agreement, or to include such other services as deemed necessary and
appropriate by the General Manager.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Legislative advocacy is included in the General Manager's Outside
Services budget. The total Fiscal Year 2019 budget for Legislative
Advocacy is $65,000. Actual FY2019 expenditures to date have been
$18,868.09. Recognizing the increased need for legislative advocacy
based on a District cosponsored bill with the San Diego County Water
Authority for the remainder of the 2019 legislative session (end of
FY19 and first half of FY20), staff will submit a budget request for
FY2020. Staff will also submit a budget request for FY2021 based on
the need of legislative advocacy services for that year. Based on a
financial review of the General Manager's budget, the Communication
Officer has determined that the budget is sufficient to support the
general legislative advocacy services through the end of FY2019.
STRATEGIC GOAL:
Execute and deliver services that meet or exceed customer
expectations, and increase customer engagement in order to improve
District Services.
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) Sample Contract
ATTACHMENT A
SUBJECT/PROJECT:
Authorize Agreement with Brownstein Hyatt Farber Schreck
LLP (BHFS) for Legislative Advocacy Services.
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed
this item at a meeting held on February 19, 2019 and the
following comments were made:
Staff is requesting that the Board approve an agreement with
Brownstein Hyatt Farber Schreck (BHFS) commencing March 6,
2019 through December 31, 2021 for an amount not-to-exceed
$200,000
Staff reviewed information in the staff report.
In response to an inquiry from the Committee, staff indicated
that the District and the San Diego County Water Authority are
cosponsoring a bill on Military Veterans’ Reciprocity.
Assemblymember Todd Gloria and Assemblymember Adam Gray agreed
to co-author the bill. BHFS and the Water Authority worked to
draft the legislative bill language. The District is working
with the San Diego County Water Authority and BHFS to push the
bill forward.
The Committee inquired if the District should require BHFS to
file a disclosure agreement. Staff indicated that it is not
expected that the District will utilize other contractors.
The disclosure agreement is designed for cases where a
specialty is required and the District does not anticipate it
will require such services. The District’s attorney added
that even if a specialty service is required, the sub-
contractor would be a law firm and confidentiality is a
customary part of their being retained.
It was indicated in response to another inquiry from the
Committee regarding section 14.C, Insurance, in the agreement
that it refers to the requirement that the firm have insurance
coverage should a claim be filed against them. The District’s
attorney indicated the reference to storage is a separate
issue and provides a sunset date of when they could destroy
District records; eight (8) years from the date of the final
payment to the firm for their services.
The District’s attorney clarified that section 19.J,
Successors and Assigns, indicates that the agreement is
binding on successors and assignees. This means that if one
of the parties to the agreement dies or leaves the District or
BHFS, the obligations of the agreement would still be binding.
It was noted that the parties would still also have the option
to terminate the agreement.
It was indicated that the District has worked with BHFS since
March 2008. The previous contract reached the $75,000
threshold and would require staff to come to the Board to
extend that contract through an amendment. Instead of
extending that contract, staff is requesting that the board
authorize the general manager to enter into a new contract
with BHFS. BHFS wished to utilize their contract template,
however, there were several very onerous terms in their
template and rather than negotiate those terms, the District
decided to utilize its own contract template.
Upon completion of the discussion, the committee supported
staff’s recommendation and presentation to the full board on the
consent calendar.
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AGREEMENT
BY AND BETWEEN
THE OTAY WATER DISTRICT
AND
BROWNSTEIN HYATT FARBER SCHRECK, LLP
THIS AGREEMENT is entered into this ___ day of _________, 20____, by and between
the OTAY WATER DISTRICT, a municipal water district, formed and existing pursuant to California
Municipal Water District Act of 1911, as amended (the “DISTRICT”), and BROWNSTEIN HYATT
FARBER SCHRECK, LLP. (the “CONSULTANT”) (collectively the “PARTIES”).
R E C I T A L S
WHEREAS, the DISTRICT desires to contract with a consultant to perform legislative
consulting and lobbying services, and
WHEREAS, the DISTRICT has determined, and CONSULTANT has represented, that the
CONSULTANT is a policy consulting firm and is qualified by experience and ability to perform the
services desired by the DISTRICT, and the CONSULTANT is willing to perform such services.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:
1. ENGAGEMENT OF CONSULTANT. The DISTRICT hereby agrees to engage the
CONSULTANT and the CONSULTANT hereby agrees to perform the services hereinafter set forth
in accordance with all terms and conditions contained herein.
The CONSULTANT represents that all services required hereunder will be performed
directly by the CONSULTANT or under direct supervision of the CONSULTANT.
2. SCOPE OF SERVICES. The CONSULTANT will perform services as set forth in the
attached Exhibit “A,“ as well as future policy related engagements with respect to which the
DISTRICT asks the CONSULTANT to represent the DISTRICT, unless the PARTIES execute a
separate agreement for one or more separate engagements. To the extent the provisions of Exhibit
“A” are ambiguous in relation to the provisions of this Agreement, inconsistent with the provisions
of this Agreement, or expand upon the provisions of this Agreement, the provisions of this
Agreement shall take precedence and the provisions of Exhibit “A” shall not apply.
The CONSULTANT shall be responsible for all research and reviews related to the work
described in Exhibit “A” and shall not rely on personnel of the DISTRICT for such services, except
as authorized in advance in writing by the DISTRICT
The DISTRICT may unilaterally, from time to time, reduce the Scope of Services to be
performed by the CONSULTANT under this Agreement. Upon doing so, the DISTRICT and the
CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a
corresponding reduction in the compensation associated with said change in services.
3. PROJECT COORDINATION AND SUPERVISION. Mr. Mark Watton, General
Manager, is designated as the Project Coordinator for the DISTRICT and will monitor the progress
and execution of this Agreement. The CONSULTANT shall assign a single Project Director to
provide supervision and have overall responsibility for the progress and execution of this
Agreement for the CONSULTANT. Ms. Rosanna Carvacho, Shareholder, (“Rosanna”) is
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designated as the Project Director for the CONSULTANT. Rosanna can be reached directly at
916.594.9714 and via email at rcarvacho@bhfs.com. Other members of the team will include:
Teresa Cooke and Gianna Setoudeh with support from any other lobbyists, as assigned.
4. COMPENSATION AND PAYMENT. The compensation for the CONSULTANT for the
performance of all services rendered pursuant to this Agreement shall be based on the rates
contained in Exhibit “B” and shall not exceed Two Hundred Thousand Dollars and Zero Cents
($200,000.00).
CONSULTANT shall invoice the DISTRICT on a monthly schedule for work completed at
the time the invoice is prepared. The DISTRICT shall have forty-five (45) days from the date of
receipt and acceptance of invoices to make payment. To the extent the provisions of Exhibit “B”
are ambiguous in relation to the provisions of this Agreement, inconsistent with the provisions of
this Agreement, or expand upon the provisions of this Agreement, the provisions of this Agreement
shall take precedence and the provisions of Exhibit “B” shall not apply.
5. LENGTH OF AGREEMENT. The term of this Agreement is from March 6, 2019 through
December 31, 2021.
6. DISPOSITION AND OWNERSHIP OF DISTRICT FILE. The PARTIES agree and
understand that the “District File” consists of any correspondence, legal memoranda, pleadings,
agreements, or other documents that the CONSULTANT retains in its electronic document
management system, which is duplicated in hard copy.
The CONSULTANT shall maintain the District file as well as all books, documents, papers,
employee time sheets, accounting records, and other evidence pertaining to costs incurred and
shall make such materials available at its office at all reasonable times during the term of this
Agreement and for eight (8) years from the date of final payment under this Agreement, for
inspection by the DISTRICT and for furnishing of copies to the DISTRICT, if requested. At any time
prior to destruction of the District File, the DISTRICT may request that CONSULTANT deliver
certain portions or all of the physical and electronic District File to the DISTRICT.
7. INDEPENDENT CONSULTANT. Both parties hereto in the performance of this
Agreement will be acting in an independent capacity and not as employees, partners or joint
ventures with one another. Neither the CONSULTANT nor the CONSULTANT’S employees are
employee of the DISTRICT and are not entitled to any of the rights, benefits, or privileges of the
DISTRICT’s employees, including but not limited to retirement, medical, unemployment, or
workers’ compensation insurance.
Neither the DISTRICT nor its officers, agents or employees shall have any control over the
conduct of the CONSULTANT or any of the CONSULTANT’s employees except as herein set forth,
and the CONSULTANT expressly agrees not to represent that the CONSULTANT or the
CONSULTANT’s servants, or employees are in any manner servants or employees of the
DISTRICT, it being understood that the CONSULTANT, its agents, servants, and employees are
as to the DISTRICT wholly independent consultants and that the CONSULTANT’s obligations to
the DISTRICT are solely such as are prescribed by this Agreement.
8. ASSIGNMENT AND SUBCONTRACTING. This Agreement contemplates the personal
services of the CONSULTANT and the CONSULTANT’s employees, and it is recognized by the
parties that a substantial inducement to the DISTRICT for entering into this Agreement was, and is,
the professional reputation and competence of the CONSULTANT and its employees. Neither this
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Agreement nor any interest herein may be assigned by the CONSULTANT without the prior written
consent of the DISTRICT.
Nothing herein contained is intended to prevent the CONSULTANT from employing or
hiring as many employees, or subconsultants, as the CONSULTANT may deem necessary for the
proper and efficient performance of this Agreement. All agreements by CONSULTANT with its
subconsultant(s) shall require the subconsultant to adhere to the applicable terms of this
Agreement and shall require advance written approval by DISTRICT.
9. COMPLIANCE WITH APPLICABLE LAW. The CONSULTANT, in the performance of
the services to be provided herein, shall comply with all applicable State and Federal statutes and
regulations, and all applicable local ordinances, rules and regulations, whether now in force or
subsequently enacted.
10. LICENSES, PERMITS, ETC. The CONSULTANT represents and covenants that it has
all licenses, permits, qualifications, and approvals of whatever nature that are legally required to
perform the services under this Agreement. The CONSULTANT represents and covenants that
the CONSULTANT shall, at its sole cost and expense, keep in effect at all times during the term of
this Agreement, any license, permit, or approval which is legally required for the CONSULTANT to
perform the services under this Agreement.
11. LOBBYING REGISTRATION REQUIREMENTS The PARTIES agree that the activities
the CONSULTANT will undertake pursuant to this Agreement will require the CONSULTANT to
register as a lobbying firm on the DISTRICT’s behalf. The CONSULTANT has filed the Lobbying
Firm Authorization (FPPC Form 602) disclosing that the DISTRICT wishes the CONSULTANT to
influence the California Legislature and Administration on behalf of the DISTRICT. State law
requires that the CONSULTANT file the Authorization as a public document with the Secretary of
State. The CONSULTANT will file quarterly reports thereafter which disclose the DISTRICT’s and
the CONSULTANT’s lobbying activities, the payments the DISTRICT made for and in connection
with these efforts, and any other payments the DISTRICT makes to influence legislative or
administrative action, as legally required.
12. NON-DISCRIMINATION PROVISIONS. The CONSULTANT shall not discriminate
against any employee or applicant for employment because of age, race, color, ancestry, religion,
sex, sexual orientation, marital status, national origin, physical handicap, medical condition, or any
other classification prohibited by state or federal law. The CONSULTANT will take positive action to
insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex,
sexual orientation, marital status, national origin, physical handicap, medical condition, or any other
classification protected by state or federal law.
13. CONFIDENTIAL INFORMATION. The DISTRICT may from time to time communicate
to the CONSULTANT certain confidential information to enable the CONSULTANT to effectively
perform the services to be provided herein. The CONSULTANT shall treat all such information as
confidential and shall not disclose any part thereof without the prior written consent of the
DISTRICT. The CONSULTANT shall limit the use and circulation of such information, even within
its own organization, to the extent necessary to perform the services to be provided herein. The
foregoing obligation of this Section 14, however, shall not apply to any part of the information that
(i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the
CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is already in
the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is
hereafter rightfully disclosed to the CONSULTANT by a third party, but only to the extent that the
use or disclosure thereof has been or is rightfully authorized by that third party.
Page 4 of 11
The DISTRICT understands CONSULTANT is frequently asked to provide information to
third-party auditing firms regarding legal matters of its clients. It is agreed that CONSULTANT will
respond to those inquiries with the same level of care that is used to handle its clients’ other legal
and policy work. The CONSULTANT agrees if a third-party auditing firm requests information
regarding any work being done by the CONSULTANT on behalf of the DISTRICT, the
CONSULTANT will immediately seek approval from the DISTRICT through the Project Coordinator
to release the information requested. The DISTRICT agrees to pay any charges associated with
the CONSULTANT seeking approval and responding to the third-party auditing firm at the hourly
rates applicable to this Agreement. The DISTRICT agrees when an auditing firm requests
information on the DISTRICT’s behalf, that request will be deemed to be the DISTRICT’s consent
for the CONSULTANT to disclose the requested information to that auditing firm and to bill for
those services.
The CONSULTANT shall not disclose any reports, recommendations, conclusions, or other
results of the services or the existence of the subject matter of this Agreement without the prior
written consent of the DISTRICT. In its performance hereunder, the CONSULTANT shall comply
with all legal obligations it may now or hereafter have respecting the information or other property
of any other person, firm or corporation.
CONSULTANT shall be liable to DISTRICT for any damages caused by breach of this
condition, pursuant to the provisions of Section 15.
14. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and
maintain, and shall require its subconsultants, when applicable, to purchase and maintain
throughout the term of this Agreement, the following insurance policies:
A. Professional Liability Insurance (errors and omissions) with minimum limits
of $2,000,000 per occurrence.
B. The aforesaid policy shall constitute primary and non-contributory insurance
as to the DISTRICT, its officers, employees, and volunteers, so that any
other policies held by the DISTRICT shall not contribute to any loss under
said insurance. Said policy shall provide for thirty (30) days prior written
notice to the DISTRICT of cancellation or material change.
C. If required insurance coverage is provided on a “claims made” rather than
“occurrence” form, the CONSULTANT shall maintain such insurance
coverage for four years after expiration of the term (and any extensions) of
this Agreement. In addition, the "retro" date must be on or before the date of
this Agreement.
D. Any aggregate insurance limits must apply solely to this Agreement.
E. Insurance shall be written with only California admitted companies or by one
or more internationally-recognized carriers syndicated through Lloyd’s of
London which hold a current policy holder’s alphabetic and financial size
category rating of not less than A VIII according to the current Best’s Key
Rating Guide, or a company equal financial stability that is approved by the
DISTRICT’s Risk Manager. In the event coverage is provided by non-
admitted “surplus lines” carriers, they must be included on the most recent
Page 5 of 11
California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise
meet rating requirements.
F. This Agreement shall not take effect until certificate(s) or other sufficient
proof that these insurance provisions have been complied with, are filed with
and approved by the DISTRICT’s Risk Manager. If the CONSULTANT does
not keep the insurance policy in full force and effect at all times during the
terms of this Agreement, the DISTRICT may obtain such coverage at
CONSULTANT’s expense and deduct the cost of such insurance from
payments due to CONSULTANT under this Agreement, or may elect to treat
the failure to maintain the requisite insurance as a breach of this Agreement
and terminate the Agreement as provided herein.
G. Maintenance of specified insurance coverage is a material element of this
Agreement, and CONSULTANT’s failure to maintain or renew coverage or to
provide evidence of renewal during the term of this Agreement may be
treated as a material breach of contract by DISTRICT.
15. MEDIATION/ARBITRATION. Any controversy or claim arising out of or relating to fees
and costs incurred under this Agreement shall be resolved pursuant to the California Business and
Professions Code section 6200 et seq. All other disputes arising out of or relating to the Agreement
and these Terms shall be resolved in a binding arbitration administered by JAMS pursuant to its
Comprehensive Arbitration Rules and Procedures. The arbitration will take place in, and be
administered in accordance with the laws of, the state of California. The costs of arbitration shall be
borne equally by the parties. The PARTIES agree to bear their own attorney fees and costs
incurred to resolve any dispute.
16. TERMINATION.
A. This Agreement may be terminated with or without cause by the DISTRICT.
Termination shall be effective upon written notice from the DISTRICT to
CONSULTANT.
B. The CONSULTANT may terminate this Agreement in the same manner describe
above.
C. In the event of termination, if CONSULTANT is attorney of record in any way or
proceeding, the DISTRICT agrees to execute and return to CONSULTANT
appropriate documents for effecting CONSULTANT’s substitution or withdrawal.
Upon receipt of the executed appropriate documents, CONSULTANT agrees to
file the appropriate documents promptly in the appropriate court or location in
order to effectuate CONSULTANT’s substitution or withdrawal as attorney of
record.
D. In the event of termination, all finished or unfinished memoranda reports, plans,
specifications and other documents prepared by the CONSULTANT, whether
paper or electronic, shall immediately become a part of the District File, property
of and be delivered to the DISTRICT, and the CONSULTANT shall be entitled to
receive just and equitable compensation for any work satisfactorily completed on
such documents and other materials up to the effective date of the Notice of
Termination, not to exceed the amounts payable hereunder, and less any
damages caused the DISTRICT by the CONSULTANT’s breach, if any.
Page 6 of 11
Thereafter, ownership of said written material shall vest in the DISTRICT all
rights set forth in Section 7.
17. NOTICES. All notices or other communications required or permitted hereunder shall
be in writing, and shall be personally delivered; or sent by certified mail, postage prepaid, return
receipt requested; and shall be deemed received upon the earlier of (i) if personally delivered, the
date of delivery to the address of the person to receive such notice, (ii) if mailed by certified mail,
return receipt requested, five (5) days (ten (10) days if the address is outside the State of
California) after the date of deposit in a post office, mailbox, mail chute, or other like facility
regularly maintained by the United States Postal Service. Any notice, request, demand, direction
or other communication delivered or sent as specified above shall be directed to the following
persons:
To DISTRICT: Mr. Mark Watton
General Manager
OTAY WATER DISTRICT
2554 Sweetwater Springs Boulevard
Spring Valley, CA 91978-2004
Phone (619) 670-2222
To CONSULTANT:
Ms. Rosanna Carvacho
Shareholder
Brownstein Hyatt Farber Schreck
1415 L Street, Suite 800
Sacramento, CA 95814
Phone: (916) 594-9714
Notice of change of address shall be given by written notice in the manner specified in this
Section. Rejection or other refusal to accept or the inability to deliver because of changed address
of which no notice was given shall be deemed to constitute receipt of the notice, demand, request
or communication sent. Any notice, request, demand, direction or other communication sent by
cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter
mailed or delivered as specified in this Section.
The DISTRICT understands that during the course of the Agreement CONSULTANT may
exchange emails and electronic versions of documents with the DISTRICT using commercially
available software. Any communications or electronic versions of documents sent via email shall
be also sent in accordance with the above requirements unless CONSULTANT seeks and is
granted a waiver of the above requirements via electronic communication.
The PARTIES understand electronic communications are occasionally victimized by the
creation and dissemination of viruses and other destructive electronic programs and hackers who
compromise the privacy of electronic communications. The PARTIES understand virus scanning
software may also occasionally reject communication that is sent from DISTRICT to
CONSULTANT, or from CONSULTANT to DISTRICT. Although infrequent, these occurrences are
to be expected as part of the ordinary course of business. Accordingly, the PARTIES cannot
guarantee that electronic communications and documents will always be virus-free or immune from
invasions of expected privacy.
Page 7 of 11
If either of the PARTIES for the above or other reasons, would prefer or require that
electronic communications not be used or that the PARTIES follow specula instructions or encrypt
emails or other communications, the requesting party shall promptly advise in writing those working
the matters of such preferences or requirements.
18. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. The
CONSULTANT shall at all times comply with the terms of the Political Reform Act and the
DISTRICT’s Conflict of Interest Code. CONSULTANT has received and reviewed a copy of the
District’s Conflict of Interest Code.
CONSULTANT covenants that neither it, nor any officer or principal of its firm, has or shall
acquire any financial interest, directly or indirectly, which would conflict in any manner with the
interests of the DISTRICT or which would in any way hinder CONSULTANT’s performance of
services under this Agreement. In the performance of this Agreement, no person having any such
interest shall be employed by it as an officer, employee, agent or subcontractor without the express
written consent of the DISTRICT. The CONSULTANT also agrees not to specify any service,
product, treatment, process or material in which the CONSULTANT has a material financial
interest, either direct or indirect, without first notifying the DISTRICT of that fact. The
CONSULTANT shall immediately disqualify itself and shall not use its official position to influence
in any way any matter coming before the DISTRICT in which the CONSULTANT has a financial
interest as defined in Government Code section 87103.
The CONSULTANT represents that it has no knowledge of any financial interests that
would require it to disqualify itself from any matter on which it might perform services for the
DISTRICT. CONSULTANT acknowledges that prior to entering into this Agreement and during the
term, CONSULTANT shall have a duty to disclose to the DISTRICT any and all circumstances that
may pose an actual or potential conflict of interest under state law or the DISTRICT’s Conflict of
Interest Code. If a potential conflict of interest issue arises, CONSULTANT shall fully cooperate in
any inquiry and provide the DISTRICT with all documents or other information reasonably
necessary to enable the DISTRICT to determine whether or not a conflict of interest existed or
exists.
The DISTRICT understands that CONSULTANT provides a wide array of public policy
services to many clients around the world. The DISTRICT understand the CONSULTANT’s
services include legislative and administrative representations on matters that may affect the
DISTRICT’s interests, directly or indirectly. Therefore, the DISTRICT waives objection to any
conflict of interest that might be deemed to be created by the CONSULTANT’s representation of
other clients in legislative or administrative policy matters that are unrelated to the specific
representation CONSULTANT has been asked to undertake on the DISTRICT’s behalf. The
DISTRICT’s waiver permits CONSULTANT to represent another client in advocating a change in
law or policy areas even if the policy advocated would or might have a direct or indirect adverse
impact upon the DISTRICT’s interests.
The CONSULTANT shall not conduct or solicit any non-District business while on
DISTRICT time or using DISTRICT property.
19. MISCELLANEOUS PROVISIONS.
A. Computation of Time Periods. If any date or time period provided for in this
Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall
automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday,
Sunday or federal, state or legal holiday.
Page 8 of 11
B. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which, together, shall constitute but one and
the same instrument.
C. Captions. Any captions to, or headings of, the sections or subsections of
this Agreement are solely for the convenience of the parties hereto, are not a part of this
Agreement, and shall not be used for the interpretation or determination of the validity of this
Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly provided
herein, the execution and delivery of this Agreement shall not be deemed to confer any rights
upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto.
E. Exhibits and Schedules. The exhibits and schedules attached hereto are
hereby incorporated herein by this reference for all purposes.
F. Amendment to this Agreement. The terms of this Agreement may not be
modified or amended except by an instrument in writing executed by each of the parties hereto.
G. Waiver. The waiver or failure to enforce any provision of this Agreement
shall not operate as a waiver of any future breach of any such provision or any other provision
hereof.
H. Applicable Law/Venue. This Agreement shall be governed by and construed
in accordance with the laws of the State of California. Any action or proceeding brought by any
party against any other party arising out of or related to this Agreement shall be brought exclusively
in San Diego County.
I. Entire Agreement. This Agreement supersedes any prior agreements,
negotiations and communications, oral or written, and contains the entire agreement between the
parties as to the subject matter hereof. No subsequent agreement, representation, or promise
made by either party hereto, or by or to an employee, officer, agent or representative of any party
hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby.
J. Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the successors and assigns of the parties hereto.
K. Construction. The parties acknowledge and agree that (i) each party is of
equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and
negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to
consult with its own, independent counsel and such other professional advisors as such party has
deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each
party and such party’s counsel and advisors have reviewed this Agreement, (v) each party has
agreed to enter into this Agreement following such review and the rendering of such advice, and
(vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting
party shall not apply in the interpretation of this Agreement, or any portions hereof, or any
amendments hereto.
L. Cumulative Remedies. Except as set forth to the contrary herein, any right
or remedy of the DISTRICT or the CONSULTANT shall be cumulative and without prejudice to any
other right or remedy, whether contained herein or not.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and
year first above written.
Page 9 of 11
OTAY WATER DISTRICT BROWNSTEIN HYATT FARBER SCHRECK, LLP
By: ________________________ By: ____________________________
Mark Watton, Chris Frahm
General Manager Shareholder
By: ________________________
Daniel Shinoff
General Counsel
Page 10 of 11
EXHIBIT “A”
SCOPE OF WORK
Otay Water District (the “District”) has asked and Brownstein Hyatt Farber Schreck, LLP (the
“CONSULTANT”) has agreed to provide the following services:
1. Track all pending and introduced legislation including bill amendments and report to the
Project Coordinator on legislation of interest to the District;
2. Monitor and attend Senate and Assembly Water Committee agendas and hearings as
requested by the Project Coordinator;
3. Monitor ACWA and other water agencies and other special district lobbying group activities
and report to the Project Coordinator on matters of interest to the District;
4. Schedule meetings and communications with legislators and the administration as
requested by the District;
5. Prepare and distribute support and opposition letters to proposed legislation;
6. Draft and distribute advocacy positions as requested;
7. Ongoing consulting regarding pending and introduced legislation and bill amendments,
hearings and agendas, and other matters of interest to the District in Sacramento; and
8. Report quarterly, or as requested, on the progress of legislative activities.
Page 11 of 11
EXHIBIT “B”
PRICE SCHEDULE
(If Hourly Rates, Include)
CERTIFICATIONS; NOTES:
a) It is agreed that this hourly rate applies to all services provided to the District.
b) The DISTRICT is not obligated to pay any other rates other than those identified herein
including overtime rates paid by the CONSULTANT unless prior written authorization by the
DISTRICT has been provided.
c) CONSULTANT shall be compensated for actual services performed in accordance with this
Agreement.
d) All policy services shall be billed at the CONSULTANT’s standard hourly rates in an amount not
to exceed $200,000.00 for the term of the Agreement.
e) The DISTRICT agrees to be charged in ten minute increments for work completed by the
CONSULTANT. The CONSULTANT’s standard hourly rates are as follows:
a. Shareholder: $545-875/hour
b. Associate/Policy Advisor: $400/hour
c. Paralegal/Legislative Assistant: $165 /hour
f) CONSULTANT certifies via the initials of authorized CONSULTANT representative that prior to
providing services, CONSULTANT has conducted background investigations on staff assigned to
the work, including checks of criminal records, DMV records, controlled substance records, and a
post-offer fitness for duty review.
Vendor Initials: ______
g) CONSULTANT certifies that staff assigned to the work understands and agrees that he or she
shall remain an employee, contractor or subcontractor of Vendor and that the District does not
assume any obligation typical of an employer in connection with any services under this
Agreement.
Vendor Initials: ______
h) CONSULTANT certifies that staff assigned to the work understands and agrees that
CONSULTANT remains solely responsible for all obligations typical of an employer including but
not limited to the payment of any applicable employee wages, payroll taxes, benefits, amounts due
for federal and state income taxes and Social Security taxes.
Vendor Initials: _____
i) DISTRICT agrees to reimburse CONSULTANT for all reasonable costs that CONSULTANT
actually incurs in the performance of this Agreement. CONSULTANT shall request written pre-
approval of any single expense in excess of $250 or any monthly sum of expenses in excess of
$500. CONSULTANT shall submit to DISTRICT detailed receipts and a detailed invoice for all
reasonable costs incurred. Any entertainment or meal expenses must be pre-approved by the
DISTRICT. The DISTRICT shall not reimburse for any cost of alcohol incurred during entertainment
or meals. Failure to obtain pre-approval may result in denial of reimbursement.
j) The DISTRICT agrees to inform CONSULTANT of any dispute the DISTRICT may have with
respect to a billing statement within ten (10) days of the statement date. If the DISTRICT disputes
a portion of a billing statement, the DISTRICT agrees to pay the undisputed portion within forty-five
(45) days of your receipt of the statement.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: March 6, 2019
SUBMITTED BY:
Dan Martin
Assistant Chief of
Engineering
PROJECT: P2083-
001103
DIV. NO. 2
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Fifth Amendment to Carollo Engineers, Inc. Professional
Engineering Services Contract for Design and Construction
Support of the 870-2 Pump Station Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
authorize the General Manager to execute a Fifth Amendment with
Carollo Engineers, Inc. (Carollo) for design and construction support
of the 870-2 Pump Station Project in an amount not-to-exceed
$88,352.00 (see Exhibit A for Project location and Exhibit B for
Project detail map).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to execute a
Fifth Amendment with Carollo Engineers, Inc. (Carollo) (see Exhibit
C) for design and construction support of the 870-2 Pump Station
Project in an amount not-to-exceed $88,352.00.
2
ANALYSIS:
On October 11, 2013, the District entered into an agreement in the
amount of $624,910 with Carollo for preliminary and final design and
construction support of the 870-2 Pump Station Project. The First
Amendment, in the amount of $29,000, for a three dimensional model of
the pump station building and associated mechanical and electrical
equipment, was executed June 16, 2014. The Second Amendment, in the
amount of $106,500, to perform additional surge analysis, prepare
cost estimates, design a new Roll (571-1) Reservoir outlet, and
perform additional survey and potholing work, was executed
October 15, 2015. The Third Amendment, in the amount of $42,700, for
the design and preparation of cost estimates for a new reservoir
recirculation pipe for Roll (571-1) Reservoir, was executed on
July 7, 2016. The Roll (571-1) recirculation and outlet piping was
designed and included as part of the 870-2 Pump Station budget for
the station’s yard piping.
The Fourth Amendment in the amount of $209,418 was executed on
July 19, 2017. The Fourth Amendment provided additional design
support during construction based on the advertised construction
contract and specifications. This support includes submittal review
and responses to requests for information (RFIs). Examples of the
critical items that have been reviewed by the designer during
construction of the 870-2 Pump Station include, but are not limited
to, the station pumps, engine drive systems, and building systems.
The Fourth Amendment also provided for assistance during the startup
and commissioning phase of the new 870-2 Pump Station.
As of December 2018, the physical construction of the 870-2 Pump
Station is approximately 56% percent complete. In total, the
Construction team, which includes the Construction Manager, Project
Design team, and District staff have responded to 292 submittals and
158 RFI’s from the contractor since July 2016. Due to the complexity
of the Project, including the Roll (571-1) Reservoir recirculation
system and the station’s chemical system and engines, the original
level of submittal review and RFI response estimated for the Project
has been exceeded. A review of the construction contact and
specifications concludes that this level of response represents
approximately 70 percent of the anticipated submittals and RFI’s
needed to complete the Project.
The proposed Fifth Amendment is to provide additional design support
during the construction of the Project. The additional design
support will provide an increased level of submittal review and
responses to RFIs needed for contract completion. The Fifth
3
Amendment rebalances tasks that have been completed and also
preserves remaining tasks including support for startup and
commissioning, change orders, and issuance of record drawings.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2083, as approved in the FY 2019 budget, is
$18,950,000. Total expenditures, plus outstanding commitments and
forecast, are $18,949,586. See Attachment B for the budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP P2083 is sufficient to support
the Project.
The Finance Department has determined that, under the current rate
model, 100% of the funding will be available from the Replacement
Fund.
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/RP:jf
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Staff Reports\BD 03-06-19\BD-03-06-19 Carollo 5th
Amendment_Construction Support (DM).docx
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Exhibit A – Location Map
Exhibit B – Project Detail Map
Exhibit C – Fifth Amendment
ATTACHMENT A
SUBJECT/PROJECT:
P2083-001103
Fifth Amendment to Carollo Engineers, Inc. Professional
Engineering Services Contract for Design and Construction
Support of the 870-2 Pump Station Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on February 21,
2019, and the following comments were made:
Staff recommended that the Board approve a Fifth Amendment with
Carollo Engineers, Inc. (Carollo) for design and construction
support of the 870-2 Pump Station Project in an amount not-to-
exceed $88,352.00.
The Committee inquired if the Fifth Amendment removed some items
from the prior amendments’ Scope of Work. Staff stated that no
items were negotiated out of the prior amendments and that the
proposed Fifth Amendment is to provide additional design support
for an increased level of submittal review and responses to RFIs
needed for contract completion. As indicated in the staff
report, the Fifth Amendment rebalances tasks that have been
completed and also preserves remaining tasks including support
for startup and commissioning, change orders, and issuance of
record drawings.
In response to a question from the Committee, staff stated that
during the project’s Design Phase, Carollo’s design efforts as a
percentage of the construction contract totaled 4.7%. Staff
indicated that this level of design effort is within the 5%
range seen on similar projects. Staff also stated that the
project’s construction administrative effort (including
construction management, inspection and design support), as a
percentage of the construction contract for contract completion,
is currently estimated at 8.3%. This is within a 10% range seen
on other similar projects.
Following the discussion, the committee supported staff’s
recommendation and presentation to the full board as a consent item.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
P2083-001103
Fifth Amendment to Carollo Engineers, Inc. Professional
Engineering Services Contract for Design and Construction
Support of the 870-2 Pump Station Project
Date Updated: 1/31/19
Budget
18,950,000
Planning
Consultant Contracts 48,000 31,005 16,995 48,000 HELIX ENVIRONMNTL PLANNING INC
17,094 17,094 - 17,094 JONES & STOKES ASSOCIATES INC
210,674 210,674 - 210,674 ICF JONES & STOKES INC
Regulatory Agency Fees 2,109 2,109 - 2,109 CA DEPT OF FISH & WILDLIFE
720 720 - 720 CALIFORNIA REGIONAL WATER
1,570 1,570 - 1,570 SAN DIEGO COUNTY WATER AUTH
1,760 1,760 - 1,760 STATE WATER RESOURCES
Service Contracts 2,260 2,260 - 2,260 COUNTY OF SAN DIEGO
164 164 - 164 SAN DIEGO DAILY TRANSCRIPT
505 505 - 505 THE SAN DIEGO UNION-TRIBUNE
Standard Salaries 179,431 179,431 - 179,431
Fixed Asset 580,444 580,444 - 580,444
Total Planning 1,044,731 1,027,737 16,995 1,044,731
Design 001102
Consultant Contracts 136 136 - 136 THE WATCHLIGHT CORPORATION
4,850 4,850 - 4,850 BURKETT & WONG ENGINEERS INC
14,068 14,068 - 14,068 SOUTHERN CALIFORNIA SOIL
3,034 3,034 - 3,034 RICK ENGINEERING COMPANY
4,625 4,625 - 4,625 ROGER B WOODHULL
22,149 22,149 - 22,149 NINYO & MOORE GEOTECHNICAL AND
10,484 10,484 - 10,484 HUNSAKER & ASSOCIATES
6,086 6,086 - 6,086 HDR ENGINEERING INC
682,870 682,870 - 682,870 CAROLLO ENGINEERS INC
7,974 7,974 - 7,974 AEGIS ENGINEERING MGMT INC
Regulatory Agency Fees 3,694 3,694 - 3,694 SAN DIEGO GAS & ELECTRIC
16,511 16,511 - 16,511 COUNTY OF SAN DIEGO
Service Contracts 98 98 - 98 DAILY JOURNAL CORPORATION
Standard Salaries 677,054 677,054 - 677,054
Supplier Contracts 5,350 5,350 - 5,350 INLAND AERIAL SURVEYS INC
Total Design 1,458,983 1,458,983 - 1,458,983
Construction
Construction Contracts - - -
13,688,835 6,585,021 7,103,814 13,688,835 PACIFIC HYDROTECH CORPORATION
720,465 346,580 373,885 720,465 PACIFIC WESTERN BANK
Consultant Contracts 329,658 329,281 377 329,658 CAROLLO ENGINEERS INC
88,352 - 88,352 88,352 CAROLLO ENGINEERS INC AMENDMENT 5
1,319 1,319 - 1,319 NINYO & MOORE GEOTECHNICAL AND
17,623 17,623 - 17,623 RBF CONSULTING
780,772 395,496 385,277 780,772 MICHAEL BAKER INT'L INC
438 438 - 438 NINYO & MOORE GEOTECHNICAL
OTHER AGENCY FEES 3,334 3,334 - 3,334 COUNTY OF SAN DIEGO
164,774 164,774 - 164,774 SAN DIEGO GAS & ELECTRIC
Professional Legal Fees 276 276 - 276 ARTIANO SHINOFF
280 280 - 280 STUTZ ARTIANO SHINOFF
Service Contracts 3,628 3,628 - 3,628 MAYER REPROGRAPHICS INC
119 119 - 119 SAN DIEGO DAILY TRANSCRIPT
Standard Salaries 210,000 131,452 78,548 210,000
20,000 20,000 Security System
30,000 30,000 County Access Road Inspection
126,000 126,000 Environmental Offsite Mitigation
10,000 10,000 AT&T Connection
Contingency 250,000 - 250,000 250,000 1.7% of Construction Contract
Total Construction 16,259,872 7,979,620 8,466,252 16,445,872
Grand Total 18,763,586 10,466,339 8,483,247 18,949,586
Vendor/Comments
Otay Water District
p2083-PS -870-2 Pump Station
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
OTAY WATER DISTRICT870-2 PUMP STATIONLOCATION MAP
EXHIBIT A
CIP P2083F
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit A, Location Map, May 2016.mxd
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LOW HEADPUMP STATION
HIGH HEADPUMPSTATION
FOR PROJECT DETAILSEE EXHIBIT B
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OTAY WATER DISTRICT870-2 PUMP STATIONPROJECT DETAIL MAP
EXHIBIT B
CIP P2083F
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit B, Project Detail Map, May 2016.mxd
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ExistingWaterOWD
1
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Agreements-Contracts-RFPs\Civil Consultant\New Selection
(Carollo)\Agreement\Amendments\Fifth Amendment\Fifth amendment to Carollo agreement.doc
FIFTH AMENDMENT TO AGREEMENT
BETWEEN OTAY WATER DISTRICT AND
CAROLLO ENGINEERS, INC. RELATIVE TO
PRELIMINARY AND FINAL DESIGN AND CONSTRUCTION SUPPORT
FOR THE 870-2 PUMP STATION PROJECT
This Fifth Amendment (“Amendment”) to the original Agreement for Preliminary and
Final Design and Construction Support Services is made and entered into as of the _____ day
of March, 2019, by and between OTAY WATER DISTRICT ("District"), and CAROLLO
ENGINEERS, INC., a California corporation, ("Consultant").
R E C I T A L S
A. District and Consultant entered into that certain Agreement for Professional
Services dated October 11, 2013, (the "Original Agreement"), under which Consultant agreed to
provide the services therein described in connection with the District’s 870-2 Pump Station
Project (the “Services”). The Original Agreement was amended on June 16, 2014 (the
“Amended Original Agreement”) and on October 15, 2015 (the “Second Amended Original
Agreement”) and on July 7, 2016 (the “Third Amended Original Agreement”) and on July 19,
2017 (the “Fourth Amended Original Agreement”). .
B. The Second Amended Original Agreement is due to expire on June 30, 2019,
and the Design Services are complete.
C. The Consultant has requested an increase in the Fourth Amended Original
Agreement amount to provide additional construction services as requested by the District.
D. District and Consultant desire to enter into this Fifth Amendment to increase the
compensation to Consultant for the additional services requested, extend the term of completion
of the Services, and to amend certain specific terms and conditions of the Fourth Amended
Original Agreement as indicated below,
NOW, THEREFORE, in consideration of the foregoing and the mutual promises and
covenants hereinafter contained, the parties agree as follows:
1. Exhibit A to the Original Agreement, Exhibit A to the First Amendment, Exhibit A
to the Second Amendment, Exhibit A to the Third Amendment, and Exhibit A to the Fourth
Amendment, setting forth the Services to be provided by Consultant, is hereby amended and
supplemented by the Consultant’s letter proposal dated January 8, 2019, attached to this
Amendment and incorporated herein by reference.
2. The parties agree that the aggregate amount paid by the District to the
Consultant for the Services rendered by Consultant in excess of the Original Agreement, as
amended by the First, Second, Third, and Fourth Amendments, shall not exceed Eighty Eight
Thousand Three Hundred Fifty Two Dollars ($88,352). Accordingly, the total compensation paid
by the District for Services described in the Original Agreement, as amended by the First,
Second, Third, and Fourth Amendment, and this Fifth Amendment shall not exceed One Million
One Hundred Thousand Eight Hundred Eighty Dollars ($1,100,880).
3. Pursuant to the Second Amended Original Agreement, the parties agreed that
the Services would be completed on or prior to June 30, 2019. The parties hereby agree that
the term of the Original Agreement, as amended, is hereby extended to December 31, 2019 and
all Services and work contemplated under the Original Agreement, as amended, shall be
completed to the District’s satisfaction on or prior to that date.
4. The parties agree that all terms and conditions of the Original Agreement, as
amended by the First, Second, Third, and Fourth Amendments, not modified or amended by this
Amendment, including without limitation all indemnity and insurance requirements, are and shall
remain in full force and effect.
5. This Fifth Amendment is subject to the venue, choice of law and interpretation
provisions of the Original Agreement.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of
the day and year first above written.
OTAY WATER DISTRICT
By: ____________________________
Mark Watton
Its: General Manager
Date: ___________________________
CONSULTANT:
Carollo Engineers, Inc.
5075 Shoreham Place, Suite 120
San Diego, CA 92122
By:
Name: Jeff Thornbury
Its: Vice President
Date:
Approved as to form:
By: _______________________
General Counsel
Approved as to form:
By: _______________________
Its: _______________________
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Agreements-Contracts-RFPs\Civil Consultant\New Selection (Carollo)\Agreement\Amendments\Fifth Amendment\Fifth amendment to Carollo agreement.doc
5355 Mira Sorrento Place, Suite 270, San Diego, California 92121
P. 858.505.1020 F. 858.505.1015
January ,
Mr. Dan Martin
Otay Water District
Sweetwater Springs Boulevard
Spring Valley, CA &
Subject: 870-2 Pump Station
Carollo Amendment #5 Request
Dear Mr. Martin:
Per recent discussions between Otay, Carollo, and the Construction Manager for the project, we have
compiled an estimate of outstanding work required for Carollo to support Otay and the Construction
Manager through the end of construction of the & - Pump Station project, which is anticipated to be
complete by July of . Specifically, Carollo is requesting the following task budget transfers and
additions:
Existing Task Budget Transfer Requests
. Transfer 9: . from Task (Change Order Review) to Task (Preconstruction Meeting) to
account for a small overage in the Task expenditures. Task is considered % complete.
. Transfer 9 .& from Task (Conformed Drawings & Specifications) to Task (Request for
Information Review). Task is % complete and the 9 .& would otherwise be unused.
:. Transfer 9 ,A& . from Task A (Partnering Session) to Task because the Partnering Session
was not required for this project.
. Transfer 9 ,A&A. from Task (Project Management and Administration) to Task . This will
result in hours of remaining Task budget for the remainder of the project, which we
believe to be sufficient.
Additional Task Budget Requests
. Add 9: , . to the original Task (Request for Information review) budget. With this
addition and the total amount of existing budget transferred to Task , the new Task budget
would be 9 A, . , which is sufficient for the review of & total RFI’s at . hours/review.
Carollo’s original Task budget was based on the review of RFI’s at :. hours/review.
. Add 9 , . . to the original Task : (Submittal review) budget. With this addition, the new
Task : budget would be 9 , . , which is sufficient for the review of a total of :
submittals and re-submittals at . hours/review. Carollo’s original Task : budget was based on
the review of submittals and re-submittals at . hours/review.
:. Add 9 A,& . to Task (Record Drawings). This would increase the total Task budget to
9: , A . , which is based on approximately half of the project drawings ( drawings)
requiring revisions at hours per drawing. It is Carollo’s position that the original Task
budget of 9 ,: A. is insufficient to provide Otay with a complete and accurate set of record
drawings.
Mr. Dan Martin
Otay Water District
January ,
Page
The table below summarizes the proposed task budget transfers and additions:
Original Budget Transfer Add New Budget
684.00$ 318.00$ -$ 1,002.00$
78,660.00$ 7,389.75$ 30,850.25$ 116,900.00$
159,598.00$ -$ 40,802.00$ 200,400.00$
22,400.00$ (318.00)$ -$ 22,082.00$
3,340.00$ (41.75)$ 3,298.25$
2,672.00$ (2,672.00)$ -$
6,860.00$ -$ -$ 6,860.00$
17,368.00$ -$ -$ 17,368.00$
13,360.00$ -$ 13,360.00$
13,360.00$ -$ 16,700.00$ 30,060.00$
11,356.00$ (4,676.00)$ -$ 6,680.00$
Total - All Tasks 329,658.00$ -$ 88,352.25$ 418,010.25$
Task 1 - Preconstruction Meeting
Task 8 - Monthly Construction Meeting
Task 9 - Startup & Commissioning
Task 10 - Record Drawings
Task 11 - Project Management and Administration
Task 2 - Request for Information (RFI)
Task 3 - Submittals/Resubmittals
Task 4 - Change Orders (CO)
Task 5 - Conformed Drawings & Specifications
Task 6 - Partnering Session
Task 7 - Site/Discipline Visits
In total, this amendment would result in the addition of 9 ,: . to Carollo’s original Engineering
Services During Construction budget for a total amended budget of 9 , . .
Thank you for your consideration of this amendment request. Please do not hesitate to contact me
directly with questions.
Sincerely,
Troy Hedlund, P.E.
Vice President, Principal Engineer
Carollo Engineers, Inc.
- -A : (mobile)
thedlund@carollo.com
AS7 Law San Diego/004344/000002/ME/S0426937.DOCX
TO: The Otay Water District Board of Directors,
General Manager Mark Watton
FROM: Jeanne Blumenfeld, Esq.
RE: Proposed Changes to the Board of Directors Policy 8, Directors
Compensation, Reimbursement of Expenses and Group Insurance Benefits.
DATE: March 6, 2019
PURPOSE
Policy 8 provides for Board members to be compensated for each day of attendance at
meetings of the Board or for each day of service rendered as a Director by request or authorization
of the Board.
The purpose of the proposed amendments outlined in this report is to update Board of
Directors Policy 8, Directors Compensation, Reimbursement of Expenses and Group Insurance
Benefits to allow attendance at business or board meetings at regional and/or local Chambers of
Commerce or agencies where the District has a membership, to be eligible for per diem
compensation and expense reimbursement with prior authorization by the Board President or
Board of Directors, to increase the policy limit of Directors’ Travel Accidental Death and
Dismemberment Policy, to align the policy to District practice, and to provide additional clarity
with respect to the terms of the policy, as described in greater detail below.
PROPOSED CHANGES TO POLICY NO. 8
1. Compensation with Prior Authorization
The District compensates Directors on a per diem basis for attendance at authorized
meetings or functions and will reimburse Directors for reasonable expenses incurred while
traveling on District business. Directors attend business and board meetings at regional or local
Chambers of Commerce or agencies where the District has membership as representatives of the
District. Attendance at these meetings is beneficial to the District and, accordingly, such meetings
will be eligible for per diem compensation and expense reimbursement with prior authorization by
the Board President or Board of Directors. Please see Exhibit A: Approved Function List on
Attachment 2.
2. Increase in Travel Accidental Death and Dismemberment Policy
Proposed Changes to Policy No. 8 March 6, 2019
Page 2
AS7 Law San Diego/004344/000002/ME/S0426937.DOCX
The District has historically provided each Director with health and welfare and life
insurance benefits as set forth in the Schedule of Benefits pursuant to Policy 8. This has included
a $50,000 travel accidental death and dismemberment policy. The amount of the travel accidental
death and dismemberment policy has been increased to $100,000 by the District’s insurance
provider at no cost to the District. Please see Section D.1. on Exhibit 1.
3. Clerical Corrections
a. The following edits are proposed to clarify District practice: the removal of the last two
sentences in Section C.2.b.1. on Attachment 2.
b. The following grammatical changes are proposed: Section A, title and p.2; Section
C.6.b and e.; Exhibit A: Approved Functions List, on Exhibit 1.
Attachments:
Attachment 1: Resolution No. 4359
Exhibit 1 to Resolution No. 4359: Policy No. 8 Strike-through
Attachment 2: Policy No. 8 Final Clean Copy
RESOLUTION NO. 4359
RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT
AMENDING BOARD OF DIRECTORS POLICY NO. 8, DIRECTORS
COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE
BENEFITS.
WHEREAS, the Otay Water District Board of Directors Policy No. 8 provides for Board
members to be compensated for each day of attendance at meetings of the Board or for each day
of service rendered as a Director by request or authorization of the Board.
WHEREAS, Policy No. 8 sets forth a list of meetings that are deemed to be authorized by
the Board, and Directors who attend such meetings are eligible to receive per diem compensation
and expense reimbursement.
WHEREAS, Directors regularly attend regional and/or local Chamber of Commerce
business or board meetings, as representatives of the Otay Water District, and such attendance is
beneficial to the District.
WHEREAS, the Otay Water District has historically provided each Director with health
and welfare and life insurance benefits as set forth in Policy No. 8, including a travel accidental
death and dismemberment policy.
WHEREAS the District’s insurance provider increased the travel accidental death and
dismemberment policy at no cost to the District, and Policy No. 8 must be revised to reflect this
increase.
WHEREAS, certain revisions to Policy No. 8 are required to align the provisions with
District practice and to correct typographical errors.
WHEREAS, the amendments to the Policy No. 8 to reflect the increase to the travel
accidental death and dismemberment policy, to align the policy provisions with District practice,
and to correct typographical errors are in the interest of the District, and it is in the District’s
interest to adopt the amended Policy No. 8.
WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this
resolution; and
WHEREAS, the Board has reviewed and considered the proposed amendments to Policy
No. 8.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the
Board of Directors of the Otay Water District that the above stated recitals are incorporated herein
by reference;
BE IT RESOLVED FURTHER that attendance at business or board meetings at regional
and/or local Chambers of Commerce or agencies where the District has a membership, will only
be eligible for per diem compensation and expense reimbursement with prior authorization by the
Board President or Board of Directors; and
BE IT RESOLVED FURTHER that the amended Policy No. 8, incorporated herein as
Attachment 2, is hereby adopted.
FINALLY BE IT RESOLVED that this resolution shall be in full force and effect
immediately after its passage and approval.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water
District at a regular meeting held this 6th day of March, 2019.
Ayes:
Noes:
Abstain:
Absent:
President
ATTEST:
District Secretary
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 6/6/183-
6-19
Page 1 of 7
Purpose
To provide guidelines for payment of compensation and reimbursement of
expenses to Directors in connection with their attendance at meetings
or the performance of other authorized business, and for group insurance
benefits for Directors.
Background
Members of the Board of Directors (“Directors”) attend regular, adjourned
or special meetings of the Board of Directors (“Board”). In addition,
Directors attend other District meetings, committee meetings,
association meetings, and educational seminars on behalf of the District.
These meetings and seminars are related to District business, water and
water related issues, and California special districts. State statutes
authorize District payments for meetings, reimbursements of expenses.
State law also authorizes the District to provide health and welfare
benefits for active Directors and, in limited circumstances, retired
Directors if they served 12 years and were first elected prior to January
1, 1995. The District is also authorized to offer health and welfare
benefits for retired Directors who commenced office on or after January
1, 1995, if the recipient participates on a self-pay basis.
Policy
The District will compensate Directors on a per diem basis for attendance
at authorized meetings or functions and will reimburse Directors for
reasonable expenses incurred while traveling on District business to
include, lodging, dining, transportation and related incidentals.
A. Directors’ Per Diem
As provided in Section 1.01 C. of the District Code of Ordinances,
each Director shall receive a per diem in the amount of $145
(effective July 1, 2018) for each day of attendance at meetings of
the Board or for each day of service rendered as a Director by
request or authorization of the Board, not to exceed a total of
ten (10) days in any calendar month. Attendance at any meeting
shown on Exhibit A to this Policy shall be deemed a meeting
requested or authorized by the Board. Attendance of meetings shall
be in accordance with Exhibit A. The President of the Board or the
Board may authorize a Director to attend meetings not listed in
Exhibit A when the President or the Board determine that it is in
the interest of the District that a Director attend, and that such
attendance be compensated and expenses reimbursed. Director’s
claims for per diem amounts shall be made on a “Board of Directors
Per Diem and Mileage Claim Form” (Exhibit B). The President of the
Board or the Board may approve reimbursement of expenses outside
the per diem limit for a Director, if the Director submits receipts
for all of the related District business expenses.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 6/6/183/
6-19
Page 2 of 7
Attendance at a meeting that is not authorized by this policy (pre-
approved meetings) or pre-approved by the President may be approved
by the Board for per diem compensation. Director’s seeking per
diem amounts compensation for these meetings shall request that
the item be presented to the Board at its next regularly scheduled
meeting for consideration. The decision of the Board shall be
final.
When travel arrangements require a day earlier arrival or a day
later departure, Directors will be eligible for the $145 per diem
and reasonable expenses associated with the extended stay will be
reimbursed as specified below.
B. Pre-payment of Otherwise Reimbursable Expenses
The Director may request pre-payment of registration,
transportation, and lodging, using the “Board of Directors Travel
Request Form” (Exhibit C). Pre-payments shall be limited to the
Director’s expenses only. No advances shall be made on travel
expenses.
C. Reimbursement of Expenses
Each Director shall be reimbursed for travel expenses to and from
the meetings described in Exhibit A or for any other authorized
District business as follows:
1. Authorization
Travel associated with the attendance of meetings or
functions for Directors shall be approved in advance by the
Otay Water District Board President. To request approval of
travel, the Director should complete a “Board of Directors
Travel Request Form” (Exhibit B) in order to be eligible for
compensation and/or reimbursement. Travel requests will be
reviewed and approved by the Board President or the Board.
2. Transportation
a. Air Transportation
The District will endeavor to purchase airline tickets
in advance taking advantage of discounts and low
airfares.
b. Automobile
1. Personal Auto: Directors may use their personal
vehicle. The District will reimburse Directors at
the current rate/mile as established by the IRS,
plus tolls, parking, etc., provided, however, if
air transportation is available, the total amount
of expense paid shall be limited to the cost of
coach air travel between points traveled by
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 6/6/183/
6-19
Page 3 of 7
personal vehicle. Gasoline, collision and
liability insurance, and maintenance will be
provided by the Director and is deemed covered in
the rate/mileage reimbursement.
Directors using personal vehicles on District
business must maintain a valid California driver’s
license and the automobile insurance coverage
required by the State of California, or make
arrangements for a driver who meets the above
requirements. The General Manager’s Staff will
verify that Directors have a valid driver’s
license. Directors will also be required to
maintain automobile insurance coverage. Proof of
such insurance will be submitted two times per
year, in January and July, and is required to be
eligible for mileage reimbursement.
2. Rental Cars: The District will provide a rental
car when needed. Such rental car shall be a
compact or mid-size class, unless upgrades are
offered at no additional cost to the District.
c. Miscellaneous Transportation
Whenever practicable, bus, taxi, rail, shuttle, etc.
transportation may be used in lieu of, or in conjunction
with, modes above.
3. Meals and Lodging
a. Meals and Beverages
Whenever travel requires meals, the meals, excluding
gratuity, shall be reimbursable, provided the Director
presents a receipt along with the “Board of Directors
Expense Claim Form” (Exhibit D) for all meals.
Reimbursements for expense items where a receipt has
been lost will not be paid until the President or the
Board has reviewed and approved the expense item. Meals
are reimbursable based on the Meals and Incidental
Expenses (M&IE) as updated by the U.S. General Services
Administration:
1. Full Day Reimbursement
When a Director is traveling for a full day and no
meals are provided for by other sources, such as
pre-paid registration, the Director may be
reimbursed for meal expenses at the rate provided
by the M&IE per day. This amount is exclusive of
any gratuities.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 6/6/183/
6-19
Page 4 of 7
2. Single Meal Reimbursement
When a Director requires reimbursement for a
single meal while traveling, the maximum meal
reimbursement amount shall be at a rate provided
by the M&IE for Breakfast, lunch, and/or dinner,
or amounts determined by the President or the Board
to be reasonable for the occasion or
circumstances. These amounts and any amount
approved by the President or Board shall exclude
gratuities.
3. Partial Day Reimbursement
When a director will be traveling for a partial day
or where a single meal is provided for by other
sources such as pre-paid registration, the maximum
reimbursement amount shall be at the rate provided
by the M&IE per meal, or such other amounts as may
be determined by the President or the Board to be
reasonable for the occasion or circumstances. In
any event all amounts to be reimbursed shall exclude
any gratuities.
4. Taxes
The maximum meal reimbursement amounts are
inclusive of and assume expenses for taxes. The
maximum meal reimbursements shall exclude any and
all gratuities.
b. Lodging
The District will reimburse Directors or pre-pay
accommodations in single rooms at conference facilities
or in close proximity when applicable. Or, in the
absence of conference accommodations, normal single-
room business, government or commercial class
accommodation may be obtained. Under normal
circumstances, lodging will not be reimbursed for the
night before a conference starts and the night after it
ends. However, in situations where available travel
schedules would require the Director to leave home
before 6:00 AM or return to home after 12:00 AM, lodging
for the night before or the night after will be
reimbursable.
4. Entertainment
The District shall not cover any expenses incurred for
recreation or entertainment.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 6/6/183/
6-19
Page 5 of 7
5. Incidental Expenses
Unavoidable, necessary and reasonable authorized expenses
will be fully reimbursed by the District. Some examples of
allowable expenses are:
a. Reasonable transportation to local restaurants and to
optional functions that are a part of conference events.
b. Parking fees.
c. The following expenses are not reimbursable:
1. Alcoholic beverages
2. Parking or traffic violations
3. In-room movies or laundry services
6. Director's Responsibility
a. Directors must submit a detailed “Board of Directors
Expense Claim Form” for reimbursement. Claim forms
should be supported by vouchers and itemized receipts
of expenditures for which reimbursement is being
requested. Receipts must be attached for all expenses.
If a receipt is lost, the lost receipt must be noted on
the “Board of Directors Expense Claim Form” (Exhibit D)
and approved by the President or the Board before any
payment can be made. Claim forms shall be submitted
within 45 calendar days after the expense was incurred.
Expense claims requiring reimbursement to the District,
which are not reconciled within 45 calendar days, shall
be deducted from the next month’s reimbursement.
b. Expenses will not be reimbursed for meetings that have
been pre-paid and not attended. The President or the
Board may excuse an absence for a meeting. The absent
Director shall provide a verbal or written report at
the next regularly scheduled Board meeting stating the
reason for the absence and, if appropriate, request that
it be excused. Directors will be required to reimburse
the Ddistrict for any pre-paid expenses for any
unexcused absence. This reimbursement will be made by
deduction from future expenditures.
c. When two (2) or more Directors combine an expense on
one receipt, the Director requesting reimbursement
should indicate, on or attached to the Director’s “Board
of Directors Expense Claim Form” the identity of the
other persons sharing expenses. This will facilitate
appropriate allocation of expenses to each participant.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 6/6/183/
6-19
Page 6 of 7
d. Except where the District sponsors a table at an event,
expenses incurred by spouses, family members, or guests
are the responsibility of the Director.
e. The District shall, at least annually, provide a report to
disclose any reimbursement paid by the Ddistrict within
the immediately preceding fiscal year of at least $100 for
each individual charge for services or product received.
“Individual charge” (as defined in California Government
Code Section 53065.5) includes, but is not limited to, one
meal, lodging for one day, transportation, or a
registration fee.
D. District Group Insurance Benefits
1. Each Director, while serving as a member of the Board of
Directors, shall be entitled to the health and welfare and
life insurance benefits set forth in the Schedule of Benefits
in the District Group Insurance Plan Booklet, which benefits
are furnished by the District at District cost, with
applicable contributions, for active District employees and
Directors. Each active Director shall also be entitled to a
$65,000 term life and accidental death and dismemberment
insurance policy (subject to policy requirements and any
standard age reduction schedule), a $1500,000 travel
accidental death and dismemberment policy. In addition to the
foregoing, the District will pay premiums for additional
individual life insurance coverage in an amount of up to
$250,000 for a 20 year term for those active Directors who
apply for such coverage with the District’s provider and meet
the provider’s standard underwriting guidelines and policy
requirements. If coverage at higher amounts or for a longer
term is made available by the provider, each Director may
purchase such additional coverage on a self-pay basis.
2. Each former member of the Board of Directors, who served in
office after January 1, 1981, who was elected to a term of
office that began before January 1, 1995, who is at least
60 years of age, and whose total service at the time of
termination is not less than 12 years, shall be entitled to
the health and welfare and life insurance benefits set
forth in the District Group Insurance Plan Booklet, which
benefits are furnished by the District, at District cost,
for retired Directors.
E.Miscellaneous
Cell Phone expenses are not considered a reimbuseable expense
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 6/6/183/
6-19
Page 7 of 7
Attachments
Exhibit A: Approved Function List
Exhibit B: “Board of Directors Per Diem and Mileage Claim Form”
Exhibit C: “Board of Directors Travel Request Form”
Exhibit D: “Board of Directors Expense Claim Form”
EXHIBIT A
Approved Functions List
Board Policy for payment of per diems compensation and expenses
for Director attendance at District meetings:
The Board reviews its authorization and policy for payment of per
diem compensation fors (pre-approved meetings) annually, in January
following reorganization of the Board and election of a new
President. Below is the current Board policy:
1. The following meetings are pre-approved for all Directors
to attend and receive a per diem compensation and expense
reimbursement:
Otay Water District Regular and Special Board Meetings
Otay committee meetings for committee members only
Otay business meetings called by the General Manager
and authorized by the President of the Board where
individual Directors are requested to attend
Except as otherwise specifically excluded in this
policy, official District functions that take place
during normal business hours where Directors are
requested to attend by either the Board President or
the Board
Semi-annual conference of the Association of California
Water Agencies
Regular quarterly meetings of the Water Agencies
Association of San Diego County
Regularly monthly meeting of Council of Water Utilities
Business meetings and conferences of the California
Special District Association held in San Diego County
All other meetings not listed here require pre-
approval by the President or Board for Directors to
receive per diem compensation and/or expense
reimbursement.
2. The following meetings are pre-approved for designated Otay
Director representatives or designated alternate. The
District Secretary will maintain an updated list of
designated Director representatives. Any other Director who
wishes to attend these meetings and receive a per diem must
have approval from the President or Board prior to the event
or be designated by the President or Board, as an alternate.
The pre-approval shall include the attendance of the
Director at the commission, committee, board or meeting and
any committee, subcommittee or other official or posted
EXHIBIT A
meeting of the agencies, commissions, committees or boards
listed below:
Planning Group and City Commission meetings that fall
within the boundaries of each directors district (when
issues impacting OWD are discussed)
Inter-Agency Committee Meeting
METRO (TAC/AFFORD) Commission
ACWA or CSDA meetings/conferences
Water Conservation Garden
WateReuse Association
South County Economic Development Council
3. The Board President or his designee is pre-authorized to
attend District business meetings with cities and other
agencies to represent Otay Water District, and may claim a
per diem and expenses. Any other Director desiring to attend
the same meeting of this nature would require approval to
attend from the President or the Board in order to receive
a per diem and expense reimbursement.
4. When the President or the Board appoints a director(s) to a
committee, the meeting(s) shall be considered pre-approved
for per diem and expense reimbursement.
5. The following meeting requires pre-approval by the Board
President or Board of Directors to receive per diem and
expense reimbursement:
Regional and/or local Chamber of Commerce business or
board meetings where the District maintains a membership
4.
5.6. The following meetings are not eligible for pre-approved per
diem claims:
a) Attending other Districts’ Board meetings
b) Otay employee appreciation breakfast, luncheons or
dinners
c) Retirement receptions
d) Otay picnics or dinner-dances or other purely social
events
e) If a per diem reimbursement is provided by another
agency (i.e. San Diego County Water Authority and the
Metro Commission)
f) Chamber of Commerce events
g)f) First Friday Breakfasts unless presenting Otay
official business to the assembly
h)g) Any political campaign event or function
6.7. In order to submit a per diem/travel reimbursement the
member must attend at least 50% of the meeting (per day)
Formatted: List Paragraph, Left, No bullets or numbering,Tab stops: Not at 0.63"
Formatted: No bullets or numbering
EXHIBIT A
and the reimbursement request must be submitted within 45
days of the occurrence, otherwise it may be considered
attended without per diem. The President of the Board will
make the final determination.
7.8. All other meetings/conferences/tours/seminars/
workshops/functions not listed in this policy must be pre-
approved by the Board President or the Board.
EXHIBIT B
(Director’s Signature)
GM Receipt: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Period Covered:
Employee Number: From: To:
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED MILEAGE
HOME to OWD OWD to HOME
MILEAGE
OTHER LOCATIONS
Total Meeting Per Diem:
$
($145 per meeting)
Total Mileage Claimed: miles
EXHIBIT B
INSTRUCTIONS ON REVERSE
EXHIBIT B
INSTRUCTIONS FOR PREPARATION OF
BOARD OF DIRECTORS PER DIEM CLAIM FORM
1. Record the date, and name or purpose/issues discussed of meeting
attended on behalf of the District.
Note: The District will pay Director's per-diem for one meeting/
function per day and the maximum of 10 meetings/functions per month.
If a Director attends more than 10 meetings/functions (10 days), the
District will reimburse for the mileage and any reimbursable out-of-
pocket expenses incurred for these additional meetings.
2. Record number of miles (round trip) driven to attend meeting/ function.
The use of personal vehicles in the conduct of official District business
shall be reimbursed at the current Internal Revenue Service rate. The
Director's expense claim should indicate the nature of the trip. If a trip
begins at home, the District will reimburse the mileage from home to
destination and return mileage. District insurance does not cover personal
vehicles while they are being driven on District business. The reimbursement
rate is inclusive of an allowance for insurance costs. The District will
reimburse Directors for the deductible under their personal insurance policy
should they be involved in an accident while on District business. To be
eligible for reimbursement, each Director shall maintain a current California
driver’s license and at least the minimum vehicle liability insurance
required by State law or shall arrange for a driver who meets said standards.
The District will not reimburse the cost of travel of a personal nature taken
in conjunction with travel on official business.
Claim forms shall be submitted within 45 calendar days after the meeting
date. Expense claims requiring reimbursement to the District which are not
reconciled within 45 calendar days, shall be deducted from the next month’s
reimbursement.
No information on the Per Diem Claim Form may be designated as confidential
in nature. All expenses must be fully disclosed on the form.
EXHIBIT C
OTAY WATER DISTRICT
BOARD OF DIRECTORS
TRAVEL REQUEST FORM
Director: Date of Request:
Name and Location of Function:
Date(s) function to be held: -
Sponsoring Organization:
Request for Prepayment of Fees Related to the Function:
Expense Type Not Needed Pre-Payment
Requested
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses – Explain Below
Lodging Preference:
Explanation of Other
Expenses:
Signature of Director Date of Request
For Office Use Only Below This Line
Date of Board
Approval:
Expense Type Description Amount Pre-
Paid
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses
District Secretary Date Processed
EXHIBIT D
OTAY WATER DISTRICT
BOARD OF DIRECTORS
EXPENSE CLAIM FORM
Pay To: Period Covered:
Employee Number: From: To:
ITEMIZED REIMBURSEMENT CLAIMED
Date
Type of Reimbursement
Amount
TOTAL Reimbursement Claimed: $
Director Signature: Date:
GM Receipt: Date:
INSTRUCTIONS ON REVERSE
EXHIBIT D
INSTRUCTIONS FOR PREPARATION OF
BOARD OF DIRECTORS EXPENSE CLAIM FORM
The necessary expenses incurred while traveling on District business including
common carrier fares (economy class), automobile rental charges, District business
telephone calls, lodging, baggage handling, parking fees, meals, etc. will be
reimbursed when documented on the Director's Per Diem and Expense Claim Forms.
Receipts must be attached for all meal expenses. If a receipt is lost, the lost
receipt should be noted next to the expense and submitted to the President before
any reimbursement can be made. Receipts are required for the reimbursement of all
expenses.
All receipts must have the nature of the expense and the business purpose
noted on the receipt.
The District will not reimburse the cost of travel of a personal nature taken
in conjunction with travel on official business.
Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy
(Policy 8).
Any receipts that include costs of personal travel (e.g., hotel receipt for
employee and spouse) should identify what the cost would have been without
personal travel (e.g., single room rate as opposed to double room rate).
Claim forms shall be submitted within 45 calendar days after the expense was
incurred. Expense claims requiring reimbursement to the District which are
not reconciled within 45 calendar days, shall be deducted from the next month’s
reimbursement.
No information on the Expense Claim Form may be designated as confidential in
nature. All expenses must be fully disclosed on the form.
The following expenses are not reimbursable:
a. Alcoholic Beverages d. Laundry service
b. Parking or traffic violations e. Entertainment or recreation
c. In-room movies f. Expenses incurred by spouses,
family members, or guests.
ND: 4840-9653-1715, v. 2
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 3-6-19
Page 1 of 7
Purpose
To provide guidelines for payment of compensation and reimbursement of
expenses to Directors in connection with their attendance at meetings
or the performance of other authorized business, and for group insurance
benefits for Directors.
Background
Members of the Board of Directors (“Directors”) attend regular, adjourned
or special meetings of the Board of Directors (“Board”). In addition,
Directors attend other District meetings, committee meetings,
association meetings, and educational seminars on behalf of the District.
These meetings and seminars are related to District business, water and
water related issues, and California special districts. State statutes
authorize District payments for meetings, reimbursements of expenses.
State law also authorizes the District to provide health and welfare
benefits for active Directors and, in limited circumstances, retired
Directors if they served 12 years and were first elected prior to January
1, 1995. The District is also authorized to offer health and welfare
benefits for retired Directors who commenced office on or after January
1, 1995, if the recipient participates on a self-pay basis.
Policy
The District will compensate Directors on a per diem basis for attendance
at authorized meetings or functions and will reimburse Directors for
reasonable expenses incurred while traveling on District business to
include, lodging, dining, transportation and related incidentals.
A. Directors’ Per Diem
As provided in Section 1.01 C. of the District Code of Ordinances,
each Director shall receive a per diem in the amount of $145
(effective July 1, 2018) for each day of attendance at meetings of
the Board or for each day of service rendered as a Director by
request or authorization of the Board, not to exceed a total of
ten (10) days in any calendar month. Attendance at any meeting
shown on Exhibit A to this Policy shall be deemed a meeting
requested or authorized by the Board. Attendance of meetings shall
be in accordance with Exhibit A. The President of the Board or the
Board may authorize a Director to attend meetings not listed in
Exhibit A when the President or the Board determine that it is in
the interest of the District that a Director attend, and that such
attendance be compensated and expenses reimbursed. Director’s
claims for per diem amounts shall be made on a “Board of Directors
Per Diem and Mileage Claim Form” (Exhibit B). The President of the
Board or the Board may approve reimbursement of expenses outside
the per diem limit for a Director, if the Director submits receipts
for all of the related District business expenses.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 3/6-19
Page 2 of 7
Attendance at a meeting that is not authorized by this policy (pre-
approved meetings) or pre-approved by the President may be approved
by the Board for per diem compensation. Director’s seeking per
diem compensation for these meetings shall request that the item
be presented to the Board at its next regularly scheduled meeting
for consideration. The decision of the Board shall be final.
When travel arrangements require a day earlier arrival or a day
later departure, Directors will be eligible for the $145 per diem
and reasonable expenses associated with the extended stay will be
reimbursed as specified below.
B. Pre-payment of Otherwise Reimbursable Expenses
The Director may request pre-payment of registration,
transportation, and lodging, using the “Board of Directors Travel
Request Form” (Exhibit C). Pre-payments shall be limited to the
Director’s expenses only. No advances shall be made on travel
expenses.
C. Reimbursement of Expenses
Each Director shall be reimbursed for travel expenses to and from
the meetings described in Exhibit A or for any other authorized
District business as follows:
1. Authorization
Travel associated with the attendance of meetings or
functions for Directors shall be approved in advance by the
Otay Water District Board President. To request approval of
travel, the Director should complete a “Board of Directors
Travel Request Form” (Exhibit B) in order to be eligible for
compensation and/or reimbursement. Travel requests will be
reviewed and approved by the Board President or the Board.
2. Transportation
a. Air Transportation
The District will endeavor to purchase airline tickets
in advance taking advantage of discounts and low
airfares.
b. Automobile
1. Personal Auto: Directors may use their personal
vehicle. The District will reimburse Directors at
the current rate/mile as established by the IRS,
plus tolls, parking, etc., provided, however, if
air transportation is available, the total amount
of expense paid shall be limited to the cost of
coach air travel between points traveled by
personal vehicle. Gasoline, collision and
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 3/6-19
Page 3 of 7
liability insurance, and maintenance will be
provided by the Director and is deemed covered in
the rate/mileage reimbursement.
Directors using personal vehicles on District
business must maintain a valid California driver’s
license and the automobile insurance coverage
required by the State of California, or make
arrangements for a driver who meets the above
requirements.
2. Rental Cars: The District will provide a rental
car when needed. Such rental car shall be a
compact or mid-size class, unless upgrades are
offered at no additional cost to the District.
c. Miscellaneous Transportation
Whenever practicable, bus, taxi, rail, shuttle, etc.
transportation may be used in lieu of, or in conjunction
with, modes above.
3. Meals and Lodging
a. Meals and Beverages
Whenever travel requires meals, the meals, excluding
gratuity, shall be reimbursable, provided the Director
presents a receipt along with the “Board of Directors
Expense Claim Form” (Exhibit D) for all meals.
Reimbursements for expense items where a receipt has
been lost will not be paid until the President or the
Board has reviewed and approved the expense item. Meals
are reimbursable based on the Meals and Incidental
Expenses (M&IE) as updated by the U.S. General Services
Administration:
1. Full Day Reimbursement
When a Director is traveling for a full day and no
meals are provided for by other sources, such as
pre-paid registration, the Director may be
reimbursed for meal expenses at the rate provided
by the M&IE per day. This amount is exclusive of
any gratuities.
2. Single Meal Reimbursement
When a Director requires reimbursement for a
single meal while traveling, the maximum meal
reimbursement amount shall be at a rate provided
by the M&IE for Breakfast, lunch, and/or dinner,
or amounts determined by the President or the Board
to be reasonable for the occasion or
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 3/6-19
Page 4 of 7
circumstances. These amounts and any amount
approved by the President or Board shall exclude
gratuities.
3. Partial Day Reimbursement
When a director will be traveling for a partial day
or where a single meal is provided for by other
sources such as pre-paid registration, the maximum
reimbursement amount shall be at the rate provided
by the M&IE per meal, or such other amounts as may
be determined by the President or the Board to be
reasonable for the occasion or circumstances. In
any event all amounts to be reimbursed shall exclude
any gratuities.
4. Taxes
The maximum meal reimbursement amounts are
inclusive of and assume expenses for taxes. The
maximum meal reimbursements shall exclude any and
all gratuities.
b. Lodging
The District will reimburse Directors or pre-pay
accommodations in single rooms at conference facilities
or in close proximity when applicable. Or, in the
absence of conference accommodations, normal single-
room business, government or commercial class
accommodation may be obtained. Under normal
circumstances, lodging will not be reimbursed for the
night before a conference starts and the night after it
ends. However, in situations where available travel
schedules would require the Director to leave home
before 6:00 AM or return to home after 12:00 AM, lodging
for the night before or the night after will be
reimbursable.
4. Entertainment
The District shall not cover any expenses incurred for
recreation or entertainment.
5. Incidental Expenses
Unavoidable, necessary and reasonable authorized expenses
will be fully reimbursed by the District. Some examples of
allowable expenses are:
a. Reasonable transportation to local restaurants and to
optional functions that are a part of conference events.
b. Parking fees.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 3/6-19
Page 5 of 7
c. The following expenses are not reimbursable:
1. Alcoholic beverages
2. Parking or traffic violations
3. In-room movies or laundry services
6. Director's Responsibility
a. Directors must submit a detailed “Board of Directors
Expense Claim Form” for reimbursement. Claim forms
should be supported by vouchers and itemized receipts
of expenditures for which reimbursement is being
requested. Receipts must be attached for all expenses.
If a receipt is lost, the lost receipt must be noted on
the “Board of Directors Expense Claim Form” (Exhibit D)
and approved by the President or the Board before any
payment can be made. Claim forms shall be submitted
within 45 calendar days after the expense was incurred.
Expense claims requiring reimbursement to the District,
which are not reconciled within 45 calendar days, shall
be deducted from the next month’s reimbursement.
b. Expenses will not be reimbursed for meetings that have
been pre-paid and not attended. The President or the
Board may excuse an absence for a meeting. The absent
Director shall provide a verbal or written report at
the next regularly scheduled Board meeting stating the
reason for the absence and, if appropriate, request that
it be excused. Directors will be required to reimburse
the District for any pre-paid expenses for any unexcused
absence. This reimbursement will be made by deduction
from future expenditures.
c. When two (2) or more Directors combine an expense on
one receipt, the Director requesting reimbursement
should indicate, on or attached to the Director’s “Board
of Directors Expense Claim Form” the identity of the
other persons sharing expenses. This will facilitate
appropriate allocation of expenses to each participant.
d. Except where the District sponsors a table at an event,
expenses incurred by spouses, family members, or guests
are the responsibility of the Director.
e. The District shall, at least annually, provide a report to
disclose any reimbursement paid by the District within the
immediately preceding fiscal year of at least $100 for each
individual charge for services or product received.
“Individual charge” (as defined in California Government
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 3/6-19
Page 6 of 7
Code Section 53065.5) includes, but is not limited to, one
meal, lodging for one day, transportation, or a
registration fee.
D. District Group Insurance Benefits
1. Each Director, while serving as a member of the Board of
Directors, shall be entitled to the health and welfare and
life insurance benefits set forth in the Schedule of Benefits
in the District Group Insurance Plan Booklet, which benefits
are furnished by the District at District cost, with
applicable contributions, for active District employees and
Directors. Each active Director shall also be entitled to a
$65,000 term life and accidental death and dismemberment
insurance policy (subject to policy requirements and any
standard age reduction schedule), a $100,000 travel
accidental death and dismemberment policy. In addition to the
foregoing, the District will pay premiums for additional
individual life insurance coverage in an amount of up to
$250,000 for a 20 year term for those active Directors who
apply for such coverage with the District’s provider and meet
the provider’s standard underwriting guidelines and policy
requirements. If coverage at higher amounts or for a longer
term is made available by the provider, each Director may
purchase such additional coverage on a self-pay basis.
2. Each former member of the Board of Directors, who served in
office after January 1, 1981, who was elected to a term of
office that began before January 1, 1995, who is at least
60 years of age, and whose total service at the time of
termination is not less than 12 years, shall be entitled to
the health and welfare and life insurance benefits set
forth in the District Group Insurance Plan Booklet, which
benefits are furnished by the District, at District cost,
for retired Directors.
E.Miscellaneous
Cell Phone expenses are not considered a reimbuseable expense
Attachments
Exhibit A: Approved Function List
Exhibit B: “Board of Directors Per Diem and Mileage Claim Form”
Exhibit C: “Board of Directors Travel Request Form”
Exhibit D: “Board of Directors Expense Claim Form”
EXHIBIT A
Approved Functions List
Board Policy for payment of per diem compensation and expenses for
Director attendance at District meetings:
The Board reviews its authorization and policy for payment of per
diem compensation for pre-approved meetings annually, in January
following reorganization of the Board and election of a new
President. Below is the current Board policy:
1. The following meetings are pre-approved for all Directors
to attend and receive per diem compensation and expense
reimbursement:
Otay Water District Regular and Special Board Meetings
Otay committee meetings for committee members only
Otay business meetings called by the General Manager
and authorized by the President of the Board where
individual Directors are requested to attend
Except as otherwise specifically excluded in this
policy, official District functions that take place
during normal business hours where Directors are
requested to attend by either the Board President or
the Board
Semi-annual conference of the Association of California
Water Agencies
Regular quarterly meetings of the Water Agencies
Association of San Diego County
Regularly monthly meeting of Council of Water Utilities
Business meetings and conferences of the California
Special District Association held in San Diego County
All other meetings not listed here require pre-
approval by the President or Board for Directors to
receive per diem compensation and/or expense
reimbursement.
2. The following meetings are pre-approved for designated Otay
Director representatives or designated alternate. The
District Secretary will maintain an updated list of
designated Director representatives. Any other Director who
wishes to attend these meetings and receive a per diem must
have approval from the President or Board prior to the event
or be designated by the President or Board, as an alternate.
The pre-approval shall include the attendance of the
Director at the commission, committee, board or meeting and
any committee, subcommittee or other official or posted
EXHIBIT A
meeting of the agencies, commissions, committees or boards
listed below:
Planning Group and City Commission meetings that fall
within the boundaries of each directors district (when
issues impacting OWD are discussed)
Inter-Agency Committee Meeting
METRO (TAC/AFFORD) Commission
ACWA or CSDA meetings/conferences
Water Conservation Garden
WateReuse Association
South County Economic Development Council
3. The Board President or his designee is pre-authorized to
attend District business meetings with cities and other
agencies to represent Otay Water District, and may claim a
per diem and expenses. Any other Director desiring to attend
the same meeting of this nature would require approval to
attend from the President or the Board in order to receive
a per diem and expense reimbursement.
4. When the President or the Board appoints a director(s) to a
committee, the meeting(s) shall be considered pre-approved
for per diem and expense reimbursement.
5. The following meeting requires pre-approval by the Board
President or Board of Directors to receive per diem and
expense reimbursement:
Regional and/or local Chamber of Commerce business or
board meetings where the District maintains a membership
6. The following meetings are not eligible for pre-approved per
diem claims:
a) Attending other Districts’ Board meetings
b) Otay employee appreciation breakfast, luncheons or
dinners
c) Retirement receptions
d) Otay picnics or dinner-dances or other purely social
events
e) If a per diem reimbursement is provided by another
agency (i.e. San Diego County Water Authority and the
Metro Commission)
f) First Friday Breakfasts unless presenting Otay official
business to the assembly
g) Any political campaign event or function
7. In order to submit a per diem/travel reimbursement the
member must attend at least 50% of the meeting (per day)
and the reimbursement request must be submitted within 45
days of the occurrence, otherwise it may be considered
EXHIBIT A
attended without per diem. The President of the Board will
make the final determination.
8. All other meetings/conferences/tours/seminars/
workshops/functions not listed in this policy must be pre-
approved by the Board President or the Board.
EXHIBIT B
(Director’s Signature)
GM Receipt: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Period Covered:
Employee Number: From: To:
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED MILEAGE
HOME to OWD OWD to HOME
MILEAGE
OTHER LOCATIONS
Total Meeting Per Diem:
$
($145 per meeting)
Total Mileage Claimed: miles
EXHIBIT B
INSTRUCTIONS ON REVERSE
EXHIBIT B
INSTRUCTIONS FOR PREPARATION OF
BOARD OF DIRECTORS PER DIEM CLAIM FORM
1. Record the date, and name or purpose/issues discussed of meeting
attended on behalf of the District.
Note: The District will pay Director's per-diem for one meeting/
function per day and the maximum of 10 meetings/functions per month.
If a Director attends more than 10 meetings/functions (10 days), the
District will reimburse for the mileage and any reimbursable out-of-
pocket expenses incurred for these additional meetings.
2. Record number of miles (round trip) driven to attend meeting/ function.
The use of personal vehicles in the conduct of official District business
shall be reimbursed at the current Internal Revenue Service rate. The
Director's expense claim should indicate the nature of the trip. If a trip
begins at home, the District will reimburse the mileage from home to
destination and return mileage. District insurance does not cover personal
vehicles while they are being driven on District business. The reimbursement
rate is inclusive of an allowance for insurance costs. The District will
reimburse Directors for the deductible under their personal insurance policy
should they be involved in an accident while on District business. To be
eligible for reimbursement, each Director shall maintain a current California
driver’s license and at least the minimum vehicle liability insurance
required by State law or shall arrange for a driver who meets said standards.
The District will not reimburse the cost of travel of a personal nature taken
in conjunction with travel on official business.
Claim forms shall be submitted within 45 calendar days after the meeting
date. Expense claims requiring reimbursement to the District which are not
reconciled within 45 calendar days, shall be deducted from the next month’s
reimbursement.
No information on the Per Diem Claim Form may be designated as confidential
in nature. All expenses must be fully disclosed on the form.
EXHIBIT C
OTAY WATER DISTRICT
BOARD OF DIRECTORS
TRAVEL REQUEST FORM
Director: Date of Request:
Name and Location of Function:
Date(s) function to be held: -
Sponsoring Organization:
Request for Prepayment of Fees Related to the Function:
Expense Type Not Needed Pre-Payment
Requested
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses – Explain Below
Lodging Preference:
Explanation of Other
Expenses:
Signature of Director Date of Request
For Office Use Only Below This Line
Date of Board
Approval:
Expense Type Description Amount Pre-
Paid
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses
District Secretary Date Processed
EXHIBIT D
OTAY WATER DISTRICT
BOARD OF DIRECTORS
EXPENSE CLAIM FORM
Pay To: Period Covered:
Employee Number: From: To:
ITEMIZED REIMBURSEMENT CLAIMED
Date
Type of Reimbursement
Amount
TOTAL Reimbursement Claimed: $
Director Signature: Date:
GM Receipt: Date:
INSTRUCTIONS ON REVERSE
EXHIBIT D
INSTRUCTIONS FOR PREPARATION OF
BOARD OF DIRECTORS EXPENSE CLAIM FORM
The necessary expenses incurred while traveling on District business including
common carrier fares (economy class), automobile rental charges, District business
telephone calls, lodging, baggage handling, parking fees, meals, etc. will be
reimbursed when documented on the Director's Per Diem and Expense Claim Forms.
Receipts must be attached for all meal expenses. If a receipt is lost, the lost
receipt should be noted next to the expense and submitted to the President before
any reimbursement can be made. Receipts are required for the reimbursement of all
expenses.
All receipts must have the nature of the expense and the business purpose
noted on the receipt.
The District will not reimburse the cost of travel of a personal nature taken
in conjunction with travel on official business.
Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy
(Policy 8).
Any receipts that include costs of personal travel (e.g., hotel receipt for
employee and spouse) should identify what the cost would have been without
personal travel (e.g., single room rate as opposed to double room rate).
Claim forms shall be submitted within 45 calendar days after the expense was
incurred. Expense claims requiring reimbursement to the District which are
not reconciled within 45 calendar days, shall be deducted from the next month’s
reimbursement.
No information on the Expense Claim Form may be designated as confidential in
nature. All expenses must be fully disclosed on the form.
The following expenses are not reimbursable:
a. Alcoholic Beverages d. Laundry service
b. Parking or traffic violations e. Entertainment or recreation
c. In-room movies f. Expenses incurred by spouses,
family members, or guests.
ND: 4840-9653-1715, v. 2
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: March 6, 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 3-06-19.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
May 20, 2019 at 3:00 p.m.: Budget Workshop No. 2
BOARD WORKSHOPS:
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: March 6, 2019
SUBMITTED BY:
Dan Martin
Assistant Chief of Engineering
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Informational Item – Second Quarter Fiscal Year 2019 Capital
Improvement Program Report
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To update the Board about the status of all CIP project expenditures
and to highlight significant issues, progress, and milestones on
major projects.
ANALYSIS:
To keep up with growth and to meet our ratepayers' expectations to
adequately deliver safe, reliable, cost-effective, and quality water,
each year the District staff prepares a Six-Year CIP Plan that
identifies the District’s infrastructure needs. The CIP is comprised
of four categories consisting of backbone capital facilities,
replacement/renewal projects, capital purchases, and developer's
reimbursement projects.
The Second Quarter Fiscal Year 2019 update is intended to provide a
detailed analysis of progress in completing these projects within the
allotted time and budget of $24.52 million. Expenditures through the
Second Quarter totaled approximately $10.98 million. Approximately
45% of the Fiscal Year 2019 expenditure budget was spent (see
Attachment B).
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
No fiscal impact as this is an informational item only.
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."
LEGAL IMPACT:
None.
DM/RP:jf
P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2019\Q2\Staff Report\BD 03-06-19 Staff Report Second
Quarter FY 2019 CIP Report (DM-RP).docx
Attachments: Attachment A – Committee Action
Attachment B - Fiscal Year 2019 Second Quarter CIP
Expenditure Report
Attachment C – Presentation
ATTACHMENT A
SUBJECT/PROJECT:
VARIOUS
Informational Item – Second Quarter Fiscal Year 2019
Capital Improvement Program Report
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this item at a Committee Meeting held on February 21, 2019,
and the following comments were made:
Staff reviewed the PowerPoint presentation with the Committee
and indicated that the expenditures through the second quarter
of FY 2019 totaled $10.9 million, which is about 45% of the
District’s fiscal year budget. As a reminder, staff noted that
the District’s target for the second quarter is 36%.
Staff indicated that the District’s FY 2019 CIP budget consists
of 106 projects that total $24.5 million and is divided into
four categories:
o Capital Facilities= $2.1 million
o Replacement/Renewal= $21.5 million
o Capital Purchases= $0.9 million
o Developer Reimbursement= $15.0 thousand
The PowerPoint presentation included the following:
o Total Life-to-Date Expenditures
o CIP Budget Forecast vs. Expenditures
o Major CIP Projects
o CIP Projects in Construction
o Construction Contract Status of projects, contract amount
with allowances, net change orders, and percent of project
completion
o Consultant Contract Status of contract amounts, approve
payments to date, change orders, dates when contracts were
signed and the end date of contracts
Staff stated that during the second quarter of FY 2019 the rate
for Change Orders with Allowance Credit equaled to -0.7%.
Staff stated that a significant amount of expenditures for the
second quarter were due to the replacement/renewal of projects.
Attachment B of the staff report provides details of these
expenditures.
The Committee commended staff for their efforts in managing
projects, meeting the District’s fiscal year targets, and
maintaining change order rates.
Following the discussion, the Committee supported staffs’
recommendation and presentation to the full board as an informational
item.
FISCAL YEAR 2019 2ND QUARTER REPORT
(Expenditures through 12/31/2018)($000)
ATTACHMENT B
2019 12/31/18
CIP No.Description
Project
Manager
FY 2019
Budget Expenses Balance
Expense to
Budget %Budget Expenses Balance
Expense to
Budget %Comments
CAPITAL FACILITY PROJECTS -
P2040 Res - 1655-1 Reservoir 0.5 MG Cameron 5$ 21$ (16)$ 420%3,400$ 553$ 2,847$ 16%
Expenditures for this Fiscal Year are to update the
Environmental documents. Expenses are within project budget.
P2382 Safety and Security Improvements Payne 224 18 206 8%3,251 3,090 161 95%
Projects are on schedule for CIP closure at end of
Fiscal Year.
P2405 PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road Cameron 5 - 5 0%650 - 650 0%
This project is tied to P2553 and is driven by the
City of Chula Vista. Construction is scheduled for
FY 2022.
P2451 Otay Mesa Desalination Conveyance and Disinfection System Kennedy 10 4 6 40%3,975 3,825 150 96%
EIR/EIS complete and Presidential permit issued.
Continue meetings with DDW and AdR.
P2453 SR-11 Utility Relocations Marchioro 25 55 (30) 220%4,000 1,908 2,092 48%
Schedule driven by Caltrans. Caltrans scheduled to bid work Q3 FY 2019. Completion of construction
anticipated for FY 2021. Project expenditures within approved project budget.
P2460 I.D. 7 Trestle and Pipeline Demolition Beppler 20 - 20 0%600 5 595 1%
Environmental surveys proposed to be performed
in FY 2020 with demolition proposed for FY 2022.
P2485 SCADA - Infrastructure and Communications Replacement Kerr 162 45 117 28%2,428 2,071 357 85%On track for the remainder of the Fiscal Year.
P2494 Multiple Species Conservation Plan Coburn-Boyd 50 18 32 36%1,000 928 72 93%
The majority of this budget will be used in the remaining 2 quarters of FY 2019.
P2500 Padre Dam - Otay Interconnection Dehesa Valley Marchioro 5 - 5 0%140 - 140 0%
Project is driven by Padre Dam pipeline extension
to District boundary.
P2504 Regulatory Site Access Road and Pipeline Relocation Cameron 5 - 5 0%354 331 23 94%Project is driven by County Fire.
P2516 PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage Marchioro - - - 0%900 - 900 0%
No expenditures anticipated in FY 2019. Completion of construction anticipated FY 2024.
P2521 Large Meter Vault Upgrade Program Carey 25 1 24 4%620 308 312 50%
On track. Staff will be using the rest of the year to upgrade and fix various large meter vaults
throughout the District.
P2547 District Administration Vehicle Charging Stations Cameron 5 - 5 0%125 72 53 58%
The project is complete and will be closed at the
end of the Fiscal Year.
P2553 Heritage Road Bridge Replacement and Utility Relocation Cameron 80 3 77 4%1,430 29 1,401 2%
Project is in the Planning stage. Project is driven by
the City of Chula Vista's schedule for replacement,
the City has delayed the design, but has not
updated the construction schedule. At this time
construction is scheduled for FY 2022.
P2571 Datacenter Network- Data, Storage, and Infrastructure Enhancements Kerr 100 81 19 81%200 81 119 41%
Procured both hardware and implentation cost for
new District Firewall and other security
enhancements; remaining balance for CIP is
$100K. Will initiaite the second phase of
project/CIP next fiscal year.
P2572 Enterprise Resource Planning (ERP) Replacement Kerr - - - 0%500 - 500 0%Project set to start in FY 2021.
P2584 Res - 657-1 and 657-2 Reservoir Demolitions Marchioro - - - 0%1 - 1 0%
No expenditures anticipated in FY 2019. These
reservoirs are scheduled to be removed at the end of their useful life.
P2608 PL - 8-inch, 850 Zone, Coronado Ave, Chestnut/Apple Cameron 40 8 32 20%450 8 442 2%
Consultant Selection going to February Board,
planning work to begin in FY 2019 Q4.
P2611 Quarry Road Bridge Replacement and Utility Relocation Cameron 10 10 - 100%1,000 22 978 2%
Project is in the early Planning stage. Project is
driven by County's schedule for replacement.
P2612 PL - 12-inch, 711 Zone, Pas de Luz/Telegraph Canyon Rd Cameron 10 7 3 70%500 8 492 2%
Consultant Selection going to February Board,
planning work to begin in FY 2019 Q4.
P2614 485-1 Reservoir Interior/Exterior Coating Cameron - - - 0%895 - 895 0%No expenditures in FY 2019.
P2617 Lobby Security Enhancements Payne 145 - 145 0%150 1 149 1%
First of 4 installs to be completed FY 2019 Q3 with 2 and 3 during FY 2019 Q4; final to be completed
by FY 2020 Q2.
P2619 PS - Temporary Lower Otay Pump Station Redundancy Marchioro 200 104 96 52%1,800 201 1,599 11%
Delivery of redundant trailer and construction contract award to install redundant trailer scheduled
for June 2019. Completion of construction anticipated FY 2020. Project on track.
P2623 Central Area to Otay Mesa Interconnection Pipelines Combination Air/Vacuum Valve Replacements Marchioro 130 103 27 79%270 203 67 75%
Construction completed FY 2019 Q1. Project one year warranty scheduled to complete in FY 2020
Q1.
P2630 624-3 Reservoir Automation of Chemical Feed System Cameron 5 - 5 0%385 - 385 0%Budget for preliminary planning.
P2635 Vista Diego Hydropneumatic Tank Replacement Marchioro 10 - 10 0%400 - 400 0%
No expenditures anticipated in FY 2019.
Commencement of planning and design phase pending coordination with P2640.
P2636 980-2 PS Surge Tank Interior/Exterior Coating Cameron 150 5 145 3%175 5 170 3%
Construction expenditures expected late in FY 2019
Q4.
P2637 Survey Division Field GPS Equipment Replacement O'Donnell 35 35 - 100%35 35 - 100%Equipment purchased in FY 2019 Q1.
P2638 Buildings and Grounds Refurbishments Payne 57 - 57 0%114 - 114 0%
Exterior Admin paint to be completed FY 2019 Q4; landscape to be completed FY 2020 Q2.
FISCAL YEAR-TO-DATE, 12/31/18 LIFE-TO-DATE, 12/31/18
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FISCAL YEAR 2019 2ND QUARTER REPORT
(Expenditures through 12/31/2018)($000)
ATTACHMENT B
2019 12/31/18
CIP No.Description
Project
Manager
FY 2019
Budget Expenses Balance
Expense to
Budget %Budget Expenses Balance
Expense to
Budget %Comments
FISCAL YEAR-TO-DATE, 12/31/18 LIFE-TO-DATE, 12/31/18
P2639 Vista Diego Hydropneumatic Pump Station Replacement Marchioro 5 - 5 0%175 - 175 0%
No expenditures anticipated in FY 2019.
Commencement of planning and design phase pending coordination with P2640.
P2640 Portable Trailer Mounted VFD Pumps Marchioro 30 30 - 100%400 30 370 8%
Board award for purchase order to procure trailer
anticipated Q4 FY 2019. Project on track.
P2641 Rancho Jamul Hydropneumatic Tank Replacement Marchioro 1 - 1 0%300 - 300 0%
No expenditures anticipated in FY 2019.
Commencement of planning and design phase
pending coordination with P2040 and P2640.
P2642 Rancho Jamul Pump Station Replacement Marchioro 5 - 5 0%2,500 - 2,500 0%
No expenditures anticipated in FY 2019. Completion of construction anticipated FY 2024.
P2643 980-1 Pump Station Surge Tanks Replacement Marchioro - - - 0%350 - 350 0%
No expenditures anticipated in FY 2019.
Completion of construction anticipated FY 2024.
P2644 803-1 Pump Station Surge Tank Replacement Marchioro - - - 0%350 - 350 0%
No expenditures anticipated in FY 2019.
Completion of construction anticipated FY 2024.
P2645 Rolling Hills Hydropneumatic Tank Interior/Exterior Coating Cameron 5 - 5 0%225 - 225 0%Budget for early planning.
P2646 North District Area Cathodic Protection Improvements Marchioro - - - 0%800 - 800 0%
No expenditures anticipated in FY 2019. Completion of construction anticipated FY 2024.
P2647 Central Area Cathodic Protection Improvements Marchioro - - - 0%1,000 - 1,000 0%
No expenditures anticipated in FY 2019.
Completion of construction anticipated FY 2023.
P2648 Otay Mesa Area Cathodic Protection Improvements Marchioro 40 1 39 3%400 1 399 0%
Advanced planning work will begin FY 2019 Q3.
Design scheduled for FY 2020.
P2649 HVAC Equipment Purchase Payne 21 10 11 48%130 10 120 8%
OPS HVAC unit to be replaced in FY 2019 Q4;
subsequent replacement to follow per CIP
schedule.
R2110 RecPS - 944-1 Optimization and Pressure Zone Modifications Marchioro 25 10 15 40%200 148 52 74%
Pressure reducing station work completed
underbudget FY 2019 Q1. Project on track.
R2116 RecPL - 14-Inch, 927 Zone, Force Main Improvements Marchioro 24 18 6 75%2,159 2,142 17 99%
Construction completed FY 2018 Q3. Project one year warranty scheduled to complete in FY 2019
Q3.
R2118 Steele Canyon Sewer PS Large Solids Handling Improvements Beppler 105 5 100 5%175 38 137 22%
Project awarded in FY 2019 Q2 and work to be
performed in FY 2019 Q3. Budget increased to $175K with award of contract.
R2120 RWCWRF Filtered Water Storage Tank Improvements Beppler 50 - 50 0%500 29 471 6%
Project to be packaged with the coating of another
storage tank scheduled for FY 2020.
R2123 Repurpose Otay Mesa Recycled Water Lines Beppler 5 - 5 0%350 - 350 0%Planning work to begin in FY 2019 Q3.
R2125 RecPRS - 927/680 PRS Improvements, Otay Lakes Road Marchioro 45 9 36 20%200 12 188 6%
Project scope will be reduced as part of FY2020
budget process.
R2146 Recycled Pipeline Cathodic Protection Improvements Marchioro 20 - 20 0%600 - 600 0%
Planning phase scheduled to begin late FY 2019.
Completion of construction anticipated FY 2022.
R2149 680-1R PS Surge Tank Interior/Exterior Coating Cameron 5 - 5 0%175 - 175 0%Budget for early planning.
R2150 RWCWRF - Secondary Chlorine Analyzer and Feed System Beppler 40 6 34 15%45 6 39 13%Work to be completed by FY 2019 Q4.
S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Beppler 50 - 50 0%1,800 1,111 689 62%
This CIP reimburses the County for work on transportation pipeline rehabilitation, dependent
upon County scheduling.
S2027 Rancho San Diego Pump Station Rehabilitation Beppler 5 1 4 20%3,500 3,050 450 87%
Construction completed in FY 2019 Q1. Final
budget adjustment with County to be confirmed in FY 2019 Q3.
S2043 RWCWRF Sludge Handling System Beppler 5 - 5 0%51 40 11 78%
Review draft report with latest Metro cost
projections that include Pure Water Phase 1 spending to confirm assumptions during FY 2019
Q3.
S2047 Asset Management - Info Master Sewer Implementation Zhao 28 - 28 0%58 38 20 66%
No expenditures in FY 2019. Project start has been moved to FY 2020.
S2061 RWCWRF Aeration Controls Consolidation & Optimization Upgrades (S)Beppler 10 - 10 0%190 - 190 0%
Prepare scope of work in FY 2019 Q4 after aeration panels replacement and confirmation of aeration
system operation.
S2065 RWCWRF - TOC Monitor Beppler 30 23 7 77%30 23 7 77%Installation completed.
S2067 RWCWRF Roofing Replacement and Natural Light Enhancement Payne 20 - 20 0%165 - 165 0%
Consultant engaged in FY 2019 Q3 ; TP replacement FY 2020 Q1.
Total Capital Facility Projects Total:2,087 631 1,456 30%46,576 20,362 26,214 44%
REPLACEMENT/RENEWAL PROJECTS
P2083 PS - 870-2 Pump Station Replacement Marchioro 7,900 3,430 4,470 43%18,950 9,788 9,162 52%Construction on track for completion in FY 2020 Q2.
P2174 PS - 1090-1 Pump Station Replacement (400 gpm)Marchioro 150 3 147 2%2,500 8 2,492 0%
Design scheduled for FY 2020. Advanced planning
work will begin FY 2019 Q3 pending coordination
with P2640.
P2400 PL - 20-Inch Pipeline Replacement, 711 Zone, Otay Lakes Road - at Santa Paula Marchioro - - - 0%2,280 - 2,280 0%Planning phase scheduled for FY 2020.
P2507 East Palomar Street Utility Relocation Cameron 5 3 2 60%735 728 7 99%Waiting for reimbursement from Caltrans.
P2508 Pipeline Cathodic Protection Replacement Program Marchioro 542 136 406 25%1,250 859 391 69%Construction on track for completion in FY 2019 Q3.
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FISCAL YEAR 2019 2ND QUARTER REPORT
(Expenditures through 12/31/2018)($000)
ATTACHMENT B
2019 12/31/18
CIP No.Description
Project
Manager
FY 2019
Budget Expenses Balance
Expense to
Budget %Budget Expenses Balance
Expense to
Budget %Comments
FISCAL YEAR-TO-DATE, 12/31/18 LIFE-TO-DATE, 12/31/18
P2529 711-2 Reservoir Interior & Exterior Coating Cameron 5 4 1 80%820 807 13 98%Budget is for warranty repairs; scheduled for Q3.
P2530 711-1 Reservoir Interior & Exterior Coating Cameron 5 5 - 100%980 958 22 98%Budget is for warranty repairs; scheduled for Q3.
P2531 944-1 Reservoir Interior & Exterior Coating Cameron 5 - 5 0%345 321 24 93%Budget is for warranty repairs; scheduled for Q3.P2532 944-2 Reservoir Interior & Exterior Coating Cameron 5 - 5 0%960 940 20 98%Budget is for warranty repairs; scheduled for Q3.
P2533 1200-1 Reservoir Interior & Exterior Coating Cameron 5 - 5 0%810 7 803 1%Budget for preliminary planning.
P2534 978-1 Reservoir Interior & Exterior Coating Cameron 5 1 4 20%650 595 55 92%
Construction completed FY 2018. Project is in the two year warranty period.
P2535 458-2 Reservoir Interior & Exterior Coating & Upgrades Cameron 5 - 5 0%810 781 29 96%Budget is for warranty repairs; scheduled for Q3.
P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations Cameron 45 10 35 22%1,090 937 153 86%
Project is driven by SANDAG. Expenditures within
overall project budget.
P2543 850-1 Reservoir Interior/Exterior Coating Cameron 5 2 3 40%875 9 866 1%Budget for preliminary planning
P2544 850-2 Reservoir Interior/Exterior Coating Cameron 5 13 (8) 260%980 834 146 85%
Construction completed FY 2018. Project is in the
two year warranty period. Project expenditures
within approved project budget.
P2545 980-1 Reservoir Interior Exterior Coating Cameron 5 5 - 100%1,215 1,194 21 98%Budget is for warranty repairs; scheduled for Q3.
P2546 980-2 Reservoir Interior/Exterior Coating Cameron 695 340 355 49%1,690 1,686 4 100%
More work was completed in FY 2018 Q4 than
anticipated. Expenditures within budget. Project
accepted in November 2018, and is in the 2 year
warranty period.
P2555 Administration and Operations Parking Lot Improvements Cameron 25 163 (138) 652%985 746 239 76%
Phase II construction expenditures were expected
to be completed in FY 2018, but the Contractor was
delayed by an unresponsive sub-contractor.
Expenditures for FY 2019 will be over the Fiscal
Year budget, but all expenditures will be within the
approved CIP budget.
P2557 520 Res Recirculation Pipeline Chemical Supply and Analyzer Feed Replacement Project Beppler 60 28 32 47%125 88 37 70%
Project to be completed by OPS staff in FY 2019 Q3.
P2561 Res - 711-3 Reservoir Cover/Liner Replacement Marchioro 2,195 1,034 1,161 47%2,300 1,087 1,213 47%Construction on track for completion in FY 2019 Q3.
P2562 Res - 571-1 Reservoir Cover/Liner Replacement Marchioro 170 44 126 26%2,900 2,707 193 93%
As part of the larger 870-2 Pump Station project,
the 571-1 Reservoir was placed back into service April 2018.
P2563 Res - 870-1 Reservoir Cover/Liner Replacement Marchioro 1 - 1 0%1,000 3 997 0%
Replacement scheduled for FY 2022 to coincide
with completion of new 870-2 Pump Station.
Existing cover/liner materials analyzed by
laboratory in FY 2017 suggested sufficient
remaining life.
P2565 803-2 Reservoir Interior/Exterior Coating & Upgrades Cameron 755 48 707 6%1,200 48 1,152 4%
Construction to begin in December 2018. Project is on schedule.
P2566 520-2 Reservoir Interior/Exterior Coating & Upgrades Cameron 10 - 10 0%1,500 - 1,500 0%This project will be closed.
P2567 1004-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%905 - 905 0%No expenditures for FY 2019.
P2573 PL - 12-Inch Pipeline Replacement, 803 Zone, Hillsdale Road Beppler 150 241 (91) 161%2,580 2,571 9 100%
Construction completed in FY 2019 Q1. Project
expenditures are within the approved project budget.
P2574 PL - 12-Inch Pipeline Replacement, 978 Zone, Vista Vereda Beppler 500 139 361 28%1,640 464 1,176 28%
Project awarded in FY 2019 Q2 and construction to
start in FY 2019 Q3.
P2578 PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 gpm Marchioro - - - 0%10,000 - 10,000 0%
Replacement scheduled for FY 2023-2024 to coincide with development of Villages 4, 8, 9, & 3.
P2593 458-1 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%840 - 840 0%No expenditures for FY 2019.
P2594 Large Meter Replacement Carey 95 13 82 14%625 354 271 57%
Majority of change outs will be completed in FY
2019 Q3 & Q4.
P2604 AMR Change Out Carey 1,800 1,770 30 98%6,290 3,964 2,326 63%
On track. Majority of change outs will be completed
in FY 2019 end of Q3.
P2605 458/340 PRS Replacement, 1571 Melrose Ave Marchioro 75 14 61 19%325 18 307 6%
Planning and design on track for completion FY 2019. Construction scheduled for FY 2020.
P2607 Douglas Ave SWA and OWD Interconnection Upgrade Beppler 37 3 34 8%50 3 47 6%
SWA design at 50% during FY 2019 Q2. Completion of design expected in FY 2019 Q4 with
construction in FY 2020.
P2609 PL - 8-inch, 1004 Zone, Eucalyptus St, Coronado/Date/La Mesa Cameron 10 8 2 80%540 8 532 1%
Consultant Selection going to February Board, planning work to begin in FY 2019 Q4.
P2610 Valve Replacement Program - Phase 1 Cameron 95 2 93 2%275 22 253 8%
Delivery of this project is anticipated by FY 2019 Q4
in coordination with OPS.
P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande Beppler 20 6 14 30%1,200 6 1,194 1%
Design consultant selection occurred during FY
2019 Q2. Preliminary design to be performed in FY
2020.
P2616 PL - 12-Inch Pipeline Replacement, 978 Zone, Pence Dr/Vista Sierra Dr Beppler 180 10 170 6%2,500 25 2,475 1%
Design consultant selection occurred during FY
2019 Q2. Preliminary design to be performed in FY
2020.
P2625 PL - 12-inch, 978 Zone, Hidden Mesa Road Beppler 1,000 85 915 9%2,210 220 1,990 10%
Project awarded in FY 2019 Q2 and construction to
start in FY 2019 Q3.
P2627 458/340 PRS Replacement, 1505 Oleander Ave Marchioro 75 13 62 17%325 13 312 4%
Planning and design on track for completion FY
2019. Construction scheduled for FY 2020.
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FISCAL YEAR 2019 2ND QUARTER REPORT
(Expenditures through 12/31/2018)($000)
ATTACHMENT B
2019 12/31/18
CIP No.Description
Project
Manager
FY 2019
Budget Expenses Balance
Expense to
Budget %Budget Expenses Balance
Expense to
Budget %Comments
FISCAL YEAR-TO-DATE, 12/31/18 LIFE-TO-DATE, 12/31/18
P2631 1485-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%55 - 55 0%No expenditures in FY 2019.
P2633 Otay Mesa Rd and Alta Rd Water Appurtenances Relocations Beppler 10 2 8 20%500 2 498 0%
The District has shifted the required relocation to
developers and will close out this project at the end of the Fiscal Year.
P2634 Rolling Hills Hydropneumatic Pump Station Jockey Pump Replacement Anderson 35 35 - 100%35 35 - 100%Project completed in FY 2019 Q2.
P2651 Automatic Data Processing Koeppen 20 - 20 0%20 - 20 0%
ADP is incurring some challenges with the system design. This project will likely be shifted to FY 2020 budget.
R2121 Res - 944-1 Reservoir Cover/Liner Replacement Marchioro 1 - 1 0%1,400 19 1,381 1%
Replacement scheduled for FY 2021 since dive
inspection completed in FY 2016 suggested five
years remaining life.
R2139 RWCWRF - Filter Troughs Replacement Beppler 5 34 (29) 680%40 34 6 85%Construction completed during FY 2019 Q2.
R2143 AMR Change Out Carey 165 110 55 67%525 215 310 41%
Majority of change outs for FY 2019 will be
completed by end of FY 2019 Q3.
R2145 RWCWRF - Filter Media and Nozzles Replacement Beppler 130 2 128 2%130 2 128 2%Construction to be performed during FY 2019 Q3.
R2147 RWCWRF Fuel Lines Replacement Marchioro 150 39 111 26%175 39 136 22%
Design and construction on track for completion FY 2019.
R2148 Large Meter Replacement - Recycled Carey 8 - 8 0%58 - 58 0%
Large meter testing began in Q2 and change outs
scheduled for FY 2019 Q3 and Q4.
R2151 RWCWRF - Bulk Chlorine Vapor Scrubber System Refurbishment Lintner 35 - 35 0%37 - 37 0%
This project is scheduled for the end of January 2019
through February 2019. P.O. created 9/12/2018 for
Integrity Municipal Systems.
S2024 Campo Road Sewer Main Replacement Beppler 4,000 2,162 1,838 54%10,530 7,206 3,324 68%
Construction on track for substantial completion in FY 2019 Q4.
S2044 Trenchless Sewer Rehabilitation Beppler 5 - 5 0%550 476 74 87%
One year warranty was over in FY 2019 Q1. CIP to
be closed.
S2045 Fuerte Drive Sewer Relocation Beppler 10 18 (8) 180%370 278 92 75%Construction completed in FY 2019 Q1.
S2046 RWCWRF - Aeration Panels Replacement Beppler 100 79 21 79%450 171 279 38%
Replacement panels delivered in FY 2019 Q2 with installation to be performed in FY 2019 Q3.
S2048 Hillsdale Road Sewer Repairs Beppler 10 77 (67) 770%720 691 29 96%
Construction completed in FY 2019 Q1. Invoicing
carried over from FY 2018.
S2049 Calavo Basin Sewer Rehabilitation - Phase 2 Beppler 20 - 20 0%1,000 7 993 1%
Planning to begin in FY 2019 Q3 during budget
process.
S2050 Rancho San Diego Basin Sewer Rehabilitation - Phase 2 Beppler 20 - 20 0%1,300 - 1,300 0%
Planning to begin in FY 2019 Q3 during budget
process.
S2051 RWCWRF - Headworks Improvements Beppler 165 31 134 19%250 106 144 42%
Project awarded in FY 2019 Q2; construction in FY 2019 Q3.
S2053 RWCWRF - Sedimentation Basins Weirs Replacement Beppler 5 51 (46) 1020%60 53 7 88%Construction completed during FY 2019 Q2.
S2054 Calavo Basin Sewer Rehabilitation - Phase 3 Beppler - - - 0%1,300 - 1,300 0%No action planned for this fiscal year.
S2060 Steele Canyon Pump Station Replacement Beppler - - - 0%200 - 200 0%No action planned for this fiscal year.
S2066 Rancho San Diego Basin Sewer Rehabilitation - Phase 3 Beppler - - - 0%290 - 290 0%No action planned for this fiscal year.
Total Replacement/Renewal Projects Total:21,534 10,213 11,321 47%97,250 42,133 55,117 43%
CAPITAL PURCHASE PROJECTS
P2282 Vehicle Capital Purchases Rahders 520 132 388 25%5,928 4,277 1,651 72%
$286,625 for equipment + $20,000 for outfitting will
be issued in Q4 FY 2019.
P2286 Field Equipment Capital Purchases Rahders 363 - 363 0%2,250 1,470 780 65%
$38,909 for equipment + $10,000 for outfitting will
be issued in Q3 FY 2019; $304,173 for equipment
+ $10,000 for outfitting will be issued in Q4 FY
2019.
Total Capital Purchase Projects Total:883 132 751 15%8,178 5,747 2,431 70%
DEVELOPER REIMBURSEMENT PROJECTS
P2595 PL - 16-inch, 624 Zone, Village 3N - Heritage Road, Main St/Energy Way Beppler 1 - 1 0%150 - 150 0%Project under construction.
R2084 RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media Beppler 14 - 14 0%365 1 364 0%Project under construction.
Total Developer Reimbursement Projects Total:15 - 15 0%515 1 514 0%
122 GRAND TOTAL 24,519$ 10,976$ 13,543$ 45%152,519$ 68,243$ 84,276$ 45%
Y:\Board\CurBdPkg\ENGRPLAN\2019\BD 03-06-2019\Q2 CIP Update(DanM)\FY19 2nd qtr exp-FINAL-rev1.xlsx Page 4 of 4 2/6/2019
Otay Water District
Capital Improvement Program
Fiscal Year 2019
Second Quarter
(through December 31, 2018)
ATTACHMENT C
870-2 Pump Station –Station Construction
12/09/2018
Background
The approved CIP Budget for Fiscal Year 2019
consists of 106 projects that total $24.5 million.
These projects are broken down into four categories.
1.Capital Facilities $ 2.1 million
2.Replacement/Renewal $21.5 million
3.Capital Purchases $ 0.9 million
4.Developer Reimbursement $ 15.0 thousand
Overall expenditures through the Second Quarter of
Fiscal Year 2019 totaled $10.9 million, which is
approximately 45% of the Fiscal Year budget.
2
Fiscal Year 2019
Second Quarter Update
($000)
CIP
CAT Description FY 2019
Budget
FY 2019
Expenditures
%
FY 2019
Budget
Spent
Total
Life-to-Date
Budget
Total
Life-to-Date
Expenditures
%
Life-to-Date
Budget
Spent
1 Capital
Facilities $2,087 $631 30%$46,576 $20,362 44%
2 Replacement/
Renewal $21,534 $10,213 47%$97,250 $42,133 43%
3 Capital
Purchases $883 $132 15%$8,178 $5,747 70%
4 Developer
Reimbursement $15 $0 0%$515 $1 0%
Total:
$24,519 $10,976 45%$152,519 $68,243 45%
3
Fiscal Year 2019
Second Quarter
CIP Budget Forecast vs. Expenditures
4
$10,976,000
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FISCAL YEAR PERIOD IN MONTHS
Budget Forecast
Total Expenditures
$24,519,000
5
CIP Projects in Construction
870-2 Pump Station
Replacement Project
(P2083/P2562)
Replacement of existing
870 High Head and
Low Head Pump
Stations.
Remove and Replace
the existing 571-1
Reservoir liner and
cover.
$21.65M Budget
Start: July 2017
Completion: October
2019 870-2 Pump Station –Construction of
Station Roof Support System
Division No. 2
Location:
North East corner
of Otay Mesa.
Existing 571-1
Reservoir and High
Head/Low Head
Pump Station site.
6
12/09/2018
CIP Projects in Construction
803-2 Reservoir
Interior/Exterior
Coating & Upgrades
Project (P2565)
Remove and replace
existing interior and
exterior coatings.
Construct structural
upgrades to increase
the service life.
$1.20M Budget
Start: December 2018
Completion: June
2019 803-2 (2.0 MG) –Inspection Blast of Interior
Roof System Planned for Replacement
Division No. 5
Location:
803-2 Reservoir is
located adjacent
to Willow Glen
Drive.
7
12/14/2018
CIP Projects in Construction
711-3 Floating Cover
and Liner Replacement
(P2561)
Remove and replace
existing floating cover
and liner with new
reinforced
Chlorosulfonated
Polyethylene (CSPE)
geomembrane cover
and liner.
$2.3M Budget
Start: August 2018
Completion: April
2019 711-3 (16.0 MG) –Replacement of
Geofabric
Division No. 5
Location:
711-3 is located at
the north end of
Hunte Parkway in
Chula Vista.
8
12/23/2018
CIP Projects in Construction
Campo Road Sewer
Replacement Project
(S2024)
Replace existing 10-
inch sewer with 7,420
linear feet of new 15-
inch sewer.
Reconnection of sewer
laterals.
Night work.
$10.10M Budget
Start: July 2017
Estimated Completion:
June 2019 Eastbound Campo Road / SR 94 –
Night Work Sewer Main Installation
Division No. 5
Location:
Campo Road (SR
94) between
Rancho San Diego
Village Shopping
Center and Rancho
San Diego Towne
Center.
9
11/27/2018
CIP Projects in Construction
Pipeline Cathodic
Protection
Improvements Phase II
(P2508)
Installation of pipeline
cathodic protection
improvements at Willow
Glen, Sweetwater
Bridge, Proctor Valley
Road, Salt Creek, and
Interconnect Pipeline.
$1.25M Budget
Start: October 2018
Estimated Completion:
March 2019 Interconnect Pipeline Site –Bonding Wire
Installation within Flow Meter Vault
Division Nos. 1 -3,
& 5
Location:
Various Locations.
10
11/06/2018
CIP Projects in Construction
OWD Admin &
Operations Parking
Lot Improvements
Project -Phase 2
(P2555)
Seal parking lots.
Install parking stalls
and stripe.
Install equipment
canopy in Operations
parking lot.
$0.99M Budget
Start: May 2018
Completion:
December 2018 Operations Parking Lot
Equipment Canopy Construction
Division No. 3
Location:
District
Administration and
Operations lots -
Sweetwater
Springs Blvd.,
Spring Valley.
11
12/14/2018
CIP Projects in Construction
Vista Vereda and Hidden
Mesa Road Water Line
Replacement
(P2574/P2625)
Replace existing
waterlines.
Construct 3,700 LF of
new 12-inch waterline.
Construct 400 LF of
new 8-inch waterline.
$3.17M Budget
Start: December 2018
Estimated Completion:
July 2019 Hidden Mesa Road –Grind Existing
Asphalt in Preparation for Excavation
Division No. 5
Location:
Hidden Mesa Road
and Vista Vereda in
El Cajon.
12
12/20/2018
Construction Contract Status
13
PROJECT
TOTAL %
S2045 Fuerte Drive Sewer
Relocation
Burtech Pipeline,
Inc.$169,490 $193,690 $4,082 2.4%$179,572 $179,572 -7.3%100.0%July 2018
P2573
S2048
Hillsdale Road 12-
inch Waterline
Replacement and
Sewer Repairs ***
TC Construction
Company, Inc.$2,245,060 $2,396,060 $332,569 14.8%$2,591,949 $2,591,949 8.2%100.0%July 2018
P2623 Interconnect AirVac
Valve Replacement
M-Rae Engineering
Inc.$78,000 $83,000 $0 0.0%$79,310 $79,310 -4.4%100.0%August
2018
P2555
OWD Administration
& Operations
Parking Lot
Improvements Ph. II
- Pavement
Restoration
Frank and Son
Paving, Inc.$152,646 $165,046 $0 0.0%$152,646 $86,191 -7.5%56.5%December
2018
P2546
980-2 Reservoir
Interior/Exterior
Coating & Upgrades
Simpson
Sandblasting &
Special Coating, Inc.
$998,502 $1,146,377 $229,249 23.0%$1,375,626 $1,375,576 20.0%100.0%September
2018
P2508
Pipeline CP
Improvements -
Phase II
M-Rae Engineering
Inc.$329,500 $347,000 $0 0.0%$333,119 $76,719 -4.0%23.0%March 2019
CURRENT
CONTRACT
AMOUNT
TOTAL
EARNED
TO DATE
CIP NO.PROJECT TITLE CONTRACTOR BASE BID
AMOUNT
CONTRACT
AMOUNT W/
ALLOWANCES
% CHANGE
ORDERS W/
ALLOWANCE
CREDIT**
%
COMPLETE
EST.
COMP.
DATE
NET CHANGE ORDERS
LTD*
Construction Contract Status
14
PROJECT
TOTAL %
FY 2019 CIP CONSTRUCTION PROJECTS
CURRENT
CONTRACT
AMOUNT
TOTAL
EARNED
TO DATE
CIP NO.PROJECT TITLE CONTRACTOR BASE BID
AMOUNT
CONTRACT
AMOUNT W/
ALLOWANCES
% CHANGE
ORDERS W/
ALLOWANCE
CREDIT**
%
COMPLETE
EST.
COMP.
DATE
NET CHANGE ORDERS
LTD*
S2051/
R2118
RWCWRF
Headworks
Improvements and
Steele Bridge
Sewage PS Wet
Well Improvements
Tharsos Inc.$201,665 $223,490 $0 0.0%$201,665 $0 -9.8%0.0%April 2019
P2561
Reservoir 711-3
Floating Cover and
Liner Replacement
Layfield USA
Corporation $1,947,000 $1,997,000 $0 0.0%$1,952,540 $1,003,250 -2.2%51.4%April 2019
P2565
803-2 Reservoir
Interior/Exterior
Coating & Upgrades
Advanced Industrial
Services Inc.$737,690 $951,690 $0 0.0%$737,690 $0 -22.5%0.0%June 2019
P2574/
P2625
Vista Vereda and
Hidden Mesa Road
Water Line
Replacement
Cass-Arrieta
Construction $2,718,239 $2,848,364 $0 0.0%$2,718,239 $69,875 -4.6%2.6%July 2019
S2024
Campo Road Sewer
Replacement
Project
Wier Construction
Corporation $7,623,146 $7,816,646 $230,458 3.0%$7,967,604 $5,553,201 1.9%69.7%June 2019
P2083
P2562
870-2 Pump Station
Replacement/ 571-1
Reservoir Liner and
Cover Replacement
Pacific Hydrotech
Corporation $16,500,900 $16,925,900 $26,270 0.2%$16,570,421 $9,441,452 -2.1%57.0%October
2019
TOTALS:$33,701,838 $35,094,263 $822,628 2.4%$34,860,380 $20,457,095 -0.7%
***PROJECT DOES NOT INCLUDE $149,280 OF ADDITIONAL SCOPE FOR SDRMA FUNDED PAVEMENT, SIDEWALK, CURB AND GUTTER REPAIRS ON HILLDALE ROAD
**THIS CHANGE ORDER RATE INCLUDES THE CREDIT FOR UNUSED ALLOWANCES
*NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT
Consultant Contract Status
15
Consultant Contract Status
16
Consultant Contract Status
17
QUESTIONS?
18
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: March 6, 2019
PROJECT: Various DIV. NO. ALL
SUBMITTED BY: Adolfo Segura, Chief of Administrative Services
APPROVED BY: Mark Watton, General Manager
SUBJECT: FY19 MID-YEAR REPORT FOR THE DISTRICT’S FY19-22 STRATEGIC PLAN
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To provide a mid-year report on the District’s FY19-22 Strategic
Performance Plan for FY19.
ANALYSIS:
Summary
The current Otay Water District Strategic Plan is a four-year plan
ranging from the start of FY19 through the end of FY22. This report
details the mid-year results for the first year of our four-year plan.
Objectives – Target 90%
Strategic Plan objectives are designed to ensure the District is
executing mission designed objectives and making the appropriate high-
level changes necessary to guide the agency’s efforts to meet new
challenges and positively adapt to change. FY19 mid-year results are on
target at 91%, with 31 of 34 active items completed or on schedule. One
objective is on hold and two are not on target.
Objectives Not on Target
1. Evaluate, and if beneficial, implement Cloud payroll service – Due
to complexities of the design requirements, ADP is researching
options to meet the District’s work schedule requirements, FLSA
calculations, and time keeping requirements. Work on the project
has paused until ADP can confirm they can meet the District’s
functional requirements.
2. Customer electronic communication and outreach – Due to the
retirement of the previous Customer Service Supervisor, staff has
not explored exit surveys, options to expand text messaging to
customers, as well as complete the evaluation form for customer
service. This will not be completed until the new Supervisor is
trained.
The following objective has been put on hold:
1. Streamline contract and purchase order (contract) management and
lifecycle – Staff has reviewed limitations of Eden’s contract
capabilities regarding notification and visibility. At this time,
workflow implementation has not matured enough for an assessment of
its capabilities to enhance contract management. Staff will continue
to explore options with Tyler.
Key Performance Indicators (KPI’s) – Target 75%
KPI’s are designed to track the District’s day-to-day performance. These
items measure the effectiveness and efficiency of essential operational
services. The overall goal is that at least 75% of these KPI’s be rated
“on target”. FY19 mid-year results are above target with 32 of 35 (91%)
items achieving the desired level or better.
0
2
4
6
8
10
12
14
16
18
ON SCHEDULE BEHIND ON HOLD NOT STARTED
31
2
1
15
On Schedule Behind On Hold Not Started
31 of 34 Active Objectives are On Target (91%)
KPI’s are based on established AWWA performance benchmarks. Seven
measures are reported at year’s end:
Water Debt Coverage
Sewer Debt Coverage
Reserve Level
Accounts Per FTE
Leak Detection Program
Injury Incident Rate
Enterprise Technology Services
KPI’s Not On Target
1. Overtime Percentage – Year-to-date expenditures amounted to $99,928
vs. the budgeted amount of $73,700. Overtime exceeded budget due to
multiple main breaks in the second quarter.
2. Recycled Water Shutdown Testing – Year-to-date 14 sites have been
tested vs. the targeted amount of 22.5 sites. The Recycled Water team
is currently in a transition period due to staff retirements. An
action plan has been developed to reach the target by the end of FY19.
3. System Valve Exercising Program – Year-to-date number of valves
exercised is 1483 vs. the targeted amount of 1540. The target was not
met due to unplanned emergencies and weather.
0
2
4
6
8
10
12
14
16
18
ON TARGET NOT ON TARGET ANNUAL MEASURE
32
3
7
On Target Not on Target Annual Measure
32 of 35 Key Performance Indicators are On Target (91%)
Next Steps
Staff will continue to execute the plan’s objectives and key performance
indicators and track emerging trends.
Committee Reports – Slideshow
The Strategic Plan results are presented to both the Finance,
Administration, and Communications Committee and the Engineering,
Operations, and Water Resources Committee with a specific focus on the
most relevant information for each Committee (see “Attachment B”).
Strategic Plan is available on the Board VPN
All of the Strategic Plan results and associated details are provided
in a real-time, interactive web-based application available to the Board
via secured remote access, VPN. The District Secretary can facilitate
any password or access issues.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Informational item only; no fiscal impact.
STRATEGIC GOAL:
Strategic Plan and Performance Measure reporting is a critical element
in providing performance reporting to the Board and staff.
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report
Attachment B – PowerPoint Presentation
5
ATTACHMENT A
SUBJECT/PROJECT: FY19 MID-YEAR REPORT FOR THE DISTRICT’S FY19-22 STRATEGIC
PLAN
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this item
at a meeting held on February 19, 2019 and the following comments were
made:
Staff presented the Fiscal Year 2019 mid-year Strategic Plan update.
Staff reviewed information in the staff report.
It was indicated that the District’s Strategic Plan is developed
with the Balanced Scorecard (BSC) strategic planning and performance
management methodology, which is used and adopted by businesses
across the globe. The BSC performance system is now in its 4th
generation, which focuses on managing strategy, people, and
performance in a changing environment and alignment of business
activities to the vision and strategy of the organization with goals
and measures in four basic areas: customer, financial, internal
business processes, and learning and growth.
Staff noted that AWWA published a list of business drivers affecting
water utilities throughout the nation which they developed from a
survey of 200 utilities across the five regions and the top three
drivers were: 1) Regulations and Standards; 2) Customer
Expectations; and 3) Financial [please reference slide 4 of the
attached powerpoint presentation]. This survey helps validate the
direction, execution and planning the District has been
accomplishing through its Strategic Plan over the years.
The Committee reviewed the results of each goal and objective
measures at the fiscal year’s mid-point as presented in staff’s
powerpoint presentation.
6
Staff stated that based on metrics performance from the previous
strategic plan, the baseline for certain metrics would be raised
from the 25%/50% to 75% percentile in order to track and present
performance metrics at higher levels. The Committee suggested that
staff highlight these changes for the upcoming board presentation.
Following the committee meeting, the requested changes were
reflected on slides 13, 14, 39 and 41.
The Committee suggested that the Financial Objective be modified to
read: “Plan and execute sound financial activities that are
essential to running and sustaining District operations, with the
lowest possible impact cost to customers.
Staff discussed the measure Easement Evaluation and Field Inspection
and indicated that testing of approximately 2,300 easements were
completed by the end of the second quarter.
The Committee discussed the measure O&M Cost Per Account and it was
indicated that the cost measured is only direct operating costs and
does not include the cost of water, electricity, etc. The measure
lets staff know if the District is on budget overall with its
operating costs.
It was noted that the District has maintained its place as the 6th
lowest cost sewer provider within the County among the 28 sewer
providers this fiscal year. With regard to water services, the
District is the 4th lowest cost water provider within the County
among 22 providers. The District was the 3rd lowest provider last
fiscal year.
Upon completion of the discussion, the committee supported staff’s
recommendation and presentation to the full board as an informational
item.
1
STRATEGIC PLAN
FY19 MID-YEAR REPORT
2
Introduction
3OWD Strategic Plan FY19-22
Customer
Financial
Internal Business
Processes
Learning and
Growth
$
The District’s Strategic Plan is developed using Kaplan &Norton’s Balanced Scorecard
(BSC)strategic planning and performance management system,which is used and
widely adopted by businesses across the globe.The BSC performance system is now in
its fourth-generation,which focuses on managing strategy,people,and performance in a
changing environment.In brief,the BSC emphasizes alignment of business activities to
the vision and strategy of the organization with goals and measures in four basic areas:
customer,financial,internal business processes,and learning and growth.
The District’s strategic plan also integrates elements from the five key water utility areas
of structure:organizational development,business operations,customer relations,water
operations,and wastewater operations.
4AWWA 2018 Business Drivers
5Strategies & Objectives
“S&O’s are actionable steps or plans designed to achieve the vision/mission of the organization”
1 Customer: 2 strategies & 3 objectives
Financial: 6 strategies & 17 objectives
Internal Business Process: 10 strategies &
27 objectives
Learning & Growth: 1 strategy & 2 objectives
2
3
4
6Objectives
91% are Completed or On Schedule
0
5
10
15
20
25
30
35
Completed On Target
Not On Target On Hold
Not Started
0
31
2
1
15
Completed
On Target
Not On Target
On Hold
Not Started
Objective Report
49 Total
7Objectives
1.Evaluate, and if beneficial, implement Cloud payroll service.
2.Customer electronic communication and outreach.
NOT ON TARGET
ON HOLD
1.Streamline contract and purchase order (contract)
management and lifecycle.
8Benchmarks & Key Performance Indicators (KPI’s)
“KPI’s indicate progress toward a desirable outcome & monitor operational performance”.
1 35 KPI’s reported quarterly & 7 annually
KPI’s are based on AWWA utility benchmarks & operational
best practices
KPI’s establish and maintain historical trends
Execute, maintain, & optimize performance targets
2
3
4
9Key Performance Indicators
91% On Target
Measure Report
42 Total
0
5
10
15
20
25
30
35
On Target
Not on Target
Annual Measure
32
3 7
On Target
Not on Target
Annual Measure
10Key Performance Indicators
1.Overtime Percentage
2.Recycled Water Shutdown Testing
3.System Valve Exercising Program
NOT ON TARGET
11
Customer
Execute and deliver services that meet or
exceed customer expectations, and increase
customer engagement in order to improve
District Services
12
Measurement Method
QTR:# of all calls answered/ # of all calls
received during a quarter
YTD:YTD # of all calls answered/ YTD #
of all calls received
Answer Rate
Target: 97%average answer rate per quarter annually
98.19 97.94 98.06
97 97 97 97 97
97.82
97.27
95
95.5
96
96.5
97
97.5
98
98.5
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
13Technical Quality Complaint (AWWA)
Target: No more than 7.1 complaints
per 1000 customer accounts annually
Measurement Method
QTR:1000 (# of technical quality complaints
per quarter)/# of active customer accounts per
reporting period (i.e. taste, color, odor, etc.)
YTD:1000 (YTD # of technical quality
complaints per year)/ # of active customer
accounts per reporting period)
0.93 0.73 1.66
7.1
1.78 1.78 1.78 1.78
7.1
1.49 1.19
0
1
2
3
4
5
6
7
8
9
10
Q1 Q2 Q3 Q4 YTD
Result AWWA Target FY18 Strat Plan
AWWA: 75th percentile for population served
between 100,001-500,000 (combined utilities)
**50th percentile in FY15-18 Strat Plan**
14Potable Water Compliance Rate (AWWA)
Target: 100%of all health related drinking
water standards each quarter annually
Measurement Method
100 (# of days the primary health regulations
are met)/ # of days in the reporting period
100 100 100
100
100 100 100 100 100
100 100
50
60
70
80
90
100
110
Q1 Q2 Q3 Q4 YTD
Result AWWA Target FY18 Strat Plan
AWWA: 75th percentile for population served
between 100,001-500,000 (water)
**50th percentile in FY15-18 Strat Plan**
15
Financial
Plan and execute sound financial activities
that are essential to running and sustaining
District operations, with the lowest possible
impact to customers
16CIP Project Expenditures vs. Budget
Target: 95% of budget but not to exceed 100%annually
Being below target gives the measure a “not on target” status
Measurement Method
OTR:Actual quarterly expenditures/Annual
budget
YTD:YTD expenditures/Annual budget
16.8
44.8 44.815
36
65
95
100
9.3 19.5
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
17Construction Change Order Incidence (w/o allowances)
Target: No more than 5%per quarter annually
2.2 2.4 2.4
5 5 5 5 5
0.1
0.5
0
1
2
3
4
5
6
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
*QTR and YTD result are the life to dare change
order rates for all active projects in FY17
Measurement Method
Total cost of Change Orders (not including allowances)/Total original
construction contract amount (not including allowances)
18
Measurement Method
QTR:Total operations O&M costs/ # of
accounts
YTD:YTD total operations O&M
costs/ # of accounts
O&M Cost Per Account
Target: Less than $571.00 per account annually
(Target is based on Operating Budget)
122 147
269
125
153 153 140
571
117
149
100
150
200
250
300
350
400
450
500
550
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
19Billing Accuracy (AWWA)
99.98 99.98 99.98
99.8899.8 99.8 99.8 99.8 99.8
99.97
99.99
98
98.2
98.4
98.6
98.8
99
99.2
99.4
99.6
99.8
100
Q1 Q2 Q3 Q4 YTD
Result AWWA Target FY18 Strat Plan
AWWA: Median for population served between
100,001-500,000 (combined utilities)
Target: 99.8%billing accuracy per quarter
annually
Measurement Method
QTR:# of correct bills during the reporting
period/ # of total bills during the reporting
period
YTD:YTD # of correct bills during the
reporting period/ YTD # of total bills during the
reporting period
20Overtime Percentage
Target: Less than 100%of budgeted overtime per quarter annually
(Target is based on Operating Budget; FY19 Overtime Budget is $149,900)
Measurement Method
QTR: Actual overtime costs (including comp
time)/ Budgeted overtime costs / Historical
YTD:YTD actual overtime costs
(including comp time)/ YTD budgeted
overtime costs
104
162
135
100 100 100 100 100
103.4
117
0
20
40
60
80
100
120
140
160
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
21Sewer Rate Ranking
Target: Bottom 50 percentile for the 28 sewer service providers in San Diego
(Otay ranks 6 out of 28 sewer service providers)
Measurement Method
Otay ranking for the average bill for sewer/ # of
sewer agencies
6 6
14 14
6
0
5
10
15
20
25
Q1 YTD
Result Target FY18 Strat Plan
22
4 4
11 11
3
0
5
10
15
20
25
Q1 YTD
Result Target FY18 Strat Plan
Water Rate Ranking
Target: Bottom 50 percentile for the 22 member agencies in San Diego
(Otay ranks 4 out of 22 member agencies)
Measurement Method
Otay ranking for the average water bill among
CWA member agencies
23Percent of Customers Paying Bills Electronically
Target: No less than 75%per quarter annually
Measurement Method
YTD:YTD # of customers paying bills
electronically/ Total # of customers
QTR:# of customers paying bills
electronically/ Total # of customers
78.25 77.51 77.88
75 75 75 75 75
76.95 76.78
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
24Distribution System Loss
Target: Less than 5%of unaccounted water loss per quarter annually
Measurement Method
100 [volume purchased (from CWA) –(volume sold (to customers) + volume used District
usage)] / volume purchased (from CWA))
3.6 3.6 3.6
5 5 5 5 5
4.1 4
0
1
2
3
4
5
6
7
8
9
10
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
25Planned Potable Water Maintenance Ratio in $
Target: 66% or greater of all labor dollars spent on preventative maintenance
per quarter annually
Measurement Method
Total planned maintenance cost/ Total
maintenance cost (old is dollars, new is
time)
75 72.8 74
66 66 66 66 66
72 72
50
55
60
65
70
75
80
85
90
95
100
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
26
Measurement Method
Total planned maintenance costs/Total
maintenance costs (old is dollars, new is
time)
Planned Recycled Water Maintenance Ratio in $
Target: 70%or greater of all labor spent on preventative maintenance
per quarter annually
69
85 77
70 70 70 70 70
70
64
0
10
20
30
40
50
60
70
80
90
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
27Planned Wastewater Maintenance Ratio in $
Target: 77% or greater of all labor dollars spent on preventative maintenance
per quarter annually
Measurement Method
Total planned maintenance cost/Total
maintenance cost (old is dollars, new is
time)
87 88 87
77 77 77 77 77
67.72
96.38
50
55
60
65
70
75
80
85
90
95
100
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
28Direct Cost of Treatment Per MGD
Target: No more than $1050 per MG spent on wastewater treatment per quarter annually
(Targets each quarter will vary based on high and low demand times)
Measurement Method
Total O&M costs directly attributable to
sewer treatment/ Total volume in MG
(dollars tracked for historical & budget)
760.36 895.49 821.11
900
1200 1200
900
1050
1238.54
0
200
400
600
800
1000
1200
1400
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
29Internal Business Processes
Improve business services by continually
improving essential processes, invest in
strategic technology, and achieve new
efficiencies.
30
Mark-Out Accuracy
Target: No less than 100%mark-out accuracy per quarter annually
99.91 100 100
100 100 100 100 100100100
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan Measurement Method
# of mark-outs performed without an at-fault
hit, which is damage to a District facility that
results from a missing or erroneous mark-
out/Total # of mark-outs performed
31Project Closeout Time
Target: No more than a 45 day average per quarter annually
24.3 31.8 31.8
45 45 45 45 45
64.5
0
10
20
30
40
50
60
70
Q1 Q2 Q3 Q4 YTD
Result Target FY Strat Plan
Measurement Method
QTR:# of days between NOSC and NOC for
all construction projects within the quarter/# of
construction projects within the quarter
YTD:YTD # of days between NOSC and
NOC for all construction projects within the
quarter/YTD # of construction projects
within the quarter
32Annual Recycled Water Site Inspections
Target: 100%of recycled sites inspected annually
(There are 102 recycled water use sites scheduled for FY19)
Measurement Method
Cumulative % of recycled sites inspected per
quarter of those required by DEH
23
60 6025
50
75
100 100
44
54.9
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
33Recycled Water Shutdown Testing
Target: 90%of recycled site shut down tests annually
(There are 50 recycled water use sites due for shutdown in FY19)
Measurement Method
Cumulative % of recycled site shutdown tests
performed per year compared to those
scheduled
14
42 42
22.5
45
67.5
90 90
11
48.71
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
34Easement Evaluation and Field Inspection
Target: 100%assigned easements evaluated via desktop tools and inspected annually
(There are 100 easements assigned for FY19)
Measurement Method
Cumulative % of recycled site shutdown tests
performed per year compared to those
scheduled
42
101 101
25
50
75
100 100
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Result Target
35Percent of PMs Completed –Fleet Maintenance
Target: No less than 90%of scheduled PM’s completed
per quarter annually
Measurement Method
# of PM’s completed/ # of PM’s
scheduled to be completed
100 100 100
90 90 90 90 90
100 100
0
20
40
60
80
100
Q1 Q2 Q3 Q4 Annual
Result Target FY18 Strat Plan
36Percent of PMs Completed –Reclamation Plant
100 100 100
90 90 90 90 90
100
95
75
80
85
90
95
100
105
110
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
Target: No less than 90%of scheduled PM’s completed
per quarter annually
Measurement Method
# of PM’s completed/ # of PM’s scheduled
to be completed in a reporting period
37Percent of PMs Completed –Pump/Electric Section
100 100 100
90 90 90 90 90
100 100
75
80
85
90
95
100
105
110
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
Target: No less than 90%of scheduled PM’s completed
per quarter annually
Measurement Method
# of PM’s completed/ # of PM’s scheduled to
be completed in a reporting period
38System Valve Exercising Program
Annual Target: 3080 valves exercised annually
Measurement Method
Actual number of valves exercised in
the reporting period
835 648
1483
770 770 770 770
3080
974 775
0
500
1000
1500
2000
2500
3000
3500
Q1 Q2 Q3 Q4 YTD
Result Target FY 18 Strat Plan
39
Measurement Method
100 (# of days the primary health regulations
are met)/ # of days in the reporting period
2.01 2.31
4.32
16.1
4 4 4 4
16
3.26
1.82
0
2
4
6
8
10
12
14
16
18
20
Q1 Q2 Q3 Q4 YTD
Result AWWA Target FY18 Strat Plan
Potable Water Distribution System Integrity (AWWA)
Target: Less than 16 leaks and breaks
per 100 miles of distribution piping annually
AWWA: 50th percentile for population served between
100,001-500,000 (water)
**25th percentile for western region in FY15-18 Strat Plan**
40Recycled Water System Integrity
Target: No more than 6.6 leaks or breaks per 100 miles
of recycled distribution system annually
Measurement Method
(100 x # of leaks or breaks)/ # of miles of
distribution system
0.89 0.89
1.78
1.65 1.65 1.65 1.65
6.6
0.89
00
1
2
3
4
5
6
7
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
41Sewer Overflow Rate (AWWA)
Target: 0 overflows per quarter annually
Measurement Method
QTR:100 (total number of sewer overflows
during the reporting period) / total miles of
pipe in the sewage collection system
0 0 0 000000000
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4 YTD
Result AWWA Target FY18 Strat Plan
YTD:Cumulative number of overflows per
quarter in a FY
0 Failures in Q1 & Q2 AWWA Benchmark is 0
AWWA: 75th percentile for collection systems (sewer overflow
uncontrolled release) serving from 0-50,000 customers
**25th percentile in FY15-18 Strat Plan**
42Emergency Facility Power Testing
Target: 100%of the District’s facilities tested annually
(The District currently has 34 powered ready facilities)
Measurement Method
Number of facilities tested / total facilities
100 100 100
100 100 100 100 100
10 6
0
20
40
60
80
100
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
43Potable Tank Inspection and Cleaning
Annual Target: 8 potable water storage tanks and/or reservoirs cleaned annually.
Measurement Method
Number of tanks cleaned and inspected
1
6 7
8 8 8 8 8
1
4
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
44Main Flushing and Fire Hydrant Maintenance
Target: 215 or more mains flushed and fire hydrants maintained annually
(The target of 215 is comprised of 165 hydrants and 50 mains)
Measurement Method
Number of mains flushed and hydrants
maintained
169
144
313
54 54 54 54
215
50
141
0
50
100
150
200
250
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
45Critical Valve Exercising
Annual Target: Exercise 631 identified critical valves annually
Measurement Method
Number of critical valves exercised in a
reporting period
631
0
631
631 631 631 631 631
625
60
100
200
300
400
500
600
700
800
900
1000
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
46Learning and Growth
Provide hands-on leadership, support, and
empowerment of staff, in order to maintain
an accountable high-performing workforce.
47Employee Turnover Rate
Target: Less than 5%turnover annually
0
1.49
1.481.25 1.25 1.25 1.25
5
0 00
1
2
3
4
5
6
Q1 Q2 Q3 Q4 YTD
Result Target FY18 Strat Plan
QTR:# of voluntary resignations (not
including retirements)/average # of
employees
Measurement Method
YTD:YTD # of voluntary resignations
(not including retirements)/average # of
employees
No turnovers in Q1
48Training Hours Per Employee
Target: 12 hours or more general formal training per employee annually
(excludes safety training)
5.53
6.93 12.46
3 3 3 3
12
4.94
5.5
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4 YTD/AVG
Result Target FY18 Strat Plan
Measurement Method
QTR:Total qualified training hours for all
employees/average # of FTEs
YTD:YTD Total qualified training hours for
all employees/Average # of FTEs
49Safety Training Program
Target: 24 hours or more safety training per field employee annually
6.9 11.42
18.32
6 6 6 6
24
6.5
11.14
0
5
10
15
20
25
30
Q1 Q2 Q3 Q4 YTD/AVG
Result Target FY18 Strat Plan Measurement Method
QTR:# of safety training hours for the
quarter/ # of field employees
YTD:YTD Total qualified safety training
hours for field employees/average # of field
employees
50
Questions?
STAFF REPORT
TYPE
MEETING:
Regular Board
MEETING
DATE:
March 6, 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:
Sewer Overflow Model – Staff finalized and delivered the Sewer
Overflow Model (SOM) to Engineering and Operations staff. The SOM
simulates sewer manhole overflow paths and ranges using unique
spatial analysis function. The SOM will help District staff predict
sewer pollution activity, if it occurs, and quickly report
estimated damages to the County in order to meet the state
regulation mandate.
Human Resources: SDRMA Assessments - Special District Risk Management Authority
(SDRMA) will be on-site in March to conduct an assessment of the
District’s facilities and programs related to our Workers’
Compensation, Safety and Property and Liability Programs. SDRMA
conducts these assessments periodically and the last assessment was
completed in 2016.
New Hires/Promotions/Recruitments:
o The Utility Maintenance Assistant Supervisor was filled with an
internal promotion.
o The District is recruiting for: Construction Inspector I/II,
Pump Mechanic I/II, Secretary, and Utility Crew Leader.
These positions are all critical to District operations.
IT Operations:
Monthly Board Audio Streaming - During the District’s January Board
meeting, 11 customers engaged in the listening of the live monthly
2
meeting. The live audio broadcast was aired for 1 hour and 50
minutes.
Eden Upgrade - Staff kicked-off the annual Eden Management System
upgrade, version 5.20, which will include functional upgrades and a
new validation testing process. For this year’s criteria, all
testing will be held in the Lower Level Conference Room with IT
staff coordinating this initiative. After the completion of
scheduled tests, staff will perform the upgrade to the production
system during the first week of March.
Purchasing & Facilities:
Update on Fleet Shop and Warehouse LED Replacements - Facilities
and Warehouse staff have determined that the motion sensing test
lights, discussed in the previous report and recently installed in
the Warehouse, meet staff work requirements. Staff has been
instructed to purchase and replace the remaining metal halide lamps
with motion sensing LED’s. The replacement LED bulbs for the Fleet
shop, also previously reported, have been ordered and shipped.
Facilities will install in coordination with Fleet shop work
schedules. Fleet shop and Warehouse retrofit LED bulb energy
savings will provide a return on investment of approximately 22
months.
San Diego Regional Construction Procurement Committee - Purchasing
staff attended the San Diego Regional Construction Procurement
Committee’s “US Construction Spending, Labor and Materials Outlook”
held at the Associated General Contractors of America. Discussion
included the 2019 outlook for various categories of construction in
the US and California and the difficulty construction companies are
encountering finding qualified employees to meet the demand. The
following chart lists these categories and the expected percentage
increase in dollar volume.
3
Facilities February Storm Report – District structures and grounds
fared well through the recent storms with no damage to report with
the one exception of a small tree branch falling onto District
property from a neighboring property.
BidSync Solicitations – During the last reporting period, two
solicitations were advertised on the District’s solicitation web
portal, BidSync, and on the District’s website:
o “As-Needed Engineering Design Services FY 2020-2022” – For
services of a civil engineering consulting firm(s) to provide
professional design services in support of the District's
Capital Improvement Program (CIP) for a period of three Fiscal
Years (FY 2020 – FY 2022) on an as-needed basis, for a not-to-
exceed amount of $600,000. The services may include, but not be
limited to planning and design of potable water, recycled water,
and sanitary sewer pipelines, pump stations, sewer lift
stations, pressure reducing stations, reservoirs, water
reclamation facilities, and/or utility relocations. This bid
closed on Feb 1, 2019, 5:00 PM PST.
o “Cleaning & Maintenance of Floating Reservoir Covers” – For
materials, labor, supervision, expertise, equipment and tools to
include, but not limited to inspect, clean, and maintain and
repair four (4) potable water reservoir floating covers (RFC),
twice per year (fall and spring), and two (2) recycled water
RFC, once per year (winter). Budgeted amount is $120,000. This
bid closed on Feb 4, 2019, 4:00 PM PST.
Safety & Security:
America’s Water Infrastructure Act of 2018 (AWIA 2018) – Staff is
actively engaged in learning more about the specific details for
compliance with the requirements of the AWIA 2018 Act.
o Background: On October 23, 2018, the America's Water
Infrastructure Act (AWIA) was signed into law. AWIA 2018
replaces section 1433 of the 2002 safe drinking water
Bioterrorism Act and adds natural hazards assessments and
resilience components. The law requires community (drinking)
water systems serving more than 3,300 people to develop or
update risk assessments and emergency response plans (ERPs). The
law includes components that the risk assessments and ERPs must
address, and establishes deadlines (March 2020), by which water
systems must certify to EPA completion of the risk assessment
and ERP.
o To date: Staff has researched information, attended an
informational webinar sponsored by WaterISAC and also has a
placeholder on an AWWA Utility Risk and Resilience Instructional
Certificate Program, scheduled to be released in March 2019.
4
o Highlights of the WaterISAC Webinar:
AWIA 2018, requires initial (and every 5 years) risk and
resilience assessments and ERP updates.
Agencies are to submit self-certification only (not the
assessments and/or ERP) to EPA by March 31, 2020, certifying
the completion of the assessments and ERP. Maintain the
documents for 5 years and start over.
EPA to provide detailed information on submittal process,
baseline threat information, risk assessments and ERP tools by
August 1, 2019.
Finance:
AMR Change Outs - The contractor will begin another round of meter
changes related to the AMR Change Out CIP on February 25th.
Approximately 640 meters with sizes between ¾” and 2” will be
changed out. Weather permitting, work should be completed by April
18, 2019.
FY2020 Budget Process – Staff is in the process of preparing the FY
2020 Operating and Capital budget and is planning on holding two
Board workshops this year. The first workshop will be held on May
2nd and the second one on May 20th.
Financial Reporting:
The financial reporting for January 31, 2019 is as follows:
o For the seven months ending January 31, 2019, there are total
revenues of $62,237,820 and total expenses of $61,146,691. The
revenues exceeded expenses by $1,091,129.
The financial reporting for investments for January 31, 2019 is as
follows:
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of January 31, 2019 total
$77,483,708 with an average yield to maturity of 1.810%. The
total earnings year-to-date are $663,658.
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 February 2019, Pacific Hydrotech, the District’s
construction contractor, continued work on the station’s roof. Work
5
to install the station’s exterior doors and louvers was started.
Interior work, including the installation of HVAC ducting, was also
started. Station specific submittals are in progress. February
2019 rains have impacted progress on site. 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 complete in October 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 February 2019, the
contractor’s horizontal auger boring subcontractor continued jack
and bore operations at the East Bore Jacking Pit located along
westbound Campo Road at the north east corner of the Campo
Road/Jamacha Boulevard intersection. It is anticipated that the
jack and bore operation will be completed by March 2019. Wier
Construction, the contractor for the project, also continued
installation of the planned sewer along eastbound Campo Road
between Via Mercado and Jamacha Boulevard up to the West Bore
Receiving Pit. Rain in February 2019 has impacted the progress of
the work. The project is within budget and the overall project is
scheduled for completion in June 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
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 February 2019, Cass Arietta, the
District’s construction contractor, completed potholing operations
and installed a new water main in Hidden Mesa Road between Avenida
Ofelita and Avenida Elisa. February 2019 rains have impacted
progress on site. Construction completion is scheduled for July
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) shop drawings have been approved and delivery
of the trailer is scheduled for early June 2019. A public works
bid package, including grading, mechanical, structural, electrical,
instrumentation and control, and installation of the trailer is
scheduled to be advertised for construction bid in March 2019 and
6
awarded in June 2019. The City of Chula Vista issued a Utility
Permit on January 18, 2019. A third revision of the City of San
Diego permit application was submitted on February 2, 2019.
District staff met with the City of San Diego to discuss the
District’s design and possible modifications to the existing water
purchase agreement on January 22, 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. From November 2018 through February 2019
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. 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.
(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 the installation
of the reservoir’s geo fabric and liner in February 2019. Rains in
December 2018 and January/February 2019 have impacted the scheduled
completion of the work. The project is within budget and scheduled
to complete in April 2019. (P2561)
Ralph W. Chapman Water Reclamation Facility (RWCWRF) Headworks
Improvements and Steele Bridge Wet Well Improvements: This project
consists of channel wall and drain line replacements at the Ralph
W. Chapman Water Reclamation Facility (RWCWRF) Headworks, and it
also includes replacement of the existing wet well top slab and
installation of a new stainless-steel wastewater bar screen with
grouting at the Steele Bridge Sewer Pump Station. On January 28,
2019, Tharsos, Inc. began work on site at the RWCWRF. Work in
February 2019 included removal and replacement of the channel wall
at the RWCWRF Headworks. The contractor also replaced the Steele
Bridge Sewer Pump Station wet well top slab. The work included in
this project is being coordinated with a shutdown of the RWCWRF.
February 2019 rains have impacted the construction schedule. The
project is within budget and on schedule to complete in March 2019.
803-2 Reservoir Interior/Exterior Coating and Upgrades: This
project consists of removing and replacing the interior and
7
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 February 2019, Advanced Industrial Services, the
construction contractor for the project, continued structural
repairs of the reservoir’s rafter that support the reservoir’s
roof. It is anticipated that structural work will be completed in
March 2019. The project completion is scheduled for June 2019.
The project is within budget. (P2565)
Pure Water Update: The City of San Diego (City) is expected to
award the first contract for the Pure Water San Diego project
starting with the issuance of a Notice to Proceed in April for
early site work for the North City Water Reclamation Plant. A
second bid package is out on the street for the North City Pure
Water Pipeline for the construction of approximately 7.5 miles of
48-Inch welded steel pipeline and appurtenances from the proposed
Pure Water Facility located on Eastgate Mall to Miramar Reservoir.
The cost of this project and the impact it will have on water and
sewer rates has been a topic in the news with the City declining to
estimate the impact on City customers (see Attachments A and B,
articles from “Voice of San Diego”).
District staff and the City briefly met last month after the
District received information about on-going negotiations between
the City and Padre Dam Municipal Water District, San Diego County
Sanitation District, and the City of El Cajon (“East County AWP
Parties”) regarding the disposal, treatment, and/or management of
solids, brine, and centrate (residuals) from the East AWP Program
facilities under the Amended Wastewater Agreement. Of specific
concern to the District is that the City will prohibit the disposal
of residuals into the Metro System.
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. The construction contract with Jauregui &
Culver was executed on January 14, 2019. Notice to Proceed was
issued on February 12, 2019. Project specific submittals are in
progress. The project is scheduled to be completed in June 2019.
(R2147)
Portable Trailer Mounted VFD Pumps: This project consists of
procurement of a portable trailer mounted hydropneumatic pump
station designed for deployment at up to eight (8) existing sites
8
including five (5) hydropneumatic pump stations and three (3) small
pressure zones each fed by a single gravity reservoir. A
cost/benefit and alternatives analysis were completed in October
2018. District staff prepared drawings and a performance
specification in December 2018. Informal quotes were received and
analyzed in January 2019. The award to procure a single trailer is
currently scheduled for the June Committee/July Board meetings.
This project is on schedule. (P2640)
Water System Operations (reporting for January):
Matchpoint Inc. was selected for the District’s 2019 leak detection
project. Matchpoint Inc. is scheduled to begin the survey work on
March 5. The 2019 leak detection survey area is comprised of both
potable and recycled mains totaling 165 miles just West and North
of Lower Otay Reservoir. The survey is expected to take 5 to 6
weeks to complete.
On January 4, Helix Water District (Helix) decided not to bill the
District for labor while delivering a flange. Helix’s Construction
Services Coordinator, Mr. Phil Sample, stated, “The labor for the
call-out is minimal so I’m not going to bill it through Shared
Services. It’s the least I could do considering all the help you
have provided to us.” This is a good example of the benefits when
agencies work together.
On January 9, the Operations Department submitted to the Regional
Water Quality Control Board the District’s Annual Water Discharges.
On January 15, the County of San Diego requested the District to be
on stand-by to assist them in case of an emergency with their
collection system until they have their Vactor truck back in
service. No emergencies occurred and their Vactor truck is back in
service.
On January 17, the Air Pollution Control District inspected 22
engines at 12 sites. The inspection went well and no violations
were issued.
On January 17, staff performed an unplanned emergency shutdown at
805 Maria Avenue in Spring Valley affecting 21 customers due to a
beam break on a 6-inch ACP line. A water trailer was on site and
the shutdown lasted from 12:00 PM to 3:45 PM.
On January 30, staff performed a planned shutdown on Ofelita Avenue
off of Hidden Mesa Road in Rancho San Diego to allow the contractor
to tie-in the new 12-inch main to the existing main on Ofelita
Avenue. Eleven residential meters were affected. The shutdown
9
lasted from 8:00 AM to 6:00 PM and there was a water trailer on
site for those affected.
On January 30, staff performed an unplanned emergency shutdown at
2965 Sweetwater Springs Blvd. in Spring Valley due to a defective
2-inch saddle from the 10-inch ACP line. Five commercial meters
were affected from 9:45 AM to 11:45 AM and a water trailer was on
site for affected customers.
On January 31, staff performed a planned shutdown at 3175
Sweetwater Springs Blvd. in Spring Valley to replace two 8-inch
line valves that had excessive leak-by in preparation and to
facilitate the County of San Diego storm drain project. The
Sweetwater Springs Blvd. emergency interconnect with Helix Water
District was utilized to provide water to Monte Vista High School.
A high-line was also utilized to provide water to the Lake View
Village Apartments and two water trailers were on site for affected
customers. The shutdown lasted from 8:00 AM to 2:15 PM.
Purchases and Change Orders:
The following table summarizes purchases and Change Orders issued
during the period of January 15 through February 14, 2019 that were
within staff signatory authority:
Date
Action
Amount
Contractor/
Consultant Project
01/15/19 P.O. $70,000.00 Clarkson Lab &
Supply, Inc.
Bacteriological
Testing and
Sampling FY 2019-
2020 (Various)
01/17/19 P.O. $14,600.00 A Glasco, Inc. Glass Replacement
01/17/19 P.O. $9,921.50 USA Imaging, Inc. Scanning Services
01/17/19 P.O. $15,212.40 Industrial
Scientific Corp.
Gas Detection
Program
01/25/19 P.O. $4,829.36 Trench Shoring,
Co.
Trench and Shoring
Equipment
02/04/19 C.O. $46,263.21 Pacific Hydrotech
870-2 Pump Station
Replacement
Project
(P2083/P2562)
02/11/19 P.O. $5,000.00 Palm Laundry,
Inc.
Towel Laundry
Service
02/11/19 P.O. $843.68 Nth Generation
Computing, Inc.
Custom Tape Drive
Media
02/12/19 P.O. $5,000.00 Sageview Advisory
Group, LLC
Retirement Plan
Consulting
10
Water Conservation and Sales:
Water Conservation - January 2019 usage was 9% lower than January
2013. Since January 2018, customers have saved an average of 8%
over 2013 levels.
02/13/19 P.O. $75,000.00 Anderson &
Brabant, Inc.
Appraisal Services
FY 2019-2021
(Various)
02/14/19 P.O. $14,149.00 Nth Generation
Computing, Inc.
3-Year SecureAuth
Subscription
Renewal
02/14/19 P.O. $7,763.00 TechKnowsion,
Inc.
SCADA System
Integration
Services
11
The January potable water purchases were 1,652.1 acre-feet which is
28.0% below the budget of 2,296.1 acre-feet. The cumulative
purchases through January were 17,432.1 acre-feet which is 8.4%
below the cumulative budget of 19,032.7 acre-feet.
The January recycled water purchases and production were 44.5 acre-
feet which is 58.7% below the budget of 107.8 acre-feet. The
cumulative production and purchases through January were 2,350.3
acre-feet which is 0.4% below the cumulative budget of 2,360.8
acre-feet.
12
Potable, Recycled, and Sewer (Reporting up to the month of January):
Total number of potable water meters: 50,551.
Total number of sewer connections: 4,736.
Recycled water consumption for the month of January:
o Total consumption: 54 acre-feet or 17,104,180 gallons.
o Average daily consumption: 567,877 gallons per day.
o Total cumulative recycled water consumption since July 1, 2018:
2,393.3 acre-feet.
o Total number of recycled water meters: 727.
Wastewater flows for the month of January:
o Total basin flow: 1,677,881 gallons per day.
This is an increase of 4.4% from January 2018.
o Spring Valley Sanitation District Flow to Metro: 557,231 gallons
per day.
o Total Otay flow: 1,120,484 gallons per day.
o Flow Processed at the Ralph W. Chapman Water Recycling Facility:
497,161 gallons per day.
o Flow to Metro from Otay Water District: 623,590 gallons per day.
By the end of January there were 6,740 wastewater EDUs.
Attachments: Attachment A - City Won’t Say How $3B Pure Water Project
Will Affect Customers’ Bills
Attachment B - Costs for Pure Water Project Are Rising
by Billions
VOICE OF SAN DIEGO
GOVERNMENT Water
City Won’t Say How $3B Pure
Water Project Will Affect
Customers’ Bills
The city’s refusal to produce an estimate contrasts with other public water
agencies that have offered some estimates before they embark on a major
project.
Ry Rivard
February 4, 2019
A rendering of the Pure Water plant / Image courtesy of the city of San Diego
San Diego is in the midst of spending roughly $3 billion on a massive new
water treatment system, but city officials can’t or won’t tell customers how that
will affect their water bills.
New water recycling plants will eventually purify enough sewage to provide a
third of the city’s drinking water.
In November, the City Council approved the first, $1.4 billion phase of the
project.
VOICE OF SAN DIEGO
Water bills will rise, that much is certain. Yet, officials in Mayor Kevin
Faulconer’s administration are refusing to estimate by how much.
In December, Voice of San Diego asked the city to estimate how much
customers’ bills will increase because of the Pure Water project.
The city, after weeks of delay, finally declined last week to offer any estimate
because “there is no simple calculation” they could perform.
That’s an odd response, because Pure Water itself is one of the most complex
and ambitious public works projects in California. For it to work, the city must
flawlessly remove bacteria and other pollution from raw sewage – any failure
could not only endanger public health but also set back other similar projects
for a generation.
During a December interview, several city officials – among them city CFO
Rolando Charvel and Johnnie Perkins, a top city official charged with fixing a
series of unrelated messes in the water department – provided various
reasons as to why it would be unreasonable to provide an estimate now, four
years before the project starts delivering water to customers.
Charvel said because different customers used different amounts of water,
any estimates would not apply universally.
Perkins argued that the project is so important that it’s not appropriate to look
at the costs per customer.
“Ratepayers are fully aware that rates were going up to pay for Pure Water,”
Perkins said.
VOICE OF SAN DIEGO
Pure Water is ultimately an attempt to kill two birds with one stone. Not only
will it provide a drought-proof source of water, but it helps with another long-
standing city problem. For years, the city has promised to build Pure Water in
order to avoid spending $2 billion to upgrade the Point Loma treatment plant,
which dumps treated sewage into the ocean. If Pure Water were only about
treating sewage or only about getting a new water supply, it probably wouldn’t
make financial sense.
That still doesn’t explain why the city won’t calculate its costs, though.
Two previous water department leaders – Halla Razak, who left the city for
another job, and Vic Bianes, who retired amid an ongoing investigation by
VOSD and NBC 7 Responds – have also declined in interviews over the past
several years to say how much the project might cost ratepayers, including
countless customers who already struggle to pay their water bills.
To the city’s credit, the calculation may be complicated and some numbers
remain up in the air. The city already received a low-interest, $614 million
federal loan to help build the project but it’s seeking further subsidies. Those
could lower the project’s costs. Higher construction costs, though, could drive
up costs. An unexpected dispute with San Diego Gas & Electric has already
increased Pure Water’s costs by tens of millions of dollars.
There is also the tricky issue of dividing up how much costs different
customers bear. City of San Diego water customers will pay for the bulk of the
project, but suburban cities that use the city’s sewer system will also chip in.
But the city’s refusal to produce an estimate contrasts with other public water
agencies that have offered some estimates before they embark on a major
project.
VOICE OF SAN DIEGO
In 2012, the San Diego County Water Authority estimated that a new $1 billion
desalination plant in Carlsbad would increase customers’ bills by about $5 a
month.
Last year, the Metropolitan Water District of Southern California said a $17
billion pair of tunnels to help bring Northern California water south would cost
Southern California water customers about $5 a month too.
There has been quibbling with those numbers, but at least they exist to
quibble with.
Meanwhile, private water companies, like California American Water, which
serves Coronado and Imperial Beach, plays by stricter rules because they are
regulated by the California Public Utilities Commission.
Before Cal American make a major decision, it has to say how much the
project will cost and how that will affect customers’ bills. In 2016, when it
filed its most recent request to increase rates, it estimated down to the cent
how much a typical customer’s bill would go up.
Public agencies – like the city water department – by contrast, have a lot of
freedom to do what they want, the theory being they are eventually
accountable to the public.
VOICE OF SAN DIEGO
GOVERNMENT Water
Costs for Pure Water Project
Are Rising – by Billions
Back in 2015, the city estimated construction costs for the Pure Water project,
which could eventually provide the city a third of its drinking water, would be
$3 billion. Now, the city is looking to spend no less than $4.8 billion and
perhaps as much as $9 billion on the project, according to city financial
documents.
Ry Rivard
February 12, 2019
Image via Shutterstock
It’s hard to pin down how many billions of dollars the city is planning to spend
on a new water recycling system, but it’s clear costs are rising – by billions of
dollars.
VOICE OF SAN DIEGO
Back in 2015, the city of San Diego expected it would get about a third of its
drinking water from recycled sewage within 20 years and could do so
for about $3 billion in construction costs.
Now, the city is looking to spend no less than $4.8 billion and perhaps as
much as $9 billion on the project, according to city financial documents,
including previously undisclosed internal estimates from the Public Utilities
Department.
The project, known as Pure Water, is almost certain to be the most expensive
public works project the city has ever undertaken.
Pure Water is happening in two different phrases. The first one, which is
underway, is expected to cost about $1.5 billion, according to publicly
available city financial estimates.
By early 2024, a water treatment plant near Miramar will produce about 30
million gallons of drinkable water each day from wastewater that would
otherwise be dumped into the ocean. Wastewater is a polite name for
sewage.
That’s already several hundred million dollars more than officials once
expected, though the first stage of the project will generate twice as much
water as once expected, meaning the rising costs make sense.
But costs for the second phase of the project, which will produce 53 million
gallons of water each day, are quickly rising. That means, without producing a
drop more water, costs for the whole project are escalating.
VOICE OF SAN DIEGO
Internal documents show costs of the second phase of the project now range
from $3.4 billion to $6.4 billion to $7.4 billion, meaning the whole project is
now estimated to cost as much as $8.9 billion.
The city water department said it’s exploring a range of different ways to do
the project and all of its various estimates are preliminary.
“These estimates are prepared at the conceptual level and are intended for
relative comparison between possible alternatives and to provide a conceptual
level of the costs,” city spokeswoman Katie Keach said in an email.
Pure Water is the city’s attempt to kill two birds with one stone. Not only is it
supposed to provide a drought-proof source of water, but it’s supposed to help
the city with another long-standing civic liability. For years, the city has
promised to build Pure Water in order to avoid spending $2 billion to upgrade
the Point Loma treatment plant, which dumps treated sewage into the ocean
despite environmental regulations that discourage that. If Pure Water were
only about treating sewage or only about getting a new water supply, it
probably wouldn’t make financial sense.
At least, that used to be the consensus.
Now, the city appears to be studying a plan that would upgrade the Point
Loma plant after all – meaning the city would end up paying for the very thing
Pure Water was supposed to mean the city didn’t have to pay for. That plan is
the most expensive of the various options.
It’s common for a major public works project to cost more than anticipated, but
cost estimates for Pure Water have doubled or tripled over just a few years
and even before shovels are in the ground.
VOICE OF SAN DIEGO
The city has already seen cost of other projects rise. Construction bids for a
controversial plan to overhaul part of Balboa Park have come in higher than
earlier estimates.
City officials have always argued the Pure Water project is worth the price.
Recycled water will help ensure the city can weather future droughts. San
Diego currently depends on the Colorado River and the rivers of Northern
California for the vast majority of its water. The rivers, each hundreds of miles
away, have always had dry spells but those are going to become more finicky
as the climate changes.
But the high costs also come at a time when the city’s water department has
lost the public’s trust. Over the past two years, the department has sent out
hundreds of inaccurate water bills, spent millions on a new “smart” water
meter program that isn’t working as intended and repeatedly concealed
problems from the public and the press.
In addition, the city has so far avoided trying to estimate how much these
billions of dollars for Pure Water will affect customers’ bills, though water rates
will inevitably rise. Following reporting last week by Voice of San Diego on the
city’s unwillingness to do that math, city officials are working to estimate how
much customer bills will rise specifically because of Pure Water. The city
expects to make its estimates public in coming weeks, though officials caution
any estimates are likely to change.
In other, more general estimates, city officials have projected water rates will
increase by 36 percent over the next five years, some of which is because of
Pure Water-related expenses. Rates have gone up by 29 percent in the past
four years.
VOICE OF SAN DIEGO
Already, San Diego customers pay some of the highest water rates in the
country.
Check Total
3,363.34
2,786.77
4,918.50
17,894.19
18,404.01
2051795 01/30/19 03492 AQUA-METRIC SALES COMPANY INV0072087 01/04/19 SENSUS METERS 19,233.41 19,233.41
946.59 946.59
2051874 02/13/19 03492 AQUA-METRIC SALES COMPANY INV0072316 01/24/19 SENSUS METERS 18,404.01
UB Refund Cst #0000046176 162.74 162.74
2051794 01/30/19 08967 ANTHEM EAP 77104 01/01/19 EMPLOYEE ASSISTANCE PROGRAM
CM20192 01/07/19 MGMT/INSP (12/1/18-12/31/18)480.00
2051835 02/06/19 19358 ANGEL GONZALEZ Ref002537439 02/04/19
CM20194 01/07/19 MGMT/INSP (12/1/18-12/31/18)2,080.00
CM20196 01/07/19 MGMT/INSP (12/1/18-12/31/18)1,219.19
6,715.00
CM20191 01/07/19 MGMT/INSP (12/1/18-12/31/18)5,000.00
CM20195 01/07/19 MGMT/INSP (12/1/18-12/31/18)2,400.00
INSURANCE CONSULTING 7,250.00 7,250.00
2051793 01/30/19 14462 ALYSON CONSULTING CM20193 01/07/19 MGMT/INSP (12/1/18-12/31/18)
2051873 02/13/19 14256 ALLIANT INSURANCE SERVICES INC 981901 01/02/19
131575706 12/24/18 AQUA AMMONIA 1,029.50
131570192 11/14/18 AQUA AMMONIA 387.00
AQUA AMMONIA 2,035.50
131575705 12/24/18 AQUA AMMONIA 1,466.50
2051834 02/06/19 07732 AIRGAS SPECIALTY PRODUCTS INC 131571752 12/27/18
41,999.50
2051872 02/13/19 11462 AEGIS ENGINEERING MGMT INC 1436 01/18/19 DEVELOPER PLAN REVIEW 12,995.82 12,995.82
675.00 675.00
2051906 02/20/19 13901 ADVANCED INDUSTRIAL SVCS INC 101312019 01/28/19 803-2 RES COAT/UPGRADES (ENDING 1/31/19)41,999.50
UB Refund Cst #0000249938 96.38 96.38
2051833 02/06/19 17989 ADS CORP 22335220119 01/19/19 ADS MAINTENANCE & REPORTING
2051832 02/06/19 19373 ADRIAN MARTINEZ Ref002537455 02/04/19
1,016.08
2051830 02/06/19 18685 ADEL YELDA Ref002537438 02/04/19 UB Refund Cst #0000028112 36.09 36.09
1,016.08 1,016.08
2051905 02/20/19 18122 ACC BUSINESS 720013 01/27/19 INTERNET CIRCUITS (12/11/18-1/10/19)1,016.08
SHAREPOINT SERVICES (JAN 2019)1,275.00 1,275.00
2051792 01/30/19 18122 ACC BUSINESS 183496723 12/27/18 INTERNET CIRCUITS (11/11/18-12/10/18)
2051904 02/20/19 08488 ABLEFORCE INC 8345 02/04/19
1037525 01/03/19 SODIUM HYPOCHLORITE 475.42
1037753 01/10/19 SODIUM HYPOCHLORITE 60.69
SODIUM HYPOCHLORITE 1,163.26
1037526 01/03/19 SODIUM HYPOCHLORITE 1,087.40
1038137 01/24/19 SODIUM HYPOCHLORITE 116.33
2051791 01/30/19 01910 ABCANA INDUSTRIES INC 1037752 01/10/19
1038136 01/24/19 SODIUM HYPOCHLORITE 1,314.99
1037955 01/17/19 SODIUM HYPOCHLORITE 465.30
Amount
2051871 02/13/19 01910 ABCANA INDUSTRIES INC 1037956 01/17/19 SODIUM HYPOCHLORITE 1,466.72
CHECK REGISTER
Otay Water District
Date Range: 1/24/2019 - 2/20/2019
Check #Date Vendor Vendor Name Invoice No.Inv. Date Description
Page 1 of 7
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 1/24/2019 - 2/20/2019
Check #Date Vendor Vendor Name Invoice No.Inv. Date Description
31,048.32
11,020.81
459.00
7,013.45 7,013.45
FLEET WASH SERVICES 193.80 193.80
2051805 01/30/19 01535 FLO-SYSTEMS INC F1726318D232 01/08/19 ML RETURN PUMP SPARE
2051909 02/20/19 11962 FLEETWASH INC x1513393 01/25/19
1,500.00
2051804 01/30/19 11962 FLEETWASH INC x1504486 01/11/19 FLEET WASH SERVICES 56.81 56.81
1,349.04 1,349.04
2051879 02/13/19 03725 ENVIRONMENTAL SYSTEMS RESEARCH 93588486 01/15/19 SOFTWARE LICENSE 1,500.00
UB Refund Cst #0000249874 212.26 212.26
2051842 02/06/19 19374 EASTLAKE PARK PLACE INC Ref002537456 02/04/19 UB Refund Cst #0000251063
2051908 02/20/19 19400 DRT GRADING INC Ref002540849 02/15/19
14.96
2051803 01/30/19 18705 DELPAK SYSTEMS LTD EI198000011 01/07/19 GPS TRACKING SYSTEM 1,525.75 1,525.75
32.16 32.16
2051841 02/06/19 19366 DELORES MILLER Ref002537448 02/04/19 UB Refund Cst #0000243102 14.96
EVOQUA PARTS 3,112.34 3,112.34
2051840 02/06/19 19361 DANIEL ANTELO Ref002537443 02/04/19 UB Refund Cst #0000206896
2051802 01/30/19 11797 D&H WATER SYSTEMS INC I2018-1258 12/11/18
SHUT DOWN TEST (12/13/18)306.00
2003193E602401218 01/04/19 SHUT DOWN TEST (12/13/18)153.00
01/23/19 PERMITS (12/1/18-12/31/18)4,844.10 4,844.10
2051801 01/30/19 00184 COUNTY OF SAN DIEGO 2003193E602361218 01/04/19
8,674.01
K069155 01/28/19 INVENTORY 2,346.80
2051800 01/30/19 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD1218
REGISTER REPLACEMENT PROGRAM 15,178.08 15,178.08
2051878 02/13/19 18331 CORE & MAIN LP J951256 01/21/19 INVENTORY
2051839 02/06/19 17923 CONCORD UTILITY SERVICES 2461 01/11/19
2452 01/04/19 REGISTER REPLACEMENT PROGRAM 9,525.44
2471 01/18/19 REGISTER REPLACEMENT PROGRAM 6,674.40
280.00 280.00
2051877 02/13/19 17923 CONCORD UTILITY SERVICES 2482 01/25/19 REGISTER REPLACEMENT PROGRAM 14,848.48
FINGERPRINTING SERVICES 20.00 20.00
2051799 01/30/19 00234 CITY TREASURER 012418 01/24/19 REGISTRATION (CLASS 6/27/19)
2051876 02/13/19 08895 CITY OF LA MESA 20666 02/11/19
66,381.25
2051838 02/06/19 02026 CHULA VISTA ELEM SCHOOL DIST AR049659 01/31/19 BUS TRANSPORTATION TO GARDEN (11/9/18)174.25 174.25
80.00 80.00
2051798 01/30/19 00848 CASS CONSTRUCTION INC 112312018 01/08/19 WATER LINE REPLACEMENT (ENDING 12/31/18)66,381.25
LEGISLATIVE ADVOCACY (2018-2019)1,212.30 1,212.30
2051797 01/30/19 01243 CALIFORNIA-NEVADA SECTION 1784012519 01/25/19 CERTIFICATE RENEWAL
2051837 02/06/19 08156 BROWNSTEIN HYATT FARBER 746014 01/10/19
162.12
2051836 02/06/19 19360 BLANCA SOTELO Ref002537441 02/04/19 UB Refund Cst #0000168977 25.66 25.66
4,384.97 4,384.97
2051875 02/13/19 06970 BATTIKHA, SAM 02062019 02/12/19 MEALS AND MILEAGE FOR TRAINING 162.12
MEMBERSHIP DUES - ACWA 24,515.00 24,515.00
2051907 02/20/19 07785 AT&T 000012453347 01/12/19 TELEPHONE SERVICES (12/12/18 - 1/11/19)
2051796 01/30/19 00108 ASSOCIATION OF CALIFORNIA 1102019 01/10/19
Page 2 of 7
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 1/24/2019 - 2/20/2019
Check #Date Vendor Vendor Name Invoice No.Inv. Date Description
338.23
16,924.33
10,643.57
82.57
2051882 02/13/19 15858 KERR, MICHAEL 020519020719 02/07/19 EXPENSE REIMBURSEMENT (2/5/19-2/7/19)192.90 192.90
1,000.00 1,000.00
2051851 02/06/19 19357 JOSE RAMOS Ref002537437 02/04/19 UB Refund Cst #0000007935 82.57
UB Refund Cst #0000243691 90.15 90.15
2051914 02/20/19 19378 JOHNNY HOLMES 1168021119 02/11/19 CUSTOMER REFUND
2051850 02/06/19 19369 JKV OPPORTUNITIES FUND 1 LP Ref002537451 02/04/19
1,757.00
2051849 02/06/19 10563 JCI JONES CHEMICALS INC 777339 12/13/18 CHLORINE 1,633.60 1,633.60
739.76 739.76
2051848 02/06/19 17106 IWG TOWERS ASSETS II LLC 476781 02/01/19 ANTENNA SUBLEASE (FEB 2019)1,757.00
INSPECTION & CLEANING OF RESERVOIRS 30,962.00 30,962.00
2051870 02/07/19 19376 ISAAC A ZUNIGA 8901020719 02/07/19 CUSTOMER REFUND
2051810 01/30/19 13299 INLAND POTABLE SERVICES INC A99121318 12/17/18
BILL PROCESSING SERVICES 8,341.05
148433 01/25/19 BILL PROCESSING SERVICES 2,302.52
2051881 02/13/19 08969 INFOSEND INC 148434 01/25/19
0135611 01/14/19 AS-NEEDED ENVIRONMENTAL (DEC 2018)525.00
0135655 01/14/19 AS-NEEDED ENVIRONMENTAL (DEC 2018)50.00
SAN MIGUEL HMA (12/1/18-12/31/18)13,829.33
0135609 01/14/19 AS-NEEDED ENVIRONMENTAL (DEC 2018)2,520.00
2051809 01/30/19 15622 ICF JONES & STOKES INC 0135610 01/14/19
1,544.22
2051847 02/06/19 19365 HOMEFED SPIC OTAY LLC Ref002537447 02/04/19 UB Refund Cst #0000242641 1,823.93 1,823.93
3,175.94 3,175.94
2051846 02/06/19 19372 HIGH TECH HIGH Ref002537454 02/04/19 UB Refund Cst #0000249185 1,544.22
ASSET MANAGMENT SVCS (12/1/18-12/31/18)3,542.50 3,542.50
2051808 01/30/19 10973 HDR INC 1200166379 01/10/19 SEWER RATE STUDY (4/1/18-12/29/18)
2051880 02/13/19 18436 HAZEN AND SAWYER DPC 200940013 01/17/19
127.13
2051807 01/30/19 18436 HAZEN AND SAWYER DPC 2009400011 01/04/19 HYDRAULIC MODELING (12/1/18-12/31/18)2,233.75 2,233.75
900.90 900.90
2051913 02/20/19 17024 GUIRIBA, DIANNE 020519020719 02/07/19 EXPENSE REIMBURSEMENT (2/5/19-2/7/19)127.13
UB Refund Cst #0000243122 45.09 45.09
2051806 01/30/19 03537 GHA TECHNOLOGIES INC 10073686 01/07/19 DESKTOP COMPUTERS
02/19/19 CUSTOMER REFUND 83.52 83.52
2051845 02/06/19 19367 GESANT GARCIA Ref002537449 02/04/19
179.31
010119013119 01/31/19 MILEAGE REIMBURSEMENT (1/2/19-1/31/19)158.92
2051912 02/20/19 19140 GEORGE KENNER 8220021919
SAFETY BOOTS 150.00 150.00
2051911 02/20/19 17855 GASTELUM, HECTOR 121318121718 12/31/18 MILEAGE REIMBURSEMENT (12/1/18-12/31/18)
2051844 02/06/19 14480 GARCIA, GERMAN 020219 02/06/19
125.00
2051910 02/20/19 18600 FRANCHISE TAX BOARD Ben2540879 02/21/19 BI-WEEKLY PAYROLL DEDUCTION 125.00 125.00
7,013.45 7,013.45
2051843 02/06/19 18600 FRANCHISE TAX BOARD Ben2537527 02/07/19 BI-WEEKLY PAYROLL DEDUCTION 125.00
2051805 01/30/19 01535 FLO-SYSTEMS INC F1726318D232 01/08/19 ML RETURN PUMP SPARE
Page 3 of 7
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 1/24/2019 - 2/20/2019
Check #Date Vendor Vendor Name Invoice No.Inv. Date Description
74.90
2051889 02/13/19 08972 RICK ENGINEERING COMPANY 0065454 01/16/19 CAMPO RD SUPP SVCS (12/1/18-12/31/18)1,076.94 1,076.94
7,470.00 7,470.00
2051903 02/20/19 19297 RICHARD APODACA Ref002540846 02/15/19 UB Refund Cst #0000080325 74.90
PUMP EFFICIENCY TESTING (JAN 2019)9,100.00 9,100.00
2051819 01/30/19 15647 RFYEAGER ENGINEERING LLC 19002 01/02/19 CORROSION SERVICES (12/1/18-12/31/18)
2051857 02/06/19 01409 PUMP CHECK 7487 01/11/09
934.11
2051888 02/13/19 01715 PORRAS, PEDRO 032419032919 02/06/19 EXPENSE REIMBURSMENT (3/24/19-3/29/19)2,298.46 2,298.46
311.78 311.78
2051919 02/20/19 00137 PETTY CASH CUSTODIAN 021919 02/19/19 PETTY CASH REIMBURSEMENT (FEB 2019)934.11
RET/PACIFIC HYDRO A#7533 (12/31/18)33,575.12 33,575.12
2051887 02/13/19 19310 PALM LAUNDRY INC OWD001 02/04/19 TOWEL LAUNDRY SERVICE
2051818 01/30/19 18562 PACIFIC WESTERN BANK 1312312018 01/09/19
160.73
2051817 01/30/19 06646 PACIFIC HYDROTECH CORPORATION 1312312018 01/09/19 870-2 PS REPLACEMENT (ENDING 12/31/18)637,927.22 637,927.22
6,177.50 6,177.50
2051856 02/06/19 19364 OTAY RANCH FIVE COMMUNITY Ref002537446 02/04/19 UB Refund Cst #0000240583 160.73
GEOTECHNICAL SERVICES (12/1/18-12/28/19)4,939.75 4,939.75
2051886 02/13/19 18332 NV5 INC 114423 01/26/19 ENGINEERING DESIGN (12/1/18-12/31/18)
2051885 02/13/19 00761 NINYO & MOORE GEOTECHNICAL 225085 01/24/19
12,223.12
2051855 02/06/19 16255 NATIONWIDE RETIREMENT Ben2537517 02/07/19 BI-WEEKLY DEFERRED COMP PLAN 12,248.12 12,248.12
5,377.23 5,377.23
2051918 02/20/19 16255 NATIONWIDE RETIREMENT Ben2540869 02/21/19 BI-WEEKLY DEFERRED COMP PLAN 12,223.12
AERATION BASIN VALVES 12,937.72 12,937.72
2051917 02/20/19 16898 NATIONAL METER & AUTOMATION S1111117.001 02/18/19 CELL UNITS
2051816 01/30/19 19073 MISCOWATER 13397SW 01/08/19
577.48
2051854 02/06/19 19370 MICHAEL TOMOLONIS Ref002537452 02/04/19 UB Refund Cst #0000247985 8.11 8.11
5,147.86 5,147.86
2051815 01/30/19 02882 MAYER REPROGRAPHICS INC 0028959IN 01/22/19 REPROGRAPHIC SERVICES 577.48
UB Refund Cst #0000217304 25.92 25.92
2051814 01/30/19 18905 M RAE ENGINEERING INC 312312018 12/26/18 PIPELINE CP IMPROVEMENTS PH II (DEC 2018)
2051853 02/06/19 19362 LUCIA BARNEY Ref002537444 02/04/19
153,900.00
2051852 02/06/19 19363 LINA ESCOBAR Ref002537445 02/04/19 UB Refund Cst #0000224912 21.47 21.47
53,200.00 53,200.00
2051916 02/20/19 15615 LAYFIELD USA CORPORATION 501312019 01/25/19 RES 711-3 FLOAT COVER & LINER (JAN 2019)153,900.00
RES 711-3 FLOAT COVER & LINER (DEC 2018)22,372.50 22,372.50
2051884 02/13/19 15615 LAYFIELD USA CORPORATION E08176 01/22/19 RESERVOIR COVER MAINT (11/5/18-1/9/19)
2051813 01/30/19 15615 LAYFIELD USA CORPORATION 412312018 01/02/19
229.10
2051812 01/30/19 02063 LA MESA - SPRING VALLEY 4352 01/22/19 BUS TRANSPORTATION TO GARDEN (12/11/18)236.00 236.00
15,683.50 15,683.50
2051915 02/20/19 03336 KREINBRING, THERESA 020519020719 02/07/19 EXPENSE REIMBURSEMENT (2/5/19-2/7/19)229.10
EXPENSE REIMBURSEMENT (2/5/19-2/8/19)111.00 111.00
2051883 02/13/19 05840 KIRK PAVING INC 7017 01/24/19 PAVING SERVICES
2051811 01/30/19 15858 KERR, MICHAEL 020519020819 01/23/19
Page 4 of 7
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 1/24/2019 - 2/20/2019
Check #Date Vendor Vendor Name Invoice No.Inv. Date Description
250.00
22,034.67
98,701.57
91.13
PROPERTY/LIABILITY INSURANCE 534.36 534.36
010119013119 01/31/19 EXPENSE REIMBURSEMENT (1/1/19-1/31/19)35.96
2051894 02/13/19 03516 SPECIAL DISTRICT RISK 65633 02/11/19
92.37
2051923 02/20/19 16229 SMITH, TIMOTHY 062618012319 01/23/19 EXPENSE REIMBURSEMENT (6/26/18-1/23/19)55.17
203.14 203.14
2051823 01/30/19 18396 SIMPSON SANDBLASTING & SPECIAL 101312019 01/08/19 RES COATING & UPGRADES (ENDING 1/31/19)92.37
UB Refund Cst #0000092358 115.50 115.50
2051922 02/20/19 19399 SIEMPRE VIVA BUSINESS Ref002540848 02/15/19 UB Refund Cst #0000243502
2051861 02/06/19 19359 SHANON STEDNITZ Ref002537440 02/04/19
81.27
2051822 01/30/19 19356 SESAK/LLOYD FAMILY TRUST 5728012519 01/25/19 CUSTOMER REFUND 31.63 31.63
36.88 36.88
2051860 02/06/19 19371 SANDRA LEIBOLD Ref002537453 02/04/19 UB Refund Cst #0000248811 81.27
UTILITY EXPENSES (MONTHLY)65,663.01 65,663.01
2051921 02/20/19 00121 SAN DIEGO GAS & ELECTRIC 020819 02/19/19 UTILITY EXPENSES (MONTHLY)
2051893 02/13/19 00121 SAN DIEGO GAS & ELECTRIC 020519 02/05/19
012519C 01/25/19 UTILITY EXPENSES (MONTHLY)66.15
012919 01/29/19 UTILITY EXPENSES (MONTHLY)58.00
013119 01/31/19 UTILITY EXPENSES (MONTHLY)1,987.41
020119 02/01/19 UTILITY EXPENSES (MONTHLY)152.43
012519B 01/25/19 UTILITY EXPENSES (MONTHLY)11,637.19
012519D 01/25/19 UTILITY EXPENSES (MONTHLY)8,178.73
UTILITY EXPENSES (MONTHLY)58,705.68
012919A 01/29/19 UTILITY EXPENSES (MONTHLY)17,915.98
2051859 02/06/19 00121 SAN DIEGO GAS & ELECTRIC 012819 01/28/19
011819 01/18/19 UTILITY EXPENSES (MONTHLY)44.09
011019 01/10/19 UTILITY EXPENSES (MONTHLY)38.94
12,587.70
012119 01/21/19 UTILITY EXPENSES (MONTHLY)8,619.68
012519A 01/25/19 UTILITY EXPENSES (MONTHLY)744.26
ASSESSOR DATA (NOV 2018)125.00 125.00
2051821 01/30/19 00121 SAN DIEGO GAS & ELECTRIC 012519 01/25/19 UTILITY EXPENSES (MONTHLY)
2051858 02/06/19 02586 SAN DIEGO COUNTY ASSESSOR 201800981 12/04/18
ASSESSOR DATA (JAN 2019)125.00
201800894 11/02/18 ASSESSOR DATA (OCT 2018)125.00
2051892 02/13/19 02586 SAN DIEGO COUNTY ASSESSOR 201900102 02/04/19
62.64
2051891 02/13/19 19377 SAGEVIEW ADVISORY GROUP LLC 201840621 02/04/19 RETIREMENT PLAN CONSULTING 5,000.00 5,000.00
2,000.00 2,000.00
2051920 02/20/19 04542 ROBAK, MARK 010219012919 01/29/19 MILEAGE REIMBURSEMENT (1/2/19-1/29/19)62.64
CAMPO RD SUPP SVCS (10/27/18-11/30/18)1,423.00 1,423.00
2051890 02/13/19 00521 RICK POST WELD & WET TAPPING 12118 01/15/19 WET TAP
2051820 01/30/19 08972 RICK ENGINEERING COMPANY 0065192 01/02/19
2051889 02/13/19 08972 RICK ENGINEERING COMPANY 0065454 01/16/19 CAMPO RD SUPP SVCS (12/1/18-12/31/18)1,076.94 1,076.94
Page 5 of 7
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 1/24/2019 - 2/20/2019
Check #Date Vendor Vendor Name Invoice No.Inv. Date Description
230.00
17,545.97
658.29
14,985.00
25,892.73
SECURITY EQUIPMENT INSTALLATION 5,202.13
610045 01/11/19 SECURITY & ACCESS UPGRADE 2,620.50
2051900 02/13/19 15807 WATCHLIGHT CORPORATION 610503 01/23/19
ALARM EQUIPMENT INSTALLATION 13,406.16
610050 01/14/19 SECURITY & ACCESS UPGRADE 9,866.07
2051827 01/30/19 15807 WATCHLIGHT CORPORATION 605935 12/14/18
10,428.72
2051868 02/06/19 15807 WATCHLIGHT CORPORATION 610051 01/14/19 EQUIPMENT INSTALLATION 334.44 334.44
8,075.40 8,075.40
2051867 02/06/19 06414 VANTAGEPOINT TRANSFER AGENTS Ben2537523 02/07/19 BI-WEEKLY 401A PLAN 10,428.72
BI-WEEKLY DEFERRED COMP PLAN 16,391.87 16,391.87
2051927 02/20/19 06414 VANTAGEPOINT TRANSFER AGENTS Ben2540875 02/21/19 BI-WEEKLY 401A PLAN
02/07/19 BI-WEEKLY DEFERRED COMP PLAN 16,478.09 16,478.09
2051926 02/20/19 01095 VANTAGEPOINT TRANSFER AGENTS Ben2540877 02/21/19
13,225.00
SD22405 01/14/19 MGMT/INSP (12/1/18-12/31/18)1,760.00
2051866 02/06/19 01095 VANTAGEPOINT TRANSFER AGENTS Ben2537525
PATROLLING SERVICES (JAN 2019)110.00 110.00
2051826 01/30/19 08028 VALLEY CONSTRUCTION MANAGEMENT SD10772 01/14/19 MGMT/INSP (12/1/18-12/31/18)
1147917140 01/15/19 PORT. TOILET RENTAL 79.96
2051899 02/13/19 06829 US SECURITY ASSOCIATES INC 2475654 01/24/19
1147917142 01/15/19 PORT. TOILET RENTAL 98.25
1147917141 01/15/19 PORT. TOILET RENTAL 87.50
660.10
2051865 02/06/19 15675 UNITED SITE SERVICES INC 1147917205 01/15/19 PORT. TOILET RENTAL 392.58
298.61 298.61
2051825 01/30/19 00427 UNDERGROUND SERVICE ALERT 1220180492 01/01/19 UNDERGROUND ALERTS (MONTHLY)660.10
MILEAGE REIMBURSEMENT (1/2/19-1/25/19)33.64 33.64
2051898 02/13/19 08159 TORRES, LEONEL 020419020719 02/07/19 EXPENSE REIMBURSEMENT (2/4/19-2/7/19)
2051925 02/20/19 14177 THOMPSON, MITCHELL 010219012519 01/31/19
1,775.98
2051831 02/06/19 19300 THOMAS WATKINS Ref002537442 02/04/19 UB Refund Cst #0000186517 135.00 135.00
144.55 144.55
2051864 02/06/19 19368 THE GATE THREE LLC Ref002537450 02/04/19 UB Refund Cst #0000243266 1,775.98
JANITORIAL SERVICES (FEB 2019)4,780.00 4,780.00
2051863 02/06/19 09221 TACKETT, ZACHARY 490845 02/04/19 EXPENSE REIMBURSEMENT (1/9/19-1/10/19)
461714 01/18/19 DIESEL FUEL 6,771.28
2051897 02/13/19 17704 T&T JANITORIAL INC 20185414 12/31/18
9,415.30 9,415.30
2051896 02/13/19 10339 SUPREME OIL COMPANY 461697 01/18/19 UNLEADED FUEL 10,774.69
LIFE INSURANCE AND STD/LTD 9,159.86 9,159.86
2051924 02/20/19 15974 SUN LIFE FINANCIAL 8166010119 02/19/19 LIFE INSURANCE AND STD/LDT
01/25/19 CERTIFICATION RENEWAL 90.00 90.00
2051862 02/06/19 15974 SUN LIFE FINANCIAL 816612118 02/04/19
115.00
8205020719 02/07/19 LICENSE RENEWAL 115.00
2051824 01/30/19 05755 STATE WATER RESOURCES 1581012519
2051895 02/13/19 00274 STATE OF CALIFORNIA 83263020719 02/07/19 LICENSE RENEWAL
Page 6 of 7
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 1/24/2019 - 2/20/2019
Check #Date Vendor Vendor Name Invoice No.Inv. Date Description
42,361.31
250.00
EMPLOYEE BENEFITS (DEC 2018)790.50 790.50
Amount Pd Total:2,300,761.30
Check Grand Total:2,300,761.30
2051902 02/13/19 08023 WORKTERRA 0091462IN 12/31/18
509,398.17
EXPENSE REIMBURSEMENT (01/31/19-02/01/19)208.43 208.43205186902/06/19 02230 WILLIAMSON, KELLI 013019020119 02/01/19
1,420.08 1,420.08
2051829 01/30/19 18101 WIER CONSTRUCTION CORP 1812312018 01/11/19 SEWER REPLACEMENT (12/1/18-12/31/18)509,398.17
RET/WEIR CONST A#2222 (12/1/18-12/31/18)26,810.43 26,810.43
2051928 02/20/19 19398 WESTERN RIM CONSTRUCTORS INC Ref002540847 02/15/19 UB Refund Cst #0000241468
2051828 01/30/19 18173 WESTERN ALLIANCE BANK 1812312018 01/11/19
BEE REMOVAL 125.00
20446 01/24/19 BEE REMOVAL 125.00
2051901 02/13/19 01343 WE GOT YA PEST CONTROL INC 19845 01/17/19
610510 01/23/19 SECURITY EQUIPMENT INSTALLATION 1,872.94
610271 01/17/19 EQUIPMENT INSTALLATION 1,555.09
610501 01/23/19 INSTALLATION WORK 2,217.09
610312 01/18/19 EQUIPMENT INSTALLATION 2,111.20
608537 01/15/19 SECURITY ALARM MONITORING (FEB 2019)2,472.92
610544 01/24/19 INSTALLATION WORK 2,265.38
610581 01/25/19 EQUIPMENT INSTALLATION 2,679.02
610588 01/25/19 SECURITY EQUIPMENT INSTALLATION 2,503.90
610511 01/23/19 INSTALLATION WORK 3,203.08
610585 01/25/19 INSTALLATION WORK 2,817.51
610546 01/24/19 INSTALLATION WORK 4,798.00
610311 01/18/19 EQUIPMENT INSTALLATION 3,733.56
SECURITY EQUIPMENT INSTALLATION 5,202.13
610270 01/17/19 EQUIPMENT INSTALLATION 4,929.49
2051900 02/13/19 15807 WATCHLIGHT CORPORATION 610503 01/23/19
Page 7 of 7