HomeMy WebLinkAbout11-07-18 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
November 7, 2018
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. PRESENTATION OF THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT’S HY-
DROSTATION AND PARTNERSHIP WITH THE OTAY WATER DISTRICT AND
SWEETWATER AUTHORITY (ASSISTANT SUPERINTENDENT MATTHEW R.
TESSIER, ED.D. AND INNOVATION AND INSTRUCTION RESOURCE TEACHER MI-
CHAEL BRUDER)
5. PRESENTATION OF CONTRIBUTION TO THE CHULA VISTA ELEMENTARY
SCHOOL DISTRICT FOR THE HYDROSTATION PARTNERSHIP WITH THE OTAY
WATER DISTRICT (OTERO)
6. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF JULY 11, 2018
AND SPECIAL MEETING OF JULY 30, 2018
7. 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
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 PARTICU-
LAR ITEM:
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a) AWARD A CONTRACT TO ERS INDUSTRIAL SERVICES, INC. FOR THE
RALPH W. CHAPMAN WATER RECLAMATION FACILITY FILTER MEDIA AND
NOZZLES REPLACEMENT PROJECT (CIP R2145) IN AN AMOUNT NOT-TO-
EXCEED $115,765.58
b) APPROVE A $25,000 (FROM $150,000 TO $175,000) INCREASE TO THE CIP
R2118 BUDGET AND AWARD A CONSTRUCTION CONTRACT TO THARSOS,
INC. FOR THE RALPH W. CHAPMAN WATER RECLAMATION FACILITY HEAD-
WORKS IMPROVEMENTS (CIP S2051) AND STEELE BRIDGE SEWAGE PUMP
STATION WET WELL IMPROVEMENTS (CIP R2118) PROJECT IN AN AMOUNT
NOT-TO-EXCEED $223,490
c) APPROVE DECREASING THE CIP P2574 BUDGET IN THE AMOUNT OF
$360,000 (FROM $2,000,000 TO $1,640,000), INCREASING THE CIP P2625
BUDGET IN THE AMOUNT OF $710,000 (FROM $1,500,000 TO $2,210,000),
AND AWARD A CONSTRUCTION CONTRACT TO CASS ARRIETA FOR THE
VISTA VEREDA (CIP P2574) AND HIDDEN MESA ROAD (CIP P2625) WATER
LINE REPLACEMENT PROJECT IN AN AMOUNT NOT-TO-EXCEED $2,848,364
d) APPROVE INCREASING THE OVERALL BUDGET FOR CIP S2024, CAMPO
ROAD SEWER REPLACEMENT PROJECT, IN THE AMOUNT OF $230,000
(FROM $10,300,000 TO $10,530,000) AND APPROVE CHANGE ORDER NO. 3
TO THE PROJECT’S EXISTING CONSTRUCTION CONTRACT WITH WIER
CONSTRUCTION CORPORATION IN THE AMOUNT OF $156,192.12
e) APPROVE INCREASING THE CIP P2565 BUDGET IN THE AMOUNT OF
$200,000 (FROM $1,000,000 TO $1,200,000) AND AWARD A CONSTRUCTION
CONTRACT TO ADVANCED INDUSTRIAL SERVICES, INC. FOR THE 803-2
RESERVOIR INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT IN
AN AMOUNT NOT-TO-EXCEED $951,690
f) APPROVE THE PURCHASE OF SEVEN (7) FLEET VEHICLES BY ISSUING
PURCHASE ORDERS TO: ENCINITAS FORD IN THE AMOUNT OF $102,045.42
FOR THE PURCHASE OF THREE (3) F150 HALF TON TRUCKS; SUNROAD
AUTO, LLC, IN THE AMOUNT OF $145,566.71 FOR THE PURCHASE OF TWO
(2) ONE TON TRUCKS AND ONE (1) F550 CLASS 5 DUMP TRUCK; AND THE-
ODORE ROBBINS FORD IN THE AMOUNT OF $39,009.94 FOR THE PUR-
CHASE OF ONE (1) F250 THREE QUARTER TON TRUCK. THE TOTAL COST
FOR SEVEN (7) FLEET VEHICLES IS $286,622.07
g) APPROVE THE ISSUANCE OF A PURCHASE ORDER TO RDO EQUIPMENT
COMPANY IN THE AMOUNT OF $304,182.30 FOR THE PURCHASE OF ONE
(1) MINI EXCAVATOR AND ONE (1) RUBBER TIRE LOADER, AND DECLARE
UNITS 742, 269, 1503, 3247 AND 3460 AS SURPLUS
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ACTION ITEMS
9. ADMINISTRATION AND FINANCE
a) APPROVE THE AUDITED FINANCIAL STATEMENTS, INCLUDING THE INDE-
PENDENT AUDITORS’ UNQUALIFIED OPINION, FOR THE FISCAL YEAR
ENDED JUNE 30, 2018 (DYCHITAN)
b) CONSIDERATION OF PROPOSAL FOR AUDIT SERVICES FOR FISCAL YEAR
2019 (FAKHOURI)
c) ADOPT RESOLUTION NO. 4353 TO APPROVE THE 2019–2024 MEMORAN-
DUM OF UNDERSTANDING (MOU) BETWEEN THE OTAY WATER DISTRICT
AND THE OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION (OWDEA)
AND RELATED ACTIONS (WILLIAMSON)
10. BOARD
a) DISCUSS THE 2018 AND 2019 BOARD MEETING CALENDARS
INFORMATIONAL ITEM
11. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PUR-
POSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM:
a) UPDATE ON RECENT CONSTRUCTION BIDS THE DISTRICT HAS RECEIVED,
GRANT FUNDING AVAILABLE ON DISTRICT PROJECTS, AND UTILIZATION
OF AS-NEEDED CONSTRUCTION MANAGEMENT SERVICES (MARTIN)
REPORTS
12. GENERAL MANAGER’S REPORT
13. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
14. DIRECTORS' REPORTS/REQUESTS
15. PRESIDENT’S REPORT/REQUESTS
RECESS TO CLOSED SESSION
16. CLOSED SESSION
a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION: PERIODIC AND CUS-
TOMARY REVIEW IN DUE COURSE [GOVERNMENT CODE §54957.6]
TITLE: GENERAL COUNSEL
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RETURN TO OPEN SESSION
17. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO
TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
OTAY WATER DISTRICT FINANCING AUTHORITY
18. NO MATTERS TO DISCUSS
19. ADJOURNMENT
All items appearing on this agenda, whether or not expressly listed for action, may be deliber-
ated 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 November 2, 2018, I posted a copy of the foregoing agenda near the reg-
ular 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 November 2, 2018.
/s/ Susan Cruz, District Secretary
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MINUTES OF THE
BOARD OF DIRECTORS MEETINGS OF THE
OTAY WATER DISTRICT
AND
OTAY WATER DISTRICT FINANCING AUTHORITY
July 11, 2018
1. The meeting was called to order by President Robak at 3:34 p.m.
2. ROLL CALL
Directors Present: Croucher, Gastelum, Robak, Smith and Thompson
Staff Present: General Manager Mark Watton, Attorney Jeanne
Blumenfeld, Chief of Engineering Rod Posada, Chief
Financial Officer Joe Beachem, Chief of Administration
Adolfo Segura, Chief of Operations Pedro Porras, Asst.
Chief of Finance Kevin Koeppen, Asst. Chief of Operations
Jose Martinez, District Secretary Susan Cruz and others
per attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
President Smith indicated that as there is a speaker interested in addressing item
14a, DISCUSS CENSURE OF DIRECTOR HECTOR GASTELUM
IMPLEMENTED BY THE OTAY WATER DISTRICT BOARD THROUGH THE
ADOPTION OF RESOLUTION NO. 4333 ON APRIL 17, 2017, on the agenda, he
would like to move it to follow agenda item 6, Public Participation.
A motion was made by Director Robak, and seconded by Director Gastelum and
carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the agenda with an amendment to move agenda item 14a to follow
agenda item 6, Public Participation.
5. PRESENTATION OF AWARD FOR WATERSMART LANDSCAPE CONTEST
“BEST IN DISTRICT” WINNER, MS. ROSALBA PONCE
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Director Thompson presented the WaterSmart landscape contest award for “Best
in District,” a $250 Anderson Nursery gift certificate, to Ms. Rosalba Ponce. He
indicated that Ms. Ponce was a teacher and principal at Chula Vista Elementary
school and as a community leader she has once again demonstrated her
leadership by displaying to the community how attractive water conserving
landscapes can be. Ms. Ponce utilized the monies she received from the turf
rebate program ($2,000), which provides for $1.75 per square foot of grass
converted to water conserving plants, to accomplish the remodeling of her
landscape. Her new landscape will save approximately 38% of the water she
was using previously.
Ms. Ponce thanked the District for the recognition. She stated that the process of
removing her turf and converting it to a WaterSmart landscape started two (2)
years ago when she retired and attended a CWA course. She indicated that she
started the project in her back yard where she learned from the many mistakes
she made there and worked with the assistance of landscape designer, Ms.
Angela Benson, to convert her front yard. She stated that she has learned how
to water her new landscape with the assistance of a moisture detector after
losing some of her plants to overwatering. She indicated that the benefits she
has gained by converting her turf is reduced water cost and the expansion of her
living space to the outdoors. She thanked the District again for the recognition
and stated she would share her experience with others. She introduced her
friends who love gardening and helping with her project, Mss. Helena Sabala and
Elva Mellor.
President Smith thanked Ms. Ponce for her efforts in setting a good standard for
our community. Director Robak suggested that Ms. Ponce attend the Citizens
Water Academy which will be held in Chula Vista in the fall.
6. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF APRIL 4,
2018
A motion was made by Director Thompson, and seconded by Director Gastelum
and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the minutes of the regular meeting of April 4, 2018.
7. 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
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Mr. Larry Olds of El Cajon indicated as a retired employee he is aware that the
District has developed a response plan for disaster preparedness. He stated he
was not sure if the District has developed a plan to respond to an
electromagnetic pulse (EMP) attack. He indicated they are generated in two
ways, by the sun or when a nuclear device is detonated high in the atmosphere.
An EMP discharge can permanently disable electrical systems. He asked if the
District has discussed how to protect itself from such an attack. He stated he just
wished to bring up the issue for the District to discuss if it has not already.
General Manager Watton indicated that the District has considered this threat
and would share the information Mr. Olds provided to staff for further review and
discussion.
ACTION ITEMS
8. BOARD
a) DISCUSS CENSURE OF DIRECTOR HECTOR GASTELUM
IMPLEMENTED BY THE OTAY WATER DISTRICT BOARD THROUGH
THE ADOPTION OF RESOLUTION NO. 4333 ON APRIL 17, 2017
Mr. Edgar Hopida of Chula Vista indicated that he is urging the District’s board to
continue the censure of Director Gastelum for his uncharacteristic and
unflattering remarks towards immigrants, Muslims and others via social media
and public statements. He stated that he felt he hasn’t shown any remorse or
changed his social media discourse. He stated that Director Gastelum’s
comments are very divisive and unbecoming of a board director who represents
a very diverse community.
Director Gastelum indicated that he took an oath on the bible to defend our
constitution and respect the laws of this Country. He stated that illegal
immigration is “illegal” and he stands by his comment on this issue.
In response to an inquiry from Director Thompson, Attorney Jeanne Blumenfeld
indicated that the censure was a response by the Board to specific conduct that
they felt violated the District’s Code of Ethics. The board instituted a sanction
due to this conduct and the board is not required to take any further action.
President Smith further indicated that the action was a one-time admonishment
and not a censorship.
Director Thompson indicated that he wished to respond to Mr. Hopida’s
comments that there is not anything to lift.
Director Robak indicated that the last paragraph of the Resolution refers to the
Board President and the powers granted to the President to conduct a review of
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the current committee assignments for Director Gastelum and determine whether
a temporary or permanent removal of some or all of his committee assignments
might be appropriate. Director Robak indicated, as President at the time, he
removed Director Gastelum from his committee assignments. He asked
President Smith if he will continue to not assign Director Gastelum to
committees.
President Smith indicated that was correct and at the end of the censure period,
the Resolution describes how consideration would be made to temporarily
remove or permanently remove Director Gastelum from committee assignments.
Director Robak indicated that he recalls that the board would evaluate after one
year and determine if the sanction would continue. He stated that he does not
monitor Director Gastelum’s social media posts, but he has not heard any
complaints. He stated that in his observation for the past year, at least internally,
Director Gastelum is working well with directors and staff.
Director Gastelum indicated that this is the reason he wished this issue
agendized. He stated that he wished to start participating in Committee
discussions. He indicated that when this issue was discussed last year, the
censure was determined to be a year and now that the year has passed, he is
requesting to be assigned to a committee.
After much discussion, the board indicated that they have seen Director
Gastelum’s commitment to learn the water industry over the last year and
commended him. They do wish to see him participate in committee discussions
on the condition that he sincerely provide an apology and acknowledge the
damage his comments have made to the Muslim Community. It was discussed
that the apology offered by Director Gastelum did not address their concerns.
Director Gastelum indicated that he had indicated in the boardroom, at the City of
Chula Vista council meeting and in the media that he did not paint everyone with
the same brush. He stated that his tweet was very specific to the individuals
raping people and was linked to an article that indicated Sweden had become the
rape capital of the world. He asked if he could not condemn rape, then what is
he able to condemn that is wrong. He stated he reiterated numerous times that
he did not paint everyone with the same brush.
President Smith indicated that another concern the board has is when a
Director’s personal beliefs and actions interferes with District business. Director
Gastelum indicated that the tweets were from his personal Twitter account and
that he had made it clear that his tweets were from his personal account and is
not related in any way to Otay WD. President Smith indicated that the board is
providing a path forward if Director Gastelum desires.
CONSENT CALENDAR
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9. 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:
President Smith noted with regard to item 7c, that staff’s original
recommendation was changed at the committee level from rejecting the bid to
awarding the contract to M-Rae Engineering, Inc. for the construction of the
pipeline cathodic protection improvements for Phase II.
Director Robak pulled items 7e, APPROVE THE TRANSFER $30.0 MILLION OF
POTABLE RESERVES TO CALPERS AND THE TRANSFER $1.8 MILLION OF
SEWER RESERVES TO CALPERS; AND APPROVE THE SALE OF
CURRENTLY HELD INVESTMENTS, AS NEEDED, TO TRANSFER THESE
FUNDS, for discussion.
A motion was made by Director Thompson, seconded by Director Robak and
carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve consent calendar items 7a, 7b and 7d (noted below).
a) APPROVE AN INCREASE TO THE CIP P2561 BUDGET IN THE
AMOUNT OF $150,000 AND AWARD A CONSTRUCTION CONTRACT
TO LAYFIELD USA CORPORATION FOR THE RESERVOIR 711-3
FLOATING COVER AND LINER REPLACEMENT PROJECT IN AN
AMOUNT NOT-TO-EXCEED $1,997,000.40
b) APPROVE CALTRANS UTILITY AGREEMENT NO. 33718 FOR SR-11
UTILITY RELOCATIONS ON ENRICO FERMI DRIVE AND ALTA ROAD
d) REJECT ALL BIDS FOR THE CONSTRUCTION OF THE VALVE
REPLACEMENT PROGRAM – PHASE I PROJECT
President Smith presented item 7c for discussion:
c) REJECT A BID FOR THE CONSTRUCTION OF THE PIPELINE
CATHODIC PROTECTION IMPROVEMENTS – PHASE II PROJECT
(NOTWITHSTANDING, THE COMMITTEE REJECTED STAFF’S
RECOMMENDATION AND RECOMMENDS THAT THE CONTRACT BE
AWARDED TO THE SOLE BIDDER, M-RAE ENGINEERING, INC. IN
THE AMOUNT OF $347,000) [NOTE: APPROVAL OF THIS ITEM ON
THE CONSENT CALENDAR IS AN APPROVAL OF THE BOARD
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COMMITTEE’S RECOMMENDATION TO AWARD A CONTRACT TO M-
RAE ENGINEERING, INC. FOR THE CONSTRUCTION OF THE
PIPELINE CATHODIC PROTECTION IMPROVEMENTS – PHASE II
PROJECT IN THE AMOUNT OF $347,000]
In response to an inquiry from Director Thompson, General Manager Watton
indicated that the practice has been that if the Committee recommended
changes or takes a different direction, this is reflected in the minutes from the
Committee discussion. This would avoid having different versions of the staff
report held in the District’s files.
The action being recommended is to award the contract to the single bidder, M-
Rae Engineering, Inc. for $347,000. Director Croucher indicated that staff agrees
and is happy with the Engineer, Operations and Water Resources Committee’s
(EO&WR Committee) recommendation to go forward with the award of the
contract. The Committee’s thought was that M-Rae Engineering, Inc. spent
money and effort to submit the bid and they did not feel they should be punished
because no other contractor bid on the project. It was also determined from the
discussion that staff would make future projects a little larger to encourage bids
from contractors providing cathodic protection services.
A motion was made by Director Thompson, seconded by Director Robak and
carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the EO&WR Committee’s recommendation.
President Smith presented item 7e for discussion:
e) APPROVE THE TRANSFER $30.0 MILLION OF POTABLE RESERVES
TO CALPERS AND THE TRANSFER $1.8 MILLION OF SEWER
RESERVES TO CALPERS; AND APPROVE THE SALE OF
CURRENTLY HELD INVESTMENTS, AS NEEDED, TO TRANSFER
THESE FUNDS
Assistant Chief of Finance Kevin Koeppen indicated that staff is requesting that
the board approve the transfer of $30 million of potable reserves and $1.8 million
of sewer reserves to CalPERs and approve the sale of currently held
investments, as needed, to transfer these funds. The transfers are being made in
the continuance of informational items and recommendations presented to the
board at the May 2 and May 21, 2018 meetings which are aimed at reducing the
District’s Unfunded Actuarial Liability (UAL pension costs). He stated as of June
7
30, 2018 the District is projected to have an unfunded liability of $51.3 million
which carries an interest cost of 7%. Staff indicated that by making this
advanced payment, the District will reduce this high interest UAL cost and save
the District approximately $16.4 million over the next 25 years. He indicated to
transfer the funds to CalPERs, the District will need to sell some of its
investments. Staff estimates the loss on the sale of those investments to be
approximately $75,000. However, this loss will be entirely offset by the financial
benefit of reducing the 7% interest cost charged by CalPERs.
Mr. Koeppen indicated in response to a comment from Director Robak that the
District currently has unrestricted reserves that would be used to pay for CIP
projects. These unrestricted reserves can be used for whatever is most cost
beneficial for the District and it has been determined that utilizing these funds to
pay down debt with a 7% interest cost (this is the District’s highest interest cost
debt), would be the most beneficial to the District.
In response to an inquiry from Director Gastelum, Mr. Koeppen indicated that the
remaining $20 million would be paid off over approximately 15 years. He
indicated that the District has “targets” set for its cash levels and the $31.8 million
is the maximum that can be used and still maintain the District cash target levels.
Director Thompson commended staff and indicated that it is very seldom that the
board can take an action and save $16 million. He stated that the District has
approximately 50,000 water customers and $16 million equates to an
approximate savings of $340 per customer.
A motion was made by Director Robak, seconded by Director Gastelum and
carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve staff’s recommendation.
10. RECESS OTAY WATER DISTRICT BOARD MEETING AND CONVENE OTAY
WATER DISTRICT FINANCING AUTHORITY BOARD MEETING
The Otay Water District Board meeting was recessed at 4:29 p.m. and the
meeting of the Otay Water District Financing Authority Board was convened at
4:29 p.m.
11. ROLL CALL
Directors Present: Croucher, Gastelum, Robak, Smith and Thompson
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CONSENT CALENDAR
12. 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 Robak, seconded by Director Thompson and
carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the following consent calendar item:
a) ADOPT RESOLUTION NO. 2018-01 TO AMEND THE OTAY WATER
DISTRICT FINANCING AUTHORITY BY-LAWS AUTHORIZING THE
AUTHORITY TO HOLD REGULAR MEETINGS ON EACH DATE THAT
IS A REGULAR MEETING DATE OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT
13. ADJOURN OTAY WATER DISTRICT FINANCING AUTHORITY BOARD
MEETING AND CONVENE OTAY WATER DISTRICT BOARD MEETING
The Otay Water District Financing Authority Board meeting was recessed at
4:30 p.m. and the Otay Water District Board meeting was convened at 4:30 p.m.
ACTION ITEMS
14. BOARD
b) DISCUSSION OF 2017 BOARD MEETING CALENDAR
There were no changes to the calendar.
INFORMATIONAL ITEMS
15. THIS ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL
PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING
AGENDA ITEM.
a) INFORMATIONAL UPDATE ON THE CURRENT AGREEMENT WITH
THE CITY OF SAN DIEGO, THE CURRENT COST OF RECYCLED
WATER, AND ALTERNATIVE SUPPLY STUDIES (CAMERON)
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Director Thompson indicated with regard to the take-or-pay contract with the City
of San Diego that if the situation does not change, he would like to see the
District pursue bigger users as he would like to have the water used. General
Manager Watton indicated that the District is bound by Proposition 218 and it is
difficult to navigate around it. He stated that staff will provide a more extensive
brief on the activities and studies performed over the years reviewing recycled
water. The studies will give an outline of what the District has reviewed and
determined. Staff plans to provide this report to committee in July 2018.
b) RECEIVE A PRESENTATION OF THE IMPACT OF SEWER ISSUING
DEBT IN FY 2019 VS. FY 2020; AND DIRECT STAFF TO PREPARE
THE SEWER 218 NOTICES USING THE RATES ASSOCIATED WITH
THE FY 2020 DEBT ISSUANCE (KOEPPEN)
The board noted receipt of this item and waived presentation as it was reviewed
in detail in committee.
c) RECEIVE AN UPDATE ON THE DISTRICT’S COMPUTER AND
CYBERSECURITY LANDSCAPE (KERR)
It was indicated that this report provides general information as the District did
not wish to provide too much detail on the District’s security systems as it could
compromise the system. It was indicated in response to an inquiry from Director
Robak that the District has done its due diligence and is employing all measures
and safeguards to protect customer and employee data. It was inquired of the
District’s attorney if a discussion could be agendized for closed session
discussion and Attorney Jeanne Blumenfeld indicated that there is no State
provision that allows the discussion of security in closed session. Director
Thompson suggested that the matter be referred to the legislative list to submit
for legislative change that would allow such discussions in closed session. It is
indicated that Directors contact General Manager Watton to meet with staff if
they wish more detailed information on the District’s computer and cybersecurity.
REPORTS
16. GENERAL MANAGER’S REPORT
General Manager’s Report
General Manager Watton reviewed handouts that were provided on the dias for
each member of the board (see attached). He also presented information from
his report which included an update on drone testing and software evaluation, the
assessment of the Cityworks system, CWA’s bid and solicitation portals, water
rate increase notices and sewer 2018 notices, Salt Creek Golf Course lease
10
release agreement, the Salt Creek Roll Reservoir trails, and water sales and
purchases.
CWA Report
Director Croucher reported that CWA held a board retreat where the discussion
focused on the future. There was a lot of good input from members of the board
and CWA came away with a list of items they will be pursuing, including meeting
with the member agencies’ general managers to receive their input and to
address and discuss that CWA views the general managers as subject matter
experts. While CWA looks for their input, their input is not necessarily to provide
direction. CWA is also focusing on legislative matters, working with MWD and
CWA’s future goals.
President Smith further reported that during the regular portion of CWA’s board
workshop/board meeting, they discussed the changes to the policy for the rate
stabilization fund. The changes will provide for lower rate increases from CWA.
He also shared that CWA’s MWD representatives voted “no” on the Bay Delta Fix
at MWD’s board meeting and CWA’s board asked that staff develop policies on
the Bay Delta Fix. He stated they also discussed at the workshop developing a
drought contingency plan for the Colorado River as it is predicted that there will
be a drought on the Colorado River for the next two years. He indicated that the
CWA board also reviewed all the legal issues with MWD and that two of the four
CWA representatives to MWD board will be replaced. President Smith and Mr.
Jerry Butkiewicz from the City of San Diego have been appointed to the two open
seats. His term will begin on July 24 for six years. He stated that this will be the
first time that the south and the east agencies have a representative at MWD. It
generally has been two north county and two City of San Diego representatives.
17. DIRECTORS' REPORTS/REQUESTS
Director Croucher indicated that President Smith will be “seated” at the August
20 and 21 meeting at MWD. President Smith noted that he will be sworn in on
July 24 and will be seated at MWD’s board meeting on August 21, 2018.
Director Croucher encouraged that Directors attend as this is an important event
for Otay WD.
Director Gastelum reported that he met with General Manager Watton for his
quarterly meeting. He stated that he also attended a presentation by Sweetwater
Authority’s General Manager, Ms. Tish Berge, on water supplies and aging
infrastructure. He also participated in a webinar on customer service where it
discussed doing more with less and he attended a Congressional Luncheon for
Congressman Darryl Issa.
Director Robak indicated he liked the new Strategic Plan booklet. He stated that
he would like to see hydro-stations installed at the Water Conservation Garden
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and asked if possibly the District could help them with acquiring a hydro-station.
He commended President Smith for being appointed as one of CWA’s
representative to MWD’s board of directors. He stated that he felt that President
Smith is a thoughtful and knowledgeable individual who asks very good
questions. He stated that he will be a very good representative, not just for Otay
WD, but the region as a whole.
18. PRESIDENT’S REPORT
President Smith indicated that he attended the American Water Works
Association Annual Conference. He stated that it was really fascinating to see
the cutting edge of water at a national conference and that Asset Management
was a large focus at the conference. He indicated that he really would like to see
Asset Management be taken to the next level where the District is monetizing
risk. That is, including actual costs to repair failed infrastructure and an estimate
of how much it would cost to replace/fix infrastructure within the Asset
Management system. They also discussed communicating with customers of
how assets/infrastructure are managed, maintained and repaired so they
understand why agencies raise rates.
President Smith indicated that the District’s legal counsel has information in
response to an inquiry from Director Thompson concerning the ability to discuss
security in closed session. Attorney Jeanne Blumenfeld indicated she misspoke
and that there is a public security exemption under the Brown Act, Government
Code Section 54957, which allows public entities to discuss threats to security
and, specifically, issues relating to water, the supply of water, and when
distribution of water is threatened.
19. CLOSED SESSION
The board recessed to closed session at 5:15 p.m. to discuss the following
matters:
a) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
[GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017-
00019348-CU-WM-CTL
b) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION
[GOVERNMENT CODE §54956.9]
MARK COZIAHR vs. OTAY WATER DISTRICT; CASE NO. 37-2015-
00023413
c) PUBLIC EMPLOYEE PERFORMANCE EVALUATION [GOVERNMENT
CODE §54957.6]
12
TITLE: GENERAL MANAGER
The board reconvened at 5:59 p.m. and Attorney Blumenfeld reported that the
board met in closed session and took no reportable actions.
20. ADJOURNMENT
With no further business to come before the Board, President Smith adjourned
the meeting at 6:00 p.m.
___________________________________
President
ATTEST:
District Secretary
13
President’s Report
Tim Smith
July 11, 2018
Board Meeting
# Date Meeting Purpose
1 6-Jun OWD Regular Board Meeting Monthly board meeting
2 7-Jun Metro Commission Monthly Commission Meeting
3 12-14 Jun American Water Works
Association Annual Conference Receive Industry Updates
4 18-Jun Committee Agenda Briefing
Met with General Manager Watton to
review items that will be presented at the
June committee meetings
5 19-Jun F & A Committee Reviewed items that will be presented at
the July board meeting
6 20-Jun Ad Hoc General Manager
Evaluation Committee
Discussed the General Manager's
Evaluation
7 21-Jun CWA Matters Meeting Met with Director Croucher and General
Manager Watton to discuss CWA matters
8 25-Jun OWD EO&WR Committee Reviewed items that will be presented at
the July board meeting
1
MINUTES OF THE
SPECIAL MEETING OF THE BOARD OF DIRECTORS
OTAY WATER DISTRICT
July 30, 2018
1. The meeting was called to order by President Smith at 3:03 p.m.
2. ROLL CALL
Directors Present: Gastelum, Robak (arrived at 3:20 p.m.), Smith and Thompson
Directors Absent: Director Croucher (assigned to fight fires)
Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff,
Chief of Engineering Rod Posada, Assistant Chief of Operations
Jose Martinez, Engineering Manager Bob Kennedy, Engineering
Manager Dan Martin, Field Services Manager Brandon DiPietro,
District Secretary Susan Cruz and others per attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
A motion was made by Director Gastelum, seconded by Director Thompson and
carried with the following vote:
Ayes: Directors Gastelum, Smith and Thompson
Noes: None
Abstain: None
Absent: Directors Croucher and Robak
to approve the agenda.
5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
6. DISCUSSION AND TOUR OF THE LAYFIELD GROUP FACILITIES
Engineering Manager Dan Martin presented a video of the recently completed work of
Layfield Group at the 571-1 36-million-gallon reservoir. The video depicted the
installation of the floating cover from the beginning of the installation (early March
2018) to the inflation of the cover for testing and inspection (mid-April 2018). He
2
stated that the tour of Layfield Group’s facilities will mainly encompass the fabrication
process of the floating covers.
The board and staff left the boardroom to travel to Layfield Group’s offices located at
2500 Sweetwater Springs Boulevard in Spring Valley at 3:07 p.m.
Mr. Mike Da Silva, Sales Manager of Layfield Group, lead the tour. Also, in
attendance from Layfield Group was Vice President Rob Rempel and Technical
Project Manager Ross Hartstock. The tour started with an overview of the Layfield
Group company. Layfield Group is headquartered in Vancouver Canada and provides
services internationally. They are the leading North American manufacturer/fabricator
and installer of geomembrane and film products and have been in business for 40
years.
Mr. Da Silva then reviewed the floating cover and liner materials, the layout and
construction of the cover and liner panels, and provided samples of the materials.
He toured the group through their fabricating facility where they demonstrated how the
cover and liners were laid out panel by panel and then bonded together by heat
welding them to thermally fuse the panels together. The Layfield Group
representatives responded to inquiries and the board and staff left to return to the
District’s office at 4:15 p.m.
7. ADJOURNMENT
Board members and staff returned to the District’s boardroom at 4:24 p.m. and with no
further business to come before the Board, President Smith adjourned the meeting at
4:25 p.m.
___________________________________
President
ATTEST:
District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2018
SUBMITTED BY:
Stephen Beppler
Senior Civil Engineer
PROJECT: R2145-001103 DIV. NO.: 3
APPROVED BY:
Bob Kennedy, Engineering Manager
Dan Martin, Assistant Chief of Engineering
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Award of a Contract to ERS Industrial Services, Inc. for the
Ralph W. Chapman Water Reclamation Facility (RWCWRF) Filter
Media and Nozzles Replacement Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
award a contract to ERS Industrial Services, Inc. (ERS) and to
authorize the General Manager to execute an agreement with ERS for
the Ralph W. Chapman Water Reclamation Facility (RWCWRF) Filter Media
and Nozzles Replacement Project (CIP R2145) in an amount not-to-
exceed $115,765.58 (see Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a
contract with ERS in an amount not-to-exceed $115,765.58 for the
RWCWRF Filter Media and Nozzles Replacement Project (CIP R2145).
2
ANALYSIS:
The RWCWRF produces Title 22 recycled water from the District’s
sanitary sewer collection system in the Jamacha drainage basin
located in the northern area of the District. A key part of the
treatment process at the plant is the filtration of the water through
two (2) parallel filters prior to disinfection and the flow entering
the recycled water system. Filter media consists of sand and
anthracite layers, with media retention nozzles to prevent the
material from escaping the filter with the process flow. The typical
cycle for media replacement is every five (5) years on average, with
the current media installed in 2011. Testing of the media is
performed every year after the first three (3) years of service to
determine when to replace the media based upon material degradation.
The existing media retention nozzles are constructed of PVC and were
installed in 1992. Their age and exposure to high chlorine dosages
during backwashing make them vulnerable to breakage. The Project
involves removing and replacing the filter media and the 1,300
nozzles in the two (2) filters.
The Project was solicited for quotations on August 15, 2018 using
BidSync, an online bid solicitation website. A Pre-Bid Meeting was
held on August 29, 2018, which was attended by two (2) prospective
contractors. Quotes were received as of the deadline of September
19, 2018, with the following result:
CONTRACTOR TOTAL BID
AMOUNT
1 ERS Industrial Services, Inc., Fremont, CA $115,765.58
2 Carbon Activated Corporation, Compton, CA $142,000.00
The Engineer’s Estimate is $130,000. There are limited companies
that can provide the materials and services for replacement of the
filter media, resulting in the number of quotes received for the
Project.
A review of the quotes was performed by District staff for
conformance with the solicitation requirements and determined that
ERS was the lowest responsive and responsible bidder. ERS holds a
Class A, General Engineering, Contractor’s License in the State of
California, which meets the solicitation document’s requirements, and
is valid through June 30, 2020. The reference checks indicated a
very good to excellent performance record on similar projects
completed for the Elsinore Valley Municipal Water District, the City
of Redding Water Treatment Department, and the City of Oceanside
Water Treatment Plant. An internet background search of the company
was performed and revealed no outstanding issues with this company.
ERS previously replaced the filter media for the District in 2011 and
their work was very good.
3
Staff verified that the bid bond provided by ERS is valid. Staff
will also verify that ERS’s Performance Bond and Labor and Materials
Bond are valid prior to execution of the contract.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP R2145, as approved in the FY 2019 budget, is
$130,000. Total expenditures, plus outstanding commitments and
forecast including this contract, are $125,396.00. See Attachment B
for budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP R2145 is sufficient to support
the Project.
The Finance Department has determined that, under the current rate
models, 100% of the funding is 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 responsive
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.
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Exhibit A – Location Map
ATTACHMENT A
SUBJECT/PROJECT:
R2145-001103
Award of a Contract to ERS Industrial Services, Inc. for
the Ralph W. Chapman Water Reclamation Facility (RWCWRF)
Filter Media and Nozzles Replacement Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on October 16, 2018
and the following comments were made:
It was recommended by staff that the Board award a contract to
ERS Industrial Services, Inc. (ERS) and authorize the General
Manager to execute an agreement with ERS for the Ralph W.
Chapman Water Reclamation Facility (RWCWRF) Filter Media and
Nozzles Replacement Project (CIP R2145) in an amount not-to-
exceed $115,765.58.
The Committee inquired about the cost for the Project’s design
work. Staff stated that the Project did not involve any design
work and only required equipment replacement. It was noted that
staff ordered the equipment as a procurement cost.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board as a
Consent Item.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
R2145-001103
Award of a Contract to ERS Industrial Services, Inc. for
the Ralph W. Chapman Water Reclamation Facility (RWCWRF)
Filter Media and Nozzles Replacement Project
OTAY WATER DISTRICTRALPH W. CHAPMAN WATER RECLAMATION FACILITY (RWCWRF) FILTER MEDIA & NOZZLES REPLACEMENT CIP R2145P:
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1
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2018
SUBMITTED BY:
Stephen Beppler
Senior Civil Engineer
PROJECT: R2118-001103
& S2051-001103
DIV. NO.: 3
APPROVED BY:
Bob Kennedy, Engineering Manager
Dan Martin, Assistant Chief of Engineering
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Approval to Increase the CIP R2118 Budget in an Amount of
$25,000 and Award of a Construction Contract to Tharsos, Inc.
for the Ralph W. Chapman Water Reclamation Facility Headworks
Improvements and Steele Bridge SPS Wet Well Improvements
Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board):
1. Approve to increase the CIP R2118 budget by $25,000 (from
$150,000 to $175,000);
2. Award a construction contract to Tharsos, Inc. (Tharsos) and
Authorize the General Manager to execute an agreement with
Tharsos for the Ralph W. Chapman Water Reclamation Facility
(RWCWRF) Headworks Improvements (CIP S2051) and Steele Bridge
Sewage Pump Station (Steele Bridge SPS) Wet Well Improvements
(CIP R2118) Project in an amount not-to-exceed $223,490.00 (see
Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
2
PURPOSE:
To increase the overall CIP R2118 budget in the amount of $25,000
(from $150,000 to $175,000) and to obtain Board authorization for the
General Manager to enter into a construction contract with Tharsos
for the RWCWRF Headworks Improvements (CIP S2051) and Steele Bridge
SPS Wet Well Improvements (CIP R2118) Project in an not-to-exceed
$223,490.00.
ANALYSIS:
The District provides sanitary sewer collection service in the
Jamacha drainage basin located in the northern area of the District.
The Project involves improvements at both the Steele Bridge SPS,
which sends wastewater to RWCWRF, and at the treatment plant
headworks.
At the Steele Bridge SPS, clogging of the sewage suction lift
wastewater pumps is a frequent occurrence and requires significant
maintenance staff time to clear debris. The addition of a bar screen
within the wet well is expected to reduce the number of pump service
calls by staff. To adequately access the wet well after the screen
addition, a new top slab with access hatches on either side of the
screen is required. Additional top slab openings for instrumentation
and pump piping are also needed. The construction contract’s scope
of work at the station generally consists of removal and disposal of
the existing wet well top slab, construction of a replacement
concrete top slab with access hatches and hand holes, furnishing and
installing of a new stainless steel wastewater bar screen with
grouting, and all other appurtenant work as required by the Contract
Documents. This portion of the Project had been previously bid and
all bids were rejected in FY 2018 due to budgetary issues.
At the RWCWRF, the channel wall supporting the rotary screen at the
headworks of the plant is deteriorating from exposure to the raw
wastewater being discharged from the screen. The concrete wall has a
protective coating on the channel interior, but the screen discharge
contacts the top of the wall, which is unprotected and now
deteriorating. Adjacent to this is the metering flume channel where
several sections of the concrete wall have spalled and the grating
support channels have become unanchored creating a safety tripping
hazard. Additionally, the drain at the screening containment area is
corroded and clogged. The construction contract’s scope of work for
the RWCWRF headworks generally consists of demolition and replacement
of a section of the screening channel wall with protective coating
inside and outside of the channel, repair of the meter flume channel
with grating support channel replacement, installation of a new
screening containment drain and piping, and all other appurtenant
work as required by the Contract Documents.
3
The Project was advertised for bid on August 14, 2018 using BidSync,
an online bid solicitation website. The Project was also advertised
in the Daily Transcript. During the Project advertisement period, a
copy of the Project advertisement was e-mailed directly to
contractors that had either performed work for the District or
submitted a bid on a previous project. This is in addition to the
notifications provided by BidSync to contractors in the Southern
California area, with over several hundred identified for the project
classifications checked for this Project. BidSync provided
electronic distribution of the Bid Documents, including
specifications, plans, and addenda. One (1) addendum was posted to
BidSync to distribute the Pre-Bid Meeting minutes and address
questions and clarifications to the contract documents during the
bidding period. Bids were publicly opened on September 13, 2018,
with the following result:
CONTRACTOR TOTAL BID
AMOUNT
1 Tharsos, Inc., La Mesa, CA $223,490.00
The Engineer’s Estimate is $200,000. Staff followed up with several
of the contractors that had viewed the project to understand the
various reasons that prevented them from bidding. The explanations
varied by contractor, including citing the Project was not a good fit
for their construction abilities, noting that they had other projects
to bid and did not have time to consider this Project, or stating
that it was not a large enough Project to pursue.
A review of the bids was performed by District staff for conformance
with the contract requirements and determined that Tharsos, the sole
bidder on the Project, was a responsive and responsible bidder.
Tharsos holds a Class A, General Engineering, Contractor’s License in
the State of California, which meets the contract document’s
requirements, and is valid through January 31, 2019. The reference
checks indicated a very good to excellent performance record on
similar projects. An internet background search of the company was
performed and revealed no outstanding issues with this company.
Tharsos has not previously worked for the District, but has recently
performed similar work for Los Angeles County Sanitation District,
City of San Juan Capistrano, and Lakeside Water District and their
performance was good.
Staff verified that the bid bond provided by Tharsos is valid. Staff
will also verify that Tharsos’ Performance Bond and Labor and
Materials Bond are valid prior to execution of the contract.
Tharsos was the apparent low bidder for the Steele Bridge SPS project
when the first bid was opened on January 23, 2018 and the bids were
rejected at the March 7, 2018 Board meeting. Staff compared the
4
January 2018 bid from Tharsos and found the line item for the
concrete wet well top slab is $20,000 higher on Tharsos’ current bid
price. The contractor indicated that numerous factors contributed to
this increase including current and further potential jumps in
material costs by the time his purchase would be made.
The Capital Improvement Program budget approved by the Board on
May 21, 2018 for the RWCWRF Headworks Improvements (CIP S2051) is
$250,000 and Steele Bridge SPS Wet Well Improvements (CIP R2118) is
$150,000. Approximately $36,000 on CIP R2118 and $86,000 on CIP
S2051 have been expended to date on the planning and design phases of
the Projects, as shown in Attachments B-1 and B-2 of this staff
report.
With the award of the construction contract, staff has estimated that
the Project budget of $250,000 for CIP S2051 will be adequate to
complete the Project, but for CIP R2118, the Project budget of
$150,000 is expected to be exceeded by $25,000. The approved Project
budget of $175,000 for CIP R2118 will support the completion of the
Project.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP R2118, as approved in the FY 2019 budget, is
$150,000. Total expenditures, plus outstanding commitments and
forecast including this contract, are $172,179.00. See Attachment B-
1 for budget detail. Based on a review of the financial budget, the
Project Manager anticipates that with a budget increase of $25,000,
CIP R2118 will be completed within the new budget amount of $175,000.
The total budget for CIP S2051, as approved in the FY 2019 budget, is
$250,000. Total expenditures, plus outstanding commitments and
forecast including this contract, are $248,807.00. See Attachment B-
2 for budget detail. Based on a review of the financial budget, the
Project Manager anticipates that the budget for CIP S2051 is
sufficient to support the Project.
The Finance Department has determined that, under the current rate
model, and with the current bond sale, 100% of the funding for CIP
R2118 is available from the Betterment Fund and 100% of the funding
for CIP S2051 is 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 responsive
manner” and the District’s Vision, “To be a model water agency by
5
providing stellar service, achieving measurable results, and
continuously improving operational practices.”
LEGAL IMPACT:
None.
SB:jf
P:\WORKING\CIP S2051 RWCWRF Headworks Improvements\Staff Reports\BD 11-07-18 Staff Report RWCWRF
Headworks And Steele Bridge SPS Wet Well Award Construction Project.Docx
Attachments: Attachment A – Committee Action
Attachment B-1 – R2118 Budget Detail
Attachment B-2 – S2051 Budget Detail
Exhibit A – Location Map
ATTACHMENT A
SUBJECT/PROJECT:
R2118-001103
S2051-001103
Approval to Increase the CIP R2118 Budget in an Amount of
$25,000 and Award of a Construction Contract to Tharsos,
Inc. for the Ralph W. Chapman Water Reclamation Facility
Headworks Improvements and Steele Bridge SPS Wet Well
Improvements Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this item at a meeting held on October 16, 2018 and the
following comments were made:
After providing the staff report to the Committee, staff
recommended that the Board approve to increase the CIP R2118
budget by $25,000 (from $150,000 to $175,000) and award a
construction contract to Tharsos, Inc. (Tharsos) for the Ralph W.
Chapman Water Reclamation Facility (RWCWRF) Headworks
Improvements (CIP S2051) and Steele Bridge Sewage Pump Station
(Steele Bridge SPS) Wet Well Improvements (CIP R2118) Project in
an amount not-to-exceed $223,490.00.
In response to a question from the Committee, staff stated that
the Steele Bridge SPS does not have a bar screen and believes
that the addition of a bar screen will reduce the number of pump
service calls by staff.
It was noted that should the new screen in the Steele Bridge SPS
become clogged with debris, no sewer spill will result as flow
can bypass the screen by overtopping it or continue onto the
Rancho San Diego Sewage Pump Station.
The Committee inquired about the scope of work for the RWCWRF
Headworks Improvements (CIP S2051). Staff stated that the
RWCWRF’s scope of work includes replacement of a section of the
screening channel wall with protective coating inside and outside
of the channel and installation of a new screening containment
drain and piping. Additional details of the RWCWRF’s scope of
work are provided on page 2 of the staff report.
The Committee complimented Engineering and Operations staff on
the coordination of this project and with other work at the
treatment plant that will be performed during a facility shutdown
in late January 2019.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board as a
Consent Item.
ATTACHMENT B-1 – R2118 Budget Detail
SUBJECT/PROJECT:
R2118-001103
S2051-001103
Approval to Increase the CIP R2118 Budget in an Amount of
$25,000 and Award of a Construction Contract to Tharsos,
Inc. for the Ralph W. Chapman Water Reclamation Facility
Headworks Improvements and Steele Bridge SPS Wet Well
Improvements Project
Bud
Project Budget Details
R2118 – Steele Bridge SPS Wet Well Improvements
9/20/2018
Budget Committed Expenditures
Outstanding
Commitment
Projected
Final Cost Vendor/Comments
$150,000 & Forecast
Planning
Regulatory Agency
Fees
$50 $50 $0 $50 PETTY CASH CUSTODIAN
Standard Salaries $3,854 $3,854 $0 $3,854
Total Planning $3,904 $3,904 $0 $3,904
Design
Consultant Contracts $8,035 $8,035 $0 $8,035 RICK ENGINEERING
COMPANY
Standard Salaries $23,145 $23,145 $0 $23,145
Total Design $31,180 $31,180 $0 $31,180
Construction
Consultant Contracts $10,000 $0 $10,000 $10,000 Construction Management
Construction Contract $106,867 $0 $106,867 $106,867 THARSOS, INC.
$8,229 $0 $8,229 $8,229 Contingency @ 7.7% of
Construction Contract
Standard Salaries $12,000 $729 $11,271 $12,000
Total Construction $137,096 $729 $136,367 $137,096
Grand Total $172,179 $35,813 $136,367 $172,179
ATTACHMENT B-2 – S2051 Budget Detail
SUBJECT/PROJECT:
R2118-001103
S2051-001103
Approval to Increase the CIP R2118 Budget in an Amount of
$25,000 and Award of a Construction Contract to Tharsos,
Inc. for the Ralph W. Chapman Water Reclamation Facility
Headworks Improvements and Steele Bridge SPS Wet Well
Improvements Project
Bud
Project Budget Details
S2051 - RWCWRF Headworks Improvements
9/20/2018
Budget Committed Expenditures
Outstanding
Commitment
Projected
Final Cost Vendor/Comments
$250,000 & Forecast
Planning
Standard Salaries $6,815 $6,815 $0 $6,815
Total Planning $6,815 $6,815 $0 $6,815
Design
Consultant Contracts $9,950 $9,950 $0 $9,950 HUNSAKER & ASSOCIATES
$41,918 $29,709 $12,209 $41,918 KEH & ASSOCIATES INC
Standard Salaries $37,568 $37,568 $0 $37,568
Total Design $89,436 $77,227 $12,209 $89,436
Construction
Consultant Contracts $10,000 $0 $10,000 $10,000 Construction Management
$6,953 $0 $6,953 $6,953 KEH & ASSOCIATES INC
Construction Contract $116,623 $0 $116,623 $116,623 THARSOS, INC.
$8,980 $0 $8,980 $8,980 Contingency @ 7.7% of
Construction Contract
Standard Salaries $10,000 $2,203 $7,797 $10,000
Total Construction $152,556 $2,203 $150,353 $152,556
Grand Total $248,807 $86,245 $162,562 $248,807
OTAY WATER DISTRICTRALPH W. CHAPMAN WATER RECLAMATION FACILITY(RWCWRF) HEADWORKS IMPROVEMENTS & STEELE BRIDGE SEWER PUMP STATION IMPROVEMENTS CIP S2051CIP R2118P:
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STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2018
SUBMITTED BY:
Stephen Beppler
Senior Civil Engineer
PROJECT: P2574-001103
P2625-001103
DIV. NO.
5
APPROVED BY:
Bob Kennedy, Engineering Manager
Dan Martin, Assistant Chief of Engineering
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Approval to Decrease the CIP P2574 Budget in an amount of
$360,000, Increase the CIP P2625 Budget in an Amount of
$710,000, and Award of a Construction Contract to Cass Arrieta
for the Vista Vereda (CIP P2574) and Hidden Mesa Road (CIP
P2625) Water Line Replacement Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board):
1. Decrease the budget for CIP P2574 by $360,000 (from $2,000,000
to $1,640,000);
2. Increase the budget for CIP P2625 by $710,000 (from $1,500,000
to $2,210,000);
3. Award a construction contract to Cass Construction, Inc. dba
Cass Arrieta (Cass Arrieta) and Authorize the General Manager
to execute an agreement with Cass Arrieta for the Vista Vereda
(CIP P2574) and Hidden Mesa Road (CIP P2625) Water Line
Replacement Project in an amount not-to-exceed $2,848,364.00
(see Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
2
PURPOSE:
To obtain Board authorization to decrease the CIP P2574 budget in the
amount of $360,000 (from $2,000,000 to $1,640,000), increase the CIP
P2625 budget in the amount of $710,000 (from $1,500,000 to
$2,210,000), and to obtain Board authorization for the General
Manager to enter into a construction contract with Cass Arrieta for
the Vista Vereda (CIP P2574) and Hidden Mesa Road (CIP P2625) Water
Line Replacement Project (Project) in an amount not-to-exceed
$2,848,364.00.
ANALYSIS:
The District provides water distribution service and sanitary sewer
collection service in the Jamacha drainage basin located in the
northern area of the District. The existing 12-inch Cement Mortar
Lined and Coated (CML&C) Steel pipe that serves as the distribution
main for the western portion of the 978 Pressure Zone along Vista
Vereda to Hidden Mesa Road was constructed in 1959. Several water
main breaks have occurred in the area that have led to a
determination that the pipeline has reached the end of its useful
life and should be replaced. The original pipeline was constructed
in easements prior to any development in the area. Over the years,
with the subdivision of properties and construction of homes, the
difficult to access easements are no longer a desirable location for
placing an important transmission water main. With a significant
segment of the water line in Hidden Mesa Road installed in the mid-
1960’s, the relocation of the transmission capabilities from Vista
Vereda to Hidden Mesa Road provided a long-term reliability and
maintenance solution. Following the preliminary design phase of the
Vista Vereda water line, CIP P2625 for the Hidden Mesa Road portion
of the Project was created and the Project’s budget was established
to cover only construction costs. Subsequently, it was decided to
allocate design and construction management costs to each of the
Project’s two (2) CIPs. This resulted in moving expenditures from
CIP P2574 to CIP P2625.
The scope of work generally consists of construction along Vista
Vereda and Hidden Mesa Road of approximately 3,700 linear feet of 12-
inch Polyvinyl chloride (PVC) water line and 400 linear feet of 8-
inch PVC water line, including appurtenances, restoration of
services, surface restoration, traffic control, and all testing and
inspection as required by the Contract Documents.
On August 23, 2018, the Project was formally advertised for bid using
BidSync, an online bid solicitation website. The Project was also
advertised in the Daily Transcript and the District’s website.
3
BidSync provided electronic distribution of the Bid Documents,
including specifications, plans, and addenda. A Pre-Bid Meeting was
held on September 6, 2018, which was attended by four (4) general
contractors and subconsultants. Four (4) addenda were sent out to
all bidders and plan houses to address questions and clarifications
to the contract documents during the bidding period and distribute
the County of San Diego Permits.
Bids were publicly opened on September 26, 2018, and the bid analysis
was completed with the following results:
CONTRACTOR TOTAL BID AMOUNT
1 Cass Arrieta (El Cajon, CA) $2,848,364.00
2 Bali Construction, Inc. (South El Monte, CA) $2,854,325.00
3 Palm Engineering Construction Company, Inc.
(San Diego, CA) $3,075,510.00
4 Burtech Pipeline, Inc. (Encinitas, CA) $3,211,270.00
The Engineer’s Estimate is $3,100,000.
A review of the bids was performed by District staff for conformance
with the contract requirements and determined that Cass Arrieta was
the lowest responsive and responsible bidder. Cass Arrieta holds a
Class A, General Engineering, Contractor’s License in the State of
California, which meets the contract document’s requirements, and is
valid through April 30, 2019. The reference checks indicated a very
good to excellent performance record on similar projects. An
internet background search of the company was performed and revealed
no outstanding issues. Cass Arrieta has previously worked for the
District successfully constructing the Calavo Basin Sewer
Rehabilitation – Phase 1 project in 2015 and is currently working
under a District Construction Agreement for water and recycled water
facilities for the Otay Ranch Village 3 North development. Other
recently performed similar work includes projects for Sweetwater
Authority and Helix Water District with good performance.
Staff verified that the bid bond provided by Cass Arrieta is valid.
Staff will also verify that Cass Arrieta’s Performance Bond and Labor
and Materials Bond are valid prior to execution of the contract.
Reviewing the low bidder’s bid items and their distribution of cost
between the two (2) CIPs has approximately $1.038 million to be
expended towards CIP P2574 and $1.81 million to be assigned to CIP
P2625.
The Capital Improvement Program budget approved by the Board on
May 21, 2018 for the Vista Vereda Water Line Replacement (CIP P2574)
4
is $2,000,000 and Hidden Mesa Road Water Line Replacement (CIP P2625)
is $1,500,000. Approximately $379,000 on CIP P2574 and $158,000 on
CIP P2625 have been expended to date on the planning and design
phases of the Projects as shown in Attachments B-1 and B-2 of this
staff report.
With the award of the construction contract, staff has estimated that
a Project budget of $1,640,000 for CIP P2574 will be adequate to
complete the Project and for CIP P2625 a Project budget of $2,210,000
is necessary. The adjustments of reducing CIP P2574 by $360,000 and
increasing CIP P2626 by $710,000 will support the completion of the
Project. The net increase to the overall CIP budget is $350,000, a
10% increase over the previous $3.5 million combined budgets.
At the 60% design in March 2018, the construction costs for the
overall Project were estimated at $2.32 million, within the combined
budgets of the two (2) CIPs. As the Project approached the 100%
design in June 2018, the Project scope was refined and adjustments
for bidding climate of the local economy were incorporated, resulting
in an increase in the engineer’s cost opinion to $2.85 million.
Uncertainty in materials costs and scope of work revisions resulted
in the cost opinion to rise to $3.1 million for the final design as
initially advertised. During the Project bid, the District issued
addenda for additional bid items to incorporate lessons learned
during the recently completed construction of the Hillsdale Road
Water Line Replacement project.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2574, as approved in the FY 2019 budget, is
$2,000,000. Total expenditures, plus outstanding commitments and
forecast including this contract, are $1,622,350. See Attachment B1
for budget detail. Based on a review of the financial budgets, the
Project Manager anticipates that with a budget decrease of $360,000,
CIP P2574 will be completed within the new budget amount of
$1,640,000.
The total budget for CIP P2625, as approved in the FY 2019 budget, is
$1,500,000. Total expenditures, plus outstanding commitments and
forecast including this contract, are $2,205,756. See Attachment B2
for budget detail. Based on a review of the financial budget, the
Project Manager anticipates that with a budget increase of $710,000,
CIP P2625 will be completed within the new budget amount of
$2,210,000.
5
The Finance Department has determined that, with the debt issuance,
100% of the funding for CIP P2574 and CIP P2625 will be available in
the Replacement Reserve.
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 responsive
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.
SB/BK:jf
P:\WORKING\CIP P2574 12-Inch PL Replacement, 978 Zone, Vista Vereda\Staff Reports\Board 11-07-18\BD 11-
7-18 Staff Report Vista Vereda-Hidden Mesa WLs Award.docx
Attachments: Attachment A – Committee Action
Attachment B1 – P2574 Budget Detail
Attachment B2 – P2625 Budget Detail
Exhibit A – Location Map
ATTACHMENT A
SUBJECT/PROJECT:
P2574-001103
P2625-001103
Approval to Decrease the CIP P2574 Budget in an amount of
$360,000, Increase the CIP P2625 Budget in an Amount of
$710,000, and Award of a Construction Contract to Cass
Arrieta for the Vista Vereda (CIP P2574) and Hidden Mesa
Road (CIP P2625) Water Line Replacement Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on October 16, 2018
and the following comments were made:
After providing the staff report to the Committee, staff
recommended that the Board approve a decrease to the CIP P2574
Budget in an amount of $360,000, increase the CIP P2625 Budget
in an Amount of $710,000, and award of a construction contract
to Cass Arrieta for the Vista Vereda (CIP P2574) and Hidden Mesa
Road (CIP P2625) Water Line Replacement Project.
In response to a question from the Committee regarding cost
allocations between the two CIP projects, staff stated that
after the preliminary design phase of the Vista Vereda water
line (CIP 2574), the Hidden Mesa Road (CIP P2625) portion of the
Project was created and the Project’s budget was established to
cover only construction costs. It was later decided to allocate
both design and construction management costs to each of the
Project’s two (2) CIPs, which resulted in moving expenditures
from CIP P2574 to CIP P2625.
The Committee commented that the budget increase for this
project seems to be a result of the bidding climate, which makes
it difficult for staff to provide a reasonable Engineer’s
Estimate at the time of preparing the project budget.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board as a
Consent Item.
ATTACHMENT B1 – P2574 Budget Detail
SUBJECT/PROJECT:
P2574-001103
P2625-001103
Approval to Decrease the CIP P2574 Budget in an amount of
$360,000, Increase the CIP P2625 Budget in an Amount of
$710,000, and Award of a Construction Contract to Cass
Arrieta for the Vista Vereda (CIP P2574) and Hidden Mesa
Road (CIP P2625) Water Line Replacement Project
ATTACHMENT B2 – P2625 Budget Detail
SUBJECT/PROJECT:
P2574-001103
P2625-001103
Approval to Decrease the CIP P2574 Budget in an amount of
$360,000, Increase the CIP P2625 Budget in an Amount of
$710,000, and Award of a Construction Contract to Cass
Arrieta for the Vista Vereda (CIP P2574) and Hidden Mesa
Road (CIP P2625) Water Line Replacement Project
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2018
SUBMITTED BY:
Dan Martin
Assistant Chief of Engineering
PROJECT: S2024-001103
DIV. NO. 5
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Approval to Increase the Overall Budget for CIP S2024 in an
amount of $230,000.00 and Approve Change Order No. 3 to the
Construction Contract with Wier Construction Corporation for
the Campo Road Sewer Replacement Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board):
1. Approve to increase the CIP S2024 budget (Campo Road Sewer
Replacement Project) by $230,000.00 (from $10,300,000.00 to
$10,530,000.00).
2. Approve Change Order No. 3 to the existing construction
contract with Wier Construction Corporation (Wier Construction)
in the amount of $156,192.12 for the Campo Road Sewer
Replacement Project (see Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To increase the overall CIP S2024 project budget in an amount of
$230,000.00 and to obtain Board authorization for the General Manager
to execute Change Order No. 3 in the amount of $156,192.12 to the
construction contract with Wier Construction for the Campo Road Sewer
Replacement Project.
2
ANALYSIS:
The District’s Campo Road Sewer Replacement project is replacing an
existing 10-inch sewer pipeline, located within and south of Campo
Road between Avocado Boulevard and Singer Lane, which is undersized
to handle current sewer flows. To accommodate current and future
flows, approximately 7,420 linear feet of 15-inch gravity sewer main
will be installed to replace the existing 9,225 feet of 10-inch sewer
main. The eastern terminus of the new 15-inch sewer main will be
located at the intersection of Avocado Boulevard/Rancho San Diego
Village Shopping Center driveway. The new main’s western terminus
will be located in the Rancho San Diego Towne Center where it will
connect to the existing 27-inch sewer main within the shopping
center’s parking lot. Sewer laterals stemming from the existing pipe
will be reconnected to the proposed new pipeline.
The majority of the pipeline will be installed with open trench
construction except in two (2) locations where horizontal auger
boring will be used for crossing Campo Road. These two (2) locations
are Campo Road east of Via Mercado, and at the intersection of Campo
Road/Jamacha Boulevard. The existing sewer will be abandoned in
place with the exception of a 210 feet long section of aboveground
pipeline and seven (7) supporting pillars that will be removed.
At the May 3, 2017 Board Meeting, the Board awarded a construction
contract in the amount of $7,816,645.95 to Wier Construction. Since
the award of the construction contract, there have been two (2)
change orders approved under the authority granted to the General
Manager.
Change Order No. 1, which totaled $74,266.00, compensated the
contractor for a realignment of the planned sewer main due to a
utility conflict. This Change Order also increased the quantity for
rock removal and disposal due to rock encountered on the Project and
provided for additional Class 2 base due to field conditions at the
Rancho San Diego Town Center parking lot. Lastly, this Change Order
issued a credit for modifications to traffic control requirements.
In total, Change Order No. 1 added 46 days to the contract as a
result of the added work.
Change Order No. 2 provided for modifications to the planned grade of
the jack and bore pipe at the Campo Road West Bore crossing, which is
located east of Via Mercado. This change also included the removal
of the internal beading, which is generated during the field
construction of the fusible pipe. This was a no-cost change and did
not include adjustments to contract time.
3
Change order No. 3 (Exhibit B), which is the subject of this staff
report, provides compensation for the following six (6) items:
1. Realignment of the East Bore launch pit due to a communications
utility conflict with the shoring limits indicated on the
contract plans.
2. Removal and disposal of an abandoned irrigation system located
along the north side of Jamacha Road/Campo Road.
3. Realignment of the planned sewer main due to an existing
electrical duct bank.
4. Removal of an unmarked abandoned slurry encased utility
determined to be in conflict with the planned sewer
construction.
5. Relocation of a planned manhole due to a conflict with unmarked
communication utilities.
6. Increased quantity for rock removal and disposal due to rock
encountered on the Project.
In total, the cost associated with the items in Change Order No. 3 is
$156,192.12. Time impacts associated with this change are also
provided in Exhibit B. In total, the twenty nine (29) additional
days added to the contract will result in a revised total contract
duration of 705 calendar days.
As presented in the May 3, 2017 Board report to award the Project’s
construction contract, a 2.2% project contingency was included in the
overall project budget. Change Order No. 3 will exhaust the
project’s contingency. Currently the construction project is
approximately 45% complete. It is anticipated that additional change
orders for unforeseen items may occur during the completion of the
remaining 55% of the construction contract work. A budget increase of
$230,000.00 is requested to reestablish a project contingency in
anticipation of unforeseen items. If additional unforeseen items are
encountered that result in a change order, staff will bring the
change order forward for Board approval.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The Fiscal Year 2019 budget for CIP S2024 is $10,300,000. Total
expenditures, plus outstanding commitments and forecast, including
this contract Change Order, are $10,530,000. See Attachment B for
budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that if the budget increase is approved by $230,000.00
(from $10,300,000.00 to $10,530,000.00), the budget for CIP S2024 is
sufficient to support the Project.
4
The Finance Department has determined that, under the current rate
model, 50% of the funding is available from the Betterment ID 18 fund
and 50% of the funding is available from the Replacement Fund for CIP
S2024.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
exceptional water and wastewater service to its customers, and to
manage District resources in a transparent and fiscally responsible
manner” and the District’s Vision, “To be a model water agency by
providing stellar service, achieving measurable results, and
continuously improving operational practices.”
LEGAL IMPACT:
None.
DM:jf
P:\WORKING\CIP S2024 Campo Road Sewer Replacement\Staff Reports\BD 11-07-18\BD 11-07-18, Staff Report Campo Road Sewer
Replacement - CO No. 3.docx
Attachments: Attachment A – Committee Action
Attachment B – S2024 Budget Detail
Exhibit A – Project Location Map
Exhibit B – Change Order No. 3
ATTACHMENT A
SUBJECT/PROJECT:
S2024-001103
Approval to Increase the Overall Budget for CIP S2024 in an
amount of $230,000.00 and Approve Change Order No. 3 to the
Construction Contract with Wier Construction Corporation
for the Campo Road Sewer Replacement Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on October 16, 2018
and the following comments were made:
Staff provided a background of the Campo Road Sewer Replacement
Project (CIP S2024) that included information on Change Order
Nos. 1 and 2. Details of both Change Orders are provided on
page 2 of the staff report.
A summary of Change Order No. 3 is provided on page 3 of the
staff report. See Attachment B for full details of Change Order
No. 3.
As noted in the staff report, it is anticipated that additional
change orders for unforeseen items may occur during the
completion of the remaining 55% of the construction contract
work. Therefore, staff is requesting an overall budget increase
for CIP S2024 of $230,000 to re-establish a project contingency
in anticipation of unforeseen items. Staff stated that if
additional unforeseen items are encountered that result in a
change order, staff will bring the change order forward for
Board approval.
The Committee inquired about Change Order No. 3, Item 5,
Relocation of a planned manhole due to a conflict with unmarked
communications utilities. Staff stated that unmarked utilities
required the relocation of the manhole approximately 9-inch from
planned location. This movement resulted in an offset to the
planned pipe alignment as described in the change order and
resulted in an additional deflection coupling.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board as a
Consent Item.
ATTACHMENT B – S2024 Budget Detail
SUBJECT/PROJECT:
S2024-001103
Approval to Increase the Overall Budget for CIP S2024 in an
amount of $230,000.00 and Approve Change Order No. 3 to the
Construction Contract with Wier Construction Corporation
for the Campo Road Sewer Replacement Project
9/28/2018
Budget
10,300,000
Planning
Consultant Contracts 20,020 20,020 - 20,020 AEGIS ENGINEERING MGMT INC
2,119 2,119 - 2,119 HELIX ENVIRONMNTL PLANNING INC
Regulatory Agency Fees 2,260 2,260 - 2,260 COUNTY OF SAN DIEGO
200 200 - 200 STATE WATER RESOURCES
132 132 - 132 US BANK
Service Contracts 43 43 - 43 EAST COUNTY GAZETTE
162 162 - 162 SAN DIEGO DAILY TRANSCRIPT
Standard Salaries 146,838 146,838 - 146,838
Total Planning 171,773 171,773 - 171,773
Design 001102
Consultant Contracts 9,315 9,315 - 9,315 WATER SYSTEMS CONSULTING INC
4,025 4,025 - 4,025 MICHAEL D KEAGY REAL ESTATE
3,508 3,508 - 3,508 NINYO & MOORE GEOTECHNICAL AND
691,074 691,074 - 691,074 RICK ENGINEERING COMPANY
735 735 - 735 AIRX UTILITY SURVEYORS INC
Professional Legal Fees 182 182 - 182 STUTZ ARTIANO SHINOFF
1,910 1,910 - 1,910 ARTIANO SHINOFF
Regulatory Agency Fees 956 956 - 956 COUNTY OF SAN DIEGO
Service Contracts 158 158 - 158 SAN DIEGO DAILY TRANSCRIPT
62 62 - 62 DAILY JOURNAL CORPORATION
Settlements 190,000 190,000 - 190,000 VESTAR CALIFORNIA XVII LLC
144,950 144,950 - 144,950 GRI-REGENCY LLC
Standard Salaries 298,827 298,827 - 298,827
Total Design 1,345,703 1,345,703 - 1,345,703
Construction
Construction Contracts 394,546 168,265 226,281 394,546 WESTERN ALLIANCE BANK
7,496,366 3,197,036 4,299,330 7,496,366 WIER CONSTRUCTION CORP
156,192 - 156,192 156,192 Change Order No. 3
Consultant Contracts 8,444 8,444 - 8,444 AIRX UTILITY SURVEYORS INC
17,400 17,400 - 17,400 ALYSON CONSULTING
8,112 8,112 - 8,112 HUNSAKER & ASSOCIATES
116,461 75,519 40,941 116,461 RICK ENGINEERING COMPANY
12,258 12,258 - 12,258 NINYO & MOORE GEOTECHNICAL AND
350,000 265,865 84,135 350,000 VALLEY CONSTRUCTION MANAGEMENT
Regulatory Agency Fees 9,000 5,675 3,325 9,000 COUNTY OF SAN DIEGO
Service Contracts 3,270 3,270 - 3,270 MAYER REPROGRAPHICS INC
Standard Salaries 235,000 189,685 45,315 235,000
205,474 - 205,474 205,474 Contingency 2.6%
Total Construction 9,012,523 3,951,529 5,060,994 9,012,523
Grand Total 10,530,000 5,469,005 5,060,994 10,530,000
Vendor/Comments
Otay Water District
S2024-Campo Road Sewer Main Replacement
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
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OTAY WATER DISTRICTCAMPO ROAD SEWER MAIN REPLACEMENTLOCATION MAP
EXHIBIT A
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Legend
Proposed 15-Inch Sewer Main Alignment
Existing 10-inch Gravity Sewer to be Replaced
Existing Sewer Mains
CIP S2024 - Campo Road Sewer Replacement Project Project: S2024
Consultant/Contractor:Wier Construction Corporation Subproject: 001103
APPROVED
C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O.
1 $74,266.00 GM 1/12/2018
Utility Conflict per RFI #10 and PCO #1A, Traffic
control credit per RFI #4 and PCO #2. Base
material at RSD Towne Center parking lot. Rock
removal and disposal increase in quantity. Add
46 days.
Contractor
2 $0.00 RP 4/5/2018
Revise sewer slope between MH #7 and MH# 8
to a minimum of 1%.Contractor
3 $156,192.12
East Bore Pit Realignment PCO #3, Cut and
Cap Irrigation PCO #5, Sewer Main Realignment
MH #18A to MH 17A PCO #7, Remove
abandoned utilities PCO #8, Repair Offset Pipe
at MH #20 PCO #9, and Increase Bid Item No.
43 Rock Removal and Disposal.
Contractor
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
2425
Total C.O.'s To Date: $230,458.12 2.9%
Original Contract Amount:$7,816,645.95
Current Contract Amount:$8,047,104.07
Month Net C.O.$ Limit Authorization Absolute C.O.$ C.O. %
9/18 $159,192.12 $2,000 Insp 0.0%
$10,000 PM/Sr. Engr. 0.0%
$20,000 DivM 0.0%
$25,000 Chief 0.0%
$75,000 GM 0.0%
>$75000 Board 0.0%
CHANGE ORDER LOG
P:\WORKING\CIP S2024 Campo Road Sewer Replacement\Construction\Change
Orders\S2024_COLOG_180919 1 9/19/2018
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2018
SUBMITTED BY:
Kevin Cameron
Associate Civil Engineer
PROJECT: P2565-001103 DIV. NO. 5
APPROVED BY:
Bob Kennedy, Engineering Manager
Dan Martin, Assistant Chief of Engineering
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Approval to Increase the CIP P2565 Budget in an Amount of
$200,000 and Award of a Construction Contract to Advanced
Industrial Services, Inc. for the 803-2 Reservoir Interior/
Exterior Coatings & Upgrades Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board):
1. Approve to increase the CIP P2565 budget by $200,000 (from
$1,000,000 to $1,200,000);
2. Award a construction contract to Advanced Industrial Services,
Inc. (AIS) and Authorize the General Manager to execute an
agreement with AIS for the 803-2 Reservoir Interior/Exterior
Coatings & Upgrades Project in an amount not-to-exceed
$951,690.00 (see Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
2
PURPOSE:
To increase the CIP P2565 budget in the amount of $200,000 (from
$1,000,000 to $1,200,000) and to obtain Board authorization for the
General Manager to enter into a construction contract with AIS for
the 803-2 Reservoir Interior/Exterior Coatings & Upgrades Project in
an amount not-to-exceed $951,690.00.
ANALYSIS:
The 803-2 Reservoir is a 2.0 million gallon potable water storage
facility that serves portions of Rancho San Diego. It is one of
three (3) steel tanks in the 803 pressure zone. The 803-2 Reservoir
was originally constructed in 1980, and was last recoated on both
interior and exterior in 2000.
The District’s corrosion consultant maintains a Corrosion Control
Program (CCP) that addresses the installation, maintenance, and
monitoring of corrosion protection systems for the District’s steel
reservoirs and buried metallic piping. The CCP included a reservoir
maintenance schedule that showed the 803-2 Reservoir was due to be
recoated on both the interior and exterior surfaces. An in-service
internal and external inspection was performed by CSI Services, Inc.,
which illustrated the interior roof coating was in fair to poor
condition, and there were areas of blistering on the shell and floor
beneath the waterline. Although the blistering paint is still
protecting the steel, blisters in the paint are the beginning signs
of failure. The external inspection showed the coating on the roof
was in poor condition and while the external shell coating was good,
it has exceeded its useful life. In addition to replacing the
coatings and structural upgrades, safety items will be installed to
comply with current safety and health requirements. During
construction, service in the 803 pressure zone will be provided by
the 803-3 and 803-4 Reservoirs.
In addition to the interior and exterior coating removal/replacement,
the recommended structural upgrades are as follows: replace the
existing level indicator, replace the existing interior ladder,
install new fall prevention devices on the exterior ladder, modify
anode access ports, replace all cathodic anodes, replace the roof
vent, install new safety cable lanyards for roof access, and add
multiple tank penetrations for chlorination and sampling. These
upgrades will ensure compliance with American Water Works Association
(AWWA) and the Occupational Safety and Health Administration
Standards for both Federal (OSHA) and State (Cal-OSHA) as well as
upgrade antiquated equipment on the tank.
3
The Project was advertised on September 4, 2018 using BidSync, the
District’s online bid solicitation website, on the Otay Water
District’s website, and in the Daily Transcript. A Pre-Bid Meeting
was held on September 13, 2018, which was attended by seven (7)
contractors and vendors. Two (2) addenda were sent out to all
bidders and plan houses to address questions and clarifications to
the contract documents during the bidding period. Bids were publicly
opened on September 25, 2018, with the following results:
CONTRACTOR TOTAL BID AMOUNT
1 Advanced Industrial Services, Inc.
Los Alamitos, CA $951,690.00
2 AMP United, LLC
Los Alamitos, CA
$1,264,502.00*
*Non-Responsive
See below
The Engineer's Estimate is $760,000.
A review of the bids was performed by District staff for conformance
with the contract requirements. During the review of the bids, staff
noted that unit pricing, as required by the contract documents, was
missing from AMP United, LLC’s (AMP) bid and only the extended total
amounts were provided. Staff determined that AMP’s bid is non-
responsive.
After analyzing the lowest bid submitted by AIS, staff noted that the
cost for the structural work was higher than expected. The
Engineer’s Estimate for the structural work, specifically the rafter
replacement, was taken from previous bids on this type of work. The
girder replacement has only been performed on one reservoir, which
was done as a change order. The girder replacement was added to the
bid as an allowance item in order to get bid price for this work,
however, it is unknown if this work will need to be performed until
the existing coating is removed. Staff contacted AIS to inquire
about the price differential in the structural bid items. AIS stated
that the higher prices are a result of steel prices going up 15%-25%
and also labor costs have increased in order to retain qualified
craftsman.
Staff believes that the increased cost for the structural items are a
combination of following: increased steel prices due to demand and
tariffs, increase in labor costs, and a result of the current bidding
climate. As for the wide variance in girder pricing, this was
estimated from a change order on the last reservoir recoating (980-1
Reservoir). This was the only reservoir that this type of work has
4
been performed on in the previous 10 years. Staff believes the sub-
contractor that performed the structural work on the 980-1 was more
efficient, which is why the price was significantly lower, however,
that contractor did not submit a bid on this work. AIS will be self-
performing this work, but only if required as described above.
After receiving only two (2) bids on this solicitation, staff reached
out to previous bidders to ask why some contractors elected not to
bid. Contractors stated they were too busy with their current
workload and did not have the resources to commit to this Project.
This unfortunately has been typical on other projects and reflects
the current bidding climate of the local economy. During the next
budget cycle, staff will re-evaluate the budgets for future projects
to be more representative of the current bidding climate.
It is unknown if rebidding the project will result in a lower bid
because of the uncertainty of future pricing of the structural items,
therefore, staff is recommending to award the Project to AIS.
Staff determined that AIS is the lowest responsive and responsible
bidder. AIS holds a Class A Contractor’s license, which expires on
January 31, 2020. AIS also holds a current QP-1 certification from
the Society for Protective Coatings, which was also a requirement.
Staff checked references, and the response from other agencies
indicated AIS has an excellent performance rating on similar
projects. The proposed Project Manager has experience in California
on similar projects and received excellent recommendations. AIS has
worked with the District on previous coating projects, including the
following reservoirs: 850-3, 832-2, 803-3, 624-2, 711-1, 711-2, and
980-1. These successful projects were completed on time and on
budget.
AIS submitted the Company Background and Company Safety
Questionnaires, as required by the Contract Documents. Staff
confirmed that AIS is registered with the Department of Industrial
Relations, as required by Senate Bill SB 854.
Staff has verified that the bid bond provided by Travelers Casualty
and Surety Company of America is valid. Once AIS signs the contract,
they will furnish the performance bond and labor and materials bond.
Staff will verify both bonds prior to executing the contract.
5
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2565, as approved in the FY 2019 budget, is
$1,000,000. Total expenditures, plus outstanding commitments and
forecast, are $1,197,490. See Attachment B for the budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that with a budget increase of $200,000, the Project will
be completed within the new budget amount of $1,200,000.
The Finance Department has determined that, under the current rate
model, 100% of the funding is 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 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.
KC/BK:jf
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2 Reservoir Coating_kc.docx
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Exhibit A – Project Location for 803-2 Reservoir
ATTACHMENT A
SUBJECT/PROJECT:
P2565-001103
Approval to Increase the CIP P2565 Budget in an Amount of
$200,000 and Award of a Construction Contract to Advanced
Industrial Services, Inc. for the 803-2 Reservoir Interior/
Exterior Coatings & Upgrades Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on October 16, 2018
and the following comments were made:
Staff recommended that the Board approve to increase the CIP
P2565 budget by $200,000 (from $1,000,000 to $1,200,000) and
award a construction contract to Advanced Industrial Services,
Inc. (AIS) for the 803-2 Reservoir Interior/Exterior Coatings &
Upgrades Project in an amount not-to-exceed $951,690.00.
Staff noted that the largest variance between the Engineer’s
Estimate and the bid from AIS was an allowance item for the
replacement of five (5) girders. Staff indicated that the
Engineer’s Estimate was based on a change order from last year.
AIS will need to remove portions of the existing coating on the
girders, at which time a more extensive evaluation will be
performed. The girder replacement is an allowance item, and
will only be performed if necessary.
In response to a question from the Committee, staff stated that
the girder allowance was based on a unit price from AIS.
It was discussed that until an inspection blast is made, it
isn’t known if a girder needs to be replaced. Staff decided to
incorporate the allowance into the CIP P2565 budget increase to
avoid the risk of a change order.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board as a
Consent Item.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
P2565-001103
Approval to Increase the CIP P2565 Budget in an Amount of
$200,000 and Award of a Construction Contract to Advanced
Industrial Services, Inc. for the 803-2 Reservoir Interior/
Exterior Coatings & Upgrades Project
9/27/2018
Budget
1,000,000
(request additional $200,000)
Planning
Standard Salaries 7,500 7,368 132 7,500
Service Contracts 3,500 - 3,500 3,500 CSI SERVICES
Total Planning 11,000 7,368 3,632 11,000
Design
Standard Salaries 20,000 14,470 5,530 20,000
Service Contracts 150 - 150 150 DAILY JOURNAL CORP
Equipment Charge 250 88 162 250 EQUIPMENT CHARGE
Total Design 20,400 14,558 5,842 20,400
Construction
Standard Salaries 90,000 281 89,719 90,000
Construcion Contract 951,690 - 951,690 951,690 ADVANCED INDUSTRIAL SERVICES, INC.
Service Contracts 36,000 36,000 36,000 CONSTRUCTION MANAGEMENT
40,000 - 40,000 40,000 COATING INSPECTION
1,800 - 1,800 1,800 WELDING INSPECTION
7,500 7,500 7,500 WATCHLIGHT
1,000 1,000 1,000 MAYER REPROGRAPHICS
2,000 2,000 2,000 STRUCTURAL ENGINEER
2,000 - 2,000 2,000 CLARKSON LABORATORY
Equipment Charge 2,000 23 1,977 2,000 EQUIPMENT CHARGE
Standard Materials 500 - 500 500 STANDARD MATERIALS
Project Closeout 3,000 - 3,000 3,000 CLOSEOUT
Project Contingency 28,600 - 28,600 28,600 3% CONTINGENCY
Total Construction 1,166,090 304 1,165,786 1,166,090
Grand Total 1,197,490 22,230 1,175,260 1,197,490
Vendor/Comments
Otay Water District
P2565 - 803-2 Reservoir Interior/Exterior Coating
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
OTAY WATER DISTRICT803-2 Reservoir Interior/Exterior Coating & UpgradesLocation Map
EXHIBIT A
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CIP P2565
803-2 Reservoir
ACCESS RD
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GOLF COURSE
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STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: November 7, 2018
SUBMITTED BY:
Jose Martinez,
Asst. Chief of Water
Operations
PROJECT: DIV. NO. All
APPROVED BY:
Pedro Porras, Chief Water Operations
Mark Watton, General Manager
SUBJECT: TO AUTHORIZE THE PURCHASE OF SEVEN (7) FLEET VEHICLES
GENERAL MANAGER’S RECOMMENDATION:
Authorize the General Manager to issue purchase orders to:
a. Encinitas Ford in the amount of $102,045.42 for the purchase
of three (3) F150 half ton trucks;
b. Sunroad Auto LLC in the amount of $145,566.71, for the
purchase of two (2) one ton trucks and one (1) F550 Class 5
Dump Truck and;
c. Theodore Robbins Ford in the amount of $39,009.94 for the
purchase of one (1) F250 three quarter ton truck
For a total of seven (7) fleet vehicles and a cost of $286,622.07.
COMMITTEE ACTION:
See Attachment “A.”
PURPOSE:
To obtain Board authorization to purchase seven (7) Fleet
replacement vehicles from the vendors specified with the lowest
responsive quotes.
ANALYSIS:
Included in the approved FY 2019 budget are eleven (11) vehicles.
These requested seven (7) vehicles are to replace Units:
• 121 (2001 Ford F550 Valve Crew Truck);
• 138 (2002 Ford F550 Dump Truck);
• 139 (2003 Ford F550 Utility Body);
• 137 (2002 Ford F250 Survey Truck); and
• 170 (2007 Ford F150 Water System Truck)
The remaining two vehicles are to support additional staff in the
Meter Maintenance and Survey sections of the District. These seven
vehicles are utilized for the day-to-day maintenance, survey and
inspection of the facilities and Capital Improvement Projects
(CIPs) throughout the District.
In accordance with District policy, quotes were solicited for the
seven (7) vehicles via BidSync, the District’s purchasing
solicitation system. After additional individual efforts by
purchasing staff to reach out to multiple vendors, two to three
responsive quotes were received and are shown below. Prices
received include all applicable fees, taxes, and delivery.
Funding for this purchase has been included in CIP P2282, Vehicle
Capital Purchases Program.
Three Ford F150 Trucks
Dealer Bid Price
Sunroad Auto LLC DBA Kearny Pearson Ford
- San Diego, CA $103,535.21
Encinitas Ford – Encinitas, CA $102,045.42
Ford F250 Truck
Dealer Bid Price
Sunroad Auto LLC DBA Kearny Pearson Ford
- San Diego, CA $44,173.32
Theodore Robins Ford – Costa Mesa, CA $39,009.94
Ford F350 Truck
Dealer Bid Price
Theodore Robins Ford – Costa Mesa, CA $53,078.86
Sunroad Auto LLC DBA Kearny Pearson Ford
- San Diego, CA $47,082.57
Ford F450 Truck
Dealer Bid Price
Theodore Robins Ford – Costa Mesa, CA $49,808.24
Western Truck Exchange – Los Angeles, CA $47,283.30
Sunroad Auto LLC DBA Kearny Pearson Ford
- San Diego, CA $45,793.07
F550 Class 5 Dump Truck
Dealer Bid Price
Western Truck Exchange – Los Angeles, CA $72,798.50
Sunroad Auto LLC DBA Kearny Pearson Ford
- San Diego, CA $52,691.07
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total purchase of these seven (7) vehicles will cost
$286,622.07, which will be charged against the Vehicle Capital
Purchases CIP P2282. The total cost in this account will not
exceed budgeted funding.
The Finance Department has determined that 100% of the funds are
available in the replacement fund.
The following expenditure summary shows the eleven items which
were budgeted in CIP 2282 for FY19 including the seven items being
requested in this staff report:
Total CIP 2282 Vehicle Replacements FY19
Budget: $520,500
Proposed Seven (7) Fleet Trucks ($286,622.07)
Three (3) Compact Trucks - Budgeted ($74,538.61)
One (1) HAZWOPR Replacement Van -
Budgeted ($65,000)
Projected CIP P2282 FY19 Under Budget: $94,339.32
STRATEGIC GOAL:
Operate the system to meet demand twenty-four hours a day, seven
days a week.
LEGAL IMPACT:
None.
Attachment “A,” Committee Action
ATTACHMENT A
SUBJECT/PROJECT: TO AUTHORIZE THE PURCHASE OF SEVEN (7) FLEET VEHICLES
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on October 24, 2018 and the following comments were made:
• Staff is requesting that the board authorize the purchase of
three (3) F150 half ton trucks in the amount of $102,045.42 from
Encinitas Ford; two (2) one ton trucks and one (1) F550 Class 5
dump truck in the amount of $145,566.71 from Sunroad Auto LLC;
and one (1) F250 three quarter ton truck in the amount of
$39,009.94 from Theodora Robbins Ford.
• Staff reviewed information in the staff report.
• Prior to soliciting bids for the replacement and new vehicles,
staff evaluated the District’s actual needs. During this
evaluation process, staff determined, based on current use, that
one of the F550 vehicles could be downgraded to a F350 and the
survey truck could be downgraded from a F250 to a F150. Staff
indicated that the District’s needs can still be supported with
the smaller class vehicles with the benefit of better fuel
economy.
• Two vehicles that the District is acquiring for survey and meter
maintenance staff are being purchased to support the additional
work and staff in these areas.
• Staff indicated that the bid went out to over 250 vendors via
BidSync across the Country and was read by 30 of these vendors.
The purchasing staff also reached out to over 20 vendors,
separate from BidSync, to assure they were aware of the bid
request. Two to three bids were received for each vehicle type
from vendors located in Southern California.
• The results of the bids are noted within the staff report on
pages two and three.
• Staff indicated that the total price for all vehicles is within
the amounts budgeted for each vehicle.
• The Committee commented that there was only one vehicle, the F550
Class 5 Dump Truck, where the bids were not close: $52,691.07
from Sunroad Auto LLC versus $72,798.50 from Western Truck
exchange. The Committee asked if staff knew the reason for the
large difference in the two bids. Staff was uncertain, but noted
that both received the same specifications for the required
vehicle. Staff indicated that the District has a long term
relationship with Sunroad Auto LLC and felt confident in their
bid and that the vehicle was not underbid.
• In response to another inquiry from the Committee, staff
indicated an extensive analysis was performed last year reviewing
the five year cost, including maintenance, of different makes and
models and determined that Ford provided the lowest cost overall.
The Disrict has also received good performance from Ford trucks.
• In response to another inquiry from the Committee, staff
indicated an analysis was performed last year reviewing the five
year cost, including maintenance, of different makes and models
of half ton trucks since this type of truck is the most common in
the fleet and determined that Ford provided the lowest cost
overall and that there is a value to the District in
standardizing the fleet where possible. The District has also
received good performance from Ford trucks.
• For reference, staff provided the attached example photos of similar
vehicles in the District’s fleet.
Upon completion of the discussion, the committee supported staffs
recommendation and presentation to the full board on the consent
calendar.
Examples of Vehicles to be Purchased
Ford F150
Ford F350
Ford F450
Ford F550
Ford F250
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: November 7, 2018
SUBMITTED BY:
Jose Martinez,
Asst. Chief of Water
Operations
PROJECT: DIV. NO. All
APPROVED BY:
Pedro Porras, Chief Water Operations
Mark Watton, General Manager
SUBJECT: TO AUTHORIZE THE PURCHASE OF ONE (1) MINI EXCAVATOR AND TO
AUTHORIZE THE PURCHASE OF ONE (1) LOADER
GENERAL MANAGER’S RECOMMENDATION:
Authorize the General Manager to issue a purchase order to RDO
Equipment Company in the amount of $304,182.30 for the purchase of
one (1) mini excavator and one (1) rubber tire loader and declare
Units 742, 269, 1503, 3247 and 3460 surplus.
COMMITTEE ACTION:
See Attachment “A.”
PURPOSE:
To obtain Board authorization to purchase one (1) mini excavator
and one (1) replacement rubber tire loader.
ANALYSIS:
Included in the approved FY 2019 budget under Capital Purchases
are one (1) mini excavator and one (1) loader. The purchase of
these two (2) field equipment assets will replace and surplus
the following five (5) assets:
• Unit 742 (1980 CAT D6 bulldozer);
• Unit 269 (1981 CAT 950B rubber tire loader);
• Unit 1503 (1984 International Harvester 515 rubber tire
loader);
• Unit 3123 (1998 John Deere 310 backhoe); and
• Unit 3460 (1999 John Deere 310 backhoe).
As a result, the District would achieve a net reduction in the
number of field assets by a total of three (3) while increasing
its ability to respond to the growing and changing operating
environment. This reduction will reduce equipment maintenance
costs.
The existing two rubber tire loaders are over 35 years old, Tier
0 emissions ratings and as a result limited to only 200 hours of
operations. The existing loaders are only used for the efficient
loading of materials into dump trucks: one at the District’s
Regulatory and the other at the 30 Million Reservoir locations.
The new replacement loader is rated to meet the Tier 4 Final
standards and will be permitted with unlimited hours allowing
the District to additionally replace the D6 bulldozer that is
used to maintain and manage the spoils located at the Use Area.
Based on an evaluation of the current and future work performed
by the Utility Maintenance Section, and an increase of District
infrastructure located in dense environments such as mixed-use
developments, the proposed mini excavator will allow the
District to efficiently and safely complete repairs with less
impact to the community in a more constrained environment.
The proposed field equipment purchases will be made in
accordance with the District’s Purchasing Manual, Section 6.2.3
Cooperative/Joint Purchases through the National Joint Powers
Alliance, now known as Sourcewell. Sourcewell is a government
agency that performs cooperative purchasing as defined by the
American Bar Association Model Procurement Code for State and
Local Governments to ensure organizations receive fair and
competitive quotes on equipment.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The purchase of the mini excavator and one (1) rubber tire
loader will cost $304,182.30. Both of these purchases were
budgeted for in the Field Equipment Capital Purchases CIP 2286
and will be charged against this CIP. The total cost in this
account will not exceed budgeted funding.
The Finance Department has determined that the funds are available
in the replacement fund.
The following expenditure summary shows the four items which were
budgeted in CIP 2286 for FY19 including the two items being
requested in this staff report:
Total CIP 2286 Field Equipment
Replacements FY19 Budget: $363,400
One (1) Replacement Force Main UTV ($13,744.90)
One (1) Replacement Trailer, Budgeted ($32,800)
Proposed one (1) Mini Excavator ($123,868.79)
Proposed one (1) Replacement Loader ($180,313.51)
Projected CIP P2286 FY19 Under Budget: $12,672.80
STRATEGIC GOAL:
Operate the system to meet demand twenty-four hours a day, seven
days a week.
LEGAL IMPACT:
None.
Attachment “A,” Committee Action
ATTACHMENT A
SUBJECT/PROJECT:
TO AUTHORIZE THE PURCHASE OF ONE (1) MINI EXCAVATOR AND TO
AUTHORIZE THE PURCHASE OF ONE (1) LOADER
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on October 24, 2018 and the following comments were made:
• Staff is requesting that the board authorize the purchase of one
(1) mini excavator and one (1) rubber tire loader from RDO
Equipment Company in the amount of $304,182.30 and decalare units
742, 269, 1503, 3247 and 3460 as surplus.
• Staff reviewed information in the staff report.
• Staff noted that the mini-excavator allows for the District to
efficiently complete repairs in increasingly dense environments
within the District’s service area without impacting sidewalks
and structures (please reference the attached photo of a
neighborhood within the District’s service area).
• It was discussed that these types of equipment are more
specialized/customized and there is not a large vendor pool.
Because of this, the equipment will be procured through the
National Joint Powers Alliance, now known as Sourcewell, in
compliance with the District’s purchasing manual. Sourcewell is a
government agency that performs “cooperative purchasing” as
defined by the American Bar Association Model Procurement Code
for State and Local Governments to ensure organizations receive
fair and competitive quotes on equipment.
• In response to an inquiry from the Committee, staff indicated
that the District is purchasing John Deere equipment consistent
with the practice to standardize fleet equipment where possible.
The District has had good experience with John Deere and their
equipment performs well. If there is an issue with the equipment,
John Deere has generally responded the day of or the next
business day.
• In response to an inquiry from the Committee, staff indicated
that they do not believe the recent tariff increases affected the
quoted prices since the raw materials and the manufacturing were
likely imported and completed prior to any changes in tariffs.
• The Committee inquired if the type of equipment being replaced is
no longer needed by the District. Staff confirmed that with the
purchase of these two pieces of equipment, the District will no
longer need the older five pieces of equipment to be surplused.
Additionally, because of the age of the current equipment,
regulatory agencies limit their use to 200 hours of operation.
The new rubber tire loader and mini excavator will be permitted
for unlimited hours.
• For reference, staff provided the attached example photos of the
equipment to be purchased.
Upon completion of the discussion, the committee supported staff’s
recommendation and presentation to the full board on the consent
calendar.
Examples of Equipment to be Purchased
Rubber Tire Loader – John Deere 444K
Mini Excavator – John Deere 85G
Example of Streets in the Millennia Development
14 ft31 ft
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: November 7, 2018
SUBMITTED BY:
Marissa Dychitan
Senior Accountant
PROJECT: DIV. NO. All
APPROVED BY:
Eid Fakhouri, Finance Manager
Kevin Koeppen, Assistant Chief of Finance
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Approve the Audited Financial Statements for the Fiscal Year
Ended June 30, 2018
GENERAL MANAGER’S RECOMMENDATION:
That the Board approve the Audited Financial Statements (Attachment
B) including the Independent Auditors’ unqualified opinion, for the
fiscal year ended June 30, 2018.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To inform the Board of the significant financial events which
occurred during the fiscal year ended June 30, 2018 as reflected in
the audited financial statements.
ANALYSIS:
Teaman, Ramirez & Smith, Inc., performed the audit and found that, in
all material respects, the financial statements correctly represent
2
the financial position of the District. They found no material
errors in the financial records or statements (Attachment D).
Total Assets:
Total assets decreased by $8.6 million or 1.53% during fiscal year
2018, to $554.5 million, due primarily to the implementation of GASB
Statement No.75 which was partially offset by capital contributions
and improved operating results.
Deferred Outflows & Deferred Inflows:
Deferred outflows increased by $1.5 million or 13.94% and deferred
inflows decreased by $2.3 million or 61.19% due to the changes in
Deferred Actuarial Pension Costs, and implementation of GASB No. 75
which established Deferred Actuarial OPEB Costs.
Total Liabilities & Net Positions:
Total liabilities increased by approximately $8.8 million from the
previous fiscal year, to $177.9 million. This is attributable to the
$4.3 million increase in Net Pension Liability which is caused by the
$5.2 million difference between actual and projected earnings on
Pension Plan Investments, the recording of $4.7 million in Net OPEB
Liability as a result of implementing GASB No. 75 and an increase in
accounts payable. These increases are partially offset by the
decrease in long-term debt of $4.4 million.
The beginning net position of $401.2 million was decreased by $17.8
million as a result of the implementation of GASB No. 75. The
District’s Net Position is $387.5 million as of June 30, 2018.
Capital Contributions:
Capital contributions for fiscal year 2018 were $9.5 million. This
consists of developers contributing $8.7 million in capacity fees and
$0.3 million in contributed fixed assets. Ratepayers also paid $0.5
million in availability fees, which are considered a part of capital
contributions.
Results of Operations:
Operating revenues increased by $9.0 million or 10.16%, mainly as a
result of the overall increase in sales volume.
Cost of water sales increased by $5.4 million or 9.56% due to an
increase in water sales volume and unit purchase costs.
3
Non-Operating Revenues & Expenses:
Non-operating revenues decreased by $2.2 million or 21.78% for
FY 2018 due to a decrease in capacity fee drawdown from capital
contribution to CIPs that did not qualify as capital expense. The
decrease was partially offset with small increases in other revenue
categories such as property taxes and assessments, rent and leases,
investment earnings and miscellaneous revenues.
Non-operating expenses decreased by $2.7 million or 35.20% due to a
decrease in interest expense brought about by the full amortization
of the 2007 COPS refunding costs and a decrease in CIP expenses that
did not qualify as capital expense.
Additional Audit Correspondence:
As a part of completing the audit engagement, Teaman, Ramirez and
Smith, Inc., also provided the following letters summarizing their
observations and conclusions concerning the District’s overall
financial processes:
Management Letter: The auditors did not identify any
deficiencies in internal controls that they considered to be
material weaknesses. (Attachment C).
Audit Committee Letter: This letter describes overall aspects
of the audit, including audit principles, performance,
dealings with management, and significant findings or issues.
There were no transactions entered into by the District during
the year for which there was a lack of authoritative guidance
or consensus. All significant transactions have been
recognized in the financial statements in the proper period.
There were no disagreements with management concerning
financial accounting, reporting, or auditing matters, and
there were no significant difficulties in dealing with
management in performing the audit. (Attachment D).
Report on Applying Agreed-Upon Procedures: A review of the
District’s investment portfolio at year end, and a sample of
specific investment transactions completed throughout the
fiscal year were performed and there were no exceptions to
compliance from the District’s Investment Policy. (Attachment
E).
4
FISCAL IMPACT:
None.
STRATEGIC GOAL:
The District ensures its continued 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
B) Audited Annual Financial Statements
C) Management Letter
D) Audit Committee Letter
E) Report on Applying Agreed-Upon Procedures
ATTACHMENT A
SUBJECT/PROJECT:
Approve the Audited Financial Statements for the Fiscal
Year Ended June 30, 2018
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on October 24, 2018 and the following comments were made:
Staff is recommending that the Board approve the District’s
audited financial statements, including the Independent Auditors’
unqualified opinion for the fiscal year (FY) ended June 30, 2018.
Teaman, Ramirez & Smith, Inc. performed the audit and found that,
in all material respects, the financial statements correctly
represent the financial position of the District.
Staff provided a review of the District’s financials for the year
ending June 30, 2018 and indicated:
Total assets decreased $8.6 million due mainly to the
implementation of GASB75 offset by investments in capital
infrastructure and increases in cash and investments.
Cash and investments increased from $84.9 million to $89.1
million. This increase is due to timing difference in the
payables.
Total liabilities increased by $8.9 million, which is
attributable to the change in assumption of Other Post-
Employment Benefits (OPEB) actuarial valuation as a result
of the implementation of GASB 75. This was partially offset
by a $4.4 million reduction in long-term debt.
Capital contributions for the year totaled $9.5 million,
which consists of developers contributing $8.7 million in
capacity fees and $.3 million in contributed fixed assets
and $.5M in availability fees from ratepayers.
Net Position at July 1, 2018 was decreased by 17.8 million
due to the implementation of Governmental Accounting
Standards Board (GASB) Statements No.75.
Operating revenues increased $9.0 million while water costs
increased $5.4 million due to overall increase in sales
volume.
Depreciation decreased by $.3 million while general and
administrative expenses increased by $3.4 million.
The Districts Net Position as of June 30, 2018 was $387.5
million.
It was indicated that the auditors found no material errors in
the financial records or statements and there were no
transactions entered into by the District during the year for
which there is lack of authoritative guidance or consensus.
Messrs. Rich Teaman, Sr. Partner, and Joshua Calhoun, Partner, of
Teaman Ramirez & Smith, Inc., attended the meeting and provided a
review of the audit process and results of the audit.
Mr. Teaman indicated that his firm will be issuing an
“unmodified report” (this is the new language which replaces
“unqualified opinion”). Their issuance of an unmodified
report indicates that they found no issues with the
financial statements and they believe the statements are
fairly stated. This is the highest level opinion that can
be received on an audit.
He stated this year, GASB 75 was implemented related to the
District’s OPEB which is included in the Emphasis of Matter
paragraph in the Audit Report. This is a significant change
and impacts the presentation of the financial reports from a
comparative (comparing two years) to single year report. The
report would return to a comparative report next year.
Mr. Teaman indicated that footnote number 8 discusses OPEB
and page 42 of the financial statements outlines the
actuarial assumptions that are utilized to estimate the OPEB
liability. He stated that page 43 indicates where the funds
of the OPEB Trust is invested and page 44 shows the changes
in the OPEB liability during the fiscal year.
He stated on page 46 it shows outflow and inflows to the
OPEB Trust for the fiscal year based on the actuary results.
He also noted on pages 53 to 54 there is additional
supplemental information for the OPEB Trust.
Mr. Teaman indicated on page 52, footnote number 15
identifies events subsequent to the close of the audit
(subsequent to June 30, 2018) and notes the $31.8 million
transferred to CalPERS to reduce the District’s unfunded
liability, the issuance of $29 million in 2018 Series A
Water Revenue Bonds, and the refinancing of $6.9 million in
outstanding 1996 Variable Rate COPS.
He indicated that page 21 of the financial report addresses
some of the upcoming GASB standards. He stated he wished to
make note of GASB 87 which relates to leases. It will
require the District to re-evaluate all its leases based on
the GASB 87 criteria. He stated he is making a note of this
as the District needs to start evaluating its leases against
the criteria now as the standard goes into effect with the
financial reports for fiscal year 2021. This process will
take considerable time.
He noted that GASB 89 is also a new upcoming standard. It
requires that interest cost incurred before the end of a
construction period be recognized as an expense. Currently,
it is recognized as a capital cost. As an expense, it will
need to be factored into the District’s rate model. This
standard will go into effect with the District’s financial
reports for fiscal year 2020.
He noted along with the financial statements, the audit firm
issues several reports:
o Management Letter which reviews internal controls and
financial compliance which is required under government
auditing standards. His firm had no findings or
exceptions to report.
o Agreed-Upon Procedures Report indicates their firms
review of investment transactions in relation to the
District’s Investment Policy and State Law. His firm
found no instances of non-compliance.
o SAS 114 Report which provides the auditors an
opportunity to report to the board what transpired on
the audit; if there were problems, if staff was
unresponsive, opinion shopping, etc. He stated that
the audit went very well and they did not have any
issues or problems during the audit. He stated that
his firm has nothing to report.
In response to an inquiry from the Committee, Mr. Teaman
indicated that GASB 87 was introduced because FASB (standards for
the commercial industry) changed its methodology to mirror the
European model as today we have a more global economy and it
helps in evaluating European versus United States companies. GASB
created their own standard (GASB 87) as they did not agree with
some of the FASB standards.
Mr. Teaman noted that there are a number of estimates in the
financial statements that includes the market value of the
District’s investments, the depreciable value of capital assets,
etc. He stated that the methodologies utilized by the District
in estimating these items are appropriate.
The Committee noted in the Financial Statements that the second
paragraph on page 6 needs to be modified as the information is
incorrect. Staff indicated they would correct the verbiage.
Mr. Teaman indicated, in response to an inquiry from the
Committee, that the first year with a new client is the most
challenging as they would need to contact the prior auditor to
get information on the work they performed to identify what would
need to be carried over to the current year as sometimes there
are transactions that take several years to culminate. Thus,
significant resources are used to accomplish this. Once they get
past the first year, however, the following years allow them to
delve deeper and review other areas. He indicated this is just a
fact of their industry.
The Committee thanked Mr. Teaman and his firm for their work.
They felt his firm has provided the District good services and
they were appreciative that they did not increase their fees
excessively, though they were required to provide additional
services.
Upon completion of the discussion, the committee accepted staffs’
report and supported presentation to the full board as an action item.
OTAY WATER DISTRICT
FINANCIAL STATEMENTS
WITH
REPORT ON AUDIT BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
JUNE 30, 2018
TABLE OF CONTENTS
JUNE 30, 2018
Page
Number
Independent Auditors’ Report 1 - 2
Management’s Discussion & Analysis 3 - 10
Basic Financial Statements:
Statement of Net Position 11 - 12
Statement of Revenues, Expenses, and Changes in Net Position 13
Statement of Cash Flows 14 - 15
Notes to Financial Statements 16 - 52
Required Supplementary Information:
Schedule of Changes in the Net OPEB Liability and Related Ratios 53
Schedule of Contributions 54
Schedule of Changes in the Net Pension Liability and Related Ratios 55
Schedule of Plan Contributions 56
INDEPENDENT AUDITORS' REPORT
Board of Directors
Otay Water District
Spring Valley, California
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities of the Otay Water District (the “District”),
as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the
District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting
principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States and the State Controller’s
Minimum Audit Requirements for California Special Districts. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the District’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position
of the business-type activities of the Otay Water District as of June 30, 2018, and the respective changes in financial position and
cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of
America, as well as the accounting systems prescribed by the California State Controller’s Office and California regulations
governing Special Districts.
Richard A. Teaman, CPA David M. Ramirez, CPA Javier H. Carrillo, CPA Bryan P. Daugherty, CPA Joshua J. Calhoun, CPA
4201 Brockton Avenue Suite 100 Riverside CA 92501 951.274.9500 TEL 951.274.7828 FAX www.trscpas.com
Emphasis of Matter
As described in Note 1 to the basic financial statements, the District adopted the provisions of Governmental Accounting
Standards Board Statement No. 75, Accounting and Financing Reporting for Postemployment Benefits Other Than Pensions.
Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis
and required supplementary information on pages 3-10 and 53-56 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 25, 2018, on our
consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.
Riverside, California
October 25, 2018
Management’s Discussion and Analysis
3
As management of the Otay Water District (the “District”), we offer readers of the District’s financial
statements, this narrative overview, and analysis of the District’s financial performance during the fiscal
year ending June 30, 2018. Please read it in conjunction with the District’s financial statements that follow
Management’s Discussion and Analysis. All amounts, unless otherwise indicated, are expressed in
millions of dollars.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District’s basic financial
statements, which are comprised of the following: 1) Statement of Net Position, 2) Statement of Revenues,
Expenses, and Changes in Net Position, 3) Statement of Cash Flows, and 4) Notes to the Financial
Statements. This report also contains other supplementary information in addition to the basic financial
statements.
The Statement of Net Position presents information on all of the District’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference reported as Total Net Position.
Over time, increases or decreases in net positions may serve as a useful indicator of whether the financial
position of the District is improving or weakening.
The Statement of Revenues, Expenses and Changes in Net Position presents information showing how the
District’s net position changed during the most recent fiscal year. All changes in net positions are reported
as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Financial Highlights
The assets and deferred outflows of resources of the District exceeded its liabilities and deferred inflows of resources at
the close of the most recent fiscal year by $387.5 million (net position). Of this amount, $27.7 million (unrestricted net
position) may be used to meet the District’s ongoing obligations to citizens and creditors.
Total assets decreased by $8.6 million or 1.53% during Fiscal Year 2018, to $554.5 million, due primarily to the
implementation of GASB Statement No. 75 offset by investments in capital infrastructure, contributions, and improved
operating results.
Net Position at July 1, 2017 was decreased by $17.8 million due to the change in assumption of Other Post-Employment
Benefits (OPEB) actuarial valuation as a result of the implementation of GASB Statement No. 75. The most significant
impact of the implementation requires the presentation of Other Post-Employment Benefits (OPEB) Plan’s $4.7 million
Unfunded Actuarial Accrual as a liability on the Statement of Net Position.
Management’s Discussion and Analysis
4
The Statement of Cash Flows presents information on cash receipts and payments for the fiscal year.
The Notes to the Financial Statements provides additional information that is essential to a full
understanding of the data supplied in each of the specific financial statements listed above.
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the District’s progress in funding its obligation to provide
retirement benefits to its employees.
Financial Analysis:
As noted, net position may serve, over time, as a useful indicator of an entity’s financial position. In the
case of the District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $387.5 million at the close of the most recent fiscal year.
By far, the largest portion of the District’s net position, $355.6 million (92%), reflects its investment in capital
assets, less any remaining outstanding debt used to acquire those assets. The District uses these capital
assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the District’s investment in its capital assets is reported effectively as a resource, it should be
noted that the resources needed to repay the debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
Management’s Discussion and Analysis
5
Statements of Net Position
(In Millions of Dollars)
2018 2017 2016
Assets
Current and Other Assets $ 103.6 $ 112.9 $ 112.4
Capital Assets 450.9 450.2 454.0
Total Assets 554.5 563.1 566.4
Deferred Outflows of Resources
Deferred Amount on Refunding
Deferred Actuarial Pension Costs
0.0
10.2
0.2
10.7
1.3
7.0
Deferred Actuarial OPEB Costs 2.2 0.0 0.0
Total Deferred Outflows of Resources 12.4 10.9 8.3
Liabilities
Long-Term Debt Outstanding 91.2 95.6 99.8
Net OPEB Liability 4.7 0.0 0.0
Net Pension Liability 49.6 45.2 40.1
Other Liabilities 32.4 28.2 27.8
Total Liabilities 177.9 169.0 167.7
Deferred Inflows of Resources
Deferred Actuarial Pension Costs 0.9 3.8 5.7
Deferred Actuarial OPEB Costs 0.6 0.0 0.0
Total Deferred Inflows of Resources 1.5 3.8 5.7
Net Position 1
Net Investment in Capital Assets 355.6 351.0 351.6
Restricted for Debt Service 4.2 4.3 4.4
Unrestricted 27.7 45.9 45.3
Total Net Position $ 387.5 $ 401.2 $ 401.3
The District’s operations and population continue to grow, albeit at slower rates than the housing boom
years. Much of this growth has and will continue to occur in the residential sector, especially in the area of
multi-family dwellings, as well as in the commercial area. The District still has available land to develop
unlike other parts of the County, as well as low unemployment and job creation, which has spurred the
development in the service area.
1 GASB No. 75 implemented in FY 2018. Prior years were not restated as the information was not readily
available.
Management’s Discussion and Analysis
6
In FY 2018, the District’s Capital Assets increased by $9.2 million before accumulated depreciation. (See
Note 4 in the Notes to Financial Statements). The District also saw a decrease in Long-Term Debt of $4.4
million due to the annual payments of long-term debt (See Note 5 in the Notes to Financial Statements).
Certain planning and environmental study costs associated with capital projects, such as the Otay Mesa
Desalination, and recycled permanent moratorium in Otay Mesa, do not qualify as capital costs under
Generally Accepted Accounting Principles and are included in the miscellaneous (non-operating)
expenses of the District. For FY 2018 and FY 2017 those expenses were $0.9 million and $2.3 million,
respectively.
At the end of FY 2018 the District is able to report positive balances in all categories of net position. This
situation also held true for the prior two fiscal years.
Statements of Revenues, Expenses, and Changes in Net Position
(In Millions of Dollars)
2018 2017 2016
Water Sales $ 92.6 $ 8.3 $ 73.9
Wastewater Revenue 2.9 3.0 3.2
Connection and Other Fees 2.0 1.8 1.8
Non-operating Revenues 7.9 10.1 8.9
Total Revenues 105.4 98.6 87.8
Depreciation Expense 17.5 17.8 16.5
Other Operating Expenses 88.3 78.8 73.2
Non-operating Expenses 5.0 7.7 6.2
Total Expenses 110.8 104.3 95.9
Loss Before Capital
Contributions (5.4) (5.7) (8.1)
Capital Contributions 9.5 5.6 7.0
Change in Net Position 4.1 (0.1) (1.1)
Beginning Net Position, As Previously Stated 401.2 401.3 402.4
Prior Period Adjustment (17.8) 0.0 ( 0.0)
Beginning Net Position, As Restated 383.4 401.3 402.4
Ending Net Position $ 387.5 $ 401.2 $ 401.3
Water Sales increased by $8.9 million and $9.8 million in FY 2018 and FY 2017, respectively. The increases
were due to both increases in units sold and water rates. The increases in unit sales is largely due to less
rainfall and higher than average temperature as well as the elimination of water use restrictions in FY 2017.
Management’s Discussion and Analysis
7
Other Operating Expenses increased by $9.5 million and $5.6 million in FY 2018 and FY 2017 predominantly
due to the increase in Cost of Water Sales brought about by the increase and units purchased in FY 2018
and FY 2017, respectively.
Connection and Other Fees revenues increased by $0.2 million in FY 2018 and remains the same in
FY 2017. The improvement in economy has resulted in an increase of $3.9 million in Capital Contributions
in FY 2018 compared to a decrease of $1.4 million in FY 2017.
Non-operating Revenues
Non-operating Revenues by Major Source
(In Millions of Dollars)
2018 2017 2016
Taxes and Assessments $ 4.5 $ 4.1 $ 4.0
Rents and Leases 1.4 1.4 1.3
Other Non-operating Revenue 2.0 4.6 3.6
Total Non-operating Revenues $ 7.9 $ 10.1 $ 8.9
The District’s total non-operating revenues decreased by $2.2 million in FY 2018 and increased by $1.2
million in FY 2017. The change in Non-operating Revenues between Fiscal Years 2018, 2017 and 2016 is
primarily due to the transfer of capacity revenue from capital contribution to fund project expenditures that
do not qualify as capital expenditures. All other Non-operating Revenues remained steady during this 3-
year period.
Capital Assets and Debt Administration
The District’s capital assets (net of accumulated depreciation) as of June 30, 2018, totaled $450.9 million.
Included in this amount is land. The District’s net capital assets increased by .16% for FY 2018 and
decreased by .84% for FY 2017.
Management’s Discussion and Analysis
8
Capital Assets
(In Millions of Dollars)
2018 2017 2016
Land $ 14.4 $ 14.4 $ 14.1
Construction in Progress 17.6 14.2 12.5
Water System 484.2 483.8 476.6
Recycled Water System 114.7 112.3 111.8
Sewer System 48.2 44.5 42.8
Field Equipment 8.5 9.0 9.1
Buildings 20.1 20.6 20.6
Transportation Equipment 3.4 3.3 3.4
Communication Equipment 3.5 3.4 3.3
Office Equipment 17.7 17.6 19.4
732.3 723.1 713.6
Less Accumulated
Depreciation (281.4) (272.9) (259.6)
Net Capital Assets $ 450.9 $ 450.2 $ 454.0
As indicated by figures in the table above, the majority of capital assets added during both fiscal years
were related to the potable and sewer systems. In addition, the majority of the cost of construction-in-
progress is also related to water systems. Additional information on the District’s capital assets can be
found in Note 4 of the Notes to Financial Statements.
At June 30, 2018, the District had $91.2 million in outstanding debt (net of $4.0 million of maturities
occurring in FY 2019), which consisted of the following:
General Obligation Bonds $ 2.8
Certificates of Participation 6.9
Revenue Bonds 81.5
Total Long-Term Debt $ 91.2
Additional information on the District’s long-term debt can be found in Note 5 of the Notes to Financial
Statements
Prior Period Adjustment
The Governmental Accounting Standards Board (GASB) issued Statement No. 75, “Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions - an amendment of GASB
Statement No. 45”, for periods beginning after June 15, 2017. The District implemented these standards in
FY 2018. The result of the implementation of these standards was to decrease the net position at July 1,
2017 by $17.8 million, which recognizes net OPEB liability, deferred outflows of resources, deferred inflows
of resources, and expenses related to the OPEB plan.
Management’s Discussion and Analysis
9
Fiscal Year 2018-2019 Budget
Economic Factors
The San Diego region imports 84% of its potable supply so factors such as local rainfall as well as weather
conditions elsewhere in the western portion of the nation can affect the region. San Diego received below
average rainfall in FY 2018, and the District anticipates an average rainfall pattern in the coming years.
Between 2008 and 2016 the District’s water sales declined for the District by nearly 30%. This decrease
was driven by many factors including the economic downturn caused by the great recession, increases in
the price of imported water, and State mandated cuts in potable water use due to the prolonged statewide
drought. Decreases in water sales during this period were offset by corresponding decreases in water
purchases and District managed costs such as reduced employee count and internal cost cuts, achieved
through automation and streamlining of processes. Due to record rain and snowfall, the State mandated
conservation ended in FY 2017. The removal of State mandates, dry winters and increased development
have led to water sales volumes increasing 6.7% in 2017 and 9.0% in 2018. The District is budgeting only
1.0% volume growth in FY 2019, which is due solely to growth in the customer base. Should future water
sales volumes decline due to limited supplies or mandated cuts, the District’s actions will be
commensurate with the magnitude of the reduction.
The District continues to respond to the challenges presented by growth, State mandates, and the
potential of drought, by creating new opportunities and new organizational efficiencies. By utilizing and
continuing to refine its Strategic Business Plan, it has captured the Board of Director’s vision and united its
staff in a common mission. The District has achieved a number of significant accomplishments due to its
successful adherence to its Strategic Business Plan. The District is not only poised to continue successfully
providing an affordable, safe, and reliable water supply for the people of its service area, but is set to reap
the rewards of greater efficiencies and economies of scale.
The District is currently at about 69% of its projected ultimate population, serving approximately 225,000
people. Long-term, this percentage should continue to increase as the District's service area continues to
develop and grow. By 2050, the District is projected to serve approximately 308,000 people, with an
average daily demand of 46 million gallons per day (MGD). Currently, the District services the needs of this
growing population by purchasing water from the San Diego County Water Authority (CWA), who in turn
purchases its water from the Metropolitan Water District (MWD) and the Imperial Irrigation District (IID).
Otay takes delivery of the water through several connections of large diameter pipelines owned and
operated by CWA. The District currently receives treated water from CWA directly and from the Helix Water
District via a contract with CWA. In addition, the District has an emergency agreement with the City of San
Diego to purchase water in the case of a shutdown of the main treated water source. The City of San
Diego also has a long-term contract with the District to provide recycled water for landscape and irrigation
usage. Through innovative agreements like these, benefits can be achieved by both parties by using
excess capacity of another agency, and diversifying local supply, thereby increasing reliability.
Management’s Discussion and Analysis
10
Financial
The District is budgeted to deliver approximately 29,377.2 acre-feet of potable water to 50,625 potable
customer accounts during FY 2018-2019. Management feels that these projections are realistic after
accounting for low growth, supply changes, and a focus on conservation. A combination of factors,
including the drought and economic uncertainty, have created challenges in developing projections for the
current fiscal year. Both unemployment and levels of distressed activity in the commercial and residential
resale market have improved from their economic crisis peaks. The housing market has experienced
higher demand compared to the previous years and unemployment is at record lows. District staff projects
that over the next six years the District will sell another 3,630 meters which translates to 4,544 equivalent
dwelling units (EDUs). This growth is estimated to increase sales volumes by an average of 1% per year
over the next five years. While all of these factors impact the region’s water usage, people’s need for water
remains an underlying constant. Staff continues working diligently on developing new water supplies as
they work through the financial impacts of conservation and the modest economic turnaround.
Management is unaware of any other conditions that could have a significant impact on the District’s
current financial position, net position, or operating results.
Contacting the District’s Financial Management
This financial report is designed to provide a general overview of the Otay Water District’s finances for the
Board of Directors, citizens, creditors, and other interested parties. Questions concerning any of the
information provided in the report or requests for additional information should be addressed to the
District’s Finance Department, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978-2004.
ASSETS
Current Assets:
Cash and Cash Equivalents (Notes 1 and 2) 24,147,997$
Restricted Cash and Cash Equivalents (Notes 1 and 2) 80,477
Investments (Note 2)30,866,180
Board Designated Investments (Note 2) 29,879,617
Restricted Investments (Notes 1 and 2) 4,166,548
Accounts Receivable, Net 12,109,378
Accrued Interest Receivable 295,947
Taxes and Availability Charges Receivable, Net 215,704
Restricted Taxes and Availability Charges Receivable, Net 27,480
Inventories 822,737
Prepaid Items and Other Receivables 1,018,820
Total Current Assets 103,630,885
Capital Assets (Note 4):
Land 14,406,778
Construction in Progress 17,618,059
Capital Assets, Net of Depreciation 418,825,726
Total Capital Assets, Net of Depreciation 450,850,563
Total Assets 554,481,448
DEFERRED OUTFLOWS OF RESOURCES
Deferred Actuarial Pension Costs (Note 7) 10,186,229
Deferred Actuarial OPEB Costs (Note 8) 2,202,004
Total Deferred Outflows of Resources 12,388,233$
Continued
STATEMENT OF NET POSITION
JUNE 30, 2018
The accompanying notes are an integral part of this statement.
11
LIABILITIES
Current Liabilities:
Current Maturities of Long-term Debt (Note 5) 4,040,000$
Accounts Payable 15,437,565
Accrued Payroll Liabilities 694,859
Other Accrued Liabilities 4,089,640
Customer and Developer Deposits 3,340,010
Accrued Interest 1,380,446
Unearned Revenues 233,251
Liabilities Payable from Restricted Assets:
Restricted Accrued Interest 45,200
Total Current Liabilities 29,260,971
Non-current Liabilities:
Long-term Debt (Note 5):
General Obligation Bonds 2,823,143
Certificates of Participation 6,893,293
Revenue Bonds 81,465,550
Net OPEB Liability 4,710,492
Net Pension Liability 49,582,316
Other Non-current Liabilities 3,117,705
Total Non-current Liabilities 148,592,499
Total Liabilities 177,853,470
DEFERRED INFLOWS OF RESOURCES
Deferred Actuarial Pension Costs (Note 7) 936,234
Deferred Actuarial OPEB Costs (Note 8) 539,449
Total Deferred Inflows of Resources 1,475,683
NET POSITION
Net Investment in Capital Assets 355,628,577
Restricted for Debt Service 4,247,025
Unrestricted 27,664,926
Total Net Position 387,540,528$
STATEMENT OF NET POSITION - CONTINUED
JUNE 30, 2018
The accompanying notes are an integral part of this statement.
12
OPERATING REVENUES
Water Sales 92,595,195$
Wastewater Revenue 2,865,520
Connection and Other Fees 2,013,057
Total Operating Revenues 97,473,772
OPERATING EXPENSES
Cost of Water Sales 62,321,213
Wastewater 2,501,240
Administrative and General 23,445,578
Depreciation 17,466,318
Total Operating Expenses 105,734,349
Operating Income (Loss) (8,260,577)
NON-OPERATING REVENUES (EXPENSES)
Investment Earnings 723,860
Taxes and Assessments 4,481,719
Availability Charges 697,724
Gain (Loss) on Sale of Capital Assets (1,709,538)
Rents and Leases 1,439,247
Miscellaneous Revenues 2,255,605
Donations (123,050)
Interest Expense (3,941,321)
Miscellaneous Expenses (900,247)
Total Non-operating Revenues (Expenses) 2,923,999
Income (Loss) Before Capital Contributions (5,336,578)
Capital Contributions 9,506,192
Change in Net Position 4,169,614
Total Net Position, Beginning, As Previously Reported 401,186,989
Prior Period Adjustment (Note 14) (17,816,075)
Total Net Position, Beginning, As Restated 383,370,914
Total Net Position, Ending 387,540,528$
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2018
The accompanying notes are an integral part of this statement.
13
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 95,612,497$
Receipts from Connections and Other Fees 2,013,057
Other Receipts 2,183,296
Payments to Suppliers (61,807,704)
Payments to Employees (21,689,670)
Other Payments (899,502)
Net Cash Provided By (Used For) Operating Activities 15,411,974
CASH FLOWS FROM NONCAPITAL AND RELATED
FINANCING ACTIVITIES
Receipts from Taxes and Assessments 4,495,002
Receipts from Property Rents and Leases 1,316,197
Net Cash Provided By (Used For) Noncapital and Related
Financing Activities 5,811,199
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from Capital Contributions 9,254,970
Proceeds from Sale of Capital Assets 77,684
Proceeds from Debt Related Taxes and Assessments 697,724
Principal Payments on Long-Term Debt (3,820,000)
Interest Payments and Fees (4,427,336)
Acquisition and Construction of Capital Assets (19,388,972)
Net Cash Provided By (Used For) Capital and Related
Financing Activities (17,605,930)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received on Investments 643,924
Proceeds from Sale and Maturities of Investments 12,631,381
Purchase of Investments (10,142,153)
Net Cash Provided By (Used For) Investing Activities 3,133,152
Net Increase (Decrease) in Cash and Cash Equivalents 6,750,395
Cash and Cash Equivalents - Beginning 17,478,079
Cash and Cash Equivalents - Ending 24,228,474$
Continued
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2018
The accompanying notes are an integral part of this statement.14
Reconciliation of Operating Income (Loss) to Net Cash Flows
Provided By (Used For) Operating Activities:
Operating Income (Loss)(8,260,577)$
Adjustments to Reconcile Operating Income to
Net Cash Provided By (Used For) Operating Activities:
Depreciation 17,466,318
Miscellaneous Revenues 2,183,296
Miscellaneous Expenses (899,502)
(Increase) Decrease in Accounts Receivable 263,462
(Increase) Decrease in Inventory (85,552)
(Increase) Decrease in Prepaid Items and Other Receivables (56,801)
(Increase) Decrease in Deferred Actuarial Pension Costs 494,900
(Increase) Decrease in Deferred Actuarial OPEB Costs 82,416
Increase (Decrease) in Accounts Payable 3,893,151
Increase (Decrease) in Accrued Payroll and Related Expenses (90,637)
Increase (Decrease) in Other Accrued Liabilities 318,137
Increase (Decrease) in Customer and Developer Deposits (111,680)
Increase (Decrease) in Prepaid Capacity Fees 43,392
Increase (Decrease) in Net OPEB Liability (1,834,367)
Increase (Decrease) in Net Pension Liability 4,332,872
Increase (Decrease) in Deferred Actuarial Pension Costs (2,866,303)
Increase (Decrease) in Deferred Actuarial OPEB Costs 539,449
Net Cash Provided By (Used For) Operating Activities 15,411,974$
Schedule of Cash and Cash Equivalents:
Current Assets:
Cash and Cash Equivalents 24,147,997$
Restricted Cash and Cash Equivalents 80,477
Total Cash and Cash Equivalents 24,228,474$
Supplemental Disclosures
Non-Cash Investing and Financing Activities Consisted of the Following:
Contributed Capital for Water and Sewer System 251,222$
Change in Fair Value of Investments and Recognized Gains/Losses 360,248
Amortization Related to Long-term Debt 364,678
STATEMENT OF CASH FLOWS - CONTINUED
FOR THE YEAR ENDED JUNE 30, 2018
The accompanying notes are an integral part of this statement.15
16
NOTE DESCRIPTION PAGE
1 Reporting Entity and Summary of Significant Accounting Policies..……….. 17 - 24
2 Cash and Investments………………………………………………………... 25 - 28
3 Fair Value Measurements…………………………………………..……….. 29
4 Capital Assets…………………………………………………..……………. 30
5 Long-Term Debt………………………………………………….………….. 31 - 35
6 Net Position………………………………………………………………….. 35
7 Defined Benefit Pension Plan……………………………………………….. 36 - 41
8 Other Post Employment Benefits………………………..…………............... 41 - 46
9 Water Conservation Authority………………………………………............ 46 - 47
10 Commitments and Contingencies……………………………………………. 47
11 Risk Management……………………………………………………………. 48 - 49
12 Interest Expense……………………………………………………............... 49
13 Segment Information………………………………………………..……….. 49 - 52
14 Prior Period Adjustment...…………………………………………..……….. 52
15 Subsequent Events……...…………………………………………..……….. 52
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
17
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
The reporting entity Otay Water District (the “District”) includes the accounts of the District, Otay Service
Corporation (the “Corporation”) and the Otay Water District Financing Authority (the “Financing Authority”).
The Otay Water District (the “District”) is a public entity established in 1956 pursuant to the Municipal Water
District Law of 1911 (Section 711 et. Seq. of the California Water Code) for the purpose of providing water and
sewer services to the properties in the District. The District is governed by a Board of Directors consisting of five
directors elected by geographical divisions based on District population for a four-year alternating term.
The District formed the Otay Service Corporation on June 21, 1993, a nonprofit public benefit corporation duly
organized and existing under the laws of the State of California. The Service Corporation was formed to assist the
District in the financing of public capital improvements.
The District formed the Financing Authority on March 3, 2010 under the Joint Exercise of Powers Act, constituting
Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California
Government Code. The Financing Authority was formed to assist the District in the financing of public capital
improvements.
The financial statements present the District and its component units. The District is the primary government unit.
Component units are those entities which are financially accountable to the primary government, either because the
District appoints a voting majority of the component unit’s board, or because the component units will provide a
financial benefit or impose a financial burden on the District. The District has accounted for the Service
Corporation and Financing Authority as “blended” component units. Despite being legally separate, the Service
Corporation and Financing Authority are so intertwined with the District that they are in substance, part of the
District’s operations. Accordingly, the balances and transactions of these component units are reported within the
funds of the District. Separate financial statements are not issued for the Service Corporation and the Financing
Authority.
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation
Measurement focus is a term used to describe “which” transactions are recorded within the various financial
statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus
applied. The accompanying financial statements are reported using the economic resources measurement focus, and
the accrual basis of accounting. Under the economic measurement focus all assets and liabilities (whether current or
noncurrent) associated with these activities are included on the Statement of Net Position. The Statement of
Revenues, Expenses and Changes in Net Position present increases (revenues) and decreases (expenses) in total net
position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows.
The District reports its activities as an enterprise fund, which is used to account for operations that are financed and
operated in a manner similar to a private business enterprise, where the intent of the District is that the costs (including
depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered
primarily through user charges.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
18
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued
The basic financial statements of the Otay Water District have been prepared in conformity with accounting principles
generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the
accepted standard setting body for governmental accounting financial reporting purposes.
Net position of the District is classified into three components: (1) net investment in capital assets, (2) restricted net
position, and (3) unrestricted net position. These classifications are defined as follows:
Net Investment in Capital Assets
This component of net position consists of capital assets, net of accumulated depreciation and reduced by the
outstanding balances of notes or borrowing that are attributable to the acquisition of the assets, construction, or
improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt
attributable to the unspent proceeds are not included in the calculation of the net investment in capital assets.
Restricted Net Position
This component of net position consists of net position with constrained use through external constraints imposed by
creditors (such as through debt covenants), grantors, contributions, or laws or regulations of other governments or
constraints imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position
This component of net position consists of net position that do not meet the definition of “net investment in capital
assets” or “restricted net position”.
The District distinguishes operating revenues and expenses from those revenues and expenses that are non-operating.
Operating revenues are those revenues that are generated by water sales and wastewater services while operating
expenses pertain directly to the furnishing of those services. Non-operating revenues and expenses are those revenues
and expenses generated that are not associated with the normal business of supplying water and wastewater treatment
services.
The District recognizes revenues from water sales, wastewater revenues, and meter fees as they are earned. Taxes and
assessments are recognized as revenues based upon amounts reported to the District by the County of San Diego, net of
allowance for delinquencies of $27,020 at June 30, 2018.
Additionally, capacity fee contributions received which are related to specific operating expenses are offset against
those expenses and included in Cost of Water Sales in the Statements of Revenues and Expenses and Changes in Net
Position.
Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant
proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and
unrestricted - net position, a flow assumption must be made about the order in which the resources are considered to be
applied.
It is the District’s practice to consider restricted - net position to have been depleted before unrestricted - net position is
applied, however it is at the Board’s discretion.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
19
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) New Accounting Pronouncements
Implemented
Governmental Accounting Standard Board Statement No. 75
In June of 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions. This Statement was issued to improve accounting and financial reporting for
postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves
information provided by governmental employers about financial support for OPEB that is provided by other
entities. This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by
Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting
requirements for OPEB plans. The provisions of this Statement are effective for fiscal years beginning after June 15,
2017. This Statement has been implemented in the District’s financial statements.
Governmental Accounting Standard Board Statement No. 81
In March of 2016, GASB issued Statement No. 81, Irrevocable Split Interest Agreements. This statement was
issued to improve accounting and financial reporting for irrevocable split-interest agreements by providing
recognition and measurement guidance for situations in which a government is a beneficiary of the agreement.
Split-interest agreements are a type of giving agreement used by donors to provide resources to two or more
beneficiaries, including governments. Split-interest agreements can be created through trusts—or other legally
enforceable agreements with characteristics that are equivalent to split-interest agreements—in which a donor
transfers resources to an intermediary to hold and administer for the benefit of a government and at least one other
beneficiary. This Statement requires that a government that receives resources pursuant to an irrevocable split-
interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement.
Furthermore, this Statement requires that a government recognize assets representing its beneficial interests in
irrevocable split-interest agreements that are administered by a third party, if the government controls the present
service capacity of the beneficial interests. This Statement requires that a government recognize revenue when the
resources become applicable to the reporting period. The requirements of this Statement are effective for reporting
periods beginning after December 15, 2016. Currently, this statement has no effect on the District’s financial
statements.
Governmental Accounting Standard Board Statement No. 82
In March of 2016, GASB issued Statement No. 82, Pension Issues – An Amendment of GASB Statements No. 67,
No. 68, and No. 73. This statement was issued to address certain issues that have been raised with respect to
Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for
Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the
Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Specifically,
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
20
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) New Accounting Pronouncements - Continued
Implemented - Continued
Governmental Accounting Standard Board Statement No. 82 - Continued
this Statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary
information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial
Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to
satisfy employee (plan member) contribution requirements. Prior to the issuance of this Statement, Statements 67
and 68 required presentation of covered-employee payroll, which is the payroll of employees that are provided with
pensions through the pension plan, and ratios that use that measure, in schedules of required supplementary
information. This Statement amends Statements 67 and 68 to instead require the presentation of covered payroll,
defined as the payroll on which contributions to a pension plan are based, and ratios that use that measure. This
Statement also clarifies the term deviation used in Actuarial Standards of Practice and payments made by the
employer to satisfy contribution requirements. The requirements of this Statement are effective for reporting
periods beginning after June 15, 2016, except for the requirements of this Statement for the selection of assumptions
in a circumstance in which an employer’s pension liability is measured as of a date other than the employer’s most
recent fiscal year-end. In that circumstance, the requirements for the selection of assumptions are effective for that
employer in the first reporting period in which the measurement date of the pension liability is on or after June 15,
2017. The District has implemented GASB No. 82 which is reflected on the District’s financial statements.
Governmental Accounting Standard Board Statement No. 85
In March of 2017, GASB issued Statement No. 85, Omnibus 2017. This Statement addresses practice issues that
have risen from the implementation of certain GASB Statements; primarily pension and OPEB related
measurement, recognition, timing, and reporting issues. Other issues include blending of component units for
governments whose primary activity is business-type, goodwill reporting, classifying real estate held by insurance
entities and measuring particular investments at amortized cost. This Statement is effective for reporting periods
beginning after June 15, 2017. Currently, this statement has no effect on the District’s financial statements.
Governmental Accounting Standard Board Statement No. 86
In May of 2017, GASB issued Statement No. 86, Certain Debt Extinguishment Issues. This Statement expands upon
GASB No. 7 Advance Refundings Resulting in Defeasance of Debt which defines debt defeased in substance and
the criteria for the trusts used to extinguish debt. This Statement establishes essentially the same requirements for
when a government places cash and other monetary assets acquired with only existing resources in an irrevocable
trust to extinguish the debt. This Statement is effective for reporting periods beginning after June 15, 2017.
Currently, this statement has no effect on the District’s financial statements.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
21
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) New Accounting Pronouncements - Continued
Pending Accounting Standards
GASB has issued the following statements which impact the District’s financial reporting requirements in the
future:
i. GASB 83 – “Certain Asset Retirement Obligations”, effective for fiscal years beginning after June 15, 2018.
ii. GASB 84 – “Fiduciary Activities”, effective for fiscal years beginning after December 15, 2018.
iii. GASB 87 – “Leases”, effective for fiscal years beginning after December 15, 2019.
iv. GASB 88 – “Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements”
effective for fiscal years beginning after June 15, 2018.
v. GASB 89 – “Accounting for Interest Cost Incurred before the End of a Construction Period” effective for
fiscal years beginning after December 15, 2019.
vi. GASB 90 – “Majority Equity Interests – an amendment of GASB Statements No. 14 and No. 61” effective
for fiscal years beginning after December 15, 2018.
D) Deferred Outflows / Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The District has two items that qualify for reporting in this category, deferred
actuarial pension costs and deferred actuarial OPEB costs are items that are deferred and recognized as an outflow of
resources in the period the amounts become available.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time.
The District has two items that qualify for reporting in this category. Accordingly, the items, deferred actuarial pension
costs and deferred actuarial OPEB costs, are deferred and recognized as an inflow of resources in the period that the
amounts become available.
E) Statements of Cash Flows
For purposes of the Statement of Cash Flows, the District considers all highly liquid investments (including
restricted assets) with a maturity period, at purchase, of three months or less to be cash equivalents.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
22
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
F) Investments
Investments are stated at their fair value, which represents the quoted or stated market value. Investments that are
not traded on a market, such as investments in external pools, are valued based on the stated fair value as
represented by the external pool. All investments are stated at their fair value, the District has not elected to report
certain investments at amortized costs.
G) Inventory and Prepaids
Inventory consists primarily of materials used in the construction and maintenance of the water and sewer system and is
valued at weighted average cost. Both inventory and prepaids use the consumption method whereby they are reported
as an asset and expensed as they are consumed.
H) Capital Assets
Capital assets are recorded at cost, where historical records are available, and at an estimated historical cost where no
historical records exist. Infrastructure assets in excess of $20,000 and other capital assets in excess of $10,000 are
capitalized if they have an expected useful life of two years or more. The District will also capitalize individual
purchases under the capitalization threshold if they are part of a new capital program. The cost of purchased and self-
constructed additions to utility plant and major replacements of property are capitalized. Costs include materials, direct
labor, transportation, and such indirect items as engineering, supervision, employee fringe benefits, overhead, and
interest incurred during the construction period. Repairs, maintenance, and minor replacements of property are charged
to expense. Donated assets are capitalized at their acquisition value on the date contributed.
The District capitalizes interest on construction projects up to the point in time that the project is substantially
completed. Capitalized interest for fiscal year ending June 30, 2018 of $266,959 is included in the cost of water system
assets and is depreciated on the straight-line basis over the estimated useful lives of such assets.
Depreciation is calculated using the straight-line method over the following estimated useful lives:
Water System 15-70 Years
Field Equipment 2-50 Years
Buildings 30-50 Years
Communication Equipment 2-10 Years
Transportation Equipment 2-7 Years
Office Equipment 2-10 Years
Recycled Water System 50-75 Years
Sewer System 25-50 Years
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
23
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
I) Compensated Absences
It is the District’s policy to record vested or accumulated vacation and sick leave as an expense and liability as benefits
accrue to employees.
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Compensated
Absences $ 2,733,700 $ 2,977,867 $ 2,903,953 $ 2,807,614 $ 280,761
Current portion is reflected in Accrued Payroll Liabilities and remainder in other non-current liabilities on the
Statement of Net Position.
J) Classification of Liabilities
Certain current liabilities have been classified as current liabilities payable from restricted assets as they will be
funded from restricted assets.
K) Allowance for Doubtful Accounts
The District charges doubtful accounts arising from water sales receivable to bad debt expense when it is probable that
the accounts will be uncollectible. Uncollectible accounts are determined by the allowance method based upon prior
experience and management’s assessment of the collectibility of existing specific accounts. The allowance for doubtful
accounts was $223,005 for 2018.
L) Property Taxes
Tax levies are limited to 1% of full market value (at time of purchase) which results in a tax rate of $1.00 per $100
assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded
from this limitation.
The County of San Diego (the “County”) bills and collects property taxes on behalf of the District. The County’s tax
calendar year is July 1 to June 30. Property taxes attach as a lien on property on January 1. Taxes are levied on July 1
and are payable in two equal installments on November 1 and February 1, and become delinquent after December 10
and April 10, respectively.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
24
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
M) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions,
and pension expense, information about the fiduciary net position of the District’s California Public Employees’
Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have
been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
N) Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB
expense, information about the fiduciary net position of the District’s plan (OPEB Plan) and additions to/deductions
from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit
payments are recognized when currently due and payable in accordance with the benefit terms. Investments are
reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information
within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2017
Measurement Date June 30, 2017
Measurement Period July 1, 2016 to June 30, 2017
O) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States
of America requires management to make estimates and assumptions that affect the reported amounts of assets,
deferred outflows of resources, liabilities, and deferred inflows of resources, and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
25
2) CASH AND INVESTMENTS
The primary goals of the District’s Investment Policy are to assure compliance with all Federal, State, and Local laws
governing the investment of funds under the control of the organization, protect the principal of investments entrusted, and
generate income under the parameters of such policies.
Cash and Investments are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Cash Equivalents $ 24,147,997
Restricted Cash and Cash Equivalents 80,477
Investments 30,866,180
Board Designated Investments 29,879,617
Restricted Investments 4,166,548
Total Cash and Investments $ 89,140,819
Cash and Investments consist of the following:
Cash on Hand $ 2,950
Deposits with Financial Institutions 754,437
Investments 88,383,432
Total Cash and Investments $ 89,140,819
Investments Authorized by the California Government Code and the District’s Investment Policy
The table below identifies the investment types that are authorized for the District by the California Government Code
(or the District’s Investment Policy, where more restrictive). The table also identifies certain provisions of the
California Government Code (or the District’s Investment Policy, where more restrictive) that address interest rate risk,
credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond
trustee that are governed by the provisions of debt agreements of the District, rather than the general provisions of the
California Government Code or the District’s Investment Policy.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Of Portfolio(1) In One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Government Sponsored Entities 5 years None None
Certificates of Deposit 5 years 15% None
Corporate Medium-Term Notes 5 years 10% None
Commercial Paper 270 days 10% 10%
Money Market Mutual Funds N/A 10% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
(1) Excluding amounts held by bond trustee that are not subject to California Government Code restrictions.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
26
2) CASH AND INVESTMENTS - Continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the
general provisions of the California Government Code or the District’s Investment Policy.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest
rates. One of the ways that the District manages its exposure to interest rates risk is by purchasing investments with shorter
durations than the maximum allowable under the District’s Investment Policy and by timing cash flows from maturities, so
that a portion of the portfolio is maturing or coming close to maturity evenly over time, as necessary, to provide the cash
flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the District’s investments to market interest rate fluctuations are
provided by the following tables that show the distribution of the District’s investments by maturity as of June 30, 2018.
Remaining Maturity (in Months)
12 Months 13 to 24 25 to 60 More Than
Investment Type Or Less Months Months 60 Months
U.S. Government Sponsored Entities $ 64,967,885 $ 27,845,100 $ 27,313,861 $ 9,808,924 $ -
Local Agency Investment Fund (LAIF) 11,204,070 11,204,070 - - -
San Diego County Pool 12,131,000 12,131,000 - - -
Money Market Funds 80,477 80,477 - - -
Total $ 88,383,432 $ 51,260,647 $ 27,313,861 $ 9,808,924 $ -
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is
the minimum rating required by (where applicable) the California Government Code or the District’s Investment Policy, or
debt agreements, and the Moody’s ratings as of June 30, 2018.
Minimum Rating as of Year End
Legal Not
Investment Type Rating AAA AA A-1 Rated
U.S. Government Sponsored Entities $ 64,967,885 N/A $ 64,967,885 $ - $ - $ -
Local Agency Investment Fund (LAIF) 11,204,070 N/A - - - 11,204,070
San Diego County Pool 12,131,000 N/A - - - 12,131,000
Money Market Funds 80,477 N/A - - 80,477 -
Total $ 88,383,432 $ 64,967,885 $ - $ 80,477 $ 23,335,070
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
27
2) CASH AND INVESTMENTS - Continued
Concentration of Credit Risk
The investment policy of the District contains various limitations on the amounts that can be invested in any one type or
group of investments and in any issuer, beyond that stipulated by the California Government Code, Sections 53600 through
53692. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that
represent 5% or more of total District investments as of June 30, 2018:
Issuer Investment Type Reported Amount
Federal Home Loan Bank U.S. Government Sponsored Entities $ 13,877,960
Federal Home Loan Mortgage Corp U.S. Government Sponsored Entities $ 13,789,744
Federal National Mortgage Association U.S. Government Sponsored Entities $ 23,423,521
Federal Farm Credit Banks U.S. Government Sponsored Entities $ 11,890,740
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government
will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an
outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities
that are in the possession of another party. The California Government Code and the District’s Investment Policy do not
contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other
than the following provision for deposits: The California Government Code requires that a financial institution secure
deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository
regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured
public deposits.
As of June 30, 2018, $555,267 of the District’s deposits with financial institutions in excess of federal depository insurance
limits, were held in collateralized accounts.
Local Agency Investment Fund (LAIF)
The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the
District’s investment in this pool is reported in the accompanying financial statements at amounts based upon District’s pro-
rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that
portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded
on an amortized cost-basis.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
28
2) CASH AND INVESTMENTS - Continued
Local Agency Investment Fund (LAIF) - Continued
The LAIF is a special fund of the California State Treasury through which local governments may pool investments. The
District may invest up to $65,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to
cash within twenty-four hours without loss of interest. Investments with LAIF are secured by the full faith and credit of the
State of California. The yield of LAIF for the quarter ended June 30, 2018 was 1.90%. The estimated amortized cost and
fair value of the LAIF pool at June 30, 2018 was $88,964,875,827 and $88,798,232,977. The District’s share of the pool at
June 30, 2018 was approximately 0.0126%.
San Diego County Pooled Fund
The San Diego County Pooled Investment Fund (SDCPIF) is a pooled investment fund program governed by the County of
San Diego Board of Supervisors, and administered by the County of San Diego Treasurer and Tax Collector. Investments
in SDCPIF are highly liquid as deposits and withdrawals can be made at anytime without penalty, determined on an
amortized cash basis, the same as the fair value of the District’s position in the pool.
The County of San Diego’s bank deposits are either federally insured or collateralized in accordance with the California
Government Code. Pool detail is included in the County of San Diego Comprehensive Annual Financial Report (CAFR).
Copies of the CAFR may be obtained from the County of San Diego Auditor-Controller’s Office - 1600 Pacific Coast
Highway, San Diego California 92101.
Restricted Cash and Cash Equivalents
Debt Service:
Water Revenue Bond Series 2010A $ 22,024
Water Revenue Bond Series 2010B 58,453
Total $ 80,477
Board Designated Investments
Investments are Board restricted for the cost of the following District projects:
New Water Supply $ 1,341,075
Replacement 28,538,542
Total $ 29,879,617
Restricted Investments
Debt Service:
General Obligation Bond ID No. 27-2009 $ 487,087
Water Revenue Bond Series 2010A 1,014,684
Water Revenue Bond Series 2010B 2,664,777
Total $ 4,166,548
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
29
3) FAIR VALUE MEASUREMENTS
Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and Application,
provides the framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value with Level 1 given the highest priority and Level 3 the lowest
priority. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the organization has
the ability to access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly. Level 2 inputs include the following:
a. Quoted prices for similar assets or liabilities in active markets.
b. Quoted prices for identical or similar assets or liabilities in markets that are not active.
c. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield
curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks,
and default rates).
d. Inputs that are derived principally from or corroborated by observable market data by correlation or other
means (market-corroborated inputs).
Level 3 inputs are unobservable inputs for the asset or liability.
Fair value of assets measured on a recurring basis at June 30, 2018, are as follows:
Significant Other
Observable Inputs
Fair Value (Level 2) Uncategorized
U.S. Government Sponsored Entities
$ 64,967,885
$ 64,967,885
$ -
Local Agency Investment Fund (LAIF) 11,204,070 - 11,204,070
San Diego County Pool 12,131,000 - 12,131,000
Money Market Funds 80,477 80,477 -
Total $ 88,383,432 $ 65,048,362 $ 23,335,070
Investments classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing
is used to value securities based on the securities’ relationship to benchmark quoted prices. Uncategorized investments
do not fall under the fair value hierarchy as there is no active market for the investments.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
30
4) CAPITAL ASSETS
The following is a summary of changes in Capital Assets for the year ended June 30, 2018:
Beginning Ending
Balance Additions Deletions Adjustments1 Balance
Capital Assets, Not Depreciated
Land $ 14,389,187 $ - $ - $ 17,591 $ 14,406,778
Construction in Progress 14,201,511 19,344,410 (15,927,862) - 17,618,059
Total Capital Assets
Not Depreciated 28,590,698 19,344,410 (15,927,862) 17,591 32,024,837
Capital Assets, Being Depreciated
Infrastructure 640,641,602 14,875,150 (9,312,310) 869,559 647,074,001
Field Equipment 8,988,620 60,471 (530,190) - 8,518,901
Buildings 20,576,125 635,154 (243,913) (887,150) 20,080,216
Transportation Equipment 3,286,998 278,472 (136,166) - 3,429,304
Communication Equipment 3,371,041 155,636 (12,362) - 3,514,315
Office Equipment 17,620,584 554,553 (525,150) - 17,649,987
Total Capital Assets
Being Depreciated 694,484,970 16,559,436 (10,760,091) (17,591) 700,266,724
Less Accumulated Depreciation:
Infrastructure 235,280,822 15,735,932 (7,597,237) 481,160 243,900,677
Field Equipment 7,036,892 307,889 (525,717) - 6,819,064
Buildings 9,596,983 509,171 (119,055) (481,160) 9,505,939
Transportation Equipment 2,608,206 155,029 (136,166) - 2,627,069
Communication Equipment 2,627,246 245,639 (12,362) - 2,860,523
Office Equipment 15,728,569 512,658 (513,501) - 15,727,726
Total Accumulated
Depreciation 272,878,718 17,466,318 (8,904,038) - 281,440,998
Total Capital Assets
Being Depreciated, Net
421,606,252
(906,882)
(1,856,053)
(17,591)
418,825,726
Total Capital Assets, Net $ 450,196,950 $ 18,437,528 $ (17,783,915) $ - $ 450,850,563
1 Adjustments are related to recategorization of capital assets during the fiscal year.
Depreciation expense for the year ended June 30, 2018 was $17,466,318.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
31
5) LONG-TERM DEBT
Long-term liabilities for the year ended June 30, 2018 are as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
General Obligation Bonds:
Improvement District No. 27 - 2009 $ 3,995,000 $ - $ 605,000 $ 3,390,000 $ 635,000
Unamortized Bond Premium 84,498 - 16,355 68,143 -
Net General Obligation Bonds 4,079,498 - 621,355 3,458,143 635,000
Certificates of Participation:
1996 Certificates of Participation 8,200,000 - 600,000 7,600,000 700,000
1996 COPS Unamortized Discount (7,452) - (745) (6,707) -
Net Certificates of Participation 8,192,548 - 599,255 7,593,293 700,000
Revenue Bonds:
2010 Water Revenue Bonds Series A 8,820,000 - 940,000 7,880,000 975,000
2010 Water Revenue Bonds Series B 36,355,000 - - 36,355,000 -
2013 Water Revenue Refunding Bonds 5,220,000 - 660,000 4,560,000 685,000
2016 Water Revenue Refunding Bonds 32,185,000 - 1,015,000 31,170,000 1,045,000
2010 Series A Unamortized Premium 539,411 - 74,402 465,009 -
2013 Bonds Unamortized Premium 592,588 - 96,095 496,493 -
2016 Bonds Unamortized Premium 3,422,619 - 178,571 3,244,048 -
Net Revenue Bonds 87,134,618 - 2,964,068 84,170,550 2,705,000
Total Long-Term Liabilities $ 99,406,664 $ - $ 4,184,678 $ 95,221,986 $ 4,040,000
General Obligation Bonds
In June 1998, the District issued $11,835,000 of General Obligation Refunding Bonds. The proceeds of this issue, together
with other lawfully available monies, were to be used to establish an irrevocable escrow to advance refund and defease in
their entirety the District’s previous outstanding General Obligation Bond issue. In November 2009, the District issued
$7,780,000 of General Obligation Refunding Bonds Improvement District No. 27-2009 to refund the 1998 issue. The
proceeds from the bond issue were $7,989,884, which included an original issue premium of $209,884. An amount of
$7,824,647, which consisted of unpaid principal and accrued interest, was deposited into an escrow fund. Pursuant to an
optional redemption clause in the 1998 bonds, the District was able to redeem the 1998 bonds, without premium at any time
after September 1, 2009. On December 15, 2009 the 1998 bonds were refunded.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
32
5) LONG-TERM DEBT - Continued
General Obligation Bonds - Continued
These bonds are general obligations of Improvement District No. 27 (ID 27) of the District. The Board of Directors has the
power and is obligated to levy annual ad valorem taxes without limitation, as to rate or amount for payment of the bonds and
the interest upon all property which is within ID 27 and subject to taxation. The General Obligation Bonds are payable from
District-wide tax revenues. The Board may utilize other sources for servicing the bond debt and interest.
The Improvement District No. 27-2009 General Obligation Refunding Bonds have interest rates from 3.00% to 4.00% with
maturities through Fiscal Year 2023.
Future debt service requirements for the bonds are as follows:
For the Year Ended
June 30, Principal Interest
2019 $ 635,000 $ 122,900
2020 650,000 97,200
2021 680,000 70,600
2022 705,000 42,900
2023 720,000 14,400
$ 3,390,000 $ 348,000
Certificates of Participation (COPS)
In June 1996, COPS with face value of $15,400,000 were sold by the Otay Service Corporation to finance the cost of
design, acquisition, and construction of certain capital improvements. An installment purchase agreement between the
District, as Buyer, and the Corporation, as Seller, was executed for the scheduled payment of principal and interest
associated with the COPS. The installment payments are to be paid from taxes and net revenues, as described in the
installment agreement. The certificates bear interest at a variable weekly rate not to exceed 12%. The variable interest rate
is tied to the 30-day LIBOR index and the Securities Industry and Financial Markets Association (SIFMA) index. An
irrevocable letter of credit facility is necessary to market the District’s variable rate debt. This facility is with Union Bank
and covers the outstanding principal and interest. The facility expires on June 29, 2020. The interest rate at June 30, 2018
was 1.50%. The installment payments are to be paid annually at $350,000 to $1,100,000 from September 1, 1996 through
September 1, 2026.
In March 2007, Revenue Certificates of Participation (COPS) with face value of $42,000,000 were sold by the Otay Service
Corporation to improve the District’s water storage system and distribution facilities. An installment purchase agreement
between the District, as a Buyer, and the Corporation, as Seller, was executed for the scheduled payment of principal and
interest associated with the COPS. The installment payments are to be paid from taxes and net revenues, as described in the
installment agreement. On May 1, 2016 the 2007 COPS was refunded.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
33
5) LONG-TERM DEBT - Continued
There is no aggregate reserve requirement for the COPS. Future debt service requirements for the certificates are as
follows:
For the Year 1996 COPS
Ended June 30, Principal Interest(1)
2019 $ 700,000 $ 105,250
2020 700,000 94,750
2021 700,000 84,250
2022 800,000 72,500
2023 800,000 60,500
2024-2027 3,900,000 102,750
$ 7,600,000 $ 520,000
(1)Variable Rate - Interest reflected at June 30, 2018 at a rate of 1.50%.
The COPS debt issue contain various covenants and restrictions, principally that the District fix, prescribe, revise and collect
rates, fees and charges for the Water System which will at lease sufficient to yield, during each fiscal year, taxes and net
revenues equal to one hundred twenty-five percent (125%) of the debt service for such fiscal year. The District was in
compliance with these rate covenants for the fiscal year ended June 30, 2018.
Water Revenue Bonds
In April 2010, Water Revenue Bonds with a face value of $50,195,000 were sold by the Otay Water District Financing
Authority to provide funds for the construction of water storage and transmission facilities. The bond issue consisted of two
series; Water Revenue Bonds, Series 2010A (Non-AMT Tax Exempt) with a face value of $13,840,000 plus a $1,078,824
original issue premium, and Water Revenue Bonds, Series 2010B (Taxable Build America Bonds) with a face value of
$36,355,000. The Series 2010A bonds are due in annual installments of $785,000 to $1,295,000 from September 1, 2012
through September 1, 2025; bearing interest at 2% to 5.25%. The Series 2010B bonds are due in annual installments of
$1,365,000 to $3,505,000 from September 1, 2026 through September 1, 2040; bearing interest at 6.377% to 6.577%.
Interest on both Series is payable on September 1, 2010 and semiannually thereafter on March 1st and September 1st of each
year until maturity or earlier redemption. The installment payments are to be made from taxes and net revenues of the
Water System as described in the installment purchase agreement, on parity with the payments required to be made by the
District for the 1996 Certificates of Participation described above and the 2013 and 2016 Water Revenue Refunding Bonds
described below.
The proceeds of the bonds will be used to fund the project described above as well as to fund reserve funds of $1,030,688
(Series 2010A) and $2,707,418 (Series 2010B). $542,666 was used to fund various costs of issuance.
The original issue premium is being amortized over the 14-year life of the Series 2010A bonds. Amortization for the year
ending June 30, 2018 was $74,402 and is included in interest expense. The unamortized premium at June 30, 2018 is
$465,009.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
34
5) LONG-TERM DEBT - Continued
Water Revenue Bonds - Continued
The 2010 Water Revenue Bonds contains various covenants and restrictions, principally that the District fix, prescribe,
revise and collection rates, fees and charges for the Water System which will at least be sufficient to yield, during each fiscal
year, taxes and net revenues equal to one hundred twenty-five percent (125%) of the debt service for such fiscal year. The
District was in compliance with these rate covenants for the fiscal year ended June 30, 2018.
In June 2013, the 2013 Water Revenue Refunding Bonds were issued to defease the 2004 Refunding Certificates of
Participation. The bonds were issued with a face value of $7,735,000 plus a $984,975 original issue premium. The bonds
are due in annual installments of $660,000 to $835,000 from September 1, 2013 through September 1, 2023; bearing
interest at 1% to 4%. The installment payments are to be made from taxes and net revenues of the Water System, on parity
with the payments required to be made by the District for the 1996 and 2016 Water Revenue Bonds and the 2010A and
2010B described above.
The original issue premium is being amortized over the 11 year life of the Series 2013 bonds. Amortization for the year
ending June 30, 2018 was $96,095 and is included in interest expense. The unamortized premium at June 30, 2018 is
$496,493.
In May 2016, Water Revenue Refunding Bonds were issued to defease the 2007 Revenue Certificates of Participation. The
bonds are due in annual installments of $1,200,000 to $2,235,000 from September 1, 2016 through September 1, 2036;
bearing interest of 2% to 5%. The bonds were issued with a face value of $33,385,000 plus $3,630,950 original issue
premium. The savings between the cash flow required to service, the old debt and the cash flow required to service the new
debt is $5,664,140 and represent an economic gain on refunding of $4,538,175.
The original issue premium is being amortized over the 20 year life of the Series 2016 bonds. Amortization for the year
ending June 30, 2018 was $178,571 and is included in interest expense. The unamortized premium at June 30, 2018 is
$3,244,048.
The total amount outstanding at June 30, 2018 and aggregate maturities of the revenue bonds for the fiscal years subsequent
to June 30, 2018, are as follows:
For the Year
2010 Water Revenue Bond
Series A
2010 Water Revenue Bond
Series B
Ended June 30, Principal Interest Principal Interest
2019 $ 975,000 $ 367,988 $ - $ 2,371,868
2020 1,015,000 323,112 - 2,371,868
2021 1,065,000 271,112 - 2,371,868
2022 1,120,000 216,488 - 2,371,868
2023 1,175,000 159,113 - 2,371,868
2024-2028 2,530,000 132,856 4,360,000 11,453,765
2029-2033 - - 9,320,000 9,049,258
2034-2038 - - 12,795,000 5,459,733
2039-2042 - - 9,880,000 1,002,335
$ 7,880,000 $ 1,470,669 $ 36,355,000 $ 38,824,431
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
35
5) LONG-TERM DEBT - Continued
Water Revenue Bonds - Continued
For the Year
2013 Water Revenue
Refunding Bonds
2016 Water Revenue
Refunding Bonds
Ended June 30, Principal Interest Principal Interest
2019 $ 685,000 $ 168,700 $ 1,045,000 $ 1,173,456
2020 715,000 140,700 1,100,000 1,119,831
2021 745,000 111,500 1,155,000 1,063,456
2022 775,000 81,100 1,215,000 1,004,206
2023 805,000 49,500 1,285,000 941,706
2024-2028 835,000 16,700 7,480,000 3,658,132
2029-2033 - - 9,315,000 1,917,682
2034-2037 - - 8,575,000 498,078
$ 4,560,000 $ 568,200 $ 31,170,000 $ 11,376,547
Revenues Pledged
The District has pledged a portion of future water sales revenues to repay its Water Revenue Bonds and Certificates of
Participation. Total principal and interest remaining on the water revenue bonds and certificates of participation is
$140,324,846 payable through fiscal year 2042. For the current year, principal and interest paid by the water sales revenues
were $3,215,000 and $4,268,091, respectively.
6) NET POSITION
Designations of Net Position
In addition to the restricted net position, a portion of unrestricted net position, have been designated by the Board of
Directors for the following purposes as of June 30, 2018:
Designated Betterment $ 2,293,440
Replacement Reserve 20,510,569
Designated New Supply Fund 325,645
Employee Benefits Reserve 262,404
Total $ 23,392,058
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
36
7) DEFINED BENEFIT PENSION PLAN
A) General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the District’s Plan, agent multiple-
employer defined benefit pension plans administered by the California Public Employees’ Retirement System
(CalPERS), which acts as a common investment and administrative agent for its participating member employers.
Benefit provisions under the Plans are established by State statute and District resolution. CalPERS issues publicly
available reports that include a full description of the pension plans regarding provisions, assumptions and
membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to
plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service,
equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50
with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.
The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional
Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public
Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2018 are summarized as follows:
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.7% at 55 2% at 62
Benefit Vesting Schedule 5 years service 5 years service
Benefit Payments Monthly for life Monthly for life
Retirement Age 50 - 55 52 - 67
Monthly Benefits, as a % of Eligible Compensation 2.0% to 2.7% 1.0% to 2.5%
Required Employee Contribution Rates 8% 6.25%
Required Employer Contribution Rates 20.869% - 25.435% 25.435% - 34.246%
Employees Covered
The following employees were covered by the benefit terms for the Plan:
Inactive Employees or Beneficiaries Currently Receiving Benefits 175
Inactive Employees Entitled to But Not Yet Receiving Benefits 140
Active Employees 134
Total 449
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
37
7) DEFINED BENEFIT PENSION PLAN - Continued
A) General Information about the Pension Plans - Continued
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates
for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1
following notice of a change in the rate. Funding contributions for the Plan are determined annually on
an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to
finance the costs of benefits earned by employees during the year, with an additional amount to finance any
unfunded accrued liability. The District is required to contribute the difference between the actuarially determined
rate and the contribution rate of employees.
B) Net Pension Liability
The District’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s
fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2017, using the annual
actuarial valuation as of June 30, 2016 rolled forward to June 30, 2017 using standard update procedures. A
summary of principal assumptions and methods used to determine the net pension liability is shown below:
Actuarial Assumptions
The total pension liabilities in the June 30, 2016 actuarial valuations were determined using the following actuarial
assumptions:
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.75%
Payroll Growth 3.0%
Projected Salary Increase 3.3% - 14.2%(1)
Investment Rate of Return 7.5%(2)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016
valuation were based on the results of a January 2014 actuarial experience study for the period 1997
to 2011. Further details of the Experience Study can be found on the CalPERS website.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
38
7) DEFINED BENEFIT PENSION PLAN - Continued
B) Net Pension Liability - Continued
Discount Rate
The discount rate used to measure the total pension liability was 7.15% for the Plan. To determine whether the
municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans
that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.
Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is
adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate
of 7.15% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are
presented in a detailed report that can be obtained from the CalPERS website.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for
pension plan administrator expense. The 7.50% investment return assumption used in this accounting valuation is
net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return
excluding administrative expenses would have been 7.65%. Using this lower discount rate has resulted in a slightly
higher Total Pension Liability and Net Pension Liability. CalPERS checked the materiality threshold for the
difference in calculation and did not find it to be a material difference.
The long-term expected rate of return on pension plan investments was determined using a building-block method
in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Using historical returns of all the
funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-
term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and
long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by
calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as
the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent
to the single equivalent rate calculated above the rounded down to the nearest one quarter of one percent.
The following table reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These
rates of return are net of administrative expenses.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
39
7) DEFINED BENEFIT PENSION PLAN - Continued
B) Net Pension Liability - Continued
Discount Rate - Continued
Asset Class
New Strategic
Allocation
Real Return
Years 1 - 10(a)
Real Return
Years 11+(b)
Global Equity 47.0% 4.90% 5.38%
Global Fixed Income 19.0% 0.80% 2.27%
Inflation Sensitive 6.0% 0.60% 1.39%
Private Equity 12.0% 6.60% 6.63%
Real Estate 11.0% 2.80% 5.21%
Infrastructure and Forestland 3.0% 3.90% 5.36%
Liquidity 2.0% -0.40% -0.90%
Total 100%
(a) An expected inflation of 2.5% used for this period.
(b) An expected inflation of 3.0% used for this period.
C) Changes in the Net Pension Liability
The changes in the Net Pension Liability for the Plan for June 30, 2018:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Beginning Balance $ 119,095,572 $ 73,846,128 $ 45,249,444
Changes in the Year:
Service Cost 2,556,902 - 2,556,902
Interest on the Total Pension Liability 8,836,284 - 8,836,284
Changes in Benefit Terms - - -
Changes in Assumptions 7,308,486 - 7,308,486
Differences Between Actual and Expected
Experience
(1,208,593)
-
(1,208,593)
Contribution - Employer - 4,105,810 (4,105,810)
Contribution - Employees - 1,014,329 (1,014,329)
Net Investment Income - 8,149,097 (8,149,097)
Benefit Payments, Including Refunds of
Employee Contributions
(5,779,040)
(5,779,040)
-
Administrative Expense - (109,029) 109,029
Net Changes 11,714,039 7,381,167 4,332,872
Ending Balance $ 130,809,611 $ 81,227,295 $ 49,582,316
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
40
7) DEFINED BENEFIT PENSION PLAN - Continued
C) Changes in the Net Pension Liability - Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the District for the Plan, calculated using the discount rate for the
Plan, as well as what the District’s net pension liability would be if it were calculated using a discount rate that is 1-
percentage point lower or 1-percentage point higher than the current rate:
1% Decrease 6.15%
Net Pension Liability $ 67,205,545
Current Discount Rate 7.15%
Net Pension Liability $ 49,582,316
1% Increase 8.15%
Net Pension Liability $ 34,980,142
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS
financial reports.
D) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2018, the District recognized pension expense of $6,413,616. At June 30, 2018, the
District reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following services:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date $ 4,452,147 $ -
Differences between actual and expected experience - (936,234)
Changes in assumptions 4,601,639 -
Net difference between projected and actual earnings on
pension plan investments
1,132,443
-
Total $ 10,186,229 $ (936,234)
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
41
7) DEFINED BENEFIT PENSION PLAN - Continued
D) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - Continued
$4,452,147 reported as deferred outflows of resources related to contributions subsequent to the measurement date
will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts
reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized
as pension expense as follows:
Deferred
Year Ended Outflow/(Inflows)
June 30 of Resources
2018 $ 2,090,840
2019 2,830,327
2020 462,151
2021 (585,470)
2022 -
Thereafter -
E) Payable to the Pension Plan
At June 30, 2018, the District reported a payable of $88,989 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2018 reflected in the accrued payroll liabilities on the Statement
of Net Position.
8) OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description
The District’s defined benefit postemployment healthcare plan, (DPHP), provides medical benefits to eligible retired
District employees and beneficiaries. DPHP is part of the Public Agency portion of the California Employers’ Retiree
Benefit Trust Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’
Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public
employers within the State of California. CalPERS issues a separate Comprehensive Annual Financial Report. Copies
of the CalPERS’ annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento,
California 95814.
Prior to the plan agreements signed in 2011, the eligibility in the plan was broken into 3 tiers, employees hired before
January 1, 1981, employees hired on or after January 1, 1981 but before July 1, 1993 and employees hired on or after
July 1, 1993. Board members elected before January 1, 1995 are also eligible for the plan. Eligibility also includes age
and years of service requirements which vary by tier. Benefits include up to 100% medical and/or dental premiums for
life for the retiree for Tier I, II or III employees, and up to 100% spouse premium until death of retiree or age 65
whichever is greater and dependent premium up to age 19 depending on the tier.
Subsequent to the agreements in 2011 and 2012 all employees are eligible for the plan after 20 years of consecutive
service and unrepresented employees hired before January 1, 2013 are eligible after 15 years. Survivor benefits are
covered beyond Medicare.
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
42
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Employees Covered
As of June 30, 2017 actuarial valuation, the following current and former employees were covered by the benefit terms
under the Plan:
Active employees 131
Inactive employees or beneficiaries currently receiving benefits 79
Inactive employees entitled to, but not yet receiving benefits -
Total 210
Contributions
The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2018, the
District’s cash contributions were $2,054,208 in payments to the trust and the estimated implied subsidy was $147,796
resulting in total payments of $2,202,004.
Net OPEB Liability
The District’s net OPEB liability was measured as of June 30, 2017 and the total OPEB liability used to calculate the net
OPEB liability was determined by an actuarial valuation dated June 30, 2017 based on the following actuarial methods
and assumptions:
Actuarial Assumptions
Discount Rate 7.00%
Inflation 2.75%
Salary Increases 3.0% plus merit
Investment Rate of Return 7.00%
Mortality Rate(1) Derived using CalPERS Membership Data for all funds
Pre-Retirement Turnover(2) Derived using CalPERS Membership Data for all funds
Healthcare Trend Rate 6.00% HMO/6.50% PPO decreasing to 5.00% HMO/5.00% PPO
Notes:
(1) Pre-retirement mortality information was derived from data collected during 1997 to 2011 CalPERS Experience Study
dated January 2014 and post-retirement mortality information was derived from the 2007 to 2011 CalPERS Experience
Study. The Experience Study Reports may be access on the CalPERS website www.calpers.ca.gov under Forms and
Publications.
(2) The pre-retirement turnover information was developed based on CalPERS specific data. For more details, please refer to
the 2007 to 2011 Experience Study Report. The Experience Study Report may be accessed on the CalPERS website
www.calpers.ca.gov under Forms and Publications.
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
43
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Net OPEB Liability - Continued
The long-term expected rate of return on OPEB plan investments was determined using a building block method in which
best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and
inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset
are summarized in the following table:
Long-term
Target Expected Real
Asset Class Allocation Rate of Return
US Equity 30.0% 4.85%
International Equity 27.0% 5.85%
REITs 8.0% 3.65%
US Fixed Income 27.0% 2.35%
Commodities 3.0% 1.75%
Inflation Assets 5.0% 1.50%
Total 100%
Discount Rate
The discount rate used to measure the total OPEB liability was 7.00%. The projection of cash flows used to determine the
discount rate assumed that District contributions will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected
OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of
return on OPEB plan investments was applied to all periods of projects benefit payments to determine the total OPEB
liability.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
44
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:
Increase (Decrease)
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability/(Asset)
(c) = (a) - (b)
Balance at June 30, 2017
(Valuation Date June 30, 2017) $ 25,037,076 $ 18,492,217 $ 6,544,859
Changes Recognized for the Measurement Period:
Service Cost 687,528 - 687,528
Interest 1,764,343 - 1,764,343
Changes of Assumptions - - -
Contribution - Employer - 2,284,420 (2,284,420)
Net Investment Income - 2,011,985 (2,011,985)
Benefit Payments (1,039,420) (1,039,420) -
Administrative Expense - (10,167) 10,167
Net Changes 1,412,451 3,246,818 (1,834,367)
Balance at June 30, 2018
(Measurement Date June 30, 2017)
$ 26,449,527
$ 21,739,035
$ 4,710,492
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the District if it were calculated using a discount rate that is one
percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30,
2017:
1% Decrease
(6.00%)
Current
Discount Rate
(7.00%)
1% Increase
(8.00%)
Net OPEB Liability $ 8,830,538 $ 4,710,492 $ 1,378,817
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
45
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the District if it were calculated using health care cost trend rates that
are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June
30, 2017:
1% Decrease
(5.00% HMO/5.50% PPO
Decreasing to
4.00% HMO/4.00% PPO)
Current Healthcare Cost
Trend Rates
(6.00% HMO/6.5% PPO
Decreasing to
5.00% HMO/5.00% PPO)
1% Increase
(7.00% HMO/7.50% PPO
Decreasing to
6.00% HMO/6.00% PPO)
Net OPEB Liability $ 1,158,335 $ 4,710,492 $ 9,214,495
OPEB Plan Fiduciary Net Position
CERBT issues a publicly available financial report that may be obtained from the California Public Employees
Retirement System Executive Office, 400 P Street, Sacramento, California 95814.
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense
systematically over time.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future
OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual
earnings on OPEB plan investments
5 years
All other amounts Expected average remaining service lifetime (EARSL)
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
46
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2018, the District recognized OPEB expense of $(39,299). As of fiscal year ended
June 30, 2018, the District reported deferred outflows of resources related to OPEB from the following services:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
OPEB contributions subsequent to measurement date $ 2,202,004 $ -
Changes in assumptions - -
Net differences between projected and actual earnings
on OPEB plan investments
-
(539,449)
Total $ 2,202,004 $ (539,449)
The $2,202,004 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2017
measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30,
2019. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as
follows:
Deferred
Year Ended Outflow/(Inflows)
June 30, of Resources
2019 $ (134,862)
2020 (134,862)
2021 (134,862)
2022 (134,863)
2023 -
Thereafter -
9) WATER CONSERVATION AUTHORITY
In 1999 the District formed the Water Conservation Garden Authority (the “Authority”), a Joint Powers Authority, with
other local entities to construct, maintain and operate a xeriscape demonstration garden in the furtherance of water
conservation. The authority is a non-profit public charity organization and is exempt from income taxes. During the year
ended June 30, 2018, the District contributed $123,050, for the development, construction and operation costs of the
xeriscape demonstration garden.
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
47
9) WATER CONSERVATION AUTHORITY - Continued
A summary of the Authority’s June 30, 2017 audited financial statement is as follows (latest report available):
Assets $ 1,250,047
Liabilities 0
Net Position $ 1,250,047
Revenues, Gains and Other Support $ 490,780
Expenses 557,052
Changes in Net Position $ (66,272)
10) COMMITMENTS AND CONTINGENCIES
Construction Commitments
The District had committed to capital projects under construction with an estimated cost to complete of $21,974,525 at June
30, 2018.
Litigation
Certain claims, suits and complaints arising in the ordinary course of operation have been filed or are pending against the
District. In the opinion of the staff and counsel, all such matters are adequately covered by insurance, or if not so covered,
are without merit or are of such kind, or involved such amounts, as would not have significant effect on the financial
position or results of operations of the District if disposed of unfavorably.
Refundable Terminal Storage Fees
The District has entered into an agreement with several developers whereby the developers prepaid the terminal storage fee
in order to provide the District with the funds necessary to build additional storage capacity. The agreement further allows
the developers to relinquish all or a portion of such water storage capacity. If the District grants to another property owner
the relinquished storage capacity, the District shall refund to the applicable developer $746 per equivalent dwelling unit
(EDU). There were 17,867 EDUs that were subject to this agreement. At June 30, 2018, 1,750 EDUs had been
relinquished and refunded, 15,086 EDUs had been connected, and 1,031 EDUs have neither been relinquished nor
connected.
Developer Agreements
The District has entered into various Developer Agreements with developers towards the expansion of District facilities.
The developers agree to make certain improvements and after the completion of the projects the District agrees to reimburse
such improvements with a maximum reimbursement amount for each developer. Contractually, the District does not incur a
liability for the work until the work is accepted by the District. As of June 30, 2018, none of the outstanding developer
agreements had been accepted.
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
48
11) RISK MANAGEMENT
General Liability
The District is exposed to various risks of loss related to torts, theft, damage and destruction of assets, errors and omissions,
and natural disasters. Beginning in July 2003, the District began participation in an insurance pool through the Special
District Risk Management Authority (SDRMA). SDRMA is a not-for-profit public agency formed under California
Government Code Sections 6500 et. Seq. SDRMA is governed by a board composed of members from participating
agencies. The mission of SDRMA is to provide renewable, efficiently priced risk financing and risk management services
through a financially sound pool. The District pays an annual premium for commercial insurance covering general liability,
excess liability, property, automobile, public employee dishonesty, and various other claims. Separate financial statements
of SDRMA may be obtained at Special District Risk Management Authority, 1112 “I” Street, Suite 300, Sacramento, CA
95814.
General and Auto Liability, Public Officials’ Errors and Omissions and Employment Practices Liability: Total risk
financing limits of $10 million combined single limit at $10 million per occurrence, subject to the following deductibles:
$12,000 per occurrence for third party general liability property damage;
$1,000 per occurrence for third party auto liability property damage;
50% co-insurance of cost expended by SDRMA, in excess of $10,000 up to $210,000, per occurrence, as respects
any employment practices claim or suit arising in whole or any part out of any action involving discipline,
demotion, reassignment or termination of any employee of the member.
Employee Dishonesty Coverage: Total of $1,000,000 per loss includes Public Employee Dishonesty, Forgery or Alteration
and Theft, Disappearance and Destruction coverage’s effective July 1, 2017.
Property Loss: Replacement cost, for property on file, if replaced, and if not replaced within two years after the loss, paid
on an actual cash value basis, to a combined total of $1 billion per occurrence, subject to a $1,000 deductible per
occurrence, effective July 1, 2017.
Boiler and Machinery: Replacement cost up to $100 million per occurrence, subject to a $1,000 deductible, effective July 1,
2017.
Public Officials Personal Liability: $500,000 each occurrence, with an annual aggregate of $500,000 per each
elected/appointed official to which this coverage applies, subject to the terms, conditions and exclusions as provided in the
Memorandum of Coverage’s, deductible of $500 per occurrence, effective July 1, 2017.
Comprehensive and Collision: On selected vehicles, with deductibles of $250/$500 or $500/$1,000, as elected; ACV limits;
fully self-funded by SDRMA; Policy No. LCA - SDRMA – 2017-18, effective July 1, 2017.
Workers’ Compensation Coverage and Employer’s Liability: Statutory limits per occurrence for Workers’ Compensation
and $5.0 million for Employer’s Liability Coverage, subject to the terms, conditions and exclusions as provided in the
Memorandum of Coverage, effective July 1, 2017.
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
49
11) RISK MANAGEMENT - Continued
General Liability - Continued
Cyber Coverage: $2,000,000 Annual Aggregate Limit of Liability for each Insured/Member for Information Security &
Privacy Liability. Policy includes at $25,000 deductible per claim.
Health Insurance
Beginning in January 2008, the District began providing health insurance through SDRMA covering all of its employees,
retirees, and other dependents. SDRMA is a pooled medical program, administered in conjunction with the California State
Association of Counties (CSAC).
Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that
exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage
from coverage in the prior year.
12) INTEREST EXPENSE
Interest expense for the years ended June 30, 2018 is as follows:
Amount Expensed $ 3,941,321
Amount Capitalized as a Cost of
Construction Projects 266,959
Total Interest $ 4,208,280
13) SEGMENT INFORMATION
The District has issued Water Revenue Bonds in previous fiscal years to finance certain capital improvements. While
water and wastewater services are accounted for jointly in these financial statements, the investors in the Water Revenue
Bonds rely solely on the revenues of the water services for repayment.
CNOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
CREQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2018
50
13) SEGMENT INFORMATION - Continued
Summary financial information for the water services is presented for June 30, 2018:
Condensed Statement of Net Position
June 30, 2018
Water Services
ASSETS
Cash and Investments $ 83,936,096
Accounts Receivable 11,937,362
Other Current Asset 2,346,388
Capital Assets 425,858,728
Total Assets 524,078,574
DEFERRED OUTFLOWS OF RESOURCES
Deferred Actuarial Pension Costs 9,760,597
Deferred Actuarial OPEB Costs 2,098,510
Total Deferred Outflows of Resources 11,859,107
LIABILITIES
Accounts Payable 14,537,105
Other Miscellaneous Liabilities 4,345,073
Other Current Liabilities 9,038,907
General Obligation Bonds 2,823,143
Certificates of Participation 6,893,293
Net OPEB Liability 4,489,099
Revenue Bonds 81,465,550
Net Pension Liability 47,296,682
Other Non-current Liabilities 3,117,705
Total Liabilities 174,006,557
DEFERRED INFLOWS OF RESOURCES
Deferred Actuarial Pension Costs 916,299
Deferred Actuarial OPEB Costs 514,095
Total Deferred Inflows of Resources 1,430,394
NET POSITION
Net Investment in Capital Assets 330,636,742
Restricted for Debt Service 4,247,025
Unrestricted 25,616,963
Total Net Position $ 360,500,730
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
51
13) SEGMENT INFORMATION - Continued
Condensed Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2018
Water Services
Operating Revenues
Water Sales $ 92,595,195
Connection and Other Fees 2,009,084
Total Operating Revenues 94,604,279
Operating Expenses
Cost of Water Sales 62,321,213
Administrative and General 23,448,297
Depreciation 16,459,587
Total Operating Expenses 102,229,097
Operating Income (Loss) (7,624,818)
Non-operating Revenues (Expenses)
Investment Earnings 656,472
Taxes and Assessments 4,480,930
Availability Charges 646,323
Gain (Loss) on Sale of Capital Assets (1,527,679)
Rents and Leases 1,439,247
Miscellaneous Revenues 2,255,605
Donations (123,050)
Interest Expense (3,941,321)
Miscellaneous Expenses (893,623)
Total Non-operating Revenues (Expenses) 2,992,904
Income (Loss) Before Capital Contributions (4,631,914)
Capital Contributions 9,469,083
Change in Net Position 4,837,169
Total Net Position, Beginning , As Previously Reported 372,812,297
Prior Period Adjustment (17,148,736)
Total Net Position, Beginning, As Restated 355,663,561
Total Net Position, Ending $ 360,500,730
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
52
13) SEGMENT INFORMATION - Continued
Condensed Statement of Cash Flows
For the Year Ended June 30, 2018
Water Services
Net Cash Provided/(Used) by:
Operating Activities $ 14,471,842
Non-capital and Related Financing Activities 5,811,199
Capital and Related Financing Activities (16,598,410)
Investing Activities 3,065,764
Net Increase (Decrease) in Cash and Cash Equivalents 6,750,395
Cash and Cash Equivalents, Beginning 17,478,079
Cash and Cash Equivalents, Ending $ 24,228,474
14) PRIOR PERIOD ADJUSTMENT
The prior period adjustment of $17,816,075 relates to the implementation of GASB Statement 75 for postemployment
benefits other than pensions. According to GASB Statement 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, which was implemented by the District in the 2018 fiscal year,
recognizing liabilities, deferred outflows of resources, deferred inflows of resources, and expenses related to OPEB plan.
15) SUBSEQUENT EVENTS
On July 11, 2018, the Board of Directors approved the transfer of $31.8 million to CalPERS to reduce the District’s
unfunded pension liability.
On September 5, 2018, the Board of Directors approved the issuance of $29,000,000 of 2018 Series A Water Revenue
Bonds. As of the date this report has been issued, the 2018 Series A Water Revenue Bonds have not been finalized, and
interest rates and repayment schedules are not yet available and have not been approved.
On October 3, 2018, the Board of Directors approved the bond authorization be increased to an amount not to exceed
$36,000,000 and that the additional proceeds be used to refinance the $6,900,000 outstanding 1996 Variable Rate
COPS.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
53
Schedule of Changes in the Net OPEB Liability and Related Ratios for
Measurement Periods Ended June 30,
Measurement Period 2017
Total OPEB Liability
Service Cost $ 687,528
Interest on the Total OPEB Liability 1,764,343
Actual and Expected Experience Difference -
Changes in Assumptions -
Changes in Benefit Terms -
Benefit Payments (1,039,420)
Net Change in Total OPEB Liability 1,412,451
Total OPEB Liability - Beginning 25,037,076
Total OPEB Liability - Ending (a) $ 26,449,527
Plan Fiduciary Net Position
Contribution - Employer $ 2,284,420
Net Investment Income 2,011,985
Benefit Payments (1,039,420)
Administrative Expense (10,167)
Net Change in Plan Fiduciary Net Position 3,246,818
Plan Fiduciary Net Position - Beginning 18,492,217
Plan Fiduciary Net Position - Ending (b) $ 21,739,035
Net OPEB Liability - Ending (a)-(b) $ 4,710,492
Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 82.2%
Covered-employee Payroll 12,513,000
Net OPEB Liability as a Percentage of Covered-employee Payroll 37.6%
Notes to Schedule:
Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information
will be displayed up to 10 years as information becomes available.
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2018
54
Schedule of Contributions
Last Ten Fiscal Years’
Fiscal Year Ended June 30, 2018
Actuarially Determined Contribution (ADC) $ 1,116,418
Contributions in Relation to the ADC (2,202,004)
Contribution Deficiency (Excess) $ (1,085,586)
Covered-Employee Payroll 12,168,663
Contributions as a percentage of covered-employee payroll 18.10%
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2018 were from the
June 30, 2017 actuarial valuation.
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level percent of payroll over a closed rolling 15-year period
Asset Valuation Method Market value
Inflation 2.75%
Payroll Growth 3.00% plus merit
Investment Rate of Return 7.00% per annum
Healthcare Cost-trend Rates 6.00% HMO/6.5% PPO decreasing to 5.00% HMO/5.00% PPO
Retirement Age Tier 1 employees - 2.7% at 55 and Tier 2 employees - 2.0% at 62.
The probabilities of Retirement are based on the 2014 CalPERS Experience
Study for the period from 1997 to 2011.
Mortality Pre-retirement mortality probability based on 2014 CalPERS 1997-2011
Experience Study covering CalPERS participants. Post-retirement mortality
probability based on CalPERS Experience Study 2007-2011 covering
participants in CalPERS.
Historical information is required only for measurement periods for which GASB 75 is applicable.
Future years’ information will be displayed up to 10 years as information become available.
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2018
55
Schedule of Changes in the Net Pension Liability and Related Ratios
Last 10 Years1
Measurement Period2 2016-2017 2015-2016 2014-2015 2013-2014
TOTAL PENSION LIABILITY
Service Cost $ 2,556,902 $ 2,298,617 $ 2,250,860 $ 2,330,709
Interest 8,836,284 8,575,275 8,229,312 7,907,915
Changes of Benefit Terms - - - -
Changes of Assumptions 7,308,486 - (1,996,819) -
Difference Between Expected and Actual Experience (1,208,593) (613,440) (981,200) -
Benefit Payments, Including Refunds of Employee
Contributions
(5,779,040)
(5,448,218)
(5,288,251)
(4,885,406)
Net Change in Total Pension Liability 11,714,039 4,812,234 2,213,902 5,353,218
Total Pension Liability - Beginning 119,095,572 114,283,338 112,069,436 106,716,218
Total Pension Liability - Ending (a) $ 130,809,611 $ 119,095,572 $ 114,283,338 $ 112,069,436
PLAN FIDUCIARY NET POSITION
Contributions - Employer $ 4,105,810 $ 3,819,770 $ 3,557,098 $ 3,137,174
Contributions - Employee 1,014,329 1,010,337 1,007,023 1,074,954
Net Investment Income 8,149,097 369,214 1,601,760 10,874,999
Benefit Payments, Including Refunds of Employee
Contributions
(5,779,040
(5,448,218)
(5,288,251)
(4,885,406)
Administrative Expense (109,029) (45,185) (83,511) -
Other Changes in Fiduciary Net Position - - - -
Net Change in Fiduciary Net Position 7,381,167 (294,082) 794,119 10,201,721
Plan Fiduciary Net Position - Beginning 73,846,128 74,140,210 73,346,091 63,144,370
Plan Fiduciary Net Position - Ending (b) $ 81,227,295 $ 73,846,128 $ 74,140,210 $ 73,346,091
Plan Net Pension Liability/(Asset) - Ending (a) - (b) $ 49,582,316 $ 45,249,444 $ 40,143,128 $ 38,723,345
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
62.10%
62.01%
64.87%
65.45%
Covered Payroll $ 12,829,415 $ 12,767,963 $ 12,451,513 $ 12,276,578
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll
386.47%
354.40%
322.40%
315.42%
1 Measurement period 2016-17 (fiscal year 2017-2018) was the fourth year of implementation; therefore, only four years are shown.
2 Historical information is required only for measurement periods for which GASB 68 is applicable
Notes to Schedule:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which
occurred after June 30, 2016. This applies for voluntary benefit changes as well as any offers of Two Years Additional
Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: For the 2018 fiscal year, the accounting discount rate reduced from 7.65% to 7.15%. For the
2017 fiscal year, there were no changes. For the 2016 fiscal year, amounts reported reflect an adjustment the discount rate
of 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014,
amounts reported were based on the 7.5% discount rate.
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2018
56
E 30, 2017 and 2016
Schedule of Plan Contributions1
Fiscal Year
2017-18
Fiscal Year
2016-17
Fiscal Year
2015-16
Fiscal Year
2014-15
Actuarially Determined Contribution2 $ 4,452,147 $ 4,105,810 $ 3,819,770 $ 3,557,098
Contributions in Relation to the Actuarially Determined
Contribution2
(4,452,147)
(4,105,810)
(3,819,770)
(3,557,098)
Contribution Deficiency (Excess) $ - $ - $ - $ -
Covered Payroll3 $ 12,759,085 $ 12,829,415 $ 12,767,963 $ 12,451,513
Contributions as a Percentage of Covered Payroll3 34.89% 32.00% 29.92% 28.57%
1 Historical information is required only for measurement periods for which GASB 68 is applicable.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers
may choose to make additional contributions toward their unfunded liability. Employer contributions for such plans exceed the
actuarially determined contributions.
3 Includes one year’s payroll growth using 3.00% payroll assumption.
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2016-17 were from
the June 30, 2014 public agency valuations.
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details see June 30, 2014 Funding Valuation Report
Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2014 Funding Valuation
Report
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Payroll Growth 3.00%
Investment Rate of Return 7.50% Net of Pension Plan Investment and Administrative Expenses; includes
Inflation
Retirement Age
The probabilities of Retirement are based on the 2010 CalPERS Experience
Study for the period from 1997 to 2007
Mortality
The probabilities of mortality are based on the 2010 CalPERS Experience
Study for the period from 1997 to 2007. Pre-retirement and Post-retirement
mortality rates include 5 years of projected mortality improvement using Scale
AA published by the Society of Actuaries.
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2018
Independent Auditors’ Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Board of Directors
Otay Water District
Spring Valley, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States, the financial statements of the business-type activities of the
Otay Water District (the “District”), as of and for the year ended June 30, 2018, and the related notes to the
financial statements, which collectively comprise the District’s basic financial statements, and have issued
our report thereon dated October 25, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the District’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material weaknesses
or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in
internal control that we consider to be material weaknesses. However, material weaknesses may exist that
have not been identified.
Richard A. Teaman, CPA David M. Ramirez, CPA Javier H. Carrillo, CPA Bryan P. Daugherty, CPA Joshua J. Calhoun, CPA
4201 Brockton Avenue Suite 100 Riverside CA 92501 951.274.9500 TEL 951.274.7828 FAX www.trscpas.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control
or on compliance. This report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the District’s internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
Riverside, California
October 25, 2018
October 25, 2018
Board of Directors
Otay Water District
Spring Valley, CA
We have audited the financial statements of the business-type activities of the Otay Water District (the “District”)
for the year ended June 30, 2018. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards, as well as certain information related to the
planned scope and timing of our audit. We have communicated such information in our letter to you dated May
7, 2018. Professional standards also require that we communicate to you the following information related to
our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the District are described in Note 1 to the financial statements. As described in Note
1 to the financial statements, the District changed accounting policies related to Statement of Governmental
Accounting Standards (GASB Statement) No. 75, Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions, in the 2018 fiscal year. Accordingly, the cumulative effect of the accounting
changes as of the beginning of the year are reported in the financial statements. We noted no transactions
entered into by the District during the year for which there is a lack of authoritative guidance or consensus. All
significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management’s knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the business-type activities’ financial statements were:
Management’s estimate of the fair value of investments is based on information provided by financial
institutions. We evaluated the key factors and assumptions used to develop the fair value of investments
in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of capital assets depreciation is based on historical estimates of each capitalized
item’s useful life. We evaluated the key factors and assumptions used to develop the capital assets
depreciation in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of net other postemployment benefits (OPEB) liability is based on an actuarial
valuation. We evaluated the key factors and assumptions used to develop the net OPEB liability in
determining that it is reasonable in relation to the financial statements taken as a whole.
Richard A. Teaman, CPA David M. Ramirez, CPA Javier H. Carrillo, CPA Bryan P. Daugherty, CPA Joshua J. Calhoun, CPA
4201 Brockton Avenue Suite 100 Riverside CA 92501 951.274.9500 TEL 951.274.7828 FAX www.trscpas.com
Management’s estimation of defined benefit pension obligation is based on an actuarial valuation.
We evaluated the key factors and assumptions used to develop the defined benefit pension obligation
in determining that it is reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement
users. The most sensitive disclosures affecting the financial statements were:
The disclosure of the fair value of investments in Notes 2 and 3 to the financial statements represents
amounts susceptible to market fluctuation.
The disclosure of capital assets in Note 4 to the financial statements is based on historical information
which could differ from actual useful lives of each capitalized item.
The disclosure of other postemployment benefits and the net OPEB liability in Note 8 to the financial
statements represents management’s estimate based on an actuarial valuation. Actual results could differ
depending on these key factors and assumptions used for the actuarial valuation.
The disclosure of defined benefit pension plan in Note 7 to the financial statements represents
management’s estimate based on an actuarial valuation. Actual results could differ depending on
these key factors and assumptions used for the actuarial valuation.
The financial statement disclosures are neutral, consistent and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other
than those that are trivial, and communicate them to the appropriate level of management. None of the
misstatements detected as of a result of audit procedures were material, either individually or in the aggregate, to the
financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s
report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated October 25, 2018.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting
principle to the District’s financial statements or a determination of the type of auditor’s opinion that may be
expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards,
with management each year prior to retention as the District’s auditors. However, these discussions occurred in the
normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the management and discussion and analysis, Schedule of Changes in the
Net OPEB Liability and Related Ratios, Schedule of Contributions, Schedule of Changes in the Net Pension
Liability and Related Ratios, and Schedule of Plan Contributions, which are required supplementary information
(RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management
regarding the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any
assurance on the RSI.
We were not engaged to report on the introductory and statistical sections, which accompany the financial
statements but are not RSI. We did not audit or perform other procedures on this other information and we do not
express an opinion or provide any assurance on it.
As part of the audit, we assisted with the preparation of the financial statements and related notes and state
controllers report preparation. However, these services, does not constitute an audit under Government Auditing
Standards and are considered nonaudit services. Management has reviewed, approved, and accepted responsibility
for the results of these services.
Restriction on Use
This information is intended solely for the use of the Board of Directors and management of the District and is not
intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
INDEPENDENT ACCOUNTANTS’ REPORT
ON APPLYING AGREED-UPON PROCEDURES
Mr. Joseph Beachem
Chief Financial Officer
Otay Water District
Spring Valley, CA
We have performed the procedures enumerated below, which were agreed to by the Otay Water District (the
“District”), solely to assist the District’s senior management in evaluating the investments of the District as of and
for the fiscal year ended June 30, 2018. The District’s management is responsible for evaluating the investments
of the District. This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is
solely the responsibility of those parties specified in the report. Consequently, we make no representation
regarding the sufficiency of the procedures described below either for the purpose for which this report has been
requested or for any other purpose.
Our procedures and findings are as follows:
1. Obtain a copy of the District’s investment policy and determine that it is in effect for the fiscal year
ended June 30, 2018.
Finding: At June 30, 2018, the current investment policy (Policy #27) is dated May 3, 2017.
This policy was reviewed and approved at May 3, 2017 and was last amended on May
3, 2017 at the regular board meeting. Prior to this the policy was last amended on May
4, 2016. Therefore the investment policy is in effect for the time period under review.
2. Select 4 investments held at year end and determine if they are allowable investments under the
District’s Investment Policy.
Finding: We selected the following investments: FHLM - Maturity 7/27/2018, FHLM - Maturity
10/03/2019, FFCB - Maturity 4/26/2019, and FNMA - Maturity 2/28/2020. All four
investments are allowable and within maturity limits as stated in the District’s
investment policy at June 30, 2018.
3. For the four investments selected in #2 above, determine if they are held by a third party custodian
designated by the District.
Finding: The four investments examined are held by a third party custodian, Union Bank of
California, designated by the District in compliance with the District’s investment
policy. Per discussion with the District’s management and evidenced by Union Bank of
California’s statement, Union Bank does not act as a broker dealer for the District but
acts as a custodial agent of the District holding the investments in a trust capacity.
Richard A. Teaman, CPA David M. Ramirez, CPA Javier H. Carrillo, CPA Bryan P. Daugherty, CPA Joshua J. Calhoun, CPA
4201 Brockton Avenue Suite 100 Riverside CA 92501 951.274.9500 TEL 951.274.7828 FAX www.trscpas.com
2
4. Confirm the par or original investment amount and market value for the four investments selected
above with the custodian or issuer of the investments.
Finding: No exceptions were noted as a result of our procedures.
5. Select two investment earnings transactions that took place during the year and recompute the earnings
to determine if the proper amount was received.
Finding: Selected the following investment earnings transactions: interest earned on FANM
Bond on November 20, 2017 and interest earned on FHLM Bond on January 8, 2018.
No exceptions were noted as a result of our procedures.
6. Trace amounts received for transactions selected at #5 above into the District’s bank accounts.
Finding: No exceptions were noted as a result of our procedures.
7. Select five investment transactions (buy, sell, trade or maturity) occurring during the year under review
and determine that the transactions are permissible under the District’s investment policy.
Finding: We selected the following investment transactions: FHLB Bond matured on March 23,
2018, FHLB Bond purchased on January 29, 2018, FHLM Note matured on September
29, 2017, FHLM Note purchased on December 28, 2017, and FHLMC Note purchased
on April 19, 2018. Those transactions were permissible under the District’s investment
policy. No exceptions were noted as a result of our procedures.
8. Review the supporting documents for the five investments selected at #7 above to determine if the
transactions were appropriately recorded into the District’s general ledger.
Finding: No exceptions were noted as a result of our procedures.
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by
the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an audit or
review, the objective of which would be the expression of an opinion or conclusion, respectively, on the
investments of the District for the fiscal year ending June 30, 2018. Accordingly, we do not express such an
opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention
that would have been reported to you.
This report is intended solely for the information and use of the Board of Directors and senior management of the
Otay Water District and is not intended to be and should not be used by anyone other than these specified parties.
Riverside, California
October 25, 2018
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: November 7, 2018
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: To Obtain Approval for the Issuance of FY 2019 Audit Services
Request for Proposal
GENERAL MANAGER’S RECOMMENDATION:
That the Finance and Administration Committee (F&A Committee) approve
the issuance of a Request for Proposal (RFP) for audit services for
Fiscal Year 2019. The audit services will be for one year, with four
(4) one-year options, with each option year subject to Board review
and approval.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To inform the F&A Committee of the expiration of the current 5-year
audit services contract and to obtain approval to issue an RFP for
audit services for Fiscal Year 2019.
ANALYSIS:
The District is required to retain the services of an independent
auditing firm each fiscal year to perform an audit of the District’s
financial statements.
2
The District’s practice is to retain auditors for a five-year period.
This practice is a long standing recommendation of the Governmental
Finance Officers Association (GFOA) Audit Procurement Best Practice
Guide.
“Governmental entities should enter into multi-year agreements of at
least five years in duration when obtaining the services of
independent auditors. Such agreements allow for greater continuity
and help to minimize the potential for disruption in connection with
the independent audit. Multi-year agreements can also help to reduce
audit costs by allowing auditors to recover certain "startup" costs
over several years, rather than over a single year.”
The District’s current auditors, Teaman, Ramirez & Smith, Inc., have
worked under contract from FY 2014 to FY 2018, and have reached the
end of the 5-year term. It is time to issue a Request for Proposal
and hire a new audit firm.
Staff has identified qualified audit firms with expertise and
experience with auditing water agencies. These firms will be invited
to submit proposals. Staff will then rank the proposals and invite
the top three firms to interview with the Committee. The Committee
will evaluate these firms and make a recommendation to the Board to
award the contract.
Time Line
The following is a tentative schedule for the activities involved in
issuing the RFP, selecting the auditor and completing the FY 2019
financial audit:
Oct-2018: Issue Request for Proposal
Nov-2018: Due date for RFP responses
Jan-2019: Audit Committee evaluates and recommends auditor
Feb-2019: Board selects auditor and awards contract
Apr-2019: Interim field work (5 days)
Aug-2019: Final field work (5 days)
Oct-2019: Finance Committee presentation of audited financials
Nov-2019: Board presentation of audited financials
Dec-2019: Completed CAFR
FISCAL IMPACT:
None.
3
STRATEGIC GOAL:
The District ensures its continued financial health through long-term
financial planning and debt planning.
LEGAL IMPACT:
Compliance with the laws governing the District.
Attachments:
A) Committee Action
B) Draft Request for Proposal
ATTACHMENT A
SUBJECT/PROJECT:
To Obtain Approval for the Issuance of FY2019 Audit
Services Request for Proposal
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on October 24, 2018 and the following comments were made:
Staff is requesting the Committee’s direction regarding the
acquisition of audit services for fiscal year (FY) 2019.
The District is required to have an audit of its financial
statements performed annually.
The District’s current 5-year audit services contract with
Teaman, Ramirez & Smith, Inc. expires this year. For the past 20
years, it has been the District’s practice to rotate its auditing
firm every five years.
The Finance and Administration Committee also serves as the
District’s Audit Committee whose purpose is to recommend an Audit
Firm to the full Board. Staff is seeking the Committee’s
direction and approval to issue a Request for Proposal (RFP) for
Audit Services for FY 2019 including 4 one-year options.
Staff reviewed the auditor selection process (please reference
page two of the staff report).
In past years, staff would identify qualified auditors and issue
an RFP to these firms. Staff would then evaluate and rank the
responses that meet the mandatory elements based on the criteria
found in Section VII, Page 19 of the RFP (please see attachment
to the staff report) which includes;
1. Expertise and Experience
2. Audit Approach
3. Pricing
Staff would then bring the top qualified firms to the Audit
Committee for evaluation. The Committee would select and
recommend an Auditor to the full Board for final selection and
contract award.
This year, staff is changing the process slightly and is bringing
the RFP and the list of qualified firms to the Committee in
advance in order to give the Committee an opportunity to provide
input before staff issues the RFP.
Staff presented a list of eight (8) qualified audit firms that
have been identified to submit a proposal based on the following
criteria:
- The audit firms have expertise with auditing local water
agencies and have audited or are the current auditors of
SDCWA member agencies. The firms have also audited other
local cities and special districts (i.e., MTS, San Diego,
County)
- They are members in good standing with the California
Society of Municipal Officers Association
- The firms serve the local region and have offices in San
Diego, Riverside or Orange Counties, we have one exception
whose office is located in San Bernardino County.
It was indicated that staff will evaluate the proposals and
select and rank the top three (3) responses. These proposals
will be presented to the Committee in January 2019 for the
Committee members to evaluate and make their recommendation at
the February board meeting of their top selection for audit
services.
During the discussion, the committee proposed two separate views:
- Extend the current auditing firm for one year with an option
for an additional year. The GFOA procurement best practices
for audit procurement indicates that Governmental entities
should enter into multi-year agreements of at least five
years in duration when obtaining the services of independent
auditors as it allows for continuity. It was felt that
because it is not a requirement to rotate your audit firm
every five years, the District has some matters that might
benefit from continuity (i.e., Salt Creek Golf Course
matter), and the pricing was very competitive this past
year, it may be less costly and easier for staff if the
current audit firm was extended for one year with an option
for another year for a total of two years.
- To continue the District’s current practice of rotating
auditing firms every five years and issue the RFP. The
quality of many firms is very good and while there is a
learning process, it is a very seamless process. There
would be continuity in knowledge if the District decided not
to rotate, however, that is just part of the process. These
firms are very experienced and it is what they do. It is a
good practice to rotate firms.
If the District renewed its contract with Teaman, Ramirez and &
Smith, Inc., the District can request that the partner in charge
be rotated to another partner of the firm to provide for a fresh
perspective on the audit.
Staff conducted a survey of the SDCWA member agencies and found
that auditor rotation is a common practice, with most agencies
rotating auditors every 5 years.
Staff estimated the cost savings between extending the current
contract with TRS versus cost proposals from issuing an RFP is
unpredictable. Historically, there is a wide-range between cost-
proposals. For example, during the 2014 Audit RFP, TRS bid 28%
less than the 2013 audit fees. TRS’s pricing is competitive and
we would expect a nominal increase of 1-2% if the Board extended
the current contract.
When the District transitions to a new auditor, there is always
an increased level of effort to ensure a smooth transition
between auditors. Staff will usually spend an additional week
assisting the new auditors with understanding the internal
controls, business processes, contracts, financial systems and
the chart of accounts.
Staff indicated that they were supportive of either option and
that the audit firm is a board decision. Staff is not advocating
for either position.
Upon completion of the discussion, the Committee proposed two options
to either extend the contract for one year with another one year
option or to issue a RFP to rotate the auditing firm as has been the
District’s practice for the past 20 years. The committee wished to
present the two options for the full board’s consideration and action.
1
Otay Water District
REQUEST FOR PROPOSAL
FOR
PROFESSIONAL AUDITING SERVICES
2554 Sweetwater Springs Boulevard
Spring Valley, California 91978-2004
Attachment B
2
Otay Water District
REQUEST FOR PROPOSAL
TABLE OF CONTENTS
I. INTRODUCTION
A. General Information
B. Term of Engagement
C. Subcontracting
II. NATURE OF SERVICES REQUIRED
A. Scope of Work to be Performed
B. Auditing Standards to be Followed
C. Reports to be Issued
D. Additional Services
E. Working Paper Retention and Access to Working
Papers
III. DESCRIPTION OF THE DISTRICT
A. Background Information
B. Magnitude of Finance Operations
C. Fund Structure
D. Budgetary Basis of Accounting
E. Pension Plans
F. Availability of Prior Reports and Working Papers
IV. TIME REQUIREMENTS
A. Proposal Calendar
B. Notification and Contract Dates
C. Dates for Availability of Financial Records and Workpapers
D. Proposed Schedule for the 2019 Fiscal Year Audit
E. Conferences
F. Dates Reports are Due
3
V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT
PREPARATION
A. Finance Department and Clerical Assistance
B. Statements and Schedules to be prepared by the Staff of the District
C. Work Area, Telephone, Photocopying and FAX Machines
D. Report Preparation
VI. PROPOSAL REQUIREMENTS
A. General Requirements
1. Inquiries
2. Submission of Proposals
B. Technical Proposal
1. General Requirements
2. Independence
3. License to Practice in California
4. Firm Qualifications and Experience
5. Partner, Supervisory and Staff Qualifications and Experience
6. Prior Engagements with the District
7. Similar Engagements with Other Government Entities
8. Specific Audit Approach
9. Identification of Anticipated Potential Audit Problems
C. Sealed Cost Submittal
1. Total All-Inclusive Maximum Price
2. Rates by Partner, Specialist, Supervisory and Staff
3. Out-of-pocket Expenses in the Total All-inclusive Maximum Price
and Reimbursement Rates
4. Rates for Additional Professional Services
5. Manner of Payment
VII. EVALUATION PROCEDURES
A. Review of Proposals
B. Evaluation Criteria
1. Mandatory Elements
2. Technical Qualifications
3. Price
B. Oral Presentations
C. Final Selection
D. Right to Reject Proposals
4
APPENDICES
A. Report Examples
1. 2017 Comprehensive Annual Financial Report (CAFR)
(Copy may be downloaded at www.otaywater.gov )
2. 2017 Finance Committee Reporting Package
a. Staff Report
b. Management Letter
c. Report on Internal Control Over Financial Reporting
d. Report on Applying Agreed-Upon Procedures
3. 2017 State Controller Report
B. List of Management and Key Personnel
C. Proposer Guarantees
D. Proposer Warranties
E. Format for Schedules of Professional Fees and Expenses to Support the Total All-
Inclusive Maximum Price
F. Formation of Contract
5
Otay Water District
REQUEST FOR PROPOSALS
I. INTRODUCTION
A. General Information
The Otay Water District is requesting proposals from qualified firms of Certified
Public Accountants to audit its financial statements for the fiscal year ending June
30, 2019, with the possible option of auditing its financial statements for each of
the four subsequent fiscal years. These audits are to be performed in accordance
with generally accepted auditing standards, the standards set forth for financial
audits in the General Accounting Office's (GAO) Government Auditing Standards
(1994 and revisions), the provisions of the federal Single Audit Act of 1984 (and
subsequent amendments), the California State Controller’s Minimum Audit
Requirements for California Special Districts, and U.S. Office of Management
and Budget (OMB) Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations.
There is no expressed or implied obligation for the Otay Water District to
reimburse responding firms for any expenses incurred in preparing proposals in
response to this request; these costs should not be included in the submittal.
To be considered, a copy of the firm’s proposal must be received by the District
no later than the submittal date and time. The Otay Water District reserves the
right to reject any or all proposals submitted.
Proposals submitted will be evaluated by a panel consisting of the District’s
management personnel. The panel will rank proposals based on the criteria
outlined in this RFP and submit their recommendations to the District’s Finance
and Administration Committee. The Committee will make a recommendation for
hire to the full Board of Directors, and final selection of the firm will be made by
the Board.
During the evaluation process, the Committee and the District reserve the right,
where it may serve the District’s best interest, to request additional information or
clarifications from Proposers, or to allow corrections of errors or omissions. At
the discretion of the District or the Committee, firms submitting proposals may be
requested to make oral presentations as part of the evaluation process.
6
The District reserves the right to retain all proposals submitted and to use any
ideas in a proposal regardless of whether that proposal is selected. Submission of
a proposal indicates acceptance by the firm of the conditions contained in this
request for proposals, unless clearly and specifically noted in the proposal
submitted, and confirmed in the contract between the District and the firm
selected. It is anticipated the selection of a firm will be completed by February 6,
2019. Following the notification of the selected firm, it is expected a standard
District contract will be executed between both parties within ten (10) working
days thereafter. A sample of the District’s Agreement for Consulting Services is
attached as Appendix H.
B. Term of Engagement
A one-year contract is anticipated, with the possibility of up to 4 one-year
extensions, subject to the annual review and recommendation of the Committee,
the satisfactory negotiation of terms (including a price acceptable to both the
District and the selected firm), and the concurrence of the Board.
C. Subcontracting
Subcontractors will not be allowed to perform any work identified within this
Request for Proposals, or any agreement attached to or derived from, without the
express prior written consent of the District.
II. NATURE OF SERVICES REQUIRED
A. Scope of Work to be Performed
The District desires the Auditor to express an opinion on the fair presentation of
its basic financial statements in conformity with generally accepted accounting
principles. The Auditor shall also be responsible for performing certain limited
procedures involving supplementary information required by the Governmental
Accounting Standards Board, as mandated by generally accepted auditing
standards. The Auditor is not required to audit the schedule of expenditures of
federal awards, if any. However, the Auditor is to provide an "in-relation-to"
report on that schedule based on the auditing procedures applied during the audit
of the financial statements, if necessary.
B. Auditing Standards to be Followed
To meet the requirements of this request for proposals, the audit shall be
performed in accordance with generally accepted auditing standards, the standards
set forth for financial audits in the General Accounting Office's. Government
7
Auditing Standards (1994 and revisions), the provisions of the federal Single
Audit Act of 1984 (and subsequent amendments), the California State Controller’s
Minimum Audit Requirements for California Special Districts, and U.S. Office
of Management and Budget Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations.
C. Reports to be Issued
1. Opinion: Following the completion of the audit of the fiscal year's
financial statements, the Auditor shall issue a report on the fair
presentation of the financial statements in conformity with generally
accepted accounting principles.
2. Management Letter: The Auditor shall communicate in a letter to the
General Manager any reportable conditions found during the audit. A
reportable condition shall be defined as a significant deficiency in the design
or operation of the internal control structure, which could adversely affect the
organization's ability to record, process, summarize, and report financial data
consistent with the assertions of management in the financial statements. In
addition, the following conditions shall be considered reportable:
Irregularities and Illegal Acts: Auditors shall be required to make an
immediate, written report of any irregularities and illegal acts of which they
become aware to the following parties:
Mark Watton, General Manager, Otay Water District
3. Audit Committee Letter: Auditors shall assure themselves that the
Finance Committee is informed of each of the following:
i. The Auditor's responsibility under generally accepted auditing
standards.
ii. Planned scope and timing of the audit.
iii. Significant audit findings.
Qualitative aspects of accounting practice.
Difficulties encountered in performing the audit.
Corrected and uncorrected misstatements.
Disagreements with management.
Management representations.
Management consultation with other accountants.
Other audit findings or issues.
8
4. Report on Internal Controls: The Auditor will issue a report on internal
controls related to the financial statements and compliance with laws,
regulations and the provisions of contracts or grant agreements,
noncompliance with which could have a material effect on the financial
statements in accordance with Government Auditing Standards.
5. Report on Applying Agreed-Upon Procedures: In accordance with the
District’s Investment Policy, the Auditor will issue a report on a review of
specific procedures that assure staff’s compliance with policies and
procedures for the investment of District funds.
D. Additional Services
1. The District is required to submit an Annual Report of Financial
Transactions to the State Controller, in accordance with California
Government Code Section 53891. It is anticipated that the Auditor will be
required to provide assistance to the District to meet the requirements of
that program. (Appendix E, Page 2).
2. The District may be subject to a single audit in accordance with the
provisions of the Single Audit Act of 1984 (as amended) and U.S. Office
of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. (Appendix E, Page 3). When
required the performance of any such audit shall be separately quoted and
contracted upon.
3. For the last 14 fiscal years, the District has prepared and sent its
Comprehensive Annual Financial Report (CAFR) to the Government
Finance Officers Association of the United States and Canada (GFOA) for
review in their Certificate of Achievement for Excellence in Financial
Reporting program. While the District takes responsibility for physically
preparing and publishing the CAFR, as well as completing the GFOA
checklist, it is anticipated that the Auditor will be required to provide
assistance to the District to meet the technical requirements of that
program as a part of the financial statement audit.
E. Working Paper Retention and Access to Working Papers
All working papers and reports must be retained, at the Auditor's expense, for a
minimum of three (3) years, unless the firm is notified in writing by the District of
the need to extend the retention period. In addition, the firm shall respond to the
reasonable inquiries of successor Auditors and allow successor Auditors to review
working papers relating to matters of continuing accounting significance.
9
III. DESCRIPTION OF THE DISTRICT
A. Background Information
The District was founded in 1956, has over 54,000 customers and serves a
population of approximately 225,000 people. The District’s fiscal year begins on
July 1, 2018 and ends on June 30, 2019.
The Auditor's principal contact with the District will be Eid Fakhouri, Finance
Manager, or a designated representative, who will coordinate the assistance to be
provided by the District to the Auditor.
The District has a total payroll and benefits of approximately $21 million,
covering 134 employees. The District structure includes four department heads
that report directly to the General Manager who oversees the following areas:
Finance, Engineering Services, Administrative Services, and Water Operations.
More detailed information on the District and its finances can be found in the
Code of Ordinances, Operating Budget and historical CAFRs. To obtain access to
these documents, contact the District directly, or access its website at
www.otaywater.gov.
B. Magnitude of Finance Operations
The Finance Department is managed by the Chief Financial Officer and accounts
for all aspects of Fixed Assets, General Ledger, Investments, Job Costing, Payroll,
and Inventory.
C. Fund Structure
The District operates as an enterprise fund for financial reporting purposes.
D. Budgetary Basis of Accounting
The District prepares budgets on a basis consistent with generally accepted
accounting principles.
E. Pension Plans
The District participates in the California Public Employees Retirement System
(CalPERS). The District made a substantial payment to CalPERS in FY 2019 to
reduce the overall unfunded liability. The District’s defined benefit post-
employment healthcare plan (DPHP) provides Other Post Employment Benefits
10
(OPEB) to eligible retirees and beneficiaries. The plan is administered by
CalPERS.
F. Availability of Prior Audit Reports and Working Papers
Interested Proposers who wish to review prior years' audit reports and
management letters should contact Diane Ander at (619) 670-2251. The District
will use its best efforts to make prior audit reports and supporting working papers
available to Proposers to aid their response to this request for proposals.
IV. TIME REQUIREMENTS
A. Notification to firms for Interview Selection Week of November 19, 2018
(At the District’s option)
Finance and Administration Committee Week of January 21, 2019
Interview, if required
Committee Recommendation Presented to Board February 6, 2019
B. Notification and Contract Dates:
Selected Firm Notified February 7, 2019
Contract Submitted February 18, 2019
C. Dates for Availability of Financial Records and Workpapers
The District will have all required financial records and audit schedules (as of
April 1, 2019), and all management and staff available to meet with the firm's
personnel, to begin Interim Work by April 29, 2019.
The District will have all fiscal year-end financial records and audit schedules
available to begin year-end fieldwork by August 26, 2019.
D. Proposed Schedule for the 2019 Fiscal Year Audit (A similar time schedule will
be developed for audits of future fiscal years if the District exercises its option for
additional audits).
Detailed Audit Plan: The Auditor shall provide District, in March - April 2019,
both a detailed audit plan and a list of all schedules to be prepared by the District.
11
Interim Work: The Auditor shall tentatively complete interim work by June 30,
2019.
Year-End Fieldwork:
The Auditor shall tentatively begin all fieldwork the week of August 26, 2019.
The Auditor shall tentatively complete all fieldwork the week of August 29, 2019.
E. Conferences: At a minimum, the following conferences should be held by the
dates indicated:
Entrance conference with Chief Financial Officer and all key Finance Department
personnel: March - April 2019. The purpose of this meeting will be to discuss
prior audit and the interim work to be performed. This meeting will also be used
to establish overall liaison for the audit and to make arrangements for work space
and other needs of the Auditor. The Auditor shall provide the District a list of all
schedules to be prepared by the District, (including confirmations), as well as the
dates by which the schedules are required. This listing should include any District
staff requirements of the Auditor.
Exit interview with Chief Financial Officer and all key Finance Department
personnel: August - September 2019. The purpose of this meeting will be to
summarize the results of the fieldwork and to review significant findings.
F. Dates Reports are Due
1. The Auditor shall prepare and deliver to the Chief Financial Officer the
draft financial statements, notes, and all additional management letters and
reports, by September 5, 2019.
2. The Chief Financial Officer and key finance personnel will complete their
review of the draft report as expeditiously as possible. During this period,
the Auditor should be available for any meetings that may be necessary to
discuss the audit reports.
3. Once all issues for discussion of the draft financial statements are
resolved, the final signed report shall be delivered to Joseph R. Beachem.
It is anticipated that this process will be completed and the final report
delivered by October 4, 2019.
12
4. The final audit report and signed copies of all additional letters/reports
should be delivered to the Joseph R. Beachem, Chief Financial Officer, at
2554 Sweetwater Springs Boulevard, Spring Valley, CA 91978-2004.
5. Presentation of Audit Report to the Committee – Week of October 21,
2019.
6. Presentation of the Audit Report to the Board – November 6, 2019.
V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT
PREPARATION
A. Finance Department and Clerical Assistance
The Finance Department staff and responsible management personnel will be
available during the audit to assist the firm by providing information,
documentation and explanations. The preparation of confirmations will be the
responsibility of the Finance Department.
B. Statements and Schedules to be prepared by the Staff of the District
The staff of the District will prepare the audit schedules for all balance sheet
accounts and selected income statement accounts.
C. Work Area, Telephones, and Photocopying
The District will provide the Auditor with reasonable work space, desks and
chairs. The Auditor will also be provided with access to telephone lines, and
photocopying facilities, subject to reasonable use.
D. Report Preparation
Final audit report and State Controller report preparation shall be the
responsibility of the Auditor. CAFR preparation, editing and printing shall be the
responsibility of the District, with technical assistance provided by the Auditor.
VI. PROPOSAL REQUIREMENTS
A. General Requirements
1. Inquiries concerning the request for proposals must be made to:
13
Otay Water District
Procurement Division
2554 Sweetwater Springs Boulevard
Spring Valley, California 91978-2004
619-670-2259
2. Submission of Proposals
The following material is required to be received by the solicitation End
Date, for a proposing firm to be considered:
a. A Master Copy (so marked) of a Technical Proposal and two (2)
copies to include the following:
i. Title Page
Title page showing the request for proposals subject; the
firm's name; the name, address and telephone number of
the contact person; and the date of the proposal.
ii. Table of Contents
iii. Transmittal Letter
A signed letter of transmittal briefly stating the Proposer's
understanding of the work to be done, the commitment to
perform the work within the time period, a statement why
the firm believes itself to be best qualified to perform the
engagement, and a statement that the proposal is a firm and
irrevocable offer until March 5, 2019 (120-days).
iv. Detailed Proposal
The detailed proposal should follow the order set forth in
Section VI, B. of this request for proposals.
v. Executed copies of Proposer Guarantees and Proposer
Warranties, attached to this request for proposal (Appendix
C and Appendix D).
b. The Proposer shall submit an original and two (2) copies of a Cost
Submittal in a separate sealed envelope marked as follows:
14
SEALED COST SUBMITTAL TO
Otay Water District
FOR PROFESSIONAL AUDITING SERVICES
June 30, 2019
c. Proposers should send the completed proposal consisting of the
two separate envelopes to the following address:
Otay Water District
Procurement Division
2554 Sweetwater Springs Boulevard
Spring Valley, California 91978-2004
B. Technical Proposal
1. General Requirements
The purpose of the Technical Proposal is to demonstrate the qualifications,
competency and capacity of the firms seeking to undertake an independent
audit of the District in conformity with the requirements of this request for
proposals. As such, the substance of proposals will carry more weight
than their form or manner of presentation. The Technical Proposal should
demonstrate the qualifications of the firm and of the particular staff to be
assigned to this engagement. It should also specify an audit approach that
will meet the request for proposals requirements. THERE SHOULD BE
NO DOLLAR UNITS OR COST SUBMITTAL INCLUDED IN THE
TECHNICAL PROPOSAL DOCUMENT.
The Technical Proposal should address all the points outlined in the
request for proposals (excluding any cost information which should only
be included in the sealed dollar cost submittal). The Proposal should be
prepared simply and economically, providing a straightforward, concise
description of the Proposer's capabilities to satisfy the requirements of the
request for proposals. While additional data may be presented, the
following subjects, Items Nos. 2 through 8, section B – Technical
Proposal, must be included. They represent the criteria against which the
proposal will be evaluated.
2. Independence
The firm should provide an affirmative statement that is independent of
the District, as defined by generally accepted auditing standards/the U.S.
General Accounting Office's Government Auditing Standards (1994)
15
The firm should also list and describe the firm's professional relationships,
if any, involving the District for the past five (5) years, together with a
statement explaining why such relationships do not constitute a conflict of
interest relative to performing the proposed audit. In addition, the firm
shall give the District written notice of any professional relationships
entered into during the period of this agreement.
3. License to Practice in California
An affirmative statement should be included that the firm and all assigned
key professional staff are properly licensed to practice in California.
4. Firm Qualifications and Experience
The Proposer should state the size of the firm, the size of the firm's
governmental audit staff, the location of the office from which the work on
this engagement is to be performed, and the number and nature of the
professional staff to be employed in this engagement on a full-time basis
and the number and nature of the staff to be so employed on a part-time
basis.
If the Proposer is a joint venture or consortium, the qualifications of each
firm comprising the joint venture or consortium should be separately
identified and the firm that is to serve as the principal Auditor should be
noted, if applicable.
The firm is also required to submit a copy of the report on its most recent
external quality control review, with a statement whether that quality
control review included a review of specific government engagements.
The firm shall also provide information on the results of any federal or
state desk reviews or field reviews of its audits during the past three (3)
years. In addition, the firm shall provide information on the circumstances
and status of any disciplinary action taken or pending against the firm
during the past three (3) years with state regulatory bodies or professional
organizations.
5. Partner, Supervisory and Staff Qualifications and Experience
The firms shall identify the principal supervisory and management staff,
including partners, managers, and other supervisors and specialists, who
would be assigned to the engagement. Indicate whether each such person
is registered or licensed to practice as a Certified Public Accountant in
16
California. Provide detailed information on the government auditing
experience of each person, relevant continuing professional education for
the past three (3) years, and membership in professional organizations
relevant to the performance of this audit.
Engagement partners, managers, other supervisory staff and specialists
may be changed if those personnel leave the firm, are promoted or are
assigned to another office, provided that replacements have substantially
the same or better qualifications or experience. Consultants and firm
specialists mentioned in response to this request for proposal can only be
changed with the express prior written permission of the District, which
retains the right to approve or reject replacements.
6. Similar Engagements with Other Government Entities
For the firm's office that will be assigned responsibility for the audit, list
the most significant engagements (maximum - 5) performed in the last five
(5) years that are similar to the engagement described in this request for
proposal. These engagements should be ranked on the basis of total staff
hours. Indicate the scope of work, date, engagement partners, total hours,
and the name and telephone number of the principal client contact.
7. Specific Audit Approach
The proposal should set forth a work plan, including an explanation of the
audit methodology to be followed, to perform the services required in
Section II of this request for proposal.
Proposers will be required to provide the following information on their
audit approach:
a. Proposed segmentation of the engagement.
b. Level of staff and number of hours to be assigned to each proposed
segment of the engagement. NO DOLLARS OR COST
SUBMITTAL SHOULD BE INCLUDED IN THE TECHNICAL
PROPOSAL
c. Sample size and the extent to which statistical sampling is to be
used in the engagement.
d. Type and extent of analytical procedures to be used in the
engagement.
17
e. Approach to be taken to gain and document an understanding of
the District’s internal control structure.
f. Approach to be taken in determining laws and regulations that will
be subject to audit test work.
g. Approach to be taken in drawing audit samples for purposes of
tests of compliance.
8. Identification of Anticipated Potential Audit Problems
The proposal should identify and describe any anticipated potential audit
problems, the firm's approach to resolving these problems, and any special
assistance that will be requested from the District.
C. Sealed Cost Submittal
1. Total All-Inclusive Maximum Price
The sealed cost submittal should contain all pricing information relative to
performing the audit engagement as described in this request for proposal
for the general purpose financial statements, & Agreed Upon Procedures
CAFR. The total all-inclusive maximum price submitted is to contain all
direct and indirect costs including all out-of-pocket expenses.
Identify the portion of the Total All-inclusive Maximum Price that is for
the Agreed Upon Procedures from Section I.C.5 above regarding the
Districts Investments.
The District will not be responsible for expenses incurred in preparing and
submitting the technical proposal or the sealed cost submittal. Such costs
should not be included in the proposal.
The first page of the sealed cost submittal should include the following
information:
a. Name of Firm.
b. Certification that the person signing the proposal is entitled to
represent the firm, empowered to submit the bid, and authorized to
sign a contract with the District.
c. A Total All-Inclusive Maximum Price for the 2019 engagement
and the portion for the Agreed Upon Procedures.
18
2. Rates by Partner, Specialist, Supervisory and Staff
The second page of the sealed cost submittal should include a schedule of
professional fees and expenses, presented in the format provided in the
attachment (Appendix E) that supports the total all-inclusive maximum
price. The cost of additional services described in Section II. E. of this
request for proposal should be disclosed as separate components of the
total all-inclusive maximum price.
3. Out-of-pocket Expenses Included in the Total All-inclusive Maximum
Price and Reimbursement Rates
Out-of-pocket expenses for firm personnel (e.g., travel, lodging and
subsistence) will be reimbursed at the rates used by the District for its
employees. All estimated out-of-pocket expenses to be reimbursed should
be presented on the sealed cost submittal in the format provided in the
attachment (Appendix E). All expense reimbursements will be charged
against the total all-inclusive maximum price submitted by the firm. In
addition, a statement must be included in the sealed cost submittal stating
the firm will accept reimbursement for travel, lodging and subsistence at
the prevailing District rates for its employees.
4. Rates for Additional Professional Services
The District requires the firms to submit separate cost component for the
General Purpose Financial Statements. Agreed Upon Procedures & CAFR
(Appendix E, Page 1), and State Controller’s Report (Appendix E, Page
2).
If it should become necessary for the District to request the Auditor to
render any additional services to either supplement the services requested
in this RFP or to perform additional work as a result of the specific
recommendations included in any report issued on this engagement, then
such additional work shall be performed only if set forth in an addendum
to the contract between the District and the firm. Any such additional
work agreed to between the District and the firm shall be performed at the
same rates set forth in the schedule of fees and expenses included in the
sealed cost submittal.
5. Manner of Payment
Progress payments will be made on the basis of hours of work completed
during the course of the engagement and out-of-pocket expenses incurred
19
in accordance with the firm's cost submittal. Interim billing shall cover a
period of not less than a calendar month. The total payments shall not
exceed the total all-inclusive cost.
VII. EVALUATION PROCEDURES
A. Review of Proposals
Proposals submitted will be evaluated using the information provided to satisfy
the requirements as previously listed. Firms meeting the mandatory elements will
have their submittals ranked based on the evaluation criteria below. The top 3
ranking firms will be evaluated by the District’s Finance and Administration
Committee and may be invited to an interview. The Committee will then make
the final recommendation to the District’s Board of Directors for final selection.
The District reserves the right to retain all proposals submitted and use any idea in
a proposal regardless of whether that proposal is selected.
B. Evaluation Criteria
Proposals will be evaluated using three sets of criteria. Firms meeting the
mandatory criteria will have their proposals evaluated and scored for both
technical qualifications and price. The following represent the principal selection
criteria which will be considered during the evaluation process.
1. Mandatory Elements
a. The audit firm is independent and licensed to practice in
California.
b. The firm has no conflict of interest with regard to any other work
performed by the firm for the District.
c. The firm adheres to the instructions in this request for proposal on
preparing and submitting the proposal.
d. The firm submits a copy of its last external quality control review
report and the firm has a record of quality audit work.
2. Technical Qualifications:
a. Expertise and Experience
i. The firm's past experience and performance on comparable
government engagements.
20
ii. The quality of the firm's professional personnel to be
assigned to the engagement and the quality of the firm's
management support personnel available for consultation.
iii. The firm’s experience with the preparation of awarded
Comprehensive Annual Financial Reports (CAFRs).
b. Audit Approach
i. Adequacy of proposed staffing plan for various segments of
the engagement.
ii. Adequacy of sampling techniques.
iii. Adequacy of analytical procedures.
3. Price:
COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION
OF AN AUDIT FIRM
D. Oral Presentations
During the evaluation process the District may request, at its discretion, any or all
firms to make oral presentations. Such presentations will provide firms with an
opportunity to answer any questions regarding the firm's proposal. Not all firms
may be asked to make such oral presentations.
E. Final Selection
It is anticipated that a firm will be selected by February 6, 2019, by the Board.
Following notification of the firm selected, it is expected a contract will be
executed between both parties by February 18, 2019.
F. Right to Reject Proposals
Submission of a proposal indicates acceptance by the firm of the conditions
contained in this request for proposal unless clearly and specifically noted in the
proposal submitted and confirmed in the contract between the District and the
firm selected.
The District reserves the right, without prejudice, to reject any or all proposals, or
any part of a proposal, and to waive any informality in the proposal process. The
21
District reserves the right to reject any proposal or Proposer who previously failed
to perform adequately for the District or any other governmental agency. The
District expressly reserves the right to reject the proposal of a Proposer who is in
default on the payment of monies due the District.
22
APPENDIX A
REPORT EXAMPLES
1. 2017 Comprehensive Annual Financial Report (CAFR)
2. 2017 Finance Committee Reporting Package
a. Staff Report
b. Audited Financials
c. Management Letter
d. Audit Committee Letter
e. Report on Applying Agreed-Upon Procedures
3. State Controller’s Report
23
APPENDIX B
LIST OF MANAGEMENT AND KEY PERSONNEL
Name and Title Phone Number
Mark Watton, General Manager 619-670-2210
Joseph R. Beachem, Chief Financial Officer 619-670-2212
Kevin Koeppen, Asst. Chief Financial Officer 619-670-2250
Eid Fakhouri, Finance Manager 619-670-2259
24
APPENDIX C
PROPOSER GUARANTEES
I. The Proposer certifies it can and will provide and make available, as a minimum, all
services set forth in Section II, Nature of Services Required.
Signature of Official: _____________________________
Name (typed): __________________________________
Title: __________________________________________
Firm: __________________________________________
Date: ___________________________________________
25
APPENDIX D
PROPOSER WARRANTIES
A. Proposer warrants that it is willing and able to comply with State of California laws with
respect to foreign (non-state of California) corporations.
B. Proposer warrants that it is willing and able to provide proof of insurance covering the
following areas: 1) general liability; 2) worker’s compensation; 3) errors and omissions
providing a prudent amount of coverage for the willful or negligent acts, or omissions of
any officers, employees or agents thereof.
C. Proposer warrants that it will not delegate or subcontract its responsibilities under an
agreement without the prior written permission of the District.
D. Proposer warrants that all information provided by it in connection with this proposal is
true and accurate.
Signature of Official: _____________________________
Name (typed): __________________________________
Title: __________________________________________
Firm: __________________________________________
Date: ___________________________________________
26
APPENDIX E
Page 1
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE JUNE 30, 2019 FINANCIAL STATEMENTS
GENERAL PURPOSE FINANCIAL STATEMENTS, AGREED UPON PROCEDURES &
CAFR REVIEW
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners
Managers
Supervisory Staff
Staff
Other (specify):
Subtotal
Out-of-pocket expenses:
Meals and lodging
Transportation
Other (specify):
Total all-inclusive maximum price for 2019 audit __________
Portion for Agreed-Upon Procedures __________
Note: The rate quoted should not be presented as a general percentage of the standard hourly rate
or as a gross deduction from the total all-inclusive maximum price.
27
APPENDIX E
Page 2
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2019 FINANCIAL STATEMENTS:
SUPPORTING SCHEDULE FOR STATE CONTROLLER’S REPORT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners
Managers
Supervisory Staff
Staff
Other (specify)
Subtotal
Out-of-pocket expenses
Meals and lodging
Transportation
Other (specify)
Total price for State Controller’s Report
Note: The rate quoted should not be presented as a general percentage of the standard hourly rate
or as a gross deduction from the total all-inclusive maximum price.
28
APPENDIX E
Page 3
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
If required, FOR THE SINGLE AUDIT 2019 FINANCIAL STATEMENTS:
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners
Managers
Supervisory Staff
Staff
Other (specify)
Subtotal
Out-of-pocket expenses
Meals and lodging
Transportation
Other (specify)
Total price for Single Audit and Report
Note: The rate quoted should not be presented as a general percentage of the standard hourly rate
or as a gross deduction from the total all-inclusive maximum price.
29
APPENDIX F
FORMATION OF CONTRACT; ADDITIONAL CONTRACT PROVISIONS
1. This Request for Proposal (RFP), together with proposer’s signed offer (Proposal) and the
Otay Water District’s written acceptance thereof, including any contract provisions
approved by the parties pursuant to subsequent negotiations, if any, shall constitute a
binding contract (collective, the “Contract”). The Contract shall only be amended or
modified annually, upon approval by the District of an updated Appendix E or pursuant to
a written amendment signed by both parties.
2. Conflict of Interest
a. Auditor has received and reviewed a copy of the District's Conflict of Interest
Code (the "COI"), set forth under Division I, Chapter 5, Section 6 of the District's
Code of Ordinance. Auditor understands that, to the extent it (i) conducts
research and arrives at conclusions concerning advice, recommendations or
information independently from the District; and (ii) renders information, advice,
recommendations or counsel to the District, it may be required to file a disclosure
statement in accordance with the COI.
b. No officer or employee of the District shall have any financial interest, direct or
indirect, in this Agreement nor shall any such officer or employee participate in
any decision relating to the Agreement which effects his or her financial interest
or the financial interest of any corporation, partnership or association in which he
or she has a financial interest if such participation would be in violation of any
State statute or regulation.
c. Auditor, its officers, managers, related entities, affiliates, business associates, and
their respective relatives or living trusts or other similar entities or persons (each,
a “Related Person”) shall avoid any relationship with District or any contractor of
District that constitutes or may constitute a conflict of interest in connection with
services provided under this Agreement.
d. Prior to entering into this Agreement and during the term, Auditor shall have a
duty to disclose to the District any and all circumstances that pose an actual or
potential conflict of interest.
e. Auditor shall not obtain for itself or any Related Person any financial gain from
the services other than as specified in this Agreement. Auditor represents that
neither Auditor nor any Related Person has an existing financial interest and that
neither will acquire any such interest, direct or indirect, that conflicts in any
manner or degree with the performance of services required under this Agreement
and that no person having any such interest shall be subcontracted in connection
30
with this agreement, or employed by Auditor. Auditor shall not enter into this
Agreement if such a conflict of interests exists at present.
f. If an actual or potential conflict of interest issue arises, Auditor agrees to fully
cooperate in any inquiry and to 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.
g. Auditor shall not conduct or solicit any non-District business while on District
property or time.
h. Failure to comply with the provisions of this section shall constitute grounds for
immediate termination of this Agreement, in addition to whatever other remedies
the District may have.
3. The Contract shall be interpreted and enforced pursuant to the laws of the State of
California, without regard to any conflict of laws principles. Disputes which cannot be
resolved by mutual agreement or by the terms and condition of this Contract shall be
resolved by a court of competent jurisdiction in the County of San Diego, State of
California.
Signature of Official: _____________________________
Name (typed): __________________________________
Title: __________________________________________
Firm: __________________________________________
Date: ___________________________________________
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: November 7, 2018
PROJECT: Various DIV. NO. ALL
SUBMITTED BY: Kelli Williamson
Human Resources Manager
APPROVED BY:
Adolfo Segura, Chief, Administrative Services
Mark Watton, General Manager
SUBJECT: ADOPT RESOLUTION #4353 TO APPROVE THE 2019–2024 MEMORANDUM OF
UNDERSTANDING (MOU) BETWEEN THE OTAY WATER DISTRICT AND THE OTAY
WATER DISTRICT EMPLOYEES’ ASSOCIATION (OWDEA) AND RELATED
ACTIONS
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution #4353 to approve the Memorandum of
Understanding (MOU) between the Otay Water District and the Otay Water
District Employees’ Association (OWDEA) effective July 1, 2019 through
June 30, 2024 (with some provisions going into effect immediately upon
Board approval), for the Field and Administrative Employees’ Bargaining
Units and approve extending the same cost-of-living adjustments and
related benefits for management, confidential, and executive employees.
PURPOSE:
To recommend that the Board adopt Resolution #4353 (Attachment A) to
approve the MOU for represented employees and apply the same negotiated
cost-of-living adjustments and related benefits for management,
confidential, and executive employees.
ANALYSIS:
The District and OWDEA entered into a one-year contract extension on
March 7, 2018 to extend the current MOU through June 30, 2019 with the
understanding that negotiations momentum would continue to negotiate a
longer term MOU by the end of 2018. The Ad Hoc Negotiations Committee
and Board of Directors discussed the status and parameters of the
negotiations at various meetings held throughout February and October
2018. District staff, contracted negotiator for the District, and the
OWDEA representatives met in June through September.
The District and the OWDEA reached a tentative agreement on September
18, 2018, on the following provisions for a successor MOU:
Five (5) year contract term from July 1, 2019 – June 30, 2024 (with
some provisions going into effect immediately upon Board approval);
Cost-of-living adjustments on the first full pay period of July 2019,
and each subsequent first pay period of July thereafter during the
term of this MOU as follows:
o The salary schedule and base pay of all represented employees shall
increase annually based on the published change in the “San Diego
Consumer Price Index for Urban Consumers” (SDCPI-U), less Medical
Care, pursuant to the following formula:
The minimum increase shall be two percent (2%) and the maximum
of the increase shall not exceed three percent (3%);
If the SDCPI-U increase is between two percent (2%) and two-
and-a-half percent (2.5%), the increase shall equal the SDCPI-
U;
If the SDCPI-U is between two–and-six-tenths percent (2.6%) and
three-and-a-half percent (3.5%), the salary range shall be
increased by two-and-a-half percent (2.5%) plus one half (1/2)
of the amount between two-and six-tenths percent (2.6%) and
three-and-a-half percent (3.5%).
Amendments to the MOU to bring the contract language in line with
industry best standards, clarify ambiguities, and/or reflect updates
in the law:
o Agency Shop/Dues Deduction (effective immediately upon Board
approval):
New law in June 2018 changed Agency Shop.
Employees are no longer under Agency Shop but still have
exclusive representation and union dues are optional.
o In-Range Adjustments:
Effective the first pay period following September 1 and the
first pay period following the anniversary of a newly hired
employee.
o Overtime/Holidays:
Added clarification that non-exempt employees need to use
accruals or work the one additional hour during the work week
to make up for an eight (8) holiday.
o Temporary Assignment and Out-of-Class Appointments (effective
immediately upon Board approval):
Increased maximum length of temporary assignment from six (6)
months to one (1) year.
Further defined Out-of-Class Appointment per requirement of
CalPERS.
o Safety Boot Allowance:
Increased dollar amount from $150 to $250.
Clarified that this covers safety boots only.
o Safety Glasses and Spectacle Kits:
Allowance of up to $400 per pair unless medical necessity.
Replacement pair allowed if damaged.
Clarified that spectacle kits are also covered.
o Pension (effective immediately upon Board approval):
Updated Special Compensation per CalPERS requirements to include
Temporary Assignment and Out-of-Class Appointment and
Educational Incentive.
o Vacation (effective immediately upon Board approval):
Removed language regarding banked sick leave.
o Sick Leave (effective immediately upon Board approval):
Added under allowable use of sick leave an employee who is a
victim of domestic violence, sexual assault or stalking.
Definition of a family member: Updated definition of a parent
and added grandparent, grandchild or sibling.
Verification of the Proper Use of Sick Leave/Doctor Note: The
District may require verification of the proper use of sick
leave after the employee uses more that 50% of their annual sick
leave balance.
o Cash-In of Vacation and/or Sick Leave (effective immediately upon
Board approval):
Employees may only request one (1) buyout per calendar year
(vacation and/or sick must be sold at the same time).
The request is limited to what is EARNED in the year for each
type of leave (vacation or sick leave).
The buyout will be effective the second pay period of the month.
Clarification and update of Unforeseeable Emergency Hardship
provisions.
Total package to be effective July 1, 2019 (unless otherwise
specified).
The OWDEA met on October 24, 2018, to conduct a ratification meeting
for represented employees. The Association ratified the tentative
agreement with 83% of the members voting and of those that voted 87%
recommending acceptance of the agreement.
It is recommended that the Board apply the same cost-of-living
adjustments and related benefits to management, confidential, and
executive employees as negotiated for the represented employees.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
With approval, the Fiscal Year 2020 labor and benefits cost will
increase by $510,000. This fiscal impact was included in the six-year
rate model prepared as part of the Fiscal Year 2019 budget process and
is reflected in the projected Fiscal Year 2020 rate increases of 3.2%
for water and 4.6% for sewer.
STRATEGIC GOAL:
4.1.1.4 – Negotiate a successor Memorandum of Understanding for
represented employees for 2019 and beyond, and related compensation and
benefits for unrepresented employees.
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Resolution #4353 to approve the 2019-2024 Memorandum
of Understanding, and extending the same provisions
for management, confidential, and executive employees,
and revise related policies
Exhibit 1 - Draft Memorandum of Understanding for
July 1, 2019 - June 30, 2024
Attachment B – Proposed Memorandum of Understanding, July 1, 2019
through June 30, 2024
ATTACHMENT A
RESOLUTION NO. 4353
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
OTAY WATER DISTRICT TO APPROVE THE 2019 - 2024
MEMORANDUM OF UNDERSTANDING BETWEEN THE OTAY WATER
DISTRICT AND THE OTAY WATER DISTRICT EMPLOYEES’
ASSOCIATION AND TO APPROVE EXTENDING THE SAME COST-OF-
LIVING ADJUSTMENTS AND RELATED BENEFITS FOR
MANAGEMENT, CONFIDENTIAL, AND EXECUTIVE EMPLOYEES
WHEREAS, the Otay Water District (“District”) endeavors to
recruit and retain the most qualified and talented employees to serve
its customers; and
WHEREAS, the salary and benefits offered by the District to its
employees are designed to aid in the District’s recruitment and
retention efforts; and
WHEREAS, on September 18, 2018, the District and the Otay Water
District Employees’ Association (“Association”) entered into a
memorandum of understanding governing, to the extent addressed
therein, the terms and conditions of employment of represented
employees (the “MOU”); and
WHEREAS, the District and the Association negotiated in good
faith regarding a successor agreement to the MOU and have come to an
agreement on the terms and conditions of the new MOU (the “New MOU”);
and
WHEREAS, the Board of Directors wishes to implement the New MOU
with the Association; and
ATTACHMENT A
WHEREAS, the Board of Directors wishes to approve extending the
same cost-of-living adjustments and related benefits addressed in the
New MOU for Management, Confidential, and Executive employees; and
WHEREAS, the members of the Association have voted in favor of
entering into the New MOU; and
WHEREAS, the salary adjustments of the New MOU and the related
salary adjustments to unrepresented employees necessitates changes to
the District’s Job Classification and Salary Schedule,
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Otay Water District as follows:
1. That the Memorandum of Understanding between the Otay Water
District and the Otay Water District Employees’ Association
from July 1, 2019 through June 30, 2024 (Exhibit 1) is
approved effective November 7, 2018;
2. That the following provisions will go into effect
immediately upon Board approval effective November 7, 2018:
a. Article 3, Section 6 - Agency Shop/Dues Deduction
b. Article 5, Section 6 - Temporary Assignment and Out-of-
Class Appointments
c. Article 7, Section 1 - Pension
d. Article 8, Section 2 - Vacation
e. Article 8, Section 3 - Sick Leave
f. Article 9, Section 1 - Cash-In of Vacation and/or Sick
Leave
ATTACHMENT A
3. That extending the same cost-of-living adjustments and
related benefits of the New MOU to Management,
Confidential, and Executive employees is approved;
4. That the General Manager is hereby authorized and directed
to implement the provisions of the MOU, including the
resulting changes to salary and benefits, and to implement
the related changes to salary and benefits for
unrepresented employees; and
BE IT FURTHER RESOLVED that the Board authorizes and directs the
appropriate staff of the District to take any and all actions
necessary to implement the above-referenced changes.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the
Otay Water District at a regular meeting held this 7th day of
November, 2018.
Ayes:
Noes:
Abstain:
Absent:
President
ATTEST:
District Secretary
i
MEMORANDUM OF UNDERSTANDING BETWEEN
THE OTAY WATER DISTRICT AND THE OTAY
WATER DISTRICT EMPLOYEES’ ASSOCIATION
July 1, 201419 – June 30, 201724
TABLE OF CONTENTS
Article 1 – Preamble 1
Article 2 – Term 1
Article 3 – Association Rights 1
Section 1 – Recognition 1
Section 2 – Association Representatives 2
A. Representatives 2
B. Grievance Processing Release Time 2
C. Formal Bargaining Release Time 2
D. Release Time for PERB Proceedings 3
E. Limitation on Time Off 3
Section 3 – Bulletin Boards 3
Section 4 – Use of Email 3
Section 5 – Association Access 4
Section 6 – Agency ShopDues Deductions 4
A. Right to Join or not Join 4
B. Association Dues 4
C. Records 5
D. Indemnification 5
Article 4 – Wages 75
Section 1 – Wages 75
A. Wages 75
B. Adjustments 76
Section 2 – Payroll Period; Pay Dates 76
Section 3 – Salary Adjustment within Range 76
A. Amount of In-Range Adjustment 76
ii
B. Standardized In-Range Adjustment Date 76
C. In-Range Adjustment Date 86
D. Eligible Employees 87
Section 4 – Employee Recognition Programs 87
Article 5 – Hours of Work and Premiums 97
Section 1 – Hours of Work 97 A. Standard Work Day/Week 98
B. Standard Work Periods 98
C. Hours of Work: Regular Part-Time Employees 98
D. Alternative Work Schedules 98
E. Round-the-Clock Staffing 109
Section 2 – Rest and Lunch Periods 109
Section 3 – Overtime 109
A. FLSA 109
B. Computation of Overtime 119
C. Exclusion from Hours Actually Worked 119
D. Compensation for Overtime 1110
Section 4 – Compensatory Time Off 1110
Section 5 – Assignment Premiums 1211
A. Shift Pay 1211
B. Standby Duty 1211
C. Call Back Duty 1312
D. Report Time Pay 1413
Section 6 – Temporary Assignments and Out-of-Class Appointments 1413
A. Assignment 13
B. Compensation 14
C. End of Assignment 14
D. Employment Termination During Assignment 14
Article 6 – Allowances for Work-Related Expenses 1514
Section 1 – Meal Allowance 1514
A. Overtime 1514
Section 2 – Safety ShoeBoot Allowance 1514
Section 3 – Safety Glasses and Spectacle Kits 15
A. Safety Glasses 15
B. Spectacle Kits 15
iii
C. Prescription 15
Article 7 – Employee Benefits 1615
Section 1 – Pension (Retirement Plan) 1615
A. Definitions 1615
B. Retirement Formula 16
C. Employee Contribution 1716
D. Special Compensation 1716
Section 2 – Short Term/Long Term Disability Insurance 17
A. Premium 17
Section 3 – Group Health and Dental Insurance: Active Employees 17
A. Active Employees’ Health & Dental Insurance Eligibility 17
B. Health Insurance Coverage 18
C. District/Employee Contribution 18
D. Reservation of Rights 18
Section 4 – Group Health and Dental Insurance: Retired Employees 18
A. Retiree Health Insurance Guaranteed 18
B. Hired On or After January 1, 2013 (New Members/ 19
New Employees); Hired before January 1, 2013
(Current Members) 19
C. Eligibility 19
D. Eligible Dependents 19
E. Health and Dental Insurance Premium Contributions 19
1. Regular Retirement 19
2. Early Retirement 20
Section 5 – Life Insurance: Active Employees 21
A. Premiums 21
B. Reservation of Rights 21
Section 6 – Death Benefit 21
Article 8 – Paid Leaves 22
Section 1 – Holidays and Holiday Compensation 22
A. Floating Holiday 22
B. Employee’s Birthday 22
C. Saturday and Sunday Holidays 22
D. Eligibility for Holidays 22
E. Compensation for Holidays 22
Section 2 – Vacation 23
A. Eligibility 23
iv
B. Earnings 23
C. Maximum Balance 23
D. Cash-In of Vacation Credits 23
ED. Granting Requests 24
FE. Use of Vacation Leave In Lieu of Sick Leave 24
GF. Terminal Payment of Vacation 24
HG. Returning Employees 24
Section 3 – Sick Leave 2524
A. Eligibility 2524
B. Earnings 2524
C. Allowable Use of Sick Leave 25
D. Relationship to Other Leaves 25
DE. Use of Sick Leave in Lieu of Vacation Leave 25
EF. Definition of Family Member 25
FG. Verification of the Proper Use of Sick Leave 25
GH. Maximum Balance 25
H. Cash-In of Sick Leave Credits 26
I. Terminal Payment of Sick Leave 2625
J. Returning Employees 26
Section 4 – Jury Duty (Court Leave) 2726
A. Definition 2726
B. Eligibility 2726
C. Limits 2726
Section 5 – Bereavement Leave 27
A. Definition 27
B. Eligibility 27
C. Amount of Leave 2827
D. Immediate Family 2827
E. Verification of Proper Use of Bereavement Leave 2827
Section 6 – School and Child Care Provider Activities Leave 2827
A. Definitions 2827
B. Eligibility 2827
C. Amount of Leave 2827
D. Required Advance Notice 28
E. Parents Employed by District 28
F. Definition of School or Child Care Provider Emergency 28
Section 7 – Military Leave 28
A. Definition and Eligibility 28
B. Required Advance Notice 2928
C. Compensation of Temporary Military Leave 2928
D. Compensation for Active Military Leave 29
v
Section 8 – Failure to Return from Leave 29
Article 9 – Cash-In of Vacation and/or Sick Leave Credits 29
Article 910 – Unpaid Leaves 2930
Section 1 – Family Medical Leave, Pregnancy Disability Leave 2930
and Kin Care
Section 2 – Non-Work-Related Medical Leave 30
A. Eligibility and Length of Leave 30
B. Reinstatement 30
Section 3 – Work–Related Disability Leave 3031
A. Definition 3031
B. Maintenance of Benefits During Work-Related Disability 3031
Leave
C. Reinstatement 31
Section 4 – Personal Leave 3132
A. Eligibility 3132
B. Requests 3132
Section 5 – Failure to Return from Leave 32
Article 1011 – Workplace Safety 32 A. Commitment to Safety 32
B. Safety Committee 3233
C. Reporting Safety Concerns 3233
Article 1112 – Personnel Practices 3233
Section 1 – Personnel Files 3233
Section 2 – Layoff Procedure 3233
Section 3 – Job Posting 3334
Section 4 – Performance Evaluation 34
Section 5 – Use of District Vehicles 34
A. Lunch Purchase Stops 34
Article 1213 – Grievance Procedure 3435
A. Definition 3435
B. Exclusions 3435
C. Stale Grievance 35
vi
D. Informal Discussion with Employee’s Supervisor 3536
E. Grievance Procedure Steps 3536
F. Selection of Arbitrator 3637
G. Submission of the Issue to the Arbitrator 3637
H. Duty of the Arbitrator 3637
I. Payment of Costs 3738
J. Effect of Failure of Timely Action 3738
K. No Reprisal 3738
L. Grievance Forms 3738
M. Representation 3738
Article 1314 – General Provisions 38
Section 1 – Non Discrimination 38
Section 2 – Entire Agreement 3839
Section 3 – Severability 3839
Section 4 – Management Rights 3839
Section 5 – Strikes and Lockouts 39
Section 6 – Emergency 3940
Section 7 – Implementation 3940
Signature Page 4041
Appendix A – Grievance Forms
Step One (1) Grievance Form 4142
Step Two (2) Grievance Form 4243
Appendix B – FLSA Exempt and Non-Exempt Classifications 44
1
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
OTAY WATER DISTRICT
AND THE
OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION
July 1, 201419 – June 30, 201724
ARTICLE 1 - PREAMBLE
This Memorandum of Understanding (MOU) is entered into by the Otay Water District,
Spring Valley, California (hereinafter “District”) and the Otay Water District Employees’
Association (hereinafter “Association”) as a mutual recommendation to the Board of
Directors of the District of those wages, hours, and conditions of employment which are
to be in effect as specified in Article 2 - Term.
ARTICLE 2 - TERM
Upon adoption by the Board of Directors of the District, the provisions of this
Memorandum of Understanding shall be effective during the period commencing at 8:00
a.m. on July 1, 201419 through 5:00 p.m. on June 30, 201724 for those employees
working in the Field and Administrative Units, subject to the provisions of Article 1314,
Section 7: Implementation.
ARTICLE 3 - ASSOCIATION RIGHTS
ARTICLE 3, SECTION 1: RECOGNITION
Pursuant to the provisions of the District’s Code of Ordinance, Chapter 5 Personnel
Practices, Section 5 Employer-Employee Relations, and applicable state law, the
Association was certified on May 9, 2001, as the majority representative for the:
Field Employees’ Unit
Administrative Employees’ Unit
The District therefore recognizes the Association as the sole and exclusive representative
for all classifications in these two (2) units.
2
ARTICLE 3, SECTION 2: ASSOCIATION REPRESENTATIVES
A. Representatives. The Association may designate three (3) Representatives for the Field Unit
and three (3) Representatives for the Administrative Unit. The Association shall furnish the
District a written list identifying all Representatives by name and the list shall be kept current by
the Association. The District will recognize as Representatives, only those persons designated
on the most recent list furnished by the Association.
B. Grievance Processing Release Time. The District shall grant a Representative reasonable
release time when, at the request of an employee, the Representative is investigating an alleged
grievance and assisting in its written preparation and presentation. Release time for this purpose
shall be given in accordance with the following:
1. The Representative’s supervisor will authorize the Representative to leave his/her work
unless circumstances warrant denial of such permission. Where permission is denied, the
supervisor shall inform the Representative of the reasons for the denial and provide an
alternate time when the Representative may reasonably be expected to be released from
his/her work assignment.
2. When a Representative, acting under this section, desires to contact an employee at his/her
work location, the Representative shall first contact the supervisor of that employee, advise
him/her of the nature of the business, and obtain permission to meet with the employee. The
supervisor shall make the employee available promptly unless circumstances prevent the
employee’s availability. If the employee is not available, the supervisor will notify the
Representative when he/she may reasonably expect to contact the employee. When the
employee is not available for one (1) or more whole work days, the time limits of the
grievance procedure shall be extended for an equal number of days.
3. When a Representative conducts interviews or discussions with an employee on District
time, such interviews or discussions shall be performed expeditiously.
4. A Representative shall report release time under this section on his/her time record as
“Negotiation Release Time” (Activity Code 1508). Other employees (non-Representatives)
participating in such interviews or discussions shall conduct such activities on their own
time with supervisor approval using available accruals.
C. Formal Bargaining Release Time. The District shall grant reasonable release time to
Representatives designated in accordance with this section to serve on the Association
bargaining team while meeting and conferring with District representatives in the formal meet
and confer (bargaining) process regarding wages, hours, and other terms and conditions of
employment, including negotiations for a successor agreement to this Memorandum of
Understanding. Release time in accordance with this section shall be given in accordance with
the following:
1. Appropriate times for release time shall be as mutually arranged by the parties in
negotiations and the number of representatives shall be determined by ground rules.
2. Release time under this section shall be reported by the Association Representative on
his/her time record as “Negotiation Release Time” (Activity Code 1508).
3
D. Release Time for PERB Proceedings. Consistent with Government Code section 3503.3 and
related provisions of the Meyers-Milias-Brown Act, the District shall grant reasonable release
time to Representatives designated in accordance with this section to testify or appear as the
designated Association representatives in conferences, hearings, or other proceedings before the
Public Employment Relations Board, or an agent thereof, in matters relating to a charge filed by
the Association against the District or by the District against the Association. The Association
shall provide reasonable notification to the District requesting time off pursuant to this section.
E. Limitation on Time Off. The District shall not grant Association Representatives permission for
time away from their work assignments for Association activities not described in this section.
ARTICLE 3, SECTION 3: BULLETIN BOARDS
Bulletin boards shall be provided by the District at the following locations: Operations, Treatment
Plant, Warehouse, and the Administration Building. They shall be for the use of the Association for
the posting of rules and regulations of the Association and notices of interest. All such bulletins,
with the exception of meeting notices and announcements of Association elections, shall be
approved by the Human Resources Manager or his/her designee in a timely manner before posting.
ARTICLE 3, SECTION 4: USE OF EMAIL
The Association President, Vice President, or Chair may use the District email system for one-way
communication to association members to notify them of upcoming meetings and to provide general
information subject to the following:
1. The person sending the email shall send a copy (“cc”) of each such email to the Chief,
Administrative Services; the Human Resources Manager; and the Human Resources Analysts.
2. Use of the District email system by the Association under this section must be in accord with
District Ppolicy No. 39, entitled “Disclosure of Information and Use of Computer, Electronic
and Voice mail and Internet Policy.”. Use of the District email system by the Association under
this section shall be considered a “personal use” of the District email system under the District
Ppolicy No. 39.
3. If the District determines that use by the Association of the District email system under this
section interferes with the District, the District will notify the Association and will meet to
discuss any necessary amendments to this section.
4. If the District determines that use of the District email system under this section does not
comply with District Ppolicy No. 39, the District shall notify the Association and may suspend
the use of the system under this section until the District believes that the Association will
comply with the District’s email policyPolicy No. 39.
5. Any communications via the District’s email system shall be subject to the California Public
Records Act.
6. The District’s email system may not be used to distribute political material or to otherwise
engage in political advocacy prohibited by state law including, but not limited to, Government
Code section 54964.
4
ARTICLE 3, SECTION 5: ASSOCIATION ACCESS
A. The District shall grant access to a work location to a designated Association Representative or
Business Agent for the purpose of conducting a grievance investigation. As used in this section,
“Association Business Agent” refers to a person who is not a District employee.
B. Association Representatives and Business Agents shall not interfere with the work operations of
the District. An Association Representative or Business Agent desiring access to a work
location shall first request entrance from the Human Resources Manager or a designee and
inform him/her of the purpose for the visit. The request may be made by telephone, in person, or
via email.
C. The Human Resources Manager or designee may deny access to a work location if, in his or her
judgment, access at that time would interfere with the operations of the facility or work location.
If access is denied, the Association Representative or Business Agent shall be informed when
access will be made available.
D. Association Representatives or Business Agents may meet with employees during rest or lunch
breaks at District facilities or work locations as may be available. In so doing, however, they
shall not create a disturbance for employees not represented by the Association.
ARTICLE 3, SECTION 6: DUES DEDUCTIONSAGENCY SHOP
1.A. Legislative AuthorityRight to Join or Not Join.
The parties mutually understand and agree that as a result of and in compliance with the State of
California’s adoption of SB 739, all Field and Administrative employees (regular full-time and
regular part-time), employees represented by the Otay Water District Employees’ Association,
have the right to join or not join the Otay Water District Employees’ Association
(“Association”). However, the enactment of a local “Agency Shop” requires that as a condition
of continuing employment, employees in the respective bargaining unit must either join the
Association or pay to the Association a service fee in lieu thereof. Such service fee shall be
established by the Association, and shall not exceed the standard initiation fee, periodic dues
and general assessments of the Association.
2.B. Association Dues./Service Fees
a.1. The District’s Human Resources OfficeAssociation shall provide all current Field and
Administrative employees (regular full-time and regular part-time) and any Field or
Administrative employees hired thereafter, with an authorization notice advising them that
Agency Shop for the Association has been enacted pursuant to state law and an agreement
exists with the Association represents employees in the bargaining unit, and that all
employees subject to the Agreement must either may choose to join the Association, and pay
a service fee to the Associationmembership dues, or execute a written declaration claiming a
religious exemption from this requirementdecline to join the Association and forego
payment of membership dues. Such notice shall include a form for the employee’s signature
authorizing a payroll deduction of Association dues, a service fee or a charitable
contribution equal to the service fee. The Association may provide this authorization notice
and payroll deduction form to new employees at the District’s new employee orientation
5
meetings. Said employees completing the form shall have 30 calendar days from the date
they receive the form to fully execute it and return it to the District’s Payroll Office.
b.2. When the Upon receiving a payroll deduction form is completed properly authorizing
the deduction of Association dues or the service fee, and returned during the stated time
period as stated in Paragraph 2(a), the District shall begin the applicable deduction of
Association dues or the service fee no later than the beginning of the first pay period
commencing after receipt of the authorization form by the Payroll Office. If the form is not
completed properly and/or not returned within the stated time period, the District shall begin
the deduction of the service feeAssociation dues no later than the beginning of the first pay
period commencing after the expiration of the stated time period in Paragraph 2(a).receipt of
a properly completed form. If the authorization form is properly completed claiming the
religious exemption and returned during the stated time period, the procedure provided in
Paragraph 3(b) shall be followed.
3. c. As determined by the District, the employee’s earnings must be sufficient after the
other legal and required deductions are made to cover the amount of the dues or fees
authorized. When an employee is in a non-pay status for an entire pay period, no
withholding will be made to cover the pay period from future earnings. In the case of an
employee in a non-pay status only during part of the pay period, whose salary is not
sufficient to cover the full withholding, no deduction shall be made. In this connection, all
other legal and required deductions (including health care and insurance deductions) have
priority over Association dues and service fees.
d.4. The Association shall advise the District, in writing, of the dues and service fee
amounts to be deducted. Any change in the amounts will be submitted to the District, in
writing, at least thirty (30) days prior to the effective date of such change.
e.5. All deducted dues and service fees shall be remitted to the Association no later than 14
calendar days after deduction. The District shall also provide an itemized statement
detailing each employee’s name and the, amount of deduction, and category of deduction.
3. Religious Exemption
a. Any employee who is a member of a bona fide religion, body or sect that has historically
held conscientious objections to joining or financially supporting public employee
organizations shall upon presentation of active membership in such religion, body, or sect,
not be required to join or financially support any public employee organization as a
condition of employment. The employee may be required, in lieu of periodic dues, initiation
fees or agency shop fees, to pay sums equal to the dues, initiation fees or agency shop fees to
a nonreligious, nonlabor charitable fund exempt from taxation under Section 501(c)(3) of
the Internal Revenue Code, chosen by the employee from the following three charitable
associations: American Cancer Association, American Heart Association, or United Way.
b. Written declarations of, or applications for, religious exemption and any supporting
documentation must be submitted to the District’s Payroll Office. Within 14 calendar days
of receipt of any such written request for religious exemption, the District shall forward a
copy of it to the Association. After receipt of such a request, the District shall begin a
deduction of the charitable contribution no later than the beginning of the first pay period
6
commencing after the receipt of the request by the Payroll Office. The charitable deduction
shall be held in escrow pending receipt of the Association’s written determination on the
request for a religious exemption. Upon approval of the religious exemption by the
Association and upon identification of an appropriate charity by the employee, the District
shall remit the escrowed amount to the designated charity and thereafter remit the charitable
deductions to the designated charity. Upon denial of the religious exemption by the
Association, the District shall convert the charitable contribution deduction to a service fee
deduction and remit the escrowed amount to the Association as service fees. Charitable
contributions shall be made by regular payroll deductions only. Failure of the Association to
provide the District, within 30 calendar days of the Association’s receipt of a copy of the
request, with a written approval or disapproval of a request for religious exemption shall
constitute an approval of the religious exemption.
4. Rescission
The agency shop provision in this memorandum of understanding may be rescinded by a
majority vote of all the employees in the unit covered by the memorandum of understanding,
provided that:
a. A request for such a vote is supported by a petition containing the signatures of at least 30
percent of the employees in the unit;
b. The vote is by secret ballot; and
c. The vote may be taken at any time during the term of the memorandum of understanding,
but in no event shall there be more than one rescission vote taken during that term.
If a “rescission vote” is approved by unit members during the term of a current
memorandum of understanding, the Association agrees not to petition for or seek Agency
Shop status for the duration of the current memorandum of understanding.
C. 5. Records.
The Association shall keep an adequate itemized record of its financial transactions and shall
make available annually, to the District, and to the employees who are members of the
organization, within 60 days after the end of its fiscal year, a detailed written financial report
thereof in the form of a balance sheet and an operating statement, certified as to accuracy by
its president and treasurer or corresponding principal officer, or by a certified public
accountant.
D. 6. Indemnification.
The Association shall indemnify, defend, and hold the District harmless against any liability
arising from any claims, demands, or other action relating to the District’s compliance with
the agency feedues deduction obligation in this Article including claims made by employees
relating to the Associations deduction or remittanceuse of monies collected to the
Association under these provisions. The District reserves the right to select and direct legal
counsel in the case of any challenge to the District’s compliance with the agency fee
obligations listed above, and the Association agrees to pay any attorney, arbitrator or court
fees related thereto.
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ARTICLE 4 - WAGES
ARTICLE 4, SECTION 1: WAGES
A. Wages:
Effective July 1, 2014, the salary schedule and base pay of all represented employees shall be
increased by two and one-half percent (2.5%).
Effective the first full pay period of July 1, 20192015 and July 1, 2016, and each subsequent
first pay period of July thereafter during the term of this MOU, the salary schedule and base pay
of all represented employees shall be increased annually based on the published change in the
“San Diego Consumer Price Index for Urban Consumers” (SDCPI-U)by the San Diego CPI-U,
Lless Medical Care, Annual (SDCPI-U), pursuant to the following formula:
The minimum increase shall be two percent (2%) and the maximum of the increase shall not
exceed three percent (3%).
If the SDCPI-U increase is between two percent (2%) and two-and-a-half percent (2.5%),
the increase shall equal the SDCPI-U.
If the SDCPI-U is between two- and- six- tenths percent (2.6%) and three-and-a-half percent
(3.5%), the salary range shall be increased by two-and-a-half percent (2.5%) plus one half
(1/2) of the amount between two-and- six- tenths percent (2.6%) and three-and-a-half
percent (3.5%).
B. Adjustments: The District may, at its discretion, increase compensation for employees covered
by this Memorandum of Understanding. Prior to implementing any increase(s), the District
shall notify the Association and, if the Association requests it, discuss the increase with the
Association in a non meet-and-confer forum. The decision to grant an increase and the amount
thereof may not be grieved under the Grievance Procedure of this Memorandum of
Understanding. Nothing in this section shall be construed to require the District to negotiate the
decision to grant an increase or the amount thereof.
ARTICLE 4, SECTION 2: PAYROLL PERIOD; PAY DATES
The payroll period extends over fourteen (14) calendar days. Paychecks shall be issued biweekly in
payment of wages earned during the preceding payroll period.
ARTICLE 4, SECTION 3: SALARY ADJUSTMENT WITHIN RANGE
This provision applies to eligible employees as provided in this section.
A. Amount of In-Range Adjustment. An annual in-range salary adjustment may be granted in the
amount of three percent (3%). If the employee’s salary is less than three percent (3%) below the
maximum of his/her position on the salary range, the adjustment shall be in an amount sufficient
to place the employee at the top of the salary range. However, in no event shall this adjustment
result in the employee’s salary exceeding the salary range for the employee’s classification.
B. Standardized In-Range Adjustment Date. The first full pay period in September 1 will be the
employee’s In-Range Adjustment Date.
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C. In-Range Adjustment Date.
1. Newly hired employees or employees who have not completed one (1) year of
employmentservice:
a. Newly hired employees or employees who have not completed one (1) year of
employmentservice prior to September 1 shall be eligible for the first In-Range
Adjustment the first full pay period afterupon completion of one (1) year of
employmentservice. Thereafter, September 1 will be the employee’s In-Range
Adjustment Date according to the following chart:
1st In-Range
Increase
Month Complete
One Year of
ServiceEmployment
2nd In-Range
Increase
Number of
Quarters in
the Review
Period
Eligible %
for 2nd
In-Range
Increase
Upon completion
of one year of
serviceemployment.
July, August,
September
Sept 1 of the
following
calendar year.
4 3.0%
Upon completion
of one year of
serviceemployment.
October, November,
December
Sept 1 of the
following
calendar year.
3 2.25%
Upon completion
of one year of
serviceemployment.
January, February,
March
Sept 1 of the
current calendar
year.
2 1.5%
Upon completion
of one year of
serviceemployment.
April, May, June
Sept 1 of the
current calendar
year.
1 0.75%
2. Employees who are promoted:
a. A regular employee who promotes to a new classification shall maintain his/her performance
evaluation review date and In-Range Adjustment Date.
D. Eligible Employees. Eligible employees are:
Employees whose salary is less than the maximum of the salary schedule for the employee’s
classification and who have received an overall fully competent or higher evaluation during the
most recent annual evaluation or one-year-of-serviceemployment review immediately preceding
his/her In-Range Adjustment Date.
ARTICLE 4, SECTION 4: EMPLOYEE RECOGNITION PROGRAMS
Employee recognition programs may be instituted by the District. The purpose of such programs
will be to recognize exemplary employees and improve public service through enhanced motivation.
The design, establishment, disestablishment, administration, and regulation of all employee
recognition programs shall be at the sole discretion of the District, through its General Manager.
Such programs as are established and awards given through them may not be grieved under the
Grievance Procedure of this Memorandum of Understanding.
ARTICLE 5 - HOURS OF WORK AND PREMIUMS
ARTICLE 5, SECTION 1: HOURS OF WORK
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This Section is intended to define the normal hours of work and shall not be construed as a
guarantee of hours of work per day, per week, or of days or of work period. The hours of work of
the office or facility and an employee’s work schedule shall be established by the District and may
be changed at the discretion of the District, as District needs dictate. Reasonable notice shall be
given, normally at least ten (10) calendar days prior to the change. However, the District may give
less notice when reasonable and/or necessary.
Official District office hours are 8:00 am to 5:00 pm. Work schedules and days off shall be
arranged to maintain uninterrupted service to the District’s customers.
A. Standard Work Day/Week.
Standard Work Day. The standard work day is eight (8) consecutive hours of work exclusive of
a lunch period in a consecutive twenty-four (24) hour day. The standard work day is 12:01 a.m.
to 12:00 midnight.
Standard Work Week. The standard work week begins on Monday 12:01 a.m. and ends on
Sunday 12:00 midnight and is forty (40) hours of work performed within five (5) standard work
days during a work week.
B. Standard Work Periods.
The standard work periods shall be as follows:
1. For Fair Labor Standards Act (FLSA)-covered classes, the standard work period is seven (7)
consecutive days and generally consists of two (2) consecutive days of rest in a seven (7)
consecutive day period. The work period shall be forty (40) hours, except as provided
herein and depending on the position.
2. For FLSA Exempt classes, the standard work period is fourteen (14) consecutive days which
may generally consist of four (4) days of rest (two (2) instances of two (2) days of rest each)
in a fourteen (14) consecutive day period. This work period shall be eighty (80) hours.
C. Hours of Work: Regular Part-Time Employees. Regular part-time employees are those
employees who work in a regular part-time position for at least twenty (20) hours per week, but
less than thirty (30) hours per work week and less than sixty (60) hours per work period.
D. Alternative Work Schedules.
1. Required Advance Approval: Alternative Work Schedules are subject to approval by the
General Manager’s designee. However, Alternative Work Schedules are subject to change as
District needs dictate. Reasonable notice shall be given, normally at least ten (10) calendar
days prior to the change. However, the District may give less notice when reasonable and/or
necessary.
2. Alternative Work Schedules: The District may assign an employee to any of three (3)
Alternative Work Schedules:
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a. The Four-Ten (4/10) schedule of four (4) ten (10) hour days of work within a forty (40)
hour work week.
b. The Four/Nine (4/9) schedule of four (4) nine (9) hour days and one (1) four (4) hour day
of work within a forty (40) hour work week.
c. The Nine/Eighty (9/80) schedule of eight (8) nine (9) hour days and one (1) eight (8)
hour day within two (2) consecutive work weeks.
For purposes of determining overtime under the FLSA for employees on a Nine/Eighty
(9/80) schedule, the work week will begin four (4) hours into an eight-hour shiftone minute
after mid-shift after the employee commences work on the fifth consecutive work day and
will end mid-shift one week later, resulting in a work period of 40 hours (i.e., for an
employee who works Monday through Thursday,Friday 8:00 am – 5:300 pm, and has an
alternating designated eight (8) hour day on Friday, 8:00 am – 5:00 pm, their first work week
will begin on the previous Friday at 12:01 pm and end at 12:00 pm on Friday of the first
week of the pay period. Work week two (2) will begin at 12:01 pm on that same Friday and
end at 12:00 pm the following Friday).
E. Round-the-Clock Staffing. Under conditions requiring round-the-clock staffing to ensure
continued water delivery to customers, a schedule may be implemented which consists of three
(3) consecutive twelve (12) hour shifts totaling thirty-six (36) hours in a work week. However,
employees so assigned shall receive pay at their regular rate of pay for forty (40) hours.
ARTICLE 5, SECTION 2: REST AND LUNCH PERIODS
One (1) paid ten-minute rest break shall be made available to employees for each four (4) hours of
service within a single work shift. An unpaid lunch period of at least thirty (30) minutes shall be
provided midway in the employee’s work day to any employee who works for at least six (6) hours
in a work day. Daily rest breaks not taken will be forfeited. Except as provided below, breaks may
not be combined with lunch periods, nor may they be moved to the beginning or ending of the work
day.
Where the interest of the District is served, the Manager may elect to combine rest and lunch
periods in order to expedite the completion of the job, which shall shorten the work day.
ARTICLE 5, SECTION 3: OVERTIME
This section is intended only to provide the basis for the calculation of and payment for overtime
and shall not be construed as a guarantee of hours of work per day or per pay period.
A. FLSA. In accordance with the FLSA, regular full-time employees’ overtime is authorized or
mandated work performed by an employee, which is in excess of the full regularly scheduled
work week of forty (40) hours.
Scheduled overtime is separate and distinct from call-back overtime, which is defined in Section
5 as unexpected or unanticipated overtime.
11
B. Computation of Overtime. Computation for overtime shall be based on the employee’s regular
rate of pay. The regular rate pay is the employee’s base salary plus any applicable differentials
or premium rates to which the employee is entitled.
C. Exclusion from Hours Actually Worked. Notwithstanding any other policy, practice, rule,
regulation, or Memorandum of Understanding provision to the contrary, any absence for court
leave/jury duty, standby time, unauthorized hours of work, or holiday pay on an employee’s
scheduled Alternative Work Schedule day off, and any unpaid time off, including disciplinary
suspensions or leaves of absences, shall not be counted as hours actually worked for purposes of
calculating overtime compensation.
A non-exempt employee must use available accruals to supplement for an 8-hour holiday or
work one (1) additional hour during the work week to make up for an 8-hour holiday which falls
on an employee’s alternative nine (9) hour day schedule, or two (2) hours to make up for an 8-
hour holiday which falls on an employee’s alternative ten (10) hour day schedule, such one (1)
or two (2) hours will not be eligible for overtime compensation. The additional hour(s) worked
must be made up in the same work week (Monday – Thursday) as the holiday.
In addition, if an employee works one (1) additional hour during the work week to make up for
an 8-hour holiday which falls on an employee’s alternative nine (9) hour day schedule, or two
(2) hours to make up for an 8-hour holiday which falls on an employee’s alternative ten (10)
hour day schedule, such one (1) or two (2) hours will not be eligible for overtime compensation.
The additional hour(s) worked must be made up in the same work week as the holiday.
D. Compensation for Overtime. Compensation is defined as either cash payment or
compensatory time off, or a combination of cash payment and compensatory time off, in
accordance with the overtime code for the employee’s class. Employees shall have their
overtime hours computed as follows:
Code “NE” (FLSA covered) Employees who are covered by FLSA (non-exempt) are eligible
for overtime at time and one-half, compensatory time off and for
premium compensation for working on holidays.
Code “E” (FLSA exempt) Employees exempt from FLSA. Exempt employees are not
eligible for overtime or compensatory time off and shall be
charged vacation or sick leave only if they are absent on leave
for a full work day.
ARTICLE 5, SECTION 4: COMPENSATORY TIME OFF
Compensatory time off is paid time off in lieu of cash payment for overtime worked. One hour of
overtime work earns one and one-half hours of compensatory time off. Employees will be allowed
to accrue compensatory time off when the employee has no accrued vacation and/or sick leave hours
due to being newly hired or due to exhausting accruals for legitimate personal leave reasons. For
example, family medical leave, pregnancy leave or other legitimate reasons. When an employee is
allowed to accumulate compensatory time off, such accrual shall be limited to accumulating a
maximum of sixty (60) compensatory time hours. An employee who has accumulated sixty (60)
unused hours of compensatory time shall be paid overtime compensation in cash for any additional
overtime worked.
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Employees will be permitted to use accrued compensatory time off within a reasonable period after
providing advanced notice to and upon approval by the District, provided that such usage does not
unduly disrupt the District’s operations.
Compensatory time earned and used must be recorded on the District time sheet in the spaces
provided for “Compensatory Time Earned” and “Compensatory Time Used.” Both supervisor and
employee are required to certify the accuracy of the compensatory time accrual and use.
Compensatory time off earned may be used in the payroll period following the payroll period within
which it was earned.
Compensatory time off balances will be paid in cash to an employee at the time of an employee’s
termination at the employee’s final regular rate of pay.
The decision to pay for overtime worked in cash or compensatory time off shall be at the discretion
of the District.
ARTICLE 5, SECTION 5: ASSIGNMENT PREMIUMS
Application of Premium Rates. Premium rates for all assignment premiums are paid only for hours
actually worked in the specific assignment and are not applicable to vacation or sick leave buyout or
to terminal pay.
A. Shift Pay. Shift pay is for an assigned shift other than the regularly scheduled day shift. Shift
pay shall be paid to employees for working ongoing regular shifts outside the hours of 6:00 a.m.
to 6:00 p.m.
1. Compensation for Shift Pay.
One dollar and fifty cents ($1.50) per hour in addition to the employee’s regular salary.
2. No shift pay will be paid for hours worked as an extension of a regularly scheduled shift
between 6:00 a.m. – 6:00 p.m.
B. Standby Duty.
1. The District may assign an employee to weekly standby duty on a rotating basis. Employees
assigned to standby duty must be able to respond to an emergency call within one hour.
Employees assigned to standby duty shall carry assigned equipment, provided by the
District, at all times during the standby assignment. The employee shall ensure that the
assigned equipment is charged at all times. The District’s Drug Free Workplace Policy
applies to employees assigned to standby duty. An employee assigned on standby duty who
fails, refuses, or is unable to respond to an emergency call is subject to disciplinary action.
2. Employees assigned to standby duty may arrange to be replaced by a substitute, provided
he/she receives approval from department supervision before the standby duty is scheduled
to begin.
3. Compensation for Standby Assignment. Employees on standby duty shall be paid two
dollars and fifty cents ($2.50) per hour for each hour the employee is on standby duty.
13
4. Compensation for Work Performed on Standby. An employee on standby, who is called in
for emergency work at times other than his/her regular work schedule shall receive a
minimum of two (2) hours of pay.
a. When responding to an alarm via SCADA or calls from the answering service from home
(place of contact), employees receive compensation in the following increments.
Up to 15 minutes = 15 minutes of pay
16 –– 30 minutes = 30 minutes of pay
31 –– 45 minutes = 45 minutes of pay
46 –– 60 minutes = 60 minutes of pay
b. If the employee responds to an alarm or to calls from the answering service from home
(place of contact) between midnight and 6:00 a.m. and has at least two (2) hours of
cumulative paid time during this time period, the employee will receive five (5) hours of
rest time from the completion of the last call.
5. This Standby section shall cease to be effective if the District establishes a second and/or
third shift emergency crew.
C. Call- Back Duty.
1. Eligibility. Call-back work is work required of an employee who, following completion of
the employee’s work day and departure from the employee’s work site, is ordered to report
back to duty to perform necessary work. The District’s Drug Free Workplace policy applies
to all employees that report to work and it is the employee’s responsibility to ensure that
they are in compliance with said policy and are otherwise able to safely and effectively
perform their required duties when called back to work. If an employee is under the
influence of alcohol or a controlled substance when requested to report back to work, he/she
is required to decline the call-back duty assignment. An employee who declines call-back
duty for that reason will not be subject to disciplinary action, except for thean employee on
standby duty, who is subject to discipline for declining a call-back due to the standby
requirements set forth in Section B, above.
2. Qualifications. To qualify for this call-back provision, an employee must leave the place
from which the employee is called and actually report to a work site. Neither changes in a
shift or work schedule shall constitute call-back work.
3. Compensation. An employee who is called back shall receive a minimum of two (2) hours
pay.
4. Work Performed at Place of Contact. An employee contacted by the department during
his/her off duty hours and required to perform services without leaving the place of contact
shall receive compensation for such time worked in the same manner such employees
receive scheduled overtime compensation. To be eligible for such compensation, employees
must be authorized and ordered by the District to perform such services.
5. Multiple Call-Backs. An employee who is contacted while serving a call back and is called
to another site for additional duties shall not be compensated for a second or subsequent call
14
back for this assignment. However, if the employee has left the work site, or sites, and is
actually returning, or has returned, to his/her original point of contact, and is then called
back again outside of the original two (2) hours minimum pay timeframe, the employee shall
be compensated for an additional call back.
6. Travel Time. For purposes of computing call-back pay, travel time from the employee’s
residence (place of contact) to their reporting station and return home shall be included in
the minimum call-back pay except that, if the employee is required to remain on duty until
the start of their regularly scheduled shift, return travel time to the employee’s residence will
not be paid. Pay for call-back situations shall be computed as follows: If the combined
travel time and work time is less than the minimum call-back time of two (2) hours, the
employee shall be paid the minimum two (2) hours of call-back time. If the combined travel
time and work time is more than the two (2) hours call-back time, pay shall be the actual
total of work time and travel time.
7. Rest Time. Employees that work more than three (3) continuous hours of call-back time
shall have eight (8) hours of rest time before reporting back to work (subject to the exception
discussed below). If the minimum rest time will result in the employee not being able to
report to work at their normal start time in the next work shiftperiod, the employee and
supervisor shall mutually coordinate a reasonable return to work time. In that event, the
employee will receive pay at the regular rate of pay for the required rest period only for
hours thatto the extent it overlaps with the start of the employee’s regularly scheduled work
shift. An employee may request additional rest time, beyond the minimum required, subject
to supervisor approval and may choose to either take unpaid time, use vacation, or take
compensatory time.
Notwithstanding the foregoing, if at the District’s discretion, after the call-back work is
completed, an employee is needed to work their regular shift because of lack of skilled
personnel prior to them having eight (8) hours of rest time or five (5) hours of rest time as
defined in Article 5, Section 5, B.4(b), the employee will be paid at one and one-half (1-1/2)
times his/her regular rate for hours worked in his/her regular shift on that day.
D. Report Time Pay.
Two Hours: An employee who reports for work on his/her regular shift and is then sent home
because of lack of work, inclement weather, or natural disaster shall receive two (2) hours pay at
his/her regular rate of pay and may supplement the remainder of the day with vacation,
compensatory time or unpaid time subject to supervisor approval. If an employee is sent home
after working two hours or more, he/she shall be paid only for the hours actually worked at
his/her regular rate of pay.
ARTICLE 5, SECTION 6: TEMPORARY ASSIGNMENTS AND OUT-OF-CLASS
APPOINTMENTS
1. Temporary Assignment Designation.
A. Assignment.
1.a. Temporary Assignment.
15
The General Manager or designee may approve a temporary assignmentadvancement of a
qualified employee assigned to perform duties of a class which is compensated at a rate
higher than such employee’s class when such position is temporarily vacant due to or the
incumbent is being absent therefrom. The temporary assignment must be for at least two (2)
weeks, but not over fifty-two (52) twenty-six (26) weeks.
2. Out-of-Class Appointment.
The General Manager or designee may assign an out-of-class appointment to an upgraded or
higher classification to a vacant position during recruitment for a regular appointment. Out-
of-class appointments are limited to 960 hours per fiscal year and must not exceed fifty-two
(52) weeks if appointment is in multiple fiscal years.
3. Modification of Duties.
The District General Manager or designee may, at its in his or her discretion,
maytemporarily modify the duties of the vacant position due to absence or during
recruitment, as District needs dictate.
B. Compensation.
b.
When either (a) an employee is temporarily assigned to perform duties of a vacant higher
class position due to absence or during recruitment, or (b) if the District temporarily
modifies the duties of a vacant position due to absence or during recruitment, resulting in an
employee performing some but not all of the duties that would be regularly performed in
such position, the District will pay a premium rate of at least five percent (5%) above the
employee’s salary in their current position. For employees assigned to perform modified
duties of a higher class, the employee will remain in his/her current class and the premium
pay shall be at least the difference between the rate of compensation in his/her current class
and that of the minimum salary of the range of the temporarily vacant class, whichever is
greater.
However, aAt no time will the temporarily assigned or out-of-class appointment employee
be paid a rate higher than the maximum of the range for the temporarily vacant class.
Employees on temporary assignments or out-of-class appointments will be compensated
from the first day of appointment, provided the assignment is for at least two (2) weeks. The
premium rate shall not apply to vacation or sick leave buyouts during the period of the
temporary assignment.
C. End of Assignment.
c.
At the conclusion of such temporary assignment or out-of-class appointment, the employee’s
rate of pay shall be returned to his/her rate of pay immediately prior to the temporary
assignment or out-of-class appointment, and adjusted for any merit increases or across-the-
board wage adjustment(s) which may have been made during the temporary assignment or
out-of-class appointment.
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D. Employment Termination During Assignment.
d.
An employee who is temporarily assigned to the duties of a higher class, and who terminates
District service during such assignment, shall be paid termination benefits at the rate the
employee was paid prior to the temporary assignment or out-of-class appointment, adjusted
for any wage adjustment(s) which may have been made during the temporary assignment or
out-of-class appointment.
ARTICLE 6 - ALLOWANCES FOR WORK-RELATED EXPENSES
ARTICLE 6, SECTION 1: MEAL ALLOWANCE
A. Overtime. The District will provide a meal for an employee who is authorized or ordered to
work, and does actually work three (3) hours or more of overtime as an extension of his/her
regularly assigned work shift.
ARTICLE 6, SECTION 2: SAFETY BOOTSHOE ALLOWANCE
A uniform boot/shoe allowance of up to onetwo hundred and fifty dollars ($1250.00) per pair shall
be provided for uniformed employees, as determined by the District.
The allowance is provided to reimburse the uniformed employee for an initial purchase and
subsequent reimbursement of replacement boots/shoes as needed and approved by the District in
accordance with the Procedures and Guidelines as outlined within the District’s Uniform Standards..
ARTICLE 6, SECTION 3: SAFETY GLASSES AND SPECTACLE KITS
A. Safety Glasses. Prescription safety glasses allowance of up to four hundred dollars ($400) per
pair will be provided for employees working in areas where eye protection is required at all
times. If it is medically necessary for an employee to wear prescription safety glasses that
exceeds the $400 limit, the District will reimburse the full amount, provided that the employee
obtains advanced District approval and submits a doctor’s note indicating the medical necessity.
The prescription safety glasses mustshall meet current ANSI/ISEA Z87-1 standards. The
District will purchasereimburse no more than one (1) pair of prescription safety glasses per
employee per fiscal year, unless the safety glasses were damaged due to a work-related incident
not caused by negligence. The District’s obligation under this section does not include special
tints or other features.
B. Spectacle Kits. Employees who are required to wear full-face respirators are eligible to receive
spectacle kits that consist of frames without the lenses to be fitted into the full- face respirators.
When the employee has the lenses fitted by their optometrist, the District will reimburse the
employee in the same manner set forth for prescription safety glasses. If an employee is unable
to find an optometrist who will fit lenses into frames supplied by the employee, the District will
facilitate and fund the fitting of lenses up to the reimbursement amount in this section.
C. Prescription. The employee is responsible for providing a current prescription before the glasses
or lenses are ordered.
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ARTICLE 7 - EMPLOYEE BENEFITS
ARTICLE 7, SECTION 1: PENSION (RETIREMENT PLAN)
The administration of the Pension Retirement Plan shall conform and be subject to California Public
Employees Retirement System (PERS) requirements and the California Public Employees’
Retirement Pension Reform Act of 2013 (PEPRA).
Retirement benefits and the Pre-retirement Option 2 Death Benefit are provided to eligible regular
employees under PERS.
A. Definitions.
1. New Member.
a. An individual hired on or after January 1, 2013 who has never been a member of any
public employee retirement system prior to January 1, 2013; or
b. An individual hired on or after January 1, 2013 who moved between retirement systems
without reciprocity; or
c. An individual hired on or after January 1, 2013 who moved between retirement systems
with more than a six month break in service (unless the individual left Otay Water
District and returned to Otay Water District employment).
2. New Employee.
a. An individual employed for the first time by any public employer on or after January 1,
2013; or
b. An individual employed for the first time by any public employer on or after January 1,
2013 and who was employed by another public employer prior to that date, but who was
not subject to reciprocity.
3. Current Member.
a. An individual hired before January 1, 2013; or
b. An individual hired on or after January 1, 2013, who is hired from another public agency
that has reciprocity with PERS and that did not have a break in service of more than six
(6) months.
B. Retirement Formula.
1. Hired on or after January 1, 2013 (New Members/New Employees):
The basis for computing employee retirement compensation shall be two percent (2%) at age
62 PERS Formula based on the employee’s 36 months of highest average annual
compensation, subject to the cap set forth in Government Code section 7522.10.
2. Hired before January 1, 2013 (Current Members):
The basis for computing employee retirement compensation shall be two point seven (2.7)
percent (2.7%) at age 55 PERS Supplemental Formula based on the employee’s single
highest year annual compensation.
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C. Employee Contribution.
1. Hired on or after January 1, 2013 (New Members/New Employees):
The employee shall pay fifty percent (50%) of the normal cost rate for the defined benefit
plan, subject to the cap set forth in Government Code section 20516.5.
2. Hired before January 1, 2013 (Current Members):
The employee shall pay eight percent (8%) percent of their annual pensionable
compensation toward their pension.
D. Special Compensation.
1. Holiday pay is reported for employees who work in positions that require scheduled staffing
without regard to holidays. If the employee is paid over and above the normal salary when a
holiday is worked, the additional pay is reported separately to CalPERS as special
compensation. This applies to both current and new members/employees.
2. Uniform Allowance.
Hired on or after January 1, 2013 (New Members/New Employees):
Uniform Allowance is not pensionable compensation and not reported to CalPERS as
special compensation.
Hired before January 1, 2013 (Current Members):
Uniform Allowance is reported for employees required to wear a uniform, although the cost
is absorbed by the District. These costs are reported to CalPERS as special compensation.
The annual cost of uniforms is divided by the number of participating employees to
determine the reportable amount, not to exceed thirty dollars ($30).
3. Temporary Assignment/Out-of-Class Appointment.
Hired on or after January 1, 2013 (New Members/New Employees):
Temporary Assignments or Out-of-Class Appointments to a vacant position due to an
absence or vacancy is not pensionable compensation and not reported to CalPERS as special
compensation.
Hired before January 1, 2013 (Current Members):
Temporary Assignments or Out-of-Class Appointments to a vacant position due to an
absence or vacancy is pensionable compensation and reported to CalPERS as special
compensation. However, when the duties of the vacant position are temporarily modified,
resulting in the employee performing some, but not all of the duties that would be regularly
performed in such position, the premium rate above the employee’s salary in their current
position is not pensionable compensation and not reported to CalPERS as special
compensation.
4. Educational Incentive.
Compensation received by employees in certain classifications as a part of the District’s
Recognition Program for completing certain educational certificates which enhance the
employee’s ability to do his/her job as defined by the Certification Incentive Plan HR
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Procedure, not to exceed 5% of the employee’s salary. This applies to both current and new
members/employees.
ARTICLE 7, SECTION 2: SHORT TERM/LONG TERM DISABILITY INSURANCE
Short-Term/Long-Term Disability Insurance is available to all full-time regular employees on the
first of the month following the hire date. The details of the plan are as set forth in a separate
booklet furnished to all eligible employees, is referenced only to provide additional information, and
is not incorporated into the MOU.
A. Premium. The premium is based on the employee’s salary and is paid by the District.
ARTICLE 7, SECTION 3: GROUP HEALTH AND DENTAL INSURANCE: ACTIVE
EMPLOYEES
A. Active Employees’ Health and Dental Insurance Eligibility. Regular full-time employees and
their eligible dependents are eligible for coverage under the District-selected medical and dental
insurance plans, which includes a Flexible Benefits Plan, effective the first of the month
following date of hire and upon proper application, acceptance, and continuous service. Regular
part-time employees and their eligible dependents are eligible for coverage effective the first of
the month following date of hire and upon proper application, acceptance, and continuous
service, except that the District’s contribution is limited to one-half (1/2) of the District’s
contribution as provided below. The medical and dental plan details are set forth in a separate
booklet furnished to eligible employees, is referenced only to provide additional information,
and is not incorporated into the MOU.
B. Health Insurance Coverage.
1. Dental Coverage. All eligible employees are required to enroll in the dental insurance plan
for the employee only.
2. Medical Coverage. All eligible employees must select from the following two (2) options:
Option 1: Waive Coverage
You may elect to waive coverage if you are covered by another group health insurance plan,
subject to plan provisions or District approval. You will be required to provide proof of
medical insurance coverage.
Option 2: Medical Insurance
You may elect to enroll in the District-selected medical plan in accordance with the
eligibility and enrollment guidelines. Married District employees are required to enroll on
the same medical plan as a family.
C. District/Employee Contribution.
The formula for District and employee medical and dental insurance contributions shall be:
100% of the premium paid by the District for employees.
88% of the District-selected premium paid by the District for dependents; 12% paid by the
employee.
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D. Reservation of Rights.
The coverage and benefits provided by this section shall only be valid for the term of this MOU
and are not guaranteed beyond that. Moreover, subject to state law governing the duty to meet
and confer, the District expressly reserves the right to amend or modify the District-selected
insurance plans at any time and employees acknowledge that they are not entitled to any specific
type of plan or coverage. The District’s decision to change or end the current plan may be due
to, but are not limited to, changes in federal or state laws or regulations governing medical or
dental insurance benefits, the provisions of a contract or policy involving an insurance company,
cost or coverage changes, or any other reason.
ARTICLE 7, SECTION 4: GROUP HEALTH AND DENTAL INSURANCE: RETIRED
EMPLOYEES
A. Retiree Health Insurance Guaranteed. The provision of health insurance and access to medical
and dental insurance for employees retiring who held full-time status during their employment
and their eligible dependents (as set forth below) are guaranteed for the life of the retiree and
spouse. However, the District reserves the right to make changes related to the overall
administration of the plan (e.g., changing health care providers) that do not have a major impact
on the overall plan structure. The medical plan details are set forth in a separate booklet
furnished to eligible employees, is referenced only to provide additional information, and is not
incorporated into the MOU.
B. Hired on or after January 1, 2013 (New Members/New Employees).
The employee shall pay the difference between 8.75% of annual pensionable compensation and
50% of the normal cost rate for the defined benefit plan to the District to offset the District’s
costs for post-retirement health benefits set forth in this section. Such payments to and
contributions by the District shall be subject to and comply with the requirements for the
District’s Prefunding Plan under the California Employer’s Retiree Benefit Trust Program (the
Trust).
Hired before January 1, 2013 (Current Members).
The employee shall contribute three quarters of one percent (0.75%) of annual pensionable
compensation to the District to offset the District’s costs for post-retirement health benefits set
forth in this section. Such payments to and contributions by the District shall be subject to and
comply with the requirements for the Trust.
C. Eligibility. Retirement through the District’s Pension Retirement Plan (currently CalPERS) is
required to be eligible to receive Retiree Health Insurance in addition to any other provisions set
forth herein. Additionally, Medicare-eligible retirees and retiree’s spouse are required to sign up
for Medicare Parts A and B at the retiree’s and/or spouse’s expense, if eligible, to be eligible for
District retiree health coverage.
D. Eligible Dependents. Eligible dependents include those dependents who were covered by the
District’s health insurance on the date the employee ceased active service with the District.
Dependents acquired after the employee retires are not eligible for coverage. If the retiree dies,
or an active employee dies, and such employee was eligible to be covered by health insurance as
a retiree on the date of death, then such employee’s dependent(s) will be eligible for District-
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paid continuation of health insurance coverage at 88% for the life of the retiree’s spouse. If
there are dependent children eligible for coverage, such unmarried children are eligible for
District-paid continuation of health insurance coverage at 88% up to age 19. Plan requirements
shall be set forth in a separate booklet furnished to all eligible retirees, is referenced only to
provide additional information and is not incorporated into the MOU. Dependent children may
be allowed to remain on the plan at the retiree’s own expense beyond age 19 as required by law.
E. Health and Dental Insurance Premium Contributions. District contributions towards health and
dental insurance premiums for retired employees who held full-time status during their
employment, shall be as follows; and medical and dental plan requirements shall be as set forth
in separate booklets furnished to all eligible retirees, are referenced only to provide additional
information, and are not incorporated into the MOU:
1. Regular Retirement.
a. Qualifications for represented employee coverage are:
The employee has attained age 55; and
The employee has completed twenty (20) years of continuous full-time service from
latest date of hire.
b. District/retiree contribution:
District and retiree health and dental insurance contributions shall be based on the
following formula:
Employee Only: 100% of the premium paid by the District.
Employee+1: 88% of the District-selected premium paid by the District;
12% paid by the employee.
Employee+2 or more: 88% of the District-selected premium paid by the District;
12% paid by the employee.
This shall be a fixed percentage and shall not change after the employee retires.
2. Early Retirement.
a. Early Retirement Due to Employee Disability.
An employee may retire between the ages of 50 and 54, if (1) the employee is disabled
and unable to work the usual duties of the employee’s position on a permanent basis or
long-term basis (subject to District approval), (2) has a minimum of ten (10) years of
continuous full-time District service from latest date of hire, and (3) also takes an early
retirement through the District’s retirement pension plan (CalPERS). The District will
make the final determination of disability eligibility. The District has sole discretion to
determine whether the employee is disabled to qualify for this benefit and to adopt
policies, regulations, and/or guidelines to aid in this determination. The Association
waives for the life of this agreement its right to negotiate the District’s ability to
determine who is disabled and to determine the policies, regulations and/or guidelines.
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b. Early Retirement Due to Employee Hardship.
An employee may retire between the ages of 50 and 54, if (1) the employee experiences
a severe hardship (subject to District approval), (2) has a minimum of twenty (20) years
of continuous full-time District service from latest date of hire, and (3) also takes an
early retirement through the District’s retirement pension plan (currently CalPERS). A
severe hardship may include a spouse who suffers from a serious and prolonged illness
or disability where the employee is required to care for the spouse or other similar
extraordinary circumstances. The District will make the final determination of hardship
eligibility. The District has sole discretion to determine whether the employee has a
qualified hardship to be eligible for this benefit and to adopt policies, regulations, and/or
guidelines to aid in this determination. The Association waives for the life of this
agreement its right to negotiate the District’s ability to determine who qualifies for this
benefit and to determine the policies, regulations and/or guidelines.
c. Benefit Level.
If an employee is permanently disabled or has a severe hardship as defined above, the
employee may be eligible for retiree health benefits provided they are an active employee
who has attained age 50 and has years of continuous service as defined above. The
employee and eligible dependents would receive a reduced contribution level toward the
District’s current retiree medical and dental benefit plan as follows:
Early Retirement Due to Disability or Hardship
Age at Time of Retirement District Fixed Percentage
Contribution Level
50 70%
51 76%
52 82%
53 88%
54 94%
If disability retirement or hardship is approved by the District, the percentage of the retiree’s
health benefit premium to be paid by the District will be determined based on the retiree’s
age at the time the retirement becomes effective, as demonstrated in the above table. The
District’s fixed percentage contribution will not increase over time. The same fixed
percentage will be applied to calculate the District’s portion for any qualified dependent(s).
ARTICLE 7, SECTION 5: LIFE INSURANCE: ACTIVE EMPLOYEES
Group Term Life Insurance is provided to regular full-time and regular part-time employees and
their eligible dependents. The details of the plan are as set forth in a separate booklet furnished to all
eligible employees, is referenced only to provide additional information, and is not incorporated into
the MOU.
A. Premiums. The premium is based on the employee’s coverage and is paid by the District. In
addition, an employee may elect to cover him/herself and eligible dependents for voluntary term
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life insurance. The full cost of this voluntary term life insurance is paid by the employee
through payroll deduction. The details of the plan are as set forth in a separate booklet furnished
to all eligible employees.
B. Reservation of Rights. The coverage and benfits provided by this section shall only be valid for
the term of this MOU and are not guaranteed beyond that. Morever, subject to state law
governing the duty to meet and confer, the District expressly reserves the right to amend or
modify the District-selected Group Term Life Insurance plan at any time and employees
acknowledge that they are not entitled to any specific type of plan or coverage. The District’s
decision to change or end the current plan may be due to, but are not limited to, changes in
federal or state laws or regulations governing life insurance benefits, the provisions of a contract
or policy involving an insurance company, cost or coverage changes, or any other reason.
ARTICLE 7, SECTION 6: DEATH BENEFIT
In the event of an employee’s death, any unpaid wages, accrued unused vacation, accrued unused
sick leave, accrued/unused birthday holiday, and/or accrued unused compensatory time shall be paid
to the beneficiary designated in the Group Term Life Insurance Beneficiary form filed in Human
Resources or as otherwise required by law.
ARTICLE 8 - PAID LEAVES
ARTICLE 8, SECTION 1: HOLIDAYS AND HOLIDAY COMPENSATION
The District recognizes the following fourteen (14) holidays:
1. New Year’s Day
2. Dr. Martin Luther King Jr’s. Birthday
3. Presidents Day
4. Cesar Chavez Day
5. Memorial Day
6. Independence Day
7. Labor Day
8. Veterans Day
9. Thanksgiving Day
10. Friday following Thanksgiving Day
11. Christmas Day
12. Two (2) Floating Holidays (see subsection “A” below)
13. Employee’s Birthday (see subsection “B” below)
A. Floating Holiday. Two (2) floating holidays shall be granted to employees to use in conjunction
with other holidays. To establish the date of this holiday, on or before October first (1st) of each
year, the Association shall notify the District of their preference for scheduling it. The District
will then, at its discretion, schedule the holiday on the date requested by the Association, if
consistent with and not detrimental to the District’s operations.
B. Employee’s Birthday. With advanced approval, Tthe employee’s birthday holiday may be used
on the date of the employee’s birthday, or, with advance approval, at any time after his/her
birthday (subject to the time limitations below). Employees will not be paid for unused birthday
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holidays. An employee must notify his/her supervisor when he/she would like to take his/her
birthday holiday. This holiday is to be used within twelve (12) calendar months from the date it
is granted.
C. Saturday and Sunday Holidays. Holidays falling on Saturday will be observed on the preceding
Friday and holidays falling on Sunday will be observed on the following Monday, which days
shall be considered as the designated holiday.
D. Eligibility for Holidays. In no event shall the employee receive holiday pay unless he/she is on
the payroll the day the holiday occurs and has worked or has paid service on his/her full,
regularly-scheduled shift the full day before and the full day after the holiday.
E. Compensation for Holidays.
1. Eligible full-time employees shall receive eight (8) hours pay for holidays, and eligible
regular part-time employees shall receive four (4) hours pay for holidays, regardless of the
day of the week on which the holiday falls, and regardless of whether it was worked or not.
While on Personal Leave, FMLA, CFRA Leave, or Pregnancy Disability Leave (PDL), an
employee will not be entitled to holiday pay.
2. Compensation for Working on a Holiday: In addition to subsection E (1) above, an FLSA
non-exempt employee who works on a holiday shall be compensated at time and one-half
(1-½) the employee’s regular hourly rate for all hours worked on that holiday.
3. Weekend Holidays: An employee who works on Christmas Day, New Year’s Day, and/or
Independence Day when these three (3) holidays fall on a weekend shall be compensated at
time and one-half (1-½) the employee’s regular rate of pay either on the Monday or Friday
upon which the holiday is observed or on the actual day of the holiday, whichever day
coincides with the day the employee works.
4. A non-exempt employee must use available accruals to supplement for an 8-hour holiday or
work one (1) additional hour during the work week to make up for an 8-hour holiday which
falls on an employee’s alternative nine (9) hour day schedule, or two (2) hours to make up
for an 8-hour holiday which falls on an employee’s alternative ten (10) hour day schedule,
such one (1) or two (2) hours will not be eligible for overtime compensation. The additional
hour(s) worked must be made up in the same work week (Monday – Thursday) as the
holiday.
ARTICLE 8, SECTION 2: VACATION
A. Eligibility. Vacation is paid time- off earned by eligible regular full-time employees. Regular
part-time employees shall earn fifty percent (50%) of the vacation credits earned by full-time
employees.
An employee’s vacation credits earned become available for use as it is accumulated on a daily
basis for actual hours paid in the payroll period and may be used beginning in the payroll period
following the payroll period within which it was earned.
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B. Earnings. Eligible employees earn vacation credit as follows:
Years of Continuous Service with the District Hour/Day Equivalent for Full-Time Employees
Over One (1) Year (26 Biweekly Pay Periods)
Up to Five Years 96 hours /12 Days
Six Years 104 hours/13 Days
Seven Years 112 hours/14 Days
Eight Years 120 hours/15 Days
Nine Years 128 hours/16 Days
Ten Years 136 hours/17 Days
Eleven Years 144 hours/18 Days
Twelve Years 152 hours/19 Days
Thirteen Years 160 hours/20 Days
Fourteen Years 168 hours/21 Days
Fifteen Years 176 hours/22 Days
Twenty Years 184 hours/23 Days
Vacation credit continues to accrue when an employee is on paid vacation or sick leave.
C. Maximum Balance. The maximum amount of vacation an eligible employee may accumulate is
four (4) times his/her annual rate of accrual. Employees of the District as of July 1, 1993 shall
have his/her existing vacation credits set aside or “banked” and the employee will have the
ability to use or cash-in these credits in accordance with the District Vacation Policy.
DE. Granting Requests. Vacations will, so far as practicable, be granted at the time requested by
the employee provided the employee has enough hours to cover the request. However, the
District may schedule and approve or deny vacations at its discretion to assure orderly operation
of the District.
EF. Use of Vacation Leave in Lieu of Sick Leave. If employee has used all available sick leave,
vacation credits may also be used by an employee for sick leave with prior approval by the
District.
FG. Terminal Payment of Vacation. An employee, at the time he/she terminates employment
with the District, shall be paid for any unused vacation credits at the employee’s rate of pay at
the time of leaving employment. Employees shall not be allowed to take vacation to extend
their date of termination.
Notwithstanding any other provision in this Article 8, Section 2(G), for employees designated as
Employees’ Field Unit and Administrative Employees’ Unit, an eligible employee (as defined in
the last sentence) who is a participant in the Otay Water District Terminal Pay Plan on the date
of his or her separation from District service, shall not be paid the monetary value of all
available vacation credit as provided in Article 8, Section 2(G) above but, in lieu of such
payment, the District shall make a monetary contribution in the amount of the monetary value of
the vacation credit, up to the lower of the amount due or the amount allowed by law, towards the
benefits provided for under the District’s Terminal Pay Plan, if any, as provided therein. An
eligible employee is a regular employee who is age 55 or older at the time of his/her termination
of employment or who terminates employment because of his/her death.
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GH. Returning Employees. If an employee terminates from his/her position at the District and
then returns to District employment within thirty-six (36) months, the employee will accrue
vacation on the schedule based on his/her years of service at the time he/she left the District.
ARTICLE 8, SECTION 3: SICK LEAVE
A. Eligibility. Sick leave is paid time-off for use as described herein, earned by eligible regular
full-time employees. Regular part-time employees shall earn fifty percent (50%) of the sick
leave credits earned by full-time employees.
An employee’s sick leave credits earned become available for use as they are accumulated on a
daily basis for actual hours paid in the payroll period and may be used in the payroll period
following the payroll period within which it was earned.
B. Earnings. Eligible employees earn sick leave credit as follows:
Years of Continuous Service with the District Hour/Day Equivalent for Full-Time Employees
Over One (1) Year (26 Biweekly Pay Periods)
Up to Five Years 64 Hours/8 Days
Over Five Years but less than Ten Years 80 Hours/10 Days
Ten Years 120 Hours/15 Days
Sick Leave credits will continue to accrue when an employee is on paid vacation or sick leave.
C. Allowable Use of Sick Leave. Sick leave shall be allowed and used for personal illness, injury,
medical appointments, and medical consultations and/or treatment, including hospitalization.
Sick leave may also be used to care for the illness, injury, medical appointments, medical
consultations and/or medical treatment of family members. Within a calendar year, an
employee may use an amount of sick leave, equal to or less than that which he/she accrues in six
months (i.e. one-half of his/her annual sick allotment) for family members. or, for an employee
who is a victim of domestic violence, sexual assault, or stalking, the purposes described in
subdivision (c) of section 230 and subdivision (a) of section 230.1 of the Labor Code.
D. Relationship to Other Leaves. To the extent that the employee’s own illness, illness of family
member or extended family member overlaps with any other form of leave (i.e., Kin Care, Paid
Sick Leave Law, Family Medical Leave Act or California Family Rights Act), the leave shall
run concurrently with each such leave.
DE. Use of Sick Leave in Lieu of Vacation Leave. If an employee has used all available vacation
leave, sick leave may, with advance notice and prior approval by the District, be used as
vacation.
EF. Definition of Family Member. Family members for the use of sick leave are defined as:
Child of the employee. “Child” is defined as a biological, foster or adopted child, stepchild,
legal ward, or a child of an employee or his/her spouse/registered domestic partner (as
defined in California Family Code §297) who is acting in loco parentis;
The employee’s Sspouse or registered domestic partner;
Parent.s of the employee or the employee’s spouse/registered domestic partner. Parent is
defined as a biological, adoptive, or foster parent, stepparent, or legal guardian of an
27
employee or the employee’s spouse or registered domestic partner, or a person who stood in
loco parentis when the employee was a minor child;
Grandparent;
Grandchild;
Sibling.
FG. Verification of the Proper Use of Sick Leave. The District may require verification of the
proper use of sick leave at any time. If the use of sick leave for illness or injury exceeds five (5)
consecutive days one-half (1/2) of the employee’s annual sick leave allotment (i.e., that which
he/she accrues in six months), the employee shall provide the District with a medical doctor’s
written verification of the illness or injury. The doctor’s written verification must include a
statement indicating that the employee is unable to work and whether there are any work
restrictions.
GH. Maximum Balance. The maximum sick leave balance for eligible employees shall be six
hundred (600) hours of sick leave credits. Employees of the District as of July 1, 1993 shall
have his/her existing sick leave credits set aside or “banked” and the employee will have the
ability to use or cash-in these credits in accordance with the District Sick Leave Policy.
H. Cash-In of Sick Leave Credits. An employee may request to cash-in portions of unused sick
leave under the following conditions:
1. Annually in December of each year an employee may elect up to one irrevocable request for pay
in lieu of sick leave in the next calendar year. A request may not exceed the employee’s accrued
sick leave at the time payment is made. The employee must select the month in which to
receive the pay-out.
2. The employee must maintain at least an eighty (80) hour balance after the cash-in occurs and
agrees to take a minimum of forty (40) consecutive hours of leave (this can include a
combination of vacation, sick leave, holiday hours, compensatory time, and/or flex schedule
when used consecutively) in that same calendar year. In the event an approved leave is canceled
by the District, the forty (40) consecutive hour requirement is waived.
3. The request is irrevocable and shall state the number of hours to be paid in lieu of sick leave.
4. Request will be paid on the pay date of the first pay period of the month for which the pay-out is
requested. The pay-out will be at the employee’s regular base rate of pay at the time of the pay-
out.
5. In cases where an employee has an unforeseeable emergency, a request shall be submitted to
Human Resources. The General Manager or designee may approve modifying an employee’s
request for pay in lieu of sick leave or approve a request if an election was not made for that
calendar year to be reimbursed for any or all of the required eighty (80) hour balance. An
unforeseeable emergency means a severe financial hardship resulting from: (a) sudden and
unexpected illness or accident of the employee or his/her dependent, (b) loss of employee’s
property due to casualty, or (c) other similar extraordinary signficant event.
I. Terminal Payment of Sick Leave. An employee, at the time he/she terminates employment with
the District, shall be paid for any unused sick leave credits at the employee’s rate of pay at the
time of leaving employment. Employees shall not be allowed to take sick leave to extend their
date of termination.
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Notwithstanding any other provision in this Article 8, Section 3(I), an eligible employee (as
defined in the last sentence) who is a participant in the Otay Water District Terminal Pay Plan
on the date of his or her separation from District service, shall not be paid the monetary value of
all available sick leave balance otherwise payable under this Article 8, Section 3(I) but, in lieu
of such payment, the District shall make a monetary contribution in the amount of the monetary
value of the sick credit, up to the lower of the amount due or the amount allowed by law,
towards the benefits provided for under the District’s Terminal Pay Plan, if any, as provided
therein. An eligible employee is a regular employee who is age 55 or older at the time of his/her
termination of employment or who terminates employment because of his/her death.
J. Returning Employees. If an employee terminates from his/her position at the District and then
returns to District employment within thirty-six (36) months, the employee will accrue sick
leave on the schedule based on his/her years of service at the time he/she left the District.
ARTICLE 8, SECTION 4: JURY DUTY (COURT LEAVE)
A. Definition. Jury duty (court leave) is paid leave granted by the District to an eligible employee
to enable that employee to fulfill his/her duty as a citizen to serve as a juror, or as a prospective
juror, or to serve as a witness in a court action to which the employee is not a party, before a
Federal, Superior or Justice Court located within San Diego County.
B. Eligibility. An employee who has received an order from a court is eligible for court leave.
Court leave is not granted when the employee is paid an expert witness fee or when attendance
is part of the employee’s official District duties. The employee must notify his/her supervisor
immediately of any notice he/she receives to report for jury duty. The District may direct the
employee to reschedule to ensure orderly operation of the District. The employee shall furnish
the District with a statement, letter or timecard from a court official certifying the employee’s
service as a juror or prospective juror.
C. Court Leave Shall be Limited to and Subject to the Following:
1. Required attendance before Federal, Superior and Justice Courts located within the County
of San Diego. Immediately after the employee is dismissed from jury service the employee
must report to their supervisor. Employees will be provided reasonable travel time
depending on location of jury service and mode of transportation taken. If there would be
two (2) or more hours left in the work shift by the time the employee would be able to report
to work, the employee shall either report to work or request to use vacation or compensatory
time off for the remainder of the day, with supervisor approval. If there are less than two (2)
hours left in the work shift, employee can go home and report to the next regular shift and
receive pay at regular rate of pay.
2. Jury service on a regular workday. Payment shall not be made for jury duty performed on an
employee’s regular day off. Similarly, payment for jury service on Saturdays or Sundays
shall not be made unless those are regularly scheduled workdays for the employee and the
employee was required to report to jury duty or for hours in excess of the employee’s
regularly scheduled workday, work week or work period. Refer to the Alternative Work
Schedule procedure for additional guidelines.
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3. Attendance that is required as a result of a notice to appear from the Jury Commissioner. If
an employee volunteers to serve on jury duty even though the local rule of the court does not
require it, the District will not pay the employee’s salary for the period of such service.
However, with advance District approval, the employee may use accrued vacation, sick
leave, or compensatory time to compensate him/her for the hours missed while on voluntary
jury duty. No unpaid leave shall be granted for voluntary jury duty without prior approval of
the employee’s supervisor.
ARTICLE 8, SECTION 5: BEREAVEMENT LEAVE
A. Definition. Bereavement leave is paid leave granted by the District which is available to an
employee at the time of death or funeral of a member of the employee’s immediate family as
defined below.
B. Eligibility. Regular employees are eligible for bereavement leave. Employees on a leave of
absence status are not eligible.
C. Amount of Leave. Bereavement leave shall not exceed three (3) regularly scheduled work days
for the death and funeral of a member of the employee’s immediate family. However, an
employee shall be entitled to use two (2) days of sick leave, vacation, or compensatory time (if
available) to supplement their bereavement leave. Regular part-time employees shall be eligible
for fifty percent (50%) of the amount of leave granted to full-time employees.
D. Immediate Family. For purposes of bereavement leave only, immediate family is defined as:
Spouse, registered domestic partner (as defined in California Family Code §297), parent,
stepparent, parent of current or deceased spouse or registered domestic partner, child, stepchild,
grandchild, grandparent, brother, or sister.
E. Verification of Proper Use of Bereavement Leave. If requested by the District, application for
paid bereavement leave must be supported by satisfactory evidence of death and family
relationship.
ARTICLE 8, SECTION 6: SCHOOL AND CHILD CARE PROVIDER ACTIVITIES LEAVE
A. Definition. School and Child Care Provider Activities Leave is the allowable use of the
employee’s existing leave credits to attend school or child care provider activities to enroll or re-
enroll a child in a school or with a licensed child care provider, or to address a school or child
care provider emergency.
B. Eligibility. A regular employee who is a parent, guardian, stepparent, foster parent or
grandparent with custody, or who stands in loco parentis, of a child enrolled in grades K through
12 of a public or private school, or in a licensed child day care facility, is eligible for School or
Child Care Provider Activities Leave.
C. Amount of Leave. An employee may use as School or Child Care Provider Activities Leave, up
to forty (40) hours of his/her existing vacation, sick leave, or compensatory time balance per
calendar year, but not more than eight (8) hours in any one (1) calendar month, regardless of the
number of children the employee may have. The eight (8) hour per month limitation does not
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apply for leave to address a school or child care provider emergency. If the employee does not
have sufficient paid leave available, he/she shall be allowed to take unpaid personal leave.
D. Required Advance Notice. Employees are required to give forty-eight (48) hours advance
notice, unless it is a school or child care provider emergency as indicated in “F” below, of their
desire to take School or Child Care Provider Activities Leave. Advance notice of less than
forty-eight (48) hours may only be given with approval by the District. The District may also
require that the employee provide documentation verifying participation in school or child care
provider activities.
E. Parents Employed by District. If both parents of a child are District employees, only the parent
who first gives notice shall be automatically permitted to take School or Child Care Provider
Activities Leave. The other parent may be permitted to take School or Child Care Provider
Activities Leave simultaneously if the District approves the requested time off.
F. Definition of School or Child Care Provider Emergency. An emergency means that an
employee’s child cannot remain in school or with a child care provider due to one of the
following:
The school or child care provider has requested that the child be picked up, or has an
attendance policy, excluding planned holidays, that prohibits the child from attending or
requires the child be picked up from the school or child care provider.
Behavioral or discipline problems.
Closure or unexpected unavailability of the school or child care provider, excluding
planned holidays.
A natural disaster, including, but not limited to, fire, earthquake, or flood.
A. Definition. School Activities Leave is the allowable use of the employee’s existing leave credits
to attend school activities.
B. Eligibility. A regular employee who is a parent, guardian, or grandparent with custody of a
child attending a licensed child day care facility or kindergarten, or enrolled in grade school
through grade twelve, is eligible for School Activities Leave.
C. Amount of Leave. An employee may use as School Activities Leave, up to forty (40) hours of
his/her existing vacation, sick leave, or compensatory time balance per calendar year, but not
more than eight (8) hours in any one (1) calendar month regardless of the number of children the
employee may have. If the employee does not have sufficient paid leave available, he or she
shall be allowed to take unpaid personal leave.
D. Required Advance Notice. Employees are required to give reasonable advance notice of their
desire to take School Activities Leave, and in no event shall notice be less than forty-eight (48)
hours advance notice without approval by the District. The District may require that the
employee provide documentation verifying participation in school activities on a particular date
and time.
E. Parents Employed by District. If both parents of a child are District employees, only the parent
who first gives notice shall be automatically allowed to take School Activities Leave; however,
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the other parent may also be allowed to take such leave simultaneously upon approval by the
District for the requested time off.
ARTICLE 8, SECTION 7: MILITARY LEAVE
The administration of Military leave shall conform to both state and federal laws including, but not
limited to, the requirements of the California Military & Veterans Code and the federal Uniformed
Servides Employment and Reemployment Rights Act of 1994 (USERRA).
A. Definition and Eligibility. Military Leave (both Active and Temporary) is granted to an
employee who is or becomes a member of the armed forces, militia, National Guard or Naval
Militia, or the organized reserves of any of the same. Such employee shall be entitled to the
applicable leaves of absence and employment and reemployment rights and privileges provided
by the Military & Veterans Code of the State of California and the USERRA.
B. Required Advance Notice. The employee must provide reasonable advance notice of the need
for Military Leave and must provide the District with a copy of all military orders.
C. Compensation of Temporary Military Leave. The length of Temporary Military Leave (for
training, as opposed to active duty) shall be as provided and in accordance with California
Military & Veterans Code requirements including, but not limited to, section 395.
Compensation for Temporary Military Leave shall be provided for up to a two (2) week period
in any one (1) calendar year, as follows: the District will pay the difference between the
employee’s District salary and compensation he/she receives from the government for military
services rendered. The employee will receive pay from the District at such time he/she submits
a statement to the Payroll Department verifying compensation received from the government.
D. Compensation for Active Military Leave. Employees eligible under California Military &
Veterans Code sections 395.01, 395.02, or 395.05 shall receive their salary or compensation as a
public employee for the first thirty (30) calendar days of any eligible absences, subject to the
restrictions set forth in the applicable statute. For employees ineligible under the
aforementioned statutes and for eligible employees beyond the thirty (30) day period, the
District will pay the difference between the employee’s District salary and compensation he/she
receives from the government for military services rendered. The employee will receive pay
from the District at such time he/she submits a statement to the Payroll Department verifying
compensation received from the government.
ARTICLE 8, SECTION 8: FAILURE TO RETURN FROM LEAVE
Except as otherwise provided by law including, but not limited to, federal and state provisions
related to return from Military Leave, failure by an employee to return to duty within two (2) days of
the date he/she is scheduled to return from any type of leave shall be considered an automatic
resignation and the employee shall be notified of his/her automatic resignation from District
employment. The District will consider evidence of extenuating circumstances if it is submitted by
the employee to the District within ten (10) calendar days of the postmark of the District notice.
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ARTICLE 9 - CASH-IN OF VACATION AND/OR SICK LEAVE CREDITS
ARTICLE 8, SECTION 2: VACATION, D: Cash-In of Vacation Credits
Cash-In of Vacation and/or Sick Leave Credits. An employee may request to cash-in portions of
unused vacation and/or sick leave under the following conditions:
1. Annually in December, of each year an employee may elect one (1) irrevocable request for pay
in lieu of vacation and/or sick leave hours in the next calendar year and the request is limited to
the amount that is earned in the following calendar year for each type of leave (vacation or sick
leave). A request may not exceed the employee’s accrued balances. vacation at the time
payment is madeThe employee must select the month in which to receive the payment. pay-out.
2. The employee must maintain at least an eighty (80) hour balance after the cash-in occurs and
agrees to take a minimum of forty (40) consecutive hours of leave (this can include a
combination of vacation, sick leave, holiday hours, compensatory time, and/or flex schedule
when used consecutively) in that same calendar year. In the event an approved vacation is
canceled by the District, the forty (40) consecutive hour requirement is waived.
3. The request is irrevocable and once submitted cannot be changed or cancelled. The request shall
state the number of hours of vacation and/or sick leave to be paid in lieu of vacation.
4. Request for cash-in of vacation and/or sick leave will be paid on the pay date of the secondfirst
pay period of the month for which the payment pay-out is requested. The payment pay-out will
be at the employee’s regular base rate of pay at the time of the cash-inpay-out, excluding
temporary assignments or out-of-class appointments.
5. In cases where an employee has an Uunforeseeable Eemergency, irrespective of whether an
annual cash-in election has been submitted or paid out, a request for an emergency cash-in
shallcan be submitted to Human Resources.
a. The request shall include: (i) a description and documentation of the Unforeseeable
Emergency, (ii) documentation supporting the amount of money necessary to meet the
emergency, (iii) the number of accrued hours needed to meet the emergency (limited to the
accrued hours available at the time of the request), and (iv) documentation supporting when
payment for the emergency is necessary.
b. An Uunforeseeable Eemergency means an unanticipated emergency caused by an event
beyond the employee’s control that would result in asevere financial hardship to the
employee if the requested payment were not permitted. resulting from: (a) a sudden and
unexpected illness or accident of the employee or his/her dependent, (b) loss of employee’s
property due to casualty, or (c) other similar extraordinary significant event.
c. The General Manager or designee will consider all requests which may include (i) may
approve modifying an employee’s annual election (if the election has not yet been paid out),
request for pay in lieu of vacation hoursor (ii) approvinge an emergency election (whether or
not an annual election has been submitted or paid out), request if an election was not made
for that calendar year(iii) to being reimbursed for any or all of the required eighty (80) hour
balance (if needed for the emergency), and (iv) may waive waving the requirement that the
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employee take a minimum of forty (40) consecutive hours of leave in the calendar year (if
needed for the emergency).
d. An employee may receive cash payment of accruals (whether sick, vacation, or a
combination of both) due to an unforeseeable emergency only once per calendar year. In
addition, the amount of the payment may not exceed the amount needed to meet the
emergency.
ARTICLE 910 - UNPAID LEAVES
ARTICLE 910, SECTION 1: FAMILY MEDICAL LEAVE, PREGNANCY DISABILITY LEAVE
AND KIN CARE
The administration of Family Medical Leave shall conform to the requirements of applicable state
and federal family leave acts including, but not limited to, the Family and Medical Leave Act of
1993 and the California Family Rights Act, as set forth in the District’s Family Medical Leave,
Pregnancy Disability Leave, and Kin Care Leave Policy.
ARTICLE 910, SECTION 2: NON-WORK-RELATED MEDICAL LEAVE
A. Eligibility and Length of Leave. An employee who has twelve (12) months of service, which
service need not be consecutive, and has worked at least 1,250 hours during the twelve (12)
months immediately prior to the leave, shall be eligible to request Non-Work-Related Employee
Medical Leave for up to six (6) months under the same conditions as applies to Article 9,
Section 1, Family Medical Leave.
B. Reinstatement.
1. Within Twelve Weeks. The District shall reinstate the employee who returns within twelve
(12) weeks of commencement of leave to his/her former position or to an equivalent position
as determined by the District, with equivalent pay, benefits, status and authority.
2. After Twelve Weeks. For an employee who returns after twelve (12) weeks from
commencement of leave, the District may return the employee to his/her former position,
unless the position is no longer available. In the event the District at its discretion,
eliminates the position or fills it while the employee is on leave, the District shall notify the
employee on leave in writing at least two (2) weeks prior to eliminating or posting the
position.
ARTICLE 910, SECTION 3: WORK-RELATED DISABILITY LEAVE
A. Definition. Work-Related Disability Leave is unpaid leave provided to an employee on
Workers’ Compensation Temporary Disability Benefits for a period of up to six (6) months per
injury for the purpose of recovering from, and receiving treatment for, a work-related disability.
Work-related Disability Leave shall run concurrently with Family Medical Leave if the purpose
for the leave qualifies under the Family and Medical Leave Act and/or the California Family
Rights Act. An employee is eligible for only one six-month period of leave for any one injury or
illness.
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The provisions of this section are not intended to conflict with and are subject to applicable state
and federal disability-related regulations and procedures including, but not limited to, the
Americans with Disabilities Act and the Fair Employment and Housing Act.
B. Maintenance of Benefits During Work-Related Disability Leave. During Work-Related
Disability Leave, the District shall maintain the following benefits for the employee and the
employee’s eligible dependents under the same conditions as coverage would have been
provided if the employee had been continuously employed:
Medical Insurance,
Dental Insurance,
Life and AD&D Insurance, and
Long-Term Disability (LTD) Insurance.
If the employee elects to continue the optional life insurance and/or the flexible benefits
program, the employee shall be required to pay the premiums by payroll deduction or direct
payment to the District. At the beginning of the leave period, the employee will be given written
notice of the amounts and option of either payroll deduction or direct payments. Such employee
contribution amounts are subject to any changes in rates that occur while the employee is on
leave.
While on Work-Related Disability Leave, an employee shall earn sick leave and vacation credit
and will be entitled to pay for holidays.
Further, while on Work-Related Disability Leave, the employee’s in-range date will be extended
by the number of days following the first sixty (60) calendar days of leave taken.
C. Reinstatement.
1. Return Prior to Six Months. At the conclusion of a Work-Related Disability Leave that has
not exceeded six (6) months in duration, and provided that the employee’s attending
physician verifies that he/she is fully able to resume all of the duties and responsibilities of
the position, and if such position exists, an employee shall be returned to the duties of the
position within the classification to which he/she was assigned prior to the leave.
2. Status of Leave at Six Months. If, at the conclusion of six (6) months from the first day of
injury or illness, the employee remains unable to return and resume the duties and
responsibilities of his/her position, the District may consider his/her position vacated and
take the necessary steps to fill it. The employee may request Personal Leave. The District
may then place the employee on a Personal Leave of Absence not to exceed six (6) months.
In the event the District in its discretion, eliminates the position or fills it while the employee
is on leave, the District shall notify the employee in writing at least two (2) weeks prior to
eliminating or posting the position.
ARTICLE 910, SECTION 4: PERSONAL LEAVE
A. Eligibility. An employee who has exhausted all other available District leave or a new hire who
is not yet eligible for District leave shall be eligible to request unpaid Personal Leave of up to
six (6) months.
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B. Requests. The District may grant Personal Leave for emergency or other necessary conditions,
and such requests shall be subject to review to determine if the leave serves the best interest of
the District, subject to the following conditions:
1. During the leave, the employee and his/her eligible dependent(s), may continue group
medical and dental coverage for a limited period of time at his/her own expense in
accordance with Consolidated Omnibus Budget Reconciliation Act (COBRA) guidelines.
2. Sick leave and vacation credits will not accrue during Personal Leave.
3. The employee’s in-range date will be extended by the number of days following the first
sixty (60) calendar days of leave taken.
4. Upon return from leave, the District may return the employee to his/her former position,
unless the position is no longer available. In the event the District, at its discretion,
eliminates the position or fills it while the employee is on Personal Leave, the District shall
notify the employee in writing at least two (2) weeks prior to eliminating or posting the
position.
ARTICLE 910, SECTION 5: FAILURE TO RETURN FROM LEAVE
Except as otherwise provided by law including, but not limited to, federal and state provisions
related to return from Military Leave, failure by an employee to return to duty within two (2) days of
the date he/she is scheduled to return from any type of leave shall be considered an automatic
resignation and the employee shall be notified of his/her automatic resignation from District
employment. The District will consider evidence of extenuating circumstances if it is submitted by
the employee to the District within ten (10) calendar days of the postmark of the District notice.
ARTICLE 1011: WORKPLACE SAFETY
A. Commitment to Safety. The District will continue to provide for the workplace safety and
health of its employees and to maintain an effective Safety and Loss Control Program. It is the
responsibility of all employees to follow all safety practices, rules, and regulations and report all
injuries to their supervisor.
B. Safety Committee. The District may convene an Employee Safety Committee to review and
discuss safety features, methodologies, and equipment.
C. Reporting Safety Concerns. It is the obligation of all employees to immediately report any
condition that he/she believes to be unsafe. The District will conduct a prompt investigation and
correct any unsafe conditions found to exist.
ARTICLE 1112 - PERSONNEL PRACTICES
ARTICLE 1112, SECTION 1: PERSONNEL FILES
An employee may inspect and request copies of his/her personnel file with the exception of
references and all materials obtained from other employers and agencies before he/she was hired.
An employee shall make a request to inspect or receive a copy of his/her file at least forty-eight (48)
hours in advance of such inspection. In order to preserve the integrity of personnel files, the District
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may require inspections to be made in the presence of the Human Resources Manager or his/her
designee. The District shall keep documents regarding the processing of a grievance separate from
the employee’s personnel file, except that the District may place in the personnel file any document
that would normally be a part of the file that relate to change in pay, etc. in the absence of a
grievance.
ARTICLE 1112, SECTION 2: LAYOFF PROCEDURE
The General Manager may lay off, in accordance with law, any employee because of lack of
appropriate funds, curtailment or lack of work, or other reasons at his or her discretion. An
employee terminated because of the elimination of the employee’s position or a reduction in the
workforce (layoff) shall receive ten (10) working days notice or ten (10) days’ pay. The District
shall determine whether the employee shall receive notice or pay. The District shall also provide
the Association with twenty (20) working days notice prior to the layoff to allow the Association to
meet and confer over the impact of the layoff.
The layoff process shall be administered in accordance with the following:
1A. Order of Layoff. Except for employees who volunteer to be laid off, layoff shall be by
classification within each department. The District may layoff a volunteer for layoff at any
point. Within each classification, employees will be selected for layoff based on seniority, as
defined below, with the lowest seniority ratings being laid off first. In cases where the District
determines that seniority is equal between two or more employees, performance, as determined
by a combination of factors including, but not limited to, past performance and productivity (as
evidenced by, among other factors, the employee’s performance evaluations), qualifications,
attitude, attendance, and punctuality, will be the deciding factor, with the lowest performance
ratings being laid off first. Employees on leave shall be laid off in the same manner as active
employees.
2B. Calculation of Seniority Layoff Rating. Seniority is defined as the employee’s total number of
months of continuous District employment from the employee’s most recent date of hire. All
seniority is lost upon the employee’s resignation or dismissal. The employee’s seniority layoff
rating equals one (1) point for each month of continuous paid service, exclusive of all unpaid
leaves or periods of suspension.
a.1. Return to Former Class. In the event of a layoff, employees who have been promoted during
their service with the District may demote to a former classification in their career series
they formerly held, if there is a vacancy.
b.2. Reemployment. A regular employee who is laid off shall be placed on a
Reemployment List for the position from which he/she was laid off. Employees on the
Reemployment List shall have preference over new hires. Vacancies to be filled shall be
first offered to individuals on the Reemployment List who filled a position in the same
classification as the vacancy to be filled. Employees on layoff shall be offered
reemployment in the reverse order of layoff, provided no intervening factors have occurred
which change the ability of the employee to perform the offered employment. The employee
must still meet all necessary requirements for the position to which he or she is to be
reemployed, with or without reasonable accommodation.
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A laid off employee shall be removed from the Reemployment List for any of the following
reasons:
a. The expiration of six (6) months from the date of placement on the list.
b. Reemployment in any regular position.
c. Failure to respond within ten (10) calendar days of the postmark of a registered letter
notifying the employee of the availability of reemployment.
d. Failure to report to work within ten (10) calendar days of the postmark of a registered
letter containing a notice of reemployment.
e. A request by the employee that his/her name be removed from the list.
ARTICLE 1112, SECTION 3: JOB POSTING
Employment announcements for regular positions will be sent via email to all District employees
and shall be posted on the District website for a period of not less than seven (7) calendar days. The
notice shall remain posted until the date of the deadline.
ARTICLE 1112, SECTION 4: PERFORMANCE EVALUATION
The performance of regular employees is generally evaluated once in each twelve (12) month
period. An evaluation may be prepared at the time a regular employee is promoted to a different
classification for the time the employee served in his/her former classification. A District-generated
Performance Evaluation may be issued at any time. The employee shall be furnished with a copy of
his/her final Performance Evaluation form.
ARTICLE 1112, SECTION 5: USE OF DISTRICT VEHICLES
Except as provided in this section, District vehicles may be used by employees only for conducting
District business.
A. Lunch Purchase Stops. An employee driving a District vehicle may stop to purchase lunch
food/beverages as follows:
1. The stop is on a direct route to/from the District and the employee’s assigned work site, or
on a direct route between two assigned work sites.
2. The use of District vehicles shall not extend lunch periods. Time spent for lunch purchase
stops will be deducted from the employee’s lunch period.
3. An employee may leave a field work site to buy food/beverages only if the employee can
leave the work site, return, and eat his/her meal within the time provided for the lunch
period.
ARTICLE 1213 - GRIEVANCE PROCEDURE
A. Definition.
1. A grievance is defined as an allegation by an employee that the District has failed to provide
a condition of employment that is established by this Memorandum of Understanding, or an
appeal of a disciplinary termination, reduction in salary, demotion, or suspension of more
than three (3) days. A grievance filed under this definition shall have the right to be
processed up to Step Three: Binding Arbitration.
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2. A grievance is also defined as an appeal of a disciplinary suspension of three (3) days or less
or of a letter of reprimand. A grievance filed under this definition shall only have the right
to be processed up to Step Two: Review by the General Manager.
B. Exclusions.
This grievance procedure shall not apply to:
1. Matters covered by the District Employer-Employee Relations Policy;
2. Matters over which the Public Employment Relations Board (PERB) has jurisdiction;
3. The substance of Performance Evaluations;
4. Matters concerning the District’s self-funded medical and dental benefits for which appeal
procedures are contained in the plan documents;
5. Oral warnings or counseling;
6. Employee recognition programs;
7. Concerning any other subject, unless the subject is covered by the expressed terms of this
Memorandum of Understanding.
C. Stale Grievance.
A grievance shall be void unless filed in writing within twenty (20) days from the date upon
which the District is alleged to have failed to provide a condition of employment which has been
established by this Memorandum of Understanding, or within twenty (20) days from the time an
employee might reasonably have known of the alleged failure, or within twenty (20) days from
receipt by the employee of notice of intent to render formal discipline.
For purposes of this Procedure, “day” is defined as any day upon which the administrative
offices of the District are open for regularly scheduled business. In no event shall a grievance
include a claim for money relief for more than a thirty (30) day period prior to the date the
grievance was filed.
D. Informal Discussion with Employee’s Supervisor.
Before proceeding to Step One of the formal grievance procedure, except when discipline has
been rendered, an employee shall discuss his/her grievance with his/her immediate supervisor in
private; outside the presence of any other person and attempt to work out a satisfactory solution.
If the employee and his/her supervisor cannot work out a satisfactory solution, the employee
may choose to represent himself/herself individually without the involvement of the
Association, or he/she may request the assistance of an Association Representative to write and
formally present the grievance.
E. Grievance Procedure Steps.
1. Step One: Immediate Supervisor
If the employee chooses to formally pursue his/her grievance after he/she has met with
his/her supervisor as required in Subsection D of this Procedure, he/she shall present the
written grievance to his/her immediate supervisor within the time limit specified in
Subsection C of this Procedure.
39
The written grievance shall be submitted on the District form and shall specify each Article,
Section, and/or Subsection of the Memorandum of Understanding that is alleged to have
been violated by the District and shall specify dates, times, places, and persons, and other
facts necessary to a clear understanding of the matter being grieved. In cases of disciplinary
action, the written grievance shall state as a ground(s) for the appeal that the disciplinary
action is inaccurate, unduly severe, and/or unfair, and set forth the facts supporting such
ground(s). The grievance shall also state the remedy sought. If the grieving employee fails to
provide the required information, or state a ground for challenging disciplinary action, the
District may return the grievance to the employee and may refuse to process the grievance
until the information is furnished. The Grievance Procedure time limits will not be extended
for this purpose. However, the time limits may be extended by mutual agreement of the
parties.
The immediate supervisor shall return a copy of the written grievance to the employee with
his/her answer thereto in writing within ten (10) days of receipt of the written grievance. If
the grievance is not resolved at Step One, the employee may appeal the grievance to Step
Two no later than ten (10) days from receipt of the supervisor’s answer.
2. Step Two: General Manager
A grievance appealed to the General Manager shall include a copy of the original grievance
and a clear, concise statement of the reasons for the appeal. If requested, the grievant will be
granted the right to present his/her case orally in addition to the written appeal. The General
Manager or his/her designee shall review the grievance in an attempt to resolve it and shall
communicate the decision to the grievant within ten (10) days of receipt of the appeal. This
is the final step for grievances defined under Section A (2) of this Grievance Procedure.
However, the time limits herein may be extended by mutual agreement of the parties.
3. Step Three: Arbitration
If the General Manager or his/her designee’s decision does not resolve the grievance, and the
grievance falls under the definition in Section A (1) of this Procedure, the grievant may,
within ten (10) days of receipt of the General Manager’s decision, submit a request in
writing to the Association to submit the grievance to arbitration. Within twenty (20) days of
the grievant’s receipt of the decision of the General Manager or his/her designee, the
Association shall inform the District if they desire that the grievance be arbitrated.
F. Selection of Arbitrator.
The arbitrator shall be selected by mutual agreement between the District and the Association. If
agreement is not reached on an arbitrator, the parties shall request the State Mediation and
Conciliation Service to supply a list of seven (7) qualified arbitrators. The parties shall then
alternately strike names from the list until only one (1) name remains, and that person shall
serve as the arbitrator. If the parties are unable to agree which party will make the first strike,
they shall flip a coin and the winner shall decide which party will make the first strike.
If either the District or the Association so requests, a separate arbitrator shall be selected using
the process in this section to hear the question of arbitrability of the grievance. No hearing on
the merits of the grievance may be conducted until the issue of arbitrability has been decided.
40
G. Submission of the Issue to the Arbitrator.
The parties will jointly prepare a statement defining the issue to be submitted to the arbitrator.
If agreement is not reached on this statement, each party will submit its own statement defining
the issue.
H. Duty of the Arbitrator.
It shall be the duty of the arbitrator to hear and consider evidence submitted by the parties and to
thereafter make written findings of fact and a disposition of the grievance, which shall be
binding. On all issues except appeals of disciplinary action, the grievant shall bear the burden of
proof. The decision of the arbitrator shall be based solely on the interpretation of the provisions
of the Memorandum of Understanding applicable to the grievance and he/she shall not add to,
subtract from, modify or disregard any of the terms or provisions of the Memorandum of
Understanding.
In appeals of disciplinary action, the arbitrator’s authority shall be limited to determining
whether the subject disciplinary action complied with the procedural rules governing the pre-
discipline process set forth in the District’s Discipline Policy and Procedure and shall not extend
to whether the conduct in question constitutes just cause for discipline.
The provisions for arbitration are not intended and shall not be construed to empower an
arbitrator to change any condition of employment specifically covered by the Memorandum of
Understanding or to revise, modify or alter in any respect, any provision contained in the
Memorandum of Understanding.
I. Payment of Costs.
Each party to a hearing before an arbitrator shall bear his/her own expenses in connection with
the arbitration. All fees and expenses of the arbitrator shall be borne one-half (1/2) by the
District and one-half (1/2) by the Association.
Either party may request a certified court reporter to record the arbitration hearing. The cost of
the court reporter shall be paid by the party requesting the reporter. The cost of a transcript of
the hearing shall be borne by the party requesting it.
J. Effect of Failure of Timely Action.
Failure of the employee to file an appeal within the required time period at any step shall
constitute an abandonment of the grievance, subject to the provisions of Government Code
section 3505.8. If the District fails to respond within the required time limit at any step, the
District shall be considered to have denied the grievance at that step as of the last day for
response. The grievant’s time to proceed to the next step, if applicable, shall commence
accordingly.
Failure of the grievant to timely and diligently prosecute his or her arbitration shall constitute an
abandonment of the arbitration. Any arbitration shall be scheduled within two (2) months and
heard within six (6) months from the date the Association informed the District of their desire
that the grievance be arbitrated pursuant to Subsection E(3) of this Procedure. Any extension of
41
that time shall be only by mutual agreement of the parties, unless it is due to the availability of
the selected arbitrator.
K. No Reprisal.
Employees shall be free from reprisal for use of this Grievance Procedure.
L. Grievance Forms.
All grievances shall be filed on the appropriate form, which is attached as an Appendix to this
Memorandum of Understanding.
M. Representation.
An employee may represent himself/herself without the involvement of the Association or
he/she may request the assistance of an Association Representative to write and formally present
the grievance. However, an employee may not grieve to Step Three: Arbitration, without the
consent of the Association, and any communications related to the arbitration shall be between
the District and the Association.
ARTICLE 1314 - GENERAL PROVISIONS
ARTICLE 1314, SECTION 1: NON-DISCRIMINATION
In receiving the rights afforded by this Memorandum of Understanding, no person shall in any way
be favored or discriminated against to the extent prohibited by law because of sex (including
gender, gender identity, gender expression, pregnancy, childbirth or related medical condition), race,
color, religious creed, national origin, ancestry, physical disability, mental disability, medical
condition, genetic information, marital status, age, sexual orientation, military or veterans status, or
any other basis protected by federal, state or local law.
ARTICLE 1314, SECTION 2: ENTIRE AGREEMENT
This Memorandum of Understanding sets forth the full and entire agreement of the parties regarding
the matters set forth herein, and any other prior or existing understanding or agreements over these
matters between the parties, whether formal or informal, are hereby superseded or terminated in
their entirety.
ARTICLE 1314, SECTION 3: SEVERABILITY
This Memorandum of Understanding is subject to all current and future applicable federal, state and
local laws and regulations. If any part or provision of this MOU is in conflict or inconsistent with
such applicable provisions of federal, state or local laws or regulations, or is otherwise held to be
invalid or unenforceable by any tribunal of competent jurisdiction, such part or provision shall be
suspended and superseded by such applicable law or regulations, and the remainder of the MOU
shall not be affected thereby.
42
ARTICLE 1314, SECTION 4: MANAGEMENT RIGHTS
The management of the District and the direction of the work force are vested exclusively in the
District, subject to the terms of this MOU. In addition to the authority vested in the General
Manager pursuant to section 71362 of the California Water Code, the District shall have the sole
and exclusive authority over the merits, necessity, or organization of any District service or activity
provided by law and shall have the sole and exclusive right to manage its business in every respect
and to take any action which the District deems desirable to conduct its business including, but not
limited to, the right to determine and change all aspects of its methods of operation, to schedule and
assign work and overtime, to hire, promote, classify, discipline (up to and including termination),
layoff and transfer employees, to determine the number and location of employees, and to exercise
all other rights the District had prior to entering into this MOU, except as specifically abridged or
modified by this MOU. All authority related to matters not covered by this MOU shall be retained
by the District.
ARTICLE 1314, SECTION 5: STRIKES AND LOCKOUTS
Neither the Association nor any employee represented by the Association shall cause, authorize,
engage in, or sanction any type of job action, strike, or slowdown which results in less than the full
and faithful performance of the duties of employment during the term of this MOU and for a ninety
(90) day period following expiration of the term of this MOU. During the term of this MOU and for
ninety (90) days following its expiration, the District shall not take action to lock out employees
covered by this MOU.
ARTICLE 1314, SECTION 6: EMERGENCY
Nothing herein shall limit the authority of management to make necessary changes during
emergencies. Emergency is defined as a substantial likelihood that serious harm would be
experienced unless immediate action is taken.
ARTICLE 1314, SECTION 7: IMPLEMENTATION
This MOU constitutes a mutual recommendation to be jointly submitted to the District Board of
Directors. It is agreed that this MOU shall not be binding upon the parties either in whole or in part
unless and until:
1. The Association ratifies this Memorandum; and
2. The Board of Directors acts by majority vote, to formally approve and adopt this MOU and
to appropriate the necessary funds required to implement the provisions of this MOU that
require funding.
The District shall act in a timely manner to make the necessary changes to implement this
Memorandum of Understanding.
43
IN WITNESS WHEREOF, the parties have caused their duly-authorized representatives to execute this Memorandum of
Understanding. Approved by the Board of Directors on November 7, 2018.
FOR: OTAY WATER DISTRICT FOR: OTAY WATER DISTRICT EMPLOYEES’
ASSOCIATION
Mark W. Watton, Damon M. Newman,
General Manager Field Employees’ Unit
Mark R. Bresee, Mike Powell,
Atkinson, Andelson, Loya, Ruud & Romo Employee Services
Kelli M. Williamson, Michael A. Christensen,
Human Resources Manager Administrative Employees’ Unit
Rosemary F. Dries, Theresa Kreinbring,
Senior Human Resources Analyst Administrative Employees’ Unit
Kevin K. Koeppen, William G. Poulin,
Assistant Chief, Finance Administrative Employees’ Unit
Jose J. Martinez,
Assistant Chief, Water Operations
44
APPENDIX A
OTAY WATER DISTRICT
STEP ONE (1) GRIEVANCE FORM
_____________________________________________________________________________________________________
Grievant’s Name Job Title Dept.
In cases of disciplinary action, the written grievance shall state as a ground(s) for the appeal that the disciplinary action is
inaccurate, unduly severe, and/or unfair and set forth the facts supporting such ground(s). The grievance shall also state the
remedy sought. If the grieving employee fails to provide the required information, or state a ground for challenging disciplinary
action, the District may return the grievance to the employee and may refuse to process the grievance until the information is
furnished. The Grievance Procedure time limits will not be extended for this purpose. However, the time limits may be extended
by mutual agreement of the parties.
1. What provision of the Memorandum of Understanding do you claim was violated? List article(s) and page number(s):
________________________________________________________________________________________________
________________________________________________________________________________________________
2. Describe the action or event you are grieving by answering all of the following questions which are appropriate:
A. What happened?___________________________________________________________________________
________________________________________________________________________________________________
B. When did it happen? (If you don’t know when it happened, when did you find out about it?)_________________
________________________________________________________________________________________________
C. Where did it happen?________________________________________________________________________
D. List the names of other people who observed the event or who have knowledge about the event:____________
________________________________________________________________________________________________
E. Please give any other information, which you believe is important to understand your grievance:_____________
________________________________________________________________________________________________
________________________________________________________________________________________________
3. What actions do you want the District take to remedy the grievance:___________________________________
________________________________________________________________________________________________
Grievant’s Signature: _________________________________________ Date ___________________
Received by: _______________________________________________ Date ___________________
Immediate Supervisor
------------------------------------------------------------------------------------------------------------------------------------------------------------------
Supervisor Response:______________________________________________________________________________
________________________________________________________________________________________________
Signature: ___________________________________________________ Date ___________________
Immediate Supervisor
I received the Step One (1) response to my grievance on _____________________ ___________________________
Date Grievant’s Signature
------------------------------------------------------------------------------------------------------------------------------------------------------------------
Grievant’s response to Step One (1) (check one)
1. The remedy proposed at Step One (1) is acceptable. I accept the proposed remedy as the complete and final
settlement of all complaints I have raised in this grievance.
2. The remedy proposed is not acceptable, and I withdraw my grievance.
3. The remedy proposed is not acceptable, and I wish to appeal the decision of Step One (1). The Step Two (2) form
is attached.
Grievant’s Signature _____________________________________________________ Date __________________
45
AAPPPPEENNDDIIXX AA
OTAY WATER DISTRICT
STEP TWO (2) GRIEVANCE FORM
Instructions: Attach a copy of the Step One (1) Grievance Form and explain why the Step 1 response is not acceptable.
Grievant’s Name ____________________________________
The Step One (1) response is unacceptable for the following reasons: _________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
Grievant’s Signature __________________________________________ Date___________________
Received by: ________________________________________________ Date___________________
General Manager/Designee
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
General Manager/Designee Response: __________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
Signature___________________________________________________ Date___________________
General Manager/Designee
I received the Step Two (2) response to my grievance on _____________________
Date
_________________________________________
Grievant’s Signature
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
Grievant’s response to Step Two (2) (check one)
1. The remedy proposed at Step Two (2) is acceptable. I accept the proposed remedy as the complete and final
settlement of all complaints I have raised in this grievance.
2. The remedy proposed is not acceptable, and I withdraw my grievance.
3. The remedy proposed is not acceptable, and I wish to appeal the decision of Step Two (2) (if applicable). An
employee may not grieve to Step Three (3): Arbitration, without the consent of the Association.
Grievant’s Signature _____________________________________________________ Date___________________
FLSA EXEMPT AND NON-EXEMPT CLASSIFICATIONS
Updated Periodically
APPENDIX B
POSITION
SALARY
GRADE FLSA POSITION
SALARY
GRADE FLSA
DISTRICT-WIDE POSITIONS ENGINEERING
Executive Secretary 22 NE Inspection
Secretary 18 NE Construction Inspector II 24 NE
Construction Inspector I 22 NE
ADMINISTRATIVE SERVICES Public Services
Permit Technician 20 NE
GIS
GIS Programmer Analyst 27 E Engineers
GIS Analyst 25 E Senior Civil Engineer 34 E
GIS Technician 22 NE Associate Civil Engineer 32 E
Assistant Civil Engineer II 27 E
Information Technology Assistant Civil Engineer I 25 NE
Database Administrator 32 E
Network Engineer 31 E Engineering Technicians
System Support Analyst 29 E Senior Engineering Technician 24 NE
Business Systems Analyst II 29 E Engineering Technician 22 NE
Business Systems Analyst I 25 E
Data Systems Technician 20 NE Environmental Compliance
Environmental Compliance Specialist 28 E
Purchasing
Senior Procurement and Contracting Analyst 26 E Recycled Water System
Senior Warehouse Worker 20 NE Recycled Water Specialist 23 NE
Facilities Maintenance Technician 19 NE
Surveying
Senior Utility Locator 21 NE
FINANCE Utility Locator 19 NE
Accounting
Senior Accountant 28 E
Accountant 25 NE
Customer Service
Lead Customer Service Representative 21 NE
Customer Service Representative II 18 NE
Customer Service Representative I 16 NE
Meter Services
Meter Maintenance Worker II 21 NE
Meter Maintenance Worker I 18 NE
Lead Customer Service Field Rep.21 NE
Customer Service Field Representative II 18 NE
Customer Service Field Representative I 16 NE
Payroll and Accounts Payable
Accounting Technician 20 NE
FLSA EXEMPT AND NON-EXEMPT CLASSIFICATIONS
Updated Periodically
APPENDIX B
POSITION
SALARY
GRADE FLSA POSITION
SALARY
GRADE FLSA
WATER OPERATIONS
Collection/Treatment/Reclamation
Laboratory Analyst 25/26 NE
Lead Reclamation Plant Operator 26 NE
Reclamation Plant Operator III 23 NE
Reclamation Plant Operator II 21 NE
Reclamation Plant Operator I 19 NE
Fleet Shop
Equipment Mechanic II 21 NE
Equipment Mechanic I 18 NE
Pump/Electrical
Electrician II 24 NE
Electrician I 22 NE
Pump Mechanic II 22 NE
Pump Mechanic I 19 NE
SCADA Systems
Senior SCADA / Instrumentation Technician 28 NE
SCADA / Instrumentation Technician 25 NE
Utility Maintenance/Construction
Utility Crew Leader 24 NE
Senior Utility Worker/Equipment Operator 22 NE
Utility Worker II 20 NE
Utility Worker I 18 NE
Valve Maintenance Worker 18 NE
Water Systems
Senior Disinfection Technician 24 NE
Disinfection Technician 23 NE
Lead Water Systems Operator 26 NE
Water Systems Operator III 23 NE
Water Systems Operator II 22 NE
Water Systems Operator I 20 NE
46
201419 - 201724
Memorandum of Understanding
Index
Adjustments………………………………76
Salary (In-Range)……………… …….7
Wages………………………………..75
Agency Shop……………………………..4
Agreement....……………………………..1
Allowances ........................................... 15
Meals ............................................. 15
Safety Glasses .............................. 15
Safety Shoes ................................. 15
Spectacle Kits ............................... 15
Alternative Work Schedules ................ ..9
Assignment Premiums ......................... 1210
Call Back Duty……………………...1312
Report Time Pay .......................... 1413
Shift Pay ........................................ 1211
Standby Duty……………………….1211
Association .......................................... ..1
Agency Shop ................................. ..4
Association Access ....................... ..4
Association Representatives ......... ..2
Association Rights ......................... ..1
Bulletin Boards .............................. ..3
Dues Deductions& Service Fees .. ..4
Recognition ................................... ..1
Release Time ................................ 23
Right to Join or Not Join ................ ..4
Use of Email .................................. ..3
Automatic Resignation ............ ………29, 32
Benefits (Employee) ....................... 1615-21
(See Insurance)
Bereavement Leave ....................... …..27
Bonus Rates (Assign. Premiums) ........ 12
Bulletin Boards..................................... ..3
Call Back Duty ................................ ….1312
Cash-In Sick Leave Credits ............ ….2629
Cash-In Vacation Credits ................ ….2329
COLA (See Wages) ............................... …..75
Compensatory Time Off………………....1110
Court Leave (Jury Duty) ……………….......27
CPI-U…………………………………………75
Death Benefit…………………………..........21
Dental and Health Insurance……......17-1920
(See Insurance)
Disability (Early Retirement) ………………20
Disability Leave:
Short/Long- Term Disability ........... …..17
Non-Work Related Med. Leave ..... …..30
Work-Related Injury or Disability…..3031
Discrimination (Non)............................. …..38
District Vehicles (Use of)………………......34
Dues Deductions& Service Fees…………...4
(See Agency Shop)
Early Retirement:
Disability………………………………...20
Hardship………………………………...20
Effective Date of MOU……………………….1
Email (Use of) ………………………………..3
Emergency………………………………..3940
Employee Recognition Programs………....87
Entire
Agreement……………………….............3839
Implementation………………………3940
Exempt Classes……………………………910
Expenses (Work-Related)…………………1514
Meal Allowance……………………...1514
Safety Boot Allowance…………………14
Safety Glasses………………………….15
47
Spectacle Kits ............................... …15
Safety Shoe Allowance………………15
Failure to Return from Leave……….....29, 32
Family Medical Leave……………………2930
FLSA Classes ................................. ……910
Grievance Procedure ...................... …..3435
Forms………………37, 41, 4238, 42-43
Health and Dental Insurance……….17-1920
(See Insurance)
Holidays…………………………………..22
Hours of Work ................................. …...97
Regular Part-Time Employees ...... ..98
Standard Work Day/Week............. ..97
Illness or Injury (Non-Work Related) ....... …30
Illness or Injury (Work-Related) ............. 3031
In-Range Adjustment ...................... ……76
Insurance:
Dental……………………………….17-18
Life ................................................. 21
Health and Dental (Active) ............. 17-18
Health and Dental (Retired) ............ 18-20
Premiums……………………18-2017-21
Required Coverage ....................... 18
Short/Long Term Disability ............ 17
Waive Coverage ............................ 18
Job Posting .......................................... 3334
Jury Duty ......................................... ….2726
Kin Care ............................................... 2930
Layoff Procedure ............................ ….3233
Leaves:
Bereavement Leave ................. …..27
Failure to Return from Leaves……29, 32
Family Medical Leave ................... 2930
Jury Duty ....................................... 2726
Kin Care ........................................ 2930
Leaves of Absence (Unpaid) .......... 2930
Military Leave ................................ 28
Non-Work Related Medical
Leave ...................................... 30
Personal Leave ............................. 3132
Pregnancy Disability Leave ........... 2930
Reinstatement………………………30-31
School and Child Care
Provider Activities Leave ......... .2827
Sick Leave…………………………..2524
Vacation………………………………...23
Work-Related Disability Leave….....3031
Verification……………………...25, 27-28
Life Insurance ....................................... …..21
(See Insurance)
Lockouts (and Strikes) ......................... …..39
Long- Term Disability ........................... …..17
Lunch Purchase Stops
(District Vehicles)…………………..34-35
Lunch and Rest Periods…………………..109
Management Rights ............................. ..3839
Meal Allowance .................................... ..1514
Health, Dental & Life Insurance…….17-2120
(See Insurance)
Medical Leave (See Leaves)………...29-30-31
Military Leave ....................................... …..28
Non-Discrimination ............................... …..38
Non-Exempt Classes……………………...910
Non-Work Related Medical Leave ....... …..30
Out-of-Class Appointments………………...13
Overtime Pay……………………………….109
Part-Time Employees……………………….98
Payroll Period/Pay Dates…………………..76
Pension Plan ........................................ .15-16
(PERS Membership and Formula)
Performance Evaluation ....................... …..34
Personal Leave .................................... ..3132
Personnel Files .................................... ..3233
Preamble .............................................. …….1
Pregnancy Disability Leave .................. ..2930
48
Premiums:
Assignment Premiums .................. 1210
Insurance Premiums……….18-2017-21
(See Insurance)
Prescription Safety Glasses ................ …..15
Spectacle Kits…………………………..15
Regular Part-Time Employees ............ …..98
Reinstatement (from Leaves)……………30-31
Release Time for Representatives ...... ….2-3
Report Time Pay .................................. ..1413
Representative of Associations ........... ….2-4
Resignation (Automatic)…………………29, 32
Rest and Lunch Periods ................. ……..109
Retirement:
Early Retirement ........................... …..20
Employee Contribution .................. ..1716
Formula ......................................... …..16
Pension Plan ................................. ..1615
Regular Retirement .................. ………19
Review (In-Range) ........................... ….......76
Safety (Workplace) ................................ …..32
Safety Glasses (Prescription) ................ …..15
Safety ShoeBoot Allowance ................ ..1514
Salary Adjustments (In-Range)……………..76
San Diego CPI-U……………………………75
School and Child Care
Provider Activities Leave ................ ..2827
Severability .......................................... ..3839
Short-Term Disability ........................... …..17
Shift Pay .............................................. .1211
Sick Leave ........................................... .2524
Spectacle Kits……………………………...15
Standby Duty .................................. ….1211
Strikes and Lockouts ............................ ….39
Substantiation of Leave……………25, 27-28
Temporary Assignments and
Out-of-Class Appointments…………1413
Term of MOU ....................................... ……1
Vacation .......................................... ………23
Vehicles (District).............................. ………34
Verification of Leave………………..25, 27-28
Wages (COLA)………………………………75
Adjustments……………………………..76
Waive Insurance Coverage .................. …..18
Work Day/Week……………………………..97
Work Periods………………………………...98
Workplace Safety……………………………32
Work-Related Expenses ...................... ..1514
Meal Allowance ............................. ..1514
Safety Boot Allowance ................... …..14
Safety Glasses .............................. …..15
Spectacle Kits…………………………..15
Safety Shoe Allowance .................. …..15
Work-Related Disability Leave ............. ..3031
Work Schedules (Alternative) ………………..9
i
MEMORANDUM OF UNDERSTANDING BETWEEN
THE OTAY WATER DISTRICT AND THE OTAY
WATER DISTRICT EMPLOYEES’ ASSOCIATION
July 1, 2019 – June 30, 2024
TABLE OF CONTENTS
Article 1 – Preamble 1
Article 2 – Term 1
Article 3 – Association Rights 1
Section 1 – Recognition 1
Section 2 – Association Representatives 2
A. Representatives 2
B. Grievance Processing Release Time 2
C. Formal Bargaining Release Time 2
D. Release Time for PERB Proceedings 3
E. Limitation on Time Off 3
Section 3 – Bulletin Boards 3
Section 4 – Use of Email 3
Section 5 – Association Access 4
Section 6 – Dues Deductions 4
A. Right to Join or not Join 4
B. Association Dues 4
C. Records 5
D. Indemnification 5
Article 4 – Wages 5
Section 1 – Wages 5
A. Wages 5
B. Adjustments 6
Section 2 – Payroll Period; Pay Dates 6
Section 3 – Salary Adjustment within Range 6
A. Amount of In-Range Adjustment 6
ii
B. Standardized In-Range Adjustment Date 6
C. In-Range Adjustment Date 6
D. Eligible Employees 7
Section 4 – Employee Recognition Programs 7
Article 5 – Hours of Work and Premiums 7
Section 1 – Hours of Work 7 A. Standard Work Day/Week 8
B. Standard Work Periods 8
C. Hours of Work: Regular Part-Time Employees 8
D. Alternative Work Schedules 8
E. Round-the-Clock Staffing 9
Section 2 – Rest and Lunch Periods 9
Section 3 – Overtime 9
A. FLSA 9
B. Computation of Overtime 9
C. Exclusion from Hours Actually Worked 9
D. Compensation for Overtime 10
Section 4 – Compensatory Time Off 10
Section 5 – Assignment Premiums 11
A. Shift Pay 11
B. Standby Duty 11
C. Call Back Duty 12
D. Report Time Pay 13
Section 6 – Temporary Assignments and Out-of-Class Appointments 13
A. Assignment 13
B. Compensation 14
C. End of Assignment 14
D. Employment Termination During Assignment 14
Article 6 – Allowances for Work-Related Expenses 14
Section 1 – Meal Allowance 14
A. Overtime 14
Section 2 – Safety Boot Allowance 14
Section 3 – Safety Glasses and Spectacle Kits 15
A. Safety Glasses 15
B. Spectacle Kits 15
iii
C. Prescription 15
Article 7 – Employee Benefits 15
Section 1 – Pension (Retirement Plan) 15
A. Definitions 15
B. Retirement Formula 16
C. Employee Contribution 16
D. Special Compensation 16
Section 2 – Short Term/Long Term Disability Insurance 17
A. Premium 17
Section 3 – Group Health and Dental Insurance: Active Employees 17
A. Active Employees’ Health & Dental Insurance Eligibility 17
B. Health Insurance Coverage 18
C. District/Employee Contribution 18
D. Reservation of Rights 18
Section 4 – Group Health and Dental Insurance: Retired Employees 18
A. Retiree Health Insurance Guaranteed 18
B. Hired On or After January 1, 2013 (New Members/ 19
New Employees); Hired before January 1, 2013
(Current Members) 19
C. Eligibility 19
D. Eligible Dependents 19
E. Health and Dental Insurance Premium Contributions 19
1. Regular Retirement 19
2. Early Retirement 20
Section 5 – Life Insurance: Active Employees 21
A. Premiums 21
B. Reservation of Rights 21
Section 6 – Death Benefit 21
Article 8 – Paid Leaves 22
Section 1 – Holidays and Holiday Compensation 22
A. Floating Holiday 22
B. Employee’s Birthday 22
C. Saturday and Sunday Holidays 22
D. Eligibility for Holidays 22
E. Compensation for Holidays 22
Section 2 – Vacation 23
A. Eligibility 23
iv
B. Earnings 23
C. Maximum Balance 23
D. Granting Requests 24
E. Use of Vacation Leave In Lieu of Sick Leave 24
F. Terminal Payment of Vacation 24
G. Returning Employees 24
Section 3 – Sick Leave 24
A. Eligibility 24
B. Earnings 24
C. Allowable Use of Sick Leave 25
D. Relationship to Other Leaves 25
E. Use of Sick Leave in Lieu of Vacation Leave 25
F. Definition of Family Member 25
G. Verification of the Proper Use of Sick Leave 25
H. Maximum Balance 25
I. Terminal Payment of Sick Leave 25
J. Returning Employees 26
Section 4 – Jury Duty (Court Leave) 26
A. Definition 26
B. Eligibility 26
C. Limits 26
Section 5 – Bereavement Leave 27
A. Definition 27
B. Eligibility 27
C. Amount of Leave 27
D. Immediate Family 27
E. Verification of Proper Use of Bereavement Leave 27
Section 6 – School and Child Care Provider Activities Leave 27
A. Definition 27
B. Eligibility 27
C. Amount of Leave 27
D. Required Advance Notice 28
E. Parents Employed by District 28
F. Definition of School or Child Care Provider Emergency 28
Section 7 – Military Leave 28
A. Definition and Eligibility 28
B. Required Advance Notice 28
C. Compensation of Temporary Military Leave 28
D. Compensation for Active Military Leave 29
Section 8 – Failure to Return from Leave 29
v
Article 9 – Cash-In of Vacation and/or Sick Leave Credits 29
Article 10 – Unpaid Leaves 30
Section 1 – Family Medical Leave, Pregnancy Disability Leave 30
and Kin Care
Section 2 – Non-Work-Related Medical Leave 30
A. Eligibility and Length of Leave 30
B. Reinstatement 30
Section 3 – Work–Related Disability Leave 31
A. Definition 31
B. Maintenance of Benefits During Work-Related Disability 31
Leave
C. Reinstatement 31
Section 4 – Personal Leave 32 A. Eligibility 32
B. Requests 32
Section 5 – Failure to Return from Leave 32
Article 11 – Workplace Safety 32
A. Commitment to Safety 32
B. Safety Committee 33
C. Reporting Safety Concerns 33
Article 12 – Personnel Practices 33
Section 1 – Personnel Files 33
Section 2 – Layoff Procedure 33
Section 3 – Job Posting 34
Section 4 – Performance Evaluation 34
Section 5 – Use of District Vehicles 34
A. Lunch Purchase Stops 34
Article 13 – Grievance Procedure 35
A. Definition 35
B. Exclusions 35
C. Stale Grievance 35
D. Informal Discussion with Employee’s Supervisor 36
E. Grievance Procedure Steps 36
F. Selection of Arbitrator 37
vi
G. Submission of the Issue to the Arbitrator 37
H. Duty of the Arbitrator 37
I. Payment of Costs 38
J. Effect of Failure of Timely Action 38
K. No Reprisal 38
L. Grievance Forms 38
M. Representation 38
Article 14 – General Provisions 38
Section 1 – Non Discrimination 38
Section 2 – Entire Agreement 39
Section 3 – Severability 39
Section 4 – Management Rights 39
Section 5 – Strikes and Lockouts 39
Section 6 – Emergency 40
Section 7 – Implementation 40
Signature Page 41
Appendix A – Grievance Forms
Step One (1) Grievance Form 42
Step Two (2) Grievance Form 43
Appendix B – FLSA Exempt and Non-Exempt Classifications 44
1
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
OTAY WATER DISTRICT
AND THE
OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION
July 1, 2019 – June 30, 2024
ARTICLE 1 - PREAMBLE
This Memorandum of Understanding (MOU) is entered into by the Otay Water District,
Spring Valley, California (hereinafter “District”) and the Otay Water District Employees’
Association (hereinafter “Association”) as a mutual recommendation to the Board of
Directors of the District of those wages, hours, and conditions of employment which are
to be in effect as specified in Article 2 - Term.
ARTICLE 2 - TERM
Upon adoption by the Board of Directors of the District, the provisions of this
Memorandum of Understanding shall be effective during the period commencing at 8:00
a.m. on July 1, 2019 through 5:00 p.m. on June 30, 2024 for those employees working in
the Field and Administrative Units, subject to the provisions of Article 14, Section 7:
Implementation.
ARTICLE 3 - ASSOCIATION RIGHTS
ARTICLE 3, SECTION 1: RECOGNITION
Pursuant to the provisions of the District’s Code of Ordinance, Chapter 5 Personnel
Practices, Section 5 Employer-Employee Relations, and applicable state law, the
Association was certified on May 9, 2001, as the majority representative for the:
Field Employees’ Unit
Administrative Employees’ Unit
The District therefore recognizes the Association as the sole and exclusive representative
for all classifications in these two (2) units.
2
ARTICLE 3, SECTION 2: ASSOCIATION REPRESENTATIVES
A. Representatives. The Association may designate three (3) Representatives for the Field Unit
and three (3) Representatives for the Administrative Unit. The Association shall furnish the
District a written list identifying all Representatives by name and the list shall be kept current by
the Association. The District will recognize as Representatives, only those persons designated
on the most recent list furnished by the Association.
B. Grievance Processing Release Time. The District shall grant a Representative reasonable
release time when, at the request of an employee, the Representative is investigating an alleged
grievance and assisting in its written preparation and presentation. Release time for this purpose
shall be given in accordance with the following:
1. The Representative’s supervisor will authorize the Representative to leave his/her work
unless circumstances warrant denial of such permission. Where permission is denied, the
supervisor shall inform the Representative of the reasons for the denial and provide an
alternate time when the Representative may reasonably be expected to be released from
his/her work assignment.
2. When a Representative, acting under this section, desires to contact an employee at his/her
work location, the Representative shall first contact the supervisor of that employee, advise
him/her of the nature of the business, and obtain permission to meet with the employee. The
supervisor shall make the employee available promptly unless circumstances prevent the
employee’s availability. If the employee is not available, the supervisor will notify the
Representative when he/she may reasonably expect to contact the employee. When the
employee is not available for one (1) or more whole work days, the time limits of the
grievance procedure shall be extended for an equal number of days.
3. When a Representative conducts interviews or discussions with an employee on District
time, such interviews or discussions shall be performed expeditiously.
4. A Representative shall report release time under this section on his/her time record as
“Negotiation Release Time” (Activity Code 1508). Other employees (non-Representatives)
participating in such interviews or discussions shall conduct such activities on their own
time with supervisor approval using available accruals.
C. Formal Bargaining Release Time. The District shall grant reasonable release time to
Representatives designated in accordance with this section to serve on the Association
bargaining team while meeting and conferring with District representatives in the formal meet
and confer (bargaining) process regarding wages, hours, and other terms and conditions of
employment, including negotiations for a successor agreement to this Memorandum of
Understanding. Release time in accordance with this section shall be given in accordance with
the following:
1. Appropriate times for release time shall be as mutually arranged by the parties in
negotiations and the number of representatives shall be determined by ground rules.
2. Release time under this section shall be reported by the Association Representative on
his/her time record as “Negotiation Release Time” (Activity Code 1508).
3
D. Release Time for PERB Proceedings. Consistent with Government Code section 3503.3 and
related provisions of the Meyers-Milias-Brown Act, the District shall grant reasonable release
time to Representatives designated in accordance with this section to testify or appear as the
designated Association representatives in conferences, hearings, or other proceedings before the
Public Employment Relations Board, or an agent thereof, in matters relating to a charge filed by
the Association against the District or by the District against the Association. The Association
shall provide reasonable notification to the District requesting time off pursuant to this section.
E. Limitation on Time Off. The District shall not grant Association Representatives permission for
time away from their work assignments for Association activities not described in this section.
ARTICLE 3, SECTION 3: BULLETIN BOARDS
Bulletin boards shall be provided by the District at the following locations: Operations, Treatment
Plant, Warehouse, and the Administration Building. They shall be for the use of the Association for
the posting of rules and regulations of the Association and notices of interest. All such bulletins,
with the exception of meeting notices and announcements of Association elections, shall be
approved by the Human Resources Manager or his/her designee in a timely manner before posting.
ARTICLE 3, SECTION 4: USE OF EMAIL
The Association President, Vice President, or Chair may use the District email system for one-way
communication to association members to notify them of upcoming meetings and to provide general
information subject to the following:
1. The person sending the email shall send a copy (“cc”) of each such email to the Chief,
Administrative Services; the Human Resources Manager; and the Human Resources Analysts.
2. Use of the District email system by the Association under this section must be in accord with
District policy. Use of the District email system by the Association under this section shall be
considered a “personal use” of the District email system under District policy.
3. If the District determines that use by the Association of the District email system under this
section interferes with the District, the District will notify the Association and will meet to
discuss any necessary amendments to this section.
4. If the District determines that use of the District email system under this section does not
comply with District policy, the District shall notify the Association and may suspend the use of
the system under this section until the District believes that the Association will comply with the
District’s email policy.
5. Any communications via the District’s email system shall be subject to the California Public
Records Act.
6. The District’s email system may not be used to distribute political material or to otherwise
engage in political advocacy prohibited by state law including, but not limited to, Government
Code section 54964.
4
ARTICLE 3, SECTION 5: ASSOCIATION ACCESS
A. The District shall grant access to a work location to a designated Association Representative or
Business Agent for the purpose of conducting a grievance investigation. As used in this section,
“Association Business Agent” refers to a person who is not a District employee.
B. Association Representatives and Business Agents shall not interfere with the work operations of
the District. An Association Representative or Business Agent desiring access to a work
location shall first request entrance from the Human Resources Manager or a designee and
inform him/her of the purpose for the visit. The request may be made by telephone, in person, or
via email.
C. The Human Resources Manager or designee may deny access to a work location if, in his or her
judgment, access at that time would interfere with the operations of the facility or work location.
If access is denied, the Association Representative or Business Agent shall be informed when
access will be made available.
D. Association Representatives or Business Agents may meet with employees during rest or lunch
breaks at District facilities or work locations as may be available. In so doing, however, they
shall not create a disturbance for employees not represented by the Association.
ARTICLE 3, SECTION 6: DUES DEDUCTIONS
A. Right to Join or Not Join.
The parties mutually understand and agree that all Field and Administrative employees (regular
full-time and regular part-time) have the right to join or not join the Otay Water District
Employees’ Association (“Association”).
B. Association Dues.
1. The Association shall provide all current Field and Administrative employees (regular full-
time and regular part-time) and any Field or Administrative employees hired thereafter, with
an authorization notice advising them that the Association represents employees in the
bargaining unit, and that all employees may choose to join the Association and pay
membership dues, or decline to join the Association and forego payment of membership
dues. Such notice shall include a form for the employee’s signature authorizing a payroll
deduction of Association dues. The Association may provide this authorization notice and
payroll deduction form to new employees at the District’s new employee orientation
meetings. Said employees completing the form shall return it to the District’s Payroll
Office.
2. Upon receiving a payroll deduction form as stated in Paragraph 2(a), the District shall begin
the applicable deduction of Association dues no later than the beginning of the first pay
period commencing after receipt of the authorization form by the Payroll Office. If the form
is not completed properly, the District shall begin the deduction of the Association dues no
later than the beginning of the first pay period commencing after receipt of a properly
completed form.
5
3. As determined by the District, the employee’s earnings must be sufficient after the other
legal and required deductions are made to cover the amount of the dues authorized. When
an employee is in a non-pay status for an entire pay period, no withholding will be made to
cover the pay period from future earnings. In the case of an employee in a non-pay status
only during part of the pay period, whose salary is not sufficient to cover the full
withholding, no deduction shall be made. In this connection, all other legal and required
deductions (including health care and insurance deductions) have priority over Association
dues.
4. The Association shall advise the District, in writing, of the dues to be deducted. Any change
in the amounts will be submitted to the District, in writing, at least thirty (30) days prior to
the effective date of such change.
5. All deducted dues shall be remitted to the Association no later than 14 calendar days after
deduction. The District shall also provide an itemized statement detailing each employee’s
name and the amount of deduction.
C. Records.
The Association shall keep an adequate itemized record of its financial transactions and shall
make available annually, to the District, and to the employees who are members of the
organization, within 60 days after the end of its fiscal year, a detailed written financial report
thereof in the form of a balance sheet and an operating statement, certified as to accuracy by
its president and treasurer or corresponding principal officer, or by a certified public
accountant.
D. Indemnification.
The Association shall indemnify, defend, and hold the District harmless against any liability
arising from any claims, demands, or other action relating to the District’s compliance with
the dues deduction obligation in this Article including claims made by employees relating to
the deduction or remittance of monies to the Association under these provisions. The
District reserves the right to select and direct legal counsel in the case of any challenge to the
District’s compliance with the obligations listed above, and the Association agrees to pay
any attorney, arbitrator or court fees related thereto.
ARTICLE 4 - WAGES
ARTICLE 4, SECTION 1: WAGES
A. Wages:
Effective the first full pay period of July 2019, and each subsequent first pay period of July
thereafter during the term of this MOU, the salary schedule and base pay of all represented
employees shall increase annually based on the published change in the “San Diego Consumer
Price Index for Urban Consumers” (SDCPI-U), less Medical Care, pursuant to the following
formula:
The minimum increase shall be two percent (2%) and the maximum of the increase shall not
exceed three percent (3%).
6
If the SDCPI-U increase is between two percent (2%) and two-and-a-half percent (2.5%),
the increase shall equal the SDCPI-U.
If the SDCPI-U is between two-and-six-tenths percent (2.6%) and three-and-a-half percent
(3.5%), the salary range shall be increased by two-and-a-half percent (2.5%) plus one half
(1/2) of the amount between two-and-six-tenths percent (2.6%) and three-and-a-half percent
(3.5%).
B. Adjustments: The District may, at its discretion, increase compensation for employees covered
by this Memorandum of Understanding. Prior to implementing any increase(s), the District
shall notify the Association and, if the Association requests it, discuss the increase with the
Association in a non meet-and-confer forum. The decision to grant an increase and the amount
thereof may not be grieved under the Grievance Procedure of this Memorandum of
Understanding. Nothing in this section shall be construed to require the District to negotiate the
decision to grant an increase or the amount thereof.
ARTICLE 4, SECTION 2: PAYROLL PERIOD; PAY DATES
The payroll period extends over fourteen (14) calendar days. Paychecks shall be issued biweekly in
payment of wages earned during the preceding payroll period.
ARTICLE 4, SECTION 3: SALARY ADJUSTMENT WITHIN RANGE
This provision applies to eligible employees as provided in this section.
A. Amount of In-Range Adjustment. An annual in-range salary adjustment may be granted in the
amount of three percent (3%). If the employee’s salary is less than three percent (3%) below the
maximum of his/her position on the salary range, the adjustment shall be in an amount sufficient
to place the employee at the top of the salary range. However, in no event shall this adjustment
result in the employee’s salary exceeding the salary range for the employee’s classification.
B. Standardized In-Range Adjustment Date. The first full pay period in September will be the
employee’s In-Range Adjustment Date.
C. In-Range Adjustment Date.
1. Newly hired employees or employees who have not completed one (1) year of employment:
a. Newly hired employees or employees who have not completed one (1) year of
employment prior to September 1 shall be eligible for the first In-Range Adjustment the
first full pay period after completion of one (1) year of employment. Thereafter,
September will be the employee’s In-Range Adjustment Date according to the following
chart:
7
1st In-Range
Increase
Month Complete
One Year of
Employment
2nd In-Range
Increase
Number of
Quarters in
the Review
Period
Eligible %
for 2nd
In-Range
Increase
Upon completion
of one year of
employment.
July, August,
September
Sept of the
following calendar
year.
4 3.0%
Upon completion
of one year of
employment.
October,
November,
December
Sept of the
following calendar
year.
3 2.25%
Upon completion
of one year of
employment.
January, February,
March
Sept of the current
calendar year. 2 1.5%
Upon completion
of one year of
employment.
April, May, June Sept of the current
calendar year. 1 0.75%
2. Employees who are promoted:
a. A regular employee who promotes to a new classification shall maintain his/her performance
evaluation review date and In-Range Adjustment Date.
D. Eligible Employees. Eligible employees are:
Employees whose salary is less than the maximum of the salary schedule for the employee’s
classification and who have received an overall fully competent or higher evaluation during the
most recent annual evaluation or one-year-of-employment review immediately preceding his/her
In-Range Adjustment Date.
ARTICLE 4, SECTION 4: EMPLOYEE RECOGNITION PROGRAMS
Employee recognition programs may be instituted by the District. The purpose of such programs
will be to recognize exemplary employees and improve public service through enhanced motivation.
The design, establishment, disestablishment, administration, and regulation of all employee
recognition programs shall be at the sole discretion of the District, through its General Manager.
Such programs as are established and awards given through them may not be grieved under the
Grievance Procedure of this Memorandum of Understanding.
ARTICLE 5 - HOURS OF WORK AND PREMIUMS
ARTICLE 5, SECTION 1: HOURS OF WORK
This Section is intended to define the normal hours of work and shall not be construed as a
guarantee of hours of work per day, per week, or of days or of work period. The hours of work of
the office or facility and an employee’s work schedule shall be established by the District and may
be changed at the discretion of the District, as District needs dictate. Reasonable notice shall be
given, normally at least ten (10) calendar days prior to the change. However, the District may give
less notice when reasonable and/or necessary.
Official District office hours are 8:00 am to 5:00 pm. Work schedules and days off shall be
arranged to maintain uninterrupted service to the District’s customers.
8
A. Standard Work Day/Week.
Standard Work Day. The standard work day is eight (8) consecutive hours of work exclusive of
a lunch period in a consecutive twenty-four (24) hour day. The standard work day is 12:01 a.m.
to 12:00 midnight.
Standard Work Week. The standard work week begins on Monday 12:01 a.m. and ends on
Sunday 12:00 midnight and is forty (40) hours of work performed within five (5) standard work
days during a work week.
B. Standard Work Periods.
The standard work periods shall be as follows:
1. For Fair Labor Standards Act (FLSA)-covered classes, the standard work period is seven (7)
consecutive days and generally consists of two (2) consecutive days of rest in a seven (7)
consecutive day period. The work period shall be forty (40) hours, except as provided
herein and depending on the position.
2. For FLSA Exempt classes, the standard work period is fourteen (14) consecutive days which
may generally consist of four (4) days of rest (two (2) instances of two (2) days of rest each)
in a fourteen (14) consecutive day period. This work period shall be eighty (80) hours.
C. Hours of Work: Regular Part-Time Employees. Regular part-time employees are those
employees who work in a regular part-time position for at least twenty (20) hours per week, but
less than thirty (30) hours per work week and less than sixty (60) hours per work period.
D. Alternative Work Schedules.
1. Required Advance Approval: Alternative Work Schedules are subject to approval by the
General Manager’s designee. However, Alternative Work Schedules are subject to change as
District needs dictate. Reasonable notice shall be given, normally at least ten (10) calendar
days prior to the change. However, the District may give less notice when reasonable and/or
necessary.
2. Alternative Work Schedules: The District may assign an employee to any of three (3)
Alternative Work Schedules:
a. The Four-Ten (4/10) schedule of four (4) ten (10) hour days of work within a forty (40)
hour work week.
b. The Four/Nine (4/9) schedule of four (4) nine (9) hour days and one (1) four (4) hour day
of work within a forty (40) hour work week.
c. The Nine/Eighty (9/80) schedule of eight (8) nine (9) hour days and one (1) eight (8)
hour day within two (2) consecutive work weeks.
For purposes of determining overtime under the FLSA for employees on a Nine/Eighty
(9/80) schedule, the work week will begin four (4) hours into an eight-hour shift and will
end mid-shift one week later, resulting in a work period of 40 hours (i.e., for an employee
9
who works Monday through Thursday, 8:00 am – 5:30 pm, and has an alternating designated
eight (8) hour day on Friday, 8:00 am – 5:00 pm, their first work week will begin on the
previous Friday at 12:01 pm and end at 12:00 pm on Friday of the first week of the pay
period. Work week two (2) will begin at 12:01 pm on that same Friday and end at 12:00 pm
the following Friday).
E. Round-the-Clock Staffing. Under conditions requiring round-the-clock staffing to ensure
continued water delivery to customers, a schedule may be implemented which consists of three
(3) consecutive twelve (12) hour shifts totaling thirty-six (36) hours in a work week. However,
employees so assigned shall receive pay at their regular rate of pay for forty (40) hours.
ARTICLE 5, SECTION 2: REST AND LUNCH PERIODS
One (1) paid ten-minute rest break shall be made available to employees for each four (4) hours of
service within a single work shift. An unpaid lunch period of at least thirty (30) minutes shall be
provided midway in the employee’s work day to any employee who works for at least six (6) hours
in a work day. Daily rest breaks not taken will be forfeited. Except as provided below, breaks may
not be combined with lunch periods, nor may they be moved to the beginning or ending of the work
day.
Where the interest of the District is served, the Manager may elect to combine rest and lunch
periods in order to expedite the completion of the job, which shall shorten the work day.
ARTICLE 5, SECTION 3: OVERTIME
This section is intended only to provide the basis for the calculation of and payment for overtime
and shall not be construed as a guarantee of hours of work per day or per pay period.
A. FLSA. In accordance with the FLSA, regular full-time employees’ overtime is authorized or
mandated work performed by an employee, which is in excess of the full regularly scheduled
work week of forty (40) hours.
Scheduled overtime is separate and distinct from call-back overtime, which is defined in Section
5 as unexpected or unanticipated overtime.
B. Computation of Overtime. Computation for overtime shall be based on the employee’s regular
rate of pay. The regular rate pay is the employee’s base salary plus any applicable differentials
or premium rates to which the employee is entitled.
C. Exclusion from Hours Actually Worked. Notwithstanding any other policy, practice, rule,
regulation, or Memorandum of Understanding provision to the contrary, any absence for court
leave/jury duty, standby time, unauthorized hours of work, or holiday pay on an employee’s
scheduled Alternative Work Schedule day off, and any unpaid time off, including disciplinary
suspensions or leaves of absences, shall not be counted as hours actually worked for purposes of
calculating overtime compensation.
A non-exempt employee must use available accruals to supplement for an 8-hour holiday or
work one (1) additional hour during the work week to make up for an 8-hour holiday which falls
10
on an employee’s alternative nine (9) hour day schedule, or two (2) hours to make up for an 8-
hour holiday which falls on an employee’s alternative ten (10) hour day schedule, such one (1)
or two (2) hours will not be eligible for overtime compensation. The additional hour(s) worked
must be made up in the same work week (Monday – Thursday) as the holiday.
D. Compensation for Overtime. Compensation is defined as either cash payment or
compensatory time off, or a combination of cash payment and compensatory time off, in
accordance with the overtime code for the employee’s class. Employees shall have their
overtime hours computed as follows:
Code “NE” (FLSA covered) Employees who are covered by FLSA (non-exempt) are eligible
for overtime at time and one-half, compensatory time off and for
premium compensation for working on holidays.
Code “E” (FLSA exempt) Employees exempt from FLSA. Exempt employees are not
eligible for overtime or compensatory time off and shall be
charged vacation or sick leave only if they are absent on leave
for a full work day.
ARTICLE 5, SECTION 4: COMPENSATORY TIME OFF
Compensatory time off is paid time off in lieu of cash payment for overtime worked. One hour of
overtime work earns one and one-half hours of compensatory time off. Employees will be allowed
to accrue compensatory time off when the employee has no accrued vacation and/or sick leave hours
due to being newly hired or due to exhausting accruals for legitimate personal leave reasons. For
example, family medical leave, pregnancy leave or other legitimate reasons. When an employee is
allowed to accumulate compensatory time off, such accrual shall be limited to accumulating a
maximum of sixty (60) compensatory time hours. An employee who has accumulated sixty (60)
unused hours of compensatory time shall be paid overtime compensation in cash for any additional
overtime worked.
Employees will be permitted to use accrued compensatory time off within a reasonable period after
providing advanced notice to and upon approval by the District, provided that such usage does not
unduly disrupt the District’s operations.
Compensatory time earned and used must be recorded on the District time sheet in the spaces
provided for “Compensatory Time Earned” and “Compensatory Time Used.” Both supervisor and
employee are required to certify the accuracy of the compensatory time accrual and use.
Compensatory time off earned may be used in the payroll period following the payroll period within
which it was earned.
Compensatory time off balances will be paid in cash to an employee at the time of an employee’s
termination at the employee’s final regular rate of pay.
The decision to pay for overtime worked in cash or compensatory time off shall be at the discretion
of the District.
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ARTICLE 5, SECTION 5: ASSIGNMENT PREMIUMS
Application of Premium Rates. Premium rates for all assignment premiums are paid only for hours
actually worked in the specific assignment and are not applicable to vacation or sick leave buyout or
to terminal pay.
A. Shift Pay. Shift pay is for an assigned shift other than the regularly scheduled day shift. Shift
pay shall be paid to employees for working ongoing regular shifts outside the hours of 6:00 a.m.
to 6:00 p.m.
1. Compensation for Shift Pay.
One dollar and fifty cents ($1.50) per hour in addition to the employee’s regular salary.
2. No shift pay will be paid for hours worked as an extension of a regularly scheduled shift
between 6:00 a.m. – 6:00 p.m.
B. Standby Duty.
1. The District may assign an employee to weekly standby duty on a rotating basis. Employees
assigned to standby duty must be able to respond to an emergency call within one hour.
Employees assigned to standby duty shall carry assigned equipment, provided by the
District, at all times during the standby assignment. The employee shall ensure that the
assigned equipment is charged at all times. The District’s Drug Free Workplace Policy
applies to employees assigned to standby duty. An employee assigned on standby duty who
fails, refuses, or is unable to respond to an emergency call is subject to disciplinary action.
2. Employees assigned to standby duty may arrange to be replaced by a substitute, provided
he/she receives approval from department supervision before the standby duty is scheduled
to begin.
3. Compensation for Standby Assignment. Employees on standby duty shall be paid two
dollars and fifty cents ($2.50) per hour for each hour the employee is on standby duty.
4. Compensation for Work Performed on Standby. An employee on standby, who is called in
for emergency work at times other than his/her regular work schedule shall receive a
minimum of two (2) hours of pay.
a. When responding to an alarm via SCADA or calls from the answering service from home
(place of contact), employees receive compensation in the following increments.
Up to 15 minutes = 15 minutes of pay
16 –– 30 minutes = 30 minutes of pay
31 –– 45 minutes = 45 minutes of pay
46 –– 60 minutes = 60 minutes of pay
b. If the employee responds to an alarm or to calls from the answering service from home
(place of contact) between midnight and 6:00 a.m. and has at least two (2) hours of
cumulative paid time during this time period, the employee will receive five (5) hours of
rest time from the completion of the last call.
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5. This Standby section shall cease to be effective if the District establishes a second and/or
third shift emergency crew.
C. Call-Back Duty.
1. Eligibility. Call-back work is work required of an employee who, following completion of
the employee’s work day and departure from the employee’s work site, is ordered to report
back to duty to perform necessary work. The District’s Drug Free Workplace policy applies
to all employees that report to work and it is the employee’s responsibility to ensure that
they are in compliance with said policy and are otherwise able to safely and effectively
perform their required duties when called back to work. If an employee is under the
influence of alcohol or a controlled substance when requested to report back to work, he/she
is required to decline the call-back duty assignment. An employee who declines call-back
duty for that reason will not be subject to disciplinary action, except for an employee on
standby duty, who is subject to discipline for declining a call-back due to the standby
requirements set forth in Section B, above.
2. Qualifications. To qualify for this call-back provision, an employee must leave the place
from which the employee is called and actually report to a work site. Neither changes in a
shift or work schedule shall constitute call-back work.
3. Compensation. An employee who is called back shall receive a minimum of two (2) hours
pay.
4. Work Performed at Place of Contact. An employee contacted by the department during
his/her off duty hours and required to perform services without leaving the place of contact
shall receive compensation for such time worked in the same manner such employees
receive scheduled overtime compensation. To be eligible for such compensation, employees
must be authorized and ordered by the District to perform such services.
5. Multiple Call-Backs. An employee who is contacted while serving a call back and is called
to another site for additional duties shall not be compensated for a second or subsequent call
back for this assignment. However, if the employee has left the work site, or sites, and is
actually returning, or has returned, to his/her original point of contact, and is then called
back again outside of the original two (2) hours minimum pay timeframe, the employee shall
be compensated for an additional call back.
6. Travel Time. For purposes of computing call-back pay, travel time from the employee’s
residence (place of contact) to their reporting station and return home shall be included in
the minimum call-back pay except that, if the employee is required to remain on duty until
the start of their regularly scheduled shift, return travel time to the employee’s residence will
not be paid. Pay for call-back situations shall be computed as follows: If the combined
travel time and work time is less than the minimum call-back time of two (2) hours, the
employee shall be paid the minimum two (2) hours of call-back time. If the combined travel
time and work time is more than the two (2) hours call-back time, pay shall be the actual
total of work time and travel time.
7. Rest Time. Employees that work more than three (3) continuous hours of call-back time
shall have eight (8) hours of rest time before reporting back to work (subject to the exception
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discussed below). If the minimum rest time will result in the employee not being able to
report to work at their normal start time in the next work shift, the employee and supervisor
shall mutually coordinate a reasonable return to work time. In that event, the employee will
receive pay at the regular rate of pay for the required rest period only for hours that overlap
with the employee’s regularly scheduled work shift. An employee may request additional
rest time, beyond the minimum required, subject to supervisor approval and may choose to
either take unpaid time, vacation, or compensatory time.
Notwithstanding the foregoing, if at the District’s discretion, after the call-back work is
completed, an employee is needed to work their regular shift because of lack of skilled
personnel prior to them having eight (8) hours of rest time or five (5) hours of rest time as
defined in Article 5, Section 5, B.4(b), the employee will be paid at one and one-half (1-1/2)
times his/her regular rate for hours worked in his/her regular shift on that day.
D. Report Time Pay.
Two Hours: An employee who reports for work on his/her regular shift and is then sent home
because of lack of work, inclement weather, or natural disaster shall receive two (2) hours pay at
his/her regular rate of pay and may supplement the remainder of the day with vacation,
compensatory time or unpaid time subject to supervisor approval. If an employee is sent home
after working two hours or more, he/she shall be paid only for the hours actually worked at
his/her regular rate of pay.
ARTICLE 5, SECTION 6: TEMPORARY ASSIGNMENTS AND OUT-OF-CLASS
APPOINTMENTS
A. Assignment.
1. Temporary Assignment.
The General Manager or designee may approve a temporary assignment of a qualified
employee assigned to perform duties of a class which is compensated at a rate higher than
such employee’s class when such position is temporarily vacant due to the incumbent being
absent therefrom. The temporary assignment must be for at least two (2) weeks, but not
over fifty-two (52) weeks.
2. Out-of-Class Appointment.
The General Manager or designee may assign an out-of-class appointment to an upgraded or
higher classification to a vacant position during recruitment for a regular appointment. Out-
of-class appointments are limited to 960 hours per fiscal year and must not exceed fifty-two
(52) weeks if appointment is in multiple fiscal years.
3. Modification of Duties.
The General Manager or designee may, in his or her discretion, temporarily modify the
duties of the vacant position due to absence or during recruitment, as District needs dictate.
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B. Compensation.
When either (a) an employee is temporarily assigned to perform duties of a vacant higher
class position due to absence or during recruitment, or (b) if the District temporarily
modifies the duties of a vacant position due to absence or during recruitment, resulting in an
employee performing some but not all of the duties that would be regularly performed in
such position, the District will pay a premium rate of at least five percent (5%) above the
employee’s salary in their current position. For employees assigned to perform modified
duties of a higher class, the employee will remain in his/her current class and the premium
pay shall be at least the difference between the rate of compensation in his/her current class
and that of the minimum salary of the range of the temporarily vacant class, whichever is
greater.
At no time will the temporarily assigned or out-of-class appointment employee be paid a rate
higher than the maximum of the range for the temporarily vacant class. Employees on
temporary assignments or out-of-class appointments will be compensated from the first day
of appointment, provided the assignment is for at least two (2) weeks. The premium rate
shall not apply to vacation or sick leave buyouts during the period of the temporary
assignment.
C. End of Assignment.
At the conclusion of such temporary assignment or out-of-class appointment, the employee’s
rate of pay shall be returned to his/her rate of pay immediately prior to the temporary
assignment or out-of-class appointment, and adjusted for any wage adjustment(s) which may
have been made during the temporary assignment or out-of-class appointment.
D. Employment Termination During Assignment.
An employee who is temporarily assigned to the duties of a higher class, and who terminates
District service during such assignment, shall be paid termination benefits at the rate the
employee was paid prior to the temporary assignment or out-of-class appointment, adjusted
for any wage adjustment(s) which may have been made during the temporary assignment or
out-of-class appointment.
ARTICLE 6 - ALLOWANCES FOR WORK-RELATED EXPENSES
ARTICLE 6, SECTION 1: MEAL ALLOWANCE
A. Overtime. The District will provide a meal for an employee who is authorized or ordered to
work, and does actually work three (3) hours or more of overtime as an extension of his/her
regularly assigned work shift.
ARTICLE 6, SECTION 2: SAFETY BOOT ALLOWANCE
A uniform boot allowance of up to two hundred and fifty dollars ($250.00) per pair shall be
provided for uniformed employees, as determined by the District.
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The allowance is provided to reimburse the uniformed employee for an initial purchase and
subsequent reimbursement of replacement boots as needed and approved by the District in
accordance with the Procedures and Guidelines as outlined within the District’s Uniform Standards ..
ARTICLE 6, SECTION 3: SAFETY GLASSES AND SPECTACLE KITS
A. Safety Glasses. Prescription safety glasses allowance of up to four hundred dollars ($400) per
pair will be provided for employees working in areas where eye protection is required at all
times. If it is medically necessary for an employee to wear prescription safety glasses that
exceeds the $400 limit, the District will reimburse the full amount, provided that the employee
obtains advanced District approval and submits a doctor’s note indicating the medical necessity.
The prescription safety glasses shall meet current ANSI/ISEA Z87-1 standards. The District
will reimburse no more than one (1) pair of prescription safety glasses per employee per fiscal
year, unless the safety glasses were damaged due to a work-related incident not caused by
negligence. The District’s obligation under this section does not include special tints or other
features.
B. Spectacle Kits. Employees who are required to wear full-face respirators are eligible to receive
spectacle kits that consist of frames without the lenses to be fitted into the full-face respirators.
When the employee has the lenses fitted by their optometrist, the District will reimburse the
employee in the same manner set forth for prescription safety glasses. If an employee is unable
to find an optometrist who will fit lenses into frames supplied by the employee, the District will
facilitate and fund the fitting of lenses up to the reimbursement amount in this section.
C. Prescription. The employee is responsible for providing a current prescription before the glasses
or lenses are ordered.
ARTICLE 7 - EMPLOYEE BENEFITS
ARTICLE 7, SECTION 1: PENSION (RETIREMENT PLAN)
The administration of the Pension Retirement Plan shall conform and be subject to California Public
Employees Retirement System (PERS) requirements and the California Public Employees’ Pension
Reform Act of 2013 (PEPRA).
Retirement benefits and the Pre-retirement Option 2 Death Benefit are provided to eligible regular
employees under PERS.
A. Definitions.
1. New Member.
a. An individual hired on or after January 1, 2013 who has never been a member of any
public employee retirement system prior to January 1, 2013; or
b. An individual hired on or after January 1, 2013 who moved between retirement systems
without reciprocity; or
c. An individual hired on or after January 1, 2013 who moved between retirement systems
with more than a six month break in service (unless the individual left Otay Water
District and returned to Otay Water District employment).
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2. New Employee.
a. An individual employed for the first time by any public employer on or after January 1,
2013; or
b. An individual employed for the first time by any public employer on or after January 1,
2013 and who was employed by another public employer prior to that date, but who was
not subject to reciprocity.
3. Current Member.
a. An individual hired before January 1, 2013; or
b. An individual hired on or after January 1, 2013, who is hired from another public agency
that has reciprocity with PERS and that did not have a break in service of more than six
(6) months.
B. Retirement Formula.
1. Hired on or after January 1, 2013 (New Members/New Employees):
The basis for computing employee retirement compensation shall be two percent (2%) at age
62 PERS Formula based on the employee’s 36 months of highest average annual
compensation, subject to the cap set forth in Government Code section 7522.10.
2. Hired before January 1, 2013 (Current Members):
The basis for computing employee retirement compensation shall be two point seven
percent (2.7%) at age 55 PERS Supplemental Formula based on the employee’s single
highest year annual compensation.
C. Employee Contribution.
1. Hired on or after January 1, 2013 (New Members/New Employees):
The employee shall pay fifty percent (50%) of the normal cost rate for the defined benefit
plan, subject to the cap set forth in Government Code section 20516.5.
2. Hired before January 1, 2013 (Current Members):
The employee shall pay eight percent (8%) of their annual pensionable compensation toward
their pension.
D. Special Compensation.
1. Holiday pay is reported for employees who work in positions that require scheduled staffing
without regard to holidays. If the employee is paid over and above the normal salary when a
holiday is worked, the additional pay is reported separately to CalPERS as special
compensation. This applies to both current and new members/employees.
2. Uniform Allowance.
Hired on or after January 1, 2013 (New Members/New Employees):
Uniform Allowance is not pensionable compensation and not reported to CalPERS as
special compensation.
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Hired before January 1, 2013 (Current Members):
Uniform Allowance is reported for employees required to wear a uniform, although the cost
is absorbed by the District. These costs are reported to CalPERS as special compensation.
The annual cost of uniforms is divided by the number of participating employees to
determine the reportable amount, not to exceed thirty dollars ($30).
3. Temporary Assignment/Out-of-Class Appointment.
Hired on or after January 1, 2013 (New Members/New Employees):
Temporary Assignments or Out-of-Class Appointments to a vacant position due to an
absence or vacancy is not pensionable compensation and not reported to CalPERS as special
compensation.
Hired before January 1, 2013 (Current Members):
Temporary Assignments or Out-of-Class Appointments to a vacant position due to an
absence or vacancy is pensionable compensation and reported to CalPERS as special
compensation. However, when the duties of the vacant position are temporarily modified,
resulting in the employee performing some, but not all of the duties that would be regularly
performed in such position, the premium rate above the employee’s salary in their current
position is not pensionable compensation and not reported to CalPERS as special
compensation.
4. Educational Incentive.
Compensation received by employees in certain classifications as a part of the District’s
Recognition Program for completing certain educational certificates which enhance the
employee’s ability to do his/her job as defined by the Certification Incentive Plan HR
Procedure, not to exceed 5% of the employee’s salary. This applies to both current and new
members/employees.
ARTICLE 7, SECTION 2: SHORT TERM/LONG TERM DISABILITY INSURANCE
Short-Term/Long-Term Disability Insurance is available to all full-time regular employees on the
first of the month following the hire date. The details of the plan are as set forth in a separate
booklet furnished to all eligible employees, is referenced only to provide additional information, and
is not incorporated into the MOU.
A. Premium. The premium is based on the employee’s salary and is paid by the District.
ARTICLE 7, SECTION 3: GROUP HEALTH AND DENTAL INSURANCE: ACTIVE
EMPLOYEES
A. Active Employees’ Health and Dental Insurance Eligibility. Regular full-time employees and
their eligible dependents are eligible for coverage under the District-selected medical and dental
insurance plans, which includes a Flexible Benefits Plan, effective the first of the month
following date of hire and upon proper application, acceptance, and continuous service. Regular
part-time employees and their eligible dependents are eligible for coverage effective the first of
the month following date of hire and upon proper application, acceptance, and continuous
service, except that the District’s contribution is limited to one-half (1/2) of the District’s
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contribution as provided below. The medical and dental plan details are set forth in a separate
booklet furnished to eligible employees, is referenced only to provide additional information,
and is not incorporated into the MOU.
B. Health Insurance Coverage.
1. Dental Coverage. All eligible employees are required to enroll in the dental insurance plan
for the employee only.
2. Medical Coverage. All eligible employees must select from the following two (2) options:
Option 1: Waive Coverage
You may elect to waive coverage if you are covered by another group health insurance plan,
subject to plan provisions or District approval. You will be required to provide proof of
medical insurance coverage.
Option 2: Medical Insurance
You may elect to enroll in the District-selected medical plan in accordance with the
eligibility and enrollment guidelines. Married District employees are required to enroll on
the same medical plan as a family.
C. District/Employee Contribution.
The formula for District and employee medical and dental insurance contributions shall be:
100% of the premium paid by the District for employees.
88% of the District-selected premium paid by the District for dependents; 12% paid by the
employee.
D. Reservation of Rights.
The coverage and benefits provided by this section shall only be valid for the term of this MOU
and are not guaranteed beyond that. Moreover, subject to state law governing the duty to meet
and confer, the District expressly reserves the right to amend or modify the District-selected
insurance plans at any time and employees acknowledge that they are not entitled to any specific
type of plan or coverage. The District’s decision to change or end the current plan may be due
to, but are not limited to, changes in federal or state laws or regulations governing medical or
dental insurance benefits, the provisions of a contract or policy involving an insurance company,
cost or coverage changes, or any other reason.
ARTICLE 7, SECTION 4: GROUP HEALTH AND DENTAL INSURANCE: RETIRED
EMPLOYEES
A. Retiree Health Insurance Guaranteed. The provision of health insurance and access to medical
and dental insurance for employees retiring who held full-time status during their employment
and their eligible dependents (as set forth below) are guaranteed for the life of the retiree and
spouse. However, the District reserves the right to make changes related to the overall
administration of the plan (e.g., changing health care providers) that do not have a major impact
on the overall plan structure. The medical plan details are set forth in a separate booklet
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furnished to eligible employees, is referenced only to provide additional information, and is not
incorporated into the MOU.
B. Hired on or after January 1, 2013 (New Members/New Employees).
The employee shall pay the difference between 8.75% of annual pensionable compensation and
50% of the normal cost rate for the defined benefit plan to the District to offset the District’s
costs for post-retirement health benefits set forth in this section. Such payments to and
contributions by the District shall be subject to and comply with the requirements for the
District’s Prefunding Plan under the California Employer’s Retiree Benefit Trust Program (the
Trust).
Hired before January 1, 2013 (Current Members).
The employee shall contribute three quarters of one percent (0.75%) of annual pensionable
compensation to the District to offset the District’s costs for post-retirement health benefits set
forth in this section. Such payments to and contributions by the District shall be subject to and
comply with the requirements for the Trust.
C. Eligibility. Retirement through the District’s Pension Retirement Plan (currently CalPERS) is
required to be eligible to receive Retiree Health Insurance in addition to any other provisions set
forth herein. Additionally, Medicare-eligible retirees and retiree’s spouse are required to sign up
for Medicare Parts A and B at the retiree’s and/or spouse’s expense, if eligible, to be eligible for
District retiree health coverage.
D. Eligible Dependents. Eligible dependents include those dependents who were covered by the
District’s health insurance on the date the employee ceased active service with the District.
Dependents acquired after the employee retires are not eligible for coverage. If the retiree dies,
or an active employee dies, and such employee was eligible to be covered by health insurance as
a retiree on the date of death, then such employee’s dependent(s) will be eligible for District-
paid continuation of health insurance coverage at 88% for the life of the retiree’s spouse. If
there are dependent children eligible for coverage, such unmarried children are eligible for
District-paid continuation of health insurance coverage at 88% up to age 19. Plan requirements
shall be set forth in a separate booklet furnished to all eligible retirees, is referenced only to
provide additional information and is not incorporated into the MOU. Dependent children may
be allowed to remain on the plan at the retiree’s own expense beyond age 19 as required by law.
E. Health and Dental Insurance Premium Contributions. District contributions towards health and
dental insurance premiums for retired employees who held full-time status during their
employment, shall be as follows; and medical and dental plan requirements shall be as set forth
in separate booklets furnished to all eligible retirees, are referenced only to provide additional
information, and are not incorporated into the MOU:
1. Regular Retirement.
a. Qualifications for represented employee coverage are:
The employee has attained age 55; and
The employee has completed twenty (20) years of continuous full-time service from
latest date of hire.
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b. District/retiree contribution:
District and retiree health and dental insurance contributions shall be based on the
following formula:
Employee Only: 100% of the premium paid by the District.
Employee+1: 88% of the District-selected premium paid by the District;
12% paid by the employee.
Employee+2 or more: 88% of the District-selected premium paid by the District;
12% paid by the employee.
This shall be a fixed percentage and shall not change after the employee retires.
2. Early Retirement.
a. Early Retirement Due to Employee Disability.
An employee may retire between the ages of 50 and 54, if (1) the employee is disabled
and unable to work the usual duties of the employee’s position on a permanent basis or
long-term basis (subject to District approval), (2) has a minimum of ten (10) years of
continuous full-time District service from latest date of hire, and (3) also takes an early
retirement through the District’s retirement pension plan (CalPERS). The District will
make the final determination of disability eligibility. The District has sole discretion to
determine whether the employee is disabled to qualify for this benefit and to adopt
policies, regulations, and/or guidelines to aid in this determination. The Association
waives for the life of this agreement its right to negotiate the District’s ability to
determine who is disabled and to determine the policies, regulations and/or guidelines.
b. Early Retirement Due to Employee Hardship.
An employee may retire between the ages of 50 and 54, if (1) the employee experiences
a severe hardship (subject to District approval), (2) has a minimum of twenty (20) years
of continuous full-time District service from latest date of hire, and (3) also takes an
early retirement through the District’s retirement pension plan (currently CalPERS). A
severe hardship may include a spouse who suffers from a serious and prolonged illness
or disability where the employee is required to care for the spouse or other similar
extraordinary circumstances. The District will make the final determination of hardship
eligibility. The District has sole discretion to determine whether the employee has a
qualified hardship to be eligible for this benefit and to adopt policies, regulations, and/or
guidelines to aid in this determination. The Association waives for the life of this
agreement its right to negotiate the District’s ability to determine who qualifies for this
benefit and to determine the policies, regulations and/or guidelines.
c. Benefit Level.
If an employee is permanently disabled or has a severe hardship as defined above, the
employee may be eligible for retiree health benefits provided they are an active employee
who has attained age 50 and has years of continuous service as defined above. The
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employee and eligible dependents would receive a reduced contribution level toward the
District’s current retiree medical and dental benefit plan as follows:
Early Retirement Due to Disability or Hardship
Age at Time of Retirement District Fixed Percentage
Contribution Level
50 70%
51 76%
52 82%
53 88%
54 94%
If disability retirement or hardship is approved by the District, the percentage of the retiree’s
health benefit premium to be paid by the District will be determined based on the retiree’s
age at the time the retirement becomes effective, as demonstrated in the above table. The
District’s fixed percentage contribution will not increase over time. The same fixed
percentage will be applied to calculate the District’s portion for any qualified dependent(s).
ARTICLE 7, SECTION 5: LIFE INSURANCE: ACTIVE EMPLOYEES
Group Term Life Insurance is provided to regular full-time and regular part-time employees and
their eligible dependents. The details of the plan are as set forth in a separate booklet furnished to all
eligible employees, is referenced only to provide additional information, and is not incorporated into
the MOU.
A. Premiums. The premium is based on the employee’s coverage and is paid by the District. In
addition, an employee may elect to cover him/herself and eligible dependents for voluntary term
life insurance. The full cost of this voluntary term life insurance is paid by the employee
through payroll deduction. The details of the plan are as set forth in a separate booklet furnished
to all eligible employees.
B. Reservation of Rights. The coverage and benfits provided by this section shall only be valid for
the term of this MOU and are not guaranteed beyond that. Morever, subject to state law
governing the duty to meet and confer, the District expressly reserves the right to amend or
modify the District-selected Group Term Life Insurance plan at any time and employees
acknowledge that they are not entitled to any specific type of plan or coverage. The District’s
decision to change or end the current plan may be due to, but are not limited to, changes in
federal or state laws or regulations governing life insurance benefits, the provisions of a contract
or policy involving an insurance company, cost or coverage changes, or any other reason.
ARTICLE 7, SECTION 6: DEATH BENEFIT
In the event of an employee’s death, any unpaid wages, accrued unused vacation, accrued unused
sick leave, accrued/unused birthday holiday, and/or accrued unused compensatory time shall be paid
to the beneficiary designated in the Group Term Life Insurance Beneficiary form filed in Human
Resources or as otherwise required by law.
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ARTICLE 8 - PAID LEAVES
ARTICLE 8, SECTION 1: HOLIDAYS AND HOLIDAY COMPENSATION
The District recognizes the following fourteen (14) holidays:
1. New Year’s Day
2. Dr. Martin Luther King Jr’s. Birthday
3. Presidents Day
4. Cesar Chavez Day
5. Memorial Day
6. Independence Day
7. Labor Day
8. Veterans Day
9. Thanksgiving Day
10. Friday following Thanksgiving Day
11. Christmas Day
12. Two (2) Floating Holidays (see subsection “A” below)
13. Employee’s Birthday (see subsection “B” below)
A. Floating Holiday. Two (2) floating holidays shall be granted to employees to use in conjunction
with other holidays. To establish the date of this holiday, on or before October first (1st) of each
year, the Association shall notify the District of their preference for scheduling it. The District
will then, at its discretion, schedule the holiday on the date requested by the Association, if
consistent with and not detrimental to the District’s operations.
B. Employee’s Birthday. With advanced approval, the employee’s birthday holiday may be used
on the date of the employee’s birthday or at any time after his/her birthday (subject to the time
limitations below). Employees will not be paid for unused birthday holidays. An employee
must notify his/her supervisor when he/she would like to take his/her birthday holiday. This
holiday is to be used within twelve (12) calendar months from the date it is granted.
C. Saturday and Sunday Holidays. Holidays falling on Saturday will be observed on the preceding
Friday and holidays falling on Sunday will be observed on the following Monday, which days
shall be considered as the designated holiday.
D. Eligibility for Holidays. In no event shall the employee receive holiday pay unless he/she is on
the payroll the day the holiday occurs and has worked or has paid service on his/her full,
regularly-scheduled shift the full day before and the full day after the holiday.
E. Compensation for Holidays.
1. Eligible full-time employees shall receive eight (8) hours pay for holidays, and eligible
regular part-time employees shall receive four (4) hours pay for holidays, regardless of the
day of the week on which the holiday falls, and regardless of whether it was worked or not.
While on Personal Leave, FMLA, CFRA Leave, or Pregnancy Disability Leave (PDL), an
employee will not be entitled to holiday pay.
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2. Compensation for Working on a Holiday: In addition to subsection E (1) above, an FLSA
non-exempt employee who works on a holiday shall be compensated at time and one-half
(1-½) the employee’s regular hourly rate for all hours worked on that holiday.
3. Weekend Holidays: An employee who works on Christmas Day, New Year’s Day, and/or
Independence Day when these three (3) holidays fall on a weekend shall be compensated at
time and one-half (1-½) the employee’s regular rate of pay either on the Monday or Friday
upon which the holiday is observed or on the actual day of the holiday, whichever day
coincides with the day the employee works.
4. A non-exempt employee must use available accruals to supplement for an 8-hour holiday or
work one (1) additional hour during the work week to make up for an 8-hour holiday which
falls on an employee’s alternative nine (9) hour day schedule, or two (2) hours to make up
for an 8-hour holiday which falls on an employee’s alternative ten (10) hour day schedule,
such one (1) or two (2) hours will not be eligible for overtime compensation. The additional
hour(s) worked must be made up in the same work week (Monday – Thursday) as the
holiday.
ARTICLE 8, SECTION 2: VACATION
A. Eligibility. Vacation is paid time-off earned by eligible regular full-time employees. Regular
part-time employees shall earn fifty percent (50%) of the vacation credits earned by full-time
employees.
An employee’s vacation credits earned become available for use as it is accumulated on a daily
basis for actual hours paid in the payroll period and may be used beginning in the payroll period
following the payroll period within which it was earned.
B. Earnings. Eligible employees earn vacation credit as follows:
Years of Continuous Service with the District Hour/Day Equivalent for Full-Time Employees
Over One (1) Year (26 Biweekly Pay Periods)
Up to Five Years 96 hours/12 Days
Six Years 104 hours/13 Days
Seven Years 112 hours/14 Days
Eight Years 120 hours/15 Days
Nine Years 128 hours/16 Days
Ten Years 136 hours/17 Days
Eleven Years 144 hours/18 Days
Twelve Years 152 hours/19 Days
Thirteen Years 160 hours/20 Days
Fourteen Years 168 hours/21 Days
Fifteen Years 176 hours/22 Days
Twenty Years 184 hours/23 Days
Vacation credit continues to accrue when an employee is on paid vacation or sick leave.
C. Maximum Balance. The maximum amount of vacation an eligible employee may accumulate is
four (4) times his/her annual rate of accrual.
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D. Granting Requests. Vacations will, so far as practicable, be granted at the time requested by the
employee provided the employee has enough hours to cover the request. However, the District
may schedule and approve or deny vacations at its discretion to assure orderly operation of the
District.
E. Use of Vacation Leave in Lieu of Sick Leave. If employee has used all available sick leave,
vacation credits may also be used by an employee for sick leave with prior approval by the
District.
F. Terminal Payment of Vacation. An employee, at the time he/she terminates employment with
the District, shall be paid for any unused vacation credits at the employee’s rate of pay at the
time of leaving employment. Employees shall not be allowed to take vacation to extend their
date of termination.
Notwithstanding any other provision in this Article 8, Section 2(G), for employees designated as
Employees’ Field Unit and Administrative Employees’ Unit, an eligible employee (as defined in
the last sentence) who is a participant in the Otay Water District Terminal Pay Plan on the date
of his or her separation from District service, shall not be paid the monetary value of all
available vacation credit as provided in Article 8, Section 2(G) above but, in lieu of such
payment, the District shall make a monetary contribution in the amount of the monetary value of
the vacation credit, up to the lower of the amount due or the amount allowed by law, towards the
benefits provided for under the District’s Terminal Pay Plan, if any, as provided therein. An
eligible employee is a regular employee who is age 55 or older at the time of his/her termination
of employment or who terminates employment because of his/her death.
G. Returning Employees. If an employee terminates from his/her position at the District and then
returns to District employment within thirty-six (36) months, the employee will accrue vacation
on the schedule based on his/her years of service at the time he/she left the District.
ARTICLE 8, SECTION 3: SICK LEAVE
A. Eligibility. Sick leave is paid time-off for use as described herein, earned by eligible regular
full-time employees. Regular part-time employees shall earn fifty percent (50%) of the sick
leave credits earned by full-time employees.
An employee’s sick leave credits earned become available for use as they are accumulated on a
daily basis for actual hours paid in the payroll period and may be used in the payroll period
following the payroll period within which it was earned.
B. Earnings. Eligible employees earn sick leave credit as follows:
Years of Continuous Service with the District Hour/Day Equivalent for Full-Time Employees
Over One (1) Year (26 Biweekly Pay Periods)
Up to Five Years 64 Hours/8 Days
Over Five Years but less than Ten Years 80 Hours/10 Days
Ten Years 120 Hours/15 Days
Sick Leave credits will continue to accrue when an employee is on paid vacation or sick leave.
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C. Allowable Use of Sick Leave. Sick leave shall be allowed and used for personal illness, injury,
medical appointments, and medical consultations and/or treatment, including hospitalization.
Sick leave may also be used to care for the illness, injury, medical appointments, medical
consultations and/or medical treatment of family members. Within a calendar year, an
employee may use an amount of sick leave, equal to or less than that which he/she accrues in six
months (i.e. one-half of his/her annual sick allotment) for family members or, for an employee
who is a victim of domestic violence, sexual assault, or stalking, the purposes described in
subdivision (c) of section 230 and subdivision (a) of section 230.1 of the Labor Code.
D. Relationship to Other Leaves. To the extent that the employee’s own illness, illness of family
member or extended family member overlaps with any other form of leave (i.e., Kin Care, Paid
Sick Leave Law, Family Medical Leave Act or California Family Rights Act), the leave shall
run concurrently with each such leave.
E. Use of Sick Leave in Lieu of Vacation Leave. If an employee has used all available vacation
leave, sick leave may, with advance notice and prior approval by the District, be used as
vacation.
F. Definition of Family Member. Family members for the use of sick leave are defined as:
Child. “Child” is defined as a biological, foster or adopted child, stepchild, legal ward, or a
child of an employee or his/her spouse/registered domestic partner (as defined in California
Family Code §297) who is acting in loco parentis;
Spouse or registered domestic partner;
Parent. Parent is defined as a biological, adoptive, or foster parent, stepparent, or legal
guardian of an employee or the employee’s spouse or registered domestic partner, or a
person who stood in loco parentis when the employee was a minor child;
Grandparent;
Grandchild;
Sibling.
G. Verification of the Proper Use of Sick Leave. The District may require verification of the
proper use of sick leave at any time. If the use of sick leave for illness or injury exceeds one-
half (1/2) of the employee’s annual sick leave allotment (i.e., that which he/she accrues in six
months), the employee shall provide the District with a medical doctor’s written verification of
the illness or injury. The doctor’s written verification must include a statement indicating that
the employee is unable to work and whether there are any work restrictions.
H. Maximum Balance. The maximum sick leave balance for eligible employees shall be six
hundred (600) hours of sick leave credits.
I. Terminal Payment of Sick Leave. An employee, at the time he/she terminates employment with
the District, shall be paid for any unused sick leave credits at the employee’s rate of pay at the
time of leaving employment. Employees shall not be allowed to take sick leave to extend their
date of termination.
Notwithstanding any other provision in this Article 8, Section 3(I), an eligible employee (as
defined in the last sentence) who is a participant in the Otay Water District Terminal Pay Plan
on the date of his or her separation from District service, shall not be paid the monetary value of
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all available sick leave balance otherwise payable under this Article 8, Section 3(I) but, in lieu
of such payment, the District shall make a monetary contribution in the amount of the monetary
value of the sick credit, up to the lower of the amount due or the amount allowed by law,
towards the benefits provided for under the District’s Terminal Pay Plan, if any, as provided
therein. An eligible employee is a regular employee who is age 55 or older at the time of his/her
termination of employment or who terminates employment because of his/her death.
J. Returning Employees. If an employee terminates from his/her position at the District and then
returns to District employment within thirty-six (36) months, the employee will accrue sick
leave on the schedule based on his/her years of service at the time he/she left the District.
ARTICLE 8, SECTION 4: JURY DUTY (COURT LEAVE)
A. Definition. Jury duty (court leave) is paid leave granted by the District to an eligible employee
to enable that employee to fulfill his/her duty as a citizen to serve as a juror, or as a prospective
juror, or to serve as a witness in a court action to which the employee is not a party, before a
Federal, Superior or Justice Court located within San Diego County.
B. Eligibility. An employee who has received an order from a court is eligible for court leave.
Court leave is not granted when the employee is paid an expert witness fee or when attendance
is part of the employee’s official District duties. The employee must notify his/her supervisor
immediately of any notice he/she receives to report for jury duty. The District may direct the
employee to reschedule to ensure orderly operation of the District. The employee shall furnish
the District with a statement, letter or timecard from a court official certifying the employee’s
service as a juror or prospective juror.
C. Court Leave Shall be Limited to and Subject to the Following:
1. Required attendance before Federal, Superior and Justice Courts located within the County
of San Diego. Immediately after the employee is dismissed from jury service the employee
must report to their supervisor. Employees will be provided reasonable travel time
depending on location of jury service and mode of transportation taken. If there would be
two (2) or more hours left in the work shift by the time the employee would be able to report
to work, the employee shall either report to work or request to use vacation or compensatory
time off for the remainder of the day, with supervisor approval. If there are less than two (2)
hours left in the work shift, employee can go home and report to the next regular shift and
receive pay at regular rate of pay.
2. Jury service on a regular workday. Payment shall not be made for jury duty performed on an
employee’s regular day off. Similarly, payment for jury service on Saturdays or Sundays
shall not be made unless those are regularly scheduled workdays for the employee and the
employee was required to report to jury duty or for hours in excess of the employee’s
regularly scheduled workday, work week or work period. Refer to the Alternative Work
Schedule procedure for additional guidelines.
3. Attendance that is required as a result of a notice to appear from the Jury Commissioner. If
an employee volunteers to serve on jury duty even though the local rule of the court does not
require it, the District will not pay the employee’s salary for the period of such service.
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However, with advance District approval, the employee may use accrued vacation, sick
leave, or compensatory time to compensate him/her for the hours missed while on voluntary
jury duty. No unpaid leave shall be granted for voluntary jury duty without prior approval of
the employee’s supervisor.
ARTICLE 8, SECTION 5: BEREAVEMENT LEAVE
A. Definition. Bereavement leave is paid leave granted by the District which is available to an
employee at the time of death or funeral of a member of the employee’s immediate family as
defined below.
B. Eligibility. Regular employees are eligible for bereavement leave. Employees on a leave of
absence status are not eligible.
C. Amount of Leave. Bereavement leave shall not exceed three (3) regularly scheduled work days
for the death and funeral of a member of the employee’s immediate family. However, an
employee shall be entitled to use two (2) days of sick leave, vacation, or compensatory time (if
available) to supplement their bereavement leave. Regular part-time employees shall be eligible
for fifty percent (50%) of the amount of leave granted to full-time employees.
D. Immediate Family. For purposes of bereavement leave only, immediate family is defined as:
Spouse, registered domestic partner (as defined in California Family Code §297), parent,
stepparent, parent of current or deceased spouse or registered domestic partner, child, stepchild,
grandchild, grandparent, brother, or sister.
E. Verification of Proper Use of Bereavement Leave. If requested by the District, application for
paid bereavement leave must be supported by satisfactory evidence of death and family
relationship.
ARTICLE 8, SECTION 6: SCHOOL AND CHILD CARE PROVIDER ACTIVITIES LEAVE
A. Definition. School and Child Care Provider Activities Leave is the allowable use of the
employee’s existing leave credits to attend school or child care provider activities to enroll or re-
enroll a child in a school or with a licensed child care provider, or to address a school or child
care provider emergency.
B. Eligibility. A regular employee who is a parent, guardian, stepparent, foster parent or
grandparent with custody, or who stands in loco parentis, of a child enrolled in grades K through
12 of a public or private school, or in a licensed child day care facility, is eligible for School or
Child Care Provider Activities Leave.
C. Amount of Leave. An employee may use as School or Child Care Provider Activities Leave, up
to forty (40) hours of his/her existing vacation, sick leave, or compensatory time balance per
calendar year, but not more than eight (8) hours in any one (1) calendar month, regardless of the
number of children the employee may have. The eight (8) hour per month limitation does not
apply for leave to address a school or child care provider emergency. If the employee does not
have sufficient paid leave available, he/she shall be allowed to take unpaid personal leave.
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D. Required Advance Notice. Employees are required to give forty-eight (48) hours advance
notice, unless it is a school or child care provider emergency as indicated in “F” below, of their
desire to take School or Child Care Provider Activities Leave. Advance notice of less than
forty-eight (48) hours may only be given with approval by the District. The District may also
require that the employee provide documentation verifying participation in school or child care
provider activities.
E. Parents Employed by District. If both parents of a child are District employees, only the parent
who first gives notice shall be automatically permitted to take School or Child Care Provider
Activities Leave. The other parent may be permitted to take School or Child Care Provider
Activities Leave simultaneously if the District approves the requested time off.
F. Definition of School or Child Care Provider Emergency. An emergency means that an
employee’s child cannot remain in school or with a child care provider due to one of the
following:
The school or child care provider has requested that the child be picked up, or has an
attendance policy, excluding planned holidays, that prohibits the child from attending or
requires the child be picked up from the school or child care provider.
Behavioral or discipline problems.
Closure or unexpected unavailability of the school or child care provider, excluding
planned holidays.
A natural disaster, including, but not limited to, fire, earthquake, or flood.
ARTICLE 8, SECTION 7: MILITARY LEAVE
The administration of Military leave shall conform to both state and federal laws including, but not
limited to, the requirements of the California Military & Veterans Code and the federal Uniformed
Servides Employment and Reemployment Rights Act of 1994 (USERRA).
A. Definition and Eligibility. Military Leave (both Active and Temporary) is granted to an
employee who is or becomes a member of the armed forces, militia, National Guard or Naval
Militia, or the organized reserves of any of the same. Such employee shall be entitled to the
applicable leaves of absence and employment and reemployment rights and privileges provided
by the Military & Veterans Code of the State of California and the USERRA.
B. Required Advance Notice. The employee must provide reasonable advance notice of the need
for Military Leave and must provide the District with a copy of all military orders.
C. Compensation of Temporary Military Leave. The length of Temporary Military Leave (for
training, as opposed to active duty) shall be as provided and in accordance with California
Military & Veterans Code requirements including, but not limited to, section 395.
Compensation for Temporary Military Leave shall be provided for up to a two (2) week period
in any one (1) calendar year, as follows: the District will pay the difference between the
employee’s District salary and compensation he/she receives from the government for military
services rendered. The employee will receive pay from the District at such time he/she submits
a statement to the Payroll Department verifying compensation received from the government.
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D. Compensation for Active Military Leave. Employees eligible under California Military &
Veterans Code sections 395.01, 395.02, or 395.05 shall receive their salary or compensation as a
public employee for the first thirty (30) calendar days of any eligible absences, subject to the
restrictions set forth in the applicable statute. For employees ineligible under the
aforementioned statutes and for eligible employees beyond the thirty (30) day period, the
District will pay the difference between the employee’s District salary and compensation he/she
receives from the government for military services rendered. The employee will receive pay
from the District at such time he/she submits a statement to the Payroll Department verifying
compensation received from the government.
ARTICLE 8, SECTION 8: FAILURE TO RETURN FROM LEAVE
Except as otherwise provided by law including, but not limited to, federal and state provisions
related to return from Military Leave, failure by an employee to return to duty within two (2) days of
the date he/she is scheduled to return from any type of leave shall be considered an automatic
resignation and the employee shall be notified of his/her automatic resignation from District
employment. The District will consider evidence of extenuating circumstances if it is submitted by
the employee to the District within ten (10) calendar days of the postmark of the District notice.
ARTICLE 9 - CASH-IN OF VACATION AND/OR SICK LEAVE CREDITS
Cash-In of Vacation and/or Sick Leave Credits. An employee may request to cash-in portions of
unused vacation and/or sick leave under the following conditions:
1. Annually in December, an employee may elect one (1) irrevocable request for pay in lieu of
vacation and/or sick leave hours in the next calendar year and the request is limited to the
amount that is earned in the following calendar year for each type of leave (vacation or sick
leave). A request may not exceed the employee’s accrued balances. The employee must select
the month in which to receive the payment.
2. The employee must maintain at least an eighty (80) hour balance after the cash-in occurs and
agree to take a minimum of forty (40) consecutive hours of leave (this can include a
combination of vacation, sick leave, holiday hours, compensatory time, and/or flex schedule
when used consecutively) in that same calendar year. In the event an approved vacation is
canceled by the District, the forty (40) consecutive hour requirement is waived.
3. The request is irrevocable and once submitted cannot be changed or cancelled. The request shall
state the number of hours of vacation and/or sick leave to be paid.
4. Request for cash-in of vacation and/or sick leave will be paid on the pay date of the second pay
period of the month for which the payment is requested. The payment will be at the employee’s
regular base rate of pay at the time of the cash-in, excluding temporary assignments or out-of-
class appointments.
5. In cases where an employee has an Unforeseeable Emergency, irrespective of whether an annual
cash-in election has been submitted or paid out, a request for an emergency cash-in can be
submitted to Human Resources.
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a. The request shall include: (i) a description and documentation of the Unforeseeable
Emergency, (ii) documentation supporting the amount of money necessary to meet the
emergency, (iii) the number of accrued hours needed to meet the emergency (limited to the
accrued hours available at the time of the request), and (iv) documentation supporting when
payment for the emergency is necessary.
b. An Unforeseeable Emergency means an unanticipated emergency caused by an event beyond
the employee’s control that would result in severe financial hardship to the employee if the
requested payment were not permitted.
c. The General Manager or designee will consider all requests which may include (i) modifying
an employee’s annual election (if the election has not yet been paid out), or (ii) approving an
emergency election (whether or not an annual election has been submitted or paid out), (iii)
being reimbursed for any or all of the required eighty (80) hour balance (if needed for the
emergency), and (iv) waving the requirement that the employee take a minimum of forty
(40) consecutive hours of leave in the calendar year (if needed for the emergency).
d. An employee may receive cash payment of accruals (whether sick, vacation, or a
combination of both) due to an unforeseeable emergency only once per calendar year. In
addition, the amount of the payment may not exceed the amount needed to meet the
emergency.
ARTICLE 10 - UNPAID LEAVES
ARTICLE 10, SECTION 1: FAMILY MEDICAL LEAVE, PREGNANCY DISABILITY LEAVE
AND KIN CARE
The administration of Family Medical Leave shall conform to the requirements of applicable state
and federal family leave acts including, but not limited to, the Family and Medical Leave Act of
1993 and the California Family Rights Act, as set forth in the District’s Family Medical Leave,
Pregnancy Disability Leave, and Kin Care Leave Policy.
ARTICLE 10, SECTION 2: NON-WORK-RELATED MEDICAL LEAVE
A. Eligibility and Length of Leave. An employee who has twelve (12) months of service, which
service need not be consecutive, and has worked at least 1,250 hours during the twelve (12)
months immediately prior to the leave, shall be eligible to request Non-Work-Related Employee
Medical Leave for up to six (6) months under the same conditions as applies to Article 9,
Section 1, Family Medical Leave.
B. Reinstatement.
1. Within Twelve Weeks. The District shall reinstate the employee who returns within twelve
(12) weeks of commencement of leave to his/her former position or to an equivalent position
as determined by the District, with equivalent pay, benefits, status and authority.
2. After Twelve Weeks. For an employee who returns after twelve (12) weeks from
commencement of leave, the District may return the employee to his/her former position,
unless the position is no longer available. In the event the District at its discretion,
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eliminates the position or fills it while the employee is on leave, the District shall notify the
employee on leave in writing at least two (2) weeks prior to eliminating or posting the
position.
ARTICLE 10, SECTION 3: WORK-RELATED DISABILITY LEAVE
A. Definition. Work-Related Disability Leave is unpaid leave provided to an employee on
Workers’ Compensation Temporary Disability Benefits for a period of up to six (6) months per
injury for the purpose of recovering from, and receiving treatment for, a work-related disability.
Work-related Disability Leave shall run concurrently with Family Medical Leave if the purpose
for the leave qualifies under the Family and Medical Leave Act and/or the California Family
Rights Act. An employee is eligible for only one six-month period of leave for any one injury or
illness.
The provisions of this section are not intended to conflict with and are subject to applicable state
and federal disability-related regulations and procedures including, but not limited to, the
Americans with Disabilities Act and the Fair Employment and Housing Act.
B. Maintenance of Benefits During Work-Related Disability Leave. During Work-Related
Disability Leave, the District shall maintain the following benefits for the employee and the
employee’s eligible dependents under the same conditions as coverage would have been
provided if the employee had been continuously employed:
Medical Insurance,
Dental Insurance,
Life and AD&D Insurance, and
Long-Term Disability (LTD) Insurance.
If the employee elects to continue the optional life insurance and/or the flexible benefits
program, the employee shall be required to pay the premiums by payroll deduction or direct
payment to the District. At the beginning of the leave period, the employee will be given written
notice of the amounts and option of either payroll deduction or direct payments. Such employee
contribution amounts are subject to any changes in rates that occur while the employee is on
leave.
While on Work-Related Disability Leave, an employee shall earn sick leave and vacation credit
and will be entitled to pay for holidays.
Further, while on Work-Related Disability Leave, the employee’s in-range date will be extended
by the number of days following the first sixty (60) calendar days of leave taken.
C. Reinstatement.
1. Return Prior to Six Months. At the conclusion of a Work-Related Disability Leave that has
not exceeded six (6) months in duration, and provided that the employee’s attending
physician verifies that he/she is fully able to resume all of the duties and responsibilities of
the position, and if such position exists, an employee shall be returned to the duties of the
position within the classification to which he/she was assigned prior to the leave.
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2. Status of Leave at Six Months. If, at the conclusion of six (6) months from the first day of
injury or illness, the employee remains unable to return and resume the duties and
responsibilities of his/her position, the District may consider his/her position vacated and
take the necessary steps to fill it. The employee may request Personal Leave. The District
may then place the employee on a Personal Leave of Absence not to exceed six (6) months.
In the event the District in its discretion, eliminates the position or fills it while the employee
is on leave, the District shall notify the employee in writing at least two (2) weeks prior to
eliminating or posting the position.
ARTICLE 10, SECTION 4: PERSONAL LEAVE
A. Eligibility. An employee who has exhausted all other available District leave or a new hire who
is not yet eligible for District leave shall be eligible to request unpaid Personal Leave of up to
six (6) months.
B. Requests. The District may grant Personal Leave for emergency or other necessary conditions,
and such requests shall be subject to review to determine if the leave serves the best interest of
the District, subject to the following conditions:
1. During the leave, the employee and his/her eligible dependent(s), may continue group
medical and dental coverage for a limited period of time at his/her own expense in
accordance with Consolidated Omnibus Budget Reconciliation Act (COBRA) guidelines.
2. Sick leave and vacation credits will not accrue during Personal Leave.
3. The employee’s in-range date will be extended by the number of days following the first
sixty (60) calendar days of leave taken.
4. Upon return from leave, the District may return the employee to his/her former position,
unless the position is no longer available. In the event the District, at its discretion,
eliminates the position or fills it while the employee is on Personal Leave, the District shall
notify the employee in writing at least two (2) weeks prior to eliminating or posting the
position.
ARTICLE 10, SECTION 5: FAILURE TO RETURN FROM LEAVE
Except as otherwise provided by law including, but not limited to, federal and state provisions
related to return from Military Leave, failure by an employee to return to duty within two (2) days of
the date he/she is scheduled to return from any type of leave shall be considered an automatic
resignation and the employee shall be notified of his/her automatic resignation from District
employment. The District will consider evidence of extenuating circumstances if it is submitted by
the employee to the District within ten (10) calendar days of the postmark of the District notice.
ARTICLE 11: WORKPLACE SAFETY
A. Commitment to Safety. The District will continue to provide for the workplace safety and
health of its employees and to maintain an effective Safety and Loss Control Program. It is the
responsibility of all employees to follow all safety practices, rules, and regulations and report all
injuries to their supervisor.
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B. Safety Committee. The District may convene an Employee Safety Committee to review and
discuss safety features, methodologies, and equipment.
C. Reporting Safety Concerns. It is the obligation of all employees to immediately report any
condition that he/she believes to be unsafe. The District will conduct a prompt investigation and
correct any unsafe conditions found to exist.
ARTICLE 12 - PERSONNEL PRACTICES
ARTICLE 12, SECTION 1: PERSONNEL FILES
An employee may inspect and request copies of his/her personnel file with the exception of
references and all materials obtained from other employers and agencies before he/she was hired.
An employee shall make a request to inspect or receive a copy of his/her file at least forty-eight (48)
hours in advance of such inspection. In order to preserve the integrity of personnel files, the District
may require inspections to be made in the presence of the Human Resources Manager or his/her
designee. The District shall keep documents regarding the processing of a grievance separate from
the employee’s personnel file, except that the District may place in the personnel file any document
that would normally be a part of the file that relate to change in pay, etc. in the absence of a
grievance.
ARTICLE 12, SECTION 2: LAYOFF PROCEDURE
The General Manager may lay off, in accordance with law, any employee because of lack of
appropriate funds, curtailment or lack of work, or other reasons at his or her discretion. An
employee terminated because of the elimination of the employee’s position or a reduction in the
workforce (layoff) shall receive ten (10) working days notice or ten (10) days’ pay. The District
shall determine whether the employee shall receive notice or pay. The District shall also provide
the Association with twenty (20) working days notice prior to the layoff to allow the Association to
meet and confer over the impact of the layoff.
The layoff process shall be administered in accordance with the following:
A. Order of Layoff. Except for employees who volunteer to be laid off, layoff shall be by
classification within each department. The District may layoff a volunteer for layoff at any
point. Within each classification, employees will be selected for layoff based on seniority, as
defined below, with the lowest seniority ratings being laid off first. In cases where the District
determines that seniority is equal between two or more employees, performance, as determined
by a combination of factors including, but not limited to, past performance and productivity (as
evidenced by, among other factors, the employee’s performance evaluations), qualifications,
attitude, attendance, and punctuality, will be the deciding factor, with the lowest performance
ratings being laid off first. Employees on leave shall be laid off in the same manner as active
employees.
B. Calculation of Seniority Layoff Rating. Seniority is defined as the employee’s total number of
months of continuous District employment from the employee’s most recent date of hire. All
seniority is lost upon the employee’s resignation or dismissal. The employee’s seniority layoff
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rating equals one (1) point for each month of continuous paid service, exclusive of all unpaid
leaves or periods of suspension.
1. Return to Former Class. In the event of a layoff, employees who have been promoted during
their service with the District may demote to a former classification in their career series
they formerly held, if there is a vacancy.
2. Reemployment. A regular employee who is laid off shall be placed on a Reemployment List
for the position from which he/she was laid off. Employees on the Reemployment List shall
have preference over new hires. Vacancies to be filled shall be first offered to individuals
on the Reemployment List who filled a position in the same classification as the vacancy to
be filled. Employees on layoff shall be offered reemployment in the reverse order of layoff,
provided no intervening factors have occurred which change the ability of the employee to
perform the offered employment. The employee must still meet all necessary requirements
for the position to which he or she is to be reemployed, with or without reasonable
accommodation.
A laid off employee shall be removed from the Reemployment List for any of the following
reasons:
a. The expiration of six (6) months from the date of placement on the list.
b. Reemployment in any regular position.
c. Failure to respond within ten (10) calendar days of the postmark of a registered letter
notifying the employee of the availability of reemployment.
d. Failure to report to work within ten (10) calendar days of the postmark of a registered
letter containing a notice of reemployment.
e. A request by the employee that his/her name be removed from the list.
ARTICLE 12, SECTION 3: JOB POSTING
Employment announcements for regular positions will be sent via email to all District employees
and shall be posted on the District website for a period of not less than seven (7) calendar days. The
notice shall remain posted until the date of the deadline.
ARTICLE 12, SECTION 4: PERFORMANCE EVALUATION
The performance of regular employees is generally evaluated once in each twelve (12) month
period. An evaluation may be prepared at the time a regular employee is promoted to a different
classification for the time the employee served in his/her former classification. A District-generated
Performance Evaluation may be issued at any time. The employee shall be furnished with a copy of
his/her final Performance Evaluation form.
ARTICLE 12, SECTION 5: USE OF DISTRICT VEHICLES
Except as provided in this section, District vehicles may be used by employees only for conducting
District business.
A. Lunch Purchase Stops. An employee driving a District vehicle may stop to purchase lunch
food/beverages as follows:
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1. The stop is on a direct route to/from the District and the employee’s assigned work site, or
on a direct route between two assigned work sites.
2. The use of District vehicles shall not extend lunch periods. Time spent for lunch purchase
stops will be deducted from the employee’s lunch period.
3. An employee may leave a field work site to buy food/beverages only if the employee can
leave the work site, return, and eat his/her meal within the time provided for the lunch
period.
ARTICLE 13 - GRIEVANCE PROCEDURE
A. Definition.
1. A grievance is defined as an allegation by an employee that the District has failed to provide
a condition of employment that is established by this Memorandum of Understanding, or an
appeal of a disciplinary termination, reduction in salary, demotion, or suspension of more
than three (3) days. A grievance filed under this definition shall have the right to be
processed up to Step Three: Binding Arbitration.
2. A grievance is also defined as an appeal of a disciplinary suspension of three (3) days or less
or of a letter of reprimand. A grievance filed under this definition shall only have the right
to be processed up to Step Two: Review by the General Manager.
B. Exclusions.
This grievance procedure shall not apply to:
1. Matters covered by the District Employer-Employee Relations Policy;
2. Matters over which the Public Employment Relations Board (PERB) has jurisdiction;
3. The substance of Performance Evaluations;
4. Matters concerning the District’s self-funded medical and dental benefits for which appeal
procedures are contained in the plan documents;
5. Oral warnings or counseling;
6. Employee recognition programs;
7. Concerning any other subject, unless the subject is covered by the expressed terms of this
Memorandum of Understanding.
C. Stale Grievance.
A grievance shall be void unless filed in writing within twenty (20) days from the date upon
which the District is alleged to have failed to provide a condition of employment which has been
established by this Memorandum of Understanding, or within twenty (20) days from the time an
employee might reasonably have known of the alleged failure, or within twenty (20) days from
receipt by the employee of notice of intent to render formal discipline.
For purposes of this Procedure, “day” is defined as any day upon which the administrative
offices of the District are open for regularly scheduled business. In no event shall a grievance
include a claim for money relief for more than a thirty (30) day period prior to the date the
grievance was filed.
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D. Informal Discussion with Employee’s Supervisor.
Before proceeding to Step One of the formal grievance procedure, except when discipline has
been rendered, an employee shall discuss his/her grievance with his/her immediate supervisor in
private; outside the presence of any other person and attempt to work out a satisfactory solution.
If the employee and his/her supervisor cannot work out a satisfactory solution, the employee
may choose to represent himself/herself individually without the involvement of the
Association, or he/she may request the assistance of an Association Representative to write and
formally present the grievance.
E. Grievance Procedure Steps.
1. Step One: Immediate Supervisor
If the employee chooses to formally pursue his/her grievance after he/she has met with
his/her supervisor as required in Subsection D of this Procedure, he/she shall present the
written grievance to his/her immediate supervisor within the time limit specified in
Subsection C of this Procedure.
The written grievance shall be submitted on the District form and shall specify each Article,
Section, and/or Subsection of the Memorandum of Understanding that is alleged to have
been violated by the District and shall specify dates, times, places, and persons, and other
facts necessary to a clear understanding of the matter being grieved. In cases of disciplinary
action, the written grievance shall state as a ground(s) for the appeal that the disciplinary
action is inaccurate, unduly severe, and/or unfair, and set forth the facts supporting such
ground(s). The grievance shall also state the remedy sought. If the grieving employee fails to
provide the required information, or state a ground for challenging disciplinary action, the
District may return the grievance to the employee and may refuse to process the grievance
until the information is furnished. The Grievance Procedure time limits will not be extended
for this purpose. However, the time limits may be extended by mutual agreement of the
parties.
The immediate supervisor shall return a copy of the written grievance to the employee with
his/her answer thereto in writing within ten (10) days of receipt of the written grievance. If
the grievance is not resolved at Step One, the employee may appeal the grievance to Step
Two no later than ten (10) days from receipt of the supervisor’s answer.
2. Step Two: General Manager
A grievance appealed to the General Manager shall include a copy of the original grievance
and a clear, concise statement of the reasons for the appeal. If requested, the grievant will be
granted the right to present his/her case orally in addition to the written appeal. The General
Manager or his/her designee shall review the grievance in an attempt to resolve it and shall
communicate the decision to the grievant within ten (10) days of receipt of the appeal. This
is the final step for grievances defined under Section A (2) of this Grievance Procedure.
However, the time limits herein may be extended by mutual agreement of the parties.
37
3. Step Three: Arbitration
If the General Manager or his/her designee’s decision does not resolve the grievance, and the
grievance falls under the definition in Section A (1) of this Procedure, the grievant may,
within ten (10) days of receipt of the General Manager’s decision, submit a request in
writing to the Association to submit the grievance to arbitration. Within twenty (20) days of
the grievant’s receipt of the decision of the General Manager or his/her designee, the
Association shall inform the District if they desire that the grievance be arbitrated.
F. Selection of Arbitrator.
The arbitrator shall be selected by mutual agreement between the District and the Association. If
agreement is not reached on an arbitrator, the parties shall request the State Mediation and
Conciliation Service to supply a list of seven (7) qualified arbitrators. The parties shall then
alternately strike names from the list until only one (1) name remains, and that person shall
serve as the arbitrator. If the parties are unable to agree which party will make the first strike,
they shall flip a coin and the winner shall decide which party will make the first strike.
If either the District or the Association so requests, a separate arbitrator shall be selected using
the process in this section to hear the question of arbitrability of the grievance. No hearing on
the merits of the grievance may be conducted until the issue of arbitrability has been decided.
G. Submission of the Issue to the Arbitrator.
The parties will jointly prepare a statement defining the issue to be submitted to the arbitrator.
If agreement is not reached on this statement, each party will submit its own statement defining
the issue.
H. Duty of the Arbitrator.
It shall be the duty of the arbitrator to hear and consider evidence submitted by the parties and to
thereafter make written findings of fact and a disposition of the grievance, which shall be
binding. On all issues except appeals of disciplinary action, the grievant shall bear the burden of
proof. The decision of the arbitrator shall be based solely on the interpretation of the provisions
of the Memorandum of Understanding applicable to the grievance and he/she shall not add to,
subtract from, modify or disregard any of the terms or provisions of the Memorandum of
Understanding.
In appeals of disciplinary action, the arbitrator’s authority shall be limited to determining
whether the subject disciplinary action complied with the procedural rules governing the pre-
discipline process set forth in the District’s Discipline Policy and Procedure and shall not extend
to whether the conduct in question constitutes just cause for discipline.
The provisions for arbitration are not intended and shall not be construed to empower an
arbitrator to change any condition of employment specifically covered by the Memorandum of
Understanding or to revise, modify or alter in any respect, any provision contained in the
Memorandum of Understanding.
38
I. Payment of Costs.
Each party to a hearing before an arbitrator shall bear his/her own expenses in connection with
the arbitration. All fees and expenses of the arbitrator shall be borne one-half (1/2) by the
District and one-half (1/2) by the Association.
Either party may request a certified court reporter to record the arbitration hearing. The cost of
the court reporter shall be paid by the party requesting the reporter. The cost of a transcript of
the hearing shall be borne by the party requesting it.
J. Effect of Failure of Timely Action.
Failure of the employee to file an appeal within the required time period at any step shall
constitute an abandonment of the grievance, subject to the provisions of Government Code
section 3505.8. If the District fails to respond within the required time limit at any step, the
District shall be considered to have denied the grievance at that step as of the last day for
response. The grievant’s time to proceed to the next step, if applicable, shall commence
accordingly.
Failure of the grievant to timely and diligently prosecute his or her arbitration shall constitute an
abandonment of the arbitration. Any arbitration shall be scheduled within two (2) months and
heard within six (6) months from the date the Association informed the District of their desire
that the grievance be arbitrated pursuant to Subsection E(3) of this Procedure. Any extension of
that time shall be only by mutual agreement of the parties, unless it is due to the availability of
the selected arbitrator.
K. No Reprisal.
Employees shall be free from reprisal for use of this Grievance Procedure.
L. Grievance Forms.
All grievances shall be filed on the appropriate form, which is attached as an Appendix to this
Memorandum of Understanding.
M. Representation.
An employee may represent himself/herself without the involvement of the Association or
he/she may request the assistance of an Association Representative to write and formally present
the grievance. However, an employee may not grieve to Step Three: Arbitration, without the
consent of the Association, and any communications related to the arbitration shall be between
the District and the Association.
ARTICLE 14 - GENERAL PROVISIONS
ARTICLE 14, SECTION 1: NON-DISCRIMINATION
In receiving the rights afforded by this Memorandum of Understanding, no person shall in any way
be favored or discriminated against to the extent prohibited by law because of sex (including
39
gender, gender identity, gender expression, pregnancy, childbirth or related medical condition), race,
color, religious creed, national origin, ancestry, physical disability, mental disability, medical
condition, genetic information, marital status, age, sexual orientation, military or veterans status, or
any other basis protected by federal, state or local law.
ARTICLE 14, SECTION 2: ENTIRE AGREEMENT
This Memorandum of Understanding sets forth the full and entire agreement of the parties regarding
the matters set forth herein, and any other prior or existing understanding or agreements over these
matters between the parties, whether formal or informal, are hereby superseded or terminated in
their entirety.
ARTICLE 14, SECTION 3: SEVERABILITY
This Memorandum of Understanding is subject to all current and future applicable federal, state and
local laws and regulations. If any part or provision of this MOU is in conflict or inconsistent with
such applicable provisions of federal, state or local laws or regulations, or is otherwise held to be
invalid or unenforceable by any tribunal of competent jurisdiction, such part or provision shall be
suspended and superseded by such applicable law or regulations, and the remainder of the MOU
shall not be affected thereby.
ARTICLE 14, SECTION 4: MANAGEMENT RIGHTS
The management of the District and the direction of the work force are vested exclusively in the
District, subject to the terms of this MOU. In addition to the authority vested in the General
Manager pursuant to section 71362 of the California Water Code, the District shall have the sole
and exclusive authority over the merits, necessity, or organization of any District service or activity
provided by law and shall have the sole and exclusive right to manage its business in every respect
and to take any action which the District deems desirable to conduct its business including, but not
limited to, the right to determine and change all aspects of its methods of operation, to schedule and
assign work and overtime, to hire, promote, classify, discipline (up to and including termination),
layoff and transfer employees, to determine the number and location of employees, and to exercise
all other rights the District had prior to entering into this MOU, except as specifically abridged or
modified by this MOU. All authority related to matters not covered by this MOU shall be retained
by the District.
ARTICLE 14, SECTION 5: STRIKES AND LOCKOUTS
Neither the Association nor any employee represented by the Association shall cause, authorize,
engage in, or sanction any type of job action, strike, or slowdown which results in less than the full
and faithful performance of the duties of employment during the term of this MOU and for a ninety
(90) day period following expiration of the term of this MOU. During the term of this MOU and for
ninety (90) days following its expiration, the District shall not take action to lock out employees
covered by this MOU.
40
ARTICLE 14, SECTION 6: EMERGENCY
Nothing herein shall limit the authority of management to make necessary changes during
emergencies. Emergency is defined as a substantial likelihood that serious harm would be
experienced unless immediate action is taken.
ARTICLE 14, SECTION 7: IMPLEMENTATION
This MOU constitutes a mutual recommendation to be jointly submitted to the District Board of
Directors. It is agreed that this MOU shall not be binding upon the parties either in whole or in part
unless and until:
1. The Association ratifies this Memorandum; and
2. The Board of Directors acts by majority vote, to formally approve and adopt this MOU and
to appropriate the necessary funds required to implement the provisions of this MOU that
require funding.
The District shall act in a timely manner to make the necessary changes to implement this
Memorandum of Understanding.
41
IN WITNESS WHEREOF, the parties have caused their duly-authorized representatives to execute this Memorandum of
Understanding. Approved by the Board of Directors on November 7, 2018.
FOR: OTAY WATER DISTRICT FOR: OTAY WATER DISTRICT EMPLOYEES’
ASSOCIATION
Mark W. Watton, Damon M. Newman,
General Manager Field Employees’ Unit
Mark R. Bresee, Mike Powell,
Atkinson, Andelson, Loya, Ruud & Romo Employee Services
Kelli M. Williamson, Michael A. Christensen,
Human Resources Manager Administrative Employees’ Unit
Rosemary F. Dries, Theresa Kreinbring,
Senior Human Resources Analyst Administrative Employees’ Unit
Kevin K. Koeppen, William G. Poulin,
Assistant Chief, Finance Administrative Employees’ Unit
Jose J. Martinez,
Assistant Chief, Water Operations
42
APPENDIX A
OTAY WATER DISTRICT
STEP ONE (1) GRIEVANCE FORM
_____________________________________________________________________________________________________
Grievant’s Name Job Title Dept.
In cases of disciplinary action, the written grievance shall state as a ground(s) for the appeal that the disciplinary action is
inaccurate, unduly severe, and/or unfair and set forth the facts supporting such ground(s). The grievance shall also state the
remedy sought. If the grieving employee fails to provide the required information, or state a ground for challenging disciplinary
action, the District may return the grievance to the employee and may refuse to process the grievance until the information is
furnished. The Grievance Procedure time limits will not be extended for this purpose. However, the time limits may be extended
by mutual agreement of the parties.
1. What provision of the Memorandum of Understanding do you claim was violated? List article(s) and page number(s):
________________________________________________________________________________________________
________________________________________________________________________________________________
2. Describe the action or event you are grieving by answering all of the following questions which are appropriate:
A. What happened?___________________________________________________________________________
________________________________________________________________________________________________
B. When did it happen? (If you don’t know when it happened, when did you find out about it?)_________________
________________________________________________________________________________________________
C. Where did it happen?________________________________________________________________________
D. List the names of other people who observed the event or who have knowledge about the event:____________
________________________________________________________________________________________________
E. Please give any other information, which you believe is important to understand your grievance:_____________
________________________________________________________________________________________________
________________________________________________________________________________________________
3. What actions do you want the District take to remedy the grievance:___________________________________
________________________________________________________________________________________________
Grievant’s Signature: _________________________________________ Date ___________________
Received by: _______________________________________________ Date ___________________
Immediate Supervisor
------------------------------------------------------------------------------------------------------------------------------------------------------------------
Supervisor Response:______________________________________________________________________________
________________________________________________________________________________________________
Signature: ___________________________________________________ Date ___________________
Immediate Supervisor
I received the Step One (1) response to my grievance on _____________________ ___________________________
Date Grievant’s Signature
------------------------------------------------------------------------------------------------------------------------------------------------------------------
Grievant’s response to Step One (1) (check one)
1. The remedy proposed at Step One (1) is acceptable. I accept the proposed remedy as the complete and final
settlement of all complaints I have raised in this grievance.
2. The remedy proposed is not acceptable, and I withdraw my grievance.
3. The remedy proposed is not acceptable, and I wish to appeal the decision of Step One (1). The Step Two (2) form
is attached.
Grievant’s Signature _____________________________________________________ Date __________________
43
AAPPPPEENNDDIIXX AA
OTAY WATER DISTRICT
STEP TWO (2) GRIEVANCE FORM
Instructions: Attach a copy of the Step One (1) Grievance Form and explain why the Step 1 response is not acceptable.
Grievant’s Name ____________________________________
The Step One (1) response is unacceptable for the following reasons: _________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
Grievant’s Signature __________________________________________ Date___________________
Received by: ________________________________________________ Date___________________
General Manager/Designee
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
General Manager/Designee Response: __________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
Signature___________________________________________________ Date___________________
General Manager/Designee
I received the Step Two (2) response to my grievance on _____________________
Date
_________________________________________
Grievant’s Signature
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
Grievant’s response to Step Two (2) (check one)
1. The remedy proposed at Step Two (2) is acceptable. I accept the proposed remedy as the complete and final
settlement of all complaints I have raised in this grievance.
2. The remedy proposed is not acceptable, and I withdraw my grievance.
3. The remedy proposed is not acceptable, and I wish to appeal the decision of Step Two (2) (if applicable). An
employee may not grieve to Step Three (3): Arbitration, without the consent of the Association.
Grievant’s Signature _____________________________________________________ Date___________________
FLSA EXEMPT AND NON-EXEMPT CLASSIFICATIONS
Updated Periodically
APPENDIX B
POSITION
SALARY
GRADE FLSA POSITION
SALARY
GRADE FLSA
DISTRICT-WIDE POSITIONS ENGINEERING
Executive Secretary 22 NE Inspection
Secretary 18 NE Construction Inspector II 24 NE
Construction Inspector I 22 NE
ADMINISTRATIVE SERVICES Public Services
Permit Technician 20 NE
GIS
GIS Programmer Analyst 27 E Engineers
GIS Analyst 25 E Senior Civil Engineer 34 E
GIS Technician 22 NE Associate Civil Engineer 32 E
Assistant Civil Engineer II 27 E
Information Technology Assistant Civil Engineer I 25 NE
Database Administrator 32 E
Network Engineer 31 E Engineering Technicians
System Support Analyst 29 E Senior Engineering Technician 24 NE
Business Systems Analyst II 29 E Engineering Technician 22 NE
Business Systems Analyst I 25 E
Data Systems Technician 20 NE Environmental Compliance
Environmental Compliance Specialist 28 E
Purchasing
Senior Procurement and Contracting Analyst 26 E Recycled Water System
Senior Warehouse Worker 20 NE Recycled Water Specialist 23 NE
Facilities Maintenance Technician 19 NE
Surveying
Senior Utility Locator 21 NE
FINANCE Utility Locator 19 NE
Accounting
Senior Accountant 28 E
Accountant 25 NE
Customer Service
Lead Customer Service Representative 21 NE
Customer Service Representative II 18 NE
Customer Service Representative I 16 NE
Meter Services
Meter Maintenance Worker II 21 NE
Meter Maintenance Worker I 18 NE
Lead Customer Service Field Rep.21 NE
Customer Service Field Representative II 18 NE
Customer Service Field Representative I 16 NE
Payroll and Accounts Payable
Accounting Technician 20 NE
FLSA EXEMPT AND NON-EXEMPT CLASSIFICATIONS
Updated Periodically
APPENDIX B
POSITION
SALARY
GRADE FLSA POSITION
SALARY
GRADE FLSA
WATER OPERATIONS
Collection/Treatment/Reclamation
Laboratory Analyst 25/26 NE
Lead Reclamation Plant Operator 26 NE
Reclamation Plant Operator III 23 NE
Reclamation Plant Operator II 21 NE
Reclamation Plant Operator I 19 NE
Fleet Shop
Equipment Mechanic II 21 NE
Equipment Mechanic I 18 NE
Pump/Electrical
Electrician II 24 NE
Electrician I 22 NE
Pump Mechanic II 22 NE
Pump Mechanic I 19 NE
SCADA Systems
Senior SCADA / Instrumentation Technician 28 NE
SCADA / Instrumentation Technician 25 NE
Utility Maintenance/Construction
Utility Crew Leader 24 NE
Senior Utility Worker/Equipment Operator 22 NE
Utility Worker II 20 NE
Utility Worker I 18 NE
Valve Maintenance Worker 18 NE
Water Systems
Senior Disinfection Technician 24 NE
Disinfection Technician 23 NE
Lead Water Systems Operator 26 NE
Water Systems Operator III 23 NE
Water Systems Operator II 22 NE
Water Systems Operator I 20 NE
46
2019 - 2024
Memorandum of Understanding
Index
Adjustments………………………………….6
Salary (In-Range)……………… ………7
Wages……………………………………5
Agreement....………………………………...1
Allowances ........................................... ….15
Meals ............................................. ….15
Safety Glasses .............................. ….15
Safety Shoes ................................. ….15
Spectacle Kits ............................... ….15
Alternative Work Schedules ................ ……9
Assignment Premiums ......................... ….10
Call Back Duty…………………….......12
Report Time Pay .......................... ….13
Shift Pay ........................................ ….11
Standby Duty…………………………..11
Association .......................................... …...1
Association Access ....................... …...4
Association Representatives ......... …...2
Association Rights ......................... …...1
Bulletin Boards .............................. …...3
Dues Deductions ........................... …...4
Recognition ................................... …...1
Release Time ................................ …...3
Right to Join or Not Join ................ …...4
Use of Email .................................. …...3
Automatic Resignation ............ ……….29, 32
Benefits (Employee) ....................... ….15-21
(See Insurance)
Bereavement Leave ....................... ……..27
Bonus Rates (Assign. Premiums) ........ …12
Bulletin Boards..................................... …..3
Call Back Duty ................................ …….12
Cash-In Sick Leave Credits ............ …….29
Cash-In Vacation Credits ................ …….29
COLA (See Wages) ............................... ….5
Compensatory Time Off………………........10
Court Leave (Jury Duty) ……………….......27
CPI-U…………………………………………..5
Death Benefit…………………………..........21
Dental and Health Insurance……..........17-20
(See Insurance)
Disability (Early Retirement) ………………20
Disability Leave:
Short/Long-Term Disability ............ …..17
Non-Work Related Med. Leave ..... …..30
Work-Related Injury or Disability……..31
Discrimination (Non)............................. …..38
District Vehicles (Use of)………………......34
Dues Deductions …………..........................4
Early Retirement:
Disability………………………………...20
Hardship………………………………...20
Effective Date of MOU……………………….1
Email (Use of) ………………………………..3
Emergency…………………………………..40
Employee Recognition Programs……….....7
Entire Agreement……………………….......39
Implementation…………………………40
Exempt Classes…………………………….10
Expenses (Work-Related)…………………...14
Meal Allowance…………………….......14
Safety Boot Allowance…………………14
Safety Glasses………………………….15
Spectacle Kits ................................ …..15
Failure to Return from Leave……….....29, 32
Family Medical Leave…………………….30
47
FLSA Classes ................................. ……10
Grievance Procedure ...................... ……35
Forms…………………………38, 42-43
Health and Dental Insurance………..17-20
(See Insurance)
Holidays……………………………………22
Hours of Work ................................. ….....7
Regular Part-Time Employees ...... …8
Standard Work Day/Week............. …7
Illness or Injury (Non-Work Related) ....... ..30
Illness or Injury (Work-Related) ............. ..31
In-Range Adjustment ...................... …….6
Insurance:
Dental……………………………..17-18
Life ................................................. ..21
Health and Dental (Active)………17-18
Health and Dental (Retired)…….18-20
Premiums………………………..17-21
Required Coverage ....................... .18
Short/Long Term Disability ............ .17
Waive Coverage ............................ .18
Job Posting .......................................... .34
Jury Duty ......................................... …..26
Kin Care ............................................... .30
Layoff Procedure ............................ …..33
Leaves:
Bereavement Leave ................. …..27
Failure to Return from Leaves..29, 32
Family Medical Leave ................... 30
Jury Duty ....................................... 26
Kin Care ........................................ 30
Leaves of Absence (Unpaid) .......... 30
Military Leave ................................ 28
Non-Work Related Medical
Leave ...................................... 30
Personal Leave ............................. 32
Pregnancy Disability Leave ........... 30
Reinstatement…………………..30-31
School and Child Care
Provider Activities Leave ......... .27
Sick Leave…………………………..24
Vacation……………………………..23
Work-Related Disability Leave….........31
Verification……………………...25, 27-28
Life Insurance ....................................... …..21
(See Insurance)
Lockouts (and Strikes) ......................... …..39
Long-Term Disability ............................ …..17
Lunch Purchase Stops
(District Vehicles)…………………..34-35
Lunch and Rest Periods……………………..9
Management Rights ........................ …..39
Meal Allowance .................................... …..14
Health, Dental & Life Insurance………..17-20
(See Insurance)
Medical Leave (See Leaves)………........30-31
Military Leave ....................................... …..28
Non-Discrimination ............................... …..38
Non-Exempt Classes…………………….....10
Non-Work Related Medical Leave ....... …..30
Out-of-Class Appointments………………...13
Overtime Pay…………………………………9
Part-Time Employees………………………..8
Payroll Period/Pay Dates……………………6
Pension Plan ........................................ 15-16
(PERS Membership and Formula)
Performance Evaluation ....................... …..34
Personal Leave .................................... …..32
Personnel Files .................................... …..33
Preamble .............................................. …….1
Pregnancy Disability Leave .................. …..30
Premiums:
Assignment Premiums ................... …..10
Insurance Premiums……………….17-21
(See Insurance)
48
Prescription Safety Glasses ................ …..15
Spectacle Kits………………………….15
Regular Part-Time Employees ............ ……8
Reinstatement (from Leaves)……………30-31
Release Time for Representatives ...... ….2-3
Report Time Pay .................................. …..13
Representative of Associations ........... ….2-4
Resignation (Automatic)…………………29, 32
Rest and Lunch Periods ................. ……….9
Retirement:
Early Retirement ........................... …..20
Employee Contribution .................. …..16
Formula ......................................... …..16
Pension Plan ................................. …..15
Regular Retirement .................. ………19
Review (In-Range) ........................... ….......6
Safety (Workplace) ................................ …..32
Safety Glasses (Prescription) ................ …..15
Safety Boot Allowance ......................... …..14
Salary Adjustments (In-Range)………………6
San Diego CPI-U……………………………..5
School and Child Care
Provider Activities Leave ................ …..27
Severability .......................................... …..39
Short-Term Disability ........................... …..17
Shift Pay .............................................. …..11
Sick Leave ........................................... …..24
Spectacle Kits…………………………….....15
Standby Duty .................................. ………11
Strikes and Lockouts ........................... …..39
Substantiation of Leave……………25, 27-28
Temporary Assignments and
Out-of-Class Appointments……………13
Term of MOU ....................................... ……1
Vacation .......................................... ………23
Vehicles (District).............................. ………34
Verification of Leave………………..25, 27-28
Wages (COLA)………………………………..5
Adjustments………………………………6
Waive Insurance Coverage .................. …..18
Work Day/Week………………………………7
Work Periods………………………………....8
Workplace Safety……………………………32
Work-Related Expenses ...................... …..14
Meal Allowance ............................. …..14
Safety Boot Allowance ................... …..14
Safety Glasses .............................. …..15
Spectacle Kits…………………………..15
Work-Related Disability Leave ............. …..31
Work Schedules (Alternative) ………………..9
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: November 7, 2018
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 2018 and 2019 Calendars of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting
calendars for 2018 and 2019 are being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2018 and 2019 Board of Director’s meeting
calendars and amend the schedules 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: Calendars of Meetings for 2018 and 2019
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 11-07-18.doc
Board of Directors, Workshops
and Committee Meetings
2018
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 3, 2018
February 7, 2018
March 7, 2018
April 4, 2018
May 2, 2018
June 6, 2018
July 11, 2018
August 1, 2018
September 5, 2018
October 3, 2018
November 7, 2018
December 5, 2018 (Canceled)
January 17, 2018
March 21, 2018
March 21, 2018
April 18, 2018
May 23, 2018
June 20, 2018
July 18, 2018
August 15, 2018
September 19, 2018
October 24, 2018
November 21, 2018
December 5, 2018
SPECIAL BOARD MEETINGS:
BOARD WORKSHOPS:
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:
BOARD WORKSHOPS:
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2018
SUBMITTED BY:
Bob Kennedy
Engineering Manager
Dan Martin
Assistant Chief of
Engineering
PROJECT: P2565, P2574,
P2625, R2118, & S2051
DIV. NO.
3 & 5
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Informational Item - Summary of Recent Construction Bids the
District has Received, Grant Funding Potential on Projects,
and Utilization of As-Needed Construction Management Services
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To update the Otay Water District (District) Board of Directors
(Board) on recent construction bids the District has received, grant
funding available on District projects, and Utilization of As-Needed
Construction Management (CM) services.
2
ANALYSIS:
RECENT CONSTRUCTION BIDS THE DISTRICT HAS RECEIVED
This report will provide an update on the impacts of federal tariffs,
construction market/cost trends that have impacted recent bids, and
some of the future trends that could impact projects in the next
couple of years.
On several recent staff reports, staff has noted that in the current
bidding climate, the number of bidding contractors has been reduced.
During calendar year 2017, the District’s average number of bidders
was 5.7 across seven (7) projects advertised for construction. The
average number of bidders across ten (10) projects advertised for
construction during calendar year 2018 has reduced to 2.6 as of
October 1, 2018. When the number of construction projects available
for bid grows regionally, the contractors can be selective on the
projects they choose to bid. The District has seen a notable
increase in the overall number of development projects under
construction within the District boundaries, including Village 3,
Village 2, Millenia, and the Otay Crossings.
All of the District’s construction projects are formally advertised
for bid using BidSync, an online bid solicitation website. An
advertisement is placed in the Daily Transcript and posted on the
District’s website. District staff also performs additional outreach
by sending emails to contractors who have in the past submitted bids
and by sending emails to several plan houses to increase awareness of
the projects out for bid. After the bids are received, District
staff performs outreach to contractors who did not submit a bid to
get feedback on why they did not submit a bid.
During recent feedback received by staff, contractors have responded
that they are being very selective on the projects they do bid on,
they are too busy, and/or they do not have enough resources to commit
to additional projects. One contractor noted that a particular
project was not a good fit, others provided feedback that they did
not have the time to consider this project, or the project was not
large enough to pursue. An overall comment received is that it has
been difficult to find qualified skilled labor, which limits the
amount of work they can take on.
Material costs have also gone up. On June 1, 2018, the federal
government imposed a 25% tariff on steel and a 10% tariff on aluminum
imports. The Metropolitan Water District recently reported material
costs have increased 5% to 10% since March 2018.
3
Other local agencies are reporting increases to their construction
costs as well. A recent bid by the San Diego County Water Authority
(Water Authority) for the San Diego 28 Flow Control and Alvarado
Hydroelectric Facilities was advertised for construction. The
construction cost estimate range was $7 million to $8 million. The
Water Authority received two (2) bids on August 30, 2018, ranging in
price from $13.7 million to $15.87 million. Due to the disparity
between the cost estimate and the bid price, staff rejected the bids
and are evaluating the reasons for the higher bids.
Several staff reports on the November Board agenda identify similar
cost impacts from higher material costs and the shortage of qualified
skilled labor to work on projects, the bidding climate as well as
other factors, such as changes in the scope of work that increased
the budgets for all three (3) projects by $575,000. The three
projects include the following bids:
Vista Vereda (P2574) and Hidden Mesa Road (P2625)
After the 60% design phase in March 2018, staff adjusted
several bid items in response to the recently completed
construction of the Hillsdale Road Waterline Replacement
project. As the design approached 100% in June 2018, the
engineer’s estimate was also increased to keep pace with
skilled labor and material costs. After receiving the bids,
staff is recommending a reallocation of funds to the
individual CIPs, including a budget decrease of $360,000 to
CIP P2574 and a budget increase of $710,000 to CIP P2625.
803-2 Reservoir Interior/ Exterior Coatings & Upgrades
Project (P2565)
Two (2) bids were received on September 25, 2018. The
structural steel line items on the lowest bid were higher
than expected. Staff believes that the increase in bid costs
for the structural steel items are a combination of the
following; increase in steel prices, increase in skilled
qualified labor costs, and the current bid climate. Staff is
recommending a budget increase of $200,000 to this CIP.
Ralph W. Chapman Water Reclamation Facility (RWCWRF)
Headworks Improvements and Steele Bridge Sewage Pump Station
(SPS) Wet Well Improvements (R2118/S2051)
One (1) bid was received on September 13, 2018 for the RWCWRF
Headworks Improvements and the Steele Bridge SPS Wet Well
Improvements projects. These two (2) projects, funded
through separate CIPs, were packaged together to try and
generate more interest from the bidding community. Staff had
received a prior bid for the Steele Bridge SPS Wet Well
4
Improvements project on January 23, 2018 from the same
contractor. As part of the bid received on September 13,
2018, one (1) line item for the concrete wet well top slab
was $20,000 higher than the January 23, 2018 bid price. The
contractor indicated that numerous factors contributed to
this increase including current and further potential jumps
in material costs by the time the purchases would be made.
Staff is recommending a budget increase of $25,000 to CIP
R2118. The second CIP for the Headworks Repair doesn’t
require a budget adjustment.
Future Construction Market/Cost Trends
It is anticipated that future construction market/cost trends will
increase construction costs since several very large regional
projects will be out for bid later this year with construction
scheduled to begin in 2019. The SR-11 freeway extension to the U.S
border with Mexico and the construction of a third border crossing
will be the largest project within the District and various agencies
have already committed roughly $370 million to the project. In
addition, the San Diego Pure Water project is estimated to spend $1.3
billion in the next three (3) years. That project has already
committed to increase small contractor participation, which will
impact competitive bidding during construction of these projects.
The landscape of the fabricated large diameter steel pipe market has
also changed recently with Vancouver based Northwest Pipe acquiring
Rancho Cucamonga based Ameron in July 2018. This consolidation, when
combined with the steel tariffs, is expected to have a significant
impact on the cost of steel pipe for the west coast. It is
anticipated that Mid America Pipe, a company based in Kansas that has
typically not bid on local projects, would provide competition in the
west coast steel pipe market.
During the next budget cycle, staff will re-evaluate the budgets for
future projects to address the impact construction markets/cost
trends will have on construction budgets. Budgets will be updated to
represent the current bidding climate, material escalation costs, and
the shortage of skilled labor costs.
FUNDING OPPORTUNITIES TO SUPPORT THE DISTRICT’S PROJECTS
Funding opportunities were analyzed to determine applicability to
these projects. Potable pipeline replacement and any recycled water
or sewer replacement projects that do not generate a new source of
water are not candidates for grant funding or low interest loans.
5
UTILIZATION OF AS-NEEDED CONSTRUCTION MANAGEMENT (CM) SERVICES
The District currently utilizes As-Needed CM services to provide
construction contract administration for the District’s construction
projects. The As-Needed CM services provide the expertise the
District requires while also providing flexibility during times when
the Capital Improvement Program is not at a level to support a full
time CM.
The role of the CM is to collaborate with and provide project
oversight to the District, the Engineering Designer/Architect, and
the General Contractor to administer and deliver the District’s
projects on time, at or under budget, and to the District’s specified
standard of quality. The services provided by the CM require a
specialized skill set. The CM’s role includes:
Leading the construction team through the duration of
construction, testing, and commissioning of the project;
Ensuring that established construction policies, procedures, and
safety practices are observed;
Providing issue resolution arising from the inspection process
or from contract administration;
Acting as the primary lead for construction project decisions
regarding technical approaches, cost, scheduling, value
engineering, and performance;
Providing expertise for constructability review on projects in
the development phase and documenting “lessons learned” on
completed projects;
Representing the District in negotiations with contractors on
fees and charges including any change requests associated with
the construction of the District’s facilities;
Evaluating contractor claims associated with construction
projects and providing recommendations on merit and cost;
Evaluating the contractor’s Critical Path Method schedules for
delivery of the District’s construction projects;
Ensuring that documentation of the construction project is
accurate, complete, and preserved as the District’s record of
the construction contract.
Assist the District’s Legal Counsel during mediation/arbitration
and lawsuits resulting from construction activities.
With these items in mind, the District seeks CMs that are experienced
and knowledgeable in the delivery of water and wastewater
infrastructure. The current CMs each have more than 20 years of
experience and are active members of the Construction Management
6
Association of America. The CMs also work together under a blended
team with District Inspection to deliver the District’s construction
projects.
As part of the District’s budgeting process, staff evaluates the
level of effort anticipated for CM services. A review of the Capital
Improvement Program is completed and projects that are scheduled to
go into construction are quantified for the purposes of estimating CM
services. These estimates are the basis for developing Requests for
Proposals for As-Needed CM services.
Staff manages the CM services on project specific task orders under
an awarded As-Needed CM and Inspection contract. The table below
shows the level of CM services expended from Fiscal Year 2014 through
Fiscal Year 2018. This table also shows the fiscal year Construction
Contract Expenditures and Net Change Order Rate for reference
purposes. The Construction Manager Expenditures and Level of Effort
shown for Fiscal Year 2018 include CM services provided by both the
As-Needed Construction Management and Inspection Contracts and
project specific CM services provided on the 870-2 Pump Station
Project.
Fiscal
Year
(FY)
Construction
Contract
Expenditures
($)
Construction
Manager
Expenditures
($)
Construction
Manager
Level of
Effort
(Hours)
Construction
Manager
Level of
Effort (Full
Time
Equivalent)
Net
Change
Order
Rate*
(%)
2014 $6,390,014 $158,400 1056 0.58 3.5
2015 $3,797,277 $112,962 753 0.42 1.9
2016 $6,473,043 $201,444 1342 0.74 1.8
2017 $4,566,138 $204,790 1365 0.75 1.5
2018 $15,101,970 $413,409 2394 1.32 1.3
* Net Change Order rate does not include allowance item credits and
represents a true change order percentage for the project.
During four (4) of the last five (5) fiscal years, the total level of
effort for CM services has not reached an annual level of effort
equivalent of one (1) Full Time Equivalent (FTE) in a Construction
Manager classification. In FY 2018, the District’s construction
delivery reached a peak and the effort for CM Services exceeded one
(1) FTE.
Under the As-Needed CM and Inspection contracts for Fiscal Years 2019
and 2020, the combined average hourly loaded rate for As-Needed CM
services is estimated to be $154.50. This loaded rate includes the
7
CM’s vehicle, equipment, and consumables. It is estimated that the
level of effort under the As-Needed CM and Inspection contracts
approved by the Board for FY 2019 and FY 2020 will be 0.60 FTE and
0.93 FTE, respectively.
Staff will continue to evaluate the annual level of effort for CM
services required to support the District’s CIP to see if a long-term
sustained need is realized. In FY 2019, it is estimated that the
rate of a District CM FTE would be approximately $138 per hour
including salary, benefits, vehicle, equipment, training, and
certifications. It is noted that current CIP projections and
staffing structure do not support the need for a District CM FTE.
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 responsive
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.
BK/DM:jf
P:\WORKING\CIP P2574 12-Inch PL Replacement, 978 Zone, Vista Vereda\Staff Reports\Board 11-07-18 Budget
Increase\BD 11-7-18 Staff Report Informational Item - Summary of Construction Bids, Grant Funding, CM
Svces FINAL.docx
Attachments: Attachment A – Committee Action
Exhibit A – Location Map
ATTACHMENT A
SUBJECT/PROJECT:
P2565, P2574,
P2625, R2118,
& S2051
Informational Item - Summary of Recent Construction Bids
the District has Received, Grant Funding Potential on
Projects, and Utilization of As-Needed Construction
Management Services
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this item at a meeting held on October 16, 2018 and the
following comments were made:
Staff noted that the review of this item would be broken into
three parts.
The first part included an update on the impacts of federal
tariffs, construction market/cost trends that have been impacted,
and some of the future trends that could impact projects in the
next couple of years.
Staff stated that during the next budget cycle there will be a
re-evaluation of budgets for future projects to address the
impact construction markets/cost trends will have on construction
budgets. Staff noted that budgets will be updated to represent
the current bidding climate, material escalation costs, and the
shortage of skilled labor costs.
In response to a question from the Committee, staff stated that
the project contingency allocations for future projects will be
updated based on historical cost data, current bidding climate,
and local and regional issues. The District will also refer to
indexes such as those published by the Engineering News and
Record to update unit costs.
The Committee commented that the cost of materials (i.e. steel
pipes) and the bidding climate are significantly increasing,
which places the District at the will of the manufacturers and
contractors. It was noted by the Committee that this makes it
difficult for District staff to predict reasonable estimates and
contingency costs for projects.
The second part of the presentation focused on opportunities for
additional funding for projects. It was noted that potable
pipeline replacement and any recycled water or sewer replacement
projects that do not generate a new source of water are not
candidates for grant funding or low interest loans.
The third part of the presentation provided information on the
utilization of As-Needed Construction Management (CM) services by
the District. It was discussed that staff will continue to
evaluate the annual level of effort for CM services required to
support the District’s CIP to see if a long-term sustained need
is realized. In FY 2019, it is estimated that the rate of a
District CM FTE would be approximately $138 per hour including
salary, benefits, vehicle, equipment, training, and
certifications. It is noted that the current CIP projections and
staffing structure do not support the need for a District CM FTE
at this time.
In response to a question from the Committee, staff stated that
the salary for the proposed CM FTE is equivalent to the
District’s Senior Engineer position.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board as an
Informational Item.
OTAY WATER DISTRICT
CIP S2051
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VISTA VEREDAWATER PIPELINE
HIDDEN MESA RDWATER PIPELINE
CIP R2118CIP P2565CIP P2574CIP P2625
STAFF REPORT
TYPE
MEETING:
Regular Board
MEETING
DATE:
November 7, 2018
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:
Drone Software and Image Collection – In production are two GIS-
based softwares, DroneDeploy and Drone2map, which collect and
process image data flown by District staff and contractors. The
District now has the capability to process and present drone
facility image data.
Human Resources: o Open Enrollment – Open enrollment was held in the month of
October. Informational meetings were held for active and retired
employees on October 24th.
o Employee Recognition Luncheon - The District’s Recognition
Luncheon and BBQ was held Tuesday, October 9th, at the Operations
Center.
o Holiday Party - Mark your calendars to attend the Holiday Party,
which will be held December 8th from 5:30 pm to 10:30 pm at
Carlton Oaks Golf Club.
o Recruitments - The District is recruiting for a Utility Worker
and a Customer Service Supervisor. These positions are critical
to District operations.
IT Operations:
CPRA Seminar - Staff attended “The Public Records Act and Records
Retention” management seminar led by California Special Districts
Association. The seminar was led by Gregory Murphy, Burke, Williams
& Sorensen, LLP. Topics for the seminar included modern practices
2
in public access and request, electronic records retention, and the
role technology plays in managing these requirements.
Monthly Board Audio Streaming - During the District’s October Board
meeting, 10 customers engaged in the listening of the live monthly
meeting. The live audio broadcast was aired for 1 hour and 53
minutes.
Purchasing & Facilities:
SDCOC Doing Business with Otay Water District Workshop - The San
Diego Contracting Opportunities Center (SDCOC) conducted its semi-
annual vendor outreach workshop “Doing Business with Otay Water
District” on September 7, 2018, and 38 companies had a
representative in attendance. Out of the 21 evaluations received,
13 rated the program excellent, four (4) rated it very good and
four (4) rated it good. SDCOC will schedule the next session in the
spring of 2019 to include a live demonstration of BidSync on how to
receive and respond to District solicitations.
Fire Marshal Annual Inspection - Natalie Grimes, inspector with the
San Miguel Fire Protection District, completed the annual fire
inspection on October 4, 2018, of the Operations, Warehouse and
Fuel Island. The final report included no violations, comments or
recommendations as all equipment, signage and records were found in
good order.
BidSync Solicitations – During the last reporting period, three (3)
solicitations were advertised on the District’s solicitation web
portal, BidSync, and on the District’s website:
o “RFP - Professional Engineering Design Services for Five Potable
Water Pipelines” – To provide engineering design services for
five (5) projects. The Projects include the replacement of
approximately 8,000 linear feet of various diameter (4-14 inch)
potable water pipelines at various locations within the District
with newly designed pipelines. Some pipelines may require new
alignments. The general scope of work for the Project includes,
but is not limited to:
Preliminary Design Report Preparation
Construction Contract Documents Preparation
Investigation of Existing Conditions and Facilities
Professional Surveying and Potholing
County or City of Chula Vista Permitting
Bidding Assistance
Construction Support
No budget amount is listed.
o “RWCWRF Fuel System Improvements (CIP R2147)” – For the work
consisting of performing all operations and furnishing of all
3
labor, materials, tools, and equipment necessary for the
replacement of belowground and aboveground diesel fuel lines and
return tank and all other work and appurtenances in accordance
with the contract documents. The budgeted amount is $120,000.
o “As-Needed Appraisal Services FY19-FY21” – To provide appraisal
services by a certified MAI appraiser in support of the
District’s Capital Improvement Program (CIP) for a period of
three Fiscal Years (FY 2019 - FY 2021) on an as-needed basis,
for a not-to-exceed amount of $50,000.00.
Safety & Security:
Safety Training:
o Staff completed annual regulatory asbestos cement pipe (ACP)
refresher training. The distribution system for water as part of
the infrastructure has asbestos cement piping. Staff is exposed
to this hazard during line repair and replacement because they
must disturb the asbestos in order to complete the job. The
training is a requirement of Cal/OSHA Subchapter 4, Construction
Safety Orders Article 4, §1529 Asbestos.
o The video, “Safety is in Your Hands”, was shown to staff during
scheduled safety tailgate meetings as a reminder, which
highlights the importance of training and proper instruction.
o Practical hands-on training on the Industrial Scientific Ventis
MX4 gas detection equipment was completed with Inspection staff.
The availability and use of this equipment allows inspections
staff to have and use a four gas detection unit for and when
access to confined spaces is required as part of their job.
Safety Committee - The District’s Safety Committee quarterly
meeting took place on October 10, 2018. The topics below were
covered and discussed during the meeting:
o Testing of Emergency Generators at Pump Stations 711-1, 980-1
and 944-1 (Lockout/Tagout)
o Sweat Proof Sunblock Protection
o Update - Utility Evaluation and Testing of Heat Illness
Prevention PPE’s
o Update - Respiratory Protection Requirements and Job
Descriptions
o Update - Utilities’ Commercial Vehicle Steps and Open Trailers
o Update - Treatment Plant Cal-OSHA Inspections
o Welding and Cutting Operations
o FEMA Emergency Training
o Active Shooter Information
o Safety Committee Program Review
4
FINANCE:
Audit – Teaman Ramirez & Smith completed the District’s FY 2018
annual audit and will be presenting the final report at the
November 7th Board meeting.
2018A Water Revenue Bonds – Staff has executed the documents
necessary for the closing of the 2018A Water Revenue Bonds. The
bond closing is scheduled for November 1st. On that date, the
District will receive the proceeds from the issuance. The District
will reimburse itself for eligible expenses through the close and
will transfer the remaining proceeds to a designated account which
is segregated from other District funds. The funds will be drawn
down from the account as the District expends funds on the eligible
projects.
ADP – The District is implementing ADP’s cloud based payroll
system. Among many other improvements, this system will enable
both employees to enter timesheets and managers to approve
timesheets from any mobile device. Staff is planning for employee
and potentially Director training sessions in December, with a push
for ADP to go-live on January 1, 2019. Due to the complexity of
the implementation, the go-live date could be delayed based on the
need for expanding testing related to the integration of the
District’s systems with ADP. While the Board of Directors will
continue to submit reimbursement requests and meeting per-diems
using the existing process, the Director’s expense reimbursements
that are currently paid through payroll will be paid through the
ADP system. Payment notifications will continue to be sent through
email to both the employees and Directors.
Financial Reporting:
o For the three months ending September 30, 2018, there are total
revenues of $30,532,915 and total expenses of $27,805,229. The
revenues exceeded expenses by $2,727,686.
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of September 30, 2018 total
$49,608,113 with an average yield to maturity of 1.408%. The
total earnings year-to-date are $249,709.
5
ENGINEERING AND WATER SYSTEM OPERATIONS:
ENGINEERING:
870-2 Pump Station Replacement: This project consists of a new pump
station to replace the existing Low Head 571-1 and High Head 870-1
Pump Stations. The project also includes the replacement of the
existing liner and cover for the 571-1 Reservoir (36.7 MG). During
the month of October 2018, Pacific Hydrotech completed the
installation of underground electrical and mechanical utilities
within the station’s east side building slab. Work to set rebar and
pour concrete for the station’s east side building slab was also
completed. Installation of the concrete masonry units (CMUs) for
the station’s exterior and interior walls began in October 2018.
Station specific submittals are in progress. 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)
SR-11 Utility Relocations: This project consists of relocating
several District potable water pipelines located in Otay Mesa Road,
Sanyo Avenue, Enrico Fermi Drive, Alta Road, and within District
easements. The first two rounds of relocations (Caltrans Utility
Agreement Numbers 33592 and 33622) were completed in FY 2016. The
District entered into Utility Agreement No. 33718 for the
relocations in Enrico Fermi Drive and Alta Road on July 20, 2018.
Caltrans has scheduled the start of construction in the fall of
2019. The District received the first reimbursement check in the
amount of $214,134.64 corresponding to a progress payment for the
design phase of Utility Agreement No. 33718 on October 12, 2018.
(P2453)
978-1 & 850-2 Reservoir Interior/Exterior Coatings & Upgrades: This
project consists of removing and replacing the interior and exterior
coatings of the 978-1 (0.5 MG) Reservoir and the 850-2 (3.1 MG)
Reservoir along with providing structural upgrades to ensure the
tanks comply with both state and federal OSHA standards as well as
the American Water Works Association and the County Health
Department standards. The 978-1 Reservoir was placed back in
service in July 2017. The 850-2 Reservoir was placed back in
service on January 12, 2018. Contract acceptance and recordation of
the Notice of Completion by the District was completed on May 31,
2018. Project delivery by Blastco, Inc. (contractor) was behind
schedule due to contractor coordination. As a result, the District
assessed liquidated damages for late delivery of the project
starting in September 2017 through substantial completion, which
occurred when the 850-2 Reservoir was placed back in service on
January 12, 2018. The contractor has sent claims correspondence to
6
the District disputing the assessment of liquidated damages. The
District’s construction manager for the project has issued the
Engineer’s Entitlement Decision denying the claims. Mediation was
held on August 16, 2018. The contractor has filed for arbitration.
The project is within budget. (P2534 & P2544)
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 October 2018, the
contractor’s horizontal auger boring subcontractor mobilized to the
East Bore Jacking Pit located along westbound Campo Road at the
north east corner of the Campo Road/Jamacha Boulevard intersection.
Jack and bore operations began to install pipe casing diagonally
across to the south west corner of the intersection. Traffic
control was set along eastbound Campo Road to provide room to
install the East Bore Receiving Pit at the south west corner of the
Campo Road/Jamacha Boulevard intersection. Wier Construction, the
contractor for the project, mobilized the drilling subcontractor
and equipment to construct the East Bore Receiving Pit. The
contractor also mobilized two night crews to complete the
installation of the planned sewer main located in the westbound
lanes of Campo Road between the Campo Road/SR 94 intersection and
the East Bore Pit. 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. Through the District’s As-
Needed Engineering Design contract, a Task Order was issued on
May 2, 2017 to Rick Engineering to design the project. Throughout
the design process, staff has continued to discuss the project with
property owners (from project awareness to property encroachment),
with this effort to continue through construction. Final design
drawings were received in mid-August. The negative declaration for
the project was adopted by the Board on October 3, 2018. There are
no mitigation measures needed for the project. Construction
contract for the project is scheduled to be awarded at the November
2018 Board Meeting and completion of the work is anticipated in
June 2019. (P2574 & P2625)
7
OWD Administration and Operations Parking Lot Improvements, Phase II
– Pavement Restoration: Phase I of this project, completed in
October 2017, upgraded the parking lot light fixtures in both the
Administration and Operations lots. Phase II consists of repairing
the asphalt concrete paving, pavement sealing, and restriping both
asphalt concrete parking lots. In addition to the pavement
improvements, a carport will be installed to protect the larger
fleet vehicles, and gates will be installed to better secure the
Operations parking lot. During September 2018, Frank and Son
Paving, Inc., the District’s construction contractor, completed the
asphalt concrete, crack seal, pavement seal, and restriping of the
Administration parking lot areas. Work to seal and restripe a
portion of the upper Operations parking lot was also completed. The
pavement restoration work and striping was performed during weekends
to minimize disruption to customers and the District’s employees.
During October 2018, the contractor installed additional gates in
the upper Operations parking lot. Fabrication of the planned
carport also began in September 2018 and delivery of the carport is
anticipated October/November 2018. The project is within budget and
scheduled to be completed in November 2018. (P2555)
980-2 Reservoir Interior/Exterior Coating and Upgrades: This project
consists of removing and replacing the interior and exterior
coatings of the 980-2 (5.0 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 the
month of September 2018, sanitary testing was completed and the
reservoir was returned to service. During October 2018, the
contractor completed punch list items required for contract
acceptance. The project is within budget. (P2546)
Rancho San Diego Pump Station Rehabilitation: On April 30, 2014,
the District and the San Diego County Sanitation District
(Sanitation District) executed a reimbursement agreement for the
improvements to the Rancho San Diego Pump Station. The Sanitation
District awarded a construction contract to TC Construction Company,
Inc. on September 14, 2016. Construction is now complete and the
Pump Station is in operation. A meeting between the County and
District operators was held on October 4, 2018 at the Pump Station
to confirm coordination between the Station and RWCWRF with the new
improvements. Final project billing will be reflected in the annual
County invoice. (S2027)
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 District received the
vendor’s (Hawthorne) shop drawings for the redundant trailer on
October 9, 2018. The District’s as-needed electrical engineering
8
design consultant (BSE Engineering, Inc.) delivered a 50% electrical
and controls design submittal on September 24, 2018. The District’s
as-needed engineering design consultant (Michael Baker) provided a
structural submittal on October 4, 2018. District staff has been
progressing the civil and mechanical design in-house. A public
works bid package, including grading, mechanical, electrical,
instrumentation & control, and installation of the trailer is
scheduled to be awarded in May 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 award of a construction contract to M-Rae Engineering,
Inc. for this project was approved and field work began in October
2018. Work on this project will be coordinated with the completion
of other CIP projects during the fiscal year to minimize operational
impacts. This project is on schedule and 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. A Notice to
Proceed to replace the cover and liner was issued to Layfield, the
construction contractor for the project, on August 1, 2018. Since
then, Layfield has been progressing with submittals for the project
and has initiated procurement of the liner and cover materials. The
reservoir was dewatered and field work began October 15, 2018, in
accordance with the District’s contract requirements. The project
is within budget and scheduled to be completed in March 2019.
(P2561)
803-2 Reservoir Interior/Exterior Coating and Upgrades: This project
consists of removing and replacing the interior and exterior
coatings of the 803-2 (2.0 MG) Reservoir, along with providing
structural upgrades, to ensure the tank complies with both state and
federal OSHA standards as well as the American Water Works
Association and the County Health Department standards. Design was
completed in-house and the project was advertised on September 4,
2018 and is scheduled to be awarded at the November 2018 Board
Meeting. The project is within budget. (P2565)
For the month of September 2018, the District sold 93 meters (122.5
EDUs), generating $1,066,612 in revenue. Projections for this
period was 60.8 meters (77.1 EDUs), with a budgeted revenue of
$672,173. Total revenue for Fiscal Year 2019 is $3,792,128 against
the annual budget of $8,066,070.
9
WATER SYSTEM OPERATIONS (reporting for September):
On September 10, the District was officially notified of the
dismissal of the recent OSHA citation that was issued to the
District in November 2017. This dismissal was a result of the
significant efforts made by staff to appeal the orginal citations.
On September 14, staff performed an unplanned emergency shutdown on
Stansbury and Walbollen streets in Spring Valley due to a main
break. The shutdown affected 47 meters from 4:30 p.m. to the next
day at 3:30 a.m. Water trailers were provided for customers
affected by the shutdown.
On September 18, staff performed an unplanned shutdown on
Concepcion Avenue between Jamacha Road and Piedmont Street in
Spring Valley due to a main break. The shutdown affected 12
residential meters from 4:30 p.m. to 9:30 p.m. A water trailer was
available for all affected customers.
On September 21, flow deliveries to Mexico began at the rate of
4700 GPM to meet the requested water delivery of 292.7 AF by
Friday, October 5.
On September 22, staff performed a planned shutdown at the
intersection of Stansbury and Walbollen Streets to replace a
defective tee-valve package and install a new 8-inch valve. The
planned shutdown was scheduled on a Saturday as it would affect 47
meters that included one elementary school. Water trailers were
available for all affected customers. The shutdown lasted from 8:00
a.m. to 7:00 p.m.
On September 25, staff performed an unplanned emergency shutdown
due to a main break on the 6-inch ACP pipe. There were 15
residential meters affected from 7:00 p.m. to the next day at
3:00 a.m. A water trailer was available for all affected
customers.
10
Purchases and Change Orders:
The following table summarizes purchases and Change Orders issued
during the period of September 18, 2018 through October 31, 2018
that were within staff signatory authority:
Water Conservation and Sales:
Water Conservation – The September 2018 usage was 13% lower than
September 2013. Since September 2017, customers have saved an
average of 5% over 2013 levels.
Date
Action
Amount
Contractor/
Consultant Project
09/18/18 P.O. $2,999.00 Infactics, Inc. Annual Subscription
09/24/18 P.O. $1,200.00
Lance Picotte
Safety
Consulting
ACP Training
10/05/18 P.O. $3,969.00 Annual Software
License governmentjobs.com
10/09/18 P.O. $2,000.00 First American
Title Ins. Title Report (P1000)
10/10/18 P.O. $2,275.00 SuperHighway
Communications
Fiber Optic
Installation
10/15/18 P.O. $4,498.00
The Centre for
Organizational
Effectiveness
Management Training
10/15/18 P.O. $1,500.00 San Diego County
Assessor
Monthly Assessor
Data
10/31/18 P.O. $70,000.00
Clarkson
Laboratory &
Supply
Various
11
The September potable water purchases were 2,907.3 acre-feet which is
4.0% below the budget of 3,029.8 acre-feet. The cumulative purchases
through September were 9,158.0 acre-feet which is 1.9% above the
cumulative budget of 8,989.4 acre-feet.
The September recycled water purchases and production were 412.4
acre-feet which is 13.7% below the budget of 477.9 acre-feet. The
cumulative production and purchases through September were 1,508.7
acre-feet, which is 8.8% above the cumulative budget of 1,387.1 acre-
feet.
12
Potable, Recycled, and Sewer (Reporting up to the month of September):
Total number of potable water meters: 50,445.
Total number of sewer connections: 4,725.
Recycled water consumption for the month of September:
o Total consumption: 495.8 acre-feet or 161,505,916 gallons.
o Average daily consumption: 5,383,531 gallons per day.
o Total cumulative recycled water consumption since July 1, 2018:
1480.7 acre-feet.
o Total number of recycled water meters: 728.
Wastewater flows for the month of September:
o Total basin flow: 1,487,917 gallons per day.
This is an increase of 15.4% from September 2017.
o Spring Valley Sanitation District Flow to Metro: 494,246 gallons
per day.
o Total Otay flow: 993,567 gallons per day.
o Flow Processed at the Ralph W. Chapman Water Recycling Facility:
898,267 gallons per day.
o Flow to Metro from Otay Water District: 160,883 gallons per day.
By the end of September there were 6,739 wastewater EDUs.
Check Total
9,727.91
10,962.99
8,921.72
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
2051104 09/26/18 01910 ABCANA INDUSTRIES INC 1032176 08/29/18 SODIUM HYPOCHLORITE 2,958.73
1032474 09/04/18 SODIUM HYPOCHLORITE 1,846.05
1032468 08/31/18 SODIUM HYPOCHLORITE 1,284.65
1032175 08/29/18 SODIUM HYPOCHLORITE 1,163.26
1032729 09/07/18 SODIUM HYPOCHLORITE 890.15
1032728 09/07/18 SODIUM HYPOCHLORITE 526.00
1032475 09/04/18 SODIUM HYPOCHLORITE 495.65
1032467 08/31/18 SODIUM HYPOCHLORITE 487.56
1032730 09/07/18 SODIUM HYPOCHLORITE 75.86
2051184 10/10/18 01910 ABCANA INDUSTRIES INC 1033191 09/13/18 SODIUM HYPOCHLORITE 3,227.80
1033547 09/20/18 SODIUM HYPOCHLORITE 2,832.29
1033503 09/19/18 SODIUM HYPOCHLORITE 1,112.69
1033189 09/13/18 SODIUM HYPOCHLORITE 910.38
1033546 09/20/18 SODIUM HYPOCHLORITE 859.80
1033190 09/13/18 SODIUM HYPOCHLORITE 809.23
1033502 09/19/18 SODIUM HYPOCHLORITE 414.73
1033729 09/24/18 SODIUM HYPOCHLORITE 404.61
1033483 09/19/18 SODIUM HYPOCHLORITE 257.94
1033730 09/24/18 SODIUM HYPOCHLORITE 133.52
2051268 10/24/18 01910 ABCANA INDUSTRIES INC 1033933 09/27/18 SODIUM HYPOCHLORITE 2,680.56
1034326 10/04/18 SODIUM HYPOCHLORITE 2,427.68
1033939 09/27/18 SODIUM HYPOCHLORITE 687.84
1034325 10/04/18 SODIUM HYPOCHLORITE 657.50
1034118 09/28/18 SODIUM HYPOCHLORITE 606.92
1033879 09/26/18 SODIUM HYPOCHLORITE 566.46
1034327 10/04/18 SODIUM HYPOCHLORITE 515.88
1033940 09/27/18 SODIUM HYPOCHLORITE 424.84
1033934 09/27/18 SODIUM HYPOCHLORITE 354.04
2051236 10/17/18 08488 ABLEFORCE INC 8131 10/03/18 SHAREPOINT SERVICES (9/11/18-9/24/18)1,650.00 1,650.00
2051237 10/17/18 18122 ACC BUSINESS 182585136 09/27/18 INTERNET CIRCUITS 1,034.79 1,034.79
2051105 09/26/18 18122 ACC BUSINESS 182274816 08/27/18 INTERNET CIRCUITS 1,016.08 1,016.08
2051185 10/10/18 17989 ADS CORP 22335220918 09/22/18 ADS MAINTENANCE & REPORTING 675.00 675.00
2051106 09/26/18 11462 AEGIS ENGINEERING MGMT INC 1432 09/07/18 DEVELOPER PLAN REVIEW (8/4/18-8/31/18)6,360.45 6,360.45
2051269 10/24/18 07732 AIRGAS SPECIALTY PRODUCTS INC 131558616 09/28/18 AQUA AMMONIA 754.50
Page 1 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
1,286.50
6,240.00
13,240.00
6,861.00
2051269 10/24/18 07732 AIRGAS SPECIALTY PRODUCTS INC 131558616 09/28/18 AQUA AMMONIA 754.50
131558615 09/28/18 AQUA AMMONIA 271.00
131564573 10/04/18 AQUA AMMONIA 261.00
2051107 09/26/18 07732 AIRGAS SPECIALTY PRODUCTS INC 131558537 08/29/18 AQUA AMMONIA 293.36 293.36
2051186 10/10/18 15024 AIRX UTILITY SURVEYORS INC 608312018 09/11/18 AS-NEEDED UTL LOCATING (8/1/18-8/31/18)28,335.00 28,335.00
2051270 10/24/18 15024 AIRX UTILITY SURVEYORS INC 709302018 10/03/18 AS-NEEDED UTL LOCATING (9/1/18-9/30/18)17,165.00 17,165.00
2051145 10/03/18 19110 ALEXANDER SCOTT Ref002521266 10/01/18 UB Refund Cst #0000240636 49.58 49.58
2051271 10/24/18 14462 ALYSON CONSULTING CM201845 10/08/18 MGMT/INSP (9/1/18-9/30/18)2,400.00
CM201843 10/08/18 MGMT/INSP (9/1/18-9/30/18)1,440.00
CM201846 10/08/18 MGMT/INSP (9/1/18-9/30/18)1,120.00
CM201847 10/08/18 MGMT/INSP (9/1/18-9/30/18)960.00
CM201844 10/08/18 MGMT/INSP (9/1/18-9/30/18)320.00
2051108 09/26/18 14462 ALYSON CONSULTING CM201841 09/10/18 MGMT/INSP (8/1/18-8/31/18)4,480.00
CM201839 09/10/18 MGMT/INSP (8/1/18-8/31/18)2,400.00
CM201836 09/10/18 MGMT/INSP (8/1/18-8/31/18)2,080.00
CM201838 09/10/18 MGMT/INSP (8/1/18-8/31/18)2,080.00
CM201840 09/10/18 MGMT/INSP (8/1/18-8/31/18)1,600.00
CM201842 09/10/18 MGMT/INSP (8/1/18-8/31/18)320.00
CM201837 09/10/18 MGMT/INSP (8/1/18-8/31/18)280.00
2051146 10/03/18 19102 ANDREW ZITZMAN Ref002521258 10/01/18 UB Refund Cst #0000222648 32.27 32.27
2051272 10/24/18 08967 ANTHEM EAP 76962 10/01/18 EMPLOYEE ASSIST PROG 916.53 916.53
2051187 10/10/18 19121 APUY, MELISSA 100418 10/04/18 CONFERENCE AND MEMBERSHIP (2018)286.60 286.60
2051147 10/03/18 17264 ARTIANO SHINOFF 301196 09/17/18 LEGAL FEES TO (AUG 2018)63,823.81 63,823.81
2051109 09/26/18 07785 AT&T 000011750599 08/12/18 TELEPHONE SERVICES (7/12/18 - 8/11/18)4,361.71 4,361.71
2051238 10/17/18 07785 AT&T 000011891499 09/12/18 TELEPHONE SERVICES (8/12/18 - 9/11/18)4,466.96 4,466.96
2051110 09/26/18 18599 ATKINSON ANDELSON LOYA RUUD 552418 08/31/18 LEGAL/CONSULTING SERVICES (AUG 2018)3,732.75 3,732.75
2051148 10/03/18 19116 BASHAR HANISH Ref002521272 10/01/18 UB Refund Cst #0000248964 89.75 89.75
2051149 10/03/18 08156 BROWNSTEIN HYATT FARBER 734624 09/25/18 LEGISLATIVE ADVOCACY (THRU 8/31/18)6,703.50
734623 09/25/18 LEGISLATIVE ADVOCACY (THRU 8/31/18)157.50
2051111 09/26/18 18665 BURTECH PIPELINE INC 00018061 08/09/18 RETAINAGE RELEASE 8,978.58 8,978.58
2051112 09/26/18 08490 CALIFORNIA BANK & TRUST 1008312018 09/05/18 RET/TC CONST #A7003 (ENDING 8/31/18)13,587.40 13,587.40
Page 2 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
4,076.00
4,234.00
29,740.00
16,736.00
30,244.00
80,721.85
2051113 09/26/18 01432 CALIFORNIA WATER EFFICIENCY MD2018179 09/20/18 MEMBERSHIP RENEWAL (2018)2,445.38 2,445.38
2051188 10/10/18 15177 CAROLLO ENGINEERS INC 0170285 09/18/18 DESIGN/CONST 870-2 PS (8/1/18-8/31/18)13,777.50 13,777.50
2051189 10/10/18 18951 CAVANAUGH & ASSOCIATES P A WE180791 09/30/18 WATER AUDIT VALIDATION REVIEW 2,500.00 2,500.00
2051239 10/17/18 08895 CITY OF LA MESA 20257 10/12/18 FINGERPRINTING SERVICES 20.00 20.00
2051114 09/26/18 04119 CLARKSON LAB & SUPPLY INC 97766 08/31/18 BACTERIOLOGICAL TESTING 8/21/18-8/22/18)1,362.00
97763 08/31/18 BACTERIOLOGICAL TESTING (8/14/18-8/15/18)832.00
97767 08/31/18 BACTERIOLOGICAL TESTING (8/28/18-8/29/18)604.00
97764 08/31/18 BACTERIOLOGICAL TESTING (8/17/18-8/19/18)572.00
97762 08/31/18 BACTERIOLOGICAL TESTING (8/7/18-8/8/18)528.00
97765 08/31/18 BACTERIOLOGICAL TESTING (8/20/18)178.00
2051273 10/24/18 04119 CLARKSON LAB & SUPPLY INC 98139 09/30/18 BACTERIOLOGICAL TESTING (9/13/18-9/14/18)1,018.00
98143 09/30/18 BACTERIOLOGICAL TESTING (9/25/18-9/26/18)832.00
98142 09/30/18 BACTERIOLOGICAL TESTING (9/24/18)688.00
98137 09/30/18 BACTERIOLOGICAL TESTING (9/11/18-9/12/18)566.00
98140 09/30/18 BACTERIOLOGICAL TESTING (9/17/18-9/18/18)528.00
98136 09/30/18 BACTERIOLOGICAL TESTING (9/5/18)265.00
98138 09/30/18 BACTERIOLOGICAL TESTING (9/13/18)206.00
98135 09/30/18 BACTERIOLOGICAL TESTING (9/5/18)103.00
98141 09/30/18 BACTERIOLOGICAL TESTING (9/17/18)28.00
2051240 10/17/18 03288 COMPUTER PROTECTION 24202CPT 09/19/18 ELECTRICAL INSTALLATION 5,956.21 5,956.21
2051274 10/24/18 17923 CONCORD UTILITY SERVICES 2362 10/08/18 REGISTER REPL PROG (10/1/18-10/05/18)16,860.00
2358 09/28/18 REGISTER REPL PROG (9/24/18-9/28/18)12,880.00
2051115 09/26/18 17923 CONCORD UTILITY SERVICES 2342 09/07/18 REGISTER REPL PROG (9/3/18-9/7/18)12,192.00
2337 08/31/18 REGISTER REPL PROG (8/27/18-8/31/18)4,544.00
2051190 10/10/18 17923 CONCORD UTILITY SERVICES 2352 09/21/18 REGISTER REPL PROG (9/17/18-9/21/18)15,748.00
2348 09/14/18 REGISTER REPL PROG (9/10/18-9/14/18)14,496.00
2051191 10/10/18 18331 CORE & MAIN LP J478815 09/11/18 ALLEGRO METERS & REGISTERS 22,814.12
J476553 09/11/18 ALLEGRO METERS & REGISTERS 22,814.12
J156507 09/20/18 INVENTORY 18,636.87
J530273 09/21/18 INVENTORY 8,356.02
J498036 09/19/18 INVENTORY 4,932.80
J476631 09/11/18 INVENTORY 2,110.07
J534892 09/21/18 INVENTORY 1,057.85
Page 3 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
68,979.40
13,560.00
918.00
3,545.00
30,752.25
849.08
2051116 09/26/18 18331 CORE & MAIN LP J458315 09/10/18 ALLEGRO METERS & REGISTERS 31,791.70
J456264 09/06/18 ALLEGRO METERS & REGISTERS 25,270.33
J407619 09/07/18 ALLEGRO METERS & REGISTERS 11,917.37
2051241 10/17/18 15049 CORELOGIC SOLUTIONS LLC 50024034 09/18/18 DATA SERVICES (8/1/18-7/31/19)7,260.00
50024055 09/19/18 DATA SERVICES (8/1/18-7/31/19)6,300.00
2051242 10/17/18 02612 COUNCIL OF WATER UTILITIES COWU101618 10/11/18 BUSINESS MEETING (10/16/18)45.00 45.00
2051117 09/26/18 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD081809/19/18 EXCAVATION PERMITS (AUG 2018)6,109.40 6,109.40
2051150 10/03/18 00134 COUNTY OF SAN DIEGO 092418 09/24/18 NOTICE OF DETERMINATION 2,330.75 2,330.75
2051275 10/24/18 00184 COUNTY OF SAN DIEGO DEH180206OHP 09/26/18 INDUSTRIAL HYGIENE SERV (7/1/17-6/30/18)1,643.34 1,643.34
2051276 10/24/18 00184 COUNTY OF SAN DIEGO 2003193E602480918 10/04/18 SHUT DOWN TEST (09/27/18)612.00
2003193E602420918 10/04/18 SHUT DOWN TEST (09/27/18)306.00
2051192 10/10/18 00184 COUNTY OF SAN DIEGO 5364081718 08/17/18 UPFP PERMIT RENEWAL (10/31/18-10/31/19)1,460.00
5363081718 08/17/18 UPFP PERMIT RENEWAL (10/31/18-10/31/19)1,147.00
1354081718 08/17/18 UPFP PERMIT RENEWAL (10/31/18-10/31/19)469.00
5365081718 08/17/18 UPFP PERMIT RENEWAL (10/31/18-10/31/19)469.00
2051193 10/10/18 04443 CSI SERVICES INC 8442 09/13/18 COATING INSPECTION (8/6/18-8/31/18)15,882.75
8463 09/17/18 COATING INSPECTION SVCS (8/24/18-9/14/18)10,780.00
8464REV 09/19/18 COATING INSPECTION SVCS (9/4/18-9/12/18)4,089.50
2051118 09/26/18 18756 CULTURA 4251 09/10/18 CUBICLE RECONFIGURATION 4,716.44 4,716.44
2051119 09/26/18 11797 D&H WATER SYSTEMS INC I20180904 08/31/18 RCS TRAILER RENTAL (SEPT 2018)19,465.00 19,465.00
2051277 10/24/18 11797 D&H WATER SYSTEMS INC I20181003 09/28/18 RCS TRAILER RENTAL (OCT 2018)6,465.00 6,465.00
2051227 10/17/18 19144 DANIEL OMAN Ref002525618 10/15/18 UB Refund Cst #0000183251 241.90 241.90
2051228 10/17/18 19141 DEBORAH BRADY-DAVIS Ref002525615 10/15/18 UB Refund Cst #0000074035 170.89 170.89
2051151 10/03/18 19095 DEBRA JACKSON Ref002521251 10/01/18 UB Refund Cst #0000033561 174.19 174.19
2051120 09/26/18 18705 DELPAK SYSTEMS LTD EI1883000129 09/03/18 GPS TRACKING SYSTEM 1,525.75 1,525.75
2051229 10/17/18 19143 EDGAR SANCHEZ Ref002525617 10/15/18 UB Refund Cst #0000172526 46.88 46.88
2051152 10/03/18 19118 ENGINEERING & ENVIRONMENTAL Ref002521274 10/01/18 UB Refund Cst #0000249549 1,324.23 1,324.23
2051194 10/10/18 03546 FERGUSON WATERWORKS # 1083 0649385 09/20/18 INVENTORY 673.44
0649391 09/21/18 INVENTORY 175.64
2051121 09/26/18 03546 FERGUSON WATERWORKS # 1083 06439972 08/28/18 INVENTORY 567.08 567.08
Page 4 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
13,713.26
115.63
249.08
590.78
2051278 10/24/18 03546 FERGUSON WATERWORKS # 1083 0651122 10/04/18 INVENTORY 4,492.84
0648598 09/26/18 INVENTORY 4,419.91
0649286 10/03/18 INVENTORY 3,060.10
0650277 09/27/18 INVENTORY 1,353.49
06502771 10/03/18 INVENTORY 386.92
2051122 09/26/18 17888 FIRST AMERICAN DATA TREE LLC 9003400818 08/31/18 ONLINE DOCUMENTS (MONTHLY)99.00 99.00
2051279 10/24/18 17888 FIRST AMERICAN DATA TREE LLC 9003400918 09/30/18 ONLINE DOCUMENTS (MONTHLY)162.25 162.25
2051243 10/17/18 10096 FIRST AMERICAN TITLE INS 20822082107348 10/03/18 PRELIMINARY TITLE REPORT 2,000.00 2,000.00
2051280 10/24/18 02591 FITNESS TECH 11057 10/01/18 GYM EQUIPMENT MAINTENANCE (OCT 2018)135.00 135.00
2051281 10/24/18 11962 FLEETWASH INC x1432009 10/05/18 FLEET WASH SERVICES 81.62
x1426212 09/28/18 FLEET WASH SERVICES 34.01
2051123 09/26/18 11962 FLEETWASH INC x1404003 08/31/18 FLEET WASH SERVICES 108.83 108.83
2051195 10/10/18 11962 FLEETWASH INC x1414835 09/14/18 FLEET WASH SERVICES 156.44
x1410099 09/07/18 FLEET WASH SERVICES 92.64
2051153 10/03/18 18600 FRANCHISE TAX BOARD Ben2521306 10/04/18 BI-WEEKLY PAYROLL DEDUCTION 125.00 125.00
2051244 10/17/18 18600 FRANCHISE TAX BOARD Ben2525661 10/18/18 BI-WEEKLY PAYROLL DEDUCTION 125.00 125.00
2051245 10/17/18 19149 FULLMER CONSTRUCTION Ref002525623 10/15/18 UB Refund Cst #0000241371 3,751.28 3,751.28
2051246 10/17/18 17855 GASTELUM, HECTOR 090118091418 09/14/18 EXPENSE REIMBURSEMENT (9/1/18-9/14/18)20.00 20.00
2051154 10/03/18 17855 GASTELUM, HECTOR 090118093018 09/01/18 MILEAGE REIMBURSEMENT (SEPT 2018)396.76
070118073118 10/01/18 MILEAGE REIMBURSEMENT (JULY 2018)97.01
080118083018 10/01/18 MILEAGE REIMBURSEMENT (AUG 2018)97.01
2051247 10/17/18 19151 GENESIS NEW HOMES LLC Ref002525625 10/15/18 UB Refund Cst #0000249351 735.80 735.80
2051230 10/17/18 19140 GEORGE KENNER Ref002525614 10/15/18 UB Refund Cst #0000069208 83.52 83.52
2051124 09/26/18 00101 GRAINGER INC 9889170867 08/28/18 INVENTORY 1,184.56 1,184.56
2051248 10/17/18 12907 GREENRIDGE LANDSCAPE INC 17308 09/17/18 LANDSCAPING SERVICES (SEPT 2018)8,909.50 8,909.50
2051282 10/24/18 18235 GROUPWARE TECHNOLOGY INC 68299 10/03/18 FIREWALL/POLICY MGMT IMPLEMENTATION 15,947.00 15,947.00
2051125 09/26/18 00174 HACH COMPANY 11114805 08/30/18 HACH INSTRUMENT SERVICE 13,771.00 13,771.00
2051196 10/10/18 00174 HACH COMPANY 11140656 09/18/18 HACH SL1000 ANALYZER 7,893.60 7,893.60
2051283 10/24/18 00174 HACH COMPANY 11159302 10/01/18 MONOCHLORAMINE ANALYZER SUPPLIES 3,819.10 3,819.10
2051197 10/10/18 18436 HAZEN AND SAWYER DPC 200940007 09/17/18 HYDRAULIC MODELING (8/1/18-8/31/18)6,335.00 6,335.00Page 5 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
16,382.58
16,666.11
19,320.97
3,028.30
2051197 10/10/18 18436 HAZEN AND SAWYER DPC 200940007 09/17/18 HYDRAULIC MODELING (8/1/18-8/31/18)6,335.00 6,335.00
2051284 10/24/18 02008 HELIX ENVIRONMNTL PLANNING INC 68460 10/01/18 AS-NEEDED ENVIRONMENTAL (ENDING 8/19/18)3,726.96 3,726.96
2051198 10/10/18 13349 HUNSAKER & ASSOCIATES 2018080069 09/17/18 LAND SURVEYING SERVICES (7/28/18-8/31/18)7,663.51 7,663.51
2051199 10/10/18 15622 ICF JONES & STOKES INC 0133116 09/21/18 SAN MIGUEL HMA (7/28/18-8/31/18)16,273.73
0132716 09/11/18 AS-NEEDED ENVR SVCS (7/28/18-8/31/18)108.85
2051126 09/26/18 17816 INDUSTRIAL SCIENTIFIC CORP 2130833 08/31/18 GAS DETECTION PROGRAM (AUG 2018)704.58 704.58
2051285 10/24/18 17816 INDUSTRIAL SCIENTIFIC CORP 2139854 09/30/18 GAS DETECTION PROG (SEPT 2018)704.58 704.58
2051127 09/26/18 19059 INFATICS INC 1831 09/12/18 ANNUAL SUBSCRIPTION (9/12/18-9/11/19)2,999.00 2,999.00
2051286 10/24/18 08969 INFOSEND INC 142746 09/28/18 BILL PROCESSING SERVICES 11,242.68
142745 09/28/18 BILL PROCESSING SERVICES 3,121.36
143130 10/02/18 BILL PROCESSING SERVICES 2,302.07
2051200 10/10/18 08969 INFOSEND INC 142068 09/11/18 BILL PROCESSING SERVICES 338.57 338.57
2051128 09/26/18 08969 INFOSEND INC 141645 08/31/18 BILL PROCESSING SERVICES 12,016.17
141644 08/31/18 BILL PROCESSING SERVICES 4,995.86
141876 09/04/18 BILL PROCESSING SERVICES 2,308.94
2051155 10/03/18 19111 IRMA ANGUIANO Ref002521267 10/01/18 UB Refund Cst #0000240782 21.56 21.56
2051201 10/10/18 17106 IWG TOWERS ASSETS II LLC 461528 10/01/18 ANTENNA SUBLEASE 1,757.00 1,757.00
2051129 09/26/18 19089 JAMES OMALLEY 652509252018 09/25/18 CUSTOMER REFUND 654.98 654.98
2051156 10/03/18 19100 JAMIKA CORDLE Ref002521256 10/01/18 UB Refund Cst #0000216505 58.26 58.26
2051202 10/10/18 10563 JCI JONES CHEMICALS INC 767525 CHLORINE CONTAINER CREDIT -4,000.00
765395 CHLORINE CONTAINER CREDIT -2,000.00
767498 08/29/18 CHLORINE 3,633.60
769857 09/18/18 CHLORINE 3,450.40
765343 08/06/18 CHLORINE 1,944.30
2051231 10/17/18 19146 JEANETTE DENIS Ref002525620 10/15/18 UB Refund Cst #0000207410 43.88 43.88
2051157 10/03/18 19098 JEANNIE TAYLOR Ref002521254 10/01/18 UB Refund Cst #0000204427 69.02 69.02
2051158 10/03/18 19115 JENNIFER MORRIS Ref002521271 10/01/18 UB Refund Cst #0000244644 14.51 14.51
2051159 10/03/18 19103 JESUS GALAVIZ Ref002521259 10/01/18 UB Refund Cst #0000222827 10.19 10.19
2051130 09/26/18 19088 JOSE CICCONE 891109242018 09/24/18 CUSTOMER REFUND 310.81 310.81
2051232 10/17/18 19145 KAREN LANGHOFER Ref002525619 10/15/18 UB Refund Cst #0000184241 34.27 34.27
Page 6 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
44,334.00
2051203 10/10/18 17987 KEH & ASSOCIATES INC OWD0111705 09/20/18 WATER RECLAMATION (8/1/18-8/31/18)8,821.00 8,821.00
2051204 10/10/18 05840 KIRK PAVING INC 6910 09/12/18 PAVING SERVICES 8,083.00 8,083.00
2051131 09/26/18 05840 KIRK PAVING INC 6899 08/31/18 PAVING SERVICES 10,141.50 10,141.50
2051160 10/03/18 19108 LAKEITHA ELLIS Ref002521264 10/01/18 UB Refund Cst #0000240013 35.89 35.89
2051161 10/03/18 19113 LALYLA YOUKHANA Ref002521269 10/01/18 UB Refund Cst #0000242711 30.19 30.19
2051162 10/03/18 19112 LAUREN PAETRANGELO Ref002521268 10/01/18 UB Refund Cst #0000241877 39.98 39.98
2051132 09/26/18 15615 LAYFIELD USA CORPORATION 108312018 09/05/18 RES 711-3 FLT COVER&LINER (ENDING 8/31/18)6,650.00 6,650.00
2051233 10/17/18 19142 LIBERTY CADIZ Ref002525616 10/15/18 UB Refund Cst #0000090805 81.41 81.41
2051163 10/03/18 19109 M K DEVELOPERS INC Ref002521265 10/01/18 UB Refund Cst #0000240554 36.17 36.17
2051133 09/26/18 18905 M RAE ENGINEERING INC 209072018 09/06/18 IC AIRVAC VALVE REPL(ENDING 9/7/18)4,332.20 4,332.20
2051287 10/24/18 18905 M RAE ENGINEERING INC 00018241 09/06/18 RETAINAGE RELEASE 3,965.51 3,965.51
2051288 10/24/18 07591 MA, DONGXING 101018101218 10/12/18 MEALS AND INCIDENTALS (10/10/18-10/12/18)180.94 180.94
2051164 10/03/18 19106 MANUEL MURPHY Ref002521262 10/01/18 UB Refund Cst #0000231795 23.91 23.91
2051165 10/03/18 19101 MARIUS JEFFERSON Ref002521257 10/01/18 UB Refund Cst #0000221255 19.46 19.46
2051289 10/24/18 06648 MEASUREMENT CONTROL 203159 09/28/18 TEMP FIRE HYDRANT METER REGISTERS 5,606.84 5,606.84
2051205 10/10/18 16608 MICHAEL BAKER INT'L INC 1025444 09/13/18 870-2 PS INSPECTION SVCS (ENDING 9/2/18)43,104.00
1025852 09/18/18 ENGINEERING DESIGN (8/10/18-8/29/18)1,230.00
2051166 10/03/18 16613 MISSION RESOURCE CONSERVATION 393 10/01/18 WS IRRIGATION UPGRADE (9/1/18-9/30/18)32.00 32.00
2051206 10/10/18 02371 MOODY'S INVESTORS SERVICE C2039403-000 09/17/18 ANNUAL FEE 96 COPS 5,500.00 5,500.00
2051167 10/03/18 19094 NANCY CURCIO Ref002521250 10/01/18 UB Refund Cst #0000022169 108.15 108.15
2051168 10/03/18 19099 NANCY NEEL Ref002521255 10/01/18 UB Refund Cst #0000206373 60.85 60.85
2051290 10/24/18 16898 NATIONAL METER & AUTOMATION S1104740001 09/17/18 CELL UNITS 5,502.15 5,502.15
2051249 10/17/18 16255 NATIONWIDE RETIREMENT Ben2525651 10/18/18 BI-WEEKLY DEFERRED COMP PLAN 11,201.22 11,201.22
2051169 10/03/18 16255 NATIONWIDE RETIREMENT Ben2521296 10/04/18 BI-WEEKLY DEFERRED COMP PLAN 11,201.22 11,201.22
2051291 10/24/18 08531 NEWEST CONSTRUCTION 1-100318 10/03/18 TER FILTER LAUNDER RPLMNT 28,602.50 28,602.50
2051292 10/24/18 00761 NINYO & MOORE GEOTECHNICAL 220724 08/29/18 GEOTECHNICAL SERVICES (6/30/18-7/27/18)1,551.05 1,551.05
2051293 10/24/18 02027 NTH GENERATION COMPUTING INC 33188H 09/28/18 FIREWALLS & POLICY MGMT SOLUTION 37,778.84 37,778.84
2051250 10/17/18 02027 NTH GENERATION COMPUTING INC 33187H 09/24/18 FIREWALLS & POLICY MGMT SOLUTION 14,690.00 14,690.00
Page 7 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
442.98
2051250 10/17/18 02027 NTH GENERATION COMPUTING INC 33187H 09/24/18 FIREWALLS & POLICY MGMT SOLUTION 14,690.00 14,690.00
2051134 09/26/18 18332 NV5 INC 98831 08/30/18 ENGINEERING DESIGN (7/1/18-7/28/18)3,780.00 3,780.00
2051294 10/24/18 18332 NV5 INC 101976 10/02/18 ENGINEERING DESIGN (8/1/18-8/24/18)5,430.00 5,430.00
2051170 10/03/18 19093 OFELIA MUNOZ Ref002521249 10/01/18 UB Refund Cst #0000011998 185.69 185.69
2051251 10/17/18 19150 PACIFIC COAST COMMUNITIES Ref002525624 10/15/18 UB Refund Cst #0000243264 1,274.38 1,274.38
2051207 10/10/18 06646 PACIFIC HYDROTECH CORPORATION 908312018 09/14/18 870-2 PS REPLACEMENT (ENDING 8/31/18)574,120.81 574,120.81
2051295 10/24/18 14183 PACIFIC SAFETY CENTER 74773 09/25/18 SAFETY TRAINING (9/25/18)125.00 125.00
2051208 10/10/18 18562 PACIFIC WESTERN BANK 908312018 09/14/18 RET/PACIFIC HYDRO A#7533 (ENDING 8/31/18)30,216.88 30,216.88
2051234 10/17/18 19147 PEDRO CHIROQUE Ref002525621 10/15/18 UB Refund Cst #0000233374 32.28 32.28
2051209 10/10/18 17844 PHIL'S BBQ 55681 10/04/18 2018 RECOGNITION LUNCHEON 4,091.77 4,091.77
2051210 10/10/18 15081 PINOMAKI DESIGN 5763 10/01/18 GRAPHIC DESIGN SERVICES 255.00 255.00
2051211 10/10/18 06419 PLANT SOUP INC 1205 09/13/18 PROFESSIONAL WRITING SERVICES 1,335.25 1,335.25
2051212 10/10/18 01715 PORRAS, PEDRO 102218102518 10/09/18 SEMINAR REIMBURSEMENT (10/22/18-10/25/18)2,461.28 2,461.28
2051135 09/26/18 03351 POSADA, ROD 090918091218 09/19/18 TRAVEL AND AIRFARE 1,257.05 1,257.05
2051252 10/17/18 18919 PRESIDIO CORNERSTONE CAMBRIA MTR2879280101118 10/11/18 METER REFUND CAMBRIA PHASE 2 62,859.63 62,859.63
2051253 10/17/18 18919 PRESIDIO CORNERSTONE CAMBRIA MTR277278101118 10/11/18 METER REFUND CAMBRIA PHASE 3 62,747.58 62,747.58
2051254 10/17/18 18919 PRESIDIO CORNERSTONE CAMBRIA MTR275276101118 10/11/18 METER REFUND CAMBRIA PHASE 1 31,037.64 31,037.64
2051136 09/26/18 15647 RFYEAGER ENGINEERING LLC 18152 09/05/18 CORROSION SERVICES (8/1/18-8/31/18)1,670.00 1,670.00
2051296 10/24/18 15647 RFYEAGER ENGINEERING LLC 18171 10/04/18 CORROSION SERVICES (9/1/18-9/30/18)14,245.00 14,245.00
2051213 10/10/18 08972 RICK ENGINEERING COMPANY 17829D(13)09/20/18 DESIGN SERVICES (7/28/18-8/31/18)17,513.09 17,513.09
2051297 10/24/18 08972 RICK ENGINEERING COMPANY 0063308 09/20/18 TRAFFIC ENGINEERING (7/28/18-8/31/18)775.00 775.00
2051214 10/10/18 00521 RICK POST WELD & WET TAPPING 12031 09/19/18 WET TAP 675.00 675.00
2051255 10/17/18 04542 ROBAK, MARK 090118093018 09/30/18 EXPENSE REIMBURSEMENT (9/1/18-9/30/18)369.40
090118093018A 09/30/18 MILEAGE REIMBURSEMENT (9/1/18-9/30/18)73.58
2051235 10/17/18 19139 ROBERT KINNEY Ref002525613 10/15/18 UB Refund Cst #0000042084 133.27 133.27
2051171 10/03/18 19096 ROLANDO GRANADOS Ref002521252 10/01/18 UB Refund Cst #0000040498 30.95 30.95
2051172 10/03/18 19114 RUBEN VILLA Ref002521270 10/01/18 UB Refund Cst #0000243656 35.37 35.37
2051256 10/17/18 19148 SAGE HOME MORTGAGE LLC Ref002525622 10/15/18 UB Refund Cst #0000240777 25.69 25.69
Page 8 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
250.00
133,518.61
130,503.84
4,374.36
17,519.26
2051173 10/03/18 17714 SALMERON, EILEEN 082418092118 09/21/18 EXPENSE REIMBURSEMENT (8/24/18-9/21/18)151.85 151.85
2051257 10/17/18 02586 SAN DIEGO COUNTY ASSESSOR 201800651 08/02/18 ASSESSOR DATA (JULY 2018)125.00
201800806 10/01/18 ASSESSOR DATA (SEPT2018)125.00
2051215 10/10/18 00003 SAN DIEGO COUNTY WATER AUTH 0000001714 09/19/18 WATERSMART PROGRAM INCENTIVES 100.00 100.00
2051298 10/24/18 00003 SAN DIEGO COUNTY WATER AUTH 0000001725 10/04/18 WATERSMART PROGRAM INCENTIVES 168.73 168.73
2051137 09/26/18 00121 SAN DIEGO GAS & ELECTRIC 091818 09/18/18 UTILITY EXPENSES (MONTHLY)48,467.85 48,467.85
2051174 10/03/18 00121 SAN DIEGO GAS & ELECTRIC 092618B 09/26/18 UTILITY EXPENSES (MONTHLY)74,825.51
092518A 10/01/18 UTILITY EXPENSES (MONTHLY)25,453.06
092618 09/26/18 UTILITY EXPENSES (MONTHLY)18,266.30
092518 09/25/18 UTILITY EXPENSES (MONTHLY)11,429.58
092618C 09/26/18 UTILITY EXPENSES (MONTHLY)2,108.53
092418 09/24/18 UTILITY EXPENSES (MONTHLY)815.71
092618A 09/26/18 UTILITY EXPENSES (MONTHLY)619.92
2051216 10/10/18 00121 SAN DIEGO GAS & ELECTRIC 100218 10/02/18 UTILITY EXPENSES (MONTHLY)107,732.77
092818 09/28/18 UTILITY EXPENSES (MONTHLY)22,771.07
2051299 10/24/18 00121 SAN DIEGO GAS & ELECTRIC 100518 10/05/18 UTILITY EXPENSES (MONTHLY)4,338.00
101718 10/17/18 UTILITY EXPENSES (MONTHLY)36.36
2051217 10/10/18 00871 SAN DIEGO GAS & ELECTRIC 302035 10/04/18 927/680 PRS ELECTRICAL SERVICE 2,208.00 2,208.00
2051175 10/03/18 19104 SARAH KRAMER Ref002521260 10/01/18 UB Refund Cst #0000224509 102.79 102.79
2051300 10/24/18 07442 SCHULTZ, ALEXANDER 101018101218 10/12/18 EXPENSE REIMBURSEMENT (10/10/18-10/12/18)361.76 361.76
2051138 09/26/18 18396 SIMPSON SANDBLASTING & SPECIAL 808312018 09/04/18 RES COATING & UPGRADES (ENDING 8/31/18)66,719.21 66,719.21
2051258 10/17/18 16229 SMITH, TIMOTHY 090118093018 09/30/18 MILEAGE REIMBURSEMENT (9/1/18-9/30/18)41.97 41.97
2051139 09/26/18 15176 SOUTHCOAST HEATING & AIR 1069964 08/28/18 AC SYSTEM 9,851.00 9,851.00
2051259 10/17/18 03516 SPECIAL DISTRICT RISK 65486 10/01/18 PROP & LIAB PROG/PRORATED 8,080.31 8,080.31
2051218 10/10/18 05755 STATE WATER RESOURCES 940010082018 10/08/18 CERTIFICATION REWEWAL 150.00 150.00
2051176 10/03/18 19107 SUNDT CONSTRUCTION INC Ref002521263 10/01/18 UB Refund Cst #0000238953 1,667.70 1,667.70
2051260 10/17/18 19119 SUPERHIGHWAY COMMUNICATIONS 151 08/23/18 FIBER OPTIC INSTALLATION 2,286.50 2,286.50
2051219 10/10/18 10339 SUPREME OIL COMPANY 456602 09/20/18 UNLEADED FUEL 11,882.02
456603 09/20/18 DIESEL FUEL 5,637.24
2051301 10/24/18 18376 SVPR COMMUNICATIONS 1234 09/30/18 COMMUNICATION CONSULTANT 2,500.00 2,500.00
Page 9 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
18,983.00
2051140 09/26/18 18376 SVPR COMMUNICATIONS 1228 08/31/18 COMMUNICATION CONSULTANT 2,500.00 2,500.00
2051220 10/10/18 17704 T&T JANITORIAL INC 2018-4906 08/31/18 JANITORIAL SERVICES (SEPT 2018)4,780.00 4,780.00
2051141 09/26/18 01834 TC CONSTRUCTION CO INC 1008312018 09/05/18 HILLSDALE RD PROJECTS (ENDING 8/31/18)258,160.69 258,160.69
2051261 10/17/18 03236 THE CENTRE FOR ORGANIZATION TCFOE2480 09/20/18 MANAGEMENT TRAINING (2018)4,498.00 4,498.00
2051177 10/03/18 19117 THE DANIELS CO Ref002521273 10/01/18 UB Refund Cst #0000249053 18.14 18.14
2051262 10/17/18 14177 THOMPSON, MITCHELL 090118093018 09/30/18 MILEAGE REIMBURSEMENT (9/1/18-9/30/18)103.55 103.55
2051302 10/24/18 18561 TOYOTA SAN DIEGO 1 10/19/18 FY19 CP ITEMS 8, 10 & 11 COMPACT PICKUPS 74,538.60 74,538.60
2051142 09/26/18 00427 UNDERGROUND SERVICE ALERT 820180496 09/01/18 UNDERGROUND ALERTS (MONTHLY)1,112.20 1,112.20
2051303 10/24/18 00427 UNDERGROUND SERVICE ALERT 920180489 10/01/18 UNDERGROUND ALERTS (MONTHLY)1,095.70 1,095.70
2051304 10/24/18 15675 UNITED SITE SERVICES INC 1147413120 09/26/18 PORT. TOILET RENTAL 378.84 378.84
2051263 10/17/18 06829 US SECURITY ASSOCIATES INC 2335001 09/27/18 PATROLLING SERVICES (SEPT 2018)110.00 110.00
2051305 10/24/18 08028 VALLEY CONSTRUCTION MANAGEMENT SD177616 10/04/18 MGMT/INSP (9/1/18-9/30/18)14,725.00
SD22402 10/04/18 MGMT/INSP (7/1/18-9/30/18)4,258.00
2051143 09/26/18 08028 VALLEY CONSTRUCTION MANAGEMENT SD177615 09/04/18 MGMT/INSP (8/1/18-8/31/18)15,016.00 15,016.00
2051264 10/17/18 01095 VANTAGEPOINT TRANSFER AGENTS Ben2525659 10/18/18 BI-WEEKLY DEFERRED COMP PLAN 14,557.55 14,557.55
2051178 10/03/18 01095 VANTAGEPOINT TRANSFER AGENTS Ben2521304 10/04/18 BI-WEEKLY DEFERRED COMP PLAN 14,436.48 14,436.48
2051179 10/03/18 06414 VANTAGEPOINT TRANSFER AGENTS Ben2521302 10/04/18 BI-WEEKLY 401A PLAN 879.27 879.27
2051265 10/17/18 06414 VANTAGEPOINT TRANSFER AGENTS Ben2525657 10/18/18 BI-WEEKLY 401A PLAN 629.27 629.27
2051306 10/24/18 10340 WAGEWORKS INC inv950384 09/25/18 FLEXIBLE SPENDING ACCT (SEPT 2018)417.50 417.50
2051180 10/03/18 19105 WALTERS HOME MANAGEMENT Ref002521261 10/01/18 UB Refund Cst #0000229694 75.00 75.00
2051181 10/03/18 19097 WARREN MANFREDI Ref002521253 10/01/18 UB Refund Cst #0000143243 97.12 97.12
2051307 10/24/18 15807 WATCHLIGHT CORPORATION 593173 09/07/18 ENG CUBICLE NETWORK & POWER 5,685.30 5,685.30
2051221 10/10/18 15807 WATCHLIGHT CORPORATION 591779 09/15/18 SECURITY ALARM MONITORING 2,645.92 2,645.92
2051222 10/10/18 14879 WATER CONSERVATION GARDEN 1209 09/11/18 GARDEN FUNDING CONTRIBUTION 24,000.00 24,000.00
2051182 10/03/18 03781 WATTON, MARK 080118092718 08/01/18 EXPENSE REIMBURSEMENT (8/1/18-9/27/18)189.88 189.88
2051183 10/03/18 01343 WE GOT YA PEST CONTROL INC 14874 07/06/18 BEE REMOVAL 125.00 125.00
2051308 10/24/18 01343 WE GOT YA PEST CONTROL INC 16833 09/25/18 BEE REMOVAL 125.00
Page 10 of 11
Check Total
CHECK REGISTER
Otay Water District
Date Range: 9/20/2018 - 10/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
250.001683509/25/18 BEE REMOVAL 125.00
2051223 10/10/18 18173 WESTERN ALLIANCE BANK 1408312018 09/19/18 RET/WEIR CONST A#2222 (8/1/18-8/31/18)12,495.53 12,495.53
2051224 10/10/18 18101 WIER CONSTRUCTION CORP 1408312018 09/19/18 SEWER REPLACEMENT (8/1/18-8/31/18)237,414.97 237,414.97
2051266 10/17/18 08023 WORKTERRA 0090037IN 08/31/18 EMPLOYEE BENEFITS (AUG 2018)787.50 787.50
2051144 09/26/18 08023 WORKTERRA 0089724INADJ 07/31/18 EMPLOYEE BENEFITS (AUG 2018)149.00 149.00
2051309 10/24/18 08023 WORKTERRA 0090298IN 09/30/18 EMPLOYEE BENEFITS (SEPT 2018)787.50 787.50
2051226 10/10/18 14857 XYLEM/YSI INCORPORATED 750533 09/20/18 INFLUENT OPTICAL TOC METER 23,446.41 23,446.41
2051225 10/10/18 14857 XYLEM/YSI INCORPORATED 750533 09/20/18 INFLUENT OPTICAL TOC METER 23,446.41 23,446.41
2051267 10/17/18 19152 YOUNGEVITY Ref002525626 10/15/18 UB Refund Cst #0000249445 1,505.18 1,505.18
Amount Pd Total:2,922,065.91
Check Grand Total:2,922,065.91
Page 11 of 11