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03-01-17 Board Packet
1 OTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY March 1, 2017 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA ACTION ITEM 4. ADOPT RESOLUTION NO. 4329, A RESOLUTION OF THE BOARD OF DIREC- TORS OF THE OTAY WATER DISTRICT CONDEMNING DISCRIMINATION (Introduced by President Robak and Director Thompson) 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 CONSENT CALENDAR 6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) AWARD A CONSTRUCTION CONTRACT TO INSITUFORM TECHNOL- OGIES, LLC FOR THE TRENCHLESS SEWER REHABILITATION PRO- JECT IN AN AMOUNT NOT-TO-EXCEED $373,954.00 b) ADOPT RESOLUTION NO. 4328 FIXING TERMS AND CONDITIONS FOR THE ANNEXATION OF CERTAIN REAL PROPERTIES OWNED BY OTAY VALLEY QUARRY, LLC (APN 644-060-24-00) TO OTAY WATER DISTRICT WATER IMPROVEMENT DISTRICTS 22 AND 27 2 c) ADOPT ORDINANCE NO. 561 AMENDING CHAPTER 6, SECTION 9.03, ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO; SECTION 9.06, OTHER CONDITIONS OF ANNEXA- TION; AND ADDING SECTION 9.07, ANNEXATION OF TRIBAL LANDS; TO THE DISTRICT’S CODE OF ORDINANCES d) AUTHORIZE AN AGREEMENT WITH CONCORD UTILITY SERVICES, INC. FOR MASTER METER REGISTER AND METER CHANGE OUTS IN FISCAL YEAR 2017 AND INCREASE THE BUDGET FOR THE AUTO- MATED METER READING CHANGE OUT CAPITAL IMPROVEMENT PROGRAM PROJECT BY $200,000 FOR THE LABOR ASSOCIATED WITH THE CHANGE OUT PROCESS ACTION ITEMS 7. ADMINISTRATION AND FINANCE a) ADOPT ORDINANCE NO. 562 AMENDING APPENDIX A WITH PRO- POSED CHANGES TO VARIOUS FEES AND CHARGES; AND SEC- TION 34, ISSUANCE AND PAYMENT OF WATER BILLS; OF THE DIS- TRICT’S CODE OF ORDINANCES (CAREY) 8. BOARD a) DISCUSSION OF THE 2017 BOARD MEETING CALENDAR INFORMATIONAL ITEM 9. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA- TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) OTAY WATER DISTRICT 2017 LEGISLATIVE PROGRAM PRIORITIES (OTERO) b) SECOND QUARTER OF FISCAL YEAR 2017 CAPITAL IMPROVEMENT PROGRAM UPDATE REPORT (MARTIN) c) FISCAL YEAR (FY) 2017 MID-YEAR REPORT FOR THE DISTRICT’S FY2015-2018 STRATEGIC PLAN (SEGURA) REPORTS 10. GENERAL MANAGER’S REPORT a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE 11. DIRECTORS' REPORTS/REQUESTS 3 12. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 13. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERNMENT CODE §54956.9] BLALOCK vs. OTAY WATER DISTRICT; CASE NO. 37-2016-00013542- CU-OR-CTL b) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERNMENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, SAN DIEGO COUNTY WATER AUTHORITY, ET AL.; CASE NO. 37-2015-00023413 RETURN TO OPEN SESSION 14. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 15. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability which would require accommodation in order to enable you to participate 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 February 24, 2017, I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time be- ing at least 72 hours in advance of the regular meeting of the Board of Directors (Gov- ernment Code Section §54954.2). Executed at Spring Valley, California on February 24, 2017. /s/ Susan Cruz, District Secretary RESOLUTION NO. 4329 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT CONDEMNING DISCRIMINATION WHEREAS, the Otay Water District (“District”) recognizes that it serves constituents of diverse backgrounds; and WHEREAS, acceptance of diversity in terms of race, ethnicity, religion, culture, gender, sexual orientation, and disability is critical to responsible leadership and citizenship; and WHEREAS, the District cherishes the freedom of speech as a fundamental right but recognizes that this freedom is not absolute, and is subject to both legal restrictions and standards of civility; and WHEREAS, the District disapproves of and will not tolerate discrimination, bias, or prejudice on the basis of race, color, religion, ethnicity, national origin, place of birth, ancestry, native language or accent, citizenship, gender, sex, gender identity, sexual orientation, age, familial status, physical or mental disability, or other legally protected status recognized by federal, state or local laws; and WHEREAS, the District is committed to fostering an environment that promotes respect for all religions and cultures, affirms the equality of its constituents, and rejects all forms of discrimination. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District that the District’s employees, members of the Board of Directors, unpaid interns, volunteers, job applicants or persons providing services pursuant to a contract with the District will refrain from making public oral or written statements or comments in their capacities as District representatives, which discriminate against persons based on the categories listed above and which may appear to be an official comment on behalf of the District; and FINALLY BE IT FURTHER RESOLVED that the District reaffirms its commitment to promote respect for and appreciation of the diversity among its constituents. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting, held this 1st day of March, 2017. Ayes: Notes: Abstain: Absent: ________________________________ Board President Attest: _______________________ District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: S2044-001103 DIV. NO.: 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Award of a Construction Contract to Insituform Technologies, LLC for the Trenchless Sewer Rehabilitation Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a construction contract to Insituform Technologies, LLC (Insituform) and to authorize the General Manager to execute an agreement with Insituform for the Trenchless Sewer Rehabilitation Project in an amount not-to-exceed $373,954.00 (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 construction contract with Insituform in an amount not-to-exceed $373,954.00 for the Trenchless Sewer Rehabilitation Project (Project). ANALYSIS: The District provides sanitary sewer collection service in the Jamacha drainage basin located in the northern area of the District. 2 Deficiencies throughout the sewer service area have been observed and documented by closed-circuit television inspection and condition assessment. This phase of sewer improvements consists of sewer system repairs at 60 locations throughout the sewer collection system, but primarily within the Calavo and Rancho San Diego Basins (see Exhibit A for Project location). This Project is one of several that will address the noted deficiencies to maintain the sewer collection system. The sewer improvements involve the trenchless repair of approximately 3,600 linear feet of 8-inch gravity sewer with cured-in-place-pipe (CIPP) lining, 17 spot CIPP repairs totaling about 150 linear feet, re-establishment of 67 sewer laterals, installation of about 86 lateral liners (Brim and T-Style), appurtenances, traffic control, and all testing and inspection as required by the Contract Documents. Staff prepared the contract documents in-house together with assistance from the District’s As-Needed Engineering Consultant. The Project was advertised for bid on December 14, 2016 using BidSync, an online bid solicitation website. The Project was also advertised in the Daily Transcript. BidSync provided electronic distribution of the Bid Documents, including specifications, plans, and addendums. Due to the nature of the project, a Pre-Bid Meeting was not held. One (1) addendum was issued to distribute the County of San Diego Permit. Bids were publicly opened on January 24, 2017, with the following results: CONTRACTOR TOTAL BID AMOUNT 1 Southwest Pipeline & Trenchless Corp. Torrance, CA $415,394.00 2 Insituform Technologies, LLC Chesterfield, MO $373,954.00 3 NU-Line Technologies, LLC Encinitas, CA $374,864.00 4 SANCON Technologies Huntington Beach, CA $374,442.50 The Engineer’s Estimate is $450,000. A review of the bids was performed by District staff for conformance with the contract requirements and determined that Insituform was the lowest responsive and responsible bidder. Insituform 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 July 31, 2018. 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 3 no outstanding issues with this company. Insituform has not previously worked for the District. Staff verified that the bid bond provided by Insituform is valid. Staff will also verify that Insituform’s Performance Bond and Labor and Materials Bond are valid prior to execution of the contract. Subsequent to the bid opening, SANCON Technologies (the second lowest bidder) provided a request to the District for the complete bid package from Insituform (the apparent low bidder). District staff provided the requested information to SANCON Technologies to ensure a transparent bidding process. Staff followed up with SANCON Technologies who confirmed receipt of the requested information and also confirmed that they found no issues with Insituform’s bid package. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP S2044, as approved in the FY 2017 budget, is $650,000. Total expenditures, plus outstanding commitments and forecast including this contract, are $491,916.27. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget for CIP S2044 is sufficient to support the Project. 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 high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM:jf P:\WORKING\CIP S2044 Trenchless Sewer Rehabilitation\Staff Reports\BD 03-01-17 Staff Report Trenchless Sewer Rehab Award Construction Project.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: S2044-001103 Award of a Construction Contract to Insituform Technologies, LLC for the Trenchless Sewer Rehabilitation Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on February 14, 2017, and the following comments were made: Staff recommended that the Board award a construction contract to Insituform Technologies, LLC (Insituform) and to authorize the General Manager to execute an agreement with Insituform for the Trenchless Sewer Rehabilitation Project in an amount not-to- exceed $373,954.00. Staff reviewed the staff report with the Committee and discussed the project’s background/analysis and results of the soliciting and selection process. It was indicated that Insituform submitted the lowest bid and that staff reviewed the company’s bid for conformance and checked references which showed a good overall performance record. Staff noted that subsequent to the bid opening, SANCON Technologies (SANCON) (the second lowest bidder) provided a request to the District for the complete bid package from Insituform (the apparent low bidder). District staff provided the requested information to SANCON to ensure a transparent bidding process. Staff followed up with SANCON who confirmed receipt of the requested information and also confirmed that they found no issues with Insitutform’s bid package. With regard to Attachment B (Budget Detail) of the staff report, the Committee commented that the expenditure for “Standard Salaries” amounted to $49,440.00 and was more than the consultants’ expenditure of $23,421.90. The Committee inquired if more staff time was committed to this project instead of consultants. Staff stated that the District had some staff augmentation who would come in and help District staff develop a set of plans for the project. The Committee commented that there was value in having District staff learn trenchless sewer rehabilitation work experience from the temporary staff augmentation. In response to several questions from the Committee, staff indicated that the pipelines were established in the 70s and 80s and are made out of acrylonitrile butadiene styrene (ABS) and polyvinyl chloride (PVC). Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a consent item. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: S2044-001103 Award of a Construction Contract to Insituform Technologies, LLC for the Trenchless Sewer Rehabilitation Project Bud Expenditures through February 3, 2017. Phase Description Committed Expenditures Outstanding Commitment Projected Final Cost Vendor/Comments Planning Regulatory Agency Fees $50.00 $50.00 $0.00 $50.00 PETTY CASH CUSTODIAN Total Planning $50.00 $50.00 $0.00 $50.00 Consultant Contracts $23,421.90 $23,421.90 $0.00 $23,421.90 RICK ENGINEERING COMPANY Service Contracts $50.37 $50.37 $0.00 $50.37 SAN DIEGO DAILY TRANSCRIPT Standard Salaries $49,440.00 $49,440.00 $0.00 $49,440.00 Total Design $72,912.27 $72,912.27 $0.00 $72,912.27 Consultant Contracts $15,000.00 $0.00 $15,000.00 $15,000.00 CONSTRUCTION MANAGEMENT Construction Contracts $373,954.00 $0.00 $373,954.00 $373,954.00 INSITUFORM TECHNOLOGIES Standard Salaries $30,000.00 $0.00 $30,000.00 $30,000.00 Total Construction $418,954.00 $0.00 $418,954.00 $418,954.00 Project Budget $650,000.00 Grand Total $491,916.27 $72,962.27 $418,954.00 $491,916.27 Construction Otay Water District S2044 - Trenchless Sewer Rehabilitation Design OTAY WATER DISTRICTTRENCHLESS SEWER REHABILITATIONLOCATION MAP CIP S2044F P:\WORKING\CIP S2044 Trenchless Sewer Rehabilitation\Graphics\Exhibits-Figures\Exhibit A, Location Map.mxd CHASE AV FUERTE DR AVOCADO BLVD FURY LN WASHINGTON AV JAMACHA RD HILLSDALE RD WILLOW GLEN DR SR-94 JA M A C H A B L V D J A M A C H A R D STEELE C A N Y O N WIEGHORST VICINITY MAP PROJECT SITE NTS DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 %&s ?ò Aä ?p ?Ë F 0 10.5 Miles Legend Trenchless Sewer Rehabilitation Site (60) Existing OWD Sewer Main EXHIBIT A STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Dan Martin Engineering Manager PROJECT NO: FILE NO: D0978-090284 ENG70-10-148 DIV. NO. 1 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Resolution No. 4328 Approving the Annexation Request of Property Owned by Otay Valley Quarry, LLC (APN 644-060-24-00) to Otay Water District Water Improvement Districts 22 and 27 GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4328 fixing terms and conditions for the annexation of certain real properties owned by Otay Valley Quarry, LLC (APN 644-060-24-00) to Otay Water District Water Improvement Districts 22 and 27 (see Exhibit A for Location Map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The proposed annexation is to provide water service to the parcels owned by Otay Valley Quarry, LLC (APN 644-060-24-00) which are located in Chula Vista, California. ANALYSIS: A written annexation request on behalf of the property owners signed by Kathleen Riser, Senior Land Use Consultant for Atlantis Group, has been received for the annexation of APN 644- 060-24-00 into Improvement District No. 22 and 27 for water 2 service. A petition signed by the respective property owners has also been received. The property proposed to be annexed is located in the City of Chula Vista and is bordered by Village 3 to the west, and Village 8 West to the east, as shown on Exhibit A. The property will also contain the future extension of Main Street. The total acreage to be annexed is 166.02 acres. The property is within the jurisdictional boundary of the Otay Water District and following the Board’s approval, it will become part of Water ID No. 22/27. The parcels are fronted by existing Otay Water District potable and recycled water mains. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner will pay the District’s annexation processing fee of $776.20, any additional meter costs and annexation fees as established in the attached Resolution, and continue to pay annual availability fees. No water annexation fees shall be charged in accordance with Section 9.04B of the District’s Code of Ordinances since the proposed annexation parcels are already located within the District’s boundaries and are applying for annexation into a water ID. STRATEGIC GOAL: Provide enhanced water service to meet customer needs. LEGAL IMPACT: No legal impact. DM:jf P:\Public-s\Annexation Requests\2017\Village 4\BD 03-01-2017 - Staff Report Water Annexation ID 22_27- Otay Valley Quarry.doc Atttachments: Attachment A - Committee Action Attachment B - Resolution No. 4328 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit A -- Location Map ATTACHMENT A SUBJECT/PROJECT: D0978-090284 ENG70-10-148 Adopt Resolution No. 4328 Approving the Annexation Request of Property Owned by Otay Valley Quarry, LLC (APN 644-060- 24-00) to Otay Water District Water Improvement Districts 22 and 27 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on February 14, 2017, and the following comments were made: Staff recommended that the Board adopt Resolution No. 4328 fixing terms and conditions for the annexation of certain real properties owned by Otay Valley Quarry, LLC (APN 644- 060-24-00) to Otay Water District Water Improvement Districts 22 and 27. Staff reviewed the staff report with the Committee and indicated that APN 644-060-24-00 will be served with both potable and recycled water from the District. It was noted that the development planning documents for this parcel, known as Otay Ranch Village 4 South, indicates that the developer will be constructing approximately 277 multi-family units and 73 single-family units within the parcel. Staff indicated that this parcel is included in the District’s planning documents. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a consent item. Page 1 of 3. RESOLUTION NO. 4328 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NOS. 22/27 OF THOSE LANDS DESCRIBED AS "OTAY VALLEY QUARRY, LLC WATER ANNEXATION REQUEST INTO IMPROVEMENT DISTRICTS (IDs) 22 AND 27” (APN 644-060-24-00) (FILE NO. ENG70-10- 148/DIVISION 1) WHEREAS, a letter has been submitted by ATLANTIS GROUP, C/O KATHLEEN RISER, on behalf of the owners and parties that have an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Improvement District Nos. 22/27 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of IDs 22/27 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make water service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to IDs 22/27 will be benefited by such annexation and that the property currently within IDs 22/27 will also be Page 2 of 3. benefited and not injured by such annexation because after the annexation a larger tax base will be available to finance the water facilities and improvements of IDs 22/27. 4. The Board of Directors hereby declares that the annexa- tion of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee at the time of application; (2) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $10 or $30 for APNs 644-060-24- 00; (3) In the event that water service is to be provided, Petitioners shall pay all applicable water meter fees per Equipment Dwelling Unit (EDU) at the time the meter is purchased; and (4) Payment by the owner of APN 644-060-24-00 of all other applicable local or state agency fees or charges. (b) The property to be annexed shall be subject to taxation after annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, authorized and outstanding at the time of Page 3 of 3. annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares the property described in Exhibit "A" shall be considered annexed to IDs 22/27 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APN 644-060-24-00 to the District’s Improvement Districts 22/27 is hereby designated as the “OTAY VALLEY QUARRY, LLC WATER ANNEXATION”. 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the OTAY VALLEY QUARRY, LLC WATER ANNEXATION shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ordered to take all actions required to complete this annexation. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 1st day of March, 2017. President ATTEST: __________________________________ District Secretary EXHIBIT "A" ANNEXATION TO OTAY IMPROVEMENT DISTRICT NO. 22-27 GEOGRAPHIC DESCRIPTION ALL THAT CERTAIN REAL PROPERTY, BEING PORTIONS OF LOTS 33, 34, 37, AND 38 OF MAP NO. 862, SITUATED IN THE OTAY RANCHO, CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE EASTERLY LINE OF LOT 33 LYING 725.29 FEET SOUTHERLY OF THE NORTHEAST CORNER OF LOT 33, ALSO BEING AN ANGLE POINT IN THE EXISTING OTAY WATER DISTRICT BOUNDARY; THENCE ALONG THE EXISTING DISTRICT BOUNDARY, (1) SOUTH 18°39'05" EAST, 2206.19 FEET; THENCE LEAVING THE EXISTING DISTRICT BOUNDARY, (2) SOUTH 71°21'07" WEST, 1078.51 FEET; THENCE, (3) SOUTH 51°00'01" WEST, 349.50 FEET TO THE BEGINNING OF A 120.00 FOOT RADIUS NON- TANGENT CURVE CONCAVE WESTERLY, A RADIAL LINE TO SAID POINT BEARS NORTH 84°24'29" EAST; THENCE, (4) SOUTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 33°01'58" A DISTANCE OF 69.18 FEET TO THE BEGINNING OF A 199.99 FOOT RADIUS NON-TANGENT CURVE CONCAVE NORTHEASTERLY, A RADIAL LINE TO SAID POINT BEARS SOUTH 73°46'40" WEST; THENCE, (5) SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 45°03'54" A DISTANCE OF 157.30 FEET; THENCE, (6) SOUTH 54°40'53" WEST, 59.00 FEET; THENCE, (7) NORTH 55°59'06" WEST, 21.03 FEET; THENCE, (8) SOUTH 86°38'09" WEST, 142.43 FEET; THENCE, (9) SOUTH 27°31'30" WEST, 50.60 FEET; THENCE, (10) SOUTH 53°22'41" WEST, 26.15 FEET; THENCE, (11) SOUTH 35°16'09" WEST, 38.21 FEET; THENCE, (12) SOUTH 16°58'05" EAST, 33.18 FEET; THENCE, (13) SOUTH 03°27'39" WEST, 73.52 FEET; THENCE, (14) SOUTH 20°25'48" EAST, 76.27 FEET; THENCE, (15) SOUTH 21°10'21" WEST, 198.01 FEET; THENCE, (16) SOUTH 08°10'14" EAST, 28.66 FEET; THENCE, (17) SOUTH 54°07'07" WEST, 42.24 FEET; THENCE, (18) SOUTH 35°49'55" WEST, 91.95 FEET; (CONTINUED) EXHIBIT "A" ANNEXATION TO OTAY IMPROVEMENT DISTRICT NO. 22-27 GEOGRAPHIC DESCRIPTION THENCE, (19) SOUTH 39°58'42" WEST, 241.93 FEET; THENCE, (20) SOUTH 00°07'01" WEST, 75.81 FEET; THENCE, (21) SOUTH 83°28'46" WEST, 235.85 FEET; THENCE, (22) NORTH 77°00'40" WEST, 140.44 FEET; THENCE, (23) NORTH 87°57'11" WEST, 196.61 FEET; THENCE, (24) NORTH 77°44'26" WEST, 82.59 FEET; THENCE, (25) NORTH 72°19'28" WEST, 244.20 FEET; THENCE, (26) SOUTH 88°37'51" WEST, 93.41 FEET; THENCE, (27) SOUTH 13°53'07" WEST, 151.85 FEET; THENCE, (28) SOUTH 29°37'19" WEST, 64.90 FEET; THENCE, (29) NORTH 86°34'23" WEST, 440.40 FEET; THENCE, (30) SOUTH 05°48'30" EAST, 45.70 FEET; THENCE, (31) SOUTH 38°40'12" WEST, 102.13 FEET; THENCE, (32) SOUTH 19°17'52" WEST, 26.00 FEET; THENCE, (33) SOUTH 04°28'58" EAST, 62.76 FEET; THENCE, (34) SOUTH 12°06'04" WEST, 35.13 FEET; THENCE, (35) SOUTH 02°00'26" EAST, 69.97 FEET; THENCE, (36) SOUTH 09°28'05" WEST, 44.77 FEET; THENCE, (37) SOUTH 38°33'27" WEST, 48.00 FEET; THENCE, (38) SOUTH 17°45'07" WEST, 32.20 FEET; THENCE, (39) SOUTH 60°43'05" WEST, 57.68 FEET; THENCE, (40) NORTH 68°27'40" WEST, 50.13 FEET; THENCE, (41) SOUTH 58°08'37" WEST, 53.46 FEET; THENCE, (42) SOUTH 43°50'28" WEST, 42.52 FEET; THENCE, (43) SOUTH 12°13'53" WEST, 75.32 FEET; THENCE, (44) SOUTH 06°28'54" EAST, 54.33 FEET; THENCE, (45) SOUTH 05°15'08" WEST, 65.79 FEET; (CONTINUED) OTAY WATER DISTRICTOTAY RANCH VILLAGE 4 WATER ANNEXATION REQUESTINTO IMPROVEMENT DISTRICTS 22 AND 27 EXHIBIT A F Y:\Public Services New\DevSMP_WSA_ANX\D0978-090284 Otay Ranch Village 4 South (SAMP)\Otay Ranch Village 4 Annexation 2-2-17.mxd WILEYRD M A GDALENA AVENUE STO W G RO V E AV. STATE STREET SHIRCLIFFE ST R E ET C AN O N P ER DID O S T.JONES STREET WILEYRD SPRINGS CT R E ICHERTWAY HAYFORD PL R O CK M OUNT AIN R O AD BARNOUR A VEN U E SANTA CAR OLIN A R O AD HE RITAG E ROA D ANAPAMU LEWLN S A NT A DIA NA R O A D MAGDALENA AVENUE MASON RD. WO LF CANYON LP MAG D A LENA A V E N U E M AY AVENU E LA MEDIA RD LOS OLIVOS ST. PARK W AY HERITAGE ROAD AVE N UE RANCHERO SANTA VICTORIA ROAD.MTTAMALPAISAVE HILLSBOROUGH CIRCLE HIMMERCT ZAMORA WAR M S P RIN G S R D JACKSON ST FLEISHBEIN STREET Y AN O NA LI A V. GOLDEN GATE AVE MT McCLURE PEMBER AVENUE P E A BO DY WAY CA RPINT ERIA ST RE ET. PAINTED C AV E AV. STREET SANTA VICTORIA ROAD.W E B B E R WAY BAUM ST FR A NC E SC HI DRIVE. TENAYA L A K E R D OCONNOR AVENUE M A GDA L ENA A VEN UE DR B OB PL E TCH ER W A Y S AN TA VIC TO RIA R OA D. BIRCH R O A D OLYM PIC S E MPLES T WALTO NST SPARR OW LAKE RD PE R SHING R OA D.PAINTED C AV E AV. ORINDA CT SANTA LUNASTREET WILEYRD T H O M PSO N A VENUE PERRIN PL S AN TA IVY A VE N UE. ORTEGASTREET BREZAR STREET LA MEDIA RD C AT HE D RA L OA KS ROA D. KUGELCT CT HILLSBOROUGH CIR. B AT H AV EN UE. CASTAIC PL PERSHING RD. WOLF CANYON LP SA NTA C H RISTINA AV EN U E S AN TA AL EXIA AVE N UE. PERRIN PL VALLEY H OY T ST JACKSON STREET PEARSON BIRCH ROAD P YR A MID PE AK S T. WEBBER WAY IRWIN STREET ENCLAVE LN KINCAID AVENUE C AR PIN TE RIA S TR EE T. TUSCANSPRINGS AVE WOL F S D O R F WA Y D O NZ E AV. 91913 91911 F 0 1,100550 Feet PROJECT SITEPARCEL NO. 644-060-24-00 !\ VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 F MAINST M A G D A L E N A A V E VILLAGE 3 VILLAGE 8 W VILLAGE 2 HERITAGERD ROCK QUARRY L A M E D I A RD STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Jeanne Blumenfeld, Attorney PROJECT: Various DIV. NO. ALL APPROVED BY: Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 561 Amending Chapter 6, Section 9, Annexations and Detachments, of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: Adopt Ordinance No. 561 Amending Chapter 6, Section 9.03, Annexations to or Detachments from the District Through LAFCO; Section 9.06, Other Conditions of Annexation; and adding Section 9.07, Annexation of Tribal Lands; to the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To present for the Board’s consideration the adoption of proposed amendments to Chapter 6, Section 9.03, Annexations to or Detachments from the District through LAFCO; Section 9.06, Other Conditions of Annexation; and the addition of Section 9.07, Annexation of Tribal Lands; to the District’s Code of Ordinances to bring the District’s policies in line with the County standards, and ensure that the District acts in accordance with recent statutory changes on the annexation of tribal lands. ANALYSIS: Annexation is the process of expanding existing territorial corporate boundaries. Generally, it is a five-part process: (1) Pre- application, (2) Application filing and processing, (3) LAFCO review and consideration, (4) Protest proceedings, and (5) Final Certification. The District’s Ordinance is concerned with the first two steps of this process: pre-application and application filing and processing. 2 Once the first two steps have been completed, LAFCO considers the benefits and detriments of the proposed annexation. An annexation will not be complete until it has been certified by LAFCO’s executive officer. The proposed changes to the Ordinance are intended to clarify the procedures used for the annexation of territory utilizing the Local Agency Formation Commission (LAFCO). The San Diego Local Agency Formation Commission (LAFCO) was established by State Law in 1963. It is a regulatory agency with quasi-legislative authority. LAFCO’s responsibilities include coordinating, directing, and overseeing logical and timely changes to local governmental boundaries, including the annexation and detachment of territory. The existing Otay Annexation Ordinance, found in Chapter 6, Section 9 of the Otay Water District’s Code of Ordinances, was not updated to reflect the re-writing of pertinent Government Code sections in 2000, which updated the previous codes from 1985. The new policy updates the law and details two methods by which owners desiring to annex land to or to detach land from the District may proceed. They may: (1) File a petition directly with LAFCO for the annexation or detachment; or (2) Request that the District file a petition with LAFCO for the annexation or detachment. Any change through this process is subject to the requirements of Government Code sections 56000 et. seq. The newly added portions of the Ordinance set forth the requirements for a request by the owners and representatives of the annexing or detaching land for the District to file a petition with LAFCO for annexation or detachment. The Otay Water District’s Board of Directors will make a determination as to whether the request is in the best interests of the District. These interests, as set forth in the Ordinance, include the existing planned water use, the water needs of the area to be annexed, and Otay Water District’s future plans. The Otay Water District’s Board of Directors must consider any request for annexation at the first meeting taking place at least 60 days after receipt the request and all required information. This provides at least two months for the District to review and consider the request. If the District approves the request, it must promptly file an application with the San Diego LAFCO, and cooperate with LAFCO to ensure that the request is approved. The annexation is not complete until it has been certified by LAFCO’s executive officer. 3 Additonally, the California Water Code relating to the annexation of tribal lands was amended in September 2016. The amendment added Water Code section 71611.5, which provides that upon request of an Indian tribe, subject to the conditions within the statute, a water District shall provide water service to the tribal lands at substantially the same terms applicable to customers of the District, as if the tribal land had been annexed into the District. This amendment has been added to the District’s ordinance as Section 9.07, Annexation of Tribal Lands. The statute requires that before the District provides water service to a tribal territory, the Indian tribe must: (1) Comply with all federal and tribal laws; (2) Acquire all federal and tribal approvals necessary for the provision of water service to tribal lands on substantially the same terms as other customers; and (3) Accept by agreement all District terms of paymentas if the land was annexed into the District and into the service area of any other public agency required for the provision of water service. In addition, Water Code section 71611.5(b) and the Ordinance require that before the District provides water to an Indian Tribe’s lands an agreement with the Tribal government must be entered into to assure, among other things, payment for services and other charges from which the tribal lands would otherwise be exempt. The Ordinance also requires a waiver of sovereign immunity from the Tribe, so that the Tribe may be sued under either California law or Federal law, in either the Superior Court of California or the appropriate Federal Court. These requirements protect the District’s interests in the event of a a dispute between Otay Water District and the Tribal government (an otherwise immune entity) and they provide a remedy because there is an enforcement mechanism if payment for the water provided is not forthcoming. The fees to be paid to Otay by the area to be annexed remain unchanged. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: To provide high quality and reliable water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner and maximize efficiency in providing effective water services. 4 LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Ordinance No. 561 Attachment C – Proposed Chapter 6 ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 561 Amending Chapter 6, Section 9, Annexations and Detachments, of the District’s Code of Ordinances COMMITTEE ACTION: The Finance, Administration, and Communications Committee (FA&C Committee) reviewed this item at a meeting held on February 15, 2017 and the following comments were made: Staff is requesting that the board adopt Ordinance No. 561 amending Chapter 6, Section 9.03, Annexations to or Detachments from the District through LAFCO; Section 9.06 Other Condiditions of Annexation; and adding Section 9.07, Annexation of Tribal Lands; to the District’s Code of Ordinances. It was indicated by adopting the amendments to Chapter 6, Section 9, it would bring the District’s ordinance inline with County standards and also ensure that the District acts in accordance with recent statutory changes relating to the annexation of tribal lands. Staff reviewed the information in the staff report. In response to an inquiry from the Committee, staff indicated that the amendments to the District’s ordinance were motivated by the new laws for tribal land annexations. Further review of the ordinance indicated that it required further updating to reflect changes in the statute related to annexations and detachments from the District through LAFCO. These changes were also incorporated into the proposed amendments to the ordinance. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. ORDINANCE NO. 561 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 9, ANNEXATIONS AND DETACHMENTS, OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances, Section 9, Annexations and Detachments be amended as per Exhibit 1 (attached). NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 9 (Attachment C) of the Code of Ordinances shall become effective March 1, 2017. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 1st day of March, 2017, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary ATTACHMENT B 9 -1 CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 ANNEXATIONS AND DETACHMENTS 9.01 REQUIREMENT OF ANNEXATION FOR SERVICE Except as provided elsewhere in this Code, whenever utility service is requested for land outside the boundaries of an improvement district, the land to be serviced must first be annexed to an improvement district(s). If the land is located outside the boundaries of the District, the land must also be annexed to the District. 9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS DISTRICTS An owner or owners of land within the District desiring to annex to or detach land from an improvement district within the District must file a petition for such proceeding with the District. Annexation proceedings shall be con- ducted pursuant to Chapter I (commencing with Section 72670) of Part 11, Division 20 of the California Water Code. Detachment or exclusion proceedings shall be conducted pur- suant to Part 8.5 (commencing with Section 72080) of Divi- s ion 20 of the California Water Code. If the land proposed to be annexed is outside the boundaries of the territory served by the Metropolitan Water District of Southern California and the territory served by the San Diego County Water Authority, and no local sources of water are available to serve such land, the District will require that the land be annexed to those entities as well. 9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO An owner or owners desiring to annex land to or to detach land from the District may either (i) file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii) request the District to file the petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox Local Government Reorganization Act of 1985, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including EXHIBIT 1 9 -2 without limitation any conservation or local supply use requirements. 1. Application Process Options An owner or owners desiring to annex land to or to detach land from the District may either (i) file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii) request the District file a petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2. Board Approval Process for a request the District file the LAFCO petition a. The Board, or any standing committee of the Board reviewing an annexation request will consider the request at the next regular meeting taking place no earlier than 60 days after the receipt by the District of the request for the annexation and all accompanying required information. b. A request for annexation shall include: (1) A legal description and a detailed map of the area proposed to be annexed, clearly indicating the metes and bounds of the area and the gross and net acreage for the area with sufficient documentation to support the gross and net acreage specified; 9 -3 (2) A certificate from the assessor of the county within which the area proposed to be annexed is situated setting forth the assessed valuation of each parcel included within the area; (3) Identification of the ownership of each parcel included within the area proposed to be annexed; (4) For each parcel included in the area proposed to be annexed, a description of: The present use of each of the parcels Existing or proposed development plans An estimate of the total annual and peak demands for water service, including an estimate of the proportion of those demands to be supplied by Otay Water District Any infrastructure requirements for servicing the proposed annexation area A plan for implementing all current water use efficiency and restrictions All appropriate California Environmental Quality Act (CEQA), and if applicable, National Environmental Policy Act (NEPA) documents Payment of all applicable fees. c. The Water District shall consider its current and planned water supplies, the above-listed information, whether annexing the property would diminish the District’s ability to serve its current obligations. d. The Otay Water District will submit a petition to LAFCO for annexation or detachment following District approval of the request for annexation or detachment and upon payment of all applicable fees by the owners and representatives of the annexing or detaching land. 9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS A petitioner requesting an annexation to or detachment from the District or within the District shall pay the following applicable fees and charges: 9 -4 A. Administrative Processing Fees 1. District Processing Fee. A District processing fee (s ee Appendix A, Section 9 for fee) shall be paid to the District for each annexation or detachment proceeding, regardless of the number of parcels involved, provided all parcels are included in one proceeding. This fee shall constitute the "base rate" on March 3, 1997. The base rate shall be adjusted annually for fluctuations in the Consumer Price Index (Urban Wage Earners and Clerical Workers - Los Angeles) and subsequent cost-of-living adjustment (COLA). 2 . A dditional Processing Fees or Charges. The peti- tioner shall pay all processing fees and charges due LAFCO, the State Board of Equalization and any other applicable government agency. 3 . Concurrent Annexations to or Detachments from the District and an Existing Improvement District. No additional processing costs or fees will be charged to a petitioner for an annexation to or detachment from an existing improvement district when the proceeding is part of an annexation to or detachment from the District. 4 . Payment of Fees and Charges. The District processing f ees and charges shall be paid to the District at the time the petition for such proceeding is filed. Where a petition is filed with LAFCO, the District shall notify LAFCO that payment of all required fees and charges to the District shall be a condition for District approval of the annexation or detachment. B. Water Annexation Fees. The annexation fee (s ee Appendix A, Section 9) shall constitute the "base rate" on October 1, 2014). The base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 on June 1, 2014 shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. 1. No water annexation fee shall be required for existing and future agricultural water service furnished by the District under the COMMERCIAL AGRICULTURAL category of Section 25 of the Code. 9 -5 2. Non-permanent irrigation water service furnished by the District under Section 30 of the Code shall be available without payment of a water annexation fee. 3. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a water improvement district. 4. Water Meter Type Exclusions. Annexation fees shall be collected on all water meters sold except for temporary water meters, water tank truck meters, nonpermanent irrigation water meters and outside user meters, all as defined elsewhere in this Code. 5. Effective Date. Annexation fees shall be col- lected on all lands annexing into the Otay Water District boundaries on or after March 5, 1997. 6. Basis for Determination. For annexations of land into the Otay Water District boundaries, the petitioner shall pay an annexation fee. The fee shall be paid at the time of petition to be annexed. There shall be no water annexation fee charged for parcels already within District boundaries that are applying to be annexed into a water ID. For permanent water meters, except for commercial agricultural meters, the annexation fee shall be determined on the basis of the demand to be placed on the District-wide water system. The fee will be determined on the basis of the size of the water meter required, as set forth in Section 27 of the Code. The fee shall be determined by multiplying the demand factor for the meter size, as set forth in Section 28 of the Code, by the annexation fee per EDU. See Appendix A, Section 9 for fees. C. Sewer Annexation Fees 1. Improvement District Annexation. All annexation for sewer service shall be into Improvement District No. 18 on or after December 16, 1998. 2. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a sewer improvement district. 3. Effective Date. Annexation fees shall be collected on all lands annexing to a sewer improvement district on or after December 16, 1998. 9 -6 4. Basis for Determination. For annexations of land to a sewer improvement district within the Dis- trict, the petitioner shall pay an annexation fee. The fee shall be determined on the basis of the demand to be placed on the District sewer system. The fee shall be paid at the time of sewer service connection request or General Manager's approval of plans, whichever occurs earlier. The extent of the demand will be determined on the basis of each equivalent dwelling unit (EDU) of service which is to be connected to the District sewer system. The number of EDUs prescribed in Section 53 of the Code shall be the basis for computation of the amount of the annexation fee. The fee will be determined by multiplying the number of EDUs by the annexation fee per EDU. S ee Appendix A, Section 9 for fees. This annexation fee shall constitute the "base rate" on October 1, 2014. The base rate shall be adjusted quarterly for fluctuations in construction costs as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 (as of June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. D. Detachment Fees For each detachment of land from an improvement district, the petitioner shall pay such fees as the General Manager determines are appropriate for the detachment. Determinations shall be made by the General Manager on a case-by-case basis. 9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT DISTRICT Where property is annexed by a petitioner, other than a tax-exempt agency, the property in the annexed area shall be subject to taxation after the annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district authorized and outstanding at the time of the annexation. The Board of Directors shall provide as a condition of the annexation that the annexed area shall be subject to taxation as if the property had always been a part of the improvement district. 9.06 OTHER CONDITIONS OF ANNEXATION 9 -7 1. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2. Proposals which create an unannexed area entirely surrounded by an annexed area shall not be approved unless the Board determines that the Water District’s interests will not be adversely affected by the existence of the encompassed area. 3. An annexed area shall be subject to all applicable water use efficiency guidelines. 9.07 ANNEXATION OF TRIBAL LANDS Annexation of Tribal Lands may be approved where an agreement with the Tribal government to assure implementation and annexation conditions and requirements has been signed, in accordance with Water Code section 71611.5(b). The agreement shall include, among other items, payment to the Water Authority in lieu of taxes, assessments, and other charges from which the tribal lands would otherwise be exempt, and a tribal government waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement. The waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement shall specify that suit shall proceed in either the Superior Court of the State of California, or the proper jurisdiction of the Federal Court, whichever is proper, and be subject to California and/or Federal law. 9 -1 CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 ANNEXATIONS AND DETACHMENTS 9.01 REQUIREMENT OF ANNEXATION FOR SERVICE Except as provided elsewhere in this Code, whenever utility service is requested for land outside the boundaries of an improvement district, the land to be serviced must first be annexed to an improvement district(s). If the land is located outside the boundaries of the District, the land must also be annexed to the District. 9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS DISTRICTS An owner or owners of land within the District desiring to annex to or detach land from an improvement district within the District must file a petition for such proceeding with the District. Annexation proceedings shall be con- ducted pursuant to Chapter I (commencing with Section 72670) of Part 11, Division 20 of the California Water Code. Detachment or exclusion proceedings shall be conducted pur- suant to Part 8.5 (commencing with Section 72080) of Division 20 of the California Water Code. If the land proposed to be annexed is outside the boundaries of the territory served by the Metropolitan Water District of Southern California and the territory served by the San Diego County Water Authority, and no local sources of water are available to serve such land, the District will require that the land be annexed to those entities as well. 9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO 1. Application Process Options An owner or owners desiring to annex land to or to detach land from the District may either (i) file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii) request the District file a petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section ATTACHMENT C 9 -2 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2. Board Approval Process for a request the District file the LAFCO petition a. The Board, or any standing committee of the Board reviewing an annexation request will consider the request at the next regular meeting taking place no earlier than 60 days after the receipt by the District of the request for the annexation and all accompanying required information. b. A request for annexation shall include: (1) A legal description and a detailed map of the area proposed to be annexed, clearly indicating the metes and bounds of the area and the gross and net acreage for the area with sufficient documentation to support the gross and net acreage specified; (2) A certificate from the assessor of the county within which the area proposed to be annexed is situated setting forth the assessed valuation of each parcel included within the area; (3) Identification of the ownership of each parcel included within the area proposed to be annexed; (4) For each parcel included in the area proposed to be annexed, a description of: The present use of each of the parcels Existing or proposed development plans An estimate of the total annual and peak demands for water service, including an estimate of the proportion of those demands to be supplied by Otay Water District 9 -3 Any infrastructure requirements for servicing the proposed annexation area A plan for implementing all current water use efficiency and restrictions All appropriate California Environmental Quality Act (CEQA), and if applicable, National Environmental Policy Act (NEPA) documents Payment of all applicable fees. c. The Water District shall consider its current and planned water supplies, the above-listed information, whether annexing the property would diminish the District’s ability to serve its current obligations. d. The Otay Water District will submit a petition to LAFCO for annexation or detachment following District approval of the request for annexation or detachment and upon payment of all applicable fees by the owners and representatives of the annexing or detaching land. 9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS A petitioner requesting an annexation to or detachment from the District or within the District shall pay the following applicable fees and charges: A. Administrative Processing Fees 1. District Processing Fee. A District processing fee (s ee Appendix A, Section 9 for fee) shall be paid to the District for each annexation or detachment proceeding, regardless of the number of parcels involved, provided all parcels are included in one proceeding. This fee shall constitute the "base rate" on March 3, 1997. The base rate shall be adjusted annually for fluctuations in the Consumer Price Index (Urban Wage Earners and Clerical Workers - Los Angeles) and subsequent cost-of-living adjustment (COLA). 2 . Additional Processing Fees or Charges. The peti- tioner shall pay all processing fees and charges due LAFCO, the State Board of Equalization and any other applicable government agency. 3 . Concurrent Annexations to or Detachments from the District and an Existing Improvement District. No 9 -4 additional processing costs or fees will be charged to a petitioner for an annexation to or detachment from an existing improvement district when the proceeding is part of an annexation to or detachment from the District. 4 . Payment of Fees and Charges. The District processing f ees and charges shall be paid to the District at the time the petition for such proceeding is filed. Where a petition is filed with LAFCO, the District shall notify LAFCO that payment of all required fees and charges to the District shall be a condition for District approval of the annexation or detachment. B. Water Annexation Fees. The annexation fee (s ee Appendix A, Section 9) shall constitute the "base rate" on October 1, 2014). The base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 on June 1, 2014 shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. 1. No water annexation fee shall be required for existing and future agricultural water service furnished by the District under the COMMERCIAL AGRICULTURAL category of Section 25 of the Code. 2. Non-permanent irrigation water service furnished by the District under Section 30 of the Code shall be available without payment of a water annexation fee. 3. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a water improvement district. 4. Water Meter Type Exclusions. Annexation fees shall be collected on all water meters sold except for temporary water meters, water tank truck meters, nonpermanent irrigation water meters and outside user meters, all as defined elsewhere in this Code. 5. Effective Date. Annexation fees shall be col- lected on all lands annexing into the Otay Water District boundaries on or after March 5, 1997. 6. Basis for Determination. For annexations of land into the Otay Water District boundaries, the 9 -5 petitioner shall pay an annexation fee. The fee shall be paid at the time of petition to be annexed. There shall be no water annexation fee charged for parcels already within District boundaries that are applying to be annexed into a water ID. For permanent water meters, except for commercial agricultural meters, the annexation fee shall be determined on the basis of the demand to be placed on the District-wide water system. The fee will be determined on the basis of the size of the water meter required, as set forth in Section 27 of the Code. The fee shall be determined by multiplying the demand factor for the meter size, as set forth in Section 28 of the Code, by the annexation fee per EDU. See Appendix A, Section 9 for fees. C. Sewer Annexation Fees 1. Improvement District Annexation. All annexation for sewer service shall be into Improvement District No. 18 on or after December 16, 1998. 2. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a sewer improvement district. 3. Effective Date. Annexation fees shall be collected on all lands annexing to a sewer improvement district on or after December 16, 1998. 4. Basis for Determination. For annexations of land to a sewer improvement district within the Dis- trict, the petitioner shall pay an annexation fee. The fee shall be determined on the basis of the demand to be placed on the District sewer system. The fee shall be paid at the time of sewer service connection request or General Manager's approval of plans, whichever occurs earlier. The extent of the demand will be determined on the basis of each equivalent dwelling unit (EDU) of service which is to be connected to the District sewer system. The number of EDUs prescribed in Section 53 of the Code shall be the basis for computation of the amount of the annexation fee. The fee will be determined by multiplying the number of EDUs by the annexation fee per EDU. S ee Appendix A, Section 9 for fees. This annexation fee shall constitute the "base rate" on October 1, 2014. The base rate shall be adjusted quarterly for fluctuations in construction costs as measured by the Engineering 9 -6 News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 (as of June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. D. Detachment Fees For each detachment of land from an improvement district, the petitioner shall pay such fees as the General Manager determines are appropriate for the detachment. Determinations shall be made by the General Manager on a case-by-case basis. 9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT DISTRICT Where property is annexed by a petitioner, other than a tax-exempt agency, the property in the annexed area shall be subject to taxation after the annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district authorized and outstanding at the time of the annexation. The Board of Directors shall provide as a condition of the annexation that the annexed area shall be subject to taxation as if the property had always been a part of the improvement district. 9.06 OTHER CONDITIONS OF ANNEXATION 1. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2. Proposals which create an unannexed area entirely surrounded by an annexed area shall not be approved unless the Board determines that the Water District’s interests will not be adversely affected by the existence of the encompassed area. 3. An annexed area shall be subject to all applicable water use efficiency guidelines. 9 -7 9.07 ANNEXATION OF TRIBAL LANDS Annexation of Tribal Lands may be approved where an agreement with the Tribal government to assure implementation and annexation conditions and requirements has been signed, in accordance with Water Code section 71611.5(b). The agreement shall include, among other items, payment to the Water Authority in lieu of taxes, assessments, and other charges from which the tribal lands would otherwise be exempt, and a tribal government waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement. The waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement shall specify that suit shall proceed in either the Superior Court of the State of California, or the proper jurisdiction of the Federal Court, whichever is proper, and be subject to California and/or Federal law. 1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Authorize an Agreement with Concord Utility Services, Inc. for Master Meter Register and Meter Change Outs in Fiscal Year 2017 and Increase the Budget for the Automated Meter Reading Change Out Capital Improvement Program Project by $200,000 GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to negotiate and enter into an agreement with Concord Utility Services, Inc. for Master Meter register and meter change outs in fiscal year 2017 and increase the budget for the Automated Meter Reading (AMR) Change Out Capital Improvement Program (CIP) project by $200,000 for the labor associated with the change out process. COMMITTEE ACTION: See Attachment A. PURPOSE: To authorize the General Manager to negotiate and enter into an agreement with Concord Utility Services, Inc. to complete the Master Meter register and meter change outs in fiscal year 2017 and increase the budget for the AMR CIP project by $200,000 for the labor associated with the change out process. 2 ANALYSIS: On January 4, 2017, the Board authorized the creation of an AMR Change Out CIP project to begin in the current fiscal year, due to an increase in the number of automated reading failures in the meters purchased in 2006. Staff recommended changing out all the registers (approximately 8,000) and the 500 meters purchased in that year. During the January presentation to the Board, staff noted that it would be bringing a separate staff report back for the contract associated with the installation services and a corresponding request to increase the CIP for the labor costs associated with the change outs. Staff has identified over $200,000 in savings on other CIP projects so while the AMR Change Out CIP will be increasing, the overall CIP budget will remain the same. Staff issued a bid request through its online solicitation portal, BidSync. The District received five responses and all were evaluated on firm qualifications, references and price. The companies and their prices are in the table below. Company Total Price Concord Utility Services, Inc. $198,860 Falcon Construction Co. $229,900 American Pipeline Services $462,250 Professional Meters, Inc. $523,500 CHI Construction $1,232,150 During the evaluation, Concord Utility Services, Inc. ranked highest in all areas. Concord has been in business for ten years and its core business is meter installations of all sizes. The company is headquartered in Murrieta, California and has approximately 50 employees. Concord was the only company that provided three references where the work performed was exclusively related to meter change outs. Staff contacted each reference which included Rancho California Water District, the City of Victorville and Cucamonga Valley Water District. All rated Concord excellent in job performance and stated they would use Concord again for similar projects. The contractor is expected to begin change outs in mid-March and will have a crew of four to six people working daily to complete the project within the two month time frame requested by the District. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This action increases the Capital Improvement Project AMR Change Out program budget by $200,000 for fiscal year 2017. While this expenditure was not incorporated into the planned rates, the District 3 has sufficient financial flexibility to fund this program earlier than anticipated. Staff has identified over $200,000 in savings on other CIP projects this year which will be transferred to cover the costs of the increase to this CIP. STRATEGIC GOAL: Improve and streamline meter related processes. LEGAL IMPACT: None. Attachments: Attachment A - Committee Action 4 ATTACHMENT A SUBJECT/PROJECT: Authorize an Agreement with Concord Utility Services, Inc. for Master Meter Register and Meter Change Outs in Fiscal Year 2017 and Increase the Budget for the Automated Meter Reading Change Out Capital Improvement Program Project by $200,000 COMMITTEE ACTION: The Finance, Administration, and Communications Committee (FA&C Committee) reviewed this item at a meeting held on February 15, 2017 and the following comments were made: Staff is requesting that the board approve an agreement with Concord Utility Services, Inc. for Master Meter register and meter change outs in fiscal year 2017 and increase the budget for the Automated Meter Reading (AMR) Change Out Capital Improvement Program (CIP) Project by $200,000 for the labor associated with the change out process. Staff reviewed information in the staff report. In response to an inquiry from the Committee, staff indicated that Concord Utility Services, Inc. will be a new contractor for the District. Staff believes that the company that the District had formerly contracted with may be out-of-business as staff was unable to contact them. Staff indicated in response to another inquiry from the Committee that the last three vendors (see list on page 2 of the staff report) who bid on the project are located in other parts of the Country so their bids included a relocation service charge. They also charged a significant work management fee (to make their system work with Otay WD’s system) and their per meter charge was quite high. Staff also noted that these firms’ focus was on water related projects, but not meter installations. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 562 Amending Appendix A with the Proposed Changes to Various Fees and Charges and Amending Section 34 Issuance and Payment of Water Bills of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 562 amending Appendix A with the proposed changes to various fees and charges and amending Section 34 Issuance and Payment of Water Bills of the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board the proposed changes to various fees and charges in Appendix A and amending Section 34 of the District’s Code of Ordinances. ANALYSIS: Periodically, the District analyzes fees to ensure all costs are recovered by the individual benefiting from the service performed. 2 Staff has recently completed a cost analysis of various fees outlined in Appendix A. For each fee, staff determined the time spent on the activity. Various staff members were consulted to determine the average time spent completing each task in the field as well as any time spent in the office that was directly related to completing each task. In addition, payroll personnel were asked to provide fully loaded labor rates. Using these labor rates and the average time spent to complete a specific task, staff then determined the overall cost required to provide each service. To ensure financial equity to all rate payers, staff is recommending changes to the following fees effective April 1, 2017, as shown in the table below. Code Numbers Item Current Fees Proposed Fees 23.04 Backflow Certification Third Notification - hand delivered New 45.00 Reconnection (if test performed with technician present) 50.00 150.00 31.03 A.4. Temporary Meter Install & Removal 3/4"-4" (on hydrant) 128.00 150.00 4"-6" 128.00 806.00 8"-10"* 128.00 Actual Cost 31.03 A.5. Temporary Meter Move Fee - includes backflow certification 3/4"-4" (on hydrant) 64.00 150.00 4"-6" 64.00 806.00 8"-10"* 64.00 Actual Cost 34.02 G.3. (a) Meter “Turn-on” Charge – regular hours (lock and unlock fee) 35.00 50.00 34.02 G.3. (b) Meter “Turn-on” Charge - after hours (unlock fee) 65.00 Delete 34.02 G.1. (d) Delinquency Tag (contact fee) 10.00 15.00 72.04 A.1. Locking or Removing Damaged or Tampered Meters Pull and Reset Meter 3/4"-2" 170.00 200.00 Broken Curb Stop or Tabs 3/4"-1" 192.00 Actual Cost If Customer uses a Jumper 3/4"-1" 149.00 Actual Cost Broken Lock/Locking Device 3/4"-1" 56.00 68.00 Cap Locked (Welded) 3/4"-1" 158.00 Delete Broken Curb Stop or Tabs 1.5"-2" 265.00 Actual Cost Pull and Reset Meter 3"* 351.00 Actual Cost Pull and Reset Meter 4"* 454.00 Actual Cost Pull and Reset Meter 6"* 454.00 Actual Cost Pull and Reset Meter 8”* 600.00 Actual Cost Pull and Reset Meter 10” 600.00 Actual Cost *These fees have never been assessed but will be kept in Appendix A to ensure the District is reimbursed should the situation arise. 3 The fees above are assessed to the customer’s water account after the work is performed. Staff has consulted with the District’s General Counsel who confirmed these fees are not subject to Proposition 218 noticing requirements. Lock Fees The most common fee assessed on this list is the “Meter Turn-on Charge.” This fee is charged to customers that have their service disconnected for non-payment. The District locks approximately 300 meters per month. In order to determine the appropriate fee for disconnection and reconnection due to non-payment, staff analyzed the costs associated with locking and unlocking an account. Prior to locking a meter, Customer Service staff reviews each account on the day’s lock list. The final list is then sent to the meter reading team. A meter reader then goes to each property to turn off service and place a lock on the meter with a tag stating the service has been interrupted and to call the office. The lock process takes approximately 15 minutes per account. To unlock the meter the customer must pay the past due amount. A Customer Service Representative verifies payments made throughout the day to locked accounts and creates a service order to unlock those paid accounts. The meter reading team then returns to the property to unlock the meter. The unlock process takes approximately 20 minutes per account. Based on the average time of 35 minutes per account and the labor cost, staff is proposing an increase from $35.00 to $50.00. This fee was last updated in September 2009. Staff has done a survey of neighboring agencies and lock fees that are shown in the table below. Water Agency Lock Fee Padre Dam Municipal Water District $60 Helix Water District $44 Sweetwater Authority $50 Poway Municipal $54 City of San Diego $55 Although not required by law, the District will be notifying all customers in March, via a message on their water bill, of the lock fee increase. Staff also proposes an increase of the delinquency tag fee from $10.00 to $15.00. This is not common practice as notices are now emailed and mailed. However, staff would like to keep this fee in Appendix A to ensure the District is reimbursed on the rare occasion a notice is hand delivered. 4 Backflow Fees Staff is proposing the addition of a fee for hand-delivering a backflow shut-off notice. Backflow devices must be tested on an annual basis and test reports must be submitted within the due date supplied to the customer. Notices advising the customer of the upcoming due date are mailed 30 days prior. If a test is not submitted, a second notice is mailed giving 14 days to complete the test. At the end of the 14 day period a third notice is mailed with notification on pending disconnection. In addition, staff hand delivers a notice to the site. This hand-delivered notice is to ensure the onsite Manager is aware of the pending disconnection and can take the necessary steps to bring the backflow device into compliance. Although, this can be a time consuming and costly step for the District, it has proven highly effective in minimizing disconnections. The new fee will offset the costs associated with this field visit. Temporary Meter Fees Temporary meters are meters used for construction purposes. The majority of these are 2½” meters attached to District fire hydrants (see photo on page 5). Staff proposes an increase from $128.00 to $150.00. Each temporary meter requires a backflow device to be tested and installed at the time the meter is set. Historically, the charge to move a temporary meter has been half of the installation fee which also includes the cost of the future removal. However, the time involved with moving a temporary meter is the same as the initial installation and future removal. The proposed fee changes reflect this and would charge the same fee whether a temporary meter is installed for the first time or moved from one hydrant to another. On occasion, developers require a larger flow of water and must use a regular 4” or 6” meter (see photo on page 5). The installation of these meters is much more involved and requires two staff members. Staff is proposing a separate fee for installing these meters. Once again, the staff time for moving one of these meters is equal to the installation and future removal time therefore, fees are proposed to be the same for each occurrence. 5 6’’ temporary meter installed for construction purposes. Standard 2½’’ temporary meter attached to hydrant for construction purposes. 6 Fees Removed Staff is proposing the removal of two fees on this list: 1) Meter “Turn-On” Charge - after regular business hours and 2) Cap Locked (Welded) ¾”-1”. Customers are only unlocked between the District’s normal business hours of 8am-5pm. Should a customer make a payment after 5pm, they are advised that service will be restored the next business morning. In rare instances, management may approve service restoration after hours or on weekends but these are special situations. The Cap Locked (Welded) is not something the District uses any longer. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Based on the average number of occurrences for each fee, staff estimates an increase of approximately $75,000 in annual revenue. The proposed fee changes reflect the current labor rates and time involved for each task. Updating these fees help to ensure the financial equity of all rate payers as the fees are only charged to those customers that require these services. STRATEGIC GOAL: This revenue source will help the District meet its fiscal responsibility to its ratepayers. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Form Attachment B - Ordinance No. 562 Exhibit 1 – Appendix A Strike-through Exhibit 2 – Section 34 Strike-through Attachment C – Appendix A Proposed Attachment D – Section 34 Proposed ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 562 Amending Appendix A with the Proposed Changes to Various Fees and Charges and Amending Section 34 Issuance and Payment of Water Bills of the District’s Code of Ordinances COMMITTEE ACTION: The Finance, Administration, and Communications Committee (FA&C Committee) reviewed this item at a meeting held on February 15, 2017 and the following comments were made: Staff is requesting that the board adopt Ordinance No. 562 amending Appendix A with the proposed changes to various fees and charges and amending Section 34, Issuance and Payment of Water Bills, of the District’s Code of Ordinances. Staff reviewed information in the staff report. It was discussed that the proposed fee changes are to allow the District to collect the actual cost for the installation of temporary meters, to lock/unlock meters, etc. The Committee felt that the proposed increases were quite large and suggested that the District propose periodic reviews of fees and charges that would be codified in the District’s Code of Ordinances. Staff has reviewed Appendix A and identified those fees and charges that are not currently on a schedule to update. Staff is currently putting together a formal process to ensure these fees are updated on a bi-annual basis. Staff noted that if a fee is indicated as, “actual cost,” the customer is provided an estimate of the cost to repair the damaged/tampered meter, etc., prior to the work being done and the customer being assessed the fee. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board as an action item. 1 ORDINANCE NO. 562 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING APPENDIX A AND SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Appendix A and Section 34 Issuance and Payment of Water Bills be amended as per Exhibit 1 and Exhibit 2 to this ordinance. NOW, THEREFORE, BE IT RESOLVED that the new proposed Appendix A (Attachment C) and Section 34 Issuance and Payment of Water Bills (Attachment D) of the Code of Ordinances shall become effective April 1, 2017. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 1st day of March 2017, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: __________________________ District Secretary Attachment B Section #Code #Fee Description Meter Size 9 9.04 A.1. District Annexation Processing Fee $776.20 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $1,907.32 1" $4,768.30 1-1/2" $9,536.60 2" $15,258.56 3" $30,517.12 4 $47,683.00 6" $95,366.00 8" $152,585.60 10" $219,341.80 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,092.66 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Reconnection (service resumed)$50.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers) Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4" $15.91 $15.00 $30.91 1" $22.47 $27.84 $50.31 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2017. Exhibit 1 Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2" $38.88 $62.96 $101.84 2" $58.55 $107.08 $165.63 3" $111.04 $227.75 $338.79 4" $170.10 $364.72 $534.82 6" $334.18 $746.59 $1,080.77 8" $531.05 $1,205.65 $1,736.70 10" $760.72 $1,735.39 $2,496.11 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $2.53 toward the first five units of water when 6-10 $3.95 overall consumption is ten units or less.) 11-22 $5.13 23 or more $7.90 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $3.90 5-9 $5.05 10 or more $7.80 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10" 0-185 $4.17 186-1,400 $4.23 1,401 or more $4.30 10" & larger 0-7,426 $4.17 7,427-14,616 $4.23 14,617 or more $4.30 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $5.68 55-199 $5.74 200 or more $5.81 1.5" & 2" 0-144 $5.68 145-355 $5.74 356 or more $5.81 3" & larger 0-550 $5.68 551-1,200 $5.74 1,201 or more $5.81 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.5.(c)Recycled Water (1)3/4" - 1" 0-32 $4.85 (Landscape Irrigation and Certain 33-75 $4.92 Non-Irrigation Purposes Rates) 76 or more $4.99 1.5" & 2" 0-130 $4.85 131-325 $4.92 326 or more $4.99 3" & 4" 0-440 $4.85 441-1,050 $4.92 1,051 or more $4.99 6" & larger 0-4,000 $4.85 4,001-10,000 $4.92 10,001 or more $4.99 25 25.03 E.6.(c)Recycled Commercial (1)under 10" 0-173 $3.53 174-831 $3.60 832 or more $3.65 10" & larger 0-7,426 $3.53 7,427-14,616 $3.60 14,617 or more $3.65 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (1)3/4" - 1" 0-32 $9.70 33-75 $9.84 76 or more $9.98 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (continued) (1)1.5" & 2" 0-130 $9.70 131-325 $9.84 326 or more $9.98 3" & 4" 0-440 $9.70 441-1,050 $9.84 1,051 or more $9.98 6" & larger 0-4,000 $9.70 4,001-10,000 $9.84 10,001 or more $9.98 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $20.77 more than 4" $27.98 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.41 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.044 25 25.04 A. Deposits for Non-Property Owners 3/4" $75.00 1" $150.00 1-1/2" $200.00 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.04 A. Deposits for Non-Property Owner (continued)2" $360.00 3" $800.00 4" $1,350.00 6" $3,300.00 8" $4,400.00 10" $5,500.00 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $8,569.52 1" $21,423.80 1-1/2" $42,847.60 2" $68,556.16 3" $137,112.32 4 $214,238.00 6" $428,476.00 8" $685,561.60 10" $985,494.80 - TRIAD 3/4" $6,429.28 1" $16,073.20 1 -1/2" $32,146.40 2" $51,434.24 3" $102,868.48 4 $160,732.00 6" $321,464.00 8" $514,342.40 10" $739,367.20 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $1,061.53 1" $2,653.83 1-1/2" $5,307.65 2" $8,492.24 3" $16,984.48 4" $26,538.25 6" $53,076.50 8" $84,922.40 10" $122,075.95 Section #Code #Fee Description Meter Size Charges 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation) 3/4" x 7.5" $219.55 $104.19 $323.74 $88.20 3/4" x 9" $233.76 $104.19 $337.95 $88.20 1" $283.32 $104.19 $387.51 $88.20 1.5" $460.50 $104.19 $564.69 $199.96 2" $659.85 $104.19 $764.04 $199.96 3" $2,056.35 $627.30 $2,683.65 $3,566.92 4" $3,571.54 $627.30 $4,198.84 $3,566.92 6" $6,169.03 $990.87 $7,159.90 $3,566.92 8" $7,707.74 $1,519.41 $9,227.15 $5,117.00 10" $11,085.17 $1,519.41 $12,604.58 $5,117.00 - Potable/Recycled Irrigation 3/4" x 7.5" $219.55 $104.19 $323.74 $224.79 3/4" x 9" $233.76 $104.19 $337.95 $224.79 1" $283.32 $104.19 $387.51 $224.79 1.5" $460.50 $104.19 $564.69 $224.79 2" $659.85 $104.19 $764.04 $224.79 3" $1,423.20 $627.30 $2,050.50 $3,566.92 4" $2,770.75 $627.30 $3,398.05 $3,566.92 6" $4,988.25 $990.87 $5,979.12 $3,566.92 8" $6,645.24 $1,519.41 $8,164.65 $5,117.00 10" $9,430.10 $1,519.41 $10,949.51 $5,117.00 - Combined Fire and Domestic 4" $8,497.02 $627.30 $9,124.32 $3,566.92 6" $11,308.80 $990.87 $12,299.67 $3,566.92 8" $16,442.17 $1,519.41 $17,961.58 $5,117.00 10" $22,438.13 $1,519.41 $23,957.54 $5,117.00 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4" $156.85 1" $184.78 1-1/2" $379.62 2" $2,046.00 4" $1,986.00 6" $2,465.00 Section #Code #Fee Description Meter Size Charges 31 31.03 A.1. Requirement of Deposit for Temporary Meters (continued) - Construction Trailer Temporary Meter 2" $2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2" $850.00 31 31.03 A.4. Temporary Meter Install & Removal $128.00 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 2"$64.00 3 and larger No backflow test $64.00 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1" $25.00 1-1/2" & 2 " $50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B. Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d) Delinquency Tag $10.00 34 34.02 G.3.(a)Meter "Turn-On" Charge During regular business hours $35.00 34 34.02 G.3.(b)Meter "Turn-On" Charge After regular business hours $65.00 53 53.03 A.1. Sewer Capacity Fee per EDU for parcels within a Sewer ID $4,392.09 53 53.03 A.2. Sewer Capacity Fee per EDU for parcels not within a Sewer ID $6,869.35 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 (2) Sewer billed beginning January 1, 2017. Section #Code #Fee Description Meter Size Charges 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.58 53 53.10 Residential Sewer System Fee (2)5/8", 3/4" & larger $15.89 53 53.10 A. Residential Sewer Without Consumption History (2)5/8", 3/4" & larger $40.01 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $24.12 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.58 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75" $28.37 1" $41.80 1.5" $75.27 2" $115.46 3" $209.24 4" $343.23 6" $678.18 8" $1,080.14 10" $1,549.07 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2)Rate multiplied by Low Strength $2.58 annual avg.Medium Strength $3.70 units High Strength $5.90 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75" $28.37 1" $41.80 1.5" $75.27 2" $115.46 3" $209.24 (2) Sewer billed beginning January 1, 2017. Section #Code #Fee Description Meter Size Charges 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2) (continued)4" $343.23 6" $678.18 8" $1,080.14 10" $1,549.07 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$170.00 - Broken Curbstop or Tabs 3/4" - 1"$192.00 - If Customer uses Jumper 3/4" - 1"$149.00 - Broken Lock/Locking Device 3/4" - 1"$56.00 - Cap Lock (Welded)3/4" - 1"$158.00 - Broken Curbstop or Tabs 1.5" - 2"$265.00 - To Pull and Reset Meter 3"$351.00 - To Pull and Reset Meter 4"$454.00 - To Pull and Reset Meter 6"$454.00 - To Pull and Reset Meter 8"$600.00 - To Pull and Reset Meter 10"$600.00 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Section #Code #Fee Description Meter Size Charges State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25, & 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 4, 14, & 18 34-1 SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 34.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE A. Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. B. Due Date. Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date. All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Payment of Charges. 1. Place of Payment. Payments shall not be credited to a customer's account until cash, check, credit card, draft, electronic funds transfer, money order, or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer's account until received at the business office. 2. Returned Check Charges. A returned payment charge (see Appendix A, 34.01 D.2. for charge) shall be added to a customer's account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 34.02 DELINQUENT ACCOUNTS A. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent. B. Late Payment Charge. A late payment charge (see Appendix A, 34.02 B. for charge) of the total amount Exhibit 2 34-2 delinquent shall be added to each delinquent account at the time any amount becomes delinquent, provided that the charge shall not be made on any account which at that time has no delinquencies of record. When a late payment charge is made, such shall be added to the delinquent account as of the date the account becomes delinquent and such charges shall become an inseparable part of the amount due as of that time. C. Notice of Delinquency. A delinquency notice shall be mailed to each customer whose account is delinquent, notifying the customer that service will be turned off unless payment is made. The notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within fifteen (15) calendar days from the date of mailing or presentation of the notice to the customer, or service will be discontinued. D. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. E. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account; however, the partial payment shall not cause removal of the account from a delinquent status and furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. F. Financial Arrangements for Delinquent Accounts. 1. Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service to a delinquent account if financial arrangements, satisfactory to the District, have been established. 2. Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief 34-3 Financial Officer, but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. (a) Handling of Deposit. A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. (b) Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. G. Termination and Reinstatement of Water Service Under Delinquent Accounts 1. Termination of Service. The water meter or meters under delinquent accounts may be turned off and locked if payment has not been made in accordance with the Notice of Delinquency. (a) Where an owner or manager is listed by the Dis- trict as the customer of record of the service, the District shall make every good faith effort to inform the actual users of the services when the account is in arrears by means of a notice that service will be terminated in ten days. The notice shall further inform the actual users that they have the right to become cus- tomers of the District without being required to pay the amount due on the delinquent account. (b) Residential water service shall not be termi- nated for non-payment in any of the following situations: (1) During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non- payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for 34-4 payment, shall be given an opportunity for a review. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time not to exceed 12 months. No termination of service shall be effected for any customer complying with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period. Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. (2) When a customer has been granted an exten- sion of the period for payment of a bill. (3) On the certification of a licensed physi- cian and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortiza- tion agreement to pay the unpaid balance of any bill asserted to be beyond the means of the customer over a period not to exceed 12 months. (c) The ten-day notice of proposed termination may not be sent to the customer until at least 19 days from the date of mailing of the bill for services. The ten-day period shall not com- mence until five days after the mailing of the notice. (d) The District shall make a reasonable, good faith effort to contact an adult person resid- ing at the premises of the customer by tele- phone or in person, at least 48 hours prior to any termination of service. A charge (see Appendix A, 34.02 G.1.(d) for charge) shall be added to the bill for a contact made in person. (e) Every notice of termination of service pursuant to subdivisions (a) and (c) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. 34-5 (2) The amount of the delinquency. (3) The date by which payment or arrangements for payment is required in order to avoid termination. (4) The procedure by which the customer may initiate a complaint or request an inves- tigation concerning service or charges, except that if the bill for service con- tains a description of that procedure, then the notice is not required to contain that information. (5) The procedure by which the customer may request amortization of the unpaid charges. (6) The procedure for the customer to obtain information on the availability of finan- cial assistance including private, local, state or federal sources, if applicable. (7) The telephone number of a representative of the District who can provide additional information or institute arrangements for payment. (f) If a residential customer fails to comply with an amortization agreement, the District shall not terminate service without giving notice to the customer at least 48 hours prior to termi- nation of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the District. (g) Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday or at any time during which the business offices of the District are not open to the public. (h) No termination of service may be effected with- out compliance with this section and any ser- vice wrongfully terminated shall be restored, without charge, for the restoration of service. (See California Government Code Section 60373.) 2. Reinstatement of Service. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and meter "turn-on" charges, have 34-6 been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. 3. Meter "Turn-On" Charge. A "turn-on" charge shall be made for turning on any meter which has previously been turned off for a delinquent account. The charges for to turn-on a meter shall be as followsis set forth in Appendix A, 34.02 G.3.: (a) For any account turned on during the District’s regular business hours the turn-on charge is set forth in Appendix A, 34.02 G.3.(a). (b) For any account turned on after the District’s regular business hours, the turn-on charge is set forth in Appendix A, 34.02 G.3.(b). Section #Code #Fee Description Meter Size 9 9.04 A.1. District Annexation Processing Fee $776.20 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $1,907.32 1" $4,768.30 1-1/2" $9,536.60 2" $15,258.56 3" $30,517.12 4 $47,683.00 6" $95,366.00 8" $152,585.60 10" $219,341.80 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,092.66 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered) $45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present) $150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers) Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4" $15.91 $15.00 $30.91 1" $22.47 $27.84 $50.31 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2017. Attachment C Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2" $38.88 $62.96 $101.84 2" $58.55 $107.08 $165.63 3" $111.04 $227.75 $338.79 4" $170.10 $364.72 $534.82 6" $334.18 $746.59 $1,080.77 8" $531.05 $1,205.65 $1,736.70 10" $760.72 $1,735.39 $2,496.11 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $2.53 toward the first five units of water when 6-10 $3.95 overall consumption is ten units or less.) 11-22 $5.13 23 or more $7.90 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $3.90 5-9 $5.05 10 or more $7.80 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10" 0-185 $4.17 186-1,400 $4.23 1,401 or more $4.30 10" & larger 0-7,426 $4.17 7,427-14,616 $4.23 14,617 or more $4.30 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $5.68 55-199 $5.74 200 or more $5.81 1.5" & 2" 0-144 $5.68 145-355 $5.74 356 or more $5.81 3" & larger 0-550 $5.68 551-1,200 $5.74 1,201 or more $5.81 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.5.(c)Recycled Water (1)3/4" - 1" 0-32 $4.85 (Landscape Irrigation and Certain 33-75 $4.92 Non-Irrigation Purposes Rates) 76 or more $4.99 1.5" & 2" 0-130 $4.85 131-325 $4.92 326 or more $4.99 3" & 4" 0-440 $4.85 441-1,050 $4.92 1,051 or more $4.99 6" & larger 0-4,000 $4.85 4,001-10,000 $4.92 10,001 or more $4.99 25 25.03 E.6.(c)Recycled Commercial (1)under 10" 0-173 $3.53 174-831 $3.60 832 or more $3.65 10" & larger 0-7,426 $3.53 7,427-14,616 $3.60 14,617 or more $3.65 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (1)3/4" - 1" 0-32 $9.70 33-75 $9.84 76 or more $9.98 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (continued) (1)1.5" & 2" 0-130 $9.70 131-325 $9.84 326 or more $9.98 3" & 4" 0-440 $9.70 441-1,050 $9.84 1,051 or more $9.98 6" & larger 0-4,000 $9.70 4,001-10,000 $9.84 10,001 or more $9.98 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $20.77 more than 4" $27.98 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.41 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.044 25 25.04 A. Deposits for Non-Property Owners 3/4" $75.00 1" $150.00 1-1/2" $200.00 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.04 A. Deposits for Non-Property Owner (continued)2" $360.00 3" $800.00 4" $1,350.00 6" $3,300.00 8" $4,400.00 10" $5,500.00 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $8,569.52 1" $21,423.80 1-1/2" $42,847.60 2" $68,556.16 3" $137,112.32 4 $214,238.00 6" $428,476.00 8" $685,561.60 10" $985,494.80 - TRIAD 3/4" $6,429.28 1" $16,073.20 1 -1/2" $32,146.40 2" $51,434.24 3" $102,868.48 4 $160,732.00 6" $321,464.00 8" $514,342.40 10" $739,367.20 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $1,061.53 1" $2,653.83 1-1/2" $5,307.65 2" $8,492.24 3" $16,984.48 4" $26,538.25 6" $53,076.50 8" $84,922.40 10" $122,075.95 Section #Code #Fee Description Meter Size Charges 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation) 3/4" x 7.5" $219.55 $104.19 $323.74 $88.20 3/4" x 9" $233.76 $104.19 $337.95 $88.20 1" $283.32 $104.19 $387.51 $88.20 1.5" $460.50 $104.19 $564.69 $199.96 2" $659.85 $104.19 $764.04 $199.96 3" $2,056.35 $627.30 $2,683.65 $3,566.92 4" $3,571.54 $627.30 $4,198.84 $3,566.92 6" $6,169.03 $990.87 $7,159.90 $3,566.92 8" $7,707.74 $1,519.41 $9,227.15 $5,117.00 10" $11,085.17 $1,519.41 $12,604.58 $5,117.00 - Potable/Recycled Irrigation 3/4" x 7.5" $219.55 $104.19 $323.74 $224.79 3/4" x 9" $233.76 $104.19 $337.95 $224.79 1" $283.32 $104.19 $387.51 $224.79 1.5" $460.50 $104.19 $564.69 $224.79 2" $659.85 $104.19 $764.04 $224.79 3" $1,423.20 $627.30 $2,050.50 $3,566.92 4" $2,770.75 $627.30 $3,398.05 $3,566.92 6" $4,988.25 $990.87 $5,979.12 $3,566.92 8" $6,645.24 $1,519.41 $8,164.65 $5,117.00 10" $9,430.10 $1,519.41 $10,949.51 $5,117.00 - Combined Fire and Domestic 4" $8,497.02 $627.30 $9,124.32 $3,566.92 6" $11,308.80 $990.87 $12,299.67 $3,566.92 8" $16,442.17 $1,519.41 $17,961.58 $5,117.00 10" $22,438.13 $1,519.41 $23,957.54 $5,117.00 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4" $156.85 1" $184.78 1-1/2" $379.62 2" $2,046.00 4" $1,986.00 6" $2,465.00 Section #Code #Fee Description Meter Size Charges 31 31.03 A.1. Requirement of Deposit for Temporary Meters (continued) - Construction Trailer Temporary Meter 2" $2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2" $850.00 31 31.03 A.4. Temporary Meter Install & Removal 3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10" Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10" Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1" $25.00 1-1/2" & 2 " $50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B. Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d) Delinquency Tag $15.00 34 34.02 G.3. Meter "Turn-On" Charge $50.00 53 53.03 A.1. Sewer Capacity Fee per EDU for parcels within a Sewer ID $4,392.09 53 53.03 A.2. Sewer Capacity Fee per EDU for parcels not within a Sewer ID $6,869.35 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 (2) Sewer billed beginning January 1, 2017. Section #Code #Fee Description Meter Size Charges 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.58 53 53.10 Residential Sewer System Fee (2)5/8", 3/4" & larger $15.89 53 53.10 A. Residential Sewer Without Consumption History (2)5/8", 3/4" & larger $40.01 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $24.12 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.58 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75" $28.37 1" $41.80 1.5" $75.27 2" $115.46 3" $209.24 4" $343.23 6" $678.18 8" $1,080.14 10" $1,549.07 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2)Rate multiplied by Low Strength $2.58 annual avg.Medium Strength $3.70 units High Strength $5.90 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75" $28.37 1" $41.80 1.5" $75.27 2" $115.46 3" $209.24 (2) Sewer billed beginning January 1, 2017. Section #Code #Fee Description Meter Size Charges 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2) (continued)4" $343.23 6" $678.18 8" $1,080.14 10" $1,549.07 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2" $200.00 - Broken Curbstop or Tabs 3/4" - 1" Actual Cost - If Customer uses Jumper 3/4" - 1" Actual Cost - Broken Lock/Locking Device 3/4" - 1" $68.00 - Broken Curbstop or Tabs 1.5" - 2" Actual Cost - To Pull and Reset Meter 3" Actual Cost - To Pull and Reset Meter 4" Actual Cost - To Pull and Reset Meter 6" Actual Cost - To Pull and Reset Meter 8" Actual Cost - To Pull and Reset Meter 10" Actual Cost 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Section #Code #Fee Description Meter Size Charges State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25, & 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 4, 14, & 18 Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter 34-1 SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 34.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE A. Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. B. Due Date. Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date. All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Payment of Charges. 1. Place of Payment. Payments shall not be credited to a customer's account until cash, check, credit card, draft, electronic funds transfer, money order, or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer's account until received at the business office. 2. Returned Check Charges. A returned payment charge (see Appendix A, 34.01 D.2. for charge) shall be added to a customer's account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 34.02 DELINQUENT ACCOUNTS A. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent. B. Late Payment Charge. A late payment charge (see Appendix A, 34.02 B. for charge) of the total amount Attachment D 34-2 delinquent shall be added to each delinquent account at the time any amount becomes delinquent, provided that the charge shall not be made on any account which at that time has no delinquencies of record. When a late payment charge is made, such shall be added to the delinquent account as of the date the account becomes delinquent and such charges shall become an inseparable part of the amount due as of that time. C. Notice of Delinquency. A delinquency notice shall be mailed to each customer whose account is delinquent, notifying the customer that service will be turned off unless payment is made. The notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within fifteen (15) calendar days from the date of mailing or presentation of the notice to the customer, or service will be discontinued. D. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. E. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account; however, the partial payment shall not cause removal of the account from a delinquent status and furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. F. Financial Arrangements for Delinquent Accounts. 1. Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service to a delinquent account if financial arrangements, satisfactory to the District, have been established. 2. Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief 34-3 Financial Officer, but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. (a) Handling of Deposit. A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. (b) Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. G. Termination and Reinstatement of Water Service Under Delinquent Accounts 1. Termination of Service. The water meter or meters under delinquent accounts may be turned off and locked if payment has not been made in accordance with the Notice of Delinquency. (a) Where an owner or manager is listed by the Dis- trict as the customer of record of the service, the District shall make every good faith effort to inform the actual users of the services when the account is in arrears by means of a notice that service will be terminated in ten days. The notice shall further inform the actual users that they have the right to become cus- tomers of the District without being required to pay the amount due on the delinquent account. (b) Residential water service shall not be termi- nated for non-payment in any of the following situations: (1) During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non- payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for 34-4 payment, shall be given an opportunity for a review. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time not to exceed 12 months. No termination of service shall be effected for any customer complying with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period. Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. (2) When a customer has been granted an exten- sion of the period for payment of a bill. (3) On the certification of a licensed physi- cian and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortiza- tion agreement to pay the unpaid balance of any bill asserted to be beyond the means of the customer over a period not to exceed 12 months. (c) The ten-day notice of proposed termination may not be sent to the customer until at least 19 days from the date of mailing of the bill for services. The ten-day period shall not com- mence until five days after the mailing of the notice. (d) The District shall make a reasonable, good faith effort to contact an adult person resid- ing at the premises of the customer by tele- phone or in person, at least 48 hours prior to any termination of service. A charge (see Appendix A, 34.02 G.1.(d) for charge) shall be added to the bill for a contact made in person. (e) Every notice of termination of service pursuant to subdivisions (a) and (c) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. 34-5 (2) The amount of the delinquency. (3) The date by which payment or arrangements for payment is required in order to avoid termination. (4) The procedure by which the customer may initiate a complaint or request an inves- tigation concerning service or charges, except that if the bill for service con- tains a description of that procedure, then the notice is not required to contain that information. (5) The procedure by which the customer may request amortization of the unpaid charges. (6) The procedure for the customer to obtain information on the availability of finan- cial assistance including private, local, state or federal sources, if applicable. (7) The telephone number of a representative of the District who can provide additional information or institute arrangements for payment. (f) If a residential customer fails to comply with an amortization agreement, the District shall not terminate service without giving notice to the customer at least 48 hours prior to termi- nation of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the District. (g) Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday or at any time during which the business offices of the District are not open to the public. (h) No termination of service may be effected with- out compliance with this section and any ser- vice wrongfully terminated shall be restored, without charge, for the restoration of service. (See California Government Code Section 60373.) 2. Reinstatement of Service. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and meter "turn-on" charges, have 34-6 been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. 3. Meter "Turn-On" Charge. A "turn-on" charge shall be made for turning on any meter which has previously been turned off for a delinquent account. The charge to turn-on a meter is set forth in Appendix A, 34.02 G.3. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: March 1, 2017 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 2017 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2017 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2017 Board of Director’s meeting calendar and amend the schedule as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. Attachment: Calendar of Meetings for 2017 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 3-1-17.doc Board of Directors, Workshops and Committee Meetings 2017 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 4, 2017 February 1, 2017 March 1, 2017 April 5, 2017 May 3, 2017 June 7, 2017 July 5, 2017 August 2, 2017 September 6, 2017 October 4, 2017 November 1, 2017 December 6, 2017 January 18, 2017 February 15, 2017 March 15, 2017 April 19, 2017 May 17, 2017 June 21, 2017 July 19, 2017 August 16, 2017 September 20, 2017 October 18, 2017 November 15, 2017 December 20, 2017 SPECIAL BOARD MEETINGS: BOARD WORKSHOPS: Budget Workshop, Wednesday, May 24, 2017 at 3:00pm STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Tenille M. Otero, Communications Officer PROJECT: Various DIV. NO. ALL APPROVED BY: Mark Watton, General Manager SUBJECT: 2017 Legislative Program Priorities GENERAL MANAGER’S RECOMMENDATION: To present to the Board of Directors the 2017 Legislative Program Priorities. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board of Directors the 2017 Legislative Program priorities on issues affecting the District, which staff and legislative advocates will proactively monitor and/or take action on during the 2017 legislative session and throughout the year. ANALYSIS: Otay Water District maintains a set of legislative policy guidelines to direct staff and legislative advocates on issues important to the District. The legislative guidelines are updated annually and presented to the Otay Water District’s Board of Directors for review, comment, and adoption. At the February 1, 2017 Board of Director’s meeting, the Board adopted the 2017 Otay Water District Program Guidelines. The guidelines will provide a useful framework for staff when evaluating 2 the potential impact of state or federal legislation on the District, protecting the District’s interests. Through its adoption of the guidelines, the Board agreed with the Finance, Administration, and Communications Committee that the Legislative Guidelines is a comprehensive list. However, it has grown over the years and has become quite an extensive list, which makes it difficult to distinguish specific legislation or issues the District is proactively reviewing or taking action on for the year. The Board suggested that staff review the Legislative Guidelines list and condense it into a separate list prioritizing the District’s “top 10” or so priorities for the year. Unfortunately, it is too early in the legislative session to know the specifics on the bills as the deadline for bill introduction is Friday, February 17, 2017. Typically, lobbyists and legislative staff wait until the last couple of days leading up to the deadline, and then hundreds of bills will be introduced. For now, Otay staff does not know what the priority bills of interest will be, but will assess them as they are introduced and monitor those bills/issues that will affect the District throughout the year. Staff will also report to the Board as necessary throughout the year to provide an update on legislative issues affecting the District and if the District is taking a position on specific issues. Attached you will find a list of priority issues that District staff and/or the San Diego County Water Authority is currently monitoring and/or may take a position on. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. LEGAL IMPACT: None Attachments: Attachment A – Committee Action Attachment B – 2017 Legislative Program Priorities ATTACHMENT A SUBJECT/PROJECT: 2017 Legislative Program Priorities COMMITTEE ACTION: The Finance, Administration, and Communications Committee (FA&C Committee) reviewed this item at a meeting held on February 15, 2017 and the following comments were made: Staff is presenting this item as a follow-up to the February 1 Board of Directors meeting where the Board requested that staff present a list of Legislative Program priorities for 2017. Staff reviewed the information in the staff report. Staff discussed items that will be before the California legislature this season: - It was indicated that the State Water Resources Control Board (SWRCB) wanted to keep the emergency drought measures in place to continue to have oversight over the drought situation. It was indicated that the SWRCB is planning to adopt very onerous per capita use restrictions and possibly other restrictions on water agencies. The SWRCB is also looking to put something on the ballot to change Proposition 218. It was noted that the changes that are being proposed are already being challenged. - The legislature is also proposing a “public goods charge” or tax on water meters. The “tax” collected would then be remitted to the State and used to subsidize low income customers. - The legislation on conservation is expected to be released in the next couple days. The water agencies will be largely focused on this legislation. Upon completion of the discussion, the committee supported presentation to the full board as an informational item. Page 1 of 2 2017 Legislative Priorities 1. Monitor unfunded mandates in an effort to decrease the amount of unfunded mandates/regulations that do not provide value to the public while increasing costs and diverting resources from the day- to-day operations to ensure safe, reliable and cost effective water supplies. Examples of these mandates/regulations include: Meeting the ever-changing emissions requirements of the California Air Pollution Control (APCD in San Diego). Consistently more difficult to operate equipment vital to provide drinking water to the public. State Water Resources Control Board Lead and Copper Testing in schools. Water agencies already have strict testing requirements that ensure the water supplied to all customers, including schools are in accordance with regulatory limits. Therefore, water agencies do not have the appropriate jurisdiction to monitor what is taking place inside the schools because schools or similar facilities have their own regulations outside of the District’s jurisdiction. This mandate and communication to schools from the State increases costs and diverts resources that the District needs to conduct additional tests and to manage community concerns outside of its control. National Pollutant Discharge Elimination System (NPDES), which regards drinking water discharged into waterways as a contaminant does not change the operations, but increases the documentation and administration required by each agency to manage, thus increasing costs and resources to the District. 2. Conservation – District staff, along with the San Diego County Water Authority and other local agencies, is closely monitoring developments at the State Water Regional Control Board, State Department of Water Resources, and within the Legislature including any potential revisitation of mandatory water-use restrictions resulting from implementation of drought emergency regulations to determine whether Otay-legislative action may be necessary at a future point during 2017 on the following: Long-term water use efficiency – Likely to see several bills on this issue. Process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts, and ensures that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. 3. Monitor and Support the Ocean Pollution Reduction Act (OPRA) II legislation. Development and deployment of agreed legislation that accepts secondary equivalency for Point Loma wastewater treatment plant. Preferred Alternative: Submit a modified permit application, commit to building potable reuse and modify the Clean Water Act to allow for secondary equivalency. 4. Monitor and engage when appropriate to ensure funding from various propositions for local and regional water-related projects and support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. Page 2 of 2 5. Increase and/or secure funding for projects and technologies that strengthen and enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies for District facilities including, but not limited to training and upgrades. 6. Monitor the water affordability and public goods charge on water. This is the issue related to a “tax” on the water bill to finance low-income water rate assistance and operations and maintenance costs associated with water supply and treatment facilities within disadvantaged communities. 7. Monitor Proposition 218 Reform. This is the constitutional amendment to address conservation- pricing and low-income water rate assistance, and a statutory measure to address stormwater charges. 8. Monitor the Water/Resources Bond. Two measures have been introduced – AB 18 and SB 5. These are placeholders for discussions on a water bond for one of the 2018 ballots. 9. Monitor Assembly Bill 313 (Gray, Adam D) to overhaul California’s water management structure. It proposes to restructure the administration and enforcement of water rights and the State Water Project. Authority and enforcement over water rights would be moved from the State Water Resources Control Board and housed under the Department of Water Resources (DWR) with enforcement proceedings conducted separately by the Office of Administrative Hearings. DWR’s current authority and water rights underlying the State Water Project would be transferred to a new State Water Project Authority to eliminate the conflict of DWR both administering and enforcing water rights while simultaneously possessing water rights of its own. 10. Monitor Cap and Trade. There is a potential plan outlined in the Governor’s proposed State Budget to advance the cap/trade (greenhouse gas-reduction program) auction process in the coming year to secure approximately $2.2 billion in auction revenues available for programs. The proposed State Budget identifies a very small portion of that $2.2 billion for energy efficiency and water use efficiency ($27.5 million). 11. Monitor the California WaterFix. There may be a bill or two that emerges on the WaterFix project. The Legislature has indicated it will assert an oversight role by scheduling two informational hearings on the project for February. 12. Monitor advancement of robust state funding opportunities through a general obligation bond measure, or similar state funding instrument, to address outstanding state settlement obligations, including Salton Sea restoration and implementation of the Quantification Settlement Agreement. The Water Authority plans to sponsor this proposal and their approach requires extensive outreach to other directly affected interests, and development of a broad coalition to advance a general obligation bond funding approach. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: VARIOUS DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Informational Item – Second Quarter Fiscal Year 2017 Capital Improvement Program Report GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Board about the status of all CIP project expenditures and to highlight significant issues, progress, and milestones on major projects. ANALYSIS: To keep up with growth and to meet our ratepayers' expectations to adequately deliver safe, reliable, cost-effective, and quality water, each year the District staff prepares a Six-Year CIP Plan that identifies the District’s infrastructure needs. The CIP is comprised of four categories consisting of backbone capital facilities, replacement/renewal projects, capital purchases, and developer's reimbursement projects. The Second Quarter Fiscal Year 2017 update is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget of $10.7 million. Expenditures through the Second Quarter totaled approximately $4.2 million. Approximately 39% of the Fiscal Year 2017 expenditure budget was spent (see Attachment B). FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. STRATEGIC GOAL: The Capital Improvement Program supports the District’s Mission statement, “To provide high quality and reliable water and wastewater services to the customers of the Otay Water District, in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is innovative in providing water services at competitive rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM/RP: P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2017\Q2\Staff Report\BD 03-01-17 Staff Report Second Quarter FY 2017 CIP Report (DM-RP).docx Attachments: Attachment A – Committee Action Attachment B - Fiscal Year 2017 Second Quarter CIP Expenditure Report Attachment C – Presentation ATTACHMENT A SUBJECT/PROJECT: VARIOUS Informational Item – Second Quarter Fiscal Year 2017 Capital Improvement Program Report COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a Committee Meeting held on February 14, 2017, and the following comments were made: Staff reviewed the PowerPoint presentation with the Committee and indicated that the expenditures through the second quarter of FY 2017 totaled $4.2 million, which is about 39% of the District’s fiscal year budget. Staff noted that the 39% is on track based on the District’s Strategic Plan that indicates a 36% target for CIP Project Expenditures vs. Budget. Staff indicated that the District’s FY 2017 CIP budget consists of 89 projects that total $10.7 million and is divided into four categories: o Capital Facilities= $3.8 million o Replacement/Renewal= $5.8 million o Capital Purchases= $1.1 million o Developer Reimbursement= $14.0 thousand The PowerPoint presentation included the following: o Total Life-to-Date Expenditures o CIP Budget Forecast vs. Expenditures o Major CIP Projects o CIP Projects in Construction o Construction Contract Status of projects, contract amount with allowances, net change orders, and percent of project completion o Consultant Contract Status of contract amounts, approve payments to date, change orders, dates when contracts were signed and the end date of contracts Staff stated that during the second quarter of FY 2017 the rate for Change Orders with Allowance Credit equaled to -2.4%. The Committee inquired about the difference between closed- circuit television (CCTV) inspection and electromagnetic inspection. Staff stated that CCTV is a visual indicator that reports issues and is primarily used on the District’s sewer main. The electromagnetic inspection has a completely different purpose than CCTV in that it measures the wall thickness of a steel main and provides specific information about the integrity of the main that can aid in predicting the life of the District’s steel pipeline assets. In response to a comment and question from the Committee, staff stated that more funding is available this fiscal year due to an increase in sales. The available funding allows the District to accelerate several CIP projects, such as the Hillsdale Road 12-Inch Pipeline Replacement, Hillsdale Road Sewer Repairs, and Automatic Meter Reader Change Out Projects. The Committee inquired about projects that are placed on hold in FY 2017 as indicated in Attachment B of the staff report, specifically the Res – 657-1 and 657-2 Reservoir Demolitions Project (P2584). Staff stated that this project was placed on hold for FY 2017 as it is still in good condition and has not reached the end of its useful life. The District will continue to utilize these Reservoirs until the cost to maintain them significantly increases. At that time, they will be taken out of service. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an informational item. FISCAL YEAR 2017 2nd QUARTER REPORT (Expenditures through 12/31/2016) ($000) 2017 12/31/16 CIP No.Description Project Manager FY 2017 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget % Comments CAPITAL FACILITY PROJECTS - P2040 Res - 1655-1 Reservoir 0.5 MG Cameron 20$ 1$ 19$ 5%3,400$ 486$ 2,914$ 14% Review of the previous environmental documents to begin FY 2017 Q3. P2267 36-Inch Main Pumpouts and Air/Vacuum Ventilation Installations Marchioro 220 26 194 12%735 485 250 66% Design completed FY 2017 Q1. Construction to begin in FY 2017 Q3. On track. P2382 Safety and Security Improvements Payne 250 175 75 70%2,811 2,749 62 98%On schedule for completion June 30, 2017. P2405 PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road Cameron 5 - 5 0%570 - 570 0%Tied to CIP P2553. P2451 Otay Mesa Desalination Conveyance and Disinfection System Kennedy 50 120 (70) 240%3,875 3,689 186 95% EIR/EIS complete. Work on Bio-monitoring agreement with DOS, meetings with DDW and AdR, and source water testing ongoing. P2453 SR-11 Utility Relocations Marchioro 250 1 249 0%4,000 1,599 2,401 40% Sequence/Segment 1 construction accepted FY 2016 Q4. In one year warranty period. Caltrans would like to complete design for Segment 2 to border crossing by end of 2017 calendar year. P2460 I.D. 7 Trestle and Pipeline Demolition Beppler 50 - 50 0%600 5 595 1% With wet weather being experienced, will explore feasibility of performing environmental report that will be required with any demolition work and site access. P2466 Regional Training Facility Coburn-Boyd 6 - 6 0%300 288 12 96%Project on hold. P2485 SCADA Communication System and Software Replacement Kerr 85 32 53 38%2,014 1,699 315 84% Project on schedule for expenditures totaling $55K by end of FY 2017. P2486 Asset Management - Info Master Water Implementation Zhao 25 - 25 0%957 879 78 92%Anticipate expenditure in FY 2017 Q4. P2494 Multiple Species Conservation Plan Coburn-Boyd 48 3 45 6%950 857 93 90%Expect to use all of budget later this Fiscal Year. P2496 Otay Lakes Road Utility Relocations Martin 5 - 5 0%325 283 42 87%Project accepted FY 2016 Q4. P2504 Regulatory Site Access Road and Pipeline Relocation Cameron 20 - 20 0%900 330 570 37%Project is driven by County Fire. P2516 PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage Marchioro - - - 0%800 - 800 0%On hold for FY 2017. P2520 Motorola Mobile Radio Upgrade Martinez 30 3 27 10%120 81 39 68% We are continuing with the purchases of radios in QTR 3 and 4, however, we changed out supplier due to slow performance. Therefore, expenses may be delayed to FY 2018. P2521 Large Meter Vault Upgrade Program Carey 100 - 100 0%400 219 181 55%Work is scheduled to begin FY 2017 Q3. P2537 Operations Yard Property Acquisition Improvements Beppler 10 3 7 30%775 731 44 94% Construction project accepted FY 2016 Q4. In one year warranty period. P2541 624 Pressure Zone PRSs Marchioro 10 (1) 11 -10%760 741 19 98% Construction project accepted FY 2016 Q4. In one year warranty period. P2547 District Administration Vehicle Charging Stations Cameron 85 3 82 4%125 22 103 18%On track. P2550 Fuel Island Upgrade Payne 112 106 6 95%112 106 6 95%In close out. Final test due in 3 months. P2551 Blossom Lane Helix WD and Otay WD Interconnection Beppler 20 7 13 35%210 175 35 83% Implementation of SCADA and warranty period of completed construction. Budget on track. P2552 South Barcelona Helix WD and Otay WD Interconnection Beppler 20 7 13 35%210 171 39 81% Implementation of SCADA and warranty period of completed construction. Budget on track. P2553 Heritage Road Bridge Replacement and Utility Relocation Cameron 100 2 98 2%1,430 7 1,423 0% City of Chula Vista driven project. The City is finalizing their environmental documents. Design to begin Summer/Fall 2017. P2564 Administration Carpet Replacement Program Payne 5 - 5 0%215 - 215 0%To be completed June 30, 2017. P2568 Technology Business Processes Improvement Kerr 180 121 59 67%215 146 69 68% Anticipate consumption of allocated budget by end of FY 2017. P2569 Metro Ethernet Implementation/ District Facilities - Pilot Kerr 45 47 (2) 104%145 153 (8) 106% Unanticipated expenditures were assigned during this quarter. Will request additional funding to complete project targeted for Q1 FY 2018. P2570 SCADA Equipment & Infrastructure Enhancement Kerr 100 2 98 2%300 2 298 1%No expenditures anticipated in FY 2017. P2571 Datacenter Network Enhancement & Replacement of Infrastructure Componets Kerr - - - 0%200 - 200 0%No expenditures allocated for FY 2017. P2572 Enterprise Resource Planning (ERP) Replacement Kerr - - - 0%500 - 500 0%No expenditures allocated for FY 2017. P2584 Res - 657-1 and 657-2 Reservoir Demolitions Marchioro - - - 0%720 - 720 0%On hold for FY 2017. R2077 RecPL - 24-Inch, 860 Zone, Alta Road - Alta Gate/Airway Beppler 20 3 17 15%2,852 2,814 38 99% Under construction. Completion anticipated in FY 2017 Q3. R2079 RecPL - 6-Inch, 450 Zone, Otay Valley Road - Otay Valley/Entertainment Beppler 10 - 10 0%150 - 150 0%No activity to date. R2109 Sweetwater River Wooden Trestle Improvement for the Recycled Water Forcemain Beppler 10 - 10 0%375 353 22 94% Construction project accepted FY 2016 Q2. In one year warranty period. R2110 RecPS - 944-1 Optimization and Pressure Zone Modifications Marchioro 5 - 5 0%200 130 70 65% Construction project accepted FY 2016 Q4. In one year warranty period. R2116 RecPL - 14-Inch, 927 Zone, Force Main Improvements Marchioro 1,000 497 503 50%2,500 1,153 1,347 46%Construction began FY 2017 Q1. On track. FISCAL YEAR-TO-DATE, 12/31/16 LIFE-TO-DATE, 12/31/16 P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2017\Q2\Expenditures\Copy of FY17 2nd qtr exp-FINAL_djm.xlsx Page 1 of 4 2/3/2017 FISCAL YEAR 2017 2nd QUARTER REPORT (Expenditures through 12/31/2016) ($000) 2017 12/31/16 CIP No.Description Project Manager FY 2017 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget % Comments FISCAL YEAR-TO-DATE, 12/31/16 LIFE-TO-DATE, 12/31/16 R2117 RWCWRF Disinfection System Improvements Beppler 10 - 10 0%1,520 111 1,409 7% Awaiting completion of force main assessment to determine what improvements to perform. R2118 Steele Canyon Sewer PS Large Solids Handling Improvements Beppler 68 17 51 25%75 22 53 29% Design is complete. Will need to coordinate construction with a shutdown of WRF. R2119 RWCWRF Automation & Security Upgrades Beppler 95 51 44 54%300 84 216 28% Master Plan is complete. Advertisement and selection process of an as-needed consultant to be initiated in FY 2017 Q3. R2120 RWCWRF Filtered Water Storage Tank Improvements Beppler 250 17 233 7%500 17 483 3% Design is in progress, though it has been delayed by higher priority projects. Do not see majority of construction activities occurring this fiscal year. R2122 Emergency Recycled Water Fire Hydrant Installations Cameron 15 1 14 7%75 33 42 44%Project was completed in FY 2017 Q1. R2123 Repurpose Otay Mesa Recycled Water Lines Beppler 35 - 35 0%350 - 350 0%No activity on this project to date. R2124 RecPS - 927-1 Pump 5 Replacement Anderson 55 1 54 2%55 1 54 2% We anticipate the replacement of this pump will be completed at the beginning of the 3rd quarter. We will be under budget for this account. S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Beppler 150 - 150 0%2,420 1,020 1,400 42%County project. Costs are invoiced annually. S2027 Rancho San Diego Pump Station Rehabilitation Beppler 50 1 49 2%3,500 301 3,199 9%County project. Costs are invoiced annually. S2033 Sewer System Rehabilitation Beppler 200 922 (722) 461%3,000 2,922 78 97% Rancho San Diego Sewer Rehab Phase 1 completed in FY 2017 Q2, awaiting as-built preparation. Project in one year warranty period. Project within overall budget. S2043 RWCWRF Sludge Handling System Beppler 1 - 1 0%47 40 7 85% Will revisit report - considering available Metro Pure Water budget in Q4. S2047 Asset Management - Info Master Sewer Implementation Zhao - - - 0%58 - 58 0%No expenditures for FY 2017. Total Capital Facility Projects Total:3,825 2,168 1,657 57%46,651 24,904 21,747 53% REPLACEMENT/RENEWAL PROJECTS P2083 PS - 870-2 Pump Station Replacement Marchioro 390$ 242 148 62%17,000$ 1,906 15,094 11%Current fiscal year spending on track. P2174 PS - 1090-1 Pump Station Replacement (400 gpm)Marchioro 1 - 1 0%1,500 4 1,496 0%On hold for FY 2017. P2400 PL - 20-Inch Pipeline Replacement, 711 Zone, Otay Lakes Road - at Santa Paula Marchioro - - - 0%2,000 - 2,000 0%On hold for FY 2017. P2493 624-2 Reservoir Interior/Exterior Coating Cameron 60 7 53 12%1,675 1,550 125 93% Expenditures expected in FY 2017 Q3 & Q4 for warranty work. Delayed due to CWA shutdown. P2507 East Palomar Street Utility Relocation Cameron 120 3 117 3%940 720 220 77%Invoice to be issued to Caltrans in Q3 FY 2017. P2508 Pipeline Cathodic Protection Replacement Program Marchioro 300 15 285 5%725 265 460 37% Construction began FY 2017 Q1. However, fiscal year expenses will likely fall behind since contractor will not finish before close of environmental window due to heavy rains. P2518 803-3 Reservoir Interior/Exterior Coating Cameron 40 3 37 8%700 648 52 93% 2 year warranty repairs to be completed in FY 2017 Q3. P2519 832-2 Reservoir Interior/Exterior Coating Cameron 65 7 58 11%750 676 74 90% 2 year warranty repairs were completed in FY 2017 Q2. P2529 711-2 Reservoir Interior & Exterior Coating Cameron 360 441 (81) 123%840 801 39 95% Construction completed FY 2017 Q2. Project is in the 2 year warranty period. P2530 711-1 Reservoir Interior & Exterior Coating Cameron 90 44 46 49%1,040 949 91 91% Construction completed FY 2017 Q2. Project is in the 2 year warranty period. P2531 944-1 Reservoir Interior & Exterior Coating Cameron 50 7 43 14%410 317 93 77% Construction contract completed FY 2016 Q4. Currently in two year warranty period. P2532 944-2 Reservoir Interior & Exterior Coating Cameron 50 - 50 0%1,050 937 113 89% Construction contract completed FY 2016 Q4. Currently in two year warranty period. P2533 1200-1 Reservoir Interior & Exterior Coating Cameron 10 1 9 10%810 1 809 0%Planning anticipated to begin FY 2017 Q3. P2534 978-1 Reservoir Interior & Exterior Coating Cameron 615 40 575 7%715 40 675 6%Construction began in FY 2017 Q2. On track. P2535 458-2 Reservoir Interior & Exterior Coating & Upgrades Cameron 50 - 50 0%885 774 111 87% Construction contract completed FY 2016 Q4. Currently in two year warranty period. P2538 Administration and Operations Building Fire Sprinkler Replacement Program Cameron 10 1 9 10%110 89 21 81% Project was completed in late FY 2016. No expenditures are anticipated, unless for warranty work at one year. P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations Cameron 100 6 94 6%1,090 885 205 81% SANDAG driven project. Spending will increase in FY 2017 Q4. P2542 850-3 Reservoir Interior Coating Cameron 50 - 50 0%630 527 103 84% Construction contract completed FY 2016 Q2. Currently in two year warranty period. P2543 850-1 Reservoir Interior/Exterior Coating Cameron 10 - 10 0%875 - 875 0%Planning anticipated to begin in FY 2017 Q3. P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2017\Q2\Expenditures\Copy of FY17 2nd qtr exp-FINAL_djm.xlsx Page 2 of 4 2/3/2017 FISCAL YEAR 2017 2nd QUARTER REPORT (Expenditures through 12/31/2016) ($000) 2017 12/31/16 CIP No.Description Project Manager FY 2017 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget % Comments FISCAL YEAR-TO-DATE, 12/31/16 LIFE-TO-DATE, 12/31/16 P2544 850-2 Reservoir Interior/Exterior Coating Cameron 835 39 796 5%1,070 39 1,031 4%Construction to begin in FY 2017 Q3. On track. P2545 980-1 Reservoir Interior Exterior Coating Cameron 290 169 121 58%1,455 1,166 289 80% Construction completed FY 2017 Q2. Project is in the 2 year warranty period. P2546 980-2 Reservoir Interior/Exterior Coating Cameron - - - 0%1,450 - 1,450 0%No expenditures for FY 2017. P2555 Administration and Operations Parking Lot Improvements Cameron 275 21 254 8%500 69 431 14% Design anticipated to be complete in January 2017. Project will be bid in February, 2017. Construction anticipated to begin in May 2017. P2557 520 Res Recirculation Pipeline Chemical Supply and Analyzer Feed Replacement Project Beppler 50 20 30 40%100 30 70 30% Design in progress. Construction expected to be completed this fiscal year within budget. P2559 Pressure Vessel Repair and Replacement Program Marchioro 65 77 (12) 118%650 124 526 19% RWCWRF surge tank installed FY 2017 Q2. In- house forces to complete piping in FY 2017 Q3. On track. P2561 Res - 711-3 Reservoir Cover/Liner Replacement Marchioro 1 4 (3) 400%1,800 5 1,795 0% Existing cover/liner materials analyzed by laboratory FY 2017 Q1. On track. P2562 Res - 571-1 Reservoir Cover/Liner Replacement Marchioro 90 20 70 22%2,600 20 2,580 1% Project on pace with 870-2 Pump Station Replacement (see P2083 above); however, fiscal year expenses may be 50% of target since design phase more efficient than anticipated. P2563 Res - 870-1 Reservoir Cover/Liner Replacement Marchioro 1 3 (2) 300%1,000 3 997 0% Existing cover/liner materials analyzed by laboratory FY 2017 Q1. On track. P2565 803-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%940 - 940 0%No expenditures for FY 2017. P2566 520-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%1,500 - 1,500 0%No expenditures for FY 2017. P2567 1004-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%905 - 905 0%No expenditures for FY 2017. P2573 PL - 12-Inch Pipeline Replacement, 803 Zone, Hillsdale Road Beppler 160 102 58 64%1,750 102 1,648 6% Project ahead of schedule, currently at 90% design, plan to advertise in Q3 and award construction contract in Q4. P2574 PL - 12-Inch and 14-inch Pipeline Replacement, 803 and 978 Zone, Vista Grande, Pence Drive Beppler 50 - 50 0%2,750 - 2,750 0% Define scope of work and select designer planned for Q3. P2578 PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 gpm Marchioro - - - 0%6,600 - 6,600 0%On hold for FY 2017. P2579 Temporary Lower Otay Pump Station Improvements Beppler 140 - 140 0%140 - 140 0%No activity to date. P2592 East H Street Bike Lane Utility Coordination Beppler 50 - 50 0%50 - 50 0%No activity to date. P2593 458-1 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%840 - 840 0%No expenditures for FY 2017. P2594 Large Meter Replacement Carey 240 140 100 58%485 140 345 29%On track. R2111 RWCWRF - RAS Pump Replacement Beppler 10 - 10 0%570 555 15 97% Construction project accepted FY 2016 Q3. Project is in one year warranty period. R2112 450-1 Disinfection Facility Rehabilitation Cameron 25 - 25 0%265 214 51 81%One year warranty completed FY 2017 Q1. R2121 Res - 944-1 Reservoir Cover/Liner Replacement Marchioro 1 - 1 0%1,400 19 1,381 1%On hold for FY 2017. S2024 Campo Road Sewer Main Replacement Beppler 50 43 7 86%8,500 1,158 7,342 14% Project to exceed budget for easement acquisitions. Construction to advertize in FY 2017 Q3. S2044 Trenchless Sewer Rehabilitation Beppler 560 69 491 12%610 69 541 11% Design to be completed in FY 2017 Q2. Constructon to advertize in FY 2017 Q3 and begin construction. S2045 Fuerte Drive Sewer Relocation Beppler 190 2 188 1%200 2 198 1% County driven project is behind schedule. Likely only design costs will be spent this fiscal year. S2046 RWCWRF - Aeration Panels Replacement Beppler 250 69 181 28%450 69 381 15% Additional analysis to be provided on alternative aeration systems. Consultant to be selected in Q3 and initiation of report to begin in Q4. Temporary panel replacements purchased in Q2, with permanent panel replacements to begin in FY 2018. S2048 Hillsdale Road Sewer Repairs Beppler 100 26 74 26%500 26 474 5% Design in progress. Project on schedule for budgeted amount. S2049 Calavo Basin Sewer Rehabilitation - Phase 2 Beppler 20 - 20 0%1,000 - 1,000 0% Planning phase, no activity expected until FY 2017 Q3. S2050 Rancho San Diego Basin Sewer Rehabilitation - Phase 2 Beppler - - - 0%300 - 300 0%No expenditures for FY 2017. S2051 RWCWRF - Headworks Improvements Beppler - - - 0%750 - 750 0%No expenditures for FY 2017. S2052 RWCWRF - Access Roads Repaving Cameron - - - 0%750 - 750 0%No expenditures for FY 2017. S2053 RWCWRF - Sedimentation Basins Refurbishment Beppler - - - 0%600 - 600 0%No expenditures for FY 2017. S2054 Calavo Basin Sewer Rehabilitation - Phase 3 Beppler - - - 0%300 - 300 0%No expenditures for FY 2017. Total Replacement/Renewal Projects Total:5,824 1,621 4,203 28%76,525 14,899 61,626 19% P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2017\Q2\Expenditures\Copy of FY17 2nd qtr exp-FINAL_djm.xlsx Page 3 of 4 2/3/2017 FISCAL YEAR 2017 2nd QUARTER REPORT (Expenditures through 12/31/2016) ($000) 2017 12/31/16 CIP No.Description Project Manager FY 2017 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget % Comments FISCAL YEAR-TO-DATE, 12/31/16 LIFE-TO-DATE, 12/31/16 CAPITAL PURCHASE PROJECTS P2282 Vehicle Capital Purchases Rahders 197$ - 197 0%5,049$ 3,636 1,413 72% Currently $58,750 encumbered against this account. Staff anticipates 100% expensed during FY 2017. P2285 Office Equipment and Furniture Capital Purchases Payne 15 2 13 13%589 554 35 94%Purchases to be completed by June 30, 2017. P2286 Field Equipment Capital Purchases Rahders 38 14 24 37%1,634 1,372 262 84% $14.1K was for unanticipated expense at the treatment plant. A pump failed which was purchased from this account. We still have $38K budgeted for a generator. P2366 APCD Engine Replacements and Retrofits Rahders 820 346 474 42%3,371 2,897 474 86% Have encumbered $627,313 so far FY 2017. Anticipate an additional $15,000 in Q3 FY 2017. - Total Capital Purchase Projects Total:1,070 362 708 34%10,643 8,459 2,184 79% DEVELOPER REIMBURSEMENT PROJECTS P2325 PL-10" to 12" Oversize, 1296 Zone, PB Road-Rolling Hills Hydro PS/PB Bndy Beppler 3$ - 3 0%22$ 19 3 86%Reimbursement completed FY 2016 Q3. P2403 PL - 12-inch, 624 Zone, Heritage Road - Olympic/Otay Valley Beppler - - - 0%550 - 550 0% CIP being updated to reflect changes in Village 3 SAMP and Water Facilities Master Plan. P2556 HWY 94 Upsized Utility Relocations at Melody Lane Beppler 1 - 1 0%100 - 100 0%No work is anticipated on the project for FY 2017. R2084 RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media Beppler 10 - 10 0%365 1 364 0% Under construction in FY 2017 Q2. Request for reimbursement anticipated FY 2017 Q4. Total Developer Reimbursement Projects Total:14 - 14 0%1,037 20 1,017 2% 107 10,733$ 4,151$ 6,582$ 39%134,856$ 48,282$ 86,574$ 36% P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2017\Q2\Expenditures\Copy of FY17 2nd qtr exp-FINAL_djm.xlsx Page 4 of 4 2/3/2017 Otay Water District Capital Improvement Program Fiscal Year 2017 Second Quarter (through December 31, 2016) Attachment C 14-Inch Force Main Rehabilitation (R2116) -Vault Excavation 12/21/2016 Background The approved CIP Budget for Fiscal Year 2017 consists of 89 projects that total $10.7 million. These projects are broken down into four categories. 1.Capital Facilities $ 3.8 million 2.Replacement/Renewal $ 5.8 million 3.Capital Purchases $ 1.1 million 4.Developer Reimbursement $ 14.0 thousand Overall expenditures through the Second Quarter of Fiscal Year 2017 totaled $4.2 million, which is approximately 39% of the Fiscal Year budget. 2 Fiscal Year 2017 Second Quarter Update ($000) CIP CAT Description FY 2017 Budget FY 2017 Expenditures % FY 2017 Budget Spent Total Life-to- Date Budget Total Life-to-Date Expenditures % Life-to- Date Budget Spent 1 Capital Facilities $3,825 $2,168 57%$46,651 $24,904 53% 2 Replacement/ Renewal $5,824 $1,621 28%$76,525 $14,899 19% 3 Capital Purchases $1,070 $362 34%$10,643 $8,459 79% 4 Developer Reimbursement $14 $0 0%$1,037 $20 2% Total: $10,733 $4,151 39%$134,856 $48,282 36% 3 Fiscal Year 2017 Second Quarter CIP Budget Forecast vs. Expenditures 4 $10,733,000 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FISCAL YEAR PERIOD IN MONTHS Budget Forecast Total Expenditures $4,151,000 5 CIP Projects in Construction 14-Inch Force Main Rehabilitation (R2116/P2508) Replace force main blow-offs, valves, and piping at 15 locations. Rehabilitate force main’s cathodic protection system. Increase Service Life. $2.50M Budget Start: August 2016 Estimated Completion: February 2017 6 14-Inch Force Main Blow Off No. 2 –Installation Location: From RWCWRF, Spring Valley to area North of Salt Creek Golf Course, Chula Vista Division No. 3 12/28/2016 CIP Projects in Construction 7 RWCWRF Surge Tank – Installation on new foundation RWCWRF Replacement Surge Tank Foundation (P2559) RWCWRF Surge Tank – Crane Operations to Install Surge Tank Surge Tank Location 12/23/2016 12/23/2016 CIP Projects in Construction 8 14-Inch Force Main Inspection – Sweetwater River Trestle Bridge RWCWRF 14-Inch Force Main Inspection and Condition Assessment (R2116) PICA Remote Field Eddy Current SeeSnake tool – Electromagnetic Inspection 12/08/2016 12/12/2016 Inspection/ Condition Assessment Location CIP Projects in Construction Rancho San Diego Basin Sewer Rehabilitation –Phase 1 (S2033-003103) Sewer system repairs at 14 locations 3,178 LF of 8-inch sewer 4 new sewer manholes $3.00M Budget Start: March 2016 Completion: November 2016 9 Final Pavement Restoration –Burris Drive (Site 773) Division No. 5 Locations: 14 locations including Hillsdale Road, Donahue Drive, Juliana Street, Vista Grande Road, and Sundale Road. 11/09/2016 Construction Contract Status 10 PROJECT TOTAL % P2529 P2530 711-1 &711-2 Reservoir Interior/Exterior Coating & Upgrades Advanced Industrial Services, Inc.$1,103,715 $1,195,695 $14,271 1.3%$1,209,966 $1,209,966 1.2%100.0% Completed September 2016 P2545 980-1 Reservoir Interior/Exterior Coating & Upgrades Advanced Industrial Services, Inc.$769,000 $876,500 $8,115 1.1%$884,615 $884,615 0.9%100.0% Completed August 2016 S2033 Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Transtar $951,470 $970,970 $81,619 8.6%$1,036,756 $883,757 6.8%85.2% Completed November 2016 P2267 36-Inch La Presa Air- Vac Valve Relocations Underground Pipeline Solutions Inc. $148,815 $157,315 $0 0.0%$148,815 $0 -5.4%0.0%April 2017 P2534 P2544 978-1 & 850-2 Reservoir Interior/Exterior Coating & Upgrades Blastco Inc.$963,280 $1,106,200 $0 0.0%$963,280 $0 -12.9%0.0%June 2017 P2559 RWCWRF Replacement Surge Tank Foundation Fordyce Construction Inc.$22,591 $32,591 $0 0.0%$22,591 $22,591 -30.7%100.0%January 2017 P2508 R2116 14-Inch Force Main Rehabilitation Project Charles King Company Inc.$1,045,100 $1,101,250 $0 0.0%$1,045,100 $529,810 -5.1%50.7%February 2017 TOTALS:$5,003,971 $5,440,521 $104,004 2.1%$5,311,122 $3,530,738 -2.4% FY 2017 CIP CONSTRUCTION PROJECTS CURRENT CONTRACT AMOUNT TOTAL EARNED TO DATE **THIS CHANGE ORDER RATE INCLUDES THE CREDIT FOR UNUSED ALLOWANCES *NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT CIP NO.PROJECT TITLE CONTRACTOR BASE BID AMOUNT CONTRACT AMOUNT W/ ALLOWANCES % CHANGE ORDERS W/ ALLOWANCE CREDIT** % COMPLETE EST. COMP. DATE NET CHANGE ORDERS LTD* Consultant Contract Status Consultant CIP No.Project Title Original Contract Amount Total Change Orders Revised Contract Amount Approved Payment To Date % Change Orders % Project Complete Date of Signed Contract End Date of Contract PLANNING ATKINS Varies 2015 WATER FACILITIES MASTER PLAN UPDATE $ 434,731.00 $ - $ 434,731.00 $ 375,972.44 0.0%86.5%1/28/2014 6/30/2017 WATER SYSTEMS CONSULTING INC VARIES AS-NEEDED HYDRAULIC MODELING FY15/16 $ 175,000.00 $ - $ 175,000.00 $ 124,166.50 0.0%71.0%7/15/2014 6/30/2017 DESIGN AECOM P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (DESIGN ENGINEER) $ 3,910,297.00 $(109,434.00) $ 3,800,863.00 $1,406,451.61 -2.8%37.0%1/6/2011 6/30/2018 ARCADIS U.S. INC VARIES AS-NEEDED DESIGN FY 15-16 $ 300,000.00 $ - $ 300,000.00 $ 237,610.12 0.0%79.2%9/11/2014 6/30/2017 BROWNSTEIN HYATT FARBER SCHRECK P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 100,000.00 $ - $ 100,000.00 $ 61,814.50 0.0%61.8%7/1/2015 6/30/2017 BSE ENGINEERING INC Varies AS-NEEDED ELECTRICAL SERVICES $ 100,000.00 $ - $ 100,000.00 $ 66,402.21 0.0%66.4%7/1/2012 6/30/2017 CAROLLO ENGINEERS INC P2083 DESIGN/CONSTRUCTION FOR 870-2 PS $ 624,910.00 $ 178,200.00 $ 803,110.00 $ 579,899.09 28.5%72.2%10/11/2013 12/31/2017 HDR ENGINEERING INC Varies CORROSION SERVICES FY14-FY16 $ 684,750.00 $ 45,000.00 $ 729,750.00 $ 653,244.88 6.6%89.5%11/22/2013 6/30/2017 LATITUDE 33 P1210 SALT CREEK GOLF COURSE STUDY $ 9,000.00 $ 9,000.00 $ 9,000.00 0.0%100.0%4/20/2016 12/31/2016 COMPLETED MICHAEL D.KEAGY REAL ESTATE Varies AS-NEEDED APPRAISAL SERVICES $ 45,000.00 $ - $ 45,000.00 $ 10,025.00 0.0%22.3%9/13/2016 6/30/2018 NINYO & MOORE Varies GEOTECHNICAL SERVICES $ 175,000.00 $ - $ 175,000.00 $ 83,578.88 0.0%47.8%4/9/2015 6/30/2018 PIPELINE INSPECTION & CONDITION ANALYSIS CORPORATION R2116 INSPECTION AND CONDITION ASSESSMENT OF THE RALPH W. CHAPMAN WATER RECYCLING FACILITY 14-INCH FORCE MAIN $ 302,092.00 $ (21,165.00) $ 280,927.00 $ 105,500.00 -7.0%37.6%12/18/2014 4/30/2017 PSOMAS VARIES AS-NEEDED DESIGN FY 15-16 $ 300,000.00 $ - $ 300,000.00 $ 42,775.58 0.0%14.3%9/11/2014 6/30/2017 PSOMAS Varies AS-NEEDED DESIGN FY 17-18 $ 500,000.00 $ 500,000.00 $ 88,912.56 0.0%17.8%7/1/2016 6/30/2018 Consultant Contract Status 12 RFYEAGER Varies AS-NEEDED CORROSION ENGINEERING AND RESERVOIR COATING INSPECTION $ 175,000.00 $ - $ 175,000.00 $ 164,136.50 0.0%93.8%2/9/2015 12/31/2017 RICK ENGINEERING COMPANY S2024 CAMPO ROAD SEWER MAIN REPLACEMENT PROJECT $ 805,705.00 $ - $ 805,705.00 $ 688,446.57 0.0%85.4%5/27/2014 12/31/2017 RICK ENGINEERING COMPANY Varies TRAFFIC ENGINEERING SERVICES FY 16-18 $ 175,000.00 $ - $ 175,000.00 $ 38,693.88 0.0%22.1%7/1/2015 6/30/2018 RICK ENGINEERING COMPANY Varies AS-NEEDED DESIGN FY 17-18 $ 500,000.00 $ 500,000.00 $ 14,212.50 0.0%2.8%7/1/2016 6/30/2018 CONSTRUCTION SERVICES AIRX UTILITY SURVEYORS Varies UTILITY LOCATING SERVICES FY 16-18 $ 350,000.00 $ 350,000.00 $ 122,788.00 0.0%35.1%10/12/2015 6/30/2018 ALYSON CONSULTING Varies CONSTRUCTION MGMT/INSPECTION FY 16-17 $ 350,000.00 $ (6,820.00) $ 343,180.00 $ 251,280.00 -1.9%73.2%7/1/2015 6/30/2017 CORRPRO COMPANIES INC Varies COATING INSPECTION FY 2016-2018 $ 175,000.00 $ 175,000.00 $ 78,544.25 0.0%44.9%1/7/2016 6/30/2018 HUNSAKER & ASSOCIATES Varies LAND SURVEYING FY16-18 $ 175,000.00 $ - $ 175,000.00 $ 48,758.00 0.0%27.9%1/20/2016 6/3/2018 MICHAEL BAKER INT'L INC P2083 870-2 PS CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES $ 853,457.00 $ - $ 853,457.00 $ 39,874.50 0.0%4.7%7/30/2014 12/31/2017 ENVIRONMENTAL HELIX ENVIRONMENTAL VARIES MAINTENANCE AND MONITORING OF THE SAN MIGUEL HABITAT MANAGEMENT AREA AND CIP ASSOCIATED MITIGATION PROJECTS $ 476,173.00 $ - $ 476,173.00 $ 232,319.20 0.0%48.8%12/19/2014 12/31/2017 ICF INTERNATIONAL JONES & STOKES INC VARIES AS-NEEDED ENVIRONMENTAL SERVICES FY 15/16/17 $ 375,000.00 $ - $ 375,000.00 $ 220,151.81 0.0%58.7%7/18/2014 6/30/2017 RECON P2494 PREPARATION OF THE SUBAREA PLAN $ 270,853.00 $ - $ 270,853.00 $ 238,561.36 0.0%88.1%3/28/2008 6/30/2018 WATER RESOURCES MICHAEL R. WELCH Varies ENGINEERING PLANNING SVCS. $ 100,000.00 $ - $ 100,000.00 $ 18,450.00 0.0%18.5%4/9/2014 6/30/2019 PUBLIC SERVICES AEGIS Varies AS-NEEDED DEVELOPER PROJECTS FY 15-16 $ 400,000.00 $ - $ 400,000.00 $ 236,202.94 0.0%59.1%2/12/2015 6/30/2017 TOTALS: $12,841,968.00 $ 85,781.00 $12,927,749.00 $6,237,772.88 0.7% Consultant CIP No.Project Title Original Contract Amount Total Change Orders Revised Contract Amount Approved Payment To Date % Change Orders % Project Complete Date of Signed Contract End Date of Contract QUESTIONS? 13 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Adolfo Segura Chief, Administrative & IT Services APPROVED BY: German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: FY17 MID-YEAR REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a mid-year status report on the District’s Fiscal Year (FY) 15-18 Strategic Performance Plan for FY17. ANALYSIS: Summary: The current Otay Water District Strategic Plan is a four-year plan covering FY15 through the end of FY18. This report details the results from the first half of the third year of our four-year plan. Strategic Plan Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is making the appropriate high-level changes necessary to guide the agency’s efforts to meet new challenges and positively adapt to change. Objective results for FY17 mid-year are above target at 93%, with 27 of 29 active items complete or on schedule. There are two additional 2 objectives, however, they were not added to the target formula given that they are inactive or “on hold”. 27/29 (93%) of Strategic Objectives Meet or Exceed Expectations Following are objectives reported to be behind schedule. These projects have been delayed due to workload priorities, however, we expect they will be back on schedule in the third quarter. Performance Measures – Target 75% Performance measures are designed to track the District’s day-to-day performance. These items measure the effectiveness and efficiency of daily operations. The goal for performance measures is to achieve an overall result of at least 75% “on target”. FY17 year-to-date results of active measures remain above target with 34 of 39 (87%) items achieving the desired level or better. There are four additional items, Injury Incident Rate, Debt Ratio, Reserve Levels, and Accounts per FTE, which will be added and measured at year’s end. Most of the performance measures are unchanged from FY16. Staff will strive to keep many measures the same in order to establish long term trends on important measures. 34 of 39 (87%) YTD Performance Measures Are On or Above Target 3 Item Not On Target The performance measures that are not on target are the following: Project Closeout Time: Contractor acceptance of 711-1 and 711-2 Reservoir Interior/Exterior Coating Project was delayed due to contractor completion of punch list items. Overtime Expenses: Year-to-date expenses exceeded the budget at $68,523 versus $61,200 due to a number of after-hours water breaks. Although over budget for the quarter, the District is still below its yearly total overtime budget of $123,900. Direct Cost of Treatment per MGD: The Reclamation Plant was not in service from September 2016 – January 2017 for scheduled repairs and inspections. Although there was no effluent flow production, there were still costs for repairs and replacements. Sewer Overflow Rate (AWWA): Staff responded to a sanitary sewer overflow on November 13, 2016 near Fair Glen Road in Rancho San Diego. Staff immediately worked to assess and mitigate the issue by clearing the blockage. The blockage was a result of root overgrowth inside a sewer manhole. Main Flushing and Fire Hydrant Maintenance: Proactive flushing was suspended due to the drought. The only flushing performed was requested by Water Systems Operators to maintain water quality. Due to the latest rainfall, staff will be in engaging on proactive flushing in the upcoming quarter. AWWA Benchmarking Perspective Although AWWA has begun to use “time” as an indicator for calculating benchmarks and metrics, the District will continue to use “cost” for its operational benchmarks. Staff will evaluate the “time” perspective as an option for future reporting. Committee Reports – Slideshow (Attachment B) The Strategic Plan results are presented to both the Finance and Administration Committee and the Engineering and Operations Committee with a specific focus on the most relevant information for each Committee. Strategic Plan is Available on the District’s Website and via VPN All of the Strategic Plan results and associated details are provided via the District’s public facing website and through secure remote or VPN access. 4 FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Strategic Plan FY17 Mid-Year Report PowerPoint Presentation 5 ATTACHMENT A SUBJECT/PROJECT: FY17 MID-YEAR REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN COMMITTEE ACTION: The Engineering, Operations and Water Resources Committees and Finance, Administration, and Communications reviewed this item at meetings held on February 14 and 15, 2017, respectively, and the following comments were made: Staff presented the Strategic Plan’s mid-year update and indicated that the District is currently in its third year (FY 2017) of the 4- year plan. Staff stated that three (3) years ago, one of the key elements to the strategic plan was to invest in new technology to increase automation and process improvement. The key to this asset management program is that it would provide for a long-term forcasting tool. Staff indicated that 93% (27 of 29) of the District’s “Objectives” are completed or on schedule. The target is 90%. The Committee requested a brief description of the completed objectives: o Address Dependency of Imported Water: This item discusses the three (3) planning documents for water resource planning: the Facilities Master Plan, the Integrated Resources Plan and the Urban Water Management Plan. o Sewer System Business Evaluation: Staff is researching the opportunity to partner with other agencies or to share equipment through agreements. o Evaluate the Viability of Implementing an Indirect Potable Reuse Program: Staff researched the opportunity for indirect potable water reuse with Sweetwater Authority and it was determined that it is not feasible at this time. Staff will continue to revisit this periodically as a possible opportunity. o Evaluate Efficiences for Delivering Capital Assets: Staff is researching how the District can streamline the delivery of capital assets and the potential tools to do so. 6 The Committee also requested a brief update on the objectives that are on hold: o Evaluate Requirements for Future Emergency Communications System: This is related to the District’s Daily and Emergency Radio Communication System. Staff will be commencing an evaluation of the system in FY 2018 to replace the existing system as the current system only has a few more years life expectancy. This system was used during the fires and electricity black out. o Implement a Habitat Conservation Plan that will Streamline O&M Within District Easement: Staff has been working with a consultant who is drafting an environmental study for future work planning in environmentally sensitive areas for future (20- 30 years) CIP projects. It was indicated that the District will soon receive the report, and the next step is for the report to be reviewed by the California Department of Fish and Wildlife Services. Staff indicated that the following two (2) objectives were behind schedule: o Optimize SCADA Progam and Streamline Input of Operations Data: Staff will be developing a three (3) to (5) year plan inline with the enhancement of the Asset Management Program. It is expected that both objectives will be back on track by the end of the 3rd quarter. The overall target for Performance Measures is 75%; the District’s current year-to-date results is 87%, or 34 of 39 measures, are on schedule. Staff noted that four (4) new performance measures will be included and measured at year’s end: Injury Incident Rate, Debt Ratio, Reserve Levels, and Accounts per FTE. Staff reviewed information in the staff report and the powerpoint presentation in detail. For the measurement of Percent of Customers Paying Bills Electronically, staff continues to gather data for this measure. Staff stated that last year, approximately 70% of the District’s customers paid their bills electronically. This year, the percentage is approximately 75% and continues to increase. The District’s percentage is higher compared to the industry which is approximately 65%. This is the first year of this metric and the District is already higher than the industry, so staff will have to work at developing a meaningful target at the end of the fiscal year. 7 The Committee inquired if the District has done an analysis of the cost of electronic payments versus other payments. It was indicated that staff does a cost analysis every quarter on all payment types. There is a large cost difference between an electronic payment from a bank account versus a check/cash payment in person. There are other payment types like credit card auto payments which cost a little more, but less than a mailed check or a payment in person. The Committee suggested that the District look at the cost savings if the District charged customers who are not paying their bills electronically. Staff indicated that they would look at these numbers and schedule the findings for a future meeting of the Committee. With regard to the System Valve Exercising Program, the Committee inquired about the number of valves within the District. Staff indicated that the District has approximately 20,000 valves and that the District’s goal is to exercise approximately 3,080 valves by the end of the fiscal year. The Committee also inquired about the target for the O&M Cost Per MG Processed of Wastewater and why it varied. Staff indicated that the Ralph Chapman Water Reclamation Facility (RCWRF) was not in service during the 2nd quarter (the treatment plant was taken down in September 2016 and will go back into service on February 16, 2017). Staff included in the cost to run the plant equipment costs, labor, etc. The cost per MGD through the 2nd quarter of the fiscal year is $1572.95. The cost have not been more than $1925/MGD per quarter in the past. The Committee requested if staff could provide the historical per MGD cost per quarter. This information will be provided at the ear-end Strategic Plan report which will show a multi-year graph showing historical trends. It was further discussed that during the treatment plant shutdown, staff has been doing maintenance work on the treatment plant, which include concrete crack repairs that cannot be done unless the treatment plant is offline. They also operate the water collection systems (lift stations, etc.) which are still active though the treatment plant is offline. The Committee suggested that staff review the cost analysis and prepare a brief of the possiblity of merging the District’s sewer system with the County of San Diego’s system. Staff will review it’s findings with the Committee. Following the discussion, the committees recommended presentation to the full board as an informational item. 1 STRATEGIC PLAN FY17 MID-YEAR REPORT Attachment B 2 Introduction 3 OWD Strategic Plan FY15 –FY18: The District’s Strategic Plan is developed with the Balanced Scorecard (BSC)strategic planning and management methodology,which is used and widely adopted by businesses across the globe.The BSC itself was developed by Kaplan and Norton and was originally published in 1992,in the Harvard Business Review.The model has evolved over time and is now in its third-generation.In brief,the BSC emphasizes alignment of business activities to the vision and strategy of the organization with goals and measures in four basic areas:financial,customer,business processes,and learning and growth. The District’s strategic plan is designed to track key organizational project objectives,and essential day- to-day performance measures.During FY17,staff continues to execute the completion of targeted projects and evaluate the potential to further streamline work-group processes and elevate performance metrics if warranted.Additional improvements to our Asset Management program will also be addressed via a recently developed multi-year strategic SCADA roadmap and a planned update to our decision analysis CIP management framework. 4 Deliver high quality services to meet and increase confidence of the customer 1.Increase customer confidence in the District 2.Improve and expand communications 3.Provide effective water services Manage the financial issues that are critical to the District 1.Improve financial information and systems 2.Maintain District financial strength Maximize efficiency and effectiveness 1.Actively manage water supply as well as support for water and sewer services 2.Identify and evaluate improvements to enterprise and departmental business processes Provide leadership and management expertise 1.Reinforce a results-oriented and accountable culture 2.Focus on achieving a lean flexible workforce Balanced Scorecard Strategies and Goals Customer Financial Business Processes Learning & Growth $$ 5AWWA Benchmarks 1 Technical Quality Complaint Potable Water Compliance Rate Collection System Integrity Sewer Overflow Rate 2 3 4 6Objectives 93% are Completed or On Schedule 0 5 10 15 20 25 Completed On Schedule Behind On Hold 4 23 2 2 Completed On Schedule Behind On Hold Objective Report 31 Total 7 COMPLETED Objectives 1.Address Dependency of Imported Water 2.Sewer System Business Evaluation 3.Evaluate the Viability of Implementing an Indirect Potable Reuse Program 4.Evaluate Efficiencies for Delivering Capital Assets 8 ON HOLD Objectives 1.Evaluate Requirements for Future Emergency Communication System 2.Implement a Habitat Conservation Plan that will Streamline O&M within District Easements 9Objectives 1.Optimize SCADA Program 2.Streamline Input of Operations Data BEHIND SCHEDULE 10Performance Measures 87% On Target Measure Report 43 Total 0 5 10 15 20 25 30 35 Completed On Target Not on Target On Hold Annual Measure 0 34 5 0 4 Completed On Target Not on Target On Hold Annual Measure 11Performance Measures 1.Project Closeout Time 2.Overtime Percentage 3.Direct Cost of Treatment per MGD 4.Sewer Overflow Rate 5.Main Flushing and Fire Hydrant Maintenance NOT ON TARGET 12 Mid-Year Results Administrative Services 13Gallons Per Capita Per Day Target: Below 172 gallons per day (Target comes from California Urban Water Control Council & the State Water Resources Control Board) Measurement Method QTR: Total potable water purchased/Population (from SANDAG)/Number of days through the end of the quarter YTD: Total annual potable water purchased/Annual population estimate from SANDAG/Number of days through the end of the quarter 135.5 107.2 121.3 172 172 172 172 172 0 20 40 60 80 100 120 140 160 180 200 Q1 Q2 Q3 Q4 YTD Result Target 14Enterprise Technology Services Availability Target: No less than 99.5%availability per quarter in a year 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 98 98.2 98.4 98.6 98.8 99 99.2 99.4 99.6 Q1 Q2 Q3 Q4 AVG Result Target Measurement Method Annual Average:99.5% = 3.60 hours of downtime per month/1.83 days of downtime in a year 15Employee Turnover Rate Target: Less than 5%turnover in a year 0 0 0 5 5 5 5 5 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 YTD Result Target QTR:# of voluntary resignations (not including retirements)/average # of employees Measurement Method YTD:YTD # of voluntary resignations (not including retirements)/average # of employees No turnovers in Q1 & Q2 16Training Hours Per Employee Target: 12 hours or more general formal training per employee in a year (excludes safety training) 6.35 6.55 12.85 3 3 3 3 12 0 2 4 6 8 10 12 14 Q1 Q2 Q3 Q4 YTD/AVG Result Target Measurement Method QTR:Total qualified training hours for all employees/average # of FTEs YTD:YTD Total qualified training hours for all employees/Average # of FTEs 17Safety Training Program Target: 24 hours or more safety training per field employee in a year 6.64 6.75 13.396666 24 0 5 10 15 20 25 30 Q1 Q2 Q3 Q4 YTD/AVG Result Target Measurement Method QTR:# of safety training hours for the quarter/ # of field employees YTD:YTD Total qualified safety training hours for field employees/average # of field employees 18 Engineering 19CIP Project Expenditures vs. Budget Target: 95% of budget but not to exceed 100%in a year Being below target gives the measure a “not on target” status Measurement Method OTR:Actual quarterly expenditures/Annual budget YTD:YTD expenditures/Annual budget 18.9 19.8 38.715 21 29 35 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target 20Construction Change Order Incidence (w/o allowances) Target: No more than 5%per quarter in a year 1.2 2.1 2.1 5 5 5 5 5 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 YTD Result Target *QTR and YTD result are the life to dare change order rates for all active projects in FY17 Measurement Method Total cost of Change Orders (not including allowances)/Total original construction contract amount (not including allowances) 21 Mark-Out Accuracy Target: No less than 100%mark-out accuracy per quarter in a year 100 100 100 100 100 100 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target Measurement Method # of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark- out/Total # of mark-outs performed 22Project Closeout Time Target: No more than a 45 day average per quarter in a year 0 48.5 48.5 45 45 45 45 45 0 10 20 30 40 50 60 Q1 Q2 Q3 Q4 YTD Result Target Measurement Method QTR:# of days between NOSC and NOC for all construction projects within the quarter/# of construction projects within the quarter YTD:YTD # of days between NOSC and NOC for all construction projects within the quarter/YTD # of construction projects within the quarter 23Annual Recycled Water Site Inspections Target: 100%of recycled sites inspected in a year (There are 147 recycled water use sites scheduled for FY17) Measurement Method Cumulative % of recycled sites inspected per quarter of those required by DEH 31.2 58.5 58.525 50 75 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target 24Recycled Water Shutdown Testing Target: No less than 90%of recycled site shut down tests in a year (There are 45 recycled water use sites due for shutdown in FY17) Measurement Method Cumulative % of recycled site shutdown tests performed per year compared to those scheduled 24 51 5122.5 45 67.5 90 90 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 YTD Result Target 25 Finance 26 Measurement Method QTR:# of all calls answered/ # of all calls received during a quarter YTD:YTD # of all calls answered/ YTD # of all calls received Answer Rate Target: No less than 97%average answer rate per quarter in a year 98.09 98.19 98.14 97 97 97 97 97 95 95.5 96 96.5 97 97.5 98 98.5 Q1 Q2 Q3 Q4 YTD Result Target 27 Measurement Method QTR:Total operations O&M costs/ # of accounts YTD:YTD total operations O&M costs/ # of accounts O&M Cost Per Account Target: Less than $540.00 per account in a single year (Target is based on Operating Budget) 117 137 254 120 141 140 139 540 100 150 200 250 300 350 400 450 500 550 Q1 Q2 Q3 Q4 YTD Result Target 28 Measurement Method QTR:# of correct bills during the reporting period/ # of total bills during the reporting period YTD:YTD # of correct bills during the reporting period/ YTD # of total bills during the reporting period Billing Accuracy Target: No less than 99.8%billing accuracy per quarter in a year 99.99 99.99 99.99 99.8 99.8 99.8 99.8 99.8 98 98.5 99 99.5 100 100.5 Q1 Q2 Q3 Q4 YTD Result Target 29Overtime Percentage Target: Less than 100%of budgeted overtime per quarter in a year (Target is based on Operating Budget; FY17 Overtime Budget is $94,100) Measurement Method QTR: Actual overtime costs (including comp time)/ Budgeted overtime costs YTD:YTD actual overtime costs (including comp time)/ YTD budgeted overtime costs 97.64 124 112 100 100 100 100 100 0 20 40 60 80 100 120 140 160 Q1 Q2 Q3 Q4 YTD Result Target 30Sewer Rate Ranking Target: Bottom 50 percentile for the 28 sewer service providers in San Diego (Otay ranks 7 out of 28 sewer service providers) Measurement Method Otay ranking for the average bill for sewer/ # of sewer agencies 7 7 14 14 0 5 10 15 20 25 Q1 YTD Result Target 31Water Rate Ranking Target: Bottom 50 percentile for the 22 member agencies in San Diego (Otay ranks 11 out of 22 member agencies) Measurement Method Otay ranking for the average water bill among CWA member agencies 11 11 11 11 0 5 10 15 20 Q1 YTD Target Result 32Percent of Customers Paying Bills Electronically Target: In development (No set targets in FY17; a baseline will be established in FY16 & 17 and appropriate targets will be recommended for the FY18 Strategic Plan) Measurement Method YTD:YTD # of customers paying bills electronically/ Total # of customers QTR:# of customers paying bills electronically/ Total # of customers 75.14 75.64 75.39 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 YTD Result Target 33Distribution System Loss Target: Less than 5%of unaccounted water loss per quarter in a year Measurement Method 100 [volume purchased (from CWA) –(volume sold (to customers) + volume used District usage)] / volume purchased (from CWA)) 4.3 4 4 5 5 5 5 5 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Result Target 34 Operations 35Technical Quality Complaint (AWWA) Target: No more than 9 complaints per 1000 customer accounts in a year Measurement Method QTR:1000 (# of technical quality complaints per quarter)/# of active customer accounts per reporting period YTD:1000 (YTD # of technical quality complaints per year)/ # of active customer accounts per reporting period) 1.15 0.81 1.96 8.4 2.25 2.25 2.25 2.25 9 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Result AWWA Target AW W A B e n c h m a r k 36Planned Potable Water Maintenance Ratio in $ Target: 66% or greater of all labor dollars spent on preventative maintenance per quarter in a year Measurement Method Total planned maintenance cost/ Total maintenance cost 72 71 75 66 66 66 66 66 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 YTD Result Target 37 Measurement Method Total planned maintenance costs/Total maintenance costs Planned Recycled Water Maintenance Ratio in $ Target: 70%or greater of all labor spent on preventative maintenance per quarter in a year 59 97.1 84.7 70 70 70 70 70 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target 38Planned Wastewater Maintenance Ratio in $ Target: 77% or greater of all labor dollars spent on preventative maintenance per quarter in a year Measurement Method Total planned maintenance cost/Total maintenance cost 88.95 89.75 89.44 77 77 77 77 77 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 YTD Result Target 39Direct Cost of Treatment Per MGD Target: No more than $1050 per MG spent on wastewater treatment per quarter in a single year (Targets each quarter will vary based on high and low demand times) Measurement Method Total O&M costs directly attributable to sewer treatment/ Total volume in MG 951.88 0 1167.7 900 1200 1200 900 1050 0 200 400 600 800 1000 1200 1400 Q1 Q2 Q3 Q4 YTD Result Target *Treatment Plant not in service in Q2r 40O&M Cost Per MG Processed of Wastewater Target: No more than $1925 per MG spent on O&M for wastewater treatment in a year (Targets each quarter will vary based on high and low demand times) Measurement Method QTR:Total O&M cost/ MGP FYTD O&M Cost = (Power Cost) + (Staff Cost) + (Equipment Cost) / FYTP MGP YTD:FYTD O&M Cost MGP/ FYTD Total MGP 1098.14 0 1572.95 1550 2100 2100 1550 1925 0 500 1000 1500 2000 2500 Q1 Q2 Q3 Q4 YTD Result Target *Treatment Plant not in service in Q2r 41Percent of PMs Completed –Fleet Maintenance Target: No less than 90%of scheduled PM’s completed per quarter in a year Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed 100 100 100 90 90 90 90 90 0 20 40 60 80 100 Q1 Q2 Q3 Q4 Annual Result Target 42Percent of PMs Completed –Reclamation Plant 97 98 97 90 90 90 90 90 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 YTD Result Target Target: No less than 90%of scheduled PM’s completed per quarter in a year Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period 43Percent of PMs Completed –Pump/Electric Section 100 100 100 90 90 90 90 90 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 YTD Result Target Target: No less than 90%of scheduled PM’s completed per quarter in a year Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period 44System Valve Exercising Program Target: Exercise 770 valves per quarter or 3080 valves by the end of fiscal year Measurement Method Actual number of valves exercised in the reporting period 793 787 1580770770770770 3080 0 500 1000 1500 2000 2500 3000 3500 Q1 Q2 Q3 Q4 YTD Result Target 45Potable Water Distribution System Integrity Target: No more than 16 leaks and breaks per 100 miles of distribution piping in a year Measurement Method 100 (annual total number of leaks + annual total number of breaks) / total miles of distribution piping 2.4 2.97 5.38 4 4 4 4 16 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 YTD Result Target 46Potable Water Compliance Rate (AWWA) Target: No less than 100%of all health related drinking water standards each quarter in a year Measurement Method 100 (# of days the primary health regulations are met)/ # of days in the reporting period 100 100 100 100 100 100 100 100 100 50 60 70 80 90 100 110 Q1 Q2 Q3 Q4 YTD Result AWWA Target 47Collection System Integrity (AWWA) Target: No more than 3.6 system failures per 100 miles of collection system pipeline in a year Measurement Method QTR:100 (total number of collection system failures during the year) / total miles of collection system piping YTD:Cumulative number of failures per quarter in a FY 0 1 1 1.20.9 0.9 0.9 0.9 3.6 0 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 YTD Result AWWA Target 48Recycled Water System Integrity Target: No more than 6.6 leaks or breaks per 100 miles of recycled distribution system in a year Measurement Method (100 x # of leaks or breaks)/ # of miles of distribution system 0 0 0 1.65 1.65 1.65 1.65 6.6 0 1 2 3 4 5 6 7 Q1 Q2 Q3 Q4 YTD Result Target 49Sewer Overflow Rate (AWWA) Target: 0 overflows per quarter in a year Measurement Method QTR:100 (total number of sewer overflows during the reporting period) / total miles of pipe in the sewage collection system 0 1 0 0 0 1.2 0 0 0 0 00 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 YTD Result AWWA Target YTD:Cumulative number of overflows per quarter in a FY 50Emergency Facility Power Testing Target: 100%of the District’s facilities tested per year (The District currently has 29 powered ready facilities) Measurement Method Number of facilities tested / total facilities 34 55 55 31 48 75 100 100 0 20 40 60 80 100 Q1 Q2 Q3 Q4 YTD Result Target 51Tank Inspection and Cleaning Annual Target: Clean and inspect 8 tanks or more per year Measurement Method Number of tanks cleaned and inspected 4 3 7 8 8 8 8 8 0 2 4 6 8 10 12 14 Q1 Q2 Q3 Q4 YTD Result Target 52Main Flushing and Fire Hydrant Maintenance Target: 215 or more mains flushed and fire hydrants maintained in a single year (The target of 215 is comprised of 165 hydrants and 50 mains) Measurement Method Number of mains flushed and hydrants maintained 11 34 45 54 54 54 54 215 0 50 100 150 200 250 Q1 Q2 Q3 Q4 YTD Result Target 53Critical Valve Exercising Target: Exercise 631 identified critical valves in a year Measurement Method Number of critical valves exercised in a reporting period 585 46 631 631 631 631 631 631 0 100 200 300 400 500 600 700 800 900 1000 Q1 Q2 Q3 Q4 YTD Result Target 54 Next Steps 55 1 Continue to Monitor Deliverables from Project Plans Utilize Updated Systems to Collect Performance Data Begin to Analyze Performance-Based Data Set New Targets Based on Data Collected 2 3 4 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 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: Purchasing & Facilities: BidSync Solicitations – There are currently four solicitations out on BidSync: 1) “Advertisement for As-Needed Construction Management and Inspection Services”, for Fiscal Years 2018 through 20l9; 2) “OWD Admin. & Ops. Parking Lot Improvements - Lighting & Vehicle Charging Station”, for the construction of new parking lot lighting at the District’s Administration and Operations properties and the installation of an electric vehicle charging station; 3) “Actuarial Valuation For GASB OPEB & Additional Services”, for statement of qualifications and pricing proposal; and, 4) “Campo Road Sewer Replacement”, for the construction of approximately 7,575 feet of 8-inch and 15-inch gravity sewer pipe. Doing Business with Otay Water District – on January 19, 2017, the San Diego Contracting Opportunities Center (SDCOC) conducted its semi-annual vendor outreach workshop “Doing Business with Otay Water District”. Eighteen companies had a representative in attendance. Out of the 14 evaluations received, six rated the program excellent, six rated it very good, and two rated it good. SDCOC will schedule the next session in the fall to include a live demonstration of BidSync on how to receive and respond to District solicitations. Human Resources: Training – Mr. Gordon Graham, a nationally recognized professional speaker in both private and public sectors, was on-site to provide training on organizational risk management and performance 2 management. The training was attended by leads, supervisors, managers, and executive staff. Mr. Graham also reviewed and was very impressed with District policies and performance program documentation. Unsolicited comments from Mr. Graham include, “I am not kissing up to you, but I’ve been exposed to lots of performance evaluation manuals over decades consulting around America in both private and public sector, and I am extremely impressed by your approach. I am impressed that your manual is a work in progress where you’re searching for the next best way to address the issue of evaluating performance of employees. If I had to grade your manual, I would give it a solid A. Your manual has all sorts of control measures, including review by your management, to address the potential of ignorance and complacency issues that all too often diminish the value of the overall system.” His private sector clients include commercial real estate, hospital operations, manufacturing companies, aerospace operations, nuclear power plants, auto racing operations and many others. Meetings - Human Resources staff attended the recent Water Utilities Human Resources Consortium (WUHRC) meeting at the San Diego County Water Authority in Kearny Mesa. The WUHRC group consists of HR staff of all the water agencies in the San Diego County region and the group meets on a quarterly basis for networking and to discuss HR best practices and trends. Recruitments/New Hires/Promotions - There were no recruitments, new hires, or promotions in February. Safety & Security: Annual Safety Measurement Results – Based on the District’s OSHA 300 log (annual summary of job-related injuries and illnesses) for 2016, the District had an injury incident rate of 4.9, which is 33% less than the 7.3 industry rate reported by the U.S. Department of Labor Bureau of Labor Statistics. Emergency Preparedness (WebEOC) – Staff completed the February monthly exercise, which consisted of navigating to the Board’s Phone list section, check for the correct numbers posted for the Agency Emergency Coordination section, and if needed, upload/attach an updated phone contact list including a revision date. Otay’s list is current and the latest revised date is October 2016. IT Operations: AWWA Conference - Staff has been invited to present at this year’s AWWA conference in Anaheim. The conference will be held April 11th and staff will represent the District in presenting the recently completed project on disaster recovery and business continuity efforts. 3 GIS: InfoMaster Implementation - InfoMaster is an asset management forecasting and capital expenditure decision making solution. A cross-functional project team consisting of Engineering, Operations, Finance, and GIS staff, will be involved in the project execution and deployment. The InfoMaster solution will complement existing solutions such as POSM, for pipeline video collection, InfoWater, for water modeling, Cityworks, for enterprise work order management, and Esri GIS, the District’s geographic information systems platform. The project kick-off is scheduled for March. FINANCE: Capacity Fee Study – Staff is completing the water and sewer capacity fee studies, which are tentatively scheduled to be presented to developers for their input in early April. Staff plans on presenting the results of the Capacity Fee Study to the Board at the May 3rd board meeting. Economic Study – Staff has begun working with The London Group on the economic study for the FY 2018 budget. SDRMA Property Insurance Renewal – SDRMA has kept rates flat for the past 7 years by using the rate stabilization reserves, however, due to cost increases and the lower reserve levels, SDRMA plans to increase rates for the FY 2017-18 program year by 10% or $57,500. In addition, due to the District’s loss history, the deductible for third party claims is being increased from $5,000 to $20,000, which is expected to impact the budget by $60,000 per year based on 4 events. A low estimate of the total impact on the budget is $117,500 per year. AMR Change Out Update – The AMR change outs are scheduled to begin on March 14th. The contractor expects to take six to eight weeks to complete all 8,500 change outs. The financial reporting for January 31, 2017 is as follows: For the six months ending January 31, 2017, there are total revenues of $57,086,942 and total expenses of $53,861,175. The revenues exceeded expenses by $3,225,767. The financial reporting for investments for January 31, 2017 is as follows: The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of January 31, 2017 total $87,537,772 with an average yield to maturity of 1.050%. The total earnings year-to-date are $480,185. 4 ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: 927 Zone, Force Main Assessment and Repair Project: This project consists of inspection, condition assessment, and repair of the existing Ralph W. Chapman Water Reclamation Facility (RWCWRF) 1980 era, 16,000 feet long, 14-inch diameter steel force main. During the month of February, Charles King Company, Inc. (Charles King), the District’s contractor, completed the construction of the new blow offs, restored the access road to a serviceable condition, aided in placing the force main back into service, and demobilized from the project area. Execution of the contract work was impacted by heavy rains at the end of January and rock encountered in the planned areas of cathodic protection improvements. Staff worked with the regulatory agencies and permits were extended to February 14, 2016. This extended time allowed Charles King to perform restoration work to the access road which was damaged by the heavy rains. The cathodic protection improvements and final roadway grading were not completed within this year’s environmental window. Staff is working with Charles King to carry these items to the next available environmental window in FY 2018 for completion. In December 2016, Pipeline Inspection and Condition Analysis Corporation (PICA), a professional inspection and condition assessment consultant, completed their inspection of the force main using their SeaSnake® inspection tool. Preliminary results received from PICA on February 9, 2017 suggest that no spot repairs need to be completed on an emergency basis. The overall project is within budget and scheduled to be completed in FY 2019. (R2116) 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 District provided comments on the project consultant’s (Carollo) revised 95% design submittal on February 10, 2017. The project is scheduled to begin construction October 2017. (P2083) 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. Staff met with Caltrans on February 8, 2017, in follow up to a previous meeting held January 12, 2017, to begin planning and design of relocations from Enrico Fermi Drive to the future Mexico/USA international border crossing. (P2453) 5 36-Inch Main Pumpouts and Air/Vacuum Ventilation Installations: This project consists of inspection, repairs, and improvements to the District’s La Presa 36-Inch Pipeline between San Diego County Water Authority Flow Control Facility Number 11 and the District’s Regulatory site. The project consists of the relocation of six (6) existing air/vacuum valves from underground vaults to above ground locations. The District’s contractor, Underground Pipeline Solutions, Inc., began planned work at two locations located along Jamacha Road in February. The project is within budget and on schedule to complete in April 2017. (P2267) 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. During February, Blastco, Inc., the District’s contractor, completed structural work at the 978-1 Reservoir which included rafter replacement, installation of a new overflow, and cathodic protection hand holes. The contractor also began interior blasting operations at the 978-1 Reservoir in preparation for coating. The contractor is currently behind schedule due to sub-contractor coordination and is working on a schedule recovery plan. Work has not started at the 850-2 Reservoir. Release of the 850-2 Reservoir to the contractor is pending satisfactory progress of the work at the 978-1 Reservoir in accordance with the contract. The project is within budget with contract ending in June 2017. (P2534 & P2544) State Route 94 Campo Road at Melody Road: The District has entered into an agreement for construction of a water system with the Jamul Indian Village Development Corporation. Under the agreement, the Jamul Indian Village Development Corporation is required to relocate approximately 1,860 linear feet of 16-inch potable water main. The 16-inch main is currently under construction and tie-in of the new main is anticipated in mid-April 2017. Staff is working with the developer on the tie-in plan in an effort to minimize any customer impacts during the tie-in. (D0644-090254) Campo Road Sewer Replacement: The existing sanitary sewer from Avocado Road to Singer Drive is undersized and located in environmentally sensitive areas that are difficult to access. The design of a replacement sewer by Rick Engineering Company is complete and procurement of easements has been in progress since May 2016, with agreement in principle reached with Vestar and recorded easement obtained from Regency Centers. The District is actively pursuing funding for the project through the Clean Water State Revolving Fund, with the complete submission package 6 currently under review by the State. Advertisement for bids was published on January 30, 2017 in The Daily Transcript, with opening of bids in early March 2017. Construction is scheduled to begin in the fall of 2017. Activities near environmentally sensitive areas will be halted during the breeding season of endangered species, between February and September. Staff previously performed public outreach in late 2015 through early 2016 to elected officials, planning groups, and other parties that may be impacted by the project and will be contacting them again starting with Supervisor Dianne Jacob on February 21, 2017. (S2024) Hillsdale Road Water and Sewer Replacement: The existing water line in Hillsdale Road between Jamacha Road and Vista Grande Road has experienced several breaks and found to be in need of replacement. As the County plans to repave the road as soon as the project is completed, the replacement of two (2) segments of sanitary sewer are also included in the scope of work. Through the District’s As- Needed Engineering Design Contract, a Task Order was issued on June 23, 2016 to Psomas to design the project. Submission of traffic control plans to Caltrans has been made which is seen as being a primary item on the project critical path. The 90% Design submittal was submitted on January 24, 2017 with the District returning comments on February 14, 2017. It is anticipated that the construction Advertisement to Bid will be published in The Daily Transcript in late March 2017 in an attempt to begin construction during the summer school break for Valhalla High School. The County of San Diego has yet to comment on construction limitations close to the high school. The project is within budget and on schedule to complete in spring 2018. (P2573 & S2048) Trenchless Sewer Rehabilitation: The District completed the in- house design of sewer repairs for 60 locations using trenchless technologies. The project was advertised for bids on December 15, 2016 and formal bids to construct the project were opened January 24, 2017, with Insituform Technologies, LLC being the apparent low bidder. Award is scheduled for the March 1, 2017 Board Meeting. Construction is anticipated to begin in April 2017 with completion by July 2017. The project is within budget. (S2044) OWD Administration and Operations Parking Lot Improvements, Phase I – Lighting and Vehicle Charging Station: This project consists of replacing the existing parking lot light fixtures in both the Administration and Operations lots with high efficiency LED fixtures. The project also includes constructing an electric vehicle charging station in the Employee Administration parking lot. The District’s as-needed electrical engineer (BSE Engineering) completed the design, and the project was advertised for bid on February 2, 2017. The bid opening is scheduled for February 23, 2017. The construction contract is scheduled to be 7 presented to the Board in April 2017, and construction is anticipated to begin in May 2017. (P2555 & P2547) Pure Water Update: On October 25, 2016, the San Diego City Council unanimously voted to accept the Pure Water Program Environmental Impact Report and approved two contracts related to the Pure Water Program. One contract added $16.4 million to the contract with Montgomery Watson Harza Americas Inc. for engineering services on the Pure Water program, bringing the total authorization to $46.4 million. The other contract was a five-year, $17.2 million deal with CH2M Hill Engineers, Inc. to perform design and construction support services for the North City Water Reclamation Plant Expansion and the “Influent Conveyance project” for the program. This phase of the Pure Water Program will construct a pump station, pipeline, expanded wastewater treatment at the North City Water Reclamation Plant from 30 MGD to 52 MGD, 30 MGD advanced water purification facility, and a conveyance pipeline to Miramar Reservoir. On February 10, 2017, the U.S. Environmental Protection Agency (USEPA), Region IX and the California Regional Water Quality Control Board, San Diego Region posted a notice of opportunity to comment by February 24, 2017 and is scheduled to consider adoption of the Revised Tentative Order/Permit at its April 12, 2017 Board meeting for the “City of San Diego, E.W. Blom Point Loma Metropolitan Wastewater Treatment Plant Discharge to the Pacific Ocean through the Point Loma Ocean Outfall (Revised Tentative Order/Permit #CA0107409).” Rosarito Desalination: In late January 2017, the state of Baja California, Mexico, announced that the legislature has taken the initiative to ensure its payment obligations for the proposed 100 MGD Rosarito Desalination Plant. The plant will be designed, built, owned, and operated by Aguas de Rosarito (AdR), a special purpose company owned by NSC Agua, Consolidated Water Company’s Mexican subsidiary, and S.A.P.I. de C.V. The project will be constructed under a 40-year public-private partnership contract governed by the state of Baja California with financing to be syndicated by the North American Development Bank (NADB). According to the announcement, the state of Baja California has pledged a guaranteed monthly payment to be paid into an independently managed trust to guarantee the project. Under the arrangement, any invoice that is not paid by the state of Baja California’s water utility would be paid from the trust. This action moves the project closer to financial closure (see Attachment A). A week later it was reported in a Water Desalination Report dated January 30, 2017 (see Attachment B) that a repeal of a Baja California water law was passed in late December 2016, which would have liberalized tariffs, provided a framework 8 for the private sector to be involved in the provision of water and sanitation services, and included an option for direct public- private participation (PPP) contracts. The Rosarito project is under contract, approaching financial closure, and will be the first water project delivered under the state’s Asociaciones Público Privadas (APP) law, revised in 2014. This report notes the APP agreement not only predates the newly repealed water law, but is governed by the APP law, which is implemented at a higher level within the state of Baja California government. Another news article by NBC 7 San Diego included an article (see Attachment C) on this project and an interview with the District’s General Manager Mark Watton. Staff from the District and AdR met twice with staff from the State Water Resources Control Board Division of Drinking Water (DDW) in January to provide an update on the project and to discuss amending the seawater testing protocol currently in place. AdR is proposing to cut back on the number of sites being tested and to eliminate testing for constituents that have come back as non-detect during the previous two years of testing. (P2451) For the month of January 2017, the District sold 5 meters (35.5 EDUs), generating $348,588 in revenue. Projection for this period was 9.7 meters (28.5 EDUs), with budgeted revenue of $270,175. Total revenue for Fiscal Year 2017 is $1,543,229 against the annual budget of $3,242,100. Water System Operations (reporting for January): As a follow-up to the February 1 Board Meeting, staff reviewed the feasibility of locking water hydrants and the potential effects it could have on the District’s water loss. The following information was reviewed: o There are 5,972 hydrants operated and maintained within the District. Locking devices range from $125 to $232 per hydrant (for materials only) resulting in a material cost of $750,000 to $1,400,000 (without installation) to retrofit the District’s hydrants. o The average cost of a water truck, with a 2,000-gallon capacity, is approximately $20 worth of water. o The use of these locking devices, although a deterrent, still will not guarantee the break-in for water theft. o The use of these locking devices and keys would need to be coordinated with all the fire departments located within the District so as not to interfere with emergency response. o Additionally, staff reached out to the neighboring agencies (Lakeside, Helix, Sweetwater and Padre Dam) to determine if any 9 anti-theft devices are being utilized. These agencies do not use any locking devices due to the risk and liability in potentially delaying fire response. However, based on review of the above information, staff is evaluating the implementation of the following: 1) performing annual outreach to the public on what to watch out for and what to report including creating and posting a YouTube video and; 2) publishing the fines that have been issued (while withholding names) in order to deter others and to reinforce that the District does hold individuals and businesses accountable. On January 29, staff responded to a call concerning water coming up from the ground on Jonel Way in Chula Vista. Staff potholed the main and found a collar leaking where the main line transitions from a 12-inch ACP to an 8-inch PVC. The main was isolated and the only customer affected was high-lined. The repairs were completed on January 30. On January 29, staff responded to another call of water coming up from the ground in front of 1473 Hidden Mesa Trail in El Cajon. It was determined that a 12-inch CCP main was leaking and Utility Maintenance completed the repairs on Tuesday, January 31. Upon loading the main, another leak was found and an additional shutdown was required. These shutdowns affected 34 residential meters, water trailers were on site and staff delivered bottles of water to customers affected. On February 1, during the planned startup and testing of the Lower Otay Pump Station (LOPS) in preparation for the San Diego County Water Authority’s (SDCWA) ten-day shutdown, the diesel engine failed, prompting staff to locate and purchase a replacement 630 hp diesel engine. Operations staff from multiple sections worked overtime to remove, reinstall and commission the replacement engine prior to the start of the scheduled SDCWA shutdown. On February 9, during a leak detection survey, a six-inch fire hydrant valve at 684 Rainbow Drive in Chula Vista was found to be leaking. Utility Maintenance assessed the conditions of the valve and found that it needed to be replaced. A shutdown was necessary to replace the fire hydrant valve. Twenty-four residential meters were affected and water trailers were on site. The replacement was completed on the same day. On February 17, the Treatment Plant resumed discharging into the force main that feeds the recycled reservoir storage at a flow rate of about 1 MGD. The force main is now back in full service at this time. 10 On February 17, staff discovered that the 12-inch CCP line on Hidden Mesa Trail was leaking again 13-feet away from where the last repair was made earlier in the month. Since there were harsh weather conditions on Friday, all 34 residential meters were tagged for a planned shutdown on February 19. The main was repaired that day and all 34 affected customers were back in service by 7:30 p.m. Three water trailers were onsite at all times during the duration of the shutdown for those affected. This work necessitated overtime. Starting on February 17, SDCWA performed a full treated water shutdown for all South District connections as planned. The duration of the shutdown is 10-days, which will end on February 26. Staff prepared in advance for the shutdown by filling all reservoirs to high levels in the South District. In addition, preparations were made with the City of San Diego to receive water from the City via LOPS and, if needed, via the two portable pumps at the Telegraph Canyon pump site. As of February 21, the FY 17 proactive leak detection project is approximately 80 percent complete of the 241 miles of main to be surveyed. The contractor has found 29 leaks in the District’s distribution system and has identified 119 potential leaks on the customers’ side as well. The contractor, while performing the District’s survey, is allowing neighboring agencies to view how the proactive leak detection process works as more agencies are looking into this technology for identifying and reducing non-revenue water losses. Sweetwater Authority (SWA) was planning to do a 14-day controlled release from Loveland Reservoir to Sweetwater Reservoir beginning on February 21. However, on February 21 they notified the District that they would be suspending flows until further notice due to a wild habitat endangered species. No further notice was provided. 11 Purchases and Change Orders: The following table summarizes purchases and Change Orders issued during the period of December 23, 2016 through February 15, 2017 that were within staff signatory authority: Date Action Amount Contractor/ Consultant Project 12/23/2017 P.O. $3,213.00 Southland Pipe Corp 14-Inch Force Main Rehabilitation (R2116) 2/2/2017 P.O. $5600.00 Potable Divers, Inc. Inspection of Four Reservoirs 2/8/2017 P.O. $4,810.00 Roger Woodhull 870-2 Pump Station (P2083) 2/8/2017 P.O. $440.00 Rick Post Welding Weld Surge Tank at Treatment Plant 2/9/2017 P.O. $900.00 Rick Post Welding Hidden Mesa Trail Main Break 2/9/2017 P.O. $7250.00 Pump Check Pump Efficiency Testing 2/13/2017 P.O. $1200.00 Anton’s Service, Inc. Tree Removal During Main Repair on Hidden Mesa Trail 2/14/2017 P.O. $750.00 Chicago Title Company Hillsdale Water & Sewer Replacements (P2573) 2/15/2017 P.O. $2491.80 Mission Communications, LLC Service Renewal 12 Water Conservation and Sales: Water Conservation - January 2017 usage was 17% lower than January 2013 usage. Since the State’s Conservation Mandate began in June 2015, customers have saved an average of 18%. The January potable water purchases were 1,411.5 acre-feet which is 14.2% below the budget of 1,644.4 acre-feet. The cumulative purchases through January were 16,500.7 acre-feet which is 6.3% above the cumulative budget of 15,518.9 acre-feet. 13 The January recycled water purchases and production were 3.7 acre- feet which is 96.5% below the budget of 43.9 acre-feet. The cumulative production and purchases through January were 2,239.0 acre-feet which is 2.9% below the cumulative budget of 2,305.4 acre-feet. Potable, Recycled, and Sewer (Reporting up to the month of January): Total number of potable water meters is 49,601. Recycled water consumption for the month of January is as follows: o Total consumption was 34.2 acre-feet or 11,127,248 gallons and the average daily consumption was 358,943 gallons per day. o Total cumulative recycled water consumption since July 1, 2016 is 2520.8 acre-feet. o Total number of recycled water meters is 717. Wastewater flows for the month of January were as follows: o Total basin flow, gallons per day: 1,667,442. This is an increase of 7.30% from January 2016. o Spring Valley Sanitation District Flow to Metro, gallons per day: 551,184. 14 o Total Otay flow, gallons per day: 1,116,290. o Flow Processed at the Ralph W. Chapman Water Recycling Facility, gallons per day: 0. o Flow to Metro from Otay Water District was 1,130,796 gallons per day. By the end of January there were 6,104 wastewater EDUs. Attachments: Attachment A – Water Desalination Report, 23 January 2017 Attachment B – Water Desalination Report, 30 January 2017 Attachment C - NBC 7 San Diego News Article Water Desalination ReporT Volume 53, Number 3 The international weekly for desalination and advanced water treatment since 1965 23 January 2017 Tom Pankratz, Editor, P.O. Box 75064, Houston, Texas 77234-5064 USA Telephone: +1-281-857-6571, www.desalination.com/wdr, email: tp@globalwaterintel.com © 2017 Media Analytics. Published in cooperation with Global Water Intelligence. 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The two-train 300,000 gpd (1,134 m3id) project breezed through the Coastal Commission's permitting process in only three months because it was a publicly-owned, stand-alone facility; it was constructed away from the shoreline, was part of a local and regional water plan, employed a beach well intake, and, discharged its concentrate back to Monterey Bay at a salinity below that of the seawater. The intake consisted of four 100 ft (18m) deep vertical wells located 200 ft (61m) from the surf line and over 2,500 ft (760m) from the plant. The concentrate is discharged below sea level via one horizontal well located beneath the coastal bluff so as not to substantially change the existing seawater/ freshwater interface. The initial plant design was based on a feedwater TDS ranging from 17,000 to 28,000 mglL and a recovery rate of33 percent so that the concentrate would not exceed the permitted discharge level. According to city administrator Tom Bodem, the plant was initially able to meet its production goals, but its performance was slowly and progressively constrained by the deteriorating feedwater quality. ooWe knew it would probably be necessary to eventually add more wells, but the ongoing drought exacerbated the problern. Last year, it only produced a little over 50 percent of the planned capacity," Bodem told WDR. 31 January Deadlines Approach Tomorrow marks the close of Global Water Award nominations. To submit your nominations that will acknowledge the most important achievements in the international water industry in 12 categories, visit htto ://globalwaterawards.com. It is also the deadline to receive the early bird registration discount for GWI's Global Water Summit in Madrid, Spain, which will be held on 24-25 April. For more information, visit uru¡w,watermeetsmoney.com. 30 January 201 7 Based on the higher feedwater salinity, the plant had to throttle back its operation so the concentrate wouldn't exceed the discharge limit. A recent hydrologic study-with its $50,000 cost split between the city and CalAm Water, the plant's operator--{etermined that the city had two options. It could construct additional wells further inland, or amend the plant EIR and obtain a new discharge permit. Bodem said that the city chose the new wells option, and current plans call for drilling three new wells further inland later this year at a cost that could range from $70,000 to over $100,000 per well. Vertical wells and other subsurface intakes are wonderful when they work as planned. Unfortunately, hydrogeology is an inexact science and this is an example of what happens when things don't go as expected. Mexico W.lrrn tAw RoI.tED BAcK Last week's repeal of a Baja California water law left many wondering how it might affect two seawater desalination projects now under development in the Mexican state. Reports say the law, which was passed in late December, would have liberalizedtariffs, provided a framework for the private sector to be involved in the provision of water and sanitation services and included an option for direct public- private participation (PPP) contracts. Two projects now under development in Baja California are RWL Water's San Quintín project, a 5.8 MGD (22,000 m3/d) SWRO plant located 155 miles (250km) south of the US border, and Consolidated Water's Rosarito project, a 100 MGD (378,500 m3/d) SWRO plant to be built in two stages, 25 miles (40km) south of the border. Both projects are under contract, approaching financial closure, and will be the frrst water projects delivered under the state's Asociaciones Público Privadas (APP) law, revised in2014. People familiar with the projects told \VDR that the repeal of the law in question does not appear to relate to the APP GMí Tom Pankratz, Editor, P.O. 8ox75064, Houston, Texas 77234-5064 USA Telephone; +1-281-857-6571,www.desalination.com/wdr, email: tp@globalwaterintel.com o 2017 Media Analytics. Published ¡n cooperat¡on with Global Water lntelligence. WATER DESALINATION REPORT - 30 January 2017 Page 2 laws that governs PPP agreements on either the San Quintín or Rosarito projects. These APP agreements not only predate the newly repealed water law, but are governed by the APP law, which seems to have the reform and merging of state run utilities such as CESPT and CESPE-serving the municipalities of Tijuana and Mexicali, respectively-as its primary focus. The utilities are the ultimate consumers of the water produced by PPP projects, but the APP contracts are implemented at a higher level within the Baja California state government. North America Pouucs, olt AND PRoDUcED wATER Since 2000, one of the hottest industrial markets for advan- ced water treatment technologies has been the Canadian oil sands. Brine concentrator evaporators, crystallizers and MF/UR RO and ED membrane processes were used in steam assisted gravity drainage (SAGD) and mine depressurization operations throughout the Athabasca oil region in northeastern Alberta. Driven by both high oil prices and the expectation that the heavy crude could be conveyed 1,200 miles (2,000km) south to Texas' Gulf Coast refineries, development in the region soared and international desalination and water treatment equipment companies flocked to Alberta. However, as oil prices began to fall, and political opposition to pipelines grew, the region's prospects began to look increasingly grim, and its oil industry was shaken to the core. Things now appear to be changing somewhat. Oil prices have begun to slowly recover, and the Keystone pipeline is back on the table. People are beginning to believe the oil sands could be back in business. With that in mind, llDR asked Third Bay's Keith Minnich, aCalgary-based expert in the treatment of oil sands produced wateq for his outlook on the region's potential: "Since November 201 5, Albertans and the rest of Canada have been adjusting to what many saw as the former US president's politically motivated denial of TransCanada's Keystone XL (KXL) pipeline. During the years of permit review, hydraulic fracturing increased the US'domestic energy production, a 4}-year ban on exporting US oil was lifted, and US Gulf coast refineries, which were originally designed for heavy oil, have reportedly been making changes to accept lighter shale crude. Canada's best oil customer was now a competitor. "There is a recognition in Canada that Canadian oil should be transported to the east and west coasts to directly access the world market. Liberal Prime Minister Trudeau's governmentjust approved the Trans Mountain pipeline to Vancouver. TransCanada is pursuing approval of the Energy East pipeline, which would deliver oil to reflneries and a marine terminal on the Atlantic coast. "Late last week, the new US administration told Canada that 'if they'd like'to renegotiate some of the contract tems, 'we'll see if we can get that pipeline built'. There are questions about what is meant by renegotiation and even whether KXL is still needed if Canadian oil can be transported directly to the coasts. "Every project, even those that have been approved, are still subject to opposition from the 'keep it in the ground' environmental NGOs, NIMBYeTs and Indigenous peo- ples. It's a good bet that all options will be pursued, as Canadians are left to wonder which pipelines will be built first. "Gone are the days when Joe Oliver, Canada's natural resources ministeq observed that 'pipelines were like watching paint dry [they are] the absolute definition of boredom'." Texas BWRO IS REGION'S THIRD TAP San Antonio Vy'ater System (SAWS) welcomed local digni- taries to the formal opening of its newest water treatment plant at the HzOaks Center in southern Bexar County last Friday. The facility has a 12 I|I4GD (45,420 m3/d) potable water production capacity that consists of 10 MGD of BWRO permeate blended with2 MGD of fresh groundwater. According to SAWS, this is the only site in the country which produces water from three different sources: brackish water from the WilcoxAquifer, fresh water from the Carrizo Aquifer and fresh water from the Edwards Aquifer stored in an aquifer storage and recovery (ASR) site on the properfy. The facility also includes twelve 1,500-ft (457m) deep production wells and two 5,000-ft (1,525m) deep concentrate injection wells, in addition to a visitor center and an onsite university research facility. SAI¡VS HzOaks Center and BWRO plant ATTACHMENT C RUNNING DRY: DROUGHT IN CALIFORNIA THE IMPACT OF CALIFORNIA'S DROUGHT ON SAN DIEGO COUNTY Otay Water District’s Ambitious Plan to Bring in Desalinated Water from Mexico By May Tjoa Even as California residents debate whether we are free from the drought, local water agencies are looking for ways to increase their water supply. The Otay Water District is working on a project that would involve desalinated water from a new plant being built in Rosarito, Mexico. The district wants to build a 3.5 mile pipeline from the U.S-Mexico border to its 36.7 million gallon reservoir in Otay Mesa. The pipeline would transport some of that desalinated water to customers in Spring Valley, La Presa, Rancho San Diego, Jamul and eastern Chula Vista. Right now, all of the drinking water in the Otay Water District is purchased through the San Diego County Water Authority. If approved, the cross-border pipeline project would be first of its kind in San Diego County. "If we can bring desalinated water across, that gives us a very reliable supply," said Mark Watton, general manager for the Otay Mesa Water District. "And we're looking to do that at a price that's comparable to the water that we're purchasing today." The pipeline to Otay Mesa is projected to cost about $30 million. The price tag includes a disinfection system, a monitoring station, a pump station and other components. The expense would be later included in customers' water bills, as part of expenses for the district's capital improvement program. Before construction can begin, the Otay Water District must get two permits: a Presidential Permit from the U.S. Department of State, and a permit from the California Division of Drinking Water. The Presidential Permit would allow the pipeline to cross the international border. The district expects to hear if the Presidential Permit is granted, within the next few weeks. ATTACHMENT C A permit from the California Division of Drinking Water would allow the Otay Water District to put the desalinated water into its water supply. The state is expected to make a decision on whether to approve the project, within the next year. "The California Department of Drinking Water certified the water from the desal plant in Carlsbad," said Watton. "They're going to use the exact same criteria for this water coming across the border. No shortcuts. It has to meet every state of California standard." In the process of qualifying for the Presidential Permit, the Otay Water District held public hearings and went through environmental reviews. "In Mexico there was public hearings, all the stuff we have here. Nobody showed up," said Watton. "We had all the same public hearings on our project here, the presidential permit, the environmental on the pipeline. We had some comments. I don't think anybody showed up." Some local environmentalists expressed concern that raw sewage could get into the water being used for the desalination plant. Watton says the sewer flows in the Imperial Beach area isn't related to the desalination plant. "The desal plant takes ocean water which is 9 miles away from the discharge that they're worried about," said Watton. "The process of the desal in and of itself is very selective, just like the pure water in the City of San Diego. It's the same process." Two San Diego environmental groups have expressed concern about the pipeline project. “Unless the State of Baja California cleans up the more than 50 million gallons a day of raw sewage discharged into the surf zone around the proposed desal project, San Diego County residents should not be guinea pigs for the first-ever potable water reuse project in Mexican history,” WILDCOAST Conservation Director Zachary Plopper said in a written statement. Plopper said the project would never be allowed to be built in California if a similar volume of sewage were being discharged in the ocean around it. Watton said the sewage problem is completely separate from Otay Water District’s Conveyance and Disinfection System project. He added, there will be checks to make sure the water meets California standards. “This new water supply, just as any other potable source including surface water from lakes, rivers, the Carlsbad Desalination Plant, and various Pure Water Programs, will need to meet the same high-quality standards required by the California State Water Resources Control Board Division of Drinking Water,” Watton said. “We stand strongly in our mission to distribute high- quality potable water to all of our customers.” According to San Diego County Policy Manager Julia Chunn-Heer, the Surfrider organization is also critical of the project. Chunn-Heer said that the project should have to meet U.S. environmental laws. ATTACHMENT C “Basically water agencies should not be able to skirt our regulations by heading south of the border with projects designed for our benefit,” she said. She went on to say the process of desalination produces significant green house gases. Watton said environmental impact studies are being prepared for local, state and federal regulatory agencies in Mexico. “Unfortunately, certain U.S.-based groups do not appreciate, do not understand or mischaracterize Mexican environmental regulations, which regulate and address issues in many ways that are similar to the U.S. process,” he said. If both the state and federal permits clear, construction on the pipeline from the border to the Otay Water District's reservoir could begin in three years. "Once we get the two critical permits, then we have negotiations. We need to make sure the water is of a price and quality that work," said Watton. "And after all that is done, we can actually commence construction." If that happens, the desalinated water from Rosarito could go into the Otay water supply in about six years. Watton says the goal is to be 60 percent dependent on the San Diego County Water Authority for its drinking water supply, instead of 100 percent. The Otay Water District serves about 222,000 customers. Published at 8:13 AM PST on Feb 9, 2017 Source: http://www.nbcsandiego.com/news/local/Otay-Water-Districts-Ambitious-Plan-to- Bring-in-Desalinated-Water-from-Mexico-413292363.html#ixzz4YJvi3QuP Follow us: @nbcsandiego on Twitter | NBCSanDiego on Facebook Check Total 1,969.18 1,799.88 2,187.90 17,720.00 136.38 2047584 02/15/17 08156 BROWNSTEIN HYATT FARBER 666157 02/13/17 LEGISLATIVE ADVOCACY (THRU 12/31/16)2,125.00 2,125.00 33.39 33.39 2047470 01/25/17 02977 BROWN, VINCENT 012117 01/23/17 SAFETY BOOTS 136.38 TELEPHONE SERVICES (12/2/16-1/1/17)5,972.99 5,972.99 2047469 01/25/17 17765 BRENDA SALISBURY Ref002474660 01/23/17 UB Refund Cst #0000221523 2047468 01/25/17 07785 AT&T 000009082595 01/02/17 3,018.49 2047506 02/01/17 17264 ARTIANO SHINOFF 215161 01/17/17 LEGAL SERVICES (DEC 2016)26,445.74 26,445.74 1,200.00 1,200.00 2047505 02/01/17 03492 AQUA-METRIC SALES COMPANY 0063673IN 01/05/17 SENSUS OMNI METERS 3,018.49 CUSTOMER REFUND 75.04 75.04 2047583 02/15/17 17821 ANTON'S SERVICE INC 22259 01/31/17 TREE REMOVAL (1/3/17) 2047504 02/01/17 17441 ANN FELICIANO 8801012317 01/26/17 6,227.00 2047537 02/08/17 17805 ANGELINA ESPINOZA Ref002475761 02/06/17 UB Refund Cst #0000213728 20.74 20.74 92.31 92.31 2047536 02/08/17 02518 AMERICAN WATER WORKS ASSN 7001287439 02/02/17 MEMBERSHIP RENEWAL (3/1/17-2/28/18)6,227.00 UB Refund Cst #0000222786 1,758.59 1,758.59 2047535 02/08/17 17810 AMADO VIADO Ref002475766 02/06/17 UB Refund Cst #0000224262 CM20178 01/11/17 MGMT/INSP (12/1/16-12/31/16)220.00 2047534 02/08/17 17807 AM ORTEGA GENERAL ENGINEERING Ref002475763 02/06/17 CM20171 01/11/17 MGMT/INSP (11/1/16-12/31/16)750.00 CM20172 01/11/17 MGMT/INSP (12/1/16-12/31/16)670.00 CM20175 01/11/17 MGMT/INSP (12/1/16-12/31/16)1,660.00 CM20176 01/11/17 MGMT/INSP (12/1/16-12/31/16)900.00 8,610.00 CM20174 01/11/17 MGMT/INSP (12/1/16-12/31/16)3,150.00 CM20177 01/11/17 MGMT/INSP (12/1/16-12/31/16)1,760.00 INSURANCE CONSULTING (JAN-MAR 2017)7,250.00 7,250.00 2047503 02/01/17 14462 ALYSON CONSULTING CM20173 01/11/17 MGMT/INSP (12/1/16-12/31/16) 2047582 02/15/17 14256 ALLIANT INSURANCE SERVICES INC 534354 01/03/17 11,606.93 2047502 02/01/17 15024 AIRX UTILITY SURVEYORS INC 1212312016 01/09/17 UTILITY LOCATING SVCS (12/1/16-12/31/16)12,129.00 12,129.00 2,500.00 2,500.00 2047501 02/01/17 11462 AEGIS ENGINEERING MGMT INC 1420 01/11/17 DEVELOPER PLAN REVIEW (11/19/16-1/6/17)11,606.93 SHAREPOINT SERVICES (1/4/17-1/31/17)1,800.00 1,800.00 2047581 02/15/17 13901 ADVANCED INDUSTRIAL SVCS INC 14315 01/25/17 803-3 TANK REPAIR 1000430 01/18/17 SODIUM HYPOCHLORITE 558.02 2047580 02/15/17 08488 ABLEFORCE INC 7361 02/07/17 SODIUM HYPOCHLORITE 960.45 1000712 01/25/17 SODIUM HYPOCHLORITE 669.43 1000187 01/11/17 SODIUM HYPOCHLORITE 213.22 2047579 02/15/17 01910 ABCANA INDUSTRIES 1000449 01/19/17 SODIUM HYPOCHLORITE 1,056.49 999982 01/05/17 SODIUM HYPOCHLORITE 530.17 2047500 02/01/17 01910 ABCANA INDUSTRIES 1000190 01/11/17 Amount 15854 MITSUBISHI UFJ SEC (USA) INC 0408160011 REMARKETING AGENT FEE (1/1/16-3/31/16) CHECK REGISTER Otay Water District Date Range: 1/19/2017 - 2/15/2017 Check #Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/19/2017 - 2/15/2017 Check #Date Vendor Vendor Name Invoice Inv. Date Description 7,222.90 3,621.00 2401020317 02/03/17 TELECOM SVCS / METRO-E (2/3/17-3/2/17)133.74 7601020317 02/03/17 TELECOM SVCS / METRO-E (2/3/17-3/2/17)133.74 TELECOM SVCS / METRO-E (2/4/17-3/3/17)133.74 9201020417 02/04/17 TELECOM SVCS / METRO-E (2/4/17-3/3/17)133.74 2047589 02/15/17 17770 COX BUSINESS 3001020417 02/04/17 2003193E602401216 01/04/17 SHUT DOWN TEST (12/21/16)426.00 2003193E609911216 01/04/17 SHUT DOWN TEST (12/22/16)213.00 2003193E602141216 01/04/17 SHUT DOWN TEST (12/20/16)426.00 2003193E602361216 01/04/17 SHUT DOWN TEST (12/21/16)426.00 923.00 2003193E602151216 01/04/17 SHUT DOWN TEST (12/20/16)639.00 2003193E602201216 01/04/17 SHUT DOWN TEST (12/22/16)568.00 RECORDED MAPS 600.00 600.00 2047513 02/01/17 00184 COUNTY OF SAN DIEGO 2003193E602321216 01/04/17 SHUT DOWN TEST (12/19/16) 2047588 02/15/17 00134 COUNTY OF SAN DIEGO 02092017CSD 02/09/17 EXCAVATION PERMITS (DEC 2016)7,096.90 DPWAROTAYMWD1116A01/18/17 EXCAVATION PERMIT (11/14/16)126.00 2047542 02/08/17 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD121601/13/17 4,250.09 2047587 02/15/17 02612 COUNCIL OF WATER UTILITIES 1172017MR 02/09/17 BUSINESS MEETING 25.00 25.00 4,593.23 4,593.23 2047541 02/08/17 00446 CITY OF CHULA VISTA 051116 05/11/16 FULL COST RECOVERY - REIMBURSEMENT 4,250.09 UB Refund Cst #0000226579 1,727.92 1,727.92 2047473 01/25/17 15256 CIGNA GROUP INSURANCE / LINA 9267011017 01/10/17 AD&D & SUPP LIFE INS (JAN 2017) 2047540 02/08/17 17811 CHULA VISTA ELEMENTARY SCHOOL Ref002475767 02/06/17 336.59 2047512 02/01/17 02026 CHULA VISTA ELEM SCHOOL DIST AR046641 01/06/17 GARDEN TOURS (11/1/16-11/3/16)598.22 598.22 32.07 32.07 2047586 02/15/17 02026 CHULA VISTA ELEM SCHOOL DIST AR046759 01/30/17 GARDEN TOURS (11/8-9/16)336.59 CUSTOMER REFUND 51.57 51.57 2047472 01/25/17 17767 CHRISTOPHER QUEEN Ref002474662 01/23/17 UB Refund Cst #0000225457 2047511 02/01/17 14003 CHECKFREEPAY 4172012517 01/26/17 2,098.25 2047510 02/01/17 17466 CHARLES KING COMPANY 312312016 12/31/16 14-INCH FORCE MAIN (ENDING 12/31/16)171,104.50 171,104.50 38.50 38.50 2047539 02/08/17 17022 CASTLE ACCESS INC 0223093248 02/01/17 COLOCATION SERVICES 2,098.25 OUTSIDE SERVICES 45.00 45.00 2047509 02/01/17 02758 CARMEL BUSINESS SYSTEMS INC 8115 01/11/17 DESTRUCTION SERVICES (1/9/17) 2047585 02/15/17 04071 CAPITOL WEBWORKS LLC 28335 01/31/17 138.28 2047508 02/01/17 16995 CALIFORNIA REGIONAL WATER 013017 01/30/17 WATER QUALITY CERTIFICATION 720.00 720.00 2,109.00 2,109.00 2047507 02/01/17 02401 CAJON VALLEY UNION SCHOOL DIST 16939 01/11/17 GARDEN TOUR (11/29/16)138.28 ELECTRICAL SERVICES (ENDING 11/30/16)1,400.00 1,400.00 2047538 02/08/17 17794 CA DEPT OF FISH & WILDLIFE 020217 02/02/17 PERMIT FOR 870-2 PS 2047471 01/25/17 14112 BSE ENGINEERING INC 75400505 11/30/16 Page 2 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/19/2017 - 2/15/2017 Check #Date Vendor Vendor Name Invoice Inv. Date Description 802.44 5,866.53 721.57 721.57 BI-WEEKLY PAYROLL DEDUCTION 175.00 175.00 2047551 02/08/17 17815 FREDERICK C SANDERS 0966020217 02/02/17 W/O REFUND D0966-090262 2047476 01/25/17 01612 FRANCHISE TAX BOARD Ben2474698 01/26/17 21,461.45 2047550 02/08/17 01612 FRANCHISE TAX BOARD Ben2475823 02/09/17 BI-WEEKLY PAYROLL DEDUCTION 175.00 175.00 129.60 129.60 2047520 02/01/17 16119 FORDYCE CONSTRUCTION INC 112312016 01/12/17 RWCWRF REPL SURGE TANK (THRU 12/31/16)21,461.45 COFFEE SERVICES 834.08 834.08 2047519 02/01/17 11962 FLEETWASH INC x942498 01/06/17 VEHICLE WASHING 2047518 02/01/17 16469 FIRST CHOICE SERVICES 074471 01/23/17 270.24 2047517 02/01/17 03546 FERGUSON WATERWORKS # 1083 0580928 01/06/17 INVENTORY 648.66 648.66 90.00 90.00 2047516 02/01/17 15396 EVOQUA WATER TECHNOLOGIES LLC 902937815 01/10/17 DI TANK EXCHANGES 270.24 UB Refund Cst #0000221919 23.48 23.48 2047515 02/01/17 14320 EUROFINS EATON ANALYTICAL INC l0302122 01/28/17 OUTSIDE LAB SERVICES (12/29/16-1/9/17) 2047549 02/08/17 17806 ERICA KIMBLE Ref002475762 02/06/17 552.86 2047548 02/08/17 17814 ENVIRONMENTAL WASTE MIN INC Ref002475770 02/06/17 UB Refund Cst #0000232266 1,703.76 1,703.76 678.50 678.50 2047593 02/15/17 00331 EMPLOYMENT DEVELOPMENT DEPT 021317 02/13/17 SDI TAXES DUE 552.86 CUSTOMER REFUND 1,100.24 1,100.24 2047547 02/08/17 08023 EMPLOYEE BENEFIT SPECIALISTS 0079632IN 12/31/16 EMPLOYEE BENEFITS (DEC 2016) 2047592 02/15/17 17820 EMIGDIO G GARCIA 2217020917 02/09/17 4,125.00 2047475 01/25/17 16667 EASTON FOUNDATION 0866080617 01/24/17 BOND REFUND / PERFORMANCE 33,640.00 33,640.00 69.75 69.75 2047514 02/01/17 05959 DIAMOND ENVIRONMENTAL SERVICES 0000854771 10/11/16 AB 1 PUMPING SERVICE (10/4/16-10/6/16)4,125.00 UB Refund Cst #0000018687 15.00 15.00 2047546 02/08/17 03690 DEHESA SCHOOL DISTRICT 1602 01/20/17 GARDEN TOUR (1/26/17) 2047545 02/08/17 17797 DAVID MELENA Ref002475752 02/06/17 53.14 2047591 02/15/17 17731 DANIEL S HENTSCHKE 01312017 01/31/17 CONSULTANT SERVICES - LEGAL 5,981.25 5,981.25 120.00 120.00 2047474 01/25/17 17760 DANIEL MACK Ref002474655 01/23/17 UB Refund Cst #0000168418 53.14 UB Refund Cst #0000223639 81.02 81.02 2047590 02/15/17 00693 CSDA, SAN DIEGO CHAPTER 02162017 02/09/17 BUSINESS MEETING - CSDA (2/16/17) 2047544 02/08/17 17808 COY GOODMAN Ref002475764 02/06/17 6101012917 01/29/17 TELECOM SVCS / METRO-E (1/29/16-2/28/17)133.74 7001012817 01/28/17 TELECOM SVCS / METRO-E (1/28/16-2/27/17)127.42 2401012817 01/28/17 TELECOM SVCS / METRO-E (1/28/16-2/27/17)133.74 0301012817 01/28/17 TELECOM SVCS / METRO-E (1/28/16-2/27/17)133.74 TELECOM SVCS / METRO-E (1/24/17-2/23/17)5,204.15 9601012617 01/26/17 TELECOM SVCS / METRO-E (1/25/16-2/24/17)133.74 2047543 02/08/17 17770 COX BUSINESS 6702012517 01/25/17 0501020317 02/03/17 TELECOM SVCS / METRO-E (2/3/17-3/2/17)133.74 8801020417 02/04/17 TELECOM SVCS / METRO-E (2/4/17-3/3/17)133.74 Page 3 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/19/2017 - 2/15/2017 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,303.50 2,740.79 476,054.59 98.15 13,791.38 8,432.15 33.27 1,575.00 1,575.00 2047558 02/08/17 17801 MANASES INVESTMENTS INC Ref002475757 02/06/17 UB Refund Cst #0000185555 33.27 UB Refund Cst #0000090169 201.09 201.09 2047557 02/08/17 13749 LONDON GROUP REALTY ADVISORS 1307 02/01/17 OUTSIDE SERVICES 2047556 02/08/17 17798 LARRY LEVERON Ref002475754 02/06/17 18,895.00 2047602 02/15/17 03336 KREINBRING, THERESA 020717020817 02/09/17 TRAVEL EXPENSE REIMB (2/7/17-2/8/17)196.74 196.74 28.43 28.43 2047601 02/15/17 05840 KIRK PAVING INC 6394 01/19/17 PAVING REPAIRS 18,895.00 UB Refund Cst #0000172903 358.62 358.62 2047555 02/08/17 17804 JAVIER LOPEZ Ref002475760 02/06/17 UB Refund Cst #0000205808 02/01/17 ANTENNA SUBLEASE (FEB 2016)1,593.00 1,593.00 2047554 02/08/17 17800 JAIME BEHAR Ref002475756 02/06/17 6,233.34 116155 01/20/17 BILL PRINTING SERVICES (JAN 2017)2,198.81 2047523 02/01/17 17106 INSITE TOWERS DEVELOPMENT LLC 383725 BILL PRINTING SERVICES (DEC 2016)2,138.34 2,138.34 2047600 02/15/17 08969 INFOSEND INC 116156 01/20/17 BILL PRINTING SERVICES (JAN 2017) 0119910 01/20/17 ENVIRONMENTAL SVCS (11/26/16-12/31/16)480.00 2047522 02/01/17 08969 INFOSEND INC 115347 01/03/17 0119866 01/20/17 ENVIRONMENTAL SVCS (11/26/16-12/31/16)1,255.00 0119871 01/20/17 ENVIRONMENTAL SVCS (11/26/16-12/31/16)499.29 ENVIRONMENTAL SVCS (11/26/16-12/31/16)9,541.09 0119864 01/20/17 ENVIRONMENTAL SVCS (11/26/16-12/31/16)2,016.00 3300020717 02/07/17 WATER USAGE (12/8/16-2/3/17)47.07 2047599 02/15/17 15622 ICF JONES & STOKES INC 0119876 01/20/17 9,829.24 2047598 02/15/17 00062 HELIX WATER DISTRICT 4283020717 02/07/17 WATER USAGE (12/8/16-2/3/17)51.08 39.78 39.78 2047553 02/08/17 02008 HELIX ENVIRONMNTL PLANNING INC 26 01/16/17 ENVIRONMENTAL SVCS (11/21/16-12/31/16)9,829.24 INVENTORY 976.26 976.26 2047478 01/25/17 17766 HEIDY HICKS Ref002474661 01/23/17 UB Refund Cst #0000224209 2047521 02/01/17 06640 HD SUPPLY WATERWORKS LTD G630896 01/13/17 MASTER METER ALLEGRO 475,565.40 G671133 01/25/17 INVENTORY 489.19 10290987 01/25/17 HACH APA6000 1,348.00 2047597 02/15/17 06640 HD SUPPLY WATERWORKS LTD G591934 01/24/17 202.21 202.21 2047596 02/15/17 00174 HACH COMPANY 10290976 01/25/17 HACH APA6000 1,392.79 UB Refund Cst #0000230996 93.67 93.67 2047595 02/15/17 17024 GUIRIBA, DIANNE 020817020917 02/13/17 TRAVEL EXPENSE REIMB (2/8/17-2/9/17) 9333053610 01/17/17 INVENTORY 525.71 2047552 02/08/17 17813 GREG KIRK Ref002475769 02/06/17 4,500.00 2047594 02/15/17 00101 GRAINGER INC 9333057140 01/17/17 INVENTORY 777.79 721.57 721.57 2047477 01/25/17 08665 GRAHAM RESEARCH CONSULTANTS GRC012417 01/24/17 MANAGEMENT TRAINING 4,500.00 2047551 02/08/17 17815 FREDERICK C SANDERS 0966020217 02/02/17 W/O REFUND D0966-090262 Page 4 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/19/2017 - 2/15/2017 Check #Date Vendor Vendor Name Invoice Inv. Date Description #####17679 MOTION INDUSTRIES INC CA05917324 ###HOSES FOR PORTABLE PUMPS 18,103.38 5,815.08 69.38 2047529 02/01/17 09148 S & J SUPPLY COMPANY INC S100082798002 01/13/17 INVENTORY 5,105.89 5,105.89 440.00 440.00 2047564 02/08/17 13395 ROBERT DENUNZIO Ref002475753 02/06/17 UB Refund Cst #0000021909 69.38 CAMPO ROAD SUPPORT (11/26/15-12/31/16)615.12 615.12 2047610 02/15/17 00521 RICK POST WELD & WET TAPPING 11372 01/27/17 WELDING SURGE TANK (1/9/17) 2047609 02/15/17 08972 RICK ENGINEERING COMPANY 0052875 01/24/17 197.82 2047563 02/08/17 17799 RAY ALLEN Ref002475755 02/06/17 UB Refund Cst #0000172260 14.19 14.19 201,683.17 201,683.17 2047485 01/25/17 17759 RACHEL HARRIS Ref002474654 01/23/17 UB Refund Cst #0000144307 197.82 BI-WEEKLY PERS CONTRIBUTION 201,893.63 201,893.63 2047528 02/01/17 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2474690 01/26/17 BI-WEEKLY PERS CONTRIBUTION 2047608 02/15/17 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2475815 02/09/17 1,218.88 2047484 01/25/17 15083 PUBLIC AGENCY SAFETY MGMT ASSN 011817 01/18/17 2017 ANNUAL MEMBERSHIP 75.00 75.00 2,026.44 2,026.44 2047483 01/25/17 07860 PROTECTIVE LIFE INSURANCE CO 88P00011017 01/19/17 LIFE INSURANCE 1,218.88 OUTSIDE SERVICES 203.20 203.20 2047482 01/25/17 07860 PROTECTIVE LIFE INSURANCE CO 011817PLI 01/19/17 INSURANCE PREMIUM 2047527 02/01/17 03274 PREMIER PHOTOGRAPHY 6581 01/12/17 1,566.00 2047607 02/15/17 07161 POULIN, WILLIAM 020917 02/14/17 TRAVEL EXPENSE REIMB (2/9/17)125.67 125.67 40.58 40.58 2047562 02/08/17 17795 PATRICK JOHNSON 0814020317 02/06/17 CUSTOMER REFUND 1,566.00 INVENTORY 5,217.26 5,217.26 2047481 01/25/17 17763 PANWEBSTER INVESTMENTS, INC Ref002474658 01/23/17 UB Refund Cst #0000216274 2047606 02/15/17 01002 PACIFIC PIPELINE SUPPLY 312033 01/20/17 19,280.13 2047605 02/15/17 02027 NTH GENERATION COMPUTING INC 29745H 01/25/17 SOFTWARE LICENSE 6,026.00 6,026.00 14,749.20 14,749.20 2047604 02/15/17 00761 NINYO & MOORE GEOTECHNICAL AND 204667 01/20/17 GEOTECHNICAL SERVICES (11/26/16-12/30/16)19,280.13 BI-WEEKLY DEFERRED COMP PLAN 14,274.20 14,274.20 2047561 02/08/17 16255 NATIONWIDE RETIREMENT Ben2475813 02/09/17 BI-WEEKLY DEFERRED COMP PLAN 2047480 01/25/17 16255 NATIONWIDE RETIREMENT Ben2474688 01/26/17 0701160013 07/01/16 REMARKETING AGENT FEE (4/1/16-6/30/16)1,969.18 0103170012 01/03/17 REMARKETING AGENT FEE (10/1/16-12/31/16)1,855.08 62.50 2047560 02/08/17 17818 MUFG SECURITIES AMERICAS INC 1005160012 10/05/16 REMARKETING AGENT FEE (7/1/16-9/30/16)1,990.82 1,650.00 1,650.00 2047559 02/08/17 16613 MISSION RESOURCE CONSERVATION 373 02/01/17 HOME WATER USE EVAL (JAN 2017)62.50 870-2 PS INSPECTION SVCS (ENDING 12/31/16)6,327.00 6,327.00 2047524 02/01/17 09581 MICHAEL R WELCH PHD PE 7146 01/03/17 ENGINEERING SERVICES (7/5/16-12/30/16) 2047603 02/15/17 16608 MICHAEL BAKER INT'L INC 966623 01/21/17 33.27 2047479 01/25/17 03792 MARTINEZ, STEPHEN 012317 01/23/17 SAFETY BOOTS 150.00 150.00 2047558 02/08/17 17801 MANASES INVESTMENTS INC Ref002475757 02/06/17 UB Refund Cst #0000185555 33.27 REMARKETING AGENT FEE (1/1/16-3/31/16)1,969.18 1,969.18204752502/01/17 15854 MITSUBISHI UFJ SEC (USA) INC 0408160011 04/12/16 Page 5 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/19/2017 - 2/15/2017 Check #Date Vendor Vendor Name Invoice Inv. Date Description 45,356.17 62,318.17 140.00 28,313.69 SECURITY & ACCESS SERVICE CALL (7/18/16)687.65 497058 11/15/16 SECURITY UPGRADE (11/2/16-11/9/16)13,689.63 2047499 01/25/17 15807 THE WATCHLIGHT CORPORATION 480972 07/27/16 69.81 2047569 02/08/17 15807 THE WATCHLIGHT CORPORATION 505562 01/16/17 SECURITY UPGRADE (11/28/16-1/4/17)14,624.06 184.61 184.61 2047493 01/25/17 17769 THAD BARRIER Ref002474664 01/23/17 UB Refund Cst #0000225862 69.81 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61 2047568 02/08/17 15926 TEXAS CHILD SUPPORT UNIT Ben2475825 02/09/17 BI-WEEKLY PAYROLL DEDUCTION 2047492 01/25/17 15926 TEXAS CHILD SUPPORT UNIT Ben2474700 01/26/17 2,900.00 2047615 02/15/17 14576 SWIATKOWSKI, KEITH 02102017KS 02/15/17 TUITION REIMBURSEMENT 174.56 174.56 5,098.86 5,098.86 2047531 02/01/17 16610 SVPR COMMUNICATIONS 1144 12/31/16 CONSULTANT SERVICES (DEC 2016)2,900.00 UB Refund Cst #0000195809 21.02 21.02 2047491 01/25/17 15974 SUN LIFE FINANCIAL Ben2474686 01/26/17 MONTHLY CONTRIBUTION TO LTD 6788011917 01/19/17 CERTIFICATION RENEWAL 60.00 2047490 01/25/17 17762 STEVEN EDWARDS Ref002474657 01/23/17 14,929.00 14,929.00 2047489 01/25/17 05755 STATE WATER RESOURCES 9629012317 01/23/17 CERTIFICATION RENEWAL 80.00 PROPERTY DEDUCTIBLE 5,000.00 5,000.00 2047614 02/15/17 01460 STATE WATER RESOURCES WD0125223 02/03/17 ANNUAL PERMIT FEE (7/1/2016-6/30/2017) 2047488 01/25/17 03516 SPECIAL DISTRICT RISK 0001011217 01/12/17 4,902.87 2047613 02/15/17 02594 SOUTHWESTERN COMMUNITY COLLEGE OWD020717 02/09/17 SMALL BUSINESS OUTREACH 7,000.00 7,000.00 52.21 52.21 2047567 02/08/17 15562 SLF IV MCMILLIN MILLENIA JV 0876020217 02/02/17 W/O REFUND D0876-060088 4,902.87 SAFETY BOOTS 150.00 150.00 2047487 01/25/17 17761 SHEILA FANUGAO Ref002474656 01/23/17 UB Refund Cst #0000185027 012317 01/23/17 UTILITY EXPENSES (MONTHLY)646.98 2047486 01/25/17 15446 SCOTT, ADAM 012217 01/23/17 012617 01/26/17 UTILITY EXPENSES (MONTHLY)13,220.49 011917 01/19/17 UTILITY EXPENSES (MONTHLY)7,133.23 UTILITY EXPENSES (MONTHLY)25,304.69 011817 01/18/17 UTILITY EXPENSES (MONTHLY)16,012.78 011717 01/17/17 UTILITY EXPENSES (MONTHLY)34.59 2047530 02/01/17 00121 SAN DIEGO GAS & ELECTRIC 012517 01/25/17 012517a 01/25/17 UTILITY EXPENSES (MONTHLY)3,385.96 013117 01/31/17 UTILITY EXPENSES (MONTHLY)167.93 58,722.24 2047566 02/08/17 00121 SAN DIEGO GAS & ELECTRIC 012617a 01/26/17 UTILITY EXPENSES (MONTHLY)41,767.69 150.00 150.00 2047612 02/15/17 00121 SAN DIEGO GAS & ELECTRIC 020217 02/02/17 UTILITY EXPENSES (MONTHLY)58,722.24 SUBSCRIPTION RENEWAL 99.00 99.00 2047611 02/15/17 00003 SAN DIEGO COUNTY WATER AUTH 0000001503 01/26/17 MWD SCWS - HEWS 2047565 02/08/17 12470 SAN DIEGO BUSINESS JOURNAL L713L1 02/06/17 2047529 02/01/17 09148 S & J SUPPLY COMPANY INC S100082798002 01/13/17 INVENTORY 5,105.89 5,105.89 Page 6 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/19/2017 - 2/15/2017 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,578.00 59.43 225.00 135,677.17 231.10 231.10 Amount Pd Total:2,138,939.73 Check Grand Total:2,138,939.73 UB Refund Cst #0000224168 11.57 11.57 2047578 02/08/17 15438 ZIOMEK, JEANETTE 02062017JZ 02/06/17 TUITION REIMBURSEMENT 2047577 02/08/17 17809 YVONNE GUERRERO Ref002475765 02/06/17 120.57 2047576 02/08/17 17812 WESTERN RIM CONSTRUCTORS Ref002475768 02/06/17 UB Refund Cst #0000230026 1,846.57 1,846.57 269,111.51 269,111.51 2047498 01/25/17 17764 WARRIOR RIVER LLC Ref002474659 01/23/17 UB Refund Cst #0000221473 120.57 BI-WEEKLY 401A PLAN 10,717.72 10,717.72 2047497 01/25/17 07670 VOLVO ROAD MACHINERY INC N501000761 12/30/16 CP#2 REPL PORTABLE GENERATORS 2047575 02/08/17 06414 VANTAGEPOINT TRANSFER AGENTS Ben2475821 02/09/17 14,856.99 2047496 01/25/17 06414 VANTAGEPOINT TRANSFER AGENTS Ben2474696 01/26/17 BI-WEEKLY 401A PLAN 14,770.11 14,770.11 15,122.47 15,122.47 2047495 01/25/17 01095 VANTAGEPOINT TRANSFER AGENTS Ben2474694 01/26/17 BI-WEEKLY DEFERRED COMP PLAN 14,856.99 FINGERPRINTING SERVICES 20.00 20.00 2047574 02/08/17 01095 VANTAGEPOINT TRANSFER AGENTS Ben2475819 02/09/17 BI-WEEKLY DEFERRED COMP PLAN 2047618 02/15/17 17823 VALDEZ, GENOVEVA 021317GV 02/14/17 2047617 02/15/17 06829 US SECURITY ASSOCIATES INC 1590492 01/26/17 PATROLLING SERVICES (JAN 2017)110.00 110.00 CAL CARD EXPENSES (MONTHLY)135,677.17 02/06/17 UB Refund Cst #0000197243 20.69 20.69 2047533 02/01/17 07674 US BANK CC20170123082 01/23/17 150.00 S0500300020917 02/09/17 LICENSE RENEWAL 75.00 2047573 02/08/17 17802 UNSUK SCHULZE Ref002475758 UB Refund Cst #0000225670 2,046.00 2,046.00 2047616 02/15/17 15257 TRUESDALE, DENNIS 012817 02/09/17 SAFETY BOOT REIMBURSEMENT 010117013117 02/01/17 EXPENSE REIMBURSEMENT (JAN 2017)7.00 2047494 01/25/17 17768 TRANSTAR PIPELINE, INC Ref002474663 01/23/17 500.00 500.00 2047572 02/08/17 14177 THOMPSON, MITCHELL 010117013117a 01/31/17 MILEAGE REIMBURSEMENT (JAN 2017)52.43 UB Refund Cst #0000203509 37.83 37.83 2047571 02/08/17 15712 THOMAS WATKINS 3134020617 02/06/17 CUSTOMER REFUND 493592 11/02/16 SECURITY & ACCESS SERVICE CALL (11/2/16)400.14 2047570 02/08/17 17803 THERESA VACCHIO Ref002475759 02/06/17 SECURITY & ACCESS SERVICE CALL (7/18/16)687.65 480500 07/15/16 SECURITY & ACCESS SERVICE CALL (7/11/16)490.21 2047499 01/25/17 15807 THE WATCHLIGHT CORPORATION 480972 07/27/16 Page 7 of 7