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HomeMy WebLinkAbout09-07-16 Board Packet 1 OTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY September 7, 2016 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF JULY 6, 2016 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 PUBLIC HEARING 6. PUBLIC HEARING ON THE FINAL ENVIRONMENTAL IMPACT REPORT/FI- NAL ENVIRONMENTAL IMPACT STATEMENT FOR THE DISTRICT’S OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECT THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER CERTI- FYING THE FINAL ENVIRONMENTAL IMPACT REPORT/FINAL ENVIRON- MENTAL IMPACT STATEMENT (FINAL EIR/EIS) FOR THE DISTRICT’S OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECT. THE BOARD INVITES THE PUBLIC TO PROVIDE COMMENTS ON THE REPORT. a) CERTIFY THAT THE FINAL EIR/EIS FOR THE DISTRICT’S OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECT HAS BEEN COMPLETED IN COMPLIANCE WITH THE CALIFORNIA ENVIRON- MENTAL QUALITY ACT, THE CURRENT STATE GUIDELINES, AND THE DISTRICT’S LOCAL GUIDELINES, AND THAT IT REFLECTS THE INDEPENDENT JUDGMENT OF THE DISTRICT; FIND THAT THE PO- TENTIALLY SIGNIFICANT EFFECTS OF THE PROJECT WILL BE 2 AVOIDED THROUGH THE ADOPTION OF FEASIBLE MITIGATION MEASURES, AS SHOWN IN THE FINAL EIR/EIS AND THE MITIGA- TION, MONITORING AND REPORTING PROGRAM FOR THE FINAL EIR/EIS; AND APPROVE THE FINDINGS AND THE STATEMENT OF OVERRIDING CONSIDERATIONS FOR THE PROJECT (COBURN- BOYD) CONSENT CALENDAR 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) ADOPT RESOLUTION NO. 4313 AMENDING POLICY NO. 21 OF THE DISTRICT’S CODE OF ORDINANCES TO REDEFINE THE FEE LIMITS FOR MINOR PROJECTS OF LESS THAN $50,000 AND ADD CLARIFY- ING LANGUAGE FOR EXISTING PRACTICES WITH RESPECT TO PROFESSIONAL CONSULTING SERVICES b) ADOPT RESOLUTION NO. 4315 ELECTING THAT THE DISTRICT BE SUBJECT TO THE CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT (CUPCCAA) PROCEDURES AND ADOPT- ING BOARD OF DIRECTORS POLICY NO. 53, INFORMAL BIDDING PROCEDURES UNDER THE CUPCCAA; AND AMEND SECTION 7 PRICING/BIDDING REQUIREMENTS OF THE OTAY WATER DISTRICT PURCHASING MANUAL c) ADOPT ORDINANCE NO. 557 AMENDING THE APPENDIX OF SEC- TION 6, CONFLICT OF INTEREST CODE (COIC), CONTAINED WITHIN THE DISTRICT’S CODE OF ORDINANCES TO UPDATE THE POSITION TITLES REQUIRED TO FILE A FORM 700 AND TO INCLUDE LAN- GUAGE IN SECTION 6.02 WHICH WILL ALLOW THE GENERAL MAN- AGER OR HIS DESIGNEE TO DESIGNATE POSITIONS TO BE IN- CLUDED IN THE COIC’S APPENDIX AT ANY TIME BETWEEN THE BI- ENNIAL REVIEW PERIODS d) ADOPT RESOLUTION NO. 4311 TO UPDATE BOARD POLICY NO. 19, SMOKING, TOBACCO, AND NICOTINE FREE CAMPUS, DUE TO RE- CENT LEGISLATION EXPANDING THE WORKPLACE PROHIBITION AGAINST SMOKING INCLUDING ELECTRONIC CIGARETTES e) RATIFY THE EMERGENCY CONTRACTED WORK PERFORMED BY KIRK PAVING FOR THE GREENSVIEW DRIVE MAIN BREAK REPAIR f) ADOPT ORDINANCE NO. 558 AMENDING SUBDIVISION “E” OF SEC- TION 2.01 OF THE DISTRICT’S CODE OF ORDINANCES TO ESTAB- LISH THE GENERAL MANAGER’S SIGNATORY AUTHORITY AT $125,000 3 ACTION ITEMS 8. ENGINEERING AND WATER OPERATIONS a) APPROVE THE CONTINUANCE OF THE TEMPORARY MORATORIUM ON THE INSTALLATION OF NEW RECYCLED WATER FACILITIES ON OTAY MESA FOR A PERIOD OF ONE YEAR TO JULY 2017 (MARTIN) 9. BOARD a) DISCUSSION OF THE 2016 BOARD MEETING CALENDAR INFORMATIONAL ITEM 10. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA- TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) FISCAL YEAR 2016 YEAR-END REPORT FOR THE DISTRICT’S FIS- CAL YEAR 2015-2018 STRATEGIC PLAN (SEGURA) b) FOURTH QUARTER OF FISCAL YEAR 2016 CAPITAL IMPROVEMENT PROGRAM UPDATE (MARTIN) REPORTS 11. GENERAL MANAGER’S REPORT a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. DIRECTORS' REPORTS/REQUESTS 13. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 14. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 CASE b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] 4 THE AFFORDABLE HOUSING COALITION OF SAN DIEGO v. SANDOVAL; CASE NO. 34-2012-80001158-CU-WM-GDS RETURN TO OPEN SESSION 15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 16. 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 September 2, 2016, 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 September 2, 2016. /s/ Susan Cruz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT July 6, 2016 1. The meeting was called to order by President Thompson at 3:36 p.m. 2. ROLL CALL Directors Present: Lopez, Robak, Smith and Thompson Directors Absent: Croucher (out-of-town on preplanned vacation) Staff Present: General Manager Mark Watton, Attorney Jeanne Blumenfeld, Asst. General Manager German Alvarez, Chief Financial Officer Joe Beachem, Chief of Administration and Information Technology Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Operations Jose Martinez, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Lopez, and seconded by Director Thompson and carried with the following vote: Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve the agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF APRIL 6, 2016 AND MAY 4, 2016 A motion was made by Director Smith, seconded by Director Lopez and carried with the following vote: Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve the minutes of the regular board meetings of April 6, 2016 and May 4, 2016. 2 6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. CONSENT CALENDAR 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: President Thompson pulled items 6f, REQUEST THAT THE BOARD OF DIRECTORS CONSIDER PLACING A PERMANENT MORATORIUM ON THE INSTALLATION OF NEW RECYCLED WATER FACILITIES ON OTAY MESA, for discussion. A motion was made by Director Smith, seconded by Director Lopez and carried with the following vote: Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve the following consent calendar items: a) APPROVE A SECOND AMENDMENT TO CALTRANS UTILITY AGREEMENT NUMBER 33622 FOR THE SR 11/125/905 CONNECTOR RAMPS BLOW OFF RELOCATION PROJECT IN THE AMOUNT OF $847.79 b) APPROVE A THIRD AMENDMENT TO THE CAROLLO ENGINEERS, INC. PROFESSIONAL ENGINEERING SERVICES CONTRACT FOR DESIGN AND CONSTRUCTION SUPPORT OF THE 870-2 PUMP STATION PROJECT IN AN AMOUNT NOT-TO-EXCEED $42,700 c) APPROVE A FIVE (5) YEAR AGREEMENT (THREE [3] YEARS WITH TWO [2] ADDITIONAL YEARS AT THE DISTRICT’S OPTION) WITH ALLIANT INSURANCE SERVICES, INC. (ALLIANT) FOR BENEFIT CONSULTING AND BROKER SERVICES IN AN AMOUNT NOT-TO- EXCEED $148,480 AND IDENTIFYING ALLIANT AS THE DISTRICT’S BROKER OF RECORD d) ADOPT RESOLUTION NO. 4309 UPDATING BOARD OF DIRECTORS POLICY NO. 22, DRUG-FREE WORKPLACE POLICY AND PROCEDURE, TO CHANGE THE RANDOM TESTING PERCENTAGES 3 FOR ALL EMPLOYEES SUBJECT TO THIS POLICY AND REVISE THE DEFINITION OF SAFETY-SENSITIVE DUTIES e) ADOPT RESOLUTION NO. 4308 AMENDING BOARD OF DIRECTORS POLICY NO. 35, THE MEDICAL RESERVE FUND FOR DISTRICT RETIREES, OF THE DISTRICT’S CODE OF ORDINANCES TO REFLECT THE CURRENT PROCESSES AND PROCEDURES FOR THE MEDICAL RESERVE FUND President Thompson presented item 6f for discussion: f) REQUEST THAT THE BOARD OF DIRECTORS CONSIDER PLACING A PERMANENT MORATORIUM ON THE INSTALLATION OF NEW RECYCLED WATER FACILITIES ON OTAY MESA Engineering Manager Dan Martin provided an update on the activities following the placement of a temporary moratorium on the installation of new recycled water facilities in the Otay Mesa area. He indicated that this item recommends placing a permanent moratorium on the installation of recycled facilities in the Otay Mesa area. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Mr. Martin’s report. In response to an inquiry from Director Smith, Mr. Martin indicated that the developers installed the recycled water infrastructure for their Otay Mesa developments in good faith that the District would be able to deliver recycled water to the system. The capacity fees for the San Diego County Water Authority (CWA) were not collected when the meters were installed as the meters were for recycled water. The 16.4 miles of recycled infrastructure, from a cost basis, more than offsets the cost of the capacity fees. It was indicated that the District does not have plans to go back and collect the capacity fees. Staff has indicated that the cost value ($1.3 million) of the capacity fees is noted within the staff report and this is what would be paid to the CWA to convert the recycled meters to potable. The District would also need to return grant monies ($950,000) received for the recycled system to the Bureau of Reclamation. These costs have been factored into the evaluation of placing a permanent moratorium on the installation of new recycled water facilities in the Otay Mesa area. President Thompson inquired if there was anything that would need to be waived (ie., a fee structure) within the District’s Code of Ordinances when the District pays CWA the capacity fees and the recycled meters are designated as potable. He stated that before the District did anything, he felt the District should review this. Director Smith inquired if the District had enough recycled water to serve the existing recycled customers in the Otay Mesa area. He commented that if the District did, then all the recycled meters would not need to be converted to potable which would save the District from paying the capacity fees. It was 4 indicated that the recycled system in the Otay Mesa area is currently being served potable water. General Manager Watton indicated that staff has not looked into that yet and in further discussions it was indicated that the review would also need to include the recycled water capacity fees that were paid by the District and the cost for maintenance of the backflow system which is required for the service of recycled water. Director Smith also indicated that he felt the cost for the lost opportunity to sell recycled water in the Otay Mesa area should be factored in as well. He indicated that once the District makes the decision to place a permanent moratorium in the area, the system will never become cost feasible. Because of this fact, the Engineering Operations and Water Resources Committee suggested that the Board have an opportunity to discuss this item before a decision was made. He noted that other agencies have had to make a similar decision. The City of San Diego determined, through feasibility studies, that recycled water was not their answer and that direct potable reuse was a better option. He noted that in California, it is not just the cost to consider, but there is also the responsibility to conserve water by reusing it. He indicated that this is a difficult decision to make long term and inquired what the advantage was in the District designating a permanent moratorium. General Manager Watton indicated that the water use in the Otay Mesa area is fairly well set (industrial development, low water use landscaping, etc.) and, thus, the estimated recycled water needs in the area would be about 1,200 acre feet (AF) annually. The low amount of water needed for the area versus the cost ($30 million) to install a separate recycled system and streets, outweighed the cost to provide recycled water. Thus, the cost to install and maintain a whole separate system does not make sense. Staff indicated that another advantage of a permanent moratorium is that backflow testing would not be required and the District would not have to maintain a separate recycled system in the Otay Mesa area, thus, there would be savings over time. Director Robak indicated that he felt that he did not see any reason why the temporary moratorium could not be extended for another two (2) years and the District could revisit this issue after the two (2) years. He stated that it did not seem like the right thing to do when the State is still in a drought. He indicated he understood the practical aspect of the moratorium, but at the same time, he did not see a compelling need for it. A motion was made by Director Robak, seconded by President Thompson to continue the temporary moratorium for another two (2) years. President Thompson indicated that he felt that there was a benefit for extending the temporary moratorium and he felt that business owners could be provided time to thoroughly review this proposal. He suggested that this item be tabled for another 60 days which would provide time for those impacted by this item to more thoroughly review the implications of this proposal and provide their 5 comments. He asked that staff to include those comments in their report to the board. Director Robak indicated that he was not against tabling this issue for another 60 days and withdrew his motion to continue the temporary moratorium for another two (2) years. A motion was made by President Thompson, seconded by Director Robak to table this item for 60 days to allow staff to contact interested parties in the Otay Mesa area and allow these parties time to review the implications of the moratorium and provide their comments. In further discussions, President Thompson amended his motion to table this item for 90 days instead. Director Robak accepted the amendment and the motion carried with the following vote: Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher ACTION ITEMS 8. ENGINEERING AND WATER OPERATIONS a) APPROVE THE WATER SUPPLY ASSESSMENT REPORT DATED MAY 2016 FOR THE OTAY 250 SUNROAD EAST OTAY MESA BUSINESS PARK SPECIFIC PLAN AMENDMENT PROJECT, AS REQUIRED BY SENATE BILLS 610 AND 221 Environmental Compliance Specialist Lisa Coburn-Boyd stated her presentation describes the Water Supply Assessment and Verification Report (WSAVR) prepared for the Otay 250 Sunroad East Otay Mesa Business Park Specific Plan Amendment Project. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Ms. Coburn-Boyd’s report. Director Smith noted that the County of San Diego had approved the land use changes and had encouraged the development of residential homes in the area. It was discussed that this made sense as there are many jobs in the Otay Mesa area and not many homes and, thus, it would help with commuter traffic. A motion was made by Director Robak, seconded by President Thompson and carried with the following vote: Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve staff’s recommendation. 6 9. FINANCE, ADMINISTRATION AND INFORMATION TECHNOLOGY a) ADOPT RESOLUTION NO. 4310 DECLARING AN END TO WATER SHORTAGE RESPONSE LEVEL 2- SUPPLY ALERT CONDITION; AND b) ADOPT ORDINANCE NO. 556 AMENDING SECTION 39, WATER SHORTAGE RESPONSE PROGRAM, OF THE DISTRICT’S CODE OF ORDINANCES Customer Service Manager Andrea Carey indicated that she is requesting that the board adopt Resolution No. 4310 declaring an end to Water Shortage Response Level 2. She stated this action would take the District out of all water shortage response levels. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Ms. Carey’s report. President Thompson suggested that items 8a, ADOPT RESOLUTION NO. 4310 DECLARING AN END TO WATER SHORTAGE RESPONSE LEVEL 2- SUPPLY ALERT CONDITION, and 8b, ADOPT ORDINANCE NO. 556 AMENDING SECTION 39, WATER SHORTAGE RESPONSE PROGRAM, OF THE DISTRICT’S CODE OF ORDINANCES, be acted on by the board together. Director Smith inquired why the District is suggesting to end the water shortage response as opposed to going to a Level 1 response level. Ms. Carey indicated that the County has stated that our region has ample supplies to meet our needs over the next three (3) years and it is felt that we are not at a Shortage Level 1 which requests a conservation level of 10%. She stated that most of the restrictions in Level 1 are voluntary with the exception of the watering restrictions which the District feels is no longer appropriate. It was indicated that customers are updated/informed on the current water shortage levels through mailers, the District’s website, and through the District’s customer service staff when they call the customer call center. A motion was made by Director Lopez, seconded by Director Smith and carried with the following vote: Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve staff’s recommendation for both agenda items 8a and 8b. 10. BOARD a) DISCUSSION OF THE 2016 BOARD MEETING CALENDAR 7 President Thompson indicated that he will not be available to attend the July Finance, Administration and Communications Committee meeting and asked Director Robak to attend the meeting on his behalf. Director Robak indicated that he would be available to attend the meeting. There were no changes to the board meeting calendar. REPORTS 11. GENERAL MANAGER’S REPORT General Manager’s Report General Manager Watton reviewed some handouts that were placed on the dias for each member of the board. He stated with regard to the National Resources Defense Council (NRDC) report, “What’s in your Water? Flint and Beyond,” that there has been a series of news releases and articles about problems in water systems around the Country. However, this report makes it seem that all water districts have lead in their water and that they are not properly performing the testing and reporting within their Consumer Confidence Reports. He stated that this is really mischaracterization of the majority of water utilities in California, including the Otay Water District. The District does all the rigorous testing and reports the outcome of this testing to the California Department of Drinking Water. He stated that the District is not picking up any lead or copper in these tests and any reports that water districts are not doing the testing properly or are lying about the testing is absolutely false for our region. General Manager Watton also presented information from his report which included information on the workshop regarding doing business with the Otay WD, recruitments and new hires, the new SCADA System, the Rosarito Desalination Project, inspections by the Air Pollution Control District, lead and copper testing of the District’s water system, and the status of water conservation. In response to an inquiry from President Thompson, Customer Service Manager Andrea Carey indicated that the District has two collections agencies. Financial Credit Network (FCN) is the contingency collection agency (second phase collections agency) and customers forwarded to FCN are those which the District does not have a forwarding address for and are difficult to locate. It was noted that the District works with customers who are in arrears and, thus, the District has very few collection accounts. Accounts are forwarded to collections twice a month and the last time accounts were sent to collections, there were only five (5) forwarded. General Manager Watton indicated that the FCN agreement was executed under the General Manager’s authority in response to another inquiry from President Thompson. CWA Report 8 General Manager Watton indicated that CWA officer nominations are coming up in August and the officers are elected and take their offices in October. Director Croucher will be nominated for the secretary position, which would put him in the rotation for the position of CWA Chair four years from now. 12. DIRECTORS' REPORTS/REQUESTS Director Lopez indicated besides the regular District board and committee meetings that he attends, he attended a Metro Commission meeting where the commission’s budget was discussed. Director Smith also indicated that besides the regular District committee and board meetings, he attended a meeting at Sweetwater Authority on June 29, 2016 to discuss the upcoming Chula Vista Interagency meeting. He also shared that he has changed his Otay Water District water bill payment to automatically pay on his credit card as he understands that this provides savings to the District. He indicated that it also supports the District’s encouragement of customers to utilize the auto pay method. Director Robak stated that he attended the Water Conservation Garden (Garden) Board Meeting and Ms. Elyssa Robertson, Executive Director, is working on moving the Garden towards a more focused direction. He stated they also discussed the future agency funding for the Garden. He noted that he saw the District’s insert regarding lead in the water and he commended staff for doing a good job in educating the District’s customers about the testing the District does to assure the safety of the water it delivers. 13. PRESIDENT’S REPORT President Thompson presented his report on meetings he attended during the month of June 2016 (his report is attached). He noted that he attended the City of Chula Vista Development Forum on June 9, 2016. He stated that Developers reviewed their building plans for Chula Vista and the forum was well attended with about 125 persons in attendance. He asked that staff inform the board of future developer forums as it is an informative meeting sponsored by the City. He indicated that he also attended a meeting of the Garden members and they had discussed the original intent was that the water agencies contributions would remain the same and the Garden would grow other funding. He indicated that there has been a push from a couple members of the Garden (CWA and Sweetwater Authority) to reduce agency funding. The Garden is taking this suggestion seriously and it is expected that a three-year horizon proposal will be presented soon that would work towards reducing agency contributions. He stated that he felt the Garden has good leadership with the new Executive Director and feels the Garden is in good hands. He also indicated that he wished to thank Director Croucher for his service to the public. He stated that not only does Director Croucher serve on the boards of the 9 Otay Water District and CWA, he is also very busy fighting fires. He stated that he seems to have a limitless capacity and dedication to give back to the public. He lastly shared that he has approximately four months before his seat is up for election on the Otay Water District board and he wished to dedicate the remaining months of his term to his sister, Ms. .Cynthia Thompson, who recently passed away. 14. CLOSED SESSION The board recessed to closed session at 5:12 p.m. to discuss the following matter: a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 CASE Director Robak left at 5:15 p.m. and did not participate in the closed session discussion. The board reconvened at 6:12 p.m. and Attorney Jeanne Blumenfeld reported that the board met in closed session and took no reportable actions. 15. ADJOURNMENT With no further business to come before the Board, President Thompson adjourned the meeting at 6:12 p.m. ___________________________________ President ATTEST: District Secretary 10 President’s Report July 6, 2016 Board Meeting A) Meetings attended during the Month of June 2016: 1) June 1: OWD Regular Board Meeting 2) June 8: Attended a meeting of the Water Conservation Garden JPA. 3) June 9: Attended the City of Chula Vista Development Forum 4) June 16: Met with City of Chula Vista City Manager, Gary Halbert. Discussed items mutual to both the City and the District and provided an update on District issues. Attendee: General Manager Watton 5) June 17: Committee Agenda Briefing. Met with General Manager Watton to review items that will be presented at the June committee meetings. 6) June 22: Attended the District’s Finance, Administration and Communications Committee. Reviewed, discussed, and made recommendation on items that will be presented at the July board meeting. 7) June 27: Met with Water Conservation Garden JPA Members and Executive Director. Discussed future funding of the WCG. 8) June 29: Met with Sweetwater Authority. Discussed issues for the City of Chula Vista Interagency Task Force. Attendees: Director Smith and General Manager Watton. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist Bob Kennedy Engineering Manager PROJECT: P2451- 001101 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Certification of the Final Environmental Impact Report/Environmental Impact Statement for the Otay Mesa Conveyance and Disinfection System Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board):  Certify that the Final Environmental Impact Report/Final Environmental Impact Statement (Final EIR/EIS) for the District’s Otay Mesa Conveyance and Disinfection System Project (Project) has been completed in compliance with the California Environmental Quality Act, the current State Guidelines, and the District’s Local Guidelines, and that it reflects the independent judgment of the District.  Find that the potentially significant effects of the Project will be avoided through the adoption of feasible mitigation measures, as shown in the Final EIR/EIS and the Mitigation, Monitoring, and Reporting Program for the Final EIR/EIS.  Approve the Findings and the Statement of Overriding Considerations for the Project. 2 COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board certification of the Final EIR/EIS for the Project (see Exhibit A for Project location). ANALYSIS: The Otay Mesa Conveyance and Disinfection System Project involves the design, construction, and operation of an approximately four-mile long, 48-54 inch diameter potable water pipeline, and a metering station within the Otay Mesa area of the District. The Project may also include a disinfection facility and/or pump station. The pipeline will begin at the U.S. - Mexico border and end at the District’s Roll Reservoir on Otay Mesa. It will be used to convey desalinated water produced at the desalination plant that will be built in Rosarito, Baja California, Mexico, if the District is able to enter into an agreement to purchase the water. The Project would increase the District’s potable water supply flexibility and reliability. The potential crossing of the U.S. – Mexico border by a water pipeline requires that the District obtain a Presidential Permit (PP). In November 2013, the District submitted an application for a PP to the U.S. Department of State (Department), the federal agency responsible for processing PP’s. An essential part of the PP process is the environmental review of a project to ensure consistency with the National Environmental Policy Act (NEPA). Since the Project must also comply with the California Environmental Quality Act (CEQA), as it is located in California, the Department and the District decided that a joint CEQA/NEPA document, an EIR/EIS, would be appropriate for the environmental review. AECOM, the consultant under contract to the District for the Project engineering and environmental work, prepared the EIR/EIS in conjunction with the Department and District staff. The EIR/EIS identifies potential significant effects related to air quality, biological resources, cultural and paleontological resources, environmental justice, geology/soils, greenhouse gas emissions, hazards and hazardous materials, hydrology/water quality, noise and transportation/traffic. The mitigation measures that reduce any effects of the Project to insignificant 3 are presented in the document as well as in the Mitigation, Monitoring, and Reporting Plan (MMRP). The only issue area with the potential to result in significant and unavoidable impacts is greenhouse gas emissions related to the potential pump station. A conservative approach was taken for this analysis resulting in the potentially significant impact, although the actual design of the pump station, if it is needed, will likely result in less than significant greenhouse gas emissions. An analysis of the significant impacts is included in the Statement of Overriding Considerations included with the Final EIR/EIS. This statement details how the benefits of the Project outweigh the adverse environmental effects. The draft EIR was submitted for a 45-day public review period on May 12, 2016 and thirteen (13) comment letters were received from federal, state and local agencies and organizations. AECOM worked with the District and the Department to prepare responses to these letters. Changes to the Final EIR/EIS in response to comments received are incorporated in the final document in strike-out/underline. The comment letters and responses are included in the Final EIR/EIS as Appendix D. The next step in the PP process will be the submittal of the Final EIR/EIS to the Environmental Protection Agency (EPA) by the Department. The EPA will publish a notice in the Federal Register that the document is complete. At the same time, the State Department Bureau of Western Hemisphere Affairs (Bureau of WHA) will send a notice to other federal agencies about the Project and those agencies have 90-days to comment on whether they think the Project is in the national interest. Once the 90-days are complete, the Bureau of WHA will issue the Record of Decision/National Interest Determination (ROD/NID), and the federal agencies have an additional 15-days to review. Once the 15-days are complete, and if there is no opposition to the ROD/NID, the PP will be issued. Staff estimates that the entire process and issuance of the P.P. will be completed in mid- December 2016. FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact. See Attachment B for budget detail. 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, 4 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: No legal impact is anticipated. However, in compliance with the California Environmental Quality Act process, the Final EIR/EIS will have the normal 30-day legal challenge period once recorded with the County of San Diego. LC-B/BK:mlc P:\WORKING\CIP P2451 Desalination Feasibility Study\Staff Reports\Board 09-07-16\BD 09-07-16, Staff Report, OMCDSP Final EIR-EIS Certification.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Project Location Attachment C – Final EIR, MMRP, Findings, and Statement of Overriding Considerations ATTACHMENT A SUBJECT/PROJECT: P2451-001101 Certification of the Final Environmental Impact Report/Environmental Impact Statement for the Otay Mesa Conveyance and Disinfection System Project COMMITTEE ACTION: The Desalination Committee (Committee) reviewed this item at a meeting held on August 29, 2016 and the following comments were made:  Staff is requesting that the Board certify that the Final Environmental Impact Report/Environmental Impact Statement for the Otay Mesa Conveyance and Disinfection System Project has been completed in compliance with the California Environmental Quality Act, the current state guidelines, and the District’s local guidelines and that it reflects the independent judgment of the District. Additionally, staff is asking for the approval of the Mitigation, Monitoring and reporting program, the findings and the Statement of Overriding Considerations for the project.  Staff reviewed the information in the staff report.  Staff indicated in Appendix D, Public Comments and Responses, of the Final EIR/EIS the State Department requested a matrix showing the public’s comments and the District’s response to those comments. They also requested that the District indicate where the EIR/EIS has been revised in response to the comments. Staff stated that most of the comment letters were straight forward. Several comments requested that some impact from the project be addressed to a greater degree and some wished additional information added to the EIR/EIS.  Staff indicated that the District did receive one comment letter that was negative to the project. The correspondence was from the Surfrider Foundation and Wildcoast. This letter is the second to the last letter in Appendix D and was treated in the 6 same manner as all other comment letters. The District’s comments are noted next to the letter within the EIR/EIS.  The main points of their concerns were: o The discharge of the brine from the desalination process into the ocean. o It objects to the Punta Bandera/San Antonio de los Buenos Treatment Plant discharging sewage close to the Rosarito Desalination Plant. o It suggests that the wastewater from the Punta Bandera/San Antonio de los Buenos Treatment Plant should be used as potential potable water as opposed to building a desalination plant.  Staff determined that the comment letter from the Surfrider Foundation and Wildcoast is mainly concerned about the discharge from the Punta Bandera/San Antonio de los Buenos Treatment Plant which is not related to the desalination project itself or to the District’s pipeline.  It was discussed that the Rosarito Desalination Project is Mexico’s project and the District has no jurisdiction over it. The District’s only interest is in purchasing water from the project should the project go forward.  Mexico plans to move forward with the Rosarito Desalination Project whether the District takes water from the project or not.  Staff stated that the State Department had an opportunity to review the District’s response to the Surfrider Foundation and Wildcoast letter and they felt that the District’s response was appropriate. Following the discussion, the Committee recommended to set a Public Hearing at the September 7, 2016 board meeting to allow the public to provide comments before the full Board takes action on this item. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2451-001101 Certification of the Final Environmental Impact Report/Environmental Impact Statement for the Otay Mesa Conveyance and Disinfection System Project Date Updated: 8/2/2016 Budget 30,000,000 Phases Planning Consultant Contracts 98,577 98,577 - 98,577 CAMP DRESSER & MCKEE INC 13,311 13,311 - 13,311 CPM PARTNERS INC 380,200 380,200 - 380,200 HECTOR I MARES-COSSIO 71,531 71,531 - 71,531 MARSTON & MARSTON INC 26,155 15,646 10,509 26,155 BROWNSTEIN HYATT FARBER 26,700 26,700 - 26,700 REA & PARKER RESEARCH 4,173 4,173 - 4,173 SALVADOR LOPEZ-CORDOVA 224,355 224,355 - 224,355 SILVA-SILVA INTERNATIONAL Meals, Travel, Incidentals 21,846 21,846 - 21,846 STAFF Printing 61 61 - 61 MAIL MANAGEMENT GROUP INC Professional Legal Fees 568 568 - 568 ARTIANO SHINOFF 162,041 162,041 - 162,041 GARCIA CALDERON & RUIZ LLP 43,175 43,175 - 43,175 SOLORZANO CARVAJAL GONZALEZ Y 32,612 32,612 - 32,612 STUTZ ARTIANO SHINOFF Regulatory Agency Fees 2,142 2,142 - 2,142 STATE WATER RESOURCES Service Contracts 500 500 - 500 REBECA SOTURA NICKERSON 875 875 875 LEONARD VILLAREAL 32,463 32,463 32,463 (W)RIGHT ON COMMUNICATIONS INC 39,500 39,500 39,500 BUSTAMANTE & ASSOCIATES LLC 290 290 - 290 SAN DIEGO DAILY TRANSCRIPT 685 685 - 685 SAN DIEGO UNION-TRIBUNE, THE Standard Salaries 1,131,461 1,131,461 - 1,131,461 Total Planning 2,313,221 2,302,712 10,509 2,313,221 Design Consultant Contracts 3,952 3,952 - 3,952 AIRX UTILITY SURVEYORS INC 5,000 5,000 - 5,000 ATKINS 8,818 8,818 - 8,818 CPM PARTNERS INC 30,270 30,270 - 30,270 MICHAEL R WELCH PHD PE 5,109 5,109 - 5,109 MARSTON+MARSTON INC 3,800,863 1,356,484 2,444,379 3,800,863 AECOM TECHNICAL SERVICES INC Professional Legal Fees 7,761 7,761 - 7,761 STUTZ ARTIANO SHINOFF Meals, Travel, Incidentals 3,457 3,457 - 3,457 STAFF Service Contracts 1,084 1,084 - 1,084 SAN DIEGO UNION-TRIBUNE LLC 114 114 - 114 REPROHAUS CORP Standard Salaries 198,043 198,043 - 198,043 Total Design 4,064,471 1,620,092 2,444,379 4,064,471 Construction Standard Salaries - - - - Total Construction - - - - Grand Total 6,377,692 3,922,804 2,454,888 6,377,692 Vendor/Comments Otay Water District p2451 Otay Mesa Desalination Conveyance and Disinfection System Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost 571-1RESERVOIR 870-1RESERVOIR OTAY MESA RD EN R I C O F E R M I D R DONOVA N DONOVANCORRECTIONALFACILITY SIEMPRE VIVA RD G.F. BAILEYDETENTION FACILITY AIRWAY RD AL T A R D PASEO DE LA F U E N T T E STATE PRISON RD ALT A R D MEXICO USA OW D B O U N D A R Y FUTURE FUT U R E ?ò ?Ü ?Ü FUTUREPORT OFENTRY OTAY WATER DISTRICTOTAY MESA DESALINATION CONVEYANCEAND DISINFECTION SYSTEM PROJECT EXHIBIT A CIP P2451 0 2,0001,000 Feet F P: \ W O R K I N G \ C I P P 2 4 5 1 D e s a l i n a t i o n F e a s i b i l i t y S t u d y \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A , M a r c h 2 0 1 5 . m x d Legend Pipeline Alternative 1 Pipeline Alternative 2 Pipeline Alternative 3 VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë !\ F Final Environmental Impact Report/ Environmental Impact Statement for the Otay Mesa Conveyance and Disinfection System Project, San Diego County, California Presidential Permit Application Review SCH No. 2014111033 August 2016 CEQA Lead Agency: Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, California 91978-2096 Federal Lead Agency: U.S. Department of State 2201 C Street NW Washington, DC 20520 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 SUBMITTED BY: Bob Kennedy Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Resolution No. 4313 Amending Policy No. 21 for the Selection of Professional Consultants of the District’s Code of Ordinances and Amend Section 7.2.4 Request for Proposals of the Otay Water District Purchasing Manual GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt/amend: 1. Adopt Resolution No. 4313 (see Attachment B) amending Policy No. 21 (see Attachment B, Exhibit 1) for the Selection of Professional Consultants of the District’s Code of Ordinances for Engineering projects. 2. Amend Section 7.2.4 Request for Proposals of the Otay Water District Purchasing Manual. COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of the proposed amendment outlined in this staff report is to update Policy No. 21 of the District’s Code of Ordinances to redefine the fee limits of up to $50,000 for minor projects and add clarifying language for existing practices with respect to 2 Professional Consulting Services for Engineering projects (see Attachment B, Exhibit 1) and amend Section 7.2.4 Request for Proposals of the Otay Water District Purchasing Manual. ANALYSIS: Policy No. 21 of the District’s Code of Ordinances establishes the guidelines for the District’s selection of Professional Consultants. The current Policy No. 21, dated March 13, 2006, established the guidelines for the selection of Professional Consultants for minor projects with fees of less than $5,000 to be in accordance with the Purchasing Manual. The proposed amendment included in Policy No. 21 (see Attachment B, Exhibit 1) for the Selection of Professional Consultants of the District’s Code of Ordinances is intended to increase the fee limits up to $50,000 for the selection of Professional Consultants for minor projects. This will align Policy No. 21 with the language in Section 7.2.4(a) of the District’s Purchasing Manual (see Attachment C) and allow staff more flexibility to quickly hire Professional Consultants for Engineering projects and still obtain competitive pricing. The process for selection of Professional Consultants for minor projects will require an advertisement in the Daily Transcript or a paper of equivalent circulation and require a Letter of Interest and Statement of Qualification be submitted before receiving the Request for Proposal (Proposal). The Project Manager will be required to solicit proposals from three (3) or more Professional Consultants. The Project Manager will strive to have a five (5) member panel review, but will have at least a panel of three (3). The Project Manager will not be part of the evaluation panel (see Attachment B, Exhibit 2). FISCAL IMPACT: Joe Beachem, Chief Financial Officer These changes have the potential to reduce project costs. STRATEGIC GOAL: Adoption of Resolution No. 4313 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.” 3 LEGAL IMPACT: None. BK/RP:jf P:\Public-s\STAFF REPORTS\2016\BD 09-07-16\BD 09-07-16 Staff Report Policy 21 Proposed Changes Report (BK- RP).docx Attachments: Attachment A – Committee Action Attachment B - Resolution No. 4313 Exhibit 1 – Strike-through Policy No. 21 Exhibit 2 – Final Revised Policy No. 21 Attachment C - Strike-through of Section 7.2.4 Request for Proposals of the Otay Water District Purchasing Manual Attachment D – Final Revision of Section 7.2.4 Requests for Proposals of the Otay Water District Purchasing Manual ATTACHMENT A SUBJECT/PROJECT: VARIOUS Adopt Resolution No. 4313 Amending Policy No. 21 for the Selection of Professional Consultants of the District’s Code of Ordinances and Amend Section 7.2.4 Request for Proposals of the Otay Water District Purchasing Manual COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a Committee Meeting held on August 22, 2016, and the following comments were made:  Staff reviewed the staff report to the Committee and indicated that the purpose of the proposed amendment of Policy No. 21 of the District’s Code of Ordinances is to redefine the fee limits of up to $50,000, as opposed to $5,000, for minor projects and add clarifying language for existing practices with respect to Professional Consulting Services for Engineering projects (see Attachment B, Exhibit 1) and amend Section 7.2.4 Request for Proposals of the Otay Water District Purchasing Manual.  It was noted that this proposed amendment to Policy 21 only applies to the selection of consultants.  In response to a question from the Committee, staff indicated that the proposed amendment to Policy 21 would increase staff efficiency by having a minimum of three (3) panel members to review proposals as it is sometimes difficult to organize a five (5) member panel. This requirement would allow projects to move forward in a timely manner. However, it was noted that a five (5) member panel would be organized for major/complicated projects. It was also noted that project managers are not part of panel reviews.  Staff stated that consultant contracts are listed in the Quarterly CIP reports and also the monthly General Manager’s report. The Committee discussed if there was an easier way for 5 board members to identify new consultant agreements, such as creating a “New Consultant Agreement” report. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board on the consent calendar with further discussion on how to report new consultant contracts to the board. Attachment B RESOLUTION NO. 4313 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY 21 SELECTION OF PROFESSIONAL CONSULTANTS OF THE DISTRICT’S CODE OF ORDINANCES WHEREAS, the Otay Water District Board of Directors has been presented with an amended Policy No. 21 of the District’s Code of Ordinances for the management of the Otay Water District; and WHEREAS, the amended Policy No. 21 has been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended policy; and WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of Directors of the Otay Water District that the amended Policy No. 21, incorporated herein as Exhibit 2, is hereby adopted. PASSED, APPROVED, AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 7th day of September 2016, by the following vote: Ayes: Noes: Abstain: Absent: ________________________ President ATTEST: ____________________________ District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 3/13/069 /07/16 Page 1 of 5 I. PURPOSE The purpose of this policy is to establish procedures governing the selection of professional consultants in the performance ofneeded for District Engineering workprojects. II. SCOPE This policy is applicable to selection of Professional Consultants all District departments and offices directly responsible to the General Manager needed for Engineering projects. III. POLICY For the purpose of this policy, ‘‘professional consultants’’ means any ‘‘Firm’’ qualified and authorized to provide ‘‘architectural, landscape architectural, engineering, environmental, and land surveying services’’ or ‘‘construction project management’’ or ‘‘environmental services,’’ as each of those terms or services is defined in the California Government Code, commencing with Section §4525, as hereinafter amended or renumbered (the ‘‘Professional Services Provisions’’). This Policy provides a method and procedure pursuant to which professional consultants in engineering, architectural, landscape architectural, environmental, land surveying and construction management, including plan checking, inspection, and projects requiring a special expertise, may be retained from the private sector to augment the District's professional capabilities or for the performance of specialized services not available to the District from the existing District work force. Services provided to the District by professional consultants may cover a wide range of professional activity, including, but not limited to, studies, special reports, design and related activi- ties on such projects as pipelines, pump stations, reservoirs, planning studies and other expert testimony capabilities. Pursuant to the Professional Services Provisions, and particularly the provisions of the California Government Code Section §4526, the Otay Water District may adopt procedures that assure that professional services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices. Furthermore, maximum participation of small business firms, as defined in Government Code Section 14837, and disadvantaged business enterprises (DBEs) shall be encouraged. Government Code Section 14837 defines "small business" as a business in which the principal office is located in California and the officers of such business are domiciled in Exhibit 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 3/13/069 /07/16 Page 2 of 5 California, which is independently owned and operated and which is not dominant in its field of operation. IV. METHOD OF SELECTION OF PROFESSIONAL CONSULTANTS A. Major Projects - Anticipated Fee Greater than $200,000 1. The District will advertise in at least one local newspaper of general circulation, on the District’s webpage, and through CWA’s Small Contractor Outreach and Opportunities Programs, and any other medium deemed appropriate by the project manager, before a Request for Proposal (RFP) is issued. Interested parties will be required to submit a Letter of Interest and a Statement of Qualifications within the time frame specified in the publication. The ‘‘Statement of Qualifications’’ shall be a written document, shall contain background information on the firm that is current as of the date of submission of the statement and must highlight the work, expertise, and experience that qualify the firm to undertake the work required by the District, as such work is described in the publication. 2. All parties who submit Letters of Interest and a Statement of Qualifications, and are deemed qualified as a result of the Statement of Qualifications process, will receive a copy of the RFP. Proposals will only be accepted from those firms that submitted the Letter of Interest and the Statement of Qualifications within the time-frame specified in the publication. The form of the proposal will be prescribed by the District. If a firm has submitted a Statement of Qualifications within a calendar year and the qualifications remain correct and accurate, then only a Lletter of Iinterest will suffice. 3. The General Manager and the appropriate department head(s) shall approve the selection criteria and the associated weighing factor to be used in evaluating the proposals accepted by the District, in accordance with Paragraph 2, above. The General Manager, or his/her designee, shall appoint a review panel of no fewer than five qualified staff to review and evaluate the proposals, and to rank the firms in the order from most qualified to least qualified. The panel will interview only those firms, which in the panel’s opinion, appear to have the most desirable qualifications. If, in the opinion of the panel, none of the firms are qualified, all proposals may be rejected. In the event of an OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 3/13/069 /07/16 Page 3 of 5 unusual project, which poses special problems beyond the scope previously encountered by staff personnel, the review panel may be augmented by an unbiased, qualified member of the profession being considered, so long as he/she has not and will not submit a proposal. 4. If a firm is rejected on the basis of its proposal, and is not asked to appear for an interview, the firm may appeal the decision by submitting a protest to the General Manager or his/her designee. A copy of the proposal shall be submitted with the protest. The protest shall be filed within five business days of the rejection notification. The protest shall provide a compelling reason why the firm believes the original proposal contained all relevant experience or other requested information. If the General Manager, or his/her designee, concurs with the appellant, the firm shall be added to the interview list. 5. Immediately upon conclusion of oral interviews, the review panel’s oral scores will be combined with the written proposals scores and shall designate the order of preference of the candidates. 6. The department head designated by the General Manager, or his/her designee, shall commence negotiations of an agreement with the first choice of the review panel for the extent of service to be rendered and the compensation. If agreement is not reached within a reasonable time, the department head shall terminate the negotiations with the first choice and shall open negotiations with the second choice of the review panel and so on until a firm is retained or the list of selected firms is exhausted. Professional societies and organizations have published schedules of fees for professional services, which may be used as a guide fol- lowing adjustment to reflect the actual scope of work expected of the firm selected. B. Intermediate Projects - Fees of $50,000 to $200,000 1. The process for selecting consultants for intermediate projects shall be the same as prescribed in Sections IV- A and V of this policy, with the exception of formal interviews of the highest ranked consultants, which are not required, and subject to other applicable exceptions described below. C. Minor-Intermediate Projects -- Fees of $5,000 to $50,000 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 3/13/069 /07/16 Page 4 of 5 1. The process for selecting consultants for minor-intermediate projects shall be the same as prescribed in Sections IV-B and V of this policy, with the exception of advertisement in a paper of major circulation, and subject to other applicable exceptions described below. DC. Minor Projects --- Fees up to Less than $5,000$50,000 1. The process for selecting consultants for minor projects shall be in accordance with the Purchasing Manual as adopted by the Board. V. PROCEDURAL REQUIREMENTS FOR SELECTION OF CONSULTANTS FOR MAJOR, AND INTERMEDIATE AND MINOR-INTERMEDIATE PROJECTS 1. The appropriate department head receives proposals from all interested parties; which are defined as consultants that have submitted a Letter of Interest and a Statement of Qualifications as defined in Section IV-A-1. 2. The evaluating panel shall consider the qualifications and demonstrated experience of the prospective consultants as well as the fee proposed by each firm to provide the services as requested in the RFP. The panel will determine which firm offers the best value for the work required. Such determination will be made with due consideration to all factors, including the qualifications, approach to the scope of work, and experience of the consultant, relative to the project as measured in the score matrix. The weight assigned to each factor under consideration will be reflected in the score matrix included in the RFP. 3. A review panel is appointed in accordance with this policy. Review panel member names are not made available to consultants prior to a call for interview. 4. The first choice of the review panel is called for negotia- tion. If an agreement cannot be negotiated, the first choice will be dismissed from further consideration on that par- ticular project. Following the dismissal of the first choice, negotiations will commence with the second choice. 5. The District’s project manager will contact the references provided by the consultant and he/she evaluates the past performance, as well as internet search about the consulting company. A report is made part of the recommendation to the Board. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 3/13/069 /07/16 Page 5 of 5 56. A successful negotiation shall result in presentation by the department head to the General Manager, or his/her designee, of a professional agreement signed by the selected firm. The agreement may provide for differing methods of compensation based upon the type of work to be performed. "Per diem" or "hourly" compensation is the general rule when specific scope of work is yet to be determined. This type of compensation should carry a stated maximum amount, which will not be exceeded except by prior District approval. Fixed-fee or cost-plus-fixed-fee compensation is commonly used after scope of work has been explicitly identified. Compensation is paid as services are performed rather than in advance. 6. 7. All contracts in excess of the amount authorized by the Board to the General Manager, or his/her designee, in accordance with Section 2.01 of the District’s Code of Ordinances, shall be submitted to the Board for consideration. 78. All agreements for professional services shall provide for the management phase of the resulting contract. A single project manager shall be designated by the consultant and a liaison manager shall be designated by the District for pur- poses of contract administration. 89. Late responses or untimely responses by prospective candi- dates should not be considered for further action. The ability to respond to a publication or an invitation for consideration in a timely and responsive manner is essential to a future satisfactory contract relationship. 910. All proposed contracts shall be reviewed by the District's Legal Counsel and approved as to form prior to presentation to the General Manager or his/her designee. 101. The department head shall einsure that other departments, which have a proper interest in the work under consideration, are kept informed as to the progress of the work and that user decisions and desires are constructively considered within the constraints of financial and practical limita- tions. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 9/07/16 Page 1 of 5 I. PURPOSE The purpose of this policy is to establish procedures governing the selection of professional consultants needed for District Engineering projects. II. SCOPE This policy is applicable to selection of Professional Consultants needed for Engineering projects. III. POLICY For the purpose of this policy, ‘‘professional consultants’’ means any ‘‘Firm’’ qualified and authorized to provide ‘‘architectural, landscape architectural, engineering, environmental, and land surveying services’’ or ‘‘construction project management’’ or ‘‘environmental services,’’ as each of those terms or services is defined in the California Government Code, commencing with Section §4525, as hereinafter amended or renumbered (the ‘‘Professional Services Provisions’’). This Policy provides a method and procedure pursuant to which professional consultants in engineering, architectural, landscape architectural, environmental, land surveying and construction management, including plan checking, inspection, and projects requiring a special expertise, may be retained from the private sector to augment the District's professional capabilities or for the performance of specialized services not available to the District from the existing District workforce. Services provided to the District by professional consultants may cover a wide range of professional activity, including, but not limited to, studies, special reports, design and related activi- ties on such projects as pipelines, pump stations, reservoirs, planning studies and other expert testimony capabilities. Pursuant to the Professional Services Provisions, and particularly the provisions of the California Government Code Section §4526, the Otay Water District may adopt procedures that assure that professional services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices. Furthermore, maximum participation of small business firms, as defined in Government Code Section 14837, and disadvantaged business enterprises (DBEs) shall be encouraged. Government Code Section 14837 defines "small business" as a business in which the principal office is located in California and the officers of such business are domiciled in Exhibit 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 9/07/16 Page 2 of 5 California, which is independently owned and operated and which is not dominant in its field of operation. IV. METHOD OF SELECTION OF PROFESSIONAL CONSULTANTS A. Major Projects - Anticipated Fee Greater than $200,000 1. The District will advertise in at least one local newspaper of general circulation, on the District’s webpage, and through CWA’s Small Contractor Outreach and Opportunities Programs, and any other medium deemed appropriate by the project manager, before a Request for Proposal (RFP) is issued. Interested parties will be required to submit a Letter of Interest and a Statement of Qualifications within the timeframe specified in the publication. The ‘‘Statement of Qualifications’’ shall be a written document, shall contain background information on the firm that is current as of the date of submission of the statement and must highlight the work, expertise, and experience that qualify the firm to undertake the work required by the District, as such work is described in the publication. 2. All parties who submit Letters of Interest and a Statement of Qualifications, and are deemed qualified as a result of the Statement of Qualifications process, will receive a copy of the RFP. Proposals will only be accepted from those firms that submitted the Letter of Interest and the Statement of Qualifications within the timeframe specified in the publication. The form of the proposal will be prescribed by the District. If a firm has submitted a Statement of Qualifications within a calendar year and the qualifications remain correct and accurate, then only a Letter of Interest will suffice. 3. The General Manager and the appropriate department head(s) shall approve the selection criteria and the associated weighing factor to be used in evaluating the proposals accepted by the District, in accordance with Paragraph 2, above. The General Manager, or his/her designee, shall appoint a review panel of no fewer than five qualified staff to review and evaluate the proposals, and to rank the firms in the order from most qualified to least qualified. The panel will interview only those firms, which in the panel’s opinion, appear to have the most desirable qualifications. If, in the opinion of the panel, none of the firms are qualified, all proposals may be rejected. In the event of an unusual project, which poses special problems beyond the OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 9/07/16 Page 3 of 5 scope previously encountered by staff personnel, the review panel may be augmented by an unbiased, qualified member of the profession being considered, so long as he/she has not and will not submit a proposal. 4. If a firm is rejected on the basis of its proposal, and is not asked to appear for an interview, the firm may appeal the decision by submitting a protest to the General Manager or his/her designee. A copy of the proposal shall be submitted with the protest. The protest shall be filed within five business days of the rejection notification. The protest shall provide a compelling reason why the firm believes the original proposal contained all relevant experience or other requested information. If the General Manager, or his/her designee, concurs with the appellant, the firm shall be added to the interview list. 5. Immediately upon conclusion of oral interviews, the review panel’s oral scores will be combined with the written proposals scores and shall designate the order of preference of the candidates. 6. The department head designated by the General Manager, or his/her designee, shall commence negotiations of an agreement with the first choice of the review panel for the extent of service to be rendered and the compensation. If agreement is not reached within a reasonable time, the department head shall terminate the negotiations with the first choice and shall open negotiations with the second choice of the review panel and so on until a firm is retained or the list of selected firms is exhausted. Professional societies and organizations have published schedules of fees for professional services, which may be used as a guide fol- lowing adjustment to reflect the actual scope of work expected of the firm selected. B. Intermediate Projects - Fees of $50,000 to $200,000 1. The process for selecting consultants for intermediate projects shall be the same as prescribed in Sections IV- A and V of this policy, with the exception of formal interviews of the highest ranked consultants, which are not required and subject to other applicable exceptions described below. C. Minor Projects -- Fees up to $50,000 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 9/07/16 Page 4 of 5 1. The process for selecting consultants for minor projects shall be in accordance with the Purchasing Manual. V. PROCEDURAL REQUIREMENTS FOR SELECTION OF CONSULTANTS FOR MAJOR AND INTERMEDIATE PROJECTS 1. The appropriate department head receives proposals from all interested parties; which are defined as consultants that have submitted a Letter of Interest and a Statement of Qualifications as defined in Section IV-A-1. 2. The evaluating panel shall consider the qualifications and demonstrated experience of the prospective consultants as well as the fee proposed by each firm to provide the services as requested in the RFP. The panel will determine which firm offers the best value for the work required. Such determination will be made with due consideration to all factors, including the qualifications, approach to the scope of work, and experience of the consultant, relative to the project as measured in the score matrix. The weight assigned to each factor under consideration will be reflected in the score matrix included in the RFP. 3. A review panel is appointed in accordance with this policy. Review panel member names are not made available to consultants prior to a call for interview. 4. The first choice of the review panel is called for negotia- tion. If an agreement cannot be negotiated, the first choice will be dismissed from further consideration on that par- ticular project. Following the dismissal of the first choice, negotiations will commence with the second choice. 5. The District’s project manager will contact the references provided by the consultant and he/she evaluates the past performance, as well as internet search about the consulting company. A report is made part of the recommendation to the Board. 6. A successful negotiation shall result in presentation by the department head to the General Manager or his/her designee, of a professional agreement signed by the selected firm. The agreement may provide for differing methods of compensation based upon the type of work to be performed. "Per diem" or "hourly" compensation is the general rule when specific scope of work is yet to be determined. This type of compensation should carry a stated maximum amount, which will not be exceeded except by prior District approval. Fixed-fee or cost-plus-fixed-fee compensation is commonly used after scope OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised POLICY FOR SELECTION OF PROFESSIONAL CONSULTANTS 21 8/1/90 9/07/16 Page 5 of 5 of work has been explicitly identified. Compensation is paid as services are performed rather than in advance. 7. All contracts in excess of the amount authorized by the Board to the General Manager, or his/her designee, in accordance with Section 2.01 of the District’s Code of Ordinances, shall be submitted to the Board for consideration. 8. All agreements for professional services shall provide for the management phase of the resulting contract. A single project manager shall be designated by the consultant and a liaison manager shall be designated by the District for pur- poses of contract administration. 9. Late responses or untimely responses by prospective candi- dates should not be considered for further action. The ability to respond to a publication or an invitation for consideration in a timely and responsive manner is essential to a future satisfactory contract relationship. 10. All proposed contracts shall be reviewed by the District's Legal Counsel and approved as to form prior to presentation to the General Manager or his/her designee. 11. The department head shall ensure that other departments, which have a proper interest in the work under consideration, are kept informed as to the progress of the work and that user decisions and desires are constructively considered within the constraints of financial and practical limita- tions.   Attachment C   Otay Water District Purchasing Manual 7.2.4 Request for Proposals: a. For the Solicitation of Professional Consulting (Engineering): The General Manager, or his/her designee, will establish a review panel to evaluate and rank submittals (proposals) using criteria published in the Request for Proposals package. Documents, invitations, and evaluation of submittals for professional consulting services shall be made in compliance with Government Code Section 4526-4529 and District Policy #21 - Policy for Selection of Professional Consultants. b. For the Solicitation of General Consulting and Services: The General Manager, or his/her designee, shall determine the method for soliciting and evaluating proposals for general consulting and services. The request for proposal must be in written form and must provide sufficient information to clearly identify the work required and provide respondents with a clear understanding of the District’s needs, work specifications, expectations, and the criteria that will be used to evaluate submittals.       Attachment D   Otay Water District Purchasing Manual 7.2.4 Request for Proposals: a. For the Solicitation of Professional Consulting (Engineering): The General Manager, or his/her designee, will establish a review panel to evaluate and rank submittals (proposals) using criteria published in the Request for Proposals package. Documents, invitations, and evaluation of submittals for professional consulting services shall be made in compliance with Government Code Section 4526-4529 and District Policy #21 - Policy for Selection of Professional Consultants. b. For the Solicitation of General Consulting and Services: The General Manager, or his/her designee, shall determine the method for soliciting and evaluating proposals for general consulting and services. The request for proposal must be in written form and must provide sufficient information to clearly identify the work required and provide respondents with a clear understanding of the District’s needs, work specifications, expectations, and the criteria that will be used to evaluate submittals.     STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 SUBMITTED BY: Bob Kennedy Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Otay Water District Resolution No. 4315 Electing to be Subject to the California Uniform Public Construction Cost Accounting Act (CUPCCAA) Procedures and Adopting Policy 53 Informal Bidding Procedures under the Uniform Public Construction Cost Account Act, and Amend Section 7 Pricing/Bidding Requirements of the Otay Water District Purchasing Manual GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt/amend: 1. Adopt Resolution No. 4315 Electing to be Subject to the California Uniform Public Construction Cost Accounting Act (CUPCCAA or Act) Procedures and Adopting Policy No. 53 Informal Bidding Procedures under the Uniform Public Construction Cost Account Act (see Attachment B). 2. Amend Section 7 Pricing/Bidding Requirements of the Otay Water District Purchasing Manual (see Attachment C). COMMITTEE ACTION: Please see Attachment A. 2 PURPOSE: That the District’s Board adopt Otay Water District Resolution No. 4315 Electing to be Subject to the CUPCCAA Procedures and Adopting Policy No. 53 Informal Bidding Procedures under the Uniform Public Construction Cost Account Act (Attachment B); and amend Section 7 Pricing/Bidding Requirements of the Otay Water District Purchasing Manual (Attachment C) to align with the CUPCCAA informal bidding procedures for Public Works contracts of less than $175,000. ANALYSIS: The California Uniform Public Construction Cost Accounting Act (CUPCCAA) was created in 1983, as an alternative bidding procedure designed to reduce costs, expedite the awards process, reduce inefficiencies, and simplify administration of smaller public projects. CUPCCAA is contained in the Public Contracts Code Sections 22000 through 22045. CUPCCAA provides alternative bidding procedures when an agency performs public project work by contract. The Act provides public agencies economic benefits and greater freedom in expediting public works projects. Agencies electing to follow the cost accounting procedures set forth in the Cost Accounting Policies and Procedures Manual prescribed by the California Uniform Construction Cost Accounting Commission (CUCCAC), will have a force account limit of $45,000 and an alternative informal bidding procedure. Any city, county, redevelopment agency, special district, school district, and community college district can voluntarily elect to become a participant of the Act. After opting into the CUPCCAA, by resolution of its governing board, participants enjoy the advantage of the streamlined awards process, as well as reductions in paperwork related to advertising and report filing. In return, the District agrees to provide cost accounting information in the format prescribed in the Cost Accounting Policies and Procedure Manual and to adhere to the terms of the Act until the District formally opts out. The informal contracting limits in CUPCCAA are modified from time to time by the CUCCAC. The proposed ordinance provides that when these limits are modified under state law, these new limits will take effect. When constructing public projects, the District must follow the State Public Contract Code; the updated Section 22032 increased to $175,000 beginning July 1, 2011. This increase is pursuant to the terms of 3 the CUPCCAA and is at the recommendation of the CUCCAC. District’s Purchasing Manual Sections 7.2.1, 7.2.3, and 7.2.4(a) have been amended to reflect the changes (see Attachment D). Under the CUPCCAA, Public projects of $45,000 or less may be performed by negotiated contract or by purchase order; Public projects of $175,000 or less may be let to contract by the informal bidding procedures set forth in the Act and Policy; Public projects of more than $175,000 must be let to contract by traditional formal bidding procedures. Contracts procured through informal procedures would be awarded by the General Manager within his authority, otherwise, would go to the entire Board for approval. Contracts requiring formal bidding procedures would be awarded by the Board. CUPCCAA also allows a public agency to perform project work with its own workforce in an amount up to $45,000, if the public agency follows the accounting procedures set forth in the Act. These accounting procedures basically require an agency to track labor, equipment, material, and overhead costs to a specific project. Approximately, 294 Special Districts have adopted the CUPCCAA guidelines. A list of frequently asked questions have been complied to assist agencies that are participating in CUPCCAA (see Attachment E). It is important to note that the District’s participation in the CUPCCAA does not affect the District’s obligation to complete projects at the lowest possible cost, nor does it relieve the District from its obligations to require the payment of prevailing wages for any public project of $1,000 or more. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Aside from staff time to implement this new program, there is no cost to adopt CUPCCAA. However, once adopted, the use of the alternative bidding procedures has the opportunity to reduce project costs. STRATEGIC GOAL: This project supports the District’s Mission statement, “To provide the best quality of water and wastewater service to the customers of the Otay Water District in a professional, effective, and efficient manner” and the District’s strategic goal, “Identify and evaluate improvements to enterprise and departmental business processes.” 4 LEGAL IMPACT: None. BK/RP:jf Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4315 Electing to be Subject to the California Uniform Public Construction Cost Accounting Act Procedures Exhibit 1 – Policy No. 53 Informal Bidding Procedures under the Uniform Public Construction Cost Accounting Act Attachment C – Redlined Section 7 Pricing/Bidding Requirements of the Otay Water District Purchasing Manual Attachment D – Final Section 7 Pricing/Bidding Requirements of the Otay Water District Purchasing Manual Attachment E – California Uniform Public Construction Cost Accounting Act Frequently Asked Questions (FAQs) Attachment F – PowerPoint presentation, “California Uniform Public Construction Cost Accounting Act (CUPCCAA)” ATTACHMENT A SUBJECT/PROJECT: Various Adopt Otay Water District Resolution No. 4315 Electing to be Subject to the California Uniform Public Construction Cost Accounting Act (CUPCCAA) Procedures and Adopting Policy 53 Informal Bidding Procedures under the Uniform Public Construction Cost Account Act, and Amend Section 7 Pricing/Bidding Requirements of the Otay Water District Purchasing Manual COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on August 22, 2016, and the following comments were made:  Staff reviewed the PowerPoint presentation (Attachment F) with the Committee and recommended that the Board adopt Resolution No. 4315 electing to be subject to the California Uniform Public Construction Cost Accounting Act (CUPCCAA or Act) Procedures and adopting Policy 53 Informal Bidding Procedures under the CUPCCAA, and amend Section 7 Pricing/Bidding Requirements of the Otay Water District Purchasing Manual.  It was indicated that 292 special districts throughout the State participate in the CUPCCAA and that the total participating member agencies (Cities, Community College Districts, Counties, School Districts) amount to 996 as of June 30, 2016. Staff provided the benefits of participating in the CUPCCAA, which are listed on Page 5 and 6 of the PowerPoint presentation.  In response to a question from the Committee, staff stated that they have consulted with the District’s auditor to compare District procedures with the State’s requirements and has determined that the majority of the procedures are in compliance with the State.  In response to a question from the Committee, Legal Counsel stated that the CUPCCAA does not apply to the District’s emergency contract limit amount. Page 11 of the PowerPoint presentation provides details of how the CUPCCAA is applicable to the District’s emergency contracts.  Staff stated that to date, agencies who have opted in to CUPCCAA have not opted out. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board on the consent calendar. Attachment B RESOLUTION NO. 4315 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT ELECTING TO BECOME SUBJECT TO THE CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT (CUPCCAA or Act) PROCEDURES AND ADOPTING POLICY NO. 53 INFORMAL BIDDING PROCEDURES UNDER THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT OF THE DISTRICT’S CODE OF ORDINACE WHEREAS, Public Contract Code Section 22000 et seq., the California Uniform Public Construction Cost Accounting Act, establishes a uniform cost accounting standard; and WHEREAS, prior to the passage of Assembly Bill No. 1666, Chapter 1054, Status of 1983, which added Chapter 2, commencing with Section 22000, to Part 3 of Division 2 of the Public Contract Code, existing law did not provide a uniform cost accounting standard for construction work performed or contracted by local public agencies; and WHEREAS, the Act allows for alternative procurement methods for projects up to $175,000; and WHEREAS, the alternative procurement methods provide flexibility and opportunities for significant cost savings to the District. WHEREAS, the Otay Water District Board of Directors has been presented with a Policy No. 53 Informal Bidding Procedures Under the Uniform Public Construction Cost Accounting Act, to establish a policy for informal bidding procedures; and WHEREAS, Policy No. 53 has been reviewed and considered by the Board, and it is in the interest of the District to adopt Policy No. 53; WHEREAS, a copy of the proposed Policy No. 53 is attached as Exhibit 1 to this resolution; and WHEREAS, staff plans to start complying with CUPCCAA on October 1, 2016; this time allows for modification of existing practices. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED that the Board of Directors of the Otay Water District, hereby elects under Public Contract Code Section 22030 to implement the California Uniform Public Construction Cost Accounting Act as of October 1, 2016, and to become subject to the California Uniform Public Construction Cost Accounting Procedures set forth in the Act and to the California Uniform Construction Cost Accounting Commission’s policies and procedures manual and cost accounting review procedures, as they may each from time to time be amended, and directs that the General Manager notify the State Controller forthwith of this election; and that Policy No. 53, incorporated herein as Exhibit 1, is hereby adopted. PASSED, APPROVED, AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 7th day of September 2016, by the following vote: Ayes: Noes: Abstain: Absent: ________________________ President ATTEST: ____________________________ District Secretary Page 1 of 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject INFORMAL BIDDING PROCEDURES UNDER THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT (Section 22000 et seq. of the Public Contract Code) Policy Number Date Adopted Date Revised 53 09/07/16 Purpose To establish a policy for informal bidding procedures under the Uniform Public Construction Cost Accounting Act (“Act”). Background The District elected to become subject to the Act by Resolution No. 4315 approved by the Board of Directors at a regular Board meeting held September 7, 2016. In accordance with Section 22034 of the Public Contract Code, the District hereby establishes an informal bid policy to govern the selection of contractors to perform public projects pursuant to the subdivision (b) of Section 22032 of the Public Contract Code. Policy A. Informal Bid Procedures. Public projects, as defined by the Act and in accordance with the limits listed in Section 22032 of the Public Contract Code, may be let to contract by informal procedures as set forth in Section 22032, et seq., of the Public Contract Code. B. Contractors List. A list of contractors (“List”) shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. C. Notice Inviting Informal Bids. Where a public project is to be performed which is subject to the provisions of the Act, a notice inviting informal bids may be mailed or sent by electronic means, not less than ten (10) calendar days before bids are due, to all contractors for the category of work to be bid, as shown on the List; and/or may be mailed or sent by electronic means not less than ten (10) calendar days before bids are due to all construction trade journals, as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department/section soliciting bids, provided however: 1. If there is no list of qualified contractors maintained by the District for the particular category of work to be performed, EXHIBIT 1 Page 2 of 2 the notice inviting bids shall include the construction trade journals specified by the Commission. 2. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time, place and manner for the submission of bids. D. Award of Contracts. The General Manager is authorized to award informal contracts pursuant to the limits set forth by Section 22032 of the Public Contract Code. E. Bids Exceeding Informal Bid Limit. If all bids are in excess of the informal bid limit as set forth by the Act, and if it is determined that the cost estimate obtained by the department/section soliciting the bid was reasonable, the Board of Directors may, by four-fifths vote, award the contract to the lowest responsible bidder pursuant to subdivision (f) of Section 22034 of the Public Contract Code.   Attachment C Otay Water District Purchasing Manual Section 7 – Pricing/Bidding Requirements 7.0 PURPOSE: To provide requirements, policies, and guidelines for the pricing/bidding of the purchases within the Otay Water District. 7.1 GENERAL: It is the District’s policy to request competitive pricing from responsible vendors for all purchases exceeding $5,000. Pricing, although important, is not the only factor in determining the overall cost and value of a product. Quality, service and delivery are factors that must also be considered when comparing quotations. It is by weighing these factors that an intelligent decision can be made to purchase the product with the greatest value for the least overall price. 7.2 REQUIREMENTS: 7.2.1 Formal Advertising: Public works purchases, as defined in the State of California’s government and contract code, shall follow the procedure outlined under the California Uniform Public Construction Cost Accounting Act (CUPCCAA) (Sect 22000 et seq. of the California Contract Code and as set by the California Uniform Construction Cost Accounting Commission (CUCCAC).equal to or exceeding $35,000 must be formally advertised. Solicitations shall be advertised in a newspaper of general circulation at least one, a minimum of ten (10) calendar days prior to the date of the bid opening. Solicitations must contain a brief description of the goods or services required, state where prospective bidders may obtain plans and specifications and make any required deposits, state the time and place of the bid opening, and state that the District reserves the right to reject one or all bids. 7.2.2 Quotations: For purchases greater than $5,000, excluding public work purchases exceeding $35,000 that require formal advertising and bidding, excluding public works subject to CUPCCAA or formal bidding, a minimum of three competitive quotations must be obtained. Quotations received may be in written or oral form. Should oral quotations be received, written documentation must be made identifying the bidder’s name, contact name, telephone number, the date of the quotation and the pride bid. Should three quotations not be obtainable, documentation in the form of a notation of memorandum must be provided and attached to the purchase requisition. Where only one price is obtainable, the actions taken to obtain competitive pricing shall be documented and attached to the purchase requisition and the purchase may be made and the requirements of this section shall be satisfied.   Attachment C 7.2.3 Public Works – Construction: Public work purchases equal to or exceeding $35,000 what is authorized under the California Uniform Public Construction Cost Accounting Act (CUPCCAA) (Sect 22000 et seq. of the California Code and as set by the California Uniform Construction Cost Accounting Commission (CUCCAC)in value must be formally advertised and sealed bids received. The Purchasing and Facilities Manager or the General Manager’s designee, in conjunction with the project manager, and where appropriate, the District’s legal counsel, shall publicly open all sealed bids and tabulate the results. The bid tabulation, along with a recommendation for award contract or possible rejection of bids, shall be forwarded to the District’s General Manager. In the event that the value of the purchase exceeds the General Manager’s signatory authority, a summary of bids shall be presented together with staff’s recommendation for an award of contract or possible rejection of bids to the Board of Directors of the District during a formal board meeting. The Board of Directors will then authorize the execution of the contract on behalf of the District. Award shall be made to the response and responsible bidder who has submitted the lowest bid meeting the requirements and criteria set forth in the invitation to bid. After approval as to form and legality of the contract documents by legal counsel, the successful bidder and the appropriate District representative(s) shall execute the contract. A copy of the executed contract shall be promptly provided to the Finance Department for proper accounting review. 7.2.4 Request for Proposals: a. For the Solicitation of Professional Consulting (Engineering): The General Manager, or his/her designee, will establish a review panel to evaluate and rank submittals (proposals) using criteria published in the Request for Proposals package. Documents, invitations, and evaluation of submittals for professional consulting services shall be made in compliance with Government Code Section 4526- 4529 and District Policy #21 - Policy for Selection of Professional Consultants. b. For the Solicitation of General Consulting and Services: The General Manager, or his/her designee, shall determine the method for soliciting and evaluating proposals for general consulting and services. The request for proposal must be in written form and must provide sufficient information to clearly identify the work required and provide respondents with a clear understanding of the District’s needs, work specifications, expectations, and the criteria that will be used to evaluate submittals. Attachment D    Otay Water District Purchasing Manual Section 7 – Pricing/Bidding Requirements 7.0 PURPOSE: To provide requirements, policies, and guidelines for the pricing/bidding of the purchases within the Otay Water District. 7.1 GENERAL: It is the District’s policy to request competitive pricing from responsible vendors for all purchases exceeding $5,000. Pricing, although important, is not the only factor in determining the overall cost and value of a product. Quality, service and delivery are factors that must also be considered when comparing quotations. It is by weighing these factors that an intelligent decision can be made to purchase the product with the greatest value for the least overall price. 7.2 REQUIREMENTS: 7.2.1 Formal Advertising: Public works purchases, as defined in the State of California’s government and contract code, shall follow the procedure outlined under the California Uniform Public Construction Cost Accounting Act (CUPCCAA) (Sect 22000 et seq. of the California Contract Code and as set by the California Uniform Construction Cost Accounting Commission (CUCCAC). Solicitations must contain a brief description of the goods or services required, state where prospective bidders may obtain plans and specifications and make any required deposits, state the time and place of the bid opening, and state that the District reserves the right to reject one or all bids. 7.2.2 Quotations: For purchases greater than $5,000, excluding public works subject to CUPCCAA or formal bidding, a minimum of three competitive quotations must be obtained. Quotations received may be in written or oral form. Should oral quotations be received, written documentation must be made identifying the bidder’s name, contact name, telephone number, the date of the quotation and the pride bid. Should three quotations not be obtainable, documentation in the form of a notation of memorandum must be provided and attached to the purchase requisition. Where only one price is obtainable, the actions taken to obtain competitive pricing shall be documented and attached to the purchase requisition and the purchase may be made and the requirements of this section shall be satisfied. 7.2.3 Public Works – Construction: Public work purchases equal to or exceeding what is authorized under the California Uniform Public Construction Cost Accounting Act (CUPCCAA) (Sect 22000 et seq. of    2    the California Code and as set by the California Uniform Construction Cost Accounting Commission (CUCCAC) must be formally advertised and sealed bids received. The Purchasing and Facilities Manager or the General Manager’s designee, in conjunction with the project manager, and where appropriate, the District’s legal counsel, shall publicly open all sealed bids and tabulate the results. The bid tabulation, along with a recommendation for award contract or possible rejection of bids, shall be forwarded to the District’s General Manager. In the event that the value of the purchase exceeds the General Manager’s signatory authority, a summary of bids shall be presented together with staff’s recommendation for an award of contract or possible rejection of bids to the Board of Directors of the District during a formal board meeting. The Board of Directors will then authorize the execution of the contract on behalf of the District. Award shall be made to the response and responsible bidder who has submitted the lowest bid meeting the requirements and criteria set forth in the invitation to bid. After approval as to form and legality of the contract documents by legal counsel, the successful bidder and the appropriate District representative(s) shall execute the contract. A copy of the executed contract shall be promptly provided to the Finance Department for proper accounting review. 7.2.4 Request for Proposals: a. For the Solicitation of Professional Consulting (Engineering): The General Manager, or his/her designee, will establish a review panel to evaluate and rank submittals (proposals) using criteria published in the Request for Proposals package. Documents, invitations, and evaluation of submittals for professional consulting services shall be made in compliance with Government Code Section 4526- 4529 and District Policy #21 - Policy for Selection of Professional Consultants. b. For the Solicitation of General Consulting and Services: The General Manager, or his/her designee, shall determine the method for soliciting and evaluating proposals for general consulting and services. The request for proposal must be in written form and must provide sufficient information to clearly identify the work required and provide respondents with a clear understanding of the District’s needs, work specifications, expectations, and the criteria that will be used to evaluate submittals.       CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT FREQUENTLY ASKED QUESTIONS (FAQs) These FAQs have been compiled to assist agencies that are participating in the California  Uniform Public Construction Cost Accounting Act (“the Act”).  Public Contract Code section  22000 et seq.  Unless stated otherwise, all references are to the Public Contract Code.       1. What is the Uniform Public Construction Cost Accounting Act?   The Act is legislation that was enacted in 1983 to help promote “uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state.” Section 22001. The Act is a voluntary program that is available to all public entities in the State but it only applies to those public agencies that have “opted in” to the provisions set forth by the Act. The entirety of the Act is found at Sections 22000-22045. 2. What are some of the key provisions of the Act? The Act allows for public project work in the amount of $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Section 22032(a). Public projects in the amount of $175,000 or less can use the informal bidding procedures set forth in the Act in Section 22032(b). Public projects at a cost of more than $175,000 shall use formal bidding procedures to let the contract. Section 22032(c).               3. What are the benefits of the program?   a) Increased force account limit b) Informal bidding for projects that are $175,000 or less which do not require advertising. c) Reduces the number of formal bids. d) Expedited contracting for small projects.   Many participants laud the program because it gives them more leeway in the execution of public works projects; has speeded up the awards process; has improved timeliness of the project completion; has eliminated considerable red tape and cumbersome paperwork relative to advertising and filing of reports; and has simplified administration. Many agencies have encountered only minimal challenges with the accounting requirements and the overhead portion. Moreover, where required, the adjustment was relatively simple; most of the required procedures were already actually in place, so there was no noticeable change in the existing operations. The Standard Accounting Codes Structure will satisfy the reporting requirements when used properly.         4. Is the Uniform Public Construction Cost Accounting Act mandatory for public agencies?   No. The Act is a voluntary program.   5. How does a public agency become subject to the Act?   The governing body must elect by resolution to become subject to the Act and file a copy of the resolution with the State Controller's Office. Section 22030. Sample documents are available at: http://www.sco.ca.gov/ard_cuccac.html. Once an agency has opted into the Act it will remain a part of the program.   6. May a public agency withdraw from the Act?   Yes. An agency may withdraw from the Act by filing a resolution of the agency’s election to withdraw with the State Controller's Office.   7. What is the California Uniform Construction Cost Accounting Commission?   It is the Commission created to administer the Act. Section 22010. It consists of fourteen (14) members: thirteen (13) members are appointed by the State Controller and one is a designated member of the Contractors’ State License Board. Seven members represent the public sector (counties, cities, school districts, and special districts). Six members represent the private sector (public works contractors and unions). The Commission members receive no salary, but are eligible for reimbursement of their direct expenses related to the Commission.   8. What are the Uniform Public Construction Cost Accounting Procedures?   They are procedures to be used to estimate costs for determining if a public project is required to be bid out and to capture and record actual costs when a public project is performed by the agency’s own work force found at www.sco.ca.gov/ard_cuccac.html. The procedures follow normal accounting in the industry and in many cases are not much different from those already in place at the agency. Sample forms are available in the CUCCAC Cost Accounting Policies and Procedures Manual at http://www.sco.ca.gov/Files-ARD- Local/CUCCAC_Manual.pdf   School districts may use the Standard Accounting Code Structure to comply with the tracking requirements. 9. Are the cost accounting policies and procedures applicable for agencies whose work force only performs maintenance tasks as defined in the Act and that contract all of its public projects to third parties?   The cost accounting policies and procedures are only applicable for agencies that perform public project work by force account. This does not exclude from the program agencies whose public projects are all contracted out. In fact, they might want to review the benefits available and elect to participate now in the event conditions change at some time in the future.         10. What is meant by the term “qualified contractors” as it pertains to the Act?   Qualified contractors are legally qualified contractors who perform work as a licensed contractor. In addition, the Commission has determined that nothing in the Act prohibits a participating agency from, at their discretion, using an objective pre-qualification process in the formation and maintenance of their Qualified Contractors lists.   11. Can a public agency disqualify or exclude certain contractors from the Qualified Contractors List required in Section 22034(a)(1)?   Agencies may disqualify contractors from the Qualified Contractors List when a contractor fails to furnish information to meet the minimum criteria as established by the Commission.   12. For agencies that do not maintain an informal bidders list, are they allowed to choose who will get notifications on information projects?   No. Section 22034(a)(2) provides for notifications to construction trade journals and exchanges in lieu of sending notifications to contractors on an informal bidders list.   13. What is the difference between qualifying contractors under the Act and requalification of contractors under Section 20101?   Qualifying contractors is a process that allows contractors to register with a public agency for notification of public works opportunities. The prequalification process under Section 20101 is a more complex process that requires a standardized questionnaire and evaluation of contractors using standard scoring criteria and does not apply to the Act. The prequalification process is applicable under the Local Agency Public Construction Act.   14. Must a public agency: (1) Notify contractors about public projects if the contractor is believed to not have the skills, credentials, or experience to perform the work required for the public project? (2) Consider bids submitted by a contractor that the public agency believes does not have the skills, credentials, or experience to perform the work?   a) Yes. If a contractor is on the Qualified Contractors List the contractor must be notified by the agency of public projects for which he is licensed to perform. Section 22034(a)(1) b) Yes. All bids received from qualified contractors must be considered. Section 22034(a)(1).     15. Does the Act allow flexibility in cases of emergency and when repair or replacements are necessary to permit the continued conduct of the operations or services of a public agency?   For the purposes of the Public Contract Code, “emergency” is defined at Section 1102 as “a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.”       The Act sets forth in Section 22035(a) how a governing body would proceed in the case of emergency repairs or replacements. This section states, “In cases of emergency when repair or replacements are necessary, the governing body may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the governing body, by contractor, or by a combination of the two.” Section 22050 et seq. provides the emergency contract procedures to be followed in these cases.   16. Do the alternative bidding procedures apply only to public projects as defined in Section 22002(c)?   No. The alternative bidding procedures can be used when contracting for “maintenance work” as defined at Section 22002(d) or when contracting for other work that does not fall within the definition of “public work” as defined in Section 22002(c). 17. What will membership in the Act cost my agency?   Nothing. There are no membership fees or dues. However, the Commission does accept grants to assist it in carrying out its duties. Section 22015(c). 18. What are the most common concerns addressed by the Act?   These are:   a) Cost accounting policies and procedures; b) Informal bidding procedures; c) Accounting procedures review.   The cost accounting requirements follow those common to the construction industry. The informal bidding on public projects up to $175,000 is seen by the agencies as an asset enhancing project completion. Maintenance of a Qualified Contractor Bid List is routine, since interested contractors make it a point to be included on the list. While an accounting procedures review could potentially hold up a project for a minimum of 45 days pursuant to Section 22043(c)(1),  these types of reviews have been rare in the Commission’s history.   19. Does an agency have to calculate an overhead rate in order to apply the accounting procedures?   No. Cities with populations of less than 75,000 shall assume an overhead rate equal to 20% of the total costs of the public project, including the costs of material, equipment and labor. Section 22017(b)(1). Cities with a population of more than 75,000, may either calculate an actual overhead or assume an overhead rate of 30% of the total costs of a public project including the costs of material, equipment and labor. Section 22017(b)(2).         20. When a public entity opts into the Act, does the Act supersede other contracting legal requirements such as statutory requirements for performance bonds, prevailing wages, and certificates of insurance, etc.?   No. The Act only supersedes the bidding procedures used once a public agency has opted into the Act and has notified the Controller. All other contracting requirements are applicable.   21. Can a public agency, claim to be to be exempt from following all of the requirements in the Public Contract Code by claiming they only have to follow the language and procedures within the Act?   The Act is part of the Public Contract Code therefore, if the Act is silent on a particular matter the rest of the Public Contract Code would apply.   22. If public agencies are not following the advertising requirements in the Act, will the Commission address those agencies? Can a complaint be brought to the Commission?   No. The Commission cannot review any complaint of improper advertising by any public agency. The Commission can only review the accounting procedures of a public agency when a complaint from an interested party provides evidence that the participating agency: 1.) Performs work, after rejecting all bids, claiming it can do it less expensively. (Section 22042(a)) 2.) The work performed exceeded the force account limits. (Section 22042(b)) 3.) The work has been improperly classified as maintenance. (Section 22042(c)) 4.) A public agency is accused of not complying with the informal bidding procedures set forth at Section 22034. (Section 22042.5) 23. Section 20112 specifically requires school districts to advertise twice for a two week period, while Section 22037 requires advertising once, 14 days in advance of the date of opening of bids. How do participating school districts reconcile this conflict?   When the Act is in conflict with any other section in the Public Contract Code, the Act shall supersede. Advertising once, 14 days in advance of the date of opening of bids is what is required by the Act. Districts participating in the Act may choose to maximize their outreach by continuing to advertise twice.   24. May a public agency contract separately for like work at the same site at the same time using the under $45,000 Force Account method?   No. Section 22033 provides that, “It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this article requiring work to be done by contract after competitive bidding”. Separating “like work” would only be permitted as long as the total of all the “like work” is less than $45,000. If the work is more than $45,000, the work needs to be advertised and bid according to the provisions of the Act (i.e. bid informally if the total amount is less than $175,000 and bid formally if the total amount exceeds $175,000).         25. May a public agency bid out 2 separate projects that occur at the same time and site, but are different types of work?   Yes, there is no violation if the work is being competitively bid. If the agency wants to use the negotiated or informal bidding processes, the agency must apply the appropriate limits to each of the projects. Each project must be separate in scope. Projects may not be separated by trade to avoid bidding. If the total of all jobs is greater than $45,000; the informal or formal bid limits will apply.   26. How does a public agency process change orders when the standard code conflicts with the Act?   For contracts below $45,000, the total cost of the contract may not exceed $45,000. For informal contracts, under the Act, the limit is $175,000. If the public agency is a school district, there may be additional limits and it is recommended the agency consult with their legal counsel for interpretation of change order limits. 27. Does a public agency by opting into the Act, automatically bring all departments of the public agency into the Act?    Yes. When a public agency elects to become subject to the uniform construction cost accounting procedures, the entire legal entity is considered subject to the Act and no divisions or departments will be exempt.   28. When a public agency opts into the Act, does it automatically bring all districts under control of the Board into the Act?   No. Special Districts, which are governed by a board of supervisors or city council, are only subject if a separate election is made for each special district. 29. PCC 22034 requires that participating agencies adopt an Informal Bidding Ordinance. What do school and special districts that cannot adopt Ordinances do to comply? The Commission cannot provide legal advice. The school districts and special districts should check with their own legal counsel on how to comply with Section 22034.       Additional inquiries and questions can be directed to:   State Controller's Office Division of Accounting and Reporting Local Government Policy Section P.O. Box 942850 Sacramento, CA 94250 Or email LocalGovPolicy@sco.ca.gov   California Uniform Public Construction Cost Accounting Act (CUPCCAA) September 7, 2016 Attachment F Presented by Bob Kennedy, Engineering Manager WHAT IS CUPCCAA? •The California Uniform Public Construction Cost Accounting Act (Act) was established in 1983 under Public Contract Code §22000 et seq. •The California Uniform Construction Cost Accounting Commission (CUCCAC) was created by Public Contract Code §22010 to govern the Act 2 Who May Participate? •Any local agency may opt into the Act - Cities - Counties - Community College Districts - School Districts - Special Districts •Participation is voluntary 3 Participating Agencies 218 44 40 402 292 0 50 100 150 200 250 300 350 400 450 Cities Community College Districts Counties School Districts Special Districts To t a l N u m b e r Agency Type Total Participating Member Agencies – 996 as of June 30, 2016 4 Benefits of the Act Allows participating agencies to: •Raise bidding thresholds •Simplify bidding process for small projects •Perform larger projects with agency employees No Bids Required: •Projects below $45,000 may be performed by: - Agency’s own workforce, by force account - Negotiated Contract - Purchase Order To ensure the District is getting the required scope of work for the best price, obtaining multiple quotes will be solicited. 5 Benefits of the Act (cont’d) Informal Bids: •Project value $45,000 - $175,000 •Competitive bids using informal bidding procedures: - Bidders list - Trade journals and exchanges •Award bids by the General Manager within his authority, otherwise, would go to the Board Formal Bids: •Public projects greater than $175,000 •Competitive bids following Public Contract Code 6 How to Opt In •Board adopts a resolution •District adopts a policy outlining informal bidding procedures •District notifies the State Controller’s office •District follows the regulations and guidelines outlined in the Cost Accounting Policies and Procedures Manual •Entire District becomes subject to the Act •Once the District has opted in, it must conform to the uniform cost accounting procedures until the District opts out of the Act by adopting a resolution opting out and forwarding said resolution to the State Controller 7 Public Works Laws Still Apply •Contractor Must Pay Prevailing Wages (Labor Code §1771) •Payment Bond Required - Civil Code §9550: “Every original contractor to whom is awarded a contract by a public entity…in excess…of $25,000 for any public work shall file a payment bond.” •SB 854 –Agency must comply with the requirements - DIR Registered Contractors - Notification of award to DIR - Specifying requirements in bid and contract documents 8 Procedures for Informal Bidding •District procedures for informal bidding: - District maintains list of registered contractors, identified by work category; - District mails notice inviting bids at least ten (10) days before bids due to: •All contractors on list for category of work; or •Specified trade journals; or •Both •Notice should describe project in general terms with information for how to obtain detailed information and time and place for submission of bids. -Will often include site walk, where appropriate 9 Procedures for Informal Bidding (cont’d) •Notice need not include drawings, plans, etc., unless required for preparing bid. •If all bids received exceed $175,000, Board may pass a resolution by a four-fifths majority awarding contract at $187,500 or less to lowest responsible bidder, if it determines District’s cost estimate was reasonable. 10 Emergency Contracts •In cases of emergency when repair or replacements are necessary, the Board may proceed at once to replace or repair any facility without adopting plans, specifications, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the Board, by contractor, or by a combination of the two. •By a four‐fifths vote of the Board, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. •By a four‐fifths vote of the Board, the authority to enter emergency contracts may be delegated as long as the designee takes the action to the Board within seven (7) days or at its next regularly scheduled meeting which shall be no more than fourteen (14) days after the action was taken. The designee must report at each following meeting until the action is terminated (contract completed). – Code is in conflict with boards that meet on a monthly basis. For the District, this is very unlikely; but if this happens, the District will need to call for a Special Board Meeting.11 Accounting Procedures Under CUPCCAA •Agencies must account for force account work. There are a number of methods that may be used to accomplish the accounting requirements. •The Commission notes that all cost elements ‐‐personnel, materials, supplies and subcontracts, equipment and overhead ‐‐associated with a project must be recorded and reported at the project level (see worksheet provided on State Controller’s website). 12 Questions / Reference Sources CUCCAC web page: http://www.sco.ca.gov/ard_cuccac.html Cost Accounting Policies and Procedures Manual FAQs References and Resources Past Meeting Minutes and Reports Contact Commissioners and State Controller’s office 13 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 SUBMITTED BY: Mark Watton, General Manager W.O./G.F. NO: DIV. NO. APPROVED BY: SUBJECT: Adoption of Ordinance No. 557 Amending the Appendix of the Conflict of Interest Code GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 557 amending the Appendix of Section 6, Conflict of Interest Code (COIC), contained within the District’s Code of Ordinances to update the position titles required to file a Form 700 and to include language in Section 6.02 which will allow the General Manager or his designee to designate positions to be included in the COIC’s Appendix at any time between the biennial review periods. COMMITTEE ACTION: See Attachment A. PURPOSE: To amend the Appendix of Section 6, COIC, contained within the District’s Code of Ordinances to update the position titles required to file a Form 700 and to include language that allows the General Manager or his designee to designate positions to be included in the COIC’s Appendix at any time between the biennial review periods. ANALYSIS: As required by the Political Reform Act (“Act”), staff has conducted a biennial review of the District’s COIC. The District’s Attorney has advised that there were no changes in the law which needs to be addressed in the District’s COIC. However, the District’s Attorney has suggested that the District include the following paragraph in Section 6.02 of the COIC should it be determined, between the biennial review periods, that a new position must be included in the Appendix’s list of designated Form 700 filers: “The General Manager or his/her designee shall have the authority to designate any person holding a position within the District as a person designated to provide disclosures regardless of whether or not the position that the person holds is included in the Appendix if, in the view of the General Manager or his/her designee, the person has the potential to make or participate in the making of decisions which may foreseeably have a material effect on financial interests.” The District has also made organizational changes that affect the titles listed in its Conflict of Interest Code. The following titles no longer exist and are being deleted from the Appendix of the COIC:  Asst. Chief Administrative Services and Information Technology  Chief Information Officer  Water Conservation Manager Additionally, the titles of Safety and Security Administrator and Senior Buyer are being changed as follows respectively:  Safety and Security Specialist  Senior Procurement and Contracting Analyst Ordinance No. 557 is submitted for the Board’s ratification to amend the Appendix of Section 6 as noted above. A strike-thru copy of the Appendix is attached to the ordinance for reference. FISCAL IMPACT: None. LEGAL IMPACT: None. Attachments: Attachment A – Committee Notes Attachment B - Ordinance No. 557 Strike-Thru Copy of the Appendix of Section 6 ATTACHMENT A SUBJECT/PROJECT: Adoption of Ordinance No. 557 Amending the Appendix of the Conflict of Interest Code COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on August 23, 2016 and the following comments were made:  The Conflict of Interest Code is reviewed biannually as required by the Political Reform Act.  Staff reviewed the information in the staff report.  Staff indicated that the Conflict of Interest Code (COIC) has also been reviewed by the District’s Attorney and she indicated that there were no new statutes which need to be reflected within the District’s COIC. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board on the consent calendar. Page 1 of 1 ORDINANCE NO. 557 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 6, CONFLICT OF INTEREST CODE, OF THE DISTRICT’S CODE OF ORDINANCE BE IT ORDAINED by the Board of Directors of Otay Water District that the Appendix of the District’s Conflict of Interest Code, Section 6 of the Code of Ordinances shall be amended as per Exhibit 1 (attached). NOW, THEREFORE, BE IT RESOLVED that the amendments to Section 6, Conflict of Interest Code, of the District’s Code of Ordinances shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 7th day of September 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary Attachment B 6-1 DIVISION I DISTRICT ADMINISTRATION CHAPTER 5 PERSONNEL PRACTICES SECTION 6 CONFLICT OF INTEREST CODE 6.01 DEFINITIONS The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code. 6.02 DESIGNATED EMPLOYEES The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests. The General Manager or his/her designee shall have the authority to designate any person holding a position within the District as a person designated to provide disclosures regardless of whether or not the position that the person holds is included in the Appendix if, in the view of the General Manager or his/her designee, the person has the potential to make or participate in the making of decisions which may foreseeably have a material effect on financial interests. 6.03 DISCLOSURE CATEGORIES This Code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interest pursuant to Article 2 of Chapter 2 of the Political Reform Act, Government Code Sections 87200, et seq.1 In addition, this code does not establish any disclosure obligation for any designated public officials who are designated in a conflict of interest code for another agency, if all of the following apply: 1 Designated employees who are required to file statements of economic interest under any other agency’s Conflict of Interest Code or under Article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interest in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and district statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. Exhibit 1 6-2 (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; (B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies. Such persons are covered by this Code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of financial interest are reportable. Such a designated employee shall disclose in his or her statement of economic interest those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the financial interests set forth in a designated employee’s disclosure categories are the kinds of financial interest which he or she foreseeably can affect materially through the conduct of his or her office. 6.04 STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING All officials and employees required to submit a statement of economic interest (employees in Designated Positions) shall file their statements with the General Manager, or his or her designee. The District shall make and retain a copy of all statements filed by Designated Positions and forward the originals of such statements to the Executive Office of the Board of Supervisors of San Diego County. All retained statements, originals or copies shall be available for public inspection and reproduction. (Cal. Gov’t Code § 81008)2 6.05 STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject 2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 6-3 to State Senate confirmation, 30 days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. 6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or a leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: 1. File a written resignation with the appointing power; and 2. File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. 6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC INTERESTS (A) Contents of Initial Statements Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or on the date of appointment, and income received during the 12 months prior to the date of assuming office or the date of being appointed, respectively. 6-4 (C) Contents of Annual Statements Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on the effective date of the code or the date of assuming office, whichever is later. (D) Contents of Leaving Office Statements Leaving office statements shall disclose reportable investments, interest in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. 6.08 MANNER OF REPORTING Statements of economic interest shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure When an investment or an interest in real property3 is required to be reported4, the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise location of the real property; 4. A statement whether the fair market value of the investment or interest in real property exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds 3 For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 6-5 one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure When personal income is required to be reported5, the statement shall contain: 1. The name and address of each source of income aggregating $500 or more in value or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received; 5. File In the case of a loan, the annual interest rate and the security, if any, given for the loan. (C) Business Entity Income Disclosure When income of a business entity, including income of a sole proprietorship is required to be reported6, the statement shall contain: 1. The name, address and a general description of the business activity of the business entity; 5 A designated employee’s income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6 Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. 6-6 2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than $10,000. (D) Business Position Disclosure When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity. (E) Acquisition or Disposal During Reporting Period In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. 6.09 PROHIBITION ON RECEIPT OF HONORARIA A. No designated public official shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. This section shall not limit or prohibit payments, advances, or reim- bursements for travel and related lodging and subsistence authorized by Government Code section 89506. 6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT ESTABLISHED BY LAW7 A. No designated public official shall accept gifts with a total value of more than the maximum amount established by law, in any calendar year, from any single source, if the member or employee would 7 Designated Persons are prohibited from accepting gifts from any single source in a calendar year with a total value in excess of designated amounts. See Govt. Code § 89503, sub-divisions (e), (f) and (g). [Note: Pursuant to 2 CCR § 18940.2 (b), the FPPC adjusts the gift limit every odd-numbered year to reflect changes in the Consumer Price Index; therefore, the $390 limit adopted by the FPPC in January of 2007 will be updated in January 2009 and every odd year thereafter, until further notice.] 6-7 be required to report the receipt of income or gifts from that source on his or her statement of economic interests. Subdivisions (e), (f), and (g) of Government Code section 89503 shall apply to the prohibitions in this section. 6.11 LOANS TO PUBLIC OFFICIALS A. No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer’s agency has direction and control. B. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. C. No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. D. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision 6-8 shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. E. This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in- law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time. 4. Loans made, or offered in writing, before January 1, 1998. 6.12 LOAN TERMS A. Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. B. This section shall not apply to the following types of loans: 1. Loans made to the campaign committee of the elected officer. 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in- law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January 1, 1998. 4. Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. 6.13 PERSONAL LOANS 6-9 A. Except as set forth in subdivision (B), a personal loan received by any designated public official shall become a gift to the designated public official for the purposes of this section in the following circumstances: 1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. B. This section shall not apply to the following types of loans: 1. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. C. Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. 6.14 DISQUALIFICATION No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the 6-10 making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: (A) Any business entity in which the designated employee has a direct or indirect investment worth $2,000 or more; (B) Any real property in which the designated employee has a direct or indirect interest worth $2,000 or more; (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating $500 or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating to the maximum amount established by law, or more, in value provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made. 6.15 LEGALLY REQUIRED PARTICIPATION No designated public official shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated public official who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section. 6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES In addition to the general disqualification provisions of Section 6.14, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: 6-11 (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value $1000 or more. 6.17 DISCLOSURE OF DISQUALIFYING INTEREST When a designated public official determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. 6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. 6.19 VIOLATIONS This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91015. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. 6.20 PROHIBITED TRANSACTIONS Members of the Board of Directors and Designated Employees shall comply with the Prohibited Transactions policy, annexed hereto as Exhibit A, pursuant to California Government Code Sections 1090, et seq. 6.21 INCOMPATIBLE ACTIVITIES Members of the Board of Directors, District officers, and all other District employees shall comply with the Incompatible Activities policy, annexed hereto as Exhibit B, pursuant to California Government Code Sections 1126, et seq. 6-12 APPENDIX OTAY WATER DISTRICT CONFLICT OF INTEREST CODE DESIGNATED POSITIONS The Treasurer and all District Officials who manage the investment of public funds are included in and governed by this Conflict of Interest Code only with respect to its disqualification provisions. For purposes of disclosure, the Treasurer and all District Officials who manage the investment of public funds are governed by the statutory conflict of interest provisions of Article 2 of Chapter 7 of the Political Reform Act of 1974. (Government Code Sections 87200, et seq.) DESIGNATED EMPLOYEES’ TITLE OR FUNCTION__ DISCLOSURE CATEGORIES ASSIGNED Members of the Board of Directors 1, 2, 3, 4, 5, 6 General Manager 1, 2, 3, 4, 5, 6 District Secretary 6 Assistant Chief Administrative Services and Information Tech. 1, 2, 3, 4, 5, 6 Assistant Chief of Water Operations 1, 2, 3, 4, 6, 7 Assistant General Manager 1, 2, 3, 4, 5, 6, 7 Chief of Administrative Services 1, 2, 3, 4, 5, 6, 7 Chief Financial Officer 1, 2, 5, 6, 7 Chief Information Officer 1, 2, 3, 6, 7 Chief of Engineering 1, 2, 3, 4, 6, 7 Chief of Water Operations 1, 2, 3, 4, 6, 7 Associate Civil Engineer 1, 2, 3, 4, 7 Communications Officer 6 Customer Service Manager 2, 5, 7 Environmental Compliance Specialist 1, 2, 3, 4, 7 6-13 Engineering Manager 1, 2, 3, 4, 7 Field Services Manager 1, 2, 3, 4, 7 Finance Manager, Controller, and Budget 2, 5, 7 Finance Manager, Treasury, and Accounting 2, 5, 7 GIS Manager 3, 6, 7 Human Resources Manager 3, 6 IT Manager 3, 6, 7 Network Engineer 3, 6, 7 Purchasing and Facilities Manager 2, 6 Safety and Security AdministratorSpecialist 1, 2, 3, 4, 6 Senior Buyer Procurement and Contracting Analyst 6 Senior Civil Engineer 1, 2, 3, 4, 7 System Operations Manager 1, 2, 3, 4, 7 Utility Services Manager 1, 2, 3, 4, 7 Water Conservation Manager 2, 3, 4, 6 Consultant8 1, 2, 3, 4, 5, 6 8 Consultants are required to file disclosure statements where they: (a) conduct research and arrive at conclusions with respect to rendition of information, advice, recommendation or counsel independent of control and direction of the agency or any agency official other than normal contract monitoring; and (b) possess no authority with respect to any agency decision beyond the rendition of information, advice, recommendation or counsel. The determination as to whether a consultant shall be required to file a disclosure statement shall be made by the General Manager or his or her designee. 6-14 APPENDIX, CONTINUED DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property which the designated employee must disclose for each disclosure category to which he or she is assigned. Category 1: All investments and business positions in, and sources of income from, all business entities that do business or own real property in the District, plan to do business or own real property in the District within the next year or have done business or owned real property in the District within the past two years. Category 2: All interests in real property which are located in whole or in part within, or not more than two (2) miles outside the boundaries of the District. Category 3: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit or licensing authority of the Designated Employee’s Department, will be subject to such authority within the next year or have been subject to such authority within the past two years. Category 4: All investments, business positions, and sources of income from, business entities that are engaged in land development, construction or the acquisition or sale of real property in the District, plan to engage in such activities in the District within the next year or have engaged in such activities in the District within the past two years. Category 5: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan or other financial institutions. Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery or equipment of a type purchased, leased, used, or administered by the District. Category 7: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery or equipment of a type purchased, leased, used, or administered by the Designated Employee’s Department. 6-15 EXHIBIT A Prohibited Transactions for Specified Personnel Members of the Board of Directors (“Members”) shall comply with this Prohibited Transactions policy pursuant to California Government Code §§ 1090, et seq. Members shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Members shall not be purchasers at any sale or vendors at any purchase made by them in their official capacity. Members shall not be deemed to be interested in a contract entered into by a body or board of which they are members if the Member has only a remote interest in the contract and if the fact of that interest is disclosed to the body or board of which the Member is a member and noted in its official records, and thereafter the body or board authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the Board of Directors member with the remote interest. “Remote interest” shall be defined as in California Government Code § 1091(b). Members shall not be considered to be financially interested in a contract if their interest is including, but not limited to, any of the following (Government Code § 1091.5): 1. That of an officer in being reimbursed for his/her actual and necessary expenses incurred in the performance of an official duty; 2. That of a recipient of public services generally provided by the public body or board of which he/she is a member, on the same terms and conditions as if he or she were not a member of the board; 3. That of a landlord or tenant of the contracting party if such contracting party is the federal government or any federal department or agency, this state or an adjoining state, any department or agency of this state or an adjoining state, any county or city of this state or an adjoining state, or an public corporation or special, judicial or other public district of this state or an adjoining state unless the subject matter of such contract is the property in which such officer or employee has such interest as landlord or tenant in which even his/her interest shall be deemed a remote interest within the meaning of, and subject to, the provisions of Government Code 1091; 4. That of a spouse of an officer or employee of a public agency if his/her spouse’s employment or office-holding has 6-16 existed for at least one year prior to his/her election or appointment; 5. That of a non-salaried member of a nonprofit corporation, provided that such interest is disclosed to the board at the time of the first consideration of the contract, and provided further that such interest is noted in its official records; 6. That of a non-compensated officer of a nonprofit, tax-exempt corporation, which, as one of its primary purposes, supports the functions of the board or to which the board has legal obligation to give particular consideration, and provided further that such interest is noted in its official records; 7. That of compensation for employment with a governmental agency, other than the governmental agency that employs the officer or employee, provided that the interest is disclosed to the board at the time of consideration of the contract, and provided further that the interest is noted in its official records; 8. That of an attorney of the contracting party of that of an owner, officer, employee or agent of a firm which renders, or has rendered, service to the contracting party in the capacity of stockbroker, insurance agent, insurance broker, real estate agent, or real estate broker if these individuals have not received and will not receive remuneration, consideration, or a commission as a result of the contract and if these individuals have an ownership interest of less than 10 percent in the law practice or firm, stock brokerage firm, insurance firm or real estate firm. In addition, Members shall not be deemed to be interested in a contract made pursuant to competitive bidding under a procedure established by law if their sole interest is that of an officer, director, or employee of a bank or savings and loan association with which a party to the contract has the relationship of borrower or depositor, debtor or creditor (Government Code § 1091.5). Authority: California Government Code §§ 1090, et seq. 6-17 EXHIBIT B Incompatible Activities Policy District officers, members of the Board of Directors, and all other District employees (collectively, “district personnel”) shall comply with this Incompatible Activities policy pursuant to California Government Code §§ 1126, et seq. District personnel shall not engage in any employment, activity, or enterprise for compensation which is inconsistent, incompatible, in conflict with, or inimical to his or her duties as a member of the Board of Directors, or with the duties, functions, or responsibilities of his or her appointing power or the agency by which he or she is employed. The outside employment, activity, or enterprise of district personnel is prohibited if it: (1) involves the use for private gain or advantage of his or her local District time, facilities, equipment and supplies; or the badge, uniform, prestige, or influence of his or her local District office or employment or, (2) involves receipt or acceptance by district personnel of any money or other consideration from anyone other than the District for the performance of an act which district personnel, if not performing such act, would be required or expected to render in the regular course or hours of their local District employment or as a part of their duties as a local District officer or employee or, (3) involves the time demands as would render performance of his or her duties as a local district personnel member less efficient. Nothing in this policy shall be interpreted to prohibit any outside employment, activity, counsel, or enterprise on behalf of another governmental entity, subject to common law and professional conflict of interest rules. Copies of this regulation shall be posted in prominent places at the District Office. District personnel who violate this regulation may be subject to discipline as set forth in the applicable Code of Ordinances and Policies. Board of Directors members who violate this section may be subject to censure. Disciplinary appeals by district personnel shall be handled pursuant to applicable Code of Ordinances and Policies. Authority: California Government Code §§ 1125, et seq. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 PROJECT: DIV. NO. ALL SUBMITTED BY: Kelli Williamson Human Resources Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: ADOPT RESOLUTION #4311 TO UPDATE BOARD POLICY #19, SMOKING, TOBACCO, AND NICOTINE FREE CAMPUS GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution #4311 to update Board Policy #19, Smoking, Tobacco, and Nicotine Free Campus, due to recent legislation expanding the workplace prohibition against smoking including electronic cigarettes. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To request that the Board adopt Resolution #4311 to update Board Policy #19, Smoking, Tobacco, and Nicotine Free Campus. ANALYSIS: Consistent with the District’s Strategic Plan and Board Policy #44, Review of Procedures, the District regularly reviews policies and procedures to ensure they are streamlined and are clear and consistent with applicable laws. Based on recent changes to the California Legislation on electronic cigarettes, District staff is recommending revisions to the attached policy, Smoking, Tobacco, and Nicotine Free Campus (Attachment C). Updates are detailed below and revisions are shown in the attached strike-through version of the policy (Exhibit 1). Smoking, Tobacco, and Nicotine Free Campus (Board Policy #19) The Smoking, Tobacco, and Nicotine Free Campus is being updated due to recent legislation expanding the workplace prohibition against smoking including electronic cigarettes. Therefore, the District is recommending to include in the policy the prohibition of various smoking products such as e-cigarettes, vaping (with or without nicotine) and tobacco and nicotine products on District property, in District vehicles and at areas designated as District field work sites. In addition, definitions were added to ensure there is clarity and consistency in administrating the policy. The Association has agreed to the policy as presented and General Counsel has reviewed the proposed updates. Based on the above, it is recommended that the Board of Directors adopt Resolution #4311 in support of the proposed revisions. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Optimize the District’s Operating Efficiency. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Resolution #4311 Exhibit 1 – Smoking, Tobacco, and Nicotine Free Campus Attachment C – Proposed Copy, Smoking, Tobacco, and Nicotine Free Campus (Board Policy #19) ATTACHMENT A SUBJECT/PROJECT: ADOPT RESOLUTION #4311 TO UPDATE BOARD POLICY #19, SMOKING, TOBACCO, AND NICOTINE FREE CAMPUS COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on August 23, 2016 and the following comments were made:  Staff indicated that this report covers proposed updates to Board Policy No. 19, Smoking, Tobacco and Nicotine Free Campus Policy.  The updates include adding definitions and expanding the policy to include newer forms of smoking such as vaping and e-cigarettes (with or without nicotine). The definitions mirror definitions in legislation that were recently adopted. The District wishes to ensure that it is clear that no smoking of any kind is allowed on the District premises, in District vehicles and at District field work sites.  Staff noted that the Employee Association has reviewed the policy and had no questions.  Staff is recommending that the board adopt Resolution No. 4311 to update Board Policy No. 19, Smoking, Tobacco, and Nicotine Free Campus. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board on the consent calendar. 1 RESOLUTION NO. 4311 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT TO REVISE DISTRICT POLICY WHEREAS, the Board of Directors of Otay Water District have established policies, procedures, ordinances, and resolutions for the efficient operation of the District; and WHEREAS, it is the policy of the District to establish procedures to review policies, procedures, ordinances, and resolutions periodically to ensure they are current and relevant; and WHEREAS, District staff has identified Board Policy #19, Smoking, Tobacco, and Nicotine Free Campus, as requiring revisions as per the attached strike-through copy. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Otay Water District amends the Board Policies indicated above in the form presented to the Board at this meeting. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 7th of September, 2016. __________________________ President ATTEST: ___________________________ Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised SMOKING, TOBACCO AND NICOTINE FREE CAMPUS 19 3/6/89 10/7/09 9/7/16 Page 1 of 2 PURPOSE To establish the policy regarding smoking, vaping, and the use of e- cigarettes, tobacco, and nicotine products on District property. This policy applies to all employees, consultants, volunteers and visitors while on District property, in District vehicles, and at areas designated as District field work sites. DEFINITIONS 1. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated tobacco or plant product intended for inhalation, whether natural or synthetic, in any manner or form. “Smoking” includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking. 2. “Tobacco and Nicotine product” means any of the following: A. A product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to cigarettes, cigars, little cigars, chewing tobacco, smokeless tobacco, dissolvable tobacco, pipe tobacco, or snuff. B. An electronic device that delivers nicotine or other vaporized liquids to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, pipe, or hookah. C. Any component, part, or accessory of a tobacco product, whether or not sold separately. 3. “Use” means any method of consuming Tobacco and Nicotine Products including, but not limited to, Smoking, inhaling, chewing, burning, vaping (with or without nicotine), or the use of e- cigarettes and similar methods and devices. POLICY 1. The Otay Water District is dedicated to maintaining a safe and productive working environment for its employees and is committed to taking appropriate action to eliminate threats to employees' health and safety posed by Smoking, vaping, e-cigarettes and the Uuse of Ttobacco and Nicotine Pproducts. “Use” means a method of consuming tobacco products, including but not limited to smoking, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised SMOKING, TOBACCO AND NICOTINE FREE CAMPUS 19 3/6/89 10/7/09 9/7/16 Page 2 of 2 inhaling and chewing. “Tobacco product” means any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, bidis or any other preparation of tobacco. 2. This policy prohibits Smoking, vaping (with or without nicotine), e-cigarettes, and the Uuse of Ttobacco and Nicotine Pproducts within District- controlled properties where employees and other persons will be exposed to secondhand smoke, vaping and/or smokeless Ttobacco and Nicotine residue. AccordinglyHence, Smoking, vaping, e-cigarettes and the Uuse of Ttobacco and Nicotine Pproducts is prohibited on all District-owned property, vehicles and aton District- designated field work sites. Notwithstanding the foregoing, the Uuse of nicotine gum and patches intended and used for smoking-cessation are permissible. 3. No ashtrays or other ash receptacles will be placed in areas where Smoking, vaping, e-cigarettes or the Uuse of Ttobacco and Nicotine Pproducts is prohibited. The only exceptions will be outside the public entrances to District facilities, in order to assist visitors in discarding of their tobacco products. RESPONSIBILITY Managers and supervisors are responsible for enforcing this policy in areas under their control. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised SMOKING, TOBACCO AND NICOTINE FREE CAMPUS 19 3/6/89 9/7/16 Page 1 of 2 PURPOSE To establish the policy regarding smoking, vaping, and the use of e- cigarettes, tobacco, and nicotine products on District property. This policy applies to all employees, consultants, volunteers and visitors while on District property, in District vehicles, and at areas designated as District field work sites. DEFINITIONS 1. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated tobacco or plant product intended for inhalation, whether natural or synthetic, in any manner or form. “Smoking” includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking. 2. “Tobacco and Nicotine product” means any of the following: A. A product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to cigarettes, cigars, little cigars, chewing tobacco, smokeless tobacco, dissolvable tobacco, pipe tobacco, or snuff. B. An electronic device that delivers nicotine or other vaporized liquids to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, pipe, or hookah. C. Any component, part, or accessory of a tobacco product, whether or not sold separately. 3. “Use” means any method of consuming Tobacco and Nicotine Products including, but not limited to, Smoking, inhaling, chewing, burning, vaping (with or without nicotine), or the use of e- cigarettes and similar methods and devices. POLICY 1. The Otay Water District is dedicated to maintaining a safe and productive working environment for its employees and is committed to taking appropriate action to eliminate threats to employees' health and safety posed by Smoking, vaping, e-cigarettes and the Use of Tobacco and Nicotine Products. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised SMOKING, TOBACCO AND NICOTINE FREE CAMPUS 19 3/6/89 9/7/16 Page 2 of 2 2. This policy prohibits Smoking, vaping (with or without nicotine), e-cigarettes, and the Use of Tobacco and Nicotine Products within District-controlled properties where employees and other persons will be exposed to secondhand smoke, vaping and/or smokeless Tobacco and Nicotine residue. Accordingly, Smoking, vaping, e- cigarettes and the Use of Tobacco and Nicotine Products is prohibited on all District-owned property, vehicles and at District-designated field work sites. Notwithstanding the foregoing, the Use of nicotine gum and patches intended and used for smoking-cessation are permissible. 3. No ashtrays or other ash receptacles will be placed in areas where Smoking, vaping, e-cigarettes or the Use of Tobacco and Nicotine Products is prohibited. The only exceptions will be outside the public entrances to District facilities, in order to assist visitors in discarding of their products. RESPONSIBILITY Managers and supervisors are responsible for enforcing this policy in areas under their control. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 SUBMITTED BY: Rita Bell, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Ratify Emergency Contracted Work Performed by Kirk Paving for the Greensview Drive Main Break Repair GENERAL MANAGER’S RECOMMENDATION: That the Board ratify the emergency contracted work performed by Kirk Paving for the Greensview Drive main break repair. COMMITTEE ACTION: See Attachment A. PURPOSE: To request that the Board ratify the contract entered into with Kirk Paving for emergency repairs associated with the Greensview main break as previously authorized by the General Manager under an emergency declaration consistent with the Code of Ordinances. ANALYSIS: On May 4, 2016, the General Manager presented to the Board a Declaration of Emergency (see Attachment B) due to the Greensview Drive main break. This main break occurred on May 3, 2016 and because of the extensive damage, the repair cost exceeded $500,000. In the past, our insurance carrier, SDRMA, would contract for the work directly, but they changed their processes, necessitating the District to contract for this work and then request reimbursement from SDRMA. Because the contract with Kirk Paving exceeded the General Manager’s authority under Code of Ordinances Section 2.01, ratification of the contract with Kirk Paving is required by the Board. The following is a summary of the expenditures and reimbursements from SDRMA: Vendor Service Amount Kirk Paving Emergency Paving $ 49,100.07 Paving $ 457,106.65 Sealing, Striping $ 62,552.38 Subtotal Kirk Paving (contract to be ratified) $ 568,759.10 Hudson Safe-T- Lite Traffic Control $ 567.60 City of Chula Vista CCTV sewer main and storm drains, clean storm drain line $ 4,250.09 Kenny's Clean Sweep Street Sweeping So. Greensview $ 600.00 Subtotal Other Cost $ 5,417.69 Total Cost $ 574,176.79 Reimbursement from SDRMA $ (573,676.79) Deductible $ 500.00 FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Ensure that all contracts are approved in accordance with the Code of Ordinances. LEGAL IMPACT: None. Attachments: A – Committee Action B - Declaration of Emergency Memo ATTACHMENT A SUBJECT/PROJECT: Ratify Emergency Contracted Work Performed by Kirk Paving for the Greensview Drive Main Break Repair COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on August 23, 2016 and the following comments were made:  Staff is requesting that the Board ratify the emergency contracted work performed by Kirk Paving for the repair of the Greensview Drive main break.  Staff reviewed the information in the staff report.  Staff noted that staff will need to change its practices to adapt to SDRMA’s new claim procedures. The District did not know of the new procedures until the Greensview Drive main break occurred. Staff explained that after the pipeline is repaired, the damaged road would need to be repaired. Road repair is not the District’s specialty and the City of Chula Vista would be the claimant for the road repair. In the past, SDRMA would have handled and managed the road repair which has now been turned over to the District. SDRMA has verbally indicated that the District is now responsible for the management of this repair along with the pipeline repair.  Now that staff is aware of the new procedures, staff is exploring the possibility of reimbursement of (third party) Construction Management. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board on the consent calendar. Declare Emergency Memo 090716 MEMORANDUM TO: Board of Directors FROM: Mark Watton Date 5/4/16 SUBJ: Greensview Drive Main Break -- Declaration of Emergency Incendent On May 3, 2016 at approximately 3:00 p.m. staff was notified of a main break and discovered a 16" potable water main broke underneath the road on Greensview and West Hunte Parkway in Chula Vista. Pipeline & Sinkhole Repair Status Staff have completed Greensview Drive repairs of the 16 inch pipeline and are restoring it to service at this time. Additionally, we expect to complete the immediate repairs of the associated sinkhole this afternoon. Road Repair Status Staff completed the joint meeting today and coordinated the needed immediate, interim and permanent road repairs needed for safe public access. The District was to complete the immediate repairs to the sinkhole today and the remaining repairs were to be contracted and completed by our insurance carrier, SDRMA, per our standard protocol. However, SDRMA informed us this afternoon that they can no longer contract work out directly and needed the District to contract the repair work and then request to be reimbursed. The temporary repairs are estimated to be approximately $60k and may exceed the authority of the General Manager. Therefore, staff requested that the General Manager declare an emergency pursuant to the District Code of Ordinance 2.01 (I) to expedite the needed repairs to allow safe access. Based on the declaration made by the General Manager, staff has contacted the emergency paving contractor who will be mobilizing this afternoon and commence temporary repairs. As a reminder, we anticipate full reimbursement by SDRMA of these temporary road repairs. Below is the relevant code section:    I. To declare an emergency and, in such event, to have the additional powers specified in the District’s  emergency management plan, referred to as the National Incident Management System (NIMS), and  below, pursuant to California Contract Code Section 22050. An emergency is a sudden, unexpected  occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate  the loss or impairment of life, health, property, or essential public services. 1. In a declared emergency,  the General Manager may direct employees, take action to continue or restore service capability, and  execute any contracts for necessary equipment, services, or supplies directly related and required by the  emergency. Notwithstanding the limits imposed in the prior paragraphs of this Section 2.01, or by any  other policy or guideline of the District, in an emergency, the General Manager may award and execute  contracts for goods, services, work, facility or improvement, without bidding and without regard to  said limits, provided that the goods, services, work, facilities or improvements acquired or contracted  for are of an urgent nature, directly and immediately required by the emergency. Any contract for goods  or services with a value of more than $250,000 shall be subject to ratification by the Board at its first  regularly scheduled meeting following the declaration of the emergency to which the contract relates.  Any contract for work, facilities or improvements with a value of more than $500,000 shall be subject to  ratification by the Board at its first regularly scheduled meeting following the declaration of the  emergency to which the contract relates.     Attachment B Declare Emergency Memo 090716 2. The General Manager shall report to the Board not later than 48 hours after the emergency action or  at the next regularly scheduled meeting, whichever is earlier. The report shall include the details of the  emergency and reasons justifying the actions taken, and provide an accounting of the funds expended  or yet to be expended in connection with the emergency.    STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Kent Payne Purchasing and Facilities Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: ADOPT ORDINANCE NO. 558 TO ESTABLISH A GENERAL MANAGER’S PURCHASE AUTHORIZATION AUTHORITY OF $125,000 GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 558 amending subdivision “E” of Section 2.01 of the Code of Ordinance to establish a General Manager's signatory authority of $125,000. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To establish a General Manager signatory authority of $125,000 to align with the current operating budget; to support the streamlined and efficient procurement of goods and services; and, to reduce project, service and material acquisition times. ANALYSIS: At the Board meeting held January 17, 2001, the Board of Directors adopted Ordinance No. 485 amending the District's Code of Ordinances raising the General Manager's signatory authorization limit to $50,000. The District’s operating budget for that fiscal year (2000-2001) was $33.4 million with a staffing level of 161 employees. The District’s current 2015-2016 operating budget is $89 million or 2.7 times that of 2000-2001 with a staffing level of 135 for an 8.4% reduction in force. A General Manager’s signatory authority today, by 2000-2001 standards, would be equal to $133,234. A sample survey of signatory authority and operating budgets of local and regional agencies was conducted and results are as follows: AGENCY AUTHORITY OPERATING BUDGET (MIL) OTAY EQUIVALENT AUTHORITY Rincon del Diablo Water District $25,000 $16 $139,063 Padre Dam Water District $50,000 $25 $178,000 City of Santa Cruz Water Admin $100,000 $27 $329,630 Rainbow Water District $50,000 $34 $130,882 Ramona Water District $30,000 $34 $78,529 Santa Fe Irrigation District No Limit $35 San Diego Convention Center $100,000 $36 $247,222 Sweetwater Authority $75,000 $46 $145,109 Olivenhain Water District $50,000 $70 $63,571 City of Carlsbad $100,000 $72 $123,611 Helix Water District $50,000 $73 $60,959 City of Poway No Limit $83 Otay Water District $50,000 $89 $50,000 Otay Water District – 2001 $50,000 $33 $133,234 Western Municipal Water District $100,000 $113 $78,761 Port of San Diego $125,000 $169 $65,828 City of Corona $125,000 $270 $41,204 City of Chula Vista $75,000 $294 $22,704 County Water Authority $50,000 $1,500 $2,967 City of San Diego $1,000,000 $3,300 $26,970 The average authority for the survey group is $126,764 which ranges from a low of $25,000 to $1 million for the City of San Diego. The average equivalent authority is $109,877 (equivalent authority calculates the differences between Agency and District operating budgets and adjusts the Agency authority for that difference). Making allowances for the agencies with no limits and throwing out the City of San Diego as an outlier, the equivalent authority for the survey group is $122,274. Neighboring water agencies Padre Dam and Sweetwater Authority each have an equivalent authority of $178,000 and $145,109, respectively, while Helix Water District is just under $61,000. The average of the three is equal to $128,022. Staff conducted additional analysis utilizing two inflation indexes, the Engineering News-Record (ENR) index, which is used widely in the construction industry, and the Consumer Price Index for the San Diego region (CPI-U). The ENR analysis resulted in an inflated authority of $78,864 for the 2001-2016 period and similarly, the CPI-U analysis resulted in an inflated authority of $78,451. While inflationary indexes are appropriate for tracking the cost of goods and services over a period of time, it does not reflect the growth in the District’s operations during that same time period along with the efficiencies required from a smaller workforce. Staff recommends establishing a General Manager's signatory authority of $125,000, which is consistent with the survey group and neighboring agency equivalent authorities and is below the District’s own equivalent authority of $133,234. The higher authority also positions the General Manager to leverage the consolidation of and savings from day-to-day consumables, services and other routine contracts not in need of additional review. Finally, in light of the changes in the manner that emergency repairs are managed by SDRMA, the District’s liability insurer, the General Manager will have greater latitude to quickly respond to the average emergency repair thereby limiting its impact on the community being served. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Although we do estimate savings, it is difficult to quantify specific savings at this time. STRATEGIC GOAL: Supports the Districts Strategy: Ensure financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Ordinance No. 558 Exhibit 1 - Section 2.01 E, Authority of the General Manager, of the District’s Code of Ordinances Attachment C – Proposed Copy, Section 2.01 E, Authority of the General Manager, of the District’s Code of Ordinances ATTACHMENT A SUBJECT/PROJECT: ADOPT ORDINANCE NO. 558 TO ESTABLISH A GENERAL MANAGER’S PURCHASE AUTHORIZATION AUTHORITY OF $125,000 COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on August 23, 2016 and the following comments were made:  In January 2001, the GM’s authorization limit of $50,000 was established and since that time, the District has grown significantly and has become more efficient with its ability to do more work with fewer employees over that same time period.  Staff indicated that, recently, there have been a few events and changes in both ongoing and upcoming District procedures that have highlighted the need to review the GM’s purchasing authority limit.  Last June, staff presented to the Board an amendment to the Caltrans Utility Agreement in the amount of $847.79 because the change orders on the $2.25 million dollar project had exceed the GM’s $50,000 authority. The GM’s authority represented 2% of the overall value of the project. A purchasing authority equal to 5% would have been $112,500 and would have avoided the need to bring an action to the Board. The costs to just prepare the action far exceeds the value of the request itself.  At the Engineering Operations & Water Resources Committee meeting held on August 22, staff presented and requested that the committee approve and refer to the full Board the adoption of the California Uniform Construction Cost Accounting Act (the Act) with its higher formal bid limit of $175,000 for public works contracts. The District’s current formal bid limit is $35,000 wherein the District is required to follow strict guidelines. The purpose of the Act is to raise bid limits and to simplify the process for agencies and special districts like Otay WD, to contract smaller projects under the California Public Contract Code. While staff is not asking for a GM authority equal to the new bid limit, a complimentary limit would allow the District to take greater advantage of the efficiencies afforded by the Act which includes soliciting and awarding contracts in as little as 10 days.  At today’s committee meeting, staff is requesting that the board ratify emergency contract work for the Greensview Drive main break (Item No. 5). SDRMA is now requiring that the District contract and manage all emergency repair work and submit a reimbursement request for the cost. While the Greenview Drive main break (costing over $500,000) is a very rare case and required the declaration of an emergency, the majority of the main break repair work falls below the $125,000 requested limit. Conceivably, many of these repairs could be managed without the need to declare an emergency. For example, utility staff are currently working to complete street repairs on Telegraph Canyon Road. The emergency repairs were completed by District staff in short order and temporary road repairs allowed for the roadway to be put back into service which precluded the need to declare an emergency. The challenge begins with contracting street and curb final repairs which is estimated to be approximately $86,000 in this case. The temporary repairs are intended to last a couple of weeks. However, it would take one to two months to solicit formal bids and request authorization from the Board to approve an agreement for the final street repairs. With the adoption of the Cost Accounting Act and its limit of $175,000 along with an increase in the GM’s authority, the District could solicit and issue a contract in as little as 10 days, well within the two week lifespan of the temporary repairs. This streamlined process would not only facilitate the remediation of main break third party losses, but can also be applied to more routine projects, as well as, capture cost savings through multi-year agreements for consumables or certain routine support services.  Staff reviewed the information in the staff report with regard to surveying surrounding and regional agencies on their GM authorization levels and the comparison of the District’s 2001 budget versus today’s equivalent.  Staff is requesting that the Board adopt Ordinance No. 558 establishing the GM’s authority at $125,000 in order to take further advantage of efficiencies provided under the Cost Accounting Act, to facilitate the timely repair of third party losses and to generally streamline the procurement of consumables and other routine goods and services.  It was discussed that the procedures that the District has in place provides protection from fraud and it would take a conspiracy of many employees to defraud the District.  The committee requested that the Board be apprised of expenditures handled under the GM’s authority. Staff indicated that such expenditures are reported in the GM’s monthly report and the Capital Improvement Program quarterly report. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board on the consent calendar. ORDINANCE NO. 558 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 2.01 E, AUTHORITY OF THE GENERAL MANAGER, 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 2.01 E, Authority of the General Manager, be amended as per Exhibit 1 (attached). NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 2.01 E, Authority of the General Manager (Attachment C), of the Code of Ordinances, shall become effective September 7, 2016. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 7th day of September 2016, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary CHAPTER 2 ADMINISTRATION OF THE DISTRICT SECTION 2 MANAGEMENT OF THE DISTRICT 2.01 AUTHORITY OF THE GENERAL MANAGER Pursuant to Sections 71362 and 71363 of the California Water Code, and other applicable laws of the State of California, the General Manager shall, subject to the approval and direction of the Board of Directors, operate and manage the affairs of the District. The General Manager shall have the following specifically enumerated powers and authority: A. To control the administration, maintenance, operation and construction of the water and sewer systems and facilities of the District in an efficient manner. B. To employ and discharge all employees and assistants, other than those referred to in Section 71340 of the California Water Code, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants. C. To promulgate policies and procedures necessary to enhance the security of the District and increase the transparency of District operations, including provisions for the disclosure of conflicts of interest by employees. D. To establish the terms and conditions for collection of receivables, thereby facilitating the efficient administration of the District’s receivables. The General Manager or designee is given this authority as well as the authority to waive, adjust, or reduce any receivable for amounts up to $10,000. E. To execute agreements, contracts, other documents, or commitments on behalf of the District where the amount involved does not exceed $50,000 $125,000, provided that Public Works Contracts shall be awarded in compliance with applicable laws. CHAPTER 2 ADMINISTRATION OF THE DISTRICT SECTION 2 MANAGEMENT OF THE DISTRICT 2.01 AUTHORITY OF THE GENERAL MANAGER Pursuant to Sections 71362 and 71363 of the California Water Code, and other applicable laws of the State of California, the General Manager shall, subject to the approval and direction of the Board of Directors, operate and manage the affairs of the District. The General Manager shall have the following specifically enumerated powers and authority: A. To control the administration, maintenance, operation and construction of the water and sewer systems and facilities of the District in an efficient manner. B. To employ and discharge all employees and assistants, other than those referred to in Section 71340 of the California Water Code, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants. C. To promulgate policies and procedures necessary to enhance the security of the District and increase the transparency of District operations, including provisions for the disclosure of conflicts of interest by employees. D. To establish the terms and conditions for collection of receivables, thereby facilitating the efficient administration of the District’s receivables. The General Manager or designee is given this authority as well as the authority to waive, adjust, or reduce any receivable for amounts up to $10,000. E. To execute agreements, contracts, other documents, or commitments on behalf of the District where the amount involved does not exceed $125,000, provided that Public Works Contracts shall be awarded in compliance with applicable laws. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: Various DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Continue the Temporary Moratorium on the Installation of New Recycled Water Facilities on Otay Mesa for a Period of One Year to July 2017 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) continue the temporary moratorium on the installation of new recycled water facilities on Otay Mesa for a period of one year to July 2017 (See Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To continue the temporary moratorium on the installation of new recycled water facilities on Otay Mesa for a period of one year to July 2017. ANALYSIS: Currently, recycled water is not available on Otay Mesa. The existing recycled water infrastructure on Otay Mesa is being supplied with potable water. As the District has pursued expansion of the District’s recycled water supply system to the Otay Mesa area, the District has encountered a number of issues and risks, 2 when considered in total, challenge both the technical and financial feasibility of delivering recycled water to Otay Mesa. On July 2, 2014, staff presented information to the Board on the uncertainty of recycled water availability for Otay Mesa, the financial feasibility considerations associated with anticipated recycled water rates from the City of San Diego (City), the uncertainty of securing easements to support the Otay Mesa Recycled Water Supply Link Project, and the delivery horizon of Indirect Potable Reuse (IPR) and/or Direct Potable Reuse (DPR). As a result of the information presented to the Board, the Board voted to place a temporary moratorium on the installation of new recycled water facilities on Otay Mesa. On July 6, 2016, staff presented to the Board an update on a number of efforts related to the temporary moratorium on the installation of new recycled water facilities on Otay Mesa. These efforts included the following:  Continued efforts with the City to discuss issues and amendments to the agreements between the District and the City.  Close out of developer recycled water projects in the planning, design, and construction phases on Otay Mesa.  Meeting with representatives of the East Otay Mesa Property Owners Association and the Otay Mesa Property Owners Association. Continued Efforts with the City of San Diego to Discuss Issues and Amendments to the Agreements between the District and the City Since the date the Temporary Moratorium was put in place by the District in July of 2014, District staff has sent correspondence and held meetings with the City staff regarding issues related to the October 23, 2003 Agreement Between the Otay Water District and the City of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant ("Agreement"). District staff has presented proposals regarding the City’s recycled water rates, the “Take-Or- Pay” requirement included in the Agreement, and miscellaneous terms missing from the Agreement. Although District staff has met with City staff to discuss the issues and how they impact the delivery of recycled water to Otay Mesa, these items remain unresolved. On November 17, 2015, the City voted to raise the rate for recycled water from the then current rate of $0.80/HCF ($348/AF) to a new Unitary Rate of $1.73/HCF ($753/AF). This new Unitary Rate was effective on January 1, 2016. District staff has met with the City as recently as June 6, 2016 to discuss the District’s proposals 3 outlined above. In that meeting, the City expressed no interest in revising the existing Agreement. Close-out of Developer Recycled Water Projects in the Planning, Design, and Construction Phases on Otay Mesa As noted in the November 5, 2014 update to the Board, District staff completed a review of the developer projects on Otay Mesa that are affected by the temporary moratorium. In total, thirty (30) projects were identified. These projects, which include both private recycled water systems and public recycled water mains, were found to be in various stages of project development ranging from planning to construction. Since the last update to the Board, staff has completed the closeout of all developer recycled water projects that were in the planning and design phases on Otay Mesa. The associated recycled water project developer accounts have also been closed out. Staff has also worked cooperatively with developers on active recycled water projects that were in construction on Otay Mesa when the temporary moratorium was put into place in July 2014. On those active projects that were nearing completion, staff worked with the developers to allow the projects to move forward to completion with the knowledge that potable meters will be set on the newly constructed infrastructure to serve the projects’ locations. On projects that were in the early stages of construction when the temporary moratorium was placed, staff worked with the developers to implement changes on the projects that would delete the recycled water infrastructure and mitigate project impacts. At this time, there is only one recycled water construction project located on Alta Road that remains to be closed out. The remaining work on that project consists of final paving and punch list work to accept the developer installed main. There is no action on the part of District staff other than for the developer to complete the project and request final reimbursement. As of July 2014, only potable water meters have been purchased and set on Otay Mesa for permanent service. Meeting with Representatives of the East Otay Mesa Property Owners Association and the Otay Mesa Property Owners Association In the July 6, 2016 report to the Board, staff reported on meetings held with the representatives from the East Otay Mesa Property Owners Association and the Otay Mesa Property Owners Association (EOMPOA/OMPOA) in December 2014. It was noted that staff provided an in-depth review of the District’s financial analysis that supported the placement of a temporary moratorium on the 4 installation of new recycled water facilities on Otay Mesa. As part of the discussions in December 2014, the District granted a request made by the EOMPOA/OMPOA representatives to extend the temporary moratorium on the installation of new recycled water facilities on Otay Mesa to July of 2016. It was explained that during the one (1) year extension, the EOMPOA/OMPOA could focus on attracting businesses to Otay Mesa that have a high demand for recycled water use. Additionally, the EOMPOA/OMPOA representatives explained that the District could use this time to seek funding opportunities that could offset the capital costs of implementing recycled water infrastructure on Otay Mesa. At the July 6, 2016 Board meeting, staff presented a summary update on the factors included in the Otay Mesa Recycled Water Financial Analysis in support of a staff recommendation to place a permanent moratorium on the installation of new recycled water facilities on Otay Mesa. These factors include cost of supply, infrastructure cost, recycled water demand, and the expiration of recycled water incentives. The summary update also included a sensitivity analysis that suggests that significant changes in the current trends would be needed with respect to the factors included in the Otay Mesa Recycled Water Financial Analysis in order to make delivery of recycled water on Otay Mesa financially feasible. In consideration of the information presented, the Board requested that staff solicit formal feedback from the EOMPOA/OMPOA for consideration before taking Board action. On August 11, 2016, staff provided a formal presentation to the EOMPOA/OMPOA and updated the EOMPOA/OMPOA on the cost of water and current status of factors included in the District’s financial analysis contained within the July 6, 2016 report to the Board. Feedback was solicited from the EOMPOA/OMPOA at that meeting. In consideration of the information presented, the EOMPOA/OMPOA provided a formal request to extend the temporary moratorium on the installation of new recycled water facilities on Otay Mesa for an additional year to July 2017. It was explained that the outlook for development has improved over the last year and that the one (1) year extension would provide additional time for the EOMPOA/OMPOA to continue efforts to attract businesses to Otay Mesa that have a high demand for recycled water use. Additionally, the EOMPOA/OMPOA representatives explained that funding opportunities that could offset the capital costs of implementing recycled water infrastructure on Otay Mesa may materialize within the requested one (1) year extension. In consideration of the EOMPOA/OMPOA’s request, staff is recommending that the Board approve a one (1) year extension of the 5 temporary moratorium on the installation of new recycled water facilities on Otay Mesa to July 2017. As included in the July 6, 2016 Board report, the District has not collected San Diego County Water Authority (SDCWA) capacity fees on meters set and designated as future recycled water meters in anticipation that recycled water would be available on Otay Mesa. The value of the avoided SDCWA fees based on an analysis of SDCWA capacity and treatment fees that would have been due at the time of meter purchase totals $1,340,684.00. Lastly, the approved Fiscal Year 2017 budget includes a Capital Improvement Program project “Repurpose Otay Mesa Recycled Water Lines” (R2123) (Project) to evaluate alternative uses for the recycled waterlines installed on Otay Mesa. Initial work on this Project in FY 2017 will consist of hydraulic modeling to access the potential for alternative use of the existing recycled water infrastructure should it be determined that a permanent moratorium be placed at the a future date. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Overall, it has been determined that the financial benefits of a permanent moratorium outweigh the identified financial costs. There are financial costs associated with a permanent moratorium. Those costs include a potential reimbursement of $950,000 in grant funds that were received from the United States Bureau of Reclamation (USBR) and SDCWA capacity fees. 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 District’s Vision, “A District that is innovative in providing water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM/RP:mlc P:\WORKING\CIP R2087\Staff Reports\BD 09-07-16\BD 09-07-16 Staff Report Otay Mesa Recycled Water Permanent Moratorium.docx Attachments: Attachment A – Committee Action Exhibit A – Project Location Map ATTACHMENT A SUBJECT/PROJECT: Various Continue the Temporary Moratorium on the Installation of New Recycled Water Facilities on Otay Mesa for a Period of One Year to July 2017 COMMITTEE ACTION: Finance, Admin, and Communications Committee (Committee) reviewed this item at a meeting held on August 23, 2016, and the following comments were made:  The Committee inquired about the East Otay Mesa Property Owners Association’s and the Otay Mesa Property Owners Association’s (EOMPOA/OMPOA) purpose for requesting an extension of the temporary moratorium to July 2017. Staff stated that the EOMPOA/OMPOA requested the 1-year extension to continue their efforts to attract businesses to Otay Mesa that have a high demand for recycled water use. The Associations also noted that funding opportunities may occur that could offset costs of implementing recycled water infrastructure on Otay Mesa.  In response to a question from the Committee, staff stated that the temporary moratorium was implemented due to the uncertainty of recycled water availability for Otay Mesa, the financial feasibility considerations associated with recycled water rates from the City of San Diego, and the uncertainty of securing easements from the City. Considering the capital costs of providing recycled water for such a limited amount of use was also a factor to implementing a moratorium in Otay Mesa.  The Committee suggested that staff add to their staff report a background of what the Board members’ recommendations/actions were from the July 6, 2016 board meeting associated with the moratorium. In response to the Committee’s suggestion, reference is made to the meeting minutes of the July 6, 2016 Board meeting where the Board voted to table the permanent moratorium item for 90 days to allow staff to contact interested parties in the Otay Mesa area and allow the parties time to review the implications of the moratorium and provide their comments.  After discussing the financial analysis for expanding recycled water to Otay Mesa, the Committee commented that a permanent moratorium is more likely to be considered in the future.  The Committee requested that staff invite the EOMPOA/OMPOA to the September 7, 2016 board meeting. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board on the action calendar. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: September 7, 2016 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 2016 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2016 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2016 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 2016 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 9-7-16.doc Board of Directors, Workshops and Committee Meetings 2016 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 6, 2016 February 3, 2016 March 2, 2016 April 6, 2016 May 4, 2016 June 1, 2016 July 6, 2016 August 3, 2016 September 7, 2016 October 5, 2016 November 2, 2016 December 7, 2016 January 20, 2016 February 17, 2016 March 16, 2016 April 20, 2016 May 18, 2016 June 15, 2016 July 20, 2016 August 23, 2016 September 14, 2016 October 19, 2016 November 16, 2016 December 21, 2016 SPECIAL BOARD MEETINGS: STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 PROJECT: DIV. NO.: ALL SUBMITTED BY: Adolfo Segura, Chief of Administrative Services APPROVED BY: German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: FY16 YEAR-END 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 year-end report on the District’s FY15-18 Strategic Performance Plan for FY16. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year plan ranging from the start of FY15 through the end of FY18. This report details the year-end results for the second year of our four-year plan. Strategic Plan Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is executing mission designed objectives and making the appropriate high- level changes necessary to guide the agency’s efforts to meet new challenges and positively adapt to change. Objective results for FY16 year-end are below target at 88%, with 23 of 26 active items completed or on schedule. Two objectives are on hold and three are not scheduled to begin until FY17 and FY18. The following objectives have been reported to be behind schedule. These projects have identified appropriate actions and are expected to be back on schedule in FY17. 1. Enhance Management Control of Non-Inventory Items - Due to unplanned repairs and staffing issues, staff was unable to complete the review of non-inventory items and develop adequate recommendations. The review and recommendations are expected to be completed by FY17 Q2. 2. Evaluate Efficiencies for Delivering Capital Assets - Final assessment and recommendation of the BIM 3D model effort will be completed as the 870-1 Pump Station Design reaches completion in FY17 Q2. 3. Streamline Input of Operations Data – Staff has identified business processes and forms that should be automated and auto-populated. However, with the delay of the SCADA project closeout, a complete action list could not be completed. The SCADA Roadmap is expected to be completed in FY17 Q1. The following objectives have been put on hold: 1. Evaluate Requirements for Future Emergency Communication System – The existing communication system is expected to be vendor supported for an additional 5 years. Staff will continue to explore new technologies should the communication system need to be replaced sooner than expected. 2. Evaluate the Viability of Implementing an Indirect Potable Reuse Program – Staff from the District and Sweetwater Authority have completed the study and cost-estimate and have determined that this project is not feasible at this time. 3. Implement a Habitat Conservation Plan that will Streamline O&M within District Easements – The draft habitat conservation plan has not been submitted to wildlife agencies. Plan preparations are expected to be back on schedule FY17 Q1. 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 and essential services. The overall goal is that at least 75% of these measures be rated “on target”. FY16 year-end results are well above target with 37 of 41 (90%) items achieving the desired level or better. Three new measures have been added and staff will begin reporting in FY17. Staff will strive to keep as many measures the same in order to collect and analyze multi-year data. New measures in FY17 include:  Accounts Per FTE  Percent of Customers Paying Bills Electronically  Injury Incident Rate Items Not On Target 1. CIP Project Expenditures vs. Budget – Year-to-date CIP expenditures amounted to $10,605,000 vs. the budgeted amount of $11,811,000 (-11.37%). 2. Overtime Percentage – Year-to-date expenditures amounted to $121,164 vs. the budgeted amount of $94,000 (+28.89%). 3. Water Rate Ranking – The March 2016 rate increase has moved the District up from number 11 in FY15, to number 12 in FY16, out of 22 member agencies. 4. Reserve Level – Year-end result is 78%, target was 85%. AWWA (formerly QualServe) Benchmarking Perspective As a result of AWWA modifying how indicators are calculated, the District has moved away from most of the AWWA benchmarks. However, the following performance indicators have remained unchanged and the District will continue to use them as benchmarks:  Collection System Integrity  Sewer Overflow Rate  Technical Quality Complaint  Potable Water Compliance Rate Composition of Balanced Scorecard Objectives and Measures The Balanced Scorecard continues to be used as the core methodology for the District’s Strategic Plan, and is widely adopted by businesses internationally. The Balanced Scorecard itself was developed by Kaplan and Norton and published in 1992 in the Harvard Business Review. The model has evolved over time and is now in its third-generation. In brief, the Balanced Scorecard emphasizes an integrated strategy approach for the development of goals and measures in four basic areas: customer, financial, business processes, and learning and growth. Each objective is broken down by the balanced scorecard, strategy, and goal required to meet the specific challenge. Strategy: Deliver high quality services to meet and increase confidence of the customer in the value the District provides Goal: Increase customer confidence in the District Objectives: 1. Enhance communications with customers Goal: Improve and expand communications Objectives: 1. Regularly produce and evaluate communications tools and explore the effective use of new media options 2. Evaluate requirements for future emergency communication system Goal: Provide effective water services Objectives: 1. Optimize SCADA program Strategy: Manage the financial issues that are critical to the District Goal: Improve financial information and systems Objectives: 1. Streamline procurement and contractor on-boarding process via web-based eProcurement technology 2. Electric power and fuel management practices 3. Optimize operations inventory management Goal: Maintain District financial strength Objectives: 1. Strengthen internal audit program 2. Implement a cost-benefit program Strategy: Maximize efficiency and effectiveness Goal: Actively manage water supply as well as support for water and sewer services Objectives: 1. Evaluate and enhance the District's water conservation programs and services 2. Evaluate the City of San Diego’s pure water program planning/implementation 3. Sewer system business evaluation 4. Address dependency on imported water 5. Leak detection and repair program 6. Pressure vessel maintenance program $ 7. Evaluate the viability of implementing an indirect potable reuse program Goal: Identify and evaluate improvements to enterprise and departmental business processes Objectives: 1. Optimize asset management program 2. Enhance District's enterprise facilities physical security 3. Improve and streamline meter related processes 4. Evaluate efficiencies for delivering capital assets 5. Enhance District's enterprise confined space program 6. Operations workflow process evaluation 7. Streamline input of operations data 8. Streamline work processes in four strategic areas including departmental synergies, technology, procurements, and alignment of business practices 9. Revise business practices by modifying the master recycled water permit 10. Implement a habitat conservation plan that will streamline O&M within District easements 11. Advance business processes and operational efficiencies through implementation of information technology 12. Evaluate implementation of an online performance management system Strategy: Provide leadership and management expertise Goal: Reinforce a results-oriented and accountable culture Objectives: 1. Negotiate a Successor Memorandum of Understanding for represented employees for 2017 and beyond, and related compensation and benefits for unrepresented employees with emphasis on making necessary updates to employee health benefits related to health care reform 2. Evaluate requirements for future emergency communication system Goal: Focus on achieving a lean flexible workforce Objectives: 1. Evaluate opportunities to combine or transfer similar work functions 2. Evaluate training and development programs for new and existing supervisors/managers Next Steps – FY17-18 The completion of Phase 2 of the FY15-18 Strategic Plan was a significant accomplishment. The successful implementation and rapid adoption of next generation technology solutions, has allowed the District to continue to gain efficiencies, improve department functions, and sustain a growing customer base with a reduced work force. Staff will be tracking a number of new objectives and measures during FY17. Measurement of continuous improvement is essential to demonstrate the efficiency gains achieved by the District. During FY17, staff will be analyzing collected productivity data to further gauge efficiencies gained and elevate or create new performance metrics where warranted. Also, staff will continue to train and cross-train to further leverage the value-added functions of our enterprise business systems. Additional improvements to our Asset Management program will also be addressed via a recently developed SCADA roadmap. Staff will be targeting utility smart power management, additional remote/mobile capabilities, production management, and enhanced cyber security mechanisms. Much of this will be used to set key performance objectives in FY18, to include the evolution of key service programs across the District. The Board will receive an update of our measurements progress during the FY17 mid-year Strategic Plan presentation in March 2017. Committee Reports – Slideshow The Strategic Plan results are presented to both the Finance, Administration, and Communications Committee and the Engineering, Operations, and Water Resources Committee with a specific focus on the most relevant information for each Committee. Strategic Plan is available on the Board VPN All of the Strategic Plan results and associated details are provided in a real-time, interactive web-based application available to the Board via secured remote access, VPN. The District Secretary can facilitate any password or access issues. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – FY16 Year-End Strategic Plan Results Presentation ATTACHMENT A SUBJECT/PROJECT: FY16 YEAR-END REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN COMMITTEE ACTION: The Engineering, Operations and Water Resources Committee and Finance, Administration, and Communications Committee reviewed this item at a meetings held on August 22 and 23, 2016, respectively. The following comments were made:  Staff presented the Strategic Plan’s year-end update and indicated that the District is currently completing its second year of the 4-year Plan (FY15-18).  Staff indicated that during the first year (2015) of the Strategic Plan, the District focused on the implementation of a number of next-generation productivity systems and enhance some enterprise processes. In the second year (2016), the focus was on aligning many of the District’s enterprise processes with new solutions. And in the third year (2017), the District will continue to populate its new systems with operational data in order to analyze and further measure the efficiencies gained to help elevate or create new performance metrics or objectives if warranted.  Staff will continue with the Balance Scorecard strategic approach which will focus on the alignment of customer service, financial sustainability, business processes, and learning and growth perspectives.  Staff indicated that AWWA’s benchmark has moved towards a Time approach as an element for metric calculations. It was discussed that some agencies are adopting the Time approach, but the District will continue to use the Cost approach as staff believes the bottom line affect is Cost that runs services as opposed to Time.  Staff indicated that 88% (23 of 26) of the District’s “Objectives” are completed or on schedule. The target is 90%. Staff noted that although the graph shows 29 “Objectives,” three (3) were not included in the total as those “Objectives” have no activity and are on hold. Three (3) objectives have been completed: Update of SCADA Program, Enterprise E-Commerce (Purchasing/Contracting) Solution - BidSync, and Automation and Enhancement of District-wide Operational Forms and Workflows; three (3) objectives are on hold: Evaluate requirements for future emergency communication system, Evaluate the viability of implementing and indirect potable reuse program, and Implement a Habitat Conservation Plan that will streamline O&M within District easements; and three (3) objectives are behind schedule: Enhance management control of non-inventory items, Evaluate efficiencies for delivering capital assets, and Streamline input of Operations data.  Staff noted that the one objective on hold, evaluate the viability of implementing an Indirect Potable Reuse (IPR) program, is actually complete as District staff determined that IPR is not financially feasible for the District. This information was presented to the board at the August 3, 2016, regular board meeting.  The year-end result for Performance Measures is 90% (target is 75%), or 37 of 41 measures are on schedule.  It was indicated that during the Mid-Year Strategic Plan presentation, the board requested that staff provide a multi- year trend starting with FY 2013. Staff noted that graphical changes were made to the PowerPoint presentation to reflect the board’s request. The Committee suggested that the “AVG” graphical bars in the PowerPoint presentation be changed to “YTD” (Year-to-Date).  Staff indicated in response to an inquiry from the Committee with regard to the performance measure, “Employee Turnover Rate,” that the turnover that the District measures is voluntary turnover; employees who leave to work for another agency or firm.  Staff stated for the measure Project Closeout Time, staff has 45 days to closeout projects once they are completed. The target was not met this quarter because of a dispute with a contractor related to the rehabilitation of three (3) reservoirs and, thus, staff could not closeout the project.  Staff indicated that the measure for the Overtime Percentage did not meet the set target because of unforeseen breaks within the District’s service area. The target should be less than 100% of the budgeted overtime per quarter in a year, or $94,100; however, the Overtime Percentage exceeded the budgeted amount by approximately 28%.  Staff stated that the District ranks 12 out of 22 member agencies for the lowest water service provider; in FYs 2014 and 2015 the District ranked number 11. It was discussed that the District’s rank was affected by the City of San Diego’s Recycled Water Agreement that required the District to increase its rates 9.9%. In addition, water sales decreased due to customers conserving water due to the drought. The Committee inquired if other agencies also increased their rates in response to the City of San Diego’s action and mandatory water conservation. Staff stated that they had contacted the other agencies about their proposed rate increases and for the agencies that did not respond, staff utilized the average of all the agencies combined. Staff noted that current water sales is above the projected FY 2017 budget. Potable water sales is more than 6% above budget and recycled is above budget by approximately 16%. This will have a positive impact on rates in the next fiscal year (2018) and the District may recover its position.  Staff indicated that the Reserve Level target was not met as the target allows for only one reserve level to be under target (the target is 85%). As of June 30, 2016, the District had two (2) reserve levels below target. In the rate model the CalTrans reimbursement of $1.9 million was included in Expansion Reserve, but it should have been placed in the Replacement Reserve. This caused the Replacement Reserve to be approximately $2 million off target. Also impacting both reserves is the actual FY 2015 CIP spending was higher than the forecast (approximately $377,000) than was used in the rate model. These caused the reserves to be lower than budget. Staff noted that each year during the budget process the reserve targets get reset. They were reset for the FY 2017 budget and unless the District has a large difference in CIP spending or in grant funding, the reserves should be on target for FY 2017. The Committee commented that these were all internal targets and should not impact the District’s bond rating. Staff agreed.  Staff indicated that the measure, “Percent of Customers Paying Bills Electronically,” is a new measure. In response to an inquiry from the Committee, staff stated that the District is charged approximately 1.7% to process payments made by credit cards. Staff indicated that they will research the percentage of customers using debit versus credit cards. Staff explained that because this is a new measure, a target has not been set for FY 2016. A baseline will be established in FY 2016 and staff would like to do some research and an appropriate target will be set next fiscal year.  The Committee inquired if staff was thinking of shutting down the Ralph W. Chapman Water Reclamation Facility (RWCWRF) now that it has been determined that IPR is not financially feasible for the District. Staff indicated that they are not looking at shutting the plant down, but are looking into an optimization plan for the RWCWRF to become more automated.  In response to several inquiries from the Committee, staff stated that at this time there are no plans to modify the current four-year Strategic Plan. However, early next calendar year, staff will be planning for the next four-year Strategic Plan and will be looking at new strategies and objectives that will align with AWWA standards. Staff is also looking into new metrics for the District’s management and SCADA systems that will provide tools to enhance efficiency. Staff also discussed that employees collaborate with management to provide input that would help increase efficiencies for the District. Pre- evaluation forms are also made available to employees who wish to provide any additional input to the District. In addition, staff indicated that board members have access to the Strategic Plan information via the extranet to review the information on the extranet and contact staff with any questions that they might have. Following the discussion, the committees recommended presentation to the full board as an informational item. 1 STRATEGIC PLAN FY16 YEAR-END REPORT 2 Introduction 3 The completion of Phase 2 of the FY15-18 Strategic Plan was a significant accomplishment. The successful implementation and rapid adoption of next generation technology solutions has allowed the District to continue to gain general work efficiencies,improve department functions,and sustain a growing customer base with a reduced work force. Measurement of continuous improvement is essential to demonstrate the efficiency gains achieved by the District.During FY17,staff will be analyzing collected productivity data to further measure efficiencies gained and elevate or create new performance metrics if warranted.Staff will also continue to train and cross-train to further leverage the value-added functions of our enterprise business systems and work processes.Additional improvements to our Asset Management Program will also be addressed via a recently developed multi-year SCADA roadmap. 4 1.Increase customer confidence in the District 2.Improve and expand communications 3.Provide effective water services 1.Improve financial information and systems 2.Maintain District financial strength 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 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 Provide leadership and management expertise Maximize efficiency and effectiveness Manage the financial issues that are critical to the District Deliver high quality services to meet and increase confidence of the customer $$ 5AWWA Benchmarks 1 Technical Quality Complaint Potable Water Compliance Rate Collection System Integrity Sewer Overflow Rate 2 3 4 6Objectives 88% are Completed or On Schedule 3 20 3 3 Completed On Schedule Behind On Hold Objective Reports 26 Total 7 COMPLETED Objectives 1.Update of SCADA Program 2.Enterprise E-Commerce (Purchasing/Contracting) Solution –BidSync 3.Automation and Enhancement of District-wide Operational Forms and Workflows 8 ON HOLD Objectives 1.Evaluate requirements for future emergency communication system 2.Evaluate the viability of implementing an indirect potable reuse program 3.Implement a Habitat Conservation Plan that will streamline O&M within District easements BEHIND SCHEDULE 1.Enhance management control of non-inventory items 2.Evaluate efficiencies for delivering capital assets 3.Streamline input of Operations data 9 37 4 On Target Not On Target Performance Measures 90% On Target Measure Reports 41 Total 10Performance Measures NOT ON TARGET 1.CIP Project Expenditures vs. Budget 2.Overtime Percentage 3.Reserve Level 4.Water Rate Ranking 11 Year-End Results Administrative Services 12Enterprise System Availability Target: No less than 99.5%availability per quarter in a year 99.99 99.99 99.99 99.99 99.99 98 98.5 99 99.5 100 100.5 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 Q&Y Quarter & Annual Average Measurement 99.5% = 3.60 hours of downtime per month/1.83 days of downtime in a year *FY14 –FY16 results are 99.99% 13Employee Turnover Rate Target: Less than 5%turnover in a year 0 0 0 0 00 1 2 3 4 5 6 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 Q Quarter Measurement # of voluntary resignations (not including retirements)/average # of employees A Annual Average Measurement YTD # of voluntary resignations (not including retirements)/average # of employees 14Training Hours Per Employee Target: 12 hours or more general formal training per employee in a year (excludes safety training) 6.78 4.86 6.1 5.29 23.02 0 5 10 15 20 25 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 Q Quarter Measurement Total qualified training hours for all employees/average # of FTEs A Annual Average Measurement YTD Total qualified training hours for all employees/Average # of FTEs 15Safety Training Program Target: 24 hours or more safety training per field employee in a year 6.01 8.78 7.96 13.72 36.8 0 5 10 15 20 25 30 35 40 45 50 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 Quarter Measurement # of safety training hours for the quarter/ # of field employees Q Y Annual Average Measurement YTD Total qualified safety training hours for field employees/average # of field employees 16 Engineering 17CIP Project Expenditures vs. Budget Target: 95% of budget but not to exceed 100% Being below target gives the measure a “not on target” status Q Quarter Measurement Actual quarterly expenditures/Annual budget Y YTD Measurement YTD expenditures/Annual budget 18.5 18.1 26.4 28 90.4 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 18Construction Change Order Incidence (w/o allowances) Target: No more than 5%per quarter in a year 3 3.7 1.6 1.8 1.8 0 1 2 3 4 5 6 7 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 Q&Y Quarter & YTD Measurement Total cost of Change Orders (not including allowances)/Total original construction contract amount (not including allowances) 19 Mark-Out Accuracy Target: No less than 100%mark-out accuracy per quarter in a year 100 100 100 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 Q&A Quarter & Annual Average Measurement # 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 *FY13 –FY16 results are 100% 20Project Closeout Time Target: No more than a 45 day average per quarter in a year 29.5 46 16 49.8 37.3 0 50 100 150 200 250 300 350 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 Q Quarter Measurement # of days between NOSC and NOC for all construction projects within the quarter/# of construction projects within the quarter Y YTD Measurement YTD # of days between NOSC and NOC for all construction projects within the quarter/YTD # of construction projects within the quarter 21Annual Recycled Water Site Inspections Target: 100%of recycled sites inspected in a year (There are 112 recycled water use sites scheduled for FY16) Quarter & YTD Measurement Cumulative % of recycled sites inspected per quarter of those required by DEH Q&Y 26.7 55 79 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Target 2015 2016 *Measure was created in FY15 22 Q&Y Recycled Water Shutdown Testing Target: No less than 90%of recycled site shut down tests in a year (There are 31 recycled water use sites due for shutdown in FY16) Quarter & YTD Measurement Cumulative % of recycled site shutdown tests performed per year compared to those scheduled 32 57 82 93 93 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Target 2015 2016 *Measure was created in FY15 23 Quarter & Annual Average Measurement Total planned maintenance costs/Total maintenance costs Planned Recycled Water Maintenance Ratio in $ Target: No less than 70%of all labor spent on preventative maintenance per quarter in a year 88.5 89 90 70 86 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 Q&Y 24Recycled Water System Integrity Target: No more than 6.6 leaks or breaks per 100 miles of recycled distribution system in a year Q&Y Quarter & YTD Measurement (100 x # of leaks or breaks)/ # of miles of distribution system 0 0 0 0 0 0 1 2 3 4 5 6 7 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 25 Finance 26 Q Quarter Measurement # of all calls answered/ # of all calls received during a quarter A Annual Average Measurement 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 97.39 97.9 97.93 98.2 97.84 95 95.5 96 96.5 97 97.5 98 98.5 99 99.5 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 27Gallons Per Capita Per Day Target: Below 172 gallons per day (Target comes from California Urban Water Control Council & the State Water Resources Control Board) Q Quarter Measurement Total potable water purchased/Population (from SANDAG)/Number of days through the end of the quarter A Annual Average Measurement Total annual potable water purchased/Annual population estimate from SANDAG/Number of days through the end of the quarter 119.3 97.1 85.8 112.8 103.7 0 20 40 60 80 100 120 140 160 180 200 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 28 Q Quarter Measurement Total operations O&M costs/ # of accounts Y YTD Measurement YTD total operations O&M costs/ # of accounts O&M Cost Per Account Target: Less than $531.12 per account in a single year (Target is based on Operating Budget) 113 246 364 503 503 100 150 200 250 300 350 400 450 500 550 600 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 29 Q Quarter Measurement # of correct bills during the reporting period/ # of total bills during the reporting period A Annual Average Measurement 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 99.92 99.99 99.99 99.97 98 98.5 99 99.5 100 100.5 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 30Overtime Percentage Target: Less than 100%of budgeted overtime per quarter in a year (Target is based on Operating Budget; FY16 Overtime Budget is $94,100) Q Quarter Measurement Actual overtime costs (including comp time)/ Budgeted overtime costs Y YTD Measurement YTD actual overtime costs (including comp time)/ YTD budgeted overtime costs 110 160 110 128 129 0 20 40 60 80 100 120 140 160 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 31Sewer Rate Ranking Target: Bottom 50 percentile for the 28 sewer service providers in San Diego (Otay ranks 7 out of 28 sewer service providers) Quarter & YTD Measurement Otay ranking for the average bill for sewer/ # of sewer agencies 7 7 0 5 10 15 20 25 Q4 YTD Target 2013 2014 2015 2016 Q&Y 32Water Rate Ranking Target: Bottom 50 percentile for the 22 member agencies in San Diego (Otay ranks 12 out of 22 member agencies) Quarter & YTD Measurement Otay ranking for the average water bill among CWA member agencies 12 12 0 5 10 15 20 Q4 YTD Target 2013 2014 2015 2016 Q&Y *FY14 and FY15 Otay rates were 11th lowest **FY17 Rates were compared to 22 member agencies (Padre Dam E and Padre Dam W are now counted as one agency) 33Debt Coverage Ratio Target: Above 150%to have sufficient debt coverage (This is measured at year end) Q&Y Quarter & YTD Measurement Qualified net operating revenues/debt service requirements (measured at year end) 171 171 0 50 100 150 200 250 300 Q4 YTD Target 2013 2014 2015 2016 34Reserve Level Target: Equal or exceed 85% (This is measured at year end) Quarter & YTD Measurement # of reserve funds that meet or exceed fund target levels/ Total # of reserve funds 78 78 0 20 40 60 80 100 120 140 Q4 YTD Target 2013 2014 2015 2016 Q&Y *FY13 & FY14 results are 85% 35Percent of Customers Paying Bills Electronically Target: In development (No set targets in FY16; a baseline will be established in FY16 and appropriate targets will be recommended for the FY17-18 Strategic Plan) Q Quarter Measurement A Annual Average Measurement YTD # of customers paying bills electronically/ Total # of customers # of customers paying bills electronically/ Total # of customers 71.7 72.2 72.98 74.17 72.77 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 AVG Target 2016 36Distribution System Loss Target: Less than 5%of unaccounted water loss per quarter in a year Quarter & YTD Measurement 100 [volume purchased (from CWA) –(volume sold (to customers) + volume used District usage)] / volume purchased (from CWA)) 2.34 2.8 3.1 4 4 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 Q&Y 37 Operations 38Technical Quality Complaint (AWWA) Target: No more than 9 complaints per 1000 customer accounts in a year Q Quarter Measurement 1000 (# of technical quality complaints per quarter)/# of active customer accounts per reporting period Y YTD Measurement Cumulative technical quality complaints in FY 1.44 1.39 0.8 1.49 5.12 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Target AWWA 2013 2014 2015 2016 AW W A B e n c h m a r k 39Planned Potable Water Maintenance Ratio in $ Target: No less than 66%of all labor dollars spent on preventative maintenance per quarter in a year Q&A 79 73 73 70 75 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 Quarter & Annual Average Measurement Total planned maintenance cost/Total maintenance cost 40Planned Wastewater Maintenance Ratio in $ Target: No less than 77%of all labor dollars spent on preventative maintenance per quarter in a year Quarter & Annual Average Measurement Total planned maintenance cost/Total maintenance costQ&A 89.94 83.85 93.74 94.87 91.81 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 41Direct 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) Q&A Quarter &Annual Average Measurement Total O&M costs directly attributable to sewer treatment/ Total volume in MG 951.88 1103.55 911.18 672.91 912.56 0 200 400 600 800 1000 1200 1400 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 42O&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) Q Quarter Measurement Total O&M cost/ MGP FYTD O&M Cost = (Power Cost) + (Staff Cost) + (Equipment Cost) / FYTP MGP A Annual Average Measurement FYTD O&M Cost MGP/ FYTD Total MGP 1646.27 1654.91 1406.61 1093.67 1458.36 0 500 1000 1500 2000 2500 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 43Leak Detection Program Target: Perform leak detection on 20%of potable distribution system Q&Y Quarter & YTD Measurement %of potable distribution pipelines surveyed. The calculation is miles of pipe surveyed divided by total miles of pipe times 100. 20 20 20 0 10 20 30 40 50 60 70 80 90 100 Q3 Q4 YTD Target 2015 2016 *FY15 –FY16 results are 20% **Measure was created in FY15 44Percent of PMs Completed –Fleet Maintenance Target: No less than 90%of scheduled PM’s completed per quarter in a year Quarter & Annual Average Measurement # of PM’s completed/ # of PM’s scheduled to be completed 100 100 100 100 100 0 20 40 60 80 100 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 Q&A *FY14 &FY16 results are 100% 45Percent of PMs Completed –Reclamation Plant 100 100 100 100 100 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 Target: No less than 90%of scheduled PM’s completed per quarter in a year Q&A Quarter & Annual Average Measurement # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period 46Percent of PMs Completed –Pump/Electric Section 100 100 100 100 100 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 AVG Target 2013 2014 2015 2016 Target: No less than 90%of scheduled PM’s completed per quarter in a year Q&A Quarter & Annual Average Measurement # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period *FY13 –FY16 results are 100% 47System Valve Exercising Program Target: Exercise 770 valves per quarter or 3080 valves by the end of fiscal year Quarter & YTD Measurement Actual number of valves exercised in the reporting period 1013 1932 838 736 4549 0 1000 2000 3000 4000 5000 6000 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 Q&Y 48Potable Water Distribution System Integrity Target: No more than 16 leaks and breaks per 100 miles of distribution piping in a year Q Quarter Measurement 100 (annual total number of leaks + annual total number of breaks) / total miles of distribution piping Y YTD Measurement Cumulative number of leaks and breaks per quarter in a FY 2.11 3.55 3.07 2.4 11.14 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 YTD Target 2013 2014 2015 2016 49Potable Water Compliance Rate (AWWA) Target: No less than 100%of all health related drinking water standards each quarter in a year Quarter Measurement 100 (# of days the primary health regulations are met)/ # of days in the reporting period 100 100 100 100 100 50 60 70 80 90 100 110 Q1 Q2 Q3 Q4 AVG Target AWWA 2013 2014 2015 2016 AW W A B e n c h m a r k Q&Y *FY13 –FY16 results are 100% 50Collection System Integrity (AWWA) Target: No more than 3.6 system failures per 100 miles of collection system pipeline in a year Q Quarter Measurement 100 (total number of collection system failures during the year) / total miles of collection system piping Y YTD Measurement Cumulative number of failures per quarter in a FY 0 0 0 0 0 0 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 YTD Target AWWA 2013 2014 2015 2016 AW W A B e n c h m a r k *FY 13 –FY 16 results are 0 failures 51Sewer Overflow Rate (AWWA) Target: 0 overflows per quarter in a year Q Quarter Measurement 100 (total number of sewer overflows during the reporting period) / total miles of pipe in the sewage collection system Y YTD Measurement 0 0 0 0 0 0 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 YTD Target AWWA 2013 2014 2015 2016 Cumulative number of overflows per quarter in a FY *FY 13 –FY 16 results are 0 overflows AW W A B e n c h m a r k 52Emergency Facility Power Testing Target: 100%of the District’s facilities tested per year (The District currently has 29 powered ready facilities) Q Quarter Measurement Number of facilities tested / total facilities Y YTD Measurement YTD number of facilities tested / total facilities 27 48 79 100 100 0 20 40 60 80 100 Q1 Q2 Q3 Q4 YTD Target 2015 2016 53Tank Inspection and Cleaning Annual Target: Clean and inspect 8 tanks or more per year Quarter & YTD Measurement Number of tanks cleaned and inspected in a reporting period 1 10 10 11 11 0 2 4 6 8 10 12 14 Q1 Q2 Q3 Q4 YTD Target 2015 2016 Q&Y *Measure was created in FY15 (Cumulative) 54Main 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) Quarter & YTD Measurement Number of mains flushed and hydrants maintained in a reporting period Q&Y 319 343 412 463 463 0 100 200 300 400 500 600 700 800 900 1000 Q1 Q2 Q3 Q4 YTD Target 2015 2016 *Measure was created in FY15 (Cumulative) 55Critical Valve Exercising Target: No less than 631 identified critical valves exercised in a year Quarter & YTD Measurement # of critical valves exercised in a reporting period 444 534 631 632 632 0 100 200 300 400 500 600 700 800 900 1000 Q1 Q2 Q3 Q4 YTD Target 2015 2016 Q&Y *Measure was created in FY15 (Cumulative) 56 Next Steps 57 1 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: September 7, 2016 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 – Fourth Quarter Fiscal Year 2016 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 Fourth Quarter Fiscal Year 2016 update is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget of $11.8 million. Expenditures through the Fourth Quarter totaled approximately $10.6 million. Approximately 90% of the Fiscal Year 2016 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 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/RP:jf P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2016\Q4\Staff Report\BD 09-07-16 Staff Report Fourth Quarter FY 2016 CIP Report (DM-RP).docx Attachments: Attachment A – Committee Action Attachment B - Fiscal Year 2016 Fourth Quarter CIP Expenditure Report Attachment C – Presentation ATTACHMENT A SUBJECT/PROJECT: VARIOUS Informational Item – Fourth Quarter Fiscal Year 2016 Capital Improvement Program Report COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a Committee Meeting held on August 22, 2016, and the following comments were made:  Staff provided a PowerPoint presentation to the Committee and indicated that the expenditures through the fourth quarter of FY 2016 totaled $10.6 million, which is about 90% of the District’s fiscal year budget.  Staff indicated that the District’s FY 2016 CIP budget consists of 80 projects that total $11.8 million and is divided into four categories: o Capital Facilities= $3.5 million o Replacement/Renewal= $7.2 million o Capital Purchases= $1.1 million o Developer Reimbursement= $1.0 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 provided an update of the following construction projects that were active during the fourth quarter: o 980-1 Reservoir Interior/Exterior Coating and Upgrades (P2545) that was completed and put into service on August 22, 2016. o 711-1 and 711-2 Reservoirs Interior/Exterior Coating and Upgrades (P2530 and P2529) that is estimated to be completed by September 2016. o Operations Yard Property Acquisition Improvements (P2537) that was completed in June 2016. o Rancho San Diego Basin Sewer Rehabilitation – Phase I (S2033-003103) that is estimated to be completed by November 2016.  Staff highlighted that during the fourth quarter of FY 2016 the rate for Change Orders with Allowance Credit equaled to -1.3%.  The Committee commented that the total CIP Budget Expenditures for FY 2016 were previously projected to be approximately 80- 85% and inquired how staff was able to increase it to 90%. Staff stated that they were conservative in their projection for the FY 2016 total CIP Budget Expenditures and that they were able to accelerate some projects such as the 980-1 Reservoir Interior/Exterior Coating & Upgrades (P2545). In addition, it was noted that invoices were received and payments were made by the District for County of San Diego reimbursement projects that reached substantial completion. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an informational item. FISCAL YEAR 2016 4th QUARTER REPORT (Expenditures through 06/30/2016) ($000) Attachment B 2016 06/30/16 CIP No.Description Project Manager FY 2016 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments CAPITAL FACILITY PROJECTS - P2040 Res - 1655-1 Reservoir 0.5 MG Cameron 25$ 6$ 19$ 24%2,200$ 484$ 1,716$ 22% Project was delayed one year during the FY 2017 budget process. P2083 PS - 870-2 Pump Station Replacement Marchioro 350 345 5 99%15,000 1,664 13,336 11%On target. P2267 36-Inch Main Pumpouts and Air/Vacuum Ventilation Installations Marchioro 50 49 1 98%735 459 276 62%On target. P2325 PL-10" to 12" Oversize, 1296 Zone, PB Road-Rolling Hills Hydro PS/PB Bndy Beppler 1 19 (18) 1900%22 19 3 86% Developer reimbursement request approved. Request came in earlier than anticipated. Overall project is complete and under budget. P2451 Otay Mesa Desalination Conveyance and Disinfection System Kennedy 350 310 40 89%30,000 3,570 26,430 12% Spending more than expected, but less than budgeted. P2466 Regional Training Facility Coburn-Boyd 8 1 7 13%300 288 12 96% There was minimal work/reporting on this project in FY 2016. P2469 Information Technology Network and Hardware Kerr 175 174 1 99%1,684 2,061 (377) 122%No further expenditures on this project.P2470 Financial System Enhancements Kerr 100 40 60 40%1,765 1,707 58 97%Spent $5K for reporting services for CityWorks. P2486 Asset Management Plan Condition Assessment and Data Acquisition Zhao 75 20 55 27%1,015 879 136 87% We negotiated $20K initial service contract for infoMaster Pilot Study towards final implementation. P2511 Otay Interconnect Pipeline Marchioro 420 450 (30) 107%2,601 2,535 66 97%On target. P2537 Operations Yard Property Acquisition Improvements Beppler 450 562 (112) 125%775 728 47 94% Construction contract accepted within this fiscal year. FY 2016 expenses exceeded FY 2016 budget, but not overall project budget. P2540 Work Order Management System Replacement Kerr 60 169 (109) 282%500 466 34 93%No further expenditures for this CIP. P2541 624 Pressure Zone PRSs Marchioro 525 518 7 99%750 742 8 99%Construction contract accepted. On target. P2547 District Administration Vehicle Charging Stations Beppler 1 9 (8) 900%60 20 40 33% Overall budget increased to $125,000 for FY 2017 to reflect design cost estimate. Design accelerated and included with P2555. Cost to date well within project budget.P2549 Fuel System Upgrade Payne 30 29 1 97%30 29 1 97%Complete. P2551 Blossom Lane Helix WD and Otay WD Interconnection Beppler 150 161 (11) 107%193 168 25 87% Construction mostly complete at end of this fiscal year. Billing from Helix WD received, exceeded this fiscal year budget, but remains under the overall project budget. P2552 South Barcelona Helix WD and Otay WD Interconnection Beppler 150 157 (7) 105%200 165 35 83% Construction mostly complete at end of this fiscal year. Billing from Helix WD received, exceeded this fiscal year budget, but remains under the overall project budget. P2554 640/340 PRS at Energy Way and Nirvana Avenue Marchioro 1 1 - 100%400 1 399 0%On target. P2555 Administration and Operations Parking Lot Improvements Cameron 10 48 (38) 480%500 48 452 10% Project has been accelerated. Design began in Q3. P2561 Res - 711-3 Reservoir Cover/Liner Replacement Marchioro 5 1 4 20%1,800 1 1,799 0%No progress anticipated in FY 2016. P2562 Res - 571-1 Reservoir Cover/Liner Replacement Marchioro 1 - 1 0%2,600 - 2,600 0%On target. P2563 Res - 870-1 Reservoir Cover/Liner Replacement Marchioro 1 - 1 0%1,000 - 1,000 0%On target. P2568 Technology Business Processes Improvement Kerr 40 25 15 63%115 25 90 22%No expenditure for 4th quarter 2016. P2569 Metro Ethernet Implementation/ District Facilities - Pilot Kerr 100 106 (6) 106%100 106 (6) 106% On target. Project budget increased to $145K for FY 2017. P2570 SCADA Equipment & Infrastructure Enhancement Kerr - - - 0%300 - 300 0%No expenditures anticipated in FY 2016. P2571 Datacenter Network Enhancement & Replacement of Infrastructure Componets Kerr - - - 0%200 - 200 0%No expenditures anticipated in FY 2016. P2572 Enterprise Resource Planning (ERP) Replacement Kerr - - - 0%250 - 250 0%No expenditures anticipated in FY 2016. R2077 RecPL - 24-Inch, 860 Zone, Alta Road - Alta Gate/Airway Beppler 5 2 3 40%2,850 2,811 39 99%Project on hold during temporary moratorium. R2107 RWCWRF Screening Compactor and Chlorine Injectors Enclosure Vaclavek 7 3 4 43%215 180 35 84%Project is complete. R2108 Res - 927-1 Reservoir Cover Replacement Marchioro 10 4 6 40%1,090 1,086 4 100% Final warranty inspection completed FY 2016. Project will be closed out. R2110 RecPS - 944-1 Optimization and Pressure Zone Modifications Marchioro 25 46 (21) 184%200 130 70 65% Construction contract completed FY 2016. Overall project within budget. R2114 Large Recycle Pump Replacement at the RWCWRF 927-1 Pump Station Anderson 40 - 40 0%120 89 31 74%Project is complete. R2117 RWCWRF Disinfection System Improvements Beppler 110 7 103 6%2,500 111 2,389 4% Waiting on results of IPR/DPR study, WRF Master Plan, and force main condition assessment before determining the next step. No additional costs this fiscal year. FISCAL YEAR-TO-DATE, 06/30/16 LIFE-TO-DATE, 06/30/16 Y:\Board\CurBdPkg\ENGRPLAN\2017\BD 09-07-16\Fourth Quarter FY 16 CIP Update\Attachment B - 4th qtr expenditures.xlsx Page 1 of 4 8/16/2016 FISCAL YEAR 2016 4th QUARTER REPORT (Expenditures through 06/30/2016) ($000) Attachment B 2016 06/30/16 CIP No.Description Project Manager FY 2016 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments FISCAL YEAR-TO-DATE, 06/30/16 LIFE-TO-DATE, 06/30/16 R2118 Steele Canyon Sewer PS Chopper Pump Beppler 40 5 35 13%40 5 35 13% Change to scope of work required structural design. This necessitated waiting for the new as- needed engineering design contract to be awarded as not enough budget remained in previous one. R2119 Treatment Plant Automation & Security Upgrades Beppler 50 33 17 66%200 33 167 17% Master Plan scope not anticipated during budgeting of the project, accelerated the spending on this. Project remains within overall budget. R2121 Res - 944-1 Reservoir Cover/Liner Replacement Marchioro 25 19 6 76%1,400 19 1,381 1% Final design of replacement cover/liner postponed until FY 2017 since inspection diver suggested replacement might be postponed a few years. R2122 Emergency Recycled Water Fire Hydrant Installations Cameron 75 32 43 43%75 32 43 43% Project is on schedule. Construction to be completed in Q4. Approval for use will be received in FY 2017. S2043 RWCWRF Sludge Handling System Beppler 1 - 1 0%47 40 7 85% No spending on this project during the past fiscal year. Budget allowance was for any unexpected activity. Total Capital Facility Projects Total:3,466 3,351 115 97%73,832 20,701 53,131 28% REPLACEMENT/RENEWAL PROJECTS P2382 Safety and Security Improvements Ramirez 300 315 (15) 105%2,667 2,573 94 96% Facility security and access enhancements on schedule; unanticipated trenching expenses pushed over FY 2016 budget. P2453 SR-11 Utility Relocations Marchioro 5 180 (175) 3600%2,250 1,598 652 71% Construction contract not completed in FY 2015 as anticipated; however, two construction contracts completed FY 2016. Overall project within budget. P2485 SCADA Communication System and Software Replacement Segura 75 257 (182) 343%2,014 1,667 347 83% Project on schedule for FY 2016. Accelerating project increased spending for FY 2016. P2493 624-2 Reservoir Interior/Exterior Coating Cameron 55 6 49 11%1,675 1,543 132 92% Warranty inspection was rescheduled for FY 2017 to group it with another inspection. This helped reduce cost. Expenditures will be done FY 2017 Q1. P2494 Multiple Species Conservation Plan Coburn-Boyd 87 7 80 8%950 853 97 90% Will not use any additional budget this FY, project was delayed waiting for information from WFMP. P2495 San Miguel Habitat Management/Mitigation Area Coburn-Boyd 120 102 18 85%2,100 1,241 859 59%On track; will not use 15% of budget. P2496 Otay Lakes Road Utility Relocations Martin 20 1 19 5%325 283 42 87% Contract accepted in June 2016. Phase II work complete. P2504 Regulatory Site Access Road and Pipeline Relocation Cameron 50 - 50 0%900 330 570 37%Project is driven by County Fire. P2507 East Palomar Street Utility Relocation Cameron 25 23 2 92%940 717 223 76% Awaiting Punch List items to be completed. Request for reimbursement to be requested in FY 2017. P2508 Pipeline Cathodic Protection Replacement Program Marchioro 150 65 85 43%725 249 476 34% Pace slowed. Limited activity for the remainder of FY 2016. P2515 870-1 Reservoir Paving Beppler 15 4 11 27%510 510 - 100% Project warranty inspection performed in February 2016. Project is complete. P2518 803-3 Reservoir Interior/Exterior Coating Cameron 20 7 13 35%700 645 55 92% Project is in the warranty period, dive inspection performed in Q3. Warranty repairs to be executed in FY 2017. P2519 832-2 Reservoir Interior/Exterior Coating Cameron 20 8 12 40%750 670 80 89% Project is in the warranty period, dive inspection performed in Q3. Warranty repairs to be executed in FY 2017. P2520 Motorola Mobile Radio Upgrade Martinez 30 2 28 7%135 79 56 59% Project on target. Anticipate the balance to be spent as per the FY 2017 budget plan. P2529 711-2 Reservoir Interior & Exterior Coating Cameron 600 344 256 57%790 360 430 46% Project construction began in Q2. Project was delayed due to unforeseen necessary structural upgrades. Project scheduled to complete in FY 2017 Q1. P2530 711-1 Reservoir Interior & Exterior Coating Cameron 800 889 (89) 111%1,040 905 135 87% Reservoir placed into service in May 2016. Project on schedule. Y:\Board\CurBdPkg\ENGRPLAN\2017\BD 09-07-16\Fourth Quarter FY 16 CIP Update\Attachment B - 4th qtr expenditures.xlsx Page 2 of 4 8/16/2016 FISCAL YEAR 2016 4th QUARTER REPORT (Expenditures through 06/30/2016) ($000) Attachment B 2016 06/30/16 CIP No.Description Project Manager FY 2016 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments FISCAL YEAR-TO-DATE, 06/30/16 LIFE-TO-DATE, 06/30/16 P2531 944-1 Reservoir Interior & Exterior Coating Cameron 205 300 (95) 146%390 311 79 80% Contract accepted in April 2016. Close out of project pending release of Stop Payment Notices filed against project. P2532 944-2 Reservoir Interior & Exterior Coating Cameron 101 50 51 50%946 937 9 99% Contract accepted in April 2016. Close out of project pending release of Stop Payment Notices filed against project. P2533 1200-1 Reservoir Interior & Exterior Coating Cameron 5 - 5 0%565 - 565 0%Project rescheduled for FY 2018. P2534 978-1 Reservoir Interior & Exterior Coating Cameron - - - 0%325 - 325 0%No expenditures for FY 2016. P2535 458-2 Reservoir Interior & Exterior Coating & Upgrades Cameron 294 400 (106) 136%839 774 65 92% Contract accepted in April 2016. Close out of project pending release of Stop Payment Notices filed against project. P2538 Administration and Operations Building Fire Sprinkler Replacement Program Cameron 5 25 (20) 500%110 89 21 81% Project is complete and in the 1 year warranty period. P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations Cameron 100 49 51 49%940 879 61 94% SANDAG driven project. SANDAG has notified the District that they are behind schedule and expenditures are not expected until FY 2017. P2542 850-3 Reservoir Interior Coating Cameron 230 382 (152) 166%530 527 3 99% Construction Contract accepted in Q2. Project is in the 2 yr. warranty period. P2543 850-1 Reservoir Interior/Exterior Coating Cameron - - - 0%575 - 575 0%No expenditures for FY 2016. P2544 850-2 Reservoir Interior/Exterior Reservoir Coating Cameron 5 - 5 0%940 - 940 0% Inspection work was rescheduled for FY 2017 to group it with other work and reduce cost. P2545 980-1 Reservoir Interior Exterior Coating Cameron 950 997 (47) 105%1,495 997 498 67% Project is on schedule. Construction began in the 3rd Qtr FY 2016. Project completion anticipated in FY 2017 Q1. P2546 980-2 Reservoir Interior/Exterior Coating Cameron - - - 0%1,450 - 1,450 0%No expenditures for FY 2016. P2550 Fuel Island Upgrade Payne 75 - 75 0%75 - 75 0% Contract issued; permit application and construction pending. Estimated completion beginning of FY 2017 Q2.P2553 Heritage Road Bridge Replacement and Utility Relocation Cameron 10 5 5 50%1,200 5 1,195 0%City of Chula Vista driven project. P2557 520 Res Recirculation Pipeline Chemical Supply and Analyzer Feed Replacement Project Beppler 1 9 (8) 900%100 9 91 9% Spending exceeded fiscal year budget in response to operations request. Upon determining an action plan, design was delayed until FY 2017. P2558 Additional Pump Station Fuel Storage Rahders 25 5 20 20%25 5 20 20% $15K savings. Unable to retrofit one site due to power requirements. No further activity in this area for Fiscal Year 2016. P2559 Pressure Vessel Repair and Replacement Program Marchioro 50 47 3 94%300 47 253 16%On target. P2564 Administration Carpet Replacement Program Payne 65 - 65 0%215 - 215 0% Project pushed to FY 2018 due to budget constraints. P2565 803-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%725 - 725 0%No expenditures for FY 2016. P2566 520-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%1,790 - 1,790 0%No expenditures for FY 2016. P2567 1004-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%565 - 565 0%No expenditures for FY 2016. R2109 Sweetwater River Wooden Trestle Improvement for the Recycled Water Forcemain Beppler 400 233 167 58%516 353 163 68% Project construction is complete. Warranty work is budgeted for next fiscal year. Project is under budget. R2111 RWCWRF - RAS Pump Replacement Beppler 250 406 (156) 162%600 555 45 93% Project construction is complete. Warranty work is budgeted for next fiscal year. Project is under budget. R2112 450-1 Disinfection Facility Rehabilitation Cameron 40 62 (22) 155%265 213 52 80%Project is in the warranty period. R2116 RecPL - 14-Inch, 927 Zone, Forcemain Assessment and Repair Marchioro 225 290 (65) 129%1,750 656 1,094 37% Pace accelerated; however, overall project within budget. R2120 RWCWRF Filtered Water Storage Tank Improvements Beppler 10 - 10 0%500 - 500 0% Scope of work requires structural design, necessitating waiting for the new as-needed engineering design contract to be awarded as not enough budget remained in previous one. S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Beppler 50 - 50 0%1,935 1,020 915 53% County design project, costs are as invoiced by them. Project is within overall budget. S2024 Campo Road Sewer Main Replacement Beppler 500 512 (12) 102%5,500 1,115 4,385 20% Design is complete. Easement acquisition will be in next fiscal year. Project is within overall budget. S2027 Rancho San Diego Pump Station Rehabilitation Beppler 320 226 94 71%3,500 300 3,200 9% County design project costs are as invoiced by them. Project is within overall budget. Y:\Board\CurBdPkg\ENGRPLAN\2017\BD 09-07-16\Fourth Quarter FY 16 CIP Update\Attachment B - 4th qtr expenditures.xlsx Page 3 of 4 8/16/2016 FISCAL YEAR 2016 4th QUARTER REPORT (Expenditures through 06/30/2016) ($000) Attachment B 2016 06/30/16 CIP No.Description Project Manager FY 2016 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments FISCAL YEAR-TO-DATE, 06/30/16 LIFE-TO-DATE, 06/30/16 S2033 Sewer System Rehabilitation Beppler 900 430 470 48%6,000 2,000 4,000 33% Construction of the RSD Sewer Phase 1 is behind schedule due to contractor's delay in starting. Pushing much of the unspent budget into FY 2017. Construction completion anticipated in FY 2017 Q2. Total Replacement/Renewal Projects Total:7,188 6,638 550 92%53,137 25,015 28,122 47% CAPITAL PURCHASE PROJECTS P2282 Vehicle Capital Purchases Rahders 556 529 27 95%5,191 3,635 1,556 70%No further activity in this area for FY 2016. P2285 Office Equipment and Furniture Capital Purchases Payne 15 15 - 100%589 551 38 94%FY 2016 complete. P2286 Field Equipment Capital Purchases Rahders 50 56 (6) 112%1,808 1,359 449 75% Overage due to $26.2K non-budgeted purchase of a replacement forklift to the Warehouse. No further activity in this area for FY 2016.P2366 APCD Engine Replacements and Retrofits Rahders 535 16 519 3%3,835 2,551 1,284 67%No further activity in this area for FY 2016. - Total Capital Purchase Projects Total:1,156 616 540 53%11,423 8,096 3,327 71% DEVELOPER REIMBURSEMENT PROJECTS P2556 HWY 94 Upsized Utility Relocations at Melody Lane Beppler 1 - 1 0%250 - 250 0%No activity this fiscal year. Total Developer Reimbursement Projects Total:1 - 1 0%250 - 250 0% 89 11,811$ 10,605$ 1,206$ 90%138,642$ 53,812$ 84,830$ 39% Y:\Board\CurBdPkg\ENGRPLAN\2017\BD 09-07-16\Fourth Quarter FY 16 CIP Update\Attachment B - 4th qtr expenditures.xlsx Page 4 of 4 8/16/2016 Otay Water District Capital Improvement Program Fiscal Year 2016 Fourth Quarter (through June 30, 2016) Attachment C Operations Yard Property Acquisition Improvements -Parking Lot 06/08/16 Background The approved CIP Budget for Fiscal Year 2016 consists of 80 projects that total $11.8 million. These projects are broken down into four categories. 1.Capital Facilities $ 3.5 million 2.Replacement/Renewal $ 7.2 million 3.Capital Purchases $ 1.1 million 4.Developer Reimbursement $ 1.0 thousand Overall expenditures through the Fourth Quarter of Fiscal Year 2016 totaled $10.6 million, which is approximately 90% of the Fiscal Year budget. 2 Fiscal Year 2016 Fourth Quarter Update ($000) CIP CAT Description FY 2016 Budget FY 2016 Expenditures % FY 2016 Budget Spent Total Life-to- Date Budget Total Life-to-Date Expenditures % Life-to- Date Budget Spent 1 Capital Facilities $3,466 $3,351 97%$73,832 $20,701 28% 2 Replacement/ Renewal $7,188 $6,638 92%$53,137 $25,015 47% 3 Capital Purchases $1,156 $616 53%$11,423 $8,096 71% 4 Developer Reimbursement $1 $0 0%$250 $0 0% Total: $11,811 $10,605 90%$138,642 $53,812 39% 3 Fiscal Year 2016 Fourth Quarter CIP Budget Forecast vs. Expenditures 4 Annual CIP Expenditures vs. Budget 5 6 CIP Projects in Construction 980-1 Reservoir Interior/Exterior Coating & Upgrades (P2545) Remove and Replace Deteriorating Reservoir Coatings. Structural Modifications to Increase Service Life. $1.50M Budget Start: February 2016 Estimated Completion: August 2016 7 980-1 Reservoir (5.0 MG) –Exterior Containment and Sandblasting Location: North End of Salt Creek Golf Course, Hunte Parkway, Chula Vista Division No. 5 CIP Projects in Construction 711-1 & 711-2 Reservoirs Interior/Exterior Coating & Upgrades (P2530, P2529) Remove and Replace Deteriorating Reservoir Coatings. Structural Modifications to Increase Service Life. $1.88M Budget Start: November 2015 Estimated Completion: September 2016 8 711-2 Reservoir (2.3 MG) –Exterior Scaffold Installation Location: Park Meadows Road, Chula Vista. Adjacent to East Lake County Club Golf Course Division No. 1 CIP Projects in Construction Operations Yard Property Acquisition Improvements (P2537) Provide parking to separate employee vehicles from District equipment. Will serve as Emergency staging area. $0.78M Budget Start: January 2016 Completed: June 2016 9 Operations Yard Property Acquisition Improvements –Asphalt Concrete Paving Division No. 3 Location: Sweetwater Springs Boulevard, Spring Valley. Adjacent to District Operations Yard 05/02/16 CIP Projects in Construction Rancho San Diego Basin Sewer Rehabilitation –Phase 1 (S2033-003103) Sewer system repairs at 14 locations 3,250 LF of 8-inch sewer 4 new sewer manholes $3.00M Budget Start: March 2016 Estimated Completion: November 2016 10 Trench Restoration in Singing Hills Mobile Estates Easement Division No. 5 Locations: 14 locations including Hillsdale Road, Donahue Drive, Juliana Street, Vista Grande Road, and Sundale Road. 05/24/16 Construction Contract Status PROJECT TOTAL % P2453- 002103 SR-11 Potable Water Utility Relocations - Sequence 1 Coffman Specialties, Inc.$947,380 $992,380 $29,480 3.1%$976,860 $976,860 -1.6%100.0%Completed June 2016 P2531 P2532 P2535 944-1, 944-2, & 458-2 Reservoirs Interior/Exterior Coating & Upgrades Olympus and Associates Inc.$1,146,008 $1,206,008 $88,738 7.7%$1,294,746 $1,286,355 7.4%99.4%Completed April 2016 R2111 RWCWRF RAS Pumps Replacement Cora Constructors Inc. $295,315 $315,315 $0 0.0%$300,087 $300,087 -4.8%100.0% Completed February 2016 R2112 450-1 Disinfection Facility Rehabilitation Fordyce Construction, Inc. $108,350 $128,350 ($360)-0.3%$107,990 $107,990 -15.9%100.0% Completed August 2015 S2033 Calavo Basin Sewer Rehabilitation Phase 1 Arrieta Construction Inc. $521,890 $529,490 ($34,531)-6.6%$494,959 $494,959 -6.5%100.0% Completed August 2015 P2542 850-3 Reservoir Interior Coating Abhe & Svoboda Inc.$336,720 $366,720 $22,533 6.7%$389,253 $389,253 6.1%100.0% Completed November 2015 FY 2016 CIP CONSTRUCTION PROJECTS CURRENT CONTRACT AMOUNT TOTAL EARNED TO DATE CIP NO.PROJECT TITLE CONTRACTOR BASE BID AMOUNT CONTRACT AMOUNT W/ ALLOWANCES % CHANGE ORDERS W/ ALLOWANCE CREDIT** % COMPLETE EST. COMP. DATE NET CHANGE ORDERS LTD* 11 Construction Contract Status PROJECT TOTAL % R2109 Sweetwater River Trestle Improvements Fordyce Construction, Inc. $153,740 $173,740 $0 0.0%$157,047 $157,047 -9.6%100.0% Completed January 2016 P2537 Operations Yard Property Acquisition Improvements Montgomery Construction Services, Inc. $401,456 $449,611 $2,319 0.6%$422,668 $406,033 -6.0%96.1%Completed June 2016 P2529 P2530 711-1 &711-2 Reservoir Interior/Exterior Coating & Upgrades Advanced Industrial Services, Inc. $1,103,715 $1,195,695 $0 0.0%$1,120,535 $863,220 -6.3%77.0%September 2016 P2545 980-1 Reservoir Interior/Exterior Coating & Upgrades Advanced Industrial Services, Inc. $769,000 $876,500 $8,000 1.0%$882,600 $819,100 0.7%92.8%August 2016 S2033 Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Transtar $951,470 $970,970 $0 0.0%$951,470 $211,154 -2.0%22.2%November 2016 P2541 R2110 624 Zone PRSs & 944-R PRS Improvements CCL Contracting Inc.$445,209 $455,209 $15,777 3.5%$460,986 $460,986 1.3%100.0%Completed May 2016 TOTALS:$7,180,253 $7,659,988 $131,957 1.8%$7,559,201 $6,473,043 -1.3% FY 2016 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* 12 PM 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 BK ATKINS Varies 2015 WATER FACILITIES MASTER PLAN UPDATE $ 434,731.00 $ - $ 434,731.00 $ 355,261.69 0.0%81.7%1/28/2014 12/31/2016 SB CAROLLO ENGINEERS, INC.VARIES 2015 INTEGRATED WATER RESOURCES PLAN UPDATE $ 99,993.00 $ 6,300.00 $ 106,293.00 $ 69,823.37 6.3%65.7%11/17/2014 6/30/2016 CH2M HILL ENGINNERS INC Varies 2015 URBAN WATER MANAGEMENT PLAN UPDATE $ 49,839.00 $ 49,839.00 $ 45,697.77 0.0%91.7%9/10/2015 6/30/2018 SB WATER SYSTEMS CONSULTING INC VARIES AS-NEEDED HYDRAULIC MODELING FY15/16 $ 175,000.00 $ - $ 175,000.00 $ 93,789.00 0.0%53.6%7/15/2014 6/30/2017 DESIGN BK AECOM P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (DESIGN ENGINEER) $ 3,910,297.00 $ (109,434.00) $ 3,800,863.00 $ 1,356,484.17 -2.8%35.7%1/6/2011 6/30/2018 BK ARCADIS U.S., INC. P2434, P2511 VALUE ENGINEERING AND CONSTRUCTIBILITY REVIEW $ 153,628.00 $ - $ 153,628.00 $ 70,208.73 0.0%45.7%1/24/2012 6/30/2016 COMPLETED SB ARCADIS U.S. INC VARIES AS-NEEDED DESIGN FY 15-16 $ 300,000.00 $ - $ 300,000.00 $ 211,336.02 0.0%70.4%9/11/2014 6/30/2017 JM ATKINS Varies AS-NEEDED ENGINEERING DESIGN SERVICES FY12-13 $ 175,000.00 $ - $ 175,000.00 $ 173,861.56 0.0%99.3%10/26/2011 6/30/2016 COMPLETED SC BROWNSTEIN HYATT FARBER SCHRECK P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 100,000.00 $ - $ 100,000.00 $ 47,609.50 0.0%47.6%7/1/2015 6/30/2017 KC BSE ENGINEERING INC Varies AS-NEEDED ELECTRICAL SERVICES $ 100,000.00 $ - $ 100,000.00 $ 56,829.87 0.0%56.8%7/1/2012 6/30/2017 JM CAROLLO ENGINEERS INC P2083 DESIGN/CONSTRUCTION FOR 870-2 PS $ 624,910.00 $ 135,500.00 $ 760,410.00 $ 508,823.29 21.7%66.9%10/11/2013 12/31/2017 JM HDR ENGINEERING INC Varies CORROSION SERVICES FY14-FY16 $ 684,750.00 $ 45,000.00 $ 729,750.00 $ 637,525.69 6.6%87.4%11/22/2013 12/31/2016 BK 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 JM LEE & RO INC P2511 OTAY INTERCONNECT PIPELINE $ 2,769,119.00 $ - $ 2,769,119.00 $ 1,112,174.73 0.0%40.2%11/4/2010 12/31/2015 COMPLETED Consultant Contract Status Consultant Contract Status 14 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 MICHAEL D.KEAGY REAL ESTATE Varies AS-NEEDED APPRAISAL SERVICES FY13-14 $ 45,000.00 $ - $ 45,000.00 $ 43,000.00 0.0%95.6%9/17/2012 6/30/2016 COMPLETED NINYO & MOORE Varies GEOTECHNICAL SERVICES $ 175,000.00 $ - $ 175,000.00 $ 63,382.25 0.0%36.2%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 $ 18,000.00 $ 320,092.00 $ 105,500.00 6.0%33.0%12/18/2014 4/30/2017 PSOMAS VARIES AS-NEEDED DESIGN FY 15-16 $ 300,000.00 $ - $ 300,000.00 $ 37,916.83 0.0%12.6%9/11/2014 6/30/2017 RFYEAGER Varies AS-NEEDED CORROSION ENGINEERING AND RESERVOIR COATING INSPECTION $ 175,000.00 $ - $ 175,000.00 $ 161,636.50 0.0%92.4%2/9/2015 12/31/2016 RICK ENGINEERING COMPANY S2024 CAMPO ROAD SEWER MAIN REPLACEMENT PROJECT $ 805,705.00 $ - $ 805,705.00 $ 687,231.45 0.0%85.3%5/27/2014 12/31/2017 RICK ENGINEERING COMPANY Varies TRAFFIC ENGINEERING SERVICES FY 16-18 $ 175,000.00 $ - $ 175,000.00 $ 5,878.88 0.0%3.4%7/1/2015 6/30/2018 SILVA SILVA CONSULTING P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 115,000.00 $ - $ 115,000.00 $ 72,289.05 0.0%62.9%5/1/2014 6/30/2016 COMPLETED CONSTRUCTION SERVICES AIRX UTILITY SURVEYORS Varies AS-NEEDED SURVEYING SERVICES FY 14-15 $ 175,000.00 $ 45,000.00 $ 220,000.00 $ 219,933.00 25.7%100.0%9/18/2013 6/30/2016 COMPLETED AIRX UTILITY SURVEYORS Varies UTILITY LOCATING SERVICES FY 16-18 $ 350,000.00 $ 350,000.00 $ 54,222.00 0.0%15.5%10/12/2015 6/30/2018 ALYSON CONSULTING Varies CONSTRUCTION MGMT/INSPECTION FY 13-15 $ 350,000.00 $ 41,820.00 $ 391,820.00 $ 391,706.25 11.9%100.0%10/24/2012 6/30/2016 COMPLETED ALYSON CONSULTING Varies CONSTRUCTION MGMT/INSPECTION FY 16-17 $ 350,000.00 $ (6,820.00) $ 343,180.00 $ 138,400.00 -1.9%40.3%7/1/2015 6/30/2017 CORRPRO COMPANIES INC Varies COATING INSPECTION FY 2016-2018 $ 175,000.00 $ 175,000.00 $ 55,598.25 0.0%31.8%1/7/2016 6/30/2018 HUNSAKER & ASSOCIATES Varies LAND SURVEYING FY16-18 $ 175,000.00 $ - $ 175,000.00 $ 20,298.00 0.0%11.6%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 $ 27,220.50 0.0%3.2%7/30/2014 12/31/2017 Consultant Contract Status 15 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 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 $ 185,954.54 0.0%39.1%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 $ 180,822.81 0.0%48.2%7/18/2014 6/30/2017 RECON P2494 PREPARATION OF THE SUBAREA PLAN $ 270,853.00 $ -$ 270,853.00 $ 220,133.36 0.0%81.3%3/28/2008 6/30/2018 WATER RESOURCES MICHAEL R. WELCH Varies ENGINEERING PLANNING SVCS.$ 100,000.00 $ -$ 100,000.00 $ 16,800.00 0.0%16.8%4/9/2014 6/30/2019 PUBLIC SERVICES AEGIS Varies AS-NEEDED DEVELOPER PROJECTS FY 15-16 $ 400,000.00 $ -$ 400,000.00 $ 188,703.01 0.0%47.2%2/12/2015 6/30/2017 TOTALS:$ 15,729,547.00 $ 175,366.00 $ 15,904,913.00 $ 7,625,052.07 1.1% QUESTIONS? 16 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 7, 2016 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 and Facilities:  Cal-Card Oversight through Analytics – The District has made an effort to move low value transactions to Cal-Card to reduce purchasing and payment processing costs. However, to maintain oversight, the District is deploying US Bank’s complimentary online analytics service that monitors 100% of all Cal-Card transactions. The service looks for uses that do not conform to the District’s policies based on standard and customized rules. If a transaction profile matches one or more of these rules, a notification is sent immediately to a designated supervisor. Under certain circumstances, an investigative case file is opened for additional review and resolution.  Security and Access Upgrade Program – The District and its security services provider have begun the second and final year of the upgrade program approved by the Board at its regular meeting held June 3, 2015. The Administration building is currently being upgraded with new wiring, access controllers, and break glass sensors to detect intruders entering through ground floor windows. The new management software, Entré, will go-live when the Administrative facility is completed. The finalized program will give the District real-time access control and reliable intrusion detection across all of its facilities. Human Resources:  Employee Recognition Luncheon – Mark your calendars to attend the District’s Recognition Luncheon scheduled for Wednesday, October 12th, at 11:30 am, at the Operations Center. 2  Benefits – HR is working with our benefits consultant to prepare for Open Enrollment, which will be held during the month of October. The rates for 2017 came in at a minimal increase rate of 3.7% for the EPO and PPO plans, and a 9% decrease for the HMO plan. In addition, our benefits consultant is comparing rates for our life insurance plans since the District is at the end of its three-year rate guarantee.  Recruitments/New Hires - The District is currently recruiting for a Communications Assistant, Senior Procurement and Contracting Analyst, and a Utility Worker. These positions are critical to District operations. Safety & Security:  Emergency Preparedness – Staff completed the monthly WebEOC exercise, which consisted of accessing the County of San Diego Office of Emergency Services status board, and providing a test update of the District’s EOC status under a simulated proclamation of an emergency. In addition, the District’s WebEOC Committee reviewed and agreed to add paper copies of the following: draft condensed emergency response plan; Levels 1 thru 3 emergency response flow chart; WebEOC quick user reference guide; and a copy of EPA’s starter guide for water and wastewater utilities “Hazard Mitigation for Natural Disasters.” INFORMATION TECHNOLOGY AND STRATEGIC PLANNING:  SCADA Roadmap – Staff, with the assistance from an outside consultant, completed a multi-year enterprise SCADA Roadmap. The comprehensive and detailed report provides a strategic outline of goals for the District’s new SCADA system. The roadmap is a multi- year plan designed to leverage additional value-added functions such as enhanced remote/mobile control of system, enterprise view and reporting of system activities, smart energy monitoring and analytics, operator process improvements, and system security enhancements, to name a few. Staff will be coordinating information meetings with the Engineering and Operations departments to discuss next steps.  ArcGIS Portal - Staff completed the deployment of ArcGIS Portal, ESRI’s new web platform. The ArcGIS Portal will enable staff to quickly build and share maps, applications, and provide greater mobility to many of the District’s current GIS resources. The ArcGIS Portal technology will also help to further streamline the District’s yearly assessment effort, and improve the ease of use in order to extend GIS services to additional staff. FINANCE: o Budget Book – Staff is preparing the FY17 Budget books and will be submitting them to the GFOA for award consideration. The 3 deadline for submission is September 30, 2016. o Audited Financial Statements – Outside auditors have concluded their audit field work. A draft report will be sent to the District for review prior to completion.  Financial Reporting: o For the first month ending July 31, 2016, there are total revenues of $8,996,848 and total expenses of $8,129,088. The revenues exceeded expenses by $867,760. o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of July 31, 2016 total $83,647,098 with an average yield to maturity of 0.95%. The total earnings year-to-date are $70,250. ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering:  Fred C. Sanders Jr. 2015 Revocable Trust Sewer Annexation to Improvement District (ID) No. 18: On August 3, 2016, the Board approved Resolution No. 4312 approving the annexation to the Otay Water District ID No. 18 (APN: 498-153-47-00) “11996 Paseo Fuerte, El Cajon, CA.” The Resolution included a term and condition that requested the applicant pay the State Board of Equalization filing fee in the amount of $3,500. This was a typographical error and should have indicated only $350. This is just to inform the board of the oversight, which did not cause any delays in the annexation.  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. Pipeline Inspection and Condition Analysis Corporation (PICA) will return to inspect the lower 12,000 feet of force main in December 2016. A construction contract was awarded to Charles King, Inc. at the August Board Meeting for blow off replacements, cathodic protection system rehabilitation, and other improvements. The Notice to Proceed for that contract was issued on August 18, 2016 to allow time for submittal review and materials procurement ahead of the planned work in October 2016. A fourth amendment to PICA’s agreement has been negotiated to coordinate work with Charles King’s construction contract award and delays due to cultural resources (artifacts) found at several sites. The fourth amendment includes a credit for dewatering the main. (R2116) 4  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. Formal bids to relocate six (6) existing air/vacuum valves from underground vaults to above ground locations were opened August 2, 2016. Award is scheduled for the October 5, 2016 Board Meeting. The project is within budget and on schedule to be completed in February 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. This project was advertised for construction on August 4, 2016, and the bid opening was held on August 25, 2016. The results of the bid opening will be presented at the September Committee/October Board Meetings. (P2534 & P2544)  SR-11 Potable Water Utility Relocations: Construction for the first two (2) rounds of relocations associated with the SR-11 freeway are complete. A second amendment to Caltrans Utility Agreement Number 33622 was executed on July 11, 2016. Caltrans provided final reimbursement payments for both Caltrans Utility Agreement Numbers 33592 and 33622 early August 2016. The overall project is within budget and on schedule. (P2453)  944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 944-1 0.3 MG Reservoir, the 944-2 3.0 MG Reservoir, and the 458-2 1.8 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. A Notice of Completion for the project was recorded with the County of San Diego on May 5, 2016. The District has received a total of four (4) Stop Payment Notices from subcontractors on the project. The District has been notified that three (3) of the Stop Payment Notices have been resolved. In accordance with applicable State law, the District is withholding funds and retaining contract bonding for the final Stop Payment Notice. Olympus & Associates Inc., Crosno Construction Inc., and the District have entered into an agreement to resolve the final Stop Payment Notice. The agreement allows the District to distribute the final payment and retention funds due. The project is within budget. (P2531, P2532, P2535) 5  711-1 & 711-2 Reservoir Interior/Exterior Coatings & Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 711-1 3.1 MG Reservoir and the 711-2 2.3 MG Reservoir, along with providing structural upgrades, to ensure the tanks comply with both State and Federal OSHA standards as well as the American Water Works Association and the County Health Department standards. The contractor, Advanced Industrial Services, Inc., has completed the work on the 711-1 Reservoir and the reservoir has been placed into service. The contractor has completed the interior coating work and is currently coating the exterior of the 711-2 Reservoir. It is anticipated that removal and replacement of the exterior coating will be completed in early September 2016. The project is within budget and on schedule to be completed in late September 2016. (P2529 & P2530)  980-1 Reservoir Interior/Exterior Coatings & Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 980-1, 5.0 MG, Reservoir, along with providing structural upgrades, to ensure the tank complies with both State and Federal OSHA standards as well as the American Water Works Association and the County Health Department standards. The contractor, Advanced Industrial Services, Inc., completed the interior and exterior coating work in July. The test results of the newly filled reservoir indicated that the water met all requirements of the State of California and as a result, the 980-1 reservoir was placed into service on August 22, 2016. The project is within budget and the construction contract was accepted by the District in August 2016. (P2545)  Rancho San Diego Basin Sewer Rehabilitation – Phase 1: This project consists of sewer system improvements at fourteen (14) locations within the Rancho San Diego Basin. The work includes replacement of approximately 3,250 linear feet of 8-inch gravity sewer main and the installation of four (4) new manholes. The contractor, Transtar Pipeline, Inc., has installed sewer along Hillsdale Road, Juliana Street, and Donahue Drive with final paving and punch list work pending. Sewer replacement work located within Vista Grande Road is currently under construction. The project is within budget, however, the construction is significantly behind schedule as a result of a late start by the contractor and slow contractor progress. It is anticipated that construction will be completed in November 2016. The contractor has been notified that the project is subject to liquidated damages associated with late delivery. (S2033)  Operations Yard Property Acquisition Improvements: This project consists of the construction of an approximate 27,700 square-foot asphalt concrete parking lot, including storm drainage facilities, chain-link fence, and area lighting. The District accepted the construction contract performed by Montgomery Construction Services, 6 Inc. on June 30, 2016. A Notice of Completion for the construction contract was recorded by the District with the County of San Diego on July 14, 2016. The parking lot is currently in use. Since the date of contract acceptance, the District has been notified by eight (8) separate suppliers and subcontractors regarding non-payment by Montgomery Construction Services, Inc. Effective Stop Payment Notices for the contract currently total $123,203.61 on an accepted contract amount of $422,667.64. As a result of the Stop Payment Notices received by the District, the District is currently withholding final payment, retention, and bonding as required by State law. The project is within budget. (P2537)  Water Facilities Master Plan Update: This project will update the District’s existing Water Resources Master Plan that was previously updated in October 2008 and revised in May 2013. The draft Program Environmental Impact Report (PEIR) 45-day public comment period began August 3, 2016. The final PEIR and Water Facilities Master Plan Update should be ready for Board consideration before the end of the year. (P1210)  Pure Water Cost Allocation Update: On August 4, 2016, the City of San Diego and Bureau of Reclamation filed a Notice of the Preparation of an Environmental Impact Report and Scoping Meetings for the first phase of the Pure Water Program to 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 conveyance pipeline to Miramar Reservoir. At the Metro TAC Meeting held on August 17, 2016, the City of San Diego presented an update on the cost allocation discussions for the project. This is the first of several meetings to go over the framework for project cost allocation between Metro Wastewater and City of San Diego Water Departments.  Groundwater Basin Boundary Modification: On August 16, 2016, staff met with AECOM and Gillingham Water Planning to get an update on the basin boundary modification for the San Diego Formation and the next steps. The City of San Diego filed an application with the California Department of Water Resources (DWR) for a scientific- based modification to the boundaries of the San Diego Formation Groundwater Aquifer, and on April 8, 2016, DWR classified the application as complete and ready for public review. DWR is expected to classify the basin as a medium priority basin as early as September 2016 after which the District will have two (2) years to establish a Groundwater Sustainability Agency (GSA) or form a Joint Powers Authority (JPA) with other stakeholders. The District will have five (5) years from the classification date to submit a Groundwater Sustainability Plan (GSP) to DWR. A GSP may be a single plan for the entire basin developed and implemented by one GSA or it could be a single plan covering the entire basin developed and implemented by multiple GSAs. An alternative, subject to Water Code 7 Section 10727.6, multiple GSP implemented by multiple GSAs would need to be coordinated pursuant to a single coordination agreement that covers the entire basin.  Recycled Water Fire Hydrant Installations: This project consists of installing fire hydrants/filling stations on the recycled water system for fire suppression. The project includes meeting Title 22 requirements, obtaining regulatory approval, establishing protocol, and site selection. On April 13, 2016, a fill station was constructed at the end of Hunte Parkway. The facility is a locked enclosure within a District easement with easy access to fire department trucks and street sweepers. Staff submitted the project to be enrolled in Order WQ 2014-0090-DWQ, General Waste Discharge Requirements for Recycled Water Use (General Order). On July 20, 2016, the District received approval of the Rules and Regulations for Recycled Water Use by the Regional Board, however, the State Board will require the District to transition to Order WQ 2016-0068- DDW, the new statewide permit that was adopted on June 7, 2016. Staff contacted potential users again to remind them that the recycled water fill station is available for use, subject to the restrictions identified by the Rules and Regulations. (R2122)  Ralph W. Chapman Water Reclamation Facility (RWCWRF) Facility Master Plan: On February 29, 2016, the District issued a Task Order to Arcadis to prepare a Master Plan for the RWCWRF to develop a phased approach to implement improvements with prioritizing identified improvements considering the needs, overall costs, long-term payback on investment, and other factors. The District assembled a list of projects to begin the study, but Arcadis will draw upon their expertise to identify additional work that would improve the operation of the facility. Improved instrumentation to enhance the operation and automation is also being studied. A draft of the master plan was submitted to the District at the end of July 2016. The final plan will be completed in September 2016 and will be used for prioritizing future CIP projects. (R2119)  Rosarito Desalination: NSC Agua, a subsidiary of Consolidated Water Company (CWCO), has emerged as the top-ranked bidder for the seawater desalination plant at Playas de Rosarito, Mexico. NSC Agua finalized a definitive public-private partnership agreement with the State on August 25, 2016. District staff and representatives from NSC Agua continue to coordinate on complying with the California Water Resources Control Board Drinking Water Program regulatory requirements related to source water quality testing. On June 23, 2016, the 45-day public review period ended for the draft EIR/EIS. District staff, U.S. Department of State, and AECOM are working on the responses to the comments for certification of the EIR/EIS by the September 7, 2016 Board Meeting. An update of the project was presented to the Desalination Committee on August 29, 2016. (P2451) 8  For the month of July 2016, the District sold 3 meters (26 EDUs), generating $247,140 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 $247,140 against the annual budget of $3,242,100.  The following table summarizes Engineering's project purchases and Change Orders issued during the period of June 24, 2016 through August 30, 2016 that were within staff signatory authority: Date Action Amount Contractor/ Consultant Project 08/04/16 C.O. $42,700.00 Carollo Engineers, Inc 870-2 Pump Station (P2083) 08/22/16 P.O. $6,511.37 Watchlight Corporation 944-1 & 2 Reservoir/1296- 1 Pump Station (P2531) 08/24/16 P.O. $10,661.66 Watchlight Corporation 980-1 Reservoir (P2545) Water System Operations (reporting for July):  As previously mentioned, on July 14, the District experienced an emergency main break on the 24-inch 624 pressure zone line on Telegraph Canyon Rd. between Apache Drive and Buena Vista. Three customers were initially affected and water trailers were provided until they were high-lined and their water service restored. The cause of the break was a steel saddle for a 2-inch service and the overall condition of about 27-inches of pipe that failed. The main was repaired on July 18, due to the difficulty of the repair, proximity with other utilities, depth, and extremely hard soil.  On August 1, an APCD inspector came to the District to inspect nine sites. Five gensets and four engines were inspected. No violations were noted. The inspector was so impressed with the necessary documentation by staff that he noted in an email to staff that the level of records organization and professionalism from Otay Water was outstanding and the inspection went quickly and with no violations and saved a lot of time for both agencies.  Staff has completed the second and final round of special lead and copper sampling as required by the State Water Resources Control Board. The samples have been collected and sent to a lab for testing. The results are expected to be available by the second week of September. 9  Conservation – District customers continue to conserve water, however, the overall conservation rate in July was the lowest it has been since February 2016. July 2016 usage was 14% lower than July 2013 usage. Since the State’s conservation mandate began in June 2015, customers have saved an average of 19%. o  The July potable water purchases were 2,891.6 acre-feet which is 8.9% above the budget of 2,656.4 acre-feet. 10  The July recycled water purchases and production were 519.5 acre- feet which is 14.8% above the budget of 452.7.0 acre-feet. Potable, Recycled, and Sewer (Reporting up to the month of July):  Total number of potable water meters is 49,547.  Recycled water consumption for the month of July is as follows: o Total consumption was 539.7 acre-feet or 175,802,440 gallons and the average daily consumption was 5,671,046 gallons per day. o Total cumulative recycled water consumption since July 1, 2016 is 539.7 acre-feet. o Total number of recycled water meters is 710.  Wastewater flows for the month of July were as follows: o Total basin flow, gallons per day: 1,532,568. This is an increase of 3.61% from June 2015. o Spring Valley Sanitation District Flow to Metro, gallons per day: 506,769. o Total Otay flow, gallons per day: 1,025,774. o Flow Processed at the Ralph W. Chapman Water Recycling Facility, gallons per day: 936,742. o Flow to Metro from Otay Water District was 89,051 gallons per day.  By the end of July there were 6,101 wastewater EDUs. 51,000,000 S5oo,ooo -Ssoo,ooo -51,000,000 -51,5oo,ooo -52,000,000 a COMPARATIVE BUDGET SUMMARY NET REVENUES AND EXPENSES FOR ONE MONTH ENDED JULY 31, 2015 YTD Actual Net Revenues YTD Budget Net YTD Variance in Net Revenues AUG SEP OCT NOV DEC ]AN FEB MAR APR MAY o 5o JUL J UNE The July actual net revenues were positive 5867,760, which is 5L67,779 below the year-to-date budgeted positive net revenues of $699,981 OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR ONE MONTH ENDED JULY 3I, 2016 Actual Budget YTD Variance Exhibit A Yar o/o 10.9% 9.8o/o 7.5o/o 0.2% 0.2% (32.7%) REVENUES: Potable'Water Sales Recycled Water Sales Potable Energy Charges Potable System Charges Potable MV/D & CWA Fixed Charges Potable Penalties Total Water Sales Sewer Charges Meter Fees Capacity Fee Revenues Non-Operating Revenues Tax Revenues Interest Total Revenues EXPENSES: Potable Water Purchases Recycled Water Purchases CWA-Infrastructure Access Charge CVy'A-Customer Service Charge CWA-Reliability Charge CWA-Emergency Storage Charge MWD-Capacity Res Charge MWD-Readiness to Serve Charge Subtotal Vy'ater Purchases Power Charges Payroll & Related Costs Material & Maintenance Administrative Expenses Legal Fees Transfer to General Fund Reserve Expansion Reserve Betterment Reserve Replacement Reserve Transfer to Sewer General Fund OPEB Trust New Supply Reserve Total Expenses EXCESS REVENUES(EXPENSE) 4,782,157 $ l,l43,g5g 292,166 I,105,857 1,093,301 59,409 4,311,700 $ l,o4l,4oo 271,900 I,103,300 1,091,000 88,300 470,457 102,558 20,266 2,557 2,301 (28,8e1) $ 9,476,949 7,907,600 569,248 7.2o/o 255,166 4,961 94,944 122,769 30,117 12,044 257,000 5,500 104,000 149,100 25,300 1 3,1 00 (1,834) (53e) (9,0s6) (26,331) 4,877 (1,056) (0.7o/o) (9.8o/o) (8.7o/o) (17.7o/o) 19.0% (8.1%) $ 8,996,848 $ 8,461,600 $535,248 6.3% $3,368,714 $ 326,412 161,143 145,549 158,342 383,671 80,037 105,680 3,093,700 $ 266,950 l6l,l00 145,500 15 8,300 383,700 80,000 132,300 (275,014) (59,462) (43) (4e) (42) 29 (37) 26,620 (8.9%o) (223%) (0.0%) (0.0%) 0.0o/o 0.0o/o (0.0%) 20.1o/o 4,729,548 4,421,550 (307,ee8) (7.0%) 371,021 1,545,687 200,695 267,637 25,000 123,500 341,100 288,900 38,700 114,300 80, I 00 2,900 296,300 1,553,800 203,140 276,49s 20,833 123,500 341,100 288,900 38,700 114,300 80,100 2,900 (74,721) 8,1 l3 2,445 8,858 (4,167) (2s.2%) 0.5o/o LZo/o 3.2o/o (20.0%) 0.0% 0.0% 0.0o/o 0.0o/o 0.0o/o 0.0o/o 0.0% $ $ 8,129,088 $ 867,760 $ 7,761,619 699,981 s (367,469) (4.7o/o) _$ t67JJ2_ Ànnual Budget $ 44,450,600 g,goo,3oo 2,164,200 12,204,600 12,535,200 884,000 81,138,900 2,918,900 66,200 1,,248,200 2,179,300 4,033,100 1s6,900 $ 91,741,500 $ 31,271,300 3,615,900 1,976,400 1,714,200 1,949,000 4,579,800 998,800 1,429,000 47,422,400 2,938,000 20,899,900 3,456,300 4,900,100 250,000 1,482,500 4,og3,600 3,466,400 464,500 1,371,800 961,000 35,000 $ 91,741,500 $ F:/MORPT/F52017-0716 812912016 9:46 AM OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIE\il July 31,2016 INVESTMENT OVERVIEW & MARKET STATUS: The federal funds rate has remained constant for over 5 years. On December 16, 2015, at the Federal Reserve Board's regular scheduled meeting, the federal funds rate was increased from 0.25o/o to 0.50o/o" in response to the nation's gradual economic improvement. The Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective. The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation. There have been no further changes made to the federal funds rate at the Federal Reserve Board's subsequent regular meetings, the most recent of which was held on July 27,2016. In determining the timing and size of future adjustments to the target range for the federal funds rate, they went on to say: "the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including meqsures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings onfinancial and international developments. In light of the curcent shortfall of inflationfrom 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal. The Committee expects that economic conditions will evolve in a mqnner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, þr some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming deta. " The District's overall effective rate of return at July 31,2016 was 0.95%, which was thirteen basis points higher than the previous month. At the same time the LAIF retum on deposits has improved over the previous month, reaching an average effective yield of 0.588% for the month of July 2016. Based on our success at maintaining a competitive rate of return on our portfolio during this extended period of low interest rates, no changes in investment strategy regarding returns on investment are being considered at this time. The desired portfolio mix is important in mitigating any liquidity risk from unforeseen changes in LAIF or County Pool policy. In accordance with the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety, liquidity, and return on investment. PORTF'OLIO COMPLIANCE: July 31, 2016 Investment 8.01: Treasury Securities 8.02: Local Agency Investment Fund (Operations) 8.02: Local Agency Investment Fund (Bonds) 8.03: Federal Agency Issues 8.04: Certificates of Deposit 8.05: Short-Term Commercial Notes 8.06: Medium-Term Commercial Debt 8.07: Money Market Mutual Funds 8.08: San Diego County Pool 12.0: Maximum Single Financial Institution State Limit 100% $65 Million 100% 100% 30% 25% 30% 20% r00% 100% Otay Limit 100% $65 Million t00% 100% ls% l0% t0% r0% t00% s0% Otav Actual 0 $5.34 Million 0 73.83% .10% 0 0 0 t6.04% 3.64% Target: Meet or Exceed 100% of LAIF 1.20 1.00 0.60 0.20 0.80 o Co E tto tr coctoÉ. Performance Measure FY-1 7 Return on lnvestment Month ¡LAIF rotay trDifference 0.40 0.00 rl¡l I Apr FYI5 May FYI5 June FY I5 4th Qtr FYI5 July FYI6 Aug FY16 sep FYI6 lst Qtr FYI6 Oct FYI6 Nov FYI6 Dec FYI6 2nd Qtr FY16 Jan FYI6 Feb FY I6 Mar FYI6 3rd Qh FYI6 Apr FYI6 May FYI6 Jun FY I6 4fh Qtr FYI6 July FYIT ¡LAIF 0.28 0.29 0.30 0.29 0.32 0.33 0.34 0.33 0.36 0.37 0.40 0.38 0.45 0.47 0.5 t 0.47 0.53 0.55 0.58 0.55 0.59 lOtay 0.71 0.73 0.76 0.73 0.75 0.78 0.78 0.77 0.76 0.79 0.79 0.78 0.80 0.85 0.87 0.84 0.87 0.89 0.96 0.9 r 0.95 O Difference 0.43 0.44 0.46 0.44 0.43 0.45 0.44 0.44 0.40 0.42 0.39 0.40 0.35 0.38 0.36 0.37 0.34 0.34 0.38 0.35 0.36 Otay Water District Investment Portfolio: 07 / Br/ zot6 $61,733,519 73.83" 3,129,964 3.740h 180750,843 22.430 Total Cash and lnvestments: 583,614,326 tr Banks (Passbook/Checking/CD)lPools (LAIF & County)trAgencies & Corporate Notes Par Month End Portfolio Management Portfolio Summary July 31,2016 Market Value Book Value %of Portfolio Term Days to Maturity YTM 360 Equiv. YTM 365 Equ¡v.lnvestments Value Federal Agency lssues- Callable Federal Agency lssues - Coupon Cert¡ficates of Deposit - Bank Local Agency lnvestment Fund (LAIF) San Diego County Pool 71.66 4.96 0.10 6.63 16.65 131 539 1 1 57,735,000.00 4,000,000.00 8'l,833.21 5,340,374.48 13,410,468.41 s7 ,763,341.70 4,000,100.00 81,833.21 5,343,692.04 13,410,000.00 57,735,000.00 3,998,51 9.06 81,833.21 5,340,374.48 13,410,468.41 932 759 731 1 1 1.052 0.610 0.030 0.580 0.868 1.066 0.618 0.030 0.588 0.880 80,567,676.10 80,598,966.95 80,566,195.16 100.00%706 561 0.967 0.980lnvestments Cash Passbook/Checkino(not included ¡n y¡efd calculations) Total Cash and lnvestments 3,048,1 30.55 3,048,1 30.55 3,048, I 30.55 0.128 0.967 0.130 83,615,806.65 83,647,097.50 83,614,325.71 706 561 0.980 Total Earnings July 3l Month Ending Fiscal Year To Date Current Year 70,250.01 70,250.01 Average Daily Balance 87,308,177.54 87,308,177.54 Effective Rate of Return 0.95% 0,95% information Data Corporation. The ¡nvestments provide sufficient liquidity to meet the cash flow requ¡rements of the D¡strict for the next six months of expenditures.f-z¿-/6 Chief Officer Reporting petiod OZ 10112016-07 131 12016 Data Updated: SET_ME8: 08/251201 6 09:33 Run Dãte: 08/2512016 - 09:33 Portfolio OTAY NL! AP PM (PRF_PM1) 7.3.0 Report Ver. 7.3.5 CUSIP Month End Portfolio Management Portfolio Details - Investments July 31, 2016 Market Value StatedBookValue Ratê Page 1 YTM Days to Matur¡ty 360 Matur¡tv Dalelnvestment #lssuer Average Purchase DateBelance Par Value s&P Federal Agency lssues- Callable 2301 2304 2345 2349 2363 2320 2355 2346 2350 2362 2358 2348 2354 2336 2353 2334 2338 2360 .2340 2342 2343 2344 2347 2351 2352 2357 2359 2356 2361 3134G5A47 31 36G23G0 3134G8NM7 3134G8WW5 3134G9D38 3133EEYE4 3'13048547 3130A7H73 3134G9AF4 3,I33EGJUO 3130A8KR3 3134G8X42 3133EGBG9 3135G0G64 31 34G9G87 31 36G2R665 313046U28 3134G92R1 3134G8KL2 3136G22W0 3136G22W0 3134G8Q44 3134G94\^r/ 3134G82M4 313047WK7 3133EGCZ6 3133EGGS8 31 34G9SL2 31 33EGJR7 0613012014 0811512014 03t29t2016 04t27t2016 06t29t2016 0411612015 0512612016 0312912016 0412612016 0710512016 0612312016 0412712016 05t23t2016 10t30t2015 0510212016 11t19t2015 1212812015 0612812016 02t2612016 0212612016 02t26t2016 0312912016 04t26t2016 04t29t2016 0512412016 06/06i2016 0612712016 0612812016 0710512016 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,005,060.00 2,000,300.00 2,000,720.00 2,000,360.00 1,998,720.00 2,000,000.00 2,000,160.00 2,002,700.00 2,000,280.00 1,997,660.00 1,999,760.00 2,O01,440.O0 2,000,460.00 1,997,700.00 2,000,000.00 2,000,460.00 2,005,040.00 1,999,180.00 2,000,680.00 1,030,226.60 2,705,595.1 0 2,000,520.00 2,001,940.00 2,001,380.00 2,005,440.00 2,005,680.00 2,000,320.00 2,004,900.00 1,996,660.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2.000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1230t2016 08115t2017 0912912017 1012712017 1212912017 01t16t201e 0?J26t2018 03t29t2018 0412612A18 07t05t2018 07t06t2018 0712712018 0812312018 1012912018 11t02t2018 1111912018 1212812018 1212812018 0212612015 0?J26t2019 0212612019 0312912019 0412612019 0412912019 0512412019 06/06/2019 0612712019 06t28t2019 07t05t2019 Federal Home Loan Mortgage Federal National Mortage Assoc Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Mortgage Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgâge Federal Farm Cred¡t Bank Fann¡e Mae Federal Home Loan Mortgage Fann¡e Mae Federal Home Loan Bank Federal Home Loan Mortgage Federal Home Loan Mortgage Federal National Mortage Assoc Federal Nat¡onal Mortage Assoc Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Bank Federal Farm Cred¡t Bank Federal Farm Credit Bank Federal Home Loan Mortgage Federal Farm Credit Bank Subtotal and Average 0.650 1.050 0.850 0.850 0.700 1.000 0.900 1.000 1.050 0.820 0.820 1.000 1.000 1.100 1.200 1.150 1.375 1.000 1.300 1.125 1.'125 1.350 1.150 1.300 1.250 1.300 1.200 1.300 1.020 AA AA AA 0.641 1.036 0.838 0.838 0.690 0.986 0.888 0.986 1.036 0.809 0.809 0.986 0.986 1.085 1.184 1.134 1.356 0.986 1.282 1.1 10 1.110 1.332 1.134 1.282 1.233 1.282 1.184 1.282 1.006 151 379 424 452 515 533 574 605 633 703 704 725 752 819 423 840 879 879 939 939 939 970 998 1,001 1,026 1,039 1,060 1,061 1,068 AA AA AAA AAA AA AA AA AA 59,618,870.97 57,735,000.00 57,763,341.70 57,735,000.00 1.052 773 Federal Agency lssues - Coupon 2286 2329 Federal National Mortage Assoc Federal Farm Credil Bank 3135G0YE7 3l 33EEC73 04t0112014 0612612015 2,000,000.00 2,000,000.00 2,000,460.00 1,999,640.00 2,000,080.92 1,998,438.14 0.558 AA 0.661 25 081?612016 238 03t27t20't7 Portfolio OTAY NL! AP Ptv (PRF_PM2) 7.3.0 0.625 0.550 Data Updated : SET_ME8: O8l25l2O1 6 09133 Run Date: 08125/20'16 - 09:33 Report Ver. 7.3.5 CUSIP lnvestrnent #lssuer Average Balance Month End Portfolio Management Portfolio Details - lnvestments July 31,2016 Purchase Date Par Value Mârkêt Vâlue StatedBookValue Rate Page 2 YTM Days to Matur¡ty 360 Matur¡ty Dates&P Subtotaf and Average 3,998,47{.62 4,000,000.00 4,000,100.00 3,998,519.06 0.610 131 Certificates of Deposit - Bank 2050003183-7 2341 0112?/2016 81,833.21 81,833.21Californ¡a Bank & Trust Subtotal and Average 81,833,21 81,833.21 81,833.21 81,833.21 81,833.21 0.030 0.030 539 01t22t2018 0.030 539 Local Agency lnvestment Fund (LAIF) LAIF LAIF BABS 2O1O STATE OF CALIFORNIA STATE OF CALIFORNIA Subtotal and Average 9001 9012 071o112016 5,340,374.48 0.00 5,343,692.04 0.00 5,340,374.48 0.00 0.588 0.267 0.580 0.263 6,525,791.31 5,340,374.48 5,343,692.04 5,340,374.48 0.580 I San Diego County Pool SD COUNTY POOL 9OO7 13,410,468.41 13,410,000.00 13,410,468.41 0.880 0.868San D¡ego County Subtotal and Average 13,396,523.32 13,410,468.41 13,410,000.00 13,410,468.41 0.868 1 Tota¡ end Avêrage 87,308,177.54 80,567,676,10 80,598,966.95 80,566,195.16 0.967 561 Data Updated: SET_ME8: 08/2512016 09:33 Portfolio OTAY NL! AP PM (PRF_PM2) 7.3.0Run Date: 08125/2016 - 09:33 Month End Portfolio Management PoÉfolio Details - Cash July 31, 2016 Page 3 CUSIP lnvestment #lssuer Average Balance Purchase Date Par Value Market Value StatedBookValue Rate YTM Daysto 360 MeturityS&P Union Bank UNION MONEY PETTY CASH UNION OPERATING PAYROLL RESERVE.IO COPS RESERVE-10 BABS UBNA-2o10 BOND UBNA-FLEX ACCT 9002 9003 9004 9005 901 0 901 1 9013 9014 STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA Average Balance 07t01t2016 2,025,006.69 2,950.00 941,320.46 27,861.29 2,263.76 5,945.58 0.00 42,782.77 2,025,006.69 2,950.00 941,320.46 27,861.29 2,263.76 5,945.58 0.00 42,782.77 2,025,006.69 2,950.00 941,320.46 27,861.29 2,263.76 5,945.58 0.00 42,782.77 0710112016 0710112016 0.010 0.400 0.010 0.010 0.010 0.000 0.395 0.000 0.010 0.0'f 0 0.000 0.000 0.00 Total Cash and lnvestments Data Updated: SET_ME8: 08/2512016 09:33 87,308,177.54 83,615,806.65 83,647,097.50 83,614,325,71 0.967 561 Portfolio OTAY NL! AP PM (PRF_PM2) 7.3.0Run Date: 08125/2016 - 09:33 Month End GASB 31 Compliance Detail Sorted by Fund - Fund July l, 2016 - July 31, 2016 Adjustment in Value CUSIP lnvestment# Fund lnvesünent Class MaturiÇ Date Beg¡nn¡ng lnvested Value Purchese of Principal Addit¡on to Principal Redempt¡on of Principal Amort¡zation Adjustment Change in llilarket Value Ending lnvested Value Fund: Treasury Fund 3134G8KL2 2340 3134G8X42 2348 3I34G9AW7 2347 3134G8NM7 234s 3134G8Q44 2344 3134G8\ ^/i/5 2349 3134G5447 2301 3134G9AF4 2350 3134G92R1 2360 3134G9D38 2363 3134G82M4 2351 3134G9SL2 2356 3134G9G87 23s3 3136G23G0 2304 3136G22W0 2342 3136G22W0 2343 3135G0YE7 2286 3I30A8KR3 2358 313048547 2355 3130A7H73 2346 3I30A7WK7 2352 313045680 2325 3130A72G9 2339 3í30A6UZ8 2338 UBNA-2010 BOND 9013 RESERVE-IOBABS 9011 PAYROLL 9OO5 RESERVE.IOCOPS 9OIO UNION MONEY 9OO2 PETTY CASH 9OO3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 27,861.29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.13 0_00 0.34 9,186,1 12.58 0.00 99 oo oô oo oô oo 99 ôô 99 99 99 99 oo 99 ôo 99 99 99 99 99 99 99 ôo 99 99 99 oo 99 ôô Amortized Fair Value Fair Value Amortized Fair Value Fair Value Fa¡r Value Fair Value Fair Value Fair Value Fair Value Amortized Fair Value Fair Value Amortized Fa¡r Value Fair Value Fair Value Fair Value Fa¡r Value Fair Value Fair Value Amortized Amortized Amortized Amortized Amortized Amortized Amortized Amortized 02126t2019 07t27t2018 04t26t2019 0912912017 0312912019 1012712017 1213012016 04t26t20't8 1212812018 12t29t2017 0412912019 0612812019 1110212018 08115t2017 02126t2019 0212612019 0812612016 0710612018 02t2612018 0312912018 05t24t2019 05t0412018 0112912019 12t28t2018 2,000,000.00 2,002,300.00 2,002,900.00 2,000,000.00 2,001,020.00 2,000,180.00 2,005,720.00 2,000,900.00 2,000,360.00 1,999,940.00 2,000,480.00 2,000,000.00 2,000,160.00 2,001,040.00 I,030,000.00 2,706,460.70 2,000,460.00 2,002,680.00 2,000,480.00 2,003,680.00 2,006,780.00 1,200,048.00 2,000,000.00 2,000,000.00 0-00 5,944.45 0.00 2,263.42 59,205.66 2,950.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,200,000.00 2,000,000.00 0.00 0.00 0.00 0.00 0.00 7 ,220,311.55 0.00 0.00 -860.00 -960.00 0.00 -500.00 180.00 -660.00 -620.00 -1,1 80.00 -1,220.00 900.00 0.00 -160.00 -740.00 0.00 -865.60 0.00 -2,920.00 -320.00 -980.00 -1,340.00 -48.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 2,001,440.00 2,001,940.00 2,000,000.00 2,000,520.00 2,000,360.00 2,005,060.00 2,000,280.00 1,999,180.00 1,998,720.00 2,001,380.00 2,000,000.00 2,000,000.00 2,000,300.00 1,030,000.00 2,705,595.1 0 2,000,460.00 I,999,760.00 2,000,160.00 2,002,700.00 2,005,440.00 0.00 0.00 2,000,000.00 0.00 5,945.58 27 ,861.29 2,263.76 2,025,006.69 2,950.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Data Updated: SET_ME8: 08/2512016 09:33 Portfolio OTAY NL! AP GD (PRF_GD) 7.1.1 ReportVer.7.3.5 Run Date: 08/2512016 - 09:33 Month End GASB 3l Gompliance Detail Sorted by Fund - Fund Page2 Adjusûnent ¡n value CUSIP lnvesûnent# Fund lnvestment Glass Matur¡ty Date Beg¡nning lnvested Valuê Purchase of Pr¡nc¡pal Addition to Pr¡ncipal Redemption of Princípal Amort¡zation Adjustment Change in End¡ng Market value lnvestêd Valuê Fund: Treasury Fund UNION OPERATING 9OO4 LAIF BABS 2010 9012 UBNA.FLEXACCT 9014 LA|F 9001 3133E8C73 2329 3133EGJR7 2361 3133EGGS8 2359 3133EGJU0 2362 3133EEXC9 2323 3133EGCZ6 23s7 3133EELR9 2317 3133EEYE4 2320 3133EGBG9 23s4 20s0003183-7 2341 3136G2R66s 2334 3135G0G64 2336 SD COUNTY POOL 9OO7 99 99 99 99 99 oo ôô oo ôo oô 99 99 99 99 99 99 99 Amortized Fair Value Amortized Fair Value Amort¡zed Amortized Fair Value Fair Value Fair Value Fair Value Fair Value Fâir Value Fa¡r Value Amortized Amorlized Amortized Fair Value 03t27t2017 0710512019 0612712019 0710512018 04t06t2017 06t06t2019 0112712017 0111612018 08t23t2018 0112212018 11t19t20't8 101291201A 1,266,016.03 0_00 0.00 6,33 1,635.28 1,998,239.59 0.00 2,001,060.00 0.00 2,000,040.00 2,007,080.00 2,000,000.00 2,000,020.00 2,000,940.00 81,833.21 2,000,000.00 2,000,000.00 13,386,000.00 0.00 0.00 50,891.84 0.00 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,485,316.56 0.00 0.00 4,510,'t 38.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22,752.51 1,810,012.1 3 0.00 8,109.07 5,500,000.00 0.00 0.00 0.00 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 98.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,918.20 0.00 0.00 -740.00 -2,340.00 -40.00 -1,400.00 0.00 -20.00 -480.00 0.00 0.00 0.00 1,247.49 941,320.46 0.00 42,782.77 5,343,692.04 1,998,438.14 2,000,000.00 2,000,320.00 1,997,660.00 0.00 2,005,680.00 0.00 2,000,000.00 2,000,460.00 8l,833.21 2,000,000.00 2,000,000.00 13,410,000.00 Subtotâl 86,108,816.34 4,078,753,13 15,204,321.68 21,738,432,75 r98.55 -14,147.91 83,639,509.04 Data Updated: SET_ME8: 08/2512016 09:33 Total 86,108,816.34 4,078,753.13 16,204,321.68 21,738,432.75 198.55 -14,147.91 83,639,509,04 Portfolio OTAY NL! AP GD (PRF_GO) 7.1.1 Report V€r. 7.3.5 Run Oato: 08125/2016 - 09:33 Month End Activity Report Sorted By lssuer July 1, 2016 - July 31 ,2016 Par Value Par Value custP lnvestment # Pêrcent lssuer ofPortfolio Transaction Date Purchases or Deposits Redemptions or Wthdrawals Beginn¡ng Balance Current Rate Ending Balance lssuer: STATE OF CALIFORNIA Union Bank UNION MONEY UNION OPERATING PAYROLL RESERVE-10 COPS RESERVE-10 BABS UBNA-FLEX ACCT 9002 9004 9005 9010 90l l 9014 STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA 0.010 0.400 9,186,1 12.58 1,485,316.56 27,861.29 0.34 1.13 50,891.84 7,220,311.55 1,8 t0,012.13 0.00 0.00 0.00 8,109.07 0.010 0.010 Subtotal and Balance 1,336,379,56 10,750,183.74 9,038,432.75 3,048,r30.55 Local Agency ¡nvestment Fund (LAIF) LAIF 0.588 4,510,138.56 5,500,000.009OO1 STATE OF CALIFORNIA Subtotal and Balance lssuerSubtotal 10.032% 6,330,235,92 7,666,61s.48 4,510,138.56 5,500,000.00 5,340,374.48 15,260,322.30 14,538,432.75 8,388,505.03 lssuer: California Bank & Trust CeÉ¡ficates of Deposit - Bank Subtotal and Balance lssuer Subtotal 81,833.21 0.098%81,833.21 8l,833.21 0.00 0.00 81,833.21 lssuer: Fannie Mae Federal Agency lssues- Callable Subtotal and Balancê lssuer Subtotal 4,000,000.00 4.784%4,000,000.00 4,000,000.00 0.00 0.00 4,000,000.00 lssuer: Federal Farm Credit Bank Data Updated: SET_ME8: 08/2512016 09:33 Portfolio OTAY NL! AP DA (PRF_DA) 7.2.0 ReportVer.7.3.5 Run Date: 08/2512016 - 09:33 Month End Activity Report July l, 2016 -July 31, 2016 Page 2 Par Value Pâr Valuê CUSIP lnvestment # Percent lssuer of Portfol¡o Beginn¡ng Balance Curfent Rate Transact¡on Date Purchases or Deposits Redemplions or Withdrawals Ending Balance lssuer: Federal Farm Credit Bank Federa! Agency lssues- Callable 3133EELR9 2317 3133EEXC9 2323 3í33EGJR7 2361 3I33EGJU0 2362 Federal Fârm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank 0.625 0.690 1.020 0.820 0710112016 07106t2016 0710512016 0710512016 0.00 0.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 0.00 0.00 Subtotal and Balance 12,000,000.00 4,000,000.00 4,000,000.00 12,000,000.00 Federal Agency lssues - Coupon Subtotal and Balance lssuer Subtôtâl 2,000,000.00 2,000,000.00 16.743%14,000,000.00 4,000,000,00 4,000,000.00 14,000,000.00 lssuer: Federal Home Loan Bank Federal Agency lssues- Callable 313045680 31 30A72G9 2325 Federal Home Loan Bank 2339 Federal Home Loan Bank Subtotal and Balance lssuerSubtotal 11.959% 1.120 1.500 0710812016 0712912016 0.00 0.00 I,200,000.00 2,000,000.00 13,200,000.00 13,200,000.00 0.00 3,200,000.00 10,000,000.00 0.00 3,200,000,00 10,000,000.00 lssuer: Federal Home Loan Mortgage Federal Agency lssues. Callable Subtotal and Balance lssuer Subtotel 26,000,000.00 26,000,000.00 31.095%26,000,000.00 0.00 0.00 26,000,000.00 lssuer: Federal National Mortage Assoc Federal Agency lssues- Gallable Subtotal and Balance 5,735,000.00 5,73s,000.00 Federal Agency lssues - Coupon Subtotal and Balance Data Updated: SET_ME8: 08/2512016 09:33 2,000,000.00 2,000,000.00 Portfolio OTAY NL! AP DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Run Date: 08/2512016 - 09:33 Month End Activity Report July '1,2016 - July 31, 2016 Page 3 Par Vâlue Par Valuê CUSIP lnvestment # Percent lssuer of Portfolio Beginning Belance Current Ratê Transact¡on Date Purchases or Depos¡ts Redemptions or VV¡thdrawals Ending Balance lssuerSubtotal 9.251o/"7,735,000.00 0.00 0.00 7,735,000.00 lssuer: San Diego County San Diego County Pool SD COUNTY POOL 9OO7 0.880 22,752.51 0.00San D¡ego County Subtotal and Balance lssuer Subtotal 16.038% 13,387,715.90 22,752.51 0.00 13,410,468.41 13,387,7{5.90 22,752.51 0.00 13,410,468.41 Total 100.000%86,071,164.59 19,283,074.81 21,738,432,75 83,615,806.65 Data Updated: SET_ME8: 08/251201 6 09:33 Portfolio OTAY NL! AP DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Run Date: 08/2512016 - 09:33 Month End Duration Report Sorted by lnvestment Type - lnvestment Type Through 0713112016 lnvesûnent Glass Book Value Market Value Current Rate Current Y¡eld Par YTM Maturity/ Modif¡ed Call Datê DurationSecurity lD lnvestment # Fund lssuer Value 360 3134GsA47 3136G23G0 3I33EEYE4 3136G2R665 3135G0G64 313046U28 31 34G8KL2 3136G22W0 3136G22W0 3134G8Qrt4 3134G8NM7 313047H73 3134G94W/ 3134G8XA2 3134G8WW5 3134G9AF4 3134GAZM4 3130A7WK7 3134G9G87 3133EGBG9 313048547 3't34G9SL2 3133EGCZ6 3130A8KR3 3133EGGS8 3134G92R1 3133EGJR7 3133EGJUO 3134G9D38 2301 2304 2320 2334 2336 2338 2340 2342 2343 2344 2345 2346 2347 2348 2349 2350 2351 2352 2353 2354 2355 2356 2357 2358 2359 2360 2361 2362 2363 99 99 oo ôô oo 99 99 oo 99 oo 99 99 oo 99 oo 99 99 99 oô oo 99 99 99 99 99 99 99 99 Federal Home Loan Mortgage Federal National Mortage Assoc Federal Farm Credit Bank Fann¡e Mae Fann¡e Mae Federal Home Loan Bank Federal Home Loan Mortgaqe Federal National Mortage Assoc Federal National Mortage Assoc Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Bank Federal Home Loan Mortgage Federal Home Loan Morlgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Bank Federal Homè Loan Mortgage Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loân Mortgage Federal Farm Credit Bank Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Mortgage Federal Farm Credit Bank Federal Farm Credit Bank Federal Home Loan Morlgage 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,005,060.00 2,000,300.00 2,000,000.00 2,000,460.00 1,997,700.00 2,005,040.00 2,000,680.00 1,030,226.60 2,705,595.10 2,000,520.00 2,000,720.00 2,002,700.00 2,001,940.00 2,001,440.00 2,000,360.00 2,000,280.00 2,001,380.00 2,005,440.00 2,000,000.00 2,000,460.00 2,000,160.00 2,004,900.00 2,005,680.00 1,999,760.00 2,000,320.00 1 ,999,1 80.00 1,996,660.00 1,997,660.00 1,998,720.00 1213012016 0.413 0811512017 1.026 0111612018 1.443 11t't9t2018 2.257 1012912018 2.204 1212812018 2.359 02t26t2019 2.505 02t2612019 2.513 0212612019 2.513 0312912019 2.594 09t29t2017 1.149 03l29l2UA 1.638 04t26t20't9 2.678 0712712018 1.960 1012712017 1.227 04126t2018 1.711 0412912019 2.679 o5124t2019 2.751 '1110212018 2.210 0812312018 2.031 0212612018 1.552 061281?019 2.843 06/06/2019 2.782 0710612018 1.909 0612712019 2.A44 12t28t2018 2.371 0710512019 2.874 0710512018 1.907 12t2912017 1.400 Portfolio OTAY NL! AP DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Fair Fair Fair Amort Amort Amorl Amorl Amort Fair Fair Amort Fair Fair Fair Fair Fair Fair Fair Fair Fair Fa¡r Amort Fair Fair Fair Fair Amort Fa¡r Fâir 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 .6500000 1.050000 1.000000 1.1 50000 1.1 00000 1.375000 1.300000 1.1 25000 1.1 25000 't.350000 .8500000 1.000000 '1.150000 1.000000 .8500000 1.050000 1.300000 1.250000 1.200000 1.000000 .9000000 1.300000 1.300000 .8200000 1.200000 1.000000 1.020000 .8200000 .7000000 0.641 1.036 0.986 1.134 1.085 1.356 1.282 1.1 10 1.110 1.332 0.838 0.986 1.134 0.986 0.838 1.036 '1.282 1.233 1.184 0.986 0.888 1.282 1.282 0.809 1.184 0.986 1.006 0.809 0.690 0.144 1.036 1.000 1.140 1.152 1.269 't.287 1.116 1.116 1.340 0.819 0.918 '1.114 0.963 0.836 1.042 1.275 1.1s2 1.200 0.989 0.895 1.214 1.198 0.826 1.194 1.017 1.078 0.881 0.746 Data Updated: SET_ME8: 08/2512016 09:33 Run Date: 08125/2016 - 09:33 Page I Month End Duration Report Sorted by lnvestment Type - lnvestment Type Through 0713112016 lnvestment Class Book Value Pa¡Market Value Cufrent Rate YTM Current360 Y¡eld Maturity, Mod¡fled Call Date Durat¡onSecurity lD lnvestment# Fund lssuer Value 3135G0Y87 2286 3133EEC73 2329 2050003183-7 2341 LA|F 9001 LAIF BABS 2010 9012 SD COUNTY 9OO7 99 99 99 99 99 99 Federal Nal¡onal Mortage Assoc Federal Farm Credit Bank Californ¡a Bank & Trust STATE OF CALIFORNIA STATE OF CALIFORNIA San Diego County Fair Amort Amorl Fair Fair Fair 2,000,080.92 1,998,438.14 81,833.21 5,340,374.48 0.00 13,410,468.41 2,000,000.00 2,000,000.00 81,833.21 5,340,374.48 0.00 13,410,468.41 2,000,460.00 1,999,640.00 8l,833.21 5,343,692.04 0.00 13,410,000.00 .6250000 .5500000 .0300000 .5880000 .2670000 .8800000 08t2612016 0312712017 0112212018 0.068 0.652 1.4ß t 0.000 0.000 0.000 0.558 0.661 0.030 0.580 0.263 0.868 0.579 0.578 0.030 0.588 o.267 0.880 Report Total t = Duration can not be calculated on these investments due to incomplete Markel price dala. Data Updated: SET_ME8: 08/25l20f6 09:33 80,566,195.16 80,567,676.10 80,598,966.95 0.954 1.s09 t Portfolio OTAY NL! AP DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Run Date: 08125/2016 - 09:33 Page 2 Month End lnterest Earnings Sorted by Fund - Fund July 1, 2016 - July 31 ,2016 Yield on Beginning Book Value Adjusted lnterest Earn¡ngs CUSIP lnvestment# Fund Security Type Ending Par Value Begínning Book Value Ending Book Value MaturiÇ CurrentAnnualizedDate Rate Y¡eld lnterest Earned Amortizatíon/ Adjusted lnterestAccret¡on Earn¡ngs Fund: Treasury Fund 3134G8K12 2340 3134G8XA2 2348 3134G9AW 2347 3134G8NM7 2345 3134G8044 2344 3134G8\ ^rus 2349 3134G5447 2301 3134G94F4 2350 3134G92R1 2360 3134G9D38 2363 3134G82M4 2351 3í34G9SL2 2356 3134G9G87 2353 3136G23G0 2304 3136G22W0 2342 3136G22W0 2343 3135G0YE7 2286 313048KR3 2358 313048547 2355 3130A7H73 2346 3130A7WK7 2352 313045680 2325 3130A72G9 2339 3130A6U28 2338 RESERVE-IOBABS 9OI1 RESERVE.IOCOPS 9OIO UNION MONEY 9OO2 UNION OPERATING 9OO4 LAIF 9001 99 99 99 99 99 99 99 oo 99 99 oo 99 99 99 99 99 oo 99 ôô 99 99 99 99 99 99 99 oo ôô 99 MC1 MCr MC1 MCl MC1 MCl MC1 MCl MC1 MCl MC1 MC1 MCl MCl MC1 MCl FAC MC1 MC1 MC1 MCl MC1 MCr MC1 PAl PA1 PAl PA1 LA1 1.300 1.000 1.150 0.850 1.350 0.850 0.650 1.050 1.000 0.700 1.300 1.300 1.200 1.050 1.125 '1.125 0.625 0.820 0.900 1.000 1.250 1.120 1.500 1.375 0.0't 0 0.010 0.010 0.400 0.588 1.276 0.981 1.128 0.834 't.325 0.834 0.638 1.030 0.981 0.687 1.276 1.276 1.177 1.030 1.104 1.104 0.556 0.805 0.883 0.981 1.226 1.136 1.521 1.349 0.010 0.010 0.1 54 0.851 0.606 2,166.66 1,666.66 1,916.66 1,416.67 2,250.OO 1,416.67 1,083.33 1,750.00 1,666.66 1,166.66 2,166.66 2,166.66 2,000.00 1,750.00 965.62 2,535.93 1,041.67 1,366.67 1,500.00 1,666.67 2,083.34 261.33 2,333.33 2,291.66 0.05 0.02 7.72 914.65 s,258.96 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -97.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,166.66 1,666.66 1,916.66 1,416.67 2,250.00 1,416.67 1,083.33 1,750.00 1,666.66 1,166.66 2,166.66 2,1 66.66 2,000.00 1,750.00 965.62 2,535.93 944.56 1,366.67 1,500.00 1,666.67 2,083.34 26'1.33 2,333.33 2,291.66 0.05 0.02 7.72 914.65 3,258.96 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 0.00 0.00 2,000,000.00 5,945.58 2,263.76 2,025,006.69 941,320.46 5,340,374.48 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 I,030,000.00 2,705,000.00 2,000,178.03 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,200,000.00 2,000,000.00 2,000,000.00 5,944.45 2,263.42 59,205.66 1,266,016.03 6,330,235.92 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,080.92 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 0.00 0.00 2,000,000.00 5,945.58 2,263.76 2,025,006.69 941,320.46 5,340,374.48 0212612019 0712712018 0412612019 09t29t2017 0312912019 1012712017 1213012016 04t26t2018 1212812018 1212912017 04t29t2019 0612812019 11tO21201A 0811512017 0212612019 0212612019 08126t2016 0710612018 0212612018 0312912018 0512412019 0510412018 01129t2019 1212At2018 Data Updated: SET_ME8: 08/2512016 09:33 Portfolio OTAY NL! AP lE (PRF_IE) 7.2.0 ReportVer. 7.3.5 Run Date: 08/2512016 - 09:33 Month End lnterest Earnings July l, 2016 - July 31, 2016 Page 2 Adjusted lnterest Earnings CUSIP lnvestment# Fund Secur¡ty Type End¡ng Par Value Beginning Book Value End¡ng MaturityBookvalue Date CurrentAnnualizedRatê Yield Amort¡zat¡on/ AdJusted lnterestAccretion Earn¡ngs lnterest Eafned Fund: Treasury Fund 3133EEC73 3133EGJR7 3133ËGGS8 3133EGJUO 3l33EEXC9 3l33EGCZ6 3133EEYE4 3133EGBG9 20500031 83-7 31 36G2R665 3135G0G64 SD COUNTY POOL 2329 2361 2359 2362 2323 2357 2320 2354 234'l 2334 2336 9007 FAC MC1 MCl MCl MC1 MCl MC1 MC1 BCD MC1 MCl LA3 0.550 1.020 1.200 0.820 0.690 1.300 1.000 1.000 0.030 1.150 1.100 0.880 0.657 0.996 1.177 0.801 0.700 1.276 0.981 0.981 0.030 1.141 1.079 0.881 198.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 99 oô 99 oo 99 ôô 99 99 99 oo 99 99 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 0.00 2,000,000.00 2,000,000.00 2,000,000.00 81,833.21 2,000,000.00 2,000,000.00 13,410,468.41 1,998,239.59 0.00 2,000,000.00 0.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 81,833.2 1 2,000.000.00 2,000,000.00 13,387,715.90 1,998,438. 14 03t27 t2017 2,000.000.00 07 t05t2019 2,000,000.00 06t27 t20't9 2,000,000.00 07 t05t2018 0.00 04t06t2017 2,000,000.00 06106t2019 2,000,000.00 01 t16t2018 2,000,000.00 08t23t2018 81,833.21 01t22t2018 2,000,000.00 1 1 t19t2018 2,000,000.00 10t29t2018 13,410,468.41 916.66 1,473.33 2,000.00 1,184.44 191.67 2,166.66 1,666.66 1,666.67 2.11 1,937.s0 1,833.33 10,o12.52 1,115.21 1,473.33 2,000.00 1,184.44 191.67 2,f66.66 1,666.66 1,666.67 2.11 1,937.50 1,833.33 10,012.52 Subtotal 83,542,212.59 84,066,632.21 83,540,731.65 0.972 69,862,46 101.44 69,963.90 Data Updated: SET_ME8: 08/25l20i6 09:33 Total 83,542,212.59 84,066,632.21 83,540,731.65 0,972 69,862.46 101,44 69,963.90 Portfolio OTAY NL! AP rE (PRF_tE) 7.2.0 Report Ver. 7.3.5 Run Dale: 08125/2016 - 09:33 Check Total 10,695.52 8,820.73 220,553.90 4,621.00 18,470.00 1,000.00 85.59 85.59 2046566 08/17/16 17456 ANNA VALDEZ 5329081216 08/12/16 CUSTOMER REFUND 1,000.00 SOFTWARE LICENSE (8/1/16-7/31/17)8,201.00 8,201.00 2046524 08/10/16 17441 ANN FELICIANO Ref002464682 08/08/16 UB Refund Cst #0000069303 CM201650 07/05/16 MGMT/INSP (6/1/16-6/30/16)2,850.00 2046480 08/03/16 11590 AMERICAN DIGITAL CARTOGRAPHY 21316 07/25/16 CM201649 07/05/16 MGMT/INSP (6/1/16-6/30/16)3,300.00 CM201651 07/05/16 MGMT/INSP (6/1/16-6/30/16)3,150.00 35.75 2046479 08/03/16 14462 ALYSON CONSULTING CM201652 07/05/16 MGMT/INSP (6/1/16-6/30/16)9,170.00 83.60 83.60 2046605 08/24/16 17480 ALLEXIS GAWORECKI Ref002464832 08/22/16 UB Refund Cst #0000217650 35.75 UTILITY LOCATING SERVICES (6/28/16-7/15/16)8,268.00 8,268.00 2046523 08/10/16 17443 ALEJANDRO YBARRA Ref002464684 08/08/16 UB Refund Cst #0000123015 07/31/16 BREATHING AIR BOTTLES 52.02 52.02 2046565 08/17/16 15024 AIRX UTILITY SURVEYORS INC 607312016 07/28/16 3,096.00 131447865 07/21/16 AQUA AMMONIA 1,525.00 2046564 08/17/16 13753 AIRGAS USA LLC 9938337518 UB Refund Cst #0000225744 100.00 100.00 2046563 08/17/16 07732 AIRGAS SPECIALTY PRODUCTS INC 131447866 07/21/16 AQUA AMMONIA 607312016 07/30/16 980-1 RESERVOIR (ENDING 7/31/16)51,371.25 2046439 07/27/16 17418 AGUSTIN GALEANA Ref002463573 07/25/16 13.75 13.75 2046562 08/17/16 13901 ADVANCED INDUSTRIAL SVCS INC 807312016 07/30/16 711-1 & 2 RESERVOIR (ENDING 7/31/16)169,182.65 SHAREPOINT SERVICES (7/6/16-7/27/16)1,200.00 1,200.00 2046522 08/10/16 17447 ABRIL GRUBER Ref002464688 08/08/16 UB Refund Cst #0000204359 990108 07/14/16 SODIUM HYPOCHLORITE 115.25 2046561 08/17/16 08488 ABLEFORCE INC 6972 08/08/16 989313 07/05/16 SODIUM HYPOCHLORITE 576.27 990107 07/14/16 SODIUM HYPOCHLORITE 537.85 989546 07/08/16 SODIUM HYPOCHLORITE 1,440.67 989547 07/08/16 SODIUM HYPOCHLORITE 816.38 SODIUM HYPOCHLORITE 2,825.63 990036 07/14/16 SODIUM HYPOCHLORITE 2,508.68 991243 07/28/16 SODIUM HYPOCHLORITE 624.29 2046478 08/03/16 01910 ABCANA INDUSTRIES 989464 07/07/16 991238 07/28/16 SODIUM HYPOCHLORITE 1,026.72 990648 07/21/16 SODIUM HYPOCHLORITE 768.36 991084 07/27/16 SODIUM HYPOCHLORITE 1,161.18 990647 07/21/16 SODIUM HYPOCHLORITE 1,032.48 990510 07/19/16 SODIUM HYPOCHLORITE 2,401.11 990646 07/21/16 SODIUM HYPOCHLORITE 1,215.92 Amount 2046560 08/17/16 01910 ABCANA INDUSTRIES 991237 07/28/16 SODIUM HYPOCHLORITE 2,465.46 CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 70,692.50 908.00 UB Refund Cst #0000000857 74.89 74.89 85817 07/31/16 BACTERIOLOGICAL TESTING (7/12/16)378.00 2046531 08/10/16 17437 CLIFFORD B SMITH Ref002464678 08/08/16 129.00 2046608 08/24/16 04119 CLARKSON LAB & SUPPLY INC 85816 07/31/16 BACTERIOLOGICAL TESTING (7/6/16)530.00 999.99 999.99 2046607 08/24/16 17471 CLARENCE PURVIS Ref002464823 08/22/16 UB Refund Cst #0000088850 129.00 AD&D & SUPP LIFE INS (AUG 2016)4,210.84 4,210.84 2046571 08/17/16 00234 CITY TREASURER 1000174969 08/05/16 LABORATORY ANALYSIS (JULY 2016) 2046606 08/24/16 15256 CIGNA GROUP INSURANCE / LINA 9267081016 08/24/16 175.00 2046442 07/27/16 15256 CIGNA GROUP INSURANCE / LINA 9267071016 07/10/16 AD&D & SUPP LIFE INS (JULY 2016)4,612.24 4,612.24 1,787.09 1,787.09 2046530 08/10/16 01719 CHULA VISTA CHAMBER OF 15658 08/05/16 MEMBERSHIP RENEWAL 175.00 UB Refund Cst #0000221245 11.10 11.10 2046529 08/10/16 17453 CHRISTIANSEN AMUSEMENTS INC Ref002464694 08/08/16 UB Refund Cst #0000229853 2046441 07/27/16 17409 CHELSY MARTIN Ref002463564 07/25/16 19,289.12 2046528 08/10/16 12130 CHAVEZ, KIM 08082016KC 08/08/16 TUITION REIMBURSEMENT 95.00 95.00 23,049.31 23,049.31 2046488 08/03/16 16746 CH2M HILL ENGINEERS INC 381071544 07/08/16 2015 UWMP UPDATE (3/26/16-6/24/16)19,289.12 COLOCATION SERVICES 2,098.25 2,098.25 2046527 08/10/16 10571 CCL CONTRACTING 00016521 08/04/16 RETAINAGE RELEASE 150110 07/08/16 2015 IWRP UPDATE (ENDING 6/30/16)19,903.00 2046487 08/03/16 17022 CASTLE ACCESS INC 0223091809 08/01/16 346.75 2046486 08/03/16 15177 CAROLLO ENGINEERS INC 150262 07/11/16 DESIGN FOR 870-2 PS (6/1/16-6/30/16)50,789.50 45.00 45.00 2046526 08/10/16 02758 CARMEL BUSINESS SYSTEMS INC 8040 06/20/16 REPROGRAPHICS SERVICES 346.75 LEGISLATIVE ADVOCACY (THRU 7/31/16)4,100.00 4,100.00 2046525 08/10/16 04071 CAPITOL WEBWORKS LLC 27983 07/31/16 OTHER AGENCY FEES 2046570 08/17/16 08156 BROWNSTEIN HYATT FARBER 647790 08/12/16 4,345.00 2046440 07/27/16 17412 BRIAN AXTHELM Ref002463567 07/25/16 UB Refund Cst #0000221667 7.80 7.80 2,164.29 2,164.29 2046569 08/17/16 15570 BEYOND IDEAS LLC OWD0717 08/09/16 WEB CONSULTING 4,345.00 DRUM PUMP 2,126.89 2,126.89 2046568 08/17/16 00145 BARRETT ENGINEERED PUMPS 100565 07/25/16 DRUM PUMP 2046485 08/03/16 00145 BARRETT ENGINEERED PUMPS 100340 07/08/16 2,825.00 2046567 08/17/16 12468 ATLAS COPCO COMPRESSORS LLC 712652 07/25/16 HSI BLOWER SERVICE 1,033.14 1,033.14 8,521.40 8,521.40 2046484 08/03/16 12810 ATKINS NORTH AMERICA INC 1841064 07/11/16 DESIGN SERVICES (ENDING 6/30/16)2,825.00 LEGAL SERVICES (JUNE 2016)20,836.91 20,836.91 2046483 08/03/16 12810 ATKINS NORTH AMERICA INC 18409791841010 07/08/16 2015 WFMP UPDATE (5/16/16-6/30/16) 2046482 08/03/16 17264 ARTIANO SHINOFF 214425 07/26/16 1,000.00 2046481 08/03/16 13171 ARCADIS US INC 0793172 07/07/16 AS-NEEDED DESIGN (5/23/16-6/30/16)34,183.18 34,183.18 2046566 08/17/16 17456 ANNA VALDEZ 5329081216 08/12/16 CUSTOMER REFUND 1,000.00 Page 2 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 2,176.00 1,400.00 975.00 1,295.00 EQUIPMENT MAINTENANCE (AUG 2016)135.00 135.00204657908/17/16 02591 FITNESS TECH 10135 08/01/16 763.32 2046449 07/27/16 16469 FIRST CHOICE SERVICES 063911 07/18/16 COFFEE SERVICES 744.41 744.41 99.00 99.00 2046610 08/24/16 16469 FIRST CHOICE SERVICES 065505 08/16/16 COFFEE SERVICES 763.32 INVENTORY 1,294.92 1,294.92 2046578 08/17/16 12187 FIRST AMERICAN DATA TREE LLC 9003400716 07/31/16 ONLINE DOCUMENTS (MONTHLY) 2046577 08/17/16 03546 FERGUSON WATERWORKS # 1083 0562240 07/26/16 L0277862 08/18/16 OUTSIDE LAB SERVICES (8/3/16)60.00 L0277734 08/17/16 OUTSIDE LAB SERVICES (8/9/16)15.00 705.00 L0274788 07/28/16 OUTSIDE LAB SERVICES (7/5/16)265.00 L0277864 08/18/16 OUTSIDE LAB SERVICES (8/1/16-8/2/16)250.00 SAFETY BOOTS REIMBURSEMENT 136.07 136.07 2046609 08/24/16 14320 EUROFINS EATON ANALYTICAL INC L0274256 07/26/16 OUTSIDE LAB SERVICES (7/11/16) 2046576 08/17/16 02939 ESCARCEGA, LUIS 072916 08/15/16 LAB ANALYSIS (7/14/16-7/21/16)490.00 6070952 07/25/16 LAB ANALYSIS (7/8/16-7/18/16)485.00 6070425 07/11/16 LAB ANALYSIS (6/29/16-6/30/16)90.00 2046575 08/17/16 03227 ENVIROMATRIX ANALYTICAL INC 6080433 08/01/16 LAB ANALYSIS (6/17/16-6/28/16)800.00 6070693 07/18/16 LAB ANALYSIS (7/1/16-7/7/16)510.00 2046491 08/03/16 03227 ENVIROMATRIX ANALYTICAL INC 6070384 07/11/16 18,447.00 2046448 07/27/16 17402 EMMA SEWELL Ref002463557 07/25/16 UB Refund Cst #0000196561 10.14 10.14 50.44 50.44 2046574 08/17/16 17356 E-MEDIA PLUS INC 0056899IN 07/27/16 SMARTNET RENEWAL (7/1/16-6/30/17)18,447.00 UB Refund Cst #0000222924 25.58 25.58 2046447 07/27/16 17413 EIAD MATARIYEN Ref002463568 07/25/16 UB Refund Cst #0000221765 2046446 07/27/16 17416 DOMINIC FERRO Ref002463571 07/25/16 150.00 2046445 07/27/16 17398 DARRELL BILLINGS Ref002463553 07/25/16 UB Refund Cst #0000059995 40.32 40.32 4,553.64 4,553.64 2046573 08/17/16 00693 CSDA, SAN DIEGO CHAPTER 08182016 08/11/16 BUSINESS MEETING 150.00 EASEMENT REVIEW 2,000.00 2,000.00 2046490 08/03/16 02756 COX COMMUNICATIONS INC 6702072416 07/24/16 TELECOMM SVCS / METRO-E (7/24/16-8/23/16) 2046444 07/27/16 00615 COUNTY OF SAN DIEGO 072516 07/25/16 UPFP PERMIT RENEWAL (8/31/16-8/31/17)1,689.00 2137061716 06/17/16 UPFP PERMIT RENEWAL (8/31/16-8/31/17)487.00 2046532 08/10/16 00184 COUNTY OF SAN DIEGO 3584061716 06/17/16 4,993.00 2046489 08/03/16 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD061607/12/16 EXCAVATION PERMITS (JUNE 2016)4,075.00 4,075.00 1,333.00 1,333.00 2046572 08/17/16 03288 COMPUTER PROTECTION 202571PMA 07/20/16 PREVENTATIVE MAINTENANCE 4,993.00 UB Refund Cst #0000000857 74.89 74.89 2046443 07/27/16 15616 COGENT COMMUNICATIONS INC 0002070116 07/01/16 INTERNET CIRCUITS (JULY 2016) 2046531 08/10/16 17437 CLIFFORD B SMITH Ref002464678 08/08/16 Page 3 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 239.76 91.07 2,715.00 4,957.90 19,540.84 1,837.80 1,837.80 UB Refund Cst #0000206624 150.00 150.00 2046583 08/17/16 10563 JCI JONES CHEMICALS INC 695035 07/19/16 CHEMICALS 2046454 07/27/16 17405 JANETTE NOVOA Ref002463560 07/25/16 116.46 2046535 08/10/16 17440 JAMES FLYNN Ref002464681 08/08/16 UB Refund Cst #0000043555 102.60 102.60 316.39 316.39 2046534 08/10/16 17445 JAIME ESCOBEDO Ref002464686 08/08/16 UB Refund Cst #0000187738 116.46 SHIPPING CHARGES 8.17 8.17 2046616 08/24/16 08969 INFOSEND INC 108145 07/11/16 BILL PRINTING SERVICES (6/1/16-6/28/16) 109226 07/29/16 BILL PRINTING SERVICES (JULY 2016)2,100.74 2046496 08/03/16 08969 INFOSEND INC 108146 07/11/16 BILL PRINTING SERVICES (JULY 2016)11,539.13 108872 07/29/16 BILL PRINTING SERVICES (JULY 2016)5,900.97 2046582 08/17/16 08969 INFOSEND INC 108873 07/29/16 07/19/16 LABORATORY SUPPLIES 4,303.96 3005110185 07/19/16 LABORATORY SUPPLIES 653.94 1,615.00 0115772 07/06/16 ENVIRONMENTAL SERVICES (5/28/16-6/30/16)1,100.00 2046581 08/17/16 01649 IDEXX DISTRIBUTION INC 3005110183 MAINTENANCE AGREEMENT (7/1/16-6/30/17)2,538.96 2,538.96 2046495 08/03/16 15622 ICF JONES & STOKES INC 0115768 07/06/16 ENVIRONMENTAL SERVICES (5/28/16-6/30/16) 08/22/16 UB Refund Cst #0000004731 86.66 86.66 2046494 08/03/16 16769 HEWLETT PACKARD ENTERPRISE CO 60081879 07/05/16 47.52 3300081016 08/10/16 WATER USAGE (6/7/16-8/4/16)43.55 2046615 08/24/16 17467 HERNANY DELEON Ref002464819 UB Refund Cst #0000052180 10.37 10.37 2046614 08/24/16 00062 HELIX WATER DISTRICT 4283081016 08/10/16 WATER USAGE (6/8/16-8/3/16) 2046453 07/27/16 17397 HECTOR TORRES Ref002463552 07/25/16 329.88 2046452 07/27/16 09715 GUTIERREZ, JUAN 071516 07/21/16 SAFETY BOOTS 150.00 150.00 17.58 17.58 2046613 08/24/16 17473 GUSTAVO V NUNEZ Ref002464825 08/22/16 UB Refund Cst #0000141597 329.88 LANDSCAPING SERVICES (JUNE 2016)8,909.50 8,909.50 2046612 08/24/16 17481 GREGORY HOUSKA Ref002464833 08/22/16 UB Refund Cst #0000225363 2046451 07/27/16 12907 GREENRIDGE LANDSCAPE INC 14430 06/30/16 2,799.36 2046493 08/03/16 15852 GFS CHEMICALS INC 550252 07/18/16 LABORATORY SUPPLIES 978.45 978.45 100.00 100.00 2046492 08/03/16 03094 FULLCOURT PRESS 30365 06/10/16 OUTSIDE SERVICES 2,799.36 BI-WEEKLY PAYROLL DEDUCTION 100.00 100.00 2046611 08/24/16 01612 FRANCHISE TAX BOARD Ben2464873 08/25/16 BI-WEEKLY PAYROLL DEDUCTION 08/11/16 BI-WEEKLY PAYROLL DEDUCTION 100.00 100.00 2046450 07/27/16 01612 FRANCHISE TAX BOARD Ben2463605 07/28/16 168.48 x823239 07/29/16 VEHICLE WASHING (7/29/16)71.28 2046533 08/10/16 01612 FRANCHISE TAX BOARD Ben2464737 2046580 08/17/16 11962 FLEETWASH INC x823238 07/22/16 VEHICLE WASHING (7/22/16) Page 4 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 397.78 397.78 UB Refund Cst #0000224766 2,046.00 2,046.00 2046625 08/24/16 17479 MYRNA RIVERA Ref002464831 08/22/16 UB Refund Cst #0000208152 2046461 07/27/16 17417 MONTGOMERY CONSTRUCTIONS SVCS Ref002463572 07/25/16 15,803.21 2046584 08/17/16 16956 MONTGOMERY CONST SVCS INC 606302016 07/05/16 OPS YARD IMPROVEMENTS (ENDING 6/30/16)15,803.21 15,803.21 62.50 62.50 2046543 08/10/16 16956 MONTGOMERY CONST SVCS INC 606302016 07/05/16 OPS YARD IMPROVEMENTS (ENDING 6/30/16)15,803.21 ENGINEERING SERVICES (11/2/15-6/30/16)900.00 900.00 2046542 08/10/16 16613 MISSION RESOURCE CONSERVATION 367 08/01/16 HOME WATER USE EVALUATION 2046499 08/03/16 09581 MICHAEL R WELCH PHD PE 7145 07/07/16 9,335.15 2046541 08/10/16 17444 MELISSA VELZIS Ref002464685 08/08/16 UB Refund Cst #0000157435 67.70 67.70 69.99 69.99 2046540 08/10/16 17295 MCMILLIN LOMAS VERDES MASTER 080416 08/04/16 CLAIM SETTLEMENT 9,335.15 UB Refund Cst #0000204378 7.11 7.11 2046460 07/27/16 17404 MAYRA PINEDA Ref002463559 07/25/16 UB Refund Cst #0000199073 2046624 08/24/16 17478 MARIO PEGUERO Ref002464830 08/22/16 11.62 2046623 08/24/16 17475 MARIE FERNANDEZ Ref002464827 08/22/16 UB Refund Cst #0000193853 30.52 30.52 22.60 22.60 2046622 08/24/16 17482 MARIA QUINTERO Ref002464834 08/22/16 UB Refund Cst #0000225886 11.62 UB Refund Cst #0000087611 17.03 17.03 2046459 07/27/16 17408 MARGARITA SANTAMARIA Ref002463563 07/25/16 UB Refund Cst #0000217080 2046621 08/24/16 17470 LUCILE PERSON Ref002464822 08/22/16 708.00 2046620 08/24/16 15615 LAYFIELD USA CORPORATION E06682 07/31/16 TESTING SERVICES 4,754.90 4,754.90 135.52 135.52 2046498 08/03/16 02063 LA MESA - SPRING VALLEY 3986 07/05/16 GARDEN TOUR (06/03/16-06/10/16)708.00 UB Refund Cst #0000194760 66.75 66.75 2046458 07/27/16 17406 KRISTEN THOMPSON Ref002463561 07/25/16 UB Refund Cst #0000208831 2046619 08/24/16 17477 KITTY HAWK REALTY Ref002464829 08/22/16 123.85 2046457 07/27/16 17419 KIRK PAVING INC Ref002463574 07/25/16 UB Refund Cst #0000229358 1,707.19 1,707.19 18.64 18.64 2046456 07/27/16 17414 KATHERINE ROGERS Ref002463569 07/25/16 UB Refund Cst #0000222394 123.85 UB Refund Cst #0000031159 76.00 76.00 2046618 08/24/16 17474 JOSIE SANDNESS Ref002464826 08/22/16 UB Refund Cst #0000162685 2046617 08/24/16 17469 JOSEPH BONIN Ref002464821 08/22/16 1,588.98 2046539 08/10/16 17446 JORGE SANCEZ VALOIS Ref002464687 08/08/16 UB Refund Cst #0000188475 83.64 83.64 14.79 14.79 2046497 08/03/16 17420 JOJIE AQUINO 1225080216 08/02/16 CUSTOMER REFUND 1,588.98 UB Refund Cst #0000070749 56.19 56.19 2046538 08/10/16 17450 JOEL RABAGO Ref002464691 08/08/16 UB Refund Cst #0000222286 2046537 08/10/16 17442 JENNIFER WHITSITT Ref002464683 08/08/16 5.75 2046455 07/27/16 17399 JENNIFER HULL Ref002463554 07/25/16 UB Refund Cst #0000085470 154.97 154.97 2046536 08/10/16 17448 JENNIFER CLARK Ref002464689 08/08/16 UB Refund Cst #0000218081 5.75 Page 5 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 723.36 386.21 94.33 2046590 08/17/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2464729 08/11/16 BI-WEEKLY PERS CONTRIBUTION 194,718.71 194,718.71 29.35 29.35 2046504 08/03/16 03613 PSOMAS 119799 07/07/16 AS-NEEDED DESIGN (ENDING 6/30/16)94.33 UB Refund Cst #0000124503 14.91 14.91 2046466 07/27/16 17407 PROPERTY PREPARATION SERVICES Ref002463562 07/25/16 UB Refund Cst #0000214487 2046627 08/24/16 17472 PRISCILLA CARBALLO Ref002464824 08/22/16 954.69 2046503 08/03/16 07346 PRIME ELECTRICAL SERVICES INC 16191 07/12/16 RECONFIGURATION ELECTRICAL WORK 3,909.00 3,909.00 54.10 54.10 2046465 07/27/16 00137 PETTY CASH CUSTODIAN 072616 07/26/16 PETTY CASH 954.69 UB Refund Cst #0000030406 50.25 50.25 2046589 08/17/16 05497 PAYPAL INC 52914893 07/31/16 PHONE PAYMENT SVCS (JULY 2016) 2046546 08/10/16 17438 PAL SEGUI Ref002464679 08/08/16 7,971.81 2046545 08/10/16 17452 ORTIZ CORPORATION Ref002464693 08/08/16 UB Refund Cst #0000225971 1,853.49 1,853.49 64,737.32 64,737.32 2046588 08/17/16 15856 OLYMPUS AND ASSOCIATES INC 13 01/22/16 RESERVOIR COATING (ENDING 12/31/15)7,971.81 OFFICE SUPPLIES 707.56 707.56 2046587 08/17/16 15856 OLYMPUS AND ASSOCIATES INC 00015861 08/15/16 RETAINAGE RELEASE 2046464 07/27/16 00510 OFFICE DEPOT INC 848050048001 07/01/16 848856407001 07/05/16 OFFICE SUPPLIES 81.42 848856460001 07/05/16 OFFICE SUPPLIES 6.25 OFFICE SUPPLIES 152.47 849401860001 07/08/16 OFFICE SUPPLIES 146.07 2046502 08/03/16 00510 OFFICE DEPOT INC 851063344001 07/15/16 851171946001 07/15/16 OFFICE SUPPLIES 21.62 851782757001 07/20/16 OFFICE SUPPLIES 9.71 853605725001 07/28/16 OFFICE SUPPLIES 80.61 852559906001 07/22/16 OFFICE SUPPLIES 57.81 230.59 851782794001 07/19/16 OFFICE SUPPLIES 222.72 851171808001 07/15/16 OFFICE SUPPLIES 100.30 GEOTECHNICAL SERVICES (5/28/16-6/30/16)744.00 744.00 2046586 08/17/16 00510 OFFICE DEPOT INC 854123983001 08/01/16 OFFICE SUPPLIES 2046501 08/03/16 00761 NINYO & MOORE GEOTECHNICAL AND 199808 07/06/16 440.00 2046585 08/17/16 16505 NIGHTCLUBPOOL LLC 110 07/06/16 WEB CONSULTING 990.00 990.00 8,005.12 8,005.12 2046500 08/03/16 16505 NIGHTCLUBPOOL LLC 111 08/01/16 WEB CONSULTING 440.00 BI-WEEKLY DEFERRED COMP PLAN 8,005.12 8,005.12 2046626 08/24/16 16255 NATIONWIDE RETIREMENT Ben2464863 08/25/16 BI-WEEKLY DEFERRED COMP PLAN 2046544 08/10/16 16255 NATIONWIDE RETIREMENT Ben2464727 08/11/16 47.67 2046463 07/27/16 16255 NATIONWIDE RETIREMENT Ben2463595 07/28/16 BI-WEEKLY DEFERRED COMP PLAN 8,005.12 8,005.12 397.78 397.78 2046462 07/27/16 17415 NATALIE YOUNG Ref002463570 07/25/16 UB Refund Cst #0000222595 47.67 2046625 08/24/16 17479 MYRNA RIVERA Ref002464831 08/22/16 UB Refund Cst #0000208152 Page 6 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 115,050.99 81,438.64 UTILITY EXPENSES (MONTHLY)62,624.63204663008/24/16 00121 SAN DIEGO GAS & ELECTRIC 080216a 08/02/16 072516 07/25/16 UTILITY EXPENSES (MONTHLY)29,471.77 072716a 07/27/16 UTILITY EXPENSES (MONTHLY)202.56 35,002.58 35,002.58 2046550 08/10/16 00121 SAN DIEGO GAS & ELECTRIC 080316 08/03/16 UTILITY EXPENSES (MONTHLY)51,764.31 UTILITY EXPENSES (MONTHLY)11,922.03 11,922.03 2046596 08/17/16 00121 SAN DIEGO GAS & ELECTRIC 080216 08/02/16 UTILITY EXPENSES (MONTHLY) 072416 07/24/16 UTILITY EXPENSES (MONTHLY)306.13 2046470 07/27/16 00121 SAN DIEGO GAS & ELECTRIC 072016 07/20/16 071916 07/19/16 UTILITY EXPENSES (MONTHLY)31,458.30 072616 07/26/16 UTILITY EXPENSES (MONTHLY)29,086.99 60.00 60.00 2046510 08/03/16 00121 SAN DIEGO GAS & ELECTRIC 072716 07/27/16 UTILITY EXPENSES (MONTHLY)54,199.57 MWD SCWS - HEWS 50.00 50.00 2046629 08/24/16 00003 SAN DIEGO COUNTY WATER AUTH 0000001415 07/01/16 MWD SCWS - HEWS 2046595 08/17/16 00003 SAN DIEGO COUNTY WATER AUTH 0000001442 07/19/16 171.42 2046594 08/17/16 02586 SAN DIEGO COUNTY ASSESSOR 201600552 08/01/16 ASSESSOR DATA (7/6/16)125.00 125.00 135.54 135.54 2046549 08/10/16 17439 SAMANTHA MAJICA Ref002464680 08/08/16 UB Refund Cst #0000034597 171.42 UB Refund Cst #0000011406 14.33 14.33 2046469 07/27/16 17401 SALLY CONRAD Ref002463556 07/25/16 UB Refund Cst #0000187422 2046628 08/24/16 17468 SABRINA DIXON Ref002464820 08/22/16 300,067.20 2046509 08/03/16 09148 S & J SUPPLY COMPANY INC S100072981001 07/11/16 INVENTORY 5,985.36 5,985.36 134.88 134.88 2046508 08/03/16 12228 ROCKWELL ENGINEERING &15746 07/05/16 CP #17 REPLACEMENT PORTABLE PUMPS 300,067.20 UB Refund Cst #0000051738 64.50 64.50 2046507 08/03/16 16587 ROCHA, DAVID 073116 08/01/16 SAFETY BOOTS 2046468 07/27/16 17396 ROBERT HELM Ref002463551 07/25/16 16,361.42 2046593 08/17/16 00521 RICK POST WELD & WET TAPPING 11235 07/24/16 DEVELOPER WET TAPS (7/20/16-7/21/16)1,550.00 1,550.00 7.71 7.71 2046506 08/03/16 08972 RICK ENGINEERING COMPANY 0049592 07/06/16 CAMPO ROAD SUPPORT (6/1/16-6/30/16)16,361.42 CONSORTIUM TRAINING FEE (2016-2017)1,779.00 1,779.00 2046467 07/27/16 17400 RICARDO ZUNIGA DIAZ Ref002463555 07/25/16 UB Refund Cst #0000121557 2046592 08/17/16 01196 REGIONAL TRAINING CENTER 13092 07/21/16 7.73 2046591 08/17/16 00021 RCP BLOCK & BRICK INC 30886269 07/26/16 CONCRETE 1,265.75 1,265.75 1,125.00 1,125.00 2046548 08/10/16 17449 RAYMOND HANNA Ref002464690 08/08/16 UB Refund Cst #0000221687 7.73 BI-WEEKLY PERS CONTRIBUTION 198,099.78 198,099.78 2046547 08/10/16 17436 RALPH BAUM 080416 08/04/16 CLAIM SETTLEMENT 2046505 08/03/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2463597 07/28/16 2046590 08/17/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2464729 08/11/16 BI-WEEKLY PERS CONTRIBUTION 194,718.71 194,718.71 Page 7 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 97,648.71 12,341.30 73.00 30.12 7,885.00 CUBICLE RECONFIGURATION 11,396.88 993549 07/24/16 ADM FEES FOR ID 27 (7/1/16-6/30/17)635.00 2046515 08/03/16 16036 UNISOURCE SOLUTIONS INC 634926 07/11/16 993435 07/24/16 ADM FEES FOR 2013 BOND (7/1/16-6/30/17)2,013.00 993449 07/24/16 ADM FEES FOR COPS 2007 (7/1/16-6/30/17)1,907.00 555.00 555.00 2046554 08/10/16 13047 UNION BANK NA 993469 07/24/16 ADM FEES 2010 BOND (7/1/16-6/30/17)3,330.00 RSD SEWER REHAB PHASE 1 (ENDING 6/30/16)136,683.34 136,683.34 2046600 08/17/16 00427 UNDERGROUND SERVICE ALERT OF 720160497 08/01/16 UNDERGROUND ALERTS (MONTHLY) 060116063016b 08/02/16 EXPENSE REIMBURSEMENT (JUNE 2016)15.00 2046514 08/03/16 17000 TRANSTAR PIPELINE INC 406302016 07/07/16 7,133.00 2046553 08/10/16 14177 THOMPSON, MITCHELL 070116073116 08/01/16 MILEAGE REIMBURSEMENT (JULY 2016)15.12 184.61 184.61 2046559 08/11/16 17455 THOMAS LA FLAM 0129081116 08/11/16 CUSTOMER REFUND 7,133.00 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61 2046634 08/24/16 15926 TEXAS CHILD SUPPORT UNIT Ben2464875 08/25/16 BI-WEEKLY PAYROLL DEDUCTION 2046474 07/27/16 15926 TEXAS CHILD SUPPORT UNIT Ben2463609 07/28/16 93.74 2046552 08/10/16 15926 TEXAS CHILD SUPPORT UNIT Ben2464739 08/11/16 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61 10,000.00 10,000.00 2046633 08/24/16 17476 TERRIE WALKER Ref002464828 08/22/16 UB Refund Cst #0000194580 93.74 TUITION REIMBURSEMENT 201.00 201.00 2046632 08/24/16 03770 TEAMAN RAMIREZ & SMITH INC 77196 08/18/16 AUDIT SERVICES FY 2016 (THRU 7/31/16) 013539 08/11/16 NOTARY PUBLIC BOND RENEWAL 35.00 2046513 08/03/16 14576 SWIATKOWSKI, KEITH 07282016KS 08/01/16 4,000.00 4,000.00 2046599 08/17/16 01554 SWANSON INSURANCE AGENCY 013538 08/11/16 NOTARY PUBLIC BOND RENEWAL 38.00 RED DYED DIESEL FUEL TREATMENT PLANT 3,636.24 3,636.24 2046512 08/03/16 16610 SVPR COMMUNICATIONS 1115 06/01/16 OUTSIDE SERVICES 426531 07/13/16 DIESEL FUEL 4,326.05 2046598 08/17/16 10339 SUPREME OIL COMPANY 425456 06/16/16 5,070.45 5,070.45 2046511 08/03/16 10339 SUPREME OIL COMPANY 426530 07/13/16 UNLEADED FUEL 8,015.25 MONTHLY CONTRIBUTION TO LTD 5,072.69 5,072.69 2046473 07/27/16 15974 SUN LIFE FINANCIAL Ben2463593 07/28/16 MONTHLY CONTRIBUTION TO LTD 2046631 08/24/16 15974 SUN LIFE FINANCIAL Ben2464861 08/25/16 32.45 2046472 07/27/16 17410 STEVE ODEKIRK Ref002463565 07/25/16 UB Refund Cst #0000221582 22.51 22.51 3,500.00 3,500.00 2046471 07/27/16 17411 STEPHANIE GRUNWALD Ref002463566 07/25/16 UB Refund Cst #0000221649 32.45 CERTIFICATION REIMBURSEMENT 140.00 140.00 2046551 08/10/16 10670 STANDARD & POOR'S FINANCIAL 11311932 07/13/16 ANALYTICAL SERVICES (7/1/16-6/30/17) 2046597 08/17/16 03514 SANTOS, MARCIANO 0341081116 08/11/16 081716 08/17/16 UTILITY EXPENSES (MONTHLY)35,024.08 Page 8 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 13,691.88 258.13 319.97 121,034.09 4,192.58 3,034.33 BEE REMOVAL (7/14/16)115.00 115.00204660408/17/16 01343 WE GOT YA PEST CONTROL 106574 07/14/16 480295 07/12/16 SECURITY AND ACCESS UPGRADE (6/24/16)319.52 480294 07/12/16 SECURITY SYSTEM SERVICE CALL (6/28/16)136.00 ALARM MONITORING (AUG 2016)1,548.92 472199 05/11/16 CAMERA RELOCATION (5/3/16)1,029.89 2046520 08/03/16 15807 WATCHLIGHT CORPORATION, THE 480154 07/15/16 480296 07/12/16 SECURITY SYSTEM SERVICE CALL (7/7/16)729.64 480293 07/12/16 SECURITY AND ACCESS UPGRADE (7/5/16)651.90 6,511.37 2046603 08/17/16 15807 WATCHLIGHT CORPORATION, THE 480298 07/12/16 SECURITY AND ACCESS UPGRADE 2,811.04 76.20 76.20 2046639 08/24/16 15807 WATCHLIGHT CORPORATION, THE 460637 03/02/16 ALARM FOR 944-1 RESERVOIR 6,511.37 REFUND SITE 00411085 5,245.40 5,245.40 2046558 08/10/16 17451 W PARTNERS LLC Ref002464692 08/08/16 UB Refund Cst #0000223063 2046519 08/03/16 04441 VERIZON WIRELESS 1085072816 07/28/16 1,120.77 2046477 07/27/16 12686 VANTAGEPOINT TRANSFER AGENTS Ben2463607 07/28/16 401A TERMINAL PAY 25,524.41 25,524.41 1,320.77 1,320.77 2046638 08/24/16 06414 VANTAGEPOINT TRANSFER AGENTS Ben2464871 08/25/16 BI-WEEKLY 401A PLAN 1,120.77 BI-WEEKLY 401A PLAN 1,220.77 1,220.77 2046476 07/27/16 06414 VANTAGEPOINT TRANSFER AGENTS Ben2463603 07/28/16 BI-WEEKLY 401A PLAN 2046557 08/10/16 06414 VANTAGEPOINT TRANSFER AGENTS Ben2464735 08/11/16 14,595.55 2046637 08/24/16 01095 VANTAGEPOINT TRANSFER AGENTS Ben2464869 08/25/16 BI-WEEKLY DEFERRED COMP PLAN 14,625.67 14,625.67 14,853.97 14,853.97 2046556 08/10/16 01095 VANTAGEPOINT TRANSFER AGENTS Ben2464733 08/11/16 BI-WEEKLY DEFERRED COMP PLAN 14,595.55 SUN SHIELDS 4,200.41 4,200.41 2046475 07/27/16 01095 VANTAGEPOINT TRANSFER AGENTS Ben2463601 07/28/16 BI-WEEKLY DEFERRED COMP PLAN 2046602 08/17/16 11606 USA BLUE BOOK 014114 07/22/16 2046601 08/17/16 06829 US SECURITY ASSOCIATES INC 1358773 07/31/16 PATROLLING SERVICES (JULY 2016)110.00 110.00 6,000.00 6,000.00 2046518 08/03/16 07674 US BANK CC20160722063 07/22/16 CAL CARD EXPENSES (MONTHLY)121,034.09 PORTABLE TOILET RENTALS (8/3/16-8/30/16)79.98 79.98 PREPAID POSTAGE MACHINE204663608/24/16 00350 UNITED STATES POSTAL SERVICE 3951082216 08/22/16 2046635 08/24/16 15675 UNITED SITE SERVICES INC 1144316998 08/10/16 1144274022 07/26/16 PORTABLE TOILET RENTALS (7/22/16-8/18/16)79.98 1144274020 07/26/16 PORTABLE TOILET RENTALS (7/23/16-8/19/16)79.98 PORTABLE TOILET RENTALS (7/22/16-8/18/16)80.03 1144274021 07/26/16 PORTABLE TOILET RENTALS (7/22/16-8/18/16)79.98 1144213936 07/12/16 PORTABLE TOILET RENTALS (7/6/16-8/2/16)79.98 2046555 08/10/16 15675 UNITED SITE SERVICES INC 1144274023 07/26/16 PORTABLE TOILET RENTALS (7/14/16-8/10/16)98.17 1144241942 07/19/16 PORTABLE TOILET RENTALS (7/15/16-8/11/16)79.98 2046516 08/03/16 15675 UNITED SITE SERVICES INC 1144241857 07/19/16 634954 07/12/16 DESIGN SERVICES 2,295.00 Page 9 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/21/2016 - 8/24/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 115.00 115.00 Amount Pd Total:2,241,611.34 Check Grand Total:2,241,611.34 BEE REMOVAL (7/14/16)115.00 115.00 2046521 08/03/16 01343 WE GOT YA PEST CONTROL 106498 07/08/16 BEE REMOVAL (7/8/16) 2046604 08/17/16 01343 WE GOT YA PEST CONTROL 106574 07/14/16 Page 10 of 10