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02-03-16 Board Packet
1 OTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY February 3, 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 MEETINGS OF SEP- TEMBER 2, 2015 AND NOVEMBER 4, 2015 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 6. DEMONSTRATION OF THE GEOGRAPHICAL INFORMATION SYSTEM (SEGURA/ZHAO) 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) APPROVE CHANGE ORDER NO. 7 TO THE EXISTING CONTRACT WITH OLYMPUS AND ASSOCIATES, INC. IN THE CREDIT AMOUNT OF <$87,259.87> FOR THE 944-1, 944-2, AND 458-2 RESERVOIR IN- TERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT b) REJECT LOWEST BID BY GRFCO, INC. FOR BEING NON-RESPON- SIVE FOR THE RANCHO SAN DIEGO BASIN SEWER REHABILITA- 2 TION – PHASE I PROJECT (PROJECT); AND AWARD A CONSTRUC- TION CONTRACT TO THE SECOND LOWEST BIDDER TRANSTAR PIPELINE, INC. FOR THE PROJECT IN AN AMOUNT NOT-TO-EXCEED $970,970 c) APPROVE A PURCHASE ORDER TO ORANGE COAST DODGE IN THE AMOUNT OF $114,542.00 FOR THE PURCHASE OF ONE (1) RE- PLACEMENT CLASS 4 UTILITY TRUCK AND DECLARE UNIT 154 SUR- PLUS d) APPROVE AN ENGAGEMENT LETTER WITH THE AUDITING FIRM OF TEAMAN, RAMIREZ AND SMITH, INC., TO PROVIDE AUDIT SERVICES TO THE DISTRICT FOR THE FISCAL YEAR ENDING JUNE 30, 2016 e) ADOPT THE 2016 OTAY WATER DISTRICT LEGISLATIVE PROGRAM GUIDELINES ACTION ITEMS 8. BOARD a) CAST VOTES FOR A REGULAR DISTRICT MEMBER AND AN ALTER- NATE DISTRICT MEMBER ON LAFCO’S COMMISSION, EIGHT (8) PO- SITIONS ON LAFCO’S SPECIAL DISTRICTS ADVISORY COMMITTEE, AND TO EXTEND THE TERMS OF THE REGULAR DISTRICT MEMBER POSITIONS IN THE LAFCO SPECIAL DISTRICTS 2015 ELECTION (WATTON) b) DISCUSSION OF THE 2016 BOARD MEETING CALENDAR REPORTS 9. GENERAL MANAGER’S REPORT a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE 10. DIRECTORS' REPORTS/REQUESTS 11. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 12. CLOSED SESSION 3 a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 CASE RETURN TO OPEN SESSION 13. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 14. 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 January 29, 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 January 29, 2016. /s/ Susan Cruz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT September 2, 2015 1. The meeting was called to order by President Lopez at 3:30 p.m. 2. ROLL CALL Directors Present: Lopez, Croucher, Robak, Smith and Thompson Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff, Attorney Richard Romero, Asst. General Manager German Alvarez, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Information Technology Geoff Stevens, Chief of Operations Pedro Porras, Asst. Chief of Administration and Information Technology Adolfo Segura, Asst. Chief of Operations Jose Martinez, Sr. Confidential Executive Secretary Tita Ramos- Krogman, and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Croucher, and seconded by Director Thompson and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF MAY 6, 2015 and June 24, 2015 A motion was made by Director Thompson, seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the minutes of the regular board meeting of May 6, 2015 and June 24, 2015. 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: A motion was made by Director Thompson, seconded by Director Croucher and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the following consent calendar item: a) AWARD A PROFESSIONAL AS-NEEDED UTILITY LOCATING SERVICES CONTRACT TO AIRX UTILITY SURVEYORS, INC. IN AN AMOUNT NOT-TO-EXCEED $350,000 FOR A PERIOD OF THREE (3) FISCAL YEARS (FY), FY 2016 THROUGH 2018 (ENDING JUNE 30, 2019) ACTION ITEMS 8. BOARD a) DISCUSSION OF THE 2015 BOARD MEETING CALENDAR There were no changes to the meeting calendar. INFORMATIONAL ITEM 9. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM: a) FOURTH QUARTER OF FISCAL YEAR 2015 CAPITAL IMPROVEMENT PROGRAM REPORT (MARTIN) Engineering Manager Dan Martin provided an update on the District’s fourth quarter of FY 2015 Capital Improvement Program. He indicated that the FY 3 2015 budget is divided into 73 projects totaling $10.6 million. The overall expenditures through the fourth quarter are $9.8 million which is approximately 92% of the FY 2015 budget. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Mr. Martin’s report. In response to a comment made by Director Thompson, Engineering Manager Dan Martin stated that staff will consider adding each CIP project’s location into the quarterly reports provided to Directors. Director Smith commended staff for accelerating alternative CIP projects which resulted in the District exceeding its goal to align projected expenditures with actual expenditures in the FY 2015 CIP Budget. The CIP Budget’s actual expenditures is 92%, which exceeded the 80% target. REPORTS 10. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report that included an update on the District’s Employee Recognition Luncheon, Rate Increase Notices, CWA providing a Smart Phone App for reporting water waste, and the Rosarito Desalination Project. He indicated that the District will schedule a desalination committee meeting at the end of the year to provide an update on the Rosarito Desalination Project. Mr. Watton reported on discussions and actions from the CWA board meetings. He also reported that Secretary John Laird attended a CWA committee meeting where the Bay Delta Tunnel Project was discussed. Director Croucher reported on discussions and actions at the CWA’s Legislation, Conservation and Outreach Committee meeting. He provided an update on the Carlsbad Desalination Project and shared that CWA will be hosting a Legislative Round Table where Speaker Atkins will be present. He indicated that board members are welcome to attend the round table. He also stated that MWD will be hosting tours of the Colorado River, Bay Delta Shores, etc. if board members are interested in attending. At the request of Director Thompson, Chief Financial Officer Joe Beachem stated that staff will double-check the numbers on the Rate Increase Notices before they are sent out to customers. Director Smith observed that the District’s expenditures exceeded its revenues in FY 2015 which resulted in an approximate $1.7M shortfall for the beginning of FY 2016. Chief Financial Officer Beachem stated the figures were for the year-end of FY 2015. He indicated the current year-to-date variance shows a shortfall of only $255,000. The variance is due to customers conserving more water than anticipated. Staff is continuing to monitor the budget and conservation and will be bringing the matter to the board for discussion at a future meeting. 4 11. DIRECTORS' REPORTS/REQUESTS Director Croucher reported that he received an email from a customer who commended Meter Technician Kim Chavez for detecting a leak at his/her property which prevented a significant amount of water waste and helped them (the property owner) save money. At the request of Director Thompson, General Manager Watton stated that staff will further research the possibility of installing a charging station for electric cars at the District. Director Smith shared that he is teaching at San Diego State University and he provides his students (via the District’s website) with information on how to conserve water. 12. PRESIDENT’S REPORT President Lopez reported on meetings he attended during the month of August 2015 (a list of meetings he attended is attached). 13. CLOSED SESSION The board recessed to closed session at 4:37 p.m. to discuss the following matters: a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: 1 CASE b) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9: 1 CASE c) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERNMENT CODE §54956.9] UNITED STATES, ET AL., EX. REL. JOHN HENDRIX vs. J-M MANUFACTURING COMPANY, INC., ET AL.; CASE NO. ED CV 06- 00055GW The board reconvened at 5:24 p.m. and Attorney Richard Romero stated that the board took no reportable actions in closed session. 5 14. ACTION ITEM APPROVE CHANGE ORDERS NO. 2 AND NO. 3 TO THE EXISTING CONTRACT WITH OLYMPUS AND ASSOCIATES, INC. FOR THE 944-1, 944- 2, AND 458-2 RESERVOIR INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT; AND INCREASE THE OVERALL BUDGETS FOR CIPs P2531, P2532, AND P2535 IN AN AMOUNT OF $325,000 With no discussion by the board, a motion was made by Director Croucher, seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve staffs’ recommendation. 15. ADJOURNMENT With no further business to come before the Board, President Lopez adjourned the meeting at 5:28 p.m. ___________________________________ President ATTEST: District Secretary 6 President’s Report September 2, 2015 Board Meeting A) Meetings attended during the Month of August 2015: 1) August 7: Board Agenda Briefing. Met with General Manager Watton and General Counsel Dan Shinoff to review items that will be presented at the August 13 Board Meeting. 2) August 13: OWD Regular Board Meeting 3) August 21: Casa Familiar 29th Annual ABRAZO Awards Event. Attendees: Director Thompson 4) August 25: a. Met with City of Chula Vista Councilmember Miesen. Discussed the City of San Diego Recycled Water Rate Study. Attendees: Director Thompson, General Manager Watton and Finance Manager Bell b. Met with City of Chula Vista Councilmember McCann. Discussed the City of San Diego Recycled Water Rate Study. Attendees: Director Thomspon, General Manager Watton and Finance Manager Bell 5) August 26: Met with City of San Diego Councilmember Emerald. Discussed the City of San Diego Recycled Water Rate Study. Attendees: General Manager Watton and Finance Manager Bell 6) August 28: Board Agenda Briefing. Met with General Manager Watton and General Counsel Dan Shinoff to review items that will be presented at the September Board Meeting. 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT November 4, 2015 1. The meeting was called to order by President Lopez at 3:34 p.m. 2. ROLL CALL Directors Present: Lopez, Robak, Smith and Thompson Directors Absent: Director Croucher (due to a personal commitment) Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff, Asst. General Manager German Alvarez, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Information Technology Geoff Stevens, Asst. Chief of Administration and Information Technology Adolfo Segura, 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 Robak, 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 BOARD MEETING OF AUGUST 13, 2015 Director Thompson indicated that he wished to clarify at the top of page six (6) of the August 13, 2015 minutes where it indicates, “Because there currently are no metrics…,” he would like to amend his statement to indicate that, “Because there currently is no quantifiable data to measure…,” as he did not feel that the public would understand what is meant by no metrics. A motion was made by Director Smith, seconded by Director Thompson and carried with the following vote: Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None 2 Abstain: None Absent: Director Croucher to approve the minutes of August 13 with Director Thompson’s amendment. 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: Director Robak pulled items 6c, AUTHORIZE THE GENERAL MANAGER AND DISTRICT STAFF TO EXPLORE, NEGOTIATE AND ENTER INTO A LETTER OF INTENT OR MEMORANDUM OF UNDERSTANDING (LOI/MOU) BETWEEN THE DISTRICT AND CADIZ, INC. FOR THE PURCHASE OF 5,000 ACRE- FEET PER YEAR (AFY) OF RAW WATER AND TO APPROVE THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) NOTICE OF EXEMPTION FOR THE POTENTIAL WATER PURCHASE; 6d, APPROVE AN AGREEMENT WITH THE LAW FIRM OF STUTZ, ARTIANO, SHINOFF AND HOLTZ, A PROFESSIONAL CORPORATION, FOR A TERM OF TWO (2) YEARS THROUGH DECEMBER 31, 2017, TO PROVIDE GENERAL COUNSEL SERVICES; 6e, APPROVE A FINE OF $22,000 TO SHARP CHULA VISTA FOR MULTIPLE VIOLATIONS OF THE DISTRICT’S CODE OF ORDINANCES; for discussion. A motion was made by Director Thompson, seconded by Director Robak 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 CONSTRUCTION CONTRACT WITH MONTGOMERY CONSTRUCTION SERVICES, INC. FOR THE OPERATIONS YARD PROPERTY ACQUISITION IMPROVEMENT PROJECT IN AN AMOUNT NOT-TO-EXCEED $449,611.05 b) ADOPT THE MITIGATED NEGATIVE DECLARATION FOR THE CAMPO ROAD SEWER REPLACEMENT PROJECT 3 President Lopez presented item 6e for discussion: e) APPROVE A FINE OF $22,000 TO SHARP CHULA VISTA FOR MULTIPLE VIOLATIONS OF THE DISTRICT’S CODE OF ORDINANCES Customer Service Manager Andrea Carey requested that the board uphold staffs’ recommendation to impose a $22,000 fine to Sharp Chula Vista for multiple violations of the District’s Code of Ordinances. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Ms. Carey’s report. Mr. Matthew Teichner, Project Manager for Sharp Chula Vista, indicated they take regulatory compliance very seriously and explained how their test system worked. He stated that they did not steal water from the District or tamper with the District’s system. He indicated that the hospital’s relationship with the District is important to them and expressed that it is never their intent to break or evade regulations. He requested that the board reduce the proposed $22,000 fine as Sharp Chula Vista felt it is excessive, based on circumstantial evidence, and due to a misunderstanding of how their test system worked. General Manager Watton indicated that the relationship with Sharp Chula Vista has been respectful. In previous instances where Sharp Chula Vista’s contractors were found taking short cuts, the District worked with those contractors and corrective action was taken. With regard to these incidents, these are large valves and it is highly unlikely that a vandal would open the valves since they require special tools to operate. The District did not open the valves and there is only one party that had an incentive to open the valves. The proposed $22,000 fine is assessed for each violation of the District’s Code performed on two water systems. Mr. Teichner acknowledged that there have been previous conflicts between the District and Sharp’s contractors and there was some misunderstanding with Otay WD’s involvement in their projects. He stated that he should have come to Otay WD at the beginning of the project, but would be doing that tomorrow for the next phase of the work on this project. General Manager Watton indicated his appreciation for their future cooperation and stated to the board that the amount of the imposed penalty is at their discretion and staff is not resolute as to the amount of the fine. Director Robak indicated that this item was reviewed by the District’s Finance, Administration and Communications Committee in September and the committee supported staffs’ recommendation based on the information presented and past incidences with Sharp Chula Vista’s contractors. There was further discussion and presentations made by the District’s Inspection Manager, Mr. Brandon DiPietro, and Sharp Chula Vista’s site foreman, Mr. Dan 4 George of Kyne Construction regarding what was observed at the project site at Sharp Chula Vista the day the violations were discovered. A motion was made by Director Thompson, 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 consider the violations as occurring on one water system instead of two water systems and imposing a fine that is half ($11,000) of the recommended $22,000 to Sharp Chula Vista. President Lopez presented 6c for discussion: c) AUTHORIZE THE GENERAL MANAGER AND DISTRICT STAFF TO EXPLORE, NEGOTIATE AND ENTER INTO A LETTER OF INTENT OR MEMORANDUM OF UNDERSTANDING (LOI/MOU) BETWEEN THE DISTRICT AND CADIZ, INC. FOR THE PURCHASE OF 5,000 ACRE- FEET PER YEAR (AFY) OF RAW WATER AND TO APPROVE THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) NOTICE OF EXEMPTION FOR THE POTENTIAL WATER PURCHASE. Director Robak inquired why the District was entertaining a relationship with Cadiz, Inc. as he felt it was not looking positive for the project and it is very controversial. General Manager Watton indicated that the District wishes to indicate interest in reserving water supplies from the project as it becomes an additional water resource should the project come to fruition. He stated there is no cost or risk to the District to reserve supplies from the project. Regarding environmental impacts, there are no environmental considerations relative to the District as the water would be conveyed to the Otay WD through existing MWD and CWA infrastructure (no new infrastructure would need to be built). In response to an inquiry from Director Thompson, General Manager Watton indicated that MWD is currently charging approximately $700 per AF to wheel the Colorado River water through the QSA. Staff has estimated a fair wheeling rate for Cadiz water would be closer to $200 per AF or a little under. He stated if the District can get the Cadiz water for this rate, it is a good deal. However, if it is wheeled at the QSA rate it would not be a reasonable rate. General Manager Watton indicated in response to another inquiry from Director Robak, that no other agency in San Diego, including CWA, is seeking an agreement with Cadiz as they only have 50,000 AF available and it is already fully subscribed. CWA had interest, but they have other sources they are also exploring. A motion was made by Director Smith, seconded by Director Thompson and carried with the following vote: 5 Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve staffs’ recommendation. President Lopez presented 6d for discussion: d) APPROVE AN AGREEMENT WITH THE LAW FIRM OF STUTZ, ARTIANO, SHINOFF AND HOLTZ, A PROFESSIONAL CORPORATION, FOR A TERM OF TWO (2) YEARS THROUGH DECEMBER 31, 2017, TO PROVIDE GENERAL COUNSEL SERVICES General Manager Watton indicated that this is a discretionary item for the board and staffs’ sense is that the board is happy with the services provided by Stutz Artiano, Shinoff and Holtz, LLC (SASH). Staff has attached to the report a survey comparing general counsel service hourly cost among the local agencies and it is felt that SASH’s rates are competitive. Staff is also pleased with the firm’s work and, thus, staff is recommending the renewal of the District’s agreement with SASH. Director Thompson suggested that he would like a discussion in the future of the rational for a retainer. General Manager Watton indicated that typically the District is below the retainer amount, but there are some months where the District is over the retainer due to more legal activity. He stated that the District only pays for the hours worked by the firm. A motion was made by Director Thompson, 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 staffs’ recommendation. ACTION ITEMS 8. FINANCE, ADMINISTRATION AND INFORMATION TECHNOLOGY a) APPROVE THE DISTRICT’S AUDITED FINANCIAL STATEMENTS INCLUDING THE INDEPENDENT AUDITOR’S UNQUALIFIED OPINION FOR FISCAL YEAR ENDED JUNE 30, 2015 6 Senior Accountant Marissa Dychitan indicated that staff is recommending that the board approve the District’s audited financial statements, including the Independent Auditors’ unqualified opinion for the fiscal year ended June 30, 2015. She stated that Teaman, Ramirez & Smith, Inc. performed the audit and found that, in all material respects, the financial statements correctly represent the financial position of the District. Please reference the Committee Action notes (Attachment A) attached to the staff report for further details of Ms. Dichitan’s and the Auditor’s (Mr. Rich Teaman’s) report. Mr. Teaman indicated in response to an inquiry from Direct Robak that from his firm’s observation, the District is well funded and managed and the District seems to take the appropriate steps to assure the financial stability of the District. A motion was made by Director Robak, 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 staffs’ recommendation. 9. WATER OPERATIONS AND ENGINEERING a) APPROVE AMENDMENT NO. 4 TO THE EXISTING CONTRACT WITH AECOM TECHNICAL SERVICES, INC. (AECOM) FOR THE DESIGN OF THE OTAY MESA DESALINATION CONVEYANCE AND DISINFECTION SYSTEM PROJECT; INCREASING THE CONTRACT BY $22,425, RESULTING IN A HIGHER CONTRACT AMOUNT NOT-TO-EXCEED $3,800,863 Environmental Compliance Specialist Lisa Coburn-Boyd indicated that staff is requesting the board to approve amendment number four (4) to the District’s existing contract with AECOM Technical Services, Inc. (AECOM) for the design of the Otay Mesa Desalination Conveyance and Disinfection System Project. Please reference the Committee Action notes (Attachment A) attached to the staff report for further details of Ms. Coburn-Boyd’s report. General Manager Watton indicated that the State of Baja should be receiving tenders to build the desalination plant in the next four (4) weeks. NSC Agua has submitted their tender. He indicated that Mexico will buy a majority of the water from the project and that he has submitted a letter on behalf of the District to the State of Baja restating the District’s desire to purchase water from the project and indicating the amount of water the District is interested in purchasing. It was discussed that the EIR/EIS does includes the construction of a pump station and water treatment facility should they be required. 7 A motion was made by Director Thompson, 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 staffs’ recommendation. b) APPROVE TWO (2) AGREEMENTS FOR METERED EMERGENCY INTERCONNECTIONS BETWEEN OTAY AND THE HELIX WATER DISTRICT AT BLOSSOM LANE AND IVY STREET Senior Civil Engineer Steve Beppler indicated that staff is requesting the board’s approval of two (2) agreements for metered emergency interconnections between Otay WD and the Helix WD at Blossom Land and Ivy Street in Lemon Grove. Please reference the Committee Action (Attachment A) notes attached to the staff report for further details of Mr. Beppler’s report. General Manager Watton noted that this item was supported by committee, but the committee had interest in the location of all District interconnects. He noted there are two maps attached to staff’s report showing all the District’s interconnections (31 total interconnections). A motion was made by Director Robak, 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 staffs’ recommendation. 10. BOARD a) DISCUSSION OF THE 2015 BOARD MEETING CALENDAR There was discussion that there was no urgent business to be heard and staff is prepared if the December 2015 board meeting is canceled as has been done in the past. It was suggested that the meeting be held on the calendar and a cancellation be posted if the meeting is not needed. INFORMATIONAL ITEM 8 11. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: c) RECEIVE THE FINDINGS OF THE 2015 CUSTOMER AWARENESS AND OPINION SURVEY (BUELNA) Communications Officer Armando Buelna indicated that staff is presenting the results of the 2015 Customer Awareness and Opinion Survey. He indicated that this is a statistically reliable survey based on telephone interviews of residential customers of the District. The survey was performed by Rea & Parker Research, Inc. between August 31 and September 9, 2015. He indicated that Drs. Rea and Parker are in attendance of today’s meeting and will be presenting the results of the survey. Please reference the Committee Action notes (Attachment A) attached to the staff report for further details of Mr. Buelna’s and Drs. Rea and Parker’s report. Dr. Parker indicated in response to an inquiry from Director Robak that cell phone respondents are a little different demographically than respondents who have a landline and they wished to track in the survey cell phone respondents’ views and experience with the District to see if, and how, they differ from landline customers. The board was interested in knowing how the reduction in water use by the District’s customers is impacting the District’s budget. General Manager Watton indicated that staff would be presenting this information at an upcoming Workshop for the Board. REPORTS 12. GENERAL MANAGER’S REPORT CWA Report General Manager Watton indicated with regard to CWA’s lawsuit with MWD that the judge awarded the statute pre-judgement interest of 10% which brings the judgement to $240+ million. It is expected that MWD will appeal the judgement. The interest for post judgement is set at 7% for the length of the appeal process. He also shared that he has provided handouts on the dias and the first is an update on ACWA’s proposed ballot measure related to Proposition 218; a letter to ACWA from Ms. Maureen Stapleton, General Manager of CWA, regarding their not vetting the ballot measure through the ACWA members and Mr. Tim Quinn’s, ACWA Executive Director, response to CWA’s letter; and information on the California Water Fix for the Delta Tunnels. Mr. Watton also presented information from his report. He reported on the District’s preparedness and planning for storm related flooding, Safety Training, 9 the Countywide GIS Image Project, the FY 2015 Comprehensive Annual Financial Report, the Rosarito Desalination Project, recycled water fire hydrant installations, the Ralph W. Chapman Water Reclamation Facility Indirect Potable Reuse/Direct Potable Reuse project with Sweetwater Authority, and water purchases. 13. DIRECTORS' REPORTS/REQUESTS Director Robak indicated that he felt that the annual Customer Survey is a great tool, especially with regard to measuring the effectiveness of the Water Conservation Garden (WCG) as it is the only tool that provides data on the WCG. He stated that the District did a very good job in handling the break at Hillsdale and that he received good feedback from the community as well. He indicated that he attended a quarterly meeting of the Conservation Action Committee at the SDG&E Energy Conservation Center. Mr. Charles Fishman, an author who wrote a book on water, presented at the meeting. He indicated Mr. Fishman has a perspective on water that encompasses the world, far beyond the Southern California paradigm. He also shared that Mr. John Bolthouse has submitted his resignation as the Executive Director of the WCG effective December 18 and has accepted a new position as the Executive Director of the Friends of Balboa Park organization. He lastly shared that he attended the South County Economic Development Council’s Elected Officials event and was asked to provide a report on the Otay WD. He indicated that he spoke on the inequitable recycled water rate increase that is being proposed on the Otay WD by the City of San Diego and that the information was well received. He stated the East County Chamber of Commerce is formally supporting the District’s position on the City’s recycled rate increase. Director Smith reported, in the interest of transparency, that he created a sole proprietor civil engineering services company last month. The company’s name is Smith Civil Engineering Solutions. 14. PRESIDENT’S REPORT President Lopez reported on meetings he attended during the month of October 2015 (a list of meetings he attended is attached). He also acknowledged the agencies and organizations who supported the District’s position on the City of San Diego’s proposed recycled water rate increase to the Otay WD. 15. CLOSED SESSION The board recessed to closed session at 6:10 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: 10 1 CASE b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION [GOVERNMENT CODE §54957.6 TITLE: GENERAL MANAGER The board reconvened at 8:33 p.m. and General Counsel Dan Shinoff reported that the board met in closed session and took no reportable action on item a above. Director Thompson reported with regard to item b, that he and Director Smith served on the Ad Hoc General Manager Evaluation Committee. He stated that the Board conducted the General Manager’s performance evaluation in closed session and the board is very pleased with General Manager Watton’s performance over the last year. A motion was made by Director Thompson, seconded by Director Robak and carried with the following vote: Ayes: Directors Lopez, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to amend the General Manager’s contract to extend it an additional year to 2018 and a provide a salary increase of 2% effective July 1, 2015 and an adjustment effective July 1, 2016 based on the same formula for the employees scheduled to become effective the same date, July 1, 2016. The 2016 increase would be a minimum of 2% and a maximum of 3%. The board also directs General Counsel to draft the amendment to the General Managers contract based on these parameters. Director Thompson acknowledged that the District’s General Manager is one of the highest paid General Managers of a public agency in the County. He indicated the reason the District’s General Manager is one of the highest paid is because he is one of the very best in the County. He stated the members of the board, of which a number has many years of experience in both the private and public sectors, recognizes the value the General Manager provides the District with his experience and knowledge of the industry. He indicated that his salary is a recognition of his career contributions and experience in the industry. Director Thompson noted that the proposed increase provided the General Manager is in line with the increases provided the employees of the District. The extension of the 3rd year is on his contract is to encourage him to continue his service with the District. General Manager Watton thanked the board and indicated that he is honored to be the General Manager of the District. He stated that it has been a great experience and he is humbled by the board’s confidence in him. He again thanked the board for the review and the kind words. 11 16. ADJOURNMENT With no further business to come before the Board, President Lopez adjourned the meeting at 8:40 p.m. ___________________________________ President ATTEST: District Secretary 12 President’s Report November 4, 2015 Board Meeting A) Meetings attended during the Month of October 2015: 1) October 6: a. Attended the District’s Ad Hoc Salt Creek Golf Course Development Committee. Discussed future of the Salt Creek Golf Course. Attendees: Director Thompson, General Manager Watton, Bill McWethy, Fred Grand and Alan Nevin b. Attended the District’s Ad Hoc Salt Creek Golf Course Development Committee. Follow-up discussion to earlier morning meeting above regarding the future of the Salt Creek Golf Course. Attendees: Director Thompson and General Manager Watton 2) October 7: OWD Regular Board Meeting 3) October 13: Attended Southwestern College’s Board Meeting to accept their Resolution of Support for Zonal Rating for the City of San Diego’s Recycled Water Rate. 4) October 14: Attended the District’s Employee Recognition Luncheon. 5) October 16: Committee Agenda Briefing. Met with General Manager Watton to review items that will be presented at the October committee meetings. 6) October 19: Attended the District’s Desalination Project Committee. Discussed and received an update on the Rosarito Desalination Project. 7) October 21: Attended the District’s Finance, Administration and Communications Committee. Reviewed, discussed, and made recommendation on items that will be presented at the November board meeting. 8) October 22: Attended the City of Chula Vista’s Ribbons and Shovels Event. Attendees: Director Thompson 9) October 27: Board Agenda Briefing. Met with General Manager Watton and General Counsel Dan Shinoff to review items that will be presented at the November 4 Board Meeting. 13 10) October 28: a. Interview with Univision regarding the City of San Diego’s proposed recycled water rate increase. b. Attended the Press Conference hosted by Otay Water District and City of Chula Vista. Shared information on the City of San Diego’s proposed recycled water rate increase. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 2016 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: P2531-001103 P2532-001103 P2535-001103 DIV. NOs.: 2 & 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Approve Change Order No. 7 to the Contract with Olympus & Associates, Inc. for the 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve Change Order No. 7 (Exhibit B) to the existing contract with Olympus & Associates, Inc. (Olympus) in the credit amount of <$87,259.87> for the 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades Project. See Exhibits A-1 and A-2 for Project locations. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No. 7 in the credit amount of <$87,259.87> to the construction contract with Olympus for the 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades Project. ANALYSIS: At the October 1, 2014 Board Meeting, the Board awarded a construction contract in an amount of $1,206,008 to Olympus to replace the existing interior and exterior coatings for the 944-1, 2 944-2, and 458-2 Reservoirs. In addition to replacing the coatings of the reservoirs, the Project includes structural upgrades to comply with the current American Water Works Association (AWWA) and the Occupational Safety and Health Administration standards for both Federal (OSHA) and State (Cal-OSHA) levels. Since the award of the construction contract, substantial structural repair work was identified at the 944-1 (Install Date January 1963), 944-2 (Install Date June 1992), and 458-2 (Install Date October 1967) Reservoirs. Although an internal (dive) inspection was performed at the Reservoirs in advance of the Project, the extent of the required repairs could not be assessed until removal of the existing coating was completed. The contract does include a Board approved Structural Modification Allowance item, which was established to address structural deficiencies identified during construction. A Work Order was approved against the allowance on June 12, 2015, to construct structural roof support system repairs at the 944-2 Reservoir. On September 2, 2015 the Board approved a budget increase in the amount of $325,000 to cover the costs of change orders associated with the Project. Additionally, at the September 2, 2015 and October 7, 2015 Board Meetings, the Board approved contract Change Order Nos. 2 through 6. Table 1 below provides a summary of the approved contract change orders for the Project. Each change order addressed both cost and time impacts associated with the unforeseen work and serves as total compensation to the contractor. Table 1. Summary of Board Approved Change Orders Change Order Description Approval Date Value Time (Days) 1 458-2 Structural floor repairs 6/17/15 $41,778.00 20 2 458-2 Idled Equipment during structural floor and roof repairs 9/10/15 $44,458.00 30 3 458-2 Disposal of additional Coal Tar 9/10/15 $4,073.00 3 4 458-2 Floor coating change to 100% solids product 10/16/15 $28,071.00 0 5 944-1 Structural rafter repairs 10/16/15 $46,204.33 32 6 944-1 Overflow replacement/repairs 10/16/15 $11,413.89 2 Total $175,998.22 87 With the approval of the change orders summarized above, the contract completion date was revised from June 13, 2015 to September 8, 2015. Throughout the contract, Olympus has been notified that the District 3 will be assessing liquidated damages associated with the late delivery of the Project. Section 00400 (Form A) of the contract between the District and Olympus includes provisions for liquidated damages associated with completion of the work beyond the contract time. Per the contract, liquidated damages accrue at a rate of one thousand dollars ($1,000) per calendar day until substantial completion is reached. Olympus substantially completed the contract on December 3, 2015. In accordance with the contract provisions, the District has withheld liquidated damages from progress payment requests. Change Order No. 7, Exhibit B which is the subject of this staff report, reconciles the final number of liquidated damages assessed and adjusts the final contract amount accordingly. Additionally, Change Order No. 7 serves as a contract closeout change order and will credit the contract for items furnished by the District to Olympus at the request of Olympus, including the following: replacement of an existing 14-inch butterfly valve which was damaged by the contractor; compensation for damaged pavement; and premium time associated with specialty inspection on weekends. In total, Change Order No. 7 is a credit to the District in the amount of <$87,259.87>. The District’s Construction Manager sent Change Order No. 7 to Olympus on December 17, 2015. To date, Olympus has not executed the change order and returned it to the Construction Manager. In the absence of an executed change order from Olympus, staff is recommending that approval of Change Order No. 7 be processed unilaterally in substantially the same form as shown in Exhibit B so that closeout of the contract can be completed. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Funding for the overall Project comes from CIP’s P2531, P2532, and P2535. The total budget is $2,175,000. The total budget for CIP P2531 (944-1 Reservoir), as approved by the Board at the September 2, 2015 Board Meeting, is $390,000. Total expenditures, plus outstanding commitments and forecast, are $345,384. See Attachment B-1 for budget detail. The total budget for CIP P2532 (944-2 Reservoir), as approved by the Board at the September 2, 2015 Board Meeting, is $946,000. Total expenditures, plus outstanding commitments and forecast, are $939,584. See Attachment B-2 for budget detail. 4 The total budget for CIP P2535 (458-2 Reservoir), as approved by the Board at the September 2, 2015 Board Meeting, is $839,000. Total expenditures, plus outstanding commitments and forecast, are $794,657. See Attachment B-3 for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budgets for CIP’s P2531, P2532, and P2535 are sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund for CIP’s P2531, P2532, and P2535. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM/RP:jf P:\WORKING\CIP P2531 & P2532 - 944-1 & 2 Reservoir Int-Ext Coating\Staff Reports\BD 02-03-16\BD 02-03-16 Staff Report 944-1 944-2 458-2 Reservoir CO 07(DM-RP).docx Attachments: Attachment A – Committee Action Attachment B-1 – Budget Detail for P2531 Attachment B-2 – Budget Detail for P2532 Attachment B-3 – Budget Detail for P2535 Exhibit A-1 – Location Map for 944-1 & 944-2 Exhibit A-2 – Location Map for 458-2 Exhibit B – Change Order No. 7 ATTACHMENT A SUBJECT/PROJECT: P2531-001103 P2532-001103 P2535-001103 Approve Change Order No. 7 to the Contract with Olympus & Associates, Inc. for the 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on January 19, 2016, and the following comments were made: Staff recommended that the Board approve Change Order No. 7, Exhibit B to the staff report, to the existing contract with Olympus & Associates, Inc. (Olympus) in the credit amount of <$87,259.87> for the 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades Project. Staff presented their report to the Committee, which included a background of the Project and previous Change Orders. It was noted that on September 2, 2015, the Board approved a budget increase in the amount of $325,000 to cover the costs of change orders associated with the Project. Table 1, which is shown on Page 2 of the staff report, provides a summary of the approved contract change orders. Staff indicated that Olympus accepted Change Orders Nos. 2 through 6 that addressed both cost and time impacts associated with unforeseen work. With the approval of the change orders, the contract completion date was revised from June 13, 2015 to September 8, 2015. It was discussed that Section 00400 (Form A) of the contract between the District and Olympus includes provisions for liquidated damages associated with completion of the work beyond the contract time. Liquidated damages accrue at a rate of one thousand dollars ($1,000) per calendar day until substantial completion is reached. Staff noted that Olympus substantially completed the contract on December 3, 2015, and that the District has withheld liquidated damages from progress payment requests. Staff stated that Change Order No. 7, Exhibit B of the staff report, reconciles the final number of liquidated damages assessed and adjusts the final contract amount accordingly. Change Order No. 7 also serves as a contract closeout change order and will credit the contract for items furnished by the District to Olympus at the request of Olympus, including the following: o Replacement of an existing 14-inch butterfly valve that was damaged by the contractor; o Compensation for damaged pavement; and o Premium time associated with specialty inspection on weekends. In total, Change Order No. 7 is a credit to the District in the amount of <$87,259.87>. Staff indicated that the Construction Manager sent Change Order No. 7 to Olympus on December 17, 2015. To date, Olympus has not executed the change order and returned it to the Construction Manager. In the absence of an executed change order from Olympus, staff recommended that the approval of Change Order No. 7 be processed unilaterally in substantially the same form as shown in Exhibit B so that closeout of the contract can be completed. Staff noted that prior to the Committee meeting, Olympus submitted correspondences to the District disputing the liquidated damages. The company also indicated that additional information will be submitted at a later time. Staff stated that the disputes are not a new issue for this Project as they were already communicated by correspondence back in June 2015, which the District has already reviewed and provided a response to Olympus. Staff also noted that the most recent correspondence from Olympus lacks detail. For these reasons, staff believes that the District can move forward with Change Order No. 7. Copies of all correspondences were provided to the Committee. The Committee inquired if the Project caused any impacts to residents in the area. Staff stated that some residents complained about the noise from the Project. District staff met with the contractor about the issue and noticed that the contractor was not following the District’s contract specifications as old equipment was being utilized for the Project. The contractor obtained new equipment to meet the District’s specifications. Staff stated that the contractor’s management of personnel and equipment caused inefficiencies with the Project and related contract completion delays and indicated that these issues are well documented by District Staff. At the request of the Committee, staff was asked to double-check to see that no impacts were made to the private access road at the Project’s site. Subsequent to the Committee meeting, staff followed up on the Committee’s request and confirmed that the District’s Construction Manager is tracking a punch list item at the 944-1/944-2 Reservoir site that involves damage to an existing rock wall. The affected Property Owner Association (POA) values the wall repair at $120.00. In December 2015, Olympus was asked to make restitution to the POA for the damaged rock wall. On January 25, 2016, staff followed up with the POA who confirmed that they have not received restitution and also confirmed that there are no other outstanding POA items. In the absence of payment by Olympus to the POA for damage to the rock wall, staff will deduct the disputed amount from retention being withheld on the contract until the issue is resolved. In response to a question from the Committee, staff stated that there should be no major maintenance issues with this reservoir in the next 15-20 years. In addition, there is a two-year warranty on the work that has been completed with this project. During the warranty period, District staff will closely monitor the reservoir to ensure that no structural damage occurs. In response to a question from the Committee, Legal Counsel stated that the District has previously processed a unilateral change order that was similar to this Project. Following the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. ATTACHMENT B-1 – Budget Detail for P2531 SUBJECT/PROJECT: P2531-001103 P2532-001103 P2535-001103 Approve Change Order No. 7 to the Contract with Olympus & Associates, Inc. for the 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades Project Date Updated: 12/28/15 Budget 390,000 Planning Standard Salaries 468 468 - 468 Consultant Contracts 3,411 3,411 - 3,411 HDR ENGINEERING INC Regulatory Agency Fees 25 25 - 25 PETTY CASH CUSTODIAN Total Planning 3,904 3,904 - 3,904 Design Standard Salaries 4,196 4,196 - 4,196 Service Contracts 45 45 - 45 SAN DIEGO DAILY TRANSCRIPT Construction Contracts 90 90 - 90 CLARKSON LAB & SUPPLY INC Total Design 4,331 4,331 - 4,331 Construction Standard Salaries 50,000 38,297 11,703 50,000 Construction Contract 245,846 196,698 49,148 245,846 OLYMPUS & ASSOCIATES (43,375) - (43,375) (43,375) OLYMPUS & ASSOCIATES CO 07 Service Contracts 50,000 15,240 34,760 50,000 RF YEAGER 16,000 13,650 2,350 16,000 ALYSON CONSULTING-CM Equipment 15,000 7,285 7,715 15,000 VALVE REPLACEMENT Equipment Charges 78 78 - 78 EQUIPMENT CHARGES Professional Legal Fees 600 580 20 600 STUTZ ARTIANO SHINOFF Regulatory Agency Fees - - - - PETTY CASH CUSTODIAN Project Closeout 3,000 - 3,000 3,000 CLOSEOUT Project Contingency - - - - 5% CONTINGENCY Total Construction 337,149 271,828 65,321 337,149 Grand Total 345,384 280,063 65,321 345,384 Vendor/Comments Otay Water District P2531-944-1 Reservoir Interior/Exterior Coating Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-2 – Budget Detail for P2532 SUBJECT/PROJECT: P2531-001103 P2532-001103 P2535-001103 Approve Change Order No. 7 to the Contract with Olympus & Associates, Inc. for the 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades Project Date Updated: 12/28/15 Budget 946,000 Planning Standard Salaries 468 468 - 468 Consultant Contracts 3,412 3,412 - 3,412 HDR ENGINEERING INC Regulatory Agency Fees 25 25 - 25 PETTY CASH CUSTODIAN Total Planning 3,905 3,905 - 3,905 Design Standard Salaries 7,599 7,599 - 7,599 Professional Legal Fees - - - - STUTZ ARTIANO SHINOFF Consultant Contracts - - - - CONSULTANT CONTRACT Service Contracts 1,129 1,129 - 1,129 MAYER 45 45 - 45 SAN DIEGO DAILY TRANSCRIPT Total Design 8,773 8,773 - 8,773 Construction Standard Salaries 180,000 178,423 1,577 180,000 Construction Contract 587,616 587,616 - 587,616 OLYMPUS & ASSOCIATES (82) - (82) (82) OLYMPUS & ASSOCIATES CO 07 Service Contracts 120,493 120,493 - 120,493 HDR-SPECIALTY INSPECTION 34,820 34,820 - 34,820 ALYSON CONSULTING-CM 90 90 90 CLARKSON LAB & SUPPLY 2,356 2,356 - 2,356 WATCHLIGHT CORPORATION Equipment Charge 1,283 1,283 - 1,283 EQUIPMENT CHARGE Professional Legal Fees 330 327 3 330 STUTZ ARTIANO SHINOFF Regulatory Agency Fees - - - - PETTY CASH CUSTODIAN Project Closeout - - - - CLOSEOUT Project Contingency - - - - 5% CONTINGENCY Total Construction 926,907 925,408 1,498 926,906 Grand Total 939,585 938,086 1,498 939,584 Vendor/Comments Otay Water District P2532-944-2 Reservoir Interior/Exterior Coating CommittedExpenditures Outstanding Commitment & Projected Final Cost ATTACHMENT B-3 – Budget Detail for P2535 SUBJECT/PROJECT: P2531-001103 P2532-001103 P2535-001103 Approve Change Order No. 7 to the Contract with Olympus & Associates, Inc. for the 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings & Upgrades Project Date Updated: 12/30/15 Budget 839,000 Planning - - - - Total Planning - - - - Design Standard Salaries 15,441 15,441 - 15,441 Professional Legal Fees 440 440 - 440 STUTZ ARTIANO SHINOFF Consultant Contracts 2,715 2,715 - 2,715 CSI SERVICES INC Service Contracts 4,610 4,610 - 4,610 MAYER 89 89 - 89 SAN DIEGO DAILY TRANSCRIPT Total Design 23,295 23,295 - 23,295 Construction Standard Salaries 125,000 114,328 10,672 125,000 Construction Contract 548,544 502,041 46,503 548,544 OLYMPUS & ASSOCIATES (43,803) (43,803) (43,803) OLYMPUS & ASSOCIATES - CO 07 Service Contracts 47 47 - 47 SAN DIEGO DAILY TRANSCRIPT 730 730 - 730 S & R TESTING SERVICES 3,515 3,515 - 3,515 FERGUSON WATERWORKS 666 666 - 666 CLARKSON LAB & SUPPLY INC 3,794 3,794 - 3,794 PSOMAS 3,081 3,081 - 3,081 PACIFIC PIPELINE 400 400 - 400 R&M SOLUTIONS 2,958 2,958 - 2,958 DJA INSPECTION 37,845 37,845 - 37,845 HDR-SPECIALTY INSPECTION 629 629 - 629 WATCHLIGHT CORPORATION 13,000 7,650 5,350 13,000 ALYSON CONSULTING-CM 372 372 - 372 NINYO & MOORE 63,435 63,435 - 63,435 RF YEAGER - SPECIALTY INSPECTION Equipment Charge 1,093 1,093 - 1,093 EQUIPMENT CHARGE Standard Materials 18 18 - 18 STANDARD MATERIALS Regulatory Agency Fees 38 38 - 38 PETTY CASH CUSTODIAN Project Closeout 5,000 - 5,000 5,000 Professional Legal Fees 5,000 - 5,000 5,000 Project Contingency - - - - 5% CONTINGENCY Total Construction 771,362 742,640 28,722 771,362 Grand Total 794,657 765,936 28,722 794,657 Vendor/Comments Otay Water District P2535-458-2 Reservoir Interior/Exterior Coating Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost "Cé ¹r $R $R $R ¹r ¹r $R ¹r ¹r B r a n d y w i n e A v e O l y m p i c P k w y Morro Point Dr W P o i n t D r Point Barrow Dr Point la Jolla Dr P o i n t D e f i a n c e C t Laguna Point Ct Malibu Point Ct Diablo Point Ct San Pedro Point Ct O l y m p i c P k w y 066065 ! VICINITY MAP PROJECT SITE NTS ?ò Aä ?Ë ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?p F P:\WORKING\CIP P2493 & P2535 624-2 & 458-2 Reservoir Coating\Graphics\Exhibits-Figures\458-2 Location.mxd OTAY WATER DISTRICT458-2 Reservoir Interior/ExteriorCoating and Upgrades EXHIBIT A-2 CIP P2535F 458-2 Tank1.75 MG Steel Reservoir OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA. 91978, (619) 670-2222 CONTRACT/P.O. CHANGE ORDER No. 7 PROJECT/ITEM: 944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coating & Upgrades CONTRACTOR/VENDOR: Olympus and Associates Inc. REF.CIP No.: P2531/P2532/P2535 APPROVED BY: Board REF. P.O. No: 718662 DATE: 12/17/15 DESCRIPTION: See attached page 2 of 3 for continuation. REASON: See attached page 2 of 3 for continuation. CHANGE P.O. TO READ: Revise Contract to deduct $87,259.87 and add 3 days time for a total Contract amount of $1,294,746.35 with a Contract Duration of 312 Calendar Days. ________________________________________________________________________________________________ ORIGINAL CONTRACT/P.O. AMOUNT: $ 1,206,008.00 ADJUSTED AMOUNT FROM PREVIOUS CHANGE: $ 175,998.22 TOTAL COST OF THIS CHANGE ORDER: $ (87,259.87) NEW CONTRACT/P.O. AMOUNT IS: $ 1,294,746.35 ORIGINAL CONTRACT COMPLETION DATE: 06/13/15 CONTRACT/P.O. TIME AFFECTED BY THIS CHANGE: Yes REVISED CONTRACT COMPLETION DATE: 09/11/15 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS, THAT THE CONTRACTOR/VENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES. IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O. ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O. REMAIN IN FULL FORCE AND EFFECT. CONTRACTOR/VENDOR: STAFF APPROVALS: SIGNATURE: PROJ. MGR : DATE: NAME : DIV. MGR : DATE: TITLE: DATE : CHIEF: DATE: COMPANY & Olympus & Associates, Inc. ASST. GM : DATE: ADDRESS: 405 Lovitt Lane DISTRICT APPROVAL: Reno, NV 89506 GEN. MANAGER: DATE: COPIES: o FILE (Orig.), o CONTRACTOR/VENDOR, o CHIEF-ENGINEERING, o CHIEF-FINANCE, o ENGR. MGR. o ACCTS PAYABLE, o INSPECTION, o PROJ. MGR., o ENGR. SECRETARY, o PURCHASING, o PROJECT BINDER Contract / P.O. Change Order No. 7 page 2 of 3 Description of Work Description Increase Decrease Time Item No. 1: Reimbursement for liquidated damages from September 11, 2015 until Substantial Completion on December 3, 2015 (83 Calendar days at $1,000/calendar day) $83,000.00 0 Item No. 2: Reimbursement for asphalt concrete removal, base repair and replacement of damaged asphalt concrete paving at the 458-2 Reservoir. ($0.75/SF Base Remove/Replace and $12.00/SF Asphalt 0”-6”) (Credit 180 SF at $12.75/SF) $2,295.00 0 Item No. 3: Add 3 calendar days due to weather impacts per Contract Specifications 00700-8.5 $0.00 $0.00 3 Item No. 4: Reimbursement for District labor and equipment costs to replace the existing 14-inch butterfly valve at the 458-2 Reservoir. $1,508.18 0 Item No. 5: Reimbursement for additional inspection costs outside normal work hours per Section 00800-1.2 at the 944-1 Reservoir. $375.00 0 Item No. 6: Reimbursement for 1.5” Grind and Pave of damaged asphalt concrete paving at the 944-2 Reservoir. ($11.67 1.5” Grind & Pave) (Credit 7 SF at $11.67/SF) $81.69 Sub Total Amount $0.00 $87,259.87 3 Total Net Change Order Amount ($87,259.87) Reason: Item No. 1: Pursuant to contractual provisions, failure of the Contractor to complete the work within the time allowed will result in damages being sustained by the District for each calendar day the Contractor fails to substantially complete all work. The adjusted Contract complete date was September 11, 2015 and substantial completion was achieved on December 3, 2015 resulting in 83 days of liquidated damages. This change order is required to reimburse the District for costs associated with the Contractor not completing the project within the allotted time. Item No. 2: The Contractor damaged existing asphalt concrete paving including base materials at the 458-2 Reservoir. In lieu of replacing the damaged asphalt concrete paving the contractor elected to utilize the District’s 2016 As-Needed Paving Services Contract pricing to reimburse the District for the associated repair cost. This change order is required to reimburse the District for costs associated with damaged asphalt concrete replacement at the 458-2 Reservoir. Item No. 3: Contract Documents Section 00700-8.5 provides for no cost time extensions due to weather impacts on the project progress. Weather impacted the project three (3) days between September and October 2015. The project was impacted on September 15, October 5 and October 16, 2015 due to weather. Item No. 4: During sandblasting operations at the 458-2 Reservoir the Contractor damaged the existing to remain 14-inch butterfly valve on the reservoir fill line. The Contractor purchased and tested a replacement valve, however they were not licensed to complete the valve replacement and elected to utilize District staff to complete the work. This change order is required to reimburse the District for labor and equipment costs associated with the valve replacement. Contract / P.O. Change Order No. 7 page 3 of 3 Item No. 5: Contract Documents Section 00800-1.2 provides for reimbursement of additional expenses of Owner’s personnel and inspection services resulting from work outside normal working hours. The Contractor requested and was granted authorization to work on November 14 and November 28, 2015 with the provision for reimbursement of additional inspection costs. The delta between overtime and regular time inspection costs is $25/hr. A total of 15 hours of overtime inspection was provided requiring premium time reimbursement. This change order is required to reimburse the District for additional costs associated with providing inspection outside normal working hours as requested by the Contractor. Item No. 6: The Contractor damaged existing asphalt concrete paving at the 944-2 Reservoir. In lieu of replacing the damaged asphalt concrete paving the contractor elected to utilize the District’s 2016 As-Needed Paving Services Contract pricing to reimburse the District for the associated repair cost. This change order is required to reimburse the District for costs associated with damaged asphalt concrete replacement at the 944-2 Reservoir. Print | Close Window Subject: Rain Day 9/15 From: lyndsey1282@gmail.com Date: Wed, Sep 16, 2015 8:30 am To: Douglas Cook <dcook@alysonconsulting.com>, kcameron@otaywater.gov Good morning, We would like to request a rain day credit for yesterday. Thank you for your time and consideration. Sincerely, Lyndsey Sent from my iPhone Copyright © 20032015. All rights reserved. Print | Close Window Subject: 10/05/2015_Rain Day From: Gtsiopos <gtsiopos@aol.com> Date: Tue, Oct 06, 2015 1:52 pm To: dcook@alysonconsulting.com, kcameron@otaywater.gov Hello, We would like to request a rain day for yesterday as both of our sites were shut down due to the rain. Thank you, Lyndsey Tsiopos Copyright © 20032015. All rights reserved. Print | Close Window Subject: 4582 Weather Day and Permission to Work Saturday From: Gtsiopos <gtsiopos@aol.com> Date: Fri, Oct 16, 2015 10:54 am To: dcook@alysonconsulting.com, kcameron@otaywater.gov Good Morning, We were unable to work today due to the weather. We would like to request a weather ay as we had to send everyone home. Secondly, we would like permission to work tomorrow to mop the tank roof. This was the plan for today but we are now unable to do so. There will be no surface preparation or inspection necessary. All we will be doing is mopping and cleaning the roof for the coating application as scheduled for Monday. Please let me know if this is possible. Thank you, Lyndsey Copyright © 20032015. All rights reserved. y PO~~sHE~'~~ ~ ~ , a~ ...medicated to (',oE~~«~w,ity Sen~ice .~ G 2554 SWEETWATER SPRINGS BOULEVARD, SPRING VALLEY. CALIFORNIA 91978-2096 ~~tc~("~ TELEPHONE: 670-2222, AREA CODE 619 December 4, 2015 INVOICE #CWK-00014 WO 988 Olympus &Associates, Inc. Attn: Lazarus Tsiapos 405 Lovitt Lane Reno, NV 89506 RE: Date of Loss: 10/28/15 Occurrence: This work order is labor and equipment charges, for the replacement of inlet valve to 458 tank. It was originally changed out at Otay's expense. However, the contractor damage the new valve so contractor is being billed for the change out this time. Below is the final billing for the above work order. (To ensure proper credit, please return one copy of invoice with your payment in the enclosed envelope) If you have any question regarding this invoice, please call Kevin Cameron at 619.670.2248. LABOR: (Amounts include base pay, overtime and fringe and overhead %calculations) Dept 3225--Water Systems Operations Dept EQUIPMENT: VE174 Class 7 Service/Utility Body VE202 Class 4 Contractors Body VE177 Compact Car VE168 Class 2 Pick Up INVOICE TOTAL No. of Hours 13.00 1, 389.58 1, 389.58 3.00 44.10 3.00 34.50 1.00 10.00 3.00 30.00 118.60 1,508.18 ATTACHMENT B STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 2016 SUBMITTED BY: Stephen Beppler Senior Civil Engineer Bob Kennedy Engineering Manager PROJECT: S2033-003103 DIV. NO.: 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Reject Lowest Bid by GRFCO, Inc. and Award of a Construction Contract to Transtar Pipeline, Inc. for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board): 1. Reject the lowest bid by GRFCO, Inc. for being non-responsive for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project; and 2. Award a construction contract to the second lowest bidder Transtar Pipeline, Inc. (Transtar) and to authorize the General Manager to execute an agreement with Transtar for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project in an amount not-to-exceed $970,970 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: For the Board to reject the lowest submitted bid by GRFCO, Inc. for being non-responsive and obtain Board authorization for the General Manager to enter into a construction contract with the second lowest 2 bidder, Transtar, for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project in an amount not-to-exceed $970,970. ANALYSIS: The District provides sanitary sewer collection service in the Jamacha drainage basin located in the northern area of the District. Deficiencies throughout the sewer service area have been observed and documented by closed-circuit television inspection and condition assessment. This phase of sewer improvements consists of sewer system repairs at 14 locations within the Rancho San Diego Basin (see Exhibit A for Project location). This Project is one of several that will address the noted deficiencies to maintain the sewer collection system. The sewer improvements involve the replacement of approximately 3,252 linear feet of 8-inch gravity sewer, four (4) new sewer manholes, reconnection of sewer lines and laterals, maintaining sewer service, restoration of pavement and landscaping, removal of trees, traffic control, erosion control, protection of existing utilities, and all testing and inspection as required by the Contract Documents. The Project was advertised on October 14, 2015 on the District’s website and several other publications, including the San Diego Union-Tribune. A Pre-Bid Meeting was held on October 29, 2015, which was attended by one (1) general contractor, followed by a site visit to those areas of work that are on private property. Two (2) addenda were sent out to all bidders and plan houses to distribute the County of San Diego Excavation Permit and address questions and clarifications to the contract documents during the bidding period. Bids were publicly opened on November 17, 2015, with the following results: CONTRACTOR TOTAL BID AMOUNT 1 GRFCO, Inc. Brea, CA $958,200.00 2 Transtar Pipeline, Inc. San Diego, CA $970,970.00 3 Wier Construction Escondido, CA $1,021,196.00 4 Paul Hanson Equipment, Inc. El Cajon, CA $1,027,432.00 5 Palm Engineering Construction Co., Inc. San Diego, CA $1,152,720.00 6 Burtech Pipeline, Inc. Encinitas, CA $1,474,564.00 3 The Engineer’s Estimate is $950,000. A review of the bids was performed by District staff, during which several irregularities were identified in the GRFCO bid documents. The irregularities documented in Exhibit B include: 1. Insufficient response to Company Background Questionnaire – Form G, Question 4.3 regarding apparent apprenticeship violations of the State of California Labor Code; 2. Failure to disclose current debarment of company officer George Frost by the City of San Diego in Company Background Questionnaire – Form G, Question 5.2; 3. Failure to provide safety data for three (3) most recent years in Company Safety Questionnaire – Form H (only two years provided); and 4. Failure to include a copy of the two addenda issued for the Project with the bid package, as directed in the addenda. These irregularities were determined to be significant enough to reject the GRFCO bid proposal for being non-responsive. GRFCO provided a response to the letter in an email (Exhibit C). This has not altered the District’s decision on the non-responsiveness of their bid. For General Counsel’s opinion on the District’s ability to reject the GRFCO bid proposal, refer to Exhibit D. In addition, a bid protest was filed by the third low bidder, Wier Construction (Exhibit E), claiming the first and second low bidders were non-responsive for not acknowledging the addenda in accordance with provided instructions. District staff and General Counsel analyzed the protest and provided a response (Exhibit F) indicating that the claim was valid against GRFCO, but not Transtar. Staff reviewed the second lowest bid, which was submitted by Transtar, for conformance with the contract requirements and discovered that Transtar had minor irregularities in one document such as the Company Safety Questionnaire - Form H was not signed. It was also noted that, notwithstanding the irregularities, Transtar has a spotless safety record. Transtar was advised of the missing signature and follow-up question data (Exhibit G) and a signed Form H was submitted (Exhibit H) with no changes to the answers and missing information added. The irregularities in Transtar’s bid were thus determined not to be significant enough to deem their bid non- responsive as it was limited to one document and did not affect price or provide an advantage. Accordingly, staff determined that Transtar was the lowest responsive and responsible bidder. Transtar holds a Class A, General Engineering, Contractor’s License, which meets the contract 4 document’s requirements, and is valid through June 30, 2016. The reference checks indicated a very good to excellent performance record on similar projects. An internet background search of the company was performed and revealed no outstanding issues with this company. Staff verified that the bid bond provided by Transtar is valid. Staff will also verify that Transtar’s Performance Bond and Labor and Materials Bond are valid prior to execution of the contract. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP S2033, as approved in the FY 2016 budget, is $6,000,000. Total expenditures, plus outstanding commitments and forecast including this contract, are $2,691,654.22. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget for CIP S2033 is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. SB/BK:jf P:\WORKING\CIP S2033 Sewer System Rehabilitation\Staff Reports\BD 02-03-16 RSD Ph 1 Constr\BD 02-03-16 Staff Report RSD Basin Sewer Rehab Phase 1 Award Construction Project.Docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map Exhibit B – District Rejection of GRFCO Non-Responsive Bid Proposal Exhibit C – GRFCO Email Response to Bid Rejection 5 Exhibit D – General Council Memo on Bid Responsiveness Exhibit E – Wier Construction Bid Protest Letter Exhibit F – District Response to Bid Protest Exhibit G – District Letter to Transtar on Form H Exhibit H – Transtar Letter with Signed Form H ATTACHMENT A SUBJECT/PROJECT: S2033-003103 Reject Lowest Bid by GRFCO, Inc. and Award of a Construction Contract to Transtar Pipeline, Inc. for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on January 19, 2016, and the following comments were made: Staff recommended that the Board: o Reject the lowest bid by GRFCO, Inc. for being non- responsive for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project; and o Award a construction contract to the second lowest bidder Transtar Pipeline, Inc. (Transtar) and to authorize the General Manager to execute an agreement with Transtar for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project in an amount not-to-exceed $970,970 Staff indicated that the District is in the process of addressing sanitary sewer collection system deficiencies identified by closed-circuit television inspection and condition assessment. It was noted that this phase of sewer improvements consists of repairs at 14 locations within the Rancho San Diego Basin. The sewer improvements involve the replacement of about 3,252 feet of 8-inch gravity sewer, 4 new sewer manholes, sewer reconnections, surface restoration, traffic control, and other work as required by the Contract Documents. Staff discussed the bid process and indicated that six (6) bids were received on November 17, 2015, ranging from $958,200 to $1,474,564. The engineer’s estimate is $950,000. It was noted that the bid of the apparent low bidder GRFCO was reviewed by staff and several irregularities were identified, with four (4) of particular note to find the bid non-responsive. One of the items, the failure to include a copy of the issued addenda with the bid package, as called for in the addenda, was the basis of a bid protest filed by the third low bidder Wier Construction. Staff also stated that the bid protest also contended that the second low bidder Transtar also did not include the addenda with their bid; but this claim was not valid. GRFCO provided a response to the rejection of their bid which did not alter the District’s decision on their non-responsiveness. Staff reviewed Transtar’s bid and an irregularity was identified in Form H, Company Safety Questionnaire, with the form not signed and several follow-up question data missing. After consulting with General Counsel, Transtar was advised of the issue and they furnished a completed signed form with no changes to questions already answered from the version included in the Bid. Staff noted that the irregularity of the Transtar bid was not deemed significant enough to find their bid non-responsive. Staff determined that Transtar is the lowest responsive and responsible bidder. No issues were discovered in reference checks and internet background search. Staff confirmed Transtar’s Class A Contractor’s License and active registration with the State Department of Industrial Relations (per SB854). Staff indicated that Transtar has not previously worked for the District. At the request of the Committee, staff stated that they will provide an update on the number of agencies that Transtar has worked with. Subsequently to the Commmittee’s request, staff reviewed Transtar’s references which indicated that the company has done work for the City of San Diego, City of Del Mar, Olivenhain Water District, and the State of California. Staff discussed that they are in the process of coordinating a timeline with Hillsdale High School, the contractor and the traffic control company to help minimize any impacts to the community. The Committee commented that coordinating with all parties should also help the District avoid or minimize change orders for the Project. The Committee inquired about the overall cost of this Project. Staff indicated this project is one of several projects that is included in the total budget for CIP S2033. It amounts to $6 million dollars and covers continual sewer improvement projects for six years. The Committee commented about the Engineer’s Estimate being lower than the proposed bids from candidates. Staff stated that inflation could be one reason bids came in higher than the Engineer’s Estimate. Staff stated that the estimate was based on the last project with Arrieta Construction, and during that time there was a recession. The Committee inquired if the November 30, 2015, Rejection Letter (Exhibit B) basically expressed the District’s right to reject any and all bids. Legal Counsel stated yes. In addition, Legal Counsel advised that the District has the right to reject bids that have any irregularities at all. It was noted that staff had determined there were four (4) irregularities in GRFCO’s bid proposal, which were significant enough to reject the proposal. It was noted that staff had determined there were four (4) irregularities in GRFCO’s bid proposal, which were significant enough to reject the proposal. In response to a comment from the Committee, staff indicated that they had contacted the third low bidder, Wier Construction, and confirmed that the company was satisfied with the District’s response to their bid protest. Following the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: S2033-003103 Reject Lowest Bid by GRFCO, Inc. and Award of a Construction Contract to Transtar Pipeline, Inc. for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project Bud Level Title1 Committed Expenditures Outstanding Commitment Projected Final Cost Vendor Planning Regulatory Agency Fees $100.00 $100.00 $0.00 $100.00 PETTY CASH CUSTODIAN Standard Salaries $220,584.09 $220,584.09 $0.00 $220,584.09 Total $220,684.09 $220,684.09 $0.00 $220,684.09 Design Consultant Contracts $152,957.78 $152,957.78 $0.00 $152,957.78 AEGIS ENGINEERING $20,720.00 $20,720.00 $0.00 $20,720.00 DARNELL & ASSOCIATES INC $21,445.89 $21,445.89 $0.00 $21,445.89 SOUTHERN CALIFORNIA SOIL $21,538.00 $21,085.50 $452.50 $21,538.00 NINYO & MOORE GEOTECHNICAL $6,995.00 $6,995.00 $0.00 $6,995.00 AIRX UTILITY SURVEYORS INC $71,183.15 $71,183.15 $0.00 $71,183.15 ARCADIS US INC Professional Legal Fees $1,000.00 $419.52 $580.48 $1,000.00 STUTZ ARTIANO SHINOFF Service Contracts $5,004.94 $4,065.33 $939.61 $5,004.94 MAYER REPROGRAPHICS $384.90 $384.90 $0.00 $384.90 SAN DIEGO DAILY TRANSCRIPT $333.20 $333.20 $0.00 $333.20 THE SAN DIEGO UNION-TRIBUNE $1,500.00 $1,500.00 $0.00 $1,500.00 CHICAGO TITLE Standard Salaries $491,071.77 $491,071.77 $0.00 $491,071.77 Total $794,134.63 $792,162.04 $1,972.59 $794,134.63 Construction Consultant Contracts $50,150.00 $30,150.00 $20,000.00 $50,150.00 ALYSON CONSULTING $2,400.00 $2,400.00 $0.00 $2,400.00 RBF CONSULTING $24,747.94 $24,747.94 $0.00 $24,747.94 CALIFORNIA BANK & TRUST Construction Contracts $470,210.77 $470,210.77 $0.00 $470,210.77 ARRIETA CONSTRUCTION $970,970.00 $0.00 $970,970.00 $970,970.00 TRANSTAR PIPELINE INC Regulatory Agency Fees $13,018.27 $13,018.27 $0.00 $13,018.27 COUNTY OF SAN DIEGO Reimbursement Agreements $11,675.00 $11,675.00 $0.00 $11,675.00 COUNTY OF SAN DIEGO Standard Salaries $133,663.52 $103,663.52 $30,000.00 $133,663.52 Total $1,676,835.50 $655,865.50 $1,020,970.00 $1,676,835.50 Budget $6,000,000.00 Total to Date $2,691,654.22 $1,668,711.63 $1,022,942.59 $2,691,654.22 Expenditures through November 25, 2015. OTAY WATER DISTRICTRANCHO SAN DIEGO BASINSEWER REHABILITATION PHASE 1 EXHIBIT A CIP S2033F P:\WORKING\CIP S2033 Sewer System Rehabilitation\Graphics\RSD Phase 1\S2033, RSD Sewer Basin Phase 1, Location Map, Dec 2015.mxd JAMACHA RD C H A S E A V VISTA GRANDE HILLSDALE RD TINA ST WILLOW GLEN DR HILLSDALE RD HIDDEN MESA RD VISTA GRANDE RD SUNDALE RD RD WIND RIVER RD D O N A H U E D R 745 734 723 771 722 733 729 773 728744 880 867 753 779 VICINITY MAP PROJECT SITE NTS DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë F 0 1,000500 Feet Legend Sewer Main Repairs (RSD Phase 1) Sewer Gravity Mains Sewer Manholes Site Number123 ...Qadicatvd fo Community Sen'ice 2554 SWEETWATER SPRINGS BOULEVARD,SPRING VALLEY,CALIFORNIA91978-2004 TELEPHONE:670-2222.AREA CODE 619 WWW.otaywater.gov Sent via electronic mail and Certified Return Receipt USPS 70151660000083624500 November 30,2015 Project No.:S2033-003102 George Frost GRFCO,Inc. P.O.Box 1747 Brea,CA 92822-1747 Subject:Rancho San Diego Basin Sewer Rehabilitation -Phase 1 (CIP S2033); Rejection of Non-Responsive Bid Proposal Dear Mr.Frost: The Otay Water District (District)has reviewed your bid proposal for the Rancho San Diego Basin Sewer Rehabilitation -Phase 1 (CIP S2033)submitted on November 17, 2015,and discovered several irregularities in your bid.As a result,your bid has been determined to be non-responsive.As stated in the Bid Proposal -Form A,the District reserves the right to reject any and all bids.The following irregularities in particular render the bid non-responsive: •Company Background Questionnaire - Form G,Question 4.3:Insufficient response regarding apparent apprenticeship violations of the State of California Labor Code. •Company Background Questionnaire -Form G,Question 5.2:Failure to disclose current debarment of the company officer George Frost by the City of San Diego. •Company Safety Questionnaire -Form H:The form requests safety data for the three most recent years,only two years,2013 and 2014,were provided. •Addenda Acknowledgement:Failure to include a copy of the two addenda with the bid package in accordance with the directions provided in the addenda. Please do not hesitate to contact me at 619-670-2209 if you have any questions in this matter. George Frost Rancho San Diego Basin Sewer Rehabilitation - Phase 1 (CIP S2033); Rejection of Non-Responsive Bid Proposal November 30,2015 Page 2 of 2. Sincerely, OTAY WATER DISTRICT Stephen Beppler,PE Senior Civil Engineer SB:jf cc:Rod Posada Bob Kennedy P:\WORKING\CIP S2033 Sewer System Rehabilitation\Design\8id Phase\RSD Phase HBid Opening\GRFCO bid rejeciion --RSD Basin Sewer Rehab Ph 1 docx 1 Steve Beppler From:Jim Jackson <grfcoinc@gmail.com> Sent:Tuesday, December 01, 2015 9:19 AM To:Steve Beppler Cc:Rod Posada; Bob Kennedy Subject:Re: RSD Basin Sewer Rehab Phase 1 - GRFCO Bid Rejection Attachments:12012015.pdf Follow Up Flag:Follow up Flag Status:Flagged Good Morning Mr. Beppler, Per your correspondence yesterday, GRFCO has the following comments: Form G, Question 4.3 - Per Chapter 2, Article 10 of the California Code 230.1 (attached), GRFCO notified the local apprenticeship programs (within the geographic area) prior to project commencements. The Laborer's Union via the DLSE cited GRFCO for not notifying a second apprenticeship program that was outside the geographic area. All claims have been appealed and are awaiting judgement. Therefore, there is no conviction, conviction date, or no disciplinary action. GRFCO contends that the question was answered correctly. Form G, Question 5.2 - The question reads "In the past 10 years...". Southern California Underground was debarred by the city of San Diego in June of 2000 which exceeds 10 years. GRFCO contends that the question was answered correctly. Form H - GRFCO had no payroll in 2012 and commenced building projects in 2013. GRFCO was only able to report the "two" most recent years; 2013 and 2014. 2012 was zero and thus left blank. GRFCO contends that the question was answered correctly. Addenda Acknowledgement - GRFCO twice recognized both addendums prior to bid: 1. Per Email on November 17th at 1:06 PM, GRFCO requested confirmation of two Addendums. At 1:08 PM, confirmation was received from the District. 2. On page 2 of 9 (Form A) of the bid proposal, GRFCO recognized Addendums 1 and 2. The Districts intent and purpose to have the bidding contractor (GRFCO) confirm recognition of all addendums has been met. GRFCO employee's have had recent success in building a District project. At your convenience, GRFCO respectfully requests a conference with yourself and/or Mr. Rod Posada to discuss these items in greater detail. Time is of the essence. Please respond as soon as possible. Thank you for your time, Jim Jackson 2 On Tue, Dec 1, 2015 at 8:09 AM, Steve Beppler <Steve.Beppler@otaywater.gov> wrote: Per your voicemail request this morning, please find attached a copy of your bid proposal for the Rancho San Diego Basin Sewer Rehabilitation Phase 1 project. Stephen Beppler, P.E. Senior Civil Engineer Phone: (619) 670‐2209 Fax: (619) 670‐8920 steve.beppler@otaywater.gov Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, CA 91978 From: Steve Beppler Sent: Monday, November 30, 2015 5:02 PM To: 'grfcoinc@gmail.com' <grfcoinc@gmail.com> Subject: RSD Basin Sewer Rehab Phase 1 - GRFCO Bid Rejection Dear Mr. Frost, Otay Water District regrets to inform you that your bid for the subject project has been determined to be non‐responsive. Please see the attached letter for specifics. Stephen Beppler, P.E. 3 Senior Civil Engineer Phone: (619) 670‐2209 Fax: (619) 670‐8920 steve.beppler@otaywater.gov Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, CA 91978 Click here to report this email as spam. December 2,2015 to Community Se/twee 2554 SWEETWATER SPRINGS BOULEVARD,SPRING VALLEY.CALIFORNIA 91978-2004 TELEPHONE:670-2222,AREA CODE 619 WWW.otaywaler.gov Sent via electronic mail and USPS Project No.:S2033-003102 Alan Nichols Wier Construction Corporation 2255 Barham Drive Escondido,CA 92029 Subject:Rancho San Diego Basin Sewer Rehabilitation -Phase 1 (CIP S2033); Letter of Protest of Bid dated November 17,2015 Dear Mr. Nichols: Thank you for your interest in the subject project and for bringing your concerns regarding the responsiveness of certain bids to our attention.The Otay Water District ("District")takes any inquiries seriously and has received and reviewed your November 23,2015 Letter of Protest of Bid dated November 17,2015 (the "Protest Letter")related to the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 project (CIP S2033),which opened bids on November 17,2015.In your Protest Letter,you contend that there are irregularities with the bids of GRFCO,Inc.("GRFCO")and Transtar Pipeline,Inc.("Transtar"),the apparent lowest and second lowest bidders,due to your claim that they did not properly address the acknowledgement of the two (2) project addenda issued.Accordingly,you requested that these two (2)bids be deemed non-responsive and rejected and that the contract be awarded to Wier Construction Corporation as the lowest responsive and responsible bidder. As you are aware,the District,at its discretion,may waive minor irregularities that do not affect the bid price or provide an advantage.Even if the District is not required to do so,the law allows it to make that election.Minor irregularities may include such things as math errors in the bid tabulation,as was the case in your own bid submittal. Ultimately,however,in assessing the responsiveness of a bid,each irregularity is weighed on its own merit and also with other irregularities that may be discovered in the bid.The District alone determines if a bid is responsive or not,including whether or not to waive any irregularities. Regarding your particular items of protest,all of the bidders acknowledged receipt of the two (2)addenda issued for the project on Page 2 of the Bid Proposal -Form A.You are correct,however,that GRFCO did not include a copy of the two (2)Addenda in their bid package,which has been noted in the District's evaluation of the bids submitted. Your claim against Transtar,on the other hand,is not accurate.Transtar did include the requested pages indicated in the language of the addenda.Please note that Addendum Alan Nichols Rancho San Diego Basin Sewer Rehabilitation - Phase 1 (CIP S2033); Letter of Protest of Bid dated November 17,2015 December 2,2015 Page 2 of 2. No.1 has Page 1 of 1 at the bottom of the sheet.The addendum does not ask for all attachments to be included in the acknowledgement submittal.The same is true for Addendum No.2,which is two pages long,indicated by Page 1 of 2 and Page 2 of 2 at the bottom of the sheets.Accordingly,there are no irregularities with the Transtar acknowledgement of the Addenda. Again,we appreciate your attention and responsiveness to this matter.The District has assessed the submitted bids and reviewed all noted irregularities in determining the responsiveness of each bid proposal.We are in the process of finding the GRFCO bid proposal non-responsive and rejecting it for multiple irregularities in their bid proposal, including the Addenda acknowledgements,and moving forward with awarding the project to Transtar,now deemed the lowest responsive and responsible bidder.We thank you again for your bid proposal and interest in ensuring that all bids are properly reviewed. Please do not hesitate to contact me at 619-670-2209 if you have any questions in this matter. Sincerely, OTAY WATER DISTRICT Stephen Beppler,PE Senior Civil Engineer SB:jf cc:Rod Posada Bob Kennedy P \WORKING\C!P S2033 Sewer System Rehabilitation\Design\Bid Phase\RSD Phase 1\Bid Opening\Letter-Wier-BidProtestResporise_2015-12-C2.docx OTAY ed to Community 2554 SWEETWATER SPRINGS BOULEVARD.SPRING VALLEY,CALIFORNIA 91978-2004 TELEPHONE:670-2222,AREACODE 619 www.otaywater.gov December 2,2015 Sent via electronic mail and USPS Project No.:S2033-003102 John Brito Transtar Pipeline,Inc. 10467 Roselle Street San Diego,CA 92121 Subject:Rancho San Diego Basin Sewer Rehabilitation -Phase 1 (CIP S2033); Bid Proposal -Company Safety Questionnaire -Form H Certification Dear Mr.Brito: The Otay Water District (District)has reviewed your bid proposal for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 (CIP S2033)project submitted on November 17,2015.The District has discovered that in Section 00470,Company Safety Questionnaire -Form H,the Signature line is blank.There are also several questions (1.a.,2.j.,3.c,3.d.and 5.a.)that were answered,but the additional information requested was not provided.A copy of the submitted Form H is attached for your reference.Please submit a new signed and dated copy of Form H that includes the missing clarifications to the questions indicated above.Note that the District will not accept any changes to answers already provided at this time. Please do not hesitate to contact me at 619-670-2209 if you have any questions.Your timely response to this letter is greatly appreciated. Sincerely, OTAY WATER DISTRICT Stephen Beppler,PE Senior Civil Engineer SB:jf Attachment:Copy of Submitted Form H cc:Rod Posada Bob Kennedy P:\WORKING\CIP S2033 Sewer Sysiem RehabihtationVDesgrrtBid Phase\RSO Phase 1\Bid Openmg\Letler-Transtar-Bid_FormH_Certificalion_2015-12-02 docx SECTION 00470 COMPANY SAFETY QUESTIONNAIRE (FORM H) Company Name: Person Completing Form (Print):. Signature;__ Title: Date:jj/j y/j£> .Phone Number: IMPORTANT:Falsifying information or failure to provide known information could jeopardize or defay award of a contract. SAFETY PERFORMANCE 1 -List your company's Interstate Experience Rating Modifier (ERM)for the three most recent years. 2.List your company's number of injuries/illnesses from your OSHA 300 logs for the three most recent years. 20 /"'/20 J3 20 JA a.Fatalities b.OSHA recordable incidents c.Lost work day incidents _ d.Total lost work days e.Total hours worked 3.Please provide copies of the following upon award:Check if Available a.OSHA 300 logs for the most recent three years and current year-to-date b.Verification of ERM from your insurance carrier c.Injury/Illness Report H^ d.Complete written Safety Program [Z-K e.Training Plans f^K f.Training Certificates for Employees 0^ 9.Emergency Response Training Q' Primary contractors must submit all information requested on No. 3 (a-g)to the District.Subcontractors must submit information (a-c) to the District and d-g to the primary contractor and should be made available to the District upon request. 4-Company Safety Contact a.Name: b-Phone:3 ~& Rancho San Diego Basin Sewer Rehabilitation -Phase 1 October 2015 Company Safety Questionnaire-FORM H 00470-Page 1 of 4 SAFETY PROGRAM 1.SAFETY PROGRAM DOCUMENTATION Circle One a.Do you have a written safety program manual?dS?No Last revision date b.Do you have a written safety field manual?rYes)No c.Are all workers given a booklet that contains work rules, responsibilities and other appropriate information?(¥es)No 2.POLICY AND MANAGEMENT SUPPORT a.Do you have a safety policy statement from an officer of the company?(yes b.Do you have a disciplinary process for enforcement of your safety ^__^program?^)No c.Does management set corporate safety goais?tf&D No d.Does executive management review: U Accident reports? LJ inspection reports? □Safety statistics? e.Do you safety pre-qualify subcontractors?(3JD No f.Do you have a written policy on accident reporting andinvestigation?/fes)No g.Do you have a light-duty,return-to-work policy?60 ^° h. Is safety part of your supervisor's performance evaluation?<J^~)No i.Do you have a personal protective equipment {PPE)policy?^S~)No j.Do you have a written substance abuse program?(^®V NoIfyes,check which apply:<~—*' D Pre-emp!oyment testing □Return to duty testing □Random testing □Disciplinary process I—I Reasonable cause testing LH Alcohol Testing□Post accident testing □National Institute on Drug Abuse L_J Panel Screen k.Does each level of management have assigned safety duties andresponsibilities?fYeP No Rancho San Diego Basin Sewer Rehabilitation -Phase 1 Company Safety October 2015 Questionnaire -FORM H 00470 -Page 2 of 4 3.TRAINING AND ORIENTATION Circle One a.Do you conduct safety orientation training for each employee?/^es)No b.Do you conduct site safety orientation for every person new to the j°b?/fes)No c.Does your safety program require safety training meetings for each supervisor (foreman and above)?How often?D Weekly D Monthly □Quarterly □Annually d.Do you hold tool box/tailgate safety meetings focused on yourspecificworkoperations/exposures?fYelP)No□Weekly □Daily ^— e.Do you require equipment operation/certification training?/Yes~)No 4.ADMINISTRATION AND PROCEDURES a.Does your written safety program address administrativeprocedures?f Yes)No If yes,check which apply: bj,Pre-project/task planning u3/-Record keeping 0/Safety committees□HAZCOM 0,Substance abuse prevention La Return-to work b.Do you have project safety committees? --Emergency procedures ^Audits/inspections Accident investigations/reporting Training documentation Hazardous work permits Subcontractor prequaiification c.Do you conductkSb site safety inspections?How often?□Daily 0 Weekly □Monthly d.Do these inspections include a routine safety inspection of equipment (e.g.scaffold,ladders,fire extinguishers,etc.)? e.Do you investigate accidents?How are they reported? No No No No Total company By project By foreman LJ,By superintendent \—lyBy project manager 0 In accordance with OSHA f.Do you discuss safety at all preconstruction and progress ^^~^\meetings?(tS^No g.Do you perform rigging and lifting checks prior to lifting?ypg No 0 For personnel D For equipment □Heavy lifts (more than 10,000 lbs) Rancho San Diego Basin Sewer Rehabilitation -Phase 1 October 2015 Company Safety Questionnaire -FORM H 00470-Page 3 of 4 5.WORK RULES Circle One a.Do you periodically update work rules? When was the last update? b.What work practices are addressed by your work rules?Check all that apply. Ej/CPR/first aid □Access-entrances/stairsLaBarricades,signs,and signals ED Respiratory protection D Blasting D Material handling/storage U Communications D Temporary heat Lj Compressed air and gases LT!Vehicle Safety□Concrete work ^Traffic control □Confined-space entry D Site visitor escortingLJCranes/rigging and hoisting d Public protectionDElectricalgroundingDEquipmentguards and grounding □Environmental controls and HI Monitoring Equipment /Occupational health L~D Flammable material handfing/storage0Emergencyprocedures□Site sanitation □Fire protection and prevention 01 renching and excavating U Floor and wall openings EH Lockout/Tagout D Fall protection D Energized/pressurized equipment LMHousekeeping □Personal protective equipment \M Ladders and scaffolds CH Tools,power and hand U Mechanical equipment □Electricai power lines □Welding and cutting (hot work)D Other 6.OSHA INSPECTIONS a.Have you been inspected by OSHA in the last three years?Yes (]$oj b.Were these inspections in response to complaints?Yes No c.Have you been cited as a result of these inspections?Yes No if yes,describe the citations: Rancho San Diego Basin Sewer Rehabilitation -Phase 1 Company Safety October 2015 Questionnaire -FORM H 00470-Page 4 of 4 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 2016 SUBMITTED BY: Jose Martinez Asst. Chief Water Operations PROJECT: DIV. NO. All APPROVED BY: Pedro Porras, Chief Water Operations German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Approval To Purchase One (1) Replacement Class 4 Utility Truck GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to issue a purchase order to Orange Coast Dodge in the amount of $114,542.00 for the purchase of one (1) replacement Class 4 Utility Truck and declare Unit 154 surplus. COMMITTEE ACTION: See Attachment “A.” PURPOSE: To obtain Board authorization to purchase one (1) replacement Class 4 Utility Truck. ANALYSIS: Included in the approved FY 2016 budget, as Item 21 under Capital Purchases, is one (1) replacement Class 4 Utility Truck. The purchase is to replace Unit 139, Pump Electrical Utility Service Truck. This unit is utilized for the District’s day-to-day maintenance of pump station facilities including but not limited to pumps, motors, air compressors, etc. Unit 139 is a 2003 Ford F550 truck with 94,891 miles and has a service body, air compressor, and a 15-foot reach 3,200 lb. lifting capacity crane attached. In order to effectively manage the District’s fleet, Unit 139 will be rotated into the fleet replacing Unit 154, which belongs to the Meter Maintenance section. Unit 154 is a 2004 Ford F550 with 121,000 miles and has a service body, air compressor, and crane attached. While Unit 139 is one year older, Unit 154 has 27,000 more miles and the attached service body was reused from a previous vehicle. The service body of Unit 154 is in excess of 16-years-old and has a considerable amount of rust and corrosion on the underside of the bed and lower cabinets. Based on system operation evaluations of work flow history by the Fleet Maintenance Supervisor, Pump Electrical supervision, and management, it is recommended that one (1) new Class 4 Utility Truck be purchased to replace Unit 139. Unit 139 will be rotated into the fleet replacing Unit 154, and Unit 154 will be declared surplus. This action will save the District approximately $10,000 by eliminating the need to replace a service body on a 12-year- old truck and rotating a lower mileage unit into its position. In accordance with District policy, bids were solicited for the Class 4 Utility Truck. Three (3) bids were received. Prices received include all applicable fees and taxes and delivery. Funding for this purchase has been included in CIP P2282, Vehicle Capital Purchases Program. Dealer Bid Price Orange Coast Dodge $114,542 Miramar Ford $116,002 Tuttle Click Ford $120,389 Staff is purchasing a 2016 Dodge Ram 5500 with a service body, crane and air compressor included for a not-to-exceed amount of $114,542 which is $25,458 less than budgeted. FISCAL IMPACT: Projected purchase budget for one (1) Class 4 Utility Truck is $140,000 based on preliminary research. The purchase of the truck will cost $114,542 which will be charged against the Vehicle Capital Purchases CIP P2282. The total cost in this account will not exceed budgeted funding. The total FY16 project budget for the CIP P2282, Vehicle Capital Purchases is $556,000. Existing expenditures and current encumbrances for the CIP, including the one (1) Class 4 Utility Truck purchased under this request if approved, are $114,542.00. Based on the evaluation, the CIP P2282 budget is sufficient to complete the budgeted purchase. The Finance Department has determined that 100% of the funds are available in the replacement fund. Expenditure Summary: Total CIP 2282 Vehicle Replacements FY16 Budget: $556,000 Proposed One (1) Class 4 Utility Truck. ($114,542) Approved Vactor truck replacement. ($402,831) Proposed Replacement bed for Unit 184. ($11,000) Projected CIP P2286 FY16 Under Budget: $27,627 STRATEGIC GOAL: Operate the system to meet demand twenty-four hours a day, seven days a week. LEGAL IMPACT: None. General Manager Attachment “A,” Committee Action ATTACHMENT A SUBJECT/PROJECT: Approval to Purchase one (1) Class 4 Utility Truck COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on September 23, 2015 and the following comments were made: Staff is requesting that the Board authorize a purchase order to Orange Coast Dodge in the amount of $114,542 for the purchase of one (1) replacement Class 4 Utility Truck and declare Unit 154 as surplus. The Class 4 Utility Truck was included in the approved FY 2016 budget as Item 21 under Capital Purchases. The Class 4 Utility Truck will replace Unit 139, Pump Electrical Utility Service Truck. Staff solicited bids for a Class 4 Utility Truck in accordance with District policy. Three (3) bids were received and Orange Coast Dodge had the lowest responsive bid at $114,542. The bid is $25,458 less than budgeted. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 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: Appointment of Auditor for Fiscal Year Ending June 30, 2016 GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to sign the engagement letters from the auditing firm of Teaman, Ramirez & Smith, Inc., to contract for audit services for the 2016 fiscal year. COMMITTEE ACTION: Please see Attachment A. PURPOSE: The District is required to retain the services of an independent accounting firm to perform an audit of the District’s financial records each year. ANALYSIS: At the Board meeting on January 7, 2014, the Board approved Teaman, Ramirez & Smith, Inc., as the District’s auditors for a 1-year contract, with four (4) 1-year options, with each option year subject to Board review and approval. On February 2, 2015, the Board authorized the General Manager to engage Teaman, Ramirez & Smith, Inc., for the second option year for the FY 2016 audit. Staff is recommending the appointment of Teaman, Ramirez & Smith, Inc. as the District’s auditors for FY 2016, in conjunction with the second 1-year contract option. This is based on their staff’s knowledge of the District’s operations and finances, their technical qualifications, and their performance as the District’s auditors during the FY 2014 and FY 2015 audits. The audit will consist of four major components: 1) Standard Audit Services, to provide an audit opinion on the District’s financial statements; 2) Agreed upon procedures related to the District’s Investment Policy procedures, to issue a report on staff’s compliance with District policy; 3) A State Controllers Report, required by the State of California; and 4) Assistance in preparation of the District’s Comprehensive Annual Financial Report (CAFR). The following is a tentative planning schedule for the major activities involved in completing the FY-2016 financial audit: May-2016: Pre-audit fieldwork (3–4 days). Aug-2016: Year-end audit fieldwork (4–5 days). Nov-2016: Board presentation of the audited financial statements. Dec-2016: CAFR submission to Government Finance Officers Association (GFOA). FISCAL IMPACT: The fee for auditing services for the Fiscal Year ending June 30, 2016, will be $27,000. This is an increase of $700 over the prior year’s fee. STRATEGIC GOAL: The District ensures its continued financial health through long-term financial planning, formalized financial policies, enhanced budget controls, fair pricing, debt planning, and improved financial reporting. LEGAL IMPACT: Required by law. Attachments: A) Committee Action Form B) Teaman, Ramirez & Smith, Inc. Audit Engagement Letter C) Teaman, Ramirez & Smith, Inc. State Controllers Report Engagement Letter D) Teaman, Ramirez & Smith, Inc. Agreed Upon Procedures Engagement Letter ATTACHMENT A SUBJECT/PROJECT: Appointment of Auditor for Fiscal Year Ending June 30, 2016 COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on January 20, 2016 and the following comments were made: Staff is requesting that the Board approve the engagement letter with Teaman, Ramirez & Smith, Inc. (TRS) for audit services for FY 2016. The fees for the FY 2016 audit services is $27,000, which is an increase of $700 over last year. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. •I C>SC TEAMAN, RAMIREZ & SMITH, INC. I ~ CERTIFIED PUBLIC ACCOUNTANTS Joseph Beachem, Chief Financial Officer Otay Water District 2554 Sweetwater Springs Blvd Spring Valley, CA 91778-2004 December 17, 2015 We are pleased to confirm our understanding of the services we are to provide the Otay Water District (the "District") for the year ended June 30, 2016. We will audit the financial statements of the business- type activities, and each major fund, including the related notes to the financial statements, which collectively comprise the basic fmancial statements, of the Otay Water District as of and for the year ended June 30, 2016. Accounting standards generally a~cepted in the United States provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to supplement the District's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Government Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical contest. As part of our engagement, we will apply certain limited procedures to the District's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist principally of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1. Management's Discussion and Analysis 2. Schedule of Funding Progress for DPHP 3. Schedule of Changes in the Net Pension Liability and Related Ratios 4. Schedule of Contributions The following other information accompanying the financial statements will not be subjected to the ·auditing procedures applied in our audit of the financial statements, and for which our auditors' report will not provide an opinion or any assurance on that other information. 1. Introductory Section 2. Statistical Section Audit Objectives The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and; the standards for fmancial audits contained in Government Auditing Standards, issued by Richard A. Teaman, CPA • David M. Ramirez, CPA • Javier H. Carrillo, CPA 4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 FAx • www.trscpas.com .... ":,"/"-.. -4 . ~ '_:0i£ B-1 the Comptroller General of the United States, and will include tests of the accounting records of the District and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the District’s financial statements. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add an emphasis-of-matter or other-matter paragraph. If our opinion is other than unqualified, we will discuss the reasons with you in advance. If our opinions on the financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Audit Procedures - General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the District or to acts by management or employees acting on behalf of the District. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors or any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform the B-1 appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditor is limited to the period covered by our audit and does not extent to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards. Audit Procedures - Internal Controls Our audit will include obtaining an understanding of the District and its environment, including internal control sufficient to assess the risk of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. Audit Procedures - Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Other Services We will also assist in preparing the financial statements and related notes of the District in conformity with U.S. generally accepted accounting principles and prepare the State Controller’s Report (see separate engagement letter) in conformity of the requirements of the California State Controller’s Office based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. B-1 Management Responsibilities Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management is reliable and financial information is reliable and properly reported; for the selection and application of accounting principles; and for the preparation and fair presentation in the financial statements in conformity with U.S. generally accepted accounting principles. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and also for ensuring that financial information is reliable, complete and properly recorded. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatement and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the District complies with applicable laws, regulations, contracts, agreements, and grants for taking timely and appropriate steps to remedy any fraud and noncompliance with provisions of laws, regulations, illegal acts, violations of contracts or grant agreements, or abuse that we may report. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. B-1 With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. You agree to assume all management responsibilities for financial statement preparation services and any other nonattest services we provide; oversee the services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of the services; and accept responsibility for them. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing. We will provide copies of our reports to the District; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Teaman, Ramirez & Smith, Inc. and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to grantor agencies or their designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purpose of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of our firm. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. In such cases, Teaman, Ramirez & Smith, Inc. is not responsible for the distribution of the copies or information contained therein. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by a grantor or federal agency. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. We expect to begin our final audit fieldwork approximately in August 2016 and to issue our reports approximately in October 2016. Richard Teaman is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. Our fee for these services will be $25,500. Our invoices for these fees will be rendered as work progresses and are payable on presentation. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if have not completed our report. You will be obligated to compensate us for all time expended through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. We appreciate the opportunity to be of service to the Otay Water District and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. RESPONSE: Very truly yours, TEAMAN, RAMIREZ & SMITH, INC. Richard A. Teaman Certified Public Accountant This letter correctly sets forth the understanding of the Otay Water District. By: Title: Date: B-1 •1 C)cs TEAMAN. RAMIREZ & SMITH. INC. I ~ CERTIFIED PUBLIC ACCO UNTANTS Joseph Beachem, Chief Financial Officer Otay Water District 2554 Sweetwater Springs Blvd Spring Valley, CA 91778-2004 Dear Joseph: December 17, 20 15 We are pleased to confirm our understanding of the services we are to provide for the year ended June 30, 2016. We will prepare the Annual Financial Transactions Report (State Controller's Report) of the Otay Water District (the "District"), which comprise the balance sheet as of June 30, 2016, and the related statements of revenue and expenses and changes in fund equity for the year then ended, and perform a compilation engagement with respect to the State Controller's Report. The supplementary information that accompanies the State Controller's Report is additional information requested by the California State Controller. The supplementary information will be compiled from information that is the representation of management. We will not audit or review the supplementary information. We will not express an opinion or provide any assurance on such supplementary information. Our Responsibilities The objective of our engagement is to- 1) prepare the State Controller's Report in accordance with the requirements prescribed by the California State Controller based on information provided by you and 2) apply accounting and fmancial reporting expertise to assist you in the presentation of fmancial information in the forms prescribed by the California State Controller without undertaking to obtain or provide any assurance that there are no material modifications that should be made to those form in order for them to be in accordance with the requirements prescribed by the California State Controller. We will conduct our compilation engagement in accordance with Statements on Standards for Accounting and . _Review Services (SSARS) promulgated by the Accounting and Review Services Committee of the AICP A and comply with applicable professional standards, including the AICPA's Code of Professional Conduct and its ethical principles of integrity, objectivity, professional competence, and due care, when performing the services, preparing the State Controller's Report, and performing the compilation engagement. We are not required to, and will not, verify the accuracy or completeness of the information you will provide to us for the engagement or otherwise gather evidence for the purpose of expressing an opinion or a conclusion. Accordingly, we will not express an opinion or a conclusion nor provide any assurance on the State Controller's Report. Richard A. Teaman, CPA • David M. Ramirez, CPA • Javier H. Carrillo, CPA 4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 FAX • www.trscpas.com Our engagement cannot be relied upon to identify or disclose any misstatements in the State Controller’s Report, including those caused by fraud or error, or to identify or disclose any wrongdoing within the District or noncompliance with laws and regulations. However, we will inform the appropriate level of management of any material errors and any evidence or information that comes to our attention during the performance of our procedures that fraud may have occurred. In addition, we will inform you of any evidence or information that comes to our attention during the performance of our compilation procedures regarding any wrongdoing within the District or noncompliance with laws and regulations that may have occurred, unless they are clearly inconsequential. We have no responsibility to identify and communicate deficiencies or material weaknesses in your internal control as part of this engagement. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Your Responsibilities The engagement to be performed is conducted on the basis that you acknowledge and understand that our role is to assist you in the presentation of the State Controller’s Report in accordance with the requirements prescribed by the California State Controller. You have the following overall responsibilities that are fundamental to our undertaking the engagement in accordance with SSARS: 1) The preparation and fair presentation of the State Controller’s Report in accordance with the requirements prescribed by the California State Controller and the inclusion of all related informative disclosures that are appropriate, if applicable. 2) The design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the State Controller’s Report. 3) The prevention and detection of fraud. 4) To ensure that the District complies with the laws and regulations applicable to its activities. 5) The accuracy and completeness of the records, documents, explanations, and other information, including significant judgments, you provide to us for the engagement. 6) To provide us with— • access to all information of which you are aware that is relevant to the fair presentation of the State Controller’s Report, such as records, documentation, and other matters. • additional information that we may request from you for the purpose of the compilation engagement. • unrestricted access to persons within the entity of whom we determine it necessary to make inquiries. 7) To include our compilation report in any document containing the State Controller’s Report that indicates we have performed a compilation engagement on such prescribed forms and, prior to inclusion of the report, to ask our permission to do so. You are also responsible for all management decisions and responsibilities and for designating an individual with suitable skills, knowledge, and experience to oversee our services and the preparation of your State Controller’s Report. You are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services. Our Report As part of our engagement, we will issue a report that will state that we did not audit or review the State Controller’s Report and that, accordingly, we do not express an opinion, a conclusion, or provide any assurance on them. If, for any reason, we are unable to complete the compilation of your State Controller’s Report, we will not issue a report on such prescribed forms as a result of this engagement. Other Relevant Information Richard Teaman is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Our fee to prepare the report is included in the fee quoted in the engagement letter to conduct the June 30, 2016 fmancial audit of the District dated December 17, 2015. The fee is based . on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the work performed. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as prescribed in this letter, please sign the enclosed copy and return it to us. Very truly yours, TEAMAN, RAMIREZ & SMITH, INC. Richard A. Teaman Certified Public Accountant RESPONSE: This letter correctly sets forth the understanding of the Otay Water District. By: ________________________________________ _ Title: _______________________ _ Date: _______________________ _ •I C>CS TEAMAN. RAMIREZ & SMITH, INC. I ~ CERTIFIED PUBLIC ACCOUNTANTS Joseph Beachem, Chief Financial Officer Otay Water District 2554 Sweetwater Springs Blvd Spring Valley, CA 91778-2004 Dear Joseph: December 17, 2015 We are pleased to confirm our understanding of the nature and limitations of the services we are to provide for the Otay Water District (the "District"). We will apply the agreed-upon procedures which the District's management has specified, listed in the attached schedule, for the investments of the District for the fiscal year ending June 30, 2016 (prepared in accordance with generally accepted accounting principles). This engagement is solely to assist the District's management in evaluating the compliance with the District's investment policy. Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described in the attached schedule either for the purpose for which this report has been requested or for any other purpose. If for any reason, we are unable to complete the procedures, we will describe any restrictions on the performance of the procedures in our report, or will not issue a report as a result of this engagement. Because the agreed-upon procedures listed in the attached schedule do not constitute an examination, we will not express an opinion on the District's investments or any elements, accounts, or items thereof. In addition, we have no obligation to perform any procedures beyond those listed in the attached schedule. We will submit a report listing the procedures performed and our findings. This report is intended solely for the information and use of the District, and is not intended to be and should not be used by anyone other than this specified party. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. You are responsible for the presentation of the investments of the District in accordance with generally accepted accounting principles; and for selecting the criteria and determining that such criteria are appropriate for your purposes. You are responsible for assuming all management responsibilities and for overseeing any nonattest services we provide by designating an individual, preferably within senior management, who possesses suitable skill, knowledge, and/or experience. In addition, you are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for the results of such services. Richard A. Teaman is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Richard A . Teaman, CPA • David M. Ramirez, CPA • Javier H. Carrillo, CPA 4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 FAX • www.trscpas.com ..... · .. :-~.r.r' ·· .. ~,. ' ... •.~~:,:-). We plan to begin our procedures in approximately August 2016 and, unless unforeseeable problems encountered, the engagement should be completed in October 2016. At the conclusion of our engagement, we will require a representation letter from management that, among other things, will confirm management's responsibility for the presentation of the investments of the District in accordance with generally accepted accounting principles. Our fees for these services will be $1,500. The fee is based on anticipated cooperation your personrtel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is n_ecessary, we will discuss it with you and arrive at a new fee before we incur the additional costs. We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. If the need for additional services arises, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an addendum to this letter. If additional specified parties of the report are added, we will require that they acknowledge in writing their responsibility for the sufficiency of procedures. RESPONSE: Very truly yours, TEAMAN, RAMIREZ & SMITH, INC. Richard A. Teaman Certified Public Accountant This letter correctly sets forth the understanding of the Otay Water District. By: _________________ _ Title: ------------------------------------------- Date: __________________________________________ _ Otay Water District Agreed-Upon Procedures Investments 1. Obtain a copy of the District’s investment policy and determine that it is in effect for the fiscal year ended June 30, 2016. 2. Select 4 investments held at year end and determine if they are allowable investments under the District’s Investment Policy. 3. For the four investments selected in #2 above, determine if they are held by a third party custodian designated by the District. 4. Confirm the part or original investment amount and market value of the four investments selected above with the custodian or issuer of the investments. 5. Select two investment earnings transactions that took place during the year and recomputed the earnings to determine if they proper amount was received. 6. Trace amounts received for transactions selected at #5 above into the District’s bank accounts. 7. Select five investment transactions (buy, sell, trade, or maturity) occurring during the year under review and determine that the transactions are permissible under the District’s investment policy. 8. Review supporting documentation for the five investments selected at #7 above to determine if the transactions were appropriately recorded in the District’s general ledger. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 2016 SUBMITTED BY: Armando Buelna, Communications Officer PROJECT: Various DIV. NO. ALL APPROVED BY: Mark Watton, General Manager SUBJECT: 2016 Legislative Program Guidelines GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the 2016 Otay Water District Legislative Program Guidelines. COMMITTEE ACTION: See Attachment A. PURPOSE: To provide direction to staff and the District’s Legislative Advocates in the formulation of the District’s response to legislative initiatives on issues affecting the District during the 2016 legislative session. ANALYSIS: Otay Water District maintains a set of legislative policy guidelines to direct staff and legislative advocates on issues important to the District. The legislative guidelines are updated annually with the proposed updates presented to the Otay Water District’s Board of Directors for review, comment and adoption. The attached 2016 Legislative Program represents policy positions on legislation for the Board’s consideration. Each legislative session, representatives to the California Legislature sponsor some 2,000 or more bills or significant 2 resolutions. While many bills fail to make it out of their house of origin, many others go on to be signed by the governor and become law. These new laws can affect special districts in substantive ways. The same is true with each session of the House of Representatives and the U.S. Senate. The 2016 Legislative Program establishes guidelines and policy direction that can be used by staff when monitoring legislative activity to facilitate actions that can be taken quickly in response to proposed bills. The guidelines provide a useful framework for staff when evaluating the potential impact of state or federal legislation on the District. This is particularly helpful when a timely response is necessary to address a last minute amendment to legislation and should calls or letters of support or opposition be needed. Legislation that does not meet the guidelines as set forth or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates, and will instead be presented to the Board directly for guidance in advance of any position being taken. The 2016 Legislative Guidelines presents staff’s initial recommendations for the Board’s review, and seeks the Board’s recommendations for any additional modifications. Staff will then incorporate feedback into the final document. In general, the guidelines look to protect the District’s interest in a reliable, diverse and affordable water supply. Moreover, they seek to maintain local control over special district actions to protect your Board’s discretion and ratepayer interests, and maintain the ability to effectively and efficiently manage District operations. In addition they express the District’s ongoing support for water conservation, recycled water, ocean water desalination, capital improvement project development, organization-wide safety and security, binational cooperation, as well as the equitable distribution of water bond proceeds. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. LEGAL IMPACT: None 3 Attachments: Attachment A – Committee Action Attachment B – 2016 Otay Water District Legislative Program Attachment C - 2016 Otay Water District Legislative Program Redline ATTACHMENT A SUBJECT/PROJECT: 2015 Legislative Program Guidelines COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on January 20, 2016 and the following comments were made: Staff is presenting the District’s 2016 Legislative Program for the Board’s consideration. The legislative program was first developed in 2003 and the policy positions in the program are updated annually to address possible issues that may affect the District during the 2016 legislative session. The guidelines give policy direction that can be used by staff when monitoring legislative activity to facilitate actions that can be taken quickly in response to proposed bills. Legislation that does not meet the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates, and will instead be presented to the Board directly for guidance in advance of any position being taken. The changes proposed to the program keep Otay WD in alignment with the Water Authority and other San Diego water agencies on topics important to the region. Staff is seeking the Board’s input for any additional modifications and will then incorporate those comments into the final document. In response to an inquiry from the Committee, staff indicated that a Public Goods Charge is a tax. Staff has added under Financial, item o, “Oppose efforts that: Establish a Public Goods Charge,...,” as it is felt it would not be fair to tax residential customers for excessive water use. Further, residential users represent a relatively small portion of water consumption in the State. The District, thus, opposes the public goods charge/tax and, additionally, opposes any such tax in general. The Committee suggested that under Governance/Local Autonomy, that the District add an item under, Support efforts to, that indicates, “Promote measures that increase broader community and water industry representation/appointments on State decision making bodies.” Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. Otay Water District Legislative Program 2016 1 | Page Effective Date: 02/03/2016 Legislative Policy Guidelines The Otay Water Legislative Policy Guidelines for the 2016 Legislative Session includes the following: Sacramento-San Joaquin Bay Delta (Bay-Delta) Support efforts to: a. Finalize and implement the Bay-Delta Conservation Plan to address Bay-Delta environmental and water quality issues. b. Analyze or support a “Portfolio Approach”, “Around-the-Delta”, “right-sized”, or other alternatives that feature smaller conveyance facilities as a way to improve water quality, water transport, and reduce the possibility or impacts of levee failure, lower costs to water users and the public, reduce the level of environmental impacts, while potentially facing fewer legal and political challenges. c. Finalize Bay-Delta planning work and ongoing studies of new water storage facilities, and support efforts to promote additional surface and underground water storage infrastructure that are cost effective ensure water availability and quality. d. Resolve conflicts between urban and rural water users, water management and the environment in the Bay-Delta. e. Provide ongoing federal and state funding for the Bay-Delta, and those which focus attention to Bay-Delta financing, affordability, commitments to pay, and the demand for Bay-Delta water. f. Equitably allocate costs of the Bay-Delta solution to all those benefiting from improvements in proportion to the benefits they receive. g. Fast-track design, permits and construction for pilot projects in the Bay-Delta to create barriers to keep fish away from Bay-Delta water pumps, improve water quality and supply reliability. h. Provide deliberative processes that are designed to ensure meaningful dialogue with all stakeholders in an open and transparent process in order to reduce future conflicts and challenges in implementing a Bay-Delta solution. i. Provide a Bay-Delta solution that acknowledges, integrates and supports the development of water resources at the local level. j. Improve the ability of water-users to divert water from the Bay-Delta during wet periods when impacts to fish and the ecosystem are lower and water quality is higher. k. Improve the existing Bay-Delta water conveyance system to increase flexibility and enhance water supply, water quality, levee stability and environmental protection. l. Evaluate long-term threats to the Bay-Delta levees and conveyance system and pursues actions to reduce risks to the state’s water supply and the environment. m. Improve coordination of the Central Valley Project and State Water Project Operations. n. Provide a Bay-Delta solution and facilities that are cost-effective when compared with other water supply development options for meeting Southern California’s water needs. Otay Water District Legislative Program 2016 2 | Page o. Identify the total cost or perform appropriate cost studies to estimate consumer financial impact as well as the expected yield of any Bay-Delta solution before financing and funding decision are made to determine whether the solution is worth the expense. p. Provide the State Water Project (SWP) with more flexibility to operate their systems to maximize water deliveries while avoiding unacceptable impacts to third parties, habitat or the environment. q. Require a firm commitment and funding stream by all parties to pay for the proportional benefits they will receive from a Bay-Delta solution through take-or-pay contracts or the legal equivalent, and identify the impact to the remaining contractors if one or more contractors default or back out. r. Provide “right-sized” facilities to match firm commitments to pay for the Bay-Delta solution. s. Provide SWP contractors and their member agencies access to all SWP facilities to facilitate water transfers. t. Continue state ownership and operation of SWP as a public resource. u. Improve efficiency and transparency of all SWP operations. v. Focus on statewide priorities, including construction of an approved method of conveyance of water through or around the Delta that provides water supply reliability to the Delta water uses, promotion of greater regional and local self-sufficiency, surface storage and promotion of water use efficiency. w. Provides for the state’s share of funding for Bay-Delta conveyance projects. x. Consider complementary investments in local water supply sources, regional coordination, and south of Delta storage as part of an overall comprehensive Bay-Delta solution. y. Protects and safeguards San Diego region’s Preferential Rights. Oppose efforts that: a. Require additional reviews or approvals of Delta conveyance options beyond those provided by SBX7-1 (2009). b. Transfer control of the State Water Project from the state to Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Water Contractors Authority, or to any entity comprised of MWD and other water contractors. Otay Water District Legislative Program 2016 3 | Page Recycled Water Support efforts to: a. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. b. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. c. Provide financial incentives for recharge of groundwater aquifers using recycled water. d. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. e. Promote recycled water as a sustainable supplemental source of water. f. Allow the safe use of recycled water. g. Facilitate development of technology aimed at improving water recycling. h. Increasing funding for water recycling projects. i. Increase awareness of the ways recycled water can help address the region’s water supply challenges. j. Create federal and state incentives to promote recycled water use and production. k. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. l. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. m. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. n. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. o. Encourages the use of recycled water in commercial, industrial, institutional, and residential settings. Oppose efforts that: a. Restrict use of recycled water for groundwater recharge. b. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. c. Create regulatory schemes that alter or limit the existing authority to reuse and recycle water. Otay Water District Legislative Program 2016 4 | Page Water Services Support efforts to: a. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. b. Provide financial support to projects designed to mitigate the potential negative impacts of Global Climate Change on water supply reliability. c. Promote the coordination and integration of local, state and federal climate change policies and practices to the greatest extent feasible. d. Support ongoing implementation of the Quantitative Settlement Agreement. e. Provide reliable water supplies to meet California’s short and long-term needs. f. Reduce impediments for willing sellers and buyers to engage in water transfer agreements. g. Promote desalination pilot studies and projects. h. Encourage feasibility studies of water resource initiatives. i. Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. j. Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. k. Streamline grant application procedures. l. Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. m. Streamline the permitting and approval process for implementing water transfers. n. Establish reasonable statewide approaches to sewer reporting standards. o. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. p. Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. q. Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. p. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. q. Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. r. Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural Otay Water District Legislative Program 2016 5 | Page communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. Oppose efforts that: a. Make urban water supplies less reliable or substantially increase the cost of imported water without also improving the reliability and/or quality of the water. b. Create unrealistic or costly water testing or reporting protocol. c. Disproportionately apportion the cost of water. d. Create undo hurtles for seawater desalination projects. e. Create unreasonable or confusing sewer reporting standards. f. Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. g. Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that charge or fee would provide. h. Create unrealistic or costly to obtain water quality standards for potable water, recycled water or storm water runoff. i. Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well. j. Lessen the focus on public health of the state’s Drinking Water Program. k. Create one-size-fit-all approaches to emergency drought regulations that ignore variations among communities, regions, and counties with respect to their ability to withstand the impact and effects of drought. l. Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. m. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. Otay Water District Legislative Program 2016 6 | Page Financial Support efforts to: a. Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. b. Give special districts the discretion to cease performance of unfunded mandates. c. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district funding. d. Provide incentives for local agencies to work cooperatively, share costs or resources. e. Provide for the stable, equitable and reliable allocation of property taxes. f. Continue to reform workers compensation. g. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. h. Promote competition in insurance underwriting for public agencies. i. Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. j. Require disbursement decisions in a manner appropriate to the service in question. k. Encourage funding infrastructure programs that are currently in place and that have been proven effective. l. Produce tangible results, such as water supply reliability or water quality improvement. m. Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gasses. n. Continue energy rate incentives for the utilization of electricity during low-peak periods. o. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. p. Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose efforts that: a. Impose new, unfunded state mandates on local agencies and their customers. b. Undermine Proposition 1A - Protection of Local Government Revenues – and the comprehensive reform approved by voters in 2004. c. Reallocate special district reserves in an effort to balance the state budget. d. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. e. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees or charges. f. Complicate or deter conservation-based rate structures. g. Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. h. Complicate compliance with SB 610 and SB 221. i. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. j. Add new reporting criteria, burdensome, unnecessary or costly reporting mandates to Urban Water Management Plans. Otay Water District Legislative Program 2016 7 | Page k. Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. l. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master planning document. m. Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. n. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. o. Establish a Public Goods Charge, excise tax for excessive water use, or other permanent tax or fee on water. Otay Water District Legislative Program 2016 8 | Page Governance/Local Autonomy Support efforts to: a. Expand local autonomy in governing special district affairs. b. Promote comprehensive long-range planning. c. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. d. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. e. Establish clear and reasonable guidelines for appropriate community sponsorship activities. f. Reaffirm the existing “all-in” financial structure, or protect the San Diego County Water Authority voting structure based on population. g. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies Oppose efforts that: a. Assume the state legislature is better able to make local decisions that affect special district governance. b. Create one-size-fits-all approaches to special district reform. c. Unfairly target one group of local elected officials. d. Usurp local control from special districts regarding decisions involving local special district finance, operations or governance. e. Limit the board of directors’ ability to govern the district. f. Create unfunded local government mandates. g. Create costly, unnecessary or duplicative oversight roles for the state government of special district affairs. h. Create new oversight roles or responsibility for monitoring special district affairs. i. Change the San Diego County Water Authority Act regarding voting structure, unless it is based on population. j. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions and other issues. k. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. l. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. m. Increase the cost of property and right-of-way acquisition, or restricts the use of right-of- ways. n. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. o. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. p. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. Otay Water District Legislative Program 2016 9 | Page Conservation Support efforts to: a. Provide funding for water conservation programs. b. Encourage the installation of water conserving fixtures in new and existing buildings. c. Promote the environmental benefits of water conservation. d. Enhance efforts to promote water awareness and conservation. e. Offer incentives for landscape water efficiency devices such as ET controllers and soil moisture sensors. f. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. g. Permit or require local agencies to adopt ordinances that require or promote water wise landscape for commercial and residential developments. h. Create tax incentives for citizens or developers who install water wise landscapes. i. Create tax incentives for citizens who purchase high efficiency clothes washers, dual flush and high-efficiency toilets and irrigation controllers above the state standards. j. Expand community-based conservation and education programs. k. Develop incentives for developers and existing customers to install water wise landscape in existing developments or new construction. l. Encourage large state users to conserve water by implementing water efficient technologies in all facilities both new and retrofit. m. Maintain incentives for solar power. n. Encourage large state water users to conserve water outdoors. o. Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. p. Encourage technological research targeted to more efficient water use. q. Give local agencies maximum discretion in selecting conservation programs that work for their customers and the communities they serve. r. Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. s. Require Property Owners Associations to allow low water use plants, mulch, artificial turf, or semi-permeable materials in well-maintained landscapes. Oppose efforts that: a. Weaken federal or state water efficiency standards. b. Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers, yet yield no water savings. c. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. d. Create one-size-fit-all approaches to emergency drought regulations that ignore variations among communities, regions, and counties with respect to their ability to withstand the impact and effects of drought. Otay Water District Legislative Program 2016 10 | Page Safety, Security and Information Technology Support efforts to: a. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. b. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. c. Provide funding for communication enhancements, wireless communications, GIS or other technological enhancements. d. Encourage or promote compatible software systems. e. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access and physical security upgrades. f. Protect state, local and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination or degradation. g. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. h. Equitably allocate security funding based on need, threats and/or population. i. Encourage or promote compatible communication systems. j. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. k. Recognizes water agencies as emergency responders to damage and challenges caused by wildfires, earthquakes, and other natural disasters, as well as terrorist and other criminal activities that threaten water operations, facilities and supplies. l. Provide state grant or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. Oppose efforts that: a. Create unnecessary, costly, or duplicative security or safety mandates. b. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the general public. Otay Water District Legislative Program 2016 11 | Page Optimize District Effectiveness Support efforts to: a. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. b. Develop reasonable Air Pollution Control District engine permitting requirements. c. Reimburse or reduce local government mandates. d. Allow public agencies to continue offering defined benefit plans. e. Result in predictable costs and benefits for employees and taxpayers. f. Eliminate abuses. g. Retain local control of pension systems. h. Be constitutional, federally legal and technically possible. Oppose efforts that: a. Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. b. Create unrealistic ergonomic protocol. c. Micromanage special district operations. d. Balance the state budget by allowing regulatory agencies to increase permitting fees. e. Tax dependent benefits. f. Require new reporting criteria on energy intensity involved in water supply. Otay Water District Legislative Program 2016 12 | Page Bi-National Initiatives Support efforts to: a. Promote and finance cross-border infrastructure development such as water pipelines, desalination plants or water treatment facilities to serve the border region. b. Develop cooperative and collaborative solutions to cross-border issues. c. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose efforts that: a. Usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. Otay Water District Legislative Program 2016 13 | Page State Water Bonds Support efforts to: a. Ensure San Diego County receives an equitable share of funding from Proposition 1 (2014) with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. b. Ensure funding for water infrastructure projects help to resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. c. Ensure primary consideration is given to funding priorities established by local and regional entities through their IRWM planning process. d. Ensure that the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. e. Fund emergency and carryover storage projects including those in San Diego County. f. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond funding processes, and provide consistent application and evaluation of bond funding applications. g. Expedite the funding for projects that advance the achievement of the co-equal goals of water supply reliability and Delta ecosystem restoration. Oppose efforts that: a. Change the share of funding to make San Diego County’s share less equitable, not based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds, or change the understanding that all beneficiaries pay an equitable share. b. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. c. Do not provide funding that result in net increases in real water supply and water supply reliability. d. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. Otay Water District Legislative Program 20152016 1 | Page Effective Date: 012/073/20156 Legislative Policy Guidelines The Otay Water Legislative Policy Guidelines for the 20165 Legislative Session includes the following: Sacramento-San Joaquin Bay Delta (Bay-Delta) Support efforts to: a. Finalize and implement the Bay-Delta Conservation Plan to address Bay-Delta environmental and water quality issues. b. Analyze or support a “Portfolio Approach”, “Around-the-Delta”, “right-sized”, or other alternatives that feature smaller conveyance facilities as a way to improve water quality, water transport, and reduce the possibility or impacts of levee failure, lower costs to water users and the public, reduce the level of environmental impacts, while potentially facing fewer legal and political challenges. c. Finalize Bay-Delta planning work and ongoing studies of new water storage facilities, and support efforts to promote additional surface and underground water storage infrastructure that are cost effective ensure water availability and quality. d. Resolve conflicts between urban and rural water users, water management and the environment in the Bay-Delta. e. Provide ongoing federal and state funding for the Bay-Delta, and those which focus attention to Bay-Delta financing, affordability, commitments to pay, and the demand for Bay-Delta water. f. Equitably allocate costs of the Bay-Delta solution to all those benefiting from improvements in proportion to the benefits they receive. g. Fast-track design, permits and construction for pilot projects in the Bay-Delta to create barriers to keep fish away from Bay-Delta water pumps, improve water quality and supply reliability. h. Provide deliberative processes that are designed to ensure meaningful dialogue with all stakeholders in an open and transparent process in order to reduce future conflicts and challenges in implementing a Bay-Delta solution. i. Provide a Bay-Delta solution that acknowledges, integrates and supports the development of water resources at the local level. j. Improve the ability of water-users to divert water from the Bay-Delta during wet periods when impacts to fish and the ecosystem are lower and water quality is higher. k. Improve the existing Bay-Delta water conveyance system to increase flexibility and enhance water supply, water quality, levee stability and environmental protection. l. Evaluate long-term threats to the Bay-Delta levees and conveyance system and pursues actions to reduce risks to the state’s water supply and the environment. m. Improve coordination of the Central Valley Project and State Water Project Operations. n. Provide a Bay-Delta solution and facilities that are cost-effective when compared with other water supply development options for meeting Southern California’s water needs. Otay Water District Legislative Program 20152016 2 | Page o. Identify the total cost or perform appropriate cost studies to estimate consumer financial impact as well as the expected yield of any Bay-Delta solution before financing and funding decision are made to determine whether the solution is worth the expense. p. Provide the State Water Project (SWP) with more flexibility to operate their systems to maximize water deliveries while avoiding unacceptable impacts to third parties, habitat or the environment. q. Require a firm commitment and funding stream by all parties to pay for the proportional benefits they will receive from a Bay-Delta solution through take-or-pay contracts or the legal equivalent, and identify the impact to the remaining contractors if one or more contractors default or back out. r. Provide “right-sized” facilities to match firm commitments to pay for the Bay-Delta solution. s. Provide SWP contractors and their member agencies access to all SWP facilities to facilitate water transfers. t. Continue state ownership and operation of SWP as a public resource. u. Improve efficiency and transparency of all SWP operations. v. Focus on statewide priorities, including construction of an approved method of conveyance of water through or around the Delta that provides water supply reliability to the Delta water uses, promotion of greater regional and local self sufficiencyself-sufficiency, surface storage and promotion of water use efficiency. w. Provides for the state’s share of funding for Bay-Delta conveyance projects. x. Consider complementary investments in local water supply sources, regional coordination, and south of Delta storage as part of an overall comprehensive Bay-Delta solution. y. Protects and safeguards San Diego region’s Preferential Rights. x. Oppose efforts that: a. Require additional reviews or approvals of Delta conveyance options beyond those provided by SBX7-1 (2009). b. Transfer control of the State Water Project from the state to Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Water Contractors Authority, or to any entity comprised of MWD and other water contractors. a. Otay Water District Legislative Program 20152016 3 | Page Recycled Water Support efforts to: a. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. b. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. c. Provide financial incentives for recharge of groundwater aquifers using recycled water. d. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. e. Promote recycled water as a sustainable supplemental source of water. f. Allow the safe use of recycled water. g. Facilitate development of technology aimed at improving water recycling. h. Increasing funding for water recycling projects. i. Increase awareness of the ways recycled water can help address the region’s water supply challenges. j. Create federal and state incentives to promote recycled water use and production. k. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. l. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. m. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. n. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. o. Encourages the use of recycled water in commercial, industrial, institutional, and residential settings. m. Oppose efforts that: a. Restrict use of recycled water for groundwater recharge. b. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. c. Create regulatory schemes that alter or limit the existing authority to reuse and recycle water. Otay Water District Legislative Program 20152016 4 | Page Water Services Support efforts to: a. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. b. Provide financial support to projects designed to mitigate the potential negative impacts of Global Climate Change on water supply reliability. c. Promote the coordination and integration of local, state and federal climate change policies and practices to the greatest extent feasible. d. Support ongoing implementation of the Quantitative Settlement Agreement. e. Provide reliable water supplies to meet California’s short and long-term needs. f. Support legislation that rReduces impediments for willing sellers and buyers to engage in water transfer agreements. g. Promote desalination pilot studies and projects. h. Encourage feasibility studies of water resource initiatives. i. Increase fundings for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. j. Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. k. Streamline grant application procedures. l. Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. m. Streamline the permitting and approval process for implementing water transfers. n. Establish reasonable statewide approaches to sewer reporting standards. o. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. n.p.Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. o.q.Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. p. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. q. Require the State Water Resources Control Board to exercise its authority, ensure robust to funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. r. Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural Otay Water District Legislative Program 20152016 5 | Page communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. q. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. Oppose efforts that: a. Make urban water supplies less reliable or substantially increase the cost of imported water without also improving the reliability and/or quality of the water. b. Create unrealistic or costly water testing or reporting protocol. c. Disproportionately apportion the cost of water. d. Create undo hurtles for seawater desalination projects. e. Create unreasonable or confusing sewer reporting standards. f. Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. g. Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that the charge or fee would provide. h. Create unrealistic or costly to obtain water quality standards for potable water, recycled water or storm water runoff. i. Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well. j. Lessen the focus on public health of the state’s Drinking Water Program. k. Create one-size-fit-all approaches to emergency drought regulations that ignore variations among communities, regions, and counties with respect to their ability to withstand the impact and effects of drought. l. Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. m. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. j. Otay Water District Legislative Program 20152016 6 | Page Financial Support efforts to: a. Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. b. Give special districts the discretion to cease performance of unfunded mandates. c. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district funding. d. Provide incentives for local agencies to work cooperatively, share costs or resources. e. Provide for the stable, equitable and reliable allocation of property taxes. f. Continue to reform workers compensation. g. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. h. Promote competition in insurance underwriting for public agencies. i. Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. j. Require disbursement decisions in a manner appropriate to the service in question. k. Encourage funding infrastructure programs that are currently in place and that have been proven effective. l. Produce tangible results, such as water supply reliability or water quality improvement. m. Provide financial incentives for energy projects that increase reliability, diversity, and reduce green housegreenhouse gasses. n. Continue energy rate incentives for the utilization of electricity during low-peak periods. o. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. p. Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. o. Oppose efforts that: a. Impose new, unfunded state mandates on local agencies and their customers. b. Undermine Proposition 1A - Protection of Local Government Revenues – and the comprehensive reform approved by voters in 2004. c. Reallocate special district reserves in an effort to balance the state budget. d. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. e. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees or charges. f. Complicate or deter conservation-based rate structures. g. Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. h. Complicate compliance with SB 610 and SB 221. i. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. Otay Water District Legislative Program 20152016 7 | Page j. Add new reporting criteria, burdensome, unnecessary or costly reporting mandates to Urban Water Management Plans. k. Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. l. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master planning document. m. Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. n. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. o. Establish a Public Goods Charge, excise tax for excessive water use, or other permanent tax or fee on water. n. Otay Water District Legislative Program 20152016 8 | Page Governance/Local Autonomy Support efforts to: a. Expand local autonomy in governing special district affairs. b. Promote comprehensive long-range planning. c. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. d. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. e. Establish clear and reasonable guidelines for appropriate community sponsorship activities. f. Reaffirm the existing “all-in” financial structure, or protect the San Diego County Water Authority voting structure based on population. g. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies Oppose efforts that: a. Assume the state legislature is better able to make local decisions that affect special district governance. b. Create one-size-fits-all approaches to special district reform. c. Unfairly target one group of local elected officials. d. Usurp local control from special districts regarding decisions involving local special district finance, operations or governance. e. Limit the board of directors’ ability to govern the district. f. Create unfunded local government mandates. g. Create costly, unnecessary or duplicative oversight roles for the state government of special district affairs. h. Create new oversight roles or responsibility for monitoring special district affairs. i. Change the San Diego County Water Authority Act regarding voting structure, unless it is based on population. j. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions and other issues. k. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. l. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. Otay Water District Legislative Program 20152016 9 | Page m. Increase the cost of property and right-of-way acquisition, or restricts the use of right-of- ways. n. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. o. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. n.p.Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. Otay Water District Legislative Program 20152016 10 | Page Conservation Support efforts to: a. Provide funding for water conservation programs. b. Encourage the installation of water conserving fixtures in new and existing buildings. c. Promote the environmental benefits of water conservation. d. Enhance efforts to promote water awareness and conservation. e. Offer incentives for landscape water efficiency devices such as ET controllers and soil moisture sensors. f. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. g. Permit or require local agencies to adopt ordinances that require or promote water wise landscape for commercial and residential developments. h. Create tax incentives for citizens or developers who install water wise landscapes. i. Create tax incentives for citizens who purchase high efficiency clothes washers, dual flush and high-efficiency toilets and irrigation controllers above the state standards. j. Expand community-based conservation and education programs. k. Develop incentives for developers and existing customers to install water wise landscape in existing developments or new construction. l. Encourage large state users to conserve water by implementing water efficient technologies in all facilities both new and retrofit. m. CreateMaintain i higher incentives for solar power. n. Encourage large state water users to conserve water outdoors. o. Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. p. Encourage technological research targeted to more efficient water use. q. Give local agencies maximum discretion in selecting conservation programs that work for their customers and the communities they serve. r. Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. q.s. Require Property Owners Associations to allow low water use plants, mulch, artificial turf, or semi-permeable materials in well-maintained landscapes. Oppose efforts that: a. Weaken federal or state water efficiency standards. b. Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers, yet yield no water savings. c. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. d. Create one-size-fit-all approaches to emergency drought regulations that ignore variations among communities, regions, and counties with respect to their ability to withstand the impact and effects of drought. Otay Water District Legislative Program 20152016 11 | Page Safety, Security and Information Technology Support efforts to: a. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. b. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. c. Provide funding for communication enhancements, wireless communications, GIS or other technological enhancements. d. Encourage or promote compatible software systems. e. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access and physical security upgrades. f. Protect state, local and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination or degradation. g. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. h. Equitably allocate security funding based on need, threats and/or population. i. Encourage or promote compatible communication systems. j. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. k. Recognizes water agencies as emergency responders to damage and challenges caused by wildfires, earthquakes, and other natural disasters, as well as terrorist and other criminal activities that threaten water operations, facilities and supplies. k.l. Provide state grant or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. Oppose efforts that: a. Create unnecessary, costly, or duplicative security or safety mandates. b. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the general public. Otay Water District Legislative Program 20152016 12 | Page Optimize District Effectiveness Support efforts to: a. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. b. Develop reasonable Air Pollution Control District engine permitting requirements. c. Reimburse or reduce local government mandates. d. Allow public agencies to continue offering defined benefit plans. e. Result in predictable costs and benefits for employees and taxpayers. f. Eliminate abuses. g. Retain local control of pension systems. h. Be constitutional, federally legal and technically possible. Oppose efforts that: a. Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. b. Create unrealistic ergonomic protocol. c. Micromanage special district operations. d. Balance the state budget by allowing regulatory agencies to increase permitting fees. e. Tax dependent benefits. f. Require new reporting criteria on emergency energy intensity involved in water supply. Otay Water District Legislative Program 20152016 13 | Page Bi-National Initiatives Support efforts to: a. Promote and finance cross-border infrastructure development such as water pipelines, desalination plants or water treatment facilities to serve the border region. b. Develop cooperative and collaborative solutions to cross-border issues. c. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose efforts that: a. Usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. Otay Water District Legislative Program 20152016 14 | Page State Water Bonds Support efforts to: a. Ensure San Diego County receives an equitable share of funding from Proposition 1 (2014) with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. b. Ensure funding for water infrastructure projects help to resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. c. Ensure primary consideration is given to funding priorities established by local and regional entities through their IRWM planning process. d. Ensure that the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. e. Fund emergency and carryover storage projects including those in San Diego County. f. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond funding processes, and provide consistent application and evaluation of bond funding applications. g. Expedite the funding for projects that advance the achievement of the co-equal goals of water supply reliability and Delta ecosystem restoration. Oppose efforts that: a. Change the share of funding to make San Diego County’s share less equitable, not based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds, or change the understanding that all beneficiaries pay an equitable share. b. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. c. Do not provide funding that result in net increases in real water supply and water supply reliability. d. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 2016 SUBMITTED BY: Mark Watton, General Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Mark Watton, General Manager SUBJECT: Local Area Formation Commission (LAFCO) Special Districts 2015 Election GENERAL MANAGER’S RECOMMENDATION: That the Board consider casting votes for a Regular District Member and an Alternate District Member on LAFCO’s Commission, eight (8) positions on LAFCO’s Special District’s Advisory Committee, and to extend the terms of the Regular District Member positions in the LAFCO Special Districts 2015 Election. COMMITTEE ACTION: See Attachment A. PURPOSE: To present for the Board’s consideration the LAFCO Special Districts 2015 Election ballots. ANALYSIS: In August 2015, LAFCO solicited nominations for a Regular District Member and an Alternate District Member to serve on their Commission. They received two (2) nominations for the Regular Member position and four (4) nominations for the Alternate Member position. Mssrs. Edmund K. Sprague, Olivenhain Municipal Water District, and George E. McManigle, Mission Resource Conservation District, are seeking the Regular Member position. Mr. Sprague is the current Alternate Member. The four nominations for the Alternate Member position are Mr. Mark Robak, Otay Water District; Mr. Dennis A. Sanford, Rainbow Municipal Water District; Mr. Joel A. Scalzitti, Helix Water District; and Ms. Judy Hanson, Leucadia Wastewater District. LAFCO had also solicited nominations for eight (8) positions on its Special District’s Advisory Committee. There are nine (9) candidates nominated to the Special Districts Advisory Committee (see ballot in Attachment C). Mr. Gary Croucher, Otay Water District, currently serves on the Special Districts Advisory Committee and is seeking re- election to his seat on the Committee. An additional ballot requests that the board vote on extending the term for the Regular Member seat currently held by Jo Mackenzie, Vista Irrigation District, to 2020 and also extend the term of the Regular Member position currently up for election to 2019. The four (4) ballots for the elections along with the Nominating Committee’s report and recommendations (Attachment C), and the candidates’ nomination forms (Attachment D) are attached. Incumbents names appear in italics. Also attached are letters from the candidates seeking the District’s support of their nomination (Attachment E). The ballots must be submitted to LAFCO by February 26, 2016. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Participating would support the strategic goal of maintaining effective communications with other cities, special districts, State and Federal governments, community organizations and Mexico. LEGAL IMPACT: None. Attachments: Attachment B: LAFCO Correspondence Attachment C: LAFCO Nominating Committee Report and Ballots Attachment D: Candidates’ Nomination Forms Attachment E: Candidates’ Letters Requesting Support of their Nomination ATTACHMENT A SUBJECT/PROJECT: Local Area Formation Commission (LAFCO) Special Districts 2015 Election COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on January 20, 2016 and referred it to the full board for discussion as an action item. l lAY Vlt.TER D!S TRIOTO RE ~"'!g~~'SiOzard Way • Suite 200 • San Diego, CA 92123 858 614-7755 • FAX 858 614-7766 San Diego Local Agency Formation Commissi Website: www.sdlafco.org Chairman Bill Horn County Board of Supervisors Vice Chairman Sam Abed Mayor City of Escondido Members Dianne Jacob County Board of Supervisors Andrew Vanderlaan Public Member Lorie Zapf Councilmember City of San Diego Lorraine Wood Councilmember City of Carlsbad Jo MacKenzie Vista Irrigation District Vacant Special District Alternate Members Greg Cox County Board of Supervisors Chris Gate Councilmember . City of San Diego Racquel Vasquez Councilmember City of Lemon Grove Ed Sprague Olivenhain Municipal Water District Harry Mathis Public Member Executive Officer Michael D. Ott Legal Counsel Michael G. Colantuono December 3, 2015 TO: Independent Special Districts of San Diego County FROM: Executive Officer Local Agency Formation Commission SUBJECT: 2015 Special Districts Election By our letter of August 7, 2015, we solicited nominations for two Local Agency Formation Commission (LAFCO) positions: one LAFCO regular district member and one LAFCO alternate district member, and eight positions on LAFCO's Special Districts Advisory Committee. By the deadline of October 9, 2015, two nominations for the regular member, and four nominations for the alternate member, and nine nominations for the eight positions on the Advisory Committee were received . As required by the Selection Committee Rules, all eligible nominations were forwarded to a Nominating Committee. The 2015 Nominating Committee was comprised of Dennis Shepard (North County Cemetery District), Julie Nygaard (Tri-City Health Care District) and William Hayner (Whispering Palms Community Services District). After a Candidates Forum was held on November 19, 2015 in conjunction with the San Diego Chapter of the California Special District Association's Quarterly Dinner Meeting, LAFCO Consultant Harry Ehrlich and Michael Ott, LAFCO's Executive Officer met with the Nominating Committee on November 23, 2015 to discuss a recommended slate of nominees for the open positions. A copy of the Nominating Committee's Report and Recommendations is attached (Attachment 1). Special District Election Ballots and Vote Certification forms on which to record your votes are also attached (Attachment 2). A list of the eligible independent special districts is provided for your convenience in label format (Attachment 3). Please note that LAFCO staff has not included any of the candidates' promotional materials with the election materials. Lastly, attached are the Special District Summary of Nominations and copies of Nomination Forms (Attachment 4). With respect to ballots, there is a separate ballot for each position : yellow for the LAFCO regular special district member; blue for the Independent Special Districts December 3, 2015 Page Two LAFCO alternate special district member; buff for term extensions for two regular positions; and green for the advisory committee member. Be sure each ballot is marked only for the number of positions to be voted for in that category. A ballot that is cast for more than the indicated number of positions will be disregarded. The ballots should be considered by yo ur full district board. State Law and th e Selection Committee Rules require a district's vote to be cast by its presiding officer, or an alternate member of the legislative body appointed by the other members. Therefore, the certification form has been incorporated with the ballot forms to be sig ned by the person who casts your district's votes. A ballot received without a signed certification form will not be counted. All nominees are listed on the respective ballot. An asterisk indicates the nominating comm ittee recommendations, and incumbents have been italicized. Write-in ca ndidates are permitted, and spaces have been provided for that purpose. The deadline for receipt of the ballots by LAFCO is February 26, 2016. The Selection Comm ittee Rules require that marked ballots be returned by certified mail, return receipt requested. Facsimile (FAX) ballots and certification forms will be accepted, if necessary to meet the ballot deadline, but originals must be submitted as soon as possible thereafter. The Selection Committee Rules stipu late that a majority of the districts shall constitute a quorum for the conduct of committee business. There are 61 independent special districts in the county; therefore, a minimum of 31 ballots must be received to certify that a legal election was conducted. A candidate for the LAFCO member position must receive at least a majority of the votes cast to be elected . The ballots will be kept on fi le in this office , and will be made avai lable upon request. e or Tamaron Lu ckett at (858) 614-7755 if you have any questions. Executive Officer MDO:trl Attachments (1 ) Nominating Committee Report and Recommendations (2) Special District Election Ballot and Vote Certification Forms: Regular Member-Yellow Alternate Member-Blue Term Extension Reg ular Member-Buff Advisory Committee Member-Green (3) Independent Special District List (4) Independent Special District Summary of Nominations and Copies of Nomination Forms 9335 Hazard Way • Suite 200 • San Diego, CA 92123 (858) 614-7755 • FAX (858) 614-7766 San Diego Local Agency Formation Commission Website: www.sdlafco.org Chairman Bill Horn County Board of Supervisors Vice Chairman Sam Abed Mayor City of Escondido Members Dianne Jacob County Board of Supervisors Andrew Vanderlaan Public Member Lorie Zapf Councilmember City of San Diego Lorraine Wood Councilmember City of Carlsbad Jo MacKenzie Vista Irrigation District Vacant Special District Alternate Members Greg Cox County Board of Supervisors Chris Gate Councilmember City of San Diego Racquel Vasquez Councilmember City of Lemon Grove Ed Sprague Olivenhain Municipal Water District Harry Mathis Public Member Executive Officer Michael D. Ott Legal Counsel Michael G. Colantuono December 3, 2015 TO: Independent Special Districts in San Diego County FROM: 2015 Special Districts Election Nominating Committee SUBJECT: Nominating Committee Report and Recommendations In 2015, independent special district nominations were solicited for: one regular district member on the Local Agency Formation Commission (LAFCO) with a term expiring in May 2017 (proposed for extension to 2019) and one alternate district member with a term expiring in May 2019 and eight positions on the Special Districts Advisory Committee with a term expiring in October 2019. By the deadline of October 9, 2015, our office received two nominations for the LAFCO regular member position, four nominations for the LAFCO alternate member position and nine nominations for the eight positions on the Advisory Committee. As required by the Selection Committee Rules, a nominating committee was appointed to review the nominations submitted, and to prepare a list of recommended candidates. According to the Selection Committee Rules, the nominating committee is appointed by the chairperson or vice chair of the Special Districts Advisory Committee. A Candidates Forum, conducted by LAFCO Consultant Harry Ehrlich and Executive Officer Michael Ott was scheduled on November 19th as part of the quarterly dinner meeting in conjunction with the San Diego Chapter of the California Special Districts Association. All candidates were invited to attend and present a brief statement of qualifications. In the interest of impartiality, the Nominating Committee decided to conclude its deliberations after the Candidates Forum. In evaluating the nominations, the committee considered special district experience, interest, and knowledge of LAFCO issues. For those nominees who are incumbents, the committee further considered attendance records and meeting participation. The committee also wanted to ensure representation from those types of districts that most often are involved in making recommendations to LAFCO. The nominating committee's recommendation for each category follows: Attachment 1 2015 Nominating Committee Report December 3, 2015 Page Two NOMINATIN G COMMI TTEE RECOMMENDATIONS LAFCO Regular Special District Member The Nominatin g Committee recommended Edmund K. Sprague (Oiivenhain Municipal Water District) LAFCO Alternate Special District Member The Nominatin g Committee recom mended J udy Hanson (Leucadia Wastewater District) Special District Advisory Committee Member The Nomi nating Committee recommended: Robert L. Thomas (Pomerado Ce metery District) Tom Ken nedy (Rain bow Mu nicipal Water District) John Pastore (Rancho Santa Fe Community Servi ces District) Kimberly A. Thorner (Oiivenhain Municipal Water District) Thomas Pocklington (Bon ita-Su nnyside Fire Protection District) Jack Bebee (Fallbrook Pub lic Utility District) Gary Croucher (Otay Water District) Erin Lump (Rincon del Diablo Municipal Water District) Copies of all nominations are attached following this report. 2015 NOMINATING COMMITTEE DENNIS SHEPARD NORTH COUNTY CEMETERY DISTRICT JULIE NYGAARD TRI-CITY HEALTH CARE DISTRI CT WILLIAM HAYNOR WHISPERING PALMS COMMUNITY SERVICES DISTRICT * 2015 SPECIAL DISTRICTS ELECTION BALLOT and VOTE CERTIFICATION FOR REGULAR LAFCO SPECIAL DISTRICT MEMBER VOTE FOR ONLY ONE Edmund K. Sprague (Oiivenhain Municipal Water District) George E. McManigle (Mission Resource Conservation District) Write-In (Print Name) [ ] [ ] [ ] I hereby certify that I cast the votes of the ---------------- (Name of District) at the 2015 Special Districts Selection Committee Election as: the presiding officer, or the duly-appointed alternate board member. (Signature) (Title) (Date) Please note: The order in which the candidates' names are listed was determined by random selection. * = Nominating Committee's Recommendation Return Ballot and Vote Certification Form to: San Diego LAFCO Tamaron Luckett 9335 Hazard Way, Suite 200 San Diego, CA 92123 (858) 614-7755 (office)· (858) 614-7766 (FAX) Attachment 2 * 2015 SPECIAL DISTRICTS ELECTION BALLOT and VOTE CERTIFICATION FOR ALTERNATE LAFCO SPECIAL DISTRICT MEMBER VOTE FOR ONLY ONE Mark Robak (Otay Water District) Dennis A. Sanford (Rainbow Municipal Water District) Joel A. Scalzitti (Helix Water District) Judy Hanson (Leucadia Wastewater District) Write-In (Print Name) [ ] [ ] [ ] [ ] [ ] I hereby certify that I cast the votes of the ---------------- (Name of District) at the 2015 Special Districts Selection Committee Election as: the presiding officer, or the duly-appointed alternate board member. (Signature) (Title) (Date) Please note: The order in which the candidates' names are listed was determined by random selection. * = Nominating Committee's Recommendation Return Ballot and Vote Certification Form to: San Diego LAFCO Tamaron Luckett 9335 Hazard Way, Suite 200 San Diego, CA 92123 (858) 614-7755 (office) · (858) 614-7766 (FAX) Attachment 2 2015 SPECIAL DISTRICTS ELECTION BALLOT and VOTE CERTIFICATION FOR TIME EXTENSION REGULAR LAFCO SPECIAL DISTRICT MEMBER VOTE FOR THE FOLLOWING I hereby certify that I cast the votes of the ---------------- (Name of District) at the 2015 Special Districts Selection Committee Election as: ] the presiding officer, or ] the duly-appointed alternate board member. (Signature) (Title) (Date) Circle either "YES" or "NO" for the following: [Yes] or [No]: I support a term extension to 2020 for one reg_ular LAFCO special district position currently occupied by Commissioner Jo MacKenzie. [Yes] or [No]: I support a term extension to 2019 for one regular LAFCO special district position that is currently subject to election. Return Ballot and Vote Certification Form to: San Diego LAFCO Tamaron Luckett 9335 Hazard Way, Suite 200 San Diego, CA 92123 (858) 614-7755 (office) · (858) 614-7766 (FAX) Attachment 2 * * * * * * * * ** 2015 SPECIAL DISTRICTS ELECTION BALLOT and VOTE CERTIFICATION FOR SPECIAL DISTRICTS ADVISORY COMMITTEE MEMBER VOTE FOR ONLY EIGHT (Incumbents are italicized) John Pastore (Rancho Santa Fe Community Services District) Robert Robeson (Lakeside Fire Protection District) Jack Bebee (Fallbrook Public Utility District) Gary Croucher (Otay Water District) Robert L. Thomas (Pomerado Cemetery District) Tom Kennedy (Rainbow Municipal Water District) Thomas Pocklington (Bonita-Sunnyside Fire Protection District) Kimberly A. Thorner (Oiivenhain Municipal Water District) Erin Lump (Rincon del Diablo Municipal Water District) Write-Ins I hereby certify that I cast the votes of the ---------------- (Name of District) at the 2015 Special Districts Selection Committee Election as: [ [ (Signature) (Title) (Date) the presiding officer, or the duly-appointed alternate board member. Please note: The order in which the candidates' names are listed was determined by random selection. *=Nominating Committee's Recommendation Return Ballot and Vote Certification Form to: San Diego LAFCO Tamaron Luckett 9335 Hazard Way, Suite 200 San Diego, CA 92123 (858) 614-7755 (office) · (858) 614-7766 (FAX) Attachment 2 2015 SPECIAL DISTRICTS ELECTION SUMMARY OF NOMINATIONS REGULAR and ALTERNATE SPECIAL DISTRICT LAFCO COMMISSIONER and ADVISORY COMMITTEE POSITIONS LAFCO Regular Special District Member Candidates Edmund K. Sprague * (Oiivenhain Municipal Water District) George E. McManigle (Mission Resource Conservation District) LAFCO Alternate Special District Member Candidates Mark Robak (Otay Water District) Dennis A Sanford (Rainbow Municipal Water District) Joel A Scalzitti (Helix Water District) Judy Hanson*/** (Leucadia Wastewater District) Special Districts Advisory Committee Candidates John Pastore (Rancho Santa Fe Community Services District)*/** Robert Robeson (Lakeside Fire Protection District) Jack Bebee (Fallbrook Public Utility District)* Gary Croucher (Otay Water District)*/** Robert L. Thomas (Pomerado Cemetery District)* Tom Kennedy (Rainbow Municipal Water District)* Thomas Pocklington (Bonita-Sunnyside Fire Protection District)*/** Kimberly A Thorner, Esq. (Oiivenhain Municipal Water District)*/** Erin Lump (Rincon del Diablo Municipal Water District)* *= Nominating committee's recommendation **=Incumbents Please note: The order in which the candidates' names are listed was determined by random selection. Attachment 4 DATE RECEIVED BY LAFCO: RECEIVED SEP 3 0.2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use} ~ ld\1 n I r:: ~ tl I f1 r:: fY'\ ,.., ·=· ... -~-! ,_,., 'Y --NOMINATED BY: '"-~., i;,. .~. .::J, i .~. .i. District Name: Olivenhain Municipal Water District District Phone: (760) 753-6466 ~ ~ NAME OF NOMINEE: ~ :1:~ ' ' ~ ., -" .. Name: Edmund K. Sprague Address: 1966 Olivenhain Road Phone: (760) 753-6466 ·~ NOMINATED FOR: ~ LAFCO POSITION: Please check one box (>/)Regular Special District Member (Term expires in 2017) Refer to the List of Incumbents. ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( ) Special Districts Advisory Committee (Term expires in 2019) Appointed to OMWD Board in 2008 representing Division 5, providing him a great deal of experience managing water, DISTRICT wastewater, and parks and recreation services to over 80,000 customers. Currently serves as President of the Board. Also served as President of the Board from 2009 to 2012. EXPERIENCE: Currently serves on OMWD's Ad Hoc Facilities and Ad Hoc Outreach committees. Served on the Board of Directors of the Special District Risk Management Authority in 2011. Served on the California Special District Association's Professional Development Committee for the 2013, 2014, and 2015 terms. Earned the Recognition in Special District Governance certification from the Special District Leadership Foundation in 2010. Currently serves as LAFCO's Alternate Special District Member. LAFCO EXPERIENCE: Extensive experience in the fields of water, wastewater, parks, and recreation, and fire protection and prevention, enabling him to bring a uniquely broad perspective to LAFCO. 30 years of experience in fire protection and prevention roles. Began his career in 1986 as a Cadet Firefighter with the ADDITIONAL City of Escondido's Fire Department Most recently served as Deputy Fire Chief I Fire Marshal for the North County Fire Protection District with responsibility for managing code enforcement, inspection, plan check, public education, INFORMATION: and development-related services. Worked with the City of Carlsbad as a Firefighter, Fire Engineer, Fire Captain, Battalion Chief-Training Officer, and Shift Battalion Chief. During this 26 year period, was a Public Education Officer and a Liaison Officer with North County Dispatch JPA. Lifetime resident of northern San Diego County. Holds bachelors and master's degrees in public administration from San Diego State University and an associate's degree in fire science from Palomar College. Print name: Edmund K. Sprague I /K~ Presiding Officer Authorized Signature/. :;;;...--:: ~ · ?~ *In accordance with Government Code Section 56332, LAFCO Regular and Alternate Special Districr;vt?u:~Tiissioners must be members of the le islative body of an independent Special District who reside in San Die o C un . g g ty This form can be downloaded at the following link: http://www.sdlafco.org/vVhatsNew/2015Nomination.doc. ATTACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BYLAFCO: RECEIVED SEP 2 4 Z015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use) 1."' A II. 1"'1>11"",..,..., I I\,...,._,..., •·on~• ~ ~-'1!,-'"'Y ~~ V'-J v ',, t "-'" ., ~· NOMINATED BY: ·> ., ~ District Name: Mission Resource Conservation District District Phone: (760) 728-1332 NAME· or= NOMINEE: Name: George E. McManigle Address: 1780 Rabbit Hill, Fallbrook, CA 92028 Phone: 619 701 7974 NOMINATED FOR: Please check Q{1g, box LAFCO POSITION: (X)Regular Special District Member (Term expires in 2017) Refer to the List of Incumbents. ( ) Alternate Special District Member (Term expires in 2019} SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( ) Special Districts Advisory Committee (Term expires in 2019) DISTRICT Board member 2010-2015 EXPERIENCE: Vice President 2013· Present LAFCO EXPERIENCE: None ADDITIONAL Rainbow Municipal Water district board member 2007-2014 President of board 2010-2014 INFORMATION: Cn /))\ Swrr A. /V}Uf!.I(..Af Print name: I Presiding Officer Authorized Signatur~J. .-/~~ *In accordance with Government Code Section 56332, LAFCO Regular and ~ma~lll Distrift ~missioners must be members of the legislative body of an independent Special District who reside in Sa:::M nty. This fonn can be downloaded at the following link htlo:llwww.sd!afco:.oiOI'NhatsNew/2015Nomi • doc. ATIACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 RECEIVED DATE RECEIVED BYLAFCO: OCT -8 2015 SAN DIEGO LAFCO 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use) ,, -... .... , -;;.~· ,--..-,.. ' NOMINATED BY: .~-~ District Name: Otay Water District District Phone: 619-670-2280 '•'(' ' NAME OF NOMINEE: .. , . ,_ ., . ") . Name: Mark Robak Address: 3217 Fair Oaks Lane, Spring Valley, CA 91978 Phone: 619-778-3800 NOMINATED FOR: LAFCO POSITION: Please check !lll,g box ( ) Regular Special District Member (Term expires in 2017) Refer to the List of Incumbents. (x) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( ) Special Districts Advisory Committee (Term expires in 2019) DISTRICT Been on Otay Water Board since elected in 2004. Currently Treasurer. Former head of EXPERIENCE: Engineering & Operations and Financing Committee's. Various other roles. Was previously on Padre Dam Municipal Water District Board 1996-2000. Was President of the Board along with head of various committees, including Santee Lakes. LAFCO EXPERIENCE: None, but knowledgeable on process. ADDITIONAL Current alternate and former Chairman of Metro Wastewater Joint Powers Authority INFORMATION: (12 agencies). Ex Officio JPA member and Former President of Water Conservation Garden (6 agencies). Commercial real estate broker with 25 years' experience working with local agencies and municipalities. Heartland District Chairman and Board Member for San Diego-Imperial Council of the Boy Scouts of America. San Diego State University Lifetime Alumni Past President of El Cajon Valley Lions Club Various other boards and communjty service po~ / ~ .. /__ Print name:(fOJ C.. t\ · l..ot')"C~ I Presiding Officer Authorized SiaC'ture· ~ J ~ . g y p p g y *In accordance with Government Code Section 56332, LAFCO Regular and Al;ex:/e Special District Commtssioners must be members of the le is/alive bod of an inde endent S ecial District who eside in San Die o Count . This fonn can be downloaded at the following link: http://www.sdlafco.orq/VVhatsNew/2015Nomination.doc. ATTACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BYLAFCO: RECEIVED SEP 2 1 2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use) SAN DIEGO I AF'r.O NOMINATED BY: ·' ' ' .·,. ' District Name: Rainbow MuniciQal Water District District Phone: 760-728-1178 NAME OF NOMINEE: Name: Dennis A. Sanford Address: 3707 Old Highway 395 Rainbow CA 92028 Phone: 714-299-9865 NOMINATED FOR: Please check one box LAFCO POSITION: ( ) Regular Special District Member (Term expires in 2017) Refer to the List of Incumbents. (x ) Alternate Special District Member (Term expires in 2019) ' SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( ) Special Districts Advisory Committee (Term expires in 2019) DISTRICT Served as Director for 5 years EXPERIENCE: Served as President of the Board of Directors 1 year Served as President of North County JPA 1 year Served as Director San Diego County Water Authority 2 years Served as RMWD Santa Margarita Watershed Representative 3 years LAFCO EXPERIENCE: As President and Director the RMWD Board of Directors during the FPUDIRMWD situation, I have developed a very good working knowledge of the importance of LAFCO and its functions over the past 2 years. I believe, due to my experience with various public agencies in San Diego County, I could lend valuable insight and favorably contribute to the LAFCO Commission. I have also served as the RMWD LAFCO representative for the past 3 years. Served at President of Rainbow Community Planning Group 2 years ADDITIONAL Served a member of Rainbow Community 79 Group 2,"" INFORMATION: Print name: Dennis A. Sanford I Presiding Officer Autho.(( da1Jx1: 1// dA •tn accordance wfth Government Code Section 56332, LAFCO Regular lfnd z.ez strict Comm;ss;oners must be members of the legislative body of an independent Special District who resi in San iego County. This fonn can be downloaded at the following link: httn:llwww.sdlafco.ora/Whats ew/2015N mination.doc. u ATIACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BY LAFCO: RECEtvt:.u OCT -9 Z0\5 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use) ~~~~~~~~~~~~----~~~~~~=-~~==~~~~=-~~ District Name: District Phone: Name : Address: Phone : Please check one box Refer to the List of Incumbents. DISTRICT EXPERIENCE: Helix Water District (619) 667-6232 Joel A. Scalzitti 1600 E Lexington Ave El Cajon CA 92019 (619) 246-3749 :.--:-. . ~ FOR:,·.··;. LAFCO POSITION: ( ) Regular Special District Member (Term expires in 2017) (x) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: S ecial Districts Adviso Committee (Term expires in 2019) In my fifth year of service as a board member (2000-2002) & (2012- present) serving on committees such as (The Water Conservation Garden JPIA) (2001 & presently alternate) I Harry Griffin Steering Committee (2000-2002L Helix Audit Committee {2000-2002) & {2013) I ECEDC (2013) alternate. Also serve on the Lake Jennings Committee with revamping the budget from and extensive deficit to the projection of this year being in the positive! In my community I also work with Grossmont High School Advisory Committee and Auto Pathways (2008-present). LAFCO EXPERIENCE: I have served for on the Advisory board and observed and studied the duties and actives of LAFCO. Also over the years followed and recognized the issues and have an excellent grasp of the duties and responsibilities of the LAFCO board. ADDITIONAL INFORMATION: *In accordance with Government Code Section 56332, LAFCO Regular and Alternate Special District Commissioners must be members of the legislative body of an independent Special District who reside in San Diego County. This fonn can be downloaded at the following link: http://www.sdlafco orq!WhatsNew/2015Nomination.doc. ATIACHMENT2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BY LAFCO: RECEIVED OCT-8 2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use ) SAN DIEGO LAFCO ~-:<> . ,.,., ·~: -· .. ,. ~:r NOMINAifED BY: ·,, ·.,. I < .~. ·''· "~~· .. • .t .. District Name: Leucadia Wastewater District District Phone: (760) 753-0155 .,. . '"''' r. NA·ME OF NOMINEE: .J .~ '•· ·''-.r.l. , l )~. Name: Judy Hanson Address: 1960 La Costa Avenue, Carlsbad, CA 92009 Phone: (760) 753-0155 NOMINATED FOR: ·; LAFCO POSITION: Please check one box ( ) Regular Special District Member (Term expires in 2017) Refer to the List of Incumbents. {'I) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( ) Special Districts Advisory Committee(Term expires in 2019) DISTRICT Ms. Hanson has served on Leucadia Wastewater District (LWD) Board of EXPERIENCE: Directors since 1983 and was re-elected in 2012. She is also a member of LWD's Human Resources, Investment & Finance, and Employee Recognition Committees. LAFCO EXPERIENCE: Ms. Hanson has served on the Special Districts Advisory Committee since 1996 and has consistently attended LAFCO meetings. ADDITIONAL Ms. Hanson also serves as a Board member of the California Sanitation Risk INFORMATION: Management Authority (CSRMA). In addition, she has served on the San Diego Chapter of California Special District Association (CSDA) for approximately seven years, where she held various positions including the Chapter President. 1\ ~ Print name: Paul J. Bushee, General Manager I Presiding Officer Authorized Signature:/;;::;:!_ 0/ A/'lL_ *In accordance with Government Code Section 56332, LAFCO Regular and AlterMate Spec¢ Distr70rCommissioners must be members of the legislative body of an independent Special District who reside in San Diego County. This fonn can be downloaded at the following link: http:llwww.sdlafco.org/WhatsNew/2015Nomination.doc. ATTACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BYLAFCO: RECEIVED SEP 2 1 2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME District Name: District Phone: Name: Address: Phone: Please check~ box Refer to the List of Incumbents. DISTRICT EXPERIENCE: Rancho Santa Fe Community Services District 760-4 79-4125 John Pastore 605 Third Street, Encinitas, CA 92024 760-4 79-4121 LAFCO POSITION: ( ) Regular Special District Member (Term expires in 2017) ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: X Districts Advis Committee Served as General Manager for the Rancho Santa Fe CSD from 1981 thru 1986 and from 1991 thru 2006 Served as General Manager for the Whispering Palms CSD from 1990 thru 2002 Served as General Manager for the Fairbanks Ranch CSD from 1991 thru 2006 Served as General Manager for the Lee Lake Water District from 1990 thru 2006 LAFCO EXPERIENCE: Have served on the San Diego County Special Districts Advisory Committee representing the Rancho Santa Fe CSD for more than 25 years. San Diego LAFCO Have been involved in more than 50 annexation and detachment proceedings throughout my career. Have been responsible for the formation of two community services district formations in San Diego County from 1986 thru 1990. 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BYLAFCO: (Office Use) 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME .----------------.----------------------------------------------------~ ADDITIONAL INFORMATION: San Diego LAFCO 9335 Hazard Way, Suite 200 ATTACHMENT 2 San Diego, CA 92123 DATE RECEIVED t, BY LAFCO: RECEIVED OCT 0 5 2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Ofr7ce Use) District Name: District Phone: Name: Address: Phone: Please check one box Refer to the List of Incumbents. DISTRICT EXPERIENCE : LAFCO EXPERIENCE: ADDITIONAL INFORMATION : ;··:·---: ~r~:~·;1~~~~~~ :~:~.':;tt~~ • 1. :·t r . ~ . Lakeside Fire Protection D1strict (619)390-2350 Robert Robeson 11508 Bridle Path Lane, Lakeside, CA 92040 (619)561-0474, Cell 203-3721 LAFCO POSITION: ( ) Regular Special District Member (Term expires in 2017). ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: tx) Special Districts Advisory Committee (Term expires in 2019) 2 years of experience as voluntary Liaison Offi er Lakeside Fire Protection District. 9 months as Director of the Lakeside Fire Prote tion District Board -2015 Attended a few meetings over the past years, an a lot in 1970, while working on annexation for Cal. Dept. of Forestry in San Diego County. Retired Assistant Chief from Cal. Fire. w/38 ye rs of service, mostly in San Diego, County. Print name: Peter Liebi *In accordance with Government Code Section 56332, LAFCO Regular and Alternate Special District Commissioners must be members of the legislative body of an independent Special District who reside in San Diego County. This form can be downloaded at the following link: http://wwvv.sdlafco.org!W/JatsNew/2015Nomination.doc. ATTACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BYLAFCO: RECEIVED OCT 0 5 2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use) Name: Address: Please check~ box Refer to the List of Incumbents. DISTRICT EXPERIENCE: District Jack Bebee PO Box 2290, Fallbrook, CA 92088; 990 EMission Rd, Fallbrook, CA 92028 LAFCO POSITION: ( ) Regular Special District Member (Term expires in 2017) ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: Serve as Assistant General Manager for the District with responsibility to oversee District engineering and operations and plan; budget and manage all District projects. LAFCO EXPERIENCE: Has not previously served in any roles with LAFCO. ADDITIONAL INFORMATION: Don McDougal, President Presiding Officer Authorized Signature: Board of Directors Fallbrook Public Utility District *In accordance with Government Code Section 56332, LAFCO Regular n lternate Special District Commissioners must be members of the legislative body of an independent Special District who reside in San Diego County. This form can be downloaded at the following link: http://www. sdlafco. oraNVhatsNew/20 15Nomination. doc. San Diego LAFCO 9335 Hazard Way, Suite 200 ATTACHMENT 2 San Diego, CA 92123 RECEIVED DATE RECEIVED BYLAFCO: OCT -8 2015 SAN DIEGO LAFCO 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use) Name: Address: Phone: Please check~ box Refer to the List of Incumbents. DISTRICT EXPERIENCE: San Diego LAFCO Gary Croucher 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 619-670-2280 ( ) Regular Special District Member (Term expires in 2017) ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: x) S ecial Districts Adviso Committee Term expires in 2019 Mr. Gary Croucher was appointed to the Board of the Otay Water District in June 2001 by the SD County Board of Supervisors and following his appointment was elected four times to the Division 3 seat in November 2002, 2006, 2010 and 2014 for four-year terms. Mr. Croucher has served as President of Otay's Board of Directors three times and has served as one of the District's two representatives to CWA since July 2001. He is the current chair of Otay's Engineering, Operations & Water Resources Committee and has been chair of its Finance, Administration & Communications Committee, Employee Negotiations Ad Hoc Committee and served as the alternate representative on the Water Conservation Garden Authority's Board of Directors. He also served on Otay's Desalination Project Committee, Ad Hoc Salt Creek Golf Course Committee, Ad Hoc Legal Committee and Ad Hoc Redistricting Committee. As a member of CWA's Board of Directors, Mr. Croucher is chair of its Legislation, Conservation and Outreach Committee and vice chair of the Audit Committee. He has also served on its Small Contractor Outreach and Opportunities Program and has been past vice chair of its Administrative & Finance Committee and Bay Delta Solutions Ad Hoc Committee. He has been reappointed several times to its Legislative, Conservation and Outreach Committee and Small Contractor Outreach and Opportunity Program Committee. He is also past chair of CWA's Imported Water Committee, a past member of its Colorado River Programs Committee and Conservation Ad Hoc Committee, and past 2nd Alternate to SANDAG. Mr. Croucher is also a past vice chair of CSDA's San Die o Cha ter. 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BY LAFCO: (Office Use) 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME .---------------.---------------------------------------------------~ LAFCO EXPERIENCE: ADDITIONAL INFORMATION: Mr. Croucher currently serves on LAFCO's Special District Advisory Committee and has served as vice chair of the Special Districts Advisory Committee. He also served as the alternate for Fire Chief Augie Ghio on the LAFCO Task Force on Fire Protection and Emergency Medical Services in the past. He participated as a Board of Director with the LAFCO Municipal Service Review and has experience at the employee and staff level serving on two (2) separate successful Special District Consolidations which were requested by the a encies. Mr. Croucher is supported by both Water and Fire Districts and is endorsed by outgoing LAFCO Regular District representative, Mr. Andy Menshek.. Mr. Croucher is a long-time firefighter in San Diego and a resident of Spring Valley. He is the Division Chief for the San Miguel Consolidated Fire Protection District and during his 30 year career as a firefighter, has moved up the ranks from Firefighter, Engineer, Captain and Battalion Chief to his current position as Division Chief. He has also been recognized for numerous achievements including being named Employee of the Year and served as the President of the Executive B ard of Directors Southern Area Fire E ui ment Resea R) in 4. This form can be downloaded at the following link.· http:IIWV'M.sdlafco.org/VVhatsNew/2015Nomination.doc. ATTACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE RECEIVED BY LAFCO: (Office Use) ~tv ED SEP 18 201~ SAN DIEGO LAFCO 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME .-----~--~--------------------------~~----------------------~ NOMINATED BY: District Name: District Phone: NAME OF NOMINEE: Name: Address: Phone: NOMINATED FOR: LAFCO POSITION: Please check one box Refer to the List of ( ) Regular Special District Member (Term expires in 2017) Incumbents. DISTRICT EXPERIENCE: ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( Special Districts Adviso Committee (Term expires in 2019} LAFCO EXPERIENCE: 6 ee.. f\"T~~e.d, ADDITIONAL S ee_. ~~Q<?.:>'-'ed:. INFORMATION: This form can be downloaded at the following link:• http:llwwwsdlafco.orqtWhatsNew/2015Nomination.doc. ATTAr&..II\111=1\IT? ROBERT L. THOMAS TRUSTEE, POMERADO CEMETERY DISTRICT DISTRICT EXPERIENCE: A Board Member for 12 years, four terms as Board President Involvement with a three member Board of Trustees advising and directing the General Manager in the following areas: Annual budget and financial management Capital improvement program Staff personnel issues Development and approval of district policies and procedures Review of public requests and complaints Attendance at conference and training sessions LAFCO EXPERIENCE: Board President in 2007 when Pomerado Cemetery District updated the sphere of influence and annexed additional property into the district's prevailing boundaries A 26 year career in California local government with familiarity with LAFCO policies and procedures ADDITIONAL INFORMATION: A 26 year career in California city government with the last 13 years as Community Services Director for the City of Poway in which I was responsible for: Supervision of 25 full-time employees Oversaw city parks and recreation, performing arts center, library and transit services Staff advisor to numerous citizen advisory groups Served on multiple city and county boards and committees - DATE RECENED BYLAFCO: SEP 2 1 2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME SAN DIEGO LAFCO (Office Use) ·-.• ' ,,, .. .. ' ·_ -~· :r . ' NOMINATED' BY ': .... _.~ ,._ ,-:""-·~ -' . '···· - District Name: Rainbow Munici~al Water District District Phone: 760-728-1178 ... ~OMIN{'E ; .· ,·, '. . ·· .. N A j'111: OF .· . •. '· '. ; - Name: Tom Kennedy Address: 3707 Old Highway 395, Fallbrook, CA 92028 Phone: 760-728-1178 NOMINATED FOR: Please check one box LAFCO POSITION: ( ) Regular Special District Member (Term expires in 2017) Refer to the List of Incumbents. ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( X ) Special Districts Advisory Committee (Term expires in 2019) DISTRICT Over 30 years in municipal water and wastewater experience including EXPERIENCE: State of California, San Diego State University Department of Programmed Maintenance -1986-1987 City of Vernon -1991 -1999 Olivenhain Municipal Water District 1999-2005 and 2006-2014 Rainbow Municipal Water District 2014-present Board Member: San Diego County Water Authority, February 2015-present LAFCO EXPERIENCE: Prior to 2014 my LAFCO experience was limited to simple annexations and boundary adjustments that are normal routine activities of special districts. Since coming to work at RMWD, my experience has increased exponentially. I have read the Cortese-Knox-Hertzberg Local Government Reorganization Act cover to cover and have a dog eared copy on my desk. I have worked with LAFCO staff to interpret complex parts of the statute which can be quite a challenge. We have not always agreed, but the process has given me a broader understanding of the underpinnings of the statute. I am also involved in legislative advocacy where I feel that some minor adjustments to the statute could help clarify how to balance the rights of voters, LAFCO, and special districts. I have long felt that consolidation of Special Districts can be a great benefit for ratepayers, but only where conditions are right for success. If elected to the Special District Advisory Committee, my unique range of experiences can help identify when those conditions are present and provide input to the full Commission on these issues. San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 •' DATE RECENED , BYLAFCO: (Office Use) ADDITIONAL INFORMATION: Print name: Tom Kenned San Diego LAFCO 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME I look forward to working with representatives of other Special Districts to ensure that the delivery of critical services provided by the S ecial Districts in San Diego County is as smooth and efficient as possible. ATIACHMENT2 9335 Hazard Way, Suite 200 San Diego, CA 92123 DATE REC~IVED BYLAFCO: RECEIVED OCT 0 2 2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use) ........ N oM 1 ~'Xr~1 o~8 YL~r-vu District Name: Bonita-Sunnyside Fire Protection District District Phone: (619) 4 79-2346 NAME OF NOMINEE: Name: Thomas Pocklington Address: 3210 Kennelworth Lane, Bonita, CA 91902 Phone: (619) 885-1092 NOMINATED FOR: LAFCO POSITION: Please check one box ( ) Regular Special District Member (Term expires in 2017) Refer to the List of Incumbents. ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( X ) Special Districts Advisory Committee (Term expires in 2019) DISTRICT First elected to the Bonita-Sunnyside Fire Protection District Board in 1990, EXPERIENCE : Tom is now serving his 71h term in office. Tom has headed and served on committees that have involved District Policy, Employee and Regulation changes. Tom attends all Board meetings and participates in all district business and has served in all Board positions. LAFCO EXPERIENCE: Tom has actively worked on LAFCO issues over the last 23 years, as a member of the Advisory Committee. These issues include but not limited to annexation, consolidation and LAFCO policy issues. Tom has served on several subcommittees of the Special District Advisory Committee, including the Nomination Committee, water and sewer related issues for Districts with conflicting concerns. Tom is very knowledgeable of the Cortese-Knox- Hertzberg (C-K-H) Act of 2000 and has served as the Chairman of the Advisory Committee. ADDITIONAL Tom has the full support of the Bonita-Sunnyside FPD and would represent INFORMATION : best interest of all Districts in San Diego County. The Board of Directors endorsement is unanimous in favor of Tom's nomination. I Presiding Officer Authorized Signature.JIIIi/ .oJ./;/ - Print name: Mark Scott *In accordance with Government Code Section 56332, LAFCO Regular and Alternate Special 'Distnct Commissioners must be members of the legislative body of an independent Special District who reside in San Diego County. This form can be downloaded at the following link: http://www.sdlafco.om/INhatsNew/2015Nomination.doc. ATTACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 • DATE RECEIVED BYLAFCO: RECEIVED SEP 8 0 2015 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME (Office Use) SAN niJ::~() 1 t. r::rv"\ "",.,.,., ......~ -, 1: ·,• ·•· .. NOMINATED 8¥: ''! .~ '· _I ' ,,.;,_ :' District Name: Olivenhain Muncipal Water District District Phone: (760) 753-6466 -.,· r• .... ""17 .. NAME OF NOMINEE: •: .-~ ._, .. Name: Kimberly A. Thorner Address: 1966 Olivenhain Road, Encinitas, CA 92024 Phone: (760) 753-6466 NOMINATED FOR: "' ~ ·-"' LAFCO POSITION: Please check one box ( ) Regular Special District Member (Term expires in 2017) Refer to the List of Incumbents. ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: ( ...J ) Special Districts Advisory Committee (Term expires in 2019) DISTRICT Ms. Thorner began her tenure with Olivenhain Municipal Water District in October 1996, EXPERIENCE: becoming General Manager on January 1, 2007. Under her direction, OMWD provides water, wastewater services, recycled water, hydroelectricity, and park/recreation facilities on behalf of approximately 80,000 customers over 48 square miles in northern San Diego County. LAFCO EXPERIENCE: Ms. Thorner currently serves as Chair of the San Diego Local Agency Formation Commission's Special Districts Advisory Committee (SDAC). She has served on the SDAC for the past 8 years. She has participated and provided input and guidance on dozens of important LAFCO issues during her tenure and has spoken at many LAFCO hearings on behalf of the SDAC. ADDITIONAL Ms. Thorner earned a bachelor's degree in political science from the University of Colorado INFORMATION: (Boulder) and her Juris Doctorate from Thomas Jefferson School of Law in San Diego. She is past Chair of the San Diego North Economic Development Council's Board of Directors, current member of the Ecke Y Board of Directors, past Chair of the Ecke Y Board Finance Committee, and current member of the San Diego Integrated Regional Water Management Regional Advisory Committee. Since 2008, she holds her Special Districts Administrator certification from the Special District Leadership Foundation. Print name: Edmund K. Sprague I Presiding Officer Authorized Signatur~ k£ g y p p g ty *In accordance with Government Code Section 56332, LAFCO Regular and Alternate Special Dis;~mm1ssioners must be members of the le islative bod of an inde endent S ecial District who reside in San Die Coun . This form can be downloaded at the following link: http://www.sdlafco.omiVVhatsNew/2015Nomination.doc. ATTACHMENT 2 San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 Oct . 9. 2015 12:35 PM RECEIVED -~ .. No. 1956 P. 2 \ L:· DATE RECEIVED OCT - 9 2015 BYLAFCO; 2015 LOCAL AGENCY FORMATION COMMISSION NOMINATION I RESUME i . (Ohice Use) SAN DIEGO LAFCO NOMINATED BY: t< District Name Rincon clel Diablo Municipal Water District District Phone: 760-7 45-5522 NAME OF NOMINEE: Name: E:rin Lump r-----~ Address: 1920 N.lris Lane, Escondido, CA 92026 Phone: I (760) 215-0601 NOMINATED FOR: Pleass check one box LAFCO POSITION: ( ) Regular Special District Member (Term expires in 2017) Refsr to the List of Incumbents. ( ) Alternate Special District Member (Term expires in 2019) SPECIAL DISTRICTS ADVISORY COMMITTEE POSITION: (X) Special Districts Advisory Committee (Term expires in 2019} DISTRICT I was elected to the Rincon del Diablo Municipal Water District's EXPERIENCE: Board in November of 2014, I currently chair the Fire and Emergency Preparedness Committee and I work closely with staff to ensure public safety and oversee the district's involvement in fire protection services. I also serve on the Public Information & Intergovernmental Relations Committee, with a focus on customer, community, intergovernmental & media relations. LAFCO EXPERIENCE: I have spent my entire professional career dedicated to improving government at every level. I would be honored for the opportunity to serve on the LAFCO advisory committee and help meet the 4 main commission goals of: encouraging orderly growth, promoting logical and efficient public services for cities and special districts, streamlining governmental structure, and discouraging premature conversion of prime agricultural and open space lands to urban uses . ADDITIONAL INFORMATION: Print name:OAur t1 A· OM~ I Pres!din~ Officer Authorize~ d'; ~ *In accordance with Government Code Section 56332, LAFCO Regular and Alternate Special Dlstnct CommtssJOners must be members of the legislative body of an independent Special District who reside in San Diego County. San Diego LAFCO 9335 Hazard Way, Suite 200 San Diego, CA 92123 Board of Directors Edmund K. Sprague, President Robert F. Topolovac, Vice President Lawrence A. Watt, Treasurer Christy Guerin, Secretary Gerald E. Varty, Director November 3, 2015 Board President Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2096 0 '~~ L~ Municipal Water District RE: LAFCO Nominations-Requesting Your Support Dear Board President: General Manager Kimberly A. Thorner, Esq. General Counsel Alfred Smith, Esq. At its September 16, 2015 regular meeting, the Olivenhain Municipal Water District (OMWD) board of directors unanimously nominated Mr. Edmund (Ed) Sprague for LAFCO's regular special district commissioner position and Ms. Kimberly Thorner for the Special Districts Advisory Committee position. We are writing to respectfully request your support of both of our nominations. Mr. Sprague currently serves as alternate special district commissioner on LAFCO and has expressed interest in the regular commissioner position. He now serves as OMWD's board president and was appointed to the board in 2008. He concurrently participates on various OMWD committees, including the Ad Hoc Facilities Committee and the Ad Hoc Outreach Committee. Previous accomplishments include serving on CSDA's Professional Development Committee for the 2013, 2014, and 2015 terms, earning his Recognition in Special District Governance certification from the Special District Leadership Foundation in 2010, and serving on the board of directors of the Special District Risk Management Authority in 2011. As a lifetime resident of northern San Diego County, Mr. Sprague has dedicated his life to serving and protecting the community. His 30 years of experience in fire protection and prevention roles began when he served as a Cadet Firefighter with the City of Escondido's Fire Department. In 1986 he joined the City of Carlsbad Fire Department and rose through the ranks from FireFighter to Battalion Chief. Most recently, he served as Deputy Fire Chief I Fire Marshal for the North County Fire Protection District with responsibility for managing code enforcement, inspection, plan check, public education, and development-related services. Mr. Sprague holds bachelor's and master's degrees in public administration from San Diego State University and an associate's degree in fire science from Palomar College. His education, career in fire protection and prevention, and extensive experience in the fields of water, wastewater, parks and recreation enable him to bring a uniquely broad perspective to LAFCO. Ms. Thorner's desire to continue serving on the Special Districts Advisory Committee (SDAC) is also well- supported by her outstanding background and experience. She has served on the SDAC since 2007 and presently serves as the SDAC Chair. She has participated and provided input andguidance on dozens of important LAFCO issues during her tenure and has spoken at many LAFCO hearings on behalf of the SDAC. 1966 Olivenhain Road • Encinitas, CA 92024 Phone (760) 753-6466 . Fax (760) 753-1578. www.olivenhain.com Pure Excellence c_:., ------~ A Public Agency Providing Water Wastewater Services Recycled Water Hydroelectricity Elfin Forest Recreational Reserve In her role as General Manager for the Olivenhain Municipal Water District (OMWD), which she has held since January 1, 2007, Ms. Thorner provides water, wastewater services, recycled water, hydro- electricity, and park/recreation facilities services on behalf of approximately 80,000 customers over 48 square miles in northern San Diego County. She earned a bachelor's degree in political science from the University of Colorado (Boulder) and her Juris Doctorate from Thomas Jefferson School of Law in San Diego. Ms. Thorner is past Chair of the San Diego North Economic Development Council's Board of Directors, current member of the Ecke Y Board of Directors, past Chair of the Ecke Y Board Finance Committee, and current member of the San Diego Integrated Regional Water Management Regional Advisory Committee. She holds her Special Districts Administrator certification from the Special District Leadership Foundation since 2008. Your support for Mr. Sprague and Ms. Thorner is encouraged and greatly appreciated. Respectfully, ~~~ Edmund K. Sprague ~ -t~e~~ OMWD Board President OMWD General Manager Helix Water District Setting standards of excellence in public service November 13, 2015 Otay Water District Attn: Board President Jose Lopez 2554 Sweetwater Springs Blvd. Spring Valley, CA 91977 7811 University Avenue La Mesa, CA 91942-0427 (619) 466-0585 FAX (619) 466-1823 www.hwd.com RE: Local Agency Formation Commission Nominations-Requesting Your Support Dear President Lopez: On October 7, 2015, the Helix Water District Board of Directors unanimously nominated Director Joel A Scalzitti to serve as an alternate special district member on the LAFCO Board. Mr. Scalzitti currently sits on the Special Districts Advisory Committee and has demonstrated an understanding of the importance of special districts in our region. Mr. Scalzitti has observed and studied the duties and activities of LAFCO, and recognizes the issues, duties and responsibilities of LAFCO. Mr. Scalzitti is currently serving his fifth year on the Helix Water District Board of Directors (2000-2002) and (2012-present). He has served on the following committees: the Water Conservation Garden Joint Powers Authority in 2001 and currently as an alternate; Harry Griffin Park Steering Committee (2000-2002); Helix Water District Audit Committee (2000-2002) and (2013-2014); and the San Diego East County Economic Development Council (2013-present) as an alternate. In addition, as the Lake Jennings Committee Chair, Mr. Scalzitti has been instrumental in moving a budgetary deficit into a positive. Mr. Scalzitti also serves his community working with the Grossmont High School Advisory Committee Auto Pathways (2008-present). Your support for Mr. Scalzitti is encouraged and greatly appreciated. We believe he will be an asset to our region. Sincerely, #/i Carlos V. Lugo General Manager Helix Water District l~UCADIA WAST~WAT~R ~DI~TRICT Board of Directors Otay Water District 2554 Sweetwater Spring Blvd Spring Valley, CA 91978 LEADERS IN ENVIRONMENTAL PROTECTION December 1, 2015 BOARD OF DIRECTORS AllAN JUliUSSEN, PRESIDENT DONAlD F. OMSTED, VICE PRESIDENT JUDY K. HANSON, DIRECTOR DAVID KUlCHIN, DIRECTOR ElAINE SUlliVAN, DIRECTOR PAUl J. BUSHEE, GENERAl MANAGER Ref: 16-4775 Subject: LAFCO Elections-Request Your Vote for Ms. Judy Hanson Dear Board of Directors, On behalf of the Leucadia Wastewater District (LWD) Board of Directors, I am writing to request your vote for Ms. Judy Hanson for the Special District's Board Alternate position in the upcoming LAFCO election. The LWD Board nominated Ms. Hanson for the Alternate Board position at its September 9, 2015 meeting. Ms. Hanson presently serves as the Vice Chair of the LAFCO Special District Advisory Committee (SDAC) and has served on this committee since 1996. In addition to the SDAC, Ms. Hanson has an extensive professional background with special districts that has spanned over 50 years. She has been on the LWD Board of Directors since 1983, serving on various Board committees as well as Board president in 2003, 2007 and 2011. Ms. Hanson has also held various officer positions on the Board of Directors of the San Diego Chapter of the California Special Districts Association (CSDA), serving as Chapter President in 2004. Furthermore, Ms. Hanson was a special district employee for virtually her entire professional career, which included over 33 years of service with the San Dieguito Water District and later the City of Encinitas. As can be seen, Ms. Hanson's involvement with special districts has been extensive on a personal, professional and political level. Throughout her career, Judy has been a long-time and tireless advocate for special districts from the platform of local control and fiscal conservatism . We are confident that, if elected, Ms. Hanson will continue to make many valuable contributions to LAFCO and represent special districts in a very positive way. For these reasons, we urge you to vote for Ms. Judy Hanson for the LAFCO Special Districts Board Alternate. Your support is greatly appreciated. uli s President, Board of Directors 1960 LA COSTA AVENUE, CARLSBAD, CA 92009 ·PHONE 760.753.0155 ·FAX 760.753.3094 ·LWWD.ORG ·INFO LWWD.ORG Monday, December14,2015 Governing Board President Otay Water District 2554 Sweetwater Springs Blvd . Spring Valley, CA 91977 Lakeside Fire Protection District 12216 Lakeside Avenue Lakeside, CA 92040 Business (619)390-2350 Fax (619)443-1568 Andy Parr Fire Chief SUBJECT: LAFCO SPECIAL DISTRICTS ADVISORY COMMITTEE -REQUESTING YOUR SUPPORT Dear Governing Board President, The Governing Board of the Lakeside Fire Protection District has nominated Lakeside Fire Protection District Director Bob Robeson as a candidate for an opening on the LAFCO SPECIAL DISTRICT'S ADVISORY COMMITTEE. We respectfully request your support for our nomination with your agency's vote for Bob Robeson for this position. Mr. Robeson is well qualified for this position and is currently serving on the GSA No. 69 CITIZEN'S ADVISORY COMMITTEE and the HEARTLAND FIRE TRAINING AUTHORITY COMMISSION. He is very active in the Community of Lakeside and serves as President of EUCALYPTUS HILLS LANDOWNER'S ASSOCIATION and President of the EUCALYPTUS HILLS FIRE SAFE COUNCIL, which he, in large part, organized . Bob also holds a seat on the LAKESIDE REVITALIZATION COMMITTEE, chaired by Supervisor Dianne Jacob. Mr. Robeson had an active, 38 year career with the California Department of Forestry. He joined CDF while in high school and worked through the ranks, becoming a Chief Officer and Peace Officer for 23 of his 38 years. As a Chief Officer he worked in San Diego, Orange and Santa Clara Counties and participated on a CDF Vegetation Management Committee in Sacramento; The VMP committee developed the CDF's "Vegetation Management I Controlled Burning Program" in 1981 . In 1983 Mr. Robeson returned to the San Diego Unit and organized the unit prescribed burning program, accomplishing 6 contracts by burning and treating over 6000 acres the very first year. In 2012 the Lakeside Fire District organized a Logistical Volunteer Group (LVG) Program to assist in daily support and logistic operations within the department. In lieu of becoming an LVG, Mr. Robeson volunteered to assist the Fire Chief as a "Volunteer Community Liaison Officer" and Bob worked as a volunteer staff member communicating with the Lakeside Community leaders, organizations and cooperators. Mr. Robeson is very familiar with LAFCO procedures. In 1975, while working for CDF in the role of a Chief Officer, Bob led the effort on a large annexation for the Grossmont Mt. Helix Fire Protection District. In support of that effort; he met with and attended . LAFCO meetings, represented the (former) District in many open and public meetings, completed all of the required LAFCO (and CDF) documentation, and became very familiar with the LAFCO system during that time. Bob Robeson is engaged with the LAFCO process, is concerned about the interests of all special districts, and wants the future of LAFCO to assure that Fire Districts are represented very well on this very influential committee. Please join us in supporting Bob Robeson with your Board's vote for a seat on the LAFCO Special District's Advisory Committee. Respectfully, ~___/' 'PetefALiebig, Board President Lakeside Fire Protection District January 8, 2016 Mitch Thompson Otay Water District 2554 Sweetwater Springs Blvd Spring Valley CA 91978 Subject: Dennis Sanford Nomination for LAFCO Alternate Commissioner Seat Dear Mr.Thompson: As you know, there is an election coming up for an Alternate seat on the San Diego Local Agency Formation Commission (LAFCO). The Board of Directors of the Rainbow Municipal Water District nominated me to run for this position-a task I was honored to accept. Over the last several years I have been working closely with LAFCO staff and others related to a number of topics. While the most publicized efforts were related to the Fallbrook PUD merger application, at Rainbow we have also handled more routine annexations and other less controversial LAFCO activities. I realize that much has been made in the media about Rainbow and our opposition to the FPUD efforts, but this does not mean that I do not value LAFCO and the important role it plays in our local governments. I was one of the leaders who supported the formation of the Joint Powers Authority and am in favor of consolidations under the right conditions. Unfortunately, the conditions present between RMWD and FPUD were not amenable to a successful merger. Over the last several years I have gained a great deal of experience and knowledge related to LAFCO and the statutes that are the foundation of its actions. This experience is essential to being a successful member of the Commission. I would be honored to receive your vote to serve our region as an Alternate Member on the Commission. Sincerely, Dennis Sanford President, RMWD Board of Directors 3707 Old Highway 395 • Fallbrook, CA 92028 (760) 728-1178 • Fax (760) 728-2575 • www.rainbowmwd.com STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: February 3, 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 2-3-16.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 17, 2016 September 21, 2016 October 19, 2016 November 16, 2016 December 21, 2016 SPECIAL BOARD MEETINGS: BOARD WORKSHOPS: STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 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: Staff Training and Education – As part of Purchasing’s continuing education goals, staff participated in the half- day Prevailing Wage Update and Workshop organized by CAPPO San Diego and held at San Diego City College with emphasis on the implementation of SB854, the State of California’s new public works contractor registration program. Presenting was Eric Rood, Assistant State Labor Commissioner, who has spent the last 15 years working for the Division of Labor Standards Enforcement, also known as the Labor Commissioner’s office. Human Resources: Management Team Training - HR, in coordination with our Worker’s Compensation provider and our Employee Assistance Program, hosted a training in January for our managers, supervisors and lead employees. The training session provided refreshers about these two programs offered and a review of related District procedures. Recruitments - The District is recruiting for Communications Officer and Communications Assistant positions for an upcoming vacancy expected in June 2016 due to a pending retirement. These positions are critical to District operations. Moss vs. Otay Water District – The case between Moss and Otay Water District has recently been settled. 2 Safety & Security: Emergency Preparedness: o Emergency Supplies 72-Hour Kits – As part of the District’s emergency preparedness plan, 72-hour emergency supplies kits were distributed to the 31 District identified first responders and EOC contacts. o WebEOC Training Exercise - Staff completed the January 2016 monthly exercise, which consisted of reviewing the District Water Agencies Emergency Collaborative (WAEC) contacts list, updating as needed/required, and e-mailing the information to SDCWA point of contact Carol Olvera, colvera@sdcwa.org. Safety Training and Programs: o Active Shooter – Completed training with Customer Service and Engineering front counter staff. Training consisted of Department of Homeland Security recommended actions. o Respiratory Training – Facilities and Water Systems staff completed medical respiratory evaluations and refresher training. Meetings: o Safety Committee – The Committee completed its calendar year 4th quarter meeting. Topics included Confined Space training outline, regulatory requirements, and equipment. Year-to-date injury information and full details of topics covered in the meeting can be accessed on Sharepoint. INFORMATION TECHNOLOGY AND STRATEGIC PLANNING: Disaster Recovery/Business Continuity - Staff began the re- engineering of business critical system backup and recovery services. This effort will enhance business continuity of District technology services by co-locating backup systems to a redundant data center facility. In the event of a major service interruption at the Admin facilities, the re-engineered architecture will enable staff to run business critical technology services by redirecting access to the co-location site. The project is expected to be completed by the end of April 2016. Leak Detection Project – Staff is supporting the Operations department with GPS data and other terrestrial information for the District’s leak detection program. The information will be used by the leak detection consultant to produce pipeline status reports. 3 FINANCE: FY2016 Forecast - At the request of the Board, staff prepared a full-year forecast of the financial results including, but not limited to, the March 1, 2016 rate increase, City of San Diego recycled price increase, conservation, and the District savings plan. Board of Directors Expenses – Attached is the Board of Directors Expenses for the 1st Quarter of Fiscal Year 2016 (FY 2016). Expenses for the quarter totaled $5,829.46 for a total of $5,829.46 for the first quarter of FY 2016. Turf Removal Rebates - MWD funded turf removal rebate final inspections were scheduled for Steele Canyon Golf Club and Eastlake III Community Association. In their commercial rebate applications, Steele Canyon Golf Club cited 1,518,310 square feet of grass being removed, while Eastlake III Community Association cited 55,154 square feet. MWD field staff measured representative sample portions of each site to ensure accuracy of the reported square footage, which is the basis for the rebate amount. Financial Reporting: o For the six months ended December 31, 2015, there are total revenues of $41,713,864 and total expenses of $42,255,136. The expenses exceeded revenues by $541,272. The reduced water sales from conservation is driving the year-to-date expenses to exceed the year-to-date revenue. o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of December 31, 2015 total $82,804,610 with an average yield to maturity of 0.77%. The total earnings year-to-date are $315,588. ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: SR-11 Potable Water Utility Relocations: This project consists of the relocation of existing pipelines in Sanyo Avenue and utility easements and is currently in the construction phase. The contractor, Coffman Specialties Inc., has relocated the 10-inch, 12-inch, and 18-inch mains and these mains have been tied into the system. On December 14, 2015, Caltrans was invoiced $1,367,858 for a partial payment associated with the pipeline relocations and $143,966 final payment associated with the blow-off relocation. It is anticipated that this construction contract will reach contract acceptance in February, 2016, pending the completion of punch list items. The overall project is within budget and on schedule. (P2453) 4 944-1, 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. The overall project reached substantial completion on December 3, 2015 (beyond the approved contract date). A credit change order to complete the assessment of liquidated damages associated with the project’s late delivery will be presented at the February, 2016 Meeting of the Board of Directors. (P2531, P2532, P2535) Ralph W. Chapman Water Reclamation Facility (RWCWRF) Return Activated Sludge (RAS) Pumps Replacement Project: This Project consists of removal and replacement of the existing 5 horsepower (HP) RAS pumps with upgraded 20 HP units. All planned pump replacements have been completed and this project reached substantial completion on December 23, 2015. Contract acceptance is anticipated in January, 2016, pending the completion of punch list items. The project is within budget and on schedule. (R2111) Sweetwater River Trestle Improvements Project: This project consists of installing fire protective measures to the underside of the trestle, ensuring the structural integrity of the bridge, and improving safety features for District personnel. The addition of the fire resistance measures will enable the trestle to endure a longer fire event (over three hours with the heat shields, as opposed to about 1.5 hours without). The project reached substantial completion in January, 2016. Contract acceptance is anticipated in February, 2016, pending the completion of punch list items. The project is within budget and on schedule. (R2109) 624 Pressure Zone Pressure Reducing Stations (PRSs) and 944-1R Pressure Reducing Station No. 3 Improvements Projects: This construction project consists of improvements from two (2) Capital Improvement Program (CIP) projects, P2541 and R2110. The CIP P2541 improvements will provide two (2) PRSs feeding the 485 Pressure Zone and 458 Pressure Zones from the 624 Pressure Zone (Terra Nova Drive 624/485 PRS and Sequoia Street 624/458 PRS, respectively) to improve fire flow and enhance system reliability. The CIP R2110 improvements include retrofit of an existing PRS vault (944-1R PRS No. 3) with a sump pump, ventilation system, and hatch drain improvements to mitigate water intrusion. Potholing work for the project has been completed and long-lead items have been ordered. It is anticipated that work to construct the new facilities will begin in early February, 2016. The project is within budget and is scheduled to be completed in March, 2016. (P2541, R2110) 5 Rosarito Desalination: 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. Comisión Estatal del Agua de Baja California (CEA), an agency that is responsible for regulating the State’s water and sewerage industry, issued an invitation to bid to all interested parties for a desalination project in Rosarito. The tenders for the production and conveyance of desalinated water will be evaluated by these state agencies. The General Manager has continued meeting with Carlo Bonfante, Secretary of Economic Development of the State of Baja California, as the point person for the Governor of Baja California on the desalination Project. The conversations have been focused on the quantity and the price point for the product water and the water quality requirements. The draft EIR/EIS has been completed and is being reviewed by the Department of State (DOS). The draft EIR/EIS is tentatively scheduled to be ready for its 45-day public review period in February, 2016. (P2451) 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 started removal of the interior coating at the 711-1 Reservoir. In addition, structural repair work for the roof support system was identified at the 711-1 Reservoir. The contractor has begun work to complete the structural repair, as provided under the project’s allowance items. The project is within budget and on schedule to complete in July, 2016. (P2529 & P2530) 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. Construction for the project began in January, 2016. The current work consists of site demolition, clearing and grubbing, and erosion control. The project is on schedule to complete in May, 2016. (P2537) 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 6 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. At the January, 2016 Board Meeting, the Board authorized the General Manager to enter into an agreement with Advanced Industrial Services, Inc. from Los Alamitos, CA. It is anticipated that construction will begin in February, 2016. The project is on schedule. (P2545) 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. A fill station is proposed at the end of Hunte Parkway. The facility will be a locked enclosure within a public right-of-way 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 January 8, 2016 the District received the Notice of Applicability from the San Diego Regional Water Quality Control Board with the requirements that must be met to comply with the General Order. The District will be required to prepare and process an amendment to the existing permit to update the Rules and Regulations for Recycled Water Use and submit a program for training for review and approval by the Regional Board, DDW, and the County DEH. A yearly report will also be required to document the use, training, and inspection performed by the District. (R2122) District Administration Vehicle Charging Stations: This project consists of the installation of electric charging stations for employee-owned alternative fueled vehicles to support the needs of these vehicles and their limited driving range. The District has retained BSE Electrical, an electrical engineering firm, to prepare the design for two (2) stations. Staff has identified a preliminary location for the two (2) stations that will serve four (4) employee parking spaces near the Administration building’s rear employee entry, adjacent to the electric room and emergency generator. Project is anticipated to be complete by October, 2016. (P2547) Storm Water Discharge Permitting: The District recently obtained coverage from the San Diego Regional Water Quality Control Board (Regional Board) for storm water discharges from the RWCWRF under the revised statewide Industrial General NPDES (National Pollutant Discharge Elimination System) Permit. The revised permit has Numeric Action Levels that, if exceeded, require increased response and monitoring. It also requires specific mandatory BMPs, designation of a Storm Water Pollution Prevention Team, and has more stringent training requirements than the previous Permit. The 7 treatment plant is the only facility within the District that is designated as an Industrial Facility. Storm water discharges from Reservoirs and Pump Stations within the District flow into city or county storm water systems. District construction projects that disturb an acre or more must obtain coverage for storm water discharges under the Regional Board Construction National Pollutant Discharge Elimination System (NPDES) General Permit and this is generally included as a requirement for Contractors in the project specifications. At the present time, the District does not have any projects under construction that disturb an acre or more. Disposal of Real Estate Properties Declared Surplus by the Board: The District, through a competitive process based on qualifications and pricing, secured the real estate brokerage services of the Norberg Group to support the disposal of six (6) properties declared surplus by the Board. On March 13, 2015, the District entered into listing agreements with the Norberg Group for the six (6) properties. The District has closed escrow for four (4) of the surplus properties which are located at Steele Canyon Road, Wild Mustang Place, Proctor Valley, and Sweetwater Springs Boulevard. Two (2) surplus properties, located at Dorchester Street and Star Acres, are currently listed. Ralph W. Chapman Water Reclamation Facility (RWCWRF) Indirect Potable Reuse/Direct Potable Reuse (IPR/DPR) with Sweetwater Authority: Staff from both the District and Sweetwater Authority (SWA) continue to meet to discuss the major issues associated with an IPR/DPR project. Staff has retained Atkins Global and Michael Welch to prepare a high level report identifying the needed upgrades to the RWCWRF, the regulatory issues of an IPR/DPR project, and to produce a rough planning level cost per acre-foot for the product water delivered to SWA’s Reservoir. A draft report was submitted to staff for review in December 2015 and it is anticipated that a draft of the report will be submitted to SWA for review and comment by February, 2016. For the month of December, 2015, the District sold 19 meters (106.5 EDUs) generating $1,070,583 in revenue. Projection for this period was 14 meters (21 EDUs), with budgeted revenue of $190,542. Total revenue for Fiscal Year 2016 is $2,478,422, against the annual budget of $2,286,500. WATER SYSTEM OPERATIONS (Reporting the month of December): On January 13, staff coordinated the emergency shutdown and repair of the 944-1 Pump Station discharge pipeline (installed in 1962) that supplies the Jamul area of the District. Based on multiple factors, including but not limited to: depth of pipe, expected excessive ground water and being located within an environmentally sensitive area, an outside contractor, TC Construction, was utilized to perform the work. Repairs were completed to the rusted 8 section of the blow off riser while the remaining exposed sections of the 16-inch pipeline were found to be in good condition. The ten affected customers were restored to normal service that evening. The work performed by TC Construction, was expeditious, professional, and efficient. The final cost of the repairs performed by the contractor were $31,123.40. Beginning on February 1, and into the end of March, pro-active leak detection will be taking place covering approximately 20% of the District’s oldest pipelines. Notifications about the project were sent to customers in late January via emails, phone campaigns, District newsletters, and social media. Lasty, written communication was sent to targeted areas, including their respective police departments. On February 1, and lasting for approximately one week, District contractors will begin doing semi-annual cleaning of the District’s flexible covered reservoirs, as required by the State. Staff continues to clean and CCTV the sewer system with no spills being experienced. Conservation and Water Purchases: Conservation Target - The District conserved 15% in December over 2013 totals. To date, the District is exceeding the State mandated target of 20% with a cumulative savings of 23%. Below is a chart showing the District’s savings from June through December 2015. 9 The December potable water purchases were 1,777.6 acre-feet which is 8.8% below the budget of 1,948.6 acre-feet. The cumulative purchases through December is 13,300.8 acre-feet which is 16.0% below the cumulative budget of 18,839.3 acre-feet. The December recycled water purchases and production was 183.9 acre-feet which is 23.1% below the budget of 149.4 acre-feet. The cumulative production and purchases through December is 2,027.2 acre-feet which is 12.9% below the cumulative budget of 2328.5 acre-feet. 10 Potable, Recycled, and Sewer (Reporting up to the month of November): Total number of potable water meters is 49,458. Recycled water consumption for the month of December is as follows: - Total consumption was 220.2 acre-feet or 71,727,964 gallons and the average daily consumption was 2,313,805 gallons per day. - Total cumulative recycled water consumption since July 1, 2015 is 2013.5 acre-feet. - Total number of recycled water meters is 712. Wastewater flows for the month of December were as follows: - Total basin flow, gallons per day: 1,517,677. This is a decrease of 9.2% from December 2014. - Spring Valley Sanitation District Flow to Metro, gallons per day: 502,061. - Total Otay flow, gallons per day: 1,015,613. - Flow Processed at the Ralph W. Chapman Water Recycling Facility, gallons per day: 998,903. - Flow to Metro from Otay Water District was 35,516 gallons per day. By the end of December there were 6,097 wastewater EDUs. Check Total 14,870.00 16,035.48 1,980.00 1,980.00 2044911 12/22/15 10970 BRENNTAG PACIFIC INC BPI581974 12/03/15 SODIUM HYPOCHLORITE 1,516.38 UB Refund Cst #0000208985 17.03 17.03 2045037 01/13/16 15570 BEYOND IDEAS LLC OWD0115 12/04/15 WEBSITE CONSULTING 2045036 01/13/16 16992 BERNARD TRUST Ref002454469 01/11/16 400.00 2044991 01/06/16 00145 BARRETT ENGINEERED PUMPS 97596 12/21/15 SAMPLE PUMP 1,126.97 1,126.97 340.00 340.00 2045035 01/13/16 12810 ATKINS 1828649 11/28/15 DESIGN SERVICES (ENDING 11/29/15)400.00 TELEPHONE SERVICES (12/2/15-1/1/16)6,110.49 6,110.49 2044910 12/22/15 12810 ATKINS 1826985 11/28/15 DESIGN SERVICES (ENDING 11/1/15) 0059049IN 12/15/15 4" SENSUS OMNI METERS 7,851.60 2045079 01/20/16 07785 AT&T 000007503734 01/02/16 16.71 16.71 2044990 01/06/16 03492 AQUA-METRIC SALES COMPANY 0059048IN 12/15/15 8" OMNI T2 METER 8,183.88 EMPLOYEE ASSISTANCE PROG (JAN-MAR 2016)934.37 934.37 2045034 01/13/16 16988 ANTONIO MAR Ref002454465 01/11/16 UB Refund Cst #0000168400 2045033 01/13/16 08967 ANTHEM BLUE CROSS EAP 55517 12/28/15 41.62 2044909 12/22/15 16958 ANNA FLORES 0530121715 12/18/15 CUSTOMER REFUND 4,082.76 4,082.76 6,073.00 6,073.00 2044967 12/29/15 16960 ANGIE HERNANDEZ Ref002453664 12/28/15 UB Refund Cst #0000015806 41.62 PAGERS (DEC 2015)178.38 178.38 2045032 01/13/16 00107 AMERICAN WATER WORKS ASSN 7001133247 11/29/15 MEMBERSHIP RENEWAL CM201574 12/11/15 MGMT / INSP (11/1/15-11/30/15)900.00 2045031 01/13/16 06166 AMERICAN MESSAGING L1109570QA 01/01/16 CM201575 12/11/15 MGMT / INSP (11/1/15-11/30/15)1,260.00 CM201573 12/11/15 MGMT / INSP (5/1/15-11/30/15)900.00 CM201577 12/11/15 MGMT / INSP (11/1/15-11/30/15)1,630.00 CM201576 12/11/15 MGMT / INSP (11/1/15-11/30/15)1,430.00 4,650.00 CM201580 12/11/15 MGMT / INSP (11/1/15-11/30/15)2,100.00 CM201578 12/11/15 MGMT / INSP (11/1/15-11/30/15)2,000.00 FINGERPRINTING REIMBURSEMENT 20.00 20.00 2044989 01/06/16 14462 ALYSON CONSULTING CM201579 12/11/15 MGMT / INSP (11/1/15-11/30/15) 2044908 12/22/15 16959 ALEJANDRO GARCIA 12172015AG 12/22/15 47.47 2044907 12/22/15 15024 AIRX UTILITY SURVEYORS INC 27 12/07/15 LAND SURVEYING (11/1/15-11/30/15)1,700.00 1,700.00 8,760.85 8,760.85 2044906 12/22/15 13753 AIRGAS USA LLC 9932051309 11/30/15 BREATHING AIR BOTTLES 47.47 711-1 & 2 RESERVOIR (ENDING 12/31/15)61,821.25 61,821.25 2044988 01/06/16 12174 AECOM TECHNICAL SERVICES INC 35 12/16/15 DISINFECTION SYSTEM (ENDING 11/27/15) 2045078 01/20/16 13901 ADVANCED INDUSTRIAL SVCS INC 112312015 01/11/16 2,062.50 2044905 12/22/15 08488 ABLEFORCE INC 5953 12/02/15 SHAREPOINT SERVICES (11/4/15-11/30/15)1,875.00 1,875.00 Amount 2045077 01/20/16 08488 ABLEFORCE INC 6051 01/04/16 SHAREPOINT SERVICES (12/01/15-12/17/15)2,062.50 CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 3,011.44 2,360.32 1,568.69 887.50 17,445.71 832.00 82667 01/01/16 BACTERIOLOGICAL TESTING (12/4/15-12/5/15)246.00 BACTERIOLOGICAL TESTING 360.00 82670 01/01/16 BACTERIOLOGICAL TESTING 360.00 82174 11/30/15 BACTERIOLOGICAL TESTING 166.00 2045083 01/20/16 04119 CLARKSON LAB & SUPPLY INC 82669 01/01/16 BACTERIOLOGICAL TESTING (11/23/15)500.00 82173 11/30/15 BACTERIOLOGICAL TESTING (11/2/15)166.00 2044919 12/22/15 04119 CLARKSON LAB & SUPPLY INC 82175 11/30/15 4,281.92 2045040 01/13/16 14883 CINDY TERHUNE Ref002454461 01/11/16 UB Refund Cst #0000021410 22.41 22.41 307.95 307.95 2044918 12/22/15 15256 CIGNA GROUP INSURANCE / LINA 9267121015 12/21/15 AD&D & SUPP LIFE INS (DEC 2015)4,281.92 2015 UWMP UPDATE (9/26/15-10/30/15)1,018.50 1,018.50 2045039 01/13/16 04349 CHAMBERS, JONATHAN 12282015JC 12/28/15 TUITION REIMBURSEMENT BJX8804 12/03/15 CRADLEPOINT ROUTERS 2,309.50 2044996 01/06/16 16746 CH2M HILL ENGINEERS INC 381047682 12/15/15 3,300.00 2044917 12/22/15 03232 CDW GOVERNMENT INC BJX3272 12/03/15 CRADLEPOINT ROUTERS 15,136.21 8,170.00 8,170.00 2045082 01/20/16 03232 CDW GOVERNMENT INC BNN5928 12/22/15 SOFTWARE LICENSES 3,300.00 REPROGRAPHICS SERVICES 657.00 657.00 2044916 12/22/15 10571 CCL CONTRACTING 111302015 12/14/15 624 PZ/944-1 PRS IMPROV (ENDING 11/30/15) 7950 11/30/15 DOCUMENT DESTRUCTION & SCANNING 376.50 2045081 01/20/16 02758 CARMEL BUSINESS SYSTEMS INC 7963 12/22/15 38.50 2044915 12/22/15 02758 CARMEL BUSINESS SYSTEMS INC 7951 11/30/15 REPROGRAPHICS SERVICES 511.00 80.00 80.00 2044995 01/06/16 02758 CARMEL BUSINESS SYSTEMS INC 7957 12/10/15 DESTRUCTION SERVICES (12/9/15)38.50 MEMBERSHIP RENEWAL 164.00 164.00 2044914 12/22/15 01243 CALIFORNIA-NEVADA SECTION 00832121715 12/17/15 CERTIFICATE RENEWAL 2044994 01/06/16 00192 CALIFORNIA WATER ENVIRONMENT 145941010416 01/04/16 2,631.40 2044913 12/22/15 00192 CALIFORNIA WATER ENVIRONMENT 145941121715 12/17/15 CERTIFICATE RENEWAL 86.00 86.00 45.00 45.00 2044912 12/22/15 16252 CALIFORNIA UNITED BANK 211302015 12/03/15 RETENTION / R2109 (ENDING 11/30/15)2,631.40 PIPELINE LEAK 200.00 200.00 2044993 01/06/16 16745 CALIFORNIA TITLE SEARCH CO 1215439 12/22/15 EASEMENT SEARCH 2045038 01/13/16 16995 CALIFORNIA REGIONAL WATER 01112015 01/11/16 SODIUM HYPOCHLORITE 805.18 BPI588364 12/30/15 SODIUM HYPOCHLORITE 763.51 2045080 01/20/16 10970 BRENNTAG PACIFIC INC BPI587171 12/23/15 SODIUM HYPOCHLORITE 1,221.82 BPI584170 12/11/15 SODIUM HYPOCHLORITE 1,138.50 BPI580215 11/25/15 SODIUM HYPOCHLORITE 1,495.06 2044992 01/06/16 10970 BRENNTAG PACIFIC INC BPI586022 12/17/15 2044911 12/22/15 10970 BRENNTAG PACIFIC INC BPI581974 12/03/15 SODIUM HYPOCHLORITE 1,516.38 Page 2 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,340.00 2,340.00 1,130.00 639.00 125.28 825.00 1,545.00 53,989.20 53,989.20 LAB ANALYSIS (12/15/15-12/29/15)552.75 552.75 2045001 01/06/16 03725 ENVIRONMENTAL SYSTEMS RESEARCH 93012881 08/04/15 ENTERPRISE LICENSE/SUPP (7/26/15-7/25/16) 2045088 01/20/16 03227 ENVIROMATRIX ANALYTICAL INC 6010358 01/04/16 12/21/15 LAB ANALYSIS (12/3/15-12/14/15)915.00 5120668 12/14/15 LAB ANALYSIS (11/25/15-12/10/15)630.00 525.00 5111023 11/30/15 LAB ANALYSIS (11/14/15-11/17/15)300.00 2045000 01/06/16 03227 ENVIROMATRIX ANALYTICAL INC 5120857 EMPLOYEE BENEFITS (NOV 2015)685.00 685.00 2044926 12/22/15 03227 ENVIROMATRIX ANALYTICAL INC 5120478 12/07/15 LAB ANALYSIS (11/18/15-12/1/15) 199719 12/22/15 OUTSIDE SERVICES 48.60 2045043 01/13/16 08023 EMPLOYEE BENEFIT SPECIALISTS 0072776IN 11/30/15 81.08 2045042 01/13/16 14008 DELL AWARDS 199728 12/23/15 OUTSIDE SERVICES 76.68 1,496.00 1,496.00 2044999 01/06/16 04073 DATA BUSINESS SYSTEMS INC 105352 12/09/15 TAX FORMS 81.08 INTERNET SERVICES (12/29/15-1/28/16)600.00 600.00 2044925 12/22/15 15898 D & D WILDLIFE HABITAT 53908 12/14/15 VEGETATION REMOVAL 2044998 01/06/16 02756 COX COMMUNICATIONS INC 99601123015 12/30/15 355.00 2003193E615541215 01/04/16 SHUT DOWN TEST (12/28/15)142.00 2003193E615661215 01/04/16 SHUT DOWN TEST (12/9/15)142.00 SHUT DOWN TEST (11/25/15)142.00 142.00 2045041 01/13/16 00184 COUNTY OF SAN DIEGO 2003193E602491215 01/04/16 SHUT DOWN TEST (12/2/15) 2044924 12/22/15 00184 COUNTY OF SAN DIEGO 2003193E615541115 12/04/15 2,390.90 2044923 12/22/15 00134 COUNTY OF SAN DIEGO 121715 12/17/15 VARIANCE PERMIT 107.00 107.00 395.18 395.18 2044997 01/06/16 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD111512/14/15 EXCAVATION PERMITS (NOV 2015)2,390.90 TAPE STORAGE (DEC 2015)392.35 392.35 2044922 12/22/15 12334 CORODATA MEDIA STORAGE INC DS1271069 11/30/15 TAPE STORAGE (NOV 2015) 2045087 01/20/16 12334 CORODATA MEDIA STORAGE INC DS1271485 12/31/15 DATA SERVICES (DEC 2015)605.00 81651055 12/31/15 DATA SERVICES (DEC 2015)525.00 81636954 11/30/15 DATA SERVICES (NOV 2015)525.00 2045086 01/20/16 15049 CORELOGIC SOLUTIONS LLC 81646409 12/31/15 81619223 09/30/15 DATA SERVICES (SEPT 2015)605.00 81589393 08/31/15 DATA SERVICES (AUG 2015)605.00 1,200.00 2044921 12/22/15 15049 CORELOGIC SOLUTIONS LLC 81638620 11/30/15 DATA SERVICES (NOV 2015)605.00 294.20 294.20 2045085 01/20/16 03307 CONSTRUCTION MANAGEMENT 89283 10/21/15 CMAA DUES 1,200.00 INTERNET CIRCUITS (JAN 2016)3,047.00 3,047.00 2044920 12/22/15 11056 CONCHAS, FREDERICK 12212015FC 12/22/15 TUITION REIMBURSEMENT 82668 01/01/16 BACTERIOLOGICAL TESTING (12/4/15)166.00 2045084 01/20/16 15616 COGENT COMMUNICATIONS INC 0001010116 01/01/16 82666 01/01/16 BACTERIOLOGICAL TESTING (11/30/15)208.00 Page 3 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 433.39 11,187.11 1,089.00 1,089.00 2045047 01/13/16 10973 HDR ENGINEERING INC 21 11/30/15 CORROSION SERVICES (9/27/15-10/31/15)11,187.11 INSURANCE PREMIUM 750.00 750.00 2045046 01/13/16 05986 HAVS INCORPORATED 7282 12/15/15 OUTSIDE SERVICES 2045005 01/06/16 02795 HARTFORD INSURANCE CO, THE 13911443 12/08/15 TUBING FITTINGS 238.71 004G1454 12/07/15 TUBING FITTINGS 194.68 2044936 12/22/15 00201 HARRINGTON INDL PLASTICS LLC 004G1208 11/24/15 8,909.50 2044935 12/22/15 00174 HACH COMPANY 9671655 11/16/15 HACH ANALYZERS 3,050.06 3,050.06 8,909.50 8,909.50 2045093 01/20/16 12907 GREENRIDGE LANDSCAPE INC 13791 12/28/15 LANDSCAPING SERVICES (DEC 2015)8,909.50 SEWAGE PUMP & HOSE 1,249.99 1,249.99 2044934 12/22/15 12907 GREENRIDGE LANDSCAPE INC 13708 11/30/15 LANDSCAPING SERVICES (NOV 2015) 2045004 01/06/16 00101 GRAINGER INC 9917171853 12/14/15 3,500.00 2045045 01/13/16 10291 GOIN, JEFF 010216 01/07/16 SAFETY BOOTS 134.99 134.99 1,400.00 1,400.00 2045092 01/20/16 13563 FRIENDS OF THE WATER 285 12/22/15 GARDEN TOURS (DEC 2015)3,500.00 PAINT 1,609.57 1,609.57 2044933 12/22/15 13563 FRIENDS OF THE WATER 270 08/31/15 GARDEN TOURS (AUG 2015) 2044932 12/22/15 07224 FRAZEE INDUSTRIES INC 14444 11/30/15 100.00 2044970 12/29/15 02344 FRANCHISE TAX BOARD Ben2453689 12/30/15 BI-WEEKLY PAYROLL DEDUCTION 433.88 433.88 49,996.60 49,996.60 2045044 01/13/16 02344 FRANCHISE TAX BOARD Ben2454491 01/14/16 BI-WEEKLY PAYROLL DEDUCTION 100.00 VEHICLE WASHING 38.70 38.70 2044931 12/22/15 16119 FORDYCE CONSTRUCTION INC 211302015 12/03/15 SWEETWATER RIVER TRESTLE (ENDING 11/30/15) 2044930 12/22/15 11962 FLEETWASH INC x652887 12/04/15 135.00 2045003 01/06/16 11962 FLEETWASH INC x662637 12/18/15 VEHICLE WASHING 116.21 116.21 508.54 508.54 2044929 12/22/15 02591 FITNESS TECH 9854 12/01/15 EQUIPMENT MAINTENANCE (DEC 2015)135.00 COFFEE SERVICES 479.52 479.52 2045002 01/06/16 16469 FIRST CHOICE SERVICES 051449 12/14/15 COFFEE SERVICES 2044928 12/22/15 16469 FIRST CHOICE SERVICES 050353 11/30/15 99.00 2045091 01/20/16 16469 FIRST CHOICE SERVICES 052539 12/29/15 COFFEE SERVICES 353.80 353.80 99.00 99.00 2045090 01/20/16 12187 FIRST AMERICAN DATA TREE LLC 9003401215 12/31/15 ONLINE DOCUMENTS (MONTHLY)99.00 UB Refund Cst #0000222329 45.43 45.43 2044927 12/22/15 12187 FIRST AMERICAN DATA TREE LLC 9003401115 11/30/15 ONLINE DOCUMENTS (MONTHLY) 2044969 12/29/15 16969 EXCEL PROPERTIES Ref002453674 12/28/15 240.00 2044968 12/29/15 16970 EVAN SALEM Ref002453675 12/28/15 UB Refund Cst #0000223402 821.66 821.66 53,989.20 53,989.20 2045089 01/20/16 14320 EUROFINS EATON ANALYTICAL INC L0247189 01/06/15 OUTSIDE LAB SERVICES (12/8/15)240.00 2045001 01/06/16 03725 ENVIRONMENTAL SYSTEMS RESEARCH 93012881 08/04/15 ENTERPRISE LICENSE/SUPP (7/26/15-7/25/16) Page 4 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 54.12 7,923.10 9,691.28 20,835.33 17,886.55 17,437.94 2,246.20 47.76 171.92 171.92 2044973 12/29/15 16961 KENYON YOUNG Ref002453665 12/28/15 UB Refund Cst #0000017806 47.76 UB Refund Cst #0000223050 35.21 35.21 2044972 12/29/15 16840 JOEL BELTRAN Ref002453667 12/28/15 UB Refund Cst #0000170186 676990 12/21/15 CHEMICALS FOR TREATMENT PLANT 3,123.10 2045052 01/13/16 16994 JERRY CARTER Ref002454471 01/11/16 677025 CREDIT MEMO -2,000.00 676265 12/10/15 CHEMICALS FOR TREATMENT PLANT 3,123.10 UB Refund Cst #0000208904 5.93 5.93 2045006 01/06/16 10563 JCI JONES CHEMICALS INC 676273 CREDIT MEMO -2,000.00 2045051 01/13/16 16991 JANICE GRIMSLEY Ref002454468 01/11/16 3,103.34 2044942 12/22/15 16957 ISRAEL RAMIREZ 9503121815 12/18/15 CUSTOMER REFUND 1,155.24 1,155.24 226.00 226.00 2045050 01/13/16 13899 INTERMEDIA.NET INC 1601001602 01/01/16 EMAIL SERVICES 3,103.34 PLANT SERVICES (DEC 2015)226.00 226.00 2044941 12/22/15 02372 INTERIOR PLANT SERVICE INC 14110 11/20/15 PLANT SERVICES (NOV 2015) 99761 12/02/15 BILL PRINTING SERVICES (NOV 2015)2,018.71 2045095 01/20/16 02372 INTERIOR PLANT SERVICE INC 15172 12/20/15 BILL PRINTING SERVICES (NOV 2015)11,307.15 99586 11/30/15 BILL PRINTING SERVICES (NOV 2015)4,112.08 2044940 12/22/15 08969 INFOSEND INC 99587 11/30/15 BILL PRINTING SERVICES (DEC 2015)13,888.86 100762 12/31/15 BILL PRINTING SERVICES (DEC 2015)3,997.69 100148 12/17/15 BILL PRINTING SERVICES (11/20/15)18.72 2045094 01/20/16 08969 INFOSEND INC 100763 12/31/15 98748 11/03/15 BILL PRINTING SERVICES (OCT 2015)2,036.32 100298 12/17/15 BILL PRINTING SERVICES (11/20/15)39.13 BILL PRINTING SERVICES (OCT 2015)12,741.44 98583 10/30/15 BILL PRINTING SERVICES (OCT 2015)5,999.72 2045049 01/13/16 08969 INFOSEND INC 98584 10/30/15 ENVIRONMENTAL SERVICES (8/29/15-9/30/15)9,356.25 0110571 10/12/15 ENVIRONMENTAL SERVICES (8/29/15-9/30/15)335.03 0112014 12/18/15 ENVIRONMENTAL SERVICES (4/1/15-11/27/15)240.00 2044939 12/22/15 15622 ICF JONES & STOKES INC 0110568 10/12/15 12/18/15 ENVIRONMENTAL SERVICES (10/13/15-11/27/15)6,220.46 0112006 12/18/15 ENVIRONMENTAL SERVICES (10/1/15-11/27/15)1,462.64 47.50 4283120915 12/09/15 WATER USAGE (10/8/15-12/7/15)6.62 2045048 01/13/16 15622 ICF JONES & STOKES INC 0112011 ENVIRONMENTAL SERVICES (11/1/15-11/30/15)7,981.12 7,981.12 2044938 12/22/15 00062 HELIX WATER DISTRICT 3300120915 12/09/15 WATER USAGE (10/8/15-12/7/15) 2044937 12/22/15 02008 HELIX ENVIRONMENTAL 13 12/04/15 11,187.11 2044971 12/29/15 16966 HEATHER HELLARD Ref002453671 12/28/15 UB Refund Cst #0000215991 6.75 6.75 2045047 01/13/16 10973 HDR ENGINEERING INC 21 11/30/15 CORROSION SERVICES (9/27/15-10/31/15)11,187.11 Page 5 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 17.25 1,143.72 1,246.12 501505923 12/15/15 UNIFORM SERVICES 105.06 501461329 12/08/15 UNIFORM SERVICES 99.32 501496850 12/14/15 UNIFORM SERVICES 105.88 501542456 12/21/15 UNIFORM SERVICES 105.88 UNIFORM SERVICES 400.69 501461330 12/08/15 UNIFORM SERVICES 393.04 2045007 01/06/16 15136 MISSION UNIFORM SERVICE 501505924 12/15/15 501404758 11/30/15 UNIFORM SERVICES 46.38 501358115 11/24/15 UNIFORM SERVICES 4.00 501370417 11/24/15 UNIFORM SERVICES 93.58 501418442 12/01/15 UNIFORM SERVICES 93.58 501452102 12/07/15 UNIFORM SERVICES 105.88 501407914 11/30/15 UNIFORM SERVICES 100.14 UNIFORM SERVICES 401.78 501418443 12/01/15 UNIFORM SERVICES 400.78 2044947 12/22/15 15136 MISSION UNIFORM SERVICE 501370418 11/24/15 501542062 12/22/15 UNIFORM SERVICES 12.64 501542063 12/22/15 UNIFORM SERVICES 4.00 501598428 12/29/15 UNIFORM SERVICES 87.84 501553204 12/22/15 UNIFORM SERVICES 87.84 501553205 12/22/15 UNIFORM SERVICES 422.26 501588084 12/28/15 UNIFORM SERVICES 105.88 75.24 75.24 2045097 01/20/16 15136 MISSION UNIFORM SERVICE 501598429 12/29/15 UNIFORM SERVICES 423.26 INVENTORY 19,703.73 19,703.73 2045055 01/13/16 16985 MICHAEL WARD Ref002454462 01/11/16 UB Refund Cst #0000044307 12/28/15 UB Refund Cst #0000184557 109.88 109.88 2044946 12/22/15 05329 MASTER METER INC 143956 11/25/15 13.80 120115123115 12/22/15 MILEAGE REIMBURSEMENT (DEC 2015)3.45 2044975 12/29/15 16963 LORA DENUNZIO Ref002453668 OUTSIDE SERVICES 13,750.00 13,750.00 2044945 12/22/15 03019 LOPEZ, JOSE 110115113015 12/14/15 MILEAGE REIMBURSEMENT (NOV 2015) 2045054 01/13/16 13749 LONDON GROUP REALTY ADVISORS 1140 12/30/15 575.00 2044944 12/22/15 12843 LAWTON GROUP, THE 52306 12/18/15 INTERNSHIP AGREEMENT (12/7/15-12/11/15)290.00 290.00 5,885.00 5,885.00 2045053 01/13/16 12276 KONECRANES INC SDG01078105 12/29/15 HOIST INSPECTION (DEC 2015)575.00 ASPHALT CONCRETE PAVING 11,552.05 11,552.05 2044943 12/22/15 05840 KIRK PAVING INC 5999 11/25/15 ASPHALT CONCRETE PAVING 2045096 01/20/16 05840 KIRK PAVING INC 6021 12/23/15 47.76 2044974 12/29/15 16962 KHANH PHAM Ref002453666 12/28/15 UB Refund Cst #0000089431 50.75 50.75 2044973 12/29/15 16961 KENYON YOUNG Ref002453665 12/28/15 UB Refund Cst #0000017806 47.76 Page 6 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,215.87 174.70 930.26 11,537.97 LIFE INSURANCE 1,218.88 1,218.88204509901/20/16 07860 PROTECTIVE LIFE INSURANCE CO 102788011116 01/11/16 3,924.48 2044954 12/22/15 13059 PRIORITY BUILDING SERVICES 46714 11/01/15 JANITORIAL SERVICES (NOV 2015)3,924.48 3,924.48 33.61 33.61 2045098 01/20/16 13059 PRIORITY BUILDING SERVICES 47142 12/01/15 JANITORIAL SERVICES (DEC 2015)3,924.48 UPS 1,943.94 1,943.94 2044979 12/29/15 16968 PRAECELSUS PROPERTY MGT Ref002453673 12/28/15 UB Refund Cst #0000221670 2044953 12/22/15 12472 PCNATION W12219790101 12/03/15 7,857.90 2045012 01/06/16 15899 PCM-G S93690060101 12/18/15 SOFTWARE LICENSES 8,893.50 8,893.50 54.10 54.10 2044952 12/22/15 15899 PCM-G S93207660101 11/24/15 SOFTWARE LICENSES 7,857.90 INVENTORY 9,283.73 9,283.73 2044951 12/22/15 05497 PAYPAL INC 46272239 11/30/15 PHONE PAYMENT SVCS (NOV 2015) 304969 11/24/15 INVENTORY 4,253.33 2045011 01/06/16 01002 PACIFIC PIPELINE SUPPLY 305239 12/08/15 33,398.20 33,398.20 2044950 12/22/15 01002 PACIFIC PIPELINE SUPPLY 305154 12/02/15 BUTTERFLY VALVE 7,284.64 DEPOSIT REFUND 2,046.00 2,046.00 2045010 01/06/16 15856 OLYMPUS AND ASSOCIATES INC 12 12/14/15 RESERVOIR COATING (ENDING 11/30/15) 2045058 01/13/16 15856 OLYMPUS AND ASSOCIATES INC 1100011116 01/11/16 812824284001 12/16/15 OFFICE SUPPLIES 51.01 812824284002 12/17/15 OFFICE SUPPLIES 3.25 813046215001 12/17/15 OFFICE SUPPLIES 142.06 813204432001 12/18/15 OFFICE SUPPLIES 99.39 OFFICE SUPPLIES 473.03 811531072001 12/10/15 OFFICE SUPPLIES 161.52 2045009 01/06/16 00510 OFFICE DEPOT INC 811168668001 12/09/15 808878627001 11/30/15 OFFICE SUPPLIES 59.77 807885065003 11/24/15 OFFICE SUPPLIES 30.83 2,668.25 2044949 12/22/15 00510 OFFICE DEPOT INC 810510200001 12/04/15 OFFICE SUPPLIES 84.10 9,221.12 9,221.12 2045008 01/06/16 00761 NINYO & MOORE GEOTECHNICAL AND 194640 12/03/15 GEOTECHNICAL SERVICES (9/1/14-10/30/15)2,668.25 BI-WEEKLY DEFERRED COMP PLAN 13,071.12 13,071.12 2044978 12/29/15 16255 NATIONWIDE RETIREMENT Ben2453679 12/30/15 BI-WEEKLY DEFERRED COMP PLAN 2045057 01/13/16 16255 NATIONWIDE RETIREMENT Ben2454479 01/14/16 91.68 2044948 12/22/15 16898 NATIONAL METER & AUTOMATION S1066417001 12/08/15 MEASURING ELEMENTED & BYPASS METER 3,419.67 3,419.67 31.65 31.65 2044977 12/29/15 16964 NADIA DEL VALLE Ref002453669 12/28/15 UB Refund Cst #0000197667 91.68 REMARKETING AGENT FEE (10/1/15-12/31/15)1,996.27 1,996.27 2044976 12/29/15 16967 MOUSHUMI DATTA Ref002453672 12/28/15 UB Refund Cst #0000216599 501451177 12/08/15 UNIFORM SERVICES 6.00 2045056 01/13/16 15854 MITSUBISHI UFJ SEC (USA) INC 201610 01/07/16 Page 7 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 365.75 75.00 86,148.44 122415 01/05/16 UTILITY EXPENSES (MONTHLY)26,992.40 UTILITY EXPENSES (MONTHLY)61,923.05 121815 01/05/16 UTILITY EXPENSES (MONTHLY)27,897.46 2045018 01/06/16 00121 SAN DIEGO GAS & ELECTRIC 122815 01/05/16 UTILITY EXPENSES (MONTHLY)65,624.91 122315A 12/23/15 UTILITY EXPENSES (MONTHLY)20,523.53 2045063 01/13/16 00121 SAN DIEGO GAS & ELECTRIC 010616 01/06/16 1,760.00 2044980 12/29/15 00003 SAN DIEGO COUNTY WATER AUTH 0000001348 12/07/15 WATER CONSERVATION PAMPHLETS 792.50 792.50 125.00 125.00 2045017 01/06/16 00003 SAN DIEGO COUNTY WATER AUTH 0000001357 12/23/15 MWD SCWS - HEWS 1,760.00 ASSESSOR DATA (11/9/15)125.00 125.00 2045103 01/20/16 02586 SAN DIEGO COUNTY ASSESSOR 201600051 01/07/16 ASSESSOR DATA (12/10/15) IS163022 01/14/16 REGISTRATION FEE 25.00 2044960 12/22/15 02586 SAN DIEGO COUNTY ASSESSOR 201504420 12/02/15 REGISTRATION FEE 25.00 IS163021 01/14/16 REGISTRATION FEE 25.00 2045102 01/20/16 09223 SAN DIEGO CO SYMPOSIUM FUND IS163020 01/14/16 3,044.80 2044959 12/22/15 16853 S & R TESTING SERVICES 104 12/04/15 PRESSURE TEST VALVE 730.00 730.00 86.25 86.25 2045016 01/06/16 02620 ROTORK CONTROLS INC CI11269 12/10/15 HDWKS 16IN ACTUATORS 3,044.80 UB Refund Cst #0000054628 416.72 416.72 2045062 01/13/16 04542 ROBAK, MARK 090115123115 12/31/15 MILEAGE REIMBURSEMENT (10/07/15-12/15/15) 2045061 01/13/16 16986 RITA COHEN Ref002454463 01/11/16 53.32 2045101 01/20/16 08972 RICK ENGINEERING COMPANY 0046181 12/28/15 CAMPO ROAD SUPPORT (11/1/15-11/30/15)16,893.31 16,893.31 15,075.00 15,075.00 2045060 01/13/16 16993 RHONDA ADDINGTON Ref002454470 01/11/16 UB Refund Cst #0000217687 53.32 UB Refund Cst #0000208691 41.99 41.99 2045015 01/06/16 15647 RFYEAGER ENGINEERING LLC 15173 12/12/15 CORROSION / COATING INSP (11/1/15-11/30/15) 2045059 01/13/16 16990 RAYMOND DECKER Ref002454467 01/11/16 191,879.32 2044958 12/22/15 00766 RANROY PRINTING COMPANY 023707 11/30/15 POSTCARDS 1,323.00 1,323.00 188,429.26 188,429.26 2045100 01/20/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2454481 01/14/16 BI-WEEKLY PERS CONTRIBUTION 191,879.32 BI-WEEKLY PERS CONTRIBUTION 186,385.11 186,385.11 2045014 01/06/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2453681 12/30/15 BI-WEEKLY PERS CONTRIBUTION 113068 12/07/15 AS-NEEDED DESIGN (ENDING 11/26/15)174.50 2044957 12/22/15 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2453555 12/17/15 191.25 2044956 12/22/15 03613 PSOMAS 113073 12/07/15 AS-NEEDED DESIGN (ENDING 11/26/15)191.25 8,433.50 8,433.50 2045013 01/06/16 03613 PSOMAS 113105 12/08/15 AS-NEEDED DESIGN (ENDING 11/26/15)191.25 LIFE INSURANCE 1,218.88 1,218.88 2044955 12/22/15 07860 PROTECTIVE LIFE INSURANCE CO 102788 12/10/15 LIFE INSURANCE 2045099 01/20/16 07860 PROTECTIVE LIFE INSURANCE CO 102788011116 01/11/16 Page 8 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 117,588.36 13,446.94 80.03 1143569504 12/10/15 PORTABLE TOILET RENTAL (12/4/15-12/31/15)79.98 PORTABLE TOILET RENTAL (12/31/15-1/27/16)98.17 98.17 2044984 12/29/15 15675 UNITED SITE SERVICES INC 1143587189 12/16/15 PORTABLE TOILET RENTAL (12/11/15-1/7/16) 2045106 01/20/16 15675 UNITED SITE SERVICES INC 1143637069 12/31/15 98.17 2045070 01/13/16 15675 UNITED SITE SERVICES INC 1143622592 12/30/15 PORTABLE TOILET RENTAL (12/23/15-01/19/16)79.98 79.98 340.50 340.50 2044965 12/22/15 15675 UNITED SITE SERVICES INC 1143561772 12/08/15 PORTABLE TOILET RENTAL (12/3/15-12/30/15)98.17 UNDERGROUND ALERTS (MONTHLY)262.50 262.50 2045105 01/20/16 00427 UNDERGROUND SERVICE ALERT OF 1220150488 01/01/16 UNDERGROUND ALERTS (MONTHLY) 2044964 12/22/15 00427 UNDERGROUND SERVICE ALERT OF 1120150487 12/01/15 10.93 2045104 01/20/16 00870 TRANSCAT INC 1030167 09/29/15 EQUIPMENT EVALUATION 98.11 98.11 38.72 38.72 2045069 01/13/16 14177 THOMPSON, MITCHELL 120115123115 12/31/15 MILEAGE REIMBURSEMENT (12/04/15-12/24/15)10.93 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61 2045024 01/06/16 15642 THE PRINT BUTTON 9081 12/09/15 BUSINESS CARDS 2044983 12/29/15 15926 TEXAS CHILD SUPPORT UNIT Ben2453691 12/30/15 16,458.00 2045068 01/13/16 15926 TEXAS CHILD SUPPORT UNIT Ben2454493 01/14/16 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61 16,323.00 16,323.00 2045023 01/06/16 02376 TECHKNOWSION INC 2625 12/08/15 SCADA UPGRADES 16,458.00 OUTSIDE SERVICES 300.00 300.00 2044963 12/22/15 03770 TEAMAN RAMIREZ & SMITH INC 73707 12/03/15 AUDIT SERVICES FOR FY 2015 418501 12/03/15 DIESEL FUEL 3,930.93 2045022 01/06/16 16610 SVPR COMMUNICATIONS 1065 07/31/15 5,070.63 5,070.63 2044962 12/22/15 10339 SUPREME OIL COMPANY 418500 12/03/15 UNLEADED FUEL 9,516.01 LEGAL SERVICES (NOV 2015)27,269.91 27,269.91 2044982 12/29/15 15974 SUN LIFE FINANCIAL Ben2453677 12/30/15 MONTHLY CONTRIBUTION TO LTD 2045021 01/06/16 12809 STUTZ ARTIANO SHINOFF 212632 12/18/15 60.00 2044981 12/29/15 16965 STEPHANIE VARGAS Ref002453670 12/28/15 UB Refund Cst #0000215556 25.97 25.97 977.20 977.20 2045067 01/13/16 05755 STATE WATER RESOURCES 011116 01/11/16 CERTIFICATION RENEWAL 60.00 UB Refund Cst #0000064592 72.72 72.72 2045066 01/13/16 00097 STATE BOARD OF EQUALIZATION 2133012516 01/06/16 UNDERGROUND STORAGE TANK FEES 2045065 01/13/16 16987 SPRING VALLEY ANIMAL HOSPITAL Ref002454464 01/11/16 57.50 2045020 01/06/16 03516 SPECIAL DISTRICT RISK 010416 01/04/16 CLAIM SETTLEMENT 239,784.16 239,784.16 1,899.80 1,899.80 2045064 01/13/16 16229 SMITH, TIMOTHY 120115123115 12/31/15 MILEAGE REIMBURSEMENT (12/08/15-12/15/15)57.50 MEMBERSHIP DUES 75.00 75.00 2045019 01/06/16 15771 SMART DESIGN COMMERCIAL 522 12/14/15 FLOORING REMODEL 2044961 12/22/15 10578 SAN DIEGO INTERNATIONAL PUBLIC 120315 12/03/15 122315 01/05/16 UTILITY EXPENSES (MONTHLY)775.45 Page 9 of 10 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/17/2015 - 1/20/2016 Check #Date Vendor Vendor Name Invoice Inv. Date Description 399.95 81,325.83 2,620.74 STORAGE USAGE (01/01/16-01/31/16)2,083.25 2,083.25 Amount Pd Total:1,939,011.90 Check Grand Total:1,939,011.90 2045109 01/20/16 15567 ZETTA INC INV00026330 01/01/16 150.00 STORAGE USAGE (DEC 2015)2,083.25 2,083.25204496612/22/15 15567 ZETTA INC INV00025518 12/01/15 86.83 86.83 2045108 01/20/16 15135 YANEZ, ABRAHAM 010416 01/07/16 SAFETY BOOTS 150.00 TRAVEL EXPENSE REIMB (10/1/15-11/30/15)676.20 676.20 2045076 01/13/16 03781 WATTON, MARK 120415121015 01/08/16 TRAVEL EXPENSE REIMB (12/04/15-12/10/2015) 2045030 01/06/16 03781 WATTON, MARK 100115113015 01/05/16 24,405.50 2044987 12/29/15 15726 WATER SYSTEMS CONSULTING INC 1669 11/30/15 HYDRAULIC MODELING (ENDING 11/30/15)1,207.50 1,207.50 15,040.67 15,040.67 2045029 01/06/16 14879 WATER CONSERVATION GARDEN 1157 12/14/15 GARDEN COSTS (3RD QTR FY 2015-2016)24,405.50 MONITORING SERVICES 1,373.92 1,373.92 2045107 01/20/16 15807 WATCHLIGHT CORPORATION, THE 451799 12/28/15 SECURITY AND ACCESS CONTROL 2045028 01/06/16 15807 WATCHLIGHT CORPORATION, THE 451081 12/15/15 9757608415 12/21/15 CELLULAR & WIRELESS SVCS (11/30/15-12/21/15)221.85 9757608413 12/21/15 CELLULAR & WIRELESS SVCS (11/22/15-12/21/15)40.04 CELLULAR & WIRELESS SVCS (11/22/15-12/21/15)1,660.72 9757608411 12/21/15 CELLULAR & WIRELESS SVCS (11/22/15-12/21/15)698.13 2045027 01/06/16 03329 VERIZON WIRELESS 9757608409 12/21/15 9,714.87 2045075 01/13/16 03329 VERIZON WIRELESS 9757608405 12/21/15 CELLULAR & WIRELESS SVCS (11/22/15-12/21/15)5,875.53 5,875.53 1,380.63 1,380.63 2045074 01/13/16 12686 VANTAGEPOINT TRANSFER AGENTS Ben2454489 01/14/16 401A TERMINAL PAY 9,714.87 BI-WEEKLY 401A PLAN 12,859.05 12,859.05 2044986 12/29/15 06414 VANTAGEPOINT TRANSFER AGENTS Ben2453687 12/30/15 BI-WEEKLY 401A PLAN 2045073 01/13/16 06414 VANTAGEPOINT TRANSFER AGENTS Ben2454487 01/14/16 14,541.69 2044985 12/29/15 01095 VANTAGEPOINT TRANSFER AGENTS Ben2453685 12/30/15 BI-WEEKLY DEFERRED COMP PLAN 12,948.74 12,948.74 33.06 33.06 2045072 01/13/16 01095 VANTAGEPOINT TRANSFER AGENTS Ben2454485 01/14/16 BI-WEEKLY DEFERRED COMP PLAN 14,541.69 LIFTSTATION LEVEL TRANSDUCERS 2,045.16 2,045.16 2045071 01/13/16 16989 VALUE T SALES INC Ref002454466 01/11/16 UB Refund Cst #0000195970 2045026 01/06/16 11606 USA BLUE BOOK 820819 12/09/15 CAL CARD EXPENSES (MONTHLY)81,325.83204502501/06/16 07674 US BANK CC20151222060 12/22/15 1143587187 12/16/15 PORTABLE TOILET RENTAL (12/11/15-1/7/16)79.98 1143587186 12/16/15 PORTABLE TOILET RENTAL (12/12/15-1/8/16)79.98 1143587188 12/16/15 PORTABLE TOILET RENTAL (12/11/15-1/7/16)79.98 Page 10 of 10 1st Quarter (7/1/15 - 9/30/15) YTD (7/1/15 - 9/30/15) CROUCHER, GARY 600.00$ 600.00$ LOPEZ, JOSE 1,292.00 1,292.00 ROBAK, MARK 453.00 453.00 SMITH, TIM 913.85 913.85 THOMPSON, MITCHELL 2,570.61 2,570.61 5,829.46$ 5,829.46$ FY2016