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HomeMy WebLinkAbout03-11-14 Board Packet 1 OTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA TUESDAY March 11, 2014 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVE THE MINUTES OF THE REGULAR MEETING OF FEBRUARY 5, 2014 5. OVERVIEW OF 2014 LEGISLATIVE SESSION (CHRIS FRAHM AND ROSAN-NA CARVACHO, BROWNSTEIN HYATT FARBER AND SCHRECK 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 RECESS TO CLOSED SESSION 7. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9] 1 CASE b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] CITY OF CHULA VISTA; CITY OF EL CAJON, et. al. v. TRACY SANDO-VAL in her official capacity as San Diego County Auditor-Controller, et. al.; CASE NO. 34-2014-80001723-CU-WM-GDS 2 c) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE §54957.6] AGENCY DESIGNATED REPRESENTATIVES: PRESIDENT LOPEZ AND DIRECTOR THOMPSON EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION AND ALL REPRESENTED AND UNREPRESENTED PERSONNEL INCLUD- ING MANAGEMENT AND CONFIDENTIAL EMPLOYEES 8. RETURN TO OPEN SESSION 9. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION CONSENT CALENDAR 10. 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 THE ELIMINATION OF THE COLLECTION OF BETTER- MENT FEES FOR THE NORTH DISTRICT AND IMPROVEMENT DIS- TRICTS (ID) 9 AND 10; AND ADOPT ORDINANCE NO. 541 AMENDING SECTION 0.02 A, DEFINITIONS; SECTION 25.03 G, H AND I, DEFINI-TIONS OF WATER CATEGORIES, WATER RATES, CHARGES AND FEES; AND APPENDIX A OF THE DISTRICT’S CODE OF ORDINANC- ES TO REFLECT THESE CHANGES EFFECTIVE JANUARY 1, 2015 b) ADOPT ORDINANCE NO. 542 AMENDING SECTION 2.01, AUTHORITY OF THE GENERAL MANAGER, OF THE DISTRICT’S CODE OF ORDI-NANCE WITH REGARD TO AMENDMENTS FOR THE LEASE OF DIS- TRICT REAL PROPERTY AND/OR SPACE ON DISTRICT FACILITIES TO CELLULAR COMPANIES AND RELATED ENTITIES FOR TELE- COMMUNICATIONS PURPOSES ACTION ITEMS 11. ADMINISTRATION, FINANCE AND INFORMATION TECHNOLOGY a) AUTHORIZE THE DISTRICT TO DECLARE A LEVEL I DROUGHT WATCH (MENDEZ-SCHOMER) 3 12. BOARD a) ADOPT RESOLUTION NOs. 4229 AND 4230 APPROVING THE REAPPOINTMENT OF MARK WATTON (SECOND SEAT) AND GARY CROUCHER (FIRST SEAT) AS THE DISTRICT’S REPRESENTA-TIVES TO THE SAN DIEGO COUNTY WATER AUTHORITY’S BOARD OF DIRECTORS (WATTON) b) DISCUSSION OF DRAFT FISCAL YEAR 2015-2017 STRATEGIC PLAN (STEVENS) c) DISCUSSION OF THE 2014 BOARD MEETING CALENDAR INFORMATIONAL ITEMS 13. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATION- AL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM: a) FISCAL YEAR 2014 SECOND QUARTER CAPITAL IMPROVEMENT PROGRAM REPORT (MARTIN) REPORTS 14. GENERAL MANAGER’S REPORT a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE 15. DIRECTORS' REPORTS/REQUESTS 16. PRESIDENT’S REPORT/REQUESTS 17. ADJOURNMENT 4 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 March 7, 2014, I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on March 7, 2014. /s/ Susan Cruz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT February 5, 2014 1. The meeting was called to order by President Lopez at 3:35 p.m. 2. ROLL CALL Directors Present: Gonzalez, Lopez, Robak, and Thompson Directors Absent: Croucher Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff, Asst. GM German Alvarez, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Information Technology Geoff Stevens, Chief of Administration Rom Sarno, Chief of Operations Pedro Porras and District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Gonzalez, and seconded by Director Thompson and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Robak, and Thompson Noes: None Abstain: None Absent: Director Croucher to approve the agenda. 5. APPROVE THE MINUTES OF THE REGULAR MEETINGS OF NOVEMBER 6, 2013 AND JANUARY 7, 2014 A motion was made by Director Thompson, seconded by Director Gonzalez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Robak, and Thompson Noes: None Abstain: None Absent: Director Croucher to approve the minutes of the regular meetings of November 6, 2013 and January 7, 2014. 2 6. PRESENTATION ON THE OTAY WATER DISTRICT RECEIVING THE DISTRICT OF DISTINCTION ACCREDITATION AND DISTRICT TRANSPARENCY CERTIFICATE OF EXCELLENCE FROM THE SPECIAL DISTRICT LEADERSHIP ASSOCIATION Director Gonzalez indicated that he had the honor of receiving the District of Distinction Award and the District of Transparency Certificate of Excellence from the Special District Leadership Foundation (SDLF) on behalf of the District. The District of Distinction Award recognizes the District for demonstrating a strong commitment to practicing sound management, fiscal practices and operations. The District of Distinction Award was received for the District’s sound practice of transparency which included posting on the District’s website board meetings, agendas, etc. SDLF is an independent, non-profit organization formed to promote good governance and the best practices among California’s special districts through certification, accreditation and other recognition programs. He stated that Otay is honored to receive this accreditation from a respected third party as it is affirmation from a third party of Otay’s longstanding commitment to transparency and accountability. President Lopez requested that the District’s receipt of these awards also be announced at the next California Special District Association meeting. 7. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. CONSENT CALENDAR 8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: Director Robak pulled item 7c, APPROVE A PROFESSIONAL AS-NEEDED SERVICES CONSULTING SERVICES CONTRACT WITH DR. MICHAEL WELCH IN AN AMOUNT NOT-TO-EXCEED $100,000 FOR FISCAL YEARS 2014 THROUGH 2019, for discussion. Director Thompson pulled item 7e, APPROVE A RENEWAL TO THE “AGREEMENT FOR THE TEMPORARY EMERGENCY DELIVERY OF A PORTION OF THE MEXICAN TREATY WATERS,” for discussion. Upon a motion by Director Robak, seconded by Director Thompson and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Robak, and Thompson Noes: None 3 Abstain: None Absent: Director Croucher to approve the following consent calendar items: a) APPROVE A MESSAGE ON ALL PROPOSITION 218 NOTICES DIRECTING CUSTOMERS TO CONTACT THE DISTRICT’S CUSTOMER SERVICE DEPARTMENT FOR AN EXPLANATION IN SPANISH OF THE CONTENTS OF THE 218 NOTICE b) REAFFIRM RESOLUTION NOs. 4219 AND 4220 INITIATING THE PROCESS FOR THE EXCLUSION OF PARCELS WITHIN IMPROVEMENT DISTRICTS (IDs) 19 AND 25 AND ALSO AMEND THESE RESOLUTIONS TO REVISE THE DATE OF THE PUBLIC HEARING TO MARCH 5, 2014; CONCURRENT WITH THIS ACTION, THAT THE BOARD ALSO REAFFIRM THE RESOLUTIONS OF INTENTION, NOs. 4221 AND 4222, THAT ARE NECESSARY TO INITIATE THE PROCESS FOR THE ANNEXATION OF THE EXCLUDED PARCELS IN IDs 19 AND 25 INTO IDs 22 AND 20, RESPECTIVELY d) APPROVE CHANGE ORDER NO. 1 TO THE EXISTING CONTRACT WITH ADVANCED INDUSTRIAL SERVICES, INC. FOR A CREDIT IN THE AMOUNT OF <$73,338.63> FOR THE 803-3 AND 832-2 RESERVOIRS INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT President Lopez presented item 7c for discussion: c) APPROVE A PROFESSIONAL AS-NEEDED SERVICES CONSULTING SERVICES CONTRACT WITH DR. MICHAEL WELCH IN AN AMOUNT NOT-TO-EXCEED $100,000 FOR FISCAL YEARS 2014 THROUGH 2019 Director Robak inquired what Mr. Michael Welch will be doing for the District over the next several years. Engineering Manager Bob Kennedy indicated that Mr. Welch has been assisting the District over the past 30 years. He assisted the District with the permitting process for the Ralph W. Chapman Water Reclamation Plant and the Salt and Nutrient Study that was required by the Regional Water Quality Control Board. He is currently assisting the District on the Otay Mesa Conveyance and Disinfection System Project. Mr. Kennedy indicated that Mr. Welch has a wide range of knowledge and his expertise will be utilized for many District projects. Mr. Welch is considered a preeminent expert in the western States and he has just signed a new contract with the City of San Diego to assist them with their Indirect Potable Reuse Project. It was noted that many seek his expertise for water reuse projects and State Health Department related issues. 4 Upon a motion by Director Robak, seconded by Director Lopez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Robak, and Thompson Noes: None Abstain: None Absent: Director Croucher to approve staffs’ recommendation. President Lopez presented item 7e for discussion: e) APPROVE A RENEWAL TO THE “AGREEMENT FOR THE TEMPORARY EMERGENCY DELIVERY OF A PORTION OF THE MEXICAN TREATY WATERS” In response to an inquiry from Director Thompson, Chief of Operations Pedro Porras confirmed that the District will not be building additional facilities. Mr. Porras indicated in response to additional questions from Director Thompson that originally the agreement, signed in 1972, was with Mexico and that same agreement was in place through 1983. Mr. Porras indicated that Mexico had paid for portions of pipelines which are now considered by the District to be an integral part of the water system. Mexico also paid for some pumping upgrades in 1972. The 1972 agreement clearly stated at the end of the agreement, facilities that were paid by Mexico should be dismantled and returned to Mexico. This did not happen and in 1983, an illegal connection was discovered to the pipe which was providing water to another location in Mexico. When the illegal connection was discovered the pipe was removed. In 1989 Mexico was in dire need for water and the United States Government directed Metropolitan Water District (MWD) to provide Mexico a connection quickly. A meter was not used on the emergency connection to the 14” pipeline. The water use was estimated by the District and was paid for by Mexico. This also occurred in 1992. In 2001, Mexico decided they would like a more permanent connection due to the drought and their growing population. A connection was built by CWA and was paid for by Mexico. It was agreed that the connection would be owned by the Otay WD. Mr. Porras indicated that, unfortunately, subsequent agreements always referred to the 1972 agreement, which caused confusion as to who owns the facilities. The new agreement clarifies that the Otay WD owns all the facilities, requires Mexico to provide a deposit should the facilities require major repairs, and if the connection is no longer required, that Mexico is liable to pay to remove the facilities that are no longer required. Mr. Porras indicated that Finance Manager Kevin Koeppen also worked on the agreement. Upon a motion by Director Thompson, seconded by Director Gonzalez and carried with the following vote: 5 Ayes: Directors Gonzalez, Lopez, Robak, and Thompson Noes: None Abstain: None Absent: Director Croucher to approve staffs’ recommendation. ACTION ITEMS 9. BOARD a) DISCUSSION OF THE 2014 BOARD MEETING CALENDAR Director Thompson indicated that he would not be able to attend the April 2, 2014 board meeting and requested an excused absence. President Lopez indicated that he would not be available to attend the March 5, 2014 board meeting. President Lopez inquired if the March meeting could be moved to the following week. District Secretary Susan Cruz indicated she would poll board members for their availability on Tuesday, March 11, 2014. Upon a motion by President Lopez, seconded by Director Thompson and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Robak, and Thompson Noes: None Abstain: None Absent: Director Croucher to move the March board meeting to Tuesday, March 11, 2014. REPORTS 10. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report that included the District’s new membership with the East County Chaldean American Chamber of Commerce, the ESRI Fall Water/Wastewater Conference; that preparation for the District’s FY 2015 Budget is underway, the Administration Building fire sprinkler replacement project, meter sales and potable water purchases. Director Thompson inquired with regard to the Fitch Ratings Review on page four (4) of the General Manager’s report the reason for the downgrade of the District’s credit rating. Chief Financial Officer Joe Beachem indicated that each year the District budgets water sales and during the economic downturn water sales was dramatically lower than anticipated. For about four (4) years during the downturn, there was a steep decline in sales, so revenues were lower than budgeted which impacted the District’s debt coverage ratio. The debt coverage 6 ratio would not rebound as the District projected. Consequently, Fitch downgraded the District’s rating to AA- due to the District’s debt coverage ratio. The other two rating agencies did not lower the District’s credit rating of AA. The District recommended not raising rates to increase the debt coverage ratio and would go out to the debt market instead. Mr. Beachem indicated that the District does not want to spike its rates and would prefer to have a smooth rate increase over the next few years. It is likely in two to three years the District’s debt coverage ratio would increase and staff would expect the District’s credit rating to be raised. Director Thompson indicated that he would like a discussion of the impact of the District’s credit rating to water rates included at the next Budget workshop. It was noted that a drop from AA to AA- is not a significant change, but if the District dropped to a single A, then there would be a significant impact to the District’s borrowing rate. It was also noted that if the District does not issue debt, then there is no impact. SAN DIEGO COUNTY WATER AUTHORITY UPDATE General Manager Watton indicated that CWA has been focused on board policies, rates and the Desalination Project. He indicated that Director Croucher has been appointed to CWA’s Fiscal Sustainability Task Force (FSTF) and both he and Director Croucher have been advocating that CWA hold presenting the policy on rates for action by CWA’s board until the board can see the actual rates and the impacts of the rates. He stated that the Otay WD’s staff has reviewed the proposed policy and it is felt that it needs work and would not be positive for the District. He, Director Croucher and the District’s staff have presented the District’s review of the policy at various CWA meetings so they may share the information with the other local agencies. He indicated that they have requested at CWA’s FSTF to delay the vote on the policy until the board members and their respective staffs have had an opportunity to review the policy and its impact to rates. There are some arguments against holding the vote on the policy and CWA is taking a more extreme view. He noted that the proposed policy would charge Otay WD with high fixed costs which are not wise or fair in the long run, particularly if there is a drought or reduced water sales. He felt that CWA does not have the same issues as retailers do, and that they need to understand all their member agencies’ issues. He stated, in the policy, CWA would like to impose a reliability charge. That is, if member agencies do not purchase water because they have local supplies, CWA’s policy provides for an insurance policy for providing standby resources should an agency’s local supplies fail. This concept is correct, however, the board policy being proposed by CWA is more punitive and impacts the ability of the member agencies’ to bring their local supply projects to fruition. The policy will be presented to CWA’s board at their February meeting. The Otay WD CWA board representatives and staff have been working to delay the presentation of the policy to CWA’s board until some of the issues can be discussed and worked out. Director Thompson inquired if there were enough agencies that would have the same issues with the policy as Otay WD. General Manager Watton indicated 7 that it is more about cost allocation and what is fair as required by Proposition 26. Otay has been very clear that CWA needs to provide a Cost of Service Study which justifies the costs they are allocating to Otay WD as is required by Proposition 26. Otay is taking an aggressive stance to protect its ratepayers. 11. DIRECTORS' REPORTS/REQUESTS Director Robak indicated that he attended the State of the County Address last week where San Diego County Supervisor Dianne Jacob was sworn in as the new Chair of the Board of Supervisors. He indicated that they have centralized their facilities and that their new facilities in Kearny Mesa are very nice. He also shared that he discussed with President Lopez a new way of doing the Board documents electronically. He had received information from a company, Board Docs, and had the opportunity to view a demonstration of the software. The software is very interactive and provides for hyperlinks and the ability to write notes on the electronic board documents. The system can be run from your tablet or computer. He stated that he had spoken with District Secretary Cruz about the software before the board meeting and suggested that it is something worth reviewing along with other options as well. Director Robak also shared that the California State Governor declared a drought on January 17. He stated that the public may have a hard time reconciling the Governor’s message and the fact that the San Diego region is not as impacted because the region has been preparing for drought through the construction of storage projects. He suggested that the District’s message to the public should indicate, due to this preparation, the region will not require mandatory cutbacks at this time. He also commented with regard to CWA’s rate setting policy that it clearly affects other districts to their detriment and he hopes that CWA’s board takes their time to review the policy and forestall making a decision. Director Thompson indicated that he had no comments and would defer to President Lopez to comment on the meeting of the District’s Desalination Project Committee held on January 28, 2014. Director Gonzalez indicated that he did not have anything to report, but stated that he had been reviewing some of the District’s conservation programs and inquired if some of the programs were with MWD. General Manager Watton indicated that the District does have programs with MWD and they include the rebate programs and the residential surveys. 12. PRESIDENT’S REPORT President Lopez reported on meetings he attended during the month of January 2014 (a list of meetings he attended is attached). He also shared that the District published an article in response to the State Governor declaring a drought that provided the District’s perspective on the drought. He lastly shared that he would be attending MWD’s board meeting on Monday, February 10, 2014 to protest their rate increase. He indicated that there has been concern on how they 8 calculate rates, especially the water transportation rates. He will be requesting, as a member agency of CWA, that MWD forego rate increases in 2015 and 2016. The request is based on the fact that MWD has collected revenues over the past two (2) years that is $6 million more than what is needed to pay 100% of their (MWD’s) budgeted costs and exceeds their maximum reserve target level by $320 million. a. CLOSED SESSION The board recessed to closed session at 4:42 p.m. to discuss the following matter: a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9] 1 CASE The board reconvened at 4:58 p.m. and the District’s General Counsel, Dan Shinoff, reported that the board voted four to zero in favor of entering into a settlement agreement with the County of San Diego. The board took no other reportable actions in closed session. 13. ADJOURNMENT With no further business to come before the Board, President Lopez adjourned the meeting at 4:59 p.m. ___________________________________ President ATTEST: District Secretary 9 President’s Report February 5, 2014 Board Meeting A) Meetings attended during the Month of January 2014: 1) January 7: Attended the District’s Regular Board Meeting 2) January 13: Committee Agenda Briefing. Met with General Manager Watton to review items that will be presented at the January Committee meetings. 3) January 22: Attended a meeting of the Finance, Administration and Communications Committee. Reviewed, discussed, and made recommendation on items that will be presented at the February 2014 board meeting. 4) January 28: Attended a meeting of the District’s Desalination Project Committee. Received an update on the status of the Desalination Project, the District’s desalination conveyance system and the regulatory processes. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 11, 2014 SUBMITTED BY: Rita Bell, Finance Manager W.O./G.F. NO: DIV. NO. All ARPPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Eliminate the Collection of Betterment Fees for the North District and Improvement Districts (ID) 9 and 10; Adopt Ordinance No. 541 Amending Section 0.02 A, Definitions; Section 25.03 G, H & I, Definitions of Water Categories, Water Rates, Charges and Fees; and Appendix A of the District’s Code of Ordinances to Reflect these Changes Effective July 1, 2014January 1, 2015 GENERAL MANAGER’S RECOMMENDATION: That the Board eliminate the collection of betterment fees for the North District and Improvement Districts (ID) 9 and 10; and adopt Ordinance No. 541 amending Section 0.02 A, Definitions; 25.03 G, H & I, Definitions of Water Categories, Water Rates, Charges and Fees; and Appendix A of the District's Code of Ordinances to reflect these changes effective July 1, 2014 January 1, 2015. COMMITTEE ACTION: See Attachment A. PURPOSE: To eliminate the collection of betterment fees for the North District, ID 9 and ID 10 to be effective July 1, 2014 January 1, 2015 and to amend Sections 0.02 A, 25.03 G, H & I, and Appendix A. BACKGROUND: The Otay Water District collects betterment fees for North District and IDs 9 and 10. These additional water charges are collected and set aside in separate accounts which are used solely for the payment of costs and borrowings for construction, installation, and maintenance of water storage reservoirs, pump stations, and water lines for each improvement district. For the North District and ID 9, there are no authoritative or clear end dates, however, there are sufficient reasons to terminate these fees. Prior staff reports and Board minutes, while not authoritative, show where the terms did not exceed 20 years. Also, capital cost recovery for the assets identified in staff reports have or will be met before the end of this fiscal year. There are authorized maintenance expenditures for these revenues that are ongoing, however, these types of charges are no longer consistent with the District’s rate philosophy. The District has gone to a district-wide financing approach for all capital and maintenance costs. Based on discussions with legal counsel, there is no requirement to refund any additional funding collected as these funds have been used consistent with the purposes outlined in the resolutions. Staff has determined the purposes for the fees appear to have been substantially met and staff recommends that the fees be terminated. The North District betterment fees were adopted on January 1, 1986 under Ordinance No. 318. The Ordinance was silent with regard to an expiration date. Staff reviewed board packets and minutes to determine if an expiration date was discussed and/or adopted. Financing presentations to the Board identified a 15-year term and a review of the board minutes show discussions of the financing term not to exceed 20 years. Assuming a 20-year term for the North District, these fees would have expired on December 31, 2005. Improvement District 9 betterment fees were adopted on May 1, 1986 under Ordinance No. 319. The ordinance was silent with regard to an expiration date. Staff reviewed board packets and minutes to determine if an expiration date was discussed and/or adopted. Financing presentations to the Board identified a 15-year term and a review of the board minutes show discussions of the financing term not to exceed 20 years. Assuming a 20-year term for ID 9, these fees would have expired on June 1, 2006. Improvement District 10 betterment fees were adopted on May 17, 1993 under Ordinance No. 411 and unlike the North District and ID 9 fees, ID 10 does have a termination date. The ordinance establishes the expiration date for ID 10 as December 31, 2018 (25-year term). However, similar to ID 9 and the North District, sufficient revenues will be collected by the end of the 2014 fiscal year. Also, while there is authorization to fund the maintenance costs via these fees, this is no longer consistent with the District’s rate setting philosophy. Staff performed the following procedures for the North District and IDs 9 and 10 to identify the capital projects intended for each district and its related revenue collections: • Reviewed board meeting agendas, minutes and related documentation from 1985 through 1998 that had discussions of betterment fees for the North District and IDs 9 and 10. • Reviewed financing presentations (1985-1986) to the Board which itemized the intended CIP projects and estimated costs for betterment projects for each improvement district. • Reviewed 1992 financing study from an independent consultant, Fieldman, Rolapp & Associates (FRA). The District had a contract with FRA to develop a financing plan that would provide funding for all of the District’s future capital improvement projects. The study included a review of Otay’s improvement districts. The report was presented and approved by the Board in February 1993. • Staff itemized the projects listed in the FRA report and traced CIP projects and estimated costs to Otay’s 1995 approved 5-year CIP plan. Staff researched the CIP projects to determine the current status (deleted, completed, delayed or in process) and estimated the costs incurred through June 30, 2013. Following are the estimated costs for each improvement district: o North District = $9,583,700 o Improvement District 9 = $3,506,660 o Improvement District 10 = $2,978,200 • Staff estimated cumulative collections for the North District and Improvement Districts 9 and 10 from its inception through June 30, 2013. Following are the estimated collections for each improvement district: o North District = $9,503,285 o Improvement District 9 = $4,114,209 o Improvement District 10 = $3,076,982 Staff estimates that by June 30, 2014, the District will have collected sufficient fees to cover the costs of the CIP projects that were identified in the Financing Plan. In addition, all fees collected in excess of the CIP costs have been used for the maintenance of each improvement district, as intended. Staff recommends the Board approve an expiration date of July 1, 2014 December 31, 2014 for betterment fees of the North District and IDs 9 and 10. FISCAL IMPACT: Staff recommends that the District discontinue betterment fee collections for the North District and ID 9 because 1) the collection period (20 years) has passed; 2) sufficient fees have been collected to cover the CIP projects; and 3) ongoing collection of these charges for maintenance purposes is no longer consistent with the District’s rate setting practices. Staff also recommends that the betterment fees collected for ID 10 be discontinued for reasons 2 and 3 above. Staff also reviewed the effect to the typical water bill. With a decrease in betterment fees and an equivalent increase in the general water rate, the typical bill would remain at an estimated $83.67 for Fiscal Year 2015. The District will have no change to its position of having the 10th lowest water rates of the 23 water providers in the region. Should the Board approve the expiration of betterment fees in the North District and Improvement Districts 9 and 10 to be effective July 1, 2014 January 1, 2015, staff would look to shift the $783,100 of betterment fee revenue into the general water rate. Sewer revenues would not be affected. STRATEGIC GOAL: Through well-established financial policies and wise management of funds, the District will continue to guarantee fiscal responsibility to its ratepayers and the community at large. LEGAL IMPACT: None. Attachments: A) Committee Form B) Ordinance No. 541 Exhibit 1 – Strike-through Section 0.02 Exhibit 2 – Proposed Section 0.02 Exhibit 3 – Strike-through Section 25.03 Exhibit 4 – Proposed Section 25.03 Exhibit 5 – Strike-through Appendix A Exhibit 6 – Proposed Appendix A ATTACHMENT A SUBJECT/PROJECT: Eliminate the Collection of Betterment Fees for the North District and Improvement Districts (ID) 9 and 10; Adopt Ordinance No. 541 Amending Section 0.02 A, Definitions; Section 25.03 G, H & I, Definitions of Water Categories, Water Rates, Charges and Fees; and Appendix A of the District’s Code of Ordinances to Reflect these Changes Effective July 1, 2014 January 1, 2015 COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on February 19, 2014 and the following comments were made: • Staff is recommending that the board eliminate the collection of betterment fees for the North District (ND) and Improvement District’s (IDs) 9 and 10 to be effective July 1, 2014; and adopt Ordinance 541 implementing the necessary changes to the District’s definitions and water rates, charges and fees in the District’s Code of Ordinances. • While the ND and ID 9 had no authoritative dates or clear dates for the termination of the fees, the capital costs for ID 9 has already been met and for the ND they will be met by July 1, 2014. • ID 10 betterment fees have an expiration date of December 31, 2018. However, staff has determined that the capital cost recovery for ID 10 has already been met. • There is authorization to fund the maintenance cost with these fees, however, this approach is no longer consistent with the District’s rate setting philosophy. The District has moved to a district-wide financing approach for all capital and maintenance costs. • The District’s attorney has indicated that there is no requirement to refund any fees that have or will be collected as these funds have and will be used consistent with the purposes outlined in the resolutions adopted in 1986 and 1993 which implemented the fees. • Staff has determined that the purposes of the fees have been substantially met and recommends that the fees be terminated. • Staff noted that a decrease in betterment fees would require an equivalent increase in the general water rate and the elimination of the fees will not affect the typical water bill. It is anticipated that the District wide typical bill would remain at approximately $83.76 per month for FY 2015 and there would be no change to the District’s position of being the 10th lowest cost of the 23 local water providers. There will be no impact to sewer revenues. • The committee inquired the number of customers that would be impacted by the elimination of the fees. Staff, following the meeting, provided the information below: Customers ID 9 ID 10 North District Total District Total 1,383 3,609 15,060 48,754 • The committee inquired what the monthly financial impact was for each of the areas affected and to the overall District customer. Staff provided the information below following the meeting: Monthly Impact ID 9 ID 10 North District Total District Area Change (7.11) (6.32) (1.55) 1.15 Net Change (5.96) (5.17) (0.40) • Staff indicated that the overall revenues collected from these fees was $783,100. This was a projection that included not only these three ID fee changes but also included the recently expired fees in ID’s 1 and 3. Following the meeting, staff projected the financial impact for ID’s 9, 10, and ND alone, which equaled $672,005. • It was noted that the District’s fiscal year 2015 budget would not include these fees for half of the year, resulting in a loss of funding. The committee suggested that the elimination of the fees be implemented on January 1, 2015, in conjunction with the rate increases, instead of July 1, 2014, thus avoiding for a greater rate increase to make up for the lost revenue. Following the meeting staff calculated the loss in funding for the first half of the fiscal year to be approx. $401,425. • The committee noted that the District is also anticipating increases from its water suppliers. The District did receive good news that MWD is anticipating implementing a rate increase of 1.5% as opposed to the 5% they had projected last year for FY 2015. The District, however, does not know the impact to CWA rates. Following the discussion, the Committee supported staff’s recommendation with the implementation of the termination of the betterment fees changed to January 1, 2015 from the proposed date of July 1, 2014. The committee recommended presentation of this item to the full board on the consent calendar. 1 ORDINANCE NO. 541 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTIONS 0.02 A, DEFINITIONS; 25.03 G, H & I, DEFINITIONS OF WATER CATEGORIES, WATER RATES, CHARGES AND FEES; AND APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Sections 0.02 A, Definitions; 25.03 G, H & I, Definitions of Water Categories, Water Rates, Charges and Fees; and Appendix A be amended as per Exhibits 1, 3 and 5. NOW, THEREFORE, BE IT RESOLVED that the new proposed Sections 0.02 A. Definitions; 25.03 G, H & I, Definitions of Water Categories, Water Rates, Charges and Fees; and Appendix A as per Exhibits 2, 4 and 6 of the Code of Ordinances shall become effective July 1, 2014. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 11th day of March 2014, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: __________________________ District Secretary Attachment B 0-1 DIVISION I DISTRICT ADMINISTRATION CHAPTER 1 GENERAL PROVISIONS SECTION 0 DEFINITIONS AND MISCELLANEOUS PROVISIONS 0.01 TITLE - REFERENCE TO CODE This Code shall be known as the "Otay Water District Code of Ordinances." References herein to the "Code" or the "Ordinances" shall be deemed to mean said Code of Ordinances. 0.02 DEFINITIONS A. The following words as used in this Code shall have the meanings set forth below unless otherwise apparent in the context in which they are used: "Board of Directors" or "Board" means the Board of Directors of the District. "Board Member" or "Member of the Board" means a Director of the Board of Directors. "Central Area Service Zone" means all land within the bounda- ries of the area identified as the Central Area Service Zone as shown on the map on file in the Office of the District Sec- retary. "County" means the County of San Diego. "Customer" means any person, firm, association, partnership, corporation or governmental agency supplied or entitled to be supplied with water or sewer service by the District for com- pensation. "Developer" means any person, firm, association, partnership, joint venture or corporation who applies for acceptance by the District of an addition to its water distribution system or its sewer collection system. "District" means the Otay Water District (formerly Otay Municipal Water District). "Equivalent Dwelling Unit" or "EDU" means a unit of meas- urement for water service or sewer service. For water service, one EDU shall be considered to be equivalent to a ¾-inch meter, and is also typically considered to be equivalent to 650 gallons per day (gpd) for planning pur- poses. For sewer service, one EDU shall be 250 gallons per day (gpd) of residential strength wastewater defined Exhibit 1 0-2 as having a maximum concentration of 280 milligrams per liter (mg/l) biochemical oxygen demand (BOD) and 234 mil- ligrams per liter (mg/l) suspended solids. "General Manager" means the General Manager of the Dis- trict or the designated representative. "ID 9 Water Service Zone" means all land within water Improvement District No. 9 and within the boundaries of San Diego County Tentative Map No. 3541, including but not limited to San Diego County Map Nos. 9163 and 9212. "Irrigated area" means the area of land (measured in square feet) which may require supplemental water (pota- ble or recycled) from the District for the support of landscaping, but does not include decks, walkways, pat- ios, tennis courts or any other permanently hard-surfaced areas maintained within or around landscaped areas. Trees shall have an irrigated area equal to the area within the circumference of the canopy (drip line) of the tree at maturity. "Landscape or landscaping" means the living plant mate- rial and organic or inorganic ground covers (mulches) used for aesthetic, erosion control and/or fire control purposes as specified by city or county regulations. "Line Extension" means a water or sewer main constructed from the termination point of an existing District main to provide service beyond the existing main. "Non-permanent Irrigation Service" means water service furnished to establish and maintain re-vegetated native plants for a period not to exceed five years. "North District" means all land within water Improvement Districts 1, 2, 3, 9, 20 and 25, and all land within the District boundaries lying east of the westerly line of Sections 16, 21, 28 and 33 of Township 17 South, Range 1 East, San Bernardino Base and Meridian, and north of the south line of Township 17 South, Ranges 1 East and 2 East, San Bernardino Base and Meridian. "Off-Site Facilities" means facilities which must be con- structed outside the boundaries of a development to bring utility service from the nearest District facility to the boundary of the land being developed. "On-Site Facilities" means facilities which must be con- structed within the boundaries of a development for util- ity service within the development or other land to be served. 0-3 "Parcel Map Development" or "Lot-Split" means a real es- tate development resulting in a division of land into four or less parcels for which no subdivision map is re- quired but for which a parcel map is required to be filed and approved by the applicable local governmental agency. "Person" means any individual, firm, co-partnership, joint venture association, corporation, county, city, municipal corporation or other political subdivision, or any other group or combination acting as a unit. "Sewer Lateral" means the portion of pipe between the District sewer main and the coupling at the property owner's point of connection. The word "shall" means mandatory and the word "may" means permissive. "Staff" means the General Manager and other administra- tive personnel of the District. "Subdivision" means a real estate development resulting in a division of land into five or more lots or parcels for which a subdivision map is required to be filed and approved by the applicable local governmental agency. "Utility" or "Utility System" means a water system and/or sewer system, as applicable. "Water Lateral" means the portion of pipe between the District water main and the water meter location. "Water Meter" means an instrument used for automatic recording of the quantity of water delivered to a cus- tomer and the term shall include the fittings, valves and equipment required for operation of the water meter. "Water Service" means the furnishing of water to a cus- tomer through a District-owned water meter or meters. 0.03 EFFECT OF HEADING The title, division or section headings contained in this Code shall not be deemed to govern, limit or modify in any manner the scope, meaning or intent of the provisions of any section or subsection of this Code. 0.04 NOTICES A. Whenever a notice is required to be given under this Code, unless different provisions are specifically made herein, such notice may be made either by personal delivery thereof to the person to be notified or by deposit in the U.S. 0-4 Mail in a sealed envelope, postage prepaid, addressed to such person at his last known business or residence address as the name appears in public records or other records pertaining to the matter to which the notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the post office. B. Proof of giving any notice may be made by the cer- tificate of any officer or employee of the District or by affidavit of any person over the age of eighteen years, which shows service in conformity with this Code or other provisions of law applicable to the subject matter concerned. 0.05 VALIDITY OF CODE If any section, subsection, sentence, clause, phrase or portion of this Code is for any reason held to be invalid or unconstitutional by the decision of any court, such decision shall not affect the remaining portions of this Code. The Board of Directors hereby declares that it would have adopted this Code and each section, subsection, sentence, clause, phrase or portion thereof, irrespective that any one or more sections, subsections, clauses, phrases or portions be declared invalid or unconstitutional. 0.06 TIME LIMIT FOR SEEKING REVIEW OF ADMINISTRATIVE DECISIONS Judicial review of any administrative decision of the District may be had pursuant to Code of Civil Procedure Sec- tion 1094.5 only if the petition for writ of mandate is filed not later than the ninetieth day following the date on which the decision become final. 0-1 DIVISION I DISTRICT ADMINISTRATION CHAPTER 1 GENERAL PROVISIONS SECTION 0 DEFINITIONS AND MISCELLANEOUS PROVISIONS 0.01 TITLE - REFERENCE TO CODE This Code shall be known as the "Otay Water District Code of Ordinances." References herein to the "Code" or the "Ordinances" shall be deemed to mean said Code of Ordinances. 0.02 DEFINITIONS A. The following words as used in this Code shall have the meanings set forth below unless otherwise apparent in the context in which they are used: "Board of Directors" or "Board" means the Board of Directors of the District. "Board Member" or "Member of the Board" means a Director of the Board of Directors. "Central Area Service Zone" means all land within the bounda- ries of the area identified as the Central Area Service Zone as shown on the map on file in the Office of the District Sec- retary. "County" means the County of San Diego. "Customer" means any person, firm, association, partnership, corporation or governmental agency supplied or entitled to be supplied with water or sewer service by the District for com- pensation. "Developer" means any person, firm, association, partnership, joint venture or corporation who applies for acceptance by the District of an addition to its water distribution system or its sewer collection system. "District" means the Otay Water District (formerly Otay Municipal Water District). "Equivalent Dwelling Unit" or "EDU" means a unit of meas- urement for water service or sewer service. For water service, one EDU shall be considered to be equivalent to a ¾-inch meter, and is also typically considered to be equivalent to 650 gallons per day (gpd) for planning pur- poses. For sewer service, one EDU shall be 250 gallons per day (gpd) of residential strength wastewater defined Exhibit 2 0-2 as having a maximum concentration of 280 milligrams per liter (mg/l) biochemical oxygen demand (BOD) and 234 mil- ligrams per liter (mg/l) suspended solids. "General Manager" means the General Manager of the Dis- trict or the designated representative. "Irrigated area" means the area of land (measured in square feet) which may require supplemental water (pota- ble or recycled) from the District for the support of landscaping, but does not include decks, walkways, pat- ios, tennis courts or any other permanently hard-surfaced areas maintained within or around landscaped areas. Trees shall have an irrigated area equal to the area within the circumference of the canopy (drip line) of the tree at maturity. "Landscape or landscaping" means the living plant mate- rial and organic or inorganic ground covers (mulches) used for aesthetic, erosion control and/or fire control purposes as specified by city or county regulations. "Line Extension" means a water or sewer main constructed from the termination point of an existing District main to provide service beyond the existing main. "Non-permanent Irrigation Service" means water service furnished to establish and maintain re-vegetated native plants for a period not to exceed five years. "Off-Site Facilities" means facilities which must be con- structed outside the boundaries of a development to bring utility service from the nearest District facility to the boundary of the land being developed. "On-Site Facilities" means facilities which must be con- structed within the boundaries of a development for util- ity service within the development or other land to be served. "Parcel Map Development" or "Lot-Split" means a real es- tate development resulting in a division of land into four or less parcels for which no subdivision map is re- quired but for which a parcel map is required to be filed and approved by the applicable local governmental agency. "Person" means any individual, firm, co-partnership, joint venture association, corporation, county, city, municipal corporation or other political subdivision, or any other group or combination acting as a unit. 0-3 "Sewer Lateral" means the portion of pipe between the District sewer main and the coupling at the property owner's point of connection. The word "shall" means mandatory and the word "may" means permissive. "Staff" means the General Manager and other administra- tive personnel of the District. "Subdivision" means a real estate development resulting in a division of land into five or more lots or parcels for which a subdivision map is required to be filed and approved by the applicable local governmental agency. "Utility" or "Utility System" means a water system and/or sewer system, as applicable. "Water Lateral" means the portion of pipe between the District water main and the water meter location. "Water Meter" means an instrument used for automatic recording of the quantity of water delivered to a cus- tomer and the term shall include the fittings, valves and equipment required for operation of the water meter. "Water Service" means the furnishing of water to a cus- tomer through a District-owned water meter or meters. 0.03 EFFECT OF HEADING The title, division or section headings contained in this Code shall not be deemed to govern, limit or modify in any manner the scope, meaning or intent of the provisions of any section or subsection of this Code. 0.04 NOTICES A. Whenever a notice is required to be given under this Code, unless different provisions are specifically made herein, such notice may be made either by personal delivery thereof to the person to be notified or by deposit in the U.S. Mail in a sealed envelope, postage prepaid, addressed to such person at his last known business or residence address as the name appears in public records or other records pertaining to the matter to which the notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the post office. B. Proof of giving any notice may be made by the cer- tificate of any officer or employee of the District or by affidavit of any person over the age of eighteen years, which shows service in conformity with this Code or other provisions of law applicable to the subject matter concerned. 0-4 0.05 VALIDITY OF CODE If any section, subsection, sentence, clause, phrase or portion of this Code is for any reason held to be invalid or unconstitutional by the decision of any court, such decision shall not affect the remaining portions of this Code. The Board of Directors hereby declares that it would have adopted this Code and each section, subsection, sentence, clause, phrase or portion thereof, irrespective that any one or more sections, subsections, clauses, phrases or portions be declared invalid or unconstitutional. 0.06 TIME LIMIT FOR SEEKING REVIEW OF ADMINISTRATIVE DECISIONS Judicial review of any administrative decision of the District may be had pursuant to Code of Civil Procedure Sec- tion 1094.5 only if the petition for writ of mandate is filed not later than the ninetieth day following the date on which the decision become final. 25-1 25 SECTION 25 CONDITIONS FOR WATER SERVICE 25.01 SERVICE AREA Water service shall be furnished by the District only to property within (annexed to) a water improvement district within the District’s service area. Water service to property located outside an improvement district may be furnished only upon prior approval of the Board of Directors. Temporary water service to property located outside an improvement district may be furnished, in accordance with Section 25.03 E.12., upon the approval of the General Manager. 25.02 DEFINITION OF "HCF" AND "UNIT OF WATER" As used in the Code the terms "HCF" and "unit of water" are interchangeable and each shall mean 100 cubic feet or 748 gallons of water. 25.03 DEFINITIONS OF WATER SERVICE CATAGORIES, WATER RATES, CHARGES AND FEES Water service furnished by the District shall be under the categories of services and at the rates, charges and fees as set forth in Appendix A, Section 25. All District water rates, charges and fees are subject to Board approval of rate increases beginning January 1, 2014 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases related to operations and maintenance, but not to exceed 10% per year. Five-year Periodic Pass–through Rate Increases or Decreases from District Wholesalers – All District water rates, charges and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. A. Set-up Fees for Accounts A set-up fee shall be charged for each account transferred to another customer. See Appendix A, 25.03 A. for charges. A deposit will be required of all customers who do not own the property to be served. See Appendix A, 25.04 A. for deposit amounts. B. Monthly Fixed MWD & CWA Charges Each potable water service customer shall pay a monthly MWD and CWA fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for operating and maintenance costs, including the following: MWD Readiness-to-Serve Charge and Capacity Reservation Charge; CWA Infrastructure Access Charge, Customer Service Charge, and Emergency Storage Charge. The MWD & CWA charge is based on Exhibit 3 25-2 the size of the water meter(s) in service with the exception of upsizing the meter for individually metered residential fire service, as described in Section 38.03 of the Code. The MWD & CWA charge shall start upon installation of the meter. C. Monthly Fixed System Charges Each water service customer shall pay a monthly fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for water system replacement, maintenance, and operation expenses. The system charge is based on the size of the water meter(s) in service. For individually metered residential fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The system charge shall start upon installation of the meter D. Water Conservation Drought Pricing To promote conservation, base tiered water rates for all water services are subject to percentage increases during drought stages, as shown in the table below: Drought Stage Pricing Stage 2 Stage 3 Stage 4 Tier 1* 0%0%0% Tier 2 Up to 5%Up to 10% Up to 15% Tier 3 Up to 30%Up to 60% Up to 90% *Domestic residential water service has four tiered base rates as outlined in Appendix A, 25.03 E.1.(b). Tier 1 of the above table applies to the first two tiered base rates. Tier 2 of the above table applies to the third tiered base rate. Tier 3 of the above table applies to the fourth tiered base rate. E. Categories of Water Service The definitions and rates and charges for water service furnished by the District shall be as follows: 1. DOMESTIC RESIDENTIAL WATER (a) Defined as: Water service for single residential and individually metered attached households as well as other domestic uses (other than that provided for in Paragraph 2 below). (b) Base Rate: The tiered base rates of water furnished under this category shall be set forth in Appendix A, 25.03 E.1.(b). 25-3 The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 2. MULTIPLE RESIDENTIAL WATER (a) Defined as: Master metered water service for multiple residential households, for example, duplexes, townhomes, apartments and mobile homes. (b) Base Rate: The tiered base rates of water furnished for each dwelling unit under each block of service in this category shall be as set forth in Appendix A, 25.03 E.2.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 3. BUSINESS AND PUBLICLY-OWNED WATER (a) Defined as: Potable water service for commercial, industrial and publicly-owned establishments. (b) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.3.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 4. IRRIGATION AND COMMERCIAL AGRICULTURAL USING POTABLE WATER (a) Irrigation is potable water service provided solely for irrigation of landscape or landscaping, as defined in Section 0.02 A. (b) Commercial agricultural engaged in the growing or raising of live stock, in conformity with recognized practices of husbandry, for the purpose of commerce, trade or industry, or for the use by public educational or correctional institutions or agricultural horticultural or floricultural products and produced, (i) for human consumption or for the market, or (ii) for the feeding of fowl or livestock produced for human consumption or for the market, or 25-4 (iii) for feeding fowl or livestock for the purpose of obtaining their products for human consumption or for the market, such products to be grown or raised on a parcel of land having an area of not less than one acre utilized exclusively therefore. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.4.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 5. RECYCLED WATER – LANDSCAPE IRRIGATION AND CERTAIN NON-IRRIGATION PURPOSES (a) Defined as: Non-potable and recycled water service provided for irrigation of landscaping, as defined in Section 0.02 A. of the Code, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.5.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C. 6. RECYCLED WATER - COMMERCIAL (a) Defined as: Non-potable and recycled water service provided for commercial customers, as defined in Section 0.02 A. of the Code, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. 25-5 (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.6.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled commercial water service is set forth in Appendix A, 25.03 C. 7. POTABLE TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Potable water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.7.(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system and MWD & CWA charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 8. RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.8(b). 25-6 (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 9. WATER SERVICE UNDER SPECIAL AGREEMENTS (a) Defined as: Water service provided under express agreements approved by the Board of Directors for service to golf courses and other entities, which service may be curtailed or interrupted by the District under conditions provided in such agreements. (b) For water service under this category the base rate shall be determined on a case-by-case basis. Unless otherwise specified in the particular agreement, the tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 10. TANK TRUCKS (a) Defined as: Water service provided for the filling of tanks on motor vehicles transporting water used for other than earth grading purposes, which service shall be made only through a portable meter issued by the District to a customer specifically for use in accordance with the provisions herein for such service. (b) The rate for metered water furnished under this category is reflected in Appendix A, 25.03 E.10. (b), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (c) Requirements for Use of Water Meter (1) To receive such service, the customer must make a deposit for the use a water meter 25-7 furnished by the District. The fee is set forth in Appendix A, 31.03 A.1. (2) Upon termination of the service, the Dis-trict will refund the amount of deposit remaining after making the following deductions: (i) Cost of repairing or replacing the meter, fire hydrant and/or any fittings damaged or lost while in use; and (ii) Unpaid charges for water or other applicable charges. (3) Prior to the end of each six month period following issuance of a meter under this section, or at the request of the District, whichever is earlier, the customer shall return the meter to the District for inspection, repair, or calibration as deemed necessary by the District. (4) Payment for water service under this cate-gory shall be made as follows: (i) The bill shall be based on the amount of water actually used, which shall be determined by the District’s reading of the meter or by a report made by the customer to the District in the manner prescribed by the District. (ii) Where the actual amount of water used cannot be determined as provided in (i), the District will issue a bill based on a District estimate of the amount of water used, as determined by the District. Such estimates shall be reconciled with actual amounts used when the customer returns the meter to the District as provided in paragraph 3 above. (iii)Payments shall be made as specified on the bill. 11. WATER SERVICE OUTSIDE DISTRICT (a) Defined as: Water service for real property outside the service area of the District. (b) This service will be provided only upon prior approval of the General Manager when there is a surplus of water over and above the existing 25-8 needs for service in the District. This service is temporary and may be terminated upon written notice from the District. Customers for this service are sometimes referred to as "outside users." (c) Customers applying for this category of service shall pay an application fee as set forth in Appendix A, 25.03 E.11.(c). (d) The rate for metered water furnished under this category shall be charged the rate as described in Appendix A, 25.03 E.11.(d), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) Customers requesting only fire service or a fire hydrant under this category shall be charged a capacity fee based on one (1) EDU for a permanent meter in the improvement district from which the fire service derives its flow, plus a monthly system charge at the rate set forth in Appendix A, 25.03 E.13.(c). 12. WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT (a) Defined as: Water service for property located within the boundaries of the District, but not within a water improvement district. Customers for this service are sometimes referred to as "outside users." (b) Customers applying for this service shall pay an application fee as set forth in Appendix A, 25.03 E.12.(b). The District will review the application to determine whether the land to be served should be annexed to an improvement district. If it is determined that annexation is not practical, the Board of Directors may authorize service as an outside user. This service will be reviewed periodically until it is determined that the property must be annexed to an improvement district or that service must be terminated. (c) The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 E.12.(c), plus a monthly system charge as set forth in Appendix A, 25.03.C. 25-9 The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Upon approval of the Board of Directors, a cus-tomer, who has paid all construction costs for facilities necessary to serve the customer's property in lieu of annexation to a water improvement district, shall be exempt from the provision for this category of service. 13. SERVICE FOR FIRE PROTECTION (a) Defined as: Water service provided by the Dis-trict solely to feed fire hydrants or fire sprinkler systems from lines or laterals con-nected to District water mains. (b) The District will not make a charge for the quantity of water used for fire protection purposes. (c) The monthly system charge for this category of service is set forth in Appendix A, 25.03 E.13.(c) for each connection to a District water main made for fire protection service. 14. WATER SERVICE TO PROPERTY NOT SUBJECT TO DISTRICT TAXES (a) Pursuant to Section 71613 of the California Water Code, the District may furnish water to property, not subject to District taxes, at special rates, terms and conditions as are determined by the Board of Directors for such service. Such rates, terms and conditions shall be uniformly applied to like classes and conditions of service in the same improvement district or geographical area. (b) Customers in this category, such as publicly-owned establishments, shall pay an additional fee as outlined in Appendix A, 25.03 E.14.(b). 15. INTERIM WATER SERVICE IN IMPROVEMENT DISTRICT 7 (a) Definition of Interim Service. This is water Service furnished to a customer in Improvement District 7 (ID 7) for temporary use. (b) Rates for Interim Service. Customers applying for interim service in ID 7 shall not be required to pay the ID 7 water capacity fee and San Diego 25-10 County Water Authority fee, as required under Section 2801 of this Code. The water rate is set forth in Appendix A, 25.03 E.15.(b). (c) Conversion to Permanent Service. At such time as use expires, the customer shall be required to pay all fees in effect at the time the permanent use is implemented. F. Energy Charges for Pumping Water In addition to water rates and other charges provided for in this Section 25.03, customers shall be charged an energy pumping charge based on the quantity of water used and the elevation to which the water has been lifted to provide service. The energy pumping charge shall be made at the rate set forth in Appendix A, 25.03 F. G. Additional Water Charge for Service in the North District 1. In addition to other applicable water rates and charges provided for in this Section 25.03, each customer receiving water service in the North District shall pay a charge as set forth in Appendix A, 25.03 G.1. The North District area is defined in Section 0.02 of this Code. 2. All proceeds from charges collected pursuant to this Section 25.03 G. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage reservoirs, pump stations and water lines to provide service in the North District. H. Additional Water Charges and Monthly System Charges for Service in the ID 9 Water Service Zone 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a charge set forth in Appendix A, 25.03 H.1. The ID 9 Water Service Zone area is defined in Section 0.02 of this Code. 2. In addition to the monthly system charges provided for, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a monthly meter system charge as outlined in Appendix A, 25.03 H.2. for each meter in service. 3. All proceeds from charges collected pursuant to this Section 25.03 H. shall be set aside by the District in 25-11 a separate account and shall be used solely for pay-ment of costs and borrowing for construction, installation and maintenance of water storage reser-voirs, pump stations and water lines to provide ser-vice in the ID 9 Water Service Zone. I. Additional Water Charges for Services in the ID 3, ID 10 and La Presa Water Service Zones 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 17, 1993, each customer receiving water service in ID 3, ID 10 and La Presa Water Service Zones is assessed an additional charge per H.C.F. of water furnished by the District. Said surcharge is assessed as set forth in Appendix A, 25.03 I.1.(a),(b), and (c), respectively. 2. All proceeds from charges collected pursuant to this Section 25.03 I. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage, reservoirs, pump stations and water lines to provide service in the ID 3, ID 10 and La Presa Water Service Zones, respectively. 25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY 8. RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.8(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system charge shall be the same rates charged to customers in the same 25-12 category of service on a permanent meter basis per Appendix A, 25.03 C. A. AMOUNT OF DEPOSIT The customer's deposit shall be applied to reduce or satisfy any delinquent payment or other amount due the District at the time of termination of water service to the customer. Any portion of the deposit remaining, after satisfaction of the amount due, shall be refunded to the customer that made the deposit. The deposits listed above may be waived for a new resi-dential applicant where the applicant demonstrates credit worthiness based upon prior utility payments or a non-delinquent water account for one year or other similar evidence of credit. B. REFUND OF DEPOSIT Where funds have been on deposit for twelve months in a domestic service account and there has been no more than one delinquent payment on that account during that period, the District will apply a credit to the water account in the amount of the deposit. C. LETTER OF CREDIT A letter of credit, in a form approved by the General Manager or Department Head of Finance, may be submitted to the District to satisfy the deposit requirements. 25.05 SERVICE TO SUBSEQUENT CUSTOMERS After a water meter has been installed for a customer and all fees and charges have been paid, water service may be furnished to a subsequent customer through the water meter installed without payment of further charges, except for the set-up fee for transferred accounts, payment of delinquent charges for the applicant's service or other deposits that may be required by this Code.   25-1 25 SECTION 25 CONDITIONS FOR WATER SERVICE 25.01 SERVICE AREA Water service shall be furnished by the District only to property within (annexed to) a water improvement district within the District’s service area. Water service to property located outside an improvement district may be furnished only upon prior approval of the Board of Directors. Temporary water service to property located outside an improvement district may be furnished, in accordance with Section 25.03 E.12., upon the approval of the General Manager. 25.02 DEFINITION OF "HCF" AND "UNIT OF WATER" As used in the Code the terms "HCF" and "unit of water" are interchangeable and each shall mean 100 cubic feet or 748 gallons of water. 25.03 DEFINITIONS OF WATER SERVICE CATAGORIES, WATER RATES, CHARGES AND FEES Water service furnished by the District shall be under the categories of services and at the rates, charges and fees as set forth in Appendix A, Section 25. All District water rates, charges and fees are subject to Board approval of rate increases beginning January 1, 2014 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases related to operations and maintenance, but not to exceed 10% per year. Five-year Periodic Pass–through Rate Increases or Decreases from District Wholesalers – All District water rates, charges and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. A. Set-up Fees for Accounts A set-up fee shall be charged for each account transferred to another customer. See Appendix A, 25.03 A. for charges. A deposit will be required of all customers who do not own the property to be served. See Appendix A, 25.04 A. for deposit amounts. B. Monthly Fixed MWD & CWA Charges Each potable water service customer shall pay a monthly MWD and CWA fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for operating and maintenance costs, including the following: MWD Readiness-to-Serve Charge and Capacity Reservation Charge; CWA Infrastructure Access Charge, Customer Service Charge, and Emergency Storage Charge. The MWD & CWA charge is based on Exhibit 4 25-2 the size of the water meter(s) in service with the exception of upsizing the meter for individually metered residential fire service, as described in Section 38.03 of the Code. The MWD & CWA charge shall start upon installation of the meter. C. Monthly Fixed System Charges Each water service customer shall pay a monthly fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for water system replacement, maintenance, and operation expenses. The system charge is based on the size of the water meter(s) in service. For individually metered residential fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The system charge shall start upon installation of the meter D. Water Conservation Drought Pricing To promote conservation, base tiered water rates for all water services are subject to percentage increases during drought stages, as shown in the table below: Drought Stage Pricing Stage 2 Stage 3 Stage 4 Tier 1* 0%0%0% Tier 2 Up to 5%Up to 10% Up to 15% Tier 3 Up to 30%Up to 60% Up to 90% *Domestic residential water service has four tiered base rates as outlined in Appendix A, 25.03 E.1.(b). Tier 1 of the above table applies to the first two tiered base rates. Tier 2 of the above table applies to the third tiered base rate. Tier 3 of the above table applies to the fourth tiered base rate. E. Categories of Water Service The definitions and rates and charges for water service furnished by the District shall be as follows: 1. DOMESTIC RESIDENTIAL WATER (a) Defined as: Water service for single residential and individually metered attached households as well as other domestic uses (other than that provided for in Paragraph 2 below). (b) Base Rate: The tiered base rates of water furnished under this category shall be set forth in Appendix A, 25.03 E.1.(b). 25-3 The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 2. MULTIPLE RESIDENTIAL WATER (a) Defined as: Master metered water service for multiple residential households, for example, duplexes, townhomes, apartments and mobile homes. (b) Base Rate: The tiered base rates of water furnished for each dwelling unit under each block of service in this category shall be as set forth in Appendix A, 25.03 E.2.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 3. BUSINESS AND PUBLICLY-OWNED WATER (a) Defined as: Potable water service for commercial, industrial and publicly-owned establishments. (b) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.3.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 4. IRRIGATION AND COMMERCIAL AGRICULTURAL USING POTABLE WATER (a) Irrigation is potable water service provided solely for irrigation of landscape or landscaping, as defined in Section 0.02 A. (b) Commercial agricultural engaged in the growing or raising of live stock, in conformity with recognized practices of husbandry, for the purpose of commerce, trade or industry, or for the use by public educational or correctional institutions or agricultural horticultural or floricultural products and produced, (i) for human consumption or for the market, or (ii) for the feeding of fowl or livestock produced for human consumption or for the market, or 25-4 (iii) for feeding fowl or livestock for the purpose of obtaining their products for human consumption or for the market, such products to be grown or raised on a parcel of land having an area of not less than one acre utilized exclusively therefore. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.4.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 5. RECYCLED WATER – LANDSCAPE IRRIGATION AND CERTAIN NON-IRRIGATION PURPOSES (a) Defined as: Non-potable and recycled water service provided for irrigation of landscaping, as defined in Section 0.02 A. of the Code, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.5.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C. 6. RECYCLED WATER - COMMERCIAL (a) Defined as: Non-potable and recycled water service provided for commercial customers, as defined in Section 0.02 A. of the Code, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. 25-5 (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.6.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled commercial water service is set forth in Appendix A, 25.03 C. 7. POTABLE TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Potable water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.7.(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system and MWD & CWA charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 8. RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.8(b). 25-6 (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 9. WATER SERVICE UNDER SPECIAL AGREEMENTS (a) Defined as: Water service provided under express agreements approved by the Board of Directors for service to golf courses and other entities, which service may be curtailed or interrupted by the District under conditions provided in such agreements. (b) For water service under this category the base rate shall be determined on a case-by-case basis. Unless otherwise specified in the particular agreement, the tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 10. TANK TRUCKS (a) Defined as: Water service provided for the filling of tanks on motor vehicles transporting water used for other than earth grading purposes, which service shall be made only through a portable meter issued by the District to a customer specifically for use in accordance with the provisions herein for such service. (b) The rate for metered water furnished under this category is reflected in Appendix A, 25.03 E.10. (b), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (c) Requirements for Use of Water Meter (1) To receive such service, the customer must make a deposit for the use a water meter 25-7 furnished by the District. The fee is set forth in Appendix A, 31.03 A.1. (2) Upon termination of the service, the Dis-trict will refund the amount of deposit remaining after making the following deductions: (i) Cost of repairing or replacing the meter, fire hydrant and/or any fittings damaged or lost while in use; and (ii) Unpaid charges for water or other applicable charges. (3) Prior to the end of each six month period following issuance of a meter under this section, or at the request of the District, whichever is earlier, the customer shall return the meter to the District for inspection, repair, or calibration as deemed necessary by the District. (4) Payment for water service under this cate-gory shall be made as follows: (i) The bill shall be based on the amount of water actually used, which shall be determined by the District’s reading of the meter or by a report made by the customer to the District in the manner prescribed by the District. (ii) Where the actual amount of water used cannot be determined as provided in (i), the District will issue a bill based on a District estimate of the amount of water used, as determined by the District. Such estimates shall be reconciled with actual amounts used when the customer returns the meter to the District as provided in paragraph 3 above. (iii)Payments shall be made as specified on the bill. 11. WATER SERVICE OUTSIDE DISTRICT (a) Defined as: Water service for real property outside the service area of the District. (b) This service will be provided only upon prior approval of the General Manager when there is a surplus of water over and above the existing 25-8 needs for service in the District. This service is temporary and may be terminated upon written notice from the District. Customers for this service are sometimes referred to as "outside users." (c) Customers applying for this category of service shall pay an application fee as set forth in Appendix A, 25.03 E.11.(c). (d) The rate for metered water furnished under this category shall be charged the rate as described in Appendix A, 25.03 E.11.(d), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) Customers requesting only fire service or a fire hydrant under this category shall be charged a capacity fee based on one (1) EDU for a permanent meter in the improvement district from which the fire service derives its flow, plus a monthly system charge at the rate set forth in Appendix A, 25.03 E.13.(c). 12. WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT (a) Defined as: Water service for property located within the boundaries of the District, but not within a water improvement district. Customers for this service are sometimes referred to as "outside users." (b) Customers applying for this service shall pay an application fee as set forth in Appendix A, 25.03 E.12.(b). The District will review the application to determine whether the land to be served should be annexed to an improvement district. If it is determined that annexation is not practical, the Board of Directors may authorize service as an outside user. This service will be reviewed periodically until it is determined that the property must be annexed to an improvement district or that service must be terminated. (c) The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 E.12.(c), plus a monthly system charge as set forth in Appendix A, 25.03.C. 25-9 The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Upon approval of the Board of Directors, a cus-tomer, who has paid all construction costs for facilities necessary to serve the customer's property in lieu of annexation to a water improvement district, shall be exempt from the provision for this category of service. 13. SERVICE FOR FIRE PROTECTION (a) Defined as: Water service provided by the Dis-trict solely to feed fire hydrants or fire sprinkler systems from lines or laterals con-nected to District water mains. (b) The District will not make a charge for the quantity of water used for fire protection purposes. (c) The monthly system charge for this category of service is set forth in Appendix A, 25.03 E.13.(c) for each connection to a District water main made for fire protection service. 14. WATER SERVICE TO PROPERTY NOT SUBJECT TO DISTRICT TAXES (a) Pursuant to Section 71613 of the California Water Code, the District may furnish water to property, not subject to District taxes, at special rates, terms and conditions as are determined by the Board of Directors for such service. Such rates, terms and conditions shall be uniformly applied to like classes and conditions of service in the same improvement district or geographical area. (b) Customers in this category, such as publicly-owned establishments, shall pay an additional fee as outlined in Appendix A, 25.03 E.14.(b). 15. INTERIM WATER SERVICE IN IMPROVEMENT DISTRICT 7 (a) Definition of Interim Service. This is water Service furnished to a customer in Improvement District 7 (ID 7) for temporary use. (b) Rates for Interim Service. Customers applying for interim service in ID 7 shall not be required to pay the ID 7 water capacity fee and San Diego 25-10 County Water Authority fee, as required under Section 2801 of this Code. The water rate is set forth in Appendix A, 25.03 E.15.(b). (c) Conversion to Permanent Service. At such time as use expires, the customer shall be required to pay all fees in effect at the time the permanent use is implemented. F. Energy Charges for Pumping Water In addition to water rates and other charges provided for in this Section 25.03, customers shall be charged an energy pumping charge based on the quantity of water used and the elevation to which the water has been lifted to provide service. The energy pumping charge shall be made at the rate set forth in Appendix A, 25.03 F. 25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY 8. RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.8(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. A. AMOUNT OF DEPOSIT The customer's deposit shall be applied to reduce or satisfy any delinquent payment or other amount due the District at the time of termination of water service to the customer. Any portion of the deposit remaining, after 25-11 satisfaction of the amount due, shall be refunded to the customer that made the deposit. The deposits listed above may be waived for a new resi-dential applicant where the applicant demonstrates credit worthiness based upon prior utility payments or a non-delinquent water account for one year or other similar evidence of credit. B. REFUND OF DEPOSIT Where funds have been on deposit for twelve months in a domestic service account and there has been no more than one delinquent payment on that account during that period, the District will apply a credit to the water account in the amount of the deposit. C. LETTER OF CREDIT A letter of credit, in a form approved by the General Manager or Department Head of Finance, may be submitted to the District to satisfy the deposit requirements. 25.05 SERVICE TO SUBSEQUENT CUSTOMERS After a water meter has been installed for a customer and all fees and charges have been paid, water service may be furnished to a subsequent customer through the water meter installed without payment of further charges, except for the set-up fee for transferred accounts, payment of delinquent charges for the applicant's service or other deposits that may be required by this Code.   Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $751.88 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries District-wide Annexation Fee 3/4" $1,622.59 1" $4,056.48 1-1/2" $8,112.95 2" $12,980.72 3" $25,961.44 4 $40,564.75 6" $81,129.50 8" $129,807.20 10" $186,597.85 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts $5,986.57 10 10.01 Filing of Petition $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Reconnection (service resumed)$50.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4"$16.19 $14.45 $30.64 1"$22.87 $26.79 $49.66(1) All Water used in December and billed in January 2014. Otay Water District Appendix A Charges EXHIBIT 5 Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2"$39.58 $60.61 $100.19 2"$59.62 $103.08 $162.70 3"$113.08 $219.23 $332.31 4"$173.22 $351.09 $524.31 6"$340.29 $718.69 $1,058.98 8"$540.76 $1,160.59 $1,701.35 10"$774.64 $1,670.55 $2,445.19 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $1.86 toward the first five units of water when 6-10 $2.90 overall consumption is ten units or less.) 11-22 $3.77 23 or more $5.80 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $2.86 5-9 $3.71 10 or more $5.73 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10"0-185 $3.06 186-1,400 $3.14 1,401 or more $3.19 10" & larger 0-7,426 $3.06 7,427-14,616 $3.14 14,617 or more $3.19 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $4.17 55-199 $4.25 200 or more $4.32 1.5" & 2"0-144 $4.17 145-355 $4.25 356 or more $4.32 3" & larger 0-550 $4.17 551-1,200 $4.25 (1) All Water used in December and billed in January 2014.1,201 or more $4.32 Section #Code #Fee Description Meter Size Charges 25 25.03 E.5. (c)Recycled Water (1)3/4" - 1" 0-32 $3.56 Landscape Irrigation and Certain Non-33-75 $3.61 Irrigation Purposes Rates 76 or more $3.68 1.5" & 2"0-130 $3.56 131-325 $3.61 326 or more $3.68 3" & 4"0-440 $3.56 441-1,050 $3.61 1,051 or more $3.68 6" & larger 0-4,000 $3.56 4,001-10,000 $3.61 10,001 or more $3.68 25 25.03 E.6.(c)Recycled Commercial (1)under 10"0-173 $2.56 174-831 $2.64 832 or more $2.66 10" & larger 0-7,426 2.56 7,427-14,616 $2.64 14,617 or more $2.66 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (continued) (1)3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $21.14 more than 4"$28.49 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.31 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.048 25 25.03 G.1. Additional Water Charge for Service in the North District Per unit charge except for the first 5 units of residential $0.08 25 25.03 H.1. Additional Water Charges for Service in the Improvement District 9 Water Service Zone Per unit charge except for the first 5 units of residential $0.27 25 25.03 H.2. Additional Monthly System Fee for Improvement District 9 $2.00 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 I.1.(a) Additional Water Charges for Services in Improvement District 3 Per unit charge except for the first 5 units of residential 0.19 per H.C.F. Effective Jan 1, 2011 "0.20 per H.C.F. Effective Jan 1, 2012 "0.21 per H.C.F. Effective Jan 1, 2013 25 25.03 I.1.(b) Additional Water Charges for Services in Improvement District 10 Per unit charge except for the first 5 units of residential 0.27 per H.C.F. Effective Jan 1st 2011-2018 25 25.03 I.1.(c) Additional Water Charges for Services in La Presa Per unit charge except for the first 5 units of residential 0.08 per H.C.F. Effective Jan 1st 2011-2013 25 25.04 A.Deposits for Non-Property Owners 3/4"$75.00 1"$150.00 1-1/2"$200.00 2"$360.00 3"$800.00 4"$1,350.00 6"$3,300.00 8"$4,400.00 10"$5,500.00 28 28.01 B.1.Capacity Fees and Zone Charge District-wide Capacity Fee - I.D.'s 1,2,3,5,7,9,10,20,22,22/27,25 3/4" $8,238.18 (excluding Triad) and only I.D. 22/27 1" $20,595.45 require reclaimed irrigation meters.1-1/2" $41,190.90 2" $65,905.44 3" $131,810.88 4 $205,954.50 6" $411,909.00 8" $659,054.40 10" $947,390.70 Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge (continued) - 22/27 TRIAD 3/4" $6,165.18 1" $15,412.95 1 -1/2" $30,825.90 2" $49,321.44 3" $98,642.88 4 $154,129.50 6" $308,259.00 8" $493,214.40 10" $708,995.70 28 28.01 B.2.New Water Supply Fee - All IDs including Triad 3/4" $949.16 1" $2,372.90 1-1/2" $4,745.80 2" $7,593.28 3" $15,186.56 4" $23,729.00 6" $47,458.00 8" $75,932.80 10" $109,153.40 28 28.02 Installation Charges for Water Meter and Water Service Laterals Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) Potable (Non-Irrigation)3/4" x 7.5"$210.97 $100.11 $311.08 $84.99 3/4" x 9"$224.62 $100.11 $324.73 $84.99 1"$272.24 $100.11 $372.35 $84.99 1.5"$442.49 $100.11 $542.60 $192.68 2"$634.05 $100.11 $734.16 $192.68 3"$1,975.94 $602.77 $2,578.71 $3,437.05 4"$3,431.89 $602.77 $4,034.66 $3,437.05 6"$5,927.80 $952.13 $6,879.93 $3,437.05 8"$7,406.35 $1,460.00 $8,866.35 $4,930.69 10"$10,651.71 $1,460.00 $12,111.71 $4,930.69 Potable/Recycled Irrigation 3/4" x 7.5"$210.97 $100.11 $311.08 $216.60 3/4" x 9"$224.62 $100.11 $324.73 $84.99 1"$272.24 $100.11 $372.35 $216.60 1.5"$442.49 $100.11 $542.60 $216.60 2"$634.05 $100.11 $734.16 $216.60 3"$1,367.55 $602.77 $1,970.32 $3,437.05 4"$2,662.41 $602.77 $3,265.18 $3,437.05 6"$4,793.20 $952.13 $5,745.33 $3,437.05 8"$6,385.40 $1,460.00 $7,845.40 $4,930.69 10"$9,061.00 $1,460.00 $10,521.00 $4,930.69 Section #Code #Fee Description Meter Size Charges 28 28.02 Installation Charges for Water Meter and Water Service Laterals (continued)Meter Size Combined Fire and Domestic 4"$8,164.77 $602.77 $8,767.54 $3,437.05 6"$10,866.59 $952.13 $11,818.72 $3,437.05 8"$15,799.24 $1,460.00 $17,259.24 $4,930.69 10"$21,560.74 $1,460.00 $23,020.74 $4,930.69 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1.Requirement of Deposit for Temporary Meters 3/4"$150.00 1"$180.00 1-1/2"$330.00 2"$2,046.00 3"$850.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal $128.00 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 2"$64.00 3" and larger No backflow test $64.00 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$25.00 1-1/2" & 2 "$50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B.Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d)Delinquency Tag $10.00 34 34.02 G.3.(a)Meter "Turn-On" Charge During regular business hours $35.00 Section #Code #Fee Description Meter Size Charges 34 34.02 G.3.(b)Meter "Turn-On" Charge After regular business hours $65.00 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.35 53 53.10 Residential Sewer System Fee (2)5/8" & 3/4"$14.38 1" & larger $14.38 53 53.10 A. Residential Sewer Without Consumption History (2)5/8" & 3/4"$42.35 1" & larger $42.35 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $27.97 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.35 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75"$25.83 1"$38.03 1.5"$68.53 2"$105.12 3"$190.52 4"$312.51 6"$617.48 8" $983.46 10"$1,410.42 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 (2) Sewer billed beginning January 1, 2014. Section #Code #Fee Description Meter Size Charges 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2)Rate multiplied Low Strength $2.35 by annual Medium Strength $3.37 avg. units High Strength $5.37 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75"$25.83 1"$38.03 1.5"$68.53 2"$105.12 3"$190.52 4"$312.51 6"$617.48 8" $983.4610"$1,410.42 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$170.00 - Broken Curbstop or Tabs 3/4" - 1"$192.00 - If Customer uses Jumper 3/4" - 1"$149.00 - Broken Lock/Locking Device 3/4" - 1"$56.00 - Cap Lock (Welded)3/4" - 1"$158.00 - Broken Curbstop or Tabs 1.5" - 2"$265.00 - To Pull and Reset Meter 3"$351.00 - To Pull and Reset Meter 4"$454.00 - To Pull and Reset Meter 6"$454.00 - To Pull and Reset Meter 8"$600.00 - To Pull and Reset Meter 10"$600.00 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00(2) Sewer billed beginning January 1, 2014. Section #Code #Fee Description Meter Size Charges Type II Fine $5,000.00(2) Sewer billed beginning January 1, 2014. 72 72.05 D. A. (continued)Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Per $1000 of assessed value for I.D. 27 Less than one acre I.D. 4, 14, & 18 Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25,& 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Per acre I.D. 4, 14, & 18 Section #Code #Fee Description Meter Size Charges Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $751.88 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries District-wide Annexation Fee 3/4" $1,622.59 1" $4,056.48 1-1/2" $8,112.95 2" $12,980.72 3" $25,961.44 4 $40,564.75 6" $81,129.50 8" $129,807.20 10" $186,597.85 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts $5,986.57 10 10.01 Filing of Petition $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Reconnection (service resumed)$50.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4"$16.19 $14.45 $30.64 1"$22.87 $26.79 $49.66 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2014. EXHIBIT 6 Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2"$39.58 $60.61 $100.19 2"$59.62 $103.08 $162.70 3"$113.08 $219.23 $332.31 4"$173.22 $351.09 $524.31 6"$340.29 $718.69 $1,058.98 8"$540.76 $1,160.59 $1,701.35 10"$774.64 $1,670.55 $2,445.19 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $1.86 toward the first five units of water when 6-10 $2.90 overall consumption is ten units or less.) 11-22 $3.77 23 or more $5.80 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $2.86 5-9 $3.71 10 or more $5.73 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10"0-185 $3.06 186-1,400 $3.14 1,401 or more $3.19 10" & larger 0-7,426 $3.06 7,427-14,616 $3.14 14,617 or more $3.19 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $4.17 55-199 $4.25 200 or more $4.32 1.5" & 2"0-144 $4.17 145-355 $4.25 356 or more $4.32 3" & larger 0-550 $4.17 551-1,200 $4.25 1,201 or more $4.32 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.5.(c)Recycled Water (1)3/4" - 1" 0-32 $3.56 (Landscape Irrigation and Certain 33-75 $3.61 Non-Irrigation Purposes Rates)76 or more $3.68 1.5" & 2"0-130 $3.56 131-325 $3.61 326 or more $3.68 3" & 4"0-440 $3.56 441-1,050 $3.61 1,051 or more $3.68 6" & larger 0-4,000 $3.56 4,001-10,000 $3.61 10,001 or more $3.68 25 25.03 E.6.(c)Recycled Commercial (1)under 10"0-173 $2.56 174-831 $2.64 832 or more $2.66 10" & larger 0-7,426 2.56 7,427-14,616 $2.64 14,617 or more $2.66 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (continued) (1)3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $21.14 more than 4"$28.49 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.31 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.048 25 25.04 A.Deposits for Non-Property Owners 3/4"$75.00 1"$150.00 1-1/2"$200.00 2"$360.00 3"$800.00 4"$1,350.00 6"$3,300.00 8"$4,400.00 10"$5,500.00 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge District-wide Capacity Fee - I.D.'s 1,2,3,5,7,9,10,20,22,22/27,25 3/4" $8,238.18 (excluding Triad) and only I.D. 22/27 1" $20,595.45 require reclaimed irrigation meters.1-1/2" $41,190.90 2" $65,905.44 3" $131,810.88 4 $205,954.50 6" $411,909.00 8" $659,054.40 10" $947,390.70 - 22/27 TRIAD 3/4" $6,165.18 1" $15,412.95 1 -1/2" $30,825.90 2" $49,321.44 3" $98,642.88 4 $154,129.50 6" $308,259.00 8" $493,214.40 10" $708,995.70 28 28.01 B.2.New Water Supply Fee - All IDs including Triad 3/4" $949.16 1" $2,372.90 1-1/2" $4,745.80 2" $7,593.28 3" $15,186.56 4" $23,729.00 6" $47,458.00 8" $75,932.80 10" $109,153.40 28 28.02 Installation Charges for Water Meter and Water Service Laterals Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$210.97 $100.11 $311.08 $84.99 3/4" x 9"$224.62 $100.11 $324.73 $84.99 1"$272.24 $100.11 $372.35 $84.99 1.5"$442.49 $100.11 $542.60 $192.68 2"$634.05 $100.11 $734.16 $192.68 3"$1,975.94 $602.77 $2,578.71 $3,437.05 4"$3,431.89 $602.77 $4,034.66 $3,437.05 6"$5,927.80 $952.13 $6,879.93 $3,437.05 8"$7,406.35 $1,460.00 $8,866.35 $4,930.69 10"$10,651.71 $1,460.00 $12,111.71 $4,930.69 Section #Code #Fee Description Meter Size Charges 28 28.02 Installation Charges for Water Meter and Water Service Laterals (continued)Meter Size - Potable/Recycled Irrigation 3/4" x 7.5"$210.97 $100.11 $311.08 $216.60 3/4" x 9"$224.62 $100.11 $324.73 $84.99 1"$272.24 $100.11 $372.35 $216.60 1.5"$442.49 $100.11 $542.60 $216.60 2"$634.05 $100.11 $734.16 $216.60 3"$1,367.55 $602.77 $1,970.32 $3,437.05 4"$2,662.41 $602.77 $3,265.18 $3,437.05 6"$4,793.20 $952.13 $5,745.33 $3,437.05 8"$6,385.40 $1,460.00 $7,845.40 $4,930.69 10"$9,061.00 $1,460.00 $10,521.00 $4,930.69 - Combined Fire and Domestic 4"$8,164.77 $602.77 $8,767.54 $3,437.05 6"$10,866.59 $952.13 $11,818.72 $3,437.05 8"$15,799.24 $1,460.00 $17,259.24 $4,930.69 10"$21,560.74 $1,460.00 $23,020.74 $4,930.69 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1.Requirement of Deposit for Temporary Meters 3/4"$150.00 1"$180.00 1-1/2"$330.00 2"$2,046.00 3"$850.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal $128.00 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 2"$64.00 3" and larger No backflow test $64.00 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$25.00 1-1/2" & 2 "$50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 Section #Code #Fee Description Meter Size Charges 34 34.02 B.Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d)Delinquency Tag $10.00 34 34.02 G.3.(a)Meter "Turn-On" Charge During regular business hours $35.00 34 34.02 G.3.(b)Meter "Turn-On" Charge After regular business hours $65.00 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.35 53 53.10 Residential Sewer System Fee (2)5/8" & 3/4"$14.38 1" & larger $14.38 53 53.10 A. Residential Sewer Without Consumption History (2)5/8" & 3/4"$42.35 1" & larger $42.35 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $27.97 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.35 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75"$25.83 1"$38.03 1.5"$68.53 2"$105.12 3"$190.52 4"$312.51 6"$617.48 8" $983.46 10"$1,410.42 (2) Sewer billed beginning January 1, 2014. Section #Code #Fee Description Meter Size Charges 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2)Rate multiplied by Low Strength $2.35 annual avg.Medium Strength $3.37 units High Strength $5.37 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75"$25.83 1"$38.03 1.5"$68.53 2"$105.12 3"$190.52 4"$312.51 6"$617.48 8" $983.4610"$1,410.42 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$170.00 - Broken Curbstop or Tabs 3/4" - 1"$192.00 - If Customer uses Jumper 3/4" - 1"$149.00 - Broken Lock/Locking Device 3/4" - 1"$56.00 - Cap Lock (Welded)3/4" - 1"$158.00 - Broken Curbstop or Tabs 1.5" - 2"$265.00 - To Pull and Reset Meter 3"$351.00 - To Pull and Reset Meter 4"$454.00 - To Pull and Reset Meter 6"$454.00 - To Pull and Reset Meter 8"$600.00 - To Pull and Reset Meter 10"$600.00 (2) Sewer billed beginning January 1, 2014. Section #Code #Fee Description Meter Size Charges 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 Per acre for outside I.D. & greater than one mile from District facilities. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25, & 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Will not exceed per each day the violation is identified or continues. Section #Code #Fee Description Meter Size Charges State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes Less than one acre I.D. 4, 14, & 18 Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 11, 2014 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: DIV. NO. All APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 542 Amending Section 2.01, Authority of the General Manager of the District’s Code of Ordinances GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt Ordinance No. 542 amending Section 2.01, Authority of the General Manager of the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To delegate to the General Manager authority to approve certain agreements and amendments to agreements for the lease of District Real Property and/or space on District facilities to cellular companies and related entities for telecommunications purposes. ANALYSIS: The District currently maintains thirty three (33) lease agreements with cellular communication companies that allow the cellular communication companies to operate and maintain unmanned wireless communication facilities that include panel antennas, equipment cabinets, and enclosures. The sites leased to these companies are typically located at the District’s water reservoir sites which are located at higher elevations and are advantageous for the purposes of 2 transmitting cellular signals. Through lease agreements which are approved by the Board, the District is compensated by the cellular communication companies for the use of the lease areas. This funding is used to offset the cost of providing services to the District’s customers. In Fiscal Year 2014 the cellular lease agreements are anticipated to generate approximately $1.1 Million in revenue. As technology changes, and the cellular communication companies seek to improve the services they deliver through the development of new sites or upgrades to their current infrastructure located on existing leased sites, the cellular communication companies approach the District with requests to implement their changes. These changes may involve additional lease space area or opportunities for the District to leverage the cellular company’s facilities. In many cases, upgrades to existing sites trigger amendments to the current lease agreements held between the District and the cellular communication company. Additionally, new lease agreements that contain the District’s most current lease provisions as approved by the Board are executed by the District and the cellular communication companies for new sites. Historically, these amendments and agreements have been brought before the Board for approval. As part of the discussion regarding a lease amendment for a communications facility which was presented at the October 2, 2013 Board meeting, the Board requested that staff explore a greater delegation of authority for the General Manager to approve lease agreements or amendments that involve changes deemed to be administrative in nature such as: • Minor changes to the lease area and corresponding lease rate • Implementation of new cellular equipment in the lease area • Revisions to existing leases to incorporate the District’s most current lease provisions as approved by the Board • Implementation of new lease sites using the most current Board approved lease provisions. As a result of this direction by the Board, staff is proposing changes to Section 2.01, Authority of the General Manager of the District’s Code of Ordinances, which would delegate to the General Manager authority to approve certain agreements and amendments to agreements for the lease of District Real Property and/or space on District facilities to cellular companies and related entities for telecommunications purposes as shown in Attachment C. FISCAL IMPACT: Joseph Beachem, Chief Financial Officer None. 3 LEGAL IMPACT: The proposed amendments to Section 2.01, Authority of the General Manager of the District’s Code of Ordinances, have been reviewed by District General Counsel. STRATEGIC GOAL: To improve business functionality by constantly improving the efficiency and effectiveness of important business processes. DJM/RP:jf P:\Public-s\STAFF REPORTS\2014\BD 3-11-2014\BD 3-11-2014 Staff Report, Proposed Delegation of Authority _Cell Leases.doc Attachments: Attachment A – Committee Action Attachment B – Ordinance No. 542 Exhibit I – Strike-through Section 2.01 Attachment C – Proposed Section 2.01 ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 542 Amending Section 2.01, Authority of the General Manager of the District’s Code of Ordinances COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on February 19, 2014 and the following comments were made: • Staff is requesting that the Board adopt Ordinance No. 542 amending Section 2.01, Authority of the General Manager, of the District’s Code of Ordinances. • Staff is proposing that the board delegate to the General Manger, as suggested by the Finance Administration and Communications Committee, authority to approve certain agreements and amendments to agreements for the lease of District Real Property and/or space on District facilities to cellular companies and related entities for telecommunications purposes. • It was indicated that the District currently maintains thirty three (33) lease agreements with cellular communication companies that allow the companies to operate and maintain unmanned wireless communication facilities. The sites leased to these companies are typically located at the District’s water reservoir sites which are located at higher elevations and are advantageous for the purposes of transmitting cellular signals. • The District is compensated through lease agreements which are approved by the Board. The funding generated through the leases is used to offset the cost of providing services to the District’s customers. This fiscal year, the cellular lease agreements are anticipated to generate approximately $1.1 million in revenue. • As technology changes, cellular communication companies seek to improve the services they deliver through the development of new sites or upgrades to their current infrastructure. The new sites and upgrades often involve either new agreements or amendments to existing agreements which contain the most recent lease provisions as approved by the Board. Currently, these types of agreements and amendments are brought before the Board for approval. • At the October 2, 2013 Board meeting, the Board requested that staff explore a greater delegation of authority for the General Manger to approve lease agreements or amendments that involve changes deemed to be administrative in nature. Please reference page 2 of staffs’ report for a list of changes that are regarded as administrative in nature. • Staff is proposing that a new paragraph “J” be added to Section 2.01, Authority of the General Manger, of the District’s Code of Ordinance as shown on page 4 of Attachment B to staffs’ report. These changes are specific to agreements and amendments for cellular leases. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. ATTACHMENT B ORDINANCE NO. 542 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 2.01 AUTHORITY OF THE GENERAL MANAGER OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances, Section 2.01, Authority of the General Manager be revised as per Attachment C. NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 2.01 of the Code of Ordinances shall become effective March 11, 2014. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 11th day of March, 2014, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary EXHIBIT I CHAPTER 2 ADMINISTRATION OF THE DISTRICT SECTION 2 MANAGEMENT OF THE DISTRICT 2.01 AUTHORITY OF THE GENERAL MANAGER Pursuant to Sections 71362 and 71363 of the California Water Code, and other applicable laws of the State of California, the General Manager shall, subject to the approval and direction of the Board of Directors, operate and manage the affairs of the District. The General Manager shall have the following specifically enumerated powers and authority: A. To control the administration, maintenance, operation and construction of the water and sewer systems and facilities of the District in an efficient manner. B. To employ and discharge all employees and assistants, other than those referred to in Section 71340 of the California Water Code, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants. C. To promulgate policies and procedures necessary to enhance the security of the District and increase the transparency of District operations, including provisions for the disclosure of conflicts of interest by employees. D. To establish the terms and conditions for collection of receivables, thereby facilitating the efficient administration of the District’s receivables. The General Manager or designee is given this authority as well as the authority to waive, adjust, or reduce any receivable for amounts up to $10,000. E. To execute agreements, contracts, other documents, or commitments on behalf of the District where the amount involved does not exceed $50,000, provided that Public Works Contracts shall be awarded in compliance with applicable laws. F. To approve change orders to agreements, contracts, or other commitments on behalf of the District. If the underlying contract is awarded by the General Manager pursuant to paragraph 2.01-E above, the cumulative value of the approved change orders and the underlying agreement, contract, or commitment shall not exceed the General Manager’s signatory authority established above. If the underlying contract is awarded by the Board, the General Manager may approve change orders thereto in an aggregate amount not exceeding the General Manager’s signatory authority established above. G. To approve plans, specifications, maps and agreements, and any other documents involving land development projects within the District. H. To authorize the use of District Real Property by third parties if all the following conditions are met: (a) the consideration is less than the General Manager’s authority; and (b) the proposed use consists of an easement, license, access permit or other use of a portion of the District Real Property that will not interfere with the existing or anticipated uses of the District Real Property for District purposes; and (c) either (i) the term of the proposed use is 10 years or less, or (ii) the entity proposing to use the District Real Property is a regulated utility, governmental entity or not-for profit organization. All uses of District Real Property not contemplated herein or specifically authorized in other sections of this Code of Ordinance shall be presented to the Board of Directors for consideration. 1. The General Manager may establish terms and conditions for the use of and access to District Real Property contemplated herein, including administrative charges. 2. The use of any District Real Property shall require consideration satisfactory to the General Manager, which may be monetary compensation in an amount equal to the fair market value of the proposed use plus an administrative charge or may be in the form of a real property interest or other equivalent compensation or use. 3. “District real property” means and includes real property and interests thereon, such as fee interests, easements, licenses and other such interests acquired for various District purposes including but not limited to the construction, operation, access or maintenance of pipelines or other facilities necessary or convenient to the full exercise of the District’s powers. I. To declare an emergency and, in such event, to have the additional powers specified in the District’s emergency management plan, referred to as the National Incident Management System (NIMS), and below, pursuant to California Contract Code Section 22050. An emergency is a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate the loss or impairment of life, health, property, or essential public services. 1. In a declared emergency, the General Manager may direct employees, take action to continue or restore service capability, and execute any contracts for necessary equipment, services, or supplies directly related and required by the emergency. Notwithstanding the limits imposed in the prior paragraphs of this Section 2.01, or by any other policy or guideline of the District, in an emergency, the General Manager may award and execute contracts for goods, services, work, facility or improvement, without bidding and without regard to said limits, provided that the goods, services, work, facilities or improvements acquired or contracted for are of an urgent nature, directly and immediately required by the emergency. Any contract for goods or services with a value of more than $250,000 shall be subject to ratification by the Board at its first regularly scheduled meeting following the declaration of the emergency to which the contract relates. Any contract for work, facilities or improvements with a value of more than $500,000 shall be subject to ratification by the Board at its first regularly scheduled meeting following the declaration of the emergency to which the contract relates. 2. The General Manager shall report to the Board not later than 48 hours after the emergency action or at the next regularly scheduled meeting, whichever is earlier. The report shall include the details of the emergency and reasons justifying the actions taken, and provide an accounting of the funds expended or yet to be expended in connection with the emergency. 3. If the emergency action continues for seven days and a regularly scheduled meeting will not occur within 14 days from the day the emergency action was taken, the General Manager shall request that the Board review the emergency action and determine by formal action if the need to take emergency action continues. 4. At each regularly scheduled meeting following the declaration of an emergency the Board may, by formal action and pursuant to a vote as required by Section 22050 of the Public Contract Code, determine if there is a need to continue the emergency action. If the Board does not determine that the emergency continues, the power to operate under emergency conditions will terminate and any new work, goods or services not yet procured shall be contracted or acquired in accordance with applicable provisions of this Code. J. In addition to the authority for the use of District Real Property enumerated in subsection H above, to approve the following types of agreements and amendments to agreements for the lease of District Real Property and/or space on District facilities to cellular companies and related entities for telecommunications purposes, provided such agreements and amendments are substantially in compliance with the District’s standard contract terms and provisions and have been reviewed and approved by General Counsel: 1. A reduction of the lease rate of not more than 25%. 2. Any increase in the lease rate. 3. Allowance of new equipment on the leased space, provided proper land use permits are acquired by the lessee from the appropriate entities. 4. Administrative changes to the lease, including amending leases to the District’s most current form as approved by the Board. 5. Entering into a lease that contains the District’s most current form as approved by the Board with a new entity on a new site or a site that has been vacated. 2.02 ORDER OF SUCCESSION When the General Manager is going to be absent from the District, the General Manager is authorized to designate an Asst. General Manager to act on his behalf and said person shall have the same authority as the General Manager. Any long-term vacancies (over 30 days) shall be filled by vote of the majority of the Board. ATTACHMENT C CHAPTER 2 ADMINISTRATION OF THE DISTRICT SECTION 2 MANAGEMENT OF THE DISTRICT 2.01 AUTHORITY OF THE GENERAL MANAGER Pursuant to Sections 71362 and 71363 of the California Water Code, and other applicable laws of the State of California, the General Manager shall, subject to the approval and direction of the Board of Directors, operate and manage the affairs of the District. The General Manager shall have the following specifically enumerated powers and authority: A. To control the administration, maintenance, operation and construction of the water and sewer systems and facilities of the District in an efficient manner. B. To employ and discharge all employees and assistants, other than those referred to in Section 71340 of the California Water Code, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants. C. To promulgate policies and procedures necessary to enhance the security of the District and increase the transparency of District operations, including provisions for the disclosure of conflicts of interest by employees. D. To establish the terms and conditions for collection of receivables, thereby facilitating the efficient administration of the District’s receivables. The General Manager or designee is given this authority as well as the authority to waive, adjust, or reduce any receivable for amounts up to $10,000. E. To execute agreements, contracts, other documents, or commitments on behalf of the District where the amount involved does not exceed $50,000, provided that Public Works Contracts shall be awarded in compliance with applicable laws. F. To approve change orders to agreements, contracts, or other commitments on behalf of the District. If the underlying contract is awarded by the General Manager pursuant to paragraph 2.01-E above, the cumulative value of the approved change orders and the underlying agreement, contract, or commitment shall not exceed the General Manager’s signatory authority established above. If the underlying contract is awarded by the Board, the General Manager may approve change orders thereto in an aggregate amount not exceeding the General Manager’s signatory authority established above. G. To approve plans, specifications, maps and agreements, and any other documents involving land development projects within the District. H. To authorize the use of District Real Property by third parties if all the following conditions are met: (a) the consideration is less than the General Manager’s authority; and (b) the proposed use consists of an easement, license, access permit or other use of a portion of the District Real Property that will not interfere with the existing or anticipated uses of the District Real Property for District purposes; and (c) either (i) the term of the proposed use is 10 years or less, or (ii) the entity proposing to use the District Real Property is a regulated utility, governmental entity or not-for profit organization. All uses of District Real Property not contemplated herein or specifically authorized in other sections of this Code of Ordinance shall be presented to the Board of Directors for consideration. 1. The General Manager may establish terms and conditions for the use of and access to District Real Property contemplated herein, including administrative charges. 2. The use of any District Real Property shall require consideration satisfactory to the General Manager, which may be monetary compensation in an amount equal to the fair market value of the proposed use plus an administrative charge or may be in the form of a real property interest or other equivalent compensation or use. 3. “District real property” means and includes real property and interests thereon, such as fee interests, easements, licenses and other such interests acquired for various District purposes including but not limited to the construction, operation, access or maintenance of pipelines or other facilities necessary or convenient to the full exercise of the District’s powers. I. To declare an emergency and, in such event, to have the additional powers specified in the District’s emergency management plan, referred to as the National Incident Management System (NIMS), and below, pursuant to California Contract Code Section 22050. An emergency is a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate the loss or impairment of life, health, property, or essential public services. 1. In a declared emergency, the General Manager may direct employees, take action to continue or restore service capability, and execute any contracts for necessary equipment, services, or supplies directly related and required by the emergency. Notwithstanding the limits imposed in the prior paragraphs of this Section 2.01, or by any other policy or guideline of the District, in an emergency, the General Manager may award and execute contracts for goods, services, work, facility or improvement, without bidding and without regard to said limits, provided that the goods, services, work, facilities or improvements acquired or contracted for are of an urgent nature, directly and immediately required by the emergency. Any contract for goods or services with a value of more than $250,000 shall be subject to ratification by the Board at its first regularly scheduled meeting following the declaration of the emergency to which the contract relates. Any contract for work, facilities or improvements with a value of more than $500,000 shall be subject to ratification by the Board at its first regularly scheduled meeting following the declaration of the emergency to which the contract relates. 2. The General Manager shall report to the Board not later than 48 hours after the emergency action or at the next regularly scheduled meeting, whichever is earlier. The report shall include the details of the emergency and reasons justifying the actions taken, and provide an accounting of the funds expended or yet to be expended in connection with the emergency. 3. If the emergency action continues for seven days and a regularly scheduled meeting will not occur within 14 days from the day the emergency action was taken, the General Manager shall request that the Board review the emergency action and determine by formal action if the need to take emergency action continues. 4. At each regularly scheduled meeting following the declaration of an emergency the Board may, by formal action and pursuant to a vote as required by Section 22050 of the Public Contract Code, determine if there is a need to continue the emergency action. If the Board does not determine that the emergency continues, the power to operate under emergency conditions will terminate and any new work, goods or services not yet procured shall be contracted or acquired in accordance with applicable provisions of this Code. J. In addition to the authority for the use of District Real Property enumerated in subsection H above, to approve the following types of agreements or amendments to agreements for the lease of District Real Property and/or space on District facilities to cellular companies and related entities for telecommunications purposes, provided such agreements or amendments are substantially in compliance with the District’s standard contract terms and provisions and have been reviewed and approved by General Counsel: 1. A reduction of the lease rate of not more than 25%. 2. Any increase in the lease rate. 3. Allowance of new equipment on the leased space, provided proper land use permits are acquired by the lessee from the appropriate entities. 4. Administrative changes to the lease, including amending leases to the District’s most current form as approved by the Board. 5. Entering into a lease that contains the District’s most current form as approved by the Board with a new entity on a new site or a site that has been vacated. 2.02 ORDER OF SUCCESSION When the General Manager is going to be absent from the District, the General Manager is authorized to designate an Asst. General Manager to act on his behalf and said person shall have the same authority as the General Manager. Any long-term vacancies (over 30 days) shall be filled by vote of the majority of the Board. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 11, 2014 SUBMITTED BY: Alicia Mendez-Schomer, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Declare a Water Shortage Response Level 1 – Supply Watch Condition GENERAL MANAGER’S RECOMMENDATION: That the Board declare a Water Shortage Response Level 1 – Supply Watch Condition which calls for voluntary conservation measures and to instruct staff to educate customers of these recommendations via bill inserts, the District’s website and any other applicable means. COMMITTEE ACTION: See Attachment A. PURPOSE: To align the District with the San Diego County Water Authority’s (CWA) recommendation to adopt voluntary conservation measures. ANALYSIS: California is experiencing an unprecedented drought due to two years of lower than anticipated rainfall which is continuing into the third year. The Department of Water Resources’ survey in late January showed snowpack water content levels at 12 percent of normal for this time of year. In response, Governor Brown declared a statewide drought emergency on January 17th. This action opened the door to provide federal aid for communities in Northern and Central California that are facing immediate shortages. The San Diego region is not as impacted by the drought as much as other parts of the state since San Diegans have already invested heavily in conservation, infrastructure improvements, and water supply diversification. As an example, per capita water use has declined from more than 200 gallons per person per day to approximately 150 gallons over the past decade. Total potable water use in our region was also less in 2013 than it was in 1990, despite an increase in population of around 30 percent. Additionally, CWA has invested $2 billion over the past decade in new large-scale water infrastructure projects that are contributing to a more reliable water supply. In a special meeting on February 13, 2014, the San Diego County Water Authority notified all member agencies that the region is at a Level 1 Drought Watch of the Model Drought Response Ordinance. In response to this call for action, staff is recommending the District declare a Water Shortage Response, Level 1 - Supply Watch Condition. The Level 1 water shortage response condition practices are voluntary and will be reinforced through local and regional public education and awareness measures. Periodic drought is a fact of life in Southern California. San Diegans have risen to the challenge before and the District is confident that our customers will continue to do their part to conserve and remain mindful of wasting water. The District encourages everyone to take advantage of money saving tips and rebates found on the District’s website. FISCAL IMPACT: Joe Beachem, Chief Financial Officer No increases to programmatic costs will occur. There is the potential for reductions in revenues if measurable conservation occurs. However, unlike the last drought, this one is not occurring coincident with an economic crisis, the call for conservation is not extreme, and there are not significant pricing changes to promote high levels of conservation. STRATEGIC GOAL: Actively manage water supply and demand. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action ATTACHMENT A SUBJECT/PROJECT: Declare a Water Shortage Response Level 1 – Supply Watch Condition COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on February 19, 2014 and the following comments were made: • Staff is recommending that the board declare a Water Shortage Response Level 1, Supply Watch Condition, which calls for voluntary conservation measures and direct staff to continue to educate customers about the benefits of water conservation through bill messaging and inserts, the customer newsletter, etc. • Governor Brown declared a state-wide drought emergency in January 2014 in response to the low snow pack levels in Northern California. It was indicated that Northern California is much more impacted by the drought than Southern California because of the large investments that our region has made in infrastructure to enhance supplies and storage. Though San Diego is in a less dire position, to align the region with the State, staff is asking that the board move forward with a Level I drought declaration. • This action would align the District with the San Diego County Water Authority (CWA) who has declared voluntary conservation measures and is recommending that agencies throughout the region also adopt such measures. • General Manager Watton provided a presentation on the Water Supply Conditions for the State of California which included a review of the historical levels of water runoff to the State’s lakes and rivers. He indicated, as of February 2014, the level of water runoff is only 15% of the average and the rain season is coming to a close soon. He noted with the recent snow fall and rain in the Northern Sierras, California is just getting past the driest years of 1977 and 1978. Water use has decreased greatly from Calendar Year 2007 to Calendar Year 2013 due to conservation, the economy, and water rates. Additionally, local supplies have increased during the same period and is expected to continue to increase as more of the region’s local supplies come online. The region is in pretty good shape, but it still needs to be cautious should the drought continue for more than several years. It is felt, however, at this time that mandatory cutbacks is not necessary. • Staff stated that should the board declare a Level I Drought Alert/Water Supply Condition, the District would start sending Level I drought alert messages to the District’s customers. The agencies Countywide (as a group) would likely hold a press conference to advise the public of the Level I Drought Alert declaration and the message will focus more on outdoor water savings as many customers have already purchased water efficient appliances and have implemented water saving devices throughout the home. It was indicated that a larger percentage of water use is outdoors so savings outside the home will provide more of an impact to water conservation. • The committee inquired if the District had historical data of the impact a Level I alert, Level II alert, etc. has on water usage and the District’s budget. Staff indicated that it is difficult to say with certainty as the last drought came in conjunction with a major economic downturn. The committee further inquired the impact to the District’s budget if customers cut back water use. Staff indicated that the Metropolitan Water District has preliminarily projected that their rate increase will be 1.5% as opposed to the 5% they had previously projected. This much lower rate increase will help keep the District’s rate changes in line with budget projections, even with less water being sold. • The committee requested that staff provide the impact to the District’s budget if there were a reduction in water usage. Subsequent to the committee meeting staff calculated that the net revenue decline for a 1% drop in water sales would be approximately $166,700. This decrease in sales would impact the projected rate increases by a net of approximately 2/10ths of a percent. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as an action item. 1 RESOLUTION NO. 4229 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT CONSENTING TO AND APPROVING THE REAPPOINTMENT OF Mark Wat-ton AS A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (SECOND SEAT) WHEREAS, Section 6(d) of the County Water Authority Act (Chapter 545 of the Statutes of 1943, Chapter 45 Water Code) pro- vides that, in addition to its one representative, each member agency may, at its option, designate and appoint one additional representative under certain conditions; and WHEREAS, the Board of Directors (District Board) of the Otay Water District (District) has previously consented to and ap- proved the designation and appointment of Mark Watton to serve as the District’s second representative on the San Diego County Wa- ter Authority Board of Directors (“CWA Board”); and WHEREAS, Mr. Watton’s term as a designated and appointed representative of the District to the CWA Board expired on Janu- ary 23, 2014; and WHEREAS, the District proposes, and this Board desires to consent to and approve, the designation and appointment of Mark Watton to a third six-year term as the District’s second repre- sentative to the CWA Board ending January 23, 2020. NOW, THEREFORE, it is hereby resolved, ordered and deter- mined by the Board of Directors of the Otay Water District as follows: 2 SECTION 1. This Board of Directors hereby consents to and ap- proves the designation and appointment of Mark Watton as the Dis- trict’s second representative on the Board of Directors of the San Diego County Water Authority for the term ending on January 23, 2020. SECTION 2. The President of the District’s Board, the General Manager of the District, the District’s Secretary and their de- signees are hereby authorized to take any action required to be taken on behalf of the District to carry out the purpose of this Resolution. SECTION 3. This Resolution shall be effective as of the date it is adopted. PASSED, APPROVED AND ADOPTED by the Otay Water District Board of Directors at a regular meeting held this 14th day of January, 2008. AYES: NOES: ABSENT: ABSTAIN: ___________________________ President ATTEST: ________________________ District Secretary 1 RESOLUTION NO. 4230 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT CONSENTING TO AND APPROVING THE REAPPOINTMENT OF GARY CROUCHER AS A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (FIRST SEAT) WHEREAS, Section 6(b) of the County Water Authority Act (Chapter 545 of the Statutes of 1943, Chapter 45 Water Code) pro- vides that the CWA Board (defined below) shall consist of at least one representative from each public agency located within CWA’s area; and WHEREAS, the Board of Directors (District Board) of the Otay Water District (District) has previously consented to and ap- proved the designation and appointment of Gary Croucher to serve as the District’s representative on the San Diego County Water Authority (“CWA”) Board of Directors (“CWA Board”); and WHEREAS, Mr. Croucher’s term as a designated and appointed representative of the District to the CWA Board expires on March 3, 2014; and WHEREAS, the District proposes, and this Board desires to consent to and approve, the designation and appointment of Gary Croucher to a third six-year term as the District’s first repre- sentative to the CWA Board ending on March 3, 2020. NOW, THEREFORE, it is hereby resolved, ordered and deter- mined by the Board of Directors of the Otay Water District as follows: 2 SECTION 1. This Board of Directors hereby consents to and ap- proves the designation and appointment of Gary Croucher as the District’s first representative on the Board of Directors of the San Diego County Water Authority for the term commencing on March 3, 2014. SECTION 2. The President of the District’s Board, the General Manager of the District, the District’s Secretary and their de- signees are hereby authorized to take any action required to be taken on behalf of the District to carry out the purpose of this Resolution. SECTION 3. This Resolution shall be effective as of the date it is adopted. PASSED, APPROVED AND ADOPTED by the Otay Water District Board of Directors at a regular meeting held this 11th day of March, 2014. AYES: NOES: ABSENT: ABSTAIN: ___________________________ President ATTEST: ________________________ District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 11, 2014 SUBMITTED BY: Geoff Stevens, Chief Information Officer PROJECT: Various DIV. NO. ALL APPROVED BY: German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: STATUS UPDATE ON 2015 – 2017 DISTRICT STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: This is an informational item. No Board action is required. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To brief the Board on the progress in the development of the 2015 to 2017 District Strategic Plan. Background Each year, the District updates the Strategic Plan and it is reviewed every three years to take an in-depth look at what will be required to meet coming challenges. This year requires the in-depth analysis as the Strategic Plan is at the end of the 2012-2014 plan and actively drafting the 2015 to 2017 plan. 2 Activities to Date: The Senior Team began discussing the plan in October 2013. The following activities have taken place over the last four months: • Review of other Districts’ Strategic Plan; • Review of industry trends; • Review of Strategic Planning methodology; • Engagement of consulting assistance to validate process; • Development of a Strategy Map for the District; • Senior Team discussion of Mission, Vision and Values; • Reaffirmation of Balanced Scorecard as methodology of choice; • Development of Primary Goals for Balanced Scorecard; • Development of a more targeted key challenge; • Engagement meetings with all departments including the General Manager and Assistant General Manager; • Development of individual department objectives and measures (ongoing); • Employee communications meeting both at the section and the group level. Current Status The Senior Team is pleased with the Strategic Plan progress to date. This is a critical review point in the process where the General Manager has asked staff to present and seek the Board’s affirmation of the District’s stated Mission, Vision, and Values. Staff would like to present the key challenge, which is more targeted, than in the last plan, to highlight efficiency, effectiveness, and measurement. Finally, staff has drafted the high level strategies and goals that are in alignment with the balanced scorecard. 3 MISSION To provide quality water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner. VISION A District that is innovative in providing water services at competitive rates, with a reputation for outstanding customer service. 4 STATEMENT OF VALUES As Otay Water District employees, we dedicate ourselves to: CUSTOMERS: We take pride that our commitment to customer- centered service is our highest priority. EXCELLENCE: We strive to provide the highest quality and value in all that we do. INTEGRITY: We commit ourselves to doing the right thing. Ethical behavior, trustworthiness and accountability are the District’s foundation. TEAMWORK: We promote mutual trust by sharing information, knowledge and ideas to reach our common goals. EMPLOYEES: We see each individual as unique and important. We value diversity and open communication to promote fairness, dignity and respect. 5 PROPOSED KEY CHALLENGE OUR KEY CHALLENGE, AS DISTRICT STAFF IS TO QUANTIFY AND DEMONSTRATE OUR COMMITMENT AND ABILITY TO OPTIMIZE OUR RESOURCES, BUSINESS PROCESSESES, AND TECHNOLOGY TO ACHIEVE THE STRATEGIC PLAN GOALS. WE, AS A TEAM ARE COMMITTED TO REGULARLY ASSESS AND DOCUMENT HOW OUR DECISIONS AND WORK PRACTICES ARE ACCOMPLISHING OUR GOALS AND OBJECTIVES. 6 Balanced Scorecard Strategies and Goals Customer: Deliver high quality services that meet regulatory standards and delivers best business processes which increase confidence of the customer in the value the District provides. A. Goal: “Maintain high customer satisfaction by expanding and improving communications and providing water services.” Financial: Provide enhanced value by directing and managing the financial issues that are critical to the District. A. Goal: “Improve financial information and systems.” B. Goal: “Maintain District financial strength.” Business Processes: Improve business functionality by constantly reviewing and maximize efficiency and effectiveness of all business processes. A. Goal: “Actively manage water supply as well as demand and sewer services.” B. Goal: “Identify and evaluate improvements to enterprise and departmental business processes.” Learning and Growth: Provide the leadership, tools, and management commitment to improve all business practices. A. Goal: “Results-oriented workforce.” B. Goal: “Flexible, lean and highly-skilled workforce.” 7 Next Steps Individual meetings with the Management Team of each department are underway. The General Manager and Assistant General Manager are very involved in this process. Each team is meeting a minimum of four times to develop customized objectives and measures that are in alignment with the proposed key challenge and mission. The entire Management Team is very active in making suggestions that are in alignment with our strategy. Below are some examples of the ideas that are being considered for inclusion: Examples from Finance, Administration and IT • INVESTIGATION OF WEB BASED OR PORTAL BASED PURCHASING METHODOLOGIES • FURTHER LEVERAGE CLOUD BASED ARCHITECTURES FOR SECURITY, AND DISASTER RECOVERY • CHANGING PROCESS FOR DEVELOPERS TO INSTALL METERS • ANALYSIS OF REVENUES AND IMPACTS OF THE SEWER SYSTEM REALIGNMENT OR CONSOLIDATION • SECURITY SYSTEM UPGRADES AND CONSOLIDATION • STREAMLINING COMMUNICATIONS TO CUSTOMERS – WEB BASED, SOCIAL MEDIA, MOBILE • EVALUATE CITIZEN SERVICES THROUGH EDEN – ONLINE SUBMITTALS • CALL CENTER INTEGRATION AMONG DEPARTMENTS • EXPLORING ADDITIONAL USES OF THE AUTOMATED DIALER FOR CUSTOMER CONTACT • EXPANDING EMAIL OR RELATED COMMUNICATIONS SERVICES • REDUCING HEADCOUNT BY REVIEW OF ATTRITION RELATED VACANCIES • MODIFICATION OF RESERVE ACCOUNTING • EXPLORATION OF NEW BILLING SYSTEMS • HAVE DEVELOPERS DO NEW METER SETS • ENSURE FULL COST RECOVERY OF SERVICES PROVIDED 8 Examples from Engineering and Operations • DEVELOPMENT OF PLAN VERSUS ACTUAL TIME ALLOCATION PER TASK • MEASUREMENT OF UNIT COSTING FOR ROUTINE PROCESSES • LEVERAGE SCADA AND WORK ORDER SYSTEM – PROCESS IMPROVEMENTS • SUPPORT OF THE DESALINATION PROJECT • NEGOTIATIONS WITH PARTNER CITIES FOR BETTER AGREEMENTS • ADDITIONAL USE OF ASSET MANAGEMENT • RECAPTURE COSTS WHEN SURVEY IS REQUIRED TO CHANGE EASEMENTS • RECOVER COST OF DIG ALERTS FROM ROUTINE TRAFFIC ACCIDENTS • EVALUATION OF COST BENEFIT OF LEAK REDUCTION HARDWARE • ANALYSIS OF SEWER BUSINESS • NORTH – SOUTH INTERCONNECT • STREAMLINE RFP PROCESS (COMBINE PLAN, DESIGN, BUILD BIDS) • EVALUATE BIM (BUILDING INFORMATION MANAGEMENT) FOR PIPELINES • EVALUATE COST RECOVERY FOR CERTAIN TYPES OF MARK OUT • EVALUATE COST RECOVERY FOR ENCROACHMENT PERMITS The above, along with many other ideas, are on the table and being evaluated. The emphasis, where possible, will be to develop specific objectives and performance measures that can provide a quantifiable proof of improvement. Measurements always require a subtle approach, and it will take time to finalize and test the proposed new measures. The intent of the plan, however, is clear in that staff desires to find ways to achieve and demonstrate how this District is being run efficiently and effectively for our customers and in alignment with the General Manager’s and the Board’s direction. STRATEGIC GOAL: These items are in support of the updating the District’s Strategic Plan. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action ATTACHMENT A SUBJECT/PROJECT: STATUS UPDATE ON 2015 – 2017 DISTRICT STRATEGIC PLAN COMMITTEE ACTION: The Finance, Administration and Communications and the Engineering, Operations and Water Resources Committees reviewed this item at a meeting held on February 19, 2014. The following comments were made: • It was indicated that the District is considering adding an additional year to the Strategic Plan which would make it a 2015-2018 Strategic Plan, depending on the scope of the plan. • A PowerPoint presentation was provided that included information on the following: o Activities to Date o Otay Strategy Map o Mission and Vision o Statement of Values o Key Challenge o Finance, Administration and IT – Potential Improvements o Engineering and Operations – Potential Improvements o Discussion and Next Steps • It was indicated that meetings were held with the Senior and Management Teams to discuss goals such as the active management of water supplies, demand and sewer services. Staff also focused on identifying and evaluating continual improvements to the enterprise and departmental business processes. • Meetings were also held with individual departments to engage them in developing the strategies and goals for their areas. • Staff presented the District’s Strategy Map and stated that the map was a useful tool that assisted staff in opening discussions on goals and objectives that enhanced internal efficiency, process improvements, increased staffs’ understanding of unit costs, and in focusing on ways to combine and streamline operations. • It was indicated that staff is delving into the individual work processes and trying to further enhance those processes to realize savings. The District has found the “large” process improvements and those have been implemented and is now looking at “small increment” improvements. For instance the District has already streamlined to reduce the number of Fulltime Equivalent (FTE) employees and is now looking for savings in 2 hours, half hour, etc. increments, which then roll up to a FTE savings. • Staff discussed the key challenge and indicated that it is more targeted than in the last plan to highlight efficiency, effectiveness, and the measurement of achievement. • Staff discussed Engineering, Operations, and Water Resources; and Finance, Administration and Information Technology; potential improvements which are listed on page 8 and 7 respectively in the staff report. • It was noted that the it is important for the District to strengthen the role of the management team in developing and leading changes, as well as continuing to engage entire staff to further refine objectives and measures over the life of the plan (3-4 years). It is also important for the Strategic Plan to be flexible to allow changes when it is necessary. • The Committee commented on how well the District has stayed focused on the Strategic Plan and noted that staffs’ dedication to execute the plan has helped it evolve positively. The Committee indicated that they would like to see all employees provide input, along with the Senior and Management Teams, into the development of the District’s Strategic Plan as they (employees) are the individuals who execute the daily operations of the District. • The Committee recommended to add an additional year to the 2015-2017 District Strategic Plan since it is a living document. If approved by the full board, the plan will be updated to reflect the District’s 2015-2018 Strategic Plan. • It was indicated that following district-wide meetings with staff to discuss/develop the Strategic Plan, the proposed draft plan will be presented to the Board prior to the approval of the FY 2015 budget. Following the discussion, the committees recommended presentation to the full board as an action item. 3/6/2014 1 Strategic Plan Progress Report FY15 – FY17 Board Committees - February 2014 Activities To Date •Review of other district strategic plans •Review of industry trends •Review of strategic planning methodology •Engagement of consulting assistance to assist in validation of process. •Development of a strategy map for the district •Senior team discussion of mission, vision and values •Reaffirmation of balanced scorecard as methodology of choice •Development of primary goals for balanced scorecard. •Identification of new key challenge •Engagement meetings with all departments with the General Manager and AGM •Development of individual department objectives and measures (ongoing) •Employee communications meeting both at the section and the group level. 3/6/2014 2 Otay Strategy Map Mission and Vision MISSION To provide quality water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner. VISION A District that is innovative in providing water services at competitive rates, with a reputation for outstanding customer service. 3/6/2014 3 Statement of Values As Otay Water District employees we dedicate ourselves to: CUSTOMERS: We take pride that our commitment to customer‐centered service is our highest priority. EXCELLENCE: We strive to provide the highest quality and value in all that we do. INTEGRITY: We commit ourselves to doing the right thing.  Ethical behavior, trustworthiness and accountability are  the District’s foundation. TEAMWORK: We promote mutual trust by sharing information, knowledge and ideas to reach our common goals.  EMPLOYEES:We see each individual as unique and important. We value diversity and open communication to promote fairness, dignity and respect . KEY CHALLENGE Our key challenge, as District staff is to quantify and demonstrate our commitment and ability to optimize our resources, business processeses, and technology to achieve the strategic plan goals. We, as a team are committed to regularly assess and document how our decisions and work practices are accomplishing our goals and objectives. 3/6/2014 4 Finance, Administration and IT – Potential Improvements •Investigation of web based or portal based purchasing methodologies •Further leverage cloud based architectures for security, and disaster recovery •Changing process for developers to install new meters •Security system upgrades and consolidation •Streamlining communications to customers – web based, social media, mobile •Evaluate citizen services through billing system software – online submittals •Call center integration between departments •Exploring additional uses of the automated dialer for customer contact •Expanding email or related communications services •Modification of reserve accounting •Exploration of new billing systems Engineering and Operations – Potential Improvements •Development of plan versus actual time allocation per task. •Measurement of unit costing for routine processes •Leverage SCADA and work order system – process improvements •Support of the desalination project •North – south interconnect •Negotiations with partner cities for better agreements •Additional use of asset management •Evaluation of cost benefit of leak reduction hardware •Analysis of sewer business •Streamline rfp process (combine plan, design, build bids) •Evaluate BIM (building information management) for pipelines •Evaluate cost recovery for work (e.g. mark-out, permits, easement changes) 3/6/2014 5 Discussion and Next Steps •Receive feedback from Board on mission, vision, values and particularly key challenge. •Present draft detailed plan to Board and impact on FY15 budget prior to budget approval. •Leverage implementation of work order and SCADA systems to automate measurement and refine processes. •Strengthen the role of the management team in developing and leading changes to achieve key challenge. •Continue to engage entire staff to further refine objectives and measures over the life of the plan 3-4 years. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: March 11, 2014 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 2014 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2014 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2014 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 2014 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 3-11-14.doc Board of Directors, Workshops and Committee Meetings 2014 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 7, 2014 February 5, 2014 March 11, 2014 April 2, 2014 May 7, 2014 June 4, 2014 July 2, 2014 August 6, 2014 September 3, 2014 October 1, 2014 November 5, 2014 December 3, 2014 January 21, 2014 February 19, 2014 March 17, 2014 April 16, 2014 May 21, 2014 June 18, 2014 July 16, 2014 August 20, 2014 September 17, 2014 October 15, 2014 November 19, 2014 December 17, 2014 SPECIAL BOARD MEETINGS: BOARD WORKSHOPS: May 19, 2014 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 11, 2014 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Informational Item – Second Quarter Fiscal Year 2014 Capital Improvement Program Report GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) accept the Second Quarter Fiscal Year 2014 Capital Improvement Program (CIP) Report for review and receives a summary via PowerPoint presentation (see Attachment C). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Board about the status of all CIP project expenditures and to highlight significant issues, progress, and milestones on major projects. ANALYSIS: To keep up with growth and to meet our ratepayers' expectations to adequately deliver safe, reliable, cost-effective, and quality water, each year the District staff prepares a Six-Year CIP Plan that identifies the District’s infrastructure needs. The CIP is comprised of four categories consisting of backbone capital facilities, replacement/renewal projects, capital purchases, and developer's reimbursement projects. The Second Quarter Fiscal Year 2014 update is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget of $13.9 million. Expenditures through the Second Quarter totaled approximately $2.8 million. Approximately 20% of the Fiscal Year 2014 expenditure budget was spent (see Attachment B). FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. STRATEGIC GOAL: The Capital Improvement Program supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM/RP:jf P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2014\Q2\Staff Report\BD 03-011-14, Staff Report, Second Quarter FY 2014 CIP Report, (DM-RP).docx Attachments: Attachment A – Committee Action Attachment B - Fiscal Year 2014 Second Quarter CIP Expenditure Report Attachment C – Presentation ATTACHMENT A SUBJECT/PROJECT: Various Informational Item – Second Quarter Fiscal Year 2014 Capital Improvement Program Report COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a Committee Meeting held on February 19, 2014, and the following comments were made:  Staff provided a PowerPoint presentation to the Committee and indicated that the expenditures through the second quarter of FY 2014 totaled approximately $2.8 million, which is about 20% of the District’s fiscal year budget.  Staff indicated that the District’s FY 2014 CIP budget consists of 63 projects that total $13.9 million and is divided into four categories: o Capital Facilities= $4.4 million o Replacement/Renewal= $7.7 million o Capital Purchases= $1.6 million o Developer Reimbursement= $0.2 million  The PowerPoint presentation included the following: o Total Life-to-Date Expenditures o CIP Budget Forecast vs. Expenditures o Major CIP Projects o CIP Projects in Construction o Construction Contract Status of projects, contract amount with allowances, net change orders, and percent of project completion o Consultant Contract Status of contract amounts, approve payments to date, change orders, dates when contracts were signed and the end date of contracts  Staff provided an update of the following: o 803-3 & 832-2 Reservoir Interior/Exterior Coating & Upgrades. Staff indicated that this project was substantially completed in December 2013. o 927-1 Recycled Water Reservoir Cover and Liner Replacement. It is anticipated that this project will be completed by June 2014.  The Committee recommended that staff provide Fiscal Years 2013 and 2014 CIP Budget Forecast vs. Expenditures to provide a relative progress throughout the years. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an informational item. FISCAL YEAR 2014 2nd QUARTER REPORT (Expenditures through 12/31/2013) ($ In Thousands) ATTACHMENT B 2014 12/31/13 CIP No.Description Project Manager FY 2014 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments CAPITAL FACILITY PROJECTS - p2083 PS - 870-2 Pump Station Replacement (28,000 GPM) Marchioro 540$ 78$ 462$ 14%12,581$ 690$ 11,891$ 5% On target. Carollo anticipated to provide the Draft Preliminary Design Report by the end of January 2014. P2190 PL - 10-Inch, 1485 Zone, Jamul Highlands Martin - - - 0%228 3 225 1%No budget for FY 2014. P2267 36-Inch Main Pumpouts and Air/Vacuum Ventilation Installations Vasquez 5 - 5 0%435 234 201 54%Project has been deferred to FY 2015. p2403 PL - 12-Inch, 624 Zone, Heritage Road - Olympic/Otay Valley Martin - - - 0%925 - 925 0%No budget for FY 2014. P2434 Rancho Del Rey Groundwater Well Development Marchioro 100 8 92 8%8,700 3,605 5,095 41% Project progress has been slowed by design consultant budget/scope negotiations. Project will be placed on hold after the design has been completed. P2451 Otay Mesa Desalination Conveyance and Disinfection System Kennedy 1,500 471 1,029 31%30,000 2,100 27,900 7% Spending adjusted based on limited notice to proceed. P2466 Regional Training Facility Coburn-Boyd 14 4 10 29%300 285 15 95% Should use all of this budget by end of Fiscal Year. P2486 Asset Management Plan Condition Assessment and Data Acquisition Zhao 75 34 41 45%1,090 828 262 76% On target with spending for the first 2 quarters of Fiscal Year 2014. P2511 Otay Interconnect Pipeline Marchioro 600 159 441 27%37,300 1,834 35,466 5% Project progress has been slowed by design consultant budget/scope negotiations. P2514 PL - 30-Inch, 980 Zone, Hunte Parkway - Proctor Valley/Use Area Martin 130 60 70 46%1,815 1,728 87 95% Waterline in service. Current work consists of claims resolution. P2528 30-Inch Potable Water Pipeline Manifold at 624 Reservoirs Marchioro - - - 0%7,000 18 6,982 0%No budget for Fiscal Year 2014. P2537 Operations Yard Property Acquisition Improvements Cameron 50 3 47 6%300 24 276 8%Project is under budget. P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations Cameron 80 7 73 9%320 7 313 2%SANDAG driven project. Design is at 75%. P2541 624 Pressure Zone PRSs Marchioro 300 67 233 22%600 67 533 11% Project should be advertised for construction bid Spring 2014. Basis of design report and 90% design completed January 2014. P2542 850-3 Reservoir Interior Coating Cameron 10 - 10 0%440 - 440 0% Expenses expected in the 4th quarter of Fiscal Year 2014. P2543 850-1 Reservoir Interior/Exterior Coating Cameron - - - 0%475 - 475 0%No budget for Fiscal Year 2014. P2544 850-2 Reservoir Interior/Exterior Reservoir Coating Cameron - - - 0%1,075 - 1,075 0%No budget for Fiscal Year 2014.R2028 RecPL - 8-Inch, 680 Zone, Heritage Road - Santa Victoria/Otay Valley Martin - - - 0%600 - 600 0%No budget for Fiscal Year 2014. R2042 RecPL - 8-Inch, 927 Zone, Rock Mountain Road - SR-125/EastLake Martin - - - 0%140 - 140 0%No budget for Fiscal Year 2014. R2047 RecPL - 12-Inch, 680 Zone, La Media Road - Birch/Rock Mountain Martin - - - 0%450 - 450 0%No budget for Fiscal Year 2014.R2048 RecPL - Otay Mesa Distribution Pipelines and Conversions Martin 100 - 100 0%2,200 471 1,729 21%Developer driven project. R2058 RecPL - 16-Inch, 860 Zone, Airway Road - Otay Mesa/Alta Martin 100 - 100 0%3,500 1,339 2,161 38%Developer driven project. R2077 RecPL - 24-Inch, 860 Zone, Alta Road - Alta Gate/Airway Beppler 135 4 131 3%4,500 2,747 1,753 61% Anticipate spending full budget by the end of Fiscal Year 2014. R2087 RecPL - 24-Inch, 927 Zone, Wueste Road - Olympic/Otay WTP Cameron 5 - 5 0%7,000 1,030 5,970 15%Project is on hold. R2091 RecPS - 927-1 Pump Station Upgrade (10,000 GPM) and System Enhancements Martin 250 137 113 55%2,130 2,032 98 95% Project nearing completion. Current work includes claims resolution. R2107 RWCWRF Screening Compactor and Chlorine Injectors Enclosure Stalker 60 - 60 0%130 72 58 55% Partial installation has been completed. Remaining installation will be complete this fiscal year, with anticipated spending budget. R2108 Res - 927-1 Reservoir Cover Replacement Martin 100 76 24 76%1,400 76 1,324 5% Project has been accelerated. Construction will be completed this fiscal year rather than next fiscal year. Anticipated Fiscal Year 2014 expenditures are $1.1M rather than $0.1M. R2110 RecPS - 927-1 Optimization and Pressure Zone modifications Marchioro 150 - 150 0%150 - 150 0% Pending Operation completion of distribution system improvements including replacement of five (5) service saddles. S2039 Hidden Mountain Lift Station Enclosure Stalker 8 - 8 0%37 30 7 81% This work is scheduled for March 2014. All money should be spent. S2043 RWCWRF Sludge Handling System Beppler 50 15 35 30%1,500 15 1,485 1%Anticipate spending $25K in Fiscal Year 2014. Total Capital Facility Projects Total:4,362 1,123 3,239 26%127,321 19,235 108,086 15% REPLACEMENT/RENEWAL PROJECTS p2366 APCD Engine Replacements and Retrofits Rahders 5 31 (26) 620%3,488 2,513 975 72% Retrofitted Unit #144 and anticipate spending an additional $16.5K by end of Fiscal Year 2014. ($45K brought forward from FY 2015 after the Board had approved the FY 2014 budget adjusting the FY 2014 budget to $50K instead of $5K.) FISCAL YEAR-TO-DATE, 12/31/13 LIFE-TO-DATE, 12/31/13 Y:\Board\CurBdPkg\ENGRPLAN\2014\BD 03-11-14\Q2 FY 2014 Quarterly Update (DM-RP)\2nd qtr exp-from Marissa-FINAL.xlsx Page 1 of 3 FISCAL YEAR 2014 2nd QUARTER REPORT (Expenditures through 12/31/2013) ($ In Thousands) ATTACHMENT B 2014 12/31/13 CIP No.Description Project Manager FY 2014 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments FISCAL YEAR-TO-DATE, 12/31/13 LIFE-TO-DATE, 12/31/13 P2382 Safety and Security Improvements Ramirez 500 30 470 6%3,397 1,933 1,464 57% $170K in system upgrades have been identified for completion by the end of Fiscal Year 2014. It is expected that the remaining balance will be expensed in Fiscal Year 2015. P2440 I-905 Utility Relocations Marchioro 10 2 8 20%1,600 1,582 18 99% $159,576 credit to Otay received December 2013. Staff anticipates that Caltrans will issue an additional $33,493 credit to Otay; however, the $33K credit on hold pending Caltrans' receipt of final accounting numbers from the City of San Diego's sewer contractor. p2453 SR-11 Utility Relocations Martin 125 32 93 26%2,250 191 2,059 8% On target. Construction contract awarded January 2014. P2477 Res - 624-1 Reservoir Cover Replacement Martin 50 24 26 48%1,000 920 80 92%Complete. P2485 SCADA Communication System and Software Replacement Stalker 540 81 459 15%1,846 850 996 46% Only about $340K will be spent this year due to delays in getting the SCADA replacement, South District Radio, and 3 day Battery Back-up projects. P2493 624-2 Reservoir Interior/Exterior Coating Cameron 1,550 39 1,511 3%1,950 55 1,895 3% Construction to begin in 3rd quarter of Fiscal Year 2014. P2494 Multiple Species Conservation Plan Coburn-Boyd 60 2 58 3%887 800 87 90% Plan to use the remainder of this budget during the last two quarters. P2495 San Miguel Habitat Management/Mitigation Area Coburn-Boyd 140 56 84 40%2,040 950 1,090 47%On target. P2496 Otay Lakes Road Utility Relocations Martin 70 15 55 21%325 291 34 90% On target. Project to complete in Fiscal Year 2014. P2504 Regulatory Site Access Road and Pipeline Relocation Cameron 325 7 318 2%900 322 578 36%On hold. P2507 East Palomar Street Utility Relocation Cameron 230 68 162 30%900 351 549 39% Caltrans driving project. Utility agreements are in place for reimbursement. P2508 Pipeline Cathodic Protection Replacement Program Marchioro 60 1 59 2%300 4 296 1% New corrosion engineering services consultant (HDR) working on task order proposal to begin design of improvements. P2513 East Orange Avenue Bridge Crossing Cameron 300 127 173 42%1,350 1,292 58 96% Complete. As-built drawings and closeout with Caltrans are being processed. P2515 870-1 Reservoir Paving Cameron 490 20 470 4%550 77 473 14% Project is under budget. Additional environmental surveys delayed construction expenditures. P2518 803-3 Reservoir Interior/Exterior Coating Cameron 125 62 63 50%750 572 178 76% Finalizing punch list items for project closeout. Project is under budget. p2519 832-2 Reservoir Interior/Exterior Coating Cameron 335 287 48 86%775 556 219 72% Finalizing punch list items for project closeout. Project is under budget. P2520 Motorola Mobile Radio Upgrade Martinez 30 7 23 23%100 72 28 72%Expect to be 100% expensed Fiscal Year 2014. P2521 Large Meter Vault Upgrade Program Holly 105 9 96 9%600 205 395 34% Retrofit of vaults will continue as sites are identified. P2529 711-2 Reservoir Interior & Exterior Coating Cameron - - - 0%600 - 600 0%No budget for Fiscal Year 2014. P2530 711-1 Reservoir Interior & Exterior Coating Cameron - - - 0%725 - 725 0%No budget for Fiscal Year 2014. P2531 944-1 Reservoir Interior & Exterior Coating Cameron 5 - 5 0%175 - 175 0%Expenses expected in the 4th quarter. P2532 944-2 Reservoir Interior & Exterior Coating Cameron 5 - 5 0%725 - 725 0%Expenses expected in the 4th quarter. P2533 1200-1 Reservoir Interior & Exterior Coating Cameron - - - 0%325 - 325 0%No budget for Fiscal Year 2014. P2534 978-1 Reservoir Interior & Exterior Coating Cameron - - - 0%225 - 225 0%No budget for Fiscal Year 2014. P2535 458-2 Reservoir Interior Coating Cameron 345 5 340 1%425 12 413 3%No budget for Fiscal Year 2014. P2538 Administration and Operations Building Fire Sprinkler Replacement Program Cameron 100 9 91 9%400 9 391 2% The project's scope was modified from a full replacement to repair and treatment. This will significantly reduce the cost. R2109 Sweetwater River Wooden Trestle Improvement for the Recycled Water Forcemain Coburn-Boyd 100 - 100 0%350 - 350 0% 50% of the budget will be spent in the last half of Fiscal Year 2014. R2111 RWCWRF - RAS Pump Replacement Marchioro 100 1 99 1%100 1 99 1% Engineering hydraulic and alternatives analysis completed in-house to facilitate potential purchase of replacement pumps before the end of Fiscal Year 2014. S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Kennedy 450 - 450 0%3,550 817 2,733 23% The County will invoice the District at the end of the Fiscal Year 2014. S2024 Campo Road Sewer Main Replacement Beppler 275 24 251 9%5,500 69 5,431 1% Anticipate only spending approx. $138K of Fiscal 2014 budget. S2027 Rancho San Diego Pump Station Rehabilitation Beppler 500 8 492 2%2,900 47 2,853 2% The County is expected to invoice the District after the Board approves the agreement with the County at the January Board Meeting. S2033 Sewer System Rehabilitation Cameron 800 169 631 21%6,000 401 5,599 7%Project is currently at 90% design. Y:\Board\CurBdPkg\ENGRPLAN\2014\BD 03-11-14\Q2 FY 2014 Quarterly Update (DM-RP)\2nd qtr exp-from Marissa-FINAL.xlsx Page 2 of 3 FISCAL YEAR 2014 2nd QUARTER REPORT (Expenditures through 12/31/2013) ($ In Thousands) ATTACHMENT B 2014 12/31/13 CIP No.Description Project Manager FY 2014 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments FISCAL YEAR-TO-DATE, 12/31/13 LIFE-TO-DATE, 12/31/13 Total Replacement/Renewal Projects Total:7,730 1,116 6,614 14%47,008 14,892 32,116 32% CAPITAL PURCHASE PROJECTS P2282 Vehicle Capital Purchases Rahders 266 - 266 0%5,021 2,876 2,145 57% On schedule and anticipate spending total budget for Fiscal Year 2014. P2285 Office Equipment and Furniture Capital Purchases Dobrawa 55 12 43 22%589 516 73 88% No additional purchases anticipated for Fiscal Year 2014.p2286 Field Equipment Capital Purchases Rahders 149 94 55 63%1,758 1,257 501 72%On-schedule. P2469 Information Technology Network and Hardware Segura 350 56 294 16%2,509 1,441 1,068 57%Contracts being finalized. P2470 Financial System Enhancements Stevens 130 45 85 35%2,322 1,665 657 72%Work is in planning phase - may not reach target. P2540 Work Order Management System Replacement Stevens 300 - 300 0%700 - 700 0%Contracts being finalized. S2042 Sewer Vehicle Capital Purchases Rahders 367 367 - 100%367 367 - 100%Complete. Total Capital Purchase Projects Total:1,617 574 1,043 35%13,266 8,122 5,144 61% DEVELOPER REIMBURSEMENT PROJECTS P2104 PL - 12-Inch, 711 Zone, La Media Road - Birch/Rock Mountain Martin - - - 0%833 - 833 0%No budget for Fiscal Year 2014. P2107 PL - 12-Inch, 711 Zone, Rock Mountain Road - La Media/SR 125 Martin - - - 0%722 - 722 0%No budget for Fiscal Year 2014. R2082 RecPL - 24-Inch, 680 Zone, Olympic Parkway - Village 2/Heritage Martin 1 - 1 0%1,747 - 1,747 0% Developer driven project. No major activity anticipated for Fiscal Year 2014. R2083 RecPL - 20-Inch, 680 Zone, Heritage Road - Village 2/Olympic Martin 1 - 1 0%400 - 400 0% Developer driven project. No major activity anticipated for Fiscal Year 2014. R2084 RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media Martin 1 - 1 0%971 1 970 0% Developer driven project. No major activity anticipated for Fiscal Year 2014. R2085 RecPL - 20-Inch, 680 Zone, La Media - State/Olympic Martin 1 - 1 0%600 - 600 0% Developer driven project. No major activity anticipated for Fiscal Year 2014. R2094 Potable Irrigation Meters to Recycled Water Conversions Martin 150 3 147 2%1,700 1,568 132 92%Project under construction. Total Developer Reimbursement Projects Total:154 3 151 2%6,973 1,569 5,404 23% GRAND TOTAL 13,863$ 2,816$ 11,047$ 20%194,568$ 43,818$ 150,750$ 23% Y:\Board\CurBdPkg\ENGRPLAN\2014\BD 03-11-14\Q2 FY 2014 Quarterly Update (DM-RP)\2nd qtr exp-from Marissa-FINAL.xlsx Page 3 of 3 Otay Water District Capital Improvement Program Fiscal Year 2014 Second Quarter (through December 31, 2013) Attachment C 832-2 Potable Reservoir 12/03/2013 Background The approved CIP Budget for Fiscal Year 2014 consists of 63 projects that total $13.9 million. These projects are broken down into four categories. 1.Capital Facilities $ 4.4 million 2.Replacement/Renewal $ 7.7 million 3.Capital Purchases $ 1.6 million 4.Developer Reimbursement $ 0.2 million Overall expenditures through the Second Quarter of Fiscal Year 2014 totaled $2.8 million, which is 20% of the Fiscal Year budget. 2 Fiscal Year 2014 Second Quarter Update ($1,000) CIP CAT Description FY 2014 Budget FY 2014 Expenditures % FY 2014 Budget Spent Total Life-to- Date Budget Total Life-to-Date Expenditures % Life-to- Date Budget Spent 1 Capital Facilities $4,362 $1,123 26%$127,321 $19,235 15% 2 Replacement/ Renewal $7,730 $1,116 14%$47,008 $14,892 32% 3 Capital Purchases $1,617 $574 35%$13,266 $8,122 61% 4 Developer Reimbursement $154 $3 2%$6,973 $1,569 23% Total: $13,863 $2,816 20%$194,568 $43,818 23% 3 Fiscal Year 2014 Second Quarter CIP Budget Forecast vs. Expenditures 4 $13,863,000 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FISCAL YEAR PERIOD IN MONTHS Budget Forecast Total Expenditures $2,816,000 District Map of Major CIP Projects 5 CIP Projects in Construction 803-3 & 832-2 Reservoir Interior/Exterior Coating & Upgrades (P2518/P2519) Remove and Replace Deteriorating Reservoir Coatings Structural Modifications Including Level Indicator Replacement and Anode Replacement $1.53M Budget Start: March 2013 Substantial Completion: December 2013 6 Above: 803-3 Reservoir Below: 832-2 Exterior Blast Containment 12/03/2013 11/25/2013 CIP Projects in Construction 927-1 Recycled Water Reservoir Cover and Liner Replacement (R2108) Removal and Replacement of the reservoir liner and cover $1.40M Budget Start: November 2013 Estimated Completion: June 2014 927-1 Recycled Water Reservoir 7 12/31/13 8 Construction Contract Status PROJECT TOTAL % R2091 944-1R Recycled Pump Station Upgrade & System Enhancements Sepulveda $1,099,423 $1,162,423 $90,505 8.2%$1,252,928 $1,247,928 7.8%99.6%February 2014 R2108 927-1 Recycled Water Reservoir Cover and Liner Replacement Layfield $833,400 $873,400 $0 0.0%$833,400 $0 -4.6%0.0%June 2014 P2514 Hunte Parkway 30" Potable Water Installation Sepulveda $1,172,257 $1,212,257 $126,233 10.8%$1,312,508 $1,312,508 8.3%100.0%Complete June 2013 P2513 Orange Avenue/I- 805 12" Potable Water Installation Basile $767,000 $872,000 $19,290 2.5%$891,290 $891,290 2.2%100.0% Complete August 2013 P2518/ P2519 803-3 & 832-2 Reservoir Coating Advanced Industrial Services $876,900 $946,900 $0 0.0%$876,900 $823,250 -7.4%93.9% Complete December 2013 TOTALS:$4,748,980 $5,066,980 $236,028 5.0%$5,167,026 $4,274,976 2.0% CURRENT CONTRACT AMOUNT TOTAL EARNED TO DATE **THIS CHANGE ORDER RATE INCLUDES THE CREDIT FOR UNUSED ALLOWANCES *NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT CIP NO.PROJECT TITLE CONTRACTOR BASE BID AMOUNT CONTRACT AMOUNT W/ ALLOWANCES % CHANGE ORDERS W/ ALLOWANCE CREDIT** % COMPLETE EST. COMP. DATE NET CHANGE ORDERS LTD* Consultant Contract Status 9 Consultant CIP No.Project Title Original Contract Amount Total Change Orders Revised Contract Amount Approved Payment To Date % Change Orders % Project Complete Date of Signed Contract End Date of Contract PLANNING ARCADIS U.S., INC.Varies WASTEWATER MANAGEMENT PLAN FY12-13 $ 349,979.36 $ - $ 349,979.36 $ 349,971.86 0.0%100.0%8/3/2011 COMPLETE 12/31/2013 BROWN AND CALDWELL P1210 IWRP 2013 UPDATE $ 5,000.00 $ - $ 5,000.00 $ 3,001.00 0.0%60.0%9/17/2013 COMPLETE 12/31/2013 NARASIMHAN CONSULTING Varies HYDRAULIC MODELING SERVICES $ 175,000.00 $ - $ 175,000.00 $ 85,633.50 0.0%48.9%5/2/2011 6/30/2014 DESIGN AECOM P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (DESIGN ENGINEER) $ 3,910,297.00 $ - $ 3,910,297.00 $ 636,248.89 0.0%16.3%1/3/2011 6/30/2016 AEGIS ENGINEERING MGMT INC VARIES AS-NEEDED DESIGN SERVICES FY13-14 $ 300,000.00 $ - $ 300,000.00 $ 147,385.50 0.0%49.1%11/1/2012 6/30/2014 ARCADIS U.S., INC. P2434, P2511 VALUE ENGINEERING AND CONSTRUCTIBILITY REVIEW $ 153,628.00 $ - $ 153,628.00 $ 65,308.73 0.0%42.5%1/18/2012 6/30/2014 ATKINS Varies AS-NEEDED ENGINEERING DESIGN SERVICES FY12-13 $ 175,000.00 $ - $ 175,000.00 $ 149,283.56 0.0%85.3%10/25/2011 6/30/2015 BSE ENGINEERING INC Varies AS-NEEDED ELECTRICAL SERVICES $ 100,000.00 $ - $ 100,000.00 $ - 0.0%0.0%6/1/2012 6/30/2014 BUSTAMANTE & ASSOCIATES P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 39,500.00 $ - $ 39,500.00 $ 7,000.00 0.0%17.7%1/1/2013 COMPLETE 10/31/2013 CAROLLO ENGINEERS INC P2083 DESIGN/CONSTRUCTION FOR 870-2 PS $ 624,910.00 $ - $ 624,910.00 $ 28,365.00 0.0%4.5%10/11/2013 12/31/2017 DARNELL & ASSOCIATES Varies AS-NEEDED TRAFFIC ENGINEERING SERVICES $ 125,000.00 $ - $ 125,000.00 $ - 0.0%0.0%6/12/2012 6/30/2014 HDR ENGINEERING INC Varies CORROSION SERVICES FY14-FY16 $ 684,750.00 $ - $ 684,750.00 $ - 0.0%0.0%11/22/2013 12/31/2015 HECTOR MARES-COSSIO P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 120,000.00 $ - $ 120,000.00 $ 64,800.00 54.0%4/1/2013 3/31/2015 LEE & RO INC P2511 OTAY INTERCONNECT PIPELINE $ 2,769,119.00 $ - $ 2,769,119.00 $1,032,551.96 0.0%37.3%11/4/2010 12/31/2015 MICHAEL D.KEAGY REAL ESTATE VARIES AS-NEEDED APPRAISAL SERVICES FY13-14 $ 45,000.00 $ - $ 45,000.00 $ - 0.0%0.0%9/5/2012 6/30/2014 SILVA SILVA CONSULTING P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 104,000.00 $ - $ 104,000.00 $ 84,279.05 0.0%81.0%5/1/2012 6/30/2014 SOUTHERN CALIFORNIA SOIL VARIES GEOTECHNICAL SERVICES FY13-15 $ 175,000.00 $ - $ 175,000.00 $ 35,545.21 0.0%20.3%12/10/2012 6/30/2015 TETRA TECH, INC P2434 RANCHO DEL REY WELL - PHASE 2 $ 724,493.50 $ 23,749.00 $ 748,242.50 $ 404,445.17 3.3%54.1%4/21/2011 12/31/2014 V & A CONSULTING Varies VALUE ENGINEERING AND CONSTRUCTIBILITY REVIEW $ 392,729.00 $ - $ 392,729.00 $ 298,601.09 0.0%76.0%6/23/2011 COMPLETE 9/30/2013 Consultant Contract Status 10 Consultant CIP No.Project Title Original Contract Amount Total Change Orders Revised Contract Amount Approved Payment To Date % Change Orders % Project Complete Date of Signed Contract End Date of Contract CONSTRUCTION SERVICES AIRX UTILITY SURVEYORS Varies AS-NEEDED SURVEYING SERVICES FY 14-15 $ 175,000.00 $ - $ 175,000.00 $ 24,551.00 0.0%14.0%9/18/2013 6/30/2015 ALTA LAND SURVEYING, INC.Varies AS-NEEDED SURVEYING SERVICES $ 175,000.00 $ - $ 175,000.00 $ 171,198.75 0.0%97.8%8/15/2011 6/30/2014 ALYSON CONSULTING Varies CONSTRUCTION MGMT/INSPECTION FY 13-15 $ 350,000.00 $ - $ 350,000.00 $ 143,110.00 0.0%40.9%10/24/2012 6/30/2015 CLARKSON LAB & SUPPLLY Varies AS-NEEDED BACTERIOLOGICAL TESTING FY 14 $ 15,000.00 $ 15,000.00 $ 13,791.00 0.0%91.9%7/1/2013 6/30/2014 HARPER & ASSOCIATES P2493 COATING INSPECTION SERVICES ON THE 624-2 & 458-2 RESERVOIR $ 75,160.00 $ 75,160.00 $ 1,080.00 0.0%1.4%8/27/2013 7/3/2014 ENVIRONMENTAL ICF INTERNATIONAL (aka JONES & STOKES ASSOCIATES)Varies AS-NEEDED ENVIRONMENTAL CONSULTING SERVICES $ 375,000.00 $ - $ 375,000.00 $ 300,113.70 0.0%80.0%9/9/2010 6/30/2014 MERKEL & ASSOCIATES Varies SAN MIGUEL HABITAT MANAGEMENT AREA AND CIP-ASSOCIATED MITIGATION PROJECTS $ 359,079.00 $ - $ 359,079.00 $ 267,756.16 0.0%74.6%12/14/2011 12/31/2014 RECON P2494 PREPARATION OF THE SUBAREA PLAN $ 270,853.00 $ - $ 270,853.00 $ 190,221.86 0.0%70.2%3/28/2008 6/30/2015 WATER RESOURCES MICHAEL R. WELCH Varies ENGINEERING PLANNING SVCS. $ 40,000.00 $ - $ 40,000.00 $ 33,615.00 0.0%84.0%3/25/2009 6/30/2015 PUBLIC SERVICES AEGIS ENGINEERING MANAGEMENT Varies RECYCLED WATER PLAN CHECKING, RETROFIT, AND INSPECTION SERVICES FOR DEVELOPER PROJECTS $ 300,000.00 $ - $ 300,000.00 $ 296,020.96 0.0%98.7%1/20/2010 COMPLETE 12/30/2013 AEGIS ENGINEERING MANAGEMENT Varies RECYCLED WATER PLAN CHECKING, RETROFIT, AND INSPECTION SERVICES FOR DEVELOPER PROJECTS $ 300,000.00 $ 35,000.00 $ 335,000.00 $ 309,105.24 11.7%92.3%11/24/2010 COMPLETE 12/30/2013 AEGIS ENGINEERING MANAGEMENT Varies AS-NEEDED DEVELOPER PROJECTS FY 14-15 $ 350,000.00 $ - $ 350,000.00 $ 6,164.50 0.0%1.8%8/20/2013 6/30/2015 TOTALS: $13,758,497.86 $ 58,749.00 $13,467,246.86 $5,149,148.69 0.4% QUESTIONS? 11 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 11, 2014 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: • SDRMA Longevity Distribution – For the fifth year in a row, the District will receive two longevity distribution checks, totaling about $11,280, for participating in the Property & Liability and Workers’ Compensation programs. The Longevity Distribution Policy, approved by SDRMA’s Board of Directors, is to recognize and reward members for their loyalty and commitment to SDRMA programs. • SDRMA Loss Prevention Efforts – For the second year in a row, the District received an additional $1,000 for its loss prevention efforts. Purchasing and Facilities: • RFID Access Control – The District is moving ahead with improving safety and security for access to the District’s non-public parking lots. Issues related to signal interference for the Administration Building employee parking lot have been resolved and the District will be moving towards keeping the gate closed for the majority of the day. Employees will be required to use an issued RFID FOB/Sticker or use their ID FOB to gain entrance to the lot during the day. It is anticipated that this change will be made within the next 2-3 weeks. Customer access to the public parking areas will not be affected. • Purchase Orders – There were 79 purchase orders processed in February 2014 for a total of $3,165,103.69. o Please note PO #717983 -- this PO was issued to cover costs for the 624-2 Reservoir Exterior/Interior Coating and 2 Upgrades Project for an amount not-to-exceed $1,199,000 (per January’s staff report). Human Resources: • Budget Preparation for FY 2014-2015 – HR gathered and reviewed new personnel, reclassifications and change requests for the FY 2014-2015 budget. • Recruitments - HR is currently recruiting for Purchasing and Facilities Manager, Utility Maintenance Supervisor, and Information Technology Manager. • New Hires - We had one new hire in the month of February: Construction Inspector I. Safety & Security: • Safety Programs and Procedures – Staff completed refresher training and updates on the following: Confined Space, Fall Protection, Reporting Injuries and Illnesses Procedure, and Dog Bite Prevention. • Web EOC – Staff participated and completed the monthly web EOC exercise as part of a joint collaboration with the San Diego County Water Authority and the County of San Diego Office of Emergency Services. • National Incident Management, Standardized Emergency Management, and Incident Command Systems (NIMS/SEMS/ICS) – Completed refresher overview of program requirements with Operations, Engineering, Administration, and Finance. INFORMATION TECHNOLOGY AND STRATEGIC PLANNING: • District Strategic Plan - Staff briefed the Board on the Strategic Plan progress in February. Since that time, all departments have participated in detailed workshops identifying specific opportunities that will provide efficiency and effective improvements. In addition, all employees have been briefed in communication meetings and supervisors and managers are reinforcing the effort in line staff meetings. The effort is proceeding well and will meet the budget development schedule for the FY 2015 budget. • Work Order System Replacement - The Cityworks implementation work order system replacement effort kicks off in earnest next week. Workshops will be held with all of the key stakeholders. Prior to the arrival of the Timmons Group (selected consultant), staff has 3 provided significant detail on our primary operations business processes and annotation of how we set up the original work order system. Staff will be examining how to optimize the work order system while utilizing existing information where applicable. The project is very well timed to coincide with our strategic planning initiatives, as we see the system as a major vehicle for implementing process improvements and reducing operational costs. • SCADA System Replacement - The SCADA system implementation also launched this last month. This project will replace our nearly 20-year old SCADA system with advanced and more comprehensive functionality. While the project carefully examines the water operations activities, it is focused at the level of the devices and the equipment, which operate our water distribution network. The system provides telemetry information that governs equipment control and specific hydraulic parameters. The system improvement effort also dovetails nicely with the current process optimization goals in our Strategic Plan. • IT Network Upgrades - Staff is in the final stages of negotiating approved upgrades to both the network switchgear and our storage environment. Online backups, increased speed and capacity, and cloud based controls all offer improvements. Our migration to new architectures is consistent with industry best practices but we have been adopting practices that are well tested and validated in the market prior to adoption. FINANCE: • Tyler User Conference - Tyler Software is used for customer billing and the financial needs of the District. Staff will be presenting at the annual Tyler User Conference held in April. The topic of the presentation will be efficiencies gained by combining Eden, SharePoint and Report Manager for reviewing critical billing processes. • Letter of Credit Extension – Staff is working on extending the letter of credit with Union Bank related to its 1996 Variable Rate Bond issuance, which expires on June 29, 2014. The letter of credit is a financial guarantee provided by the bank to investors purchasing the District’s variable rate bonds. Without the letter of credit, the variable rate debt cannot be on the market. • Remarketing Agent – Staff is obtaining quotes for remarketing services related to its 1996 Variable Rate Bond issuance. The Remarketing Agent is a dealer or dealer bank responsible for the pricing of variable-rate demand bonds who periodically set and reset the interest rate for variable rate bonds. Union Banks 4 affiliate, Mitsubishi UFJ Securities (USA), Inc., has presented a quote for services, which would reduce the fees by approximately $1,000 per year. Engaging with the Union Bank affiliate would strengthen the District’s relationship with Union Bank, which may generate future savings as well. • Budget Awards - The District has received two awards from the California Society of Municipal Finance Officers (CSMFO) for the FY 2014 budgets. The Excellence in Capital Budgeting award was received for the 9th consecutive year and the Excellence in Operating Budgeting award was received for the 8th consecutive year. Water Conservation: • Water Smart Landscape Makeover Classes - A free four-session water conservation landscape class funded by the MWD, will be available to District residents at Southwestern College on March 29th and at the Water Conservation Garden on May 10th. Residents will be taught to remove grass and to design a water conserving drought tolerant landscape. This series of classes will prepare homeowners with all the tools necessary to utilize turf removal rebates available from the MWD and CWA. • Opening Ceremony of the Dorcas E. Utter Memorial Butterfly Pavilion - The Water Conservation Garden will be hosting the grand opening of the butterfly pavilion named in honor of a long-time Garden supporter and docent, Dorcas E. Utter. The ceremony is on March 21st and the Butterfly Festival is on Saturday, April 5th. The District will participate in the event by staffing a multi-water agency conservation booth. • Financial Reporting: o For the seven months ended January 31, 2014, there are total revenues of $53,633,520 and total expenses of $51,735,122. The revenues exceeded expenses by $1,898,398. o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of January 31, 2014, total $82,442,456.84 with an average yield to maturity of 0.35%. The total earnings year-to-date are $168,794.40. ENGINEERING AND WATER OPERATIONS: Engineering: • 30-Inch, 980 Zone, Hunte Parkway – Proctor Valley/Use Area: This project consists of the installation of approximately 2,240 linear-feet of 30-inch steel pipe and appurtenances on Hunte 5 Parkway at Proctor Valley Road, at the entrance to the Salt Creek Golf Course, in the City of Chula Vista. The contract has been accepted and the Notice of Completion was filed with the County of San Diego on July 1, 2013. The contractor, Sepulveda Construction, has submitted change requests and claims for additional compensation. Staff has evaluated these requests and has provided entitlement decisions indicating “no merit” on these requests based on the information submitted by Sepulveda Construction. Sepulveda requested mediation of the submitted claims. Mediation took place on December 11, 2013 and the decision not to pursue further mediation was made on January 8, 2014. The time provided within the contract for Sepulveda to file for arbitration expired on February 6, 2014. The District is closing the case. (P2514) • SR-11 Potable Water Utility Relocations – Sequence 1: This project consists of the relocation of existing pipelines in Sanyo Avenue and utility easements to accommodate the construction of the future SR-11 right-of-way. At the request of Caltrans, the District’s relocations were bid as six (6) separate “work windows” to provide flexibility to Caltrans’ contractor and coordinate with the SR-11 freeway construction. The project was awarded to Coffman Specialties Incorporated and a Notice to Proceed was issued to begin work on February 10, 2014. The current work includes submittal review/approval. The project is within budget and on schedule and is anticipated to complete in August 2016. (P2453) • 927-1 Reservoir Liner and Cover Replacement: This project consists of replacing the liner and floating cover on the 927-1 recycled water reservoir which is also known as Pond 4 located in the Salt Creek Golf Course. The existing liner and cover have reached the end of their useful life and are in need of replacement. The project was awarded to Layfield Environmental Systems Corporation and a Notice to Proceed was issued on November 18, 2013 and the current work involves material fabrication of the new cover and installation of the new liner. The project is within budget and on schedule and anticipated to be complete in April 2014. (R2108) • 944‐1R Recycled Water Pump Station Upgrades and System Enhancement: This project consists of the installation of a new pump, reconfiguration of the suction header piping, upgrades to the instrumentation, SCADA system, and equipment at the 944-1R pump station. The project also includes the installation of three (3) Pressure Reducing Stations (PRS) on Olympic Parkway, Eastlake Parkway, and Otay Lakes Road. The contract was accepted on February 13, 2014 and the Notice of Completion has been filed. Sepulveda submitted a claim for additional compensation. Staff has evaluated this request and has provided an entitlement 6 decision indicating “no merit” based on the information submitted by Sepulveda Construction. Sepulveda requested mediation of the submitted claims. Mediation took place on December 11, 2013 and the decision not to pursue further mediation was made on January 8, 2014. The time provided within the contract for Sepulveda to file for arbitration expired on February 6, 2014. The District is closing the case. (R2091) • 803-3 & 832-2 Reservoirs Interior/Exterior Coatings and Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 803-3 Reservoir 2.0 MG and the 832-2 Reservoir 2.0 MG, along with providing structural upgrades to ensure the tanks comply with both State and Federal OSHA standards as well as American Water Works Association and County Health Department standards. The Contractor, Advanced Industrial Services, has completed all work on the project. On November 23, 2013 the 832-2 tank was put back into service. The 803-3 tank was put back into service on December 13, 2013. All field work is complete and project acceptance is anticipated in late February 2014. The project is within budget and on schedule. (P2518 & P2519) • 624-2 Reservoir Interior/Exterior Coatings & Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 624-2 8.0 MG Reservoir, along with providing structural upgrades to ensure the tanks comply with both State and Federal OSHA standards as well as American Water Works Association and County Health Department standards. At the January Board meeting the Board awarded the construction contract to Advanced Industrial Services. The contractor mobilized to the site in early February 2014. The current work consists of blasting the existing coating from the roof and welding procedures for the structural upgrades. The project is within budget and on schedule and is anticipated to complete in June 2014. (P2493) • County Water Authority Request for Electrical Service: The San Diego County Water Authority (Water Authority) has requested the District to provide electrical power for a new acoustic assessment system to be installed in an existing Water Authority vault that is currently receiving electrical power from an existing District metering facility on Ruxton Road. The Water Authority has offered to pay the entire electricity bill for the District facility. The new acoustic system is anticipated to be on-line for three (3) years. The Water Authority submitted three copies of the letter agreement for the District to sign which were returned to the Water Authority on March 3, 2014. • Administration Building Fire Sprinkler Replacement: This project consists of removing and replacing the existing fire sprinkler 7 system in the Administration Building. A recent inspection of the fire sprinkler system identified corrosion throughout the systems as the cause for leaks the District experienced last year. Staff determined that replacing the entire fire protection system was costly and unnecessary, and requested a second opinion to rectify the corrosion issue. A&D Fire Sprinkler, Inc. recommend first to replace the visually corroded fixtures which was completed on January 21, 2014, and as a result, the District received a 5 year certification on the Administration Building. The second phase includes installing an automated system to inject a chemical solution that will treat the corrosion. Staff is currently drafting the RFP for the Phase II portion. (P2538) • For the month of January 2014, the District sold 17 meters (17 EDUs) generating $162,453 in revenue. Projection for this period was 17.5 meters (29.5 EDUs) with budgeted revenue of $266,447. Total revenue for Fiscal Year 2014 through January 2014 is $1,162,094 against the annual budget of $3,197,767. Water Operations: • Total number of potable water meters is 49,181. • The January potable water purchases were 2,503.4 acre-feet which is 31.6% above the budget of 1,902.2 acre-feet. The cumulative purchases through January is 19,991.2 acre-feet which is 2.3% above the cumulative budget of 19,538.4 acre-feet. 8 • The January recycled water purchases and production was 301.0 acre-feet which is 158.9% above the budget of 116.2 acre-feet. The cumulative production and purchases through January is 3,111.2 acre-feet which is 14.7% above the cumulative budget of 2,712.7 acre-feet. This increase was caused by less rainfall and higher than normal temperatures, a temporary customer that was not anticipated in the FY 2014 budget, and a new meter from the City for water sales from the SBWRP that is running approximately 10% higher than the District’s meter. • Recycled water consumption for the month of January is as follows: o Total consumption was 263.6 acre-feet or 85,856,188 gallons and the average daily consumption was 2,769,554 gallons per day. o Total recycled water consumption as of January for FY 2014 is 3,083.7 acre-feet. o Total number of recycled water meters is 711. • Wastewater flows for the month of January were as follows: o Total basin flow, gallons per day: 1,665,271. o Spring Valley Sanitation District Flow to Metro, gallons per day: 551,492. o Total Otay flow, gallons per day: 1,113,779. o Flow Processed at the Ralph W. Chapman Water Recycling Facility, gallons per day: 892,349. o Flow to Metro from Otay Water District was 221,431 gallons per day. • By the end of January there were 6,087 wastewater EDUs. Check Total 4,363.64 1,228.48 597.82 2,363.35 1,245.63 409.84 409.84 SAFETY BOOT REIMBURSEMENT 92.64 92.64 2039438 02/19/14 06834 BAUDVILLE INC 2651792 01/24/14 VISITOR BADGES 000005095254 02/02/14 CALNET 2 PHONE SVCS (1/2/14-2/1/14)16.55 2039387 02/12/14 06970 BATTIKHA, SAM O0000000069 02/06/14 37.78 2039437 02/19/14 07785 AT&T 000005091774 02/01/14 CALNET 2 PHONE SVCS (1/1/14-1/31/14)1,229.08 31.65 31.65 2039386 02/12/14 05758 AT&T 61969851400114 01/24/14 LONG DISTANCE (MONTHLY)37.78 LONG DISTANCE (MONTHLY)37.78 37.78 2039307 01/29/14 05758 AT&T 33784130450114 01/07/14 ACCESS TRANSPORT SVCS (1/7/14-2/6/14) 2039306 01/29/14 05758 AT&T 61967053090114 01/15/14 ACCESS TRANSPORT SVCS (1/25/14-2/24/14)2,293.08 61942256050114 01/20/14 ACCESS TRANSPORT SVCS (1/20/14-2/19/14)70.27 2039348 02/05/14 05758 AT&T 0821645728012514 01/25/14 321.12 2039305 01/29/14 11232 ARCHIE KELLEMS Ref002432286 01/27/14 UB Refund Cst #0000016673 36.25 36.25 1,100.00 1,100.00 2039347 02/05/14 08967 ANTHEM BLUE CROSS EAP 41196 01/25/14 EMPLOYEE ASSISTANCE PROGRAM (FEB 2014)321.12 PAGER SERVICES (JAN 2014)205.34 205.34 2039346 02/05/14 00002 ANSWER INC 9436 01/22/14 ANSWERING SERVICES (MONTHLY) 01/27/14 UB Refund Cst #0000196552 34.57 34.57 2039385 02/12/14 06166 AMERICAN MESSAGING L11095700B 02/01/14 530.33 0509005487347 01/25/14 TRASH SERVICES (FEB 2014)67.49 2039304 01/29/14 15380 AMANDA CAROL PAREDES Ref002432293 MEMBERSHIP RENEWAL 722.31 722.31 2039436 02/19/14 02362 ALLIED WASTE SERVICES # 509 0509005485720 01/25/14 TRASH SERVICES (FEB 2014) 01/27/14 WELLNESS WORKSHOP (JAN 2014)390.00 390.00 2039384 02/12/14 13203 ALLIANCE FOR WATER EFFICIENCY 3025 06/27/13 869.48 158370 01/21/14 ALARM SERVICE (1/17/14)359.00 2039303 01/29/14 15373 ALISON S FUGATE 012714 LAND SURVEYING (12/1/13-12/31/13)2,953.00 2,953.00 2039435 02/19/14 14811 ALARMS UNLIMITED INC 158410 01/23/14 ON SITE SERVICE (1/22/14) 12/02/13 BREATHING AIR 366.02 366.02 2039434 02/19/14 15024 AIRX UTILITY SURVEYORS INC 3 01/31/14 2,758.54 131319466 01/15/14 AQUA AMMONIA 1,605.10 2039383 02/12/14 13753 AIRGAS USA LLC 9022289621 AS-NEEDED DEVELOPER SVCS (12/1/13-1/3/14)18,993.39 18,993.39 2039433 02/19/14 07732 AIRGAS SPECIALTY PRODUCTS INC 131319467 01/15/14 AQUA AMMONIA 2039382 02/12/14 11462 AEGIS ENGINEERING MGMT INC 1305 01/14/14 1,562.50 2039432 02/19/14 12174 AECOM TECHNICAL SERVICES INC 14 01/16/14 DISINFECTION SYSTEM (11/23/13-12/27/13)43,239.03 43,239.03 Amount 2039431 02/19/14 08488 ABLEFORCE INC 4143 01/29/14 PROGRAMMING SERVICES (12/26/13-1/28/14)1,562.50 CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,454.04 8,071.41 566.00 3,033.00 219.10 01/31/14 TAPE STORAGE (JAN 2014)405.79 405.79 -205.19 15721950 01/22/14 OFFICE EQUIPMENT/CAMERA 424.29 2039448 02/19/14 12334 CORODATA MEDIA STORAGE INC DS1261473 71095 01/01/14 BACTERIOLOGICAL TESTING SERVICES 141.00 2039447 02/19/14 08160 COMPLETE OFFICE C15721950 CREDIT MEMO 71100 01/01/14 BACTERIOLOGICAL TESTING SERVICES 300.00 71097 01/01/14 BACTERIOLOGICAL TESTING SERVICES 228.00 71099 01/01/14 BACTERIOLOGICAL TESTING SERVICES 650.00 71098 01/01/14 BACTERIOLOGICAL TESTING SERVICES 373.00 BACTERIOLOGICAL TESTING SERVICES 681.00 71103 01/01/14 BACTERIOLOGICAL TESTING SERVICES 660.00 2039389 02/12/14 04119 CLARKSON LAB & SUPPLY INC 71102 01/01/14 71600 01/31/14 BACTERIOLOGICAL TESTING SERVICES 154.00 71602 01/31/14 BACTERIOLOGICAL TESTING SERVICES 89.00 BACTERIOLOGICAL TESTING SERVICES 169.00 71599 01/31/14 BACTERIOLOGICAL TESTING SERVICES 154.00 2039446 02/19/14 04119 CLARKSON LAB & SUPPLY INC 71601 01/31/14 80.07 2039388 02/12/14 15256 CIGNA GROUP INSURANCE / LINA 09520492670114 01/17/14 AD&D & SUPP LIFE INS (JAN 2014)4,543.57 4,543.57 915.00 915.00 2039308 01/29/14 15385 CHANSOPHIA PHIM Ref002432298 01/27/14 UB Refund Cst #0000199428 80.07 DESIGN 870-2 PS (12/1/13-12/31/13)26,868.73 26,868.73 2039445 02/19/14 02911 CELARTEM INC PSI049674 01/31/14 SOFTWARE UPGRADE (2/1/14-1/31/15) 2039444 02/19/14 15177 CAROLLO ENGINEERS INC 132699 01/23/14 45.00 2039443 02/19/14 02758 CARMEL BUSINESS SYSTEMS INC 7750 01/22/14 DESTRUCTION SERVICES (1/17/14)38.50 38.50 1,297.92 1,297.92 2039442 02/19/14 04071 CAPITOL WEBWORKS LLC 26107 01/31/14 ELECTRONIC FILING FEE (QUARTERLY)45.00 ELECTRICAL SERVICES (12/1/13-12/31/13)9,360.00 9,360.00 2039441 02/19/14 03450 BUELNA, ARMANDO 021114 02/11/14 COMPUTER LOAN 2039440 02/19/14 14112 BSE ENGINEERING INC 52670 01/24/14 BPI381070 01/16/14 SODIUM HYPOCHLORITE 923.23 BPI385681 01/30/14 SODIUM HYPOCHLORITE 915.60 BPI383176 01/23/14 SODIUM HYPOCHLORITE 1,103.07 BPI383177 01/23/14 SODIUM HYPOCHLORITE 1,085.64 SODIUM HYPOCHLORITE 2,208.32 BPI383178 01/23/14 SODIUM HYPOCHLORITE 1,835.55 BPI378952 01/09/14 SODIUM HYPOCHLORITE 443.62 2039439 02/19/14 10970 BRENNTAG PACIFIC INC BPI385682 01/30/14 2039349 02/05/14 10970 BRENNTAG PACIFIC INC BPI378953 01/09/14 SODIUM HYPOCHLORITE 1,010.42 Page 2 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 3,000.00 1,730.00 250.00 216.00 15.17 15.17 2039355 02/05/14 13123 FAVELA PRINTING INC 1184 01/13/14 FY 2013 CAFR 216.00 CL2GAS PM 4,229.03 4,229.03 2039313 01/29/14 15376 EXCEL PROPERTIES Ref002432289 01/27/14 UB Refund Cst #0000145747 01/28/14 OUTSIDE LAB SERVICES (1/7/14)255.00 255.00 2039456 02/19/14 15396 EVOQUA WATER TECHNOLOGIES LLC 901559408 01/23/14 -5.00 L0137119 09/20/13 OUTSIDE LAB SERVICES (9/3/13)255.00 2039455 02/19/14 14320 EUROFINS EATON ANALYTICAL INC L0152942 01/13/14 RECYCLED WATER ANALYSIS (12/21/13-12/30/13)995.00 995.00 2039393 02/12/14 14320 EUROFINS EATON ANALYTICAL INC I0098179 CREDIT MEMO FOR INV #L0096999 1,065.00 4020306 02/03/14 RECYCLED WATER ANALYSIS (1/17/14-1/23/14)665.00 2039354 02/05/14 03227 ENVIROMATRIX ANALYTICAL INC 4010656 UNEMPLOYMENT INSURANCE (10/1/13-12/31/13)12,234.02 12,234.02 2039454 02/19/14 03227 ENVIROMATRIX ANALYTICAL INC 4010841 01/20/14 RECYCLED WATER ANALYSIS (12/31/13-1/10/14) 2039392 02/12/14 00331 EMPLOYMENT DEVELOPMENT DEPT 925023840214 02/05/14 33.60 2039312 01/29/14 15375 ELVA CAMPOS Ref002432288 01/27/14 UB Refund Cst #0000053977 100.98 100.98 95.00 95.00 2039311 01/29/14 15374 EDWARD MATUS Ref002432287 01/27/14 UB Refund Cst #0000044358 33.60 SATELLITE TV 569.88 569.88 2039353 02/05/14 02447 EDCO DISPOSAL CORPORATION 1554580114 01/31/14 RECYCLING SERVICES 2039453 02/19/14 03417 DIRECTV 22389329055 02/05/14 1,738.89 2039352 02/05/14 03417 DIRECTV 22269146068 01/19/14 SATELLITE TV 563.88 563.88 134.61 134.61 2039351 02/05/14 08495 DIAZ, JENNY 020320014 02/03/14 COMPUTER LOAN 1,738.89 CERTIFICATE RENEWAL 80.00 80.00 2039452 02/19/14 15287 DEVONNA ALMAGRO 103 01/31/14 NEWSLETTERS - SPANISH TRANSLATION 2039310 01/29/14 00319 DEPARTMENT OF PUBLIC HEALTH O0000000066 01/24/14 979.44 2039451 02/19/14 14362 DAY WIRELESS SYSTEMS {20}37347 01/30/14 FIRETIDE NORTH SEGMENT OPTIMIZATION 18,680.00 18,680.00 14.33 14.33 2039350 02/05/14 15397 DAVID HOSTETLER UB220027544 02/04/14 REFUND OVERPAYMENT 979.44 UB Refund Cst #0000203845 76.39 76.39 2039391 02/12/14 15403 DARYL CARTER Ref002432479 02/10/14 UB Refund Cst #0000142279 28810114 01/30/14 INTERNET SERVICES (1/29/14-2/28/14)1,500.00 2039309 01/29/14 15387 DALI COLLINS Ref002432300 01/27/14 355.00 355.00 2039450 02/19/14 02756 COX COMMUNICATIONS SAN DIEGO 27170114 01/30/14 INTERNET SERVICES (1/29/14-2/28/14)1,500.00 EXCAVATION PERMITS (DEC 2013)475.30 475.30 2039390 02/12/14 00184 COUNTY OF SAN DIEGO DEH140237D11 01/31/14 SHUT DOWN TEST (12/11/2013) 2039449 02/19/14 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD121301/15/14 Page 3 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 7,376.38 3,442.39 3,933.53 634.57 210.24 216.81 2,480.00 1,525.15 TRAVEL EXPENSES (NOV 2013)138.39 138.39 2039463 02/19/14 00101 GRAINGER INC 9355729485 CREDIT MEMO -40.05 2039317 01/29/14 12673 GONZALEZ, DAVID 110113113013 01/22/14 01/09/14 VERSAMAX PLCS AND ACCESSORIES 870.96 580235516 01/09/14 VERSAMAX PLCS AND ACCESSORIES 654.19 1,860.00 179 11/25/13 GARDEN TOURS (NOV 2013)620.00 2039358 02/05/14 10817 GEXPRO 580235515 UB Refund Cst #0000203615 9.71 9.71 2039462 02/19/14 13563 FRIENDS OF THE WATER 184 02/02/14 GARDEN TOURS (JAN 2014) 2039397 02/12/14 15409 FRANCISCO MAGALLON Ref002432486 02/10/14 81.00 2039396 02/12/14 02344 FRANCHISE TAX BOARD Ben2432553 02/13/14 BI-WEEKLY PAYROLL DEDUCTION 81.00 81.00 50.00 50.00 2039316 01/29/14 02344 FRANCHISE TAX BOARD Ben2432364 01/30/14 BI-WEEKLY PAYROLL DEDUCTION 81.00 BI-WEEKLY PAYROLL DEDUCTION 90.00 90.00 2039395 02/12/14 01612 FRANCHISE TAX BOARD Ben2432551 02/13/14 BI-WEEKLY PAYROLL DEDUCTION 2039315 01/29/14 01612 FRANCHISE TAX BOARD Ben2432362 01/30/14 FLEET VEHICLE WASHING 164.25 x222520 01/03/14 FLEET VEHICLE WASHING 52.56 2039357 02/05/14 11962 FLEETWASH INC x222686 01/10/14 FLEET VEHICLE WASHING 144.54 x226133 01/17/14 FLEET VEHICLE WASHING 65.70 02/01/14 EQUIPMENT MAINTENANCE (FEB 2014)135.00 135.00 2039461 02/19/14 11962 FLEETWASH INC x229720 01/24/14 344.55 013882 01/17/14 COFFEE SUPPLIES 290.02 2039460 02/19/14 02591 FITNESS TECH 8897 ONLINE DOCUMENTS (MONTHLY)99.00 99.00 2039459 02/19/14 04066 FIRST CHOICE SERVICES - SD 014750 01/31/14 COFFEE SUPPLIES 0461530 01/15/14 WAREHOUSE SUPPLIES 573.27 2039458 02/19/14 12187 FIRST AMERICAN DATA TREE LLC 9003400114 01/31/14 -2,038.50 0459525 01/15/14 INVENTORY 4,592.76 0460446 01/15/14 CLAVAL REGULATOR 806.00 0460468 01/09/14 INVENTORY 617.34 2039457 02/19/14 03546 FERGUSON WATERWORKS # 1083 CM037771 CREDIT MEMO FILTER AIR SCOUR VALVES 2,038.50 0461232 01/09/14 INVENTORY 786.55 2039356 02/05/14 03546 FERGUSON WATERWORKS # 1083 0452150 01/07/14 INVENTORY 4,917.59 0460800 01/14/14 INVENTORY 2,458.79 2039394 02/12/14 03546 FERGUSON WATERWORKS # 1083 0460802 01/14/14 2039314 01/29/14 00645 FEDEX 253070356 01/17/14 MAIL SERVICES (1/9/14)12.62 12.62 Page 4 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 240.63 407.16 11,788.50 7,152.95 7,200.00 LABORATORY SUPPLIES 192.46 192.46203936102/05/14 01649 IDEXX DISTRIBUTION INC 273936801 12/16/13 29.00 2039320 01/29/14 15377 HYOUNG KIM Ref002432290 01/27/14 UB Refund Cst #0000184922 7.48 7.48 1,984.55 1,984.55 2039319 01/29/14 15378 HUGO ZAMUDIO Ref002432291 01/27/14 UB Refund Cst #0000195984 29.00 TREE TRIMMING 1,725.00 1,725.00 2039360 02/05/14 12335 HP ENTERPRISE SERVICES LLC U3143989 01/13/14 IVR PAYMENT SERVICES (DEC 2013) 107 02/02/14 BI-NATIONAL CONSULTANT SVCS (JAN 2014)3,600.00 2039469 02/19/14 09710 HOMESTEAD TREE SERVICE INC 1771 01/15/14 122.99 122.99 2039401 02/12/14 04472 HECTOR I MARES-COSSIO 106 01/31/14 BI-NATIONAL CONSULTANT SVCS (DEC 2013)3,600.00 AV MAINTENANCE (JAN 2014- DEC 2014)2,700.00 2,700.00 2039400 02/12/14 15407 HDR EOC Ref002432484 02/10/14 UB Refund Cst #0000198617 2039399 02/12/14 05986 HAVS INCORPORATED 7032 01/03/14 297.24 2039318 01/29/14 02795 HARTFORD INSURANCE CO, THE Ben2432350 01/30/14 MONTHLY CONTRIBUTION TO LTD 5,330.67 5,330.67 1,030.75 1,030.75 2039468 02/19/14 00201 HARRINGTON INDL PLASTICS LLC 004E2682 01/29/14 CHLORINATOR PARTS 297.24 HACH ANALYZERS 3,234.81 3,234.81 2039359 02/05/14 00174 HACH COMPANY 8643162 01/09/14 TURBIDIMETER PARTS 8624689 12/23/13 CCB TURBIDITY METER PM 528.48 2039467 02/19/14 00174 HACH COMPANY 8659942 01/21/14 8653267 01/16/14 LABORATORY SUPPLIES 723.15 8666517 01/24/14 HACH APA PARTS 536.25 8659104 01/20/14 HACH APA6000 1,223.00 8659102 01/20/14 HACH APA6000 1,223.00 8659098 01/20/14 HACH APA6000 1,259.79 8659100 01/20/14 HACH APA6000 1,223.00 CREDIT MEMO -1,610.28 8655858 01/17/14 SC200 DIGITAL DISPLAY 2,046.56 8,909.50 11589 01/16/14 LANDSCAPING SVCS 2,879.00 2039466 02/19/14 00174 HACH COMPANY 2098048 HOFFMAN ENCLOSURES 3,696.60 3,696.60 2039465 02/19/14 12907 GREENRIDGE LANDSCAPE INC 11647 01/31/14 LANDSCAPING SERVICES (JAN 2014) 2039464 02/19/14 01576 GRAYBAR ELECTRIC CO INC 970829513 01/27/14 PAINT 301.97 9339423155 01/14/14 TOOLS/HARDWARE 105.19 2039398 02/12/14 00101 GRAINGER INC 9339193295 01/14/14 9354855208 01/31/14 WAREHOUSE SUPPLIES 241.43 9355928517 02/03/14 WAREHOUSE SUPPLIES 39.25 2039463 02/19/14 00101 GRAINGER INC 9355729485 CREDIT MEMO -40.05 Page 5 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 15,587.20 1,684.65 4,314.90 17,069.15 DELIVERY SERVICES (1/3/14-1/17/14)199.50 199.50 5502 01/17/14 AS NEEDED PAVING SERVICES FY14 6,104.15 2039477 02/19/14 04996 KNOX ATTORNEY SERVICE INC 4033326 01/31/14 40.39 40.39 2039476 02/19/14 05840 KIRK PAVING INC 5507 01/30/14 AS NEEDED PAVING SERVICES FY14 10,965.00 UB Refund Cst #0000206164 46.67 46.67 2039323 01/29/14 15382 KIMBERY MAPLES Ref002432295 01/27/14 UB Refund Cst #0000197157 2039408 02/12/14 15412 JYM INVESTMENT INC.Ref002432489 02/10/14 36.31 2039407 02/12/14 15408 JULIUS ESGASANE Ref002432485 02/10/14 UB Refund Cst #0000199292 45.09 45.09 239.04 239.04 2039406 02/12/14 15404 JULIANNE PULIDO Ref002432480 02/10/14 UB Refund Cst #0000155854 36.31 SAFETY BOOT REIMBURSEMENT 134.14 134.14 2039405 02/12/14 15401 JOSE VILLAFUERTE Ref002432477 02/10/14 UB Refund Cst #0000066301 0098677 01/15/14 ENVIRONMENTAL CONSULTING (11/23/13-12/31/13)155.00 2039475 02/19/14 05217 JONES, DANIEL O0000000074 02/13/14 0098681 01/15/14 ENVIRONMENTAL CONSULTING (11/23/13-12/31/13)1,332.40 0098680 01/15/14 ENVIRONMENTAL CONSULTING (11/23/13-12/31/13)560.00 402.00 402.00 2039474 02/19/14 03172 JONES & STOKES ASSOCIATES INC 0098675 01/15/14 ENVIRONMENTAL CONSULTING (11/23/13-12/31/13)2,267.50 DUSTO INSPECTIONS (JAN 2014)100.00 100.00 2039322 01/29/14 15371 JENNIFER FORTIN UB042083868 01/24/14 CUSTOMER REFUND 606962 01/16/14 CHLORINE 4,684.65 2039473 02/19/14 02269 JENAL ENGINEERING CORP 14244 01/29/14 82.83 82.83 2039472 02/19/14 10563 JCI JONES CHEMICALS INC 607194 CREDIT MEMO -3,000.00 JANITORIAL SERVICES (JAN 2014)1,135.50 1,135.50 2039404 02/12/14 15411 JANINA FERNANDEZ Ref002432488 02/10/14 UB Refund Cst #0000205872 2039471 02/19/14 03077 JANI-KING OF CALIFORNIA INC SDO01140145 01/01/14 150.00 2039403 02/12/14 15400 JAMES MALCOLM Ref002432476 02/10/14 UB Refund Cst #0000051627 22.00 22.00 2,500.00 2,500.00 2039362 02/05/14 15393 IRMA MENDEZ UB230613496 01/30/14 CUSTOMER REFUND 150.00 EMAIL SERVICES (1/2/14-2/2/14)3,442.59 3,442.59 2039321 01/29/14 02267 INTERNAL REVENUE SERVICE a000062 01/27/14 DOCUMENT FEE 76910 01/31/14 BILL PRINTING SERVICES (1/27/14-1/31/14)1,037.78 2039402 02/12/14 13899 INTERMEDIA.NET INC 2013164467 02/01/14 8,369.90 76911 01/31/14 BILL PRINTING SERVICES (1/27/14-1/31/14)3,524.27 76592 01/25/14 BILL PRINTING SERVICES (12/31/13-1/25/14)2,655.25 LABORATORY SUPPLIES 192.46 192.46 2039470 02/19/14 08969 INFOSEND INC 76593 01/25/14 BILL PRINTING SERVICES (12/31/13-1/24/14) 2039361 02/05/14 01649 IDEXX DISTRIBUTION INC 273936801 12/16/13 Page 6 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 95.00 59.33 194.03 486.16 428.69 SAFETY JACKET 49.20 49.20 2039485 02/19/14 15136 MISSION UNIFORM SERVICE 340268118 01/20/14 UNIFORM SERVICES 340267228 01/13/14 UNIFORM SERVICES 88.93 2039330 01/29/14 15136 MISSION UNIFORM SERVICE S340263626 12/23/13 1,144.11 1,144.11 2039365 02/05/14 15136 MISSION UNIFORM SERVICE 340267225 01/13/14 UNIFORM SERVICES 397.23 UB Refund Cst #0000205037 61.16 61.16 2039364 02/05/14 00237 MISSION JANITORIAL & ABRASIVE 39439500 01/09/14 JANITORIAL SUPPLIES 2039329 01/29/14 15389 MIRIAM GREGORY Ref002432302 01/27/14 75.00 2039328 01/29/14 15383 MIGUEL VALENZUELA Ref002432296 01/27/14 UB Refund Cst #0000197358 11.05 11.05 41.87 41.87 2039412 02/12/14 15406 MICHAEL WHITFIELD Ref002432483 02/10/14 UB Refund Cst #0000198205 75.00 UB Refund Cst #0000196554 25.62 25.62 2039411 02/12/14 15381 MICHAEL NOWACK Ref002432482 02/10/14 UB Refund Cst #0000196554 2039327 01/29/14 15381 MICHAEL NOWACK Ref002432294 01/27/14 21.53 2039484 02/19/14 11876 MICHAEL D KEAGY REAL ESTATE 1116 01/21/14 APPRAISAL SERVICES (12/1/13-1/20/14)5,000.00 5,000.00 8,305.66 8,305.66 2039326 01/29/14 15390 MICHAEL ANTHONY PROPERTIES Ref002432303 01/27/14 UB Refund Cst #0000205812 21.53 HDWKS TSS MATERIALS 33.57 33.57 2039410 02/12/14 01824 MERKEL & ASSOCIATES INC 14011001 01/10/14 ENVIRONMENTAL SERVICES (12/1/13-12/31/13) 64093506 11/01/13 CCB BAFFLE HARDWARE 40.09 2039483 02/19/14 01183 MCMASTER-CARR SUPPLY CO 72152068 01/28/14 995.49 2039325 01/29/14 01183 MCMASTER-CARR SUPPLY CO 65228301 11/13/13 MISC HARDWARE 153.94 23,947.49 23,947.49 2039482 02/19/14 02882 MAYER REPROGRAPHICS INC 0084668IN 02/10/14 REPROGRAPHICS SERVICES 995.49 COMMUNITY OUTREACH (JAN 2014)2,387.50 2,387.50 2039409 02/12/14 05329 MASTER METER INC 117438 01/14/14 INVENTORY 120113123113 01/28/14 MILEAGE REIMBURSEMENT (DEC 2013)19.21 2039481 02/19/14 02902 MARSTON & MARSTON INC 20142 02/03/14 583.08 583.08 2039324 01/29/14 03019 LOPEZ, JOSE 110113113013 01/21/14 MILEAGE REIMBURSEMENT (NOV 2013)40.12 COVER/LINER REPLACEMENT (ENDING 1/31/14)22,611.66 22,611.66 2039363 02/05/14 00627 LEWIS & LEWIS ENTERPRISES 1030574000 01/13/14 SURVEY SUPPLIES SM45396 01/23/14 ALARM MONITORING #1 (JAN 2014)40.00 2039480 02/19/14 09511 LAYFIELD ENVIRONMENTAL SYSTEMS 1A 02/12/14 500.00 500.00 2039479 02/19/14 14036 KRATOS / HBE SM45398 01/23/14 ALARM MONITORING #2 (JAN 2014)55.00 2039478 02/19/14 12276 KONECRANES INC SDG00868516 01/29/14 HOIST INSPECTION Page 7 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,866.42 8,337.00 209.04 612.57 BI-WEEKLY PERS CONTRIBUTION 159,575.53 159,575.53203937102/05/14 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2432352 01/30/14 1,218.88 2039495 02/19/14 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2432541 02/13/14 BI-WEEKLY PERS CONTRIBUTION 160,142.69 160,142.69 3,664.00 3,664.00 2039494 02/19/14 07860 PROTECTIVE LIFE INSURANCE CO A000067 01/10/14 LIFE INSURANCE PREMIUM 1,218.88 TRAVEL EXPENSES (1/22/14-1/24/14)1,063.39 1,063.39 2039493 02/19/14 13059 PRIORITY BUILDING SERVICES 38060 01/01/14 JANITORIAL SERVICES (JAN 2014) 01/21/14 LPD-DCHLOR TABLETS 1,760.00 1,760.00 2039370 02/05/14 03351 POSADA, ROD 012214012414 02/03/14 405.11 495952 01/31/14 POSTAGE MACHINE SUPPLIES 207.46 2039492 02/19/14 02449 POLLARDWATER.COM I371724IN PETTY CASH 441.30 441.30 2039491 02/19/14 00053 PITNEY BOWES INC 2001718240 01/20/14 CHECK PRINTER MAINTENANCE (1/31/14-1/30/15) 2039490 02/19/14 00137 PETTY CASH CUSTODIAN 021814 02/18/14 54.10 2039489 02/19/14 08398 PEERLESS MATERIALS COMPANY 36220 01/31/14 RAGS 259.20 259.20 723.60 723.60 2039488 02/19/14 05497 PAYPAL INC 29573695 01/31/14 PHONE PAYMENT SVCS (JAN 2014)54.10 INVENTORY 3,035.72 3,035.72 2039369 02/05/14 01002 PACIFIC PIPELINE SUPPLY 164533 01/10/14 INVENTORY 01/31/14 PRINTER SERVICES (1/30/14)79.00 79.00 2039487 02/19/14 01002 PACIFIC PIPELINE SUPPLY 164035 01/29/14 139.97 669920862001 01/09/14 OFFICE SUPPLIES 69.07 2039486 02/19/14 03149 ON SITE LASER LLC 48217 GARDEN TOUR (10/29/13)295.00 295.00 2039368 02/05/14 00510 OFFICE DEPOT INC 669996177001 01/10/14 INKJET CARDTRIDGES 60163 01/10/14 PH ANALYZER INSTALL 3,447.00 2039367 02/05/14 15394 NEVERTARDY TRANSIT 505 10/23/13 10,808.27 10,808.27 2039366 02/05/14 13690 NEAL ELECTRIC CORP 60164 01/10/14 AERATION PROBE 4,890.00 BI-WEEKLY DEFERRED COMP PLAN 10,125.10 10,125.10 2039413 02/12/14 03523 NATIONAL DEFERRED COMPENSATION Ben2432549 02/13/14 BI-WEEKLY DEFERRED COMP PLAN 2039331 01/29/14 03523 NATIONAL DEFERRED COMPENSATION Ben2432360 01/30/14 340269428 02/03/14 UNIFORM SERVICES 89.00 340268355 01/27/14 UNIFORM SERVICES 88.93 340269424 02/03/14 UNIFORM SERVICES 114.17 340268121 01/20/14 UNIFORM SERVICES 89.17 340268117 01/20/14 UNIFORM SERVICES 116.57 340268351 01/27/14 UNIFORM SERVICES 114.17 340268352 01/27/14 UNIFORM SERVICES 428.09 340269425 02/03/14 UNIFORM SERVICES 397.63 Page 8 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,629.72 151,934.61 46,750.38 27,742.41 3,164.15 DEIONIZED WATER TANKS 124.80 124.80203937502/05/14 15048 SIEMENS WATER TECHNOLOGIES LLC 901534848 01/01/14 1,790.37 901412559 09/26/13 MICRO 2000 PARTS 1,112.11 901391434 09/10/13 MICRO 2000 PARTS 261.67 PUMP STATION UPGRADES (ENDING 1/31/14)4,750.00 4,750.00 2039504 02/19/14 15048 SIEMENS WATER TECHNOLOGIES LLC 901550447 01/16/14 BIOXIDE 043754AIN 01/14/14 UNLEADED FUEL 13,238.73 2039503 02/19/14 12904 SEPULVEDA CONSTRUCTION INC 16 02/11/14 97.19 2039502 02/19/14 14708 SC FUELS 043754RDM 01/14/14 DIESEL FUEL 14,503.68 6,624.64 6,624.64 2039501 02/19/14 06280 SANCHEZ, OMAR O0000000073 02/13/14 SAFETY BOOT REIMBURSEMENT 97.19 TEMPORARY LABOR (NOV 2013)6,803.91 6,803.91 2039500 02/19/14 07676 SAN MIGUEL FIRE PROTECTION 011514 01/15/14 TEMPORARY LABOR (DEC 2013) 012314 01/23/14 UTILITY EXPENSES (MONTHLY)865.05 2039335 01/29/14 07676 SAN MIGUEL FIRE PROTECTION 121813 12/18/13 UTILITY EXPENSES (MONTHLY)27,687.70 012414 01/24/14 UTILITY EXPENSES (MONTHLY)18,197.63 012414a 01/24/14 UTILITY EXPENSES (MONTHLY)33,088.83 2039374 02/05/14 00121 SAN DIEGO GAS & ELECTRIC 012014 01/20/14 UTILITY EXPENSES (MONTHLY)61,396.51 012814 01/28/14 UTILITY EXPENSES (MONTHLY)57,449.27 2039415 02/12/14 00121 SAN DIEGO GAS & ELECTRIC 020414 02/04/14 812.50 2039499 02/19/14 00247 SAN DIEGO DAILY TRANSCRIPT 417297 01/24/14 ADVERTISEMENT 158.20 158.20 125.00 125.00 2039498 02/19/14 00003 SAN DIEGO COUNTY WATER AUTH 0000000940 01/15/14 HOME WATER USE EVALUATION 812.50 HP COMPUTERS AND RAM 21,194.95 21,194.95 2039373 02/05/14 02586 SAN DIEGO COUNTY ASSESSOR 2013147 01/07/14 ASSESSOR DATA (MONTHLY) 2039372 02/05/14 05130 SAFARI MICRO INC 239531 01/09/14 3,089.89 2039334 01/29/14 05130 SAFARI MICRO INC 237975 11/06/13 HP 2GB RAM 593233-001 713.87 713.87 9.08 9.08 2039414 02/12/14 09148 S & J SUPPLY COMPANY INC S100032627002 01/14/14 INVENTORY 3,089.89 MILEAGE REIMBURSEMENT (11/16/13-1/15/14)3.36 3.36 2039333 01/29/14 15384 RUTH JIRON Ref002432297 01/27/14 UB Refund Cst #0000197472 020170 02/03/14 POSTCARDS 317.52 2039332 01/29/14 04542 ROBAK, MARK 111613011514 01/21/14 243.54 243.54 2039497 02/19/14 00766 RANROY PRINTING COMPANY 020066 01/16/14 POSTCARDS 1,312.20 BI-WEEKLY PERS CONTRIBUTION 159,575.53 159,575.53 2039496 02/19/14 01342 R J SAFETY SUPPLY CO INC 32108900 01/15/14 SAFETY SUPPLIES 2039371 02/05/14 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2432352 01/30/14 Page 9 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,000.00 780.00 399.90 147.13 147.13 CONSULTING SVCS FOR AUDIT (ENDING 12/31/13)2,995.79 2,995.79 2039510 02/19/14 03263 STRUNKS JR, DALE O0000000072 02/13/14 SAFETY BOOT REIMBURSEMENT 2039378 02/05/14 13045 STRADLING YOCCA CARLSON &2855300006 01/13/14 1,352.50 2039377 02/05/14 00320 STANDARD REGISTER COMPANY 4140177 01/13/14 TONER CARTRIDGE 474.38 474.38 350.00 350.00 2039376 02/05/14 02354 STANDARD ELECTRONICS 19594 01/07/14 MONTHLY MONITORING (JAN 2013)1,352.50 PROPERTY DEDUCTIBLE 500.00 500.00 2039509 02/19/14 15413 ST GREGORY OF NYSSA GREEK 021014 02/10/14 REFUND SBE PROCESSING FEE 2039508 02/19/14 03516 SPECIAL DISTRICT RISK PD13140056470001 02/14/14 978051 01/13/14 PORTABLE TOILET RENTAL (1/10/14-2/6/14)79.98 978946 01/23/14 PORTABLE TOILET RENTAL (1/22/14-2/18/14)79.98 978050 01/13/14 PORTABLE TOILET RENTAL (1/10/14-2/6/14)79.98 978049 01/13/14 PORTABLE TOILET RENTAL (1/10/14-2/6/14)79.98 98.17 98.17 2039421 02/12/14 03760 SPANKY'S PORTABLE SERVICES INC 978048 01/13/14 PORTABLE TOILET RENTAL (1/11/14-2/7/14)79.98 AC MAINTENANCE (JAN 2014)1,068.00 1,068.00 2039339 01/29/14 03760 SPANKY'S PORTABLE SERVICES INC 977470 01/03/14 PORTABLE TOILET RENTAL (1/2/14-1/29/14) 2039507 02/19/14 15176 SOUTHCOAST HEATING &C52890 01/13/14 205.00 2039420 02/12/14 03103 SOUTHCOAST HEATING &C52768 01/09/14 AC MAINTENANCE 480.00 480.00 1,682.59 1,682.59 2039506 02/19/14 03103 SOUTHCOAST HEATING &C52900 01/13/14 IT AC MAINTENANCE (JAN 2014)205.00 COPIER MAINTENANCE (DEC 2013)1,682.59 1,682.59 2039505 02/19/14 11618 SOUTH COAST COPY SYSTEMS AR144491 01/30/14 COPIER MAINTENANCE (FEB 2014) 2039338 01/29/14 11618 SOUTH COAST COPY SYSTEMS AR140473 11/25/13 4,000.00 2039337 01/29/14 15391 SOUTH BAY FAMILY YMCA Ref002432304 01/27/14 UB Refund Cst #0000206344 53.46 53.46 137.32 137.32 2039419 02/12/14 13327 SILVA-SILVA INTERNATIONAL 1402 02/01/14 PROJECT CONSULTANT (JAN 2014)4,000.00 UB Refund Cst #0000193927 1,766.61 1,766.61 2039418 02/12/14 02660 SILVA, GABRIEL O0000000068 02/06/14 SAFETY BOOT REIMBURSEMENT 4A31013 01/31/14 LABORATORY ANALYSIS (1/23/14)260.00 2039417 02/12/14 15405 SIERRA PACIFIC WEST INC Ref002432481 02/10/14 LABORATORY ANALYSIS (1/29/14)260.00 4A24003 01/24/14 LABORATORY ANALYSIS (1/15/14)260.00 3L30043 12/30/13 LABORATORY ANALYSIS (12/18/13)220.00 2039416 02/12/14 15307 SIERRA ANALYTICAL LABS INC 4B06029 02/06/14 260.00 4A15040 01/15/14 LABORATORY ANALYSIS (1/2/14)260.00 4A09004 01/09/14 LABORATORY ANALYSIS (12/26/13)260.00 2039336 01/29/14 15307 SIERRA ANALYTICAL LABS INC 4A15042 01/15/14 LABORATORY ANALYSIS (1/8/14) Page 10 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 3,850.00 153.68 16.36 21,636.17 6,319.78 2039345 01/29/14 15388 VERTOM LLC Ref002432301 01/27/14 UB Refund Cst #0000204245 1,878.19 1,878.19 8.70 8.70 2039429 02/12/14 03329 VERIZON WIRELESS 9718767033 01/21/14 VERIZON SERVICES (12/22/13-1/21/14)6,319.78 BI-WEEKLY 401A PLAN 8,611.01 8,611.01 2039428 02/12/14 15410 VELINDA LARA Ref002432487 02/10/14 UB Refund Cst #0000205372 2039427 02/12/14 06414 VANTAGEPOINT TRANSFER AGENTS Ben2432545 02/13/14 12,809.35 2039344 01/29/14 06414 VANTAGEPOINT TRANSFER AGENTS Ben2432356 01/30/14 BI-WEEKLY 401A PLAN 10,493.33 10,493.33 12,848.67 12,848.67 2039426 02/12/14 01095 VANTAGEPOINT TRANSFER AGENTS Ben2432547 02/13/14 BI-WEEKLY DEFERRED COMP PLAN 12,809.35 CAL CARD EXPENSES (MONTHLY)108.35 108.35 2039343 01/29/14 01095 VANTAGEPOINT TRANSFER AGENTS Ben2432358 01/30/14 BI-WEEKLY DEFERRED COMP PLAN MW1213 12/23/13 CAL CARD EXPENSES (MONTHLY)208.05 2039380 02/05/14 07674 US BANK E000060 01/22/14 CAL CARD EXPENSES (MONTHLY)20,515.10 SC1213 12/23/13 CAL CARD EXPENSES (MONTHLY)913.02 2039342 01/29/14 07674 US BANK O0000000067 12/23/13 1,627.48 2039515 02/19/14 07674 US BANK 012214MSSC 01/22/14 CAL CARD EXPENSES (MONTHLY)1,305.28 1,305.28 1,875.00 1,875.00 2039425 02/12/14 07674 US BANK E000061 01/22/14 CAL CARD EXPENSES (MONTHLY)1,627.48 UNDERGROUND ALERTS (MONTHLY)339.00 339.00 2039424 02/12/14 15392 UP N DOWN SCAFFOLD CO INC 2301 01/24/14 SCAFFOLDING 2039514 02/19/14 00427 UNDERGROUND SERVICE ALERT OF 120140472 02/01/14 EXPENSE REIMBURSEMENT (JAN 2014)13.00 010114013114 02/03/14 MILEAGE REIMBURSEMENT (JAN 2014)3.36 18070513 06/11/13 MILEAGE REIMBURSEMENT (MAY 2013)75.71 2039423 02/12/14 14177 THOMPSON, MITCHELL 010114013114a 02/03/14 40.50 40.50 2039379 02/05/14 14177 THOMPSON, MITCHELL 18070413 05/01/13 MILEAGE REIMBURSEMENT (APR 2013)77.97 GRIT WASHER INSTALL 14,800.00 14,800.00 2039422 02/12/14 15402 TERRI STAPLES Ref002432478 02/10/14 UB Refund Cst #0000091380 2039513 02/19/14 03608 TELLIARD CONSTRUCTION OWD22014 01/08/14 1,470.00 2492 01/28/14 SCADA ENHANCEMENT 1,260.00 2491 01/28/14 SCADA ENHANCEMENT 1,120.00 UB Refund Cst #0000196182 7.92 7.92 2039512 02/19/14 02376 TECHKNOWSION INC 2490 01/23/14 14 CONNECTION PROGRAMMING 2039341 01/29/14 15379 SYLVIA CHAVEZ Ref002432292 01/27/14 22,257.82 2039340 01/29/14 15386 SUSET GOMEZ Ref002432299 01/27/14 UB Refund Cst #0000203671 8.53 8.53 2039511 02/19/14 12809 STUTZ ARTIANO SHINOFF 94123 01/29/14 LEGAL SERVICES (DEC 2013)22,257.82 Page 11 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 1/23/2014 - 2/19/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 350.00 Amount Pd Total:1,149,461.49 Check Grand Total:1,149,461.49216 Checks 585.32 2039518 02/19/14 15415 XPERA GROUP 021414 02/14/14 BIA MEETING 25.00 25.00 2,145.96 2,145.96 2039517 02/19/14 03283 WILSON BOHANNAN PADLOCK CO 0106487IN 01/29/14 LOCKS 585.32 MILEAGE/MEETING EXP REIMBURSEMENT (JAN 2014)374.80 374.80 2039516 02/19/14 02849 WHITAKER BROTHERS BUSINESS INV0225727 01/20/14 PAPER FOLDER 2039381 02/05/14 03781 WATTON, MARK 010114013114 02/03/14 CERTIFICATION REVIEW TRAINING 175.00 O0000000071 02/10/14 CERTIFICATION REVIEW TRAINING 175.00 2039430 02/12/14 15399 VISTA IRRIGATION DISTRICT O0000000070 02/10/14 Page 12 of 12