HomeMy WebLinkAbout05-16-11 Board PacketOTAY WATER DISTRICT AND
OTAY SERVICE CORPORATION
SPECIAL MEETING OF THE BOARD OF DIRECTORS
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY,CALIFORNIA
MONDAY
May 16,2011
3:30 P.M.
AGENDA
1.ROLL CALL
2.PLEDGE OF ALLEGIANCE
3.APPROVAL OF AGENDA
4.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
ACTION ITEMS
5.ADOPT RESOLUTION NO.4174 TO AMEND THE 1996 TRUST AGREEMENT
FOR THE 1996 VARIABLE RATE DEMAND CERTIFICATES OF PARTICIPATION
TO ALLOW FOR RESCISSION OF A MANDATORY TENDER NOTICE SENT IN
CONNECTION WITH SUBSTITUTION OF THE EXISTING LETTER OF CREDIT
SECURING THE CERTIFICATES (BEACHEM)
6.ADJOURN OTAY WATER DISTRICT SPECIAL BOARD MEETING
7.CONVENE OTAY SERVICE CORPORATION SPECIAL BOARD MEETING
8.ADOPT RESOLUTION NO.1007 TO AMEND THE 1996 TRUST AGREEMENT
FOR THE 1996 VARIABLE RATE DEMAND CERTIFICATES OF PARTICIPATION
TO ALLOW FOR RESCISSION OF A MANDATORY TENDER NOTICE SENT IN
CONNECTION WITH SUBSTITUTION OF THE EXISTING LETTER OF CREDIT
SECURING THE CERTIFICATES (BEACHEM)
9.ADJOURN OTAY SERVICE CORPORATION SPECIAL BOARD MEETING
10.CONVENE OTAY WATER DISTRICT SPECIAL BOARD MEETING
1
WORKSHOP
11.APPROVE FISCAL YEARS 2012-2014 STRATEGIC PLAN (STEVENS)
12.ADOPT RESOLUTION NO.4173,APPROVING THE FISCAL YEAR 2011-2012
OPERATING AND CAPITAL BUDGETS;APPROVE FUND TRANSFERS FOR
POTABLE,RECYCLED,AND SEWER;APPROVE WATER AND SEWER RATE
CHANGES ON ALL BILLING CYCLES THAT BEGIN IN CALENDAR YEAR 2012;
ADOPT ORDINANCE NO.530 AMENDING APPENDIX A OF THE CODE OF OR-
DINANCES WITH THE PROPOSED WATER AND SEWER RATE CHANGES,
AND SECTION 53,FEES,RATES,CHARGES AND CONDITIONS FOR SEWER
SERVICE;AND OBTAIN APPROVAL OF THE RATE INCREASE NOTICES
(BEACHEM)
13.ADJOURNMENT
All items appearing on this agenda,whether or not expressly listed for action,may be
deliberated and may be subject to action by the Board.
The Agenda,and any attachments containing written information,are available at the
District's website at www.otaywater.gov.Written changes to any items to be considered at
the open meeting,or to any attachments,will be posted on the District's website.Copies
of the Agenda and all attachments are also available through the District Secretary by
contacting her at (619)670-2280.
If you have any disability which would require accommodation in order to enable you to
participate in this meeting,please call the District Secretary at 670-2280 at least 24 hours
prior to the meeting.
Certification of Posting
I certify that on May 12,2011,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 24 hours in advance of the special meeting of the Board of Directors (Government
Code Section §54954.2).
Executed at Spring Valley,California on May 12,2011.
2
STAFF REPORT
AGENDA ITEM 5
TYPE MEETING:
SUBMITTED BY:
spec~~~~~Meeting
Josepk~~Beachem,
Chief Financial Officer
MEETING DATE:
W.O.lG.F.NO:
May 16,2011
DIV.NO.All
APPROVED BY:
(Chief)
APPROVED BY:
(Ass!.GM):
German ~J~rez,Assistant
Admi~tion
General Manager,Finance and
SUBJECT:Adopt Resolution No.4174 to Amend the 1996 Trust Agreement
GENERAL MANAGER'S RECOMMENDATION:
That the Board adopts Resolution No.4174 to amend the 1996
Trust Agreement to provide for rescission of the mandatory
tender notice.
COMMITTEE ACTION:
None.
PURPOSE:
To obtain approval by the Board to amend the Trust Agreement for
the 1996 Variable Rate Demand Certificates of Participation to
allow for rescission of a mandatory tender notice sent in
connection with substitution of the existing letter of credit
securing the Certificates.
ANALYSIS:
The District's 1996 Variable Rate Demand Certificates of
Participation (1996 COPs)are secured by a letter of credit
issued by Heleba Landesbank Hessen-Thuringen Girozentrale
(Helaba),which was scheduled to expire on June 10,2011.Staff
has obtained a replacement letter of credit from Union Bank,
N.A.,however,due to time constraints,the Union Bank letter of
credit will not be in place prior to June 3,2011,the date upon
which the trustee would have been required to draw on the
existing Heleba letter of credit.A notice of such draw was
required to be sent to Certificate owners on May 4,2011 (30
days prior to the draw date).Subsequent to the mailing of the
notice,Heleba agreed to a 30 day extension of the existing
letter of credit to provide an orderly substitution of the Union
Bank letter of credit.
When the letter of credit is substituted,the existing 1996 COPs
owners are required to tender all of their 1996 COPs to the
trustee and the Remarketing Agent (JP Morgan)will remarket the
entire issue to the new investors.If the notice regarding the
June 3 tender is not rescinded,the Remarketing Agent would be
required to remarket the entire issue on June 3 with the
existing letter of credit,and then remarket the entire issue
three weeks later on June 30 once the Union Bank letter of
credit is in place.This will add duplicate costs of
remarketing and may cause certain existing investors to drop out
of the June 3 remarketing.A slight increase in interest rates
is possible if that occurs.
The Trust Agreement for the 1996 COPs does not provide for a
rescission of the notice that was sent out on May 4.Approval
of an amendment to the Trust Agreement is required by the
parties thereto to add this provision and provide for an orderly
substitution of the letter of credit at the end of June.The
District and the Otay Service Corporation are both parties to
the Trust Agreement.The resolutions presented to both the Otay
Board and the Board of Directors of the Service Corporation for
adoption of the amendment to the Trust Agreement to include
provisions for rescission of the notice.
Staff will present additional resolutions at the June 1st Board
Meeting for the remaining actions required of the Otay Board and
the Board of Directors of the Service Corporation to provide for
the substitution of the Union Bank letter of credit.
,_c,.,'_.•...'o.,,'-_.,.~
FISCAL IMPACT:>~~~C"~/'/
None.
STRATEGIC GOAL:
Sound financing of District facilities.
LEGAL IMPACT:
None.
General Manager
Attachments:
A)Resolution No.4174
B)First Supplemental Trust Agreement
Attachment A
RESOLUTION NO.4174
RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY
WATER DISTRICT APPROVING AN AMENDMENT TO THE
TRUST AGREEMENT FOR THE VARIABLE RATE DEMAND
CERTIFICATES OF PARTICIPATION (1996 CAPITAL
PROJECTS)
WHEREAS,the Otay Water District (the "District")and the Otay Service Corporation (the
"Corporation")have previously entered into an Installment Sale Agreement dated as ofJune 1,1996
and that certain Tmst Agreement dated as ofJune 1,1996 (the "Tmst Agreement")by and among the
District,the Corporation and The Bank of New York Mellon Tmst Company,N.A.(as successor
tmstee to Chemical Tmst Company of California)(the "Tmstee")pursuant to which the Otay Water
District Variable Rate Demand Certificates of Participation (1996 Capital Projects)(the
"Certificates")were executed and delivered;and
WHEREAS,because the letter ofcredit securing the repayment of the Certificates under the
Tmst Agreement is expiring the Tmstee was required to mail a notice of mandatory tender of the
Certificates on May 4,2011 calling for a mandatory tender on June 3,2011;and
WHEREAS,the District has been advised that the provider ofthe existing letter ofcredit has
agreed to extend the term ofthe letter ofcredit for approximately one month;and
WHEREAS,the District desires to cause a substitute letter of credit (the "Letter of Credit")
from Union Bank,N.A.(the "Bank")to be delivered to the Tmstee to replace the existing letter of
credit;and
WHEREAS,in light of the extension of the existing letter of credit the District desires to
amend the Tmst Agreement to allow for the notice of the June 3,2011 mandatory tender to be
rescinded and to allow the mandatory tender to be delayed to coincide with the delivery of the Letter
ofCredit from the Bank;and
WHEREAS,there has been presented to the District the form ofthe First Supplemental Tmst
Agreement dated as ofMay 25,2011 by and among the District,the Corporation and the Tmstee (the
"First Supplemental Tmst Agreement")for approval:
WHEREAS,the Board of Directors has determined that the execution and delivery of the
First Supplemental Tmst Agreement to be desirable and in the best interests of the District and will
not adversely affect the interests ofthe owners ofthe Certificates;
NOW,THEREFORE,the Board of Directors of the Otay Water District does hereby
RESOLVE,DETERMINE and ORDER as follows:
Section 1.Each of the above recitals is tme and correct and is adopted by the Board of
Directors as the legislative body ofthe District.
Section 2.The forn1 ofthe First Supplemental Tmst Agreement is hereby approved and
each of the President of the Board of Directors,the Vice President of the Board of Directors,the
DOCSOC/1487356v2/2000n-0004
Treasurer,the General Manager,the Chief Financial Officer,and their written designees (each an
"Authorized Officer"and collectively the "Authorized Officers"),acting alone,is hereby authorized
and directed to execute and deliver the First Supplemental Trust Agreement in the name of and on
behalf of the District,in substantially the form and content now before this meeting,but with such
changes,modifications,additions and deletions therein as shall be deemed necessary,desirable or
appropriate by the Authorized Officer or Authorized Officers executing the same,such approval to
be conclusively evidenced by the execution and delivery thereof by one or more of the Authorized
Officers.
Section 3.The Authorized Officers are hereby authorized and directed,to do any and all
things and to execute and deliver any and all documents,including amendments to any ofthe existing
documents and agreements relating to the Certificates,which they may deem necessary or advisable
in order to consummate the execution and delivery of the First Supplemental Trust Agreement and
otherwise to effectuate the purposes ofthis resolution.
Section 4.This resolution shall take effect upon its adoption.
ADOPTED,SIGNED and APPROVED at a regular meeting of the District this 16th day of
May,2011.
President ofthe Board ofDirectors ofthe Otay Water
District
ATTEST:
Secretary ofthe
Board ofDirectors ofthe
Otay Water District
2
DOCSOC/1487356v2/200077-0004
STATE OF CALIFORNIA )
)ss
COUNTY OF SAN DIEGO )
I,,Secretary of the Board of Directors of the Otay Water District,do
hereby certify that the foregoing Resolution No.was duly adopted by the Board of
Directors of said District at a regular meeting thereof held on the 16th day of May,2011,and that it
was so adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
(SEAL)
DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:
Secretary ofthe Board ofDirectors
ofthe Otay Water District
STATE OF CALIFORNIA )
)ss
COUNTY OF SAN DIEGO )
I,,Secretary of the Board of Directors ofthe Otay Water District,
do hereby certify that the above and foregoing is a full,tme and correct copy of Resolution No.
____ofsaid Board,and that the same has not been amended or repealed.
DATED:
(SEAL)
_______,2011.
Secretary ofthe Board ofDirectors
ofthe Otay Water District
3
DOCSOC/1487356v2/200077-0004
FIRST SUPPLEMENTAL TRUST AGREEMENT
Dated as of May 25,2011
by and among
THE BANK OF NEW YORK MELLON TRUST COMPANY,N.A.,
as Trustee
and the
OTAY SERVICE CORPORATION
and the
OTAY WATER DISTRICT
relating to the
OTAY WATER DISTRICT
$15,400,000
VARIABLE RATE DEMAND CERTIFICATES OF PARTICIPATION
(1996 CAPITAL PROJECTS)
DOCSOC/1487405v2/2000n-0004
Attachment B
FIRST SUPPLEMENTAL TRUST AGREEMENT
This FIRST SUPPLEMENTAL TRUST AGREEMENT (this "First Supplement")made and
entered into as of May 25,2011,by and among The Bank of New York Mellon Trust Company,
N.A.,a national banking association organized under the laws of the United States,successor to
Chemical Trust Company of California,as trustee (the "Trustee"),the Otay Service Corporation,a
nonprofit public benefit corporation duly organized and existing under the laws of the State of
California (the "Corporation"),and the Otay Water District,a water district duly organized and
existing under the Constitution and laws of the State of California (the "District")amends,in part,
the Trust Agreement dated as of June 1,1996 (the "Original Trust Agreement and together with this
First Supplemental Trust Agreement,the "Trust Agreement");
WITNESSE TH:
WHEREAS,the Corporation and the City have previously authorized the preparation,sale
and delivery of the Otay Water District Variable Rate Demand Certificates of Participation (1996
Capital Projects)(the "Certificates")which were executed and delivered pursuant to the Original
Trust Agreement;and
WHEREAS,the District has requested that the Corporation and the Trustee enter into this
First Supplement to amend Section 4.12(c)ofthe Original Trust Agreement to amend the manner by
which notice of a mandatory tender of the Certificates is provided to Owners ofthe Certificates and
to allow for notices of mandatory tender to be rescinded where the provider of the existing Facility
agrees to extend the term ofthe Facility and to make certain other changes as described herein;and
WHEREAS,the Board of Directors of the District and the Board of Directors of the
Corporation have authorized the execution and delivery ofthis First Supplement;and
WHEREAS,the District and Corporation have determined that it is necessary and desirable
to amend the Original Trust Agreement as set forth herein,and that the amendment does not
adversely affect the interests ofthe Owners ofthe Certificates;and
WHEREAS,as required by Section 9.01(b)(2)and (4)of the Original Trust Agreement,the
District and the Corporation have received the written consent ofthe Bank to this First Supplement;
NOW,THEREFORE,in consideration of the promises and mutual agreements herein
contained,the parties hereto do hereby agree as follows:
Section 1.Amendment to Section 4.12(c)of the Trust Agreement.In accordance
with the provisions of Section 9.01(b)(2)and (4)of the Original Trust Agreement,Section 4.12(c)of
the Original Trust Agreement is deleted in its entirety and amended to read as follows:
(c)Notice to Owners.Notice of mandatory tender of Certificates shall be given by
mail by the Registrar at the direction of the Trustee to the Owners of the Certificates at least fifteen
(15)days prior to the mandatory tender date.A copy of such notice shall be sent to the District,the
Tender Agent,the Bank and the Remarketing Agent.Notice having been so given,such mandatory
tender shall occur on the date provided in such notice whether or not a Substitute Facility is provided
after such notice has been given;provided,however,that with respect to a mandatory tender under
Section 4.12(a)(ii),if the Trustee receives an extension of an expiring Facility at least five (5)days
2
DOCSOC/1487405v2/200077-0004
prior to the mandatory tender date,then the mandatory tender shall not occur and the Registrar,at the
direction of the Tmstee,shall mail notice to the Owners of the Certificates stating that the existing
Facility has been extended to the date set forth in the notice,the mandatory tender has been cancelled
and the Certificates will continue to bear interest in the mode then in effect.
Section 2.Amendment to Section 11.13 of the Trust Agreement.In accordance with
the provisions of Section 9.01(b)(2)and (4)of the Original Tmst Agreement,Section 11.13 of the
Original Trust Agreement is amended by adding the following at the end of Section 11.13:
Notwithstanding the foregoing or any other provision ofthis Tmst Agreement,any person or
entity entitled to notice hereunder may agree to receive notice electronically rather than by mail and
may waive the requirement for notice hereunder or agree to a shorter notice period than set forth in
this Tmst Agreement.
Section 3.Defined Terms.All capitalized terms not defined herein shall have the
meaning set forth in the Original Tmst Agreement.
Section 4.Execution in Counterparts.This First Supplement may be executed in
several counterparts,each ofwhich shall be an original and all ofwhich shall constitute but one and
the same instmment.
Section 5.Governing Law.This First Supplement shall be constmed and govemed in
accordance with the laws ofthe State ofCalifomia.
Section 4.No Other Amendments.Except as amended by Section 1 above,all other
provisions ofthe Tmst Agreement shall remain in full force and effect.
3
DOCSOC/1487405v21200077-0004
IN WITNESS WHEREOF,the parties have executed this First Supplement as ofthe date and
year first above written.
THE BANK OF NEW YORK MELLON TRUST
COMPANY,N.A.,as Trustee
By:
Its:Authorized Officer
OTAY SERVICE CORPORATION
By:
Its:Treasurer
ATTEST:
Secretary
OTAY WATER DISTRICT
By:
Its:General Manager
ATTEST:
Secretary
4
DOCSOC/1487405v2/200077-0004
STAFF REPORT
AGENDA ITEM 8
SUBMITTED BY:
TYPE MEETING:Special Board Meeting of the
Otay ~yi~e~o;~oration
Jose~,
Chief Financial Officer
MEETING DATE:
W.O.lG.F.NO:
May 16,2011
DIV.NO.All
APPROVED BY:
(Chief)
APPROVED BY:
(Ass!.GM):
SUBJECT:
German A1V~Z-Assistant General Manager,Finance andAdminist~
Adopt Resolution No.1007 to Amend the 1996 Trust Agreement
GENERAL MANAGER'S RECOMMENDATION:
That the Board adopts Resolution No.1007 to amend the 1996
Trust Agreement to provide for rescission of the mandatory
tender notice.
COMMITTEE ACTION:
None.
PURPOSE:
To obtain approval by the Board to amend the Trust Agreement for
the 1996 Variable Rate Demand Certificates of Participation to
allow for rescission of a mandatory tender notice sent in
connection with substitution of the existing letter of credit
securing the Certificates.
ANALYSIS:
The District's 1996 Variable Rate Demand Certificates of
Participation (1996 COPs)are secured by a letter of credit
issued by Heleba Landesbank Hessen-Thuringen Girozentrale
(Helaba),which was scheduled to expire on June 10,2011.Staff
has obtained a replacement letter of credit from Union Bank,
N.A.,however,due to time constraints,the Union Bank letter of
credit will not be in place prior to June 3,2011,the date upon
which the trustee would have been required to draw on the
existing Heleba letter of credit.A notice of such draw was
required to be sent to Certificate owners on May 4,2011 (30
days prior to the draw date).Subsequent to the mailing of the
notice,Heleba agreed to a 30 day extension of the existing
letter of credit to provide an orderly substitution of the Union
Bank letter of credit.
When the letter of credit is substituted,the existing 1996 COPs
owners are required to tender all of their 1996 COPs to the
trustee and the Remarketing Agent (JP Morgan)will remarket the
entire issue to the new investors.If the notice regarding the
June 3 tender is not rescinded,the Remarketing Agent would be
required to remarket the entire issue on June 3 with the
existing letter of credit,and then remarket the entire issue
three weeks later on June 30 once the Union Bank letter of
credit is in place.This will add duplicate costs of
remarketing and may cause certain existing investors to drop out
of the June 3 remarketing.A slight increase in interest rates
is possible if that occurs.
The Trust Agreement for the 1996 COPs does not provide for a
rescission of the notice that was sent out on May 4.Approval
of an amendment to the Trust Agreement is required by the
parties thereto to add this provision and provide for an orderly
substitution of the letter of credit at the end of June.The
District and the Otay Service Corporation are both parties to
the Trust Agreement.The resolutions presented to both the Otay
Board and the Board of Directors of the Service Corporation for
adoption of the amendment to the Trust Agreement to include
provisions for rescission of the notice.
Staff will present additional resolutions at the June 1st Board
Meeting for the remaining actions required of the Otay Board and
the Board of Directors of the Service Corporation to provide for
the substitution of the Union Bank letter of credit.
FISCAL IMPACT:~
None.
STRATEGIC GOAL:
Sound financing of District facilities.
LEGAL IMPACT:
None.
General JfKukbt
Attachments:
A)Resolution No.1007
B)First Supplemental Trust Agreement
Attachment A
RESOLUTION NO.1007
RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY
SERVICE CORPORATION APPROVING AN AMENDMENT TO
THE TRUST AGREEMENT FOR THE VARIABLE RATE
DEMAND CERTIFICATES OF PARTICIPATION (1996 CAPITAL
PROJECTS)
WHEREAS,the Otay Water District (the "District")and the Otay Service Corporation (the
"Corporation")have previously entered into an Installment Sale Agreement dated as of June 1,1996
and that certain Trust Agreement dated as ofJune 1,1996 (the "Trust Agreement")by and among the
District,the Corporation and The Bank of New York Mellon Trust Company,N.A. (as successor
trustee to Chemical Trust Company of California)(the "Trustee")pursuant to which the Otay Water
District Variable Rate Demand Certificates of Participation (1996 Capital Projects)(the
"Certificates")were executed and delivered;and
WHEREAS,because the letter of credit securing the repayment ofthe Certificates under the
Trust Agreement is expiring the Trustee was required to mail a notice of mandatory tender of the
Certificates on May 4,2011 calling for a mandatory tender on June 3,2011;and
WHEREAS,the District has advised the Corporation that the provider of the existing letter of
credit has agreed to extend the term ofthe letter ofcredit for approximately one month;and
WHEREAS,the District has advised the Corporation that it desires to cause a substitute letter
of credit (the "Letter of Credit")from Union Bank,N.A.(the "Bank")to be delivered to the Trustee
to replace the existing letter ofcredit;and
WHEREAS,in light of the extension of the existing letter of credit the District has advised
the Corporation that it desires to amend the Trust Agreement to allow for the notice of the June 3,
2011 mandatory tender to be rescinded and to allow the mandatory tender to be delayed to coincide
with the delivery of the Letter of Credit from the Bank;and
WHEREAS,there has been presented to the Corporation the form of the First Supplemental
Trust Agreement dated as of May 25,2011 by and among the District,the Corporation and the
Trustee (the "First Supplemental Trust Agreement")for approval:
WHEREAS,the Board of Directors has determined that the adoption of this resolution is
consistent with the stated purposes ofthe Corporation to assist the District in its financing needs,is
desirable and will not adversely affect the interests ofthe owners ofthe Certificates;
NOW,THEREFORE,the Board of Directors of the Otay Service Corporation does hereby
RESOLVE,DETERMINE and ORDER as follows:
Section 1.Each ofthe above recitals is true and correct.
DOCSOC/1487388v2/200077-0004
Section 2.The First Supplemental Trust Agreement is hereby approved and each of the
President,Vice President,Executive Director,Chief Financial Officer or Assistant Chief Financial
Officer and their written designees (the "Authorized Officers"),acting alone,is hereby authorized
and directed to execute and deliver the First Supplemental Trust Agreement in the name of and on
behalf of the Corporation,in substantially the form now before this meeting,but with such changes,
modification,additions and deletions therein as shall be deemed necessary,desirable or appropriate
by the Authorized Officer or Authorized Officers executing the First Supplemental Trust Agreement.
Approval of such changes shall be conclusively evidenced by the execution and delivery of the First
Supplemental Trust Agreement by one or more Authorized Officers.
Section 3.The Authorized Officers are hereby authorized and directed,to do any and all
things and to execute and deliver any and all documents,including amendments to any ofthe existing
documents and agreements relating to the Certificates,which they may deem necessary or advisable
in order to consummate the execution and delivery ofthe First Supplemental Trust Agreement and
otherwise to effectuate the purposes ofthis resolution.
Section 4.This resolution shall take effect upon its adoption.
ADOPTED,SIGNED and APPROVED at a special meeting ofthe Corporation this 16th day
ofMay,2011.
President
ATTEST:
Secretary
2
DOCSOC/1487388v2/200077-0004
STATE OF CALIFORNIA )
)ss
COUNTY OF SAN DIEGO )
I,,Secretary of the Otay Service Corporation,do hereby certify that the
foregoing Resolution No.was duly adopted by the Board ofDirectors ofsaid Corporation
at a regular meeting thereof held on the 16th day of May,2011,and that it was so adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
(SEAL)
DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:
Secretary ofthe
Otay Service Corporation
STATE OF CALIFORNIA )
)ss
COUNTY OF SAN DIEGO )
I,,Secretary of the Otay Service Corporation,do hereby certify that the
above and foregoing is a full,true and correct copy of Resolution No.of said Board,and
that the same has not been amended or repealed.
DATED:
(SEAL)
_______,2011.
Secretary ofthe
Otay Service Corporation
3
DOCSOC/1487388v2/2000n-0004
FIRST SUPPLEMENTAL TRUST AGREEMENT
Dated as of May 25,2011
by and among
THE BANK OF NEW YORK MELLON TRUST COMPANY,N.A.,
as Trustee
and the
OTAY SERVICE CORPORATION
and the
OTAY WATER DISTRICT
relating to the
OTAY WATER DISTRICT
$15,400,000
VARIABLE RATE DEMAND CERTIFICATES OF PARTICIPATION
(1996 CAPITAL PROJECTS)
DOCSOCI1487405v2/2000n-0004
Attachment B
FIRST SUPPLEMENTAL TRUST AGREEMENT
This FIRST SUPPLEMENTAL TRUST AGREEMENT (this "First Supplement")made and
entered into as of May 25,2011,by and among The Bank of New York Mellon Trust Company,
N.A.,a national banking association organized under the laws of the United States,successor to
Chemical Trust Company of California,as trustee (the "Trustee"),the Otay Service Corporation,a
nonprofit public benefit corporation duly organized and existing under the laws of the State of
California (the "Corporation"),and the Otay Water District,a water district duly organized and
existing under the Constitution and laws of the State of California (the "District")amends,in pati,
the Trust Agreement dated as of June 1,1996 (the "Original Trust Agreement and together with this
First Supplemental Trust Agreement,the "Trust Agreement");
WITN E SSE T H:
WHEREAS,the Corporation and the City have previously authorized the preparation,sale
and delivery of the Otay Water District Variable Rate Demand Certificates of Participation (1996
Capital Projects)(the "Celiificates")which were executed and delivered pursuant to the Original
Trust Agreement;and
WHEREAS,the District has requested that the Corporation and the Trustee enter into this
First Supplement to amend Section 4.12(c)ofthe Original Trust Agreement to amend the manner by
which notice ofa mandatory tender ofthe Celiificates is provided to Owners of the Certificates and
to allow for notices of mandatory tender to be rescinded where the provider of the existing Facility
agrees to extend the term ofthe Facility and to make certain other changes as described herein;and
WHEREAS,the Board of Directors of the District and the Board of Directors of the
Corporation have authorized the execution and delivery ofthis First Supplement;and
WHEREAS,the District and Corporation have detelmined that it is necessary and desirable
to amend the Original Trust Agreement as set forth herein,and that the amendment does not
adversely affect the interests ofthe Owners ofthe Certificates;and
'WHEREAS,as required by Section 9.01(b)(2)and (4)of the Original Trust Agreement,the
District and the Corporation have received the written consent ofthe Bank to this First Supplement;
NOW,THEREFORE,in consideration of the promises and mutual agreements herein
contained,the parties hereto do hereby agree as follows:
Section 1.Amendment to Section 4.12(c)of the Trust Agreement.In accordance
with the provisions of Section 9.01(b)(2)and (4)of the Original Trust Agreement,Section 4.12(c)of
the Original Trust Agreement is deleted in its entirety and amended to read as follows:
(c)Notice to Owners.Notice of mandatory tender of Certificates shall be given by
mail by the Registrar at the direction of the Trustee to the Owners of the Certificates at least fifteen
(15)days prior to the mandatory tender date.A copy of such notice shall be sent to the DistIict,the
Tender Agent,the Bank and the Remarketing Agent.Notice having been so given,such mandatory
tender shall occur on the date provided in such notice whether or not a Substitute Facility is provided
after such notice has been given;provided,however,that with respect to a mandatory tender under
Section 4.12(a)(ii),if the Trustee receives an extension of an expiring Facility at least five (5)days
2
DOCSOC/1487405v2/200077-0004
prior to the mandatory tender date,then the mandatory tender shall not occur and the Registrar,at the
direction of the Trustee,shall mail notice to the Owners of the Certificates stating that the existing
Facility has been extended to the date set fOlih in the notice,the mandatory tender has been cancelled
and the Certificates will continue to bear interest in the mode then in effect.
Section 2.Amendment to Section 11.13 of the Trust Agreement.In accordance with
the provisions of Section 9.01(b)(2)and (4)of the Original Trust Agreement,Section 11.13 of the
Original Trust Agreement is amended by adding the following at the end ofSection 11.13:
Notwithstanding the foregoing or any other provision ofthis Trust Agreement,any person or
entity entitled to notice hereunder may agree to receive notice electronically rather than by mail and
may waive the requirement for notice hereunder or agree to a shorter notice period than set forth in
this Trust Agreement.
Section 3.Defined Terms.All capitalized telms not defined herein shall have the
meaning set forth in the Original Trust Agreement.
Section 4.Execution in Counterparts.This First Supplement may be executed in
several counterparts,each ofwhich shall be an original and all ofwhich shall constitute but one and
the same instrument.
Section 5.Governing Law.This First Supplement shall be construed and governed in
accordance with the laws ofthe State of California.
Section 4.No Other Amendments.Except as amended by Section 1 above,all other
provisions ofthe Trust Agreement shall remain in full force and effect.
3
DOCSOC/1487405v2/200077-0004
IN WITNESS WHEREOF,the parties have executed this First Supplement as ofthe date and
year first above written.
THE BANK OF NEW YORK MELLON TRUST
COMPANY,N.A.,as Trustee
By:
Its:Authorized Officer
OTAY SERVICE CORPORATION
By:
Its:Treasurer
ATTEST:
Secretary
OTAY WATER DISTRICT
By:
Its:General Manager
ATTEST:
Secretary
4
DOCSOC/1487405v2/200077-0004
AGENDA ITEM 11
5TAFF REPORT
DIV.NO.
May 16,2011
W.O./G.F.NO:
MEETING DATE:
SUBMITTED BY:
A:::~~::yB::~,Chief
Information ~nOlOgy and
Strategic Planning
APPROVED BY:Germ:;lqn1varez,Assistant General Manager,Administration and
(Chief)
Fina
TYPE MEETING:
APPROVED BY:
(Ass!.GM):
SUBJECT:Fiscal Years 2012-2014 Strategic Plan
GENERAL MANAGER'S RECOMMENDATION:
That the Board accept this informational report on the District's 2012-
2014 Strategic Plan.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To present the District's Fiscal Years 2012-2014 Strategic Plan.
ANALYSIS:
Attached is the draft Fiscal Years 2012-2014 Strategic Plan.As
part of the budget approval process,staff presents the draft
Strategic Plan for review and comment to the Board.In the past we
have utilized consulting assistance in developing our plans;
however,this year the Senior Management Team participated in
several internally guided strategic planning activities to
establish a well-rounded set of objectives.
The plan was developed from both a bottom up and a top down
perspective,To begin the process,the Senior Team carefully
reviewed the results and content of the FY09-11 plan.Next,each
chief met with their staff to get a collective list of ideas for
the plan.Once those ideas were reviewed and discussed,they were
filtered using a S.W.O.T analysis assessing the District's
~trengths,~eaknesses,Qpportunities,and !hreats.To further
focus the suggested Strategic Plan objectives,another analysis
examined the plan from the Balanced Scorecard perspective.The
intent was to ensure only strategic items that directly supported
the District's mission and vision made it into the plan.The
outcome was a highly focused and fine-tuned plan that touches all
areas of the District and moves the organization in the right
direction.
This plan is composed of four areas of focus (Customer,Financial,
Business Process,and Learning &Growth).Each area has
strategies,goals,and objectives defined to meet our future
needs.The team will finalize detailed measurement strategies to
accomplish the objectives once the plan is approved.
The existing Performance measures have been reviewed and
incorporated into the new plan,and are listed in the attached
document.Staff expects that as we modify and improve business
practices measures will also be adjusted and updated.Each
process evaluation will provide us with valuable metrics that
provide management with useful information required to make
educated decisions.
All strategic plan items have budget support in the FY2012-2014
budgets.Approval of the budget will fully fund the strategic
plan objectives.
In conclusion,District staff participated in the development of
this plan and are enthusiastic and supportive.The approval and
execution of this plan will achieve the Board's and General
Manager's vision to create:
"A District that is innovative in providing water services
at affordable rates,with a reputation for outstanding
customer service."
FISCAL IMPACT:
None at this time.
STRATEGIC GOAL:
The Strategic Plan is the core document for all District planning.
LEGAL IMPACT:
ATTACHMENT A
SUBJECTIPROJECT:Fiscal Years 2012-2014 Draft Strategic Plan
COMMITTEE ACTION:
This item is presented as part of a Board workshop which
substitutes for the Board Committee review process.No
committee actions occurred.
Mission &Vision
MISSION
To provide high value water and wastewater services to the customers ofthe Otay
Water District,in a professional,effective and efficient manner.
VISION
A District that is innovative in providing water services at affordable rates,with a
reputation for outstanding customer service.
~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.
EMPLC)YEES:
We see each individual as unique and important.We value diversity and open
communication to promote fairness,dignity and respect.
-
Key Challenge
Our key District challenge is to add increased value by improving our core
business processes.From a water supply perspective,this means determining
the optimum mix ofwater supply,treatment,and delivery solutions for our
customers.From a daily operating perspective,efficiency improvements have
become the primary source of competitive advantage and cost optimization for
utilities.Adding value from this perspective means the entire team focusing
on not only the highest priority goals but also examining the details ofwhat
we do every day and be willing to alter how we do it if it makes a positive
difference.Our employees voice a high degree of personal and professional
satisfaction with our direction and the entire team is committed to meeting this
key challenge with distinction.
Strategic PlanniIlg and IIlforITlation Techllology
(Geoff Stevens)
•Assess key business processes and implement relevant opportunities
for improvement
•Continue development of the Asset Management program
•Utilize information systems to improve integrity of customer related
data
Optimize the use of SharePoint by implementing electronic forms,
personnel services,and automating the staff reports business process
Ad~minis,trative Services
(Rom Sarno)
•Assess key business processes and implement relevant opportunities for
improvement
•Identify management initiatives for represented/unrepresented employees in
preparation for negotiations that will provide more efficiencies and more
flexibility
•Evaluate policies and procedures as appropriate to streamline processes and
ensure the District remains competitive
Finance
(Joe Beachem)
Assess key business processes and implement relevant opportunities for
improvement
Enhance communications with customers using our new phone system
•Increase customers employing online bill payment
Engineering
(Rod Posada)
Assess key business processes and implement relevant opportunities for
improvement
Strengthen CIP Planning,Budgeting,and Cost Tracking processes
•Prepare and implement a Waste Water Management Plan
Implement the recommendations within the Integrated Water
Resource Plan (IRP)to acquirealternative potable and recycled water
resources
Operations
(Pedro Porras)
Improve the District's Asset Management program
•Improve the District's computerized maintenance management system
(CMMS)
•Review business practices with the goal of increasing integration
between departmental functions
Next Steps
•Further refine Performance Measures
•Clarify objective project plans
•Leverage the expertise of Otay's management team to execute the plan
•Board endorsement of the FY12-14 Strategic Plan
Execution
OWD BUSJi~~SS PI}anning Process
Mission StntlBglcPlan
Strategies
Resources ~Accountability lmp!emllltation
Tools PlMl
Training.-J
Corleclive
Action
..
~-r•.......sr....a.tly,bow
sbouldwe.p~toC1UautOmlU?..
-•••WEAKNESSES~.'1~.OJ.
SWOT ANALYSIS CHART
-
stRENGTHS
Otay Water District
Strategic Plan
Fiscal Years 2012-2014
Not Yet Approved By The Board
- 2 -
STRATEGIC PLAN
FISCAL YEARS 2012-2014
Table of Contents
Page
Introduction
Planning Process........................................ 4
Mission Statement......................................5
Vision Statement......5
Values....................................................6
Key Challenge........... ... 7
Plan Objectives
Customer Service...................9
Financial.................................................9
Business Process.......................................10
Learning and Growth..................................11
Performance Measures
All Measures.............................................12
INTRODUCTION
The strategic plan is the core document which guides the agency's efforts to meet and
positively adapt to change.Every three years the District engages in a major revision of its
strategic plan.This current plan (covering fiscal years 2012-2014)is the fourth in a series
ofthree-year plans beginning in 2003.
In order to develop the FY12-14 Strategic Plan,each Chiefmeets with their staffto get a
collective list of ideas.Once these ideas are reviewed and discussed,they are filtered using
a S.W.O.T analysis,assessing the District's Strengths,Weaknesses,Opportunities,and
Threats.To further focus the suggested objectives,another analysis examines the plan from
the Balanced Scorecard perspective (Customer,Financial,Business Process,Learning &
Growth).
The Senior Management Team reviews every strategy,goal,objective,project plan,
performance measure,and target contained in the plan.Through this team discussion
process the General Manager gains consensus with his staff 011 the exact priorities for the
District,including detailed financial and resource c(tllsiderations required to execute the
plan.Thus,the plan serves as an informal contract between the agency staff and the
General Manager on the strategic work that will be done and what the agency hopes to
achieve over the next three years.In turn,the General Manager presents the plan to the
Board for approval.Through the strategic plan and budget approval processes,the Board is
then able to make well informed oversight decisions about the utility's direction.
S.W.OJ Analysis
Otay Staff
Involvement
Draft Plan
Board Approval
Balanced
Scorecard
Review
OTAY WATER DISTRICT -4-
MISSION
To provide high value water and wastewater services to the customers ofthe Otay Water District,in a
professional,effective and efficient manner.
VISION
A District that is innovative in providing water services at affordable rates,with a reputation
for outstanding customer service.
Mission
Vision
&
Values
OTAY WATER DISTRICT -5-
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.
Mission
Vision
&
Values
OTAY WATER DISTRICT -6-
KEY CHALLENGE
Our key District challenge is to add increased value by improvOng our core business
processes.From a water supply perspective,this means determining the optimum mix of
water supply,treatment,and delivery solutions for our customers.From a daily operating
perspective,efficiency improvements have become the primary source of competitive
advantage and cost optimization for utilities.Adding value from this perspective means the
entire team focusing on not only the highest priority go"als but also examining the details
ofwhat we do every day and be willing to alter how we do it if it makes a po itive
dOfference.Our employees voice a high degree ofpersonal and professional satisfaction with
our direction and the entire team is committed to meeting this key challenge with distinction.
Mission
Vision
&
Values
OTAY WATER DISTRICT - 7 -
OTAYWATERD STRICT
Strategic Plan
Fiscal Years 2012-2014
I.CUSTOMER Deliver high quality services to meet customer needs,and increase confidence of the customer in
the value the District provides.
I
A."Maximize our customer satisfaction by expanding',nd improving communications"I1.Enhance communications with customers using our new phone system.
2.Evaluate and improve effectiveness and cost ofbill.
3.Regularly evaluate communications tools and explore the effective use ofnew media options including:
electronic newsletters,auto-dialer services,video streaming,social networks,or web media to ensure the
District's outreach efforts are cost-effectively reaching all stakeholders.
4.Continue promoting the Water Cons~ation Garden as a venue for new homeowners,developers,businesses
and existing homeowners.I
5.Increase customers employing on-line bill payment.
Customer
~o achieve our
vision,how should
we appear to our
customers?"
OTAY WATER DISTRICT - 8 -
II.FINANCIAL --Provide enhanced v ue by directing and managing the financial issues that are critical to the
District.
A."Improve financial information and systems"
1.Strengthen the long tenn financial plan.
2.Develop a management dashboard measuring cost and efficiency.
3.Develop sewer capacity fees for expansion.
4.Re-negotiate the South Bay Water Reclamation Plant (SBWRP)recycled water supply agreement with the City
ofSan Diego.
5.Enhance the integrated water loss and use accounting process.
6.Evaluate the feasibility ofreplacing the existing customer infonnation system or migrating to the new version of
the Eden software.
Financial
liTo succeed
financially,how
should we appear to
our customers?
OTAY WATER OlSTR1CT -9-
Business Processes
liTo satisfy our
customers,what
business processes
must we excel at?
III.BUSINESS PROCESS --Improve business functionality by constantly improving the efficiency and
effectiveness ofimportant business processes.
A."Actively manage water supply and demand"
1.Prepare and implement a Waste Water Management Plan.
2.Implement the recommendations within the Integrated Water Resources Plan (IRP)to acquire alternative and/or
additional potable and recycled water supplies and reliabi-lity.
3.Continue working with the City of Chula Vista for the possible development of an MBR Plant and for a
potential agreement with the City for recycled water supplies from the MBR Plant.
4.Closely monitor the District's potable water demand to ensure the District will remain on target to achieve its
2015 gpcd target as identified in the 2010 Urban Water Management Plan.
5.Work with the District's largest potable water customers to convert landscape and interior water use to recycled
water where fiscally feasible and safe.
6.Ensure best practices are followed in meeting the 20 by 2020 conservation targets including reclassification of
industrial and commercial customers.
7.Educate and work with local agencies and others to influence developers,builders,and to incorporate practical
water efficient practices in new construction.
B."Identify and implement improvements to the following business processes"
1.Assess key business processes and implement relevant opportunities for improvement (applies to all
departments).
2.Continue development ofthe Asset Management program.
3.Strengthen CfP planning,budgeting,and cost tracking processes.
4.Optimize the use ofSharePoint by implementing electronic forms,personnel services,and automating the staff
reports business process.
5.Enhance the inventory management system.
6.Enhance security processes and planning.
7.Update the disaster recovery plan.
8.Update District-wide Records Management Program.
9.Utilize information systems to improve integrity ofcustomer related data.
10.Improve and streamline meter related processes.
11.Explore opportunities for improving and streamlining survey and inspection business processes.
12.Improve the District's computerized maintenance management system (CMMS)
OTAY WATER DISTRICT -10 -
IV.LEARNING &GROWTH --Provide the leadership,tools,nd management commitment to become a more
results oriented culture.
A."Results-oriented workforce"
1.Identify management initiatives for represented/unrepresented employees in preparation for negotiations that
will provide more efficiencies and more flexibility.
2.Evaluate policies and procedures as appropriate to streamline processes and ensure the District remains
competitive.
3.Review classification plan with the goal ofproviding greater flexibility.
4.Negotiate a successor Memorandum ofUnderstanding for represented employees for 2014 and beyond,and
related compensations and benefits for unrepresented employees.
5.Senior Management Team to develop summary ofexpectations for management team to manage change in the
future.
6.Update performance evaluation categories/program to ensure a results-oriented workforce and update and
provide training ifneeded.
7.Evaluate pay-for-performance program to ensure the District is rewarding employees for innovations and
business process review.
8.Establish a forum for continuous discussion regarding sections/units identifying business process review in
support ofthe District's mission.
Learning &Growth
"To achieve our
vision,how will we
sustain our ability to
change and
improve?"
OTAY WATER DISTRICT -11 -
OTAYWATERDISTRICT
Strategic Plan Performance Measures
Fiscal Years 2012-2014
Performance Management
Performance metrics and targets are a critical element ofthe strategic plan but differ from strategic plan
objectives.Objectives identify the action items that are necessary to achieve the strategic vision.
Performance measures are designed to ensure the day-to-day operations ofthe utility are meeting agreed
upon expectations.Performance measures are in the process ofbeing revised and will be finalized prior to
plan initiation on July 1,2011.We will advise the Board in June when the measures have been thoroughly
developed and meaningful targets have been identified.
•Customer Satisfaction:Percent positivelPercent surveyed.
•Blanket Order Activity:Total dollars on blanket for materials/Total material purchases.
•Total Customer Water Saved:Total savings in acre-feet added cumulatively throughout the fiscal year.
•Otay Water Use (District Meters):Total metered water use (number derived from a report).
•District Total Potable Water Purchase:Actual amount ofpotable water purchased from CWA each quarter.
•Health &Safety Severity Rate:Number oflost dayslNumber ofinjuries resulting in lost time.
•Employee Turnover Rate:Number ofvoluntary terminations/Average number ofemployees.
•Training Hoursper Employee:Total qualified training hours for all employees/Average #ofFTE.
•Safety Training Program:#ofsafety training hours for the quarter/#offield employees.
OTAY WATER DISTRICT -12 -
•CIP Project Expenditures vs.Budget:Actual quarterly expenditures/Annual budget.
•Construction Change Order Incidence:Total cost ofchange orders/Total original construction contract amount.
•Mark Our Accuracy:Number ofmarkouts performed without an at-fault hit,which is damage to a District facility that
results from a missing or erroneous markout/Total number ofmarkouts performed.
•Project Closeout Time:Average number of days between NOSC and NOC for all construction projects within the
quarter.
•Answer Rate:Number ofall calls answered/Number ofall calls received during a quarter.
•O&M Costper Account:Total operations O&M costs/#of accounts.
•Billing Accuracy:Number of correct bills during the reporting period/Number oftotal bills during the reporting period.
•Overtime Percentage:Actual overtime costs (including comp time)/Budgeted overtime costs.
•Sewer Rate Ranking:Otay ranking for the average bill for sewer/#of agencies.
•Water Rate Ranking:Otay ranking among CWA member agencies for average.
•Debt Coverage Ratio:Qualified net operating revenues/Debt service requirements.
•Reserve Level:Number ofreserve fimds that meet or exceed fund target levels/Total #ofreserve funds (9).
•Distribution System Loss:100 [volume purchased -(volume sold +volume used)Nolume purchased].
•Customer Satisfaction with Website:Annual Customer Opinion and Awareness Survey.
•Network Availability:Time availability ofcore applications during business hours/Total time.
OWD Business Planning Process
vl.ion }Mi••ion.~k'"
Sb'ateg....}Accountability t11t6onT_.....
Tra1nin,
1000/Number ofactive customers.
•Website Hits:Average total visitors per month.
Unplanned Disruptions:Number ofcustomer accounts experiencing unplanned disruptions times
OTAY WATER DISTRICT -13-
•Technical Quality Complaint:1000 X (number oftechnical quality-associated complaints)
/Number ofactive customer accounts per reporting period.
•Planned Potable Water Maintenance Ratio in $:Total planned maintenance cost/Total maintenance cost.
•Planned Recycled Water Maintenance Ratio in $:Total planned maintenance cost/Total maintenance cost.
•Planned Wastewater Maintenance Ratio in $:Total planned maintenance cost/Total maintenance cost.
•Direct Cost ofTreatmentper MGD:Total O&M costs directly attributable to sewer treatment /Total volume (in MGD)
during the reporting period.
•O&M Cost per MGP -Wastewater:Total O&M cost (less depreciation)/Volume in MG processed during the
reporting period.
•%PM's Completed -Fleet Shop:#of PM's completed for the quarter/#of PM's scheduled to be completed for the
quarter.
•%PM's Completed -Reclamation Plant:#of PM's completed for the quarter/#ofPM's scheduled to be completed for
the quarter.
•%PM's Completed -Pump/Electric Section:#of PM's completed for the quarter/#of PM's scheduled to be completed
for the quarter.
•%PM's Completed -Valve Maintenance Program:#of PM's completed for the quarter/#of PM's scheduled to be
completed for the quarter.
•Valve Exercising Program:Actual number ofvalves exercised per qtr/423 valves per qtr.
OWD Business Planning Process
Vioio.}MtsStOl'l St:rIaIIc"-_.......
......'cu }Accounc.bUlty I........"..taon
Tool."-T_",-/Number ofactive customer accounts per year.
•Water Distribution System Integrity:100 (annual total number ofleaks +annual total number
ofbreaks)/Total miles ofdistribution piping.
•Planned Water Service Disruption Rate:1000 x number ofcustomer experiencing disruption
OTAYWATER DISTRICT -14 -
•Potable Water Compliance Rate:100 x number ofdays the primary health regulations are met
/Number ofdays in the quarter.
•Collection System Integrity:100 x total number ofcollection system failures during the year /Total miles of collection
system piping.
•Replace Manual Read Meters with Automated Meters:Total meter changes completed in a year.
•Recycled Water System Integrity:100 x number ofleaks or breaks/Number ofmiles ofdistribution system.
•Sewer Overflow Rate:100 x total number of sewer overflows during the reporting period /Total miles of pipe in the
sewage collection system.
OWO Business Panning Process
Vision
Miltslan .....klMaft
Str.tegta
Ruourc..'I
Accountability I ..........,tI....T_J-
Traln_.
OTAYWATER DISTRICT -15-
AGE DA ITEM 12
5TAFF REPORT
AllDIV.NO.
May 16,2011
Joseph R~a~h~Chief Financial Officer
German~~~rez,Assistant General Manager,Finance and
Admi~tion
Adopt Resolution No.4173 to Approve the FY 2011-2012
Operating and Capital Budget;Approve Fund Transfers for
Potable,Recycled,and Sewer;Approve Water and Sewer Rate
Changes on All Billing Cycles that Begin in Calendar Year
2012;Adopt Ordinance No.530 Amending Appendix A of the Code
of Ordinances with the Proposed Water and Sewer Rate Changes,
and Section 53,Fees,Rates,Charges and Conditions for Sewer
Service;and Obtain Approval of the Rate Increase Notices
Special Board ~ng MEETING DATE:
Rita Bell,-e~~~-Manager W.O.lG.F.NO:r'/Zr-
SUBJECT:
TYPE MEETING:
SUBMITIED BY:
APPROVED BY:
(Chief)
APPROVED BY:
(Asst.GM):
GENERAL MANAGER'S RECOMMENDATION:
That the Board:
a)Adopt Resolution No.4173 of the Board of Directors of
Otay Water District to approve the Fiscal Year 2011-
2012 Operating and Capital Budget and adopt a water
rate increase of 7.7%and a sewer rate increase of
7.5%as proposed in the budget.
b)Approve the following fund transfers:
Potable:
General Fund Reserve
Designated Expansion to Sewer Replacement
General Fund to Designated New Supply
General Fund to Sewer Replacement
General Fund to Sewer General Fund
$2,420,500
$1,830,000
$1,515,000
$1,720,000
$595,000
Recycled:
General Fund Draw Down
Designated Betterment to Designated Expansion
General Fund to Designated Expansion
General Fund to Designated New Supply
General Fund to Replacement
$522,800
$405,000
$555,000
$70,000
$3,330,000
Sewer:
General Fund Reserve
Replacement to Designated Expansion
Replacement to General Fund
Designated Betterment to General Fund
$191,800
$430,000
$120,000
$30,000
c)Adopt Ordinance No.530 to amend Appendix A of the
Code of Ordinances with the proposed water and sewer
changes as presented in the FY 2011-2012 Operating and
Capital Budget and amend Section 53.
d)Direct staff to send customers notices of rate
increases.
PURPOSE:
To obtain approval of the Fiscal Year 2011-2012 Operating and
Capital Budget;various fund transfers;adopt Resolution No.
4173 to approve a 7.7%water rate increase and a 7.5%sewer rate
increase;and direct staff to send customers notices of the rate
increases.
BACKGROUND:
Each year the District goes through a rate setting process with
new challenges.The process typically begins in January and
ends with the implementation of rates the following January.
This year,CWA is raising rates by 9.5%,and water sales are
projected to be 3.1%less than last year's budget.Staff has
prepared the proposed Operating and Capital Budget with the
recommended water and sewer rates for adoption by the Board.
Staff has made every effort to present the most realistic set of
factors and assumptions based on information received from
various sources including:the Metropolitan Water District of
Southern California (MWD),the San Diego County Water Authority
(CWA),wholesale water suppliers,vendors such as SDG&E,and
local economists,while also taking into account other economic
indicators affecting revenues such as property taxes and lease
agreements.
DISCUSSION:
This year,the challenges affecting water rates are the ongoing
water cost increases by CWA &MWD,reduced water sales,
maintaining the District's debt coverage ratios,and the need to
2
fund capital projects.In addition,reduced water sales result
in a higher percentage of water being sold in the lower priced
tiers.The focus on the sewer side is on higher costs due to
the City of San Diego -Wastewater Department costs to transport
and treat sewer.Also significant to sewer customers is the
elimination of the sewer debt payments as a result of the final
payment debt payment being made in 2011.The following
discussion and the attached presentation review these
significant issues.
Water Costs
Fiscal Year 2012 has a number of challenges that have an impact
on water rates.The most significant challenge is that the
potable water suppliers,CWA and MWD,have a combined rate
increase of 9.5%.Like the District,both of these agencies
have experienced lower water sales affecting their bottom line,
thus putting more pressure on rates.The cost of obtaining a
secure water supply in the existing environment is driving up
the cost of water.In addition,the repair and maintenance of
MWD's aging facilities,CWA's emergency water storage facilities
including the San Vicente Dam Raise Project costs,are adding to
this cost pressure.Finally,with lower water sales due to
conservation messages and economic challenges,the fixed costs
are being spread over a smaller sales base.All of these
factors play a significant role in the higher cost of water to
the District.
With water costs representing 49%of the District's operating
budget,any change in the water price has a significant impact
on the overall operating budget.With the budget's sensitivity
to water rates,even with a reduction in the purchases of water
by approximately 1.9%,there is still an increase in the cost of
water purchases of $3.2 million due to CWA's January 1,2011 and
the 2012 planned price increase.
Debt Coverage and Credit Ratings
In September 2008,the District was able to obtain a rating
upgrade from Standard &Poor's to AA.On April 30,2010,Fitch
Ratings upgraded Otay Water District's credit rating to AA from
AA-as a part of their global ratings recalibration for
municipal agencies.While the credit rating is an overall
rating and many factors are considered when these ratings are
determined,one of the main financial ratios considered is the
Debt Coverage Ratio.This ratio is the measure of net revenues
compared to debt service.
3
The District has historically held the "no growth"version of
the debt coverage ratio over 125%with a target of 150%.with
the economic difficulties experienced over the past few years,
it is now expected that for the District to maintain a strong
credit rating it should maintain the "no growth"debt coverage
ratio at a minimum of 105%.With a 7.7%rate increase,the
District will maintain this ratio at 105%in 2012.In 2013 the
debt coverage ratio will build to 126%and then for 2014 through
2017 the District is expected to maintain a stable and strong
debt coverage ratio above 150%.Rating agencies look at how the
debt coverage ratios are trending.In the District's case,the
positive trend is expected to maintain the District's credit
rating.The true debt coverage ratio,as defined in the bond
covenants,includes growth revenues and is required to stay at
or above 125%.The District is well above this covenant level
in all years.In later years,growth revenues are expected to
boost the true debt coverage ratio to above 250%.
Water sales are a significant variable affecting the District's
financial standing.Daily monitoring of sales is a focus of the
District to provide timely information that enables the District
to react as needed.
Financing Plan
The District uses a comprehensive approach to financing.The
Finance Policy provides guidance on debt issuances and
refinancing and the Reserve Policy provides guidance on both
fund transfers and reserve balances.With these policies a six-
year financing plan is formulated that identifies the timing and
amounts of debt issuances,the level of rate increases,debt
coverage ratios,reserve balances,and necessary transfers.
At the current level of CIP expenditures,it is expected the
District will not issue debt in the coming fiscal year;however,
it is likely that another debt issuance of $18 million will be
needed in FY 2014,followed by $28.4 million in 2016.This
level of debt,along with the timing of the debt,is highly
dependent on the rate at which growth returns to the District
and how management responds to these variables.Growth is
expected to gradually return and provide funding for CIPs
through higher capacity fees.In 2012,the CIP is also
supported by $5.3 million of the transfers requested above.
With the proposed transfers and rate increases,the District
will be able to maintain all reserve levels at or above target
levels in the coming fiscal year.These actions are consistent
with the debt and reserve policies of the District and will
4
provide sufficient funds to finance capital improvements for
fiscal year 2012.
Water Sales
In the FY 2012 budget process,the District anticipated that
water sales would achieve 50%of the 2010 loss.Another 25%is
estimated to return in 2013,and the final 25%of 2010 levels
will return in 2014.The District's assumptions tie to the CWA
assumptions,which acknowledge 2011 to have the coolest July
since the 1930's and the 9th wettest December since 1850.The
2011 projected water sales are now projected to be 5.3%less
than the 2011 budget level.With the last several years of
unprecedented rate increases of 19.9%and 10.9%,the greater
than expected rainfall,the slow economic recovery,and ongoing
conservation messages,the water sales have been impacted more
than anticipated.
Due to the substantial investment in recycled water and the
water conservation being achieved by Otay customers,the CWA
water allocation for the District is well above the anticipated
purchases in 2011.With the state and CWA officially coming out
of the drought stages,there will no longer be an allocation set
for the District.
Relative Position to Other Districts
Annually,the District performs a survey of Otay's rates
compared to other water providers in the county.For many years
the District has remained in the lower half of this comparison.
It is expected that all water providers in the county are facing
the same rate pressures purchasing water from CWA and MWD,some
to a greater extent than others,depending on the relative
dependence on CWA water.Many water districts are looking at
implementing rate increases close to 8%.The District's survey,
shown in the attached presentation,illustrates that Otay's
conserving customer,10 units;or an average Otay customer,15
units;will be charged the eighth lowest rates compared to the
other 23 agencies in the county.
The 7.7%water rate increase generates an additional $1.4
million in revenue of which all of the increase is pass-through
cost.This is required to offset the $1.8 million of higher
water cost due to rate increases from our suppliers.The
District was successful in managing its own internal cost
without using any of the 10%internal cost allowed by the
District's Proposition 218 notices.
5
Sewer Rates
While there is a rate increase of 7.5%,as described in the
following paragraph,it is significant to note that the overall
cost to sewer customers is decreasing.For a typical
residential customer,the sewer bill will show an average
increase of $1.95;however,the annual charge on the property
tax bill for the repayment of the sewer debt will be eliminated.
The final sewer debt payment was made in fiscal year 2011.This
annual charge equates to $4.50 per month,resulting in a net
monthly decrease of $2.55 or 6.8%.
The main reasons for increases in the sewer rate are the
increased costs to transport and treat sewer by the City of San
Diego -Wastewater Department.This increase totaled $358,800,
of which $97,800 of this cost is ongoing and $261,000 will be a
one-time expense due to treatment plant upgrades by the
District.In addition,the Spring Valley Sanitation District
reduced its charge by $24,800.All of the 7.5%rate increase is
due to the increased external costs.
Internal Cost Cutting
In addition to the budget and rate setting process,the
District's focus on strategic planning has played a positive
role in the financial strength of the District.By managing
staffing,automating processes,and implementing Best Management
Practices,the District has become more efficient,therefore
more cost effective,as demonstrated by its relative rate
position among other agencies in the region.
Operating Budget
The proposed Fiscal Year 2011-2012 Budget supports the pass-
through of CWA's increases in water costs,effects of reduced
water sales,funds the Capital Budget,and maintains the
District's financial position.The proposed budget includes a
recommended 7.7%rate increase for water and a recommended 7.5%
rate increase for sewer.For water customers the Rate Model
projects a 7.7%increase for each of the next three years
followed by 4.9%increases in the following three years.
Rate Implementation -Water
The 7.7%rate increase is being recommended for both potable and
recycled customers.A 6.2%increase in the variable water rate
is recommended to all classes of potable customers.The MWD/CWA
pass-through fee is proposed to increase 18.5%to collect the
fixed costs charged to the District by our water providers.The
total of these fixed charges is shown below:
6
Customer Service Charge
Emergency Storage Charge
Infrastructure Access Charge
Capacity Reservation Charge
Readiness-to-Serve Charge
Total MWD/CWA Fixed Charges
$1,562,600
$3,585,800
$1,756,900
$603,900
$1,488,600
$8,997,800
There will be no increase in the District's system fee of $14.58
for a single-family residence.The system fee covers a portion
of the District's fixed cost to operate and maintain the system.
The District has been diligent in reducing costs and increasing
efficiency,enabling the District to keep this fee at the same
level as last fiscal year.The combination of a significant
increase in the MWD/CWA fees and no increase in the District's
system fees brings the District's overall fixed revenues close
to the 30%maximum recommended by the Best Management Practices
(BMP)11.This maximum is recommended in order to promote
conservation.It is important for the District to remain close
to this maximum of fixed fees to maintain revenue stability,
while at the same time promoting conservation with close to 70%
variable revenues.
The same percentage increase of 6.2%is recommended for the
variable recycled water rates with no increase on the system
fee.Recycled water rates are set at 85%of the potable
irrigation rate in accordance with our recycled rebate agreement
with CWA.
Rate Implementation -Sewer
In fiscal year 2011,a 6.8%rate increase was projected based on
cost estimates at the time.The recommended rate increase is
now 7.5%which is partly due to higher costs from the City of
San Diego,but is also due to the addition of $7.2 million of
capital projects over the next five years.Since sewer costs
only represent 7%of the total Operating Budget,even relatively
small changes in the budget can cause significant fluctuations
in the sewer rate.
Budgeted Revenues
The water revenues,as compared to last year's budget,include
an increase in potable water revenues of 2.8%and a modest
decrease in recycled water revenues of 2.9%.The potable and
recycled sales volume combined are 3.7%lower and the effect of
selling water in lower tiers are offset by the prior 10.9%rate
increase and the proposed 7.7%rate increase.
7
The sewer revenues increased 2.9%over last year's budget,again
showing the combined effect of lower water consumption and a
rate increase of 7.5%.
Other changes In the Operating Revenues include the following:
•Capacity Fee Revenues are expected to decrease by 4.7%due
to less work in the planning area.
•Property Tax Revenues are expected to remain relatively
flat.
•Property Rentals are expected to increase 11.6%due to two
new cell-site leases and agreed upon inflators in the
contracts.
•Grant Revenues are expected to decrease 83.3%due to lower
fund availability.This reduction is offset by decreases
in the incentives budget.
Expenses
In the proposed budget,water costs are projected to increase
9.1%due to the MWD,CWA,and City of San Diego rate increases.
The total increase in the variable potable water costs is
expected to be $1,554,400.This is due to the increase in the
price component of $70 per acre-foot.The fixed costs paid to
CWA and MWD are projected to increase by $1,359,200.Recycled
water variable costs are expected to decrease by $73,200.New
to this year's budget is the "Take or Pay"component of the
agreement with the City of San Diego which is expected to cost
the District an additional $346,100.
Sewer costs are expected to increase by $333,400 due to
increased charges from our service provider,the City of San
Diego -Wastewater Department,as well as a decrease by the
Spring Valley Sanitation District.
Power costs are budgeted to decrease by $79,800 or 3.2%due to
volume decreases resulting in reduced pumping,partially offset
by an anticipated SDG&E rate increase of 3.5%on January 1,
2012.
Labor and benefits costs are expected to increase by 8.2%or
$1,370,200.These changes are due to the following:
•Reduction of FTEs by three resulting In a decrease of
$320,300 .
•Cost of living increase of 3.5%and merit increases
pursuant to current MOU increase of $641,300.
8
•Changes in the vacancy factor along with a vacation and
sick leave increase of $122,900.
•Benefit cost increases of $882,100,primarily from pension
of $562,700 and medical of $376,000.The remaining
differential includes a workers'compensation credit and
other cost changes.
•Decrease of charges to CIP projects shifting costs to the
Operating Budget increases cost by $42,900 for labor and
benefits and associated overhead allocation.
The administrative expenses decreased by 12.3%or $1,020,900.
This is due to four main factors:
•Shift in work to CIP of $142,400 based on the work being
performed.
• A decrease in temporary help of $147,900 for work that was
temporary in nature.
•Decreases in outside services of $195,000 due to studies
being completed such as the Urban Water Master Plan and the
Water Resource Master Plan,as well as projects being
shifted to match the Strategic Plan.
•Decreased conservation incentives of $178,900 due to the
programs being completed by grantors (MWD and CWA).This
is offset by a reduction in grant revenue of $100,000.
Finally,the District reduced non-essential items such as
travel,conferences,and services that are not vital to perform
in this year.
The materials and maintenance budget experienced an overall
increase of 14.1%or $530,500.The three major factors are:
•Increases in the City of San Diego -Wastewater Department
charge of $358,800,of which $261,000 is a one-time
adjustment resulting from anticipated treatment plant
maintenance.
•Increases in chemicals totaling $106,000.
•Increase in the fuel budget of $108,500 due to rising fuel
costs.
Funding to reserves is decreasing by $2.5 million as compared to
last year.The reduced funding requirement is due to the $60
million shift in the CIP Budget in the next three years.
Engineering staff shifted out the timing of projects to better
match the slow economic growth projections.Even with the
reduction,funding is needed to keep the Replacement,Expansion,
9
New Supply and Betterment Reserves on target and to fund eIP
projects.This funding will keep reserve levels in compliance
with the Reserve Policy.Additionally,the potable general fund
is repaying Sewer Reserve in the amount of $2.3 million for
funds borrowed in 2009.
Capital Improvement Program (CIP)Budget
As a component of the annual budget development process,the
Engineering staff updates the eIP Budget.This year,the total
six-year eIP Budget decreased by $26.8 million from last year's
eIP.This decrease is a result of completing many eIP projects,
delays in developer projects,planning efforts enhancing project
definition,and increasing emphasis upon water supply projects.
The following process is used to prepare the eIP Budget:
•eIP projects selected are based on the Water Resources
Master Plan (WRMP),the Urban Water Management Plan (UWMP),
Integrated Water Resources Plan (IRP),Sewer System
Management Plan (SSMP),and other focused or specific
planning documents and reports.
•The eIP goes through an iterative process to meet the
criteria of growth,service levels,supply targets,and
system requirements.
•eIP target expenditures for the next six years are refined
and used in the Rate Model.
The following general criteria are used to determine the
reasonableness of a project before it is considered for
inclusion within the eIP Budget:
•Existing facility conditions.
•Operating system conditions.
•Water and sewer system deficiencies.
•Regulatory and permitting requirements.
•Developer driven requirements.
•Economic outlook.
•Growth projections.
•Water supply diversification goals.
•Board and management directives.
This year,the eIP Budget includes the following amounts by
project category.Project details within each of the categories
are located in Attachment D under the Capital Budget tab.
10
Capital Backbone
Developer Reimbursement
Replacement and Renewal
Capital Purchases
Total (millions)
$10.6
0.9
9.1
2.0
$22.6
There are a total of 86 projects in the current six-year ClP
plan.Each project is listed in the FY 2011-2012 Preliminary
Operating and Capital Budget (Attachment D)The total six-year
cost of the 86 projects is $154.6 million.
FISCAL IMPACT:
A six-year rate modeling effort is one of the ways the District
can better educate its customers,minimize financial risks,
reduce rate impacts,and establish fiscal strength as the
District and its customers experience these difficult economic
times.
The recommended balanced budget totals $78.1 million for
Operating and $22.6 for ClP.With budget approval,the District
will move forward into the 2012 fiscal year with clear financial
direction and strength.An average increase of 7.7%is
recommended for water rates and a 7.5%average rate increase is
recommended for sewer rates.These increases are recommended
for all water and sewer service usage beginning January 1,2012.
This budget,with the recommended transfers,provides sufficient
funding to pay increased water costs;continues funding for the
District's administration,maintenance,and operations;
strengthens our financial position;and is consistent with the
Strategic Plan and Reserve Policy.
STRATEGIC OUTLOOK:
The District ensures its continued financial health through
long-term financial planning and debt planning.
LEGAL IMPACT:
None.
JiIlnalfJ1/7r-
11
Attachments:
A)Resolution No.4173
B)Ordinance No.530
Exhibit I Strike-through Appendix A
Exhibit II Proposed Appendix A
Exhibit III Strike-through Section 53
Exhibit IV Proposed Section 53
C)Fiscal Year 2011-2012 Budget Presentation
0)Preliminary Operating and Capital Budget
E)Rate Increase Notice -Residential Water
F)Rate Increase Notice -Residential &Multi-Residential
Sewer
G)Rate Increase Notice -Public and Commercial Water
H)Rate Increase Notice -Landscape,Agricultural &
Construction Water
I)Rate Increase Notice -Recycled Water
J)Rate Increase Notice -Commercial Sewer
K)Rate Increase Notice -Master Metered
12
Attachment A
RESOLUTION NO.4173
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OTAY WATER DISTRICT ADOPTING THE
FISCAL YEAR 2011-2012
OPERATING AND CAPITAL BUDGET AND
THE PROPOSED WATER AND SEWER INCREASES AS
AMENDED IN APPENDIX A,SCHEDULE OF FEES AND
CHARGES AND AMENDMENTS TO SECTION 53,FEES,
RATES,CHARGES AND CONDITIONS FOR SEWER
SERVICE
WHEREAS,the Otay Water District Board of Directors have
been presented with a budget for the operation of the Otay Water
District for Fiscal Year 2011-2012i and
WHEREAS,the Operating and Capital Budget has been reviewed
and considered by the Board,
WHEREAS,the amended Appendix A with the proposed water and
sewer rate increases,as presented in the Fiscal Year 2011-2012
Operating and Capital Budget,have been reviewed and considered
by the Board,
WHEREAS,Section 53 of the Code of Ordinances with the
proposed changes have been reviewed and considered by the Board
and it is in the interest of the District to adopt these changes
effective July I,2011,
WHEREAS,it is in the interest of the District to adopt a
budget for said yeari and to adopt the water and sewer rate
increases on all billing cycles that begin in calendar year 2012.
NOW,THEREFORE,BE IT RESOLVED,DETERMINED AND ORDERED by
the Board of Directors of the Otay Water District that the
Operating and Capital Budget for the operation of the District,
incorporated herein by reference,is hereby adopted as the
District's budget for Fiscal Year 2011-2012.
Page 1 of 2
PASSED,APPROVED AND ADOPTED by the Board of Directors of
Otay Water District at a special board meeting held this 16th day
of May 2011,by the following vote:
Ayes:
Noes:
Abstain:
Absent:
President
ATTEST:
District Secretary
Page 2 of 2
Attachment B
ORDINANCE NO.530
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT
AMENDING THE CODE OF ORDINANCES
SECTION 53,FEES,RATES,CHARGES AND CONDITIONS
FOR SEWER SERVICE AND
APPENDIX A,SCHEDULE OF FEES AND CHARGES
BE IT ORDAINED by the Board of Directors of the Otay Water
District that Section 53,Fees,Rates,Charges and Conditions
for Sewer Service and Appendix A,Schedule of Fees and Charges
be amended as per the attached Exhibits I -IV.
NOW,THEREFORE,BE IT RESOLVED that the amendments to the
District's Code of Ordinances,Section 53,Fees,Rates,Charges
and Conditions for Sewer Service shall become effective July 1,
2011 and Appendix A,Schedule of Fees and Charges,increases for
water and sewer rates shall become effective in calendar year
2012.
PASSED,APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a special meeting duly held this
16th day of May 2011,by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
President
ATTEST:
District Secretary
Exhibit I
Otay Water District
Appendix A
I I I
I I II
I I
I I
Section #Code #,Fee Description Meter Size I Charges
9 I 9.04 A.1.I IDistrict Annexation Processing Fee I I I i $709.00
I
I I Annexation Fees for Annexations into II
I District-wideI9.04 B.I Otay Water District Boundaries I Annexation Fee
I I I 3/4"$1,516.00I
I I !1"I 1 $3,790.00
I I I 1-1/2"I $7,580.00
I I 2"I I $12,128.00I
I 3"$24,256.00
I I I I I 4 I I $37,900.00
I 6"I $75,800.00I
I 8"I I $121,280.00
10"I $174,340.00
I I I
I I IAnnexation Fees for Annexations to Sewer I
III9.04 CA.!Improvement Districts I $5,593.00
I I
10 10.01 I IFiling of Petition I !$50.00
I ,
i
23 23.04 Backflow Certification I I
I I I -Second Notification I I I I $10.00
I -Third Notification $25.00
I -Reconnection (service resumed)I I $50.00
I
-Initial Filing Fee (New applicants for
Iadditiontothelistofapprovedbackflow
!prevention device testers)$25.00
I
-Renewal Filing Fee (to remain on list
of approved backflow prevention device
testers)Annually $10.00
I i
25 I 25.03 A..Set-up Fees for Accounts $10.00
I I
Appendix A
1 of 12
I
IMonthly Fixed System Charges,MWD&I MWD&CWA Total Fixed
25 25.03 C.ICWA Charges (1)Meter Size System CharQe Fixed Charge Charge
I I I I 3/4"$14.58 ~$2MQ
I I I 1"I $18.52 ~~
I I I I 1-1/2"[I $28.37 $39.44 ~,I 2"$40.18 $eJm $103.25
I I I I 3"I I $71.68 $126.14 $197.82
I I I I I 4"I I $107.13 $197.11 $304.24
I I I I I I 6"$205.59 $394.17 $599.76
I I I I I 8"I $323.73 $630.71 $954.44
I 10"I I $461.57 $903.58 $1,368.15,I I
25 25.03 E.1.(bl IDomestic Residential Water Rates (1)I Unit Charae
I I 0-5 $-1--49
I I 6-10 $2.3+
I I 11-22 $MQ
I I I I 23 or more ~
I I I I
IMultiple Residential Water Rates -Per
I I2525.03 E.2.(b)IDwelling Unit(1)0-4 ~
I I I I 5-9 ~I I
I I I I I 10 or more $4:a7
I I I I
1 Business and Publicly-Owned Water
I
I I
25 25.03 E.3.(bl I Rates (1)under 10"I I 0-173 $2A4
I I I I I I 174-831 ~
I I 832 or more ~
I I I I
I I 10"&larQer 0-7,426 $2A4
I I I I I 7,427-14,616 ~
I I I I 14,617 or more ~I
I I I I I I
f
Irrigation and Commercial Agricultural
1"&smaller!25 25.03 EA.(c)Using Potable Water Rates (1)0-49 ~
I I I I 50-132 ~
I 1 I 133 or more ~
I I I
m Water usage efreGti",e January 1,2011 "'.tater billed beginning February 1,2011 I I I
Appendix A
2 of 12
I I 1.5"&2"0-144 ~
I I 145-355 ~
I I 356 or more $JAa
I I I -
I 3"&larQer I 0-1,044 ~I
I I I I I 1,045-8,067 ~
8,068 or more $JAa
I I
I
25 i I 25.03 E.5.(c)I IRecycled Water Rates (1)3/4"-1"I I 0-42 $2-,-84
I I !43-97 $US
I i I I 98 or more $2.,94
I I I I I
I I I I I 1.5"&2"I I 0-168 $2-,-84
I 169-402 $US
I I I I 403 or more $2.,94
I I I I II
I I ,3"&4"0-403 $2-,-84
I I I 404-820 $US
I I I I I 821 or more ~
I
I I II
I I I 6"&larQer 0-7,916 $2-,-84
,I 7,917-16,357 $US
,i I I 16,358 or more ~
f I I II,
I
I'emporary and Construction Water I I
25 25.03 E.6.(b)IService Rates (1)I 1"&smaller 0-49 $6M
I I I ,50-132 $&;-78
I I 133 or more $e.9Q
I I II
I I [I 1.5"&2"I I 0-144 $6M
I I 145-355 $&;-78
I i I I I I 356 or more $e.9Q
I I I II
I I I 3"&larQer I I 0-1,044 $6M
I I J i 1,045-8,067 $&;-78
I I I I I I I 8,068 or more $e.9Q
I I I I I
I I I I I
I I I :I
f'l1 ,AI.....,n~ ~\1\1....1-.•...L_I-.,__~ ..,n~..,~~,
Appendix A
3 of 12
25 25.03 E.8.(b)ITank Trucks Water Rates (1)11"&smaller I 0-49 ~
I I I I 50-132 $&.--78
]I 133 or more $&..QO
I I I
I I I I 1.5"&2"I 0-144 ~
I !I I I
145-355 $&.--78
I I I 356 or more ~
I I ,
I I j I I 3"&larger I 0-1,044 ~
I I I I 1,045-8,067 $&.--78
I i I 8,068 or more $&.00
I I I I I I I
I I
IApplication Fee for Water Service Outside I I I2525.03 E.9.(c)District Boundaries $500.00
I ][I I II
I
Water Rate for Service Outside District
I
I I2525.03 E.9.(d)Boundaries (1)1"&smaller I 0-49 ~I
I I I I I 50-132 $&:-78I
I I !I I I 133 or more $&..QO
I I
I I II
I I I I 1.5"&2"I 0-144 ~I
I I I I I
145-355 $&.--78
I I I I I I
356 or more $&,W
I I I I I
I I I 3"&larger 0-1,044 ~
I I I I 1,045-8,067 $&.--78
I I I I I I i 8,068 or more $MQ
I I I I
I Application Fee for Water Service Outside I II25\I 25.03 E.10.(b).an Improvement District $275.00
I I I I I
I Water Rate for Service Outside I
1"&smaller II
25 I 25.03 E.10.(c)Improvement District (1)I 0-49 ~
I I I 50-132 $&.--78
!I I 133 or more $&,.QQI
I r I iIi
I I r I I 1.5"&2"I 0-144 ~
I i I I I 145-355 $&.--78
I I I I j 356 or more $&,W
Appendix A
4 of 12
flt \AI",+,,~"........."-=-1 ')n11 \AI...+....~h:n........C ....h~,,...~,1 ')()1 1,,
I 3"&larger 0-1,044 ~
I I I 1,045-8,067 $&.--78
j I I 8,068 or more ~
I I ,I
25 I 25.03 E.11.(c)I Fire Service Monthly Charge I i I $30.11
I I I iI
I I
Additional Water Service for Property Not
1
I
I II
25 I 25.03 E.12.(b)Subject to District Taxes I per unit ~I
I I I I
I i I Iinrerim :,ervlce vvater Kate In II
25 25.03 E.13.(b)I Improvement District 7 (1)I 1"&smaller 0-49 ~
I I I I I I 50-132 $&.--78
I I 133 or more $MQ
I I I I
I I 1.5"&2"I I 0-144 ~I
I I I I I 145-355 $&.--78
356 or more ~
I I
!I 3"&larger 0-1,044 ~
I I I I I I I 1,045-8,067 $&,-78
I I I I I I i 8,068 or more $MQI
I I I I I
I I
I
I I Per 100 ft of lift
over 450 ft per
25 I 25.03 F.IEnergy Charges for Pumping Water (1)I unit ${hQ44
I I I
I I
I Per unit chargeI
except for the
Additional Water Charge for Service in the I first 5 units of
25 I 25.03 G.1.INorth District residential $0.08
I I I I I
I Per unit charge
jAdditional Water Charges for Service in except for the
Ithe Improvement District 9 Water Service first 5 units of
25 25.03 H.1.Zone residential $0.27
I I i II
I I I !I II
Appendix A
5 of 12
f-B \1\I~'~r ,~~~.D:.I~~,~~1 'ln11 \1\I~+~r h;n~,j r:~hr••~~1 'ln11,,
I Additional Monthly System Fee for I25I25.03 H.2.Improvement District 9 I $2.00
I I I I
I I Per unit charge
except for the
Additional Water Charges for Services in I I first 5 units of Effective
25 25.03 1.1.(a)Improvement District 3 residential 0.17 per H.C.F.Jan 1,2009
I I I
Effective
I "0.18 per H.C.F Jan 1,2010IIII
I I [
I I
I Effective
I i I I "0.19 per H.C.F.Jan 1,2011
I I I
I
Effective
I "0.20 per H.C.F.Jan 1,2012I
I I !EffectiveI
I I "0.21 per H.C.F.Jan 1,2013
I I I
I
i Per unit charge
I except for the
,IAdditional Water Charges for Services in I first 5 units of Effeetive
25 I 25.03 1.1.(b)Improvement District 10 residential n 'll':~~r U r-r:Jan 1,2009..
I
I I
I
I
I Effective
J
I i "0.26 per H.C.F.Jan 1,2010II
I
i
I
I
I I I
I Jan 1st
I I "0.27 per H.C.F.2011-2018I
I I
I I
I Per unit charge
except for the Effective
Additional Water Charges for Services in first 5 units of I~~ 1~'
25 I 25.03 1.1.(c)La Presa residential n n7 ~~r U r-r:20082010..
I I
II
Effective
Jan 1st
I "0.08 per H.C.F.2011-2013
,I
25 I I
25.04 A.I IDeposits for Non-Property Owners I 3/4"i I $75.00
I i I 1"I $150.00
I I I I 1-1/2"I $200.00I
I I 2"$360.00
Appendix A
6 of 12
,3"$800.00
·4"$1,350.00
·6"$3,300.00
i 8"$4,400.00
10"
•
$5,500.00
,I
•i District-wide
28 28.01 B.1.Capacity Fees and Zone Charge Capacity Fee
-l.o.'s 1,2,3,5,7,9,10,19,20,22,22/27 ·3/4",$7,697.00
(excluding Triad),and 25 (only I.D.'s 1",$19,243.00
·,15,7,10,19,22,and 22/27 require reclaimed ,1-1/2"$38,485.00
·irrigation meters).2"$61,576.00
,3"$123,152.00
4 $192,425.00
,6"$384,850.00
8",$615,760.00
10"$885,155.00
•
-22/27 TRIAD 3/4"$5,760.00
1"$14,400.00
!1 -1/2"$28,800.00
2"$46,080.00
3"i $92,160.00
4 $144,000.00
6".$288,000.00
8",$460,800.00
10"$662,400.00
28 28.01 B.2.New Water Supply Fee
•
!
-All IDs including Triad 3/4"$887.00
i
•
1"$2,218.00
•1-1/2"$4,435.00
2"$7,096.00
,j 3"$14,192.00
I
,
i '4"$22,175.00
i I 6"$44,350.00
i
·8".$70,960.00
10"$102,005.00
•''
,
•
Appendix A
7 of 12
i Installation Charges for Water Meter and
28 28.02 Water Service Laterals Meter Size Meter Fee Meter Box Installation Total Fee
3/4"$59.00 $47.00 $60.00 $166.00
1"$117.00 $47.00 $60.00 $224.00
1-1/2"$250.00 $61.00 $103.00 $414.00
2"$475.00 $61.00 $240.00 $776.00
•3"$653.00 $1,770.00 $300.00 $2,723.00
i .4"$1,370.00 $1,770.00 $300.00 $3,440.00
6"$2,500.00 $1,770.00 $300.00 $4,570.00
I i 8"$3,737.00 $2,760.00 $300.00 $6,797.00
10"$5,060.00 $2,760.00 $300.00 $8,120.00
I
'Requirement of Temporary Meter for •minimum/per
31 31.020.1.Service i day $25.00
·
31 31.03 A.1.Requirement of Deposit for Temporary Meters .
•3/4"$150.00
i !.1"$180.00
1-1/2"i $330.00
i :2"!i $2,046.00
.3"$850.00
:i 4"$1,986.00
i i I 6"$2,465.00
i
-Construction Trailer Temporary Meter 2"$2,046.00
-Tank Truck Temporary Meter
i(Ordinance #372)2"
·
$850.00
·
·31 31.03 A4.Temporary Meter Install &Removal ·:$128.00
!Temporary Meter Move Fee (includes
31 31.03 A5.backflow certification)3/4"-2"$64.00
!
3"and larger No backflow test $64.00
i
:
Customer Request for Meter Test
33 33.07 A (Deposit)i5/8",3/4"&1"$25.00
i :1-1/2"&2"$50.00
i •3"&LarQer $125.00
Appendix A
8 of 12
I [I I I IrI
34 I 34.01 0.2.I Returned Check Charges I I I $25.00
I
5%of
Delinquent
34 !34.02 B.Late Payment Charge Balance
I I I I I
34 I 34.02 G.1.(d)IDelinquency Tag I I $10.00
I I I I
I
,I
I
During regular
34 34.02 G.3.(a)I IMeter "Turn-On"Charge business hours $35.00
I I I I
I
I IMeter "Turn-On"CharQe I I
1 After regular
34 I I 34.02 G.3.(b)business hours $65.00
I I I I I!
53 I I 53.04 C.1.Sewer Connection Fee -Russell Square I I I I $7,500.00
I I I
53 I 53.04 C.2.i IMonthly Sewer Service Charge -Russell Square $200.00
I I I I I
53 53.11 A.I Set-up Fees for Accounts I $10.00I
I I
I Rate multiplied
I I
by winter
53 53.11 B.2.i Residential Sewer Charges (2)average units $-1-,6-7
I I
53 53.11 B.3.Residential Sewer Charges Base Fee 1"'1 I 5/8"&3/4"I $-14M
J I 1"&larQer I I $4M7II
!I I
I
I IMonthly Residentla15ewer Rate Without
I I I5353.11 B.4.I Consumption History (2)5/8"&3/4"~
,I I 1"&larger I I $44-J4
I I I I
53 I I 53.11.C.4.Winter Averaging -Sewer I I
I 19.68 15%
,.j:~~~,~.-1 c::7':1
-Single Residential HAAs
8 units 15%
I
discount 6.8
-Multi-Residential HAAs
I I I
Appendix A
9 of 12
I I I Rate multiplied
I
by winter
53 53.11 0.2.IMulti-Residential Rate Charges _Sewer (2)average units $-1-:97
I I I
{2}C'~••~....."I~<..,n<<~:II',....~<..,n<1,,
I
I
IPer ASU (Based
I IPublic Schools Sewer Rate (2)
on Student
53 53.11 E.6.Count)~
I I I I I
I i PorASUs &
I
ISewer State Loan Annual Charge
I Charged on
aJ 53.11 F.annual tax bills $§4,00
i I I
1
IMonthly Service Charge for Commercial I
II53.11 G.1.and Institutional Sewer (2)
I ~53 I Per ASU
I I I I I
I
I IIssuance of Availability Letters for Water
I I I6060.03 I $75.00Iand/or Sewer Service
I I I I I I
I I
Locking or Removing Damaged or I
I
I7272.04 A.1.Tampered Meters
I I -To Pull and Reset Meter 3/4"-2"I $170.00
I I -Broken Curbstop or Tabs I 3/4"-1"I $192.00
-If Customer uses Jumper I 3/4"-1"$149.00
I I -Broken Lock/Locking Device I 3/4"-1"I $56.00
I -Cap Lock (Welded)3/4"-1"$158.00
I -Broken Curbstop or Tabs I 1.5"-2"I I $265.00
I
I -To Pull and Reset Meter 3"I I $351.00I
I I I -To Pull and Reset Meter I 4"I $454.00
I
,-To Pull and Reset Meter I I 6"i I $454.00iI
I I I -To Pull and Reset Meter I 8"I I $600.00I
I I I -To Pull and Reset Meter I I 10"I I $600.00I
I [
72 72.05 D.A.I IType I Fine I
I I -First Violation $100.00
I I -Second Violations I $200.00
Appendix A
10 of 12
I I -Third or each additional violation ofthat same I
IIIordinanceorrequirementwithinatwelve-month period $500.00
I I I I I I
~c:-~,.,~.'".u.I~",~,"'lA""COl""",t:"~h.,,~""'lA"",,
I
i
I Will not exceed per each day the
violation is identified or
Type II Fine continues.$5,000.00
I I
II
Fine up to amount specified per
each day the violation is
Type III Fine identified or continues.$500.00
I I I
I Fine up to amount specified per
each day the violation is
Type IV Fine identified or continues.$500.00
I
State
Water #71630 &Annual Board
I
Water Availability/Standby Annual Special Less than one-acre all I.D.s &
Code ,Resolution #4142 Assessment Charge Outside an 1.0.$10.00
I I I I II
I I I
IPer acre in 1.0.1,5,&Outside
$10.00IIan1.0.
j II
I
IPer acre in 1.0.
I i 2,3,7,9,10,19,20,22,25,&27 $30.00
I I I I
I Less than one-acre Outside 1.0.I
I Iand greater than one mile from
I IDistrict facilities.$3.00
I I
I
I
Per acre for outside 1.0.&
greater than one mile from
District facilities.$3.00
I I I
Appendix A
11 of 12
State
I
,
Water #71630 &Annual Board Sewer Availability/Standby Annual Special Less than one acre 1.0.4,14,&
Code Resolution #4142 Assessment Charge 18 $10.00
.I Per acre 1.0.4,14,&18 $30.00
I
Annual
,Board !General Obligation Bond Annual Tax Per $1000 of assessed value for
Resolution Assessment ,1.0.27 $0.005
Policies
5 Copies of Identifiable Public Records $0.10/page
,Cassette Tape Duplication $2.00/tape
.
$20.00/year orYearlySubscriptionServiceforAgendas,and Ratified Minutes $0.50/meeting
$100.00/year
for first copy
Yearly Subscription Service for Board and
Packet and Ratified Minutes $200.00/year
!
for each copy
,thereafter
Appendix A
12 of 12
Exhibit II
I"""
Otay Water District
/I •A
I"""'r-'r-'~lulX
I i·
Section #Code #Fee Description Meter Size Charges
9 9.04 A.1.I !District Annexation Processing Fee I $709.00
I i
Annexation Fees for Annexations into District-wide
I 9.04 B.Otay Water District Boundaries Annexation Fee
.
·
3/4"$1,516.00
"
·
1"$3,790.00I
i :1-1/2"i $7,580.00I
.i 2"!$12,128.00
•
3"$24,256.00
!II 4
• I
$37,900.00
I i 6".$75,800.00
I 8"I I $121,280.00
10"i $174,340.00I
•i
I Annexation Fees for Annexations to Sewer i !
9.04 CA.Improvement Districts · !$5,593.00
i
•
I
10 i 10.01 Filing of Petition I $50.00,
].i
23 I 23.04 Backflow Certification I
I -Second Notification $10.00I
I !-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
i
of approved backflow prevention device
itesters)Annually $10.00
i I
25 25.03 A.iSet-up Fees for Accounts $10.00
•i i ·
Appendix A
1 of 12
[I
I I IMonthlyFixedSystemCharges,MWD&I
I System CharQe
MWD&CWA Total Fixed
25 25.03 C.CWA Charges (1)Meter Size I Fixed Charge Charge
I I I 3/4"r $14.58 $14.01 $28.59
I I I 1"I $18.52 $23.33 $41.85
1-1/2"I I $28.37 $46.74 $75.11
I I 2"I $40.18 $74.74 $114.92
I I I 3"I I
$71.68 $149.48 $221.16
I I !I ,4"I $107.13 $233.58 $340.71
I 6"I $205.59 $467.09 $672.68
I i 8"I I $323.73 $747.39 $1,071.12
I I 10"I $461.57 $1,070.74 $1,532.31
I I I I
25 25.03 E.1.(b)I IDomestic Residential Water Rates (1)I I I I Unit Charae
I I 0-5 $1.58
I I I I I I I
6-10 $2.45
I I I I 11-22 $3.19
I I I I I 23 or more $4.92
I I I I I I
I I
I IMultiple Residential Water Rates -Per I I I
25 25.03 E.2.(b)Dwelling Unit (1)I 0-4 $2.43
I I I 5-9 $3.15
I i 10 or more $4.85
I I
I
Business and Publicly-Owned Water I I2525.03 E.3.(b)IRates (1)under 10"I 0-173 $2.59
I 174-831 $2.66
I I I I 832 or more $2.70,I I I .
I I 10"&larger 0-7,426 $2.59
I I I I 7,427-14,616 $2.66
t I I I 14,617 or more $2.70
I I
I Irrigation and Commercial Agricultural
I 11"&smaller II2525.03 E.4.(c)Using Potable Water Rates (1)0-49 $3.53
I I I 50-132 $3.60I
I !I I 133 or more $3.66
I I I I I II
(1)Water rates on all billina cvcles beginning in calendar year 2012
Appendix A
2 of 12
I I I 1.5"&2"I 0-144 $3.53
!145-355 $3.60
I I I I 356 or more $3.66
I I I I !
I I 3"&larger 0-1,044 $3.53
I I 1,045-8,067 $3.60I
I I I I I 8,068 or more $3.66
I i I
25 I 25.03 E.5.(c)I Recycled Water Rates (1)I 3/4"-1"i I 0-42 $3.02II
I I i I I I 43-97 $3.06
I I 98 or more $3.12
I I I I I I I
I I I I I 1.5"&2"I [0-168 $3.02
I I I 169-402 $3.06I
I I I I [403 or more $3.12I
I I
I 3"&4"0-403 $3.02
I 404-820 $3.06
[I 821 or more $3.12
I !I
I I I I 6"&larger I I 0-7,916 $3.02
I I
i 7,917-16,357 $3.06
:I I i I 16,358 or more $3.12:I I I I I
I I II emporary and Construction Water
1 1" &smaller25I25.03 E.6.(b)Service Rates (1)I 0-49 $7.06
I I 50-132 $7.20
I i I I 133 or more $7.32
I I !
I I 1.5"&2"I 0-144 $7.06I
I I I 145-355 .$7-20
I I I 356 or more $7.32
I I
I I I 3"&larqer I I 0-1,044 $7.06
I I I I 1,045-8,067 $7.20
I I I I I 8,068 or more $7.32
[I I I
I I I I
I I I I II
(1)Water rates on all billing cycles beginning in calendar year 2012
Appendix A
3 of 12
25 I I 25.03 E.8.(b)ITank Trucks Water Rates (1)I 1"&smaller 0-49 $7.06
I I I i 50-132 $7.20I
I I I I I 133 or more $7.32I
I I I I I I
I I I 1.5"&2"I 0-144 $7.06i
I I 145-355 $7.20
1 I I I I I 356 or more $7.32I
I I I
I I I 3"&larQer 0-1,044 $7.06
1 i 1,045-8,067 $7.20
I I I I I 8,068 or more $7.32I
I I I I I
25 I 25.03 E.9.(c)I IApplication Fee for Water Service Outside!I
$500.00IDistrictBoundariesII
I I !I
I
Water Rate for Service Outside District
[I2525.03 E.9.(d)Boundaries (1)1"&smaller 0-49 $7.06
I t I I 50-132 $7.20II
I I I I I I 1 133 or more $7.32I
I I
I 1.5"&2"0-144 $7.06
I I 145-355 $7.20
]I I I 356 or more $7.32I
I I i I I
I I I 3"&larger I 0-1,044 $7.06I
1 I I I I I 1,045-8,067 $7.20
I I I I I I I 8,068 or more $7.32I
I I I I
I
IAPPlication Fee for Water Service Outside I
I
I I2525.03 E.1 O.(b)an Improvement District I $275.00
I I
I I
25.03 E.10.(c)
Iwater Rate for Service Outside
I I25IImprovementDistrict(1)1"&smaller 0-49 $7.06
I I I I I I 50-132 $7.20
I I i I 133 or more $7.32I
I i I
I !
I I
I I I I ]
(1)Water rates on all billing cycles beginning in calendar year 2012
Appendix A
4 of 12
I I I 1.5"&2"I 0-144 $7.06
I I I I 145-355 $7.20
I I I I 356 or more $7.32
I I I
J I I 3"&larger 0-1,044 $7.06
1 I I I I I 1,045-8,067 $7.20
I I I I 8,068 or more $7.32
I I I !I
25 I I
25.03 E.11.(c)I Fire Service Monthly Charge I $30.11
I I I
I I IAdditional Water Service for Property Not
I
I I2525.03 E.12.(b)i Subject to District Taxes I per unit $0.293
I I I
I I Ilmenm ~ervlce vvater Kate In I
11"&smaller III
I25I25.03 E.13.(b)I Improvement District 7 (1)0-49 $7.06
i i I I I I 50-132 $7.20
I I I I I I I 133 or more $7.32
I I I I I
I I I I 1.5"&2"I I 0-144 $7.06
I 145-355 $7.20I
I I I !356 or more $7.32
i i I
I I I I 3"&larger I 0-1,044 $7.06
I I I I 1,045-8,067 $7.20
I I •I I 8,068 or more $7.32
I I I I I I I
i
I I I Per 100 ft of liftIover450ftper
25 25.03 F.Energy Charges for Pumping Water (1)unit $0.045
I I
i
I
Per unit charge
except for the
Additional Water Charge for Service in the I
I
first 5 units of
25 I 25.03 G.1.North District residential $0.08
I I I I I
(1)Water rates on all billing cycles beginning in calendar year 2012
Appendix A
5 of 12
I .
-
Per unit charge
Additional Water Charges for Service in except for the
the Improvement District 9 Water Service first 5 units of
25 25.03 H.1.,Zone residential $0.27
.,
!
Additional Monthly System Fee for ••. .
25 .25.03 H.2.Improvement District 9 $2.00
.
Per unit charge
except for the
Additional Water Charges for Services in first 5 units of Effective
25 25.03 1.1.(a)Improvement District 3 ·residential 0.19 per H.C.F.Jan 1,2011
i
Effective
"0.20 per H.C.F.Jan 1,2012
,Effective
.1 "0.21 per H.C.F.Jan 1,2013
•
!!!
I i Per unit charge
except for the Effective
Additional Water Charges for Services in first 5 units of Jan 1st
25 25.031.1.(b)•Improvement District 10 .residential 0.27 per H.C.F.2011-2018
Per unit charge
except for the Effective
Additional Water Charges for Services in first 5 units of Jan 1st
25 I 25.031.1.(c)!La Presa I .residential 0.08 per H.C.F.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
I '
!3"$800.00
,4"$1,350.00
.6"$3,300.00
8"!$4,400.00
.!10"·$5,500.00
,,
Appendix A
6 of 12
,
i
.District-wide
28 ,28.01 B.1.Capacity Fees and Zone Charge ,Capacity Fee
i -I.D.'s 1,2,3,5,7,9,10,19,20,22,22/27 3/4"$7,697.00
i(excluding Triad),and 25 (only I.D.'s ·1"$19,243.00
i 5,7,10,19,22,and 22/27 require reclaimed 1-1/2"$38,485.00
irrigation meters).2"$61,576.00
3"$123,152.00
,4 $192,425.00
.6"$384,850.00
,8"$615,760.00
i 10"$885,155.00
,.
-22/27 TRIAD 3/4"$5,760.00
1"$14,400.00
1 -1/2"$28,800.00
2"i $46,080.00
,3"$92,160.00
4 $144,000.00
•
6"i $288,000.00
8"i $460,800.00
,,10"$662,400.00
28 28.01 B.2.New Water Supply Fee
-All IDs includinq Triad :3/4".$887.00
•
1"$2,218.00
,.1-1/2"$4,435.00
2"$7,096.00
3"$14,192.00
i 4":$22,175.00
i .6"$44,350.00
:8"$70,960.00
i 10"I $102,005.00
.',,i
Installation Charges for Water Meter and
28 28.02 Water Service Laterals Meter Size Meter Fee Meter Box Installation Total Fee
3/4"$59.00 $47.00 $60.00 $166.00
1"$117.00 $47.00 $60.00 $224.00
·1-1/2"$250.00 $61.00 $103.00 $414.00
:2"$475.00 $61.00 $240.00 $776.00
Appendix A
7 of 12
I i I I I 3"$653.00 $1,770.00 $300.00 $2,723.00
I 4"$1,370.00 $1,770.00 $300.00 $3,440.00
I I I 6"I I $2,500.00 $1,770.00 $300.00 $4,570.00
i I I I 8"I I $3,737.00 $2,760.00 $300.00 $6,797.00
I I 10"I $5,060.00 $2,760.00 $300.00 $8,120.00
I I I I
Requirement of Temporary Meter for I I minimum/per
31 31.02 D.1.i Service I day $25.00
I I
31 I 31.03 A1.I Requirement of Depositfor Temporary Meters
I I I 3/4"I $150.00
I I 1"I $180.00
1-1/2"I $330.00
I I I 2"I I $2,046.00
I 3"I I $850.00I
I I I 4"I I $1,986.00
I I I I 6"I $2,465.00I
I I I -Construction Trailer Temporary Meter 1 2"I I $2,046.00I
I
I
-Tank Truck Temporary Meter I I II(Ordinance #372)I 2"$850.00
I [I
31 I 31.03 A4.ITemporary Meter Install &Removal I I $128.00
I I I
I ITemporary Meter Move Fee (includes ,I I3131.03 A5.I backflow certification)3/4"-2"I I $64.00
I ;i I
3"and largerI No backflow test $64.00
I I I I I
I Customer Request for Meter Test I3333.07 A (Deposit)5/8",3/4"&1"$25.00
I I I I 1-1/2"&2"I I $50.00
I 3"&Larger I $125.00
I I I I ,
I I
34 I 34.01 D.2.Returned Check Charges t I I
$25.00
I
I
I 5%ofI
I Delinquent
34 I 34.02 B.Late Payment Charge Balance
I I I I I
34 I 34.02 G.1.(d)I [Delinquency Tag I I $10.00
Appendix A
8 of 12
I I I I
I During regular
34 34.02 G.3.(a)Meter "Turn-On"Charge business hours $35.00
I I I
I I IMeter "Turn-On"Charge
After regular
34 I 34.02 G.3.(b)I I business hours $65.00
I I
53 53.04 C.1.I Sewer Connection Fee -Russell Square I I I $7,500.00
I I I
53 53.04 C.2.I Monthly Sewer Service Charge -Russell Square $200.00
I I I
53 53.11 A.:,Set-up Fees for Accounts I I I $10.00I
I I II Rate multiplied
I by winter
53 53.11 B.2.Residential Sewer Charges (2)I average units $1.77
I I I I
53 I 53.11 8.3.I I Residential Sewer Charges Base Fee 1"1 I 5/8"&3/4"I I $12.26
I I 1"&larger I I $17.88
I I I I I I
I
IMonthly KeslClentlal ::iewer Kate WithOut I I I I5353.11 BA.Consumption History (2)5/8"&3/4"$41.75
I I I 1"&larQer !I $47.00
j I I !
53 I 53.11.CA.Winter Averaging -Sewer I
I
I 15units-15%
I I discount =12.75
-Single Residential units
I 6 units -15%
I discount =5.1
I -Multi-Residential units
[I I I
I Rate multiplied
I by winter
53 53.11 D.2.Multi-Residential Rate Charges -Sewer(2)average units $1.77
I I I
I
Per ASU (Based
on Student
53 53.11 E.6.Public Schools Sewer Rate (2)Count)$41.75
(2)Sewer rates on all billing cycles beginning in calendar year 2012
Appendix A
9 of 12
Monthly Service Charge for Commercial
I I I
53 53.11 F.1.,and Institutional Sewer(2,PerASU $41.75
I tI
I I !Issuance ofAvailability Letters for Water I I
]60 60.03 I and/or Sewer Service I $75.00
i I I I I I I,
f
I ILocking or Removing Damaged or I I I7272.04 A.1.I Tampered Meters
I -To Pull and Reset Meter I 3/4"-2"I I $170.00
I I -Broken Curbstop or Tabs 3/4"-1"$192.00
I I -If Customer uses Jumper I 3/4"-1"I $149.00
I 1 -Broken Lock/LockinQ Device 3/4"-1"I I $56.00
I I -Cap Lock (Welded)1 3/4"-1"$158.00
-Broken Curbstop or Tabs 1.5"-2"I i $265.00,I
-To Pull and Reset Meter 3"$351.00
1 1 I -To Pull and Reset Meter 4"1 $454.00
I i 1 -To Pull and Reset Meter 6"$454.00I
I I I -To Pull and Reset Meter I 8"I $600.00
I I -To Pull and Reset Meter 1 ,10"1 I $600.00
I I I I I I
72 I 72.05 D.A.I Type I Fine I I
I 1 -First Violation I $100.00
\I I -Second Violations ,,$200.00t
I I I
I -Third or each additional violation of that same
,ordinance or requirement within a twelve-month period I $500.00
I I I I I
I I i I
I Will not exceed per each day the
I violation is identified or
ITypeIIFine continues.$5,000.00
I I I I
I
Fine up to amount specified per
each day the violation is
Type III Fine I identified or continues.$500.00
1(2)Sewer rates on all billing cycles beginning in calendar year 2012
Appendix A
10 of 12
T .,,
Fine up to amount specified per
each day the violation is
i Type IV Fine identified or continues.$500.00
1 ,
T :State
Water #71630 &Annual Board Water Availability/Standby Annual Special Less than one-acre alll.D.s &
Code Resolution #4142 Assessment Charge Outside an 1.0.$10.00
i Per acre in 1.0.1,5,&Outside
,an 1.0.$10.00
,i i
,
'Per acre in 1.0.
2,3,7,9,10,19,20,22,25,&27 $30.00
Less than one-acre Outside 1.0.
and greater than one mile from
District facilities.$3.00
.
~
Per acre for outside 1.0.&
greater than one mile from
.District facilities.$3.00
i ,
State 'j ,
Water 1#71630 &Annual Board Sewer Availability/Standby Annual Special Less than one acre 1.0.4,14,&
Code Resolution #4142 Assessment Charge 18 $10.00
i .,.
i IPer acre 1.0.4,14,&18 $30.00
..
Annual
Board General Obligation Bond Annual Tax Per $1000 of assessed value for
Resolution'Assessment '1.0.27 $0.005
Policies .
5 '.;Copies of Identifiable Public Records $0.10/paqe
,Cassette Tape Duplication $2.00/tape
Appendix A
11 of 12
Yearly Subscription Service for Agendas
;
$20.00/year or
and Ratified Minutes $O.50/meeting
I $100.00/year
for first copy
Yearly Subscription Service for Board and
Packet and Ratified Minutes $200.00/year
for each copy
i
•
thereafter
Appendix A
12 of 12
Exhibit III
SECTION 53 FEES,RATES,CHARGES AND CONDITIONS FOR SEWER
SERVICE
53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY
Sewer service capacity may be acquired only for service
to a specific address,parcel of land,or a land development
project covered by an approved map.An approved map shall
mean a recorded final map,a recorded parcel map or a
tentative subdivision map that has been approved by the County
or by a City,as applicable.
53.02
A.
SERVICE AREAS
Service Areas.Sewer service shall be furnished by
the District only to property located in Improvement
District No.14 ("I.D.14"),Improvement District
No.18 ("I.D.18"),and Assessment District No.4
("A.D.4"),and the Russell Square Sewer Service
Area.Sewer service to property located outside
such areas may be furnished only upon annexation to
ID 18 and payment of all applicable annexation fees.
53.03
53.04
A.
A.
ACQUISITION OF SEWER CONNECTIONS FOR SERVICE IN I.D.
14,I.D.18 AND A.D.4
There shall be no connection capacity fee for sewer
service to parcels already annexed into Improvement
District No.14,Improvement District No.18 and
Assessment District No.4 on or after December 16,
1998.
ACQUISITION AND PURCHASE OF SEWER CAPACITY FOR
SERVICE IN THE RUSSELL SQUARE SEWER SERVICE AREA
District Acceptance of Sewer Facilities for Russell
Square Area.Under an Agreement with Cal Dorado
Development,Inc.,dated June 28,1981,the District
accepted title to a sewer pump station,force main
and appurtenances for a sewage system to provide
sewer service to the residential dwelling
units to be constructed within the parcels of land
in San Diego County Tentative Parcel Map 17150.
Under an Agreement with Cal Dorado Development,
Inc.,dated June 18,1981,the District agreed to
provide service to such parcels on the terms and
conditions contained therein.On October 1,1984,
pursuant to Resolution No.2139,the District Board
of Directors accepted title to the facilities.
53-1
B.Designation of Russell Square Sewer Area.The geo-
graphical area described on the District Map
entitled "Russell Square Sewer Service Area,"dated
October 11,1988,on file with the District
Secretary,constitutes the Russell Square Sewer
Service Area.
C.Connection Fees for Connections for Sewer Service
through the Russell Square Sewer Pump Station.
1.Sewer Connection Fee
A connection fee (see Appendix A,53.04 C.1.
for fee)for each EDU of sewer service provided
through Russell Square Pump Station shall be
collected.The connection fee is due at the
time an application for sewer service is
submitted.The number of EDUs for the con-
nection shall be as set forth in Section 53.09
of the Code.Since the Russell Square Pump
Station and force main were constructed by the
developer or his assignee,at their expense,
for the purpose of providing service to the
parcels within Tentative Parcel Map 17150,the
connection fee shall not apply to connections
for sewer service to the parcels within said
map.Such exempt parcels are currently identi-
fied as Assessor Parcel Nos.497-011-41,497-
011-42,497-011-44,497-011-46 and 497-011-47.
2.Monthly Sewer Service Charge
A monthly sewer service charge (see Appendix A,
53.04 C.2.for charge)to cover normal
operational costs of the Russell Square Pump
Station and force mains shall be collected.
This charge shall be reviewed by the Board of
Directors from time to time to assure that such
charges cover the costs for operation of the
sewer facilities.
3.The proceeds of the fees and charges received
by the District under 1 and 2 above shall be
used by the District solely for maintenance,
replacement or repair under C.1.above and for
the operation of the facilities under C.2.
above.
4.In addition,the customer for such service
shall pay the monthly service charge for sewer
service set forth in Section 53.11.
53-2
53.05
53.06
53.07
53.08
1.
CHARGES FOR INSTALLATION OF SEWER LATERALS
Upon application for construction of one or more
sewer laterals,the customer shall deposit with the
District the estimated costs to be incurred by the
District in connection with the installation of the
facilities required,as determined by the District.
Upon completion of the work,the District shall
calculate the actual costs incurred by the District
in performing the work.If actual costs are less
than the amount deposited,the District shall refund
the balance of the deposit to the customer.If
actual costs exceed the amount deposited,the
customer shall reimburse the District for the
additional costs.
PAYMENT OF FEES
All fees prescribed in the Code shall become owing,
due and payable at the time application is made to
connect a premise to the sewer system of the Dis-
trict.The fees shall be paid to the District prior
to the issuance of any permit authorizing the
connection of such premise to the District sewer
system.If the proposed connection cannot be made,
the fee may be refunded when approved by the General
Manager.
SEWER SERVICE USE CHANGES RESULTING IN INCREASED
SYSTEM UTILIZATION
The use of a sewer connection shall be limited to
the type and number of EDUs authorized by the
original wastewater discharge permit.Before adding
any additional equivalent dwelling units,buildings,
modifying existing buildings,or change of occupancy
type,the property owner shall make a supplementary
wastewater permit application to the District for
such change in use and pay additional sewer
annexation fees per EDU,if necessary,as may be
applicable.Periodic inspection of the premises may
be made by the District and if actual use is greater
than estimated use,an assessment for additional
annexation fees shall be assessed in accordance with
the fee schedule in the then current Code of
Ordinances.
WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION
A wastewater discharge permit shall be required for
any property for which a request is made to dis-
charge into the District sewage system.
53-3
2 .
3 .
53.09
1.
Every wastewater discharge permit shall expire by
limitations and shall become null and void,if the
construction or work authorized by such permit is
not commenced within 120 days from date of issuance
of such wastewater discharge permit or if the con-
struction or work authorized by such wastewater dis-
charge permit is suspended or abandoned for a period
of 120 days at any time after the work is commenced.
Before such work can be recommenced,a new waste-
water discharge permit application must be filed
with the District.The District may reactivate the
previous wastewater discharge permit provided that
wastewater quantity and type is the same as the
wastewater discharge allowed under the original per-
mit,and provided further that such suspension and
abandonment has not exceeded one year.Fees paid
for the previous wastewater discharge permit may be
credited toward the total permit fees required on
the new permit application.Reactivation of the
previous wastewater discharge permit shall be sub-
ject to District sewer capacity being available at
the time of new application and subject to any
additional costs or charges imposed during the
period of such suspension or abandonment.
BASIS FOR DETERMINATION OF EDUs
The number of EDUs for sewer service shall be deter-
mined on the following basis:
a)Residential Facilities EDUs
1)Single-Family Residence 1.0
(Includes manufactured homes,and mobile
homes which are on private lots
A secondary structure with a kitchen is
considered an additional EDU
2 )
3)
4)
Apartments and Multiple Family Housing
Each individual living unit
Residential condominiums
Each individual living unit
Mobile Home and Trailer Parks
Per each individual space
53-4
1.0
1.0
1.0
b)Commercial/Industrial Facilities
1)Food Service Establishments
a)Take-out restaurants with dis-
posable utensils,no dishwasher
and no public restrooms 3.0
b)Miscellaneous food establishments -
ice cream/yogurt shops,bakeries
(sales on premise only)3.0
c)1)Take-out/eat-in restaurants with
disposable utensils,but with
seating and public restrooms 3.0
2)Restaurants with reuseable
utentsils,seating and public
restrooms (0-18 seats)
Each additional 6 seat unit,
or portion thereof
2)Hotels and Motels
3.0
1.0
a)
b)
Per living unit without kitchen
Per living unit with kitchen
0.38
0.60
3)Commercial,Professional,Industrial
Buildings,Establishments not specifi-
cally listed herein
a)Any office,store or industrial
condominium or establishments.
first 1,000 sq.ft.1.2
Each additional 1,000 sq.ft.or
portion thereof 0.7
b)Where occupancy type or usage is
unknown at the time of application
for service,the following EDUs
shall apply.This shall include,
but not be limited to,shopping
centers,industrial parks and profes-
sional office buildings.
53-5
First 1,000 sq.ft.of gross build-
ing floor area 1.2
Each additional 1,000 square feet
of gross building floor area.Por-
tions less than 1,000 sq.ft.will
be prorated.0.7
4)Self-service laundry per washer 1.0
5)Churches,theaters and auditoriums per
each 150 person seating capacity or any
fraction thereof.(Does not include
office spaces,schoolrooms,day-care
facilities,food preparation areas,etc.
Additional EDUs will be assigned for
these supplementary uses).1.5
6)Schools
a)
b)
c)
Elementary Schools -For
each 50 pupils or fraction
thereof
Junior High Schools -For
each 40 pupils or fraction
thereof
High Schools,Colleges and
Universities -For each
24 pupils or fraction
thereof
1.0
1.0
1.0
Additional EDUs will be prorated based
on above values.
The number of pupils shall be based on
the average daily attendance of pupils
at the school during the preceding fiscal
year,computed in accordance with the
education code of the State of California.
However,where the school has had no
attendance during the preceding fiscal
year,the General Manager shall estimate
the average daily attendance for the fiscal
year for which the fee is to be paid and
compute the fee based on such estimate.
53-6
7)Convalescent Homes
a)Skilled nursing care facilities,
psychological hospitals,con-
valescent hospitals;licensed by
the Department of Health.0.7/bed
b)Community Care Facilities with 16
or more beds licensed by the State
Department of Health.O.S/bed
c)Small Community Care Facilities
with 7 to 1S beds licensed by the
County Department of Social
Services O.S/bed
d)Community Care Homes with six or
fewer total residents,including
resident staff and housekeepers
(to be the same EDU as a single-
family residence).1.0
8)Other
In the case of commercial,industrial and
other business establishments such as bot-
tling works,supermarkets,markets,
deli/markets,convenience stores,hospi-
tals,laundries (other than self-service
laundries),automobile service stations,
mortuaries,day-care centers,bars,pool
halls,and other establishments not
included in items 1)through 7)inclusive,
or when the EDUs specified in items 1)
through 7)are not representative of
actual flow due to the number of employees
or type of operation,the number of
equivalent dwelling units shall be deter-
mined in each case by the General Manager
and shall be based upon the estimated vol-
ume and type of wastewater discharge into
the sewer.
S3-7
53.10
53.11
A.
B.
TRANSFER,ASSIGNMENT,OR RESALE OF SEWER
CONNECTION RIGHTS
EDU sewer connection rights obtained by a customer
may not be sold,transferred,or assigned separately
from ownership of the real property for which they
were obtained,unless otherwise stated in an
agreement with the District.
SEWER SERVICE RATES AND CHARGES
Set-up Fees for Accounts.A set-up fee (see
Appendix A,53.11 A.for fee)shall be charged for
each account transferred to another customer.
Residential Sewer Charges.
Five-year Rate Increase Schedule -All District
sewer rates,charges,and fees are subject to a
five-year schedule of rate increases beginning
September 1,2009 and periodically thereafter
through June 30,2014.The increases under this
schedule shall be the amount sufficient to cover
cost increases related to operation and maintenance,
but not to exceed 10%per year.
Five-year Periodic Pass-through Rate Increases or
Decreases from District Wholesalers -All District
sewer rates,charges,and fees are subject to
periodic rate changes from the District's public
agency wholesalers for a five-year period beginning
September 1,2009 through June 30,2014.
(1)Winter Average Determination.Sewer service
usage fee shall be based on the "Winter
Average"water consumption,measured in units
of hundred cubic feet (HCF).The winter
average period is January through April.The
winter average is calculated by adding the four
months of water consumption for the preceding
winter and dividing the resulting amount by
four.This average is then reduced by a 15%
usage discount,recognizing that not all water
used flows into the sewer system,to determine
the "Winter Average"for billing purposes.
(2)Usage Fee.The usage fee rate (see Appendix A,
53.11 B.2.for rate)is multiplied by the
"Winter Average"calculation for each customer
(after the above noted 15%discount)and the
resulting amount is added to the Fixed Service
53-8
Charge applicable to the size of meter.The
resulting fixed fee shall be charged on a
monthly basis for an entire calendar year,
until a new "Winter Average"is determined for
the following year.
(3)Base Fee.The monthly base fee per meter size
is set forth in Appendix A,53.11 B.3.
(4)Monthly Residential Sewer Rate without
Consumption History.The average residential
sewer charge shall be determined by calculating
the total usage fee for all residential
customers and dividing by the number of
residential customers.Then the monthly base
fee for a 3/4 inch meter is added to this
average fee and this shall be used to determine
the rate per ASU to be used for commercial
customers.The monthly residential sewer rate
without consumption history is as set forth in
Appendix A,53.11 B.4.
C.Single Residential Winter Averaging
(1)Defined as:Sewer service for individually
metered residential households.
(2)The monthly sewer bill is calculated by adding
the base fee plus the usage fee as described in
5 .11 .B.(1),(2),& (3)above.
(3)The maximum "Winter Average"for individually
metered residential customers lS 30 units
(after the 15%discount).
(4)Residential Service without Consumption
History.Sewer service for new accounts with
no prior winter consumption,customers using
well water or other unmetered water shall be
assigned a "Winter Average"for single
individually metered households.See Appendix
A,53.11 C.4.for Winter Averaging fees.
D.Multi-Residential Rate Charges
(1)Defined as:Sewer service for master metered
water service for multiple-residential
households including for example;duplex,
townhomes,apartments,and mobile homes.
(2)The monthly sewer bill for the complex is
calculated by adding a 3/4 inch base fee (as
set forth in Appendix A,53.11.B.3.)times the
number of units in the complex plus the usage
53-9
fee (as set forth in Appendix A,53.11.0.2.)
for the entire complex.(Note:There is no cap
on consumption for the multi-residential
customers.)
(3)New complexes that do not have a prior winter
consumption history to determine their monthly
usage fee shall be assigned a "Winter Average"
for each multiple-residential unit in a master
metered residential complex.See Appendix A,
53.11 C.4.for Winter Averaging fees.
E.Commercial Sewer Charges
(1)ASU Determination:The charges for commercial
sewer service shall be based on the rate of
discharge and the strength of sewage.The Board
of Directors may adjust the charges in proportion
to the amount of water not entering the sewer
which is substantiated by the property owner or
discharger.
(2)The strength of sewage is based on its biochemical
oxygen demand (BOD)and the cost of removing
suspended solids (SS).
(3)The formula is derived by taking the total cost of
providing sewer service and charging each user
for a pro-rata share.
(4)The State Revenue Program Guidelines require use
of an "Assigned Service Unit Assignment Formula"
which converts higher strength uses into a
service unit value which is comparable to the use
impact of a single-family residential user or
equivalent dwelling unit.The formula for
determining an Assigned Service Unit (ASU)for a
single-family dwelling is set forth in the annual
budget,which is incorporated herein by
reference.
(5)The formula is based on an estimated daily flow of
250 gallons per day plus 280 milligrams per liter
of BOD and 234 milligrams per liter of SS for a
residential equivalent dwelling unit.
(6)For commercial users the flow is based on 85%of
their prior 12-month water consumption to reflect
the amount of water that returns to the system.
The basis for determining estimated flow for
unmetered water will be calculated on the demand
imposed on the water system.The strength of
discharge for commercial user is based on whether
53-10
it is classified as a low-strength,medium-
strength or high-strength user.
User Classification
Low-Strength Commercial 1.000 Strength Factor
Car wash
General office and buildings
Barber and beauty shops
Department,retail stores and general
commercial
Hospitals and convalescent homes
Laundromat,laundry and dry cleaners
Professional office or office building
Warehouse
Other uses having a similar strength as
determined by the District
Medium-Strength Commercial =1.238 Strength Factor
Bars without dining facilities
Bowling alley
Hotels without dining facilities or cooking
facilities
Auto repair/sales shop and service station
Shopping centers
Other uses having a similar strength as
determined by the District
High-Strength Commercial =2.203 Strength Factor
Bakery or bakery with deli
Hotel with dining facilities
Restaurants and bars with food
Supermarkets
Other uses having a similar strength as
determined by the District
Institutional =1.000 Strength Factor
Churches:Treated the same as Low-Strength
Commercial.
Schools:For public schools flow is based on
average daily attendance ("ADA")for the prior
school year,including summer school,as
reported by schools to meet state requirements.
Private schools will be required to file a
report verifying their attendance.For
elementary schools 50 students shall equal 1
ASU.For junior high schools 40 students shall
equal 1 ASU and for high schools 24 students
53-11
equals 1 ASU.The formula for schools shall be
the same as applies to single-family
residential.For charges see Appendix A,53.11
E.6.
Colleges:For colleges,flow is based on the
number of Certificated and Classified Staff,
and students enrolled in each school session
(spring,summer,and fall):
Gallons per day (GPO)no.of students and staff x
no.of weeks spring
session)
+(no.of students and staff
x no.of weeks summer
session)
+(no.of students and staff
x no.of weeks fall
session)
+(no.of staff x no.of non-
session weeks)
x 23 -7-52
ASU Daily Flow x Strength Factor
[(GPO x 85%)+250]x 1.000
The minimum charge for commercial shall be no lower
than 1 ASU at low strength.Charges are determined
each fiscal year.The formula is set forth in the
annual budget,which is incorporated herein by
reference.
~Charges to Cover the State Loan Program for the
Treatment Facility.A (see Appendin A,53.11 F.for
fee)fee per ABU shall be attached to the property
tan bills to cover the annual payment on the
$5,000,000 state loan until such loan is paid in
full.
GF.Monthly Service Charges for Commercial Sewer
Service.The Monthly Sewer Service charges for
service furnished by the District,shall be:
1.Commercial and Institutional (per ASU)
Commercial users shall be charged based upon
the ASUs derived in Section 53.11 E.(4).For
charges see Appendix A,53.11.GF.l.
53-12
2.Industrial and Other Users
Charges determined by the Board of Directors on
a case-by-case basis.
Monthly sewer service charges shall commence upon
installation of the water meter to serve the
premises receiving the sewer service,upon
connection to the District sewer system,upon start
of occupancy of the premises to be served,or one
year after the date the application for sewer
service is filed,whichever is earlier.If a sewer
service connection has been obtained and if sewer
service will not be used until some time after
installation of the water meter,commencement of the
sewer service charge may be deferred until the later
date only upon prior approval of the General
Manager.
H.Issuance and Payment of Sewer Bills
1.Issuance of Statements:Statements for sewer
service or other charges will be mailed monthly
or as soon as practical,after the applicable
charges have been determined.
2.Due Date:Each statement issued by the
District for such charges shall be due and
payable on the date of mailing or other
presentation to the customer.
3.Final Payment Date:All charges in each
statement must be paid on or before the final
payment date shown on the statement,which
shall be at least 20 calendar days following
the date of mailing or presentation of the
statement.
4.Place of Payment:Payments shall not be
credited to a customer's account until cash,
check,credit card,draft,electronic funds
transfer,money order or any other acceptable
form of payment that will be honored by the
bank has been received by the District at the
District business office during regular office
hours.Deposit of payment in the mail or at a
location other than the District business
office shall not be credited to a customer's
account until received at the business office.
5.Returned Check Charges:A returned payment
charge (see Appendix A,34.01 0.2 for charge)
shall be added to a customer's account in each
instance where payment has been made to the
53-13
District with a check,draft,credit card or
any other acceptable form of payment that has
not been honored upon presentment to the bank
upon which it is drawn.
I.Delinquent Accounts
1.Requirement of Deposit Due to Repeated
Delinquencies:If payments on a customer
account have become delinquent five or more
times,the General Manager,Chief Financial
Officer,or any person delegated by the General
Manager,shall be authorized to require the
customer to make a deposit with the District,
in cash or any other form satisfactory to the
General Manager.The deposit amount shall be
established at the discretion of the General
Manager and the Chief Financial Officer,but
shall not exceed two times the highest bill
during the twelve (12)months preceding the
date of demand for a deposit.
2.Handling of Deposit:A deposit shall not earn
interest and shall only be applied to reduce or
satisfy amounts due the District in the event
of termination of service.A deposit does not
constitute payment for service bills and the
customer shall be required to comply with bill
payment requirements to continue receiving
service.
3.Refund of Deposit:A deposit required under
this Section shall be refunded to the customer
as provided in Section 25.04 B.
53-14
Exhibit IV
SECTION 53 FEES,RATES,CHARGES AND CONDITIONS FOR SEWER
SERVICE
53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY
Sewer service capacity may be acquired only for service
to a specific address,parcel of land,or a land development
project covered by an approved map.An approved map shall
mean a recorded final map,a recorded parcel map or a
tentative subdivision map that has been approved by the County
or by a City,as applicable.
53.02
53.03
A.
A.
SERVICE AREAS
Service Areas.Sewer service shall be furnished by
the District only to property located in Improvement
District No.14 ("I.D.14"),Improvement District
No.18 (III.D.18"),and Assessment District No.4
("A.D.4"),and the Russell Square Sewer Service
Area.Sewer service to property located outside
such areas may be furnished only upon annexation to
ID 18 and payment of all applicable annexation fees.
ACQUISITION OF SEWER CONNECTIONS FOR SERVICE IN I.D.
14,I.D.18 AND A.D.4
There shall be no connection capacity fee for sewer
service to parcels already annexed into Improvement
District No.14,Improvement District No.18 and
Assessment District No.4 on or after December 16,
1998.
53.04
A.
ACQUISITION AND PURCHASE OF SEWER CAPACITY FOR
SERVICE IN THE RUSSELL SQUARE SEWER SERVICE AREA
District Acceptance of Sewer Facilities for Russell
Square Area.Under an Agreement with Cal Dorado
Development,Inc.,dated June 28,1981,the District
accepted title to a sewer pump station,force main
and appurtenances for a sewage system to provide
sewer service to the residential dwelling
units to be constructed within the parcels of land
in San Diego County Tentative Parcel Map 17150.
Under an Agreement with Cal Dorado Development,
Inc.,dated June 18,1981,the District agreed to
provide service to such parcels on the terms and
conditions contained therein.On October I,1984,
pursuant to Resolution No.2139,the District Board
of Directors accepted title to the facilities.
53-1
B.Designation of Russell Square Sewer Area.The geo-
graphical area described on the District Map
entitled "Russell Square Sewer Service Area{"dated
October 11{1988{on file with the District
Secretary{constitutes the Russell Square Sewer
Service Area.
C.Connection Fees for Connections for Sewer Service
through the Russell Square Sewer Pump Station.
1.Sewer Connection Fee
A connection fee (see Appendix A{53.04 C.1.
for fee)for each EDU of sewer service provided
through Russell Square Pump Station shall be
collected.The connection fee is due at the
time an application for sewer service is
submitted.The number of EDUs for the con-
nection shall be as set forth in Section 53.09
of the Code.Since the Russell Square Pump
Station and force main were constructed by the
developer or his assignee{at their expense {
for the purpose of providing service to the
parcels within Tentative Parcel Map 17150{the
connection fee shall not apply to connections
for sewer service to the parcels within said
map.Such exempt parcels are currently identi-
fied as Assessor Parcel Nos.497-011-41{497-
011-42{497-011-44{497-011-46 and 497-011-47.
2.Monthly Sewer Service Charge
A monthly sewer service charge (see Appendix A{
53.04 C.2.for charge)to cover normal
operational costs of the Russell Square Pump
Station and force mains shall be collected.
This charge shall be reviewed by the Board of
Directors from time to time to assure that such
charges cover the costs for operation of the
sewer facilities.
3.The proceeds of the fees and charges received
by the District under 1 and 2 above shall be
used by the District solely for maintenance {
replacement or repair under C.1.above and for
the operation of the facilities under C.2.
above.
4.In addition,the customer for such service
shall pay the monthly service charge for sewer
service set forth in Section 53.11.
53-2
53.05
53.06
53.07
53.08
1 .
CHARGES FOR INSTALLATION OF SEWER LATERALS
Upon application for construction of one or more
sewer laterals,the customer shall deposit with the
District the estimated costs to be incurred by the
District in connection with the installation of the
facilities required,as determined by the District.
Upon completion of the work,the District shall
calculate the actual costs incurred by the District
in performing the work.If actual costs are less
than the amount deposited,the District shall refund
the balance of the deposit to the customer.If
actual costs exceed the amount deposited,the
customer shall reimburse the District for the
additional costs.
PAYMENT OF FEES
All fees prescribed in the Code shall become owing,
due and payable at the time application is made to
connect a premise to the sewer system of the Dis-
trict.The fees shall be paid to the District prior
to the issuance of any permit authorizing the
connection of such premise to the District sewer
system.If the proposed connection cannot be made,
the fee may be refunded when approved by the General
Manager.
SEWER SERVICE USE CHANGES RESULTING IN INCREASED
SYSTEM UTILIZATION
The use of a sewer connection shall be limited to
the type and number of EDUs authorized by the
original wastewater discharge permit.Before adding
any additional equivalent dwelling units,buildings,
modifying existing buildings,or change of occupancy
type,the property owner shall make a supplementary
wastewater permit application to the District for
such change in use and pay additional sewer
annexation fees per EDU,if necessary,as may be
applicable.Periodic inspection of the premises may
be made by the District and if actual use is greater
than estimated use,an assessment for additional
annexation fees shall be assessed in accordance with
the fee schedule in the then current Code of
Ordinances.
WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION
A wastewater discharge permit shall be required for
any property for which a request is made to dis-
charge into the District sewage system.
53-3
3.
53.09
1.
Every wastewater discharge permit shall expire by
limitations and shall become null and void,if the
construction or work authorized by such permit is
not commenced within 120 days from date of issuance
of such wastewater discharge permit or if the con-
struction or work authorized by such wastewater dis-
charge permit is suspended or abandoned for a period
of 120 days at any time after the work is commenced.
Before such work can be recommenced,a new waste-
water discharge permit application must be filed
with the District.The District may reactivate the
previous wastewater discharge permit provided that
wastewater quantity and type is the same as the
wastewater discharge allowed under the original per-
mit,and provided further that such suspension and
abandonment has not exceeded one year.Fees paid
for the previous wastewater discharge permit may be
credited toward the total permit fees required on
the new permit application.Reactivation of the
previous wastewater discharge permit shall be sub-
ject to District sewer capacity being available at
the time of new application and subject to any
additional costs or charges imposed during the
period of such suspension or abandonment.
BASIS FOR DETERMINATION OF EDUs
The number of EDUs for sewer service shall be deter-
mined on the following basis:
a)Residential Facilities EDUs
1)Single-Family Residence 1.0
(Includes manufactured homes,and mobile
homes which are on private lots
A secondary structure with a kitchen is
considered an additional EDU
2 )
3)
4)
Apartments and Multiple Family Housing
Each individual living unit
Residential condominiums
Each individual living unit
Mobile Home and Trailer Parks
Per each individual space
53-4
1.0
1.0
1.0
b)Commercial/Industrial Facilities
1)Food Service Establishments
a)Take-out restaurants with dis-
posable utensils,no dishwasher
and no public restrooms 3.0
b)Miscellaneous food establishments -
ice cream/yogurt shops,bakeries
(sales on premise only)3.0
c)1)Take-out/eat-in restaurants with
disposable utensils,but with
seating and public restrooms 3.0
2)Restaurants with reuseable
utentsils,seating and public
restrooms (0-18 seats)
Each additional 6 seat unit,
or portion thereof
2)Hotels and Motels
3.0
1.0
a)
b)
Per living unit without kitchen
Per living unit with kitchen
0.38
0.60
3)Commercial,Professional,Industrial
Buildings,Establishments not specifi-
cally listed herein
a)Any office,store or industrial
condominium or establishments.
first 1,000 sq.ft.1.2
Each additional 1,000 sq.ft.or
portion thereof 0.7
b)Where occupancy type or usage is
unknown at the time of application
for service,the following EDUs
shall apply.This shall include,
but not be limited to,shopping
centers,industrial parks and profes-
sional office buildings.
53-5
First 1,000 sq.ft.of gross build-
ing floor area 1.2
Each additional 1,000 square feet
of gross building floor area.Por-
tions less than 1,000 sq.ft.will
be prorated.0.7
4)Self-service laundry per washer 1.0
5)Churches,theaters and auditoriums per
each 150 person seating capacity or any
fraction thereof.(Does not include
office spaces,schoolrooms,day-care
facilities,food preparation areas,etc.
Additional EDUs will be assigned for
these supplementary uses).1.5
6)Schools
a)
b)
c)
Elementary Schools -For
each 50 pupils or fraction
thereof
Junior High Schools -For
each 40 pupils or fraction
thereof
High Schools,Colleges and
Universities -For each
24 pupils or fraction
thereof
1.0
1.0
1.0
Additional EDUs will be prorated based
on above values.
The number of pupils shall be based on
the average daily attendance of pupils
at the school during the preceding fiscal
year,computed in accordance with the
education code of the State of California.
However,where the school has had no
attendance during the preceding fiscal
year,the General Manager shall estimate
the average daily attendance for the fiscal
year for which the fee is to be paid and
compute the fee based on such estimate.
53-6
7)Convalescent Homes
a)Skilled nursing care facilities,
psychological hospitals,con-
valescent hospitals;licensed by
the Department of Health.0.7/bed
b)Community Care Facilities with 16
or more beds licensed by the State
Department of Health.0.5/bed
c)Small Community Care Facilities
with 7 to 15 beds licensed by the
County Department of Social
Services 0.5/bed
d)Community Care Homes with six or
fewer total residents,including
resident staff and housekeepers
(to be the same EDU as a single-
family residence).1.0
8)Other
In the case of commercial,industrial and
other business establishments such as bot-
tling works,supermarkets,markets,
deli/markets,convenience stores,hospi-
tals,laundries (other than self-service
laundries),automobile service stations,
mortuaries,day-care centers,bars,pool
halls,and other establishments not
included in items 1)through 7)inclusive,
or when the EDUs specified in items 1)
through 7)are not representative of
actual flow due to the number of employees
or type of operation,the number of
equivalent dwelling units shall be deter-
mined in each case by the General Manager
and shall be based upon the estimated vol-
ume and type of wastewater discharge into
the sewer.
53-7
53.10
53.11
A.
B.
TRANSFER,ASSIGNMENT,OR RESALE OF SEWER
CONNECTION RIGHTS
EDU sewer connection rights obtained by a customer
may not be sold,transferred,or assigned separately
from ownership of the real property for which they
were obtained,unless otherwise stated in an
agreement with the District.
SEWER SERVICE RATES AND CHARGES
Set-up Fees for Accounts.A set-up fee (see
Appendix A,53.11 A.for fee)shall be charged for
each account transferred to another customer.
Residential Sewer Charges.
Five-year Rate Increase Schedule -All District
sewer rates,charges,and fees are subject to a
five-year schedule of rate increases beginning
September I,2009 and periodically thereafter
through June 30,2014.The increases under this
schedule shall be the amount sufficient to cover
cost increases related to operation and maintenance,
but not to exceed 10%per year.
Five-year Periodic Pass-through Rate Increases or
Decreases from District Wholesalers -All District
sewer rates,charges,and fees are subject to
periodic rate changes from the District's public
agency wholesalers for a five-year period beginning
September 1,2009 through June 30,2014.
(1)Winter Average Determination.Sewer service
usage fee shall be based on the "Winter
Average"water consumption,measured in units
of hundred cubic feet (HCF).The winter
average period is January through April.The
winter average is calculated by adding the four
months of water consumption for the preceding
winter and dividing the resulting amount by
four.This average is then reduced by a 15%
usage discount,recognizing that not all water
used flows into the sewer system,to determine
the "Winter Average"for billing purposes.
(2)Usage Fee.The usage fee rate (see Appendix A,
53.11 B.2.for rate)is multiplied by the
"Winter Average"calculation for each customer
(after the above noted 15%discount)and the
resulting amount is added to the Fixed Service
Charge applicable to the size of meter.The
resulting fixed fee shall be charged on a
53-8
monthly basis for an entire calendar year,
until a new "Winter Average"is determined for
the following year.
(3)Base Fee.The monthly base fee per meter size
is set forth in Appendix A,53.11 B.3.
(4)Monthly Residential Sewer Rate without
Consumption History.The average residential
sewer charge shall be determined by calculating
the total usage fee for all residential
customers and dividing by the number of
residential customers.Then the monthly base
fee for a 3/4 inch meter is added to this
average fee and this shall be used to determine
the rate per ASU to be used for commercial
customers.The monthly residential sewer rate
without consumption history is as set forth in
Appendix A,53.11 B.4.
C.Single Residential Winter Averaging
(1)Defined as:Sewer service for individually
metered residential households.
(2)The monthly sewer bill is calculated by adding
the base fee plus the usage fee as described in
5 .11 .B.(1),(2),& (3)above.
(3)The maximum "Winter Average"for individually
metered residential customers is 30 units
(after the 15%discount).
(4)Residential Service without Consumption
History.Sewer service for new accounts with
no prior winter consumption,customers using
well water or other unmetered water shall be
assigned a "Winter Average"for single
individually metered households.See Appendix
A,53.11 C.4.for Winter Averaging fees.
D.Multi-Residential Rate Charges
(1)Defined as:Sewer service for master metered
water service for multiple-residential
households including for example;duplex,
townhomes,apartments,and mobile homes.
(2)The monthly sewer bill for the complex is
calculated by adding a 3/4 inch base fee (as
set forth in Appendix A,53.11.B.3.)times the
number of units in the complex plus the usage
fee (as set forth in Appendix A,53.11.D.2.)
for the entire complex.(Note:There is no cap
53-9
on consumption for the multi-residential
customers.)
(3)New complexes that do not have a prior winter
consumption history to determine their monthly
usage fee shall be assigned a "Winter Average"
for each multiple-residential unit in a master
metered residential complex.See Appendix A,
53.11 C.4.for Winter Averaging fees.
E.Commercial Sewer Charges
(1)ASU Determination:The charges for commercial
sewer service shall be based on the rate of
discharge and the strength of sewage.The Board
of Directors may adjust the charges in proportion
to the amount of water not entering the sewer
which is substantiated by the property owner or
discharger.
(2)The strength of sewage is based on its biochemical
oxygen demand (BOD)and the cost of removing
suspended solids (SS).
(3)The formula is derived by taking the total cost of
providing sewer service and charging each user for
a pro-rata share.
(4)The State Revenue Program Guidelines require use
of an "Assigned Service Unit Assignment Formula"
which converts higher strength uses into a service
unit value which is comparable to the use impact
of a single-family residential user or equivalent
dwelling unit.The formula for determining an
Assigned Service Unit (ASU)for a single-family
dwelling is set forth in the annual budget,which
is incorporated herein by reference.
(5)The formula is based on an estimated daily flow of
250 gallons per day plus 280 milligrams per liter
of BOD and 234 milligrams per liter of SS for a
residential equivalent dwelling unit.
(6)For commercial users the flow is based on 85%of
their prior 12-month water consumption to reflect
the amount of water that returns to the system.
The basis for determining estimated flow for
unmetered water will be calculated on the demand
imposed on the water system.The strength of
discharge for commercial user is based on whether
it is classified as a low-strength,medium-
strength or high-strength user.
53-10
User Classification
Low-Strength Commercial 1.000 Strength Factor
Car wash
General office and buildings
Barber and beauty shops
Department,retail stores and general
commercial
Hospitals and convalescent homes
Laundromat,laundry and dry cleaners
Professional office or office building
Warehouse
Other uses having a similar strength as
determined by the District
Medium-Strength Commercial =1.238 Strength Factor
Bars without dining facilities
Bowling alley
Hotels without dining facilities or cooking
facilities
Auto repair/sales shop and service station
Shopping centers
Other uses having a similar strength as
determined by the District
High-Strength Commercial =2.203 Strength Factor
Bakery or bakery with deli
Hotel with dining facilities
Restaurants and bars with food
Supermarkets
Other uses having a similar strength as
determined by the District
Institutional =1.000 Strength Factor
Churches:Treated the same as Low-Strength
Commercial.
Schools:For public schools flow is based on
average daily attendance (IIADAII)for the prior
school year,including summer school,as
reported by schools to meet state requirements.
Private schools will be required to file a
report verifying their attendance.For
elementary schools 50 students shall equal 1
ASU.For junior high schools 40 students shall
equal 1 ASU and for high schools 24 students
equals 1 ASU.The formula for schools shall be
the same as applies to single-family
53-11
residential.
E.6.
For charges see Appendix A,53.11
Colleges:For colleges,flow is based on the
number of Certificated and Classified Staff,
and students enrolled in each school session
(spring,summer,and fall):
Gallons per day (GPD)no.of students and staff x
no.of weeks spring
session)
+(no.of students and staff
x no.of weeks summer
session)
+(no.of students and staff
x no.of weeks fall
session)
+(no.of staff x no.of non-
session weeks)
x 23 7 52
ASU Daily Flow x Strength Factor
[(GPD x 85%)7 250]x 1.000
The minimum charge for commercial shall be no lower
than 1 ASU at low strength.Charges are determined
each fiscal year.The formula is set forth in the
annual budget,which is incorporated herein by
reference.
F.Monthly Service Charqes for Commercial Sewer
Service.The Monthly Sewer Service charges for
service furnished by the District,shall be:
1.Commercial and Institutional (per ASU)
Commercial users shall be charged based upon
the ASUs derived in Section 53.11 E.(4).For
charges see Appendix A,53.11.F.l.
2.Industrial and Other Users
Charges determined by the Board of Directors on
a case-by-case basis.
Monthly sewer service charges shall commence upon
installation of the water meter to serve the
premises receiving the sewer service,upon
connection to the District sewer system,upon start
of occupancy of the premises to be served,or one
year after the date the application for sewer
service is filed,whichever is earlier.If a sewer
service connection has been obtained and if sewer
service will not be used until some time after
installation of the water meter,commencement of the
sewer service charge may be deferred until the later
53-12
date only upon prior approval of the General
Manager.
H.Issuance and Payment of Sewer Bills
1.Issuance of Statements:Statements for sewer
service or other charges will be mailed monthly
or as soon as practical,after the applicable
charges have been determined.
2.Due Date:Each statement issued by the
District for such charges shall be due and
payable on the date of mailing or other
presentation to the customer.
3.Final Payment Date:All charges in each
statement must be paid on or before the final
payment date shown on the statement,which
shall be at least 20 calendar days following
the date of mailing or presentation of the
statement.
4.Place of Payment:Payments shall not be
credited to a customer's account until cash,
check,credit card,draft,electronic funds
transfer,money order or any other acceptable
form of payment that will be honored by the
bank has been received by the District at the
District business office during regular office
hours.Deposit of payment in the mail or at a
location other than the District business
office shall not be credited to a customer's
account until received at the business office.
5.Returned Check Charges:A returned payment
charge (see Appendix A,34.01 D.2 for charge)
shall be added to a customer's account in each
instance where payment has been made to the
District with a check,draft,credit card or
any other acceptable form of payment that has
not been honored upon presentment to the bank
upon which it is drawn.
I.Delinquent Accounts
1.Requirement of Deposit Due to Repeated
Delinquencies:If payments on a customer
account have become delinquent five or more
times,the General Manager,Chief Financial
Officer,or any person delegated by the General
Manager,shall be authorized to require the
customer to make a deposit with the District,
in cash or any other form satisfactory to the
General Manager.The deposit amount shall be
53-13
established at the discretion of the General
Manager and the Chief Financial Officer,but
shall not exceed two times the highest bill
during the twelve (12)months preceding the
date of demand for a deposit.
2.Handling of Deposit:A deposit shall not earn
interest and shall only be applied to reduce or
satisfy amounts due the District in the event
of termination of service.A deposit does not
constitute payment for service bills and the
customer shall be required to comply with bill
payment requirements to continue receiving
service.
3.Refund of Deposit:A deposit required under
this Section shall be refunded to the customer
as provided in Section 25.04 B.
53-14
Workshop Agenda
@ Budget Highlights (Joe Beachem)
\V Capital Improvement Budget (Rod Posada)
•Balanced Operating Budget (Rita Bell)
9 Summary of Recommendations (Joe Beachem)
Attachment C
1
Workshop Objectives
®Present for approval a $78.1 M Operating BUdget
\!)Present for approval a $22.6M CIP Budget
@ Request approval for rate increases
•Water -7.7%average water rate increase on all billing cycles
that begin ill calendar year 2012
•~average sewer rate increase on all billing cycles
that begin in calendar year 2012
@ Obtain direction to send the 30 day notices of increases to
customers (Complies with requirements of Proposition 218)
(i)Request approval of associated fund transfers
2
Water
&
Sewer
Rates
3
$2,420,500
$1,830,000
$1,515,000
$1,720,000
$595,000
Proposed Fund Transfers -$13.7M
.'Adheres to the Reserve Policy guidelines
(~To maintain all reserves at target levels
Potable
General Fund Reserve
Expansion Designated to Sewer Replacement
General Fund to Designated New Supply
General Fund to Sewer Replacement
General Fund to Sewer General Fund
Recycled
General Fund Draw Down
Designated Betterment to Designated Expansion
General Fund to Dosignated Expansion
General Fund to Designated New Supply
General Fund to Replacement
Sewer
General Fund Reserve
Replacement to Designated Expansion
Replacement to General Fund
Designated Betterment to General Fund
$522,800
$405,000
$555,000
$70,000
$3,330,000
$191,800
$430,000
$120,000
$30,000
•
218%•
252%
164%174%
265%•
168%
125%
4
Operating Budget Highlights
Items puttrng upward pressure on rates:
•Total water costs are increasing $3.2M
o Current rate increase adds $1.8M to expense
o Prior year's rate increase has a full year impact
Offset by reduced water purchases
•Labor &Benefits increase $1.3M as per MOU
•Materials &Maintenance increase $530,500
•Lower sales revenue of $1.4M due to loss of sales in highest tiers
10
5
6
7
Sewer Budget Highlights
a;Sewer Rate Increase
•7.5%in 2012 and projected for all six years
•Typical customer will see a $1.95 increase per month
(0)Sewer Debt Paid Off
•Reduces each residential customer's monthly cost by $4.50
~CIP Funding $2.9M
•Reserves on Target
Sewer Service Providers Cost Increases $333,400 or 11.7%
•City of San Diego -Wastewater Department increase of cost of $358,800
$97,800on-going and $261,000 one-time for treatment plant upgrades
•Spring Valley Sanitation District decrease of ($24,800)
8
9
Growth Projections 1
FISCAL YEARS
~2912 ~013 2014 2015 2016 2017
Single FamiiY 250 375 375 450 450 450DwellingUnits
Condominium 200 200 300 500 625 750
Units
Apartment Units 200 200 300 400 400 400
Non-Residential2 $14 $14 $14 $14 $27 $27
(Permit valuation
in millions of
dollars)
'Source:MarketPointe Realty Advisors Report May 2011
2Office.commercial.and hotels in the Central and South Districts
10
CIP Budget Assumptions
.-:Growth to remain relatively flat for FY 2012
(0)Six-year CIP expenditure plan to be as level as possible
(0)The Engineering News-Record Public Works
Construction Cost Index projects increases to 1.8%from
March 2010 to March 2011
o SDCWA Construction index for the Calendar Year 2010
was 6%
•The major considerations for cost increases were:
1.Impacts due to recession and work availability
2.Commodity and resource costs (Le.,steel,fuel,aggregate,
electricity,concrete)
3.Regulatory impacts (i.e.change in RWQCB requirements for storm
water)
CIP Six-Year Budget Look Forward
(5 Millions)
FY 2011
FY FY FY FY FY FY
2011 2012 2013 2014 2015 2016
Totals $28.5 P$42.3 $47.9 $36.9 $18.8 $7.0'_-,J!
Six-Year Total:$181.4
FY 2012
FY FY FY FY FY FY
2012 2013 2014 2015 2016 2017
Totals $22.6 $21.4 $27.6 $22.1 $26.1 $34.8
Six-Year Total:$154.6
11
Water Resources Supply Projects
Fiscal Year 2012 -2017 CIP
($Millions)
Rancho Del Rey Groundwater Well Development
Otay Mesa Desalination Conveyance and
Disinfection System
San Diego Formation Groundwater Feasibility Study
North District -South District Interconnection System
Potable Irrigation Meters to Recycled Water
Conversions
Total Ex enditure Pro"ection
$3.5
$29.0
$0.4
$36.8
$1.6
12
13
Budget Process
.'Strategic Plan Objectives set the overall direction
for the budgeting effort
4.Each department makes budget requests
(!J Review of all Operating and CIP Budget requests
with Chiefs,Assistant General Managers and
General Manager
~Review and incorporate reasonable assumptions
on sales,growth,interest rates and price inflators
(~Evaluate cost saving measures and make
adjustments where prudent
•Recommend rates that support Strategic Plan
initiatives,CIP and operational needs
Budget Objectives
.-Minimize rate impacts
o CWA City of San Diego water cost increases
c Sales projection
c Sewer cost increases from City of San Diego
and County of San Diego
~)Maintain target reserve level and build debt
coverage levels to target
(!)Maintain water and sewer rate position relative to
other agencies in the region
21
14
15
16
Sewer State Loan Paid ,Off
.'FY 2011 marks the final year of collecting the $54 per
ASU on customer's property tax bill to repay the State
Loan
'.This will save a residential customer $4.50 per month
on their property tax bill
®The 7.5%rate increase equates to an increase of
$1.95 on a typical monthly sewer bill
@ The net savings will be $2.55 per month or a 6%
reduction
17
18
19
ISIl
171l
I(,()
I5Il
1~1l
131l
121l
3)1l
3~1l
330
321l
Sill
301l
2~O
2XIl
271l
261l
~~~I'-,;;10.7%Reduction
2 ~:.::;!:~........
!:'i"-fj
-_.I--r-----1-:1:.........
I!~!::l ....3-I--I--,-r--I-I--I--51-:3 ::i
I-----I-I--I---1-.--f--I--
I----I--I---I--I---;-I--I--
21HI~21l1l)21l1l('21l1l7 21lllX 21l1l9 21l11l 2011 21112 21l!3 21l1~21l1)21l1('
Customers perFTE
17%Increase .------_____r:::.
~--
---~-i-----~r--1-~i--1-_.....--;-....-~
l-I-- I----I---~;!I--f;--~
I ...
l-I I--1-~--21----------......
l-i-i-I-1--- ---I-
21l1l4 201l)21l1l(,21l1l7 21lllS 20lN 21lW 21111 2012
20
Labor Costs
{~Labor and Benefits inorease of $1,370,200 or 8.2%
•Staff reduction a.nd position changes decrease of
($320,300)
•Labor and Bene:fits
')COLA and merit increases $641 ,300 (In accordance with existing MOU)
J Net change to vacancy factor and vacation and sick leave tal<en $122,900
Benefit cost increases $882,100
•Charges to CIP decrease which causes increase to
Operating by $44,200
Administrative Cost
-.Administrative Expense Budget Decrease of
($1,020,900)or (12.3%)
•Moved $142,400 to CIP based work being performed
•Decreased conservation incentives $178,900
C)Offset by $100,000 cut in grant revenue
-,Based on sun-setting of incentive programs by MWD and CWA
•Decreased outside services $195,000
c,Complelion of major planning projects in Engineering
~-Match project timing to Strategic Plan
•Reduced Temporary Services $147,900
"Some of this labor is shown in Labor and Benefits
21
22
Conclusi·on
;~'Balanced budget which meets the needs of
our customers and supports the Strategic
Plan
(~i Supported by a 7.7%potable and recycled
water rate increase
~'Supported by a 7.5%rate increase in sewer
charges
23
Summary of Recomnlendations
1.Adopt Resolution No.4173 to approve the
FY 2011-2012 Operating and CIP Budget
2.Approve the fund transfers
,-.Approve Ordinance No.530 to amend
Appendix A of the Code of Ordinances with
the proposed water and sewer rate increases
4 Direct staff to send notices of rate increases
to customers
24
Attachment D
Preliminary Operating and Capital Budget
Fiscal Year 2011-2012
Refer to Separate File
(Agenda Item 12,Attachment D)
Notice of Residential
Water Rate Increase
Attachment E
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley,CA 91978
619-670-2222
www.otaywater.gov
NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE ON
WATER USAGE BEGINNING IN JANUARY 2012
Dear Customer,
An overall rate increase of 7.7%was approved by the Otay Water District's (the "District")Board of
Directors as part of the annual budget adoption process completed in May,2011.The new water rates
and charges will apply to water billed beginning February 1,2012 and,depending on your billing cycle,
may apply to water usage as early as the beginning of January,2012.This letter serves as a 30-day
notice of rate increases.
The District is a revenue neutral public agency.To continue providing reliable high-quality water
services,the District must implement rate increases and must pass-through to its customers higher costs
imposed by water wholesalers,the Metropolitan Water District of Southern California (MWD),San Diego
County Water Authority (CWA),and the City of San Diego.
On August 24,2009,the District adopted a five-year schedule of rates in compliance with applicable
provisions of law.The rate increase herein noticed is a one hundred percent pass-through from the
District's water wholesalers.This increase is within the limits contemplated in the five-year schedule of
rates.
Water wholesalers are raising their water rates to obtain new and more reliable supplies of water.
These include more reliable emergency resources,agricultural to urban water transfers,canal lining
projects,as well as potential new sources of water supplies including ocean water desalination.In
addition,rate increases cover the cost of acquiring imported water from the Colorado River and Northern
California.
For its part,the District has worked diligently to reduce internal costs,including reducing the number of
full-time employees and has instituted efficiency programs such as automated meter reading and online
bill pay services,which minimize the impact of higher water costs from wholesalers.
Customers who are interested in learning ways in which they can reduce their water usage to minimize
the effects of this increase can visit the District's Conservation page at www.otaywater.gov.Additionally,
the Water Conservation Garden located in Rancho San Diego is free to the public and offers various
conservation exhibits and classes.For more information about the Garden,visit www.thegarden.org.For
more information,please visit www.otaywater.gov or contact us via email at info@otaywater.gov.
$120
SURVEY OF MEMBER AGENCYWATERRATES
15 Unit Water Use and 3/4"Residential Meter
Projected Rates Effective January 2012
$100
$80
$60
$40
$20
$-
Typical Bill at 15 HCF2 (or Units)per Month
For a typical single-family residential customer,your bill will increase by $5.13.Your bill will
vary based on meter size,water consumption,and geographic location.
MWD/CWA1 S t F 1 Water Rate2 E Ch 4 Water Charge byysemeenergyargeImprovementDistrict5
$0.88Current
New
$11.82
$14.01
$14.58
$14.58
$38.10
$40.45
$2.34
$2.36
Increase in monthly water bill:
$67.72
$72.85
$5.13
New Rates and Fees
Single Family Consumption Blocks
(Units or HCF)2
Conservation Tier3
6 -10
11 -22
23 +
Current
$1.49
$2.31
$3.00
$4.63
Current
Meter Size System Fee MWD/CWA Total
3/4"
1"
1 1/2"
2"
$14.58
$18.52
$28.37
$40.18
$11.82
$19.69
$39.44
$63.07
$26.40
$38.21
$67.81
$103.25
Energy Charges4
Improvement District5 No.3
Improvement District5No.1 0
La Presa5
Current
$0.044
$0.19
$0.27
$0.08
Footnotes
required to pump each unit ofwater 100 feet in
elevation.This is charged proportionately for every
foot ofelevation over 450 feet.This increase is
necessary due to increased power costs to the
District.
5.This charge is a per unit charge and your bill will
vary based on water consumption.Improvement
district charges do not apply to the first five units
of water per month.
Charges collected through the property tax role
(Availability Fees and general obligation debt)are
not included in this total.
1.These fees are based on the meter size.The
MWD/CWA fee is increasing to reflect the full
pass-through ofthis cost by the District's water
suppliers.
2.This cost varies based on water usage and can be
calculated using the consumption block tables.
One unit of consumption equals 748 gallons or one
HCF (hundred cubit feet).
3.The Conservation Tier discount applies toward the
first five units when overall consumption is ten units 6.
or less.
4.The Energy Charge represents the cost ofenergy
This information reflects only changes to rates.For a comprehensive listing ofrates,please
see the Otay Water District's Code ofOrdinance at www.otaywater.gov.
Notice of Residential and
Multi-Residential Sewer Rate Increase
Attachment F
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley,CA 91978
619-670-2222
www.otaywater.gov
NOTICE OF INCREASED SEWER RATES AND CHARGES EFFECTIVE ON
SEWER SERVICE BEGINNING IN JANUARY 2012
Dear Customer,
An overall rate increase of 7.5%was approved by the Otay Water District's (the "District")Board
of Directors as part of the annual budget adoption process completed in May,2011.The new
sewer rates and charges will apply to service billed beginning February 1,2012 and,depending on
your billing cycle,may apply to service as early as the beginning of January,2012.For a typical
residential sewer customer whose water usage is approximately 15 units per month,your sewer
bill will increase by $1.95 per month.This letter serves as a 30-day notice of rate increases.
The District is a revenue neutral public agency.Your sewer bill reflects only those charges
sufficient to support your sewer service.To continue providing sewer services,the District must
adjust its rates for service,implement certain rate increases and pass-through higher costs to its
customers based on rate changes from the District's sewage treatment and disposal providers.For
instance,while the County of San Diego decreased its rates for service,this positive action was
offset by a 9.4%increase from the City of San Diego for wastewater disposal.
On August 24,2009,the District adopted a five-year schedule of rates in compliance with
applicable provisions of law.The rate increases herein noticed reflect a pass-through increase of
7.5%.One hundred percent of this increase is the result of higher service rates for wastewater
disposal from the City of San Diego.The sewer rate increase is within the limits contemplated in
the five-year schedule of rates.
For its part,the District has worked diligently to reduce internal costs to minimize the impact of
higher costs from sewage treatment providers.The chart below shows how the District's sewer
rates compare to other agencies in San Diego County.For more information,please visit
www.otaywater.gov or contact us via email at info@otaywater.gov.
$140
$120
$100
$80
$60
$40
$20
Sewer Rate Comparison in San Diego County
15 UnitWaterUse and3/4"ResidentialMeter
ProjectedRates Effective January2012
Residential Sewer Rate Increase
The monthly sewer service charge for a typical single-family residential customer with
either a 3/4"or 1"water meter and a Winter Average of 15 HCF (hundred cubic feet or
one unit)will be calculated as follows:
Usage Fee Rate x Winter Average +a Monthly Base Fee
Current
New
Meter Size
3/4"
1.00"
Usage Fee
Usage Fee
$21.30
$22.56
Current
$11.57
$16.87
$1.67
Base Fee
$11.57
$12.26
Total
$32.87
$34.82
A typical bill is based on 12.75 HCF of water (15 -2.25 HCF).This 15%discount is
an acknowledgement that all water purchased does not go to the sewer system.The
maximum bill for a 3/4"meter is $65.36.The maximum bill for a 1.0"meter (based on
30 HCF,which as already been reduced by the 15%discount)would be $70.98.
The Winter Average is defined as the units of water billed from January through April
of the previous year divided by four.New customers will have a Winter Average as-
signed of 15 HCF and pay $34.82 per month until a Winter Average can be estab-
lished.
Multi-Residential
The total sewer bill for mUltiple residential customers is calculated just like a residen-
tial customer with the exception that the base fee is multiplied by the number of dwell-
ing units,and the Winter Average,after being reduced by 15%,has no maximum.
This information reflects only changes to rates.For a comprehensive listing ofrates,please see
the Otay Water District's Code ofOrdinance atwww.otaywater.gov.
Notice of Public and Commercial
Water Rate Increase
Attaclunent G
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley,CA 91978
619-670-2222
www.otaywater.gov
NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE ON
WATER USAGE BEGINNING IN JANUARY 2012
Dear Customer,
An overall rate increase of 7.7%was approved by the Otay Water District's (the "District")Board
of Directors as part of the annual budget adoption process completed in May,2011.The new water
rates and charges will apply to water billed beginning February 1,2012 and,depending on your
billing cycle,may apply to water usage as early as the beginning of January,2012.This letter
serves as a 30-day notice of rate increases.
The District is a revenue neutral public agency.To continue providing reliable high-quality water
services,the District must implement rate increases and must pass-through to its customers higher
costs imposed by water wholesalers,the Metropolitan Water District of Southern California (MWD),
San Diego County Water Authority (CWA),and the City of San Diego.
On August 24,2009,the District adopted a five-year schedule of rates in compliance with
applicable provisions of law.The rate increase herein noticed is a one hundred percent pass-
through from the District's water wholesalers.This increase is within the limits contemplated in the
five-year schedule of rates.
Water wholesalers are raising their water rates to obtain new and more reliable supplies of
water.These include more reliable emergency resources,agricultural to urban water transfers,canal
lining projects,as well as potential new sources of water supplies including ocean water
desalination.In addition,rate increases cover the cost of acquiring imported water from the
Colorado River and Northern California.
For its part,the District has worked diligently to reduce internal costs,including reducing the
number of full-time employees and has instituted efficiency programs such as automated meter
reading and online bill pay services,which minimize the impact of higher water costs from
wholesalers.
Customers who are interested in learning ways in which they can reduce their water usage to
minimize the effects of this increase can visit the District's Conservation page at
www.otaywater.gov.Additionally,the Water Conservation Garden located in Rancho San Diego is
free to the public and offers various conservation exhibits and classes.For more information about
the Garden,visit www.thegarden.org.
For more information about the Otay Water District,please visit us at www.otaywater.gov or
contact us via email at info@otaywater.gov.
Consumption Blocks by Unit and System Fees by Meter Size
Public and Commercial Water Usage Fee «10"meter)
Consumption Blocks (units)1 Current
0-173 $2.44
174 -831 $2.50
832 or more $2.54
Public and Commercial Water Usage Fee (10"meter)
Consumption Blocks (units)1 Current
0-7,426 $2.44
7,427 -14,616 $2.50
14,617 or more $2.54
Current New
Meter Size System MWD/CWA2 Total System MWD/CWA2 TotalFee2Fee2
3/4"$14.58 $11.82 $26.40
1"$18.52 $19.69 $38.21
1 1/2"$28.37 $39.44 $67.81
2"$40.18 $63.07 $103.25
3"$71.68 $126.14 $197.82
4"$107.13 $197.11 $304.24
6"$205.59 $394.17 $599.76
8"$323.73 $630.71 $954.44
10"$461.57 $903.58 $1,365.15
Other Charges
Energy Charges3
Improvement District4 No.3
Improvement District4 No.10
La Presa4
Current
$0.044
$0.19
$0.27
$0.08
Footnotes
1.This cost varies based on water usage and can be
calculated using the consumption block tables.One
unit of consumption equals 748 gallons of water.
2.These Fixed Charges are based on the meter
size.The MWD/CWA fee is increasing to reflect
the full pass-through of this cost by the District's
water suppliers.
3.The Energy Charge represents the cost of energy
required to pump each unit of water 100 feet in
elevation.This is charged proportionately for every
foot of elevation over 450 feet.This increase is
necessary due to increased power costs to the
District.
4.This charge is a per unit charge and your bill will
vary based on water consumption.
This information reflects only changes to rates.For a comprehensive listing of rates,please
see the Otay Water District's Code ofOrdinance at www.otaywater.gov.
Attaclunent H
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley,CA 91978
619-670-2222
www.otaywater.gov
Notice of Landscape,Agricultural and Construction
Water Rate Increase
NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE ON
WATER USAGE BEGINNING IN JANUARY 2012
Dear Customer,
An overall rate increase of 7.7%was approved by the Otay Water District's (the "District")Board
of Directors as part of the annual budget adoption process completed in May,2011.The new water
rates and charges will apply to water billed beginning February 1,2012 and,depending on your
billing cycle,may apply to water usage as early as the beginning of January,2012.This letter
serves as a 30-day notice of rate increases
The District is a revenue neutral public agency.To continue providing reliable high-quality water
services,the District must implement rate increases and must pass-through to its customers higher
costs imposed by water wholesalers,the Metropolitan Water District of Southern California (MWD),
San Diego County Water Authority (CWA),and the City of San Diego.
On August 24,2009,the District adopted a five-year schedule of rates in compliance with
applicable provisions of law.The rate increase herein noticed is a one hundred percent pass-
through from the District's water wholesalers.This increase is within the limits contemplated in the
five-year schedule of rates.
Water wholesalers are raising their water rates to obtain new and more reliable supplies of
water.These include more reliable emergency resources,agricultural to urban water transfers,
canal lining projects,as well as potential new sources of water supplies including ocean water
desalination.In addition,rate increases cover the cost of acquiring imported water from the
Colorado River and Northern California.
For its part,the District has worked diligently to reduce internal costs,including reducing the
number of full-time employees and has instituted efficiency programs such as automated meter
reading and online bill pay services,which minimize the impact of higher water costs from
wholesalers.
Customers who are interested in learning ways in which they can reduce their water usage
to minimize the effects of this increase can visit the District's Conservation page at
www.otaywater.gov.Additionally,the Water Conservation Garden located in Rancho San Diego is
free to the public and offers various conservation exhibits and classes.For more information about
the Garden,visit www.thegarden.org.
For more information,please visit www.otaywater.gov or contact us via email at
info@otaywater.gov.
Consumption Blocks by Unit and System Fees by Meter Size
Water Usage Feel -Landscape,Agricultural,and Construction Water to 1"meter)
Consumption Blocks (units)l Current
0-49 $3.32
50 -132 $3.39
1330rmoffi $3.45
Water Usage Feel -Landscape,Agricultural,and Construction Water 1/2"to 2"meter)
Consumption Blocks (units)l Current
0-144 $3.32
145 -355 $3.39
356 or more $3.45
Water Usage Feel -Landscape,Agricultural,and Construction Water
Consumption Blocks (units)l Currento-1,044 $3.32
1,045 -8,067 $3.39
8,068 or more $3.45
Current
Meter Size System Fee2 MWD/CWA2 Total
3/4"$14.58 $11.82 $26.40
1"$18.52 $19.69 $38.21
1 1/2"$28.37 $39.44 $67.81
2"$40.18 $63.07 $103.25
3"$71.68 $126.14 $197.82
4"$107.13 $197.11 $304.24
6"$205.59 $394.17 $599.76
8"$323.73 $630.71 $954.44
10"$461.57 $903.58 $1,368.15
Other Charges
Energy Charges3
Improvement District4 No.3
Improvement District4 No.10
La Presa4
Current
$0.044
$0.19
$0.27
$0.08
Footnotes
1.This rate is a per unit charge.Customers using
temporary meters pay two times this rate.One unit
of consumption equals 748 gallons of water.
2.These Fixed Charges are based on the meter size.
The MWD/CWA fee is increasing to reflect the full
pass-through ofthis cost by the District's water
suppliers.
3.The Energy Charge represents the cost of energy
required to pump each unit of water 100 feet in
elevation.This is charged proportionately for every
foot of elevation over 450 feet.This increase is
necessary due to increased power costs to the
District.
4.This charge is a per unit charge and your bill will
vary based on water consumption.
This information reflects only changes to rates.For a comprehensive listing ofrates,please see the
Otay Water District's Code ofOrdinance at www.otaywater.gov.
Attaclunent I
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley,CA 91978
619-670-2222
www.otaywater.gov
Notice of Recycled Water Rate Increase
NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE ON
WATER USAGE BEGINNING IN JANUARY 2012
Dear Customer,
An overall rate increase of 7.7%was approved by the Otay Water District's (the "District")
Board of Directors as part of the annual budget adoption process completed in May,2011.The
new water rates and charges will apply to water billed beginning February 1,2012 and,depending
on your billing cycle,may apply to water usage as early as the beginning of January,2012.This
letter serves as a 30-day notice of rate increases.
The District is a revenue neutral public agency.To continue providing reliable high-quality
water services,the District must implement rate increases and must pass-through to its customers
higher costs imposed by water wholesalers,the Metropolitan Water District of Southern California
(MWD),San Diego County Water Authority (CWA),and the City of San Diego.
On August 24,2009,the District adopted a five-year schedule of rates in compliance with
applicable provisions of law.The rate increase herein noticed is a one hundred percent pass-
through from the District's water wholesalers.This increase is within the limits contemplated in the
five-year schedule of rates.
For its part,the District has worked diligently to reduce internal costs,including reducing the
number of full-time employees and has instituted efficiency programs such as automated meter
reading and online bill pay services,which minimize the impact of higher water costs from
wholesalers.
Customers who are interested in learning ways in which they can reduce their water usage to
minimize the effects of this increase can visit the District's Conservation page at
www.otaywater.gov.
Additionally,the Water Conservation Garden located in Rancho San Diego is free to the public
and offers various conservation exhibits and classes.For more information about the Garden,
please visit www.thegarden.org.
For more information,visit www.otaywater.gov or contact us via email at info@otaywater.gov.
Dedicated to C()rnnnlJf1itv '..:<:\''"111('''<:\
Consumption Fees by Meter Size
Recycled Water Usage Fee1
(3/4"to 1.0"m",;t",r\
Recycled Water Usage Fee1
(1 1/2"to 2.0"meter)
Consumption
Blocks (units)1
0-42
43 -97
98 or more
Current
$2.84
$2.88
$2.94
Consumption
Blocks (units)1
0-168
169 -402
403 or more
Current
$2.84
$2.88
$2.94
$2.84
$2.88
$2.94
Recycled Water Usage Fee1
(>6"meter)
Consumption
Blocks (units)1 Current
0-7,916
7,917 -16,357
16,358 or more
$2.84
$2.88
$2.94821ormore
Recycled Water Usage Fee1
(3"&4"meter)
Consumption
Blocks (units)1 Current
0-403
404 -820
Other Charges
Current
Energy Charges2 $0.044
Footnotes
1.Recycled water rates are based on meter size and the number of recycled
water units used each month.A unit of recycled water equals 748 gallons.
2.The Energy Charge represents the cost ofenergy required to pump each
unit of recycled water 100 feet in elevation.This is charged proportionately
for every foot of elevation over 450 feet.This increase is necessary due to
increased power costs to the District.
This information reflects only changes to rates.For a comprehensive listing ofrates,please see
the Otay Water District's Code ofOrdinance at www.otaywater.gov.
Attachment J
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley,CA 91978
619-670-2222
www.otaywater.gov
Notice of Commercial
Sewer Rate Increase
NOTICE OF INCREASED SEWER RATES AND CHARGES EFFECTIVE ON
SEWER SERVICE BEGINNING IN JANUARY 2012
Dear Customer,
An overall rate increase of 7.5%was approved by the Otay Water District's (the
"District")Board of Directors as part of the annual budget adoption process completed in
May,2011.The new sewer rates and charges will apply to service billed beginning
February 1,2012 and,depending on your billing cycle,may apply to service as early as
the beginning of January,2012.This letter provides a 3D-day prior notice of rate
increases.
The District is a revenue neutral public agency.Your sewer bill reflects only those
charges sufficient to support your sewer service.To continue providing sewer services,
the District must adjust its rates for service,implement certain rate increases and pass-
through higher costs to its customers based on rate changes from the District's sewage
treatment and disposal providers.For instance,while the County of San Diego
decreased its rates for service,this positive action was offset by a 9.4%increase from
the City of San Diego for wastewater disposal.
On August 24,2009,the District adopted a five-year schedule of rates in compliance
with applicable provisions of law.The rate increases herein noticed reflect a pass-
through increase of 7.5%.One hundred percent of this increase is the result of higher
service rates for wastewater disposal from the City of San Diego.The sewer rate
increase is within the limits contemplated in the five-year schedule of rates.
For its part,the District has worked diligently to reduce internal costs to minimize the
impact of higher costs from public sewage treatment and disposal agencies.For more
information,please visit www.otaywater.gov or contact us via email at
info@otaywater.gov.
Rate Increase Notice
Non-Residential Sewer Rates
To meet State of California requirements,customers must pay their fair
share of sewer costs.The Otay Water District is required to determine sewer
rates in accordance with the State's Revenue Program Guidelines.The formula
takes into consideration the cost associated with the Daily Flow,Chemical
Oxygen Demand and the removal of Suspended Solids.The Chemical Oxygen
Demand and Suspended Solids determine whether the Strength Factor is high,
medium,or low,consistent with the State Water Resources Control Board's
guidelines.
Monthly bills are calculated based on Assigned Service Units (ASU).One
ASU is equal to the demand placed on the system by a residential unit.ASUs
are calculated by multiplying the Daily Flow by the Strength Factor.
Daily Flow x Strength Factor =Assigned Service Unit
Strength Factors
1.0 Churches
1.0 Low Strength Commercial
1.238 Medium Strength Commercial
2.203 High Strength Commercial
Current
Rate per ASU $39.39 $41.75
The sewer bill is then calculated by multiplying the ASUs by the rate per
ASU.This charge is increasing by $2.36 per ASU from $39.39 to $41.75.
A $54 per ASU assessment will no longer be collected on the property tax
bill for sewer debt.The state sewer loan was paid in full in 2011.
This information reflects only changes to rates.For a comprehensive listing ofrates,
please see the Otay Water District's Code ofOrdinance at www.otaywater.gov.
Notice of Master Metered
Water Rate Increase
Attachment K
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley,CA 91978
619-670-2222
www.otaywater.gov
NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE ON
WATER USAGE BEGINNING IN JANUARY 2012
Dear Customer,
An overall rate increase of 7.7%was approved by the Otay Water District's (the "District")Board
of Directors as part of the annual budget adoption process completed in May,2011.The new water
rates and charges will apply to water billed beginning February 1,2012 and,depending on your
billing cycle,may apply to water usage as early as the beginning of January,2012.This letter
serves as a 30-day notice of rate increases.
The District is a revenue neutral public agency.To continue providing reliable high-quality water
services,the District must implement rate increases and must pass-through to its customers higher
costs imposed by water wholesalers,the Metropolitan Water District of Southern California (MWD),
San Diego County Water Authority (CWA),and the City of San Diego.
On August 24,2009,the District adopted a five-year schedule of rates in compliance with
applicable provisions of law.The rate increase herein noticed is a one hundred percent pass-
through from the District's water wholesalers.This increase is within the limits contemplated in the
five-year schedule of rates.
Water wholesalers are raising their water rates to obtain new and more reliable supplies of
water.These include more reliable emergency resources,agricultural to urban water transfers,canal
lining projects,as well as potential new sources of water supplies including ocean water
desalination.In addition,rate increases cover the cost of acquiring imported water from the
Colorado River and Northern California.
For its part,the District has worked diligently to reduce internal costs,including reducing the
number of full-time employees and has instituted efficiency programs such as automated meter
reading and online bill pay services,which minimize the impact of higher water costs from
wholesalers.
Customers who are interested in learning ways in which they can reduce their water usage to
minimize the effects of this increase can visit the District's Conservation page at
www.otaywater.gov.Additionally,the Water Conservation Garden located in Rancho San Diego is
free to the public and offers various conservation exhibits and classes.For more information about
the Garden,visit www.thegarden.org.
For more information,please visit www.otaywater.gov or contact us via email at
info@otaywater.gov.
Consumption Blocks by Unit and System Fees by Meter Size
Master Metered
Consumption Blocks (units)1 Current
0 - 4 $2.29
5 -9 $2.97
10 or more $4.57
Current
Meter Size System MWD/CWA2 TotalFee2
3/4"$14.58 $11.82 $26.40
1"$18.52 $19.69 $38.21
1 1/2"$28.37 $39.44 $67.81
2"$40.18 $63.07 $103.25
3"$71.68 $126.14 $197.82
4"$107.13 $197.11 $304.24
6"$205.59 $394.17 $599.76
8"$323.73 $630.71 $954.44
10"$461.57 $903.58 $1,368.15
Other Charges
Energy Charges3
Improvement District4 No.3
Improvement District4 No.10
La Presa4
Current
$.044
$0.19
$0.27
$0.08
Footnotes
1.Consumption is the water usage divided by
the number of dwellings served.This charge is
a per unit charge based on water consump-
tion.A unit of consumption is equal to 748
gallons of water.
2.These fees are based on the meter size.The
MWD/CWA fee is increasing to reflect the full
pass-through ofthis cost by the District's
water suppliers.
3.The Energy Charge represents the cost of
energy required to pump each unit of water
100 feet in elevation.This is charged propor-
tionally for every foot of elevation over 450
feet.This increase is necessary due to
increased power cost to the District.
4.This charge is a per unit charge and your bill
will vary based on water consumption.
This information reflects only changes to rates.Fora comprehensive listing ofrates,please see
the Otay Water District's Code of Ordinance at www.otaywater.gov.