HomeMy WebLinkAbout08-17-21 F&A Committee Packet 1
OTAY WATER DISTRICT
FINANCE AND ADMINISTRATION
COMMITTEE MEETING
and
SPECIAL MEETING OF THE BOARD OF DIRECTORS
BY TELECONFERENCE
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
TUESDAY
August 17, 2021
12:00 P.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE COMMITTEE ON ANY SUBJECT MATTER WITHIN THE
COMMITTEE'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
This meeting is being held via teleconference. Members of the public may submit their
comments on agendized and non-agendized items by either of the following two meth-
ods:
a) No later than a half hour before the start of the meeting, complete and submit a
Request to Speak Form. Your request to speak will be acknowledged during
the “Public Participation” portion of the meeting when the committee will hear
your public comment. When called to speak, please state your Name and the
City in which you reside. You will be provided three minutes to speak.
OR
b) No later than a half hour before the start of the meeting, email your comment to
BoardSecretary@otaywater.gov and it will be read aloud during the “Public Par-
ticipation” portion of the meeting. Please provide your Name and the City in
which you reside, with your comment. Your comment must not take more than
three minutes to read.
The District’s meeting is live streamed. Information on how to watch and listen to the
District’s meeting can be found at this link: https://otaywater.gov/board-of-
directors/agenda-and-minutes/committee-meetings/
2
DISCUSSION ITEMS
3. APPROVE THE REINSTATEMENT TO DISCONNECT WATER SERVICE FOR NON-
PAYMENT WHEN EXECUTIVE ORDER N-42-20 EXPIRES, OR WHEN ANY NEW
POTENTIAL EXECUTIVE ORDER EXTENDING THE CURRENT BAN ON
DISCONNECTION OF WATER SERVICE EXPIRES (CAREY) [5 minutes]
4. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Mark Robak, Chair
Jose Lopez
All items appearing on this agenda, whether or not expressly listed for action, may be delib-
erated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the Dis-
trict’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 by contacting the District Secretary at (619)
670-2253.
If you have any disability which would require accommodation in order to enable you to par-
ticipate in this meeting, please call the District Secretary at 670-2253 at least 24 hours prior
to the meeting.
Certification of Posting
I certify that on August 13, 2021, 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 meeting of the Board of Directors (Government Code Section
§54954.2).
Executed at Spring Valley, California on August 13, 2021.
/s/ Tita Ramos-Krogman, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: September 1, 2021
SUBMITTED BY: Andrea Carey
Customer Service Manager
PROJECT: DIV. NO. All
APPROVED BY: Joseph R. Beachem, Chief Financial Officer
Jose Martinez, General Manager
SUBJECT: Approve the Reinstatement to Disconnect Water Service for Non-
payment when Executive Order N-42-20 Expires, or when any new
Potential Executive Order Extending the Current Ban on
Disconnection of Water Service Expires.
GENERAL MANAGER’S RECOMMENDATION:
That the Board approve the reinstatement to disconnect water service
for non-payment when Executive Order N-42-20 expires, or when any new
potential executive order extending the current ban on disconnection
of water service expires.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To authorize the District to once again disconnect water service for
non-payment when Executive Order N-42-20 expires, or when any new
potential executive order extending the current ban on disconnection
of water service expires.
ANALYSIS:
On March 4, 2020, Governor Gavin Newsom declared a state of emergency
in California due to the Novel Coronavirus (COVID-19) health
emergency. On March 16, 2020, the District voluntarily stopped its
practice of disconnecting customers for non-payment. On April 2,
2020, Governor Newsom signed Executive Order N-42-20 suspending the
ability of California water utilities to disconnect residential or
small business water services for non-payment. On June 11, 2021,
AGENDA ITEM 3
Governor Newsom issued Executive Order N-08-21 which provided end
dates for many of the executive orders created during the COVID-19
emergency. Per Executive Order N-08-21, the disconnection moratorium
is currently set to expire on September 30, 2021. In anticipation of
this date, staff is requesting that the Board reinstate disconnection
for non-payment when Executive Order N-42-20 expires.
Reinstating Disconnection
Prior to March 2020, an average of 200 meters were disconnected
(locked) each month for non-payment. Customers whose service is
locked for non-payment must be over 60 days delinquent. As part of
the District’s process, delinquent customers are provided multiple
past due notifications via mail, email, and text prior to their water
meter being locked.
As of July 26, 2021, a total of 1,084 customers would meet the
criteria to be locked due to non-payment. Based on the large number
of lockable accounts and recognizing the financial impact COVID-19
has had on some individuals, staff would recommend modifying current
locking procedures for the first three to four months to keep the
process manageable and give customers time to contact the District
for extended payment arrangements.
Since May 2020, the District has made repeated attempts to contact
our delinquent customers via email, phone, and mail. We have urged
these customers to call the District to establish payment
arrangements. While the reinstatement of penalties has increased the
number of customers with payment arrangements from 16 to 100, many of
our delinquent customers continue to be nonresponsive throughout the
pandemic. Disconnection of water service would require these
customers to begin communicating with the District in order to
restore service.
Customers who enter into long-term payment arrangements and continue
to keep their payment commitments will not be locked or assessed late
penalties. In addition, customers who show they have applied for an
assistance program will be given an extension.
If Executive Order N-42-20 expires on September 30th, as expected,
beginning in October, staff would contact the customers that are most
delinquent (greater than six months) using the District’s standard
delinquency process. These customers would be given 10 days to
contact the District to enter into a payment arrangement agreement
for their delinquent balance or provide a hardship explanation. The
actual locking of meters would begin no sooner than October 18, 2021.
Should the disconnection moratorium be extended past September 30th,
the Board’s approval of this item to reinstate the disconnection
process would go into effect on the date that Executive Order N-42-20
expires, or when any new executive order extending the current ban on
locking were to expire.
It is important to note that the burden of unpaid water bills is
absorbed by the remaining customer base and locking customers for
non-payment is the District’s most effective means of limiting that
burden. The District has been understanding of customers personal
situations and will continue to be understanding. There are
currently funding assistance programs available for tenants in need
and there is discussion that there may be assistance for owners in
the current State budget. The District continues to publicize any
assistance programs available and staff routinely refers eligible
customers to these programs.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The District’s lockable delinquent balance is approximately $500,000.
Reinstating disconnection for non-payment will greatly reduce the
risk of loss for these unpaid balances.
STRATEGIC GOAL:
Commitment to customer-centered service while ensuring the District’s
continued financial health.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action
ATTACHMENT A
SUBJECT/PROJECT:
Approve the Reinstatement to Disconnect Water Service for
Non-payment when Executive Order N-42-20 Expires, or when
any new Potential Executive Order Extending the Current Ban
on Disconnection of Water Service Expires.
COMMITTEE ACTION: