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HomeMy WebLinkAbout04-15-19 F&A Committee Packet 1 OTAY WATER DISTRICT FINANCE AND ADMINISTRATION COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM MONDAY April 15, 2019 11:45 A.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 BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. ADOPT RESOLUTION NO. 4358 TO UPDATE BOARD POLICY NO. 24, “RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY”, AND BOARD POLICY NO. 47, “POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE”; AND ADOPT ORDINANCE NO. 572 TO UPDATE CHAPTER 5, SECTION 5, OF THE DISTRICT’S CODE OF ORDINANCES, “PERSONNEL PRACTICES, EMPLOYER-EMPLOYEE RELATIONS”, DUE TO RECENT LEGISLATIVE CHANGES (WILLIAMSON) [5 minutes] 4. ADOPT RESOLUTION NO. 4360 AMENDING POLICY NO. 27, INVESTMENT POLICY, OF THE DISTRICT’S CODE OF ORDINANCES TO RE-DELEGATE AUTHORITY FOR ALL INVESTMENT RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER IN ACCORDANCE WITH GOVERNMENT CODE SECTION 53607 (KOEPPEN) [5 minutes] 2 5. ADOPT ORDINANCE NO. 574 AND RESOLUTION NO. 4362 AMENDING APPENDIX A WITH THE PROPOSED CHANGES TO VARIOUS FEES, CHARGES, AND DEPOSITS; AMENDING SECTION 33, GENERAL REGULATIONS FOR USE OF WATER METERS; AMENDING SECTION 34, ISSUANCE AND PAYMENT OF WATER BILLS; AND AMENDING POLICY 5B, RECORDS POLICY AND PROCEDURES ACCESSIBILITY, OF THE DISTRICT’S CODE OF ORDINANCES (CAREY) [5 minutes] 6. ADJOURNMENT BOARD MEMBERS ATTENDING: Mitch Thompson, Chair Mark Robak 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 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 par- ticipate 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 April 12, 2019 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 April 12, 2019. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 PROJECT: DIV. NO. ALL SUBMITTED BY: Kelli Williamson Human Resources Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services Mark Watton, General Manager SUBJECT: ADOPT RESOLUTION #4358 TO UPDATE BOARD POLICY #24, “RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY”, AND BOARD POLICY #47, “POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE”; AND ADOPT ORDINANCE #572 TO UPDATE CHAPTER 5, SECTION 5, OF THE DISTRICT’S CODE OF ORDINANCES, “PERSONNEL PRACTICES, EMPLOYER-EMPLOYEE RELATIONS” GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution #4358 to update Board Policy #24, “Recruitment, Selection, and Employment Policy”, and Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”; and adopt Ordinance #572 to update Chapter 5, Section 5, of the District’s Code of Ordinances, “Personnel Practices, Employer- Employee Relations”, due to recent legislative changes. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To request that the Board adopt Resolution #4358 to update Board Policy #24, “Recruitment, Selection, and Employment Policy”, and Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”; and adopt Ordinance #572 to update Chapter 5, Section 5, of the District’s Code of Ordinances, “Personnel Practices, Employer-Employee Relations”, due to recent legislative changes that include when an applicant’s criminal conviction history can be requested; requirement that all nonsupervisory employees attend harassment prevention training; and changes to Agency Shop that included the mandatory collection of agency fees from non-members as no longer enforceable. ANALYSIS: Consistent with the District’s Strategic Plan, the District regularly reviews policies and procedures to ensure they are streamlined and are clear and consistent with applicable laws. Based on recent changes to California legislation, District staff is recommending revisions to the attached Board Policy #24, “Recruitment, Selection, and Employment Policy”, Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”, and Chapter 5, Section 5, of the District’s Code of Ordinances, “Personnel Practices, Employer-Employee Relations”. Changes are detailed below and revisions are shown in the attached strike-through copies of the policies (Exhibits 1, 2, and 3). Recruitment, Selection, and Employment Policy (Board Policy #24) The “Recruitment, Selection, and Employment Policy” is being updated due to legislative changes that include when an applicant’s criminal conviction history can be requested. It is now required that a conditional offer of employment be made to an applicant, before pre- employment checks can be initiated, which include a physical examination, drug screen and an evaluation of the applicant’s criminal conviction history. In addition, felony convictions can no longer be an automatic disqualification from employment. The relevancy, recency and job being sought will be part of the individualized evaluation of the applicant’s criminal conviction history (Attachment D). Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure (Board Policy #47) The “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure” is being updated due to legislative changes expanding training to now include one-hour harassment prevention training for nonsupervisory employees, as well as pertinent updates as recommended by General Counsel (Attachment E). Personnel Practices, Employer-Employee Relations (Chapter 5, Section 5, of the District’s Code of Ordinances) The “Personnel Practices, Employer-Employee Relations” section is being updated due to legislative changes to collective bargaining in the public sector that no longer allows the mandatory collection of agency fees from non-members as well as pertinent updates as recommended by General Counsel (Attachment F). The Association has reviewed and agreed to the policies where appropriate and General Counsel has reviewed the proposed changes. Based on the above, it is recommended that the Board of Directors adopt Resolution #4358 and Ordinance #572 in support of the proposed revisions. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Optimize the District’s operating efficiency. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Resolution #4358 Exhibit 1 – Board Policy #24, “Recruitment, Selection, and Employment Policy” Exhibit 2 - Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure” Attachment C – Ordinance #572 Exhibit 3 – Chapter 5, Section 5 of the Code of Ordinances, “Personnel Practices, Employer-Employee Relations” Attachment D – Proposed Copy, Board Policy #24, “Recruitment, Selection, and Employment Policy” Attachment E – Proposed Copy, Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure” Attachment F – Proposed Copy, Chapter 5, Section 5 of the Code of Ordinances, “Personnel Practices, Employer-Employee Relations” ATTACHMENT A SUBJECT/PROJECT: ADOPT RESOLUTION #4358 TO UPDATE BOARD POLICY #24, “RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY”, AND BOARD POLICY #47, “POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE”; AND ADOPT ORDINANCE #572 TO UPDATE CHAPTER 5, SECTION 5, OF THE DISTRICT’S CODE OF ORDINANCES, “PERSONNEL PRACTICES, EMPLOYER-EMPLOYEE RELATIONS” COMMITTEE ACTION: The Finance & Administration Committee reviewed this item at a meeting held on April 15, 2019. The Committee supports presentation to the full Board for their consideration. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. 1 RESOLUTION NO. 4358 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT TO REVISE BOARD POLICY #24, RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY; AND BOARD POLICY #47, POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE WHEREAS, the Board of Directors of Otay Water District have established policies, procedures, ordinances, and resolutions for the efficient operation of the District; and WHEREAS, it is the policy of the District to establish procedures to review policies, procedures, ordinances, and resolutions periodically to ensure they are current and relevant; and WHEREAS, District staff has identified Board Policy #24, “Recruitment, Selection, and Employment Policy”, and Board Policy #47, “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”, as requiring updates as per the attached strike-through copies. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Otay Water District amends the Board Policies indicated above in the form presented to the Board at this meeting. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 1st of May, 2019. __________________________ President ATTEST: ___________________________ Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 1 of 5 PURPOSE It is the purpose of this policy to provide guidelines for the recruitment and selection of regular, student intern, temporary and/or contract employees. POLICY It is the policy of the Otay Water District (“District”) to recruit and select the best qualified Applicants on the basis of job-related standards of experience, education, training, ability, and merit; to encourage members of the communities which we serve, to apply for employment opportunities with the District; to encourage District employees to apply for positions for which they believe they qualify, to assure that qualified internal Applicants are given fair and adequate consideration; and to advance regular District employees when it is determined that they are the best qualified. EQUAL EMPLOYMENT OPPORTUNITY The District is an equal opportunity employer. All employees and Applicants shall receive equal consideration and treatment. The District shall recruit, hire, and promote the best qualified individuals without regard to race, color, religion, religious creed including religious dress and grooming practices, sex (including wages, gender, pregnancy, childbirth, or related medical condition), national origin, ancestry, age, physical or mental disability, medical condition, genetic information, marital status, sexual orientation, military or veteran status, or membership in any other “protected class” recognized by California, or Federal or local laws. AUTHORITY OF THE GENERAL MANAGER AND EMPLOYMENT AT WILL Section 2.01 of the District’s Code of Ordinances provides that, pursuant to Sections 71362 and 71363 of the California Water Code, the General Manager has the authority to manage and operate the affairs of the District. This authority includes the employment, discharging and fixing of compensation for all employees and assistants, except those referred to in California Water Code Section 71340, at pleasure, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants. All employment at the District is thus “at-will,” pursuant to Section 71362, and both employees and the District have a right to terminate employment at any time, with or without advance notice, and with or without cause. The General Manager’s authority also includes making appointments of temporary or contract employees needed to perform District work resulting from such matters as interim vacancies, peak workload, and special projects so long as he/she operates within Board-approved budgeted appropriation levels. Contract or Temporary Appointments are not subject to amount limits for agreements, contracts, or other documents as defined in Section 2.01(E) of the District’s Code of Ordinance, or to formal competition, selection and advertisement requirements identified herein. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 2 of 5 DEFINITIONS A. Applicant: A person applying for a position, including a District employee who seeks Appointment to a different position. B. Appointment: The employment of a person in a position, whether on a regular or temporary basis. C. Closed/Promotional Recruitment: A recruitment open only to qualified regular District employees, or open only to qualified regular District employees in a particular classification, unit or division. D. Conviction: Any sentence, suspended sentence, probation or other resolution followed by a verdict, plea (including a no contest plea) or other finding of guilt. The term “Conviction,” as used herein, shall not include any conviction that has been otherwise exempted by law. E. Eligible List: A list of qualified Applicants who remain eligible for consideration for a position. F. Employment Announcement: A formal notice by the District of an employment opportunity. G. Open/Competitive Recruitment: A recruitment open to all interested qualified Applicants. H. Promulgation: The date Human Resources certifies the list of eligible Applicants for consideration. I. Qualified Applicant: An Applicant who has passed all elements of the selection process, is would be at least 18 years old at the time of Appointment and remains eligible for Appointment. J. Recruitment and Selection Plan: A planned process to establish an adequate pool of qualified Applicants which shall consist of an open/competitive or a Closed/Promotional Recruitment. K. Regular Appointment: An Appointment to a regular authorized position with benefits. L. Regular Vacancy: A vacancy in an authorized position. M. Student Intern: An employee who is currently enrolled at or near full-time status as a student in an accredited community college, college, or university in an undergraduate or graduate program in good academic standing. N. Temporary Appointment: An Appointment made for a specific duration, generally not to exceed one year. Temporary Appointments may be exempt from the formal Recruitment and Selection Plan. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 3 of 5 RECRUITMENT AND SELECTION PLAN All Regular Vacancies shall be filled through an Open/Competitive Recruitment and Selection Plan unless otherwise approved by the General Manager. This is consistent with best practice and expected to maximize community participation, competition, diversity, and the number of highly qualified Applicants available for consideration for employment. However, the General Manager may authorize a Closed/Promotional Recruitment and Selection Plan given the requirements of the position and the quality of the internal Applicant pool. All Applicants for regular positions shall submit to the same Recruitment and Selection Plan for that position. The General Manager may approve revising the Recruitment and Selection Plan in order to better meet the needs of the District. A. Notice of Employment Opportunities Human Resources shall post- employment opportunities for Regular Vacancies consistent with the approved Recruitment and Selection Plan. The Employment Announcement shall include the following: 1. Classification Title 2. Salary Rate and/or Range 3. Essential Functions 4. Required Qualifications 5. Skills Exam 6. Application Filing Instructions 7. Equal Employment Opportunity Employer Statement B. Disqualification of Applicants Applicants may be disqualified at any time during the process for any of the following reasons: 1. The Applicant is found to lack any of the minimum job requirements established for the position. 2. The Applicant has made a false statement of material fact in the application or has committed fraud or deception in the selection process or in securing eligibility for Appointment. 3. The Applicant has a history of less than satisfactory employment. 4. The Applicant uses or attempts to use any personal or political influence to further eligibility. 5. The Applicant has without authorization directly or indirectly obtained information regarding examinations. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 4 of 5 6. The Applicant fails to submit his or her application in compliance with articulated guidelines or within the prescribed time limits. 7. The Applicant has taken part in the compilation, administration, or correction of the examinations for the position for which he/she is an Applicant. 8. Any other reason deemed by the General Manager to protect the best interests of the District. C. Examination Content The Recruitment and Selection Plan shall be job-related in order to determine the ability of Applicants to perform the duties of the job classification. The plan may provide for one or more of the following types of examinations: 1. Review of Employment Application and/or Required Supplementary Material(s); 2. Written Examination; 3. Physical Agility and/or Performance Skill Examination; or 4. Oral Interview. D. Eligible Lists Eligible Lists may be maintained to fill current and future vacancies. The Eligible List will be valid for up to twelve (12) months from Date of Promulgation. Human Resources may pull Applicants from any Eligible List in lieu of posting a position or to augment the Applicant pool for other similar classifications with related skills and abilities. E. Conditions of Appointment Once an Applicant has beenis offered a conditional offer of employment, determined to be the best qualified, but prior to Appointment, the Applicant shall meet and agree to the terms and conditions of employment specified for thea particular position. Failure of such pre-employment examinations may cause the Applicant to be disqualified for employment. Conditions of employment may include, but are not limited to the following: 1. Physical Fitness/Medical Examination; 2. Drug/Alcohol Screening; 3. Verification of lawful work status under Immigration rules; and 4. Verification of employment, education, certificates, licenses, driving, and criminal conviction history including fingerprinting. F. Evaluation of Criminal Conviction Information Upon receipt of the Criminal Conviction information, the District shall determine if the information shall disqualify the Applicant. The District shall make an individualized assessment of whether an OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 11/06/13 Page 5 of 5 Applicant’s criminal conviction history has a direct and adverse relationship with the specific duties of the job that justify denying the Applicant the position. The District may, but is not required to, commit the results of this individualized assessment to writing. In making the assessment, the District shall consider all of the following: (i) The nature and gravity of the offense or conduct. (ii) The time that has passed since the offense or conduct and completion of the sentence. (iii) The nature of the job sought. There shall be an automatic disqualification for employment for any of the following: a. Any felony Conviction; b. Any misdemeanor Conviction within one year preceding the date of application for any offense(s) considered to be crimes of moral turpitude by any court of the state, and/or crimes involving, firearms, explosives, violence, dishonesty and/or requiring registration under Penal Code §290; or c. Intentionally failing to disclose a prior Conviction of any type, unless said Conviction has been otherwise exempted by law. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 1 of 8 PURPOSE The Otay Water District (“District”) disapproves of and will not tolerate unlawful discrimination or harassment of its employees, members of the Board of Directors, unpaid interns, volunteers, job applicants or persons providing services pursuant to a contract with the District, or retaliation against those who report such behavior. This policy sets forth a procedure for investigating and resolving internal complaints of discrimination, harassment, or retaliation. DEFINITIONS Discrimination – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class that adversely affects the employee, unpaid intern, volunteer, job applicant, person providing services pursuant to a contract with the District, or his/her work conditions, terms of employment, or work environment. Harassment – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class, made for the purpose or having the effect of adversely affecting that employee’s, unpaid intern’s, volunteer’s, job applicant’s or persons providing services pursuant to a contract with the District’s terms of employment, work conditions, or work environment. Harassment may include, but is not limited to: • Verbal conduct such as epithets, derogatory jokes or comments, slurs, or unwelcome invitations or comments; • Visual displays such as derogatory posters, photography, cartoons, drawings or gestures; • Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 2 of 8 Such conduct constitutes harassment when (1) submission to the conduct is made as either an explicit or implicit condition of employment; (2) submission or rejection of the conduct is used as the basis for an employment decision; or (3) the harassment interferes with work performance or creates an intimidating, hostile, or offensive work environment. Sexual Harassment – Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, or verbal, visual, or physical conduct pertaining to a person’s sex (including pregnancy, childbirth, breastfeeding or related medical conditions) and/or of a sexual nature, when submission to such conduct is committed by a supervisor, co-worker, or a non-employee, in the work setting, under any of the following conditions: 1. Submission to the conduct is explicitly or implicitly made a term or condition of employment, progress, or participation in a District employment activity; or 2. Submission to, or rejection of, the conduct by the individual is used as the basis of employment decision(s) affecting the individual; or 3. The conduct has the purpose or effect of having a negative impact upon the individual's work performance or of creating an intimidating, hostile, or offensive work environment. Examples of actions that might constitute sexual harassment, include but are not limited to: 1. Unwelcome verbal conduct such as sexual flirtations or propositions; graphic comments; overly personal conversations; pressure for sexual activity; sexual jokes or stories; unwelcome sexual slurs; epithets; threats; innuendoes; derogatory comments; sexual descriptions; degrading comments; or the spreading of sexual rumors. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 3 of 8 2. Unwelcome visual conduct such as sexually explicit drawings, pictures, photographs, or gestures,; sexual emails, text messages and/or communications via social media; display of sexually explicit or suggestive objects. 3. Unwelcome physical conduct such as massaging, rubbing, grabbing, fondling, stroking, brushing of the body; touching in an unwanted and/or sexual manner; cornering, blocking, leaning on or over, or impeding normal walking, movements, or standing. 4. Threats and demands to submit to sexual requests as a condition of continued employment, condition for advancement in pay, position or authority or to avoid an adverse consequence, and offers of employment benefits in return for sexual favors. Two general categories of sexual harassment exist: (1) Quid pro quo, meaning "this for that" such as submission to sexual conduct as a condition of employment, benefits or terms and conditions of employment, and (2) Hostile work environment, meaning the sexual conduct is so severe, persistent, or pervasive that it creates an intimidating, demeaning, hostile, or offensive environment that unreasonably interferes with an employee’s job performance. Protected Class – Any class of persons who share a common sex, race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status or any other “protected class” recognized by federal, or state or local laws. For purposes of this definition, “sex” includes gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or a pregnancy-related or childbirth-related medical condition. Retaliation – Any decision or action that is based on the fact that a District employee, unpaid intern, volunteer, job applicant, or OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 4 of 8 person providing services pursuant to a contract with the District has previously complained of Discrimination, Harassment, or Retaliation prohibited by this Policy (regardless of whether a formal complaint has been made) or has provided evidence in the investigation of another District employee’s, unpaid intern’s, volunteer’s, job applicant’s or person providing services pursuant to a contract with the District’s complaint under this Policy, made for the purpose of adversely affecting the employee’s, unpaid intern’s, volunteer’s, job applicant or person providing services pursuant to a contract with the District’s conditions of employment, terms of employment, or work environment. POLICY The District is committed to providing a work environment free of unlawful Discrimination, Harassment, or Retaliation against those who report Discrimination or Harassment. Discrimination or Harassment based on sex (including gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or related medical condition), race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status, or any other basis protected by federal or , state or local law, is prohibited. Discrimination or Harassment based on the perception that a person has any of the aforementioned characteristics, or is associated with a person who has or is perceived as having any of the aforementioned characteristics, is prohibited. Retaliation against any person who complains of unlawful Discrimination or Harassment or who provides evidence relating to such a complaint, is prohibited. This Policy applies to all terms and conditions of employment including, but not limited to: hiring, placement, advancement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, compensation and training. It applies to every District employee including management, regular, temporary or contract employees, members of the Board of Directors, unpaid interns, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 5 of 8 volunteers, job applicants and to persons providing services pursuant to a contract with the District. Similarly, the District will not tolerate Discrimination or Harassment by its employees, unpaid interns, volunteers, or non-employees with whom the District has a business, service or professional relationship. The District will also take reasonable steps to protect employees, unpaid interns, and volunteers from Harassment by non-employees in the workplace. Training will be provided to all supervisory and nonsupervisory employees, management, and the Board of Directors as required by law. COMPLAINT PROCEDURE An employee, unpaid intern, volunteer, or job applicant, or person providing services pursuant to a contract with the District, who believes he or she has been the victim of Discrimination, Harassment, or Retaliation by a District employee, a member of the Board of Directors, or a person providing services pursuant to a contract with the District may make a complaint verbally, or in writing by completing the District’s Discrimination, Harassment, and Retaliation Complaint Form. An employee, unpaid intern, or volunteer may make a complaint to any of the following: • Human Resources; • Any Ssupervisor, Mmanager, Department Assistant Chief, Department Chief, Assistant General Manager, or General Manager; • Complaints against the General Manager should be directed to the President of the Board of Directors. Job applicants, or persons providing services pursuant to a contract with the District may make a complaint to any of the following: • Human Resources or; • General Manager. Any person described above shall forward each written Discrimination, Harassment, and Retaliation complaint to the General Manager or designee, immediately upon receiving the complaint or OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 6 of 8 having knowledge of the complaint. If a complaint is made verbally, the person receiving the complaint shall notify Human Resources immediately. Every reported complaint of Discrimination, Harassment or Retaliation will be investigated in a fair, timely and thorough manner. If any Mmanager, Ssupervisor, Department Assistant Chief, or Department Chief, or Assistant General Manager becomes aware of or suspects Discrimination, Harassment, or Retaliation against a District employee, unpaid intern, volunteer, job applicant, member of the Board, or person providing services pursuant to a contract with the District, he/she must immediately notify the Human Resources Manager of the relevant facts and circumstances. The General Manager or designee may conduct anthe investigation of alleged Discrimination, Harassment, or Retaliation, or may delegate responsibility for the investigation to another District management employee or an outside investigator. If the complaint is against the General Manager, the President of the Board of Directors shall be responsible for conducting anthe investigation, assigning the investigation to another management employee, or outside investigator, and overseeing the investigation. If the complaint is against the Board of Directors or one of its members, the General Manager shall be responsible for contracting with an outside investigator to conduct the investigation. The Board will take appropriate action based on the findings. During its investigation, the District shall take appropriate steps to protect the privacy of all parties involved and confidentiality will be maintained to the extent possible. However, this shall not be construed to justify refusing to inform a person who has been accused of violating this Policy of the identity of the complainant and witnesses against him/her. Reports of Discrimination, Harassment, or Retaliation may not be made anonymously, but information regarding any report and subsequent investigation will be disseminated on a “need to know” basis. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 7 of 8 If a finding is made that Discrimination, Harassment, or Retaliation has occurred, the District shall take remedial action appropriate to the circumstances, which may include disciplinary action up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer who has violated this Policy, or sanctions for a person providing services pursuant to a contract with the District, who has violated this Policy. Every District employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, and person providing services pursuant to a contract with the District, has a duty to participate in good faith in any investigation conducted under this Policy. Failure to participate in good faith is a ground for disciplinary action appropriate to the circumstances. All employees, unpaid interns, volunteers, job applicants, members of the Board of Directors and persons providing services pursuant to a contract with the District are encouraged to report, in good faith, Discrimination, Harassment, or Retaliation. The District will not tolerate Retaliation against any employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or person providing services pursuant to a contract with the District who makes a good faith complaint of Discrimination, Harassment or Retaliation, or cooperates in an investigation. However, reports made maliciously or in bad faith may subject an employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or persons providing services pursuant to a contract with the District, to disciplinary action appropriate to the circumstances up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer, or sanctions for a member of the Board of Directors or a person providing services pursuant to a contract with the District. The action of filing a complaint with the District does not preclude a complainant from filing a complaint with the appropriate State or Federal agency. An employee, unpaid intern, volunteer, job applicant or a person providing services pursuant to a contract with the District may contact the Equal Employment Opportunity Commission at OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 01/04/17 Page 8 of 8 www.eeoc.gov or (213) 894-1000, or the Department of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a complaint, or for information relating to discrimination complaint procedures and requirements. POLICY HISTORY Human Resources Policy and Procedure, Effective August 4, 1993. Board Policy adopted October 11, 2005. Page 1 of 1 ORDINANCE NO. 572 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT UPDATING CHAPTER 5, SECTION 5, OF THE DISTRICT’S CODE OF ORDINANCES, PERSONNEL PRACTICES, EMPLOYER-EMPLOYEE RELATIONS BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances, Chapter 5, Section 5, “Personnel Practices, Employer-Employee Relations”, be updated due to legislative changes to collective bargaining in the public sector that no longer allows the mandatory collection of agency fees from non-members. The updates are presented and attached to this ordinance in Exhibit 3. NOW, THEREFORE, BE IT RESOLVED that the update to Chapter 5, Section 5, of the District’s Code of Ordinances, “Personnel Practices, Employer-Employee Relations”, shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 1st of May, 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary 1 CHAPTER 5 PERSONNEL PRACTICES SECTION 5 EMPLOYER-EMPLOYEE RELATIONS 5.01 PURPOSE It is the purpose of this Chapter to establish orderly procedures to promote full communication between the District and its employees by providing a reasonable method for meeting and conferring and/or consulting in good faith with Recognized Employee Organizations, and resolving disputes, regarding matters that directly and significantly affect and primarily involve matters regarding wages, hours, and other terms and conditions of employment, as well as to promote the improvement of personnel management and employee relations by providing a uniform basis for recognizing the right of District employees to join or not to join any organization of their choice and be represented by such organization in their employment relationship with the District. It is also the purpose of this Chapter to fully comply with the provisions of the Meyers- Milias Brown Act (Gov. Code, § 3500.5 et seq.) and to provide orderly procedures for the administration of employer-employee relations. 5.02 DEFINITIONS A. District: The Otay Water District. B. Board of Directors or Board: The Board of Directors of the District. C. Employee: Any person employed by the District other than elected officials. D. A. Employee Organization: AEither (1) any lawful organization that includes employees of the District and that has as one of its primary purposes representing those employees in their employment relations with the District; or (2) any organization that seeks to represent employees of the District in their relations with the District. A. B. Registered Employee Organization: An employee organization that has registered with the District as provided in this Chapter. E. C. Recognized Employee Organization: An employee organization that has been certified by the District as the majority representative of a representation unit in accordance with this Chapter.formally acknowledged by the District pursuant to this Chapter as the sole employee organization representing the employees in an appropriate unit. A recognized employee organization has the exclusive right to meet and confer in good faith on behalf of the employees within such unit concerning matters within the scope of representation, and thereby assumes a corresponding obligation of fairly representing such employees. 2 FD. Representation Unit: A group of District employee classifications that have a common community of interest, established pursuant to this Chapter. GE. Meet and Confer: The free exchange of information, opinions and proposals in good faith between representatives of the District and a recognized employee organization with the goal of reaching agreement on matters within the scope of representation. HF. Consult or Consultation: Verbal or written communication for the purpose of presenting and obtaining views or advising of intended actions in a good faith effort to reach a consensus, and as distinguished from meeting and conferring in good faith regarding matters within the scope of the meet and confer process as required by applicable law. IG. Proof of Employee Support: An unambiguous written statement that an employee wishes to designate an employee organization as the recognized employee organization for his/her representation unit, or that an employee wishes to cease having an employee organization be the recognized employee organization for his/her representation unit. This statement must appear on the same page as and under which an employee’s printed name, classification, and signature appear, and must have been signed within the year preceding its submission. J. General Manager: The General Manager of the District. KH. Terms not defined herein shall have the meanings as set forth in the Meyers- Milias Brown ActMMBA. 5.03 DISTRICT AUTHORITY A. The District has the sole right and exclusive authority to direct the affairs of, manage, and maintain the efficiency of the District, to set standards of services to be offered to the public, and to control the organization and operation of the District. The District also has the sole and exclusive authority to take any actions which the District deems desirable to conduct its affairs including, but not limited to, directing its work force (including scheduling and assigning work and overtime); hiring, firing, discharging, promoting, demoting, transferring, or disciplining employees, consistent with and pursuant to the authority of Water Code section 71362; determining the methods, means and personnel by which District operations are to be conducted; layoffs for budgetary considerations or lack of work; subcontracting work; maintaining efficiency of employees; taking all necessary actions to carry out its mission in emergencies; and exercising complete control and discretion over its organization and the technology of performing its work consistent with the provisions of this Chapter and the Meyers-Milias Brown Act. The foregoing authority of the District is descriptive, not exhaustive. 3 B. Except as otherwise stated, all powers and obligations described in this Chapter are hereby delegated to the General Manager. The General Manager may delegate these powers and obligations to other District managers as he/she deems necessary. 5.04 EMPLOYEE RIGHTS Each employee has the following rights which he/she may exercise in accordance with the Meyers-Milias Brown Act: 1. The right to form, join and participate in the activities of employee organizations of the employee's own choosing for the purpose of representation on matters of the employee's relations with the District, or to refuse to join or participate in the activities of any employee organization. 2. The right to be free from interference, intimidation, restraint, coercion, discrimination or reprisal by the District, other employees, or employee organizations with respect to the employee's membership or non- membership in any employee organization, or with respect to any lawful activity associated therewith which is within the scope of representation. 3. The right to represent himself or herself individually in his or her employee relations with the District, to the extent allowed by law. Whenever a District employee desires to represent himself or herself in consulting with District management during regular hours of work, the employee shall first request and obtain permission to take time off to do so. 5.05 ESTABLISHMENT OF REPRESENTATION UNITS A. The General Manager shall determine the appropriate composition of a representation unit by considering the following factors: 1. The effect of the proposed unit on the operations of the District. 2. The proposed unit’s compatibility with the primary responsibility of the District and its employees to serve the public effectively and economically. 3. The ability to provide effective representation to employees based on a recognized community of interest, within the broadest feasible grouping of classifications sharing an identifiable community of interest. B. In considering whether classifications share an identifiable community of interest, the following factors shall be considered: 4 1. Similarity of the work performed, required qualifications, level of responsibility, and general working conditions. 2. History of representation in the District, except that no representation unit shall be deemed appropriate solely on the basis of the extent to which employees in the proposed unit have organized. 3. Consistency with District administrative organization. 4. Number of employees and classifications, and the effect on the administration of employer-employee relations created by the fragmentation of classifications and/or increase in number of representation units. 5. Effect on the classification structure and impact on the stability of the employer-employee relationship of dividing related classifications among two or more representation units. 6. Supervisory employees shall not be placed in a representation unit with non- supervisory employees. 7. Management employees shall not be placed in a representation unit with non-management employees. 8. Confidential employees shall not be placed in a representation unit with non-confidential employees. 9. Professional employees shall not be required to be included in the same unit with non-professional employees. C. After notice to and consultation with affected employee organizations, the Human Resources Manager shall allocate new classifications or positions, delete eliminated classifications or positions, and retain, reallocate or delete classifications in accordance with this Section. 5.06 CERTIFICATION OF EMPLOYEE ORGANIZATIONS A. Recognized Employee Organizations – Requirements:Registered Employee Organizations: An employee organization that wishes to become the recognized employee organization of a representation unit or proposed representation unit shall file with the General Manager a petition for certification as a recognized employee organization. The petition shall : Any group of employees that wishes to create a registered employee organization shall file with the General Manager a written application for registration of the employee organization. The application shall include: 5 1. The name and mailing address and electronic mailing address of the employee organization. 2. The names and titles of its officers and mailing address. 3. A designation of one person, including his/her address, to whom notice to the organization may be sent for any purpose. 4. The names of persons who are authorized to act as representatives of the organization in any communications with the District. 5. A statement that the employeer organization has, as one of its primary purposes, the responsibility of representing employees in their employment relations with the District. 6. A statement whether the employee organization is a chapter of, or affiliated directly or indirectly in any manner, with a local, regional, state, national, or international organization, and, if so, the name and address of each such other organization. 7. A statement that the employee organization agrees to comply with the provisions of this Chapter. 87. Certified copies of the employee organization’s constitution and bylaws. 98. A statement that the organization does not restrict membership based on race, color, creed, national origin, political affiliation, sex, disability, age, or any other classification prohibited by state or federal law. 109. A list of all District employees who are represented by the organization and their job classifications or position titles. 1110. A statement that the employee organization has in its possession proof of employee support as herein defined to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the District. Such written proof shall be submitted for confirmation to the General Manager or to a mutually agreed upon disinterested third party. 12. A request that the District formally acknowledge the petitioner as the recognized employee organization of a representation unit of District employees. When an employee organization has complied with the requirements of this Section, the General Manager shall register the organization and notify it that it is a registered employee organization. 6 B. Processing Of Recognition Petition: Recognized Employee Organizations: An employee organization or registered employee organization that wishes to become the recognized employee organization of a representation unit or proposed representation unit shall file with the General Manager a petition for certification as a recognized employee organization. The petition shall: 1. Name and provide an address for the representation unit or proposed representation unit which it purports to represent. 2. Be accompanied by proof of support by at least thirty percent (30%) of the employees within the representation unit or proposed representation unit. Upon receipt of a petition that proposes a new representation unit, the General Manager shall determine whether: 1. There has been compliance with the requirements of the recognition petition, and 2. The proposed representation unit is an appropriate unit. If the representation unit is appropriate and the proof of support is found to be valid, the General Manager shall accept the petition and give notice of the request for recognition filing thereof to all District employees and shall take no action on said request for thirty (30) days thereafter. Recognized employee organization status shall be granted if the proof of support shows that a majority (50% plus one) of the employees in the representation unit or proposed representation unit desire the representation.; Hhowever, if another labor organization has previously been lawfully recognized as a recognized employee organization of all or part of the same unit, or if more than one labor organization has been proposed as the recognized employee organization, determination of the recognized employee organization shall be made by the State Mediation and Conciliation Service, who shall review the proof of support to verify the status of the employee organization. The General Manager shall engage the State Mediation and Conciliation Service to conduct an election within 30 days of the foregoing notice, or as soon thereafter as the State Mediation and Conciliation Service can conduct it, among the eligible members of the representation unit. If the General Manager does not accept the petition, he/sheit shall notify the petitioning registered employee organization of the reasons therefore in writing. No petition shall be accepted affecting a representation unit or proposed representation unit for which, within the preceding 12 months, a certification or decertification election was conducted. C. Election Procedure: 1. When an election is required pursuant to this Section, it shall be conducted by secret ballot in accordance with the procedures and regulations of this section. Eligible voters shall be those employees in the representation unit whose names appear on the payroll immediately prior to the date which 7 ended at least fifteen (15) days before the date of the election, including those shown as on vacation or authorized leaves of absence, and who are employed by the District in the same unit on the date of the election. If the State Mediation and Conciliation Service declines to conduct the election, the Board of Directors will adopt rules for the conduct of election. There shall be no more than one valid election under this Section pursuant to any petition in a 12-month period affecting the same unit. 2. The General Manager shall declare the results of the election in accordance with the following: a. When a majority of the eligible employees voting at the election vote to certify an organization, the General Manager shall certify the organization as the recognized employee organization of the representation unit. b. When two organizations appear on the ballot and no organization receives a majority of the votes cast, the General Manager shall declare that no organization will be the recognized employee organization of the unit. c. When three or more organizations appear on the ballot and no organization receives a majority of the votes cast, the General Manager shall order a runoff election between the two organizations receiving the greatest number of votes, the rules governing an initial election being applicable to a run-off election. d. If less than a majority of eligible employees voted, the General Manager shall declare the election void and no further election shall be held based on the petition. Half of the cost incurred in conducting a certification election shall be borne by the District, and the other half shall be divided equally among and be paid by the employee organizations appearing on the ballot. D. Current Information: The information contained in the petition shall be kept current by the recognized employee organization. The General Manager may, from time to time, require verification by the recognized employee organization of any information contained in the petition (and current supplements thereto), including submission of such written proof as the recognized employee organization has that it has been designated by the listed employees to represent them. 8 5.07 EMPLOYEE ORGANIZATIONS' RIGHTS A. A registered employee organization may represent its members in disputes on wages, hours and any other terms or conditions of employment as allowed by law. A registered employee organization may not present a grievance or dispute in its own name or on behalf of itself. The District is not obliged to meet and confer or enter into a memorandum of understanding with a registered employee organization or with an individual employee. A.B. The District recognizes the right of any recognized employee organization to govern its internal affairs. A recognized employee organization may represent itself and/or its members in disputes and grievance matters. A registered recognized employee organization may not present a grievance or dispute in its own name or on behalf of itself. Should the recognized employee organization be dissatisfied with the results of such consultations, it has the further right to meet and confer with the General Manager. The scope of representation includes all matters relating to employment conditions and employee relations, including, but not limited to, wages, hours and other terms and conditions of employment. However, the scope of representation shall not include the merit, necessity, or organization of any service or activity provided by law or established by the Districtexecutive or Board order. If the General Manager and the recognized employee organization reach agreement, they shall jointly prepare a written memorandum of understanding which shall not be binding on the District until it is ratified by the Board of Directors. B.C Officers and/or representatives of recognized employee organizations may petition the General Manager, or designee, in writing for access to work facilities and work locations outside of regular working hours. The petition shall identify where they wish to have access and the purpose for which access is sought. The General Manager shall not unreasonably refuse such petition and will provide to persons granted access an appropriate escort and rules and regulations governing access to District property, consistent with Board of Directors Policy No. 13. 5.08 CONFERENCES The General Manager or designee shall, upon written request, meet and confer in good faith regarding wages, hours and other terms and conditions of employment with the representatives of any recognized employee organization and shall consider fully such presentations as are made on behalf of employees who are members of such recognized employee organization. Such meetings and conferences shall be held within a reasonable time upon written request, which shall set forth the matter(s) desired to be presented. The General Manager may utilize other staff of the District to assist him/her and to attend conferences with him/her. In the event that any Memorandum of Understanding (MOU) exists with a procedure different than as stated above, the Memorandum of Understanding shall prevail. Meet and confer sessions for future memoranda of understanding shall commence on a date so that negotiations may be completed, if possible, prior to the end of the existing MOU. 9 5.0908 IMPASSE PROCEDURE If, after a reasonable period of time of meeting and conferring, a recognized employee organization and the General Manager fail to reach agreement on matters within the scope of representation, either party may declare the existence of an impasse. Upon declarationing of impasse, a partythe District and a Recognized Employee Organization may mutually ask the California State Conciliation Service to assist the parties in reconciling differences through mediation. All mediation proceedings shall be private. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. All mediation costs shall be borne equally by the District and the recognized employee organization. If mediation does not resolve the impasse, theA Recognized Eemployee organization may request to the Public Employment Relations Board (PERB) to submit the impasse to fact-finding, pursuant to Government Code sections 3505.4 through 3505.7, no sooner than 30 days, but no more than 45 days, following the appointment or selection of a mediatordeclaration of impasse. Fact-finding panel recommendations are only advisory, not binding. All mutually incurred costs for fact-finding shall be borne equally by the District and the recognized employee organization (i.e. cost for the services of the panel chairperson). After applicable mediation and fact-finding procedures have been exhausted, the General Manager may take such action regarding the matters in dispute as he/she deems necessary to the public interestbut need not implement its last, best, and final offer, but not earlier than 10 days after the factfinders’ written findings of fact and recommended terms of settlement have been submitted to the parties pursuant to Government Code section 3505.5 and following a public hearing regarding the impasse. Any legislative action by the Board of Directors on the matters in dispute shall be final and binding. 5.1009 DECERTIFICATION PROCEDURE A. An employee may present to the General Manager a petition to decertify the recognized employee organization for his/her representation unit. No action may be taken on a petition that is submitted within 12 months of the date of initial certification of a recognized employee organization or of any election to certify or decertify such organization. B. A decertification petition must be declared by the duly authorized signatory under penalty of perjury to be true, correct, and complete and include the following: 1. The name, mailing address, electronic mailing address, and telephone number of the petitioning employee and a designated representative authorized to receive notices or requests for further information; 2. The title of the representation unit; 10 3. The name of the incumbent recognized employee organization for the representation unit sought to be decertified; 4. If another organization is proposed to become the recognized employee organization, the name of such organization and the name, mailing address, electronic mailing address, and telephone number of its agent; 5. An allegation that the incumbent recognized employee organization no longer represents a majority of the employees in the appropriate unit, and any other relevant and material facts relating thereto; 6. Proof of support from at least 30 percent of the employees in the representation unit who: a. no longer wish to be represented by the incumbent recognized employee organization; and/or b. wish to be represented by a different employee organization. C. Within five business days of receiving a decertification petition, the General Manager shall serve a copy of the petition on the recognized employee organization. The General Manager shall verify that proof of support for decertification and/or certification of a new recognized employee organization contains the signatures of at least thirty percent (30%) of the employees in the representation unit. Verification shall consist of confirming that each person identified in a proof of support is in the representation unit and that his/her signature is genuine. Upon verifying proof of support or lack thereof, the General Manager shall so notify the petitioner, the recognized employee organization, and, where applicable, the agent of the proposed new recognized employee organization in writing. If the General Manager verifies proof of support of at least 30 percent (30%) of the representation unit for more than one proposed new recognized employee organization, each such organization shall be placed on the ballot. D. Upon verifying appropriate proof of support, the General Manager shall schedule an election, to be conducted no earlier than 21 calendar days and no later than 42 calendar days after verification. At least 15 calendar days before the scheduled date of the election, General Manager shall post in one or more conspicuous places frequented by members of the representation unit a copy of the decertification petition, notice of the date, time, and place of the election, and a brief statement of the purpose of the election. The notice shall remain posted until the day after the election. E. If appropriate proof of support was verified for a proposed new recognized employee organization, the ballot shall state the following: 11 1. Shall the [recognized employee organization] continue to be the recognized employee organization for the [name of representation unit] unit? ____ Yes ([recognized employee organization] continues to be the recognized employee organization) ____ No ([recognized employee organization] ceases to be the recognized employee organization) {use when there is only one proposed new representative} 2. If the [recognized employee organization] ceases to be the recognized employee organization, shall the [proposed new recognized employee organization] become the recognized employee organization for the [name of representation unit] unit? ____ Yes ____ No {use when there is more than one proposed new representative} 2. If the [recognized employee organization] ceases to be the recognized employee organization, please choose one of the following options: ____ [proposed new recognized employee organization #1] becomes the recognized employee organization ____ [proposed new recognized employee organization #2] becomes the recognized employee organization ____ [proposed new recognized employee organization #3 (if applicable)] becomes the recognized employee organization ____ No representative Where more than one proposed new representative appears on the ballot, the order in which each proposed new representative appears shall be determined by lot. If the election is only to decertify the recognized employee organization, the ballot shall state the following: Shall the [recognized employee organization] continue to be the recognized employee organization for the [name of representation unit] unit? ____ Yes ([recognized employee organization] continues to be the recognized employee organization) ____ No ([recognized employee organization] ceases to be the recognized employee organization) F. Elections shall be conducted under the following guidelines: 1.) The recognized employee organization may have a representative present at all polling places and during the counting of ballots. The representative shall only observe activities and may not advocate for a particular vote or comment on the tabulation of votes while tabulation is in progress. 12 2.) The proposed new recognized employee organization(s), if any, may have a representative present at all polling places and during the counting of ballots. The representative shall only observe activities and may not advocate for a particular vote or comment on the tabulation of votes while tabulation is in progress. 3.) Other than the actual act of voting, no activity shall be conducted within 100 feet of a polling place that advocates for a particular vote. 4.) A recognized employee organization shall be decertified if a majority of the representation unit members voting vote to decertify. 5.) The votes to certify a proposed new recognized employee organization shall be tabulated only if a majority of those voting vote to decertify the existing recognized employee organization. If the certification votes are tabulated, the proposed new recognized employee organization shall be certified if a majority of the representation unit members voting vote to certify or, if there is more than one new employee organization proposed, the organization receiving the most votes of the representation unit members voting shall be certified. 6.) No later than 10:00 a.m. on the day following the election, the General Manager shall post the results of the tabulation of votes at the same location(s) at which notice of the election was posted. 7.) A member of the representation unit, an agent of the recognized employee organization, or an agent of the proposed new recognized employee organization may protest the tabulation results within 24 hours of posting of the results. To protest the tabulation results, a person must deliver to the General Manager a letter setting forth all bases for protest. The only acceptable bases for protest are: a.) Error or fraud in tabulating the ballots b.) Prohibited advocacy at or within 100 feet of a polling place c.) A ballot cast by a person who was ineligible to vote d.) Multiple ballots cast by one person 8.) The General Manager shall promptly investigate all protests, if any, before accepting the tabulation results. The General Manager may only reject the tabulation results if one of the bases for protest exists and he/she concludes that the outcome of the election was affected thereby. If the General Manager does not accept the tabulation results, he/she shall schedule a new election. G. The election results shall be final upon acceptance of the tabulation results by the General Manager following a rejection of any protests or, if no protests are received, following the 13 expiration of the 24 hour protest period. If the recognized employee organization is decertified, the District shall cease to recognize the organization as the representative for the representation unit as of the date the results are final. If a new organization has been certified as the recognized employee organization, the District shall thereafter recognize that organization as the representative of the representation unit. A new recognized employee organization shall be bound by any memoranda of understanding then in place for the representation unit. 5.1110 INDIVIDUAL REPRESENTATION A. Any individual may present a concern relating to working conditions to the General Manager pursuant to the administrative procedures of the District, if any, and have such concern fairly considered, without the participation of a recognized employee organization. The individual may be represented by any person of his/her choosing., including a registered employee organization. Any concerns brought pursuant to this Section is subject to the provisions of Section 5.07(A). B. If an employee or group of employees who are members of a recognized employee organization present a concern to the General Manager, he/she shall notify an affected recognized employee organization of such concerns within three (3) days of receiving it. C. The right to individual representation provided above is not intended to nor shall it confer a right to bargain or negotiate individual terms and conditions of employment. 5.1211 EMPLOYER-EMPLOYEE COMMUNICATIONS A. The General Manager shall make available space on a bulletin board or other reasonable means of communication to a recognized employee organization, so that it may communicate with its members. No employee organization literature may be distributed in work areas, nor may any person solicit employees during working time. The General Manager shall communicate to all employees and all registered or recognized employee organizations the contents of this Chapter. B. Recognized employee organizations may use District facilities for meetings of District employees, provided such meetings are held outside of regularly scheduled working hours for the employees in attendance, space permitting. Recognized employee organizations must obtain permission from the General Manager or designee to use District facilities, as discussed in Section 5.07(BC), above. 5.1312 INFORMATION REQUESTS A. A recognized employee organization or a registered employee organization may request that the General Manager provide documents or information that are necessary and relevant to their representation rights, such as the preparation or processing of a grievance, for consulting, 14 or for meeting and conferring. The District shall not, however, be required to provide information in a particular form requested or desired by the requestor. B. Requests that do not fall within the following parameters are presumed as requesting irrelevant document(s) and/or information, placing the burden on the requesting party to demonstrate its relevance: 1. The document or information was created within the two years preceding the request. 2. The document or information may be retrieved without resulting in an undue burden on the District i.e. retrieval does not require an extraordinary expense or use of staff time the documents or information may be compiled in the manner requested without extraordinary expense or use of staff time, etc. 3. The document or information does not invade the privacy rights of any person who has not consented to their disclosure in writing. 5.1413 INTERPRETATION This Chapter shall be administered and construed as follows: A. Nothing in this Chapter shall be construed to deny to any person, employee, organization, the District, or any authorized officer, body or other representative of the District, the rights, powers and authority granted by federal or state law. B. This Chapter shall be interpreted so as to carry out the purposes set forth in Section 5.01. C. Nothing in this Chapter shall be construed as giving employees or employee organizations the right to participate in, support, cooperate with or encourage, directly or indirectly, a strike, sick-out, other total or partial stoppage or slowdown of work, or any unlawful concerted action. In consideration of and as a condition of employment by the District, employees recognize that any such actions by them are in violation of their conditions of employment except as expressly otherwise provided by legally preemptive state or contrary local law. District employees who engage in such actions shall be subject to disciplinary action, up to and including termination, and/or may be deemed to have abandoned their employment, and may be replaced, to the extent such actions are not prohibited by preemptive law. Employee organizations that engage in such acts may lose all rights accorded them under this Chapter for a period of up to one year from the last such act. 5.1514 AMENDMENTS After consulting with recognized and registered employee organizations, the Board may from time to time amend this Chapter. 15 5.1615 SEVERABILITY If any provision of this Chapter, or the application of such provision to any persons or circumstances, is held invalid, the remainder of this Chapter, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 1 of 5 PURPOSE It is the purpose of this policy to provide guidelines for the recruitment and selection of regular, student intern, temporary and/or contract employees. POLICY It is the policy of the Otay Water District (“District”) to recruit and select the best qualified Applicants on the basis of job-related standards of experience, education, training, ability, and merit; to encourage members of the communities which we serve, to apply for employment opportunities with the District; to encourage District employees to apply for positions for which they believe they qualify, to assure that qualified internal Applicants are given fair and adequate consideration; and to advance regular District employees when it is determined that they are the best qualified. EQUAL EMPLOYMENT OPPORTUNITY The District is an equal opportunity employer. All employees and Applicants shall receive equal consideration and treatment. The District shall recruit, hire, and promote the best qualified individuals without regard to race, color, religion, religious creed including religious dress and grooming practices, sex (including wages, gender, pregnancy, childbirth, or related medical condition), national origin, ancestry, age, physical or mental disability, medical condition, genetic information, marital status, sexual orientation, military or veteran status, or membership in any other “protected class” recognized by California, Federal or local laws. AUTHORITY OF THE GENERAL MANAGER AND EMPLOYMENT AT WILL Section 2.01 of the District’s Code of Ordinances provides that, pursuant to Sections 71362 and 71363 of the California Water Code, the General Manager has the authority to manage and operate the affairs of the District. This authority includes the employment, discharging and fixing of compensation for all employees and assistants, except those referred to in California Water Code Section 71340, at pleasure, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants. All employment at the District is thus “at-will,” pursuant to Section 71362, and both employees and the District have a right to terminate employment at any time, with or without advance notice, and with or without cause. The General Manager’s authority also includes making appointments of temporary or contract employees needed to perform District work resulting from such matters as interim vacancies, peak workload, and special projects so long as he/she operates within Board-approved budgeted appropriation levels. Contract or Temporary Appointments are not subject to amount limits for agreements, contracts, or other documents as defined in Section 2.01(E) of the District’s Code of Ordinance, or to formal competition, selection and advertisement requirements identified herein. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 2 of 5 DEFINITIONS A. Applicant: A person applying for a position, including a District employee who seeks Appointment to a different position. B. Appointment: The employment of a person in a position, whether on a regular or temporary basis. C. Closed/Promotional Recruitment: A recruitment open only to qualified regular District employees, or open only to qualified regular District employees in a particular classification, unit or division. D. Conviction: Any sentence, suspended sentence, probation or other resolution followed by a verdict, plea (including a no contest plea) or other finding of guilt. The term “Conviction,” as used herein, shall not include any conviction that has been otherwise exempted by law. E. Eligible List: A list of qualified Applicants who remain eligible for consideration for a position. F. Employment Announcement: A formal notice by the District of an employment opportunity. G. Open/Competitive Recruitment: A recruitment open to all interested qualified Applicants. H. Promulgation: The date Human Resources certifies the list of eligible Applicants for consideration. I. Qualified Applicant: An Applicant who has passed all elements of the selection process, is at least 18 years old at the time of Appointment and remains eligible for Appointment. J. Recruitment and Selection Plan: A planned process to establish an adequate pool of qualified Applicants which shall consist of an open/competitive or a Closed/Promotional Recruitment. K. Regular Appointment: An Appointment to a regular authorized position with benefits. L. Regular Vacancy: A vacancy in an authorized position. M. Student Intern: An employee who is currently enrolled at or near full-time status as a student in an accredited community college, college, or university in an undergraduate or graduate program in good academic standing. N. Temporary Appointment: An Appointment made for a specific duration, generally not to exceed one year. Temporary Appointments may be exempt from the formal Recruitment and Selection Plan. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 3 of 5 RECRUITMENT AND SELECTION PLAN All Regular Vacancies shall be filled through an Open/Competitive Recruitment and Selection Plan unless otherwise approved by the General Manager. This is consistent with best practice and expected to maximize community participation, competition, diversity, and the number of highly qualified Applicants available for consideration for employment. However, the General Manager may authorize a Closed/Promotional Recruitment and Selection Plan given the requirements of the position and the quality of the internal Applicant pool. All Applicants for regular positions shall submit to the same Recruitment and Selection Plan for that position. The General Manager may approve revising the Recruitment and Selection Plan in order to better meet the needs of the District. A. Notice of Employment Opportunities Human Resources shall post employment opportunities for Regular Vacancies consistent with the approved Recruitment and Selection Plan. The Employment Announcement shall include the following: 1. Classification Title 2. Salary Rate and/or Range 3. Essential Functions 4. Required Qualifications 5. Skills Exam 6. Application Filing Instructions 7. Equal Employment Opportunity Employer Statement B. Disqualification of Applicants Applicants may be disqualified at any time during the process for any of the following reasons: 1. The Applicant is found to lack any of the minimum job requirements established for the position. 2. The Applicant has made a false statement of material fact in the application or has committed fraud or deception in the selection process or in securing eligibility for Appointment. 3. The Applicant has a history of less than satisfactory employment. 4. The Applicant uses or attempts to use any personal or political influence to further eligibility. 5. The Applicant has without authorization directly or indirectly obtained information regarding examinations. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 4 of 5 6. The Applicant fails to submit his or her application in compliance with articulated guidelines or within the prescribed time limits. 7. The Applicant has taken part in the compilation, administration, or correction of the examinations for the position for which he/she is an Applicant. 8. Any other reason deemed by the General Manager to protect the best interests of the District. C. Examination Content The Recruitment and Selection Plan shall be job-related in order to determine the ability of Applicants to perform the duties of the job classification. The plan may provide for one or more of the following types of examinations: 1. Review of Employment Application and/or Required Supplementary Material(s); 2. Written Examination; 3. Physical Agility and/or Performance Skill Examination; or 4. Oral Interview. D. Eligible Lists Eligible Lists may be maintained to fill current and future vacancies. The Eligible List will be valid for up to twelve (12) months from Date of Promulgation. Human Resources may pull Applicants from any Eligible List in lieu of posting a position or to augment the Applicant pool for other similar classifications with related skills and abilities. E. Conditions of Appointment Once an Applicant has been offered a conditional offer of employment, the Applicant shall meet and agree to the terms and conditions of employment specified for the particular position. Failure of pre- employment examinations may cause the Applicant to be disqualified for employment. Conditions of employment may include, but are not limited to the following: 1. Physical Fitness/Medical Examination; 2. Drug/Alcohol Screening; 3. Verification of lawful work status under Immigration rules; and 4. Verification of employment, education, certificates, licenses, driving, and criminal conviction history including fingerprinting. F. Evaluation of Criminal Conviction Information Upon receipt of Criminal Conviction information, the District shall determine if the information shall disqualify the Applicant. The District shall make an individualized assessment of whether an Applicant’s criminal conviction history has a direct and adverse relationship with the specific duties OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECRUITMENT, SELECTION, AND EMPLOYMENT POLICY 24 11/04/98 05/01/2019 Page 5 of 5 of the job that justify denying the Applicant the position. The District may, but is not required to, commit the results of this individualized assessment to writing. In making the assessment, the District shall consider all of the following: (i) The nature and gravity of the offense or conduct. (ii) The time that has passed since the offense or conduct and completion of the sentence. (iii) The nature of the job sought. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 1 of 8 PURPOSE The Otay Water District (“District”) disapproves of and will not tolerate unlawful discrimination or harassment of its employees, members of the Board of Directors, unpaid interns, volunteers, job applicants or persons providing services pursuant to a contract with the District, or retaliation against those who report such behavior. This policy sets forth a procedure for investigating and resolving internal complaints of discrimination, harassment, or retaliation. DEFINITIONS Discrimination – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class that adversely affects the employee, unpaid intern, volunteer, job applicant, person providing services pursuant to a contract with the District, or his/her work conditions, terms of employment, or work environment. Harassment – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class, made for the purpose or having the effect of adversely affecting that employee’s, unpaid intern’s, volunteer’s, job applicant’s or person providing services pursuant to a contract with the District’s terms of employment, work conditions, or work environment. Harassment may include, but is not limited to: • Verbal conduct such as epithets, derogatory jokes or comments, slurs, or unwelcome invitations or comments; • Visual displays such as derogatory posters, photography, cartoons, drawings or gestures; • Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 2 of 8 Such conduct constitutes harassment when (1) submission to the conduct is made as either an explicit or implicit condition of employment; (2) submission or rejection of the conduct is used as the basis for an employment decision; or (3) the harassment interferes with work performance or creates an intimidating, hostile, or offensive work environment. Sexual Harassment – Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, or verbal, visual, or physical conduct pertaining to a person’s sex (including pregnancy, childbirth, breastfeeding or related medical conditions) and/or of a sexual nature, when submission to such conduct is committed by a supervisor, co-worker, or a non-employee, in the work setting, under any of the following conditions: 1. Submission to the conduct is explicitly or implicitly made a term or condition of employment, progress, or participation in a District employment activity; or 2. Submission to, or rejection of, the conduct by the individual is used as the basis of employment decision(s) affecting the individual; or 3. The conduct has the purpose or effect of having a negative impact upon the individual's work performance or of creating an intimidating, hostile, or offensive work environment. Examples of actions that might constitute sexual harassment, include but are not limited to: 1. Unwelcome verbal conduct such as sexual flirtations or propositions; graphic comments; overly personal conversations; pressure for sexual activity; sexual jokes or stories; unwelcome sexual slurs; epithets; threats; innuendoes; derogatory comments; sexual descriptions; degrading comments; or the spreading of sexual rumors. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 3 of 8 2. Unwelcome visual conduct such as sexually explicit drawings, pictures, photographs, gestures, emails, text messages and/or communications via social media; display of sexually explicit or suggestive objects. 3. Unwelcome physical conduct such as massaging, rubbing, grabbing, fondling, stroking, brushing of the body; touching in an unwanted and/or sexual manner; cornering, blocking, leaning on or over, or impeding normal walking, movements, or standing. 4. Threats and demands to submit to sexual requests as a condition of continued employment, condition for advancement in pay, position or authority or to avoid an adverse consequence, and offers of employment benefits in return for sexual favors. Two general categories of sexual harassment exist: (1) Quid pro quo, meaning "this for that" such as submission to sexual conduct as a condition of employment, benefits or terms and conditions of employment, and (2) Hostile work environment, meaning the sexual conduct is so severe, or pervasive that it creates an intimidating, demeaning, hostile, or offensive environment that unreasonably interferes with an employee’s job performance. Protected Class – Any class of persons who share a common sex, race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status or any other “protected class” recognized by federal or state laws. For purposes of this definition, “sex” includes gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or a pregnancy-related or childbirth-related medical condition. Retaliation – Any decision or action that is based on the fact that a District employee, unpaid intern, volunteer, job applicant, or OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 4 of 8 person providing services pursuant to a contract with the District has previously complained of Discrimination, Harassment, or Retaliation prohibited by this Policy (regardless of whether a formal complaint has been made) or has provided evidence in the investigation of another District employee’s, unpaid intern’s, volunteer’s, job applicant’s or person providing services pursuant to a contract with the District’s complaint under this Policy, made for the purpose of adversely affecting the employee’s, unpaid intern’s, volunteer’s, job applicant or person providing services pursuant to a contract with the District’s conditions of employment, terms of employment, or work environment. POLICY The District is committed to providing a work environment free of unlawful Discrimination, Harassment, or Retaliation against those who report Discrimination or Harassment. Discrimination or Harassment based on sex (including gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or related medical condition), race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status, or any other basis protected by federal or state law, is prohibited. Discrimination or Harassment based on the perception that a person has any of the aforementioned characteristics, or is associated with a person who has or is perceived as having any of the aforementioned characteristics, is prohibited. Retaliation against any person who complains of unlawful Discrimination or Harassment or who provides evidence relating to such a complaint, is prohibited. This Policy applies to all terms and conditions of employment including, but not limited to: hiring, placement, advancement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, compensation and training. It applies to every District employee including management, regular, temporary or contract employees, members of the Board of Directors, unpaid interns, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 5 of 8 volunteers, job applicants and to persons providing services pursuant to a contract with the District. Similarly, the District will not tolerate Discrimination or Harassment by its employees, unpaid interns, volunteers, or non-employees with whom the District has a business, service or professional relationship. The District will also take reasonable steps to protect employees, unpaid interns, and volunteers from Harassment by non-employees in the workplace. Training will be provided to all supervisory and nonsupervisory employees, management, and the Board of Directors as required by law. COMPLAINT PROCEDURE An employee, unpaid intern, volunteer, job applicant, or person providing services pursuant to a contract with the District, who believes he or she has been the victim of Discrimination, Harassment, or Retaliation by a District employee, a member of the Board of Directors, or a person providing services pursuant to a contract with the District may make a complaint verbally, or in writing by completing the District’s Discrimination, Harassment, and Retaliation Complaint Form. An employee, unpaid intern, or volunteer may make a complaint to any of the following: • Human Resources; • Any Supervisor, Manager, Department Assistant Chief, Department Chief, or General Manager; • Complaints against the General Manager should be directed to the President of the Board of Directors. Job applicants, or persons providing services pursuant to a contract with the District may make a complaint to any of the following: • Human Resources or; • General Manager. Any person described above shall forward each written Discrimination, Harassment, and Retaliation complaint to the General Manager or designee, immediately upon receiving the complaint or having knowledge of the complaint. If a complaint is made verbally, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 6 of 8 the person receiving the complaint shall notify Human Resources immediately. Every reported complaint of Discrimination, Harassment or Retaliation will be investigated in a fair, timely and thorough manner. If any Manager, Supervisor, Department Assistant Chief, or Department Chief becomes aware of or suspects Discrimination, Harassment, or Retaliation against a District employee, unpaid intern, volunteer, job applicant, member of the Board, or person providing services pursuant to a contract with the District, he/she must immediately notify the Human Resources Manager of the relevant facts and circumstances. The General Manager or designee may conduct an investigation of alleged Discrimination, Harassment, or Retaliation, or may delegate responsibility for the investigation to another District management employee or an outside investigator. If the complaint is against the General Manager, the President of the Board of Directors shall be responsible for conducting an investigation, assigning the investigation to another management employee or outside investigator, and overseeing the investigation. If the complaint is against the Board of Directors or one of its members, the General Manager shall be responsible for contracting with an outside investigator to conduct the investigation. The Board will take appropriate action based on the findings. During its investigation, the District shall take appropriate steps to protect the privacy of all parties involved and confidentiality will be maintained to the extent possible. However, this shall not be construed to justify refusing to inform a person who has been accused of violating this Policy of the identity of the complainant and witnesses against him/her. Reports of Discrimination, Harassment, or Retaliation may not be made anonymously, but information regarding any report and subsequent investigation will be disseminated on a “need to know” basis. If a finding is made that Discrimination, Harassment, or Retaliation has occurred, the District shall take remedial action appropriate to OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 7 of 8 the circumstances, which may include disciplinary action up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer who has violated this Policy, or sanctions for a person providing services pursuant to a contract with the District, who has violated this Policy. Every District employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, and person providing services pursuant to a contract with the District, has a duty to participate in good faith in any investigation conducted under this Policy. Failure to participate in good faith is a ground for disciplinary action appropriate to the circumstances. All employees, unpaid interns, volunteers, job applicants, members of the Board of Directors and persons providing services pursuant to a contract with the District are encouraged to report, in good faith, Discrimination, Harassment, or Retaliation. The District will not tolerate Retaliation against any employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or person providing services pursuant to a contract with the District who makes a good faith complaint of Discrimination, Harassment or Retaliation, or cooperates in an investigation. However, reports made maliciously or in bad faith may subject an employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or person providing services pursuant to a contract with the District, to disciplinary action appropriate to the circumstances up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer, or sanctions for a member of the Board of Directors or a person providing services pursuant to a contract with the District. The action of filing a complaint with the District does not preclude a complainant from filing a complaint with the appropriate State or Federal agency. An employee, unpaid intern, volunteer, job applicant or a person providing services pursuant to a contract with the District may contact the Equal Employment Opportunity Commission at www.eeoc.gov or (213) 894-1000, or the Department of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION, AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 05/01/19 Page 8 of 8 complaint, or for information relating to discrimination complaint procedures and requirements. POLICY HISTORY Human Resources Policy and Procedure, Effective August 4, 1993. Board Policy adopted October 11, 2005. 1 CHAPTER 5 PERSONNEL PRACTICES SECTION 5 EMPLOYER-EMPLOYEE RELATIONS 5.01 PURPOSE It is the purpose of this Chapter to establish orderly procedures to promote full communication between the District and its employees by providing a reasonable method for meeting and conferring and/or consulting in good faith with Recognized Employee Organizations, and resolving disputes, regarding wages, hours, and other terms and conditions of employment, as well as to promote the improvement of personnel management and employee relations by providing a uniform basis for recognizing the right of District employees to join or not to join any organization of their choice and be represented by such organization in their employment relationship with the District. It is also the purpose of this Chapter to fully comply with the provisions of the Meyers-Milias Brown Act (Gov. Code, § 3500.5 et seq.) and to provide orderly procedures for the administration of employer-employee relations. 5.02 DEFINITIONS A. District: The Otay Water District. B. Board of Directors or Board: The Board of Directors of the District. C. Employee: Any person employed by the District other than elected officials. D. Employee Organization: A lawful organization that includes employees of the District and that has as one of its primary purposes representing those employees in their employment relations with the District. E. Recognized Employee Organization: An employee organization that has been formally acknowledged by the District pursuant to this Chapter as the sole employee organization representing the employees in an appropriate unit. A recognized employee organization has the exclusive right to meet and confer in good faith on behalf of the employees within such unit concerning matters within the scope of representation, and thereby assumes a corresponding obligation of fairly representing such employees. F. Representation Unit: A group of District employee classifications that have a common community of interest, established pursuant to this Chapter. G. Meet and Confer: The free exchange of information, opinions and proposals in good faith between representatives of the District and a recognized employee organization with the goal of reaching agreement on matters within the scope of representation. 2 H. Consult or Consultation: Verbal or written communication for the purpose of presenting and obtaining views or advising of intended actions in a good faith effort to reach a consensus, and as distinguished from meeting and conferring in good faith regarding matters within the scope of the meet and confer process as required by applicable law. I. Proof of Employee Support: An unambiguous written statement that an employee wishes to designate an employee organization as the recognized employee organization for his/her representation unit, or that an employee wishes to cease having an employee organization be the recognized employee organization for his/her representation unit. This statement must appear on the same page as and under which an employee’s printed name, classification, and signature appear, and must have been signed within the year preceding its submission. J. General Manager: The General Manager of the District. K. Terms not defined herein shall have the meanings as set forth in the Meyers-Milias Brown Act. 5.03 DISTRICT AUTHORITY A. The District has the sole right and exclusive authority to direct the affairs of, manage, and maintain the efficiency of the District, to set standards of services to be offered to the public, and to control the organization and operation of the District. The District also has the sole and exclusive authority to take any actions which the District deems desirable to conduct its affairs including, but not limited to, directing its work force (including scheduling and assigning work and overtime); hiring, firing, discharging, promoting, demoting, transferring, or disciplining employees, consistent with and pursuant to the authority of Water Code section 71362; determining the methods, means and personnel by which District operations are to be conducted; layoffs for budgetary considerations or lack of work; subcontracting work; maintaining efficiency of employees; taking all necessary actions to carry out its mission in emergencies; and exercising complete control and discretion over its organization and the technology of performing its work consistent with the provisions of this Chapter and the Meyers-Milias Brown Act. The foregoing authority of the District is descriptive, not exhaustive. B. Except as otherwise stated, all powers and obligations described in this Chapter are hereby delegated to the General Manager. The General Manager may delegate these powers and obligations to other District managers as he/she deems necessary. 5.04 EMPLOYEE RIGHTS Each employee has the following rights which he/she may exercise in accordance with the Meyers-Milias Brown Act: 3 1. The right to form, join and participate in the activities of employee organizations of the employee's own choosing for the purpose of representation on matters of the employee's relations with the District, or to refuse to join or participate in the activities of any employee organization. 2. The right to be free from interference, intimidation, restraint, coercion, discrimination or reprisal by the District, other employees, or employee organizations with respect to the employee's membership or non- membership in any employee organization, or with respect to any lawful activity associated therewith which is within the scope of representation. 3. The right to represent himself or herself individually in his or her employee relations with the District, to the extent allowed by law. Whenever a District employee desires to represent himself or herself in consulting with District management during regular hours of work, the employee shall first request and obtain permission to take time off to do so. 5.05 ESTABLISHMENT OF REPRESENTATION UNITS A. The General Manager shall determine the appropriate composition of a representation unit by considering the following factors: 1. The effect of the proposed unit on the operations of the District. 2. The proposed unit’s compatibility with the primary responsibility of the District and its employees to serve the public effectively and economically. 3. The ability to provide effective representation to employees based on a recognized community of interest, within the broadest feasible grouping of classifications sharing an identifiable community of interest. B. In considering whether classifications share an identifiable community of interest, the following factors shall be considered: 1. Similarity of the work performed, required qualifications, level of responsibility, and general working conditions. 2. History of representation in the District, except that no representation unit shall be deemed appropriate solely on the basis of the extent to which employees in the proposed unit have organized. 3. Consistency with District administrative organization. 4. Number of employees and classifications, and the effect on the administration of employer-employee relations created by the 4 fragmentation of classifications and/or increase in number of representation units. 5. Effect on the classification structure and impact on the stability of the employer-employee relationship of dividing related classifications among two or more representation units. 6. Supervisory employees shall not be placed in a representation unit with non- supervisory employees. 7. Management employees shall not be placed in a representation unit with non-management employees. 8. Confidential employees shall not be placed in a representation unit with non-confidential employees. 9. Professional employees shall not be required to be included in the same unit with non-professional employees. C. After notice to and consultation with affected employee organizations, the Human Resources Manager shall allocate new classifications or positions, delete eliminated classifications or positions, and retain, reallocate or delete classifications in accordance with this Section. 5.06 CERTIFICATION OF EMPLOYEE ORGANIZATIONS A. Recognized Employee Organizations – Requirements: An employee organization that wishes to become the recognized employee organization of a representation unit or proposed representation unit shall file with the General Manager a petition for certification as a recognized employee organization. The petition shall include: 1. The name mailing address and electronic mailing address of the employee organization. 2. The names and titles of its officers. 3. A designation of one person, including his/her address, to whom notice to the organization may be sent for any purpose. 4. The names of persons who are authorized to act as representatives of the organization in any communications with the District. 5. A statement that the employee organization has, as one of its primary purposes, the responsibility of representing employees in their employment relations with the District. 5 6. A statement whether the employee organization is a chapter of, or affiliated directly or indirectly in any manner, with a local, regional, state, national, or international organization, and, if so, the name and address of each such other organization. 7. A statement that the employee organization agrees to comply with the provisions of this Chapter. 8. Certified copies of the employee organization’s constitution and bylaws. 9. A statement that the organization does not restrict membership based on race, color, creed, national origin, political affiliation, sex, disability, age, or any other classification prohibited by state or federal law. 10. A list of all District employees who are represented by the organization and their job classifications or position titles. 11. A statement that the employee organization has in its possession proof of employee support as herein defined to establish that a majority of the employees in the unit have designated the employee organization to represent them in their employment relations with the District. Such written proof shall be submitted for confirmation to the General Manager or to a mutually agreed upon disinterested third party. 12. A request that the District formally acknowledge the petitioner as the recognized employee organization of a representation unit of District employees. B. Processing Of Recognition Petition: Upon receipt of a petition that proposes a new representation unit, the General Manager shall determine whether: 1. There has been compliance with the requirements of the recognition petition, and 2. The proposed representation unit is an appropriate unit. If the representation unit is appropriate and the proof of support is found to be valid, the General Manager shall accept the petition and give notice of the request for recognition filing thereof to all District employees and shall take no action on said request for thirty (30) days thereafter. Recognized employee organization status shall be granted if the proof of support shows that a majority (50% plus one) of the employees in the representation unit or proposed representation unit desire the representation. However, if another labor organization has previously been lawfully recognized as a recognized employee organization of all or part of the same unit, or if more than one labor organization has been proposed as the recognized employee 6 organization, determination of the recognized employee organization shall be made by the State Mediation and Conciliation Service, who shall review the proof of support to verify the status of the employee organization. The General Manager shall engage the State Mediation and Conciliation Service to conduct an election within 30 days of the foregoing notice, or as soon thereafter as the State Mediation and Conciliation Service can conduct it, among the eligible members of the representation unit. If the General Manager does not accept the petition, he/she shall notify the petitioning employee organization of the reasons therefore in writing. No petition shall be accepted affecting a representation unit or proposed representation unit for which, within the preceding 12 months, a certification or decertification election was conducted. C. Election Procedure: 1. When an election is required pursuant to this Section, it shall be conducted by secret ballot in accordance with the procedures and regulations of this section. Eligible voters shall be those employees in the representation unit whose names appear on the payroll immediately prior to the date which ended at least fifteen (15) days before the date of the election, including those shown as on vacation or authorized leaves of absence, and who are employed by the District in the same unit on the date of the election. If the State Mediation and Conciliation Service declines to conduct the election, the Board of Directors will adopt rules for the conduct of election. There shall be no more than one valid election under this Section pursuant to any petition in a 12-month period affecting the same unit. 2. The General Manager shall declare the results of the election in accordance with the following: a. When a majority of the eligible employees voting at the election vote to certify an organization, the General Manager shall certify the organization as the recognized employee organization of the representation unit. b. When two organizations appear on the ballot and no organization receives a majority of the votes cast, the General Manager shall declare that no organization will be the recognized employee organization of the unit. c. When three or more organizations appear on the ballot and no organization receives a majority of the votes cast, the General Manager shall order a runoff election between the two organizations receiving the greatest number of votes, the rules governing an initial election being applicable to a run-off election. 7 d. If less than a majority of eligible employees voted, the General Manager shall declare the election void and no further election shall be held based on the petition. Half of the cost incurred in conducting a certification election shall be borne by the District, and the other half shall be divided equally among and be paid by the employee organizations appearing on the ballot. D. Current Information: The information contained in the petition shall be kept current by the recognized employee organization. The General Manager may, from time to time, require verification by the recognized employee organization of any information contained in the petition (and current supplements thereto), including submission of such written proof as the recognized employee organization has that it has been designated by the listed employees to represent them. 5.07 EMPLOYEE ORGANIZATIONS' RIGHTS A. The District recognizes the right of any recognized employee organization to govern its internal affairs. A recognized employee organization may represent its members in disputes and grievance matters. A recognized employee organization may not present a grievance or dispute in its own name or on behalf of itself. The scope of representation includes all matters relating to employment conditions and employee relations, including, but not limited to, wages, hours and other terms and conditions of employment. However, the scope of representation shall not include the merit, necessity, or organization of any service or activity provided by law or established by the District. If the General Manager and the recognized employee organization reach agreement, they shall jointly prepare a written memorandum of understanding which shall not be binding on the District until it is ratified by the Board of Directors. B. Officers and/or representatives of recognized employee organizations may petition the General Manager, or designee, in writing for access to work facilities and work locations outside of regular working hours. The petition shall identify where they wish to have access and the purpose for which access is sought. The General Manager shall not unreasonably refuse such petition and will provide to persons granted access an appropriate escort and rules and regulations governing access to District property, consistent with Board of Directors Policy No. 13. 5.08 CONFERENCES The General Manager or designee shall, upon written request, meet and confer in good faith regarding wages, hours and other terms and conditions of employment with the representatives of any recognized employee organization and shall consider fully such presentations as are made on behalf of employees who are members of such recognized employee organization. Such meetings and conferences shall be held within a reasonable time upon written 8 request, which shall set forth the matter(s) desired to be presented. The General Manager may utilize other staff of the District to assist him/her and to attend conferences with him/her. In the event that any Memorandum of Understanding (MOU) exists with a procedure different than as stated above, the Memorandum of Understanding shall prevail. Meet and confer sessions for future memoranda of understanding shall commence on a date so that negotiations may be completed, if possible, prior to the end of the existing MOU. 5.09 IMPASSE PROCEDURE If, after a reasonable period of time of meeting and conferring, a recognized employee organization and the General Manager fail to reach agreement on matters within the scope of representation, either party may declare the existence of an impasse. Upon declaration of impasse, the District and a Recognized Employee Organization may mutually ask the California State Conciliation Service to assist the parties in reconciling differences through mediation. All mediation proceedings shall be private. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. All mediation costs shall be borne equally by the District and the recognized employee organization. A Recognized Employee organization may request to the Public Employment Relations Board (PERB) to submit the impasse to fact-finding, pursuant to Government Code sections 3505.4 through 3505.7, no sooner than 30 days, but no more than 45 days, following the declaration of impasse. Fact-finding panel recommendations are only advisory, not binding. All mutually incurred costs for fact-finding shall be borne equally by the District and the recognized employee organization (i.e. cost for the services of the panel chairperson). After applicable mediation and fact-finding procedures have been exhausted, the General Manager may but need not implement its last, best, and final offer, but not earlier than 10 days after the factfinders’ written findings of fact and recommended terms of settlement have been submitted to the parties pursuant to Government Code section 3505.5 and following a public hearing regarding the impasse. Any legislative action by the Board of Directors on the matters in dispute shall be final and binding. 5.10 DECERTIFICATION PROCEDURE A. An employee may present to the General Manager a petition to decertify the recognized employee organization for his/her representation unit. No action may be taken on a petition that is submitted within 12 months of the date of initial certification of a recognized employee organization or of any election to certify or decertify such organization. B. A decertification petition must be declared by the duly authorized signatory under penalty of perjury to be true, correct, and complete and include the following: 9 1. The name, mailing address, electronic mailing address, and telephone number of the petitioning employee and a designated representative authorized to receive notices or requests for further information; 2. The title of the representation unit; 3. The name of the incumbent recognized employee organization for the representation unit sought to be decertified; 4. If another organization is proposed to become the recognized employee organization, the name of such organization and the name, mailing address, electronic mailing address, and telephone number of its agent; 5. An allegation that the incumbent recognized employee organization no longer represents a majority of the employees in the appropriate unit, and any other relevant and material facts relating thereto; 6. Proof of support from at least 30 percent of the employees in the representation unit who: a. no longer wish to be represented by the incumbent recognized employee organization; and/or b. wish to be represented by a different employee organization. C. Within five business days of receiving a decertification petition, the General Manager shall serve a copy of the petition on the recognized employee organization. The General Manager shall verify that proof of support for decertification and/or certification of a new recognized employee organization contains the signatures of at least thirty percent (30%) of the employees in the representation unit. Verification shall consist of confirming that each person identified in a proof of support is in the representation unit and that his/her signature is genuine. Upon verifying proof of support or lack thereof, the General Manager shall so notify the petitioner, the recognized employee organization, and, where applicable, the agent of the proposed new recognized employee organization in writing. If the General Manager verifies proof of support of at least 30 percent (30%) of the representation unit for more than one proposed new recognized employee organization, each such organization shall be placed on the ballot. D. Upon verifying appropriate proof of support, the General Manager shall schedule an election, to be conducted no earlier than 21 calendar days and no later than 42 calendar days after verification. At least 15 calendar days before the scheduled date of the election, General Manager shall post in one or more conspicuous places frequented by members of the representation unit a copy of the decertification petition, notice of the date, time, and place of the election, and a brief 10 statement of the purpose of the election. The notice shall remain posted until the day after the election. E. If appropriate proof of support was verified for a proposed new recognized employee organization, the ballot shall state the following: 1. Shall the [recognized employee organization] continue to be the recognized employee organization for the [name of representation unit] unit? ____ Yes ([recognized employee organization] continues to be the recognized employee organization) ____ No ([recognized employee organization] ceases to be the recognized employee organization) {use when there is only one proposed new representative} 2. If the [recognized employee organization] ceases to be the recognized employee organization, shall the [proposed new recognized employee organization] become the recognized employee organization for the [name of representation unit] unit? ____ Yes ____ No {use when there is more than one proposed new representative} 2. If the [recognized employee organization] ceases to be the recognized employee organization, please choose one of the following options: ____ [proposed new recognized employee organization #1] becomes the recognized employee organization ____ [proposed new recognized employee organization #2] becomes the recognized employee organization ____ [proposed new recognized employee organization #3 (if applicable)] becomes the recognized employee organization ____ No representative Where more than one proposed new representative appears on the ballot, the order in which each proposed new representative appears shall be determined by lot. If the election is only to decertify the recognized employee organization, the ballot shall state the following: Shall the [recognized employee organization] continue to be the recognized employee organization for the [name of representation unit] unit? ____ Yes ([recognized employee organization] continues to be the recognized employee organization) ____ No ([recognized employee organization] ceases to be the recognized employee organization) 11 F. Elections shall be conducted under the following guidelines: 1. The recognized employee organization may have a representative present at all polling places and during the counting of ballots. The representative shall only observe activities and may not advocate for a particular vote or comment on the tabulation of votes while tabulation is in progress. 2. The proposed new recognized employee organization(s), if any, may have a representative present at all polling places and during the counting of ballots. The representative shall only observe activities and may not advocate for a particular vote or comment on the tabulation of votes while tabulation is in progress. 3. Other than the actual act of voting, no activity shall be conducted within 100 feet of a polling place that advocates for a particular vote. 4. A recognized employee organization shall be decertified if a majority of the representation unit members voting vote to decertify. 5. The votes to certify a proposed new recognized employee organization shall be tabulated only if a majority of those voting vote to decertify the existing recognized employee organization. If the certification votes are tabulated, the proposed new recognized employee organization shall be certified if a majority of the representation unit members voting vote to certify or, if there is more than one new employee organization proposed, the organization receiving the most votes of the representation unit members voting shall be certified. 6. No later than 10:00 a.m. on the day following the election, the General Manager shall post the results of the tabulation of votes at the same location(s) at which notice of the election was posted. 7. A member of the representation unit, an agent of the recognized employee organization, or an agent of the proposed new recognized employee organization may protest the tabulation results within 24 hours of posting of the results. To protest the tabulation results, a person must deliver to the General Manager a letter setting forth all bases for protest. The only acceptable bases for protest are: a. Error or fraud in tabulating the ballots b. Prohibited advocacy at or within 100 feet of a polling place c. A ballot cast by a person who was ineligible to vote d. Multiple ballots cast by one person 8. The General Manager shall promptly investigate all protests, if any, before accepting the tabulation results. The General Manager may only reject the tabulation results if one of the bases for protest exists and he/she concludes 12 that the outcome of the election was affected thereby. If the General Manager does not accept the tabulation results, he/she shall schedule a new election. G. The election results shall be final upon acceptance of the tabulation results by the General Manager following a rejection of any protests or, if no protests are received, following the expiration of the 24 hour protest period. If the recognized employee organization is decertified, the District shall cease to recognize the organization as the representative for the representation unit as of the date the results are final. If a new organization has been certified as the recognized employee organization, the District shall thereafter recognize that organization as the representative of the representation unit. A new recognized employee organization shall be bound by any memoranda of understanding then in place for the representation unit. 5.11 INDIVIDUAL REPRESENTATION A. Any individual may present a concern relating to working conditions to the General Manager pursuant to the administrative procedures of the District, if any, and have such concern fairly considered, without the participation of a recognized employee organization. The individual may be represented by any person of his/her choosing.. B. If an employee or group of employees who are members of a recognized employee organization present a concern to the General Manager, he/she shall notify an affected recognized employee organization of such concerns within three (3) days of receiving it. C. The right to individual representation provided above is not intended to nor shall it confer a right to bargain or negotiate individual terms and conditions of employment. 5.12 EMPLOYER-EMPLOYEE COMMUNICATIONS A. The General Manager shall make available space on a bulletin board or other reasonable means of communication to a recognized employee organization, so that it may communicate with its members. No employee organization literature may be distributed in work areas, nor may any person solicit employees during working time. The General Manager shall communicate to all employees and all recognized employee organizations the contents of this Chapter. B. Recognized employee organizations may use District facilities for meetings of District employees, provided such meetings are held outside of regularly scheduled working hours for the employees in attendance, space permitting. Recognized employee organizations must obtain permission from the General Manager or designee to use District facilities, as discussed in Section 5.07(B), above. 13 5.13 INFORMATION REQUESTS A recognized employee organization may request that the General Manager provide documents or information that are necessary and relevant to their representation rights, such as the preparation or processing of a grievance, for consulting, or for meeting and conferring. The District shall not, however, be required to provide information in a particular form requested or desired by the requestor. 5.14 INTERPRETATION This Chapter shall be administered and construed as follows: A. Nothing in this Chapter shall be construed to deny to any person, employee, organization, the District, or any authorized officer, body or other representative of the District, the rights, powers and authority granted by federal or state law. B. This Chapter shall be interpreted so as to carry out the purposes set forth in Section 5.01. 5.15 AMENDMENTS After consulting with recognized employee organizations, the Board may from time to time amend this Chapter. 5.16 SEVERABILITY If any provision of this Chapter, or the application of such provision to any persons or circumstances, is held invalid, the remainder of this Chapter, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 SUBMITTED BY: Eid Fakhouri, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Kevin Koeppen, Assistant Chief of Finance Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Adopt Resolution No. 4360 Amending Policy No. 27, the Investment Policy, of District’s Code of Ordinances and the Re-Delegation of Authority for All Investment Related Activities to the Chief Financial Officer GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution No. 4360 amending Policy No. 27, the Investment Policy, of the District’s Code of Ordinances and re- delegate authority for all investment related activities to the Chief Financial Officer, in accordance with Government Code Section 53607. COMMITTEE ACTION: See Attachment A. PURPOSE: Government Code Section 53646 recommends that the District’s Investment Policy be tendered to the Board on an annual basis for review. In addition, Government Code Section 53607 requires that for the Board’s delegation of investment responsibilities to the Chief Financial Officer to remain effective, the governing board must re- delegate authority over investment activities on an annual basis. ANALYSIS: The primary goals of the Investment Policy are to assure compliance with the California Government Code, Sections 53600 et seq. The primary objectives, in priority order, of investment activities are: 1. Protect the principal of the funds. 2. Remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 3. The District’s return is a market rate of return that is commensurate with the conservative investments approach to meet the first two objectives of safety and liquidity. The code provides a broad range of investment options for local agencies, including Federal Treasuries, Federal Agencies, Callable Federal Agencies, the State Pool, the County Pool, high-grade corporate debt, and others. Each year, staff reviews the legislative changes to the California Government Code to ensure our Investment Policy reflects the most recent updates approved by the California State Legislature. During this year’s policy review, there were no legislative changes that affect our Investment Policy. On an annual basis, staff submits the Investment Policy to our list of Broker/Dealers for their professional input and guidance of the District’s Investment Policy. This year, Otay’s Broker/Dealers recommended 3 changes be made to our Investment Policy. Staff reviewed these changes and recommend the following updates be made: 1. Section 8.04: The current wording is interpreted by our Broker/Dealers as restricting the purchase of Certificates of Deposits (CDs) to be made directly from FDIC insured entities only. This restriction prevents the District from purchasing negotiable FDIC insured CDs through our Broker/Dealers. The revised language removes the restriction and allows the District to purchase FDIC insured CDs through Otay’s Broker/Dealers. 2. Section 8.05: The revised language reduces the percentage of commercial paper investment the District can own from 10 percent to no more than 2 percent of the outstanding commercial paper of any single issuer. This change is recommended to reduce the District’s overall investment risk. 3. Section 8.06: The revised language reduces the percentage of medium-term notes the District can own from 10 percent to no more than 2 percent of the outstanding medium-term notes of any single issuer. This change is recommended to reduce the District’s overall investment risk. Because of the District’s adherence to a conservative range of authorized investments, we have been able to maintain a healthy and diversified portfolio that meets our overall investment objectives and supports our long-term financial plans. The policy is consistent with the current law and the overall objectives of the policy are being met. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Demonstrate financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. Attachments: A) Committee Action B) Resolution No. 4360 Exhibit 1 - Policy No. 27 Strike-through Exhibit 2 – Policy No. 27 Proposed ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 4360 Amending Policy No. 27, the Investment Policy, of District’s Code of Ordinances and the Re-Delegation of Authority for All Investment Related Activities to the Chief Financial Officer COMMITTEE ACTION: The Finance and Administration Committee recommend that the Board adopt Resolution No. 4360 amending Policy No. 27, the Investment Policy, of the District’s Code of Ordinances, and to re-delegate authority for all investment related activities to the Chief Financial Officer, in accordance with Government Code Section 53607. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. Page 1 of 2 RESOLUTION NO.4360 WHEREAS, the Otay Water District Board of Directors has been presented with an amended Investment Policy No. 27 of the District’s Code of Ordinances for the financial management of the Otay Water District; and WHEREAS, the amended Investment Policy has been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended Investment Policy; and WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the amended Investment Policy, incorporated herein as Exhibit 2, is hereby adopted. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 1st day of May 2019, by the following vote: Ayes: Noes: Abstain: Absent: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING INVESTMENT POLICY NO.27 OF THE DISTRICT’S CODE OF ORDINANCES Attachment B Page 2 of 2 _______________________ President ATTEST: ____________________________ District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 1 of 19 1.0: POLICY It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds. 2.0: SCOPE This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include: 2.1) General Fund 2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund 2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund 2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB) 2.4) Debt Reserve Fund Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by the legal documents that govern the terms of such debt issuances. 3.0: PRUDENCE Investments should be made with judgment and care, under current prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Exhibit 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 2 of 19 The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0: OBJECTIVE As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. 4.2) Liquidity: The Otay Water District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 4.3) Return on Investment: The Otay Water District’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 3 of 19 53692. Management responsibility for the investment program is hereby delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. 6.0: ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the District. 7.0: AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Chief Financial Officer shall maintain a list of District selected financial institutions and security broker/dealers authorized and approved to provide investment services in the State of California. Investment services include the buying or selling of permissible investments such as treasuries, government agencies, etc. for delivery to the custodian bank. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 4 of 19 qualified bidders for investment transactions must supply the District with the following, as appropriate:  Audited Financial Statements.  Proof of Financial Industry Regulatory Authority (FINRA) certification.  Proof of state registration.  Completed broker/dealer questionnaire.  Certification of having read the District’s Investment Policy.  Evidence of adequate insurance coverage. An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer through which the District invests. 8.0: AUTHORIZED AND SUITABLE INVESTMENTS From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of securities, as further limited herein: 8.01) United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. 8.02) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $65 million). The District may also invest bond proceeds in LAIF with the same but independent maximum limitation. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 5 of 19 8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 6 of 19  Federal Home Loan Bank (FHLB)  Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac")  Federal National Mortgage Association (FNMA or "Fannie Mae")  Government National Mortgage Association (GNMA or “Ginnie Mae”)  Federal Farm Credit Bank (FFCB)  Federal Agricultural Mortgage Corporation ( FAMCA or “Farmer Mac”) There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity from the settlement date limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A” rating or higher by a nationally recognized statistical rating organization. 8.04) Interest-bearing demand deposit accounts and Certificates of Deposit (CD) willmust be made only in Federal Deposit Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with California Government Code, Section 53652. Certificates of Deposit (CD) will be made only to the FDIC-insured limit of $250,000. Investments in CD’s are limited to 15 percent of the District’s portfolio. 8.05) Commercial paper, which is short-term, unsecured promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 10 2 percent of the outstanding paper of an issuing corporation, and maximum investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code, Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio. and no more than 10 percent of the outstanding commercial paper of any single issuer. 8.06) Medium-term notes defined as all corporate debt securities with a maximum remaining maturity of five years from OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 7 of 19 the settlement date or less, and that meet the further requirements of California Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the District’s portfolio and no more than 2 percent of the outstanding medium- term notes of any single issuer. 8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio. 8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09) Under the provisions of California Government Code 53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero interest accrual if held to maturity. Also, the borrowing of funds for investment purposes, known as leveraging, is prohibited. 9.0: INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:  A description of eligible investment securities, and a written statement of investment policy and objectives.  A description of interest calculations and how it is distributed, and how gains and losses are treated.  A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 8 of 19  A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed.  A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc., utilized by the pool/fund?  A fee schedule, and when and how is it assessed.  Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 10.0 COLLATERALIZATION Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 11.0: SAFEKEEPING AND CUSTODY All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the District and evidenced by safekeeping receipts. 12.0: DIVERSIFICATION The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial institution. 13.0: MAXIMUM MATURITIES OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 9 of 19 To the extent possible, the Otay Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the settlement date of the purchase. However, for time deposits with banks or savings and loan associations, investment maturities will not exceed two years. Investments in commercial paper will be restricted to 270 days. 14.0: INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 15.0: PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark. 16.0: REPORTING The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following:  A listing of individual securities held at the end of the reporting period by authorized investment category.  Average life and final maturity of all investments listed. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 10 of 19  Coupon, discount or earnings rate.  Par value, amortized book value, and market value.  Percentage of the portfolio represented by each investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 11 of 19 17.0: INVESTMENT POLICY ADOPTION The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be reviewed annually by the Board and any modifications made thereto must be approved by the Board. 18.0: GLOSSARY See Appendix A. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 12 of 19 APPENDIX A: GLOSSARY ACTIVE INVESTING: Active investors will purchase investments and continuously monitor their activity, often looking at the price movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER/DEALER: Any individual or firm in the business of buying and selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or other firms, or become a part of the firm's holdings. CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing, FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 13 of 19 COMMERCIAL PAPER: An unsecured short-term promissory note, issued by corporations, with maturities ranging from 2 to 270 days. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 14 of 19 DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures deposits in member banks and thrifts, currently up to $100,000 per deposit. FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest. FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A stockholder owned, publicly traded company chartered by the United OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 15 of 19 States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD). FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities. INTEREST-ONLY STRIPS: A mortgage backed instrument where the investor receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 16 of 19 stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested. INVERSE FLOATER: A bond or note that does not earn a fixed rate of interest. Rather, the interest rate is tied to a specific interest rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment. LEVERAGE: Investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 17 of 19 MUTUAL FUNDS: An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds, and money market instruments. MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy. PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 18 of 19 QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REGIONAL DEALER: A securities broker/dealer, registered with the Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding securities issues following their initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/3/175/ 1/19 Page 19 of 19 STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 1 of 17 1.0: POLICY It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds. 2.0: SCOPE This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include: 2.1) General Fund 2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund 2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund 2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB) 2.4) Debt Reserve Fund Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by the legal documents that govern the terms of such debt issuances. 3.0: PRUDENCE Investments should be made with judgment and care, under current prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Exhibit 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 2 of 17 The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0: OBJECTIVE As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. 4.2) Liquidity: The Otay Water District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 4.3) Return on Investment: The Otay Water District’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through 53692. Management responsibility for the investment program is hereby OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 3 of 17 delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. 6.0: ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the District. 7.0: AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Chief Financial Officer shall maintain a list of District selected financial institutions and security broker/dealers authorized and approved to provide investment services in the State of California. Investment services include the buying or selling of permissible investments such as treasuries, government agencies, etc. for delivery to the custodian bank. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the District with the following, as appropriate: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 4 of 17  Audited Financial Statements.  Proof of Financial Industry Regulatory Authority (FINRA) certification.  Proof of state registration.  Completed broker/dealer questionnaire.  Certification of having read the District’s Investment Policy.  Evidence of adequate insurance coverage. An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer through which the District invests. 8.0: AUTHORIZED AND SUITABLE INVESTMENTS From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of securities, as further limited herein: 8.01) United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. 8.02) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $65 million). The District may also invest bond proceeds in LAIF with the same but independent maximum limitation. 8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 5 of 17  Federal Home Loan Bank (FHLB)  Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac")  Federal National Mortgage Association (FNMA or "Fannie Mae")  Government National Mortgage Association (GNMA or “Ginnie Mae”)  Federal Farm Credit Bank (FFCB)  Federal Agricultural Mortgage Corporation ( FAMCA or “Farmer Mac”) There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity from the settlement date limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A” rating or higher by a nationally recognized statistical rating organization. 8.04) Interest-bearing demand deposit accounts must be made only in Federal Deposit Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with California Government Code, Section 53652. Certificates of Deposit (CD) will be made only to the FDIC-insured limit of $250,000. Investments in CD’s are limited to 15 percent of the District’s portfolio. 8.05) Commercial paper, which is short-term, unsecured promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 2 percent of the outstanding paper of an issuing corporation, and maximum investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code, Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio. 8.06) Medium-term notes defined as all corporate debt securities with a maximum remaining maturity of five years from the settlement date or less, and that meet the further requirements of California Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 6 of 17 District’s portfolio and no more than 2 percent of the outstanding medium-term notes of any single issuer. 8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio. 8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09) Under the provisions of California Government Code 53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero interest accrual if held to maturity. Also, the borrowing of funds for investment purposes, known as leveraging, is prohibited. 9.0: INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:  A description of eligible investment securities, and a written statement of investment policy and objectives.  A description of interest calculations and how it is distributed, and how gains and losses are treated.  A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed.  A schedule for receiving statements and portfolio listings. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 7 of 17  Are reserves, retained earnings, etc., utilized by the pool/fund?  A fee schedule, and when and how is it assessed.  Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 10.0 COLLATERALIZATION Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 11.0: SAFEKEEPING AND CUSTODY All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the District and evidenced by safekeeping receipts. 12.0: DIVERSIFICATION The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial institution. 13.0: MAXIMUM MATURITIES To the extent possible, the Otay Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the settlement date OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 8 of 17 of the purchase. However, for time deposits with banks or savings and loan associations, investment maturities will not exceed two years. Investments in commercial paper will be restricted to 270 days. 14.0: INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 15.0: PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark. 16.0: REPORTING The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following:  A listing of individual securities held at the end of the reporting period by authorized investment category.  Average life and final maturity of all investments listed.  Coupon, discount or earnings rate.  Par value, amortized book value, and market value.  Percentage of the portfolio represented by each investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 9 of 17 17.0: INVESTMENT POLICY ADOPTION The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be reviewed annually by the Board and any modifications made thereto must be approved by the Board. 18.0: GLOSSARY See Appendix A. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 10 of 17 APPENDIX A: GLOSSARY ACTIVE INVESTING: Active investors will purchase investments and continuously monitor their activity, often looking at the price movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER/DEALER: Any individual or firm in the business of buying and selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or other firms, or become a part of the firm's holdings. CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing, FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: An unsecured short-term promissory note, issued by corporations, with maturities ranging from 2 to 270 days. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 11 of 17 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 12 of 17 FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures deposits in member banks and thrifts. FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest. FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A stockholder owned, publicly traded company chartered by the United States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD). OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 13 of 17 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities. INTEREST-ONLY STRIPS: A mortgage backed instrument where the investor receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested. INVERSE FLOATER: A bond or note that does not earn a fixed rate of interest. Rather, the interest rate is tied to a specific interest OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 14 of 17 rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment. LEVERAGE: Investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. MUTUAL FUNDS: An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 15 of 17 various investment vehicles, such as stocks, bonds, and money market instruments. MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy. PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 16 of 17 RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REGIONAL DEALER: A securities broker/dealer, registered with the Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding securities issues following their initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/1/19 Page 17 of 17 TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 1, 2019 SUBMITTED BY: Andrea Carey Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 574 and Resolution No. 4362 Amending Appendix A with the Proposed Changes to Various Fees, Charges, and Deposits; Amending Section 33 General Regulations for Use of Water Meters; Amending Section 34 Issuance and Payment of Water Bills; and Amending Policy 5B Records Policy and Procedures Accessibility, of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 574 and Resolution No. 4362 amending Appendix A with the proposed changes to various fees, charges, and deposits; amending Section 33 General Regulations for Use of Water Meters; amending Section 34 Issuance and Payment of Water Bills; and amending Policy 5B Records Policy and Procedures Accessibility, of the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board the proposed changes to various fees, charges, and deposits in Appendix A, and amending Sections 33, 34, and Policy 5B, of the District’s Code of Ordinances. ANALYSIS: Periodically, the District analyzes fees to ensure all costs are recovered from the individual benefiting from the service performed. At the March 1, 2017 Board meeting was the last time staff brought an update to the Board. Staff has also reviewed common deposits required from customers to ensure the amounts are appropriate for the current time period. Proposed Fee Changes For each fee, staff determined the time spent on the activity. Various staff members were consulted to determine the average time spent completing each task in the office and/or field. In addition, payroll personnel were asked to provide fully loaded labor rates. Using these labor rates and the average time spent to complete a specific task, staff then determined the overall cost required to provide each service. With regard to updating the copy cost, staff also inquired with the San Diego County Water Authority member agencies, the Cities of Chula Vista and San Diego, and the County of San Diego for their copy cost and the District’s proposed charge is in alignment with these agencies. To ensure financial equity to all rate payers, staff is recommending changes to the following fees effective June 1, 2019, as shown in the table below. Code Numbers Item Current Fees Proposed Fees 25.03 & 53.10/11 Set-up Fee for Accounts $10.00 $15.00 34.02 G.1. Lien Processing Fee New $50.00 34.02 G.2. Delinquent Tax Roll Fee New $40.00 Policy 5B Copies of Identifiable Public Records 8 ½” x 11” .10/page .20/page Set-Up Fee A setup fee is charged on any account transferred to a new customer. This fee covers the field and administrative costs associated with opening a new account. Staff has worked hard over the years to minimize the costs of transferring service and, even with this increase, continues to have one of the lowest set-up fees in the county. Lien Processing Fee This proposed new fee covers the costs of processing liens on delinquent owner accounts. California Water Code 72102 allows water districts to file liens with the county for unpaid water and sewer charges. In 2018, the District filed 36 liens. Staff identifies owner accounts that have delinquent balances over 60 days and begins the lien process on these accounts. Staff is required to send an intent to lien letter 30 days prior to filing the lien with the county. This fee will offset staff time associated with researching, noticing and filing the lien with the county. Delinquent Tax Roll Fee In addition to filing liens on the delinquent owner, on an annual basis Otay sends delinquent owner account balances to the County of San Diego’s tax roll. These balances are then collected through the property’s tax bill and reimbursed to Otay. In 2018, the District sent $34,684.92 to the county for collection. This new proposed fee would cover the costs associated with identifying, noticing and submitting these accounts to the county. The changes to Section 34 of the Code of Ordinances reflect the addition of the two new fees above. Proposed Deposit Changes Code Numbers Item Meter Size Current Fees Proposed Fees 25.04 Deposit for Non-Property Owners .75” 75.00 100.00 1” 150.00 200.00 1.5” 200.00 250.00 33.07 Customer Request for Meter Test (Deposit) .75”-1” 25.00 60.00 1.5”-2” 50.00 120.00 3” and Larger 125.00 300.00 Deposits for Non-Property Owners Customers who start service with Otay and are not the owner of the property are required to pay a deposit. This deposit remains on the customer’s account for either 1)12-months, provided they have no more than one late payment during that time period, or 2) until the account is closed. Staff is proposing an increase to this deposit. These new amounts were determined by looking at the District’s average bills for each meter size. The vast majority of tenant deposits are collected on residential .75” meters. The current average bill for this customer class is $80.00 per month. Staff feels the increase from $75 to $100 will reduce the District’s uncollectable balances without placing too heavy a burden on an individual starting new water service. It is important to understand that even if a customer’s initial deposit is refunded due to good payment history, the District’s Code of Ordinances allows for additional deposits, up to two times the average annual monthly bill, to be placed on any account with a repeated history of delinquency. Customer Request for Meter Test The District allows a customer to request for their meter to be tested if they feel it is not working properly. The District asks for the customer to pay a deposit for this test, which is refunded to the customer if the meter does not meet appropriate accuracy ratings. In order to be reimbursed for current labor rates and staff time associated with this meter testing, staff is proposing an increase to these deposit amounts. In addition, staff has proposed a change to the language in Section 33 regarding the accuracy of the meter test to conform to AWWA’s accuracy ratings which are used throughout the industry to determine meter performance. Fees Removed The District provides copies of records to the public pursuant to the California Public Records Act. As the vast majority of the public has the ability to receive information in electronic format, records have been mainly provided electronically. As such, Policy 5B is being updated to reflect this practice. The changes to the policy is noted in the attached strike-through copy, Exhibit 1a. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Based on the average number of occurrences for each fee, staff estimates an increase of approximately $30,000 in annual revenue. The proposed changes reflect the current labor rates and time involved for each task. Updating these fees help to ensure the financial equity of all rate payers as the fees are only charged to those customers that require these services. STRATEGIC GOAL: This revenue source will help the District meet its fiscal responsibility to its ratepayers. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B - Ordinance No. 574 Exhibit 1 – Section 33 Strike-through Exhibit 2 – Section 34 Strike-through Exhibit 3 – Appendix A Strike-through Attachment C – Section 33 Proposed Attachment D – Section 34 Proposed Attachment E – Appendix A Proposed Attachment F – Resolution No. 4362 Exhibit 1a – Policy No. 5B Strike-through Attachment G - Policy No. 5B Proposed ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 574 and Resolution No. 4362 Amending Appendix A with the Proposed Changes to Various Fees, Charges, and Deposits; Amending Section 33 General Regulations for Use of Water Meters; Amending Section 34 Issuance and Payment of Water Bills; and Amending Policy 5B Records Policy and Procedures Accessibility, of the District’s Code of Ordinances COMMITTEE ACTION: The Finance and Administration Committee recommend that the Board adopt Ordinance No. 574 and Resolution No. 4362 amending Appendix A with the proposed changes to various fees, charges, and deposits; amending Section 33 General Regulations for Use of Water Meters; amending Section 34 Issuance and Payment of Water Bills; and amending Policy 5B Records Policy and Procedures Accessibility, of the District’s Code of Ordinances. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. 1 ORDINANCE NO. 574 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 33 GENERAL REGULATIONS FOR USE OF WATER METERS; SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS; AND APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Section 33, General Regulations for Use of Water Meters; Section 34 Issuance and Payment of Water Bills; and Appendix A, be amended as per Exhibits 1, 2 & 3 to this resolution. NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 33, General Regulations for Use of Water Meters; (Attachment C); Section 34 Issuance and Payment of Water Bills (Attachment D); and Appendix A (Attachment E) of the Code of Ordinances shall become effective June 1, 2019. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 1st day of May 2019, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President Attachment B 2 ATTEST: __________________________ District Secretary 33- 1 SECTION 33 GENERAL REGULATIONS FOR USE OF WATER METERS 33.01 FURNISHED AND INSTALLED ONLY BY DISTRICT Water meters used for service from a District water distri- bution system shall be furnished and installed by the District. Meters will be furnished only for use for a specific parcel of land. Master meters and meters for irrigation purposes may be furnished for more than one specific parcel of land upon the ap- proval by the District. The Fees and charges are set forth in Appendix A, 28.02. 33.02 OWNERSHIP OF METERS The District shall retain title to all meters installed within the District. Payment by a customer of installation fees, capacity fees, meter charges, connection charges or any other fees or charges shall not transfer ownership of a meter from the District to the customer. 33.03 RELOCATION OF METERS With prior District approval, water meters may be moved at the request of the owner from one location to another location on the same parcel or within the same tract owned by the customer upon payment of an amount determined by the District. 33.04 METER TURN-OFF REQUESTED BY CUSTOMER At the request of the customer, a water meter may be turned off and locked without charge; provided, however, the system charge shall continue to apply. 33.05 REMOVAL OF METERS A. Abandonment of Service. The District may remove any water meter where the customer has abandoned water ser- vice through that meter. B. Permanent Removal of Meters for Agricultural or Irriga- tion Service. When service is no longer required, me- ters for agricultural and irrigation service may be re- moved upon the request of a lessee who paid the fees and charges (or upon request of the owner if the lease has expired), or upon the request of the owner if the fees were paid by the owner. C. Request for Removal of a Water Meter After Installa- tion. If, after installation of a water meter, a re- quest is made by a customer for the removal of that wa- ter meter from service, the customer shall be credited with the number of Equivalent Dwelling Units ("EDU") Exhibit 1 33- 2 for that meter size. If thereafter a request is made for the installation of the same size water meter at the same location, no capacity fee shall be due. If the customer’s request is for a larger meter, all ca- pacity fees and charges per 28.01 and 28.02 shall be due and payable for all EDUs, less the EDU credit for the meter previously removed. No refund shall be due or payable for any portion of a capacity fee previously paid. The customer shall pay any expenses incurred by the District for removing and replacing the meters. D. Removal of Meters for Delinquent Payment of Water System Charges. If an owner/customer remains delin- quent in the payment of water charges or system charges after written notice of delinquency from the District, the District may remove the owner/customer's water me- ter. Refer to Section 72 for additional information regarding the procedure for removal of the meters. The fees and charges are set forth in Appendix A, 72.04 A.1. If the request for such service is made more than six months after removal of the meter, the request shall be processed as a new order for service and all applicable fees and charges for a new service (except for capacity fees) shall be due and payable. 33.06 READING OF METERS Meters shall be read once each calendar month. Meters are read each time a meter is "turned-on" or "turned- off" and when water service is established as a new account. 33.07 ADJUSTMENT FOR METER INACCURACIES A. Customer Request for Meter Test. A customer may re- quest that the meter for the customer's service be tested for accuracy upon making a deposit with the Dis- trict. The deposit is set forth in Appendix A, 33.07 A. per meter size. B. Results of Meter Test. If upon testing, the meter does not register outside the standard meter accuracy per- centages as set by the AWWA M6 manualmore than five percent (5%) in excess of the rated calibration for such meter size, the deposit shall be retained by the District. If the meter so tested registers more than five percent (5%) in excess of the rated calibration for such meter sizeoutside the standard meter accuracy percentages as set by the AWWA M6 manual, the meter will be replaced by the District and the deposit shall be returned to the customer. No adjustment in billing 33- 3 shall be made for excess registration during any period prior to 120 days before the request for the test. C. Failure of Meter to Register During Service. Should any meter in service fail to register during a billing period, a bill will be issued by the District for the estimated amount of water used during the period of the meter failure, based on prior use under that account. 34-1 SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 34.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE A. Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. B. 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. C. 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. D. Payment of Charges. 1. 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. 2. 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. 34.02 DELINQUENT ACCOUNTS A. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent. B. Late Payment Charge. A late payment charge (see Appendix A, 34.02 B. for charge) of the total amount Exhibit 2 34-2 delinquent shall be added to each delinquent account at the time any amount becomes delinquent, provided that the charge shall not be made on any account which at that time has no delinquencies of record. When a late payment charge is made, such shall be added to the delinquent account as of the date the account becomes delinquent and such charges shall become an inseparable part of the amount due as of that time. C. Notice of Delinquency. A delinquency notice shall be mailed to each customer whose account is delinquent, notifying the customer that service will be turned off unless payment is made. The notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within fifteen (15) calendar days from the date of mailing or presentation of the notice to the customer, or service will be discontinued. D. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. E. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account; however, the partial payment shall not cause removal of the account from a delinquent status and furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. F. Financial Arrangements for Delinquent Accounts. 1. Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service to a delinquent account if financial arrangements, satisfactory to the District, have been established. 2. Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, 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 34-3 Financial Officer, but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. (a) 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. (b) Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. G. Liens against Property for Delinquent Charges Upon written notice to the property owner, a lien against the property may be secured for unpaid bills. One or both of the following lien procedures may apply: 1. Judgement Lien. In case any charges for water or other services remain unpaid, the amount of the unpaid charges may, in the discretion of the District, be secured at any time by filing for record in the Office of the County Recorder, a certificate specifying the amount of such charges and the name and address of the person liable therefore. The lien acquired thereby shall attach to all property within the County that is owned or thereafter acquired by the person. Such lien shall have the force, priority and effect of a judgment lien and shall continue for 10 years from the filing date, unless released or discharged sooner. The lien may be extended, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien, by filing a new certificate in the Office of the County Recorder. A service charge will be applied to any account where a lien is filed (see Appendix A 34.02 G.1. for charge). 2. Tax Lien. Any unpaid charges or fees that are at least 60 days past due on July 1, may become part of the annual taxes levied upon the property upon which service is provided. In addition, if the charges remain unpaid by July 1, the outstanding charges, plus a service charge (see Appendix A 34.02 G.2. for charge) 34-4 will be added to the “secure tax roll” of the County of San Diego for collection. These lien procedures shall be in addition to any termination of service procedures. HG. Termination and Reinstatement of Water Service Under Delinquent Accounts 1. Termination of Service. The water meter or meters under delinquent accounts may be turned off and locked if payment has not been made in accordance with the Notice of Delinquency. (a) Where an owner or manager is listed by the Dis-trict as the customer of record of the service, the District shall make every good faith effort to inform the actual users of the services when the account is in arrears by means of a notice that service will be terminated in ten days. The notice shall further inform the actual users that they have the right to become cus-tomers of the District without being required to pay the amount due on the delinquent account. (b) Residential water service shall not be termi-nated for non-payment in any of the following situations: (1) During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non-payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for payment, shall be given an opportunity for a review. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time not to exceed 12 months. No termination of service shall be effected for any customer complying with an amortization agreement, if the customer 34-5 also keeps the account current as charges accrue in each subsequent billing period. Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. (2) When a customer has been granted an exten-sion of the period for payment of a bill. (3) On the certification of a licensed physi-cian and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortiza-tion agreement to pay the unpaid balance of any bill asserted to be beyond the means of the customer over a period not to exceed 12 months. (c) The ten-day notice of proposed termination may not be sent to the customer until at least 19 days from the date of mailing of the bill for services. The ten-day period shall not com-mence until five days after the mailing of the notice. (d) The District shall make a reasonable, good faith effort to contact an adult person resid-ing at the premises of the customer by tele-phone or in person, at least 48 hours prior to any termination of service. A charge (see Appendix A, 34.02 HG.1.(. (d) for charge) shall be added to the bill for a contact made in person. (e) Every notice of termination of service pursuant to subdivisions (a) and (c) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. (2) The amount of the delinquency. (3) The date by which payment or arrangements for payment is required in order to avoid termination. (4) The procedure by which the customer may initiate a complaint or request an inves- 34-6 tigation concerning service or charges, except that if the bill for service con-tains a description of that procedure, then the notice is not required to contain that information. (5) The procedure by which the customer may request amortization of the unpaid charges. (6) The procedure for the customer to obtain information on the availability of finan-cial assistance including private, local, state or federal sources, if applicable. (7) The telephone number of a representative of the District who can provide additional information or institute arrangements for payment. (f) If a residential customer fails to comply with an amortization agreement, the District shall not terminate service without giving notice to the customer at least 48 hours prior to termi-nation of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the District. (g) Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday or at any time during which the business offices of the District are not open to the public. (h) No termination of service may be effected with-out compliance with this section and any ser-vice wrongfully terminated shall be restored, without charge, for the restoration of service. (See California Government Code Section 60373.) 2. Reinstatement of Service. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and meter "turn-on" charges, have been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. 3. Meter "Turn-On" Charge. A "turn-on" charge shall be made for turning on any meter which has previously been turned off for a delinquent account. 34-7 The charge to turn-on a meter is set forth in Appendix A, 34.02 HG.3. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $827.54 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $2,104.11 1" $5,260.28 1-1/2" $10,520.55 2" $16,832.88 3" $33,665.76 4 $52,602.75 6" $105,205.50 8" $168,328.80 10" $241,972.65 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,151.04 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4" $15.10 1" $28.04 1-1/2" $63.40 2" $107.84 3" $229.36 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2019. Exhibit 3 Section #Code #Fee Description Meter Size Charges 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1) (continued)4" $367.29 6" $751.85 8" $1,214.16 10" $1,747.63 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4" $18.05 1" $25.51 1-1/2" $44.13 2" $66.47 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4" $39.69 1" $56.05 1-1/2" $96.98 2" $146.04 3" $276.96 4" $424.28 6" $833.54 8" $1,324.59 10" $1,897.47 25 25.03 C.3. Business and Publicly-Owned Monthly Fixed System Charges (1)3/4" $37.38 1" $52.79 1-1/2" $91.35 2" $137.57 3" $260.89 4" $399.65 6" $785.17 8" $1,247.71 10" $1,787.32 25 25.03 C.4.3/4" $31.57 1" $44.59 1-1/2" $77.15 2" $116.17 3" $220.32 4" $337.53 6" $663.10 8" $1,053.74 10" $1,509.46 Irrigation and Commercial Agricultural Monthly Fixed System Charges (1) (1) All Water used in December and billed in January 2019. Section #Code #Fee Description Meter Size Charges 25 25.03 C.5. - Irrigation 3/4" $32.20 1" $45.48 1-1/2" $78.70 2" $118.51 3" $224.75 4" $344.31 6" $686.76 8" $1,074.91 10" $1,539.79 25 25.03 C.6. - Commercial 3/4" $38.14 1" $53.86 1-1/2" $93.21 2" $140.38 3" $266.21 4" $407.80 6" $801.16 8" $1,273.13 10" $1,823.75 25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge 1-10 $3.17 11-22 $5.65 23 or more $7.30 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-4 $2.96 5-9 $5.37 10 or more $6.60 25 25.03 D.3.(b) Business and Publicly-Owned Water Rates (1)All Units $3.75 25 25.03 D.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)All Units $5.47 25 25.03 D.5.(c)Recycled Irrigation Water Rates (1)All Units $4.41 25 25.03 D.6.(c)Recycled Commercial Water Rates (1)All Units $3.12 (1) All Water used in December and billed in January 2019. Recyled Monthly Fixed System Charges (1) Recyled Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.7.(b) Potable Temporary and Construction Water Service Rates (1)All Units $10.94 25 25.03 D.8.(b) Recycled Temporary and Construction Water Service Rates (1)All Units $8.82 25 25.03 D.10.(b) Tank Trucks Water Rates (1)All Units $10.94 25 25.03 D.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.11.(d) Water Rate for Service Outside District Boundaries (1)All Units $10.94 25 25.03 D.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.12.(c) Water Rate for Service Outside Improvement District (1)All Units $10.94 25 25.03 D.13.(c) Fire Service Monthly Charge 3" or less $21.57 more than 4"$29.06 25 25.03 D.14.(b)Government Fee Per Unit $0.42 25 25.03 D.15.(b)Interim Service Water Rate(1)All Units $10.94 25 25.03 E.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.056 25 25.04 A. Deposits for Non-Property Owners 3/4"$75.00 1"$150.00 1-1/2"$200.00 2"$360.00 3"$800.00 4"$1,350.00 6"$3,300.00 8"$4,400.00 10"$5,500.00 (1) All Water used in December and billed in January 2019. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $7,660.34 1" $19,150.85 1-1/2" $38,301.70 2" $61,282.72 3" $122,565.44 4 $191,508.50 6" $383,017.00 8" $612,827.20 10" $880,939.10 - TRIAD 3/4" $5,746.79 1" $14,366.98 1 -1/2" $28,733.95 2" $45,974.32 3" $91,948.64 4 $143,669.75 6" $287,339.50 8" $459,743.20 10" $660,880.85 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $831.53 1" $2,078.83 1-1/2" $4,157.65 2" $6,652.24 3" $13,304.48 4" $20,788.25 6" $41,576.50 8" $66,522.40 10" $95,625.95 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$236.25 $112.11 $348.36 $95.18 3/4" x 9"$251.53 $112.11 $363.64 $95.18 1"$304.86 $112.11 $416.97 $95.18 1.5"$495.51 $112.11 $607.62 $215.76 2"$710.01 $112.11 $822.12 $215.76 3"$2,212.68 $674.99 $2,887.67 $3,848.86 4"$3,843.08 $674.99 $4,518.07 $3,848.86 6"$6,638.04 $1,066.20 $7,704.24 $3,848.86 8"$8,293.74 $1,634.92 $9,928.66 $5,521.46 10"$11,927.94 $1,634.92 $13,562.86 $5,521.46 Section #Code #Fee Description Meter Size Charges 28 28.02 - Potable/Recycled Irrigation 3/4" x 7.5"$236.25 $112.11 $348.36 $242.55 3/4" x 9"$251.53 $112.11 $363.64 $242.55 1"$304.86 $112.11 $416.97 $242.55 1.5"$495.51 $112.11 $607.62 $242.55 2"$710.01 $112.11 $822.12 $242.55 3"$1,531.40 $674.99 $2,206.39 $3,848.86 4"$2,981.40 $674.99 $3,656.39 $3,848.86 6"$5,367.49 $1,066.20 $6,433.69 $3,848.86 8"$7,150.46 $1,634.92 $8,785.38 $5,521.46 10"$10,147.04 $1,634.92 $11,781.96 $5,521.46 - Combined Fire and Domestic 4"$9,143.03 $674.99 $9,818.02 $3,848.86 6"$12,168.57 $1,066.20 $13,234.77 $3,848.86 8"$17,692.22 $1,634.92 $19,327.14 $5,521.46 10"$24,144.03 $1,634.92 $25,778.95 $5,521.46 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4. Temporary Meter Install & Removal 3/4" - 4" (on hydrant) $150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10"Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$25.00 1-1/2" & 2 "$50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.02 B.Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d)Delinquency Tag $15.00 34 34.02 G.3.Meter "Turn-On" Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $3,379.23 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $5,781.67 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by winter average units $2.67 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $14.91 53 53.10 A.4. Residential Sewer Without Consumption History 5/8", 3/4" & larger $43.51 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by winter average units $2.67 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$14.91 1"$37.27 1.5"$74.55 2"$119.27 3"$223.64 4"$372.73 6"$745.45 8" $1,192.73 10"$1,714.54 Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates with Consumption History (2) Per dwelling unit $19.08 53 53.11 Commercial and Institutional Sewer Rates Rate multiplied by Low Strength $2.67 annual avg.Medium Strength $3.31 units High Strength $4.56 53 53.11 Commercial and Institutional Monthly Fixed Sewer System Charges (2).75"$14.91 1"$37.27 1.5"$74.55 2"$119.27 3"$223.64 4"$372.73 6"$745.45 8" $1,192.73 10"$1,714.54 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes $100.00/year for first copy and $200.00/year for each copy thereafter Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 22 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 18 Per acre I.D. 18 Will not exceed per each day the violation is identified or continues. $20.00/year or $0.50/meeting Per $1000 of assessed value for I.D. 27 33- 1 SECTION 33 GENERAL REGULATIONS FOR USE OF WATER METERS 33.01 FURNISHED AND INSTALLED ONLY BY DISTRICT Water meters used for service from a District water distri- bution system shall be furnished and installed by the District. Meters will be furnished only for use for a specific parcel of land. Master meters and meters for irrigation purposes may be furnished for more than one specific parcel of land upon the ap- proval by the District. The Fees and charges are set forth in Appendix A, 28.02. 33.02 OWNERSHIP OF METERS The District shall retain title to all meters installed within the District. Payment by a customer of installation fees, capacity fees, meter charges, connection charges or any other fees or charges shall not transfer ownership of a meter from the District to the customer. 33.03 RELOCATION OF METERS With prior District approval, water meters may be moved at the request of the owner from one location to another location on the same parcel or within the same tract owned by the customer upon payment of an amount determined by the District. 33.04 METER TURN-OFF REQUESTED BY CUSTOMER At the request of the customer, a water meter may be turned off and locked without charge; provided, however, the system charge shall continue to apply. 33.05 REMOVAL OF METERS A. Abandonment of Service. The District may remove any water meter where the customer has abandoned water ser- vice through that meter. B. Permanent Removal of Meters for Agricultural or Irriga- tion Service. When service is no longer required, me- ters for agricultural and irrigation service may be re- moved upon the request of a lessee who paid the fees and charges (or upon request of the owner if the lease has expired), or upon the request of the owner if the fees were paid by the owner. C. Request for Removal of a Water Meter After Installa- tion. If, after installation of a water meter, a re- quest is made by a customer for the removal of that wa- ter meter from service, the customer shall be credited with the number of Equivalent Dwelling Units ("EDU") for that meter size. If thereafter a request is made Attachment C 33- 2 for the installation of the same size water meter at the same location, no capacity fee shall be due. If the customer’s request is for a larger meter, all ca- pacity fees and charges per 28.01 and 28.02 shall be due and payable for all EDUs, less the EDU credit for the meter previously removed. No refund shall be due or payable for any portion of a capacity fee previously paid. The customer shall pay any expenses incurred by the District for removing and replacing the meters. D. Removal of Meters for Delinquent Payment of Water System Charges. If an owner/customer remains delin- quent in the payment of water charges or system charges after written notice of delinquency from the District, the District may remove the owner/customer's water me- ter. Refer to Section 72 for additional information regarding the procedure for removal of the meters. The fees and charges are set forth in Appendix A, 72.04 A.1. If the request for such service is made more than six months after removal of the meter, the request shall be processed as a new order for service and all applicable fees and charges for a new service (except for capacity fees) shall be due and payable. 33.06 READING OF METERS Meters shall be read once each calendar month. Meters are read each time a meter is "turned-on" or "turned- off" and when water service is established as a new account. 33.07 ADJUSTMENT FOR METER INACCURACIES A. Customer Request for Meter Test. A customer may re- quest that the meter for the customer's service be tested for accuracy upon making a deposit with the Dis- trict. The deposit is set forth in Appendix A, 33.07 A. per meter size. B. Results of Meter Test. If upon testing, the meter does not register outside the standard meter accuracy per- centages as set by the AWWA M6 manual, the deposit shall be retained by the District. If the meter tested registers outside the standard meter accuracy percent- ages as set by the AWWA M6 manual, the meter will be replaced by the District and the deposit shall be re- turned to the customer. No adjustment in billing shall be made for excess registration during any period prior to 120 days before the request for the test. C. Failure of Meter to Register During Service. Should any meter in service fail to register during a billing 33- 3 period, a bill will be issued by the District for the estimated amount of water used during the period of the meter failure, based on prior use under that account. 34-1 SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 34.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE A. Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. B. 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. C. 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. D. Payment of Charges. 1. 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. 2. 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. 34.02 DELINQUENT ACCOUNTS A. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent. B. Late Payment Charge. A late payment charge (see Appendix A, 34.02 B. for charge) of the total amount Attachment D 34-2 delinquent shall be added to each delinquent account at the time any amount becomes delinquent, provided that the charge shall not be made on any account which at that time has no delinquencies of record. When a late payment charge is made, such shall be added to the delinquent account as of the date the account becomes delinquent and such charges shall become an inseparable part of the amount due as of that time. C. Notice of Delinquency. A delinquency notice shall be mailed to each customer whose account is delinquent, notifying the customer that service will be turned off unless payment is made. The notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within fifteen (15) calendar days from the date of mailing or presentation of the notice to the customer, or service will be discontinued. D. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. E. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account; however, the partial payment shall not cause removal of the account from a delinquent status and furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. F. Financial Arrangements for Delinquent Accounts. 1. Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service to a delinquent account if financial arrangements, satisfactory to the District, have been established. 2. Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, 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 34-3 Financial Officer, but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. (a) 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. (b) Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. G. Liens against Property for Delinquent Charges Upon written notice to the property owner, a lien against the property may be secured for unpaid bills. One or both of the following lien procedures may apply: 1. Judgement Lien. In case any charges for water or other services remain unpaid, the amount of the unpaid charges may, in the discretion of the District, be secured at any time by filing for record in the Office of the County Recorder, a certificate specifying the amount of such charges and the name and address of the person liable therefore. The lien acquired thereby shall attach to all property within the County that is owned or thereafter acquired by the person. Such lien shall have the force, priority and effect of a judgment lien and shall continue for 10 years from the filing date, unless released or discharged sooner. The lien may be extended, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien, by filing a new certificate in the Office of the County Recorder. A service charge will be applied to any account where a lien is filed (see Appendix A 34.02 G.1. for charge). 2. Tax Lien. Any unpaid charges or fees that are at least 60 days past due on July 1, may become part of the annual taxes levied upon the property upon which service is provided. In addition, if the charges remain unpaid by July 1, the outstanding charges, plus a service charge (see Appendix A 34.02 G.2. for charge) will be added to the “secure tax roll” of the County of San Diego for collection. 34-4 These lien procedures shall be in addition to any termination of service procedures. H. Termination and Reinstatement of Water Service Under Delinquent Accounts 1. Termination of Service. The water meter or meters under delinquent accounts may be turned off and locked if payment has not been made in accordance with the Notice of Delinquency. (a) Where an owner or manager is listed by the Dis-trict as the customer of record of the service, the District shall make every good faith effort to inform the actual users of the services when the account is in arrears by means of a notice that service will be terminated in ten days. The notice shall further inform the actual users that they have the right to become cus-tomers of the District without being required to pay the amount due on the delinquent account. (b) Residential water service shall not be termi-nated for non-payment in any of the following situations: (1) During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non-payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for payment, shall be given an opportunity for a review. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time not to exceed 12 months. No termination of service shall be effected for any customer complying with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period. 34-5 Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. (2) When a customer has been granted an exten-sion of the period for payment of a bill. (3) On the certification of a licensed physi-cian and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortiza-tion agreement to pay the unpaid balance of any bill asserted to be beyond the means of the customer over a period not to exceed 12 months. (c) The ten-day notice of proposed termination may not be sent to the customer until at least 19 days from the date of mailing of the bill for services. The ten-day period shall not com-mence until five days after the mailing of the notice. (d) The District shall make a reasonable, good faith effort to contact an adult person resid-ing at the premises of the customer by tele-phone or in person, at least 48 hours prior to any termination of service. A charge (see Appendix A, 34.02 H.1. (d) for charge) shall be added to the bill for a contact made in person. (e) Every notice of termination of service pursuant to subdivisions (a) and (c) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. (2) The amount of the delinquency. (3) The date by which payment or arrangements for payment is required in order to avoid termination. (4) The procedure by which the customer may initiate a complaint or request an inves-tigation concerning service or charges, except that if the bill for service con-tains a description of that procedure, 34-6 then the notice is not required to contain that information. (5) The procedure by which the customer may request amortization of the unpaid charges. (6) The procedure for the customer to obtain information on the availability of finan-cial assistance including private, local, state or federal sources, if applicable. (7) The telephone number of a representative of the District who can provide additional information or institute arrangements for payment. (f) If a residential customer fails to comply with an amortization agreement, the District shall not terminate service without giving notice to the customer at least 48 hours prior to termi-nation of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the District. (g) Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday or at any time during which the business offices of the District are not open to the public. (h) No termination of service may be effected with-out compliance with this section and any ser-vice wrongfully terminated shall be restored, without charge, for the restoration of service. (See California Government Code Section 60373.) 2. Reinstatement of Service. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and meter "turn-on" charges, have been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. 3. Meter "Turn-On" Charge. A "turn-on" charge shall be made for turning on any meter which has previously been turned off for a delinquent account. The charge to turn-on a meter is set forth in Appendix A, 34.02 H.3. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $827.54 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $2,104.11 1" $5,260.28 1-1/2" $10,520.55 2" $16,832.88 3" $33,665.76 4 $52,602.75 6" $105,205.50 8" $168,328.80 10" $241,972.65 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,151.04 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $15.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4" $15.10 1" $28.04 1-1/2" $63.40 2" $107.84 3" $229.36 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2019. Attachment E Section #Code #Fee Description Meter Size Charges 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1) (continued)4" $367.29 6" $751.85 8" $1,214.16 10" $1,747.63 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4" $18.05 1" $25.51 1-1/2" $44.13 2" $66.47 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4" $39.69 1" $56.05 1-1/2" $96.98 2" $146.04 3" $276.96 4" $424.28 6" $833.54 8" $1,324.59 10" $1,897.47 25 25.03 C.3. Business and Publicly-Owned Monthly Fixed System Charges (1)3/4" $37.38 1" $52.79 1-1/2" $91.35 2" $137.57 3" $260.89 4" $399.65 6" $785.17 8" $1,247.71 10" $1,787.32 25 25.03 C.4.3/4" $31.57 1" $44.59 1-1/2" $77.15 2" $116.17 3" $220.32 4" $337.53 6" $663.10 8" $1,053.74 10" $1,509.46 (1) All Water used in December and billed in January 2019. Irrigation and Commercial Agricultural Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 C.5. - Irrigation 3/4" $32.20 1" $45.48 1-1/2" $78.70 2" $118.51 3" $224.75 4" $344.31 6" $686.76 8" $1,074.91 10" $1,539.79 25 25.03 C.6. - Commercial 3/4" $38.14 1" $53.86 1-1/2" $93.21 2" $140.38 3" $266.21 4" $407.80 6" $801.16 8" $1,273.13 10" $1,823.75 25 25.03 D.1.(b) Domestic Residential Water Rates(1)Unit Charge 1-10 $3.17 11-22 $5.65 23 or more $7.30 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-4 $2.96 5-9 $5.37 10 or more $6.60 25 25.03 D.3.(b) Business and Publicly-Owned Water Rates (1)All Units $3.75 25 25.03 D.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)All Units $5.47 25 25.03 D.5.(c)Recycled Irrigation Water Rates (1)All Units $4.41 25 25.03 D.6.(c)Recycled Commercial Water Rates (1)All Units $3.12 (1) All Water used in December and billed in January 2019. Recyled Monthly Fixed System Charges (1) Recyled Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.7.(b) Potable Temporary and Construction Water Service Rates (1)All Units $10.94 25 25.03 D.8.(b) Recycled Temporary and Construction Water Service Rates (1)All Units $8.82 25 25.03 D.10.(b) Tank Trucks Water Rates (1)All Units $10.94 25 25.03 D.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.11.(d) Water Rate for Service Outside District Boundaries (1)All Units $10.94 25 25.03 D.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.12.(c) Water Rate for Service Outside Improvement District (1)All Units $10.94 25 25.03 D.13.(c) Fire Service Monthly Charge 3" or less $21.57 more than 4"$29.06 25 25.03 D.14.(b)Government Fee Per Unit $0.42 25 25.03 D.15.(b)Interim Service Water Rate(1)All Units $10.94 25 25.03 E.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.056 25 25.04 A. Deposits for Non-Property Owners 3/4" $100.00 1" $200.00 1-1/2" $250.00 2" $400.00 3" $1,000.00 4" $1,350.00 6"$3,300.00 8"$7,000.00 10"$10,000.00 (1) All Water used in December and billed in January 2019. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $7,660.34 1" $19,150.85 1-1/2" $38,301.70 2" $61,282.72 3" $122,565.44 4 $191,508.50 6" $383,017.00 8" $612,827.20 10" $880,939.10 - TRIAD 3/4" $5,746.79 1" $14,366.98 1 -1/2" $28,733.95 2" $45,974.32 3" $91,948.64 4 $143,669.75 6" $287,339.50 8" $459,743.20 10" $660,880.85 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $831.53 1" $2,078.83 1-1/2" $4,157.65 2" $6,652.24 3" $13,304.48 4" $20,788.25 6" $41,576.50 8" $66,522.40 10" $95,625.95 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$236.25 $112.11 $348.36 $95.18 3/4" x 9"$251.53 $112.11 $363.64 $95.18 1"$304.86 $112.11 $416.97 $95.18 1.5"$495.51 $112.11 $607.62 $215.76 2"$710.01 $112.11 $822.12 $215.76 3"$2,212.68 $674.99 $2,887.67 $3,848.86 4"$3,843.08 $674.99 $4,518.07 $3,848.86 6"$6,638.04 $1,066.20 $7,704.24 $3,848.86 8"$8,293.74 $1,634.92 $9,928.66 $5,521.46 10"$11,927.94 $1,634.92 $13,562.86 $5,521.46 Section #Code #Fee Description Meter Size Charges 28 28.02 - Potable/Recycled Irrigation 3/4" x 7.5"$236.25 $112.11 $348.36 $242.55 3/4" x 9"$251.53 $112.11 $363.64 $242.55 1"$304.86 $112.11 $416.97 $242.55 1.5"$495.51 $112.11 $607.62 $242.55 2"$710.01 $112.11 $822.12 $242.55 3"$1,531.40 $674.99 $2,206.39 $3,848.86 4"$2,981.40 $674.99 $3,656.39 $3,848.86 6"$5,367.49 $1,066.20 $6,433.69 $3,848.86 8"$7,150.46 $1,634.92 $8,785.38 $5,521.46 10"$10,147.04 $1,634.92 $11,781.96 $5,521.46 - Combined Fire and Domestic 4"$9,143.03 $674.99 $9,818.02 $3,848.86 6"$12,168.57 $1,066.20 $13,234.77 $3,848.86 8"$17,692.22 $1,634.92 $19,327.14 $5,521.46 10"$24,144.03 $1,634.92 $25,778.95 $5,521.46 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4. Temporary Meter Install & Removal 3/4" - 4" (on hydrant) $150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10"Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$60.00 1-1/2" & 2 "$120.00 3" & Larger $300.00 34 34.01 D.2. Returned Check Charges $25.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.02 B.Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1. Lien Processing Fee 50.00 34 34.02 G.2. Delinquent Tax Roll Fee 40.00 34 34.02 H.1.(d) Delinquency Tag $15.00 34 34.02 H.3. Meter "Turn-On" Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $3,379.23 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $5,781.67 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $15.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by winter average units $2.67 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $14.91 53 53.10 A.4. Residential Sewer Without Consumption History 5/8", 3/4" & larger $43.51 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by winter average units $2.67 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$14.91 1"$37.27 1.5"$74.55 2"$119.27 3"$223.64 4"$372.73 6"$745.45 8" $1,192.73 10"$1,714.54 Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates with Consumption History (2) Per dwelling unit $19.08 Section #Code #Fee Description Meter Size Charges 53 53.11 Commercial and Institutional Sewer Rates Rate multiplied by Low Strength $2.67 annual avg.Medium Strength $3.31 units High Strength $4.56 53 53.11 Commercial and Institutional Monthly Fixed Sewer System Charges (2).75"$14.91 1"$37.27 1.5"$74.55 2"$119.27 3"$223.64 4"$372.73 6"$745.45 8" $1,192.73 10"$1,714.54 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5B Copies of Identifiable Public Records $0.20/page Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 18 Per acre I.D. 18 8 1/2" x 11" Per $1000 of assessed value for I.D. 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 22 The cost for all other copy sizes is the direct cost of duplication. Will not exceed per each day the violation is identified or continues. Page 1 of 2 RESOLUTION NO.4362 WHEREAS, it is the policy of the District to establish procedures to review policies, procedures, ordinances, and resolutions periodically to ensure they are current and relevant; and WHEREAS, District staff has identified Board policy 5B, Records Policy and Procedures -- Accessibility, as requiring revisions as per the attached strike-through copy (Exhibit 1a); and WHEREAS, the Otay Water District Board of Directors has been presented with the proposed amendments to Policy 5B, Records Policy and Procedures - Accessibility, and Appendix A of the District’s Code of Ordinances; and WHEREAS, the amendments have been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended Policy No. 5B, Records Policy and Procedures - Accessibility, and Appendix A; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the amended Policy 5B and Appendix A, incorporated herein as Exhibit 2a and Attachment C, respectively, is hereby adopted. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 1st day of May 2019, by the following vote: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY NO. 5, RECORDS POLICY AND PROCEDURES ACCESSIBILITY, AND APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES Attachment F Page 2 of 2 Ayes: Noes: Abstain: Absent: _______________________ President ATTEST: ____________________________ District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 1 of 5 Purpose To set forth the procedures that will facilitate the process for responding to requests under the California Public Records Act (‘‘CPRA’’). Policy The CPRA permits local agencies to adopt regulations stating the procedures to be followed when making their records available to the public. The Otay Water District’s Board of Directors desires to set forth the procedures by which such records will be made available to the public. The Board is mindful of the constitutional right of privacy accorded to individuals and it is the intent of the Board to promulgate a policy that strikes an appropriate balance between the objectives of open government and the individual’s right of privacy. Procedures Records Available for Inspection and Copying Except for records exempt from disclosure by express provisions of law, records available for inspection and copying include any writing containing information relating to the conduct of the public’s business that is prepared, owned, used, or retained by the District, regardless of the physical form and characteristics. The records do not have to be written but may be in another format that contains information such as computer tape or disc or video or audio recording. ‘‘Writing’’ includes any handwriting, typewriting, printing, photographing, and every other means of recording upon any form of communication or representation such as letters, words, pictures, sounds, or symbols, as well as all papers, maps, magnetic or paper tapes, photographic films and prints, and electronic mail. Making a Request for Records There is no specific form that must be used to request records. Requests may be made orally or in writing and may be delivered in person, through the mail, via e-mail or via facsimile. The request must contain a reasonable description of the desired records. When an oral request is received, the District may request that the public records request be confirmed in writing. The District may also follow-up verbally or in writing to clarify or eliminate any confusion concerning a request. Requests must be submitted to the District Secretary. Exhibit 1a OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 2 of 5 Locating and Identifying Records Public records are open to inspection at all times during regular District business hours. The District Secretary shall be responsible for responding to records requests and coordinating with the various departments within the District to compile documents and information responsive to such requests. If a request for records seeks the production of records or documents that are not in existence at the time the request is made, the District is not obligated to create a document in order to respond to the request. Form of Records Provided Records will be made available in their original form or by a true and correct copy. Audio, photographic and computer data, or any other such records, shall be exact replicas unless the District determines it is impracticable to provide exact replicas. Any reasonably segregable portion of a record shall be provided to the public after deletion of portions that are deemed exempt from disclosure. Common Exemptions Certain categories of documents are generally not subject to disclosure. These include, but are not limited to: (1) preliminary drafts of certain documents that are not retained by the District in the ordinary course of business; (2) records related to pending litigation; (3)attorney-client communications; (4) personnel records, medical information, or other similar records the disclosure of which would constitute an unwarranted invasion of personal privacy; (5) corporate financial and proprietary information, including trade secrets; and (6) records protected by State or Federal law. Time for Response Upon receipt of a request for records, the District shall make the records promptly available to the requestor. When a copy of a record is requested, the District shall determine within ten (10) calendar days whether to comply with the request, and shall promptly inform the requestor of the District’s decision and reasons therefor. In unusual circumstances, as defined in the CPRA, the initial ten (10) calendar day period to make a determination may be extended for up to an additional fourteen (14) calendar days. If so, the District will inform the requestor of the extension, in writing, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 3 of 5 within the initial ten (10) day period, setting forth the reasons for the extension, along with the estimated date of the District’s further response. If a written request for information is denied in whole or in part, the denial shall be in writing and shall contain the reasons for denial of access to the subject records. Fees and Charges The District charges for the direct costs of duplicating records (in paper, CDs, audio cassettes, tape or other appropriate medium) and for the direct cost of postage and other delivery methods as set forth on Appendix A to the District’s Code of Ordinance. Requestors of electronic records shall pay for production costs, including the cost to construct the record and the cost of programming and computer services necessary to produce the copy if response to the request requires the immediate production of a record that is otherwise only produced at regularly scheduled intervals, or if data compilation, extraction, or programming is required to produce the requested record. However, the District will not charge for access to electronic data that is accessible in its existing form (including PDF copies of agenda items that are provided in the form previously made available on the District’s website) and that does not require staff to locate, identify or extract data or to incur other costs to the District. Responding to Requests for Particular Documents The following procedures shall apply when responding to requests for these particular categories of documents: Disclosure of Litigation Materials 1. When litigation in which the District is a party is finally adjudicated or otherwise settled, records of communications between the District and the adverse party in the litigation shall be subject to disclosure including the text and terms of any settlement agreement between the parties. 2. Such disclosure shall not apply to records that are otherwise privileged under federal or state law, such as attorney-client communications, or to records sealed by the court or where disclosure is otherwise limited by the court. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 4 of 5 Disclosure of Information Relating to Contracts, Bids and Proposals 1. Records of contractors’ bids shall be available for inspection immediately following the opening of bids. 2. Responses to Requests for Proposals, Qualifications or Quotations and similar submittals shall be regarded as public records and are available for inspection after District staff’s recommendation has been made public, unless there are elements in the proposal which are defined by the proposer as business or trade secrets and plainly marked as ‘‘Confidential,’’ Trade Secret,’’ or ‘‘Proprietary.’’ Although trade secret information may be exempt from disclosure, the District typically is not in a position to establish whether the information that a proposer has submitted is a trade secret. If a request is made for information marked ‘‘Confidential,’’ ‘‘Trade Secret,’’ or ‘‘Proprietary’’, the District will provide the proposer who submitted the information with reasonable notice to allow the proposer to seek protection from disclosure by a court or government agency of competent jurisdiction. 3. When an individual, firm or organization is awarded a contract, information including financial information which was submitted to the District during the bid or proposal process from all proposers will be subject to disclosure unless otherwise exempt. Budgetary Information Budgetary information including bills or records of payments, which are submitted to the District’s Board or other body having budgetary authority, shall be subject to disclosure unless the record is confidential or privileged under State or Federal law. Personal Information Requests for records and documents containing personal information such as social security numbers, home addresses, home telephone numbers, financial matters, and medical or employment history, should be reviewed on a case by case with the District’s General Counsel. The District may respond to requests for personal information in one or more of the following ways: 1. delete or redact those portions of the records that include personal information and make the remaining portion of the record available for inspection if the remaining portion of the record is not otherwise exempt from disclosure; OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 5 of 5 2. notify the party whose personal information is being sought and provide the party with the opportunity to initiate legal proceedings or other appropriate process to prevent the release of such information; 3. seek a judicial determination as to whether or not the requested personal information should be disclosed; or 4. disclose the information where permitted, allowed or compelled to do so. Complaints and Complaint Information Information regarding complaints shall be made available. However, specific information about complainants shall be redacted from any record furnished if necessary in order to protect the privacy rights and safety of individuals making complaints and to protect an individual’s right to petition government for redress of grievances. Electronic Mail E-mail shall be treated the same as other written documents. If the e-mail is kept in the ordinary course of business, it is a public record unless it falls within some exception to disclosure under the CPRA. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 1 of 5 Purpose To set forth the procedures that will facilitate the process for responding to requests under the California Public Records Act (‘‘CPRA’’). Policy The CPRA permits local agencies to adopt regulations stating the procedures to be followed when making their records available to the public. The Otay Water District’s Board of Directors desires to set forth the procedures by which such records will be made available to the public. The Board is mindful of the constitutional right of privacy accorded to individuals and it is the intent of the Board to promulgate a policy that strikes an appropriate balance between the objectives of open government and the individual’s right of privacy. Procedures Records Available for Inspection and Copying Except for records exempt from disclosure by express provisions of law, records available for inspection and copying include any writing containing information relating to the conduct of the public’s business that is prepared, owned, used, or retained by the District, regardless of the physical form and characteristics. The records do not have to be written but may be in another format that contains information such as computer tape or disc or video or audio recording. ‘‘Writing’’ includes any handwriting, typewriting, printing, photographing, and every other means of recording upon any form of communication or representation such as letters, words, pictures, sounds, or symbols, as well as all papers, maps, magnetic or paper tapes, photographic films and prints, and electronic mail. Making a Request for Records There is no specific form that must be used to request records. Requests may be made orally or in writing and may be delivered in person, through the mail, via e-mail or via facsimile. The request must contain a reasonable description of the desired records. When an oral request is received, the District may request that the public records request be confirmed in writing. The District may also follow-up verbally or in writing to clarify or eliminate any confusion concerning a request. Requests must be submitted to the District Secretary. Attachment G OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 2 of 5 Locating and Identifying Records Public records are open to inspection at all times during regular District business hours. The District Secretary shall be responsible for responding to records requests and coordinating with the various departments within the District to compile documents and information responsive to such requests. If a request for records seeks the production of records or documents that are not in existence at the time the request is made, the District is not obligated to create a document in order to respond to the request. Form of Records Provided Records will be made available in their original form or by a true and correct copy. Audio, photographic and computer data, or any other such records, shall be exact replicas unless the District determines it is impracticable to provide exact replicas. Any reasonably segregable portion of a record shall be provided to the public after deletion of portions that are deemed exempt from disclosure. Common Exemptions Certain categories of documents are generally not subject to disclosure. These include, but are not limited to: (1) preliminary drafts of certain documents that are not retained by the District in the ordinary course of business; (2) records related to pending litigation; (3)attorney-client communications; (4) personnel records, medical information, or other similar records the disclosure of which would constitute an unwarranted invasion of personal privacy; (5) corporate financial and proprietary information, including trade secrets; and (6) records protected by State or Federal law. Time for Response Upon receipt of a request for records, the District shall make the records promptly available to the requestor. When a copy of a record is requested, the District shall determine within ten (10) calendar days whether to comply with the request, and shall promptly inform the requestor of the District’s decision and reasons therefor. In unusual circumstances, as defined in the CPRA, the initial ten (10) calendar day period to make a determination may be extended for up to an additional fourteen (14) calendar days. If so, the District will inform the requestor of the extension, in writing, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 3 of 5 within the initial ten (10) day period, setting forth the reasons for the extension, along with the estimated date of the District’s further response. If a written request for information is denied in whole or in part, the denial shall be in writing and shall contain the reasons for denial of access to the subject records. Fees and Charges The District charges for the direct costs of duplicating records) and for the direct cost of postage and other delivery methods as set forth on Appendix A to the District’s Code of Ordinance. Requestors of electronic records shall pay for production costs, including the cost to construct the record and the cost of programming and computer services necessary to produce the copy if response to the request requires the immediate production of a record that is otherwise only produced at regularly scheduled intervals, or if data compilation, extraction, or programming is required to produce the requested record. However, the District will not charge for access to electronic data that is accessible in its existing form (including PDF copies of agenda items that are provided in the form previously made available on the District’s website) and that does not require staff to locate, identify or extract data or to incur other costs to the District. Responding to Requests for Particular Documents The following procedures shall apply when responding to requests for these particular categories of documents: Disclosure of Litigation Materials 1. When litigation in which the District is a party is finally adjudicated or otherwise settled, records of communications between the District and the adverse party in the litigation shall be subject to disclosure including the text and terms of any settlement agreement between the parties. 2. Such disclosure shall not apply to records that are otherwise privileged under federal or state law, such as attorney-client communications, or to records sealed by the court or where disclosure is otherwise limited by the court. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 4 of 5 Disclosure of Information Relating to Contracts, Bids and Proposals 1. Records of contractors’ bids shall be available for inspection immediately following the opening of bids. 2. Responses to Requests for Proposals, Qualifications or Quotations and similar submittals shall be regarded as public records and are available for inspection after District staff’s recommendation has been made public, unless there are elements in the proposal which are defined by the proposer as business or trade secrets and plainly marked as ‘‘Confidential,’’ Trade Secret,’’ or ‘‘Proprietary.’’ Although trade secret information may be exempt from disclosure, the District typically is not in a position to establish whether the information that a proposer has submitted is a trade secret. If a request is made for information marked ‘‘Confidential,’’ ‘‘Trade Secret,’’ or ‘‘Proprietary’’, the District will provide the proposer who submitted the information with reasonable notice to allow the proposer to seek protection from disclosure by a court or government agency of competent jurisdiction. 3. When an individual, firm or organization is awarded a contract, information including financial information which was submitted to the District during the bid or proposal process from all proposers will be subject to disclosure unless otherwise exempt. Budgetary Information Budgetary information including bills or records of payments, which are submitted to the District’s Board or other body having budgetary authority, shall be subject to disclosure unless the record is confidential or privileged under State or Federal law. Personal Information Requests for records and documents containing personal information such as social security numbers, home addresses, home telephone numbers, financial matters, and medical or employment history, should be reviewed on a case by case with the District’s General Counsel. The District may respond to requests for personal information in one or more of the following ways: 1. delete or redact those portions of the records that include personal information and make the remaining portion of the record available for inspection if the remaining portion of the record is not otherwise exempt from disclosure; OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised RECORDS POLICY AND PROCEDURES - ACCESSIBILITY 05-B 2/3/10 5/1/19 Page 5 of 5 2. notify the party whose personal information is being sought and provide the party with the opportunity to initiate legal proceedings or other appropriate process to prevent the release of such information; 3. seek a judicial determination as to whether or not the requested personal information should be disclosed; or 4. disclose the information where permitted, allowed or compelled to do so. Complaints and Complaint Information Information regarding complaints shall be made available. However, specific information about complainants shall be redacted from any record furnished if necessary in order to protect the privacy rights and safety of individuals making complaints and to protect an individual’s right to petition government for redress of grievances. Electronic Mail E-mail shall be treated the same as other written documents. If the e-mail is kept in the ordinary course of business, it is a public record unless it falls within some exception to disclosure under the CPRA.