HomeMy WebLinkAbout09-19-18 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
WEDNESDAY
September 19, 2018
12:00 P.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-
RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. FISCAL YEAR 2018 DIRECTORS’ EXPENSES (FAKHOURI) [5 minutes]
4. ADOPT ORDINANCE NO. 569 AMENDING THE APPENDIX OF SECTION 6,
CONFLICT OF INTEREST CODE (COIC), CONTAINED WITHIN THE DISTRICT’S
CODE OF ORDINANCES TO UPDATE THE POSITION TITLES REQUIRED TO FILE
A FORM 700; UPDATE WITHIN SECTION 6.05, STATEMENTS OF ECONOMIC
INTERESTS: TIME OF FILING, THAT PERSONS WHO REPORT FOR MILITARY
SERVICE SHALL FILE WITHIN 30 DAYS OF RETURNING TO OFFICE; TO CODIFY
WITHIN SECTION 6.04, STATEMENTS OF ECONOMIC INTERESTS: PLACE OF
FILING, THE PRACTICE OF ELECTRONICALLY FILING FORM 700’S; AND TO
UPDATE GOVERNMENT CODE SECTION NUMBERS AND REFLECT CURRENT
STATUTE LANGUAGE THROUGHOUT THE COIC (WATTON) [5 minutes]
2
5. ADOPT RESOLUTION NO. 4352 OF THE OTAY WATER DISTRICT AMENDING
RESOLUTION NO. 4350 TO AUTHORIZE THE REFINANCING OF THE DISTRICT’S
VARIABLE RATE DEMAND CERTIFICATES OF PARTICIPATION (1996 CAPITAL
PROJECTS) THROUGH THE ISSUANCE BY THE OTAY WATER DISTRICT
FINANCING AUTHORITY OF ITS WATER REVENUE BONDS, SERIES 2018A IN AN
AGGREGATE PRINCIPAL AMOUNT NOT-TO-EXCEED $36,000,000, APPROVING
THE EXECUTION OF CERTAIN DOCUMENTS AND AUTHORIZING CERTAIN ACTS
IN CONNECTION THEREWITH (KOEPPEN) [5 minutes]
6. ADOPT RESOLUTION NO. 2018-03 RESOLUTION OF THE OTAY WATER
DISTRICT FINANCING AUTHORITY AMENDING RESOLUTION NO. 2018-2 TO
AUTHORIZE THE REFINANCING OF THE DISTRICT’S VARIABLE RATE DEMAND
CERTIFICATES OF PARTICIPATION (1996 CAPITAL PROJECTS) AND
INCREASING THE ISSUANCE AMOUNT OF THE AUTHORITY’S WATER REVENUE
BONDS, SERIES 2018A TO AN AGGREGATE PRINCIPAL AMOUNT NOT-TO-
EXCEED $36,000,000, APPROVING THE EXECUTION OF CERTAIN DOCUMENTS
AND AUTHORIZING CERTAIN ACTS IN CONNECTION THEREWITH (KOEPPEN) [5
minutes]
7. YEAR-END REPORT ON THE DISTRICT’S FISCAL YEARS 2015-2018 STRATEGIC
PERFORMANCE PLAN FOR FISCAL YEAR 2018 (SEGURA) [5 minutes]
8. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Mark Robak, Chair
Mitch Thompson
3
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 September 14, 2018 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 September 14, 2018.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: October 3, 2018
SUBMITTED BY:
Eid Fakhouri
Finance Manager
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Fiscal Year 2018 Board of Directors’ Expenses
GENERAL MANAGER’S RECOMMENDATION:
This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To present the Board of the Directors’ expenses for Fiscal Year 2018.
ANALYSIS:
The California Government Code Section 53065.5 requires special
districts, at least annually, to disclose any reimbursement paid by a
district within the immediately preceding fiscal year. This Staff
Report and attached documentation fulfills this requirement. (See
Attachment B for the Summary and C-H for Details.)
FISCAL IMPACT:
None.
2
STRATEGIC GOAL:
Prudently manage District funds.
LEGAL IMPACT:
Compliance with state law.
Attachments: Attachment A Committee Action
Attachment B Directors’ Expenses and Per Diems
Attachment C-H Directors’ Expenses Detail
ATTACHMENT A
SUBJECT/PROJECT:
Fiscal Year 2018 Board of Directors’ Expenses
COMMITTEE ACTION:
This is an informational item only.
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.
BOARD OF DIRECTORS’
EXPENSES AND PER DIEMS
Board of Directors Meeting
October 3, 2018
ATTACHMENT B
California Government Code Section 53065.5 and Otay
Water District’s Code of Ordinances Policy 8 require that
staff present the Expenses and Per Diems for the Board of
Directors on an annual basis:
•Fiscal Year 2018.
•The expenses are shown by Board member and expense
type.
•This presentation is in alphabetical order.
•This information is being presented to the Finance and
Administration Committee on September 19, 2018 and
to the Board of Directors meeting on October 3, 2018.
OTAY WATER DISTRICT
BOARD EXPENSES
July 1, 2017 - June 30, 2018
Croucher Gastelum Robak Smith Thompson Total
Business Meetings $ - $ 623.16 $ 178.16 $ 195.82 $ 345.82 $ 1,342.96
Director's Fees 2,100.00 10,900.00 7,400.00 6,900.00 6,900.00 34,200.00
Mileage Business - 2,079.09 610.88 412.34 603.28 3,705.59
Mileage Commuting 3.27 214.56 47.40 568.89 477.62 1,311.74
Conferences and Seminars - 2,778.00 715.00 1,403.66 379.00 5,275.66
Travel - 4,447.56 1,430.78 1,614.50 801.30 8,294.14
Community Events - 628.33 685.00 - 478.33 1,791.66
Total $ 2,103.27 $ 21,670.70 $ 11,067.22 $ 11,095.21 $ 9,985.35 $ 55,921.75
ATTACHMENT C
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Total
1 2 3 4 5 6 7 8 9 10 11 12
5214 Business Meetings -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
5281 Director's Fees - 100.00 300.00 200.00 - - 200.00 200.00 200.00 500.00 200.00 200.00 2,100.00
5211 Mileage - Business - - - - - - - - - - - - -
5211 Mileage - Commuting - - - - - - - - 3.27 - - - 3.27
5213 Seminars and Conferences - - - - - - - - - - - - -
5212 Travel - - - - - - - - - - - - -
5222 Community Events - - - - - - - - - - - - -
Total -$ 100.00$ 300.00$ 200.00$ -$ -$ 200.00$ 200.00$ 203.27$ 500.00$ 200.00$ 200.00$ 2,103.27$
5214 Business Meetings 25.00$ 55.00$ 90.00$ 25.00$ 30.00$ -$ 40.00$ 53.16$ 80.00$ 45.00$ 45.00$ 135.00$ 623.16$
5281 Director's Fees 1,000.00 500.00 1,000.00 900.00 900.00 900.00 1,000.00 1,000.00 900.00 800.00 1,000.00 1,000.00 10,900.00
5211 Mileage - Business 126.26 231.12 148.73 274.46 127.33 179.23 111.18 230.05 143.88 101.92 207.65 197.29 2,079.09
5211 Mileage - Commuting 19.26 9.63 19.26 19.62 19.26 - 9.81 19.62 29.43 29.43 19.62 19.62 214.56
5213 Seminars and Conferences 50.00 50.00 805.00 - 699.00 - - 475.00 - 699.00 - - 2,778.00 5212 Travel 579.24 354.95 853.16 - - 1,111.20 - 613.23 65.96 - 708.60 161.22 4,447.56
5222 Community Events - - 200.00 178.33 250.00 - - - - - - - 628.33 Total 1,799.76$ 1,200.70$ 3,116.15$ 1,397.41$ 2,025.59$ 2,190.43$ 1,160.99$ 2,391.06$ 1,219.27$ 1,675.35$ 1,980.87$ 1,513.13$ 21,670.70$
5214 Business Meetings -$ -$ -$ -$ 65.00$ -$ 58.16$ 25.00$ -$ -$ 30.00$ -$ 178.16$
5281 Director's Fees 300.00 1,000.00 1,000.00 800.00 800.00 400.00 600.00 500.00 900.00 500.00 300.00 300.00 7,400.00
5211 Mileage - Business 3.75 63.13 114.49 52.97 116.63 32.10 47.96 37.06 76.85 31.07 13.08 21.80 610.88
5211 Mileage - Commuting 2.14 12.84 8.56 4.28 2.14 - 2.18 2.18 2.18 4.36 4.36 2.18 47.40
5213 Seminars and Conferences - - 25.00 - - - - 690.00 - - - - 715.00
5212 Travel - - - - - - - 618.00 812.78 - - - 1,430.78
5222 Community Events - - 300.00 135.00 250.00 - - - - - - - 685.00 Total 305.89$ 1,075.97$ 1,448.05$ 992.25$ 1,233.77$ 432.10$ 708.30$ 1,872.24$ 1,791.81$ 535.43$ 347.44$ 323.98$ 11,067.22$
HECTOR GASTELUM (DETAILED IN
ATTACHMENT E)
MARK ROBAK (DETAILED IN
ATTACHMENT F)
OTAY WATER DISTRICT
ADMINISTRATIVE EXPENSES - BOARD
JULY 1, 2017 - JUNE 30, 2018
GARY D. CROUCHER (DETAILED IN
ATTACHMENT D)
ATTACHMENT C
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Total
OTAY WATER DISTRICT
ADMINISTRATIVE EXPENSES - BOARD
JULY 1, 2017 - JUNE 30, 2018
5214 Business Meetings -$ -$ -$ -$ -$ -$ -$ -$ 172.07$ -$ 23.75$ -$ 195.82$
5281 Director's Fees 200.00 300.00 500.00 300.00 200.00 500.00 600.00 700.00 1,000.00 700.00 900.00 1,000.00 6,900.00
5211 Mileage - Business - 16.05 - - - - 45.30 57.23 87.20 26.16 92.11 88.29 412.34
5211 Mileage - Commuting 25.68 25.68 64.20 38.52 25.68 52.32 104.64 32.70 52.32 55.59 39.24 52.32 568.89
5213 Seminars and Conferences - - - - - - - 458.66 945.00 - - - 1,403.66
5212 Travel - - - - - - - 250.60 1,116.72 - - 247.18 1,614.50
5222 Community Events - - - - - - - - - - - - - Total 225.68$ 341.73$ 564.20$ 338.52$ 225.68$ 552.32$ 749.94$ 1,499.19$ 3,373.31$ 781.75$ 1,055.10$ 1,387.79$ 11,095.21$
5214 Business Meetings -$ 61.00$ 30.00$ -$ -$ 23.16$ 70.00$ 53.16$ 18.50$ -$ -$ 90.00$ 345.82$
5281 Director's Fees 200.00 1,000.00 600.00 - 800.00 300.00 800.00 600.00 700.00 1,000.00 600.00 300.00 6,900.00
5211 Mileage - Business 19.26 254.66 43.34 17.66 34.78 11.77 64.31 46.87 28.89 46.87 25.07 9.81 603.28 5211 Mileage - Commuting 13.91 55.64 55.64 55.64 27.82 13.91 - 99.19 56.68 28.34 42.51 28.34 477.62
5213 Seminars and Conferences - - - - - - - - - - - 379.00 379.00
5212 Travel - - - - - - - - - 801.30 - - 801.30
5222 Community Events - - 50.00 178.33 250.00 - - - - - - - 478.33 Total 233.17$ 1,371.30$ 778.98$ 251.63$ 1,112.60$ 348.84$ 934.31$ 799.22$ 804.07$ 1,876.51$ 667.58$ 807.15$ 9,985.35$
TOTALS:
5214 Business Meetings 25.00$ 116.00$ 120.00$ 25.00$ 95.00$ 23.16$ 168.16$ 131.32$ 270.57$ 45.00$ 98.75$ 225.00$ 1,342.96$
5281 Director's Fees 1,700.00 2,900.00 3,400.00 2,200.00 2,700.00 2,100.00 3,200.00 3,000.00 3,700.00 3,500.00 3,000.00 2,800.00 34,200.00
5211 Mileage - Business 149.27 564.96 306.56 345.08 278.74 223.10 268.75 371.21 336.82 206.02 337.91 317.19 3,705.59
5211 Mileage - Commuting 60.99 103.79 147.66 118.06 74.90 66.23 116.63 153.69 143.88 117.72 105.73 102.46 1,311.74
5213 Seminars and Conferences 50.00 50.00 830.00 - 699.00 - - 1,623.66 945.00 699.00 - 379.00 5,275.66
5212 Travel 579.24 354.95 853.16 - - 1,111.20 - 1,481.83 1,995.46 801.30 708.60 408.40 8,294.14
5222 Community Events - - 550.00 491.66 750.00 - - - - - - - 1,791.66
Total 2,564.50$ 4,089.70$ 6,207.38$ 3,179.80$ 4,597.64$ 3,523.69$ 3,753.54$ 6,761.71$ 7,391.73$ 5,369.04$ 4,250.99$ 4,232.05$ 55,921.75$
TIM SMITH (DETAILED IN
ATTACHMENT G)
MITCHELL THOMPSON (DETAILED IN
ATTACHMENT H)
STAFF REPORT
TYPE MEETING:
Regular Board Meeting
MEETING DATE:
October 3, 2018
SUBMITTED BY: Mark Watton,
General Manager
W.O./G.F. NO:
APPROVED BY:
Susan Cruz, District
Secretary
Mark Watton, General
Manager
DIV. NO.
SUBJECT: Adoption of Ordinance No. 569 Amending Section 6, Conflict of
Interest Code, of the District’s Code of Ordinances
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Ordinance No. 569 amending the Appendix of
Section 6, Conflict of Interest Code (COIC), contained within the
District’s Code of Ordinances to update the position titles required
to file a Form 700; to denote within Section 6.05, Statements of
Economic Interests: Time of Filing, that persons designated to file a
Form 700 who report for military service shall file within 30 days
following his/her return to office; to codify within Section 6.04,
Statements of Economic Interests: Place of Filing, the current
practice of electronically filing Form 700’s; and to update
Government Code section numbers and reflect current Statute language
throughout the COIC.
PURPOSE:
To amend the Appendix of Section 6, COIC, contained within the
District’s Code of Ordinances to update the position titles required
to file a Form 700; to denote within Section 6.05, Statements of
Economic Interests: Time of Filing, that persons designated to file a
Form 700 who report for military service shall file within 30 days
following his/her return to office; to codify within Section 6.04,
Statements of Economic Interests: Place of Filing, the current
practice of electronically filing Form 700’s; and to update
Government Code section numbers and reflect current Statute language
throughout the COIC.
COMMITTEE ACTION:
See Attachment A.
ANALYSIS:
As required by the Political Reform Act (“Act”), staff has conducted
a biennial review of the District’s COIC. The District’s Attorney
reviewed the COIC and has suggested that the District include the
following paragraph in Section 6.05, Statements of Economic
Interests: Time of Filing, of the COIC to designate that a person who
reports for military service shall file a Form 700 within 30 days
following his/her return to office:
“(E) Military Service. If a person reports for military
service as defined in the Servicemember’s Civil Relief Act, the
deadline for the annual statement of economic interests is 30
days following his or her return to office, provided the person,
or someone authorized to represent the person's interests,
notifies the filing officer in writing prior to the applicable
filing deadline that he or she is subject to that federal
statute and is unable to meet the applicable deadline, and
provides the filing officer verification of his or her military
status.”
In addition, as the County of San Diego encourages the electronic
filing of Form 700’s, a number of the District’s designated filers
have been filing electronically. The District’s Attorney has added
the following language in Section 6.04, Statements of Economic
Interests: Place of Filing, to formally codify the practice of
electronic filing:
“The General Manager, or his or her designee, may file
Statements of Economic Interests electronically in accordance
with the provisions of Government Code Section 87500.2.”
The District has also made organizational changes that affect the
titles listed in its COIC. The following titles no longer exist and
are being deleted from the Appendix of the COIC:
Asst. General Manager
Finance Manager, Controller and Budget
Finance Manager, Treasury and Accounting
The following titles are being added:
Asst. Chief of Engineering
Asst. Chief of Finance
Finance Manager
Further, Government Code section numbers have been updated and
current Statute language has been reflected throughout the COIC.
Ordinance No. 569 is submitted for the Board’s ratification to amend
the COIC as noted above. A strike-thru copy of the COIC is attached
to the ordinance for reference.
FISCAL IMPACT:
None.
LEGAL IMPACT:
None.
Attachments:
Attachment A – Committee Notes
Attachment B - Ordinance No. 569
Strike-Thru Copy of the District’s COIC
ATTACHMENT A
SUBJECT/PROJECT:
Adoption of Ordinance No. 569 Amending Section 6, Conflict
of Interest Code, of the District’s Code of Ordinances
COMMITTEE ACTION:
This section will be updated with notes from the Finance and
Administration Committee’s discussion at a meeting to be held on
Wednesday, September 19, 2018.
Page 1 of 1
ORDINANCE NO. 569
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT
AMENDING SECTION 6,
CONFLICT OF INTEREST CODE,
OF THE DISTRICT’S CODE OF ORDINANCE
BE IT ORDAINED by the Board of Directors of Otay Water
District that the District’s Code of Ordinances, Section 6,
Conflict of Interest Code (COIC), be amended to update the
position titles required to file a Form 700; to denote within
Section 6.05, Statements of Economic Interests: Time of Filing,
that persons designated to file a Form 700 who report for
military service shall file within 30 days following his/her
return to office; to codify within Section 6.04, Statements of
Economic Interests: Place of Filing, the current practice of
electronically filing Form 700’s; and to update Government Code
section numbers and reflect current Statute language throughout
the COIC. The amendments are presented in Exhibit A attached to
this ordinance.
NOW, THEREFORE, BE IT RESOLVED that the amendments to
Section 6, Conflict of Interest Code, to the District’s Code of
Ordinances 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 3rd
day of October 2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
President
ATTEST:
_____________________________
District Secretary
Attachment B
6-1
DIVISION I DISTRICT ADMINISTRATION
CHAPTER 5 PERSONNEL PRACTICES
SECTION 6 CONFLICT OF INTEREST CODE
6.01 DEFINITIONS
The definitions contained in the Political Reform Act of 1974
(Government Code Sections 81000 et seq.), regulations of the Fair
Political Practices Commission (2 Cal. Code of Regs. Sections 18100,
et seq.), and any amendments to the Act or regulations, are
incorporated by reference into this Conflict of Iinterest Ccode.
6.02 DESIGNATED EMPLOYEES
The persons holding positions listed in the Appendix are
designated employees. It has been determined that these persons make
or participate in the making of decisions which may foreseeably have a
material effect on financial interests.
The General Manager or his/her designee shall have the authority
to designate any person holding a position within the District as a
person designated to provide disclosures regardless of whether or not
the position that the person holds is included in the Appendix if, in
the view of the General Manager or his/her designee, the person has
the potential to make or participate in the making of decisions which
may foreseeably have a material effect on financial interests.
6.03 DISCLOSURE CATEGORIES
This Code does not establish any disclosure obligation for those
designated employees who are also specified in Government Code Section
87200 if they are designated in this code in that same capacity, or if
the geographical jurisdiction of this agency is the same as or is
wholly included within the jurisdiction in which those persons must
report their financial interest pursuant to Article 2 of Chapter 72 of
the Political Reform Act, Government Code Sections 87200, et seq.1 In
addition, this code does not establish any disclosure obligation for
any designated public officials who are designated in a conflict of
interest code for another agency, if all of the following apply:
1 Designated employees who are required to file statements of economic interest under
any other agency’s Conflict of Interest Code or under Article 2 for a different
jurisdiction, may expand their statement of economic interests to cover reportable
interest in both jurisdictions, and file copies of this expanded statement with both
entities in lieu of filing separate and district statements, provided that each copy
of such expanded statement filed in place of an original is signed and verified by
the designated employee as if it were an original. See Government Code Section
81004.
6-2
(A) The geographical jurisdiction of this agency is the same as
or is wholly included within the jurisdiction of the other agency;
(B) The disclosure assigned in the code of the other agency is
the same as that required under Aarticle 2 of Cchapter 7 of the
Political Reform Act, Government Code Section 87200; and
(C) The filing officer is the same for both agencies.
Such persons are covered by this Code for disqualification
purposes only. With respect to all other designated employees, the
disclosure categories set forth in the Appendix specify which kinds of
financial interests are reportable. Such a designated employee shall
disclose in his or her Sstatement of Eeconomic Iinterest those
financial interests he or she has which are of the kind described in
the disclosure categories to which he or she is assigned in the
Appendix. It has been determined that the financial interests set
forth in a designated employee’s disclosure categories are the kinds
of financial interests which he or she foreseeably can affect
materially through the conduct of his or her office.
6.04 STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING
All officials and employees required to submit a Sstatement of
Eeconomic Iinterest (employees in Designated Positions) shall file
their statements with the General Manager, or his or her designee.
The District shall make and retain a copy of all statements filed by
Designated Positions and forward the originals of such statements to
the Executive Office of the Board of Supervisors of San Diego County.
All retained statements, originals or copies shall be available for
public inspection and reproduction. (Cal. Gov’t Code § 81008).2
The[JB1] General Manager, or his or her designee may file
Statements of Economic Interests electronically in accordance with the
provisions of Government Code Section 87500.2.
6.05 STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING
(A) Initial Statements. All designated employees employed by
the agency on the effective date of this code, as originally adopted,
promulgated and approved by the code reviewing body, shall file
statements within 30 days after the effective date of this code.
Thereafter, each person already in a position when it is designated by
an amendment to this code shall file an initial statement within 30
days after the effective date of the amendment.
2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the
duties of filing officers and persons in agencies who make and retain copies of
statements and forward the originals to the filing officer.
6-3
(B) Assuming Office Statements. All persons assuming designated
positions after the effective date of this code shall file statements
within 30 days after assuming the designated positions, or if subject
to State Senate confirmation, 30 days after being nominated or
appointed.
(C) Annual Statements. All designated employees shall file
statements no later than April 1.
(D) Leaving Office Statements. All persons who leave designated
positions shall file statements within 30 days after leaving office.
(E) Military Service. If a person reports for military service
as defined in the Servicemember's Civil Relief Act, the deadline for
the annual statement of economic interests is 30 days following his or
her return to office, provided the person, or someone authorized to
represent the person's interests, notifies the filing officer in
writing prior to the applicable filing deadline that he or she is
subject to that federal statute and is unable to meet the applicable
deadline, and provides the filing officer verification of his or her
military status.
6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE
Any person who resigns within 12 months of initial appointment,
or within 30 days of the date of notice provided by the filing officer
to file an assuming office statement, is not deemed to have assumed
office or left office, provided he or she did not make or participate
in the making of, or use his or her position to influence any decision
and did not receive or become entitled to receive any form of payment
as a result of his or her appointment. Such persons shall not file
either an assuming or a leaving office statement.
(A) Any person who resigns a position within 30 days of the date
of a notice from the filing officer shall do both of the following:
1. File a written resignation with the appointing power; and
2. File a written statement with the filing officer declaring
under penalty of perjury that during the period between
appointment and resignation he or she did not make,
participate in the making, or use the position to influence
any decision of the agency or receive, or become entitled to
receive, any form of payment by virtue of being appointed to
the position.
6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC
INTERESTS
6-4
(A) Contents of Initial Statements
Initial statements shall disclose any reportable investments,
interests in real property and business positions held on the
effective date of the code and income received during the 12 months
prior to the effective date of the code.
(B) Contents of Assuming Office Statements
Assuming office statements shall disclose any reportable
investments, interests in real property and business positions held on
the date of assuming office or on the date of appointment, and income
received during the 12 months prior to the date of assuming office or
the date of being appointed, respectively.
(C) Contents of Annual Statements
Annual statements shall disclose any reportable investments,
interests in real property, income and business positions held or
received during the previous calendar year provided, however, that the
period covered by an employee’s first annual statement shall begin on
the effective date of the code or the date of assuming office,
whichever is later.
(D) Contents of Leaving Office Statements
Leaving office statements shall disclose reportable investments,
interest in real property, income and business positions held or
received during the period between the closing date of the last
statement filed and the date of leaving office.
6.08 MANNER OF REPORTING
Statements of economic interest shall be made on forms prescribed
by the Fair Political Practices Commission and supplied by the agency,
and shall contain the following information:
(A) Investments and Real Property Disclosure
When an investment or an interest in real property3 is required to
be reported4, the statement shall contain the following:
3 For the purpose of disclosure only (not disqualification), an interest in real
property does not include the principal residence of the filer.
4 Investments and interests in real property which have a fair market value of less
than $2,000 are not investments and interests in real property within the meaning of
the Political Reform Act. However, investments or interests in real property of an
individual include those held by the individual’s spouse and dependent children as
well as a pro rata share of any investment or interest in real property of any
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1. A statement of the nature of the investment or interest;
2. The name of the business entity in which each investment is
held, and a general description of the business activity in
which the business entity is engaged;
3. The address or other precise location of the real property;
4. A statement whether the fair market value of the investment
or interest in real property equals or exceeds two thousand
dollars ($2,000), exceeds ten thousand dollars ($10,000),
exceeds one hundred thousand dollars ($100,000), or exceeds
one million dollars ($1,000,000).
(B) Personal Income Disclosure
When personal income is required to be reported5, the statement
shall contain:
1. The name and address of each source of income aggregating
$500 or more in value or $50 or more in value if the income
was a gift, and a general description of the business
activity, if any, of each source;
2. A statement whether the aggregate value of income from each
source, or in the case of a loan, the highest amount owed to
each source, was one thousand dollars ($1,000) or less,
greater than one thousand dollars ($1,000), greater than ten
thousand dollars ($10,000), or greater than one hundred
thousand dollars ($100,000);
3. A description of the consideration, if any, for which the
income was received;
4. In the case of a gift, the name, address and business
activity of the donor and any intermediary through which the
gift was made; a description of the gift; the amount or
value of the gift; and the date on which the gift was
received;
5. File In the case of a loan, the annual interest rate and the
security, if any, given for the loan and the term of the
loan.
business entity or trust in which the individual, spouse and dependent children own,
in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater.
5 A designated employee’s income includes his or her community property interest in
the income of his or her spouse but does not include salary or reimbursement for
expenses received from a state, local or federal government agency.
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(C) Business Entity Income Disclosure
When income of a business entity, including income of a sole
proprietorship, is required to be reported6, the statement shall
contain:
1. The name, address and a general description of the business
activity of the business entity;
2. The name of every person from whom the business entity
received payments if the filer’s pro rata share of gross
receipts from such person was equal to or greater than
$10,000.
(D) Business Position Disclosure
When business positions are required to be reported, a designated
employee shall list the name and address of each business entity in
which he or she is a director, officer, partner, trustee, employee or
in which he or she holds any position of management, a description of
the business activity in which the business entity is engaged, and the
designated employee’s position with the business entity.
(E) Acquisition or Disposal During Reporting Period
In the case of an annual or leaving office statement, if an
investment or an interest in real property was partially or wholly
acquired or disposed of during the period covered by the statement,
the statement shall contain the date of acquisition or disposal.
6.09 PROHIBITION ON RECEIPT OF HONORARIA
A. No designated public official shall accept any honorarium from
any source, if the member or employee would be required to report the
receipt of income or gifts from that source on his or her statement of
economic interests.
Subdivisions (a), (b), and (c) of Government Code Section 89501 shall
apply to the prohibitions in this section.
This section shall not limit or prohibit payments, advances, or reim-
bursements for travel and related lodging and subsistence authorized
by Government Code section 89506.
6 Income of a business entity is reportable if the direct, indirect or beneficial
interest of the filer and the filer’s spouse in the business entity aggregates a 10
percent or greater interest. In addition, the disclosure of persons who are clients
or customers of a business entity is required only if the clients or customers are
within one of the disclosure categories of the filer.
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6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT
ESTABLISHED BY LAW7
A. No designated public official shall accept gifts with a total
value of more than the maximum amount established by law, in any
calendar year, from any single source, if the member or employee would
be required to report the receipt of income or gifts from that source
on his or her statement of economic interests.
Subdivisions (e), (f), and (g) of Government Code section 89503 shall
apply to the prohibitions in this section.
6.11 LOANS TO PUBLIC OFFICIALS
A. No elected officer of a state or local government agency shall,
from the date of his or her election to office through the date that
he or she vacates office, receive a personal loan from any officer,
employee, member, or consultant of the state or local government
agency in which the elected officer holds office or over which the
elected officer’s agency has direction and control.
B. No public official who is exempt from the state civil service
system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section
4 of Article VII of the Constitution shall, while he or she holds
office, receive a personal loan from any officer, employee, member, or
consultant of the state or local government agency in which the public
official holds office or over which the public official’s agency has
direction and control. This subdivision shall not apply to loans made
to a public official whose duties are solely secretarial, clerical, or
manual.
C. No elected officer of a state or local government agency shall,
from the date of his or her election to office through the date that
he or she vacates office, receive a personal loan from any person who
has a contract with the state or local government agency to which that
elected officer has been elected or over which that elected officer’s
agency has direction and control. This subdivision shall not apply to
loans made by banks or other financial institutions or to any
indebtedness created as part of a retail installment or credit card
transaction, if the loan is made or the indebtedness created in the
7 Designated Persons are prohibited from accepting gifts from any single source in a
calendar year with a total value in excess of designated amounts. See Govt. Code §
89503, sub-divisions (e), (f) and (g). [Note: Pursuant to 2 CCR § 18940.2 (bGovt.
Code § 89503(f)), the FPPC adjusts the gift limit every odd-numbered year to reflect
changes in the Consumer Price Index; therefore, the $390 470 limit adopted by the
FPPC in January of 2007 2017 will be updated in January 2009 2019 and every odd year
thereafter, until further notice. See also 2 CCR § 18940.2]
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lender’s regular course of business on terms available to members of
the public without regard to the elected officer’s official status.
D. No public official who is exempt from the state civil service
system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section
4 of Article VII of the Constitution shall, while he or she holds
office, receive a personal loan from any person who has a contract
with the state or local government agency to which that elected
officer has been elected or over which that elected officer’s agency
has direction and control. This subdivision shall not apply to loans
made by banks or other financial institutions or to any indebtedness
created as part of a retail installment or credit card transaction, if
the loan is made or the indebtedness created in the lender’s regular
course of business on terms available to members of the public without
regard to the elected officer’s official status. This subdivision
shall not apply to loans made to a public official whose duties are
solely secretarial, clerical, or manual.
E. This section shall not apply to the following:
1. Loans made to the campaign committee of an elected officer
or candidate for elective office.
2. Loans made by a public official’s spouse, child, parent,
grandparent, grandchild, brother, sister, parent-in-law, brother-in-
law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or
the spouse of any such persons, provided that the person making the
loan is not acting as an agent or intermediary for any person not
otherwise exempted under this section.
3. Loans from a person which, in the aggregate, do not exceed
five hundred dollars ($500) at any given time.
4. Loans made, or offered in writing, before January 1, 1998.
6.12 LOAN TERMS
A. Except as set forth in subdivision (B), no elected officer of a
state or local government agency shall, from the date of his or her
election to office through the date he or she vacates office, receive
a personal loan of five hundred dollars ($500) or more, except when
the loan is in writing and clearly states the terms of the loan,
including the parties to the loan agreement, date of the loan, amount
of the loan, term of the loan, date or dates when payments shall be
due on the loan and the amount of the payments, and the rate of
interest paid on the loan.
B. This section shall not apply to the following types of loans:
1. Loans made to the campaign committee of the elected officer.
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2. Loans made to the elected officer by his or her spouse,
child, parent, grandparent, grandchild, brother, sister, parent-in-
law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or
first cousin, or the spouse of any such person, provided that the
person making the loan is not acting as an agent or intermediary for
any person not otherwise exempted under this section.
3. Loans made, or offered in writing, before January 1, 1998.
C4. Nothing in this section shall exempt any person from any
other provision of Title 9 of the Government Code.
6.13 PERSONAL LOANS
A. Except as set forth in subdivision (B), a personal loan received
by any designated public official shall become a gift to the
designated public official for the purposes of this section in the
following circumstances:
1. If the loan has a defined date or dates for repayment, when
the statute of limitations for filing an action for default has
expired.
2. If the loan has no defined date or dates for repayment, when
one year has elapsed from the later of the following:
a. The date the loan was made.
b. The date the last payment of one hundred dollars ($100)
or more was made on the loan.
c. The date upon which the debtor has made payments on the
loan aggregating to less than two hundred fifty dollars ($250) during
the previous 12 months.
B. This section shall not apply to the following types of loans:
1. A loan made to the campaign committee of an elected officer
or a candidate for elective office.
2. A loan that would otherwise not be a gift as defined in this
title.
3. A loan that would otherwise be a gift as set forth under
subdivision (A), but on which the creditor has taken reasonable action
to collect the balance due.
4. A loan that would otherwise be a gift as set forth under
subdivision (A), but on which the creditor, based on reasonable
business considerations, has not undertaken collection action. Except
in a criminal action, a creditor who claims that a loan is not a gift
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on the basis of this paragraph has the burden of proving that the
decision for not taking collection action was based on reasonable
business considerations.
5. A loan made to a debtor who has filed for bankruptcy and the
loan is ultimately discharged in bankruptcy.
C. Nothing in this section shall exempt any person from any other
provisions of Title 9 of the Government Code.
6.14 DISQUALIFICATION
No designated employee shall make, participate in making, or in
any way attempt to use his or her official position to influence the
making of any governmental decision which he or she knows or has
reason to know will have a reasonably foreseeable material financial
effect, distinguishable from its effect on the public generally, on
the official or a member of his or her immediate family or on:
(A) Any business entity in which the designated employee has a
direct or indirect investment worth $2,000 or more;
(B) Any real property in which the designated employee has a
direct or indirect interest worth $2,000 or more;
(C) Any source of income, other than gifts and other than loans
by a commercial lending institution in the regular course of
business on terms available to the public without regard to
official status, aggregating $500 or more in value provided
to, received by or promised to the designated employee
within 12 months prior to the time when the decision is
made;
(D) Any business entity in which the designated employee is a
director, officer, partner, trustee, employee, or holds any
position of management; or
(E) Any donor of, or any intermediary or agent for a donor of, a
gift or gifts aggregating to the maximum amount established
by law, or more, in value provided to, received by, or
promised to the designated employee within 12 months prior
to the time when the decision is made.
6.15 LEGALLY REQUIRED PARTICIPATION
No designated public official shall be prevented from making or
participating in the making of any decision to the extent his or her
participation is legally required for the decision to be made. The
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fact that the vote of a designated public official who is on a voting
body is needed to break a tie does not make his or her participation
legally required for purposes of this section.
6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES
In addition to the general disqualification provisions of Section
6.14, no state administrative official shall make, participate in
making, or use his or her official position to influence any
governmental decision directly relating to any contract where the
state administrative official knows or has reason to know that any
party to the contract is a person with whom the state administrative
official, or any member of his or her immediate family has, within 12
months prior to the time when the official action is to be taken:
(A) Engaged in a business transaction or transactions on terms
not available to members of the public, regarding any
investment or interest in real property; or
(B) Engaged in a business transaction or transactions on terms
not available to members of the public regarding the
rendering of goods or services totaling in value $1000 or
more.
6.17 DISCLOSURE OF DISQUALIFYING INTEREST
When a designated public official determines that he or she
should not make a governmental decision because he or she has a
disqualifying interest in it, the determination not to act may be
accompanied by disclosure of the disqualifying interest.
6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL
Any designated employee who is unsure of his or her duties under
this code may request assistance from the Fair Political Practices
Commission pursuant to Government Code Section 83114 and 2 CCR
Sections 18329 and 18329.5 or from the attorney for his or her agency,
provided that nothing in this section requires the attorney for the
agency to issue any formal or informal opinion.
6.19 VIOLATIONS
This code has the force and effect of law. Designated employees
violating any provision of this code are subject to the
administrative, criminal and civil sanctions provided in the Political
Reform Act, Government Code Sections 81000 – 91015. In addition, a
decision in relation to which a violation of the disqualification
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provisions of this code or of Government Code Section 87100 or 87450
has occurred may be set aside as void pursuant to Government Code
Section 91003.
6.20 PROHIBITED TRANSACTIONS
Members of the Board of Directors and Designated Employees shall
comply with the Prohibited Transactions policy, annexed hereto as
Exhibit A, pursuant to California Government Code Sections 1090, et
seq.
6.21 INCOMPATIBLE ACTIVITIES
Members of the Board of Directors, District officers, and all
other District employees shall comply with the Incompatible Activities
policy, annexed hereto as Exhibit B, pursuant to California Government
Code Sections 1126, et seq.
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APPENDIX
OTAY WATER DISTRICT
CONFLICT OF INTEREST CODE
DESIGNATED POSITIONS
The Treasurer and all District Officials who manage the investment of
public funds are included in and governed by this Conflict of Interest
Code only with respect to its disqualification provisions. For
purposes of disclosure, the Treasurer and all District Officials who
manage the investment of public funds are governed by the statutory
conflict of interest provisions of Article 2 of Chapter 7 of the
Political Reform Act of 1974. (Government Code Sections 87200, et
seq.)
DESIGNATED EMPLOYEES’
TITLE OR FUNCTION__ DISCLOSURE CATEGORIES ASSIGNED
Members of the Board of Directors 1, 2, 3, 4, 5, 6
General Manager 1, 2, 3, 4, 5, 6
District Secretary 6
Assistant Chief of Engineering 1, 2, 3, 4, 6, 7
Assistant Chief of Finance 1, 2, 5, 6, 7
Assistant Chief of Water Operations 1, 2, 3, 4, 6, 7
Assistant General Manager 1, 2, 3, 4, 5, 6, 7
Chief of Administrative Services 1, 2, 3, 4, 5, 6, 7
Chief Financial Officer 1, 2, 5, 6, 7
Chief of Engineering 1, 2, 3, 4, 6, 7
Chief of Water Operations 1, 2, 3, 4, 6, 7
Associate Civil Engineer 1, 2, 3, 4, 7
Communications Officer 6
Customer Service Manager 2, 5, 7
Environmental Compliance
Specialist 1, 2, 3, 4, 7
Engineering Manager 1, 2, 3, 4, 7
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Field Services Manager 1, 2, 3, 4, 7
Finance Manager, Controller and Budget
2, 5, 7
Finance Manager, Treasury and Accounting 2, 5, 7
GIS Manager 3, 6, 7
Human Resources Manager 3, 6
IT Manager 3, 6, 7
Network Engineer 3, 6, 7
Purchasing and Facilities Manager 2, 6
Safety and Security Specialist 1, 2, 3, 4, 6
Senior Procurement and Contracting Analyst 6
Senior Civil Engineer 1, 2, 3, 4, 7
System Operations Manager 1, 2, 3, 4, 7
Utility Services Manager 1, 2, 3, 4, 7
Consultant8 1, 2, 3, 4, 5, 6
8 Consultants are required to file disclosure statements where they: (a) conduct research and arrive at
conclusions with respect to rendition of information, advice, recommendation or counsel independent of
control and direction of the agency or any agency official other than normal contract monitoring; and (b)
possess no authority with respect to any agency decision beyond the rendition of information, advice,
recommendation or counsel. The determination as to whether a consultant shall be required to file a
disclosure statement shall be made by the General Manager or his or her designee.
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APPENDIX, CONTINUED
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of
investments, business entities, sources of income, or real property
which the designated employee must disclose for each disclosure
category to which he or she is assigned.
Category 1: All investments and business positions in, and sources
of income from, all business entities that do business or own real
property in the District, plan to do business or own real property in
the District within the next year or have done business or owned real
property in the District within the past two years.
Category 2: All interests in real property which are located in
whole or in part within, or not more than two (2) miles outside the
boundaries of the District.
Category 3: All investments and business positions in, and sources
of income from, business entities subject to the regulatory, permit or
licensing authority of the Designated Employee’s Department, will be
subject to such authority within the next year or have been subject to
such authority within the past two years.
Category 4: All investments, business positions, and sources of
income from, business entities that are engaged in land development,
construction or the acquisition or sale of real property in the
District, plan to engage in such activities in the District within the
next year or have engaged in such activities in the District within
the past two years.
Category 5: All investments and business positions in, and sources
of income from, business entities that are banking, savings and loan
or other financial institutions.
Category 6: All investments and business positions in, and sources
of income from, business entities that provide services, supplies,
materials, machinery or equipment of a type purchased, leased, used,
or administered by the District.
Category 7: All investments and business positions in, and sources
of income from, business entities that provide services, supplies,
materials, machinery or equipment of a type purchased, leased, used,
or administered by the Designated Employee’s Department.
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EXHIBIT A
Prohibited Transactions for Specified Personnel
Members of the Board of Directors (“Members”) shall comply with this
Prohibited Transactions policy pursuant to California Government Code
§§ 1090, et seq.
Members shall not be financially interested in any contract made by
them in their official capacity, or by any body or board of which they
are members. Members shall not be purchasers at any sale or vendors
at any purchase made by them in their official capacity. Members
shall not be deemed to be interested in a contract entered into by a
body or board of which they are members if the Member has only a
remote interest in the contract and if the fact of that interest is
disclosed to the body or board of which the Member is a member and
noted in its official records, and thereafter the body or board
authorizes, approves, or ratifies the contract in good faith by a vote
of its membership sufficient for the purpose without counting the vote
or votes of the Board of Directors member with the remote interest.
“Remote interest” shall be defined as in California Government Code
§ 1091(b).
Members shall not be considered to be financially interested in a
contract if their interest is including, but not limited to, any of
the following (Government Code § 1091.5):
1. That of an officer in being reimbursed for his/her actual
and necessary expenses incurred in the performance of an official
duty;
2. That of a recipient of public services generally provided by
the public body or board of which he/she is a member, on the same
terms and conditions as if he or she were not a member of the
board;
3. That of a landlord or tenant of the contracting party if
such contracting party is the federal government or any federal
department or agency, this state or an adjoining state, any
department or agency of this state or an adjoining state, any
county or city of this state or an adjoining state, or an public
corporation or special, judicial or other public district of this
state or an adjoining state unless the subject matter of such
contract is the property in which such officer or employee has
such interest as landlord or tenant in which even his/her
interest shall be deemed a remote interest within the meaning of,
and subject to, the provisions of Government Code 1091;
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4. That of a spouse of an officer or employee of a public
agency if his/her spouse’s employment or office-holding has
existed for at least one year prior to his/her election or
appointment;
5. That of a non-salaried member of a nonprofit corporation,
provided that such interest is disclosed to the board at the time
of the first consideration of the contract, and provided further
that such interest is noted in its official records;
6. That of a non-compensated officer of a nonprofit, tax-exempt
corporation, which, as one of its primary purposes, supports the
functions of the board or to which the board has legal obligation
to give particular consideration, and provided further that such
interest is noted in its official records;
For purposes of this paragraph, an officer is
“noncompensated” even though he or she receives reimbursement
from the nonprofit, tax-exempt corporation for necessary travel
and other actual expenses incurred in performing the duties of
his or her office.
6.7. That of compensation for employment with a governmental
agency, other than the governmental agency that employs the
officer or employee, provided that the interest is disclosed to
the board at the time of consideration of the contract, and
provided further that the interest is noted in its official
records;
7.8. That of an attorney of the contracting party of that of an
owner, officer, employee or agent of a firm which renders, or has
rendered, service to the contracting party in the capacity of
stockbroker, insurance agent, insurance broker, real estate
agent, or real estate broker if these individuals have not
received and will not receive remuneration, consideration, or a
commission as a result of the contract and if these individuals
have an ownership interest of less than 10 percent in the law
practice or firm, stock brokerage firm, insurance firm or real
estate firm.
In addition, Members shall not be deemed to be interested in a
contract made pursuant to competitive bidding under a procedure
established by law if their sole interest is that of an officer,
director, or employee of a bank or savings and loan association with
which a party to the contract has the relationship of borrower or
depositor, debtor or creditor (Government Code § 1091.5).
Authority:
California Government Code §§ 1090, et seq.
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EXHIBIT B
Incompatible Activities Policy
District officers, members of the Board of Directors, and all other
District employees (collectively, “district personnel”) shall comply
with this Incompatible Activities policy pursuant to California
Government Code §§ 11256, et seq.
District personnel shall not engage in any employment, activity, or
enterprise for compensation which is inconsistent, incompatible, in
conflict with, or inimical to his or her duties as a member of the
Board of Directors, or with the duties, functions, or responsibilities
of his or her appointing power or the agency by which he or she is
employed.
The outside employment, activity, or enterprise of district personnel
is prohibited if it: (1) involves the use for private gain or
advantage of his or her local District time, facilities, equipment and
supplies; or the badge, uniform, prestige, or influence of his or her
local District office or employment or, (2) involves receipt or
acceptance by district personnel of any money or other consideration
from anyone other than the District for the performance of an act
which district personnel, if not performing such act, would be
required or expected to render in the regular course or hours of their
local District employment or as a part of their duties as a local
District officer or employee or, (3) involves the time demands as
would render performance of his or her duties as a local district
personnel member less efficient.
Nothing in this policy shall be interpreted to prohibit any outside
employment, activity, counsel, or enterprise on behalf of another
governmental entity, subject to common law and professional conflict
of interest rules.
Copies of this regulation shall be posted in prominent places at the
District Office. District personnel who violate this regulation may
be subject to discipline as set forth in the applicable Code of
Ordinances and Policies. Board of Directors members who violate this
section may be subject to censure. Disciplinary appeals by district
personnel shall be handled pursuant to applicable Code of Ordinances
and Policies.
Authority:
California Government Code §§ 1125, et seq.
STAFF REPORT
TYPE MEETING: Regular Board Meeting of the
Otay Water District
MEETING DATE: October 3, 2018
SUBMITTED BY: Kevin Koeppen, Assistant
Chief of Finance
W.O./G.F. NO: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4352 of the Otay Water District Amending
Resolution No. 4350 to Authorize the Refinancing of the
District’s Variable Rate Demand Certificates of Participation
(1996 Capital Projects)through the Issuance by the Otay Water
District Financing Authority of its Water Revenue Bonds,
Series 2018A in an Aggregate Principal Amount Not to Exceed
$36,000,000, Approving the Execution of Certain Documents and
Authorizing Certain Acts in Connection Therewith
GENERAL MANAGER’S RECOMMENDATION:
That the Board of Directors of the Otay Water District (“Board”)
adopt Resolution No. 4352 amending Resolution No. 4350 to authorize
the refinancing of the District’s Variable Rate Demand Certificates
of Participation (1996 Capital Projects)through the issuance by the
Otay Water District Financing Authority of its Water Revenue Bonds,
Series 2018A in an aggregate principal amount not to exceed
$36,000,000, and authorize the General Manager and Chief Financial
Officer to approve the amendments to and execution of certain
documents and authorizing certain acts in connection therewith.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To obtain the Board’s authorization to increase the issuance amount
of Otay Water District Financing Authority (“Authority”) Water
Revenue Bonds by $7,000,000, to include the refinancing of the
District’s $6,900,000 outstanding Variable Rate Demand Certificates
of Participation (“1996 Variable Rate COPS”) in addition to the
funding the District’s three-year CIP Program as previously directed,
and authorize the General Manager, Chief Financial Officer,
Secretary, and Treasurer to amend, execute and deliver related
documents and take other related actions necessary for the issuance
of the 2018 Water Revenue Bonds.
ANALYSIS:
On September 5, 2018, the Board approved the issuance of up to
$29,000,000 of the Authority’s Water Revenue Bonds, Series 2018A to
fund $28,000,000 of the District CIP over the next three years. Staff
is recommending the bond authorization be increased to an amount not to
exceed $36,000,000 and that the additional proceeds be used to refinance
the $6,900,000 outstanding 1996 Variable Rate COPS. Staff anticipates
the required funding amount will be approximately $35,330,000,
including cost of issuance, and the District will not issue any more
debt than is required for the two purposes.
By refinancing the District’s 1996 Variable Rate COPS to a fixed rate,
the District is estimated to save approximately $500,000 through the
original maturity date in 2026. The analysis was prepared by the
District’s Financial Advisor and maintains the same maturity timing as
defined in the original issuance, which fully matured in 2026.
This change in the bond structure and purpose is due to updated
information recently received from Union Bank and analyzed by the
District’s Financial Advisor. A variable rate debt issuance requires
additional services that are not required under a fixed rate issuance
including a letter of credit and a remarketing agent. As of today the
District’s bank, Union Bank, serves as both the letter of credit
provider and the remarketing agent (Agent). Recently Union Bank
communicated to the District that they would no longer be providing
remarketing services and that the District would need to find a
replacement agent. The replacement of the Agent which was anticipated
to be a low cost event. During the Agent replacement process the
potential Agents requested the District produce a Reoffering Statement,
which is the equivalent of preparing an Official Statement as well as
providing a number of legal opinions. Therefore, replacing the Agent
would cost approximately $30,000.
In discussing the additional requirements with the District’s Financial
Advisor and Bond Counsel, it was suggested that the District re-evaluate
refinancing the 1996 Variable Rate COPS to a fixed rate issuance. In
prior reviews, staff had determined that there was still a benefit to
holding the COPS and in the event short-term variable interest rates
were to exceed long-term interest rates the District was in a position
to pay off the 1996 Variable Rate COPS. As a result of paying down the
pension UAL, the District’s liquidity is now at a level that it may be
unable to pay down the 1996 Variable Rate COPS in the event interest
rates were to rise and it would likely not be cost effective to issue
a relatively small debt issuance.
Interest rates on the 1996 Variable Rate COPS have increased
approximately 0.8% over the last 22 months and are expected to continue
to increase as a result of additional Federal Reserve Board action.
The current variable interest rate is 1.57%, an increase of over 50
basis points just in the past month. The overall effective financing
cost of the Variable Rate COPS is even higher since we added the letter
of credit fee of (0.95%). This increased cost has made it cost effective
to refinance this variable rate bond expense.
Assuming the periodic variable rate increases up to 2.75% for the term
of the 1996 Variable Rate COPS and adding variable rate costs, and
comparing to the incremental debt service of adding the refinancing to
the current financing, shows that the District can save more than
$500,000 over the remaining term. The comparison is shown on Attachment
B.
As a result of these circumstances and the economies of scale relating
to costs of issuance, staff re-evaluated their position on the benefits
of refinancing the debt and determined that it would be cost beneficial.
In the event liquidity would return at a greater rate or to above
budgeted levels, the District would use those funds to defease other
outstanding bond debts or reduce other financial obligations, including
the 2010A bonds, PERS obligation, or OPEB obligation.
Conclusion
That the Board of Directors of the Otay Water District adopt
Resolution No. 4352 amending Resolution No. 4350 to authorize the
refinancing of the District’s Variable Rate Demand Certificates of
Participation (1996 Capital Projects) through the issuance by the
Otay Water District Financing Authority of its Water Revenue Bonds,
Series 2018A in an aggregate principal amount not to exceed
$36,000,000, and authorize the General Manager and Chief Financial
Officer to approve the amendments to and execution of certain
documents and authorizing certain acts in connection therewith.
District staff is drafting the amended documents which will, in all
material respects be the same as those presented and approved by the
Board on September 5, 2018, except for changes to reflect the new amount
of the issuance and the refinancing information.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Including the refinancing of the 1996 Variable Rate COPs will save the
District over $500,000 over the next eight years.
STRATEGIC GOAL:
The District ensures its continued financial health through long-term
financial planning and debt planning.
LEGAL IMPACT:
None.
General Manager
Attachments:
A) Committee Action
The following attachments will be provided with the Staff Report to
the Board on October 3, 2018.
B) Resolution No. 4352
C) Preliminary Official Statement
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4352 of the Otay Water District
Amending Resolution No. 4350 to Authorize the Refinancing
of the District’s Variable Rate Demand Certificates of
Participation (1996 Capital Projects)through the Issuance
by the Otay Water District Financing Authority of its Water
Revenue Bonds, Series 2018A in an Aggregate Principal
Amount Not to Exceed $36,000,000, Approving the Execution
of Certain Documents and Authorizing Certain Acts in
Connection Therewith
COMMITTEE ACTION:
That the Finance and Administration Committee recommend the
Board of Directors of the Otay Water District (“Board”) adopt
Resolution No. 4352 amending Resolution No. 4350 to authorize
the refinancing of the District’s Variable Rate Demand
Certificates of Participation (1996 Capital Projects)through the
issuance by the Otay Water District Financing Authority of its
Water Revenue Bonds, Series 2018A in an aggregate principal
amount not to exceed $36,000,000, and authorize the General
Manager and Chief Financial Officer to approve the amendments to
and execution of certain documents and authorizing certain acts
in connection therewith.
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.
STAFF REPORT
TYPE MEETING: Regular Board Meeting of the
Otay Water District Financing
Authority
MEETING DATE: October 3, 2018
SUBMITTED BY: Kevin Koeppen, Assistant
Chief of Finance
W.O./G.F. NO: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 2018-03 of the Otay Water District
Financing Authority Amending Resolution No. 2018-02 to
Authorize the Refinancing of the District’s Variable Rate
Demand Certificates of Participation (1996 Capital
Projects)and Increasing the Issuance Amount of the
Authority’s Water Revenue Bonds, Series 2018A to an Aggregate
Principal Amount Not to Exceed $36,000,000, Approving the
Execution of Certain Documents and Authorizing Certain Acts
in Connection Therewith
GENERAL MANAGER’S RECOMMENDATION:
That the Board of Directors of the Otay Water District Financing
Authority (“Authority Board”) adopt Resolution No. 2018-03 amending
Resolution No. 2018-02 to authorize the refinancing of the District’s
Variable Rate Demand Certificates of Participation (1996 Capital
Projects)and increasing the issuance amount of the Authority’s Water
Revenue Bonds, Series 2018A to an aggregate principal amount not to
exceed $36,000,000, and authorize the Authority President, Executive
Director, Secretary, and Treasurer to approve the amendments to and
execution of certain documents and authorizing certain acts in
connection therewith
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To obtain Authority Board authorization to increase the issuance
amount of Otay Water District Financing Authority (“Authority”) Water
Revenue Bonds by $7,000,000, to include the refinancing of the
District’s $6,900,000 outstanding Variable Rate Demand Certificates
of Participation (“1996 Variable Rate COPS”) in addition to the
funding the District’s three-year CIP Program as previously directed,
and authorize the Authority President, Executive Director, Secretary,
and Treasurer to amend, execute and deliver related documents and
take other related actions necessary for the issuance of the 2018
Water Revenue Bonds.
ANALYSIS:
On September 5, 2018, the Authority Board approved the issuance of up
to $29,000,000 of Water Revenue Bonds, Series 2018A to fund $28,000,000
of the District’s CIP over the next three years. Staff is recommending
the bond authorization be increased to an amount not to exceed
$36,000,000 and that the additional proceeds be used to refinance the
District’s $6,900,000 outstanding 1996 Variable Rate COPS. Staff
anticipates the required funding amount will be approximately
$35,330,000, including cost of issuance. The District will not issue
any more debt than is required for the two purposes.
By refinancing the District’s variable rate COPS to a fixed rate the
District is estimated to save over $500,000 through the original
maturity date in 2026. The analysis was prepared by the District’s
Financial Advisor and maintains the same maturity timing as defined in
the original issuance, which fully matured in 2026.
Conclusion
That the Board of Directors of the Otay Water District Financing
Authority adopt Resolution No. 2018-03 amending Resolution No.
2018-02 to authorize the refinancing of the District’s Variable Rate
Demand Certificates of Participation (1996 Capital Projects)and
increasing the issuance amount of the Authority’s Water Revenue
Bonds, Series 2018A to an aggregate principal amount not to exceed
$36,000,000, and authorize the Authority President, Executive
Director, Secretary, and Treasurer to approve the amendments to and
execution of certain documents and authorizing certain acts in
connection therewith.
District staff is drafting the amended documents which will, in all
material respects be the same as those presented and approved by the
Authority Board on September 5, 2018, except for changes to reflect the
new amount of the issuance and the refinancing information.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Increasing the authorized amount from up to $29,000,000 to up to
$36,000,000 will save the District over $500,000 over the next eight
years.
STRATEGIC GOAL:
The District ensures its continued financial health through long-term
financial planning and debt planning.
LEGAL IMPACT:
None.
General Manager
Attachments:
A) Committee Action
The following attachments will be provided with the Staff Report to
the Board on October 3, 2018.
B) Resolution No 2018-03
C) Preliminary Official Statement
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 2018-03 of the Otay Water District
Financing Authority Amending Resolution No. 2018-02 to
Authorize the Refinancing of the District’s Variable Rate
Demand Certificates of Participation (1996 Capital
Projects)and Increasing the Issuance Amount of the
Authority’s Water Revenue Bonds, Series 2018A to an
Aggregate Principal Amount Not to Exceed $36,000,000,
Approving the Execution of Certain Documents and
Authorizing Certain Acts in Connection Therewith
COMMITTEE ACTION:
That the Finance and Administration Committee recommend the
Board of Directors of the Otay Water District Financing
Authority (“Authority Board”) adopt Resolution No. 2018-03
amending Resolution No. 2018-02 to authorize the refinancing of
the District’s Variable Rate Demand Certificates of
Participation (1996 Capital Projects)and increasing the issuance
amount of the Authority’s Water Revenue Bonds, Series 2018A to
an aggregate principal amount not to exceed $36,000,000, and
authorize the Authority President, Executive Director,
Secretary, and Treasurer to approve the amendments to and
execution of certain documents and authorizing certain acts in
connection therewith
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.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: October 3, 2018
PROJECT: Various DIV. NO. ALL
SUBMITTED BY: Adolfo Segura, Chief of Administrative Services
APPROVED BY: Mark Watton, General Manager
SUBJECT: FY18 YEAR-END REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To provide a year-end report on the District’s FY15-18 Strategic
Performance Plan for FY18.
ANALYSIS:
Summary
The current Otay Water District Strategic Plan is a four-year plan
ranging from the start of FY15 through the end of FY18. This report
details the year-end results for the last year of our four-year plan.
Strategic Plan Objectives – Target 90%
Strategic Plan objectives are designed to ensure the District is
executing mission designed objectives and making the appropriate high-
level changes necessary to guide the agency’s efforts to meet new
challenges and positively adapt to change. FY18 year-end results are on
target at 95%, with 19 of 20 active items completed or on schedule. One
objective is on hold.
The following objective has been put on hold:
1. Streamline Input of Operations Data – The SCADA Roadmap has been
received, however, review and implementation of the plan will be
incorporated into the new 4-year, 2019-2022 Strategic Plan.
Performance Measures (Metrics) – Target 75%
Performance measures are designed to track the District’s day-to-day
performance, and are based on AWWA industry benchmarks, WAS operational
standards, and core financial targets. These items measure the
effectiveness and efficiency of daily operations and core services. The
overall goal is that at least 75% of these measures be rated “on target”.
FY18 year-end results are above target with 40 of 42 (95%) items achieving
the desired level or better. Seven measures are reported at year’s end:
Enterprise Technology Services Availability
Injury Incident Rate
Debt Coverage Ratio
Reserve Level
Accounts Per FTE
Water Rate Ranking
Sewer Rate Ranking
0
2
4
6
8
10
12
14
16
18
COMPLETED ON SCHEDULE BEHIND ON HOLD
19
0 0 1
Completed On Schedule Behind On Hold
19 of 20 Active Objectives are Completed or On Schedule (95%)
Items Not On Target
1. Project Closeout – Quarter four results were highly influenced by the
P2534/P2544 project (133 days). Liquidated damages were assessed on
this project for late delivery and the contractor was not responsive
to project closeout items.
2. Direct Cost of Treatment per MGD – The year-to-date result is
$1,165.82 vs. the year-to-date target of $1,050.00. The Reclamation
Plant experienced process upsets and more material was used to improve
effluent quality to meet regulatory compliance.
0
2
4
6
8
10
12
14
16
18
ON TARGET NOT ON TARGET
40
2
On Target Not on Target
40 of 42 Performance Measures are On Target (95%)
Next Steps
Kick-off of the new 4-year, 2019-2022 Strategic Plan, and track
deliverables and metrics with the new ESM+ cloud-based strategic
performance solution.
Committee Reports – Slideshow
The Strategic Plan results are presented to both the Finance and
Administration Committee and the Engineering, Operations, and Water
Resources Committee with a specific focus on the most relevant
information for each Committee (see “Attachment B”).
Strategic Plan is available on the Board VPN
All of the Strategic Plan results and associated details are provided
in a real-time, interactive web-based application available to the Board
via secured remote access, VPN. The District Secretary can facilitate
any password or access issues.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Informational item only; no fiscal impact.
STRATEGIC GOAL:
Strategic Plan and Performance Measure reporting is a critical element
in providing performance reporting to the Board and staff.
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report
Attachment B – PowerPoint Presentation
5
ATTACHMENT A
SUBJECT/PROJECT: FY18 YEAR-END REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC
PLAN
COMMITTEE ACTION:
The Engineering, Operations, & Water Resources Committee met on September
18, 2018, and the Finance & Administration Committee met on September
19, 2018, to review this item. Both Committees support presentation to
the full Board for their review.
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
STRATEGIC PLAN
FY18 YEAR-END REPORT
2
Introduction
3
OWD Strategic Plan FY15 –FY18:
The District’s Strategic Plan is developed with the Balanced Scorecard (BSC)strategic planning and
management methodology,which is used and widely adopted by businesses across the globe.The BSC
itself was developed by Kaplan and Norton and was originally published in 1992,in the Harvard
Business Review.The model has evolved over time and is now in its fourth-generation.In brief,the BSC
emphasizes alignment of business activities to the vision and strategy of the organization with goals and
measures in four basic areas:financial,customer,business processes,and learning and growth.
The District’s strategic plan is designed to track key organizational project objectives and essential day-
to-day performance measures.Closing out the 2015-2018 Strategic Plan,staff completed 32 of 33
projects and averaged performance measure execution of 89%or better throughout the four-year plan.
4
Deliver high quality services to meet and increase confidence
of the customer
1.Increase customer confidence in the District
2.Improve and expand communications
3.Provide effective water services
Manage the financial issues that are critical to the District
1.Improve financial information and systems
2.Maintain District financial strength
Maximize efficiency and effectiveness
1.Actively manage water supply as well as support for water and sewer
services
2.Identify and evaluate improvements to enterprise and departmental
business processes
Provide leadership and management expertise
1.Reinforce a results-oriented and accountable culture
2.Focus on achieving a lean flexible workforce
Balanced Scorecard Strategies and Goals
Customer
Financial
Business
Processes
Learning
& Growth
$$
5AWWA Benchmarks
1 Technical Quality Complaint
Potable Water Compliance Rate
Collection System Integrity
Sewer Overflow Rate
2
3
4
6Objectives
95% are Completed or On Schedule
0
2
4
6
8
10
12
14
16
18
20
Completed
On Schedule
Behind
On Hold
19
1
Completed
On Schedule
Behind
On Hold
Objective Report
20 Total
7
ON HOLD
Objectives
1.Streamline Input of Operations Data
8Performance Measures
95% On Target
Measure Report
42 Total
0
5
10
15
20
25
30
35
40
On Target
Not on Target
40
2
On Target
Not on Target
9Performance Measures
1.Project Closeout Time
2.Direct Cost of Treatment per MGD
NOT ON TARGET
10
Year-End Results
Administrative Services
11Enterprise Technology Services Availability
Target: No less than 99.5%availability per quarter in a year
Annual Average:3.60 hours of downtime per month/1.83 days of downtime in a year
99.5 99.5 99.5 99.5 99.5
98
98.5
99
99.5
100
100.5
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method
12Employee Turnover Rate
Target: Less than 5%turnover in a year
# of voluntary resignations (not including retirements)/average # of employees
0 0
0.75 0.75
1.50
0
1
2
3
4
5
6
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method
13Training Hours Per Employee
Target: 12 hours of general formal training per employee in a year
(excludes safety training)
Total qualified training hours for all employees/average # of FTEs
4.94 5.50
3.91
3.77
18.11
0
5
10
15
20
25
Q1 Q2 Q3 Q4 YTD/AVG
Target 2016 2017 2018
Measurement Method
14Safety Training Program
Target: 24 hours of safety training per field employee in a year
# of safety training hours for the quarter/ # of field employees
6.50
11.14
5.43
11.45
30.38
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 YTD/AVG
Target 2016 2017 2018
Measurement Method
15Injury Incident Rate
Target: Be at or below the National Average for Utilities-Water Sewage and other Systems
A rate of 6.80 or less work-related injuries and illnesses
4.4 4.4
0
1
2
3
4
5
6
7
8
Q4 AVG
Target 2017 2018
Annual Average:Number of injuries and illnesses (200,000) / Employee hours workedMeasurement Method
16
Engineering
17CIP Project Expenditures vs. Budget
Target: 95% of budget but not to exceed 100%in a year
Being below target gives the measure a “not on target” status
Actual quarterly expenditures/Annual budget
9.3
19.5
39.8 29.8
97.4
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method
18Construction Change Order Incidence (w/o allowances)
Target: No more than 5%per quarter in a year
0.1
0.5
1.6 1.3 1.3
0
1
2
3
4
5
6
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method Total cost of Change Orders (not including allowances)/
Total original construction contract amount (not including allowances)
19
Mark-Out Accuracy
Target: No less than 100%mark-out accuracy per quarter in a year
100 100 100 100 100
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
# of mark-outs performed without an at-fault hit, which is damage to
a District facility that results from a missing or erroneous mark-
out/Total # of mark-outs performed
Measurement Method
*FY15 –FY17 results are 100%
20Project Closeout Time
Target: No more than a 45 day average per quarter in a year
0
64.5
21
131
70.3
0
20
40
60
80
100
120
140
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
# of days between NOSC and NOC for all construction
projects within the quarter/# of construction projects within the
quarter
Measurement Method
21Annual Recycled Water Site Inspections
Target: 100%of recycled sites inspected in a year
(There are 153 recycled water use sites scheduled for FY18)
Cumulative % of recycled sites inspected per
quarter of those required by DEH
28.75
54.90
77.12
100 100
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method
22Recycled Water Shutdown Testing
Target: No less than 90%of recycled site shut down tests in a year
(There are 39 recycled water use sites due for shutdown in FY18)
Cumulative % of recycled site shutdown tests performed per year
compared to those scheduled
28
49
69
86 86
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method
23
Finance
24
# of all calls answered/ # of all calls received during
a quarter
Answer Rate
Target: No less than 97%average answer rate per quarter in a year
97.82
97.27
98.20
98.66
98.00
95
95.5
96
96.5
97
97.5
98
98.5
99
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method
25
Total operations O&M costs/ # of accounts
O&M Cost Per Account
Target: Less than $561.00 per account in a single year
(Target is based on Operating Budget)
Measurement Method
117
265
392
549 549
100
150
200
250
300
350
400
450
500
550
600
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
26
# of correct bills during the reporting period/ # of total bills
during the reporting period
Billing Accuracy
Target: No less than 99.8%billing accuracy per quarter in a year
99.97 99.99 99.99 99.98 99.98
98
98.5
99
99.5
100
100.5
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method
27Overtime Percentage
Target: Less than 100%of budgeted overtime per quarter in a year
(target is based on Operating Budget; FY18 Overtime Budget is $133,800)
Actual overtime costs (including comp time)/
Budgeted overtime costs
103
117
91 89
100
0
20
40
60
80
100
120
140
160
180
200
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
Measurement Method
28Sewer Rate Ranking
Target: Bottom 50 percentile for the 28 sewer service providers in San Diego
(Otay ranks 6 out of 28 sewer service providers)
6 6
0
5
10
15
20
25
Q4 YTD
Target 2016 2017 2018
Otay ranking for the average bill for sewer/ # of
sewer agenciesMeasurement Method
29Water Rate Ranking
Target: Bottom 50 percentile for the 22 member agencies in San Diego
(Otay ranks 3 out of 22 member agencies)
Otay ranking for the average water bill among
CWA member agencies
3 30
2
4
6
8
10
12
14
Q4 YTD
Target 2016 2017 2018
Measurement Method
30Debt Coverage Ratio
Target: Above 150%to have sufficient debt coverage
(This is measured at year end)
Qualified net operating revenues/debt service
requirements (measured at year end)
200 200
0
50
100
150
200
250
300
Q4 YTD
Target 2016 2017 2018
Measurement Method
31Reserve Level
Target: Equal or exceed 85%
(This is measured at year end)
# of reserve funds that meet or exceed fund
target levels/ Total # of reserve funds
100 100
0
20
40
60
80
100
120
140
Q4 YTD
Target 2016 2017 2018
Measurement Method
32Percent of Customers Paying Bills Electronically
Target: No less than 75%per quarter in a year
# of customers paying bills electronically/ Total
# of customersMeasurement Method
76.95 76.78 76.74 77.75 77.05
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
33Distribution System Loss
Target: Less than 5%of unaccounted water loss per quarter in a year
100 [volume purchased (from CWA) –(volume sold (to customers)
+ volume used District usage)] / volume purchased (from CWA))Measurement Method
4.1 4 3.5 3.3 3.3
0
1
2
3
4
5
6
7
8
9
10
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
34
Operations
35Technical Quality Complaint (AWWA)
Target: No more than 9 complaints
per 1000 customer accounts in a year
1000 (# of technical quality complaints per quarter)/#
of active customer accounts per reporting period
AW
W
A
B
e
n
c
h
m
a
r
k
Measurement Method
1.49 1.19 0.79 0.75
4.2
0
1
2
3
4
5
6
7
8
9
10
Q1 Q2 Q3 Q4 YTD
Target AWWA 2016 2017 2018
AW
W
A
B
e
n
c
h
m
a
r
k
36Planned Potable Water Maintenance Ratio in $
Target: 66% or greater of all labor dollars spent on preventative maintenance
per quarter in a year
Total planned maintenance cost/ Total
maintenance costMeasurement Method
72 72 74
72 72
50
55
60
65
70
75
80
85
90
95
100
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
37
Total planned maintenance costs/Total
maintenance costs
Planned Recycled Water Maintenance Ratio in $
Target: 70%or greater of all labor spent on preventative maintenance
per quarter in a year
Measurement Method
70
64
79 84
74
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
38Planned Wastewater Maintenance Ratio in $
Target: 77% or greater of all labor dollars spent on preventative maintenance
per quarter in a year
Total planned maintenance cost/Total
maintenance costMeasurement Method
67.72
96.38
84.65 83.33 82.47
50
55
60
65
70
75
80
85
90
95
100
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
39Direct Cost of Treatment Per MGD
Target: No more than $1050 per MG spent on wastewater treatment per quarter in a single year
(Targets each quarter will vary based on high and low demand times)
Total O&M costs directly attributable to
sewer treatment/ Total volume in MGMeasurement Method
1238.54
1573.51
1049.65 956.96
1165.82
0
200
400
600
800
1000
1200
1400
1600
1800
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
40O&M Cost Per MG Processed of Wastewater
Target: No more than $1925 per MG spent on O&M for wastewater treatment in a year
(Targets each quarter will vary based on high and low demand times)
Total O&M cost/ MGP
FYTD O&M Cost = (Power Cost) + (Staff Cost) +
(Equipment Cost) / FYTP MGP
Measurement Method
1978.39
1825.90
1171.80
1309.21
1534.73
0
500
1000
1500
2000
2500
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
41Leak Detection Program
Target: Perform leak detection on
20%of potable distribution system
%of potable distribution pipelines surveyed. The calculation is
miles of pipe surveyed divided by total miles of pipe times 100.
20 20
0
10
20
30
40
50
60
70
80
90
100
Q3 YTD
Target 2016 2017 2018
Measurement Method
*FY15 –FY16 results are 20%
42Percent of PMs Completed –Fleet Maintenance
Target: No less than 90%of scheduled PM’s completed
per quarter in a year
# of PM’s completed/ # of PM’s scheduled to
be completed Measurement Method
100 100 100 100 100
0
20
40
60
80
100
Q1 Q2 Q3 Q4 Annual
Target 2016 2017 2018
*FY16 &FY17 results are 100%
43Percent of PMs Completed –Reclamation Plant
Target: No less than 90%of scheduled PM’s completed
per quarter in a year
# of PM’s completed/ # of PM’s scheduled
to be completed in a reporting period Measurement Method
100
95
100
97 98
75
80
85
90
95
100
105
110
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
44Percent of PMs Completed –Pump/Electric Section
Target: No less than 90%of scheduled PM’s completed
per quarter in a year
# of PM’s completed/ # of PM’s scheduled to
be completed in a reporting periodMeasurement Method
100 100 100 100 100
75
80
85
90
95
100
105
110
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
*FY15 –FY17 results are 100%
45System Valve Exercising Program
Target: Exercise 770 valves per quarter or
3080 valves by the end of fiscal year
Actual number of valves exercised in
the reporting periodMeasurement Method
974
775 859 797
3405
0
1000
2000
3000
4000
5000
6000
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
46Potable Water Distribution System Integrity
Target: No more than 16 leaks and breaks
per 100 miles of distribution piping in a year
100 (annual total number of leaks + annual total
number of breaks) / total miles of distribution pipingMeasurement Method
3.26
1.82 2.01
2.39
9.50
0
2
4
6
8
10
12
14
16
18
20
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
47Potable Water Compliance Rate (AWWA)
Target: No less than 100%of all health related drinking
water standards each quarter in a year
100 (# of days the primary health regulations
are met)/ # of days in the reporting periodMeasurement Method
100 100 100 100 100
50
60
70
80
90
100
110
Q1 Q2 Q3 Q4 YTD
Target AWWA 2016 2017 2018
AW
W
A
B
e
n
c
h
m
a
r
k
*FY15 –FY17 results are 100%
48Collection System Integrity (AWWA)
Target: No more than 3.6 system failures
per 100 miles of collection system pipeline in a year
100 (total number of collection system failures during the
year) / total miles of collection system pipingMeasurement Method
0 0 0 0 0
0
1
2
3
4
5
6
7
8
Q1 Q2 Q3 Q4 YTD
Target AWWA 2016 2017 2018
*FY15 –FY16 had 0 system failures
AW
W
A
B
e
n
c
h
m
a
r
k
49Recycled Water System Integrity
Target: No more than 6.6 leaks or breaks per 100 miles
of recycled distribution system in a year
(100 x # of leaks or breaks)/ # of miles of
distribution systemMeasurement Method
0.89
0
0.89 0.89
2.67
0
1
2
3
4
5
6
7
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
50Sewer Overflow Rate (AWWA)
Target: 0 overflows per quarter in a year
100 (total number of sewer overflows during the reporting
period) / total miles of pipe in the sewage collection systemMeasurement Method
0 0 0 0 0
0
1
2
3
4
5
6
7
8
Q1 Q2 Q3 Q4 YTD
Target AWWA 2016 2017 2018
AW
W
A
B
e
n
c
h
m
a
r
k
*FY 15 –FY 16 results are 0 overflows
51Emergency Facility Power Testing
Target: 100%of the District’s facilities tested per year
(The District currently has 34 powered ready facilities)
Number of facilities tested / total facilities Measurement Method
29
47
76
106
106
0
20
40
60
80
100
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
52Tank Inspection and Cleaning
Annual Target: Clean and inspect 7 tanks or more per year
Number of tanks cleaned and inspectedMeasurement Method
1
4
2
0
8
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
53Main Flushing and Fire Hydrant Maintenance
Target: 215 or more mains flushed and fire hydrants maintained in a single year
(The target of 215 is comprised of 165 hydrants and 50 mains)
Number of mains flushed and hydrants
maintainedMeasurement Method
50 141 131 121
443
0
100
200
300
400
500
600
700
800
900
1000
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
54Critical Valve Exercising
Target: Exercise 631 identified critical valves in a year
Number of critical valves exercised in a
reporting periodMeasurement Method
625
6 2 0
633
0
100
200
300
400
500
600
700
800
900
1000
Q1 Q2 Q3 Q4 YTD
Target 2016 2017 2018
55
Next Steps
56
1 Kick-off of the 2019-2022 Strategic Plan
Track deliverables and metrics with the new ESM+ cloud-
based strategic performance solution2