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HomeMy WebLinkAbout02-15-17 FA&C Committee Packet 1 OTAY WATER DISTRICT FINANCE, ADMINISTRATION AND COMMUNICATIONS COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM WEDNESDAY February 15, 2017 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. OTAY WATER DISTRICT 2017 LEGISLATIVE PROGRAM PRIORITIES (OTERO) [5 minutes] 4. ADOPT ORDINANCE NO. 561 AMENDING CHAPTER 6, SECTION 9.03, ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO; SECTION 9.06, OTHER CONDITIONS OF ANNEXATION; AND ADDING SECTION 9.07, ANNEXATION OF TRIBAL LANDS; TO THE DISTRICT’S CODE OF ORDINANCES (BLUMENFELD) [5 minutes] 5. AUTHORIZE AN AGREEMENT WITH CONCORD UTILITY SERVICES, INC. FOR MASTER METER REGISTER AND METER CHANGE OUTS IN FISCAL YEAR 2017 AND INCREASE THE BUDGET FOR THE AUTOMATED METER READING CHANGE OUT CAPITAL IMPROVEMENT PROGRAM PROJECT BY $200,000 FOR THE LABOR ASSOCIATED WITH THE CHANGE OUT PROCESS (CAREY) [5 minutes] 6. ADOPT ORDINANCE NO. 562 AMENDING APPENDIX A WITH PROPOSED CHANGES TO VARIOUS FEES AND CHARGES; AND SECTION 34, ISSUANCE AND PAYMENT OF WATER BILLS; OF THE DISTRICT’S CODE OF ORDINANCES (CAREY) [5 minutes] 2 7. FISCAL YEAR 2017 MID-YEAR REPORT FOR THE DISTRICT’S FY2015-2018 STRATEGIC PLAN (SEGURA) [10 minutes] 8. ADJOURNMENT BOARD MEMBERS ATTENDING: Mark Robak, Chair Mitch Thompson 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 February 10, 2017 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 February 10, 2017. ______/s/_ Susan Cruz, District Secretary _____ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Tenille M. Otero, Communications Officer PROJECT: Various DIV. NO. ALL APPROVED BY: Mark Watton, General Manager SUBJECT: 2017 Legislative Program Priorities GENERAL MANAGER’S RECOMMENDATION: To present to the Board of Directors the 2017 Legislative Program Priorities. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board of Directors the 2017 Legislative Program priorities on issues affecting the District, which staff and legislative advocates will proactively monitor and/or take action on during the 2017 legislative session and throughout the year. ANALYSIS: Otay Water District maintains a set of legislative policy guidelines to direct staff and legislative advocates on issues important to the District. The legislative guidelines are updated annually and presented to the Otay Water District’s Board of Directors for review, comment, and adoption. At the February 1, 2017 Board of Director’s meeting, the Board adopted the 2017 Otay Water District Program Guidelines. The guidelines will provide a useful framework for staff when evaluating 2 the potential impact of state or federal legislation on the District, protecting the District’s interests. Through its adoption of the guidelines, the Board agreed with the Finance, Administration, and Communications Committee that the Legislative Guidelines is a comprehensive list. However, it has grown over the years and has become quite an extensive list, which makes it difficult to distinguish specific legislation or issues the District is proactively reviewing or taking action on for the year. The Board suggested that staff review the Legislative Guidelines list and condense it into a separate list prioritizing the District’s “top 10” or so priorities for the year. Unfortunately, it is too early in the legislative session to know the specifics on the bills as the deadline for bill introduction is Friday, February 17, 2017. Typically, lobbyists and legislative staff wait until the last couple of days leading up to the deadline, and then hundreds of bills will be introduced. For now, Otay staff does not know what the priority bills of interest will be, but will assess them as they are introduced and monitor those bills/issues that will affect the District throughout the year. Staff will also report to the Board as necessary throughout the year to provide an update on legislative issues affecting the District and if the District is taking a position on specific issues. Attached you will find a list of priority issues that District staff and/or the San Diego County Water Authority is currently monitoring and/or may take a position on. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. LEGAL IMPACT: None Attachments: Attachment A – Committee Action Attachment B – 2017 Legislative Program Priorities ATTACHMENT A SUBJECT/PROJECT: 2017 Legislative Program Priorities COMMITTEE ACTION: The Finance, Administration, and Communications Committee is scheduled to review this item at the monthly Board meeting to be held on March 1, 2017. The attachment will be updated with notes from the committee’s discussion. Page 1 of 2 2017 Legislative Priorities 1. Monitor unfunded mandates in an effort to decrease the amount of unfunded mandates/regulations that do not provide value to the public while increasing costs and diverting resources from the day- to-day operations to ensure safe, reliable and cost effective water supplies. Examples of these mandates/regulations include:  Meeting the ever-changing emissions requirements of the California Air Pollution Control (APCD in San Diego). Consistently more difficult to operate equipment vital to provide drinking water to the public.  State Water Resources Control Board Lead and Copper Testing in schools. Water agencies already have strict testing requirements that ensure the water supplied to all customers, including schools are in accordance with regulatory limits. Therefore, water agencies do not have the appropriate jurisdiction to monitor what is taking place inside the schools because schools or similar facilities have their own regulations outside of the District’s jurisdiction. This mandate and communication to schools from the State increases costs and diverts resources that the District needs to conduct additional tests and to manage community concerns outside of its control.  National Pollutant Discharge Elimination System (NPDES), which regards drinking water discharged into waterways as a contaminant does not change the operations, but increases the documentation and administration required by each agency to manage, thus increasing costs and resources to the District. 2. Conservation – District staff, along with the San Diego County Water Authority and other local agencies, is closely monitoring developments at the State Water Regional Control Board, State Department of Water Resources, and within the Legislature including any potential revisitation of mandatory water-use restrictions resulting from implementation of drought emergency regulations to determine whether Otay-legislative action may be necessary at a future point during 2017 on the following:  Long-term water use efficiency – Likely to see several bills on this issue.  Process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts, and ensures that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. 3. Monitor and Support the Ocean Pollution Reduction Act (OPRA) II legislation. Development and deployment of agreed legislation that accepts secondary equivalency for Point Loma wastewater treatment plant. Preferred Alternative: Submit a modified permit application, commit to building potable reuse and modify the Clean Water Act to allow for secondary equivalency. 4. Monitor and engage when appropriate to ensure funding from various propositions for local and regional water-related projects and support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. Page 2 of 2 5. Increase and/or secure funding for projects and technologies that strengthen and enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies for District facilities including, but not limited to training and upgrades. 6. Monitor the water affordability and public goods charge on water. This is the issue related to a “tax” on the water bill to finance low-income water rate assistance and operations and maintenance costs associated with water supply and treatment facilities within disadvantaged communities. 7. Monitor Proposition 218 Reform. This is the constitutional amendment to address conservation- pricing and low-income water rate assistance, and a statutory measure to address stormwater charges. 8. Monitor the Water/Resources Bond. Two measures have been introduced – AB 18 and SB 5. These are placeholders for discussions on a water bond for one of the 2018 ballots. 9. Monitor Assembly Bill 313 (Gray, Adam D) to overhaul California’s water management structure. It proposes to restructure the administration and enforcement of water rights and the State Water Project. Authority and enforcement over water rights would be moved from the State Water Resources Control Board and housed under the Department of Water Resources (DWR) with enforcement proceedings conducted separately by the Office of Administrative Hearings. DWR’s current authority and water rights underlying the State Water Project would be transferred to a new State Water Project Authority to eliminate the conflict of DWR both administering and enforcing water rights while simultaneously possessing water rights of its own. 10. Monitor Cap and Trade. There is a potential plan outlined in the Governor’s proposed State Budget to advance the cap/trade (greenhouse gas-reduction program) auction process in the coming year to secure approximately $2.2 billion in auction revenues available for programs. The proposed State Budget identifies a very small portion of that $2.2 billion for energy efficiency and water use efficiency ($27.5 million). 11. Monitor the California WaterFix. There may be a bill or two that emerges on the WaterFix project. The Legislature has indicated it will assert an oversight role by scheduling two informational hearings on the project for February. 12. Monitor advancement of robust state funding opportunities through a general obligation bond measure, or similar state funding instrument, to address outstanding state settlement obligations, including Salton Sea restoration and implementation of the Quantification Settlement Agreement. The Water Authority plans to sponsor this proposal and their approach requires extensive outreach to other directly affected interests, and development of a broad coalition to advance a general obligation bond funding approach. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Jeanne Blumenfeld, Attorney PROJECT: Various DIV. NO. ALL APPROVED BY: Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 561 Amending Chapter 6, Section 9, Annexations and Detachments, of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: Adopt Ordinance No. 561 Amending Chapter 6, Section 9.03, Annexations to or Detachments from the District Through LAFCO; Section 9.06, Other Conditions of Annexation; and adding Section 9.07, Annexation of Tribal Lands; to the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To present for the Board’s consideration the adoption of proposed amendments to Chapter 6, Section 9.03, Annexations to or Detachments from the District through LAFCO; Section 9.06, Other Conditions of Annexation; and the addition of Section 9.07, Annexation of Tribal Lands; to the District’s Code of Ordinances to bring the District’s policies in line with the County standards, and ensure that the District acts in accordance with recent statutory changes on the annexation of tribal lands. ANALYSIS: Annexation is the process of expanding existing territorial corporate boundaries. Generally, it is a five-part process: (1) Pre- application, (2) Application filing and processing, (3) LAFCO review and consideration, (4) Protest proceedings, and (5) Final Certification. The District’s Ordinance is concerned with the first two steps of this process: pre-application and application filing and processing. 2 Once the first two steps have been completed, LAFCO considers the benefits and detriments of the proposed annexation. An annexation will not be complete until it has been certified by LAFCO’s executive officer. The proposed changes to the Ordinance are intended to clarify the procedures used for the annexation of territory utilizing the Local Agency Formation Commission (LAFCO). The San Diego Local Agency Formation Commission (LAFCO) was established by State Law in 1963. It is a regulatory agency with quasi-legislative authority. LAFCO’s responsibilities include coordinating, directing, and overseeing logical and timely changes to local governmental boundaries, including the annexation and detachment of territory. The existing Otay Annexation Ordinance, found in Chapter 6, Section 9 of the Otay Water District’s Code of Ordinances, was not updated to reflect the re-writing of pertinent Government Code sections in 2000, which updated the previous codes from 1985. The new policy updates the law and details two methods by which owners desiring to annex land to or to detach land from the District may proceed. They may: (1) File a petition directly with LAFCO for the annexation or detachment; or (2) Request that the District file a petition with LAFCO for the annexation or detachment. Any change through this process is subject to the requirements of Government Code sections 56000 et. seq. The newly added portions of the Ordinance set forth the requirements for a request by the owners and representatives of the annexing or detaching land for the District to file a petition with LAFCO for annexation or detachment. The Otay Water District’s Board of Directors will make a determination as to whether the request is in the best interests of the District. These interests, as set forth in the Ordinance, include the existing planned water use, the water needs of the area to be annexed, and Otay Water District’s future plans. The Otay Water District’s Board of Directors must consider any request for annexation at the first meeting taking place at least 60 days after receipt the request and all required information. This provides at least two months for the District to review and consider the request. If the District approves the request, it must promptly file an application with the San Diego LAFCO, and cooperate with LAFCO to ensure that the request is approved. The annexation is not complete until it has been certified by LAFCO’s executive officer. 3 Additonally, The California Water Code relating to the annexation of tribal lands was amended in September 2016. The amendment added Water Code section 71611.5, which provides that upon request of an Indian tribe, subject to the conditions within the statute, a water District shall provide water service to the tribal lands at substantially the same terms applicable to customers of the District, as if the tribal land had been annexed into the District. This amendment has been added to the District’s ordinance as Section 9.07, Annexation of Tribal Lands. The statute requires that before the District provides water service to a tribal territory, the Indian tribe must: (1) Comply with all federal and tribal laws; (2) Acquire all federal and tribal approvals necessary for the provision of water service to tribal lands on substantially the same terms as other customers; and (3) Accept by agreement all District terms of paymentas if the land was annexed into the District and into the service area of any other public agency required for the provision of water service. In addition, Water Code section 71611.5(b) and the Ordinance require that before the District provides water to an Indian Tribe’s lands an agreement with the Tribal government must be entered into to assure, among other things, payment for services and other charges from which the tribal lands would otherwise be exempt. The Ordinance also requires a waiver of sovereign immunity from the Tribe, so that the Tribe may be sued under either California law or Federal law, in either the Superior Court of California or the appropriate Federal Court. These requirements protect the District’s interests in the event of a a dispute between Otay Water District and the Tribal government (an otherwise immune entity) and they provide a remedy because there is an enforcement mechanism if payment for the water provided is not forthcoming. The fees to be paid to Otay by the area to be annexed remain unchanged. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: To provide high quality and reliable water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner and maximize efficiency in providing effective water services. 4 LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Ordinance No. 561 Attachment C – Proposed Chapter 6 ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 561 Amending Chapter 6, Section 9, Annexations and Detachments, of the District’s Code of Ordinances COMMITTEE ACTION: The Finance Administration and Communications Committee is scheduled to review this item on February 15, 2017. Attachment A will be updated with notes from the committee’s discussion. ORDINANCE NO. 561 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 9, ANNEXATIONS AND DETACHMENTS, 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 9, Annexations and Detachments be amended as per Exhibit 1 (attached). NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 9 (Attachment C) of the Code of Ordinances shall become effective March 1, 2017. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 1st day of March, 2017, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary ATTACHMENT B 9 -1 CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 ANNEXATIONS AND DETACHMENTS 9.01 REQUIREMENT OF ANNEXATION FOR SERVICE Except as provided elsewhere in this Code, whenever utility service is requested for land outside the boundaries of an improvement district, the land to be serviced must first be annexed to an improvement district(s). If the land is located outside the boundaries of the District, the land must also be annexed to the District. 9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS DISTRICTS An owner or owners of land within the District desiring to annex to or detach land from an improvement district within the District must file a petition for such proceeding with the District. Annexation proceedings shall be con- ducted pursuant to Chapter I (commencing with Section 72670) of Part 11, Division 20 of the California Water Code. Detachment or exclusion proceedings shall be conducted pur- suant to Part 8.5 (commencing with Section 72080) of Divi- s ion 20 of the California Water Code. If the land proposed to be annexed is outside the boundaries of the territory served by the Metropolitan Water District of Southern California and the territory served by the San Diego County Water Authority, and no local sources of water are available to serve such land, the District will require that the land be annexed to those entities as well. 9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO An owner or owners desiring to annex land to or to detach land from the District may either (i) file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii) request the District to file the petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox Local Government Reorganization Act of 1985, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including EXHIBIT 1 9 -2 without limitation any conservation or local supply use requirements. 1. Application Process Options An owner or owners desiring to annex land to or to detach land from the District may either (i) file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii) request the District file a petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2. Board Approval Process for a request the District file the LAFCO petition a. The Board, or any standing committee of the Board reviewing an annexation request will consider the request at the next regular meeting taking place no earlier than 60 days after the receipt by the District of the request for the annexation and all accompanying required information. b. A request for annexation shall include: (1) A legal description and a detailed map of the area proposed to be annexed, clearly indicating the metes and bounds of the area and the gross and net acreage for the area with sufficient documentation to support the gross and net acreage specified; 9 -3 (2) A certificate from the assessor of the county within which the area proposed to be annexed is situated setting forth the assessed valuation of each parcel included within the area; (3) Identification of the ownership of each parcel included within the area proposed to be annexed; (4) For each parcel included in the area proposed to be annexed, a description of:  The present use of each of the parcels  Existing or proposed development plans  An estimate of the total annual and peak demands for water service, including an estimate of the proportion of those demands to be supplied by Otay Water District  Any infrastructure requirements for servicing the proposed annexation area  A plan for implementing all current water use efficiency and restrictions  All appropriate California Environmental Quality Act (CEQA), and if applicable, National Environmental Policy Act (NEPA) documents  Payment of all applicable fees. c. The Water District shall consider its current and planned water supplies, the above-listed information, whether annexing the property would diminish the District’s ability to serve its current obligations. d. The Otay Water District will submit a petition to LAFCO for annexation or detachment following District approval of the request for annexation or detachment and upon payment of all applicable fees by the owners and representatives of the annexing or detaching land. 9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS A petitioner requesting an annexation to or detachment from the District or within the District shall pay the following applicable fees and charges: 9 -4 A. Administrative Processing Fees 1. District Processing Fee. A District processing fee (s ee Appendix A, Section 9 for fee) shall be paid to the District for each annexation or detachment proceeding, regardless of the number of parcels involved, provided all parcels are included in one proceeding. This fee shall constitute the "base rate" on March 3, 1997. The base rate shall be adjusted annually for fluctuations in the Consumer Price Index (Urban Wage Earners and Clerical Workers - Los Angeles) and subsequent cost-of-living adjustment (COLA). 2 . A dditional Processing Fees or Charges. The peti- tioner shall pay all processing fees and charges due LAFCO, the State Board of Equalization and any other applicable government agency. 3 . Concurrent Annexations to or Detachments from the District and an Existing Improvement District. No additional processing costs or fees will be charged to a petitioner for an annexation to or detachment from an existing improvement district when the proceeding is part of an annexation to or detachment from the District. 4 . Payment of Fees and Charges. The District processing f ees and charges shall be paid to the District at the time the petition for such proceeding is filed. Where a petition is filed with LAFCO, the District shall notify LAFCO that payment of all required fees and charges to the District shall be a condition for District approval of the annexation or detachment. B. Water Annexation Fees. The annexation fee (s ee Appendix A, Section 9) shall constitute the "base rate" on October 1, 2014). The base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 on June 1, 2014 shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. 1. No water annexation fee shall be required for existing and future agricultural water service furnished by the District under the COMMERCIAL AGRICULTURAL category of Section 25 of the Code. 9 -5 2. Non-permanent irrigation water service furnished by the District under Section 30 of the Code shall be available without payment of a water annexation fee. 3. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a water improvement district. 4. Water Meter Type Exclusions. Annexation fees shall be collected on all water meters sold except for temporary water meters, water tank truck meters, nonpermanent irrigation water meters and outside user meters, all as defined elsewhere in this Code. 5. Effective Date. Annexation fees shall be col- lected on all lands annexing into the Otay Water District boundaries on or after March 5, 1997. 6. Basis for Determination. For annexations of land into the Otay Water District boundaries, the petitioner shall pay an annexation fee. The fee shall be paid at the time of petition to be annexed. There shall be no water annexation fee charged for parcels already within District boundaries that are applying to be annexed into a water ID. For permanent water meters, except for commercial agricultural meters, the annexation fee shall be determined on the basis of the demand to be placed on the District-wide water system. The fee will be determined on the basis of the size of the water meter required, as set forth in Section 27 of the Code. The fee shall be determined by multiplying the demand factor for the meter size, as set forth in Section 28 of the Code, by the annexation fee per EDU. See Appendix A, Section 9 for fees. C. Sewer Annexation Fees 1. Improvement District Annexation. All annexation for sewer service shall be into Improvement District No. 18 on or after December 16, 1998. 2. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a sewer improvement district. 3. Effective Date. Annexation fees shall be collected on all lands annexing to a sewer improvement district on or after December 16, 1998. 9 -6 4. Basis for Determination. For annexations of land to a sewer improvement district within the Dis- trict, the petitioner shall pay an annexation fee. The fee shall be determined on the basis of the demand to be placed on the District sewer system. The fee shall be paid at the time of sewer service connection request or General Manager's approval of plans, whichever occurs earlier. The extent of the demand will be determined on the basis of each equivalent dwelling unit (EDU) of service which is to be connected to the District sewer system. The number of EDUs prescribed in Section 53 of the Code shall be the basis for computation of the amount of the annexation fee. The fee will be determined by multiplying the number of EDUs by the annexation fee per EDU. S ee Appendix A, Section 9 for fees. This annexation fee shall constitute the "base rate" on October 1, 2014. The base rate shall be adjusted quarterly for fluctuations in construction costs as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 (as of June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. D. Detachment Fees For each detachment of land from an improvement district, the petitioner shall pay such fees as the General Manager determines are appropriate for the detachment. Determinations shall be made by the General Manager on a case-by-case basis. 9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT DISTRICT Where property is annexed by a petitioner, other than a tax-exempt agency, the property in the annexed area shall be subject to taxation after the annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district authorized and outstanding at the time of the annexation. The Board of Directors shall provide as a condition of the annexation that the annexed area shall be subject to taxation as if the property had always been a part of the improvement district. 9.06 OTHER CONDITIONS OF ANNEXATION 9 -7 1. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2. Proposals which create an unannexed area entirely surrounded by an annexed area shall not be approved unless the Board determines that the Water District’s interests will not be adversely affected by the existence of the encompassed area. 3. An annexed area shall be subject to all applicable water use efficiency guidelines. 9.07 ANNEXATION OF TRIBAL LANDS Annexation of Tribal Lands may be approved where an agreement with the Tribal government to assure implementation and annexation conditions and requirements has been signed, in accordance with Water Code section 71611.5(b). The agreement shall include, among other items, payment to the Water Authority in lieu of taxes, assessments, and other charges from which the tribal lands would otherwise be exempt, and a tribal government waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement. The waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement shall specify that suit shall proceed in either the Superior Court of the State of California, or the proper jurisdiction of the Federal Court, whichever is proper, and be subject to California and/or Federal law. 9 -1 CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 ANNEXATIONS AND DETACHMENTS 9.01 REQUIREMENT OF ANNEXATION FOR SERVICE Except as provided elsewhere in this Code, whenever utility service is requested for land outside the boundaries of an improvement district, the land to be serviced must first be annexed to an improvement district(s). If the land is located outside the boundaries of the District, the land must also be annexed to the District. 9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS DISTRICTS An owner or owners of land within the District desiring to annex to or detach land from an improvement district within the District must file a petition for such proceeding with the District. Annexation proceedings shall be con- ducted pursuant to Chapter I (commencing with Section 72670) of Part 11, Division 20 of the California Water Code. Detachment or exclusion proceedings shall be conducted pur- suant to Part 8.5 (commencing with Section 72080) of Division 20 of the California Water Code. If the land proposed to be annexed is outside the boundaries of the territory served by the Metropolitan Water District of Southern California and the territory served by the San Diego County Water Authority, and no local sources of water are available to serve such land, the District will require that the land be annexed to those entities as well. 9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO 1. Application Process Options An owner or owners desiring to annex land to or to detach land from the District may either (i) file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii) request the District file a petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section ATTACHMENT C 9 -2 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2. Board Approval Process for a request the District file the LAFCO petition a. The Board, or any standing committee of the Board reviewing an annexation request will consider the request at the next regular meeting taking place no earlier than 60 days after the receipt by the District of the request for the annexation and all accompanying required information. b. A request for annexation shall include: (1) A legal description and a detailed map of the area proposed to be annexed, clearly indicating the metes and bounds of the area and the gross and net acreage for the area with sufficient documentation to support the gross and net acreage specified; (2) A certificate from the assessor of the county within which the area proposed to be annexed is situated setting forth the assessed valuation of each parcel included within the area; (3) Identification of the ownership of each parcel included within the area proposed to be annexed; (4) For each parcel included in the area proposed to be annexed, a description of:  The present use of each of the parcels  Existing or proposed development plans  An estimate of the total annual and peak demands for water service, including an estimate of the proportion of those demands to be supplied by Otay Water District 9 -3  Any infrastructure requirements for servicing the proposed annexation area  A plan for implementing all current water use efficiency and restrictions  All appropriate California Environmental Quality Act (CEQA), and if applicable, National Environmental Policy Act (NEPA) documents  Payment of all applicable fees. c. The Water District shall consider its current and planned water supplies, the above-listed information, whether annexing the property would diminish the District’s ability to serve its current obligations. d. The Otay Water District will submit a petition to LAFCO for annexation or detachment following District approval of the request for annexation or detachment and upon payment of all applicable fees by the owners and representatives of the annexing or detaching land. 9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS A petitioner requesting an annexation to or detachment from the District or within the District shall pay the following applicable fees and charges: A. Administrative Processing Fees 1. District Processing Fee. A District processing fee (s ee Appendix A, Section 9 for fee) shall be paid to the District for each annexation or detachment proceeding, regardless of the number of parcels involved, provided all parcels are included in one proceeding. This fee shall constitute the "base rate" on March 3, 1997. The base rate shall be adjusted annually for fluctuations in the Consumer Price Index (Urban Wage Earners and Clerical Workers - Los Angeles) and subsequent cost-of-living adjustment (COLA). 2 . Additional Processing Fees or Charges. The peti- tioner shall pay all processing fees and charges due LAFCO, the State Board of Equalization and any other applicable government agency. 3 . Concurrent Annexations to or Detachments from the District and an Existing Improvement District. No 9 -4 additional processing costs or fees will be charged to a petitioner for an annexation to or detachment from an existing improvement district when the proceeding is part of an annexation to or detachment from the District. 4 . Payment of Fees and Charges. The District processing f ees and charges shall be paid to the District at the time the petition for such proceeding is filed. Where a petition is filed with LAFCO, the District shall notify LAFCO that payment of all required fees and charges to the District shall be a condition for District approval of the annexation or detachment. B. Water Annexation Fees. The annexation fee (s ee Appendix A, Section 9) shall constitute the "base rate" on October 1, 2014). The base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 on June 1, 2014 shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. 1. No water annexation fee shall be required for existing and future agricultural water service furnished by the District under the COMMERCIAL AGRICULTURAL category of Section 25 of the Code. 2. Non-permanent irrigation water service furnished by the District under Section 30 of the Code shall be available without payment of a water annexation fee. 3. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a water improvement district. 4. Water Meter Type Exclusions. Annexation fees shall be collected on all water meters sold except for temporary water meters, water tank truck meters, nonpermanent irrigation water meters and outside user meters, all as defined elsewhere in this Code. 5. Effective Date. Annexation fees shall be col- lected on all lands annexing into the Otay Water District boundaries on or after March 5, 1997. 6. Basis for Determination. For annexations of land into the Otay Water District boundaries, the 9 -5 petitioner shall pay an annexation fee. The fee shall be paid at the time of petition to be annexed. There shall be no water annexation fee charged for parcels already within District boundaries that are applying to be annexed into a water ID. For permanent water meters, except for commercial agricultural meters, the annexation fee shall be determined on the basis of the demand to be placed on the District-wide water system. The fee will be determined on the basis of the size of the water meter required, as set forth in Section 27 of the Code. The fee shall be determined by multiplying the demand factor for the meter size, as set forth in Section 28 of the Code, by the annexation fee per EDU. See Appendix A, Section 9 for fees. C. Sewer Annexation Fees 1. Improvement District Annexation. All annexation for sewer service shall be into Improvement District No. 18 on or after December 16, 1998. 2. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a sewer improvement district. 3. Effective Date. Annexation fees shall be collected on all lands annexing to a sewer improvement district on or after December 16, 1998. 4. Basis for Determination. For annexations of land to a sewer improvement district within the Dis- trict, the petitioner shall pay an annexation fee. The fee shall be determined on the basis of the demand to be placed on the District sewer system. The fee shall be paid at the time of sewer service connection request or General Manager's approval of plans, whichever occurs earlier. The extent of the demand will be determined on the basis of each equivalent dwelling unit (EDU) of service which is to be connected to the District sewer system. The number of EDUs prescribed in Section 53 of the Code shall be the basis for computation of the amount of the annexation fee. The fee will be determined by multiplying the number of EDUs by the annexation fee per EDU. S ee Appendix A, Section 9 for fees. This annexation fee shall constitute the "base rate" on October 1, 2014. The base rate shall be adjusted quarterly for fluctuations in construction costs as measured by the Engineering 9 -6 News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 (as of June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. D. Detachment Fees For each detachment of land from an improvement district, the petitioner shall pay such fees as the General Manager determines are appropriate for the detachment. Determinations shall be made by the General Manager on a case-by-case basis. 9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT DISTRICT Where property is annexed by a petitioner, other than a tax-exempt agency, the property in the annexed area shall be subject to taxation after the annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district authorized and outstanding at the time of the annexation. The Board of Directors shall provide as a condition of the annexation that the annexed area shall be subject to taxation as if the property had always been a part of the improvement district. 9.06 OTHER CONDITIONS OF ANNEXATION 1. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2. Proposals which create an unannexed area entirely surrounded by an annexed area shall not be approved unless the Board determines that the Water District’s interests will not be adversely affected by the existence of the encompassed area. 3. An annexed area shall be subject to all applicable water use efficiency guidelines. 9 -7 9.07 ANNEXATION OF TRIBAL LANDS Annexation of Tribal Lands may be approved where an agreement with the Tribal government to assure implementation and annexation conditions and requirements has been signed, in accordance with Water Code section 71611.5(b). The agreement shall include, among other items, payment to the Water Authority in lieu of taxes, assessments, and other charges from which the tribal lands would otherwise be exempt, and a tribal government waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement. The waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement shall specify that suit shall proceed in either the Superior Court of the State of California, or the proper jurisdiction of the Federal Court, whichever is proper, and be subject to California and/or Federal law. 1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Authorize an Agreement with Concord Utility Services, Inc. for Master Meter Register and Meter Change Outs in Fiscal Year 2017 and Increase the Budget for the Automated Meter Reading Change Out Capital Improvement Program Project by $200,000 GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to negotiate and enter into an agreement with Concord Utility Services, Inc. for Master Meter register and meter change outs in fiscal year 2017 and increase the budget for the Automated Meter Reading (AMR) Change Out Capital Improvement Program (CIP) project by $200,000 for the labor associated with the change out process. COMMITTEE ACTION: See Attachment A. PURPOSE: To authorize the General Manager to negotiate and enter into an agreement with Concord Utility Services, Inc. to complete the Master Meter register and meter change outs in fiscal year 2017 and increase the budget for the AMR CIP project by $200,000 for the labor associated with the change out process. 2 ANALYSIS: On January 4, 2017, the Board authorized the creation of an AMR Change Out CIP project to begin in the current fiscal year, due to an increase in the number of automated reading failures in the meters purchased in 2006. Staff recommended changing out all the registers (approximately 8,000) and the 500 meters purchased in that year. During the January presentation to the Board, staff noted that it would be bringing a separate staff report back for the contract associated with the installation services and a corresponding request to increase the CIP for the labor costs associated with the change outs. Staff has identified over $200,000 in savings on other CIP projects so while the AMR Change Out CIP will be increasing, the overall CIP budget will remain the same. Staff issued a bid request through its online solicitation portal, BidSync. The District received five responses and all were evaluated on firm qualifications, references and price. The companies and their prices are in the table below. Company Total Price Concord Utility Services, Inc. $198,860 Falcon Construction Co. $229,900 American Pipeline Services $462,250 Professional Meters, Inc. $523,500 CHI Construction $1,232,150 During the evaluation, Concord Utility Services, Inc. ranked highest in all areas. Concord has been in business for ten years and its core business is meter installations of all sizes. The company is headquartered in Murrieta, California and has approximately 50 employees. Concord was the only company that provided three references where the work performed was exclusively related to meter change outs. Staff contacted each reference which included Rancho California Water District, the City of Victorville and Cucamonga Valley Water District. All rated Concord excellent in job performance and stated they would use Concord again for similar projects. The contractor is expected to begin change outs in mid-March and will have a crew of four to six people working daily to complete the project within the two month time frame requested by the District. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This action increases the Capital Improvement Project AMR Change Out program budget by $200,000 for fiscal year 2017. While this expenditure was not incorporated into the planned rates, the District 3 has sufficient financial flexibility to fund this program earlier than anticipated. Staff has identified over $200,000 in savings on other CIP projects this year which will be transferred to cover the costs of the increase to this CIP. STRATEGIC GOAL: Improve and streamline meter related processes. LEGAL IMPACT: None. Attachments: Attachment A - Committee Action 4 ATTACHMENT A SUBJECT/PROJECT: Authorize an Agreement with Concord Utility Services, Inc. for Master Meter Register and Meter Change Outs in Fiscal Year 2017 and Increase the Budget for the Automated Meter Reading Change Out Capital Improvement Program Project by $200,000 COMMITTEE ACTION: The Finance, Administration and Communications Committee supported staff’s recommendation to the Board to authorize the General Manager to negotiate and enter into an agreement with Concord Utility Services, Inc. for Master Meter register and meter change outs in fiscal year 2017 and increase the budget for the Automated Meter Reading (AMR) Change Out Capital Improvement Program (CIP) project by $200,000 for the labor associated with the change out process. 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: March 1, 2017 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 562 Amending Appendix A with the Proposed Changes to Various Fees and Charges and Amending Section 34 Issuance and Payment of Water Bills of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 562 amending Appendix A with the proposed changes to various fees and charges and amending Section 34 Issuance and Payment of Water Bills of the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board the proposed changes to various fees and charges in Appendix A and amending Section 34 of the District’s Code of Ordinances. ANALYSIS: Periodically, the District analyzes fees to ensure all costs are recovered by the individual benefiting from the service performed. 2 Staff has recently completed a cost analysis of various fees outlined in Appendix A. 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 field as well as any time spent in the office that was directly related to completing each task. 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. To ensure financial equity to all rate payers, staff is recommending changes to the following fees effective April 1, 2017, as shown in the table below. Code Numbers Item Current Fees Proposed Fees 23.04 Backflow Certification Third Notification ‐ hand delivered New 45.00 Reconnection (if test performed with technician present) 50.00 150.00 31.03 A.4. Temporary Meter Install & Removal 3/4"‐4" (on hydrant) 128.00 150.00 4"‐6" 128.00 806.00 8"‐10"* 128.00 Actual Cost 31.03 A.5. Temporary Meter Move Fee ‐ includes backflow certification 3/4"‐4" (on hydrant) 64.00 150.00 4"‐6" 64.00 806.00 8"‐10"* 64.00 Actual Cost 34.02 G.3. (a) Meter “Turn‐on” Charge – regular hours (lock and unlock fee) 35.00 50.00 34.02 G.3. (b) Meter “Turn‐on” Charge ‐ after hours (unlock fee) 65.00 Delete 34.02 G.1. (d) Delinquency Tag (contact fee) 10.00 15.00 72.04 A.1. Locking or Removing Damaged or Tampered Meters Pull and Reset Meter 3/4"‐2" 170.00 200.00 Broken Curb Stop or Tabs 3/4"‐1" 192.00 Actual Cost If Customer uses a Jumper 3/4"‐1" 149.00 Actual Cost Broken Lock/Locking Device 3/4"‐1" 56.00 68.00 Cap Locked (Welded) 3/4"‐1" 158.00 Delete Broken Curb Stop or Tabs 1.5"‐2" 265.00 Actual Cost Pull and Reset Meter 3"* 351.00 Actual Cost Pull and Reset Meter 4"* 454.00 Actual Cost Pull and Reset Meter 6"* 454.00 Actual Cost Pull and Reset Meter 8”* 600.00 Actual Cost Pull and Reset Meter 10” 600.00 Actual Cost *These fees have never been assessed but will be kept in Appendix A to ensure the District is reimbursed should the situation arise. 3 The fees above are assessed to the customer’s water account after the work is performed. Staff has consulted with the District’s General Counsel who confirmed these fees are not subject to Proposition 218 noticing requirements. Lock Fees The most common fee assessed on this list is the “Meter Turn-on Charge.” This fee is charged to customers that have their service disconnected for non-payment. The District locks approximately 300 meters per month. In order to determine the appropriate fee for disconnection and reconnection due to non-payment, staff analyzed the costs associated with locking and unlocking an account. Prior to locking a meter, Customer Service staff reviews each account on the day’s lock list. The final list is then sent to the meter reading team. A meter reader then goes to each property to turn off service and place a lock on the meter with a tag stating the service has been interrupted and to call the office. The lock process takes approximately 15 minutes per account. To unlock the meter the customer must pay the past due amount. A Customer Service Representative verifies payments made throughout the day to locked accounts and creates a service order to unlock those paid accounts. The meter reading team then returns to the property to unlock the meter. The unlock process takes approximately 20 minutes per account. Based on the average time of 35 minutes per account and the labor cost, staff is proposing an increase from $35.00 to $50.00. This fee was last updated in September 2009. Staff has done a survey of neighboring agencies and lock fees that are shown in the table below. Water Agency Lock Fee Padre Dam Municipal Water District $60 Helix Water District $44 Sweetwater Authority $50 Poway Municipal $54 City of San Diego $55 Although not required by law, the District will be notifying all customers in March, via a message on their water bill, of the lock fee increase. Staff also proposes an increase of the delinquency tag fee from $10.00 to $15.00. This is not common practice as notices are now emailed and mailed. However, staff would like to keep this fee in Appendix A to ensure the District is reimbursed on the rare occasion a notice is hand delivered. 4 Backflow Fees Staff is proposing the addition of a fee for hand-delivering a backflow shut-off notice. Backflow devices must be tested on an annual basis and test reports must be submitted within the due date supplied to the customer. Notices advising the customer of the upcoming due date are mailed 30 days prior. If a test is not submitted, a second notice is mailed giving 14 days to complete the test. At the end of the 14 day period a third notice is mailed with notification on pending disconnection. In addition, staff hand delivers a notice to the site. This hand-delivered notice is to ensure the onsite Manager is aware of the pending disconnection and can take the necessary steps to bring the backflow device into compliance. Although, this can be a time consuming and costly step for the District, it has proven highly effective in minimizing disconnections. The new fee will offset the costs associated with this field visit. Temporary Meter Fees Temporary meters are meters used for construction purposes. The majority of these are 2½” meters attached to District fire hydrants (see photo on page 5). Staff proposes an increase from $128.00 to $150.00. Each temporary meter requires a backflow device to be tested and installed at the time the meter is set. Historically, the charge to move a temporary meter has been half of the installation fee which also includes the cost of the future removal. However, the time involved with moving a temporary meter is the same as the initial installation and future removal. The proposed fee changes reflect this and would charge the same fee whether a temporary meter is installed for the first time or moved from one hydrant to another. On occasion, developers require a larger flow of water and must use a regular 4” or 6” meter (see photo on page 5). The installation of these meters is much more involved and requires two staff members. Staff is proposing a separate fee for installing these meters. Once again, the staff time for moving one of these meters is equal to the installation and future removal time therefore, fees are proposed to be the same for each occurrence. 5 6’’ temporary meter installed for construction purposes. Standard 2½’’ temporary meter attached to hydrant for construction purposes. 6 Fees Removed Staff is proposing the removal of two fees on this list: 1) Meter “Turn-On” Charge - after regular business hours and 2) Cap Locked (Welded) ¾”-1”. Customers are only unlocked between the District’s normal business hours of 8am-5pm. Should a customer make a payment after 5pm, they are advised that service will be restored the next business morning. In rare instances, management may approve service restoration after hours or on weekends but these are special situations. The Cap Locked (Welded) is not something the District uses any longer. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Based on the average number of occurrences for each fee, staff estimates an increase of approximately $75,000 in annual revenue. The proposed fee 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 Form Attachment B - Ordinance No. 562 Exhibit 1 – Appendix A Strike-through Exhibit 2 – Section 34 Strike-through Attachment C – Appendix A Proposed Attachment D – Section 34 Proposed ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 562 Amending Appendix A with the Proposed Changes to Various Fees and Charges and Amending Section 34 Issuance and Payment of Water Bills of the District’s Code of Ordinances COMMITTEE ACTION: That the Finance, Administration and Communications Committee recommend that the Board adopt Ordinance No. 562 amending Appendix A with the proposed changes to various fees and charges and amending Section 34 Issuance and Payment of Water Bills 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. 562 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING APPENDIX A AND SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 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 Appendix A and Section 34 Issuance and Payment of Water Bills be amended as per Exhibit 1 and Exhibit 2 to this ordinance. NOW, THEREFORE, BE IT RESOLVED that the new proposed Appendix A (Attachment C) and Section 34 Issuance and Payment of Water Bills (Attachment D) of the Code of Ordinances shall become effective April 1, 2017. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 1st day of March 2017, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: __________________________ District Secretary Attachment B Section #Code #Fee Description Meter Size 9 9.04 A.1. District Annexation Processing Fee $776.20 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $1,907.32 1" $4,768.30 1-1/2" $9,536.60 2" $15,258.56 3" $30,517.12 4 $47,683.00 6" $95,366.00 8" $152,585.60 10" $219,341.80 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,092.66 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Reconnection (service resumed)$50.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers) Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4" $15.91 $15.00 $30.91 1" $22.47 $27.84 $50.31 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2017. Exhibit 1 Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2" $38.88 $62.96 $101.84 2" $58.55 $107.08 $165.63 3" $111.04 $227.75 $338.79 4" $170.10 $364.72 $534.82 6" $334.18 $746.59 $1,080.77 8" $531.05 $1,205.65 $1,736.70 10" $760.72 $1,735.39 $2,496.11 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $2.53 toward the first five units of water when 6-10 $3.95 overall consumption is ten units or less.) 11-22 $5.13 23 or more $7.90 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $3.90 5-9 $5.05 10 or more $7.80 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10" 0-185 $4.17 186-1,400 $4.23 1,401 or more $4.30 10" & larger 0-7,426 $4.17 7,427-14,616 $4.23 14,617 or more $4.30 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $5.68 55-199 $5.74 200 or more $5.81 1.5" & 2" 0-144 $5.68 145-355 $5.74 356 or more $5.81 3" & larger 0-550 $5.68 551-1,200 $5.74 1,201 or more $5.81 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.5.(c)Recycled Water (1)3/4" - 1" 0-32 $4.85 (Landscape Irrigation and Certain 33-75 $4.92 Non-Irrigation Purposes Rates) 76 or more $4.99 1.5" & 2" 0-130 $4.85 131-325 $4.92 326 or more $4.99 3" & 4" 0-440 $4.85 441-1,050 $4.92 1,051 or more $4.99 6" & larger 0-4,000 $4.85 4,001-10,000 $4.92 10,001 or more $4.99 25 25.03 E.6.(c)Recycled Commercial (1)under 10" 0-173 $3.53 174-831 $3.60 832 or more $3.65 10" & larger 0-7,426 $3.53 7,427-14,616 $3.60 14,617 or more $3.65 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (1)3/4" - 1" 0-32 $9.70 33-75 $9.84 76 or more $9.98 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (continued) (1)1.5" & 2" 0-130 $9.70 131-325 $9.84 326 or more $9.98 3" & 4" 0-440 $9.70 441-1,050 $9.84 1,051 or more $9.98 6" & larger 0-4,000 $9.70 4,001-10,000 $9.84 10,001 or more $9.98 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $20.77 more than 4" $27.98 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.41 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.044 25 25.04 A. Deposits for Non-Property Owners 3/4" $75.00 1" $150.00 1-1/2" $200.00 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.04 A. Deposits for Non-Property Owner (continued)2" $360.00 3" $800.00 4" $1,350.00 6" $3,300.00 8" $4,400.00 10" $5,500.00 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $8,569.52 1" $21,423.80 1-1/2" $42,847.60 2" $68,556.16 3" $137,112.32 4 $214,238.00 6" $428,476.00 8" $685,561.60 10" $985,494.80 - TRIAD 3/4" $6,429.28 1" $16,073.20 1 -1/2" $32,146.40 2" $51,434.24 3" $102,868.48 4 $160,732.00 6" $321,464.00 8" $514,342.40 10" $739,367.20 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $1,061.53 1" $2,653.83 1-1/2" $5,307.65 2" $8,492.24 3" $16,984.48 4" $26,538.25 6" $53,076.50 8" $84,922.40 10" $122,075.95 Section #Code #Fee Description Meter Size Charges 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" $219.55 $104.19 $323.74 $88.20 3/4" x 9" $233.76 $104.19 $337.95 $88.20 1" $283.32 $104.19 $387.51 $88.20 1.5" $460.50 $104.19 $564.69 $199.96 2" $659.85 $104.19 $764.04 $199.96 3" $2,056.35 $627.30 $2,683.65 $3,566.92 4" $3,571.54 $627.30 $4,198.84 $3,566.92 6" $6,169.03 $990.87 $7,159.90 $3,566.92 8" $7,707.74 $1,519.41 $9,227.15 $5,117.00 10" $11,085.17 $1,519.41 $12,604.58 $5,117.00 - Potable/Recycled Irrigation 3/4" x 7.5" $219.55 $104.19 $323.74 $224.79 3/4" x 9" $233.76 $104.19 $337.95 $224.79 1" $283.32 $104.19 $387.51 $224.79 1.5" $460.50 $104.19 $564.69 $224.79 2" $659.85 $104.19 $764.04 $224.79 3" $1,423.20 $627.30 $2,050.50 $3,566.92 4" $2,770.75 $627.30 $3,398.05 $3,566.92 6" $4,988.25 $990.87 $5,979.12 $3,566.92 8" $6,645.24 $1,519.41 $8,164.65 $5,117.00 10" $9,430.10 $1,519.41 $10,949.51 $5,117.00 - Combined Fire and Domestic 4" $8,497.02 $627.30 $9,124.32 $3,566.92 6" $11,308.80 $990.87 $12,299.67 $3,566.92 8" $16,442.17 $1,519.41 $17,961.58 $5,117.00 10" $22,438.13 $1,519.41 $23,957.54 $5,117.00 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4" $156.85 1" $184.78 1-1/2" $379.62 2" $2,046.00 4" $1,986.00 6" $2,465.00 Section #Code #Fee Description Meter Size Charges 31 31.03 A.1. Requirement of Deposit for Temporary Meters (continued) - Construction Trailer Temporary Meter 2" $2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2" $850.00 31 31.03 A.4. Temporary Meter Install & Removal $128.00 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 2"$64.00 3 and larger No backflow test $64.00 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1" $25.00 1-1/2" & 2 " $50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B. Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d) Delinquency Tag $10.00 34 34.02 G.3.(a)Meter "Turn-On" Charge During regular business hours $35.00 34 34.02 G.3.(b)Meter "Turn-On" Charge After regular business hours $65.00 53 53.03 A.1. Sewer Capacity Fee per EDU for parcels within a Sewer ID $4,392.09 53 53.03 A.2. Sewer Capacity Fee per EDU for parcels not within a Sewer ID $6,869.35 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 (2) Sewer billed beginning January 1, 2017. Section #Code #Fee Description Meter Size Charges 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.58 53 53.10 Residential Sewer System Fee (2)5/8", 3/4" & larger $15.89 53 53.10 A. Residential Sewer Without Consumption History (2)5/8", 3/4" & larger $40.01 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $24.12 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.58 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75" $28.37 1" $41.80 1.5" $75.27 2" $115.46 3" $209.24 4" $343.23 6" $678.18 8" $1,080.14 10" $1,549.07 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2)Rate multiplied by Low Strength $2.58 annual avg.Medium Strength $3.70 units High Strength $5.90 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75" $28.37 1" $41.80 1.5" $75.27 2" $115.46 3" $209.24 (2) Sewer billed beginning January 1, 2017. Section #Code #Fee Description Meter Size Charges 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2) (continued)4" $343.23 6" $678.18 8" $1,080.14 10" $1,549.07 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$170.00 - Broken Curbstop or Tabs 3/4" - 1"$192.00 - If Customer uses Jumper 3/4" - 1"$149.00 - Broken Lock/Locking Device 3/4" - 1"$56.00 - Cap Lock (Welded)3/4" - 1"$158.00 - Broken Curbstop or Tabs 1.5" - 2"$265.00 - To Pull and Reset Meter 3"$351.00 - To Pull and Reset Meter 4"$454.00 - To Pull and Reset Meter 6"$454.00 - To Pull and Reset Meter 8"$600.00 - To Pull and Reset Meter 10"$600.00 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Section #Code #Fee Description Meter Size Charges State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 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 Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25, & 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 4, 14, & 18 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. 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 34-4 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. 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 G.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. 34-5 (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, 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 34-6 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 charges for to turn-on a meter shall be as followsis set forth in Appendix A, 34.02 G.3.: (a) For any account turned on during the District’s regular business hours the turn-on charge is set forth in Appendix A, 34.02 G.3.(a). (b) For any account turned on after the District’s regular business hours, the turn-on charge is set forth in Appendix A, 34.02 G.3.(b). Section #Code #Fee Description Meter Size 9 9.04 A.1. District Annexation Processing Fee $776.20 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $1,907.32 1" $4,768.30 1-1/2" $9,536.60 2" $15,258.56 3" $30,517.12 4 $47,683.00 6" $95,366.00 8" $152,585.60 10" $219,341.80 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,092.66 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 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4" $15.91 $15.00 $30.91 1" $22.47 $27.84 $50.31 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2017. Attachment C Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2" $38.88 $62.96 $101.84 2" $58.55 $107.08 $165.63 3" $111.04 $227.75 $338.79 4" $170.10 $364.72 $534.82 6" $334.18 $746.59 $1,080.77 8" $531.05 $1,205.65 $1,736.70 10" $760.72 $1,735.39 $2,496.11 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $2.53 toward the first five units of water when 6-10 $3.95 overall consumption is ten units or less.) 11-22 $5.13 23 or more $7.90 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $3.90 5-9 $5.05 10 or more $7.80 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10" 0-185 $4.17 186-1,400 $4.23 1,401 or more $4.30 10" & larger 0-7,426 $4.17 7,427-14,616 $4.23 14,617 or more $4.30 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $5.68 55-199 $5.74 200 or more $5.81 1.5" & 2" 0-144 $5.68 145-355 $5.74 356 or more $5.81 3" & larger 0-550 $5.68 551-1,200 $5.74 1,201 or more $5.81 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.5.(c)Recycled Water (1)3/4" - 1" 0-32 $4.85 (Landscape Irrigation and Certain 33-75 $4.92 Non-Irrigation Purposes Rates) 76 or more $4.99 1.5" & 2" 0-130 $4.85 131-325 $4.92 326 or more $4.99 3" & 4" 0-440 $4.85 441-1,050 $4.92 1,051 or more $4.99 6" & larger 0-4,000 $4.85 4,001-10,000 $4.92 10,001 or more $4.99 25 25.03 E.6.(c)Recycled Commercial (1)under 10" 0-173 $3.53 174-831 $3.60 832 or more $3.65 10" & larger 0-7,426 $3.53 7,427-14,616 $3.60 14,617 or more $3.65 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (1)3/4" - 1" 0-32 $9.70 33-75 $9.84 76 or more $9.98 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (continued) (1)1.5" & 2" 0-130 $9.70 131-325 $9.84 326 or more $9.98 3" & 4" 0-440 $9.70 441-1,050 $9.84 1,051 or more $9.98 6" & larger 0-4,000 $9.70 4,001-10,000 $9.84 10,001 or more $9.98 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $20.77 more than 4" $27.98 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.41 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.044 25 25.04 A. Deposits for Non-Property Owners 3/4" $75.00 1" $150.00 1-1/2" $200.00 (1) All Water used in December and billed in January 2017. Section #Code #Fee Description Meter Size Charges 25 25.04 A. Deposits for Non-Property Owner (continued)2" $360.00 3" $800.00 4" $1,350.00 6" $3,300.00 8" $4,400.00 10" $5,500.00 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $8,569.52 1" $21,423.80 1-1/2" $42,847.60 2" $68,556.16 3" $137,112.32 4 $214,238.00 6" $428,476.00 8" $685,561.60 10" $985,494.80 - TRIAD 3/4" $6,429.28 1" $16,073.20 1 -1/2" $32,146.40 2" $51,434.24 3" $102,868.48 4 $160,732.00 6" $321,464.00 8" $514,342.40 10" $739,367.20 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $1,061.53 1" $2,653.83 1-1/2" $5,307.65 2" $8,492.24 3" $16,984.48 4" $26,538.25 6" $53,076.50 8" $84,922.40 10" $122,075.95 Section #Code #Fee Description Meter Size Charges 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" $219.55 $104.19 $323.74 $88.20 3/4" x 9" $233.76 $104.19 $337.95 $88.20 1" $283.32 $104.19 $387.51 $88.20 1.5" $460.50 $104.19 $564.69 $199.96 2" $659.85 $104.19 $764.04 $199.96 3" $2,056.35 $627.30 $2,683.65 $3,566.92 4" $3,571.54 $627.30 $4,198.84 $3,566.92 6" $6,169.03 $990.87 $7,159.90 $3,566.92 8" $7,707.74 $1,519.41 $9,227.15 $5,117.00 10" $11,085.17 $1,519.41 $12,604.58 $5,117.00 - Potable/Recycled Irrigation 3/4" x 7.5" $219.55 $104.19 $323.74 $224.79 3/4" x 9" $233.76 $104.19 $337.95 $224.79 1" $283.32 $104.19 $387.51 $224.79 1.5" $460.50 $104.19 $564.69 $224.79 2" $659.85 $104.19 $764.04 $224.79 3" $1,423.20 $627.30 $2,050.50 $3,566.92 4" $2,770.75 $627.30 $3,398.05 $3,566.92 6" $4,988.25 $990.87 $5,979.12 $3,566.92 8" $6,645.24 $1,519.41 $8,164.65 $5,117.00 10" $9,430.10 $1,519.41 $10,949.51 $5,117.00 - Combined Fire and Domestic 4" $8,497.02 $627.30 $9,124.32 $3,566.92 6" $11,308.80 $990.87 $12,299.67 $3,566.92 8" $16,442.17 $1,519.41 $17,961.58 $5,117.00 10" $22,438.13 $1,519.41 $23,957.54 $5,117.00 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4" $156.85 1" $184.78 1-1/2" $379.62 2" $2,046.00 4" $1,986.00 6" $2,465.00 Section #Code #Fee Description Meter Size Charges 31 31.03 A.1. Requirement of Deposit for Temporary Meters (continued) - 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 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 per EDU for parcels within a Sewer ID $4,392.09 53 53.03 A.2. Sewer Capacity Fee per EDU for parcels not within a Sewer ID $6,869.35 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 (2) Sewer billed beginning January 1, 2017. Section #Code #Fee Description Meter Size Charges 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.58 53 53.10 Residential Sewer System Fee (2)5/8", 3/4" & larger $15.89 53 53.10 A. Residential Sewer Without Consumption History (2)5/8", 3/4" & larger $40.01 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $24.12 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.58 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75" $28.37 1" $41.80 1.5" $75.27 2" $115.46 3" $209.24 4" $343.23 6" $678.18 8" $1,080.14 10" $1,549.07 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2)Rate multiplied by Low Strength $2.58 annual avg.Medium Strength $3.70 units High Strength $5.90 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75" $28.37 1" $41.80 1.5" $75.27 2" $115.46 3" $209.24 (2) Sewer billed beginning January 1, 2017. Section #Code #Fee Description Meter Size Charges 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2) (continued)4" $343.23 6" $678.18 8" $1,080.14 10" $1,549.07 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. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Section #Code #Fee Description Meter Size Charges State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25, & 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 4, 14, & 18 Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter 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. 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 34-4 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. 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 G.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. 34-5 (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, 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 34-6 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 G.3. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2017 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Adolfo Segura Chief, Administrative & IT Services APPROVED BY: German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: FY17 MID-YEAR 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 mid-year status report on the District’s Fiscal Year (FY) 15-18 Strategic Performance Plan for FY17. ANALYSIS: Summary: The current Otay Water District Strategic Plan is a four-year plan covering FY15 through the end of FY18. This report details the results from the first half of the third year of our four-year plan. Strategic Plan Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is making the appropriate high-level changes necessary to guide the agency’s efforts to meet new challenges and positively adapt to change. Objective results for FY17 mid-year are above target at 93%, with 27 of 29 active items complete or on schedule. There are two additional 2 objectives, however, they were not added to the target formula given that they are inactive or “on hold”. 27/29 (93%) of Strategic Objectives Meet or Exceed Expectations Following are objectives reported to be behind schedule. These projects have been delayed due to workload priorities, however, we expect they will be back on schedule in the third quarter. Performance Measures – Target 75% Performance measures are designed to track the District’s day-to-day performance. These items measure the effectiveness and efficiency of daily operations. The goal for performance measures is to achieve an overall result of at least 75% “on target”. FY17 year-to-date results of active measures remain above target with 34 of 39 (87%) items achieving the desired level or better. There are four additional items, Injury Incident Rate, Debt Ratio, Reserve Levels, and Accounts per FTE, which will be added and measured at year’s end. Most of the performance measures are unchanged from FY16. Staff will strive to keep many measures the same in order to establish long term trends on important measures. 34 of 39 (87%) YTD Performance Measures Are On or Above Target 3 Item Not On Target The performance measures that are not on target are the following: Project Closeout Time: Contractor acceptance of 711-1 and 711-2 Reservoir Interior/Exterior Coating Project was delayed due to contractor completion of punch list items. Overtime Expenses: Year-to-date expenses exceeded the budget at $68,523 versus $61,200 due to a number of after-hours water breaks. Although over budget for the quarter, the District is still below its yearly total overtime budget of $123,900. Direct Cost of Treatment per MGD: The Reclamation Plant was not in service from September 2016 – January 2017 for scheduled repairs and inspections. Although there was no effluent flow production, there were still costs for repairs and replacements. Sewer Overflow Rate (AWWA): Staff responded to a sanitary sewer overflow on November 13, 2016 near Fair Glen Road in Rancho San Diego. Staff immediately worked to assess and mitigate the issue by clearing the blockage. The blockage was a result of root overgrowth inside a sewer manhole. Main Flushing and Fire Hydrant Maintenance: Proactive flushing was suspended due to the drought. The only flushing performed was requested by Water Systems Operators to maintain water quality. Due to the latest rainfall, staff will be in engaging on proactive flushing in the upcoming quarter. AWWA Benchmarking Perspective Although AWWA has begun to use “time” as an indicator for calculating benchmarks and metrics, the District will continue to use “cost” for its operational benchmarks. Staff will evaluate the “time” perspective as an option for future reporting. Committee Reports – Slideshow (Attachment B) The Strategic Plan results are presented to both the Finance and Administration Committee and the Engineering and Operations Committee with a specific focus on the most relevant information for each Committee. Strategic Plan is Available on the District’s Website and via VPN All of the Strategic Plan results and associated details are provided via the District’s public facing website and through secure remote or VPN access. 4 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 – Strategic Plan FY17 Mid-Year Report PowerPoint Presentation 5 ATTACHMENT A SUBJECT/PROJECT: FY17 MID-YEAR REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on February 15, 2017. 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 STRATEGIC PLAN FY17 MID-YEAR REPORT Attachment B 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 third-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.During FY17,staff continues to execute the completion of targeted projects and evaluate the potential to further streamline work-group processes and elevate performance metrics if warranted.Additional improvements to our Asset Management program will also be addressed via a recently developed multi-year strategic SCADA roadmap and a planned update to our decision analysis CIP management framework. 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 93% are Completed or On Schedule 0 5 10 15 20 25 Completed On Schedule Behind On Hold 4 23 2 2 Completed On Schedule Behind On Hold Objective Report 31 Total 7 COMPLETED Objectives 1.Address Dependency of Imported Water 2.Sewer System Business Evaluation 3.Evaluate the Viability of Implementing an Indirect Potable Reuse Program 4.Evaluate Efficiencies for Delivering Capital Assets 8 ON HOLD Objectives 1.Evaluate Requirements for Future Emergency Communication System 2.Implement a Habitat Conservation Plan that will Streamline O&M within District Easements 9Objectives 1.Optimize SCADA Program 2.Streamline Input of Operations Data BEHIND SCHEDULE 10Performance Measures 87% On Target Measure Report 43 Total 0 5 10 15 20 25 30 35 Completed On Target Not on Target On Hold Annual Measure 0 34 5 0 4 Completed On Target Not on Target On Hold Annual Measure 11Performance Measures 1.Project Closeout Time 2.Overtime Percentage 3.Direct Cost of Treatment per MGD 4.Sewer Overflow Rate 5.Main Flushing and Fire Hydrant Maintenance NOT ON TARGET 12 Mid-Year Results Administrative Services 13Gallons Per Capita Per Day Target: Below 172 gallons per day (Target comes from California Urban Water Control Council & the State Water Resources Control Board) Measurement Method QTR: Total potable water purchased/Population (from SANDAG)/Number of days through the end of the quarter YTD: Total annual potable water purchased/Annual population estimate from SANDAG/Number of days through the end of the quarter 135.5 107.2 121.3 172 172 172 172 172 0 20 40 60 80 100 120 140 160 180 200 Q1 Q2 Q3 Q4 YTD Result Target 14Enterprise Technology Services Availability Target: No less than 99.5%availability per quarter in a year 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 98 98.2 98.4 98.6 98.8 99 99.2 99.4 99.6 Q1 Q2 Q3 Q4 AVG Result Target Measurement Method Annual Average:99.5% = 3.60 hours of downtime per month/1.83 days of downtime in a year 15Employee Turnover Rate Target: Less than 5%turnover in a year 0 0 0 5 5 5 5 5 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 YTD Result Target QTR:# of voluntary resignations (not including retirements)/average # of employees Measurement Method YTD:YTD # of voluntary resignations (not including retirements)/average # of employees No turnovers in Q1 & Q2 16Training Hours Per Employee Target: 12 hours or more general formal training per employee in a year (excludes safety training) 6.35 6.55 12.85 3 3 3 3 12 0 2 4 6 8 10 12 14 Q1 Q2 Q3 Q4 YTD/AVG Result Target Measurement Method QTR:Total qualified training hours for all employees/average # of FTEs YTD:YTD Total qualified training hours for all employees/Average # of FTEs 17Safety Training Program Target: 24 hours or more safety training per field employee in a year 6.64 6.75 13.396666 24 0 5 10 15 20 25 30 Q1 Q2 Q3 Q4 YTD/AVG Result Target Measurement Method QTR:# of safety training hours for the quarter/ # of field employees YTD:YTD Total qualified safety training hours for field employees/average # of field employees 18 Engineering 19CIP 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 Measurement Method OTR:Actual quarterly expenditures/Annual budget YTD:YTD expenditures/Annual budget 18.9 19.8 38.715 21 29 35 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target 20Construction Change Order Incidence (w/o allowances) Target: No more than 5%per quarter in a year 1.2 2.1 2.1 5 5 5 5 5 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 YTD Result Target *QTR and YTD result are the life to dare change order rates for all active projects in FY17 Measurement Method Total cost of Change Orders (not including allowances)/Total original construction contract amount (not including allowances) 21 Mark-Out Accuracy Target: No less than 100%mark-out accuracy per quarter in a year 100 100 100 100 100 100 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target Measurement Method # 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 22Project Closeout Time Target: No more than a 45 day average per quarter in a year 0 48.5 48.5 45 45 45 45 45 0 10 20 30 40 50 60 Q1 Q2 Q3 Q4 YTD Result Target Measurement Method QTR:# of days between NOSC and NOC for all construction projects within the quarter/# of construction projects within the quarter YTD:YTD # of days between NOSC and NOC for all construction projects within the quarter/YTD # of construction projects within the quarter 23Annual Recycled Water Site Inspections Target: 100%of recycled sites inspected in a year (There are 147 recycled water use sites scheduled for FY17) Measurement Method Cumulative % of recycled sites inspected per quarter of those required by DEH 31.2 58.5 58.525 50 75 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target 24Recycled Water Shutdown Testing Target: No less than 90%of recycled site shut down tests in a year (There are 45 recycled water use sites due for shutdown in FY17) Measurement Method Cumulative % of recycled site shutdown tests performed per year compared to those scheduled 24 51 5122.5 45 67.5 90 90 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 YTD Result Target 25 Finance 26 Measurement Method QTR:# of all calls answered/ # of all calls received during a quarter YTD:YTD # of all calls answered/ YTD # of all calls received Answer Rate Target: No less than 97%average answer rate per quarter in a year 98.09 98.19 98.14 97 97 97 97 97 95 95.5 96 96.5 97 97.5 98 98.5 Q1 Q2 Q3 Q4 YTD Result Target 27 Measurement Method QTR:Total operations O&M costs/ # of accounts YTD:YTD total operations O&M costs/ # of accounts O&M Cost Per Account Target: Less than $540.00 per account in a single year (Target is based on Operating Budget) 117 137 254 120 141 140 139 540 100 150 200 250 300 350 400 450 500 550 Q1 Q2 Q3 Q4 YTD Result Target 28 Measurement Method QTR:# of correct bills during the reporting period/ # of total bills during the reporting period YTD:YTD # of correct bills during the reporting period/ YTD # of total bills during the reporting period Billing Accuracy Target: No less than 99.8%billing accuracy per quarter in a year 99.99 99.99 99.99 99.8 99.8 99.8 99.8 99.8 98 98.5 99 99.5 100 100.5 Q1 Q2 Q3 Q4 YTD Result Target 29Overtime Percentage Target: Less than 100%of budgeted overtime per quarter in a year (Target is based on Operating Budget; FY16 Overtime Budget is $94,100) Measurement Method QTR: Actual overtime costs (including comp time)/ Budgeted overtime costs YTD:YTD actual overtime costs (including comp time)/ YTD budgeted overtime costs 97.64 124 112 100 100 100 100 100 0 20 40 60 80 100 120 140 160 Q1 Q2 Q3 Q4 YTD Result Target 30Sewer Rate Ranking Target: Bottom 50 percentile for the 28 sewer service providers in San Diego (Otay ranks 7 out of 28 sewer service providers) Measurement Method Otay ranking for the average bill for sewer/ # of sewer agencies 7 7 14 14 0 5 10 15 20 25 Q1 YTD Result Target 31Water Rate Ranking Target: Bottom 50 percentile for the 22 member agencies in San Diego (Otay ranks 11 out of 22 member agencies) Measurement Method Otay ranking for the average water bill among CWA member agencies 11 11 11 11 0 5 10 15 20 Q1 YTD Target Result 32Percent of Customers Paying Bills Electronically Target: In development (No set targets in FY17; a baseline will be established in FY16 & 17 and appropriate targets will be recommended for the FY18 Strategic Plan) Measurement Method YTD:YTD # of customers paying bills electronically/ Total # of customers QTR:# of customers paying bills electronically/ Total # of customers 75.14 75.64 75.39 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 YTD Result Target 33Distribution System Loss Target: Less than 5%of unaccounted water loss per quarter in a year Measurement Method 100 [volume purchased (from CWA) –(volume sold (to customers) + volume used District usage)] / volume purchased (from CWA)) 4.3 4 4 5 5 5 5 5 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Result Target 34 Operations 35Technical Quality Complaint (AWWA) Target: No more than 9 complaints per 1000 customer accounts in a year Measurement Method QTR:1000 (# of technical quality complaints per quarter)/# of active customer accounts per reporting period YTD:1000 (YTD # of technical quality complaints per year)/ # of active customer accounts per reporting period) 1.15 0.81 1.96 8.4 2.25 2.25 2.25 2.25 9 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Result AWWA Target 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 Measurement Method Total planned maintenance cost/ Total maintenance cost 72 71 75 66 66 66 66 66 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 YTD Result Target 37 Measurement Method 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 59 97.1 84.7 70 70 70 70 70 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target 38Planned Wastewater Maintenance Ratio in $ Target: 77% or greater of all labor dollars spent on preventative maintenance per quarter in a year Measurement Method Total planned maintenance cost/Total maintenance cost 88.95 89.75 89.44 77 77 77 77 77 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 YTD Result Target 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) Measurement Method Total O&M costs directly attributable to sewer treatment/ Total volume in MG 951.88 0 1167.7 900 1200 1200 900 1050 0 200 400 600 800 1000 1200 1400 Q1 Q2 Q3 Q4 YTD Result Target *Treatment Plant not in service in Q2r 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) Measurement Method QTR:Total O&M cost/ MGP FYTD O&M Cost = (Power Cost) + (Staff Cost) + (Equipment Cost) / FYTP MGP YTD:FYTD O&M Cost MGP/ FYTD Total MGP 1098.14 0 1572.95 1550 2100 2100 1550 1925 0 500 1000 1500 2000 2500 Q1 Q2 Q3 Q4 YTD Result Target *Treatment Plant not in service in Q2r 41Percent of PMs Completed –Fleet Maintenance Target: No less than 90%of scheduled PM’s completed per quarter in a year Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed 100 100 100 90 90 90 90 90 0 20 40 60 80 100 Q1 Q2 Q3 Q4 Annual Result Target 42Percent of PMs Completed –Reclamation Plant 97 98 97 90 90 90 90 90 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 YTD Result Target Target: No less than 90%of scheduled PM’s completed per quarter in a year Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period 43Percent of PMs Completed –Pump/Electric Section 100 100 100 90 90 90 90 90 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 YTD Result Target Target: No less than 90%of scheduled PM’s completed per quarter in a year Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period 44System Valve Exercising Program Target: Exercise 770 valves per quarter or 3080 valves by the end of fiscal year Measurement Method Actual number of valves exercised in the reporting period 793 787 1580770770770770 3080 0 500 1000 1500 2000 2500 3000 3500 Q1 Q2 Q3 Q4 YTD Result Target 45Potable Water Distribution System Integrity Target: No more than 16 leaks and breaks per 100 miles of distribution piping in a year Measurement Method 100 (annual total number of leaks + annual total number of breaks) / total miles of distribution piping 2.4 2.97 5.38 4 4 4 4 16 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 YTD Result Target 46Potable Water Compliance Rate (AWWA) Target: No less than 100%of all health related drinking water standards each quarter in a year Measurement Method 100 (# of days the primary health regulations are met)/ # of days in the reporting period 100 100 100 100 100 100 100 100 100 50 60 70 80 90 100 110 Q1 Q2 Q3 Q4 YTD Result AWWA Target 47Collection System Integrity (AWWA) Target: No more than 3.6 system failures per 100 miles of collection system pipeline in a year Measurement Method QTR:100 (total number of collection system failures during the year) / total miles of collection system piping YTD:Cumulative number of failures per quarter in a FY 0 1 1 1.20.9 0.9 0.9 0.9 3.6 0 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 YTD Result AWWA Target 48Recycled Water System Integrity Target: No more than 6.6 leaks or breaks per 100 miles of recycled distribution system in a year Measurement Method (100 x # of leaks or breaks)/ # of miles of distribution system 0 0 0 1.65 1.65 1.65 1.65 6.6 0 1 2 3 4 5 6 7 Q1 Q2 Q3 Q4 YTD Result Target 49Sewer Overflow Rate (AWWA) Target: 0 overflows per quarter in a year Measurement Method QTR:100 (total number of sewer overflows during the reporting period) / total miles of pipe in the sewage collection system 0 1 0 0 0 1.2 0 0 0 0 00 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 YTD Result AWWA Target YTD:Cumulative number of overflows per quarter in a FY 50Emergency Facility Power Testing Target: 100%of the District’s facilities tested per year (The District currently has 29 powered ready facilities) Measurement Method Number of facilities tested / total facilities 34 55 55 31 48 75 100 100 0 20 40 60 80 100 Q1 Q2 Q3 Q4 YTD Result Target 51Tank Inspection and Cleaning Annual Target: Clean and inspect 8 tanks or more per year Measurement Method Number of tanks cleaned and inspected 4 3 7 8 8 8 8 8 0 2 4 6 8 10 12 14 Q1 Q2 Q3 Q4 YTD Result Target 52Main 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) Measurement Method Number of mains flushed and hydrants maintained 11 34 45 54 54 54 54 215 0 50 100 150 200 250 Q1 Q2 Q3 Q4 YTD Result Target 53Critical Valve Exercising Target: Exercise 631 identified critical valves in a year Measurement Method Number of critical valves exercised in a reporting period 585 46 631 631 631 631 631 631 0 100 200 300 400 500 600 700 800 900 1000 Q1 Q2 Q3 Q4 YTD Result Target 54 Next Steps 55 1 Continue to Monitor Deliverables from Project Plans Utilize Updated Systems to Collect Performance Data Begin to Analyze Performance-Based Data Set New Targets Based on Data Collected 2 3 4