Loading...
HomeMy WebLinkAbout07-19-17 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 July 19, 2017 9:00 A.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. APPROVE THE DISTRICT’S ANTENNA SITE FACILITY SUBLEASE ADDENDUM NO. 5 WITH IWG TOWERS ASSETS II IN THE AMOUNT OF $110,964.00 FOR FIVE (5) YEARS (VACLAVEK) [5 minutes] 4. APPROVE A ONE-YEAR AGREEMENT, PLUS FIVE (5) ONE-YEAR OPTIONS, WITH CONCORD UTILITY SERVICES, INC. FOR MASTER METER REGISTER AND METER CHANGE OUTS IN AN AMOUNT NOT-TO-EXCEED $1,303,116.84 (CAREY) [5 minutes] 5. APPROVE AN AMENDMENT TO THE DISTRICT’S PURCHASING MANUAL SECTION 2, “ORGANIZATION”; SECTION 7.2.8, “BOARD AUTHORIZED PURCHASES EXCEEDING THE GENERAL MANAGER’S AUTHORITY”; AND, SECTION 9, “AUTHORIZATION TO PURCHASE – SIGNATORY AUTHORITY” TO RECOGNIZE THE DISTRICT’S CURRENT ORGANIZATIONAL STRUCTURE AND TO ADD ITEMS TO BOARD AUTHORIZED PURCHASES EXCEEDING THE GENERAL MANAGER’S AUTHORITY (PAYNE) [5 minutes] 6. CONSIDER CASTING THE DISTRICT’S VOTE TO ELECT A REPRESENTATIVE TO THE CALIFORNIA SPECIAL DISTRICTS ASSOCIATION BOARD OF DIRECTORS, REGION 6, SEAT C (WATTON) [5 minutes] 2 7. CONSIDER THE CANDIDATES FOR THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY’S BOARD OF DIRECTORS ELECTION AND CAST THE DISTRICT’S VOTE BY ELECTING UP TO FOUR (4) CANDIDATES AND ADOPTING RESOLUTION NO. 4339 (SEGURA) [5 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 July 14, 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 July 14, 2017. ______/s/_ Susan Cruz, District Secretary _____ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 2, 2017 SUBMITTED BY: Jake Vaclavek, System Operations Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Pedro Porras, Chief of Water Operations Joseph Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: ANTENNA LEASE SITE ADDENDUM NO. 5 GENERAL MANAGER’S RECOMMENDATION: That the Board approve the District’s Antenna Site Facility Sublease Addendum No. 5 with IWG Towers Assets II in the amount of $110,964.00 for five years. COMMITTEE ACTION: Please see “Attachment A.” PURPOSE: That the Board approve the District’s Antenna Site Facility Sublease Addendum No. 5 with IWG Towers Assets II in the amount of $110,964.00. ANALYSIS: The District’s two-way radio system is used as a redundant method of verbal communication. In order to reach all District facilities, the two-way radio system requires the use of a repeater antenna located on Mount Miguel. The District has had a sublease for the repeater antenna since 1994. For many years the District has had addendums to the Agreement sublease. These fees have always been under the General Manager (GM) and/or his/her designee’s signing authority; however, the cumulative amount of this 5-year addendum exceeds the GM and/or 2 his/her designee’s authority. Below is a table showing the proposed five-year addendum amounts. Date: Amount per Month No. of Months Total Annual Amount July 1, 2017 $1,673.00 12 $20,076.00 July 1, 2018 $1,757.00 12 $21,084.00 July 1, 2019 $1,845.00 12 $22,140.00 July 1, 2020 $1,938.00 12 $23,256.00 July 1, 2021 $2,034.00 12 $24,408.00 5-year Total: $110,964.00 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The first year of the five-year addendum totals $20,076.00, which has been budgeted for in the FY 2018 budget. The subsequent years will be allocated in future budgets. STRATEGIC GOAL: The District ensures its continued financial health through sound policies and procedures. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action ATTACHMENT A SUBJECT/PROJECT: ANTENNA LEASE SITE ADDENDUM NO. 5 COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on July 19, 2017 and the following comments were made: 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: August 2, 2017 SUBMITTED BY: Andrea Carey Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Authorize a One-Year Agreement, plus Five (5) One-Year Options, with Concord Utility Services, Inc. for Master Meter Register and Meter Change Outs GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to enter into a one-year agreement, plus five (5) one-year options, with Concord Utility Services, Inc. for Master Meter register and meter change outs at a not-to-exceed total amount of $1,303,116.84. The projected annual fees are as follows: Fiscal Year Annual Fee 2018 $279,602.00 2019 - Option 1 $255,034.40 2020 - Option 2 $279,046.45 2021 - Option 3 $146,174.96 2022 - Option 4 $186,587.77 2023 - Option 5 $156,671.26 Contract Total $1,303,116.84 COMMITTEE ACTION: See Attachment A. PURPOSE: That the Board authorize the General Manager to enter into a one-year agreement, plus five (5) one-year options, with Concord Utility Services, Inc. for Master Meter register and meter change outs at a not-to-exceed total amount of $1,303,116.84. ANALYSIS: A seven year Capital Improvement Project is currently underway to replace the District’s aging AMR registers with brand new Master Meter AMR registers. In addition, meters with high usage and all 1.5” and 2” meters will be changed out during this project. The estimated number of change outs per year is as follows: Fiscal Year Register Change Outs Full Meter Change Outs 2018 6,000 1,160 2019 6,500 905 2020 6,000 1,075 2021 6,500 350 2022 6,500 475 2023 6,500 255 Staff issued a bid request through its online solicitation portal, BidSync. The District received four responses and all were evaluated on the company’s qualifications, references and price. Company Total Price Concord Utility Services, Inc. $1,303,116.84 Professional Meters, Inc. $1,967,927.50 Pacific Meter Services, Inc. $1,981,216.25 Falcon Construction Company $3,811,274.00 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 performed the 2017 AMR change outs for the District and staff was very pleased with their performance. Concord finished the project ahead of schedule and was very detailed in its daily correspondence with the District. Their work management system allowed all data to be submitted to the District electronically which greatly reduced the time internal staff had to work on the project. In addition, Concord has been extremely responsive to all issues and staff is very confident in Concord’s ability to manage future change outs. Staff anticipates beginning the FY2018 change outs in late August or early September, with half of the planned meters and completing the remaining change outs in early spring. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds for these services are available in the authorized AMR change out CIP project budget. STRATEGIC GOAL: Improve and streamline meter related processes. LEGAL IMPACT: None. Attachments: Attachment A - Committee Action ATTACHMENT A SUBJECT/PROJECT: Authorize a One-Year Agreement, plus Five (5) One-Year Options, with Concord Utility Services, Inc. for Master Meter Register and Meter Change Outs COMMITTEE ACTION: The Finance, Administration and Communications Committee recommend that the Board authorize the General Manager to enter into a one-year agreement, plus five (5) one-year options, with Concord Utility Services, Inc. for Master Meter register and meter change outs at a not-to-exceed total amount of $1,303,116.84. 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: August 2, 2017 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Kent Payne Purchasing and Facilities Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services Mark Watton, General Manager SUBJECT: AMEND THE DISTRICT'S PURCHASING MANUAL TO RECOGNIZE THE DISTRICT’S CURRENT ORGANIZATIONAL STRUCTURE AND TO ADD ITEMS TO BOARD AUTHORIZED PURCHASES EXCEEDING THE GENERAL MANAGER’S AUTHORITY GENERAL MANAGER’S RECOMMENDATION: That the Board approve an amendment to the District’s Purchasing Manual Section 2, “Organization”; Section 7.2.8, “Board Authorized Purchases Exceeding the General Manager’s Authority”; and, Section 9, “Authorization to Purchase – Signatory Authority” in order to codify organizational reporting responsibilities and to streamline the procurement of annual service and maintenance agreements for Board adopted technologies, infrastructure and services. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To request that the Board amend the District’s Purchasing Manual (see “Attachment B”) in order codify organizational reporting responsibilities and to streamline the procurement of annual service and maintenance agreements for Board adopted technologies, infrastructure and services. 2 ANALYSIS: The Board of Directors establishes the operational guidelines and procedures with respect to purchasing materials, equipment, and services necessary to conduct the District’s business. These procedures are defined and published in the District’s Purchasing Manual. As a normal course of business, the manual is reviewed periodically and changes are recommended that are intended to improve the operation of the District including updating the reporting structure and identifying items that the General Manager (GM) is authorized to purchase which exceed his/her delegated purchasing authority. Section 2, “Organization” & Section 9, “Authorization to Purchase – Signatory Authority” To reflect the elimination of the Assistant General Manager position, it is recommended that Section 2, “Organization”, and Section 9, “Authorization to Purchase – Signatory Authority”, be amended as presented in “Attachment B”. Section 7.2.8, “Board Authorized Purchases Exceeding the General Manager’s Authority” Section 7.2.8 identifies a list of goods and services central to the operation of the District and authorizes the GM to purchase these goods and services which are above the GM’s purchasing authority. Items include utilities, water, temporary labor, fuel, chemicals and gasses, among others. Special District Risk Management Authority (SDRMA) It is recommended that subsection “a” line item “7” be amended to include all services provided by SDRMA, including but not limited to, property liability insurance as identified in “Attachment B”. Board Adopted Technologies and Infrastructure The Board has adopted various technologies and infrastructure such as Eden, a Tyler Technologies ERP system, and ESRI’s GIS technologies. In that both have unique, territorial, and/or proprietary service and maintenance options, the purchase of annual service and maintenance agreements has been included under this section 7.2.8. Likewise, Cityworks®, the District’s enterprise work and asset management system is a Board adopted technology with unique and proprietary service and maintenance options. It is therefore recommended that Cityworks® be added to Section 7.2.8, subsection “a” as identified in “Attachment B” along with similar Board adopted 3 technologies, infrastructure or services where service and maintenance options are limited, territorial and/or proprietary. Mount Miguel Antenna Site Lease Agreement and Addendums Since 1994, the District has maintained a sublease for a repeater antenna located on Mount Miguel, for use of the District’s field and emergency two-way radio system. Given its unique location, retransmission from this area allows radio voice traffic to reach all areas of the District. In that each 5-year lease addendum exceeds the GM’s authority, it is recommended that Mount Miguel Antenna Site Lease Agreement and Addendums be added to Section 7.2.8, subsection “a” as identified in “Attachment B”. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Supports the District’s goal to ensure financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Report Attachment B – Proposed Sections 2, 7.2.8, and 9 ATTACHMENT A SUBJECT/PROJECT: AMEND THE DISTRICT'S PURCHASING MANUAL TO RECOGNIZE THE DISTRICT’S CURRENT ORGANIZATIONAL STRUCTURE AND TO ADD ITEMS TO BOARD AUTHORIZED PURCHASES EXCEEDING THE GENERAL MANAGER’S AUTHORITY COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on July 19, 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. ATTACHMENT B SUBJECT/PROJECT: AMEND THE DISTRICT'S PURCHASING MANUAL TO RECOGNIZE THE DISTRICT’S CURRENT ORGANIZATIONAL STRUCTURE AND TO ADD ITEMS TO BOARD AUTHORIZED PURCHASES EXCEEDING THE GENERAL MANAGER’S AUTHORITY RECOMMENDED CHANGES: 2.1 STATEMENT: The Purchasing and Facilities Manager directs the Purchasing and Facilities Division. The Purchasing and Facilities Manager reports to the Chief of Administrative Services, who in turn reports to the Assistant General Manager, who in turn reports to the General Manager. The General Manager reports to the Board of Directors. 2.2 RESPONSIBILITIES: Board of Directors | General Manager | Assistant General Manager | Chief of Administrative Services | Purchasing and Facilities Manager 2.2.1 Board of Directors – Ultimate authority regarding the purchasing policies, practices and guidelines of the District rests with the Board of Directors. It is the Board’s responsibility to establish policy and direction regarding purchasing functions in accordance with the District’s Code of Ordinances. 2.2.2 General Manager – The General Manager is responsible, in accordance with the District’s Code of Ordinances, for ensuring that the District complies with Board direction regarding the purchasing function. 2.2.3 Assistant General Manager – It is the Assistant General Manager’s responsibility to oversee and administer all District Departments and to insure that the directions of the General Manager are carried out. 2.2.4 Chief of Administrative Services – It is the Chief’s responsibility to administer the District’s Purchasing and Facilities Division as directed by the Assistant General Manager. 7.2.8 Board Authorized Purchases Exceeding the General Manager’s Authority: a. The General Manager or his/her Designee is authorized to exceed his/her delegated purchasing authority under Section 2 of the Code of Ordinance and purchase the following goods and services without Board approval so long as the overall Board Approved District Budget for Labor and Benefits, Materials and Maintenance and Administrative expenses is not exceeded: 1. Temporary labor servicesGas and electric utility for the operation of the District 2. Fuel, gasoline and dieselWater 3. Sewage Transportation and ProcessingTemporary labor services 4. Water Meters Chemicals and gasses for the treatment of potable and recycled water 5. Service and maintenance of the District’s Board adopted sole source Enterprise Resource Planning (ERP) System, Tyler EdenFuel, gasoline, and diesel 6. Service and maintenance of the District’s Board adopted sole source Geographic Information System, Environmental Systems Research Institute (ESRI)/GIS Sewage Transportation and processing 7. Medical Service Benefits, Property Liability Insurance and other products and services as provided by Special District Risk Management Authority (SDRMA) Water Meters 8. Regulatory FeesService and maintenance of the District’s Board adopted sole source Enterprise Resource Planning (ERP) System, Tyler Eden 9. Service and maintenance of the District’s Board adopted sole source Cityworks® work and asset management systemService and maintenance of the District’s Board adopted sole source Geographic Information System, Environmental Systems Research Insitute (ESRI)/GIS 10. Service and maintenance of other Board adopted sole and single source enterprise systems, infrastructure and servicesMedical Service Benefits provided by Special District Risk Management (SDRMA) 11. Mount Miguel Antenna Site Lease Agreement and Addendums Section 9 – Authorization to Purchase – Signatory Authority 9.0 PURPOSE: To provide guidelines and protocol for establishing signatory authority for the approval of purchases within the Otay Water District. 9.1 GENERAL: The Board of Directors of the District has sole signatory (ability to sign contracts and approve purchases) authority within the Otay Water District. The Board may, at a regularly scheduled board meeting, establish signatory authorization limit(s) for the General Manager as defined in the District’s Code of Ordinances, Section 2.01c-e. The General Manager at his/her discretion may delegate his/her signatory authority, as he/she deems necessary. Other than as identified in Section 7.2.8 of this Manual, “Board Authorized Purchases Exceeding the General Managers Authority”, delegated authorization limits may not exceed those established by the Board for the General Manager. Delegated authorization must be documented in the form of a memorandum, signed by the General Manager. Included in the memorandum must be a listing of individuals and/or job classification to whom signatory and purchase approval authority has been delegated and the maximum dollar value(s) of said authority. Copies of the memorandum shall be provided to the District’s senior management team and to the Purchasing and Facilities Manager. The General Manager at his/her discretion may allow the Assistant General ManagersDepartment Chiefs to delegate their signatory authority, as they deem necessary within their departments. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 2, 2017 SUBMITTED BY: Mark Watton, General Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Susan Cruz, District Secretary Mark Watton, General Manager SUBJECT: California Special Districts Association (CSDA) Region 6 Board Election GENERAL MANAGER’S RECOMMENDATION: That the Board consider casting a vote to elect a representative to the California Special Districts Association (CSDA) Board of Directors, Region 6, Seat C. PURPOSE: To present for the board’s consideration the ballot to elect a representative to Region 6, Seat C, on CSDA’s Board of Directors. COMMITTEE ACTION: N/A ANALYSIS: CSDA is holding an election to fill Seat C of Region 6 on its Board of Directors. Ms. Arlene Schafer, Costa Mesa Sanitary District, is the current incumbent of Seat C and is seeking re-election. The individual elected will serve a three (3) year term. There are a total of six [6] regions with each region having three seats on the Board. Attached is a copy of the mail-in ballot and the candidates’ Statement of Qualifications. The ballot must be mailed and received by CSDA by 5:00 p.m. on Friday, August 4, 2017. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Participating would support the strategic goal of maintaining effective communications with other cities, special districts, State and Federal governments, community organizations and Mexico. LEGAL IMPACT: None. Attachment A: Committee Action Attachment B: Ballot Attachment C: Candidates’ Statements (5) ATTACHMENT A SUBJECT/PROJECT: California Special Districts Association (CSDA) Region 6 Board Election COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on July 19, 2017 and supported presentation to the full board for consideration. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 2, 2017 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Adolfo Segura Chief, Administrative Services APPROVED BY: Mark Watton, General Manager SUBJECT: ADOPT RESOLUTION NO. 4339 TO ELECT UP TO FOUR (4) CANDIDATES FOR SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY’S (SDRMA) BOARD OF DIRECTORS GENERAL MANAGER’S RECOMMENDATION: That the Board consider and elect candidates for Special District Risk Management Authority’s (SDRMA) Board of Directors election and cast the District’s vote by adopting Resolution No. 4339. COMMITTEE ACTION: See “Attachment A.” PURPOSE: To present for the Board’s consideration, the ballot to elect up to four (4) candidates for the Special District Risk Management Authority’s (SDRMA) Board of Directors. ANALYSIS: SDRMA is holding an election to fill up to four (4) seats on its Board. Presented to the Otay Board in this staff report is each candidate’s qualifications, background, experience, and expertise for their review (Attachment B). In an effort to provide a good balance of representation (based on agencies represented) on SDRMA’s Board, staff recommends that the Otay Board consider and elect the following candidates: Timothy Unruh District Manager, Kern County Cemetery District No.1 Mike Scheafer (Incumbent) President, Costa Mesa Sanitary District David Aranda (Incumbent) General Manager, Mountain Meadows Community Services District Jean Bracy, SDA (Incumbent) Deputy Director - Administration, Mojave Desert Air Quality Management District Attached are statements of qualifications (Attachment B) as submitted by each candidate, along with the official election resolution (Attachment C) and ballot (Attachment D), which SDRMA requires to ensure the integrity of the balloting process. The ballot requests that the District elect up to four (4) candidates when placing its vote. The ballot must be sealed and received by 4:30 pm on Tuesday, August 29, 2017. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Maintain effective communications with other cities, special districts, State and Federal governments, community organizations, and Mexico. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Report Attachment B – Candidates’ Statement of Qualifications Attachment C – Resolution No. 4339 Attachment D – Official 2017 Election Ballot ATTACHMENT A SUBJECT/PROJECT: ADOPT RESOLUTION NO. 4339 TO ELECT UP TO FOUR (4) CANDIDATES FOR SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY’S (SDRMA) BOARD OF DIRECTORS COMMITTEE ACTION: The Finance, Administration and Communications Committee met on July 19, 2017 to review this item. 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.