HomeMy WebLinkAbout08-23-16 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
TUESDAY
August 23, 2016
11:30 A.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-
RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. ADOPT ORDINANCE NO. 557 AMENDING THE APPENDIX OF SECTION 6,
CONFLICT OF INTEREST CODE (COIC), CONTAINED WITHIN THE DISTRICT’S
CODE OF ORDINANCES TO UPDATE THE POSITION TITLES REQUIRED TO FILE
A FORM 700 AND TO INCLUDE LANGUAGE IN SECTION 6.02 WHICH WILL
ALLOW THE GENERAL MANAGER OR HIS DESIGNEE TO DESIGNATE
POSITIONS TO BE INCLUDED IN THE COIC’S APPENDIX AT ANY TIME
BETWEEN THE BIENNIAL REVIEW PERIODS (WATTON) [5 minutes]
4. ADOPT RESOLUTION NO. 4311 TO UPDATE BOARD POLICY NO. 19, SMOKING,
TOBACCO, AND NICOTINE FREE CAMPUS, DUE TO RECENT LEGISLATION
EXPANDING THE WORKPLACE PROHIBITION AGAINST SMOKING INCLUDING
ELECTRONIC CIGARETTES (WILLIAMSON) [5 minutes]
5. RATIFY THE EMERGENCY CONTRACTED WORK PERFORMED BY KIRK PAVING
FOR THE GREENSVIEW DRIVE MAIN BREAK REPAIR (BELL) [5 minutes]
6. ADOPT ORDINANCE NO. 558 AMENDING SUBDIVISION “E” OF SECTION 2.01 OF
THE DISTRICT’S CODE OF ORDINANCES TO ESTABLISH THE GENERAL
MANAGER’S SIGNATORY AUTHORITY AT $125,000 (PAYNE) [5 minutes]
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7. FY16 YEAR-END REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN
(SEGURA) [10 minutes]
8. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Jose Lopez, 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 August 19, 2016 I posted a copy of the foregoing agenda near the reg-
ular meeting place of the Board of Directors of Otay Water District, said time being at least 24
hours in advance of the meeting of the Board of Directors (Government Code Section
§54954.2).
Executed at Spring Valley, California on August 19, 2016.
______/s/_ Susan Cruz, District Secretary _____
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: September 7, 2016
SUBMITTED BY: Mark Watton,
General Manager
W.O./G.F. NO: DIV. NO.
APPROVED BY:
SUBJECT: Adoption of Ordinance No. 557 Amending the Appendix of the
Conflict of Interest Code
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Ordinance No. 557 amending the Appendix of
Section 6, Conflict of Interest Code (COIC), contained within the
District’s Code of Ordinances to update the position titles required
to file a Form 700 and to include language in Section 6.02 which will
allow the General Manager or his designee to designate positions to
be included in the COIC’s Appendix at any time between the biennial
review periods.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To amend the Appendix of Section 6, COIC, contained within the
District’s Code of Ordinances to update the position titles required
to file a Form 700 and to include language that allows the General
Manager or his designee to designate positions to be included in the
COIC’s Appendix at any time between the biennial review periods.
ANALYSIS:
As required by the Political Reform Act (“Act”), staff has conducted
a biennial review of the District’s COIC. The District’s Attorney
has advised that there were no changes in the law which needs to be
addressed in the District’s COIC. However, the District’s Attorney
has suggested that the District include the following paragraph in
Section 6.02 of the COIC should it be determined, between the
biennial review periods, that a new position must be included in the
Appendix’s list of designated Form 700 filers:
“The General Manager or his/her designee shall have the
authority to designate any person holding a position within the
District as a person designated to provide disclosures
regardless of whether or not the position that the person holds
is included in the Appendix if, in the view of the General
Manager or his/her designee, the person has the potential to
make or participate in the making of decisions which may
foreseeably have a material effect on financial interests.”
The District has also made organizational changes that affect the
titles listed in its Conflict of Interest Code. The following titles
no longer exist and are being deleted from the Appendix of the COIC:
Asst. Chief Administrative Services and Information Technology
Chief Information Officer
Water Conservation Manager
Additionally, the titles of Safety and Security Administrator and
Senior Buyer are being changed as follows respectively:
Safety and Security Specialist
Senior Procurement and Contracting Analyst
Ordinance No. 557 is submitted for the Board’s ratification to amend
the Appendix of Section 6 as noted above. A strike-thru copy of the
Appendix is attached to the ordinance for reference.
FISCAL IMPACT:
None.
LEGAL IMPACT:
None.
Attachments:
Attachment A – Committee Notes
Attachment B - Ordinance No. 557
Strike-Thru Copy of the Appendix of Section 6
ATTACHMENT A
SUBJECT/PROJECT:
Adoption of Ordinance No. 557 Amending the Appendix of the
Conflict of Interest Code
COMMITTEE ACTION:
This attachment will be updated with notes from the Finance
Administration and Communications Committee’s discussion at a
meeting to be held on Tuesday, August 23, 2016.
Page 1 of 1
ORDINANCE NO. 557
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT
AMENDING SECTION 6,
CONFLICT OF INTEREST CODE,
OF THE DISTRICT’S CODE OF ORDINANCE
BE IT ORDAINED by the Board of Directors of Otay Water
District that the Appendix of the District’s Conflict of
Interest Code, Section 6 of the Code of Ordinances shall be
amended as per Exhibit 1 (attached).
NOW, THEREFORE, BE IT RESOLVED that the amendments to
Section 6, Conflict of Interest Code, of the District’s Code of
Ordinances shall become effective immediately upon adoption.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a regular meeting duly held this 7th
day of September 2016, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
President
ATTEST:
_____________________________
District Secretary
Attachment B
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DIVISION I DISTRICT ADMINISTRATION
CHAPTER 5 PERSONNEL PRACTICES
SECTION 6 CONFLICT OF INTEREST CODE
6.01 DEFINITIONS
The definitions contained in the Political Reform Act of 1974,
regulations of the Fair Political Practices Commission (2 Cal. Code of
Regs. Sections 18100, et seq.), and any amendments to the Act or
regulations, are incorporated by reference into this conflict of
interest code.
6.02 DESIGNATED EMPLOYEES
The persons holding positions listed in the Appendix are
designated employees. It has been determined that these persons make
or participate in the making of decisions which may foreseeably have a
material effect on financial interests.
The General Manager or his/her designee shall have the authority
to designate any person holding a position within the District as a
person designated to provide disclosures regardless of whether or not
the position that the person holds is included in the Appendix if, in
the view of the General Manager or his/her designee, the person has
the potential to make or participate in the making of decisions which
may foreseeably have a material effect on financial interests.
6.03 DISCLOSURE CATEGORIES
This Code does not establish any disclosure obligation for those
designated employees who are also specified in Government Code Section
87200 if they are designated in this code in that same capacity or if
the geographical jurisdiction of this agency is the same as or is
wholly included within the jurisdiction in which those persons must
report their financial interest pursuant to Article 2 of Chapter 2 of
the Political Reform Act, Government Code Sections 87200, et seq.1 In
addition, this code does not establish any disclosure obligation for
any designated public officials who are designated in a conflict of
interest code for another agency, if all of the following apply:
1 Designated employees who are required to file statements of economic interest under
any other agency’s Conflict of Interest Code or under Article 2 for a different
jurisdiction, may expand their statement of economic interests to cover reportable
interest in both jurisdictions, and file copies of this expanded statement with both
entities in lieu of filing separate and district statements, provided that each copy
of such expanded statement filed in place of an original is signed and verified by
the designated employee as if it were an original. See Government Code Section
81004.
Exhibit 1
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(A) The geographical jurisdiction of this agency is the same as
or is wholly included within the jurisdiction of the other agency;
(B) The disclosure assigned in the code of the other agency is
the same as that required under article 2 of chapter 7 of the
Political Reform Act, Government Code Section 87200; and
(C) The filing officer is the same for both agencies.
Such persons are covered by this Code for disqualification
purposes only. With respect to all other designated employees, the
disclosure categories set forth in the Appendix specify which kinds of
financial interest are reportable. Such a designated employee shall
disclose in his or her statement of economic interest those financial
interests he or she has which are of the kind described in the
disclosure categories to which he or she is assigned in the Appendix.
It has been determined that the financial interests set forth in a
designated employee’s disclosure categories are the kinds of financial
interest which he or she foreseeably can affect materially through the
conduct of his or her office.
6.04 STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING
All officials and employees required to submit a statement of
economic interest (employees in Designated Positions) shall file their
statements with the General Manager, or his or her designee. The
District shall make and retain a copy of all statements filed by
Designated Positions and forward the originals of such statements to
the Executive Office of the Board of Supervisors of San Diego County.
All retained statements, originals or copies shall be available for
public inspection and reproduction. (Cal. Gov’t Code § 81008)2
6.05 STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING
(A) Initial Statements. All designated employees employed by
the agency on the effective date of this code, as originally adopted,
promulgated and approved by the code reviewing body, shall file
statements within 30 days after the effective date of this code.
Thereafter, each person already in a position when it is designated by
an amendment to this code shall file an initial statement within 30
days after the effective date of the amendment.
(B) Assuming Office Statements. All persons assuming designated
positions after the effective date of this code shall file statements
within 30 days after assuming the designated positions, or if subject
2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the
duties of filing officers and persons in agencies who make and retain copies of
statements and forward the originals to the filing officer.
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to State Senate confirmation, 30 days after being nominated or
appointed.
(C) Annual Statements. All designated employees shall file
statements no later than April 1.
(D) Leaving Office Statements. All persons who leave designated
positions shall file statements within 30 days after leaving office.
6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE
Any person who resigns within 12 months of initial appointment,
or within 30 days of the date of notice provided by the filing officer
to file an assuming office statement, is not deemed to have assumed
office or left office, provided he or she did not make or participate
in the making of, or use his or her position to influence any decision
and did not receive or become entitled to receive any form of payment
as a result of his or her appointment. Such persons shall not file
either an assuming or a leaving office statement.
(A) Any person who resigns a position within 30 days of the date
of a notice from the filing officer shall do both of the following:
1. File a written resignation with the appointing power; and
2. File a written statement with the filing officer declaring
under penalty of perjury that during the period between
appointment and resignation he or she did not make,
participate in the making, or use the position to influence
any decision of the agency or receive, or become entitled to
receive, any form of payment by virtue of being appointed to
the position.
6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC
INTERESTS
(A) Contents of Initial Statements
Initial statements shall disclose any reportable investments,
interests in real property and business positions held on the
effective date of the code and income received during the 12 months
prior to the effective date of the code.
(B) Contents of Assuming Office Statements
Assuming office statements shall disclose any reportable
investments, interests in real property and business positions held on
the date of assuming office or on the date of appointment, and income
received during the 12 months prior to the date of assuming office or
the date of being appointed, respectively.
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(C) Contents of Annual Statements
Annual statements shall disclose any reportable investments,
interests in real property, income and business positions held or
received during the previous calendar year provided, however, that the
period covered by an employee’s first annual statement shall begin on
the effective date of the code or the date of assuming office,
whichever is later.
(D) Contents of Leaving Office Statements
Leaving office statements shall disclose reportable investments,
interest in real property, income and business positions held or
received during the period between the closing date of the last
statement filed and the date of leaving office.
6.08 MANNER OF REPORTING
Statements of economic interest shall be made on forms prescribed
by the Fair Political Practices Commission and supplied by the agency,
and shall contain the following information:
(A) Investments and Real Property Disclosure
When an investment or an interest in real property3 is required to
be reported4, the statement shall contain the following:
1. A statement of the nature of the investment or interest;
2. The name of the business entity in which each investment is
held, and a general description of the business activity in
which the business entity is engaged;
3. The address or other precise location of the real property;
4. A statement whether the fair market value of the investment
or interest in real property exceeds two thousand dollars
($2,000), exceeds ten thousand dollars ($10,000), exceeds
3 For the purpose of disclosure only (not disqualification), an interest in real
property does not include the principal residence of the filer.
4 Investments and interests in real property which have a fair market value of less
than $2,000 are not investments and interests in real property within the meaning of
the Political Reform Act. However, investments or interests in real property of an
individual include those held by the individual’s spouse and dependent children as
well as a pro rata share of any investment or interest in real property of any
business entity or trust in which the individual, spouse and dependent children own,
in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater.
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one hundred thousand dollars ($100,000), or exceeds one
million dollars ($1,000,000).
(B) Personal Income Disclosure
When personal income is required to be reported5, the statement
shall contain:
1. The name and address of each source of income aggregating
$500 or more in value or $50 or more in value if the income
was a gift, and a general description of the business
activity, if any, of each source;
2. A statement whether the aggregate value of income from each
source, or in the case of a loan, the highest amount owed to
each source, was one thousand dollars ($1,000) or less,
greater than one thousand dollars ($1,000), greater than ten
thousand dollars ($10,000), or greater than one hundred
thousand dollars ($100,000);
3. A description of the consideration, if any, for which the
income was received;
4. In the case of a gift, the name, address and business
activity of the donor and any intermediary through which the
gift was made; a description of the gift; the amount or
value of the gift; and the date on which the gift was
received;
5. File In the case of a loan, the annual interest rate and the
security, if any, given for the loan.
(C) Business Entity Income Disclosure
When income of a business entity, including income of a sole
proprietorship is required to be reported6, the statement shall
contain:
1. The name, address and a general description of the business
activity of the business entity;
5 A designated employee’s income includes his or her community property interest in
the income of his or her spouse but does not include salary or reimbursement for
expenses received from a state, local or federal government agency.
6 Income of a business entity is reportable if the direct, indirect or beneficial
interest of the filer and the filer’s spouse in the business entity aggregates a 10
percent or greater interest. In addition, the disclosure of persons who are clients
or customers of a business entity is required only if the clients or customers are
within one of the disclosure categories of the filer.
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2. The name of every person from whom the business entity
received payments if the filer’s pro rata share of gross
receipts from such person was equal to or greater than
$10,000.
(D) Business Position Disclosure
When business positions are required to be reported, a designated
employee shall list the name and address of each business entity in
which he or she is a director, officer, partner, trustee, employee or
in which he or she holds any position of management, a description of
the business activity in which the business entity is engaged, and the
designated employee’s position with the business entity.
(E) Acquisition or Disposal During Reporting Period
In the case of an annual or leaving office statement, if an
investment or an interest in real property was partially or wholly
acquired or disposed of during the period covered by the statement,
the statement shall contain the date of acquisition or disposal.
6.09 PROHIBITION ON RECEIPT OF HONORARIA
A. No designated public official shall accept any honorarium from
any source, if the member or employee would be required to report the
receipt of income or gifts from that source on his or her statement of
economic interests.
Subdivisions (a), (b), and (c) of Government Code Section 89501 shall
apply to the prohibitions in this section.
This section shall not limit or prohibit payments, advances, or reim-
bursements for travel and related lodging and subsistence authorized
by Government Code section 89506.
6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT
ESTABLISHED BY LAW7
A. No designated public official shall accept gifts with a total
value of more than the maximum amount established by law, in any
calendar year, from any single source, if the member or employee would
7 Designated Persons are prohibited from accepting gifts from any single source in a
calendar year with a total value in excess of designated amounts. See Govt. Code §
89503, sub-divisions (e), (f) and (g). [Note: Pursuant to 2 CCR § 18940.2 (b), the
FPPC adjusts the gift limit every odd-numbered year to reflect changes in the
Consumer Price Index; therefore, the $390 limit adopted by the FPPC in January of
2007 will be updated in January 2009 and every odd year thereafter, until further
notice.]
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be required to report the receipt of income or gifts from that source
on his or her statement of economic interests.
Subdivisions (e), (f), and (g) of Government Code section 89503 shall
apply to the prohibitions in this section.
6.11 LOANS TO PUBLIC OFFICIALS
A. No elected officer of a state or local government agency shall,
from the date of his or her election to office through the date that
he or she vacates office, receive a personal loan from any officer,
employee, member, or consultant of the state or local government
agency in which the elected officer holds office or over which the
elected officer’s agency has direction and control.
B. No public official who is exempt from the state civil service
system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section
4 of Article VII of the Constitution shall, while he or she holds
office, receive a personal loan from any officer, employee, member, or
consultant of the state or local government agency in which the public
official holds office or over which the public official’s agency has
direction and control. This subdivision shall not apply to loans made
to a public official whose duties are solely secretarial, clerical, or
manual.
C. No elected officer of a state or local government agency shall,
from the date of his or her election to office through the date that
he or she vacates office, receive a personal loan from any person who
has a contract with the state or local government agency to which that
elected officer has been elected or over which that elected officer’s
agency has direction and control. This subdivision shall not apply to
loans made by banks or other financial institutions or to any
indebtedness created as part of a retail installment or credit card
transaction, if the loan is made or the indebtedness created in the
lender’s regular course of business on terms available to members of
the public without regard to the elected officer’s official status.
D. No public official who is exempt from the state civil service
system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section
4 of Article VII of the Constitution shall, while he or she holds
office, receive a personal loan from any person who has a contract
with the state or local government agency to which that elected
officer has been elected or over which that elected officer’s agency
has direction and control. This subdivision shall not apply to loans
made by banks or other financial institutions or to any indebtedness
created as part of a retail installment or credit card transaction, if
the loan is made or the indebtedness created in the lender’s regular
course of business on terms available to members of the public without
regard to the elected officer’s official status. This subdivision
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shall not apply to loans made to a public official whose duties are
solely secretarial, clerical, or manual.
E. This section shall not apply to the following:
1. Loans made to the campaign committee of an elected officer
or candidate for elective office.
2. Loans made by a public official’s spouse, child, parent,
grandparent, grandchild, brother, sister, parent-in-law, brother-in-
law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or
the spouse of any such persons, provided that the person making the
loan is not acting as an agent or intermediary for any person not
otherwise exempted under this section.
3. Loans from a person which, in the aggregate, do not exceed
five hundred dollars ($500) at any given time.
4. Loans made, or offered in writing, before January 1, 1998.
6.12 LOAN TERMS
A. Except as set forth in subdivision (B), no elected officer of a
state or local government agency shall, from the date of his or her
election to office through the date he or she vacates office, receive
a personal loan of five hundred dollars ($500) or more, except when
the loan is in writing and clearly states the terms of the loan,
including the parties to the loan agreement, date of the loan, amount
of the loan, term of the loan, date or dates when payments shall be
due on the loan and the amount of the payments, and the rate of
interest paid on the loan.
B. This section shall not apply to the following types of loans:
1. Loans made to the campaign committee of the elected officer.
2. Loans made to the elected officer by his or her spouse,
child, parent, grandparent, grandchild, brother, sister, parent-in-
law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or
first cousin, or the spouse of any such person, provided that the
person making the loan is not acting as an agent or intermediary for
any person not otherwise exempted under this section.
3. Loans made, or offered in writing, before January 1, 1998.
4. Nothing in this section shall exempt any person from any
other provision of Title 9 of the Government Code.
6.13 PERSONAL LOANS
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A. Except as set forth in subdivision (B), a personal loan received
by any designated public official shall become a gift to the
designated public official for the purposes of this section in the
following circumstances:
1. If the loan has a defined date or dates for repayment, when
the statute of limitations for filing an action for default has
expired.
2. If the loan has no defined date or dates for repayment, when
one year has elapsed from the later of the following:
a. The date the loan was made.
b. The date the last payment of one hundred dollars ($100)
or more was made on the loan.
c. The date upon which the debtor has made payments on the
loan aggregating to less than two hundred fifty dollars ($250) during
the previous 12 months.
B. This section shall not apply to the following types of loans:
1. A loan made to the campaign committee of an elected officer
or a candidate for elective office.
2. A loan that would otherwise not be a gift as defined in this
title.
3. A loan that would otherwise be a gift as set forth under
subdivision (A), but on which the creditor has taken reasonable action
to collect the balance due.
4. A loan that would otherwise be a gift as set forth under
subdivision (A), but on which the creditor, based on reasonable
business considerations, has not undertaken collection action. Except
in a criminal action, a creditor who claims that a loan is not a gift
on the basis of this paragraph has the burden of proving that the
decision for not taking collection action was based on reasonable
business considerations.
5. A loan made to a debtor who has filed for bankruptcy and the
loan is ultimately discharged in bankruptcy.
C. Nothing in this section shall exempt any person from any other
provisions of Title 9 of the Government Code.
6.14 DISQUALIFICATION
No designated employee shall make, participate in making, or in
any way attempt to use his or her official position to influence the
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making of any governmental decision which he or she knows or has
reason to know will have a reasonably foreseeable material financial
effect, distinguishable from its effect on the public generally, on
the official or a member of his or her immediate family or on:
(A) Any business entity in which the designated employee has a
direct or indirect investment worth $2,000 or more;
(B) Any real property in which the designated employee has a
direct or indirect interest worth $2,000 or more;
(C) Any source of income, other than gifts and other than loans
by a commercial lending institution in the regular course of
business on terms available to the public without regard to
official status, aggregating $500 or more in value provided
to, received by or promised to the designated employee
within 12 months prior to the time when the decision is
made;
(D) Any business entity in which the designated employee is a
director, officer, partner, trustee, employee, or holds any
position of management; or
(E) Any donor of, or any intermediary or agent for a donor of, a
gift or gifts aggregating to the maximum amount established
by law, or more, in value provided to, received by, or
promised to the designated employee within 12 months prior
to the time when the decision is made.
6.15 LEGALLY REQUIRED PARTICIPATION
No designated public official shall be prevented from making or
participating in the making of any decision to the extent his or her
participation is legally required for the decision to be made. The
fact that the vote of a designated public official who is on a voting
body is needed to break a tie does not make his or her participation
legally required for purposes of this section.
6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES
In addition to the general disqualification provisions of Section
6.14, no state administrative official shall make, participate in
making, or use his or her official position to influence any
governmental decision directly relating to any contract where the
state administrative official knows or has reason to know that any
party to the contract is a person with whom the state administrative
official, or any member of his or her immediate family has, within 12
months prior to the time when the official action is to be taken:
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(A) Engaged in a business transaction or transactions on terms
not available to members of the public, regarding any
investment or interest in real property; or
(B) Engaged in a business transaction or transactions on terms
not available to members of the public regarding the
rendering of goods or services totaling in value $1000 or
more.
6.17 DISCLOSURE OF DISQUALIFYING INTEREST
When a designated public official determines that he or she
should not make a governmental decision because he or she has a
disqualifying interest in it, the determination not to act may be
accompanied by disclosure of the disqualifying interest.
6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL
Any designated employee who is unsure of his or her duties under
this code may request assistance from the Fair Political Practices
Commission pursuant to Government Code Section 83114 or from the
attorney for his or her agency, provided that nothing in this section
requires the attorney for the agency to issue any formal or informal
opinion.
6.19 VIOLATIONS
This code has the force and effect of law. Designated employees
violating any provision of this code are subject to the
administrative, criminal and civil sanctions provided in the Political
Reform Act, Government Code Sections 81000 – 91015. In addition, a
decision in relation to which a violation of the disqualification
provisions of this code or of Government Code Section 87100 or 87450
has occurred may be set aside as void pursuant to Government Code
Section 91003.
6.20 PROHIBITED TRANSACTIONS
Members of the Board of Directors and Designated Employees shall
comply with the Prohibited Transactions policy, annexed hereto as
Exhibit A, pursuant to California Government Code Sections 1090, et
seq.
6.21 INCOMPATIBLE ACTIVITIES
Members of the Board of Directors, District officers, and all
other District employees shall comply with the Incompatible Activities
policy, annexed hereto as Exhibit B, pursuant to California Government
Code Sections 1126, et seq.
6-12
APPENDIX
OTAY WATER DISTRICT
CONFLICT OF INTEREST CODE
DESIGNATED POSITIONS
The Treasurer and all District Officials who manage the investment of
public funds are included in and governed by this Conflict of Interest
Code only with respect to its disqualification provisions. For
purposes of disclosure, the Treasurer and all District Officials who
manage the investment of public funds are governed by the statutory
conflict of interest provisions of Article 2 of Chapter 7 of the
Political Reform Act of 1974. (Government Code Sections 87200, et
seq.)
DESIGNATED EMPLOYEES’
TITLE OR FUNCTION__ DISCLOSURE CATEGORIES ASSIGNED
Members of the Board of Directors 1, 2, 3, 4, 5, 6
General Manager 1, 2, 3, 4, 5, 6
District Secretary 6
Assistant Chief Administrative
Services and Information Tech. 1, 2, 3, 4, 5, 6
Assistant Chief of Water Operations 1, 2, 3, 4, 6, 7
Assistant General Manager 1, 2, 3, 4, 5, 6, 7
Chief of Administrative Services 1, 2, 3, 4, 5, 6, 7
Chief Financial Officer 1, 2, 5, 6, 7
Chief Information Officer 1, 2, 3, 6, 7
Chief of Engineering 1, 2, 3, 4, 6, 7
Chief of Water Operations 1, 2, 3, 4, 6, 7
Associate Civil Engineer 1, 2, 3, 4, 7
Communications Officer 6
Customer Service Manager 2, 5, 7
Environmental Compliance
Specialist 1, 2, 3, 4, 7
6-13
Engineering Manager 1, 2, 3, 4, 7
Field Services Manager 1, 2, 3, 4, 7
Finance Manager, Controller,
and Budget 2, 5, 7
Finance Manager, Treasury,
and Accounting 2, 5, 7
GIS Manager 3, 6, 7
Human Resources Manager 3, 6
IT Manager 3, 6, 7
Network Engineer 3, 6, 7
Purchasing and Facilities Manager 2, 6
Safety and Security AdministratorSpecialist 1, 2, 3, 4, 6
Senior Buyer Procurement and Contracting Analyst 6
Senior Civil Engineer 1, 2, 3, 4, 7
System Operations Manager 1, 2, 3, 4, 7
Utility Services Manager 1, 2, 3, 4, 7
Water Conservation Manager 2, 3, 4, 6
Consultant8 1, 2, 3, 4, 5, 6
8 Consultants are required to file disclosure statements where they: (a) conduct research and arrive at
conclusions with respect to rendition of information, advice, recommendation or counsel independent of
control and direction of the agency or any agency official other than normal contract monitoring; and (b)
possess no authority with respect to any agency decision beyond the rendition of information, advice,
recommendation or counsel. The determination as to whether a consultant shall be required to file a
disclosure statement shall be made by the General Manager or his or her designee.
6-14
APPENDIX, CONTINUED
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of
investments, business entities, sources of income, or real property
which the designated employee must disclose for each disclosure
category to which he or she is assigned.
Category 1: All investments and business positions in, and sources
of income from, all business entities that do business or own real
property in the District, plan to do business or own real property in
the District within the next year or have done business or owned real
property in the District within the past two years.
Category 2: All interests in real property which are located in
whole or in part within, or not more than two (2) miles outside the
boundaries of the District.
Category 3: All investments and business positions in, and sources
of income from, business entities subject to the regulatory, permit or
licensing authority of the Designated Employee’s Department, will be
subject to such authority within the next year or have been subject to
such authority within the past two years.
Category 4: All investments, business positions, and sources of
income from, business entities that are engaged in land development,
construction or the acquisition or sale of real property in the
District, plan to engage in such activities in the District within the
next year or have engaged in such activities in the District within
the past two years.
Category 5: All investments and business positions in, and sources
of income from, business entities that are banking, savings and loan
or other financial institutions.
Category 6: All investments and business positions in, and sources
of income from, business entities that provide services, supplies,
materials, machinery or equipment of a type purchased, leased, used,
or administered by the District.
Category 7: All investments and business positions in, and sources
of income from, business entities that provide services, supplies,
materials, machinery or equipment of a type purchased, leased, used,
or administered by the Designated Employee’s Department.
6-15
EXHIBIT A
Prohibited Transactions for Specified Personnel
Members of the Board of Directors (“Members”) shall comply with this
Prohibited Transactions policy pursuant to California Government Code
§§ 1090, et seq.
Members shall not be financially interested in any contract made by
them in their official capacity, or by any body or board of which they
are members. Members shall not be purchasers at any sale or vendors
at any purchase made by them in their official capacity. Members
shall not be deemed to be interested in a contract entered into by a
body or board of which they are members if the Member has only a
remote interest in the contract and if the fact of that interest is
disclosed to the body or board of which the Member is a member and
noted in its official records, and thereafter the body or board
authorizes, approves, or ratifies the contract in good faith by a vote
of its membership sufficient for the purpose without counting the vote
or votes of the Board of Directors member with the remote interest.
“Remote interest” shall be defined as in California Government Code
§ 1091(b).
Members shall not be considered to be financially interested in a
contract if their interest is including, but not limited to, any of
the following (Government Code § 1091.5):
1. That of an officer in being reimbursed for his/her actual
and necessary expenses incurred in the performance of an official
duty;
2. That of a recipient of public services generally provided by
the public body or board of which he/she is a member, on the same
terms and conditions as if he or she were not a member of the
board;
3. That of a landlord or tenant of the contracting party if
such contracting party is the federal government or any federal
department or agency, this state or an adjoining state, any
department or agency of this state or an adjoining state, any
county or city of this state or an adjoining state, or an public
corporation or special, judicial or other public district of this
state or an adjoining state unless the subject matter of such
contract is the property in which such officer or employee has
such interest as landlord or tenant in which even his/her
interest shall be deemed a remote interest within the meaning of,
and subject to, the provisions of Government Code 1091;
4. That of a spouse of an officer or employee of a public
agency if his/her spouse’s employment or office-holding has
6-16
existed for at least one year prior to his/her election or
appointment;
5. That of a non-salaried member of a nonprofit corporation,
provided that such interest is disclosed to the board at the time
of the first consideration of the contract, and provided further
that such interest is noted in its official records;
6. That of a non-compensated officer of a nonprofit, tax-exempt
corporation, which, as one of its primary purposes, supports the
functions of the board or to which the board has legal obligation
to give particular consideration, and provided further that such
interest is noted in its official records;
7. That of compensation for employment with a governmental
agency, other than the governmental agency that employs the
officer or employee, provided that the interest is disclosed to
the board at the time of consideration of the contract, and
provided further that the interest is noted in its official
records;
8. That of an attorney of the contracting party of that of an
owner, officer, employee or agent of a firm which renders, or has
rendered, service to the contracting party in the capacity of
stockbroker, insurance agent, insurance broker, real estate
agent, or real estate broker if these individuals have not
received and will not receive remuneration, consideration, or a
commission as a result of the contract and if these individuals
have an ownership interest of less than 10 percent in the law
practice or firm, stock brokerage firm, insurance firm or real
estate firm.
In addition, Members shall not be deemed to be interested in a
contract made pursuant to competitive bidding under a procedure
established by law if their sole interest is that of an officer,
director, or employee of a bank or savings and loan association with
which a party to the contract has the relationship of borrower or
depositor, debtor or creditor (Government Code § 1091.5).
Authority:
California Government Code §§ 1090, et seq.
6-17
EXHIBIT B
Incompatible Activities Policy
District officers, members of the Board of Directors, and all other
District employees (collectively, “district personnel”) shall comply
with this Incompatible Activities policy pursuant to California
Government Code §§ 1126, et seq.
District personnel shall not engage in any employment, activity, or
enterprise for compensation which is inconsistent, incompatible, in
conflict with, or inimical to his or her duties as a member of the
Board of Directors, or with the duties, functions, or responsibilities
of his or her appointing power or the agency by which he or she is
employed.
The outside employment, activity, or enterprise of district personnel
is prohibited if it: (1) involves the use for private gain or
advantage of his or her local District time, facilities, equipment and
supplies; or the badge, uniform, prestige, or influence of his or her
local District office or employment or, (2) involves receipt or
acceptance by district personnel of any money or other consideration
from anyone other than the District for the performance of an act
which district personnel, if not performing such act, would be
required or expected to render in the regular course or hours of their
local District employment or as a part of their duties as a local
District officer or employee or, (3) involves the time demands as
would render performance of his or her duties as a local district
personnel member less efficient.
Nothing in this policy shall be interpreted to prohibit any outside
employment, activity, counsel, or enterprise on behalf of another
governmental entity, subject to common law and professional conflict
of interest rules.
Copies of this regulation shall be posted in prominent places at the
District Office. District personnel who violate this regulation may
be subject to discipline as set forth in the applicable Code of
Ordinances and Policies. Board of Directors members who violate this
section may be subject to censure. Disciplinary appeals by district
personnel shall be handled pursuant to applicable Code of Ordinances
and Policies.
Authority:
California Government Code §§ 1125, et seq.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: September 7, 2016
PROJECT: DIV. NO. ALL
SUBMITTED BY: Kelli Williamson
Human Resources Manager
APPROVED BY:
Adolfo Segura, Chief, Administrative Services
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: ADOPT RESOLUTION #4311 TO UPDATE BOARD POLICY #19, SMOKING,
TOBACCO, AND NICOTINE FREE CAMPUS
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution #4311 to update Board Policy #19,
Smoking, Tobacco, and Nicotine Free Campus, due to recent legislation
expanding the workplace prohibition against smoking including electronic
cigarettes.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To request that the Board adopt Resolution #4311 to update Board Policy
#19, Smoking, Tobacco, and Nicotine Free Campus.
ANALYSIS:
Consistent with the District’s Strategic Plan and Board Policy #44,
Review of Procedures, the District regularly reviews policies and
procedures to ensure they are streamlined and are clear and consistent
with applicable laws.
Based on recent changes to the California Legislation on electronic
cigarettes, District staff is recommending revisions to the attached
policy, Smoking, Tobacco, and Nicotine Free Campus (Attachment C).
Updates are detailed below and revisions are shown in the attached
strike-through version of the policy (Exhibit 1).
Smoking, Tobacco, and Nicotine Free Campus (Board Policy #19)
The Smoking, Tobacco, and Nicotine Free Campus is being updated due to
recent legislation expanding the workplace prohibition against smoking
including electronic cigarettes. Therefore, the District is recommending
to include in the policy the prohibition of various smoking products
such as e-cigarettes, vaping (with or without nicotine) and tobacco and
nicotine products on District property, in District vehicles and at areas
designated as District field work sites. In addition, definitions were
added to ensure there is clarity and consistency in administrating the
policy.
The Association has agreed to the policy as presented and General Counsel
has reviewed the proposed updates.
Based on the above, it is recommended that the Board of Directors adopt
Resolution #4311 in support of the proposed revisions.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Optimize the District’s Operating Efficiency.
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report
Attachment B – Resolution #4311
Exhibit 1 – Smoking, Tobacco, and Nicotine Free Campus
Attachment C – Proposed Copy, Smoking, Tobacco, and Nicotine Free Campus
(Board Policy #19)
ATTACHMENT A
SUBJECT/PROJECT: ADOPT RESOLUTION #4311 TO UPDATE BOARD POLICY #19, SMOKING,
TOBACCO, AND NICOTINE FREE CAMPUS
COMMITTEE ACTION:
The Finance, Administration and Communications Committee met on August
23, 2016 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.
1
RESOLUTION NO. 4311
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT TO
REVISE DISTRICT POLICY
WHEREAS, the Board of Directors of Otay Water District
have established policies, procedures, ordinances, and
resolutions for the efficient operation of the District; and
WHEREAS, it is the policy of the District to establish
procedures to review policies, procedures, ordinances, and
resolutions periodically to ensure they are current and
relevant; and
WHEREAS, District staff has identified Board Policy #19,
Smoking, Tobacco, and Nicotine Free Campus, as requiring
revisions as per the attached strike-through copy.
NOW, THEREFORE, BE IT RESOLVED that the Board of
Directors of the Otay Water District amends the Board
Policies indicated above in the form presented to the Board
at this meeting.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a regular meeting held this 7th of
September, 2016.
__________________________
President
ATTEST:
___________________________
Secretary
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
Policy
Number
Date
Adopted
Date
Revised
SMOKING, TOBACCO AND NICOTINE FREE CAMPUS
19
3/6/89
10/7/09
9/7/16
Page 1 of 2
PURPOSE
To establish the policy regarding smoking, vaping, and the use of e-
cigarettes, tobacco, and nicotine products on District property. This
policy applies to all employees, consultants, volunteers and visitors
while on District property, in District vehicles, and at areas
designated as District field work sites.
DEFINITIONS
1. “Smoking” means inhaling, exhaling, burning, or carrying any
lighted or heated cigar, cigarette, or pipe, or any other lighted
or heated tobacco or plant product intended for inhalation,
whether natural or synthetic, in any manner or form. “Smoking”
includes the use of an electronic smoking device that creates an
aerosol or vapor, in any manner or in any form, or the use of any
oral smoking device for the purpose of circumventing the
prohibition of smoking.
2. “Tobacco and Nicotine product” means any of the following:
A. A product containing, made, or derived from tobacco or
nicotine that is intended for human consumption, whether
smoked, heated, chewed, absorbed, dissolved, inhaled,
snorted, sniffed, or ingested by any other means, including,
but not limited to cigarettes, cigars, little cigars, chewing
tobacco, smokeless tobacco, dissolvable tobacco, pipe
tobacco, or snuff.
B. An electronic device that delivers nicotine or other
vaporized liquids to the person inhaling from the device,
including, but not limited to, an electronic cigarette,
cigar, pipe, or hookah.
C. Any component, part, or accessory of a tobacco product,
whether or not sold separately.
3. “Use” means any method of consuming Tobacco and Nicotine Products
including, but not limited to, Smoking, inhaling, chewing,
burning, vaping (with or without nicotine), or the use of e-
cigarettes and similar methods and devices.
POLICY
1. The Otay Water District is dedicated to maintaining a safe and
productive working environment for its employees and is committed
to taking appropriate action to eliminate threats to employees'
health and safety posed by Smoking, vaping, e-cigarettes and the
Uuse of Ttobacco and Nicotine Pproducts. “Use” means a method of
consuming tobacco products, including but not limited to smoking,
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
Policy
Number
Date
Adopted
Date
Revised
SMOKING, TOBACCO AND NICOTINE FREE CAMPUS
19
3/6/89
10/7/09
9/7/16
Page 2 of 2
inhaling and chewing. “Tobacco product” means any substance
containing tobacco leaf, including but not limited to cigarettes,
cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco,
bidis or any other preparation of tobacco.
2. This policy prohibits Smoking, vaping (with or without nicotine),
e-cigarettes, and the Uuse of Ttobacco and Nicotine Pproducts
within District- controlled properties where employees and other
persons will be exposed to secondhand smoke, vaping and/or
smokeless Ttobacco and Nicotine residue. AccordinglyHence,
Smoking, vaping, e-cigarettes and the Uuse of Ttobacco and
Nicotine Pproducts is prohibited on all District-owned property,
vehicles and aton District- designated field work sites.
Notwithstanding the foregoing, the Uuse of nicotine gum and
patches intended and used for smoking-cessation are permissible.
3. No ashtrays or other ash receptacles will be placed in areas where
Smoking, vaping, e-cigarettes or the Uuse of Ttobacco and Nicotine
Pproducts is prohibited. The only exceptions will be outside the
public entrances to District facilities, in order to assist
visitors in discarding of their tobacco products.
RESPONSIBILITY
Managers and supervisors are responsible for enforcing this policy in
areas under their control.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
Policy
Number
Date
Adopted
Date
Revised
SMOKING, TOBACCO AND NICOTINE FREE CAMPUS
19
3/6/89
9/7/16
Page 1 of 2
PURPOSE
To establish the policy regarding smoking, vaping, and the use of e-
cigarettes, tobacco, and nicotine products on District property. This
policy applies to all employees, consultants, volunteers and visitors
while on District property, in District vehicles, and at areas
designated as District field work sites.
DEFINITIONS
1. “Smoking” means inhaling, exhaling, burning, or carrying any
lighted or heated cigar, cigarette, or pipe, or any other lighted
or heated tobacco or plant product intended for inhalation,
whether natural or synthetic, in any manner or form. “Smoking”
includes the use of an electronic smoking device that creates an
aerosol or vapor, in any manner or in any form, or the use of any
oral smoking device for the purpose of circumventing the
prohibition of smoking.
2. “Tobacco and Nicotine product” means any of the following:
A. A product containing, made, or derived from tobacco or
nicotine that is intended for human consumption, whether
smoked, heated, chewed, absorbed, dissolved, inhaled,
snorted, sniffed, or ingested by any other means, including,
but not limited to cigarettes, cigars, little cigars, chewing
tobacco, smokeless tobacco, dissolvable tobacco, pipe
tobacco, or snuff.
B. An electronic device that delivers nicotine or other
vaporized liquids to the person inhaling from the device,
including, but not limited to, an electronic cigarette,
cigar, pipe, or hookah.
C. Any component, part, or accessory of a tobacco product,
whether or not sold separately.
3. “Use” means any method of consuming Tobacco and Nicotine Products
including, but not limited to, Smoking, inhaling, chewing,
burning, vaping (with or without nicotine), or the use of e-
cigarettes and similar methods and devices.
POLICY
1. The Otay Water District is dedicated to maintaining a safe and
productive working environment for its employees and is committed
to taking appropriate action to eliminate threats to employees'
health and safety posed by Smoking, vaping, e-cigarettes and the
Use of Tobacco and Nicotine Products.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
Policy
Number
Date
Adopted
Date
Revised
SMOKING, TOBACCO AND NICOTINE FREE CAMPUS
19
3/6/89
9/7/16
Page 2 of 2
2. This policy prohibits Smoking, vaping (with or without nicotine),
e-cigarettes, and the Use of Tobacco and Nicotine Products within
District-controlled properties where employees and other persons
will be exposed to secondhand smoke, vaping and/or smokeless
Tobacco and Nicotine residue. Accordingly, Smoking, vaping, e-
cigarettes and the Use of Tobacco and Nicotine Products is
prohibited on all District-owned property, vehicles and at
District-designated field work sites. Notwithstanding the
foregoing, the Use of nicotine gum and patches intended and used
for smoking-cessation are permissible.
3. No ashtrays or other ash receptacles will be placed in areas where
Smoking, vaping, e-cigarettes or the Use of Tobacco and Nicotine
Products is prohibited. The only exceptions will be outside the
public entrances to District facilities, in order to assist
visitors in discarding of their products.
RESPONSIBILITY
Managers and supervisors are responsible for enforcing this policy in
areas under their control.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: September 7, 2016
SUBMITTED BY:
Rita Bell,
Finance Manager
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Ratify Emergency Contracted Work Performed by Kirk Paving for
the Greensview Drive Main Break Repair
GENERAL MANAGER’S RECOMMENDATION:
That the Board ratify the emergency contracted work performed by Kirk
Paving for the Greensview Drive main break repair.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To request that the Board ratify the contract entered into with Kirk
Paving for emergency repairs associated with the Greensview main
break as previously authorized by the General Manager under an
emergency declaration consistent with the Code of Ordinances.
ANALYSIS:
On May 4, 2016, the General Manager presented to the Board a
Declaration of Emergency (see Attachment B) due to the Greensview
Drive main break. This main break occurred on May 3, 2016 and
because of the extensive damage, the repair cost exceeded $500,000.
In the past, our insurance carrier, SDRMA, would contract for the
work directly, but they changed their processes, necessitating the
District to contract for this work and then request reimbursement
from SDRMA. Because the contract with Kirk Paving exceeded the
General Manager’s authority under Code of Ordinances Section 2.01,
ratification of the contract with Kirk Paving is required by the
Board.
The following is a summary of the expenditures and reimbursements
from SDRMA:
Vendor Service Amount
Kirk Paving Emergency Paving $ 49,100.07
Paving $ 457,106.65
Sealing, Striping $ 62,552.38
Subtotal Kirk Paving (contract
to be ratified)
$ 568,759.10
Hudson Safe-T-
Lite
Traffic Control $ 567.60
City of Chula
Vista
CCTV sewer main and storm drains,
clean storm drain line
$ 4,250.09
Kenny's Clean
Sweep
Street Sweeping So. Greensview $ 600.00
Subtotal Other Cost $ 5,417.69
Total Cost $ 574,176.79
Reimbursement from SDRMA $ (573,676.79)
Deductible $ 500.00
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Ensure that all contracts are approved in accordance with the Code of
Ordinances.
LEGAL IMPACT:
None.
Attachments:
A – Committee Action
B - Declaration of Emergency Memo
ATTACHMENT A
SUBJECT/PROJECT:
Ratify Emergency Contracted Work Performed by Kirk Paving
for the Greensview Drive Main Break Repair
COMMITTEE ACTION:
The Finance, Administration and Communications Committee recommend
that the Board ratify the emergency contracted work performed by Kirk
Paving for the Greensview Drive main break repair.
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.
Declare Emergency Memo 090716
MEMORANDUM
TO:
Board of Directors
FROM:
Mark Watton Date 5/4/16
SUBJ:
Greensview Drive Main Break -- Declaration of Emergency
Incendent
On May 3, 2016 at approximately 3:00 p.m. staff was notified of a main break and discovered a 16" potable water
main broke underneath the road on Greensview and West Hunte Parkway in Chula Vista.
Pipeline & Sinkhole Repair Status
Staff have completed Greensview Drive repairs of the 16 inch pipeline and are restoring it to service at this time.
Additionally, we expect to complete the immediate repairs of the associated sinkhole this afternoon.
Road Repair Status
Staff completed the joint meeting today and coordinated the needed immediate, interim and permanent road repairs
needed for safe public access. The District was to complete the immediate repairs to the sinkhole today and the
remaining repairs were to be contracted and completed by our insurance carrier, SDRMA, per our standard
protocol. However, SDRMA informed us this afternoon that they can no longer contract work out directly and
needed the District to contract the repair work and then request to be reimbursed. The temporary repairs are
estimated to be approximately $60k and may exceed the authority of the General Manager.
Therefore, staff requested that the General Manager declare an emergency pursuant to the District Code of
Ordinance 2.01 (I) to expedite the needed repairs to allow safe access. Based on the declaration made by the
General Manager, staff has contacted the emergency paving contractor who will be mobilizing this afternoon and
commence temporary repairs.
As a reminder, we anticipate full reimbursement by SDRMA of these temporary road repairs.
Below is the relevant code section:
I. To declare an emergency and, in such event, to have the additional powers specified in the District’s
emergency management plan, referred to as the National Incident Management System (NIMS), and
below, pursuant to California Contract Code Section 22050. An emergency is a sudden, unexpected
occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate
the loss or impairment of life, health, property, or essential public services. 1. In a declared emergency,
the General Manager may direct employees, take action to continue or restore service capability, and
execute any contracts for necessary equipment, services, or supplies directly related and required by the
emergency. Notwithstanding the limits imposed in the prior paragraphs of this Section 2.01, or by any
other policy or guideline of the District, in an emergency, the General Manager may award and execute
contracts for goods, services, work, facility or improvement, without bidding and without regard to
said limits, provided that the goods, services, work, facilities or improvements acquired or contracted
for are of an urgent nature, directly and immediately required by the emergency. Any contract for goods
or services with a value of more than $250,000 shall be subject to ratification by the Board at its first
regularly scheduled meeting following the declaration of the emergency to which the contract relates.
Any contract for work, facilities or improvements with a value of more than $500,000 shall be subject to
ratification by the Board at its first regularly scheduled meeting following the declaration of the
emergency to which the contract relates.
Attachment B
Declare Emergency Memo 090716
2. The General Manager shall report to the Board not later than 48 hours after the emergency action or
at the next regularly scheduled meeting, whichever is earlier. The report shall include the details of the
emergency and reasons justifying the actions taken, and provide an accounting of the funds expended
or yet to be expended in connection with the emergency.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: September 7, 2016
PROJECT: Various DIV. NO. ALL
SUBMITTED BY: Kent Payne
Purchasing and Facilities Manager
APPROVED BY:
Adolfo Segura, Chief, Administrative Services
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: ADOPT ORDINANCE NO. 558 TO ESTABLISH A GENERAL MANAGER’S
PURCHASE AUTHORIZATION AUTHORITY OF $125,000
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Ordinance No. 558 amending subdivision “E” of
Section 2.01 of the Code of Ordinance to establish a General Manager's
signatory authority of $125,000.
COMMITTEE ACTION:
See “Attachment A”.
PURPOSE:
To establish a General Manager signatory authority of $125,000 to align
with the current operating budget; to support the streamlined and
efficient procurement of goods and services; and, to reduce project,
service and material acquisition times.
ANALYSIS:
At the Board meeting held January 17, 2001, the Board of Directors
adopted Ordinance No. 485 amending the District's Code of Ordinances
raising the General Manager's signatory authorization limit to $50,000.
The District’s operating budget for that fiscal year (2000-2001) was
$33.4 million with a staffing level of 161 employees. The District’s
current 2015-2016 operating budget is $89 million or 2.7 times that of
2000-2001 with a staffing level of 135 for an 8.4% reduction in force.
A General Manager’s signatory authority today, by 2000-2001 standards,
would be equal to $133,234.
A sample survey of signatory authority and operating budgets of local
and regional agencies was conducted and results are as follows:
AGENCY AUTHORITY
OPERATING
BUDGET
(MIL)
OTAY
EQUIVALENT
AUTHORITY
Rincon del Diablo Water District $25,000 $16 $139,063
Padre Dam Water District $50,000 $25 $178,000
City of Santa Cruz Water Admin $100,000 $27 $329,630
Rainbow Water District $50,000 $34 $130,882
Ramona Water District $30,000 $34 $78,529
Santa Fe Irrigation District No Limit $35
San Diego Convention Center $100,000 $36 $247,222
Sweetwater Authority $75,000 $46 $145,109
Olivenhain Water District $50,000 $70 $63,571
City of Carlsbad $100,000 $72 $123,611
Helix Water District $50,000 $73 $60,959
City of Poway No Limit $83
Otay Water District $50,000 $89 $50,000
Otay Water District – 2001 $50,000 $33 $133,234
Western Municipal Water District $100,000 $113 $78,761
Port of San Diego $125,000 $169 $65,828
City of Corona $125,000 $270 $41,204
City of Chula Vista $75,000 $294 $22,704
County Water Authority $50,000 $1,500 $2,967
City of San Diego $1,000,000 $3,300 $26,970
The average authority for the survey group is $126,764 which ranges
from a low of $25,000 to $1 million for the City of San Diego. The
average equivalent authority is $109,877 (equivalent authority
calculates the differences between Agency and District operating
budgets and adjusts the Agency authority for that difference). Making
allowances for the agencies with no limits and throwing out the City of
San Diego as an outlier, the equivalent authority for the survey group
is $122,274.
Neighboring water agencies Padre Dam and Sweetwater Authority each have
an equivalent authority of $178,000 and $145,109, respectively, while
Helix Water District is just under $61,000. The average of the three is
equal to $128,022.
Staff conducted additional analysis utilizing two inflation indexes,
the Engineering News-Record (ENR) index, which is used widely in the
construction industry, and the Consumer Price Index for the San Diego
region (CPI-U). The ENR analysis resulted in an inflated authority of
$78,864 for the 2001-2016 period and similarly, the CPI-U analysis
resulted in an inflated authority of $78,451. While inflationary indexes
are appropriate for tracking the cost of goods and services over a
period of time, it does not reflect the growth in the District’s
operations during that same time period along with the efficiencies
required from a smaller workforce.
Staff recommends establishing a General Manager's signatory authority
of $125,000, which is consistent with the survey group and neighboring
agency equivalent authorities and is below the District’s own equivalent
authority of $133,234. The higher authority also positions the General
Manager to leverage the consolidation of and savings from day-to-day
consumables, services and other routine contracts not in need of
additional review. Finally, in light of the changes in the manner that
emergency repairs are managed by SDRMA, the District’s liability
insurer, the General Manager will have greater latitude to quickly
respond to the average emergency repair thereby limiting its impact on
the community being served.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Although we do estimate savings, it is difficult to quantify specific
savings at this time.
STRATEGIC GOAL:
Supports the Districts Strategy: Ensure financial health through
formalized policies, prudent investing, and efficient operations.
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report
Attachment B – Ordinance No. 558
Exhibit 1 - Section 2.01 E, Authority of the General
Manager, of the District’s Code of Ordinances
Attachment C – Proposed Copy, Section 2.01 E, Authority of the
General Manager, of the District’s Code of Ordinances
ATTACHMENT A
SUBJECT/PROJECT: ADOPT ORDINANCE NO. 558 TO ESTABLISH A GENERAL MANAGER’S
PURCHASE AUTHORIZATION AUTHORITY OF $125,000
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee reviewed
this item at a meeting held on August 23, 2016. 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.
AN ORDINANCE OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT
AMENDING SECTION 2.01 E, AUTHORITY OF THE GENERAL MANAGER,
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 2.01 E,
Authority of the General Manager, be amended as per Exhibit 1
(attached).
NOW, THEREFORE, BE IT RESOLVED that the new proposed Section
2.01 E, Authority of the General Manager (Attachment C), of the
Code of Ordinances, shall become effective September 7, 2016.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the
Otay Water District at a regular meeting duly held this 7th day of
September 2016, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
President
ATTEST:
_____________________________
District Secretary
CHAPTER 2 ADMINISTRATION OF THE DISTRICT
SECTION 2 MANAGEMENT OF THE DISTRICT
2.01 AUTHORITY OF THE GENERAL MANAGER
Pursuant to Sections 71362 and 71363 of the California Water
Code, and other applicable laws of the State of California, the
General Manager shall, subject to the approval and direction of
the Board of Directors, operate and manage the affairs of the
District. The General Manager shall have the following
specifically enumerated powers and authority:
A. To control the administration, maintenance, operation and
construction of the water and sewer systems and facilities of the
District in an efficient manner.
B. To employ and discharge all employees and assistants, other
than those referred to in Section 71340 of the California Water
Code, and to prescribe their duties and promulgate specific rules
and regulations for such employees and assistants.
C. To promulgate policies and procedures necessary to enhance
the security of the District and increase the transparency of
District operations, including provisions for the disclosure of
conflicts of interest by employees.
D. To establish the terms and conditions for collection of
receivables, thereby facilitating the efficient administration of
the District’s receivables. The General Manager or designee is
given this authority as well as the authority to waive, adjust, or
reduce any receivable for amounts up to $10,000.
E. To execute agreements, contracts, other documents, or
commitments on behalf of the District where the amount involved
does not exceed $50,000 $125,000, provided that Public Works
Contracts shall be awarded in compliance with applicable laws.
CHAPTER 2 ADMINISTRATION OF THE DISTRICT
SECTION 2 MANAGEMENT OF THE DISTRICT
2.01 AUTHORITY OF THE GENERAL MANAGER
Pursuant to Sections 71362 and 71363 of the California Water
Code, and other applicable laws of the State of California, the
General Manager shall, subject to the approval and direction of
the Board of Directors, operate and manage the affairs of the
District. The General Manager shall have the following
specifically enumerated powers and authority:
A. To control the administration, maintenance, operation and
construction of the water and sewer systems and facilities of the
District in an efficient manner.
B. To employ and discharge all employees and assistants, other
than those referred to in Section 71340 of the California Water
Code, and to prescribe their duties and promulgate specific rules
and regulations for such employees and assistants.
C. To promulgate policies and procedures necessary to enhance
the security of the District and increase the transparency of
District operations, including provisions for the disclosure of
conflicts of interest by employees.
D. To establish the terms and conditions for collection of
receivables, thereby facilitating the efficient administration of
the District’s receivables. The General Manager or designee is
given this authority as well as the authority to waive, adjust, or
reduce any receivable for amounts up to $10,000.
E. To execute agreements, contracts, other documents, or
commitments on behalf of the District where the amount involved
does not exceed $125,000, provided that Public Works Contracts
shall be awarded in compliance with applicable laws.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: September 7, 2016
PROJECT: DIV. NO.: ALL
SUBMITTED BY: Adolfo Segura, Chief of Administrative Services
APPROVED BY:
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: FY16 YEAR-END REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To provide a year-end report on the District’s FY15-18 Strategic
Performance Plan for FY16.
ANALYSIS:
Summary
The current Otay Water District Strategic Plan is a four-year plan
ranging from the start of FY15 through the end of FY18. This report
details the year-end results for the second year of our four-year plan.
Strategic Plan Objectives – Target 90%
Strategic Plan objectives are designed to ensure the District is
executing mission designed objectives and making the appropriate high-
level changes necessary to guide the agency’s efforts to meet new
challenges and positively adapt to change. Objective results for FY16
year-end are below target at 88%, with 23 of 26 active items completed
or on schedule. Two objectives are on hold and three are not scheduled
to begin until FY17 and FY18.
The following objectives have been reported to be behind schedule. These
projects have identified appropriate actions and are expected to be
back on schedule in FY17.
1. Enhance Management Control of Non-Inventory Items - Due to
unplanned repairs and staffing issues, staff was unable to complete
the review of non-inventory items and develop adequate
recommendations. The review and recommendations are expected to be
completed by FY17 Q2.
2. Evaluate Efficiencies for Delivering Capital Assets - Final
assessment and recommendation of the BIM 3D model effort will be
completed as the 870-1 Pump Station Design reaches completion in
FY17 Q2.
3. Streamline Input of Operations Data – Staff has identified business
processes and forms that should be automated and auto-populated.
However, with the delay of the SCADA project closeout, a complete
action list could not be completed. The SCADA Roadmap is expected
to be completed in FY17 Q1.
The following objectives have been put on hold:
1. Evaluate Requirements for Future Emergency Communication System –
The existing communication system is expected to be vendor
supported for an additional 5 years. Staff will continue to explore
new technologies should the communication system need to be
replaced sooner than expected.
2. Evaluate the Viability of Implementing an Indirect Potable Reuse
Program – Staff from the District and Sweetwater Authority have
completed the study and cost-estimate and have determined that
this project is not feasible at this time.
3. Implement a Habitat Conservation Plan that will Streamline O&M
within District Easements – The draft habitat conservation plan
has not been submitted to wildlife agencies. Plan preparations are
expected to be back on schedule FY17 Q1.
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 and essential services. The overall goal is that at
least 75% of these measures be rated “on target”. FY16 year-end results
are well above target with 37 of 41 (90%) items achieving the desired
level or better.
Three new measures have been added and staff will begin reporting in
FY17. Staff will strive to keep as many measures the same in order to
collect and analyze multi-year data.
New measures in FY17 include:
Accounts Per FTE
Percent of Customers Paying Bills Electronically
Injury Incident Rate
Items Not On Target
1. CIP Project Expenditures vs. Budget – Year-to-date CIP
expenditures amounted to $10,605,000 vs. the budgeted amount of
$11,811,000 (-11.37%).
2. Overtime Percentage – Year-to-date expenditures amounted to
$121,164 vs. the budgeted amount of $94,000 (+28.89%).
3. Water Rate Ranking – The March 2016 rate increase has moved the
District up from number 11 in FY15, to number 12 in FY16, out of
22 member agencies.
4. Reserve Level – Year-end result is 78%, target was 85%.
AWWA (formerly QualServe) Benchmarking Perspective
As a result of AWWA modifying how indicators are calculated, the
District has moved away from most of the AWWA benchmarks. However, the
following performance indicators have remained unchanged and the
District will continue to use them as benchmarks:
Collection System Integrity
Sewer Overflow Rate
Technical Quality Complaint
Potable Water Compliance Rate
Composition of Balanced Scorecard Objectives and Measures
The Balanced Scorecard continues to be used as the core methodology for
the District’s Strategic Plan, and is widely adopted by businesses
internationally. The Balanced Scorecard itself was developed by Kaplan
and Norton and published in 1992 in the Harvard Business Review. The
model has evolved over time and is now in its third-generation. In
brief, the Balanced Scorecard emphasizes an integrated strategy
approach for the development of goals and measures in four basic areas:
customer, financial, business processes, and learning and growth.
Each objective is broken down by the balanced scorecard, strategy, and
goal required to meet the specific challenge.
Strategy: Deliver high quality services to meet and increase
confidence of the customer in the value the District provides
Goal: Increase customer confidence in the District
Objectives:
1. Enhance communications with customers
Goal: Improve and expand communications
Objectives:
1. Regularly produce and evaluate communications
tools and explore the effective use of new media
options
2. Evaluate requirements for future emergency
communication system
Goal: Provide effective water services
Objectives:
1. Optimize SCADA program
Strategy: Manage the financial issues that are critical to
the District
Goal: Improve financial information and systems
Objectives:
1. Streamline procurement and contractor on-boarding
process via web-based eProcurement technology
2. Electric power and fuel management practices
3. Optimize operations inventory management
Goal: Maintain District financial strength
Objectives:
1. Strengthen internal audit program
2. Implement a cost-benefit program
Strategy: Maximize efficiency and effectiveness
Goal: Actively manage water supply as well as support for
water and sewer services
Objectives:
1. Evaluate and enhance the District's water
conservation programs and services
2. Evaluate the City of San Diego’s pure water program
planning/implementation
3. Sewer system business evaluation
4. Address dependency on imported water
5. Leak detection and repair program
6. Pressure vessel maintenance program
$
7. Evaluate the viability of implementing an indirect
potable reuse program
Goal: Identify and evaluate improvements to enterprise and
departmental business processes
Objectives:
1. Optimize asset management program
2. Enhance District's enterprise facilities physical
security
3. Improve and streamline meter related processes
4. Evaluate efficiencies for delivering capital assets
5. Enhance District's enterprise confined space program
6. Operations workflow process evaluation
7. Streamline input of operations data
8. Streamline work processes in four strategic areas
including departmental synergies, technology,
procurements, and alignment of business practices
9. Revise business practices by modifying the master
recycled water permit
10. Implement a habitat conservation plan that will
streamline O&M within District easements
11. Advance business processes and operational
efficiencies through implementation of information
technology
12. Evaluate implementation of an online performance
management system
Strategy: Provide leadership and management expertise
Goal: Reinforce a results-oriented and accountable culture
Objectives:
1. Negotiate a Successor Memorandum of Understanding
for represented employees for 2017 and beyond, and
related compensation and benefits for unrepresented
employees with emphasis on making necessary updates
to employee health benefits related to health care
reform
2. Evaluate requirements for future emergency
communication system
Goal: Focus on achieving a lean flexible workforce
Objectives:
1. Evaluate opportunities to combine or transfer
similar work functions
2. Evaluate training and development programs for new
and existing supervisors/managers
Next Steps – FY17-18
The completion of Phase 2 of the FY15-18 Strategic Plan was a
significant accomplishment. The successful implementation and rapid
adoption of next generation technology solutions, has allowed the
District to continue to gain efficiencies, improve department
functions, and sustain a growing customer base with a reduced work
force. Staff will be tracking a number of new objectives and measures
during FY17.
Measurement of continuous improvement is essential to demonstrate the
efficiency gains achieved by the District. During FY17, staff will be
analyzing collected productivity data to further gauge efficiencies
gained and elevate or create new performance metrics where warranted.
Also, staff will continue to train and cross-train to further leverage
the value-added functions of our enterprise business systems.
Additional improvements to our Asset Management program will also be
addressed via a recently developed SCADA roadmap. Staff will be
targeting utility smart power management, additional remote/mobile
capabilities, production management, and enhanced cyber security
mechanisms. Much of this will be used to set key performance objectives
in FY18, to include the evolution of key service programs across the
District. The Board will receive an update of our measurements progress
during the FY17 mid-year Strategic Plan presentation in March 2017.
Committee Reports – Slideshow
The Strategic Plan results are presented to both the Finance,
Administration, and Communications Committee and the Engineering,
Operations, and Water Resources Committee with a specific focus on the
most relevant information for each Committee.
Strategic Plan is available on the Board VPN
All of the Strategic Plan results and associated details are provided
in a real-time, interactive web-based application available to the Board
via secured remote access, VPN. The District Secretary can facilitate
any password or access issues.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Informational item only; no fiscal impact.
STRATEGIC GOAL:
Strategic Plan and Performance Measure reporting is a critical element
in providing performance reporting to the Board and staff.
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report
Attachment B – FY16 Year-End Strategic Plan Results Presentation
ATTACHMENT A
SUBJECT/PROJECT: FY16 YEAR-END 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 August 23, 2016. 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
FY16 YEAR-END REPORT
2
Introduction
3
The completion of Phase 2 of the FY15-18 Strategic Plan was a significant accomplishment.
The successful implementation and rapid adoption of next generation technology solutions
has allowed the District to continue to gain general work efficiencies, improve department
functions, and sustain a growing customer base with a reduced work force.
Measurement of continuous improvement is essential to demonstrate the efficiency gains
achieved by the District. During FY17, staff will be analyzing collected productivity data to
further measure efficiencies gained and elevate or create new performance metrics if
warranted. Staff will also continue to train and cross-train to further leverage the value-added
functions of our enterprise business systems and work processes. Additional improvements to
our Asset Management Program will also be addressed via a recently developed multi-year
SCADA roadmap.
4
1. Increase customer confidence in the District
2. Improve and expand communications
3. Provide effective water services
1. Improve financial information and systems
2. Maintain District financial strength
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
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
Provide leadership and management expertise
Maximize efficiency and effectiveness
Manage the financial issues that are critical to the District
Deliver high quality services to meet and increase confidence of
the customer
$$
5AWWA Benchmarks
1 Technical Quality Complaint
Potable Water Compliance Rate
Collection System Integrity
Sewer Overflow Rate
2
3
4
6Objectives
88% are Completed or On Schedule
3
20
3
3
Completed
On Schedule
Behind
On Hold
Objective Reports 26 Total
7
COMPLETED
Objectives
1.Update of SCADA Program
2. Enterprise E-Commerce (Purchasing/Contracting) Solution – BidSync
3. Automation and Enhancement of District-wide Operational Forms and
Workflows
8
ON HOLD
Objectives
1. Evaluate requirements for future emergency communication system
2. Evaluate the viability of implementing an indirect potable reuse program
3. Implement a Habitat Conservation Plan that will streamline O&M within
District easements
BEHIND SCHEDULE
1.Enhance management control of non-inventory items
2. Evaluate efficiencies for delivering capital assets
3. Streamline input of Operations data
9
37
4
On Target
Not On Target
Performance Measures
90% On Target
Measure Reports 41 Total
10Performance Measures
NOT ON TARGET
1. CIP Project Expenditures vs. Budget
2. Overtime Percentage
3. Reserve Level
4. Water Rate Ranking
11
Year-End Results
Administrative Services
12Enterprise System Availability
Target: No less than 99.5%availability per quarter in a year
99.99 99.99 99.99 99.99 99.99
98
98.5
99
99.5
100
100.5
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q&Y
Quarter & YTD Measurement
99.5% = 3.60 hours of downtime per month/1.83
days of downtime in a year
*FY14 – FY16 results are 99.99%
13Employee Turnover Rate
Target: Less than 5%turnover in a year
0 0 0 0 00
1
2
3
4
5
6
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q
Quarter Measurement
# of voluntary resignations (not including
retirements)/average # of employees
Y
YTD Measurement Method
YTD # of voluntary resignations (not including
retirements)/average # of employees
14Training Hours Per Employee
Target: 12 hours or more general formal training per employee in a year
(excludes safety training)
6.78
4.86 6.1 5.29
23.02
0
5
10
15
20
25
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q Quarter Measurement
Total qualified training hours for all
employees/average # of FTEs
Y
YTD Measurement
YTD Total qualified training hours for all
employees/Average # of FTEs
15Safety Training Program
Target: 24 hours or more safety training per field employee in a year
6.01
8.78 7.96
13.72
36.8
0
5
10
15
20
25
30
35
40
45
50
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Quarter Measurement
# of safety training hours for the quarter/ # of
field employees
Q Y
YTD Measurement
YTD Total qualified safety training hours for
field employees/average # of field employees
16
Engineering
17CIP Project Expenditures vs. Budget
Target: 95% of budget but not to exceed 100%
Being below target gives the measure a “not on target” status
Q Quarter Measurement
Actual quarterly expenditures/Annual budget Y YTD Measurement
YTD expenditures/Annual budget
18.5 18.1 26.4
28
90.4
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
18Construction Change Order Incidence (w/o allowances)
Target: No more than 5%per quarter in a year
3
3.7
1.6 1.8 1.8
0
1
2
3
4
5
6
7
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q&Y Quarter & YTD Measurement
Total cost of Change Orders (not including allowances)/Total original
construction contract amount (not including allowances)
19Mark-Out Accuracy
Target: No less than 100%mark-out accuracy per quarter in a year
100 100 100 100 100
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q&Y
Quarter & YTD Measurement
# 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
*FY13 – FY16 results are 100%
20Project Closeout Time
Target: No more than a 45 day average per quarter in a year
29.5 46 16
49.8 37.3
0
50
100
150
200
250
300
350
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q
Quarter Measurement
# of days between NOSC and NOC for all
construction projects within the quarter/# of
construction projects within the quarter
Y
YTD Measurement
YTD # of days between NOSC and NOC for all
construction projects within the quarter/YTD #
of construction projects within the quarter
21Annual Recycled Water Site Inspections
Target: 100%of recycled sites inspected in a year
(There are 112 recycled water use sites scheduled for FY16)
Quarter & YTD Measurement
Cumulative % of recycled sites inspected per
quarter of those required by DEH
Q&Y
26.7
55
79
100 100
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Target 2015 2016
*Measure was created in FY15
22
Q&Y
Recycled Water Shutdown Testing
Target: No less than 90%of recycled site shut down tests in a year
(There are 31 recycled water use sites due for shutdown in FY16)
Quarter & YTD Measurement
Cumulative % of recycled site shutdown tests
performed per year compared to those
scheduled
32
57
82 93 93
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 YTD
Target 2015 2016
*Measure was created in FY15
23
Quarter & YTD Measurement
Total planned maintenance costs/Total maintenance costs
Planned Recycled Water Maintenance Ratio in $
Target: No less than 70%of all labor spent on preventative maintenance
per quarter in a year
88.5 89 90
70
86
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q&Y
24Recycled Water System Integrity
Target: No more than 6.6 leaks or breaks per 100 miles
of recycled distribution system in a year
Q&Y
Quarter & YTD Measurement
(100 x # of leaks or breaks)/ # of miles of distribution system
0 0 0 0 0
0
1
2
3
4
5
6
7
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
25
Finance
26
Q
Quarter Measurement
# of all calls answered/ # of all calls received
during a quarter
Y
YTD Measurement
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
97.39
97.9
97.93 98.2
97.84
95
95.5
96
96.5
97
97.5
98
98.5
99
99.5
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
27Gallons Per Capita Per Day
Target: Below 172 gallons per day
(Target comes from California Urban Water Control Council & the State Water Resources Control Board)
Q Quarter Measurement
Total potable water purchased/Population
(from SANDAG)/Number of days through the
end of the quarter
Y YTD Measurement
Total annual potable water purchased/Annual
population estimate from SANDAG/Number of
days through the end of the quarter
119.3
97.1
85.8
112.8 103.7
0
20
40
60
80
100
120
140
160
180
200
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
28
Q
Quarter Measurement
Total operations O&M costs/ # of accounts Y
YTD Measurement
YTD total operations O&M costs/ # of accounts
O&M Cost Per Account
Target: Less than $531.12 per account in a single year
(Target is based on Operating Budget)
113
246
364
503 503
100
150
200
250
300
350
400
450
500
550
600
Q1 Q2 Q3 Q4 YTD
Target 2013 2014 2015 2016
29
Q
Quarter Measurement
# of correct bills during the reporting period/ #
of total bills during the reporting period
Y
YTD Measurement
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 99.92 99.99 99.99 99.97
98
98.5
99
99.5
100
100.5
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
30Overtime 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)
Q
Quarter Measurement
Actual overtime costs (including comp time)/
Budgeted overtime costs
Y
YTD Measurement
YTD actual overtime costs (including comp
time)/ YTD budgeted overtime costs
110
160
110
128 129
0
20
40
60
80
100
120
140
160
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
31Sewer Rate Ranking
Target: Bottom 50 percentile for the 28 sewer service providers in San Diego
(Otay ranks 7 out of 28 sewer service providers)
Quarter & YTD Measurement
Otay ranking for the average bill for sewer/ # of sewer agencies
7 7
0
5
10
15
20
25
Q4 YTD
Target 2013 2014 2015 2016
Q&Y
32Water Rate Ranking
Target: Bottom 50 percentile for the 22 member agencies in San Diego
(Otay ranks 12 out of 22 member agencies)
Quarter & YTD Measurement
Otay ranking for the average water bill among
CWA member agencies
12 12
0
5
10
15
20
Q4 YTD
Target 2013 2014 2015 2016
Q&Y *FY14 and FY15 Otay rates were 11th lowest
**FY17 Rates were compared to 22 member agencies
(Padre Dam E and Padre Dam W are now counted as one agency)
33Debt Coverage Ratio
Target: Above 150%to have sufficient debt coverage
(This is measured at year end)
Q&Y
Quarter & YTD Measurement
Qualified net operating revenues/debt service requirements (measured at year end)
171 171
0
50
100
150
200
250
300
Q4 YTD
Target 2013 2014 2015 2016
34Reserve Level
Target: Equal or exceed 85%
(This is measured at year end)
Quarter & YTD Measurement
# of reserve funds that meet or exceed fund
target levels/ Total # of reserve funds
78 78
0
20
40
60
80
100
120
140
Q4 YTD
Target 2013 2014 2015 2016
Q&Y *FY13 & FY14 results are 85%
35Percent of Customers Paying Bills Electronically
Target: In development
(No set targets in FY16; a baseline will be established in FY16 and appropriate targets
will be recommended for the FY17-18 Strategic Plan)
Q
Quarter Measurement
Y
YTD Measurement
YTD # of customers paying bills electronically/
Total # of customers
# of customers paying bills electronically/ Total # of customers
71.7 72.2 72.98 74.17 72.77
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4 AVG
Target 2016
36Distribution System Loss
Target: Less than 5%of unaccounted water loss per quarter in a year
Quarter & YTD Measurement
100 [volume purchased (from CWA) – (volume sold (to customers) + volume used District usage)] /
volume purchased (from CWA))
2.34 2.8 3.1
4 4
0
1
2
3
4
5
6
7
8
9
10
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q&Y
37
Operations
38Technical Quality Complaint (AWWA)
Target: No more than 9 complaints
per 1000 customer accounts in a year
Q
Quarter Measurement
1000 (# of technical quality complaints per
quarter)/# of active customer accounts per
reporting period
Y
YTD Measurement
Cumulative technical quality complaints in FY
1.44 1.39 0.8
1.49
5.12
0
1
2
3
4
5
6
7
8
9
10
Q1 Q2 Q3 Q4 YTD
Target AWWA 2013 2014 2015 2016
AW
W
A
B
e
n
c
h
m
a
r
k
39Planned Potable Water Maintenance Ratio in $
Target: No less than 66%of all labor dollars spent on preventative maintenance
per quarter in a year
Q&Y
Quarter & YTD Measurement
Total planned maintenance cost/ Total maintenance cost
79
73 73
70
75
50
55
60
65
70
75
80
85
90
95
100
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
40Planned Wastewater Maintenance Ratio in $
Target: No less than 77%of all labor dollars spent on preventative maintenance
per quarter in a year
Quarter & YTD Measurement
Total planned maintenance cost/Total maintenance costQ&Y
89.94
83.85
93.74
94.87 91.81
50
55
60
65
70
75
80
85
90
95
100
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
41Direct 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)
Q&Y
Quarter & YTD Measurement
Total O&M costs directly attributable to sewer treatment/ Total volume in MG
951.88
1103.55
911.18
672.91
912.56
0
200
400
600
800
1000
1200
1400
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
42O&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)
Q
Quarter Measurement
Total O&M cost/ MGP
FYTD O&M Cost = (Power Cost) + (Staff
Cost) + (Equipment Cost) / FYTP MGP
Y YTD Measurement
FYTD O&M Cost MGP/ FYTD Total MGP
1646.27 1654.91
1406.61
1093.67
1458.36
0
500
1000
1500
2000
2500
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
43Leak Detection Program
Target: Perform leak detection on
20%of potable distribution system
Q&Y Quarter & YTD Measurement
% of potable distribution pipelines surveyed. The calculation is
miles of pipe surveyed divided by total miles of pipe times 100.
20 20 20
0
10
20
30
40
50
60
70
80
90
100
Q3 Q4 YTD
Target 2015 2016
*FY15 – FY16 results are 20%
**Measure was created in FY15
44Percent of PMs Completed – Fleet Maintenance
Target: No less than 90%of scheduled PM’s completed
per quarter in a year
Quarter & YTD Measurement
# of PM’s completed/ # of PM’s scheduled to
be completed
100 100 100 100 100
0
20
40
60
80
100
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Q&Y *FY14 & FY16 results are 100%
45Percent of PMs Completed – Reclamation Plant
100 100 100 100 100
75
80
85
90
95
100
105
110
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Target: No less than 90%of scheduled PM’s completed
per quarter in a year
Q&Y
Quarter & YTD Measurement
# of PM’s completed/ # of PM’s scheduled to be completed in a reporting period
46Percent of PMs Completed – Pump/Electric Section
100 100 100 100 100
75
80
85
90
95
100
105
110
Q1 Q2 Q3 Q4 AVG
Target 2013 2014 2015 2016
Target: No less than 90%of scheduled PM’s completed
per quarter in a year
Q&Y
Quarter & YTD Measurement
# of PM’s completed/ # of PM’s scheduled to be
completed in a reporting period
*FY13 – FY16 results are 100%
47System Valve Exercising Program
Target: Exercise 770 valves per quarter or
3080 valves by the end of fiscal year
Quarter & YTD Measurement
Actual number of valves exercised in the reporting period
1013
1932
838 736
4549
0
1000
2000
3000
4000
5000
6000
Q1 Q2 Q3 Q4 YTD
Target 2013 2014 2015 2016
Q&Y
48Potable Water Distribution System Integrity
Target: No more than 16 leaks and breaks
per 100 miles of distribution piping in a year
Q
Quarter Measurement
100 (annual total number of leaks + annual
total number of breaks) / total miles of
distribution piping
Y
YTD Measurement
Cumulative number of leaks and breaks per quarter in a FY
2.11 3.55 3.07
2.4
11.14
0
2
4
6
8
10
12
14
16
18
20
Q1 Q2 Q3 Q4 YTD
Target 2013 2014 2015 2016
49Potable Water Compliance Rate (AWWA)
Target: No less than 100%of all health related drinking water standards each quarter in a year
Quarter Measurement
100 (# of days the primary health regulations
are met)/ # of days in the reporting period
100 100 100 100 100
50
60
70
80
90
100
110
Q1 Q2 Q3 Q4 AVG
Target AWWA 2013 2014 2015 2016
AW
W
A
B
e
n
c
h
m
a
r
k
Q&Y *FY13 – FY16 results are 100%
50Collection System Integrity (AWWA)
Target: No more than 3.6 system failures
per 100 miles of collection system pipeline in a year
Q
Quarter Measurement
100 (total number of collection system failures
during the year) / total miles of collection
system piping
Y
YTD Measurement
Cumulative number of failures per quarter in a FY
0 0 0 0 0
0
1
2
3
4
5
6
7
8
Q1 Q2 Q3 Q4 YTD
Target AWWA 2013 2014 2015 2016
AW
W
A
B
e
n
c
h
m
a
r
k
*FY 13 – FY 16 results are 0 failures
51Sewer Overflow Rate (AWWA)
Target: 0 overflows per quarter in a year
Q
Quarter Measurement
100 (total number of sewer overflows during
the reporting period) / total miles of pipe in the
sewage collection system
Y
YTD Measurement
0 0 0 0 0
0
1
2
3
4
5
6
7
8
Q1 Q2 Q3 Q4 YTD
Target AWWA 2013 2014 2015 2016
Cumulative number of overflows per quarter in a FY
*FY 13 – FY 16 results are 0 overflows
AW
W
A
B
e
n
c
h
m
a
r
k
52Emergency Facility Power Testing
Target: 100%of the District’s facilities tested per year
(The District currently has 29 powered ready facilities)
Q
Quarter Measurement
Number of facilities tested / total facilities Y
YTD Measurement
YTD number of facilities tested / total facilities
27
48
79
100 100
0
20
40
60
80
100
Q1 Q2 Q3 Q4 YTD
Target 2015 2016
53Tank Inspection and Cleaning
Annual Target: Clean and inspect 8 tanks or more per year
Quarter & YTD Measurement
Number of tanks cleaned and inspected in a
reporting period
1
9
0 1
11
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4 YTD
Target 2015 2016
Q&Y *Measure was created in FY15
54Main 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)
Quarter & YTD Measurement
Number of mains flushed and hydrants maintained in a
reporting period
Q&Y
319 343
412 463 463
0
100
200
300
400
500
600
700
800
900
1000
Q1 Q2 Q3 Q4 YTD
Target 2015 2016
*Measure was created in FY15
55Critical Valve Exercising
Target: No less than 631 identified critical valves exercised in a year
Quarter & YTD Measurement
# of critical valves exercised in a reporting period
444 534
631 631 631
0
100
200
300
400
500
600
700
800
900
1000
Q1 Q2 Q3 Q4 YTD
Target 2015 2016
Q&Y *Measure was created in FY15
56
Next Steps
57
1 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