HomeMy WebLinkAbout07-21-15 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
July 21, 2015
11:00 A.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-
RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. ADOPT RESOLUTION NO. 4294 DESIGNATING A CHANGE OF AUTHORIZED
SIGNATORIES FOR THE DISTRICT’S OPERATING AND PAYROLL ACCOUNTS
WITH UNION BANK, N.A. (KOEPPEN) [5 minutes]
4. APPROVE THE ISSUANCE OF A PURCHASE ORDER TO HAAKER EQUIPMENT
COMPANY IN THE AMOUNT OF $402,830.28 FOR THE PURCHASE OF ONE (1)
NEW MODEL 2115P-16 VACTOR TRUCK (MARTINEZ) [5 minutes]
5. APPROVE THE ISSUANCE OF A PURCHASE ORDER TO TRACE3 IN THE
AMOUNT OF $174,725.29 FOR NEW NETWORK EQUIPMENT AND SOFTWARE
TO REPLACE THE EXISTING SERVER ENVIRONMENT (KERR) [5 minutes]
6. DROUGHT AND WATER CONSERVATION UPDATE (CAREY) [5 minutes]
7. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Mitch Thompson, Chair
Jose Lopez
2
All items appearing on this agenda, whether or not expressly listed for action, may be delib-
erated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the Dis-
trict’s website at www.otaywater.gov. Written changes to any items to be considered at the
open meeting, or to any attachments, will be posted on the District’s website. Copies of the
Agenda and all attachments are also available through the District Secretary by contacting
her at (619) 670-2280.
If you have any disability which would require accommodation in order to enable you to par-
ticipate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior
to the meeting.
Certification of Posting
I certify that on July 17, 2015 I posted a copy of the foregoing agenda near the regular
meeting place of the Board of Directors of Otay Water District, said time being at least 24
hours in advance of the meeting of the Board of Directors (Government Code Section
§54954.2).
Executed at Spring Valley, California on July 17, 2015.
______/s/_ Susan Cruz, District Secretary _____
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: August 13, 2015
SUBMITTED BY:
Joseph R. Beachem,
Chief Financial Officer
PROJECT: DIV. NO. All
APPROVED BY:
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4294 Designating a Change of Authorized
Signatories for the District’s Operating and Payroll Accounts
with Union Bank, N.A.
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4294 designating a change of
authorized signatories for the District’s operating and payroll
accounts with Union Bank, N.A.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To make a change to the authorized signatories on the District’s
operating and payroll accounts adding Kevin Koeppen, Finance Manager,
as an authorized signatory.
ANALYSIS:
On a periodic basis the District reviews its operating process and
procedures. The purpose of these reviews is to ensure the District
identifies potential weaknesses and implements improvements where
necessary. Recently, finance staff reviewed procedures for ensuring
the District is able to meet its financial obligations to vendors and
2
staff in the event of a disaster. The District maintains manual
check stock that, in a disaster situation, can be used to make
payments if the Accounts Payable system is not accessible.
These manual checks require two signatures and are maintained in a
locked cabinet, which only select personnel have access to. The
District’s current authorized signatories are:
Mark Watton - General Manager
German Alvarez – Assistant General Manager
Joseph R. Beachem – Chief Financial Officer
Staff has identified that, in the event of a disaster, there is a
risk that staff may be unable to obtain two signatures required for
issuing manual checks. Therefore, staff is recommending that the
Finance Manager, Kevin Koeppen, be added as a backup signatory to the
Union Bank operating and payroll accounts.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Demonstrate financial health through formalized policies, prudent
investing, and efficient operations.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action
B) Resolution No. 4294
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4294 Designating a Change of
Authorized Signatories for the District’s Operating and
Payroll Accounts with Union Bank, N.A.
COMMITTEE ACTION:
That Finance, Administration, and Communications Committee recommend
that the Board adopt Resolution No. 4294 designating a change of
authorized signatories for the District’s operating and payroll
accounts with Union Bank, N.A.
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.
RESOLUTION NO. 4294
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT DESIGNATING A CHANGE OF
AUTHORIZED SIGNATORIES FOR THE DISTRICT’S OPERATING AND
PAYROLL ACCOUNTS WITH UNION BANK, N.A.
WHEREAS, Otay Water District (“District”) currently
has bank accounts with Union Bank, N.A. for the District’s
operating and payroll accounts; and
WHEREAS, the Board of Directors of the District
desires to designate a change of authorized signatories on
said accounts; and
WHEREAS, the additional signatory will provide for
four signatories in the event of a disaster.
NOW, THEREFORE, BE IT RESOLVED by the Board of
Directors of the Otay Water District as follows:
That Kevin Koeppen, Finance Manager, be added as an
authorized designated signatory for each of the said
accounts.
PASSED, APPROVED AND ADOPTED by the Board of Directors
of the Otay Water District at a regular meeting, held this
13th day of August, 2015.
Ayes:
Noes:
Abstain:
Absent:
________________________________
President
Attest:
_______________________
District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: August 13, 2015
SUBMITTED BY:
Jose Martinez,
Assistant Chief of Water
Operations
PROJECT: DIV. NO. All
APPROVED BY:
Pedro Porras, Chief Water Operations
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Approval to Purchase Vactor Truck
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to issue a purchase
order to Haaker Equipment Company in the amount of $402,830.28 for
the purchase of one (1) new Model 2115P-16 Vactor truck.
COMMITTEE ACTION:
See Attachment “A”.
PURPOSE:
To obtain Board authorization to purchase a potable Vactor truck
to replace the District’s old Vactor truck.
ANALYSIS:
Currently, the District’s essential equipment to support facility
repairs includes two (2) potable Vactor trucks. Unit 144 is a
2003 Vactor Jet Rodder truck with 168,851 miles. Due to the nature
of the vehicle’s work, the useful in-service life of this machine
is normally 7-10 years and 100,000 miles. Funding for this Vactor
truck has been included in FY 2016 Capitol Purchase Budget, Project
P2282 vehicle replacement.
The new Vactor truck as shown in Attachment “B,” will continue to
be used in the removal and clean-up of heavily saturated soil when
performing maintenance on the water distribution system including
repair and replacement of service laterals, water mains, buried
valves, etc. The vehicle’s 15 cubic yard debris body allows the
Vactor to stay on site for extended periods during large emergency
breaks or performing multiple service leak repairs without the
need to make additional trips to empty the excavation spoils
thereby expediting the repairs. The vehicle is also used for
potholing to locate various utility types and depths with a minimal
surface street disturbance.
Based on system operation evaluations of work flow by the Utility
Maintenance supervision and management, it is recommended that one
(1) new Vactor truck Model 2115P-16 be purchased and the older
Vactor Unit 144 be declared surplus with an estimated salvage value
of $35,000.
In accordance with District policy, bids were solicited for the
replacement Vactor truck. Three (3) bids were received. Prices
received include all applicable fees such as taxes and delivery
and are shown as follows:
Dealer Vehicle Bid Bid Price
Haaker Equipment Company
Vactor Truck Model
2115P-16
$402,830.28
Owen Equipment
Vactor Truck Model
2115P-16
$407,962.00
Neverest Equipment
Company
Vactor Truck Model
2115P-16
$409,536.00
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The FY16 budget for this vehicle is $405,000.00 in the Vehicle
Replacement CIP P2282 with an anticipated lead time of 300 days
for delivery.
The Finance Department has determined that 100% of the funds are
available in the replacement fund.
STRATEGIC GOAL:
Operate the system to meet demand twenty-four hours a day, seven
days a week.
LEGAL IMPACT:
None.
General Manager
Attachment “A” Committee Action
Attachment “B” Vactor Truck
ATTACHMENT A
SUBJECT/PROJECT: Approval to Purchase Vactor Truck
COMMITTEE ACTION:
The Finance Administration and Communications Committee reviewed this
item at a meeting held on July 21, 2015 and the following statements
were made:
NOTE:
The “Committee Action” is written in anticipation of the Committee moving
the item forward for board approval. This report will be sent to the
Board as a committee approved item, or modified to reflect any discussion
or changes as directed from the committee prior to presentation to the
full board.
ATTACHMENT B
Model 2115P-16 Vactor truck
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: August 13, 2015
PROJECT: DIV. NO.: ALL
SUBMITTED BY: Michael Kerr, Information Technology Manager
APPROVED BY: Adolfo Segura, Assistant Chief, Admin/IT Services
Geoff Stevens, Chief Information Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: REPLACEMENT OF DATA CENTER SERVER EQUIPMENT AND UPGRADE
GENERAL MANAGER’S RECOMMENDATION:
That the Board approve the issuance of a purchase order to Trace3 in
the amount of $174,725.29 for new network equipment and software to
replace the existing server environment.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To authorize the purchase of equipment and services necessary to support
Information Technology’s daily operations and services, and to enhance
District systems to meet emerging business needs as identified in the
District’s Strategic Plan.
ANALYSIS:
The District’s business system environment is comprised of a collection
of essential computing servers that manage all day-to-day access of
electronic data, applications, and storage resources. The electronic
business resources utilized by District staff include Eden Financial
System, Geographic Information System (GIS), Voice/Phone System, Data
Recovery, SharePoint Portal and Content Management, Computerized
Maintenance Management System/Work Order, Asset Management, and Data
Retention System.
The current server environment is over seven (7) years old and lacks
functionalities and features that would make the system more efficient
and limits our ability to leverage existing District
technologies. Maintenance costs have also doubled as a result of the
existing equipment reaching its end of useful life. Continuing with the
direction to further consolidate and improve the District’s computing
needs, coupled with its end-of-life status, approximately six months
ago staff commenced extensive research into a right-fit/cost-effective
business server replacement system. Staff recognized the need for a
centrally managed server system to optimize performance, day-to-day
operation, and reduce overall maintenance and support costs. In
assessing the District’s needs, staff identified the Cisco Unified
Communication Server (UCS) system to replace the existing end-of-life
Hewlett Packet (HP) server environment. The proposed server
infrastructure replacement will provide required performance,
redundancies, and future scalability, while decreasing physical
footprint in the District’s data center. This in turn will reduce power
and cooling requirements, therefore reducing the cost of
ownership. Lastly, the UCS server system will be operated by in-house
IT staff.
Staff solicited and received three (3) qualified quotes from Nexus Inc.
for $190,643.06, Trace3 for $174,725.29, and Pinnacle for $171,620.64.
Vendor Item Product
Specification/Description
Total
Price
Nexus Cisco UCS 5100
(5108) Server
UCS 5108 Chassis & Blade Servers,
16GB DDR4-2133-MHz RDIMM/PC4-
17000/dual rank/x4/1.2v
$190,643.06
Trace3 Cisco UCS 5100
(5108) Server
UCS 5108 Chassis & Blade Servers,
16GB DDR4-2133-MHz RDIMM/PC4-
17000/dual rank/x4/1.2v
$174,725.29
Pinnacle Cisco UCS 5100
(5108) Server
UCS 5108 Chassis & Blade Servers,
16GB DDR4-2133-MHz RDIMM/PC4-
17000/dual rank/x4/1.2v
$171,620.64
Staff conducted a decision analysis of competing vendors and developed
a list of specifications based on District’s technology needs (see
Attachment B).
The selection panel consisted of the Information Technology Manager,
Network Engineer, and the Assistant Chief of Administrative and
Information Technology Services. Based on the scoring criteria
(Attachment B), the panel selected Trace3 as the overall best fit and
value for the District's UCS server system replacement.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The approved capital budget is $175,000.00 for FY16 for CIP P2469
Information Technology Network and Hardware. This expenditure of
$174,725.29 will leave a remaining balance of $274.71 in this CIP.
After this expenditure this CIP will be closed. The Project Manager
anticipates, based on financial analysis, that the budget will be
sufficient to support this project. Finance has determined that 60% of
the funding is available from the Expansion Fund and 40% from the
Replacement Fund.
STRATEGIC GOAL:
These items are in support of the District’s required services and
Strategic Plan, which specifically improve the overall operating cost.
LEGAL IMPACT:
None.
Attachments:
Attachment A – Committee Action Report
Attachment B – Selection Panel Analysis
ATTACHMENT A
SUBJECT/PROJECT: REPLACEMENT OF DATA CENTER SERVER EQUIPMENT AND UPGRADE
COMMITTEE ACTION:
The Finance, Administration and Communications Committee met on July
21, 2015 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.
SELECTION PANEL ANALYSIS FOR BLADE SERVER SYSTEM
Experience of
Proposed Staff
Approach to
the Project
Capability
to Perform
Cost/
Pricing
Relevant
Experience Sub-
Total TOTAL
MAXIMUM POINTS 10 9 8 9 6
PINNACLE
Assistant Chief,
Admin/IT Ops 7 9 7 9 8 41
129 IT Manager 8 9 7 9 10 44
Network Engineer 9 9 9 8 9 44
NEXUS
Assistant Chief,
Admin/IT Ops 8 9 7 7 8 39
126 IT Manager 8 10 9 7 8 42
Network Engineer 9 10 10 7 9 45
TRACE3
Assistant Chief,
Admin/IT Ops 8 9 7 9 8 41
133 IT Manager 8 10 9 9 10 46
Network Engineer 9 10 10 8 9 46
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: August 13, 2015
SUBMITTED BY:
Andrea Carey, Customer
Service Manager
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Drought and Water Conservation Update
GENERAL MANAGER’S RECOMMENDATION:
This is an informational item only.
COMMITTEE ACTION:
N/A
PURPOSE:
To comply with the State Water Board’s emergency conservation
regulations and the state’s mandatory conservation of potable urban
water use.
ANALYSIS:
In response to four consecutive years of dry weather in the State of
California, the State Water Board adopted emergency regulations on
May 5, 2015 mandating all urban water suppliers cut potable water use
by 8 to 36 percent, depending on their residential gallons-per-
capita-per-day average from July-September 2013. Otay Water
District’s reduction target is 20%.
Monthly Usage Comparison
The chart below shows total monthly potable purchases for 2013 and
2015 year-to-date and the target reduction goal of 20% of each month.
The District came in with lower consumption than its reduction target
in both May and June. May’s usage was 27.1% less than May 2013 and
June’s usage was 25.9% less than June 2013.
Conservation Efforts
In response to the state mandate, staff took action with a variety of
conservation outreach methods including:
1. Phone calls and emails to all District customers notifying them
of the state’s mandate.
2. Letters to the District’s top 10% of residential users.
3. Letters to all potable commercial irrigation customers.
4. Conservation message on the outside of the bill envelopes.
5. Bill inserts communicating drought updates and conservation
messaging.
6. Online target usage tracker.
7. Leak alarm notifications.
8. Water waste tracking.
9. Outreach events at the Water Conservation Garden.
10. Discussions with numerous homeowners and commercial customers on
watering restrictions and rebate programs.
11. Hired a CWA intern to assist in meeting the Governor’s
directive.
0
500
1000
1500
2000
2500
3000
3500
4000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
20% Reduction Target
2013
2015
State Target Reduction
Neighboring Agencies
In a survey of the District’s neighboring agencies that include
Sweetwater Authority, Helix Water District, and Padre Dam Municipal
Water District, the following update has been obtained.
Sweetwater Authority saved 24% in May and 25.6% in June compared to
2013 consumption. Sweetwater sent out a Prop 218 notice to its
customers of a public hearing on August 31, 2015. The notice lists a
proposed rate increase to both the commodity charge as well as the
fixed readiness-to-serve charge, effective September 1, 2015. A
typical customer using 22 units will see an increase of $7.42
bimonthly. In addition, Sweetwater is proposing to adopt drought
rates for levels 2 through 4. At this time, they are not imposing
the drought rates on their customers.
Helix Water District saved 29.2% in May and 25% in June compared to
2013 consumption. Helix implemented water use restrictions and
penalties beginning May 25, 2015. The penalties are $100 for the
first violation, $200 for a second violation within one year, and
$500 for each additional violation within one year. In addition, if
domestic water use exceeds 31 units in a two-month billing period, a
10% penalty would be applied. The following chart is included as an
example of how the penalty charge would be imposed.
Customer
Using
Penalty
Charge
Total Bill
Before
Penalty
Total Bill
With
Penalty
Penalty as
% of Total
Bill
31 units $0.55 $164.77 $165.32 0.3%
50 units $11.02 $269.46 $280.48 3.9%
75 units $24.80 $407.21 $432.01 5.7%
100 units $38.57 $544.96 $583.53 6.6%
150 units $66.12 $820.46 $886.58 7.5%
Padre Dam Municipal Water District saved 36.6% in May and 28% in
June. To date, Padre has not imposed drought rates or penalties.
Their July 15, 2015 staff report on a drought update states that they
have a two-pronged approach of aggressive public communication and
outreach as well as increased restrictions and enforcement.
Future Actions
Staff will be closely monitoring the rate of conservation and will be
reacting, as needed, to ensure customers remain mindful of the
drought situation. Staff will continue to participate in outreach
events and publicize the drought through the District’s website,
social media sites, and bill inserts.
Staff has been working on a Water Waste Mobile App. This new app
will allow customers to report water waste, get information on water
restrictions, rebates, and even link directly to the District’s
mobile web pay site.
Staff is currently working with Otay’s bill print provider on
modifying the bill print to include usage target data for customers.
This new bill print format is expected to be completed in September.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Actively manage water supply and demand.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action
B) Presentation
WATER CONSERVATION
UPDATE
Otay Water District
Board Meeting
August 13, 2015
Attachment B
0
500
1000
1500
2000
2500
3000
3500
4000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
20% REDUCTION TARGET
2013
2015
State Target Reduction
2
WATER CONSERVATION EFFORTS
Phone calls and emails to all District customers.
Letters to the District’s top residential customers.
Letters to all commercial irrigation customers.
Conservation messaging on the outside of the bill envelope.
Bill inserts communicating drought updates on conservation messages.
Online target usage tracker.
Leak alarm notifications.
Water waste tracking.
Outreach events.
Hired CWA intern to assist with drought efforts.
3
NEIGHBORING AGENCIES
Sweetwater Authority
24% savings in May and 25.6% savings in June
Prop 218 hearing end of August
Rate increases September 1st
Helix
29.2% savings in May and 25% in June
Penalty rates
Padre Dam
36.6% savings in May and 28% in June
No drought rates or penalties
4
FUTURE ACTIONS
Monitor conservation closely
Bill print changes
Water Waste App
5
WATER WASTE APP 6
QUESTIONS?
7