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HomeMy WebLinkAbout09-23-15 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 WEDNESDAY September 23, 2015 12:00 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. ANNUAL DIRECTOR’S EXPENSE REPORT FOR FISCAL YEAR 2015 (BENHAM) [5 minutes] 4. APPROVE A FINE OF $1,000 FOR METER TAMPERING AT 10305 ELMADALE DRIVE IN SPRING VALLEY (CAREY) [5 minutes] 5. APPROVE A FINE OF $22,000 TO SHARP CHULA VISTA FOR MULTIPLE VIOLATIONS OF THE DISTRICT’S CODE OF ORDINANCES (CAREY) [5 minutes] 6. APPROVE THE ISSUANCE OF A PURCHASE ORDER TO COX COMMUNICATIONS IN THE AMOUNT OF $630,000 FOR FIVE (5) YEARS FOR TELECOMMUNICATION, FACILITY CONNECTIVITY, AND INTERNET SERVICES (KERR) [5 minutes] 7. FISCAL YEAR 2015 YEAR-END STRATEGIC PLAN REPORT (STEVEN) [5 minutes] 8. ADJOURNMENT 2 BOARD MEMBERS ATTENDING: Mitch Thompson, Chair Jose Lopez All items appearing on this agenda, whether or not expressly listed for action, may be delib-erated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability which would require accommodation in order to enable you to par-ticipate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on September 18, 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 September 18, 2015. ______/s/_ Susan Cruz, District Secretary _____ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2015 SUBMITTED BY: Wales Benham Senior Accountant PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Fiscal Year 2015 Board of Directors’ Expenses GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To present the Board of the Directors’ expenses for Fiscal Year 2015. ANALYSIS: The California Government Code Section 53065.5 requires special districts, at least annually, to disclose any reimbursement paid by a district within the immediately preceding fiscal year. This Staff Report and attached documentation fulfills this requirement. (See Attachment B for the Summary and C-H for Details.) FISCAL IMPACT: None. 2 STRATEGIC GOAL: Prudently manage District funds. LEGAL IMPACT: Compliance with state law. Attachments: Attachment A Committee Action Attachment B Director’s Expenses and per Diems Attachment C-I Director’s Expenses Detail ATTACHMENT A SUBJECT/PROJECT: Fiscal Year 2015 Board of Directors’ Expenses COMMITTEE ACTION: This is an informational item only. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. California Government Code Section 53065.5 and Otay Water District’s Code of Ordinances Policy 8 require that staff present the Expenses and Per Diems for the Board of Directors on an Annual basis: •Fiscal Year 2015. •The expenses are shown by Board member and expense type. •This presentation is in alphabetical order. •This information is being presented to the Finance, Administration, and Communications Committee on September 23, 2015. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 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: Impose a $1,000 Fine for Meter Tampering GENERAL MANAGER’S RECOMMENDATION: That the Board uphold staff’s recommendation to impose a $1,000 fine for meter tampering at 10305 Elmdale Drive in Spring Valley. COMMITTEE ACTION: See Attachment A. PURPOSE: To ensure the District continues to protect the water supply and applies violations consistent with the Code of Ordinances. ANALYSIS: On June 30, 2015, the meter at 10305 Elmdale was locked for non- payment. During a visit to check the locked meter on July 10th, staff discovered water was still passing through the locked meter and removed the meter. As part of the process of removing the meter, staff locks the curb stop and installs a locking device within the curb stop to prevent an illegal connection. 2 On July 30th, after hours Operations staff was called out to the property because water was spraying out of the meter box. Upon further inspection, staff discovered the curb stop was missing and a copper pipe had been installed between the house valve and the District valve. These actions are a clear violation of Section 71A of the District’s Code of Ordinances for “installing or benefiting from any unauthorized connection to any District system and Section 71D for “Vandalizing, tampering with, or threatening any portion of the District systems, services, facilities or property…” This is the second violation at this property. On June 20, 2014, District staff discovered a copper pipe had been installed between the District valve and customer side after the meter had been pulled earlier in the month. At that time, the District fined the property owner, Mr. Frederick McClenny, $600 for this unauthorized connection. Mr. McClenny did not appeal this fine. For this incident, staff is recommending the owner be fined $1,000. This charge will be put on his next water bill which then becomes an inseparable part of that bill. Applying the fine to the property owner, Mr. Frederick McClenny, is consistent with the Code of Ordinances, Section 72.01 which states “Each person receiving service, or that owns a property that receives service, agrees to pay the District any applicable fees and charges. Such persons are also responsible for all costs and damages in connection with any violation of this Code relating to their service.” In addition, the District has added $3,322.81 for administrative costs related to the repair of the service lateral that was damaged when the curb stop was tampered with and installation of a new curb stop. These costs are as follows: Description Amount Labor cost for repair $2,441.37 Equipment cost for repair $766.90 Material cost for 26.95 units of water loss $114.54 Total $3,322.81 FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. 3 STRATEGIC GOAL: Enforce the District’s Code of Ordinances and protect the public water supply. LEGAL IMPACT: None. Attachments: A) Committee Action B) Otay’s Letter and Pictures C) Code of Ordinances Sections 71, 72 and 73 D) McClenny Appeal Letter ATTACHMENT A SUBJECT/PROJECT: Impose a $1,000 Fine for Meter Tampering COMMITTEE ACTION: The Finance, Administration and Communications Committee recommends that the Board uphold staff’s recommendation to impose a $1,000 fine for meter tampering at 10305 Elmdale Drive in Spring Valley. 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. 71-1 Adopted 2/03/2010 SECTION 71. VIOLATIONS; PROHIBITED ACTIVITIES In addition to the prohibited practices described in any other sections of this Code or by law, all persons and entities are specifically prohibited from doing, or aiding or abetting any person in, any of the following: A. Installing or benefiting from any unauthorized connection to any District system; B. Refusing or failing to pay for services, in full, when bills are due; C. Entering, improving, purchasing, trading, selling, borrowing, using or otherwise benefiting from any District property or service without authorization from the District or without following authorized procedure; D. Vandalizing, tampering with, or threatening any portion of the District systems, services, facilities or property, including but not limited to taking any action to prevent any meter or other equipment device from accurately performing its function; E. Failing or refusing to install, maintain in good repair and working condition, or test any portion of any facilities required by the District in connection with a service, including any safety or prevention device or any measuring device; F. Knowingly permitting leaks or other wastes of water or recycled water or leaks or spills of sewage or other discharge; G. Preventing District staff from accessing any facilities connected to a service, including but not limited to meters located on private property, or in any manner threatening or interfering with any District staff performing his or her duties; H. Using or allowing the use of service for more than one parcel through one meter (except for master meters approved by the General Manager under Section 24.01) or supplying, reselling, using or permitting the use of any service by any other parcel, except as permitted under Section 27.04 of this Code or in writing by the District; I. Using or permitting the use of any District service for property outside the boundaries of an improvement district or not subject to District taxes, without prior written consent of the District; J. Using or attempting to use or connect to any fire hydrant within the District without proper authorization as required by Section 24.04 of this Code; or K. Violating or refusing to comply with any condition of service under this Code or with any law or regulation applicable to the use of any such service; including violating any conditions of any permit required for service or to regulate waste, such as a waste discharge permit under Sections 26 or 52 of the Code, or failing or refusing to obtain, maintain or comply with any required permit. SECTION 72 PENALTIES AND DAMAGES 72.01 GENERAL A. User and Owner Responsibility. Each person receiving service, or that owns a property that receives service, agrees to pay the District any applicable fees and charges. Such persons are also responsible for all costs and damages in connection with any violation of this Code relating to their service. B. District Not Liable. The District shall bear no liability for any cost, damage, claim or expense incurred by District or any responsible party or third party on behalf of the District arising from or related to any violation, including, but not limited to, costs, damages, claims or expenses arising from any corrective action of the District. Such corrective actions include, but are not limited to, the removal, confiscation, disposition or use of any device, equipment, improvement or material encroaching on any District property or used in connection with any other violation. C. District Obligation to Collect Damages. Pursuant to Government Code Section 53069.6, the District shall take all practical and reasonable steps, including appropriate legal action, if necessary, to recover civil damages for the negligent, willful, or unlawful damaging or taking of property of the District. D. Assessment of Damages. Actual damages resulting from any violation, including late payment or failure or refusal to pay for service and any interest thereon, may be assessed and collected as part of a customer’s monthly bill to the extent allowed by law. The District will separately invoice any actual damages not assessed on a monthly bill, including any damages assessed against any responsible person who is not a customer. E. Unpaid or Partially Paid Bills. Bills issued by the District are due in full as provided in such bills. Failure to timely pay bills in full may lead to a reduction, suspension, or termination of service, as provided in Section 72.02(B), below, in Section 34 of this Code, or pursuant to other provisions of this Code or applicable law. In addition, if bills remain unpaid, in full or in part, the District may lien the delinquent real property and may assess damages and penalties established by District or otherwise authorized by law. 72.02 VIOLATIONS AND GENERAL PENALTIES FOR VIOLATIONS A. Notice of Violation. Notice and a reasonable period of time to correct a violation will be given prior to the termination, reduction or suspension of service or the imposition of any administrative fine. However, the District may, without notice, correct any condition or violation that endangers the health or safety or impairs any District service, facility or property or is otherwise determined by the District to require immediate action. 1. Investigative Procedures. If a possible violation is identified, observed or reported, the District will contact the allegedly responsible party to investigate. If the violation is in fact occurring, District staff will issue a notice of violation or otherwise inform the responsible party that corrective actions must be taken within a period of time deemed reasonable by the District, taking into consideration the nature of the violation and the potential damage that can arise if the violation continues. 2. Content of Notice of Violation. The notice will describe the violation, indicate the actions that must be taken, and indicate the date by which those actions must be taken. Unless immediate action is required, the notice will provide a reasonable time for the violation to be corrected. The notice will also specify the amount of any delinquency, actual damages or other amounts due the District, if any, and the telephone number of a representative of the District who can provide additional information. 3. No Notice Required; District Action. If the District determines that immediate or prompt correction of the violation is necessary to prevent waste or to maintain the integrity of the water supply, systems or facilities of the District, or for the immediate protection of the health, safety or welfare of persons or property, or for any other compelling reason, the District will take any action deemed necessary (including suspension, reduction or termination of service; locking or removal of meters; or repairs of any improvements) and a notice will be left at the affected parcel specifying any further corrective actions required. Any costs incurred by District and any applicable fines will be the responsibility of the responsible party. 4. Notice; Failure to Comply. The responsible party will be given an opportunity to correct the violation and to provide verbal, written and pictorial exculpatory evidence. If such evidence does not exonerate the responsible parties and if the violation(s) are not corrected to the satisfaction of the District within the time provided, the District may assess cost and penalties, administrative fines and may take any other action or pursue any other remedy available. Furthermore, if the violation concerns any service requirement or facility, or to prevent waste or protect the integrity of the system or the health and safety of the public, the District may suspend, reduce or terminate service to the extent permitted by law. B. Service Termination, Suspension or Reduction; Removing or Locking Meters. Service may be reduced, suspended or terminated for failure to pay for service or in connection with a violation of this Code or applicable law. Termination, suspension or reduction of service will proceed as follows: 1. Notice Prior to Termination, Suspension or Reduction of Service. Except as provided in Paragraph A, above, or in other provisions of this Code or applicable law, not less than ten (10) days notice will be given prior to the date service is reduced, suspended or terminated; provided that, where service is terminated due to failure to comply with the terms of an amortization agreement, under Section 34 of this Code, only forty-eight (48) hours prior notice is required. The notice will be delivered to the affected parcel and, if the owner of record does not reside in the affected parcel, a copy of the notice will be forwarded to the owner’s address on record with the assessor’s office via any available means, such as personal delivery, certified mail return receipt requested, email, fax or fed-ex. 2. Termination for failure to pay for service. The District may discontinue any or all service due to failure to pay the whole or any part of a bill issued by the District. In connection with termination of water service, the provisions of Section 60373 of the Government Code, or any other appropriate provision of law, or as set forth in Section 34 of this Code of Ordinance, will be followed. In connection with sewer, Section 71672 of the California Water Code or other applicable requirements will be followed. C. Reconnection or Reinstatement of Service, Unlocking or Reinstalling Meters. If service is reduced, suspended or terminated for any reason, each of the following conditions applicable to the situation must be satisfied or arrangements satisfactory to the General Manager or a designee must be made before service is reinstated: 1. Outstanding amounts for service bills, including any service charges for benefits derived from the violation, must be paid; 2. All required deposits (including any security deposits), actual damages, fines, costs, charges and penalties must be paid; 3. Any amounts due for the removal, locking, servicing, repair or replacement of meters or other facilities required for service must be paid at the rates in effect at the time of reinstatement, as set forth on Appendix A to this Code or other schedule of fees then in effect; 4. All violations and related damages or conditions must have been corrected and/or repaired and evidence satisfactory to the District to that effect and demonstrating that it is safe to reinstate service, must have been provided to and approved by the District; and 5. If the service was originally in the name of a tenant, the District may require the owner of the parcel to request the service account under his or her name and responsibility. D. Owner Responsibility for Account. In addition to owners’ obligations under subsection (A) of section 72.01 and subsection (C)(5) of Section 72.02, above, and any other remedies provided by this Code or by applicable law, Owners may be required to deliver to the District a form of acknowledgement or authorization for service to a tenant. In addition, if (i) a tenant engages in any violation, (ii) if the District has reduced, suspended or terminated any service to a tenant three (3) times within any twenty-four (24) month period or (iii) the tenant has failed or refuses to comply with the terms of payment arrangements with the District four (4) times, the District reserves the right to demand that the property owner take responsibility for services to the tenant- occupied parcel. The General Manager or a designee shall develop procedures to implement these requirements. E. Right of Access to Customer’s Premises; Interference. If any person refuses to consent to an investigation of a possible violation, or prevents or refuses to allow access to District staff or authorized representatives to any premises or facility during an investigation or in connection with any termination, reduction or suspension of service, the District may seek an injunction or a warrant, as provided in Section 71601 of the Water Code. F. Other Remedies. In addition to the actions contemplated in this Section, the District may seek other remedies authorized or required by any applicable law, including imposing an administrative fine, pursuant to Section 72.06, or pursuing other available civil or criminal remedies. 72.03 CERTAIN SPECIFIC OPERATIONAL VIOLATIONS A. Unauthorized Connections. The District shall bear no cost or liability for any unauthorized connection. In addition to other remedies, any unauthorized connection is subject to a Type II fine, pursuant to Section 72.06 depending upon the severity, duration and reoccurrence of the violation and any other factors the District may reasonably take into consideration.., Further, the District may demand that the unauthorized connection be immediately disconnected. In the alternative, if the customer refuses to take immediate action, or if immediate actions is necessary as set forth in Section 72.02(A)(3), above, the District may immediately disconnect, remove, confiscate, destroy or dispose of any parts installed or used for the unauthorized connection, all at the expense of the customer and any other responsible party. To the extent allowed by law, the District may also, immediately or as otherwise deemed advisable by the District, terminate service to any parcel and any person that allows, uses or benefits from such unauthorized connection. B. Water waste. No customer shall knowingly permit leaks or other wastes of water, including, but not limited to, allowing runoff on any portion of his or her property, engaging in non-permitted uses of water, or failing to take corrective action after notice of any leaks or water waste is given. If the District determines that water waste is occurring, the District will: 1. Notify the customer that they are in violation of the District’s Code of Ordinances. 2. Notwithstanding the foregoing, the District may, without prior notice, repair or replace any District controlled facilities at the cost of the person identified as the responsible party, if any. 3. If the water waste is due to a condition within the customer’s property or facilities, the District may (i) require the customer to repair or replace the affected facilities, immediately or within a reasonable time, depending on the situation; or (ii) if necessary to prevent further waste, adjust, lock or remove the meter. If any repair or replacement required is not completed in a timely manner, the District may perform the repair or replacement at the cost of the customer or may terminate service without further notice. C. Meter Tampering. In addition to other remedies, tampering is subject to a Type II fine pursuant to Section 72.06 depending upon the severity, duration and reoccurrence of the violation and any other factors the District may reasonably take into consideration. Additionally, tampering may be prosecuted as a crime under Section 498 of the California Penal Code, as set forth in Section 73.01 of this Code. D. Fire Service Violation. Fire service is subject to compliance with all provisions of this Code and the law concerning water service, and failure to comply with such provisions may result in the reduction, suspension, termination or disconnection of water service for fire protection, without any liability to District. Furthermore, illegal connections or other violations relating to fire service are subject to either a Type I or Type II fine, at the option of the District, and may be prosecuted as crimes. E. Backflow prevention, screens and other safety devices. If service requirements include the installation, testing and maintenance of backflow prevention devices (Section 23.04 of this Code), screens or other safety operational items, in addition to, or in lieu of, other remedies provided herein, the District may apply any of the remedies under Section VI and VII of the District’s Ordinance No. 386, as amended or renumbered. Furthermore, violations relating to backflow testing may be prosecuted as set forth in Section 73.01 of this Code. Violations of backflow requirements or knowingly filing a false statement or report required by a local health officer are subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. F. Violation Concerning Recycled Water Service. In addition to any fine, revocation, suspension or penalty imposed under Section 26 in connection with any violation of said Section, including permit suspension or revocation under Section 26.07.C, the District may (i) suspend or terminate water and or sewer service to the property, the owner and/or the operator; (ii) require payment by the owner for any damage to the District facilities, reimbursement to District of costs and expenses, or fines imposed on the District in connection with such violation; or (iii) prosecute the responsible party under any applicable provision of this Code, the Water Code or the Penal Code. Additionally, any violation concerning recycled water service is subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. G. Violation Concerning Sewer Service. In addition to any other remedy, fine or penalty provided by this Code or applicable law, failure to comply with any requirements of sewer service, including requirements for the preservation of public health, safety and welfare and including, but not limited to, the requirements established under Article II, Chapter 2, Sections 50 to 56.04 of this Code, as hereafter amended or as supplemented by other District Rules and Regulations for Sewer Service, the California Health and Safety Code, the California Code of Regulations, Titles 17 and 22, and Water Agency Standards. Furthermore, may be prosecuted as set forth in Section 73.01 of this Code. Additionally, any violation concerning sewer service is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. H. Theft, Fraud, or Misappropriation. In addition to any other remedy, fine or penalty provided by this Code or applicable law, any violation involving theft, fraud or misappropriation of District water, services, or property is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. 72.04 VIOLATIONS OF CONSERVATION OR OTHER WATER USE RESTRICTION PROVISIONS The District has established and published conservation measures set forth in Section 39 of the Code. Commencing with declared Level 2 conditions, the District may assess water shortage rates and charges previously adopted. In addition, after notice of the declared water shortage level is given as required by law, any person who uses, causes to be used, or permits the use of water in violation of such requirements (other than a person who qualifies for an applicable exemption, if any) may be assessed damages, penalties and fines. A. Additional provisions concerning use restriction violations. In addition to payment of actual damages, the following may apply to a violation of any water conservation or water use restriction measure: 1. A change on the account holder shall not cause the account to revert to pre-violation status unless the new account holder provides evidence that it is not related to the violator and had no responsibility for the prior account. 2. The District may reduce, suspend or terminate service to any parcel immediately and without further notice if the violation involves or results in water waste, as set for in Section 72.03(B), above. 3. Willful violations of mandatory conservation measures described in Section 39 of this Code may be enforced by terminating service to the property at which the violation occurs, as provided by Section 356 of the California Water Code. B. Prosecution for violations of conservation measures. Pursuant to Section 377 and 71644 of the California Water Code, each violation of the District’s Conservation Ordinance, set fort in Section 39 of this Code, may be prosecuted as a misdemeanor, punishable by imprisonment in the County jail for no more than thirty (30) days or by a fine, as set forth in subsection (C), below. C. Assessment of fines for violations of conservation or water use restriction provisions. Any responsible party who fails to comply with any conservation or use restriction measure is subject to the assessment of an administrative Type I fine, added to account, pursuant to Section 72.06, below. 72.05 VIOLATIONS INVOLVING DISTRICT REAL PROPERTY A. Removal, Disposition and Costs. The District has absolute discretion to determine the corrective action required in connection with any violation involving District real property, including requiring the owner of any unauthorized encroachment or improvement to remove it or taking action to remove it immediately and without notice. Any improvements or uses placed within or on any District property or right of way are subject to the following: 1. Costs and Damages. All costs and damages shall be the responsibility of the customer and any other responsible party. Furthermore, the District shall not be liable for costs to repair or replace any unauthorized encroachment or improvement, or any property, improvement or thing used in connection with, supported by or attached thereto. 2. Burden of proof. The burden shall be on the user to prove to the District’s satisfaction, the authority, scope and extent of any right to access, improve or use the District’s property. Only written evidence in the form of an agreement, deed, statute, recorded or official map or plat, governmental regulation or other right may be used to establish such claim of right. B. Notice. In connection with any improvement or use that does not constitute a health hazard and does not interfere with the District’s use of its property, the District will give written notice of up to sixty (60) days, at the discretion of the General Manager, to cease, terminate, eliminate or remove the offending improvement, structure or use. Any written notice will be given to the responsible party or posted at the property where the trespass or encroachment occurs. If the responsible party is not the owner of any real property affected by the violation, the District will also give notice to the owner of record at the address on record with the assessor’s office via personal delivery, certified mail return receipt requested or via Fed-Ex. C. Immediate action. In connection with any improvement that constitutes a health hazard or interferes with the District’s use of any District property, the District will take any immediate action deemed necessary by the General Manager. D. Fines. In addition to all other remedies provided under this Article or under applicable law, the District may impose a fine as provided in Section 72.06. Additionally, the District may impose a fine up to either the amount specified on any sign, or a Type I or Type II fine, at the option of the District, in connection with any trespass on District property in violation of a sign prohibiting trespassing, pursuant to Section 72.06, below. E. Separate violation. A separate violation will accrue for each day after the deadline to cease, terminate, eliminate or remove the trespass or encroachment, as set forth in the notice. 72.06 ADMINISTRATIVE FINES Any administrative fines established herein shall be in the nature of civil penalties and shall be additional and cumulative to any other fines, damages or any other charges established by the District and are also separate from and cumulative to any other civil or criminal penalty, fine or remedy. In connection with each violation, the District may assess a fine up to the amount specified in the schedule of fines for the type of fine being imposed. Each day during which a violation is in effect constitutes a separate violation and violations are cumulative while the account is in the name of the original violator or any person that participated in or benefited from the violation. Except where the violation creates an immediate danger to health or safety, the person responsible for the continuing violation will be provided a reasonable period of time to correct or otherwise remedy the violation(s) prior to the imposition of administrative fines. A. Assessment of Fines for Technical Violations of Other Code Provisions. Any person who engages in a violation of any provision of this Code is subject to the assessment of a separate administrative Type I Fine, unless subject to a more severe fine as set forth in this Code. B. Assessment of Separate Fines. Nothing in this code or the limits specified per violation shall prevent the imposition of separate fines for each separate violation committed during a single act. For example, in connection with a violation concerning sewer service that involves a trespass on any portion of the District’s real property, separate fines may be assessed for the trespass, the damage to District personal property, the damage to District real property; the damage to the sewer system and the activity resulting on all the damages. C. Types of Fines. The amount for each type of fine specified below may increase automatically to reflect any higher amount authorized by law or regulation. The District has determined to establish two types of fines based on the nature of the violation, as follows: 1. Type I Fine. Any violation that does not have the potential to endanger the health or safety of the public. The fine will not exceed the amount specified in the Section 36900(b) of the California Government Code or Appendix A for a first, second, third or each additional violation of that same ordinance or requirement within a twelve-month period. 2. Type II Fine. Any violation that has the potential to endanger the health or safety, including, but not limited to, unauthorized or illegal connections, meter tampering, water theft, , or knowingly filing a false statement or report required by a local health officer . The fine will not exceed the amount specified on Appendix A per each day the violation is identified or continues. D. Collection of Fines. Any fines assessed by the District are payable directly to the District, are due upon issuance or as otherwise indicated on the notice or bill, and are delinquent 30 calendar days from the due date. E. Notice of Administrative Fine; Content. Notice of an administrative fine pursuant to this section will contain the following information: (i) a brief description of the violation(s); (ii) the date and location of the violation(s); (iii) a brief description of corrective action(s) required, as appropriate; (iv) a statement explaining that each day the violation continues constitutes a new violation; (v) in the case of violations creating an immediate danger to health or safety, the amount of civil penalty assessed or, in all other cases, the amount of civil penalty to be assessed if the violation(s) are not corrected within the time provided by the notice; (vi) a statement of the procedure for payment and the consequences of failure to pay; (vii) contact information for the District employee that should be contacted to discuss the notice and provide evidence of compliance; and (viii) a brief statement describing the responsible party’s right to request further review, pursuant to subsection (F), below. F. Option for Board Review . Persons receiving a Notice of Administrative Fine may request Board review. The request for Board consideration must be in writing, must be received by the District Secretary within ten (10) calendar days from the date of the notice and must include contact information, an explanation of the basis for the request, and any supporting documentation said person(s) wish to provide to the Board for review and consideration. District staff will review the petitioner’s request and will make a recommendation to the Board in light of its investigation. The District will provide notice of the date, time and place for Board consideration by electronic means, facsimile or first class mail sent to the return addressee indicated on the written request. G. Any fines assessed pursuant to the Notice of Administrative Fines must be timely paid notwithstanding the filing of a request for Board review. At the time of Board review, the petitioner may, address the Board and respond to the charges to show good cause why the fine should not be imposed; however, the customer is not entitled to a full judicial-type hearing with cross examination, sworn testimony, etc. In accordance with the provisions of Government Code Section 53069.4, the Board’s determination shall be final and conclusive, and shall be deemed confirmed, if not appealed within 20 calendar days to the Superior Court of the County of San Diego. 73-1 Adopted 2/03/2010 SECTION 73 ADDITIONAL DISTRICT REMEDIES Each day during which a violation commences or continues shall constitute a separate violation which may be so prosecuted. In addition to, or on lieu of any damages, fines or other remedies provided in any other section of this Code, at the District’s sole and absolute discretion, the District may enforce any other remedies available to it in law or equity. 73.01 OTHER REMEDIES OF DISTRICT A. Collection of Unpaid Bills on Tax Roll. Pursuant to the provisions of the Health and Safety Code, commencing with Section 5470, the District may cause delinquent charges for services to be collected on the tax roll in the same manner as its general taxes. B. Costs of Suit. Any person who violates any provision of this Code of Ordinance shall be liable for costs of any civil suit required to enforce the District’s rights, including but not limited to reasonable attorney’s fees in accordance with Civil Code Section 1882.2. The provisions of Civil Code Section 1882 et seq. are incorporated herein by reference. This Article shall be interpreted so as to be consistent with Civil Code Sections 1882 et seq. C. Reward. In accordance with Government Code Section 53069.5, the District may offer and pay a reward, in an amount determined by the District, for information leading to the determination of the identity of, and the apprehension of, any person whose willful misconduct results in injury or death to any person or who willfully damages or destroys any property of the District or any property of any other local agency or state or federal agency located within the boundaries of the District. The person who has willfully damaged or destroyed such property shall be liable for the amount of any reward paid pursuant to this section. D. Parental liability for Acts of Minors. If a violation is due to the acts of a minor child, the minor and his or her parents or guardians, as applicable, shall be jointly and severally liable to the maximum extent allowed by law, including parental liability pursuant to Section 1714.1 of the California Code of Civil Procedure, as hereafter amended or renumbered. E. Backflow testing; Prosecution. A person is guilty of a misdemeanor in connection with the violation of any provision of the California Code of Regulations concerning backflow testing, including non-compliance with any order to test, knowingly filing a false statement or report concerning any information required by the District or failure to use a person qualified to conduct the testing. Such misdemeanor is punishable by a fine of up to $500 or by imprisonment not exceeding 30 days. Each day of a violation is a separate offense. F. Sewer Service Violation; Prosecution. Pursuant to Section 71689.27 of the Water Code of the State of California, upon conviction of a violation of any ordinance or provision of this Code concerning the sewer system the person shall be punished by being imprisoned in the county jail. G. Theft of Utility Services, Water or Waterworks; Prosecution. Pursuant to Sections 498, 624 and 625 of the Penal Code of the State of California, theft of District facilities or theft of water or other utility services, including theft through unauthorized connections, may be prosecuted as a crime. 73-2 Adopted 2/03/2010 H. Prosecution of Code Violations. The District may, at its option, prosecute or cause to be prosecuted any violation of this Code of Ordinance or any other Ordinance of the District as a misdemeanor, pursuant to Section 71600 of the California Water Code. I. Receipt or Purchase of Stolen Property; Prosecution. Pursuant to Section 496a of the Penal Code of the State of California, purchase or receipt of stolen property belonging to the water system, may be prosecuted as a crime. J. Junk Dealers and Recyclers; Remedies. To the extent provided by law, including the provisions of AB844, approved by the Governor and chaptered in September of 2008, the District will pursue remedies available through or against any junk dealer or recycler that purchases any District property without prior written authorization from District. 73.02 NOTICE TO DISTRICT CONCERNING VIOLATIONS Any person noticing or discovering an unauthorized connection to the District’s sewer, water or recycled water system from a parcel owned or occupied by such person must notify the District immediately. If the unauthorized connection affects a parcel owned by the person, he or she must remove the unauthorized connection immediately and must notify the District. If the person rents or leases the affected parcel, the person shall provide the District the name and contact information of the owner of the parcel. 73.03 SEVERABILITY If any portion of any chapter, section, subsection, paragraph, sentence, clause, or phrase of this Article is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, independent and severable provision and such holding shall not affect the validity of the remaining portions hereof. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 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: Impose a $22,000 Fine to Sharp Chula Vista for Multiple Violations of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Board uphold staff’s recommendation to impose a $22,000 fine to Sharp Chula Vista for multiple violations of the District’s Code of Ordinances. COMMITTEE ACTION: See Attachment A. PURPOSE: To ensure the District continues to protect the water supply and applies violations consistent with the Code of Ordinances. ANALYSIS: On July 28, 2015, District Inspector Larry Cannon visited a project currently under construction at Sharp Chula Vista. The project involves the installation of two new services, one for fire flow and the other for potable use. When Mr. Cannon entered the site, he witnessed subcontractor, Kyne Construction employees, taking water out of the number 1 test port on the fire line and filling up the 2 private side for a hydro test through the number 4 test port. As no meter was present at the property, the water being used was unmetered. Per the Construction Pre-Con sign-in sheet for the project, connection to the District’s system or fire line without a meter is subject to a $1,000 fine. What also concerned Mr. Cannon was that no one from the site had requested that the two District valves that would feed water to these services be turned on. Water should not have been flowing from test port 1 with the valves in the off position. When Mr. Cannon walked over to the valves in the street, he found they were in the “open” position. The only time District staff has opened the valves at this site was on May 13, 2015 to do routine bacterial testing. The valves were immediately closed after the testing was complete. These valves only function to serve these two services (potable and fire) on the Sharp Chula Vista site and had no reason to be open until the project was near completion. Section 71D of the District’s Code of Ordinances (the “Code”) states that “Vandalizing, tampering with, or threatening any portion of the District systems, services, facilities or property...” is prohibited. Furthermore, the Construction Pre-Con Sign-In Sheet (Attachment B) specifies that operation of District facilities is subject to a $5,000 fine. In addition to the above violations, Kyne Construction was moving water through unapproved backflow devices and also had created a submerged inlet when pulling water out of test port 1 which had the potential to cause cross-connection. Per Section 23.04 of the Code, “It is unlawful for any person, firm, or corporation at any time to make or maintain or cause to be made or maintained, temporarily or permanently, for any period of time whatsoever, any cross-connection between plumbing pipes or water fixtures being served with water by the District water department and any other source of water supply;…” This is a Type II violation as it has the potential to endanger the health and safety of the public and is subject to a $5,000 fine. The above violations are exacerbated further in that each of these violations was committed on two separate water systems and, accordingly, the penalties are doubled. Per Section 72.06B of the Code, “Nothing in this code or the limits specified per violation shall prevent the imposition of separate fines for each separate violation committed during a single act.” The chart below shows the itemized fine amounts for each service. 3 Summary of Fine Amount  Tampering with District Facilities (FSV‐14‐009) $ 5,000 Tampering with District Facilities (D0675‐090196) $ 5,000 Water Theft  (FS‐14‐009) $ 1,000 Water Theft (D0675‐090196) $ 1,000 Backflow Violations (FS‐14‐009) $ 5,000 Backflow Violations (D0675‐090196) $ 5,000 Total Fine $22,000 While this is the first fine assessed to Sharp Chula Vista, they have had past incidents which required staff to spend additional time on projects because changes were made without going through the proper approval process. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The fiscal impact is limited to the amount of the fine assessed. STRATEGIC GOAL: Enforce the District’s Code of Ordinances and protect the public water supply. LEGAL IMPACT: None. Attachments: A) Committee Action B) Construction Pre-Con Sign-In Sheet C) Otay’s Letter with Pictures D) Code of Ordinances Sections 23, 71, 72 and 73 E) Sharp’s Appeal Letter with Pictures ATTACHMENT A SUBJECT/PROJECT: Impose a $22,000 Fine to Sharp Chula Vista for Multiple Violations of the District’s Code of Ordinances COMMITTEE ACTION: That the Board approve the Finance, Administration, and Communications Committee recommendation to uphold staff’s recommendation to impose a $22,000 fine to Sharp Chula Vista for multiple violations of the District’s Code of Ordinances. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. 23-1 SECTION 23 NON-RESPONSIBILITY OF DISTRICT 23.01 INTERRUPTIONS OF WATER SERVICE District does not guarantee continuous delivery of water on demand. From time to time it may be necessary for the District to shut off the flow of water in any of its water systems. Except in emergencies, such stoppages will not be made without prior notice to the customers involved. District shall not assume any responsibility for loss or damages which may occur due to interruption of water service. 23.02 PRIVATELY-OWNED WATER LINES The District assumes no responsibility for the delivery of water through privately-owned pipelines or systems, nor shall it assume any responsibility for damages resulting from the operation of any such system even though water may be received from a district water distribution system. 23.03 WATER PRESSURE REGULATION A. Customer Responsibility. The District shall assume no responsibility for water pressure regulation within a customer's service area. The customer shall be responsible for providing adequate safeguard measures for the customer's water system wherever pressure regulation is necessary. B. Requirement for Installation in New Construction. Customers making application for water service for new construction for residential, commercial or industrial use shall be required to install an appropriate pressure regulation device for such service. 23.04 CROSS-CONNECTIONS AND BACKFLOW DEVICES State Regulations for Cross-Connections The California Department of Public Health has issued Regulations Relating to Cross-Connections (California Administrative Code, Title 17 - Public Health) for the purpose of safeguarding drinking water supplies by preventing backflow into public water systems. It is unlawful for any person, firm, or corporation at any time to make or maintain or cause to be made or main- tained, temporarily or permanently, for any period of time whatsoever, any cross-connection between plumbing pipes or water fixtures being served with water by the District water department and any other source of water supply; or to main- 23-2 tain any sanitary fixtures or other appurtenances or fixtures which by reason of their construction may cause or allow back- flow of water or other substances into the water supply system of the District and/or the service of water pipes or fixtures of any consumer of the District. A. Definitions: For a complete listing see California Administrative Code, Title 17, Public Health. 1. Air-Gap Separation (AG): The term "air-gap separation" means a physical break between a supply pipe and a receiving vessel. The air-gap shall be at least double the diameter of the supply pipe measured vertically above the top rim of the vessel, in no case less than one inch. 2. Approved Backflow Prevention Device: The term "approved backflow prevention device" shall mean devices which have passed laboratory and field evaluation tests performed by a recognized testing organization which has demonstrated their competency to perform such test to the California Department of Health Services and the Otay Water District. 3. AWWA Standard: The term "AWWA Standard" means an official standard developed and approved by the American Water Works Association (AWWA). 4. Backflow: The term "backflow" shall mean a flow condition, caused by a differential in pressure that causes the flow of water or other liquids, gases, mixtures or substances into the distributing pipes of a potable supply of water from any source or sources other than an approved water supply source. Back-siphonage is one cause of backflow. Back pressure is the other cause. 5. Cross-Connection: The term "cross-connection" as used in this Ordinance means any unprotected actual or potential connection between a potable water system used to supply water for drinking purposes and any source or system containing unapproved water or a substance that is not or cannot be approved as safe, wholesome, and potable. Bypass arrangements, jumper connections, removable sections, swivel or changeover devices, or other devices through which backflow could occur, shall be considered to be cross-connections. 6. Double Check Valve Assembly: The term "double check valve assembly" means an assembly of at least two independently acting check valves, including tightly closing shut-off valves, on each side of the check 23-3 valve assembly and test cocks available for testing the water tightness of each check valve. 7. Reduced Pressure Principle Backflow Prevention Device (RP): The term "reduced pressure principle backflow prevention device" means a device incorporating two or more check valves and an automatically operating differential relief valve located between the two check valves, a tightly closing shut-off valve on each side of the check valve assembly, and equipped with necessary test cocks for testing. 8. Reduced Pressure Detection Assembly (RPDA): Same as RP except as approved for fire services. 9. Service Connection: The term "service connection" refers to the point of connection of a user's piping to the Otay Water District facilities. B. General Provisions 1. Unprotected cross-connections with the public water supply are prohibited. 2. Whenever backflow protection has been found necessary, the District will require the water user to install an approved backflow prevention device, by and at his/her expense, for continued services or before a new service will be granted. 3. Wherever backflow protection has been found necessary on a water supply line entering a water user's premises, then any and all water supply lines from the District's mains entering such premises, buildings, or structures shall be protected by an approved backflow prevention device. The type of device to be installed will be in accordance with the requirements of this Ordinance. C. Where Protection is Required 1. Each service connection from the District water system for supplying water to premises having an auxiliary water supply shall be protected against backflow of water from the premises into the public water system. 23-4 2. Each service connection from the District water system for supplying water to any premises on which any substance is handled in such fashion as may allow its entry into the water system shall be protected against backflow of the water from the premises into the public system. This includes commercial accounts, irrigation accounts, multi-family dwellings, multi-story buildings, complex piping, and locations where the handling of process waters and waters originating from the District water system may be subjected to deterioration in sanitary quality. D. Type of Protection Required 1. The type of protection that shall be provided to prevent backflow into the approved water supply shall be commensurate to the degree of hazard that exists on the consumer's premises. The type of protective device that may be required (listed in an increasing level of protection) includes: Reduced Pressure Principle Backflow Prevention Device (RP), and an Air-gap separation (AG). The water user may choose a higher level of pro- tection than that required by the District. The minimum types of backflow protection required to protect the approved water supply at the user's water connection to premises with varying degrees of hazard, are given in Table 1 of the California Administrative Code, Title 17, Public Health. Situations which are not covered in Table 1 shall be evaluated on a case-by-case basis and the appropriate backflow protection shall be determined by the District. E. Approved Backflow Prevention Devices 1. Only backflow prevention devices which have been approved by the District shall be acceptable for installation by a water user connected to the District's potable water system. 2. The District will provide to any affected cus- tomer, upon their request, a list of approved backflow prevention devices. F. Backflow Prevention Device Installation 1. Backflow prevention devices shall be installed in a manner prescribed in Section 7603, Title 17 of 23-5 the California Administrative Code. Location of the devices should be as close as practical to the user's connection. The District shall have the final authority in determining the required location of a backflow prevention device. a. Air-gap Separation (AG) - The air-gap separation shall be located on the user's side of and as close to the service connection as is practical. All piping from the service connection to the receiving tank shall be above grade and be entirely visible. No water use shall be provided from any point between the service connection and the air-gap separa- tion. The water inlet piping shall terminate a distance of at least two (2) pipe diameters of the supply inlet, but in no case less than one inch above the overflow rim of the receiving tank. b. Reduced Pressure Principle Backflow Prevention Device (RP) - The approved reduced pressure principle backflow prevention device shall be installed on the user's side of the service connection at a distance consistent with the District's Standard Drawings and Specifications. The device shall be installed a minimum of twelve inches (12") but not more than eighteen inches (18") above grade measured from the bottom of the relief valve and with a minimum of twelve inches (12") side clearance. The device shall be installed so that it is readily accessible for maintenance and testing. Water supplied from any point between the service connection and the RP device shall be protected in a manner approved by the District. Additionally, materials and installation shall at all times conform to water agency standards which can be found at www.sdwas.com. G. Backflow Prevention Device Testing and Maintenance 1. The owners of any premises on which, or on account of which backflow prevention devices are installed, shall have the devices tested by a person who has demonstrated their competency in 23-6 testing of these devices to the District and has been approved by the District. Backflow prevention devices must be tested at least annually and immediately after installation, relocation or repair. The District may require a more frequent testing schedule if it is determined to be necessary. No device shall be placed back in service unless it is functioning as required. A report in a form acceptable to the District shall be filed with the District each time a device is tested, relocated or repaired. These devices shall be serviced, overhauled, or replaced whenever they are found to be defective and all costs of testing, repair, and maintenance shall be borne by the water user. 2. Initial testing after installation and subse- quent retesting shall at all times conform to water agency standards as outlined in www.sdwas.com. 3. The District will supply affected water users with a list of persons acceptable to the District to test backflow prevention devices. The District will notify affected customers by mail when annual testing of a device is needed and also supply users with the necessary forms which must be filled out each time a device is tested or repaired. 4. Existing double check valves and pressure vacuum breakers on median strip irrigation areas which function adequately may remain in place, however, as the District no longer recognizes such devices to be commensurate with the degree of potential hazard, failures of these devices will necessitate their replacement with a reduced pressure principal backflow prevention device (RP). H. Backflow Prevention Device Removal 1. Written approval must be obtained from the District before a backflow prevention device is removed, relocated, repaired or replaced. a. Removal: The use of a device may be discontinued and device removed from service upon presentation of sufficient 23-7 evidence to the District to verify that a hazard no longer exists or is not likely to be created in the future. b. Relocation: A device may be relocated following confirmation by the District that the relocation will continue to provide the required protection and satisfy installation requirements. A retest will be required following the relocation of the device. c. Repair: A device may be removed for repair, provided the water use is either discontinued until repair is completed and the device is returned to service, or the service connection is equipped with other backflow protection approved by the District. A retest will be required following the repair of the device. d. Replacement: A device may be removed and replaced provided the water use is discontinued until the replacement device is installed and tested. All replacement devices must be approved by the District and must be commensurate with the degree of hazard involved. I. User Supervisor 1. At each premise where it is necessary, in the opinion of the District, a user supervisor shall be designated by and at the expense of the water user. This user supervisor shall be responsible for the monitoring of the backflow prevention devices and for avoidance of cross connections. In the event of contamination or pollution of the drinking water system due to a cross- connection on the premises, the District shall be promptly notified by the user supervisor so appropriate measures may be taken to overcome the contamination. The water user shall inform the District of the user supervisor's required information on an annual basis or whenever a change occurs. J. Administrative Procedures Water System Survey 23-8 1. The District shall review all requests for new services to determine if backflow protection is needed. Plans and specifications must be submitted to the District upon request for review of possible cross-connection hazards as a condition of service for new service connections. If it is determined that a backflow prevention device is necessary to protect the public water system, the required device must be installed before service will be activated. 2. The District may require an on premise inspection to evaluate cross-connection hazards. The District will transmit a written notice requesting an inspection appointment to each affected water user. Any customer who cannot or will not allow an on premise inspection of their piping system shall be required to install the backflow prevention device the District considers necessary. 3. The District may, at its discretion, require a reinspection for cross-connection hazards of any premise to which it serves water. The District will transmit a written notice requesting an inspection appointment to each affected water user. Any customer who cannot or will not allow an on premise inspection of their piping system shall be required to install the backflow prevention device the District considers necessary. K. Customer Notification - Device Installation and/or Repair (Corrective Action) 1. The District will notify the water user of the survey findings, listing corrective action to be taken if required. A period of 30 days will be given to complete all corrective action required including installation of backflow prevention devices. 2. A second notice will be sent to each water user who does not take the required corrective action prescribed in the first notice within the 30 day period allowed. The second notice will give the water user a 14 day period to take the required corrective action and will 23-9 generate the assessment of a fee in accordance with Appendix A. If no action is taken within the 14 day period, the District may terminate water service to the affected water user until the required corrective actions are taken. 3. A third and final notice will be sent to each water user who fails to take the requisite corrective action detailed in the second notice within the 14 day period allowed. The third notice will indicate the date of service termination and will generate the assessment of a fee in accordance with Appendix A. 4. Only written verification from a certified and District-approved tester/installer received in the District office within the allotted time period will constitute compliance with the above requirements. L. Customer Notification - Testing 1. The District will notify each affected water user when it is time for the backflow preven- tion device installed on their service connections to be tested. This written notice shall give the water user 30 days to have the device tested and supply the water user with the necessary form(s) to be completed and submitted to the District. 2. A second notice shall be sent to each water user who does not have their backflow preven- tion device tested as prescribed in the first notice within the 30 day period allowed. The second notice will give the water user a 14 day period to have their backflow prevention device tested and will generate the assessment of a fee in accordance with Appendix A of this Ordinance. If no action is taken within the 14 day period, the District may terminate water service to the affected water user until the subject device is tested. 3. A third and final notice will be sent to each water user who fails to have their backflow prevention device(s) tested as required in the second notice within the 14 day period allowed. The third notice will indicate the date of service termination and will generate the 23-10 assessment of a fee in accordance with Appendix A of this Ordinance. 4. Submittal of verification of testing by a District approved tester on the appropriate form(s) received in the District office within the allotted time period will constitute compliance with the above requirements. M. Water Service Termination A. General When the District encounters water uses that rep- resent a clear and immediate hazard to the potable water supply that cannot be immediately abated, the District shall institute the procedure for discontinuing the District water service. A reconnection fee will be assessed in accordance with Appendix A. B. Basis for Termination Conditions or water uses that create a basis for water service termination shall include, but are not limited to the following items: 1. Refusal to install a required backflow pre- vention device; 2. Refusal to test a backflow prevention device; 3. Refusal to repair a faulty backflow prevention device; 4. Refusal to replace a faulty backflow prevention device; 5. Direct or indirect connection between the public water system and a sewer line; 6. Unprotected direct or indirect connection between the public water system and a system or equipment containing contaminants; 7. Unprotected direct or indirect connection between the public water system and an auxil- iary water system; and/or 23-11 8. Any situation which presents an immediate health hazard to the public water system. Additional remedies for failure to comply with Cross- Connection requirements are referenced in Section 72 of the Code f Ordinances and may be prosecuted as set forth in Section 73.01 of this Code. N. Water Service Termination Procedures The District has absolute discretion to determine the corrective action required and referenced in Sections 72 and 73 of this Code. 1. For conditions 1, 2, 3, or 4, the District will terminate service to a customer's premise after 2 written notices have been sent specifying the corrective action needed and the time period in which it must be done. If no action is taken within the allowed time period water service may be terminated. 2. For conditions 4, 5, 6, 7, or 8, the District will take the following steps: a. Make reasonable effort to advise the water user of intent to terminate water service; b. Terminate water supply and lock service valve. The water service will remain inactive until correction of violations has been approved by the District. O. Requirements for addition to or renewal on the Otay Water District list of approved backflow prevention device testers A. Each applicant desiring initial addition to or annual renewal on the District’s List of Approved Backflow Prevention Device Testers shall submit a fee in accordance with Appendix A. Fees must be made in an acceptable form of payment to the District. Along with the fee, a current address and phone number must be furnished. Those applicants not meeting all qualifications specified herein will have current fees returned. B. Applicants shall hold a valid and current certification from the American Water Works 23-12 Association (AWWA) California Nevada Section, American Backflow Prevention Association (ABPA), American Society of Sanitary Engineering (ASSE), University of Southern California Test Procedures (current edition) or from a certification program recognized by the San Diego County Health Department. Evidence of said certification shall be furnished to the District at the time of application, at the time of renewal, and at any time the District requests verification. Certification alone does not constitute District approval. C. Each applicant shall furnish evidence to show the availability of the necessary tools and equipment to properly test and/or repair such devices. Test kits shall be recalibrated annually and evidence of this shall also be provided with both the initial application and subsequent renewals. D. The tester shall be solely responsible for the competency and accuracy of all tests and reports prepared and submitted to the District. The list of approved testers will be furnished upon request to any District customer requiring such service. The testers listed will remain listed for a period of one year at which time they are subject to application for renewal. At the beginning of each year a grace period not to exceed ninety (90) days will be allowed for this process. Failure to renew within the grace period will constitute removal from the list. The District reserves the authority to revoke, suspend, or remove any tester from the list of authorized testers for improper conduct, testing, repairs, and/or reporting. FEES A. A second notice for required corrective action will result in a service fee, per backflow device as outlined in Appendix A. B. A third notice (termination of service notice) will result in a service fee per backflow 23-13 device followed by the assessment of a reconnection fee if such action is required as outlined in Appendix A. C. A reconnection fee per service is required for service to be resumed as outlined in Appendix A. D. Applicants for addition to the list of approved backflow prevention device testers in the Otay Water District will submit an initial filing fee and an annual renewal fee, as outlined in Appendix A. 23.05 WATER SERVICE FOR STEAM BOILERS Customers using District water to supply steam boilers are required to provide adequate storage of water for boiler use for a minimum period of 12 hours. 23.06 ELECTRICAL GROUND CONNECTIONS The connection of electrical ground wire to water pipes is prohibited. The District shall assume no responsibility for any loss or damage resulting from such a connection. 71-1 Adopted 2/03/2010 SECTION 71. VIOLATIONS; PROHIBITED ACTIVITIES In addition to the prohibited practices described in any other sections of this Code or by law, all persons and entities are specifically prohibited from doing, or aiding or abetting any person in, any of the following: A. Installing or benefiting from any unauthorized connection to any District system; B. Refusing or failing to pay for services, in full, when bills are due; C. Entering, improving, purchasing, trading, selling, borrowing, using or otherwise benefiting from any District property or service without authorization from the District or without following authorized procedure; D. Vandalizing, tampering with, or threatening any portion of the District systems, services, facilities or property, including but not limited to taking any action to prevent any meter or other equipment device from accurately performing its function; E. Failing or refusing to install, maintain in good repair and working condition, or test any portion of any facilities required by the District in connection with a service, including any safety or prevention device or any measuring device; F. Knowingly permitting leaks or other wastes of water or recycled water or leaks or spills of sewage or other discharge; G. Preventing District staff from accessing any facilities connected to a service, including but not limited to meters located on private property, or in any manner threatening or interfering with any District staff performing his or her duties; H. Using or allowing the use of service for more than one parcel through one meter (except for master meters approved by the General Manager under Section 24.01) or supplying, reselling, using or permitting the use of any service by any other parcel, except as permitted under Section 27.04 of this Code or in writing by the District; I. Using or permitting the use of any District service for property outside the boundaries of an improvement district or not subject to District taxes, without prior written consent of the District; J. Using or attempting to use or connect to any fire hydrant within the District without proper authorization as required by Section 24.04 of this Code; or K. Violating or refusing to comply with any condition of service under this Code or with any law or regulation applicable to the use of any such service; including violating any conditions of any permit required for service or to regulate waste, such as a waste discharge permit under Sections 26 or 52 of the Code, or failing or refusing to obtain, maintain or comply with any required permit. SECTION 72 PENALTIES AND DAMAGES 72.01 GENERAL A. User and Owner Responsibility. Each person receiving service, or that owns a property that receives service, agrees to pay the District any applicable fees and charges. Such persons are also responsible for all costs and damages in connection with any violation of this Code relating to their service. B. District Not Liable. The District shall bear no liability for any cost, damage, claim or expense incurred by District or any responsible party or third party on behalf of the District arising from or related to any violation, including, but not limited to, costs, damages, claims or expenses arising from any corrective action of the District. Such corrective actions include, but are not limited to, the removal, confiscation, disposition or use of any device, equipment, improvement or material encroaching on any District property or used in connection with any other violation. C. District Obligation to Collect Damages. Pursuant to Government Code Section 53069.6, the District shall take all practical and reasonable steps, including appropriate legal action, if necessary, to recover civil damages for the negligent, willful, or unlawful damaging or taking of property of the District. D. Assessment of Damages. Actual damages resulting from any violation, including late payment or failure or refusal to pay for service and any interest thereon, may be assessed and collected as part of a customer’s monthly bill to the extent allowed by law. The District will separately invoice any actual damages not assessed on a monthly bill, including any damages assessed against any responsible person who is not a customer. E. Unpaid or Partially Paid Bills. Bills issued by the District are due in full as provided in such bills. Failure to timely pay bills in full may lead to a reduction, suspension, or termination of service, as provided in Section 72.02(B), below, in Section 34 of this Code, or pursuant to other provisions of this Code or applicable law. In addition, if bills remain unpaid, in full or in part, the District may lien the delinquent real property and may assess damages and penalties established by District or otherwise authorized by law. 72.02 VIOLATIONS AND GENERAL PENALTIES FOR VIOLATIONS A. Notice of Violation. Notice and a reasonable period of time to correct a violation will be given prior to the termination, reduction or suspension of service or the imposition of any administrative fine. However, the District may, without notice, correct any condition or violation that endangers the health or safety or impairs any District service, facility or property or is otherwise determined by the District to require immediate action. 1. Investigative Procedures. If a possible violation is identified, observed or reported, the District will contact the allegedly responsible party to investigate. If the violation is in fact occurring, District staff will issue a notice of violation or otherwise inform the responsible party that corrective actions must be taken within a period of time deemed reasonable by the District, taking into consideration the nature of the violation and the potential damage that can arise if the violation continues. 2. Content of Notice of Violation. The notice will describe the violation, indicate the actions that must be taken, and indicate the date by which those actions must be taken. Unless immediate action is required, the notice will provide a reasonable time for the violation to be corrected. The notice will also specify the amount of any delinquency, actual damages or other amounts due the District, if any, and the telephone number of a representative of the District who can provide additional information. 3. No Notice Required; District Action. If the District determines that immediate or prompt correction of the violation is necessary to prevent waste or to maintain the integrity of the water supply, systems or facilities of the District, or for the immediate protection of the health, safety or welfare of persons or property, or for any other compelling reason, the District will take any action deemed necessary (including suspension, reduction or termination of service; locking or removal of meters; or repairs of any improvements) and a notice will be left at the affected parcel specifying any further corrective actions required. Any costs incurred by District and any applicable fines will be the responsibility of the responsible party. 4. Notice; Failure to Comply. The responsible party will be given an opportunity to correct the violation and to provide verbal, written and pictorial exculpatory evidence. If such evidence does not exonerate the responsible parties and if the violation(s) are not corrected to the satisfaction of the District within the time provided, the District may assess cost and penalties, administrative fines and may take any other action or pursue any other remedy available. Furthermore, if the violation concerns any service requirement or facility, or to prevent waste or protect the integrity of the system or the health and safety of the public, the District may suspend, reduce or terminate service to the extent permitted by law. B. Service Termination, Suspension or Reduction; Removing or Locking Meters. Service may be reduced, suspended or terminated for failure to pay for service or in connection with a violation of this Code or applicable law. Termination, suspension or reduction of service will proceed as follows: 1. Notice Prior to Termination, Suspension or Reduction of Service. Except as provided in Paragraph A, above, or in other provisions of this Code or applicable law, not less than ten (10) days notice will be given prior to the date service is reduced, suspended or terminated; provided that, where service is terminated due to failure to comply with the terms of an amortization agreement, under Section 34 of this Code, only forty-eight (48) hours prior notice is required. The notice will be delivered to the affected parcel and, if the owner of record does not reside in the affected parcel, a copy of the notice will be forwarded to the owner’s address on record with the assessor’s office via any available means, such as personal delivery, certified mail return receipt requested, email, fax or fed-ex. 2. Termination for failure to pay for service. The District may discontinue any or all service due to failure to pay the whole or any part of a bill issued by the District. In connection with termination of water service, the provisions of Section 60373 of the Government Code, or any other appropriate provision of law, or as set forth in Section 34 of this Code of Ordinance, will be followed. In connection with sewer, Section 71672 of the California Water Code or other applicable requirements will be followed. C. Reconnection or Reinstatement of Service, Unlocking or Reinstalling Meters. If service is reduced, suspended or terminated for any reason, each of the following conditions applicable to the situation must be satisfied or arrangements satisfactory to the General Manager or a designee must be made before service is reinstated: 1. Outstanding amounts for service bills, including any service charges for benefits derived from the violation, must be paid; 2. All required deposits (including any security deposits), actual damages, fines, costs, charges and penalties must be paid; 3. Any amounts due for the removal, locking, servicing, repair or replacement of meters or other facilities required for service must be paid at the rates in effect at the time of reinstatement, as set forth on Appendix A to this Code or other schedule of fees then in effect; 4. All violations and related damages or conditions must have been corrected and/or repaired and evidence satisfactory to the District to that effect and demonstrating that it is safe to reinstate service, must have been provided to and approved by the District; and 5. If the service was originally in the name of a tenant, the District may require the owner of the parcel to request the service account under his or her name and responsibility. D. Owner Responsibility for Account. In addition to owners’ obligations under subsection (A) of section 72.01 and subsection (C)(5) of Section 72.02, above, and any other remedies provided by this Code or by applicable law, Owners may be required to deliver to the District a form of acknowledgement or authorization for service to a tenant. In addition, if (i) a tenant engages in any violation, (ii) if the District has reduced, suspended or terminated any service to a tenant three (3) times within any twenty-four (24) month period or (iii) the tenant has failed or refuses to comply with the terms of payment arrangements with the District four (4) times, the District reserves the right to demand that the property owner take responsibility for services to the tenant- occupied parcel. The General Manager or a designee shall develop procedures to implement these requirements. E. Right of Access to Customer’s Premises; Interference. If any person refuses to consent to an investigation of a possible violation, or prevents or refuses to allow access to District staff or authorized representatives to any premises or facility during an investigation or in connection with any termination, reduction or suspension of service, the District may seek an injunction or a warrant, as provided in Section 71601 of the Water Code. F. Other Remedies. In addition to the actions contemplated in this Section, the District may seek other remedies authorized or required by any applicable law, including imposing an administrative fine, pursuant to Section 72.06, or pursuing other available civil or criminal remedies. 72.03 CERTAIN SPECIFIC OPERATIONAL VIOLATIONS A. Unauthorized Connections. The District shall bear no cost or liability for any unauthorized connection. In addition to other remedies, any unauthorized connection is subject to a Type II fine, pursuant to Section 72.06 depending upon the severity, duration and reoccurrence of the violation and any other factors the District may reasonably take into consideration.., Further, the District may demand that the unauthorized connection be immediately disconnected. In the alternative, if the customer refuses to take immediate action, or if immediate actions is necessary as set forth in Section 72.02(A)(3), above, the District may immediately disconnect, remove, confiscate, destroy or dispose of any parts installed or used for the unauthorized connection, all at the expense of the customer and any other responsible party. To the extent allowed by law, the District may also, immediately or as otherwise deemed advisable by the District, terminate service to any parcel and any person that allows, uses or benefits from such unauthorized connection. B. Water waste. No customer shall knowingly permit leaks or other wastes of water, including, but not limited to, allowing runoff on any portion of his or her property, engaging in non-permitted uses of water, or failing to take corrective action after notice of any leaks or water waste is given. If the District determines that water waste is occurring, the District will: 1. Notify the customer that they are in violation of the District’s Code of Ordinances. 2. Notwithstanding the foregoing, the District may, without prior notice, repair or replace any District controlled facilities at the cost of the person identified as the responsible party, if any. 3. If the water waste is due to a condition within the customer’s property or facilities, the District may (i) require the customer to repair or replace the affected facilities, immediately or within a reasonable time, depending on the situation; or (ii) if necessary to prevent further waste, adjust, lock or remove the meter. If any repair or replacement required is not completed in a timely manner, the District may perform the repair or replacement at the cost of the customer or may terminate service without further notice. C. Meter Tampering. In addition to other remedies, tampering is subject to a Type II fine pursuant to Section 72.06 depending upon the severity, duration and reoccurrence of the violation and any other factors the District may reasonably take into consideration. Additionally, tampering may be prosecuted as a crime under Section 498 of the California Penal Code, as set forth in Section 73.01 of this Code. D. Fire Service Violation. Fire service is subject to compliance with all provisions of this Code and the law concerning water service, and failure to comply with such provisions may result in the reduction, suspension, termination or disconnection of water service for fire protection, without any liability to District. Furthermore, illegal connections or other violations relating to fire service are subject to either a Type I or Type II fine, at the option of the District, and may be prosecuted as crimes. E. Backflow prevention, screens and other safety devices. If service requirements include the installation, testing and maintenance of backflow prevention devices (Section 23.04 of this Code), screens or other safety operational items, in addition to, or in lieu of, other remedies provided herein, the District may apply any of the remedies under Section VI and VII of the District’s Ordinance No. 386, as amended or renumbered. Furthermore, violations relating to backflow testing may be prosecuted as set forth in Section 73.01 of this Code. Violations of backflow requirements or knowingly filing a false statement or report required by a local health officer are subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. F. Violation Concerning Recycled Water Service. In addition to any fine, revocation, suspension or penalty imposed under Section 26 in connection with any violation of said Section, including permit suspension or revocation under Section 26.07.C, the District may (i) suspend or terminate water and or sewer service to the property, the owner and/or the operator; (ii) require payment by the owner for any damage to the District facilities, reimbursement to District of costs and expenses, or fines imposed on the District in connection with such violation; or (iii) prosecute the responsible party under any applicable provision of this Code, the Water Code or the Penal Code. Additionally, any violation concerning recycled water service is subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. G. Violation Concerning Sewer Service. In addition to any other remedy, fine or penalty provided by this Code or applicable law, failure to comply with any requirements of sewer service, including requirements for the preservation of public health, safety and welfare and including, but not limited to, the requirements established under Article II, Chapter 2, Sections 50 to 56.04 of this Code, as hereafter amended or as supplemented by other District Rules and Regulations for Sewer Service, the California Health and Safety Code, the California Code of Regulations, Titles 17 and 22, and Water Agency Standards. Furthermore, may be prosecuted as set forth in Section 73.01 of this Code. Additionally, any violation concerning sewer service is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. H. Theft, Fraud, or Misappropriation. In addition to any other remedy, fine or penalty provided by this Code or applicable law, any violation involving theft, fraud or misappropriation of District water, services, or property is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. 72.04 VIOLATIONS OF CONSERVATION OR OTHER WATER USE RESTRICTION PROVISIONS The District has established and published conservation measures set forth in Section 39 of the Code. Commencing with declared Level 2 conditions, the District may assess water shortage rates and charges previously adopted. In addition, after notice of the declared water shortage level is given as required by law, any person who uses, causes to be used, or permits the use of water in violation of such requirements (other than a person who qualifies for an applicable exemption, if any) may be assessed damages, penalties and fines. A. Additional provisions concerning use restriction violations. In addition to payment of actual damages, the following may apply to a violation of any water conservation or water use restriction measure: 1. A change on the account holder shall not cause the account to revert to pre-violation status unless the new account holder provides evidence that it is not related to the violator and had no responsibility for the prior account. 2. The District may reduce, suspend or terminate service to any parcel immediately and without further notice if the violation involves or results in water waste, as set for in Section 72.03(B), above. 3. Willful violations of mandatory conservation measures described in Section 39 of this Code may be enforced by terminating service to the property at which the violation occurs, as provided by Section 356 of the California Water Code. B. Prosecution for violations of conservation measures. Pursuant to Section 377 and 71644 of the California Water Code, each violation of the District’s Conservation Ordinance, set fort in Section 39 of this Code, may be prosecuted as a misdemeanor, punishable by imprisonment in the County jail for no more than thirty (30) days or by a fine, as set forth in subsection (C), below. C. Assessment of fines for violations of conservation or water use restriction provisions. Any responsible party who fails to comply with any conservation or use restriction measure is subject to the assessment of an administrative Type I fine, added to account, pursuant to Section 72.06, below. 72.05 VIOLATIONS INVOLVING DISTRICT REAL PROPERTY A. Removal, Disposition and Costs. The District has absolute discretion to determine the corrective action required in connection with any violation involving District real property, including requiring the owner of any unauthorized encroachment or improvement to remove it or taking action to remove it immediately and without notice. Any improvements or uses placed within or on any District property or right of way are subject to the following: 1. Costs and Damages. All costs and damages shall be the responsibility of the customer and any other responsible party. Furthermore, the District shall not be liable for costs to repair or replace any unauthorized encroachment or improvement, or any property, improvement or thing used in connection with, supported by or attached thereto. 2. Burden of proof. The burden shall be on the user to prove to the District’s satisfaction, the authority, scope and extent of any right to access, improve or use the District’s property. Only written evidence in the form of an agreement, deed, statute, recorded or official map or plat, governmental regulation or other right may be used to establish such claim of right. B. Notice. In connection with any improvement or use that does not constitute a health hazard and does not interfere with the District’s use of its property, the District will give written notice of up to sixty (60) days, at the discretion of the General Manager, to cease, terminate, eliminate or remove the offending improvement, structure or use. Any written notice will be given to the responsible party or posted at the property where the trespass or encroachment occurs. If the responsible party is not the owner of any real property affected by the violation, the District will also give notice to the owner of record at the address on record with the assessor’s office via personal delivery, certified mail return receipt requested or via Fed-Ex. C. Immediate action. In connection with any improvement that constitutes a health hazard or interferes with the District’s use of any District property, the District will take any immediate action deemed necessary by the General Manager. D. Fines. In addition to all other remedies provided under this Article or under applicable law, the District may impose a fine as provided in Section 72.06. Additionally, the District may impose a fine up to either the amount specified on any sign, or a Type I or Type II fine, at the option of the District, in connection with any trespass on District property in violation of a sign prohibiting trespassing, pursuant to Section 72.06, below. E. Separate violation. A separate violation will accrue for each day after the deadline to cease, terminate, eliminate or remove the trespass or encroachment, as set forth in the notice. 72.06 ADMINISTRATIVE FINES Any administrative fines established herein shall be in the nature of civil penalties and shall be additional and cumulative to any other fines, damages or any other charges established by the District and are also separate from and cumulative to any other civil or criminal penalty, fine or remedy. In connection with each violation, the District may assess a fine up to the amount specified in the schedule of fines for the type of fine being imposed. Each day during which a violation is in effect constitutes a separate violation and violations are cumulative while the account is in the name of the original violator or any person that participated in or benefited from the violation. Except where the violation creates an immediate danger to health or safety, the person responsible for the continuing violation will be provided a reasonable period of time to correct or otherwise remedy the violation(s) prior to the imposition of administrative fines. A. Assessment of Fines for Technical Violations of Other Code Provisions. Any person who engages in a violation of any provision of this Code is subject to the assessment of a separate administrative Type I Fine, unless subject to a more severe fine as set forth in this Code. B. Assessment of Separate Fines. Nothing in this code or the limits specified per violation shall prevent the imposition of separate fines for each separate violation committed during a single act. For example, in connection with a violation concerning sewer service that involves a trespass on any portion of the District’s real property, separate fines may be assessed for the trespass, the damage to District personal property, the damage to District real property; the damage to the sewer system and the activity resulting on all the damages. C. Types of Fines. The amount for each type of fine specified below may increase automatically to reflect any higher amount authorized by law or regulation. The District has determined to establish two types of fines based on the nature of the violation, as follows: 1. Type I Fine. Any violation that does not have the potential to endanger the health or safety of the public. The fine will not exceed the amount specified in the Section 36900(b) of the California Government Code or Appendix A for a first, second, third or each additional violation of that same ordinance or requirement within a twelve-month period. 2. Type II Fine. Any violation that has the potential to endanger the health or safety, including, but not limited to, unauthorized or illegal connections, meter tampering, water theft, , or knowingly filing a false statement or report required by a local health officer . The fine will not exceed the amount specified on Appendix A per each day the violation is identified or continues. D. Collection of Fines. Any fines assessed by the District are payable directly to the District, are due upon issuance or as otherwise indicated on the notice or bill, and are delinquent 30 calendar days from the due date. E. Notice of Administrative Fine; Content. Notice of an administrative fine pursuant to this section will contain the following information: (i) a brief description of the violation(s); (ii) the date and location of the violation(s); (iii) a brief description of corrective action(s) required, as appropriate; (iv) a statement explaining that each day the violation continues constitutes a new violation; (v) in the case of violations creating an immediate danger to health or safety, the amount of civil penalty assessed or, in all other cases, the amount of civil penalty to be assessed if the violation(s) are not corrected within the time provided by the notice; (vi) a statement of the procedure for payment and the consequences of failure to pay; (vii) contact information for the District employee that should be contacted to discuss the notice and provide evidence of compliance; and (viii) a brief statement describing the responsible party’s right to request further review, pursuant to subsection (F), below. F. Option for Board Review . Persons receiving a Notice of Administrative Fine may request Board review. The request for Board consideration must be in writing, must be received by the District Secretary within ten (10) calendar days from the date of the notice and must include contact information, an explanation of the basis for the request, and any supporting documentation said person(s) wish to provide to the Board for review and consideration. District staff will review the petitioner’s request and will make a recommendation to the Board in light of its investigation. The District will provide notice of the date, time and place for Board consideration by electronic means, facsimile or first class mail sent to the return addressee indicated on the written request. G. Any fines assessed pursuant to the Notice of Administrative Fines must be timely paid notwithstanding the filing of a request for Board review. At the time of Board review, the petitioner may, address the Board and respond to the charges to show good cause why the fine should not be imposed; however, the customer is not entitled to a full judicial-type hearing with cross examination, sworn testimony, etc. In accordance with the provisions of Government Code Section 53069.4, the Board’s determination shall be final and conclusive, and shall be deemed confirmed, if not appealed within 20 calendar days to the Superior Court of the County of San Diego. 73-1 Adopted 2/03/2010 SECTION 73 ADDITIONAL DISTRICT REMEDIES Each day during which a violation commences or continues shall constitute a separate violation which may be so prosecuted. In addition to, or on lieu of any damages, fines or other remedies provided in any other section of this Code, at the District’s sole and absolute discretion, the District may enforce any other remedies available to it in law or equity. 73.01 OTHER REMEDIES OF DISTRICT A. Collection of Unpaid Bills on Tax Roll. Pursuant to the provisions of the Health and Safety Code, commencing with Section 5470, the District may cause delinquent charges for services to be collected on the tax roll in the same manner as its general taxes. B. Costs of Suit. Any person who violates any provision of this Code of Ordinance shall be liable for costs of any civil suit required to enforce the District’s rights, including but not limited to reasonable attorney’s fees in accordance with Civil Code Section 1882.2. The provisions of Civil Code Section 1882 et seq. are incorporated herein by reference. This Article shall be interpreted so as to be consistent with Civil Code Sections 1882 et seq. C. Reward. In accordance with Government Code Section 53069.5, the District may offer and pay a reward, in an amount determined by the District, for information leading to the determination of the identity of, and the apprehension of, any person whose willful misconduct results in injury or death to any person or who willfully damages or destroys any property of the District or any property of any other local agency or state or federal agency located within the boundaries of the District. The person who has willfully damaged or destroyed such property shall be liable for the amount of any reward paid pursuant to this section. D. Parental liability for Acts of Minors. If a violation is due to the acts of a minor child, the minor and his or her parents or guardians, as applicable, shall be jointly and severally liable to the maximum extent allowed by law, including parental liability pursuant to Section 1714.1 of the California Code of Civil Procedure, as hereafter amended or renumbered. E. Backflow testing; Prosecution. A person is guilty of a misdemeanor in connection with the violation of any provision of the California Code of Regulations concerning backflow testing, including non-compliance with any order to test, knowingly filing a false statement or report concerning any information required by the District or failure to use a person qualified to conduct the testing. Such misdemeanor is punishable by a fine of up to $500 or by imprisonment not exceeding 30 days. Each day of a violation is a separate offense. F. Sewer Service Violation; Prosecution. Pursuant to Section 71689.27 of the Water Code of the State of California, upon conviction of a violation of any ordinance or provision of this Code concerning the sewer system the person shall be punished by being imprisoned in the county jail. G. Theft of Utility Services, Water or Waterworks; Prosecution. Pursuant to Sections 498, 624 and 625 of the Penal Code of the State of California, theft of District facilities or theft of water or other utility services, including theft through unauthorized connections, may be prosecuted as a crime. 73-2 Adopted 2/03/2010 H. Prosecution of Code Violations. The District may, at its option, prosecute or cause to be prosecuted any violation of this Code of Ordinance or any other Ordinance of the District as a misdemeanor, pursuant to Section 71600 of the California Water Code. I. Receipt or Purchase of Stolen Property; Prosecution. Pursuant to Section 496a of the Penal Code of the State of California, purchase or receipt of stolen property belonging to the water system, may be prosecuted as a crime. J. Junk Dealers and Recyclers; Remedies. To the extent provided by law, including the provisions of AB844, approved by the Governor and chaptered in September of 2008, the District will pursue remedies available through or against any junk dealer or recycler that purchases any District property without prior written authorization from District. 73.02 NOTICE TO DISTRICT CONCERNING VIOLATIONS Any person noticing or discovering an unauthorized connection to the District’s sewer, water or recycled water system from a parcel owned or occupied by such person must notify the District immediately. If the unauthorized connection affects a parcel owned by the person, he or she must remove the unauthorized connection immediately and must notify the District. If the person rents or leases the affected parcel, the person shall provide the District the name and contact information of the owner of the parcel. 73.03 SEVERABILITY If any portion of any chapter, section, subsection, paragraph, sentence, clause, or phrase of this Article is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, independent and severable provision and such holding shall not affect the validity of the remaining portions hereof. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 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 AND UPGRADE OF TELECOMMUNICATION SERVICES FOR FISCAL YEARS 2016-2020 GENERAL MANAGER’S RECOMMENDATION: That the Board approve the issuance of a purchase order to Cox Communications in the amount of $630,000.00 for five (5) years for telecommunication, facility connectivity, and internet services. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To authorize the General Manager to enter into a five (5) year agreement with Cox Communications for services necessary to support the District’s business critical telecommunication needs. This agreement includes local, long-distance and E-911 phone service, backup Internet service, SCADA and network connectivity for District facilities. ANALYSIS: Telecommunication services are essential to District operations. Over the past 12 years, the District has utilized AT&T as its telecommunication service carrier. Recently, Cox Communications, and a number of other telecommunication service brokers, began to offer services in the District’s footprint area. Staff began to investigate the service offerings being provided by these carriers. As part of the research and vendor recommendation, staff took into account performance and reliability-based service levels, customer service, connectivity circuits to District rural facilities, consolidation of service administration and potential cost savings. Background: The District’s current telecommunication service carrier, AT&T, requires management of four (4) different service accounts, with payments to four (4) different processing centers. This combination places a significant amount of monthly administrative overhead on District staff. Additionally, over the past three (3) years, AT&T has assigned five (5) different account managers to the District, which has made it difficult to obtain consistent and reliable vendor support. AT&T’s response to District requests are often delayed and requires extensive follow-up by staff. Connectivity Service: Currently, AT&T and other telecommunication service carriers, offer limited or no circuit connectivity to many of the District’s rural facilities. It is the District’s desire to extend physical network connectivity to the outlying rural facilities, which currently rely solely on wireless radio connectivity for SCADA and security services. With the growing radio frequency traffic in the District’s rural footprint, connectivity, reliability, security, and performance issues continue to be a consistent concern. To remedy these issues, physical circuit connectivity offers the best solution. The existing wireless radio network will remain as a backup transmission system during the remainder of its useful life. Service consolidation to one (1) vendor will also be of great benefit as support needs will be directed to one (1) call center. Requirements: Staff conducted an analysis of current and future District telecommunication service needs. Requirements were also developed to include local, long-distance, E-911 (enhanced 911), Internet, field connectivity, and customer service support. Staff solicited quotes from three (3) vendors: Cox Communications, Cogent Communications, and AT&T. Of the quotes submitted, staff received one (1) qualified quote from Cox Communications that met all of the District’s requirements. Cogent Communications did not meet the District’s listed requirements as they required extensive time and financial resources to meet the District’s needs. AT&T, although currently providing local and long-distance services for the District, was deemed unresponsive for the proposed network connectivity and E-911 requested services. Selection Recommendation: Based on the District’s requirements, staff conducted a services analysis (Attachment B). The panel consisted of the Purchasing & Facilities Manager, Assistant Chief of Admin & IT Services, and IT Manager. The decision analysis was based on services offered, consolidation of services with one vendor, and cost. Below is an informational table of the providers and the District’s required services. Of the requested combined services, Cox Communications proved to be the best choice as they are able to readily provide all of the District’s required services and are within budget. Cogent, one of the carrier broker providers, could potentially provide these services, however, the cost would amount to $673,000 per year due to the unavailability of infrastructure in the requested areas. IT staff also reached out to AT&T, the District’s current telecommunication provider, however, they were deemed unresponsive, as they did not respond to our service request. Services Offered Providers Local/Long Distance E-911 Internet Network/Facility Connectivity Yearly Cost AT&T Yes No Yes Unresponsive $125,000 Cox Yes Yes Yes Yes $126,000 Cogent No No Yes Yes $673,000 *In preparation for these services, staff also researched cooperative purchasing organizations within the state to include CalNet (California Network/Technology) and NASPO (National Association of State Procurement Officials); standard pricing for internet connectivity and activation ranged from $375.00 to $700.00 per month per site for services, which far exceeds what staff received from Cox proposed pricing. In the event of unsatisfactory service and/or any extended connectivity disruptions, the District will have the option to cancel services during the contract period. The District will continue to maintain the existing Firetide wireless network as a backup to the primary physical circuit connectivity network in the North part of our service footprint. Upon the end of its useful life, the Firetide Wireless network will not be upgraded nor replaced. Replacing wireless components in the North and installing new in the South and Central service footprint, would incur an approximate cost of $400,000.00, plus an annual recurring support contract of $40,000. Additionally, by combining these services, the District will also eliminate an external recurring contract of $25,000, which currently supports the maintenance of the existing Firetide wireless network. The transition to physical circuit connectivity with Cox Communications will result in projected operational savings of $725,000 throughout five (5) service years. The new services will also be managed by internal IT staff. FISCAL IMPACT: Joe Beachem, Chief Financial Officer O&M Totals: As in previous years, monies for these services have been budgeted in the IT O&M budget, which are currently available for FY2016. Contract service payment will be executed on a monthly schedule totaling $126,000.00 per fiscal year, or $630,000.00 over five (5) years. No increase in the overall IT O&M budget is expected. Capital Totals: The capital costs for the hardware devices (routers, switches, and firewalls) total $45,000.00 and will be charged to CIP 2569, Metro Ethernet Implementation/District Facilities. This account has a FY2016 budget of $100,000.00. After this expenditure, the CIP will have a remaining balance of $55,000.00. The Project Manager has reviewed the budget and has determined that there is sufficient funding to complete CIP 2569. STRATEGIC GOAL: These items are in support of the District’s required services and Strategic Plan, which specifically improve the overall operating costs and ensures business continuity. LEGAL IMPACT: None. ATTACHMENTS: Attachment A - Committee Action Report Attachment B - Services Analysis ATTACHMENT A SUBJECT/PROJECT: REPLACEMENT AND UPGRADE OF TELECOMMUNICATION SERVICES FOR FISCAL YEARS 2016-2020 COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on September 23, 2015. The Committee supports presentation to the full Board for their consideration. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B DISTRICT REQUIRED SERVICES AT&T COGENT COMMUNICATIONS COX COMMUNICATIONS Otay Facility Physical Address L/LD E-911 INT N/FC L/LD E-911 INT N/FC L/LD E-911 INT N/FC Administration Building 2554 Sweetwater Springs Blvd Yes No Yes UR No No Yes Yes Yes Yes Yes Yes Treatment Plant 11901 Singer Lane Yes No Yes UR No No Yes Yes Yes Yes Yes Yes 657-1 Reservoir 1156 Bernardino Yes No UR UR No No Yes Yes Yes Yes Yes Yes Pointe Hydro PS 10105 Pure Waters Court Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1004-2 PS 1306 Buena Vista Ave Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1004-2 Reservoir 1828 La Presa Avenue Yes No UR UR No No Yes Yes Yes Yes Yes Yes Summit Chlorine Station 444 Ruxton Avenue Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1100-1 Hydro PS 475 Coastal Hills Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes 803-2 Reservoir 2568 Pence Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes 978-1 PS 1612 Vista Grande Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1200 PS 2542 Pence Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1200-1 Reservoir 1697 Burris Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes Cottonwood Hydro PS 2508 Windriver Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes Key: L/LD – Local/Long Distance | INT – Internet | N/FC – Network/Facility Connectivity | UR - Unresponsive DISTRICT REQUIRED SERVICES AT&T COGENT COMMUNICATIONS COX COMMUNICATIONS Otay Facility Physical Address L/LD E-911 INT N/FC L/LD E-911 INT N/FC L/LD E-911 INT N/FC 711-1 PS 10391 Otay Lakes Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 624-1 Reservoir 10389 Otay Lakes Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1296-1 PS 3102 Vista Diego Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1296-1 Reservoir 13635 Bear Mt Way Yes No UR UR No No Yes Yes Yes Yes Yes Yes Vista Diego Hydro PS 3151 Vista Diego Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1485-1 Reservoir 15008 Lyons Valley Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1485-2 PS 14303 Lyons Valley Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1655-1 Hydro PS 14810 Presilla Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes 458-1 Reservoir 651 Barrow Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes 680-1 Recycled PS 1680 Maxwell Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes Hidden Mountain Sewer LS 1256 Hidden Mountain Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes 485-1 Reservoir 996 East H Street Yes No UR UR No No Yes Yes Yes Yes Yes Yes 624-3 Reservoir 1230 Eastlake Pkwy Yes No UR UR No No Yes Yes Yes Yes Yes Yes 711-1 Reservoir 1034 Park Meadows Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 980-1 PS 2406 Otay Lakes Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 624-2 Reservoir 2010 Gotham Yes No UR UR No No Yes Yes Yes Yes Yes Yes 944 Recycled PS 1390 S Greensview Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes Key: L/LD – Local/Long Distance | INT – Internet | N/FC – Network/Facility Connectivity | UR – Unresponsive DISTRICT REQUIRED SERVICES AT&T COGENT COMMUNICATIONS COX COMMUNICATIONS Otay Facility Physical Address L/LD E-911 INT N/FC L/LD E-911 INT N/FC L/LD E-911 INT N/FC 850-3 Reservoir 12887 Wieghorst Way Yes No UR UR No No Yes Yes Yes Yes Yes Yes 832-1 PS 12176 Campo Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 832-1 Reservoir 12118 Campo Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 850-2 PS 11880 Campo Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1090-1 Reservoir 12300 Millar Anita Lane Yes No UR UR No No Yes Yes Yes Yes Yes Yes 1090-1 PS 3029 Miller Ranch Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 978-2 Reservoir 1124 Vista Grande Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 30’ Strip of Land Alta Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 944-1 PS 13255 Campo Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes Calavo PS 3700 Avocado Blvd Yes No UR UR No No Yes Yes Yes Yes Yes Yes Russell Square Sewer PS 5139 ½ Russell Sq. Yes No UR UR No No Yes Yes Yes Yes Yes Yes Steele Canyon PS 11977 Singer Lane Yes No UR UR No No Yes Yes Yes Yes Yes Yes Cottonwood Meadows Sewer LS 3550 Par Four Drive Yes No UR UR No No Yes Yes Yes Yes Yes Yes 850-2 Reservoir 2105 Ledge Ave Yes No UR UR No No Yes Yes Yes Yes Yes Yes 624-1 PS 1503 Wueste Road Yes No UR UR No No Yes Yes Yes Yes Yes Yes 711-3 Reservoir 520 Hunte Parkway Yes No UR UR No No Yes Yes Yes Yes Yes Yes 980-1 Reservoir 360 Hunte Parkway Yes No UR UR No No Yes Yes Yes Yes Yes Yes Key: L/LD – Local/Long Distance | INT – Internet | N/FC – Network/Facility Connectivity | UR - Unresponsive STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2015 PROJECT: DIV. NO.: ALL SUBMITTED BY: Geoff Stevens, Chief Information Officer APPROVED BY: German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: FY15 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 final report on the District’s FY15-18 Strategic Performance Plan for FY15. ANALYSIS: Phase One Completed and Successful The District has completed the first year of the FY15-18 Strategic Plan. Overall, results for the plan are positive with both the strategic objectives and the performance measures exceeding their goals of 90% and 75%, respectively. In particular, the effort to temporarily concentrate on fewer objectives in FY15 to allow us to complete two large projects (work order and SCADA system replacement) was successful and allows us to increase our focus on more discrete levels of performance measurement using this new foundation. As requested by the Board last year, staff has added year-to-year trends for performance measures, which have appropriate data. Strategic Plan Objectives – Impact of Phasing Strategic Plan objectives are designed to ensure we are making the appropriate high-level changes necessary to move the District in the planned direction to meet new challenges and harness opportunities. Objective results for FY15 are above target at 94% complete, ahead or on schedule. These results are an improvement from FY14 where we had an 82% average. 17/18 or 94% of Strategic Objectives Meet or Exceed Expectations Objectives: All Departments Legend Completed On Schedule Behind Schedule On Hold Annual Measure Not Scheduled to Start Yet Almost all of the Strategic objectives in FY15 were on track. The only exception was item, 1.1.1.1, Enhancing Customer Communications Utilizing the Phone System, which was delayed because of a postponed phone system upgrade, which is now complete. Performance Measures – Target 75% Performance measures are designed to track the day-to-day performance of the District. These items measure the effectiveness and efficiency of daily operations. The overall goal is that at least 75% of these measures be rated “on target”. FY15 Quarter 4 District results are well above target with 38 of 43 (88%) items achieving the desired level or better. The performance measures are substantially unchanged in FY15 from the previous plan. However, in line with our FY16-18 plan, we intend to add or modify a few specific measures which document performance more accurately, specifically moving to capture and set targets for unit costing, like the actual cost to set a meter or replace a valve. We will strive, however, to keep many measures the same so that we can see the long term trends on important measures. 38/46 or 83% of Performance Measures Are On or Above Target YTD Measures: All Departments Items Not On Target QualServe Benchmarking Perspective The District participates in a benchmarking program developed by AWWA. We utilize 16 measures designed by QualServe. Of the 16, we are on target for 12 of 16 or 75%. The four items not on target are: Unplanned Disruptions, Planned Water Service Disruption Rate, Water Distribution System Integrity, and Health & Safety Severity. This result is somewhat lower than our performance in 2014, in part because we planned more outages in FY15 and also experienced more pipe breaks during the first 2 quarters of FY15 than FY14 (94 vs 66). Measure* Target Result Target Met Sewer Ops Collection System Integrity (QualServe) 3.5 0 Yes Sewer Ops Direct Cost of Treatment per MGD (QualServe) 1050 785.11 Yes Sewer Ops O&M Cost per MG Processed of Wastewater (QualServe) 1925 1150.13 Yes Sewer Ops Sewer Overflow Rate (QualServe) 0 0 Yes Sewer Ops Planned Wastewater Maintenance Ratio in $ (QualServe) 77.00 91.62 Yes Customer Relations Unplanned Disruptions (QualServe) .7 2.0 No Customer Relations Technical Quality Complaint (QualServe) 9 3.69 Yes Customer Relations Billing Accuracy (QualServe) 99.8 99.81 Yes Customer Relations Planned Water Service Disruption Rate (QualServe) 2.5 3.45 No Water Ops Distribution System Loss (QualServe) 5% 2.5 Yes Water Ops Potable Water Compliance Rate (QualServe) 100% 100 Yes Water Ops O&M Cost per Account (QualServe) 512 511 Yes Water Ops Water Distribution System Integrity (QualServe) 16 17.13 No Water Ops Planned Potable Water Maintenance Ratio in $ (QualServe) 66% 66 Yes Business Ops Debt Coverage Ratio (QualServe) 148.6 195 Yes Org Dev Health & Safety Severity Rate (QualServe) 30 60.8 No *Items in red are below target Annual Review of Composition of Balanced Scorecard Objectives and Measures The Balanced Scorecard continues to be used as a core methodology for the District’s Strategic Plan and is widely adopted by businesses internationally. The Scorecard itself was developed by Kaplan and Norton and published in 1992 in the Harvard Business Review. The model has evolved over time with minor modification. In brief, the Balanced Scorecard urges that goals and measures be developed in four basic areas, customer, finance, business process, and learning and growth. One addition to update the model was the inclusion of a “key challenge” to provide better focus across multiple areas and goals. We do have goals and measures in each category and our plan is heavily weighted in the area of business process improvement and to some extent finance. Also, our key challenge states that we are determined to measure and document our progress towards utilizing cost based metrics where possible. Given that many of our strategies call for business process change and improvement with a focus on reducing costs it makes sense that this area of the scorecard is most heavily populated. Balanced Scorecard Model* *Number in parenthesis equal to # of goals and measures in each category Customer Financial Business Processes Learning & Growth Next Steps – FY16-18 The completion of Phase 1 of the FY15-18 Strategic Plan was a significant accomplishment but the value in having a phased approach is that the first steps prepare you for success in the latter phases. In this case, staff restricted the number of objectives in Phase 1 (reduced from 38 in FY14 to 20 in FY15) to specifically allow us to focus on these major projects. That being accomplished, the plan approved by the Board in May calls for the following new objectives to be added to the strategic commitments to be completed over the next three years. Keep in mind that these items are all budgeted and planned for and have been in the Board-approved plan since July 1 of this year. They are highlighted here to emphasize that there is a full commitment by staff to improve business processes and find efficiencies as well as finding ways to measure our progress. Additional Phase II Strategic Objectives Future Improvements in Measurement Measurement of continuous improvement is essential to demonstrate the efficiency gains achieved by the District and is the key challenge in our plan. To that end, using updated information systems and enhanced or more precise measurement strategies will allow us to assemble baseline performance data during FY17. Once we are comfortable the data is useful and accurate, we will start to set performance targets in FY18. Our intent is to carefully measure District performance in areas such as cost-per-unit of work or overall asset management capabilities. This work will require considerable management effort so that we are very clear that the targets we set will be useful in achieving our overall goals. The Board will receive an update on our progress in measurement as part of the FY17 update to the Strategic Plan that will be submitted as part of the FY17 Budget in May of next year. Committee Reports – Slideshow The Strategic Plan results are presented to both the Finance and Administrative Committee and the Engineering and Operations Committee with a specific focus on the most relevant information for each Committee. Strategic Plan is available on the 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 on the Board 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 – FY2015 Year-End Results ATTACHMENT A SUBJECT/PROJECT: FY15 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 September 23, 2015. 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. Strategic Plan FY 2015 Year End Results 1 94% of Objectives Are on Schedule or Completed 2 83% of Performance Measures Meet Targets 3 Index PERFORMANCE MEASURES SLIDE# 1.1.100 Customer Satisfaction 7 1.3.104 Gallons Per Capita Per Day 8 1.4.104 Health & Safety Severity Rate 9 1.4.105 Employee Turnover Rate 10 1.4.106 Training Hours per Employee 11 1.4.107 Safety Training Program 12 2.2.200 CIP Project Expenditures vs. Budget 13 2.2.201 Construction Change Order Incidence (w/o allowances)14 2.3.202 Mark-out Accuracy 15 2.3.203 Project Closeout Time 16 3.1.300 Answer Rate 17 3.2.301 O&M Cost per Account (QualServe)18 3.2.302 Billing Accuracy (QualServe)19 3.2.303 Overtime Percentage 20 3.2.304 Sewer Rate Ranking 21 4 PERFORMANCE MEASURES SLIDE# 3.2.305 Water Rate Ranking 22 3.2.306 Debt Coverage Ratio (QualServe)23 3.2.307 Reserve Level 24 3.3.308 Distribution System Loss (QualServe)25 4.1.400 Customer Satisfaction with Website 26 4.3.401 Network Availability 27 4.4.402 Website Visits 28 5.1.500 Unplanned Disruptions (QualServce )29 5.1.501 Technical Quality Complaint (QualServe)30 5.2.502 Planned Potable Water Maintenance Ratio in $ (QualServe)31 5.2.503 Planned Recycled Water Maintenance Ratio in $32 5.2.504 Planned Wastewater Maintenance Ratio in $ (QualServe)33 5.2.505 Direct Cost of Treatment per MGD (QualServe)34 5.2.506 O&M Cost per MG Processed of Wastewater (QualServe)35 5.2.520 Leak Detection Program 36 5 PERFORMANCE MEASURES SLIDE# 5.3.507 Percent of PMs Completed –Fleet Maintenance 37 5.3.508 Percent of PMs Completed –Reclamation Plant 38 5.3.509 Percent of PMs Completed –Pump/Electric Section 39 5.3.511 System Valve Exercising Program 40 5.3.512 Water Distribution System Integrity (QualServe)41 5.3.513 Planned Water Service Disruption Rate (QualServe)42 5.3.514 Potable Water Compliance Rate (QualServe)43 5.3.515 Collection System Integrity (QualServe)44 5.3.517 Recycled Water System Integrity 45 5.3.518 Sewer Overflow Rate (QualServe)46 5.3.519 Emergency Facility Testing 47 5.3.525 Critical Valve Exercising 48 5.4.521 Tank Inspection and Cleaning 49 5.4.522 Main Flushing and Fire Hydrant Maintenance 50 5.4.523 Annual Recycled Water Site Inspections 51 5.4.524 Recycle Water Shutdown Testing 526 7 Measure 1.1.100, Customer Satisfaction, is an annual survey that is reported in the fourth quarter and represents the results for the given fiscal year. (Qtr and YTD Measurement Method: %Positive/ %Surveyed) Customer Satisfaction 1.1.100 2015 Quarter Results 8 2015 Quarter Results Gallons Per Capita Per Day 1.3.104 Measure 1.3.103, Gallons Per Capita Per Day, aims to be below 172 Gallons Per Day (Qtr Measurement Method: Total potable water purchased/ Population (from SANDAG)/ # of days through the end of that quarter YTD Measurement Method: Total annual potable water purchased/ Annual population (from SANDAG)/ # of days through the end of that quarter 8 9 Measure 1.4.104, Health & Safety Severity Rate, aims to be below all set targets in order to have no more than 30% severity rate per quarter in a single year. (Qtr Measurement Method: # of lost days/# of injuries resulting in lost time YTD Measurement Method: # of lost days YTD/# of injuries resulting in lost time YTD) Health & Safety Severity Rate (QualServe) 1.4.104 2015 Quarter Results 10 2015 Quarter Results Employee Turnover Rate 1.4.105 Measure 1.4.105, Turnover Rate, aims to be below all set targets in order to have less than 5% turnover in a single year. (Qtr Measurement Method: # of voluntary terminations/ Average # of employees YTD Measurement Method: YTD # of voluntary terminations/ Average # of employees) 11 Measure 1.4.106, Training Hours per Employee, aims to be above all set targets in order to have more than 12 hours of general formal training per employee in a single year (excludes safety training). (Qtr Measurement Method: Total qualified training hours for all employees/Average # of FTEs YTD Measurement Method: YTD Total qualified training hours for all employees/Average # of FTEs) Training Hours Per Employee 1.4.106 2015 Quarter Results 12 2015 Quarter Results Measure 1.4.107, Safety Training Program, aims to be above all set targets in order to have more than 24 hours of training per employee in a single year. (Qtr Measurement Method: # of safety training hours for the quarter/# of field employees YTD Measurement Method: YTD Total qualified safety training hours for field employees/Average # of field employees) Safety Training Program 1.4.107 13 2015 Quarter Results Measure 2.2.200, CIP Project Expenditure vs. Budget, aims to be 95% of budget but is not to exceed 100%. Being significantly below target also gives the measure a “not on target” status. (Qtr Measurement Method: Actual quarterly expenditures/ Annual budget YTD Measurement Method: YTD expenditures/ Annual budget) CIP Project Expenditure vs. Budget 2.2.200 14 Construction Change Order Incidence (w/o allowances) 2.2.201 2015 Quarter Results Measure 2.2.201, Construction Change Order Incidence, aims to be below all set targets in order to have no more than 5 % in one year. (Qtr Measurement Method: Total cost of Change Orders (not including allowances)/ Total original construction contract amount (not including allowances) YTD Measurement Method: YTD total cost of Change Orders (not including allowances)/ YTD total original construction contract amount (not including allowances)) 15 2015 Quarter Results Mark Out Accuracy 2.3.202 Measure 2.3.202, Mark Out Accuracy, aims to have no less than 100% mark out accuracy every quarter in a single year. (Qtr Measurement Method: # of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark-out/Total # of mark-outs performed YTD Measurement Method: YTD # 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/YTD total # of mark-outs)) 16 2015 Quarter Results Measure 2.3.203, Project Closeout Time, aims to be below all set targets in order to have an average closeout time of no more than 45 days each quarter in a single year. (Qtr Measurement Method: # of days between NOSC and NOC for all construction projects within the quarter/# of construction projects within the quarter YTD Measurement Method: YTD # of days between NOSC and NOC for all construction projects within the quarter/YTD # of construction projects within the quarter) Project Closeout Time 2.3.203 17 2015 Quarter Results Answer Rate 3.1.300 Measure 3.1.300, Answer Rate, aims to be above all set targets in order to have an average answer rate no less than 97%. (Qtr Measurement Method: # of all calls answered/ # of all calls received during a quarter YTD Measurement Method: YTD # of all calls answered/ YTD # of all calls received) 18 2015 Quarter Results O&M Cost Per Account (QualServe) 3.2.301 Measure 3.2.301, O&M Cost Per Account, aims to be below all set targets in order to keep O&M cost per account less than $531.12 in a single year. (Qtr Measurement Method: Total operations O&M costs/ # of accounts. YTD Measurement Method: YTD total operations O&M costs/# of accounts) 19 2015 Quarter Results Billing Accuracy (QualServe) 3.2.302 Measure 3.2.302, Billing Accuracy, aims to be above all set targets in order to have no less than 99.8% billing accuracy per quarter in a single year. (Qtr Measurement Method: # of correct bills during the reporting period/# of total bills during the reporting period YTD Measurement Method: YTD # of correct bills during the reporting period/YTD # of total bills during the reporting period) 20 2015 Quarter Results Overtime Percentage 3.2.303 Measure 3.2.303, Overtime Percentage, aims to be between 23% and 27% per quarter. In total, less than 100% by the end of the year. *Note: Q1 Results include an overage due to unbudgeted COLA. Because COLA was a mandated change, results will still be considered on track. (Qtr Measurement Method: Actual overtime costs (including comp time)/ Budgeted overtime costs YTD Measurement Method: YTD Actual overtime costs (including comp time)/ YTD Budgeted overtime costs) 21 2015 Quarter Results Sewer Rate Ranking 3.2.304 Measure 3.2.304, Sewer Rate Ranking, is reported annually in the first quarter and represents the results for the given fiscal year. The District's goal is to be in the top 50. (Qtr Measurement Method: Otay ranking for the average bill for sewer/ # of agencies YTD Measurement Method: Quarter result is YTD result. One result represents the entire FY) 22 2015 Quarter Results Water Rate Ranking 3.2.305 Measure 3.2.305, Water Rate Ranking, is reported annually in the first quarter and represents the results for the given fiscal year. The District’s goal is to be below the midpoint (bottom 50%) for neighboring Districts (Qtr Measurement Method: Otay ranking among CWA member agencies for average YTD Measurement Method: Quarter result is YTD result. One result represents the entire FY) 23 Measure 3.2.306, Debt Coverage Ratio, aims to be above all set targets in order to have sufficient debt coverage. It is measured annually at year end. (Qtr and YTD Measurement Method: Qualified net operating revenues/ Debt service requirements 2015 Quarter Results Debt Coverage Ratio (QualServe) 3.2.306 24 2015 Quarter Results Reserve Level 3.2.307 Measure 3.2.307, Reserve Level, aims to be equal or exceed 85%. It is measured annually at year end. (Qtr and YTD Measurement Method: # of reserve funds that meet or exceed fund target levels/ Total # of reserve funds (9)) 25 Measure 3.3.308, Distribution System Loss, aims to be below all set targets in order to ensure less than 5% of unaccounted water in a single year. *The calculation is a year-to-date calculation, so Qtr Result = YTD Result. (Qtr and YTD Measurement Method: 100 [volume purchased –(volume sold + volume used) / volume purchased]) 2015 Quarter Results Distribution System Loss (QualServe) 3.3.308 26 27 2015 Quarter Results Network Availability 4.3.401 Measure 4.3.401, Network Availability, aims to be above all set targets in order to have an average of no less than 99.5% network availability per quarter in a single year. (Qtr and YTD Measurement Method: Time availability of core applications during business hours/ Total time) 28 2015 Quarter Results Website Hits 4.4.402 Measure 4.4.402, Website Hits, aims to be above all set targets in order to have an average of no less than 20,000 website hits per quarter in a single year. (Qtr Measurement Method: (M1+M2+M3)/3= Q1, (M4 + M5 + M6)/3 = Q2, etc. YTD Measurement Method: Cumulative total of quarterly targets/4) 29 Unplanned Disruptions (QualServe) 5.1.500 2015 Quarter Results Measure 5.1.500, Unplanned Disruptions, aims to be below the QualServe target ratio of 0.7. Ratio is calculated by # disruptions x 1000/total accounts. (Qtr Measurement Method: (# of customer accounts experiencing unplanned disruptions in one quarter x 1000)/# of active accounts YTD Measurement Method: (# of disruptions per year x 1000)/# of active customers) 30 2015 Quarter Results Measure 5.1.501, Technical Quality Complaint, aims to be below all set targets in order to have no more than 9 complaints per 1000 customer accounts in a single year. (Qtr Measurement Method: (1000 x # of technical quality complaints per quarter) / # of active customer accounts per reporting period. YTD Measurement Method: (1000 x # of technical quality complaints per year)/# of connections.) Technical Quality Complaint (QualServe) 5.1.501 31 2015 Quarter Results Planned Potable Water Maintenance Ratio in $ (QualServe) 5.2.502 Measure 5.2.502, Planned Potable Water Maintenance Ratio in $, aims to be above all set targets in order to have no less than 66% of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. (Qtr Measurement Method: Total planned maintenance cost/ Total maintenance cost) 32 2015 Quarter Results Planned Recycled Water Maintenance Ratio in $ 5.2.503 Measure 5.2.503, Planned Recycled Water Maintenance Ratio in $, aims to be above all set targets in order to have no less than 70% of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. (Qtr Measurement Method: Total planned maintenance cost/ Total maintenance cost) 33 2015 Quarter Results Planned Wastewater Maintenance Ratio in $ (QualServe) 5.2.504 Measure 5.2.504, Planned Wastewater Maintenance Ratio in $, aims to be above all set targets in order to have no less than 77% of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. (Qtr Measurement Method: Total planned maintenance cost/ Total maintenance cost) 34 2015 Quarter Results Measure 5.2.505, Direct Cost of Treatment per MGD, aims to be below all set targets in order to have no more than $1050 per MG spent on wastewater treatment per quarter in a single year. (Qtr Measurement Method: Total O&M costs directly attributable to sewer treatment / Total volume in MG for one quarter Total O&M Costs = (power cost)+(staff cost without overhead)+(chemical cost)+(equipment cost) / Million Gallons Processed) Direct Cost of Treatment per MGD (QualServe) 5.2.505 35 2015 Quarter Results Measure 5.2.506, O & M Cost per MGP of Wastewater, aims to be below all set targets in order to have no more than $1925 per MG spent on O&M for wastewater treatment per quarter in a single year. (Qtr Measurement Method: Total O&M cost (less depreciation) / Volume in MG processed during the reporting period Total O&M Cost (less depreciation) = (power cost)+(staff cost)+(chemical cost)+(equipment cost) / MGP) O & M Cost Per MGP of Wastewater (QualServe) 5.2.506 36 37 38 39 40 2015 Quarter Results System Valve Exercising Program 5.3.511 Measure 5.3.511,Valve Exercising Program, aims to be above all set targets in order to have no less than 770 valves exercised each quarter in a single year. (Qtr and YTD Measurement Method: Actual number of valves exercised per quarter / 770 valves per quarter) 41 2015 Quarter Results Potable Water Distribution System Integrity (QualServe) 5.3.512 Measure 5.3.512, Water Distribution System Integrity, aims to be below all set targets in order to have no more than 16 leaks and breaks per 100 miles of distribution piping in a single year. (Qtr Measurement Method: [100 (annual total number of leaks + annual total number of breaks)] / total miles of distribution piping Annual total distribution system integrity rate equal to 16) 42 2015 Quarter Results Planned Water Service Disruption Rate (QualServe) 5.3.513 Measure 5.3.513, Planned Water Service Disruption Rate, aims to be below all set targets in order to have no more than 2.5 planned outages per 1,000 accounts per quarter in a single year. Note: This measure is expressed as number of accounts affected per 1,000 accounts. (Qtr Measurement Method: (1000 x # of customer experiencing disruption) / #of active customer accounts per year) 43 2015 Quarter Results Measure 5.3.514, Drinking Water Compliance Rate, aims to be no less than 100% every quarter in order to ensure the District meets all of the health related drinking water standards everyday for a single year. (Qtr and YTD Measurement Method: (100 x # of days the primary health regulations are met)/# of days in the quarter) Potable Water Compliance Rate (QualServe) 5.3.514 44 Collection System Integrity (QualServe) 5.3.515 2015 Quarter Results Measure 5.3.515, Collection System Integrity, aims to be below all set targets in order to have no more than 3.5 wastewater collection system failures per 100 miles of collection system pipeline in a single year. (Qtr and YTD Measurement Method: (100 x total # of collection system failures during the year) / total miles of collection system piping) 45 2015 Quarter Results Measure 5.3.517, Recycled Water System Integrity, aims to be below all set targets in order to have no more than 6.6 leaks or breaks per 100 miles of recycled distribution system in a single year. (Qtr and YTD Measurement Method: (100 X #of leaks or breaks)/ # of miles of distribution system) Recycled Water System Integrity 5.3.517 46 2015 Quarter Results Measure 5.3.518, Sewer Overflow Rate, aims to have no overflows. (Qtr and YTD Measurement Method: (100 x total # of sewer overflows during the reporting period) / total miles of pipe in the sewage collection system) Sewer Overflow Rate (QualServe) 5.3.518 47 48 49 50 51 52