Loading...
HomeMy WebLinkAbout05-21-14 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 May 21, 2014 11:30 A.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. ADOPT RESOLUTION NOs. 4224 AND 4225, TO COMPLETE THE EXCLUSION OF PARCELS WITHIN IMPROVEMENT DISTRICTS (IDs) 19 AND 25; AND ADOPT RESOLUTION NOs. 4226 AND 4227 TO COMPLETE THE PROCESS FOR THE ANNEXATION OF THE EXCLUDED PARCELS IN IDs 19 AND 25 INTO IDs 22 AND 20, RESPECTIVELY (BELL) [5 minutes] 4. ADOPT RESOLUTION NO. 4234 TO AMEND POLICY NO. 6, THE ANNUAL CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT, OF THE DISTRICT’S CODE OF ORDINANCES (KOEPPEN) [5 minutes] 5. APPROVE INFORMATION TECHONOLOGY CONTRACTS FOR PHONE SERVICES AND SOFTWARE AND SUPPORT AGREEMENTS FOR FISCAL YEAR 2015 (SEGURA) [5 minutes] 6. ADJOURNMENT BOARD MEMBERS ATTENDING: Mitch Thompson, Chair Jose Lopez 2 All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’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 Secre- tary by contacting her at (619) 670-2280. If you have any disability which would require accommodation in order to enable you to participate 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 May 16, 2014 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 May 16, 2014. ______/s/_ Susan Cruz, District Secretary _____ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: June 4, 2014 SUBMITTED BY: Rita Bell, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Resolutions as Required by the Water Code and Government Code, to Confirm the Exclusion of Parcels from Improvement Districts (ID) 19 and ID 25 and Annexations into ID 22 and ID 20, Respectively GENERAL MANAGER’S RECOMMENDATION: That the Board approve the attached Resolution Nos. 4224 and 4225, which are necessary to complete the process for the exclusion of parcels within Improvement Districts (IDs) 19 and 25. Concurrent with said action, that the Board also approve the attached Resolutions Nos. 4226 and 4227, which are necessary to complete the process for the annexation of the excluded parcels in IDs 19 and 25 into IDs 22 and 20, respectively. PURPOSE: That the Board authorize and confirm the exclusion of parcels within Improvement Districts (IDs) 19 and 25 and the annexation of those parcels into IDs 22 and 20, respectively. Staff has completed the required publication and posting per Government Code section 6066 and Water Code sections 72084, 72707, and 72703. Having complied with such requirements, this second set of resolutions is being presented to confirm the exclusions and annexations. With approval of the resolutions, staff will submit the appropriate forms and fees required to effectuate the Board action with the State Board of Equalization and the County of San Diego. This action would cease the fees and charges applicable to parcels within IDs 19 and 25 for the excluded parcels and commence the fees and charges applicable to parcels within IDs 22 and 20 on those parcels, respectively. A subsequent action will request that IDs 19 and 25 be dissolved effective January 1, 2015. ANALYSIS: On May 14, 2013, the Board directed staff to move forward with the consolidation process. On November 6, 2013 the Board took action on the first of two necessary steps to complete this consolidation, declaring its intention to exclude and subsequently annex certain parcels and initiating the process to do so. Staff has published and posted the resolutions as required by statute, from May 19, 2014 through June 4, 2014. Therefore, the Board has the ability to confirm the exclusions and annexations at this Board meeting, provided there are not written protests filed by the holders of title of one-half of the value of the territory proposed to be annexed. The exclusions and the annexations will then become effective on January 1, 2015. The availability charges and water rates and charges are identical between IDs 19 and 22 and IDs 25 and 20, and staff has determined that there is no longer a reason to separate these parcels. This will streamline the accounting and tracking of these parcels within the District’s various information systems. Because the proposed consolidation technically imposes a “new” charge on customers, in compliance with the Proposition 218 requirements, notices were sent to all customers within these IDs to inform them of their option to protest rate changes. The required public hearing took place at the September 4, 2013 Board meeting where the Board determined there were no protests regarding this action. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Through well-established financial policies and wise management of funds, the District will continue to guarantee fiscal responsibility to its ratepayers and the community at large. LEGAL IMPACT: None. Attachments: A) Committee Action B) Resolution No. 4224 Exhibit A - Legal Description ID 19 C) Resolution No. 4225 Exhibit A - Legal Description ID 25 D) Resolution No. 4226 Exhibit A - Legal Description ID 19 E) Resolution No. 4227 Exhibit A - Legal Description ID 25 ATTACHMENT A SUBJECT/PROJECT: Resolutions as Required by the Water Code and Government Code to Confirm Exclusions of Improvement District (ID) 19 and 25 and Annexations of ID 22 and ID 20 COMMITTEE ACTION: That the Board approve the Finance, Administration and Communications Committee’s recommendation to adopt the attached Resolution Nos. 4224 and 4225, which are necessary to complete the process for the exclusion of parcels within Improvement Districts (IDs) 19 and 25. Concurrent with said action, that the Board also approve the attached Resolutions Nos. 4226 and 4227, which are necessary to complete the process for the annexation of the excluded parcels in IDs 19 and 25 into IDs 22 and 20, respectively. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. 1 RESOLUTION NO. 4224 RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT TO EXCLUDE PARCELS FROM IMPROVEMENT DISTRICT 19 WHEREAS, on April 19th, 1971 by Resolution No. 866, the Otay Water District Board of Directors (“Board”) formed Improvement District (“ID”) 19 for the purpose of incurring necessary bonded indebtedness for the acquisition, construction and completion of water improvements and works; and WHEREAS, on July 3rd, 1972 by Resolution No. 986, the Board formed ID 22 for the purpose of incurring necessary bonded indebtedness for the acquisition, construction, and completion of water improvements and works; and WHEREAS, the availability charges and water rates and charges are identical between IDs 19 and 22; and WHEREAS, staff has determined that there is no longer a reason to separate these parcels; and WHEREAS, on November 6, 2013, by Resolution No. 4219, the Board initiated proceedings to consolidate ID 19 into ID 22 to streamline the accounting and tracking of these parcels by declaring, by its own motion, its intention to exclude parcels in ID 19 pursuant to Water Code Sections 72080, et seq., with an eye towards annexing the excluded parcels into ID 22, including ordering a public hearing on said exclusion and directing staff to provide statutorily-required notice for the hearing; and WHEREAS, in compliance with Proposition 218, the Otay Water District held the required public hearing on the new fees and charges for the parcels excluded from ID 19 and annexed into ID 22 at its September 4, 2013 Board meeting, where the Board determined that there were no protests regarding this action and approved the new fees and charges; and Attachment B 2 WHEREAS, on June 4, 2014 at 3:30 p.m., a hearing was held by the Board on the questions of the proposed exclusion and the effect of such exclusion upon the Otay Water District, ID 19 and the territory to be excluded, where at such time and place, any persons interested, including all persons owning property in the Otay Water District or in ID 19, were heard and allowed to appear and present any matters material to the questions set forth in the resolution of intention to exclude. NOW, THEREFORE, BE IT RESOLVED as follows: 1. That the Board of Directors, following a public hearing on the matter, does hereby determine that it is desirable to exclude parcels within ID 19, as identified in Exhibit A to this resolution. 2. That the exclusion of parcels within ID 19, with an eye towards annexing them to ID 22, is desirable to streamline the accounting and tracking of these parcels, given that the availability charges and water rates and charges are identical between IDs 19 and 22. 3. That a map showing the exterior boundaries of the proposed territory to be excluded, with relation to the territory remaining in ID 19, is on file with the Secretary of the District and is available for inspection by any person or persons interested. Said map shall govern for all details as to the extent of the then existing improvement district. 4. The exclusion of parcels within ID 19 will become effective on January 1, 2015. BE IT FURTHER RESOLVED that the Board directs staff to take all steps reasonably necessary to effectuate such exclusion including, but not limited to, submitting the appropriate forms and fees to the State Board of Equalization and the County of San Diego. 3 PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 4th day of June, 2014. President ATTEST: Secretary 1 RESOLUTION NO. 4225 RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT TO EXCLUDE PARCELS FROM IMPROVEMENT DISTRICT 25 WHEREAS, on May 1st, 1978 by Resolution No. 1498, the Otay Water District Board of Directors (“Board”) formed Improvement District (“ID”) 25 for the purpose of incurring bonded indebtedness for the construction of a water transmission and distribution system; and WHEREAS, on May 17th, 1971 by Resolution No. 880, the Board formed ID 20 for the purpose of incurring necessary bonded indebtedness for the acquisition, construction, and completion of water improvements and works; and WHEREAS, the availability charges and water rates and charges are identical between IDs 25 and 20; and WHEREAS, staff has determined that there is no longer a reason to separate these parcels; and WHEREAS, on November 6, 2013, by Resolution No. 4220, the Board initiated proceedings to consolidate ID 25 into ID 20 to streamline the accounting and tracking of these parcels by declaring, by its own motion, its intention to exclude parcels in ID 25 pursuant to Water Code Sections 72080, et seq., with an eye towards annexing the excluded parcels into ID 20 including ordering a public hearing on said exclusion and directing staff to provide statutorily-required notice for the hearing; and WHEREAS, in compliance with Proposition 218, the Otay Water District held the required public hearing on the new fees and charges for the parcels excluded from ID 25 and annexed into ID 20 at its September 4, 2013 Board meeting, where the Board determined that there were no protests regarding this action and approved the new fees and charges; and Attachment C 2 WHEREAS, on June 4, 2014 at 3:30 p.m., a hearing was held by the Board on the questions of the proposed exclusion and the effect of such exclusion upon the Otay Water District, ID 25 and the territory to be excluded, where at such time and place, any persons interested, including all persons owning property in the Otay Water District or in ID 25, were heard and allowed to appear and present any matters material to the questions set forth in the resolution of intention to exclude. NOW, THEREFORE, BE IT RESOLVED as follows: 1. That the Board of Directors, following a public hearing on the matter, does hereby determine that it is desirable to exclude parcels within ID 25, as identified in Exhibit A to this resolution. 2. That the exclusion of parcels within ID 25, with an eye towards annexing them to ID 20, is desirable to streamline the accounting and tracking of these parcels, given that the availability charges and water rates and charges are identical between IDs 25 and 20. 3. That a map showing the exterior boundaries of the proposed territory to be excluded, with relation to the territory remaining in ID 25, is on file with the Secretary of the District and is available for inspection by any person or persons interested. Said map shall govern for all details as to the extent of the then existing improvement district. 4. The exclusion of parcels within ID 25 will become effective on January 1, 2015. BE IT FURTHER RESOLVED that the Board directs staff to take all steps reasonably necessary to effectuate such exclusion including, but not limited to, submitting the appropriate forms and fees to the State Board of Equalization and the County of San Diego. 3 PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 4th day of June, 2014. President ATTEST: Secretary Page 1 of 3 RESOLUTION NO. 4226 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION OF PARCELS EXCLUDED FROM IMPROVEMENT DISTRICT 19 INTO IMPROVEMENT DISTRICT 22 WHEREAS, on April 19th, 1971 by Resolution No. 866, the Otay Water District Board of Directors (“Board”) formed Improvement District (“ID”) 19 for the purpose of incurring necessary bonded indebtedness for the acquisition, construction and completion of water improvements and works; and WHEREAS, on July 3rd, 1972 by Resolution No. 986, the Board formed ID 22 for the purpose of incurring necessary bonded indebtedness for the acquisition, construction, and completion of water improvements and works; and WHEREAS, the availability charges and water rates and charges are identical between IDs 19 and 22; and WHEREAS, staff has determined that there is no longer a reason to separate these parcels; and WHEREAS, on November 6, 2013, by Resolution No. 4221, the Board initiated proceedings to consolidate ID 19 into ID 22 to streamline the accounting and tracking of these parcels by declaring its intention to annex parcels excluded from ID 19, if approved, into ID 22, pursuant to Water Code sections 72700, et seq., including ordering a public hearing on said annexation and directing staff to provide statutorily- required notice for the hearing; and WHEREAS, in compliance with Proposition 218, the Otay Water District held the required public hearing on the new fees and changes for the parcels excluded from ID 19 and annexed into ID 22 at its September 4, 2013 Board meeting, where the Board Attachment D Page 2 of 3 determined that there were no protests regarding this action and approved the new fees and charges; and WHEREAS, on June 4, 2014, a hearing was held by the Board at which the Board received written protests, if any, theretofore filed with the Secretary of the District, received additional written protests, if any, and heard from any and all persons interested in the annexation, where the Board determined that there were no protests filed by the holders of title of one-half of the value of the territory proposed to be annexed. NOW, THEREFORE, BE IT RESOLVED as follows: 1. That the Board of Directors, following a public hearing on the matter where written protests were not made by the owners of one-half of the value of the territory proposed to be annexed, does hereby confirm the annexation of parcels excluded from ID 19 into ID 22, as described in Exhibit “A,” pursuant to Water Code sections 72700, et seq. 2. That the Board determines from the evidence presented at the hearing that the parcels excluded from ID 19 and to be annexed into ID 22 will be benefited thereby, and that ID 22 will also be benefited thereby and will not be injured thereby, because of the streamlining of accounting and tracking of these parcels and because the availability rates and charges are identical between IDs 19 and 22. 3. A depiction of the area to be annexed, and the boundaries of IDs 19 and 22 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area to be annexed. 4. That the terms and conditions for the annexation of said parcels is as follows, with the owners required to: (a) Pay yearly assessment fees of $30.00 per acre of land and $10.00 per parcel of land less than one acre which will be collected through the County Tax Assessor’s office. Page 3 of 3 (c) In the event that water service is to be provided, the payment of all applicable water meter fees per Equipment Dwelling Unit (EDU) at the time the meter is purchased. (d) Pay all other applicable local or state agency fees or charges. 5. That the annexation shall become effective on, January 1, 2015, on the date the exclusion of parcels from ID 19 becomes effective. BE IT FURTHER RESOLVED that the Board directs staff to take all steps reasonably necessary to effectuate such annexation including, but not limited to, submitting the appropriate forms and fees to the State Board of Equalization and the County of San Diego. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 4th day of June, 2014. President ATTEST: __________________________________ District Secretary Page 1 of 3 RESOLUTION NO. 4227 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT DECLARING ITS INTENTION TO ANNEX PARCELS EXCLUDED FROM IMPROVEMENT DISTRICT 25 INTO IMPROVEMENT DISTRICT 20 WHEREAS, on May 1st, 1978 by Resolution No. 1498, the Otay Water District Board of Directors (“Board”) formed Improvement District (“ID”) 25 for the purpose of incurring bonded indebtedness for the construction of a water transmission and distribution system; and WHEREAS, on May 17th, 1971 by Resolution No. 880, the Board formed ID 20 for the purpose of incurring necessary bonded indebtedness for the acquisition, construction, and completion of water improvements and works; and WHEREAS, the availability charges and water rates and charges are identical between IDs 25 and 20; and WHEREAS, staff has determined that there is no longer a reason to separate these parcels; and WHEREAS, on November 6, 2013, by Resolution No. 4222, the Board initiated proceedings to consolidate ID 25 into ID 20 to streamline the accounting and tracking of these parcels by declaring its intention to annex parcels excluded from ID 25, if approved, into ID 22, pursuant to Water Code sections 72700, et seq., including ordering a public hearing on said annexation and directing staff to provide statutorily- required notice for the hearing; and WHEREAS, in compliance with Proposition 218, the Otay Water District held the required public hearing on the new fees and changes for the parcels excluded from ID 25 and annexed into ID 20 at its September 4, 2013 Board meeting, where the Board Attachment E Page 2 of 3 determined that there were no protests regarding this action and approved the new fees and charges; and WHEREAS, on June 4, 2014, a hearing was held by the Board at which the Board received written protests, if any, theretofore filed with the Secretary of the District, received additional written protests, if any, and heard from any and all persons interested in the annexation, where the Board determined that there were no protests filed by the holders of title of one-half of the value of the territory proposed to be annexed. NOW, THEREFORE, BE IT RESOLVED as follows: 1. That the Board of Directors, following a public hearing on the matter where written protests were not made by the owners of one-half of the value of the territory proposed to be annexed, does hereby confirm the annexation of parcels excluded from ID 25 into ID 20, as described in Exhibit “A,” pursuant to Water Code sections 72700, et seq. 2. That the Board determines from the evidence presented at the hearing that the parcels excluded from ID 25 and to be annexed into ID 22 will be benefited thereby, and that ID 22 will also be benefited thereby and will not be injured thereby, because of the streamlining of accounting and tracking of these parcels and because the availability rates and charges are identical between IDs 25 and 20. 3. A depiction of the area proposed to be annexed, and the boundaries of IDs 25 and 20 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 4. That the terms and conditions for the annexation of said parcels is as follows, with the owners required to: Page 3 of 3 (a) Payment of yearly assessment fees of $30.00 per acre of land and $10.00 per parcel of land less than one acre which will be collected through the County Tax Assessor’s office. (c) In the event that water service is to be provided, the payment of all applicable water meter fees per Equipment Dwelling Unit (EDU) at the time the meter is purchased. (d) Payment of all other applicable local or state agency fees or charges. 5. That the annexation shall become effective on, January 1, 2015, on the date the exclusion of parcels from ID 25 becomes effective. BE IT FURTHER RESOLVED that the Board directs staff to take all steps reasonably necessary to effectuate such annexation including, but not limited to, submitting the appropriate forms and fees to the State Board of Equalization and the County of San Diego. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 4th day of June, 2014. President ATTEST: __________________________________ District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: June 4, 2014 SUBMITTED BY: Kevin Koeppen, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Resolution No. 4234 to Amend Policy No. 6 the Annual Capital Improvement Program Development of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt Resolution No. 4234 to amend Policy No. 6 the Annual Capital Improvement Program Development of the District’s Code of Ordinances. COMMITTEE ACTION: See “Attachment A.” PURPOSE: To delegate to the General Manager authority to authorize CIP funds in excess of the budgeted amounts for specific projects, whereby the excess amount being authorized does not exceed the limits established by the Code of Ordinances Section 2.01 Authority of the General Manager. 2 ANALYSIS: The District reviews and amends the Code of Ordinances and related policies from time to time to keep them current. In addition, as part of the discussion during the October 2, 2013 Board meeting, the Board requested that staff explore a greater delegation of authority for the General Manager. A recent review of the Policy No. 6 has identified a change that should be made that encompasses an update of the policy and an increase in the General Manager’s authority pertaining to the Capital Improvement Program (CIP). The District currently maintains a 6-year CIP Budget of approximately $107 million, which is approved annually by the Board of Directors. The current policy authorizes the General Manager to redistribute funds between approved CIP projects as long as the total fiscal budget is not exceeded and the total budget for a specific CIP project is not exceeded. The current CIP policy does not authorize the General Manager to approve any CIP funds whereby approval would result in a specific project exceeding total budgeted amounts. Section 2.01(E) of the Code of Ordinances states the General Manager has the authority to execute agreements, contracts, other documents, or commitments on behalf of the District where the amount involved does not exceed $50,000, provided that Public Works Contracts shall be awarded in compliance with applicable laws. Section 2.01(F) of the Code of Ordinances also authorizes the General Manager to approve change orders to agreements, contracts, or other commitments on behalf of the District. If the underlying contract is awarded by the General Manager pursuant to Section 2.01 (E), the cumulative value of the approved change orders and the underlying agreement, contract or commitment shall not exceed the General Manager’s signatory authority. If the underlying contract is awarded by the Board, the General Manager may approve change orders thereto in an aggregate amount not to exceed the General Manager’s signatory authority established in Section 2.01 (E). As a result of the standard review and direction by the Board, staff would propose granting authority to the General Manager to authorize CIP expenditures in excess of the total budgeted CIP for a specific project, whereby the excess expenditure is within the General Manager’s authority as defined in Sections 2.01(E) and 2.01(F) of the Code of Ordinances. Revising the policy would lead to consistency between the General Manager’s authority granted under the Code of Ordinances Section 2.01 and authority granted to the General Manager by the policies of the District. 3 FISCAL IMPACT: Joe Beachem, Chief Financial Officer This is an incremental increase in efficiency which is expected to create some financial savings in the administration of District. STRATEGIC GOAL: Improve process efficiency by streamlining processes. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4234 Exhibit 1- Policy No. 6 Strike-through Attachment C – Proposed Policy No. 6 ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 4234 to Amend Policy No. 6 the Annual Capital Improvement Program Development of the District’s Code of Ordinances COMMITTEE ACTION: That the Finance, Administration and Communications Committee recommend that the Board adopt Resolution No. 4234 to amend Policy No. 6 the Annual Capital Improvement Program Development 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. RESOLUTION NO. 4234 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY 6 THE ANNUAL CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT OF THE DISTRICT’S CODE OF ORDINANCES WHEREAS, the Otay Water District Board of Directors has been presented with an amended Policy No. 6 of the District’s Code of Ordinances for the management of the Otay Water District; and WHEREAS, the amended Policy No. 6 has been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended policy; and WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the amended Policy No. 6, incorporated herein as Attachment C, is hereby adopted. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 4th day of June 2014, by the following vote: Ayes: Noes: Abstain: Absent: Attachment B Page 1 of 2 ________________________ President ATTEST: ____________________________ District Secretary Page 2 of 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised ANNUAL CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT 06 10/15/84 8/10/11 6/4/14 Page 1 of 2 PURPOSE To define the policy on the preparation and approval of the annual Capital Improvement Program. BACKGROUND District staff develops and maintains a Water Resources Master Plan (WRMP), an Integrated Water Resources Plan (IRP), and Strategic Plan that collectively are used to prepare the annual Capital Improvement Program (CIP) and to identify the CIP projects required for ultimate build out. The WRMP is revised every five years and adopted by the Board. Annually, staff prepares a six-year moving window CIP that provides information on budget assumptions, source of funds, allocation of funds, project costs, project location, description, justification, scheduling, etc. The six-year CIP is submitted and presented to the Board of Directors to obtain approval for staff to proceed with implementation to plan, design, and construct facilities and programs necessary to meet the needs of the District. POLICY The General Manager, or his designee, shall prepare a proposed six-year CIP for submission to the Board of Directors for their review prior to and approval by June 30 of each fiscal year. The CIP projects shall be reviewed and updated annually to consider appropriate revisions based on the most recent WRMP, IRP, Strategic Plan, and market condition information. The timing of projects shall be based on necessity and availability of financing. The intent is that new CIP projects will be installed as development requires the facilities. With regard to all CIP projects, it is acknowledged that compliance with the California Environmental Quality Act adds a measure of unpre- dictability with regard to the timing of CIP projects. The WRMP, IRP, and the CIP projects shall be divided into two phases: Phase I - one to six years; and Phase II - seven to ultimate buildout. CIP project sheets for projects in Phase I shall be prepared and identify estimated total cost, cash expenditure timing, location, description, justification, funding allocation, and schedule. For the Phase II CIP projects, the CIP shall identify the need for the projects, along with their estimated total cost and funding allocation. Upon approval by the Board of Directors of the annual six-year CIP, staff is authorized to proceed with planning, design, construction, etc. of those projects that have budgets within the current fiscal year. The General Manager is authorized to Exhibit 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised ANNUAL CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT 06 10/15/84 8/10/11 6/4/14 Page 2 of 2 redistribute funds between approved CIP projects as long as the total fiscal year budget is not exceeded and In addition, the total budget for a specific CIP project is not exceeded by an amount greater than that authorized under Code of Ordinances Section 2.01 Authority of the General Manager. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised ANNUAL CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT 06 10/15/84 6/4/14 Page 1 of 2 PURPOSE To define the policy on the preparation and approval of the annual Capital Improvement Program. BACKGROUND District staff develops and maintains a Water Resources Master Plan (WRMP), an Integrated Water Resources Plan (IRP), and Strategic Plan that collectively are used to prepare the annual Capital Improvement Program (CIP) and to identify the CIP projects required for ultimate build out. The WRMP is revised every five years and adopted by the Board. Annually, staff prepares a six-year moving window CIP that provides information on budget assumptions, source of funds, allocation of funds, project costs, project location, description, justification, scheduling, etc. The six-year CIP is submitted and presented to the Board of Directors to obtain approval for staff to proceed with implementation to plan, design, and construct facilities and programs necessary to meet the needs of the District. POLICY The General Manager, or his designee, shall prepare a proposed six-year CIP for submission to the Board of Directors for their review prior to and approval by June 30 of each fiscal year. The CIP projects shall be reviewed and updated annually to consider appropriate revisions based on the most recent WRMP, IRP, Strategic Plan, and market condition information. The timing of projects shall be based on necessity and availability of financing. The intent is that new CIP projects will be installed as development requires the facilities. With regard to all CIP projects, it is acknowledged that compliance with the California Environmental Quality Act adds a measure of unpre- dictability with regard to the timing of CIP projects. The WRMP, IRP, and the CIP projects shall be divided into two phases: Phase I - one to six years; and Phase II - seven to ultimate buildout. CIP project sheets for projects in Phase I shall be prepared and identify estimated total cost, cash expenditure timing, location, description, justification, funding allocation, and schedule. For the Phase II CIP projects, the CIP shall identify the need for the projects, along with their estimated total cost and funding allocation. Upon approval by the Board of Directors of the annual six-year CIP, staff is authorized to proceed with planning, design, construction, etc. of those projects that have budgets within the current fiscal year. The General Manager is authorized to Attachment C OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised ANNUAL CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT 06 10/15/84 6/4/14 Page 2 of 2 redistribute funds between approved CIP projects as long as the total fiscal year budget is not exceeded In addition, the total budget for a specific CIP project is not exceeded by an amount greater than that authorized under Code of Ordinances Section 2.01 Authority of the General Manager. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: June 4, 2014 PROJECT: Various DIV. NO. All SUBMITTED BY: Adolfo Segura Assistant Chief, Administrative Services and IT APPROVED BY: Geoff Stevens, Chief Information Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: INFORMATION TECHNOLOGY RELATED SERVICE CONTRACTS FOR FY 2015 GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to negotiate and enter into the following agreements: 1. One (1) year service agreements with: a. AT&T in the amount of $135,000 for local and long-distance telephone and internet service. b. Verizon Wireless in the amount of $70,320 for cellular phone and wireless modem service and equipment. c. Tyler Technologies in the amount of $127,000 for ERP/Financial software maintenance costs and annual technical support. 2. One (1) year, with two (2) one-year option renewal service agreements with: a. ESRI in the amount of $162,000 ($54,000 annually) for enterprise license agreement (ELA) and support services. COMMITTEE ACTION: See “Attachment A”. 2 PURPOSE: To authorize the purchase of equipment and services necessary to support Information Technology’s daily operations and services, and to enhance District systems to meet emerging business needs as identified in the District’s Strategic Plan. ANALYSIS: The IT department presents to the Board specific technology related expenses that require Board approval because they exceed the General Manager’s signature authority of $50,000 for a specific contract. These contracts and purchases are required to either operate the District’s technology environment or to make planned technology related infrastructure improvements. Each item requiring the District to issue a purchase order or contract for greater than $50,000 is described in detail in the following section. All of the items in this staff report are specifically itemized in the FY 2015 budget as well. By presenting these items collectively, we want to provide to the Board a more detailed view of expenses related to the District’s information systems. All purchasing guidelines have been met for the specific items in this report. Where possible, items have been competitively bid. Certain items, such as software licenses and vendor support, are sole source contracts, as only one vendor can support the product. Certain items are also purchased utilizing pricing provided in state authorized competitive contracts, primarily CALNET and WSCA (state and regional wide agreements which guarantees competitive pricing). Where possible, agreements will utilize the District’s standard contract form, which provides the ability to terminate the agreement with or without cause upon 60-day notice. Contracts for software licenses and support are generally not open to negotiation and the manufacturer’s standard one (1) year agreement will be utilized. The following are detailed descriptions of the specific requests: Explanation of Costs Software and Support Agreements: AT&T, $135,000 - This item covers the purchase of telephone, facility connectivity and internet services to support all District operations. This item utilizes CALNET pricing which has been competitively bid by the State of California. Funds for these services are allocated in the IT O&M budget. Verizon Wireless, $70,320 – This item covers cellular phone, wireless modem, and equipment service for District operations. Although Verizon was not the lowest submitted service quote, the savings would not 3 outweigh the internal work efforts and time required to change devices across the District. Also, based on field operations, Verizon continues to provide reliable service coverage and performance within the District’s footprint. The District’s inventory is: 86 iPhones for staff use (administrative and field use), and 95 wireless 3G/4G devices and service for mobile air cards, hot-spots and field connectivity, including remote monitoring of SCADA and alarm systems. Pricing from all carriers fall within WSCA competed contracts, which are active until 2016. Funds for this item are allocated in the IT O&M budget. Service Provider Plan Details Per month cost Verizon Unlimited Data & Pay-As- You-Go Voice Plan - Unlimited 3G & 4G Wireless (basic plan) $5,860 per month Sprint Same as above $5,844 per month AT&T Same as above $7,828 per month Eden Tyler Technologies, $127,000 – This item covers yearly required software maintenance for the District’s enterprise resource planning (ERP) software suite, which includes Utility Billing, Financial, Human Resources and Permitting Systems. The ERP software suite is exclusively owned by Tyler Technologies. The yearly maintenance fee includes all core licensing, software support to include required annual service packs, and technical support for all software modules. This item is a sole source contract as only the product vendor is authorized to provide maintenance support. Funds for this item are allocated in the IT O&M budget. ESRI, $162,000 ($54,000 annually) - This item covers yearly required software maintenance for the District’s ESRI enterprise geographic information system (GIS). The District uses GIS to capture, manage, analyze and display boundary and map assets in geographically referenced information. The GIS software technology is exclusively owned by ESRI. The yearly maintenance fee includes all core licensing, software support to include required annual service packs, and technical support for all software modules. This item is a sole source contract as only the product vendor is authorized to provide maintenance support. FISCAL IMPACT: Joe Beachem, Chief Financial Officer These items, totaling $494,320, are specifically included in the FY 2015 Operational Budget.   STRATEGIC GOAL: These items are in support of the District’s required services and Strategic Plan, which specifically improve the overall operating cost. 4 LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Report ATTACHMENT A SUBJECT/PROJECT: INFORMATION TECHNOLOGY RELATED SERVICE CONTRACTS FOR FY 2015 COMMITTEE ACTION: The Finance, Administration and Communications Committee met on May 21, 2014 to review this item. The Committee supports presentation to the full Board for their consideration. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board.