HomeMy WebLinkAbout09-16-14 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
TUESDAY
September 16, 2014
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 JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. ANNUAL DIRECTOR’S EXPENSE REPORT FOR FISCAL YEAR 2014
(BENHAM) [5 minutes]
4. ADOPT RESOLUTION NO. 4243 SUPPORTING THE CITY OF SAN DIEGO’S
NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM PERMIT AS
PART OF A LONG-RANGE REGIONAL WATER REUSE PLAN WITH THE
GOAL OF REALIZING A SECONDARY EQUIVALENT POINT LOMA
WASTEWATER TREATMENT (POSADA) [10 minutes]
5. APPROVE AMENDMENTS TO THE DISTRICT’S PURCHASING MANUAL
SECTION 12, DISPOSAL OF SURPLUS PROPERTY, IN ORDER TO
STREAMLINE AND EXPEDITE THE DISPOSAL PROCESS, PROVIDE
CLARITY TO INTENT, AND TO ALIGN DISPOSAL PROCEDURES WITH
DISTRICT POLICY (PAYNE) [5 minutes]
6. FISCAL YEAR-END 2014 STRATEGIC PERFORMANCE PLAN REPORT
(STEVENS) [10 minutes]
7. ADJOURNMENT
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BOARD MEMBERS ATTENDING:
Mitch Thompson, Chair
Jose Lopez
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 September 12, 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 (Gov-
ernment Code Section §54954.2).
Executed at Spring Valley, California on September 12, 2014.
______/s/_ Susan Cruz, District Secretary _____
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: October 1, 2014
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 2014 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 Directors’expenses for Fiscal Year 2014.
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. The disclosure
requirement shall be fulfilled by including the reimbursement information in a document published or printed, at least annually by a date determined by that district, and shall be made available for
public inspection. (See Attachment B for the Summary and C-H for Details.)
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FISCAL IMPACT:
None.
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-H Director’s Expenses Detail
ATTACHMENT A
SUBJECT/PROJECT:
Fiscal Year 2014 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.
BOARD OF DIRECTORS’
EXPENSES AND PER DIEMS
FINANCE, ADMINISTRATION, AND COMMUNICATIONS COMMITEE MEETING
September 16, 2014
ATTACHMENT B
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 2014.
•The expenses are shown by Board member and
expense type.
•This presentation is in alphabetical order.
•This information is to be presented to the Finance,
Administration, and Communications Committee
on September 16, 2014.
Board of Directors’ Expenses and Per Diems
Fiscal Year 2014 to Date (Jul 2013 – Jun 2014)
Director Croucher $1,600.00
Director Gonzalez $6,461.17
Director Lopez $10,122.07
Director Robak $1,232.18
Director Thompson $7,327.34
Total $26,742.76
OTAY WATER DISTRICT
BOARD EXPENSES
July 1, 2013 -June 30, 2014
Croucher Gonzalez Lopez Robak Thompson Total
Business Meetings $ - $ - $ 314.00 $ 155.00 $ 90.00 $ 559.00
Director's Fees 1,600.00 2,500.00 7,500.00 1,000.00 5,500.00 18,100.00
Mileage Business - 138.39 384.96 60.32 289.94 873.61
Mileage Commuting - - 428.63 16.86 452.92 898.41
Conferences and
Seminars - 2,440.00 500.00 - - 2,940.00
Travel - 1,382.78 994.48 - 994.48 3,371.74
Total $ 1,600.00 $ 6,461.17 $ 10,122.07 $ 1,232.18 $ 7,327.34 $ 26,742.76
Meetings Attended 1633962466235
Meetings Paid 16 25 75 10 55 181
Board of Directors’ Expenses and Per Diems
Fiscal Years 2000-2014
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: October 1, 2014
SUBMITTED BY:
Bob Kennedy
Engineering Manager
PROJECT: S1502-
001000
DIV. NO. All
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4243 Supporting the City of San Diego’s
National Pollution Discharge Elimination System (NPDES) Permit
for the Point Loma Wastewater Treatment Plant and to support
the Pure Water San Diego Program
GENERAL MANAGER’S RECOMMENDATION:
Adopt Resolution No. 4243 (Attachment B) supporting the City of San
Diego’s National Pollution Discharge Elimination System (NPDES)
permit as part of a long-range regional water reuse plan with the
goal of realizing a secondary equivalent Point Loma Wastewater
Treatment Plant (PLWTP). The Pure Water San Diego Program, as a new
local sustainable water supply, could also avoid or downsize future
imported water projects.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To request that the Board consider supporting the City of San Diego’s
NPDES permit as part of a long-range regional water reuse plan. The
Clean Water Act of 1972 requires wastewater to be treated to achieve
certain protections before ocean discharge. The Ocean Pollution
Reduction Act (OPRA) of 1994 allowed the City of San Diego to apply
for modified NPDES permits allowing the PLWTP to continue operating
at an Advanced Primary Treatment Level while meeting or exceeding all
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general and specifically negotiated regulatory obligations. To
remain operating at the Advanced Primary Treatment Level, the City of
San Diego is seeking passage of federal legislation, with support
from the environmental community, the proposal called Ocean Pollution
Reduction Act II (OPRA II). OPRA II will allow the City of San
Diego’s NPDES permit to be based on secondary equivalency with a
commitment to implement potable reuse of wastewater. Resolution No.
4243 supports the City of San Diego’s NPDES permit application. A
summary of the basis of the Application for the PLWTP 2015 NPDES
Modified Permit Renewal is included with Attachment C.
ANALYSIS:
The Metropolitan Wastewater Joint Powers Authority (JPA) is a
coalition of municipalities and special districts in the southern and
central portions of San Diego County that share in the use of the
City of San Diego's (City) regional wastewater collection and
treatment facilities. This coalition represents 35% of the flow and
$65 million of the annual budget in relation to the Metro wastewater
system. The JPA member agencies include the cities of Chula Vista,
Coronado, Del Mar, El Cajon, Imperial Beach, La Mesa, National City,
and Poway, the Lemon Grove Sanitation District, the Padre Dam
Municipal and Otay Water Districts, and the County of San Diego on
behalf of the County Sanitation Districts. Otay Water District
contributes approximately 0.5% of the wastewater flow to the Metro
wastewater system.
Members of the JPA believe that permanent acceptance of a smaller
Point Loma Wastewater Treatment Plant as an Advanced Primary
Treatment plant can be achieved through development and
implementation of a comprehensive, systematic Regional Water Reuse
Plan (Plan). This Plan must increase public awareness, further
catalyze customer action through individual water conservation and
implement a variety of agency-specific and collaborative large-scale
potable water reuse projects. These include indirect potable reuse
(IPR), resulting in significant off-loading of the treatment demand
on the PLWTP.
The City’s PLWTP is currently permitted to treat 240-million gallons
of wastewater per day (MGD). The current permit allows treatment to
an Advanced Primary Level and is set to expire on July 31, 2015. It
takes approximately one year to collect and assemble the data
required for the permit application that must be submitted no later
than January 2015. That process began in January of this year
(2014).
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The City has 20 years of ocean monitoring data demonstrating that the
Advanced Primary PLWTP consistently protects the ocean. The City has
estimated the cost of upgrading the PLWTP from Advanced Primary to
Full Secondary Treatment Level to $3.5 billion. This high cost of
the upgrade, combined with the projected high costs for creating a
reliable potable water supply, has led the City to the conclusion
that it is possible to divert flow from PLWTP and to treat a portion
of this diverted flow to a level suitable for IPR and maintain PLWTP
at Advanced Primary without impacting the ocean environment.
The product of years of collaboration between stakeholders and
technical experts, the Recycled Water Study outlines a concept to
divert almost 100 MGD of wastewater that would otherwise have been
treated. If this goal can be achieved, the lower flow to the PLWTP
could preclude the need for upgrading to a Full Secondary Level, and
use the diverted flow to offset the region’s future potable water
import needs. The City has successfully completed a 1 MGD Advanced
Water Purification Demonstration Project that treats wastewater and
yields product water of similar quality to distilled water.
The City is expected to present a report on the status of the Pure
Water San Diego implementation strategy at a meeting of the City
Council prior to submission of the modified NPDES permit renewal
application. The City is looking for all stakeholders to approve and
support the City’s efforts to develop the budget, structure,
staffing, contracts, regulatory packages, legislative strategy, and
public outreach programs necessary to support Pure Water San Diego.
Part of the consideration of next five year permit is to reduce the
total suspended solids (TSS) from the permitted 13,598 tons to 12,000
tons commencing on December 21, 2015. If OPRA II legislation is
passed, the TSS will be further reduced to 9,942 tons by December 31,
2027. In addition, funding will be allocated for planning and design
work of facilities with the next five (5) years.
Current indications are that the City will request, at the Metro
Commission meeting of October 2, 2014, the Commission’s support of
the City’s January 2015 permit application including many of the
details discussed above. The Summary of the Basis of the Application
for the PLWTP 2015 NPDES Modified Permit Renewal also provides a
schedule for starting various elements of the project including
issuing the Notice of Preparation for a Programmatic EIR no later
than January 30, 2015 and issuing a Notice to Proceed for the first
project design no later than January 30, 2017.
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FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
This Resolution supports the District’s Mission statement, “To
provide high value water and wastewater services to the customers of
the Otay Water District in a professional, effective, and efficient
manner” and the General Manager’s Vision, “A District that is
innovative in providing water services at affordable rates, with a
reputation for outstanding customer service.”
LEGAL IMPACT:
The District’s Legal Counsel has reviewed and approved Resolution No.
4243 as to form and legality.
BK/RP:jf
P:\WORKING\CIP S1502 - City of San Diego Metro Water Issues\Staff Reports\Bd 10-01-14, Staff Report
Metro JPA Pure Water Program\Revised Staff Report\BD 10-01-14, Staff Report, Metro JPA-Revised, (BK-
RP).docx
Attachments: Attachment A – Committee Action
Attachment B – Resolution No. 4243
Attachment C – Summary of the Basis of Application for
the PLWTP 2015 NPDES Modified Permit
Renewal
Attachment D – Metro JPA Power Point Presentation
ATTACHMENT A
SUBJECT/PROJECT:
S1502-001000
Adopt Resolution No. 4243 Supporting the City of San
Diego’s National Pollution Discharge Elimination System
(NPDES) Permit for the Point Loma Wastewater Treatment
Plant and to support the Pure Water San Diego Program
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee (Committee)
reviewed this item at a meeting held on September 16, 2014. The
Committee supported Staff's recommendation.
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
RESOLUTION NO. 4243
A JOINT RESOLUTION OF THE OTAY WATER DISTRICT AS A MEMBER OF
AND WITH THE METRO WASTEWATER JPA/METRO COMMISSION,
SUPPORTING THE CITY OF SAN DIEGO’S NATIONAL POLLUTANT DISCHARGE
ELIMINATION SYSTEM (NPDES) FOR THE POINT LOMA WASTEWATER
TREATMENT PLANT
WHEREAS, the Point Loma Wastewater Treatment Plant (PLWTP) is a regional
facility in the Metro Wastewater System, operated by the City of San Diego, permitted to treat
240 million gallons of wastewater per day to an Advanced Primary Level, serving a 12 member
Joint Powers Authority that comprises approximately 35% of the total flow in the Metro
Wastewater System/ PLWTP; and
WHEREAS, the Clean Water Act of 1972 requires that wastewater be treated to
achieve certain protections before ocean discharge and the permitting of wastewater treatment
plants, and wastewater treatment plant permits must be renewed every five years; and
WHEREAS, the Ocean Pollution Reduction Act (OPRA) of 1994 allowed the City of
San Diego to apply for modified NPDES permits allowing PLWTP to continue operating at an
Advanced Primary Treatment Level while meeting or exceeding all general and specifically
negotiated regulatory obligations including ocean protection requirements; and
WHEREAS, the City of San Diego has 20 years of ocean monitoring data
demonstrating that the Advanced Primary PLWTP consistently protects the ocean environment;
and
WHEREAS, the City of San Diego and Stakeholders from the environmental
community have agreed upon a definition for secondary equivalency and will use their best
efforts to have federal legislation passed in accordance with the proposal called Ocean Pollution
Reduction Act II (OPRA II). Generally, OPRA II will allow the City’s NPDES permit to be
based on secondary equivalency with a commitment to implement potable reuse of wastewater
and allow the PLWTP to remain operating at the Advanced Primary Treatment Level; and
WHEREAS, the current modified permit for the PLWTP expires on July 31, 2015, and
City of San Diego staff need to submit an application to renew the NPDES permit by January
30, 2015.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay
Water District as follows:
That the Board of Directors of the Otay Water District desires the Point Loma
Wastewater Treatment Plant to remain operating at an Advanced Primary Treatment
Level.
That the Board of Directors of the Otay Water District supports the concept of
secondary equivalency for the Point Loma Wastewater Treatment Plant and desires
the passage of federal legislation in accordance with the proposal call Ocean
Pollution Reduction Act II (OPRA II). Generally, OPRA II will allow the City’s
NPDES permit to be based on secondary equivalency with a commitment to
implement potable reuse of wastewater and allow the PLWTP to remain operating at
the Advanced Primary Treatment Level.
That the Board of Directors of the Otay Water District supports the City of San
Diego’s NPDES Permit Application for the Point Loma Wastewater Treatment Plant
as further described in the attached Basis of Point Loma Application..
PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Otay
Water District on the 1st day of October, 2014:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
President
ATTEST:
_____________________________
District Secretary
August 15, 2014
Summary of the Basis of the Application for the PLWTP 2015 NPDES Modified Permit Renewal
The application will be based on:
a. Compliance with CWA section 301(h) requirements for waivers. (required)
b. Compliance with CWA section 301(J) requirements (Ocean Pollution Reduction Act). (required)
c. Point Loma will remain as a Chemically Enhanced Primary Treatment Plant with a capacity of 240
mgd.
d. It will also contain specific provisions voluntarily included to enhance the application: These include
the following provisions that would be included in the final modified NPDES permit as program goals, as
well as some enforceable permit requirements.
e. The goals related to water produced will be calculated based on wastewater in the applicant’s wastewater
system and wastewater systems connected to the applicant’s wastewater system:
New Enforceable Provision Request What is in current permit
Cap TSS mass emissions (metric tons/year):
12,000 – Commencing no later than December 31, 2015
TSS mass emissions have been reduced
1mt/yr in each permit cycle:
13,600 in 1995 permit
13,599 in 2002 permit
13,598 in 2010 permit(current
permit)
Issue NTP for pre-design for the at least 15 mgd:
No later than July 28, 2014
N/A
Issue Notice of Preparation for a Programmatic EIR:
No later than January 30, 2015
N/A
Issue NTP for first project Design for at least 15 mgd:
No later than January 30, 2017
N/A
Include in application as future goals, subject to approval of the OPRA II legislation
Cap TSS mass emissions (metric tons/year):
11,500 - Commencing on December 31, 2025
9,942 - Commencing of December 31, 2027*
*equivalent to Pt Loma at secondary and full capacity (240
mgd)
13,600 in 1995 permit
13,599 in 2002 permit
13,598 in 2010 permit(current)
Produce at least 15 mgd of Potable Reuse Water:
No later than December 31, 2023
N/A
Produce at least 30 mgd of Potable Reuse Water (cumulative
total):
No later than December 31, 2027
N/A
Produce at least 83 mgd of Potable Reuse Water (cumulative
total):
No later than December 31, 2035
N/A
IPR-DPR
Regional Water Reuse Plan
Secondary Equivalency for the
Point Loma Wastewater Treatment Plant
ATTACHMENT D
Metro Wastewater Joint Powers Authority
•Formed 1988
•35% of Flow & Cost of SD Metro WW System
•Twelve Member Agencies
•Formed 1988
•35% of Flow & Cost of SD Metro WW System
•Twelve Member Agencies
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San Diego Metropolitan Wastewater System
•PLWTP: 240 MGD
•North City Water Reclamation
Plant (NCWRP): 30 MGD
•South Bay Water Reclamation
Plant (SBWRP): 15 MGD
•Metro Biosolids Center (MBC)
•Point Loma Ocean Outfall (PLOO)
•South Bay Ocean Outfall (SBOO)
•Metro Wastewater Pump
Stations/Pipelines
3
Wastewater Treatment Levels
•Primary
o 65% Solids Removal
•Advanced Primary (PLWTP)
o 87/88% Solids Removal
•Secondary
o 90% Solids Removal
•Tertiary (NCWRP, SBWRP)
o 99% Solids Removal
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PLWTP Permit Background
Clean Water Act of 1972 established secondary
treatment standards for all discharges.
•pH (acidity)
•Total Suspended
Solids (TSS)
•Biochemical Oxygen
Demand (BOD)
5
PLWTP Permit Background
Wastewater Treatment Plant MUST get a Permit or
Modified Permit every 5 years
•Environmental Protection
Agency
•Regional Water Quality Control
Board
•State Water Resources Control
Board
•California Coastal Commission
6
PLWTP Permit Background (cont’d)
Wastewater Treatment Plant MUST get a Permit
or Modified Permit every 5 years
Environmental Community Support for another
San Diego Waiver to meet secondary treatment
requirements at PLWTP is unlikely
•Current Permit EXPIRES July 31, 2015
•Permit application due January 2015
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Challenge
Avoid Upgrade of Point Loma Wastewater
Treatment Plant to Secondary
•Saving Billions of Dollars
•Create a New, Local, Diversified Water Supply
$3.5 Billion
8
Solution
•Obtain legislation so that the discharge from Pt. Loma is considered
equivalent to secondary for purposes of compliance with the CWA
standards
–No more modified permit renewals required every five years
–Provides certainty for the ratepayer and planners
–Resources can be allocated for other issues
•Achieve Equivalent Total Suspended Solids Discharge
–Pt Loma’s current rated capacity is 240MGD. At secondary (30mg/l TSS
discharge) it would put out 9,942 metric/tons per year of TSS
–Set a cap on TSS discharge from Pt Loma to never exceed 9,942 mt/yr
–Keep current permitted removal rate for TSS: 80%
–Set a maximum level of TSS in the effluent: 60 mg/l
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San Diego
Recycled
Water Study
NCWRP
(30 MGD)
Alternative
AWPF
(52.8 MGD)(2032)
SBPS(2022)
AWPF (15 MGD)
(2026)
Otay
Reservoir
San Vicente
ReservoirAWPF(15 MGD)
(2023)
SBWRP (15 MGD)
SBOO
PLOO
PLWTP(143 MGD)
SBWTP (29 MGD [2022]
18 MGD [>2050]
47 MGD )
Wet Weather Storage by 2050:
(28 Million Gallons)
10
San Diego Water Reuse Demonstration Project
•Proved ability to purify wastewater at operational
flow rates
•Quality of water similar to distilled water—
Far Superior to Current Raw Water Sources
11
12
Metro JPA Recommendation
•Create a Long Range Regional Water Reuse
Program focused on potable water reuse that:
–Provides new, local, sustainable water supply (≈83
MGD)
–PLWTP to meet secondary equivalency
–Avoids billions of dollars in capital, financing,
energy and operating costs
–Continues to protect the ocean environment
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Metro JPA Recommendation
•Approve Resolution Supporting City’s NPDES
Permit Application:
–PLWTP to remain Advanced Primary Treatment
Level
–Passage of new federal legislation supporting
secondary equivalency
–Commitment to implement potable reuse of
wastewater
14
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STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: October 1, 2014
PROJECT: Various DIV. NO. ALL
SUBMITTED BY: Kent Payne
Purchasing and Facilities Manager
APPROVED BY:
Adolfo Segura, Assistant Chief, Admin Services and IT
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: AMENDMENT OF THE DISTRICT'S PURCHASING MANUAL TO STREAMLINE
THE PROCESS FOR DISPOSAL OF SURPLUS PROPERTY
GENERAL MANAGER’S RECOMMENDATION:
That the Board approve amendments to the District’s Purchasing Manual
Section 12, Disposal of Surplus Property, as identified in “Attachment
B” in order to streamline and expedite the disposal process, provide
clarity to intent, and to align disposal procedures with District
policy.
COMMITTEE ACTION:
See “Attachment A”.
PURPOSE:
To request that the Board amend the District’s Purchasing Manual as
presented in “Attachment B” in order to streamline and expedite the
disposal process, provide clarity to intent, and to align disposal
procedures with District policy.
ANALYSIS:
The Board of Directors establishes the operational guidelines and
procedures with respect to purchasing materials, equipment, and
services necessary to conduct the District’s business as well as
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procedures for the disposition of surplus items. These procedures are
defined and published in the District’s Purchasing Manual. As a normal
course of business, the manual is reviewed periodically and changes are
recommended that are intended to improve the operation of the District.
Surplus Value Criteria and Thresholds
Sections 12.1.b and 12.1.c establish the level of authority at which
the General Manager may declare items trash, scrap, or surplus.
Currently, the General Manager has the authority to declare property
surplus and dispose of it only if the original acquisition price of the
individual item does not exceed $5,000, regardless of the current
residual value. This results in the General Manager periodically
presenting to the Board a list of items, most of which have little or
no residual value.
In order to streamline and expedite the process, the recommendation is
to delegate to the General Manager the authority to declare property
surplus if the estimated residual value of the individual item is
$10,000.00 or less, regardless of the original acquisition price. The
items that are declared surplus would continue to be disposed of
pursuant to the existing guidelines. Typically, items with a residual
value are disposed of by sale through public auction. Items with no
remaining useful life are sold for scrap value.
Clarifying Language
Sections within 12.1 GENERAL have been updated to clarify the intent of
each section. Section 12.1.b has been modified to clearly address the
disposition of items that retain a useful life and value in the market
place but are surplus to the needs of the District. Section 12.1.c has
been modified to clearly address the disposition of items that have
little or no value to the District nor in the market place.
Policy Alignment
Section 12.2.1 Auction Sale: Subsection a.4) By Sale to District
Employees, has been deleted in its entirety in order to align disposal
procedures with the District’s policy that District property shall not
be sold to nor given away to District employees.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
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STRATEGIC GOAL:
This action supports the District’s goal to ensure financial health
through formalized policies, prudent investing, and efficient
operations.
LEGAL IMPACT:
None.
Attachments:
Attachment A – Committee Action Report
Attachment B – Strike-thru Copy, Section 12.1.b and 12.1.c
Attachment C – Proposed Copy, Section 12.1.b and 12.1.c
ATTACHMENT A
SUBJECT/PROJECT: AMENDMENT OF THE DISTRICT'S PURCHASING MANUAL TO STREAMLINE
THE PROCESS FOR DISPOSAL OF SURPLUS PROPERTY
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee reviewed
this item at a meeting held on September 16, 2014. 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.
Section 12 – Disposal of Surplus Property
12.0 PURPOSE:
To provide a standardized method for disposing of materials, supplies and other property,
excluding real property, that is surplus to the needs of the District.
12.1 GENERAL:
a. a. It is staff’s responsibility to keep the District’s inventories as low as possible and to
standardize materials, supplies and equipment used so asin order to minimize the number
of articles carried in stock while ensuring that District operations, functions, and
requirements can be effectively met.
b. Surplus Items - To accomplish this, theThe District’s General Manager shall not less
than annually develop, on an as- need basis, an inventory of propertiesy that is are surplus
to the District’s needs, which retain a useful life and value in the market place. Said
inventory shall be and presented it to the Board of Directors at a regularly scheduled
board meeting. At and at a minimum, the information provided shall include the
quantity and description of the surplus property and a proposed method for said
property’sits disposal. The General Manager or his/her designee may declare items
with a residual value less than $10,000.00 as surplus to the needs of the District and
authorize their disposal. to be trash, scrap, or, for items for which the acquisition
cost was $5000.00 or less, as surplus and authorized for disposal. Where the
acquisition costresidual value of an item exceedsed $5000.00$10,000.00, only the
Board of Directors may declare the property, as surplus and authorized for its disposal.
c. Items of Little or No Value – Items that have no value to the District and
little or no value in the market place except as scrap or for a purpose other than
its originally intended use, tThe General Manager or his/her designee shall have
authority to declare District said propertiesy as trash or scrap and for items for which
the acquisition cost was $5000.00 or less, as surplusauthorize their disposal. For
purposes of this section, “trash” is defined as an item that has no value to the District or
in the market place and “scrap” is defined as an item that has no value to the District but
may have a nominal value in the market place as a raw or scrap material or for a purpose
other that its originally intended use. The General Manager shall inform the Board,
through the General Manager’s report presented during a regular board meeting, of any
declaration of trash or scrap when the acquisition costvalue of the item was greater than
$510,000.
12.2 PROCEDURE:
Once property has been declared surplus it shall be the responsibility of the Purchasing and
Facilities Manager, in a manner provided herein and approved by the General Manager, to
dispose of the surplus property. All property shall be disposed of “as is-where is”, with
no warranty or guarantee as to serviceability or usability and where applicable, paid in full in
U.S. currency prior to delivery. District property tags shall be removed from the surplus property
prior to its disposal.
12.2.1 Auction Sale:
a. Disposal of surplus property may be accomplished through auction sale.
1) Through consignment of items to a vendor, a private auctioneer, licensed and
bonded to do business in San Diego County, to sell on behalf of the District.
Where authorized by the General Manager, the Purchasing and Facilities Manager
shall enter into an agreement with the vendor that has the potential of generating the
most market interest and, therefore, the highest net proceeds for the District. The
consignment vendor shall, at its expense, advertise the item for sale and shall accept
offers for the District, with the District having final acceptance authority.
2) By advertising for sale in a newspaper of general circulation or in any other
manner approved by the General Manager. Newspaper ads shall be placed at least
two (2) weeks prior to the sale date and shall identify the property for sale. Sealed
bids will be solicited unless otherwise directed by the Purchasing and Facilities
Manager and the property will be sold to the highest bidder.
Bid security shall be provided by requiring that a ten percent (10%) guarantee
accompany each bid or aggregated bid. Such bid security shall be in the form of a
certified check, cashier’s check, or money order payable to the order of the District.
Payment of the balance of the total bid must be made by the successful bidder
within twenty-four (24) hours after the award. In the event the successful bidder
fails to pay the balance of his bid, the bid security will be forfeited and the award will
be made to the next highest responsible bidder.
The successful bidder shall be responsible for all required permits, fees and
licenses. The property shall be removed from District premises in a time frame
established by the Purchasing and Facilities Manager.
3) By participation in a joint municipal/public agency public auction. Where authorized
by the General Manager, the District may dispose of surplus property through
participation in a joint municipal/public agency auction.
4) By sale to District Employees. Where authorized by the General Manager, the
District may dispose of surplus property by sale to District employees through a
sealed bid process.
a) The General Manager or the Purchasing and Facilities Manager shall
ascertain the fair market value of such property and shall post a
description of the property together with its fair market value at the
District’s business and field offices and shall therein invite the employees
to submit sealed informal bids. No bid shall be accepted which is below
the stated fair market value for said property. Award shall be made to the
highest bidder.
b) The Board of Directors, the General Manager and any employee designated
by the General Manager, shall be excluded from bidding and shall not be
allowed to purchase such surplus property.
c) Any employee purchasing such property must certify to the District
that such property purchased is for the sole use of the employee and not for
resale. Sale of, or gift of said property within one year from the date
of purchase may constitute grounds for immediate employee termination.
d) The successful bidder shall be responsible for all required permits, fees and
licenses.
The property shall be removed from District premises in a time frame established by the
Purchasing and Facilities Manager.
Section 12 – Disposal of Surplus Property
12.0 PURPOSE:
To provide a standardized method for disposing of materials, supplies and other property, excluding
real property, that is surplus to the needs of the District.
12.1 GENERAL:
a. It is staff’s responsibility to keep the District’s inventories as low as possible and to standardize
materials, supplies and equipment in order to minimize the number of articles carried in stock
while ensuring that District operations, functions, and requirements can be effectively met.
b. Surplus Items - The General Manager shall develop, on an as-need basis, an inventory of
properties that are surplus to the District’s needs, which retain a useful life and value in the market
place. The General Manager or his/her designee may declare items with a residual value less
than $10,000.00 as surplus to the needs of the District and authorize their disposal. Where the
residual value of an item exceeds $10,000.00, only the Board of Directors may declare the
property surplus and authorize its disposal.
c. Items of Little or No Value – Items that have no value to the District and little or no
value in the market place except as scrap or for a purpose other than its originally intended
use, the General Manager or his/her designee shall have authority to declare said properties
trash or scrap and authorize their disposal.
12.2 PROCEDURE:
Once property has been declared surplus it shall be the responsibility of the Purchasing and Facilities
Manager, in a manner provided herein and approved by the General Manager, to dispose of the surplus
property. All property shall be disposed of “as is-where is”, with no warranty or guarantee as to
serviceability or usability and where applicable, paid in full in U.S. currency prior to delivery. District
property tags shall be removed from the surplus property prior to its disposal.
12.2.1 Auction Sale:
a. Disposal of surplus property may be accomplished through auction sale.
1) Through consignment of items to a vendor, a private auctioneer, licensed and bonded to do
business in San Diego County, to sell on behalf of the District. Where authorized by the
General Manager, the Purchasing and Facilities Manager shall enter into an agreement with
the vendor that has the potential of generating the most market interest and, therefore, the
highest net proceeds for the District. The consignment vendor shall, at its expense, advertise
the item for sale and shall accept offers for the District, with the District having final
acceptance authority.
2) By advertising for sale in a newspaper of general circulation or in any other
manner approved by the General Manager. Newspaper ads shall be placed at least
two (2) weeks prior to the sale date and shall identify the property for sale. Sealed
bids will be solicited unless otherwise directed by the Purchasing and Facilities
Manager and the property will be sold to the highest bidder.
Bid security shall be provided by requiring that a ten percent (10%) guarantee
accompany each bid or aggregated bid. Such bid security shall be in the form of a
certified check, cashier’s check, or money order payable to the order of the District.
Payment of the balance of the total bid must be made by the successful bidder
within twenty-four (24) hours after the award. In the event the successful bidder
fails to pay the balance of his bid, the bid security will be forfeited and the award will
be made to the next highest responsible bidder.
The successful bidder shall be responsible for all required permits, fees and
licenses. The property shall be removed from District premises in a time frame
established by the Purchasing and Facilities Manager.
3) By participation in a joint municipal/public agency public auction. Where authorized
by the General Manager, the District may dispose of surplus property through
participation in a joint municipal/public agency auction.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: October 1, 2014
SUBMITTED BY:
Geoffrey Stevens,
Chief Information Officer
PROJECT: Various DIV. NO. ALL
APPROVED BY:
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: FISCAL YEAR 2012 – 2014 YEAR-END STRATEGIC PLAN AND PERFORMANCE
MEASURES REPORT
GENERAL MANAGER'S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
See “Attachment A”.
PURPOSE:
To provide a final report on the District’s Strategic Performance Plan
for FY 2012-2014.
ANALYSIS:
The District has completed the FY 2012-2014 Strategic Plan. Results for
Performance Measures are mixed, but overall positive. For example,
Strategic Objectives, with 85% complete or on schedule are slightly below
the target of 90%, however, staff significantly exceeded the combined
target for Performance Measures with 88% on target versus the 75% goal.
In addition, 14 of 16 benchmarked items were on or above target.
Strategic Plan Objectives
Strategic Plan Objectives are designed to ensure that the District is
making the appropriate high-level changes necessary to move the agency
in the planned direction to meet new challenges and harness
opportunities. Objective results for FY 2014 were slightly below target
at 85% complete, ahead or on schedule. These results are marginally
lower than the previous year.
33/39 or 85% of Strategic Objectives Meet or Exceed
Expectations
Strategic Objectives Not On Schedule:
1.1.1.1 CAREY, A Enhance communications with customers using our new phone
system
3.1.2.16 STALKER, G Replace SCADA software system
3.1.2.25 STALKER, G Implement wireless radio and data network for field
operations
4.1.1.4 WILLIAMSON, K Negotiate a successor Memorandum of Understanding for
represented employees for 2014 and beyond, and related
compensations and benefits for unrepresented employees
3.1.1.8 KENNEDY, R Update Water Facilities Master Plan
3.1.1.2 KENNEDY, R Update the 2007 Integrated Water Resources Plan (IRP) to
acquire and/or additional potable and recycled water
supplies and enhanced resource reliability
Performance Measures
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”. Results for the fourth quarter Performance
Measures are well above target with 38 of 43 (88%) items achieving the
desired level or better.
38/43 or 88% of Performance Measures Are On or Above Target
Items Not On target
1.4.104 RAMIREZ,O Health & Safety Severity Rate (QualServe)
2.2.200 MARTIN,D CIP Project Expenditures vs. Budget
2.3.203 MARTIN,D Project Closeout Time
5.1.500 VACLAVEK,J Unplanned Disruptions (QualServe)
5.2.503 HOLLY,R Planned Recycled Water Maintenance Ratio in $
QualServe Benchmarking Perspective
The District participates in a benchmarking program sponsored by AWWA.
We utilize 16 measures designed by QualServe. The District is on target
for 14 of 16 measures or 88%. The two items not on target are Health &
Safety Severity Rate and Unplanned Disruptions.
Category 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 833.87 Yes
Sewer Ops O&M Cost per MG Processed of Wastewater (QualServe) 1925 1383.03 Yes
Sewer Ops Sewer Overflow Rate (QualServe) 0 0 Yes
Sewer Ops Planned Wastewater Maintenance Ratio in $ (QualServe) 77.00 84.71 Yes
Customer Relations Unplanned Disruptions (QualServe) .7 1.57 No
Customer Relations Technical Quality Complaint (QualServe) 9 5.19 Yes
Customer Relations Billing Accuracy (QualServe) 99.8 99.99 Yes
Customer Relations Planned Water Service Disruption Rate (QualServe) 2.5 2.4 Yes
Water Ops Distribution System Loss (QualServe) 5% 4.5 Yes
Water Ops Potable Water Compliance Rate (QualServe) 100% 100 Yes
Water Ops O&M Cost per Account (QualServe) 512 482 Yes
Water Ops Water Distribution System Integrity (QualServe) 4 15.82 Yes
Water Ops Planned Potable Water Maintenance Ratio in $ (QualServe) 66% 70.2 Yes
Business Ops Debt Coverage Ratio (QualServe) 148.6 1.97 Yes
Org Dev Health & Safety Severity Rate (QualServe) 30 36.63 No
The Strategic Plan results are presented to both the Administration and
Finance Committee and the Engineering and Operations Committee with a
specific focus on the most relevant information for each Committee (see
Attachment B).
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 Virtual Private Network (VPN).
Next Steps
The Board has adopted the FY 2015 – 2018 Strategic Plan along with the
FY 2016 Budget. Staff will report back to the Board on March 2016 on the
progress from quarters one and two of the 2015-2018 Strategic Plan.
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
Attachment B - Presentation
ATTACHMENT A
SUBJECT/PROJECT: FISCAL YEAR 2012 – 2014 YEAR-END STRATEGIC PLAN AND
PERFORMANCE MEASURES REPORT
COMMITTEE ACTION:
The Finance, Administration and Communications Committee and the
Engineering and Operations Committee met in September 2014 and
reviewed this item. Based upon this discussion the Committees
recommend that the Board receive the attached information.
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 2014 Year ‐End
Report
(Final Year of FY 2012 – 2014 Strategic Plan)
33/39 (85%) Objectives On Target
38/43 (88%) Measures On Target
Detailed Presentation of Performance Measures