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HomeMy WebLinkAbout02-14-12 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 February 14, 2012 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. REPORT ON DIRECTORS EXPENSES FOR THE 2ND QUARTER OF FISCAL YEAR 2012 (PRENDERGAST) [5 minutes] 4. APPROVE ENGAGEMENT LETTER FROM THE AUDITING FIRM OF WHITE NELSON DIEHL EVANS, LLP TO CONTRACT FOR AUDIT SERVICES FOR FISCAL YEAR 2012 (CUDLIP) [5 minutes] 5. REVIEW DRAFT QUESTIONNAIRES FOR THE CUSTOMER SATISFACTION AND AWARENESS AND CALL CENTER SURVEYS (BUELNA) [10 minutes] 6. APPROVE A THREE-YEAR AGREEMENT (ONE-YEAR WITH AN OPTION TO RENEW FOR TWO ADDITIONAL YEARS) WITH MARSTON+MARSTON, INC. FOR THE PUBLIC OUTREACH AND CREATIVE SERVICES FOR AN AMOUNT NOT-TO-EXCEED $200,000 FOR THE LIFE OF THE AGREEMENT. THE CONTRACT ALLOWS THE DISTRICT TO CONTINUE USING MARSTON+MARSTON, INC. UNTIL EITHER PARTY CHOOSES TO TERMINATE THE BUSINESS RELATIONSHIP (BUELNA) [5 minutes] 2 7. ADOPT ORDINANCE NO. 531 AMENDING SECTIONS 25, CONDITIONS FOR WATER SERVICE; 28, CONNECTION FEES AND CHARGES FOR POTABLE OR RECLAIMED WATER SERVICE; 38, SERVICE FOR FIRE PROTECTION SYSTEMS; OF THE DISTRICT’S CODE OF ORDINANCES TO INCLUDE MANDATED FIRE SERVICE STANDBY CAPACITY FOR SINGLE-FAMILY RESIDENCES (BELL) [5 minutes] 8. INFORMATIONAL REPORT ON CHANGES TO THE DISTRICT’S RECORDS RETENTION POLICY (STEVENS) [5 minutes] 9. INFORMATIONAL REPORT ON THE PROJECTED FISCAL YEAR 2012 COMPARATIVE BUDGET SUMMARY (BELL) [10 minutes] 10. DISCUSS DESIGNEE AUTHORIZED TO VOTE FOR THE OTAY WATER DISTRICT REPRESENTATIVES TO THE SAN DIEGO COUNTY WATER AUTHORITY WHEN BOTH OWD REPRESENTATIVES ARE ABSENT FROM A MEETING OF THE AUTHORITY (WATTON) [5 minutes] 11. ADJOURNMENT BOARD MEMBERS ATTENDING: Jaime Bonilla, Chair David Gonzalez 3 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 February 10, 2012 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time be- ing 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 February 10, 2012. ___________________________________ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 7, 2012 SUBMITTED BY: Sean Prendergast, Payroll/AP Supervisor PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Asst. GM Finance and Administration Mark Watton, General Manager SUBJECT: Director’s Expenses for the 2nd Quarter of Fiscal Year 2012 GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To inform the Board of the Director’s expenses for the 2nd quarter of Fiscal Year 2012. ANALYSIS: The Director’s expense information is being presented in order to comply with State law. (See Attachment B for Summary and C-H for Details.) FISCAL IMPACT: None. AGENDA ITEM 3 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-H Director’s Expenses Detail ATTACHMENT A SUBJECT/PROJECT: Director’s Expenses for the 2nd Quarter of Fiscal Year 2012 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. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 7, 2012 SUBMITTED BY: James Cudlip, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager, Finance and Administration Mark Watton, General Manager SUBJECT: Appointment of Auditor for Fiscal Year Ending June 30, 2012 GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to sign the engagement letters from the auditing firm of White Nelson Diehl Evans LLP, to contract for audit services for the 2012 Fiscal Year. COMMITTEE ACTION: Please see Attachment A. PURPOSE: The District is required to retain the services of an independent accounting firm to perform an audit of the District’s financial records each year. ANALYSIS: At the Board meeting on March 9, 2009, the Board approved Diehl, Evans & Company, LLP as the District’s auditors for a 1-year contract, with four (4) 1-year options, with each option year subject to Board review and approval. The Board subsequently approved contract options in March 2010, and February 2011, to perform the respective FY-2010 and FY-2011 audits. In October 2011, Diel, Evans & Company, LLP merged with the accounting firm White, Nelson & Co., and now operates under the name White Nelson Diehl Evans LLP. The AGENDA ITEM 4 2 firm has retained all of the audit staff that completed the District’s FY-2011 audit. Staff is recommending the appointment of White Nelson Diehl Evans LLP as the District’s auditors for FY-2012, in conjunction with the third 1-year contract option. This is based on their staff’s knowledge of the District’s operations and finances, their technical qualifications, and their performance as the District’s auditors during the FY-2009 through FY-2011 audits. Also, at the conclusion of these audits, the White Nelson Diehl Evans staff provided significant advice and review of staff’s draft Comprehensive Annual Financial Report (CAFR) prior to submission to the Government Finance Officers Association (GFOA) for award consideration. The following is a tentative planning schedule for the major activities involved in completing the FY-2012 financial audit:  Apr-2012: Pre-audit (3 – 4 days).  Aug-2012: Year-end audit (4 – 5 days).  Nov-2012: Board presentation of audited financials.  Dec-2012: Completed CAFR. The audit will consist of four major components: 1) Standard Audit Services, to provide an audit opinion on the District’s financial statements; 2) Review of the District’s Investment Policy procedures; 3) A State Controllers Report, required by the State of California; and 4) Assistance in preparation of the District’s CAFR. If necessary, due to receipt of sufficient federal grant funds, the firm will also complete a Single-Audit report as required by the Federal Government, at no additional cost to the District. FISCAL IMPACT: The fee for auditing services for the Fiscal Year ending June 30, 2012, will not exceed $34,000. This is an increase of $1,000 over last year’s fee, but is the first fee increase since the inception of the contract in 2009. STRATEGIC GOAL: The District ensures its continued financial health through long-term financial planning, formalized financial policies, enhanced budget controls, fair pricing, debt planning, and improved financial reporting. LEGAL IMPACT: Required by law. 3 Attachments: Attachment A – Committee Action Form Attachment B – White Nelson Diehl Evans LLP Audit Engagement Letter Attachment C – White Nelson Diehl Evans LLP State Controllers Report Engagement Letter Attachment D – White Nelson Diehl Evans LLP Agreed Upon Procedures Engagement Letter ATTACHMENT A SUBJECT/PROJECT: Appointment of Auditor for Fiscal Year Ending June 30, 2012 COMMITTEE ACTION: The Finance and Administration Committee supported staff’s recommendation to the Board to appoint Diehl, Evans & Company, LLP, as the District’s auditors for the fiscal year ending June 30, 2012. 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. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 7, 2012 SUBMITTED BY: Armando Buelna Communications Officer PROJECT: Various DIV. NO. ALL APPROVED BY: Joe Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Customer Surveys – Draft Survey Questionnaires GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors review the draft questionnaires to be used in the next Customer Satisfaction and Awareness and Call Center Surveys. COMMITTEE ACTION: PURPOSE: To provide the Board of Directors the opportunity to review the draft questionnaires to be used in the next Customer Satisfaction and Awareness and Call Center Surveys. ANALYSIS: Attached are draft questionnaires developed by Rea & Parker Research in conjunction with District staff for consideration by the Board of Directors for use in the Customer Satisfaction and Awareness (General) and Call Center surveys. In the General survey, customers residing within the District’s service area will be selected at random for a telephone survey. AGENDA ITEM 5 2 Respondents are asked a series of questions to ascertain their overall perception of service, rates, and District programs. The results are then analyzed and are representative of all Otay customers with a margin of error of +/- 5.7% at a 95% confidence level. With the results of this and baseline data from earlier surveys, the District is able to follow changes in customer attitudes and opinions. The opinions of Otay customers, where applicable, can also be compared and contrasted to those collected by the San Diego County Water Authority in their annual customer survey. In the Call Center survey, respondents will be selected at random from those customers who have contacted the District’s Customer Service Call Center within the last 6 months. Those individuals will be asked about specific Call Center interaction such as courtesy, knowledge, and helpfulness of Customer Service personnel. This survey of 300 customers will also yield a margin of error of +/- 5.7% at 95% confidence. To obtain a lower margin of error for the surveys, the survey size would have to increase. For instance, to obtain a margin of error of +/- 5% at 95% confidence, where n equals the number of people sampled, n would have to increase to 385, though n = 400 is more commonly used. The additional cost to reduce the margin of error to +/- 5% is $2,500 for each survey(or $2,750 for the more commonly used n = 400). To obtain a margin of error of +/-4% at 95% confidence, the survey size would increase further to n = 600, and cost an additional $6,500 more per survey. The ultimate goal of each survey is to improve customer service. FISCAL IMPACT: The cost of conducting the two surveys with a margin of error of +/- 5.7% at 95% confidence will total $28,500. Funding at this level is included in the General Manager’s adopted budget. Based on a review of the budget, the Communications Officer anticipates the budget is sufficient to support performing these two customer surveys. STRATEGIC GOAL: Deliver high quality services to meet customer needs, and increase confidence of the customer in the value the District provides. LEGAL IMPACT: None. 3 Attachments: Attachment A – Committee Action Attachment B – General Customer Survey Attachment C – Call Center Survey ATTACHMENT A SUBJECT/PROJECT: Customer Surveys – Draft Survey Questionnaires COMMITTEE ACTION: 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. Otay Water District Survey Rea & Parker Research C1 Otay Water District General Survey INT. Hello, my name is _______________. I'm calling on behalf of the Otay Water District. We're conducting a study about some issues having to do with your household water supply and we're interested in your opinions. [IF NEEDED:] Are you at least 18 years of age or older? [IF 18+ HOUSEHOLDER NOT AVAILABLE NOW, ASK FOR FIRST NAME AND MAKE CB ARRANGEMENTS] VER. [VERSION OF INTERVIEW:] 1 - VERSION A 2 - VERSION B* * = RESPONSE OPTIONS REVERSED ON VERSION B FOR ALL QUESTIONS INDICATED IC. Let me assure you that no names or addresses are associated with the telephone numbers, and all of your responses are completely anonymous. The questions take about ten minutes. To ensure that my work is done honestly and correctly, this call may be monitored. Do you have a few minutes right now? [IF ASKED ABOUT MONITORING:] My supervisor randomly listens to interviews to make sure we're reading the questions exactly as written and not influencing answers in any way. TOP. [ONLY IF ASKED FOR MORE INFORMATION ABOUT TOPIC OR WHO'S SPONSORING IT?:] This project is sponsored by the Otay Water District, and it's about some issues related to your household water supply. [IF SPONSOR INFORMATION GIVEN TO RESPONDENT, "TOPIC"=1] CUST. How long have you been a customer of the Otay Water District? [IF LESS THAN ONE YEAR, THANK AND CODE NQR-RES] _________ YEARS 0 -----------> "NQR-RES" 99 - DK/REF, BUT AT LEAST ONE YEAR SEX. [RECORD GENDER OF RESPONDENT:] 1 - MALE 2 - FEMALE -------------------------- QUALIFIED RESPONDENT: QUOTAS CHECKED; DATA SAVED ------------------------- LP. [IF INDICATED BY ACCENT:] Would you prefer that we speak in... 1 - English or 2 - Spanish? SATISFACTION Q1: How would you rate your overall satisfaction with the Otay Water District as your water service provider? 1---Excellent 2---Very Good ATTACHMENT B Otay Water District Survey Rea & Parker Research C2 3—Good 4---Fair 5—Poor 6---Very Poor 9 - DK/REF [DO NOT READ] Q1a. [IF Q1 = 5 or 6] Please explain why you feel this way? ________________________________________________________ Q2: Have you called the Otay Water District for service or other help during the past 6 months? 1 - YES 2 - NO – [GO TO Q3] 9 - DK/REF [DO NOT READ]– [GO TO Q3] Q2a—[IF Q2 = 1] How would you rate your overall level of satisfaction with the service you received when you called for service or help? 1---Excellent 2---Very Good 3—Good 4---Fair 5—Poor 6---Very Poor 9 - DK/REF [DO NOT READ] Q3. These next questions are related to the water supply in San Diego County. How confident are you in the ability of local water agencies to provide enough water to you? Would you say...* [REVERSE] 1 - very confident, 2 - somewhat confident, 3 - not very confident, 4 - not at all confident, 5 - or are you not sure? [INCLUDES DK/REF] Q4. How much trust do you have in the ability of the Otay Water District to provide clean, safe water to the district? Would you say...* [REVERSE] 1 – a great deal of trust, 2 – a good amount of trust, 3 – some trust, 4 -- not much trust, 5 – no trust at all? 9 -- not sure [INCLUDES DK/REF] Q4a. How much trust do you have in the Otay Water District to obtain this water for you at a reasonable price? Would you say…[REVERSE] 1 – a great deal of trust, 2 – a good amount of trust, 3 – some trust, Otay Water District Survey Rea & Parker Research C3 4 -- not much trust, 5 – no trust at all? 9 -- not sure [INCLUDES DK/REF] WATER SHORTAGE------------WATER RATES Q5a-c. I am going to mention six utilities that serve the needs of residents and businesses in the region. Considering only those utilities that you pay for, which would you say is the best value for the amount of money that you pay. Which ones are second and third? [ROTATE LIST] MOST (5a) SECOND (5b) THIRD (5c) a. Trash collection 1 1 1 b. Water 2 2 2 c. Sewer 3 3 3 d. Telephone 4 4 4 e. Cable or Satellite TV 5 5 5 f. Internet access 6 6 6 g. Gas & Electric 7 7 7 Q6. In the past year, do you believe that your water rates have... 1 - gone up, 2 - gone down, -----------> GO TO Q7 3 - stayed about the same, -----------> GO TO Q7 4 - or are you not sure? -----------> GO TO Q7 9 - DK/REF [DO NOT READ]-----------> GO TO Q7 Q6a [IF Q6 = 1]. What do you think has been the two biggest causes of your rates increasing? [DO NOT READ-------------CODE USING FOLLOWING SCHEMA:] 1 – INCREASED RELIANCE ON IMPORTED WATER 2 – WATER SHORTAGE DUE TO LESS RAIN IN SAN DIEGO THAN NORMAL 3 - POPULATION GROWTH 4 – COURT ORDERS REDUCING LOCAL WATER SUPPLY 5 – PRICE INCREASES FROM THE METROPOLITAN WATER DISTRICT 6—PRICE INCREASES FROM THE SAN DIEGO COUNTY WATER AUTHORITY 7—INCREASING OPERATIONAL COSTS AT OTAY WATER DISTRICT 8—OTAY WATER DISTRICT MANAGEMENT COSTS 9—LESS SNOW IN MOUNTAINS 10—LESS WATER IN COLORADO RIVER 20- OTHER _______________________ 99. DK/REF Otay Water District Survey Rea & Parker Research C4 Q6b. [IF Q6 = 1] Have higher water rates affected your level of satisfaction with the Otay Water District? 1 – Yes. Higher water rates have caused my overall satisfaction with the Otay Water District to decline. 2 - No. Higher water rates have not changed my overall satisfaction with the Otay Water District. Rising rates are not entirely within the District’s control. 9 - DK/REF [DO NOT READ] Q6c. [IF Q6=1] Have higher water rates motivated you to conserve more water? 1 – YES 2 - NO-----------> GO TO Q7 9 - DK/REF [DO NOT READ]-----------> GO TO Q7 Q6d. [IF Q6c=1] What specific major step has your household taken in the past year to reduce your water usage? ________________________________________99-DK/REF [DO NOT READ-------------CODE USING FOLLOWING SCHEMA:] 1 – OUTDOOR WATER LESS TIME 2 - IRRIGATE EARLIER IN THE MORNING OR LATER AT NIGHT 3—LET MY LANDSCAPE/LAWN DIE 4 - OUTDOOR WATERING FEWER DAYS DAY PER WEEK 5 - CHECK THE SOIL’S MOISTURE LEVEL BEFORE WATERING 6 - REPLACE UNUSED TURF WITH LOW-WATER PLANTS 7 - UPGRADE IRRIGATION SYSTEM TO INCLUDE NEW, HIGH- EFFICIENCY EQUIPMENT 8 – PURCHASE A HIGH EFFFICENCY CLOTHES WASHER 9 – WASH ONLY FULL LOADS OF CLOTHES OR DISHES 10 – TAKE SHORTER SHOWERS 11 – USE A BROOM INSTEAD OF A HOSE ON PAVED AREAS 12 – FIX INDOOR LEAKS (TOILET, FAUCET, ETC.) 13 – FIX OUTDOOR LEAKS (SPRINKLERS, SPAS, ETC.) 14-- DO NOT LET WATER RUN 15 – COLLECT AND REUSE 16 – REPLACE GRASS WITH ARTIFICIAL/SYNTHETIC TURF 20 – OTHER, SPECIFY___ ________________________________ OUTDOOR WATERING---ASK EVERYONE Q7. These next few questions deal with using water outdoors. Does your residence have any outdoor landscaping that someone in your household is directly responsible for maintaining? 1 - YES 2 - NO/APT/CONDO/NO YARD RESPONSIBILITIES ------------> GO TO Q8 Otay Water District Survey Rea & Parker Research C5 9 - DK/REF—DO NOT READ ------------> GO TO Q8 Q7a. Does your landscaping include a lawn? 1 - YES 2 - NO 9 - DK/REF [DO NOT READ] Q7b. Do you have an automatically-controlled sprinkler system for your landscaping? 1 - YES 2 - NO ------------> GO TO Q8 9 - DK/REF [DO NOT READ]------------> GO TO Q8 Q7c. [IF Q7b = 1] During the past 12 months, how often has anyone made adjustments to the automatic controller for your sprinkler system? 1 - NOT AT ALL 2 - 1 TO 3 TIMES 3 - 4 to 6 TIMES 4 –7 OR MORE TIMES 5 - USE WEATHER-BASED CONTROLLER 9 - DK/REF [DO NOT READ] DESALINATION Q8. These next questions are about desalination. Are you familiar with the term “desalination.” 1. YES 2. NO [include DK/REF] Q9. [IF Q8a = 1, then start with “As you may already know,”] Desalination is the process of making drinking water and water for other household and business uses from ocean water. Desalination is a process that forces water through a very fine filter that is designed to remove ocean salts and other impurities from the ocean water. Do you believe that desalination is important to maintaining a reliable supply of water in San Diego County? 1- Yes, very important 2- Yes, somewhat important 3- No, not very important 4- No, not at all important 9. DK/REF---[DO NOT READ—ONLY IF VOLUNTEERED] Q10. AN OCEAN WATER DESALINATION PLANT IS TENTATIVELY PLANNED FOR THE CITY OF ROSARITO BEACH IN MEXICO AND THE OTAY WATER DISTRICT HAS THE OPPORTUNITY TO PURCHASE SOME OF THAT WATER STARTING IN 2015 OR 2016. THIS PROJECT WOULD BE FINANCED AND OPERATED BY INTERNATIONAL COMPANIES WITH CONSIDERABLE EXPERIENCE IN OCEAN Otay Water District Survey Rea & Parker Research C6 WATER DESALINATION, WITH TIJUANA, ROSARITO BEACH, AND THE OTAY WATER DISTRICT BEING THE PLANT’S CUSTOMERS. Would you be in favor of pursuing such an agreement with these international companies to develop additional supplies of water from seawater desalination? 1. Yes—GO TO Q11 2. No 9 - DK/REF [DO NOT READ]—GO TO Q11 Q10a. [IF Q10 = 2] Why are you not in favor of this desalination agreement? __________________________________________________________ [USE FOLLOWING CODING BUT DO NOT READ—ENTER OTHER ANSWERS VERBATIM—99 = DK/REF] 1. Questionable water quality 2. It should be done in U.S—US needs the jobs. 3. Do not trust/want to deal with Mexico 4. High cost 5. Do not know enough yet—Need more information 6. Do not want to drink sea water 7. Want local control WATER RECYCLING Q11a-d. The use of recycled water is another way to increase the water supply. Would you favor or oppose the use of recycled water for the following types of uses... [CLARIFY:] Do you strongly or somewhat {favor/oppose} that? strgly smwt smwt strgly DK/ Do you favor or oppose using recycled water... favor favor oppose oppose REF—not read a) for watering landscaping along freeways open space, parks and golf courses? 1 2 3 4 9 b) for watering residential front yards? 1 2 3 4 9 c) for replenishing recreational lakes? 1 2 3 4 9 d) as an addition to the supply of drinking water 1 2 3 4 9 CONSERVATION GARDEN Q12. Have you ever seen or heard anything about the Water Conservation Garden at Cuyamaca College? 1 - YES Otay Water District Survey Rea & Parker Research C7 2 - NO------------> GO TO Q13 9 - DK/REF [DO NOT READ]------------> GO TO Q13 Q12a. [IF Q12 = 1] Have you or any member of your family ever visited the garden? 1 - YES 2 - NO ------------> GO TO Q13 9 - DK/REF [DO NOT READ]------------> GO TO Q13 Q12b. Have you made any changes to your watering or landscaping practices as a result of visiting the Garden? 1 – YES 2 – NO 9 - DK/REF [DO NOT READ] PUBLICATIONS Q13. Do you read the newsletter or bill inserts that come in the mail with your monthly water bill… 1 - every time, 2 - most times, 3 - sometimes, or 4 - never? 9 - DK/REF [DO NOT READ] SOCIAL MEDIA Q14a-e. Which, if any, of the following social media websites do you use? YES (1) NO (2) (incl. DK) a. Facebook b. Twitter c. LinkedIn d. My Space e. You Tube 14f-g. Are there any other Social Media websites that you use___________ [RECORD UP TO TWO RESPONSES]—ENTER 9 IF RESPONSE IS NO OR DK Q15a-e. Do you think that the Otay Water District can use these sites for your benefit to YES NO DK (do not read) a. notify you about scheduled construction or system repairs b. ask questions and receive comments about your satisfaction with services c. distribute emergency information d. discuss water industry news and new developments Otay Water District Survey Rea & Parker Research C8 e. communicate information about the District Q16. On a scale of 1-5, with 1 being very important and 5 being very unimportant, how important is it to you that the Otay Water District have a presence using social media? 1. Very important 2. Somewhat important 3 Neither Important nor important 4 Somewhat unimportant 5. Very Unimportant 9 - DK/REF [DO NOT READ] COMMUNICATION Q17. The Otay Water District sends information to its customers on a regular basis. How would feel about receiving information from the Otay Water District at your home e-mail address? 1 – I think that using my home e-mail is a good way for me to receive information from the Otay Water District. 2 – I do not want to receive information from the Otay Water District at my home e-mail. 9 - DK/REF [DO NOT READ] Q18. Have you ever visited the Otay Water District website? 1 - YES 2 – HAVE ACCESS TO INTERNET, BUT HAVE NOT VISITED WEBSITE -------- ---------------> GO TO Q19 3—DO NOT HAVE ACCESS TO THE INTERNET----------GO TO Q19 9 - DK/REF [DO NOT READ-----------------> GO TO Q19 Q18a. [IF Q18 = 1] How would you rate the website? Would you say... 1 - excellent, 2 - good, 3 - fair, or 4 - poor? 9 - DK/REF [DO NOT READ] BILL PAYMENT Q19. The Otay Water District has recently implemented a new bill design. It was first mailed to customers in September 2011. How satisfied are you with the ease of understanding this new water bill? 1 - very satisfied,--GO TO Q20 2 - somewhat satisfied, GO TO Q20 3—neither satisfied nor dissatisfied 4 - somewhat dissatisfied, 5 - very dissatisfied? 6 –OR are you not aware of the new bill design GO TO Q20 Otay Water District Survey Rea & Parker Research C9 9 - DK/REF [DO NOT READ] GO TO Q20 Q19a. How would you suggest improving the design of the water bill? 99 - DK/REF [DO NOT READ] Q20. How do you pay your water bill most months? 1—Send check by mail 2—Automatic bank deduction 3—Credit card over the telephone 4—In person at the Otay Water District office 5—In person at payment center 6—On-line (Internet) [GO TO Q21] Q20a. [IF Q20 NOT = 6] What can the District do to make paying on-line through the District’s Website a more appealing option for you? _______________________________________________________________ DK/REF = 99 [USE THE FOLLOWING CODES BUT DO NOT READ THEM. ENTER ALL OTHER ANSWERS ABOVE] 1. THERE IS NOTHING THAT WOULD MAKE ME PAY ONLINE 2. OFFER DISCOUNTS ON THE BILL Q21. No matter how you presently pay your bill, how would you prefer to pay your bill most of the time? 1—Send check by mail 2—Automatic bank deduction 3—Credit card over the telephone 4—In person at the Otay Water District office 5—In person at payment center 6—On-line (Internet) 9 - DK/REF [DO NOT READ Q22 Would you be interested in receiving your monthly bill from the Otay Water District by e- mail instead of through the Postal Service? 1 - YES 2 - NO 9 - DK/REF [DO NOT READ] Q23. How likely are you to choose to go paperless in your bill paying to the District and other regular monthly accounts within the next year or two? That is, you would receive your bill by e- mail and would make your payments in one of several ways (phone, online, automatic deduction) but not by check or cash. 1. Very likely—GO TO Q24 2. Somewhat likely—GO TO Q24 3. Somewhat unlikely 4. Very unlikely Otay Water District Survey Rea & Parker Research C10 9. DK/REF [DO NOT VOLUNTEER] —GO TO Q24 Q23a. [IF Q23 =3 or 4] What is your major objection to going paperless for bill paying? _______________________________________________ [USE FOLLOWING CODING BUT DO NOT READ—ENTER OTHER ANSWERS VERBATIM—99 = DK/REF] 1. Want paper record 2. Computers can fail 3. Trust/security 4. Do not use computers that often 5. I do not keep personal records on the computer 6. Used to paying by check 7. I will forget to check for the bill on the computer POWER OUTAGE Q24. On September 8, 2011, many households throughout Southern California experienced a massive power outage for several hours. During the power outage and for a couple of days afterword, were you concerned that the quality of your water was compromised and therefore was not usable without special treatment? 1 – Yes. I felt the quality of my water was possibly compromised. 2 - No. I was not concerned about the quality of my water. 9 - DK/REF [DO NOT READ Q25. During the power outage, were you concerned that there would be a disruption in the delivery of your water by the Otay Water District? 1 – Yes. I was concerned that a disruption might occur. 2 - No. I was not concerned that there would be a disruption in the delivery of my water. 9 - DK/REF [DO NOT READ Q26. How did you obtain information during the power outage? (select all that apply) 1 – battery operated or car radio 2 – wireless internet 3 – conversations by cell phone 4 – Twitter____________ 5-- Facebook 6 – e-mail 7 – text messages Otay Water District Survey Rea & Parker Research C11 15– other (specify) _________________ 20 – DK/REF—DO NOT READ Q27. If another power outage or similar mishap should occur, how would you most prefer to receive information about the situation? (select only one) 1 – battery operated or car radio 2 – wireless internet 3 – conversations by cell phone 4 – Twitter____________ 5-- Facebook 6 – e-mail 7 – text messages 15– other (specify) _________________ 20 – DK/REF—DO NOT READ ASK ALL: In closing, these questions are for comparison purposes only. PPH. How many persons, including yourself, live in your household? ___________ 99 - DK/REF TEN. Is your residence owned by someone in your household, or is it rented? 1 - OWN 2 - RENT/OTHER STATUS 9 - DK/REF [DO NOT READ EDU. What is the highest grade or year of school that you have completed and received credit for... 1 - high school or less, 2 - at least one year of college, trade or vocational school, 3 - graduated college with a bachelor's degree, or 4 - at least one year of graduate work beyond a bachelor's degree? 9 - DK/REF [DO NOT READ AGE. Please tell me when I mention the category that contains your age... 1 - 18 to 24, 2 - 25 to 34, 3 - 35 to 44, 4 - 45 to 54, 5 - 55 to 64, or 6 - 65 or over? 9 - DK/REF [DO NOT READ ETH. Which of the following best describes your ethnic or racial background... 1 - white, not of Hispanic origin; Otay Water District Survey Rea & Parker Research C12 2 - black, not of Hispanic origin; 3 - Hispanic or Latino; 4 - Asian or Pacific Islander; 5 - Native American; 6 – Middle Eastern 15 - another ethnic group? [SPECIFY:] __________________________________ 20 - DK/REF [DO NOT READ INC. Now, we don't want to know your exact income, but just roughly, could you tell me if your annual household income before taxes is... 1 - under $25,000, 2 - $25,000 up to but not including $50,000, 3 - $50,000 up to (but not including) $75,000, 4 - $75,000 up to (but not including) $100,000, 5 - $100,000 up to but not including $150,000? 6 -- $150,000 and over 9 - DK/REF [DO NOT READ LAN. [LANGUAGE OF INTERVIEW:] 1 - ENGLISH 2 - SPANISH Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 1 Otay Water District Survey Call Center Customer Service INT. Hello, my name is _______________. I'm calling on behalf of the Otay Water District. We are conducting a study about some issues having to do with the service you have received from the District. We are interested in your opinions. [IF NEEDED:] Are you at least 18 years of age or older? [IF 18+ HOUSEHOLDER NOT AVAILABLE NOW, ASK FOR FIRST NAME AND MAKE CB ARRANGEMENTS] VER. [VERSION OF INTERVIEW:] 1 - VERSION A 2 - VERSION B* * = RESPONSE OPTIONS REVERSED ON VERSION B FOR ALL QUESTIONS INDICATED IC. Let me assure you that no names or addresses are associated with the telephone numbers, and all of your responses are completely anonymous. The questions take about ten minutes. To ensure that my work is done honestly and correctly, this call may be monitored. Do you have a few minutes right now? [IF ASKED ABOUT MONITORING:] My supervisor randomly listens to interviews to make sure we're reading the questions exactly as written and not influencing answers in any way. TOP. [ONLY IF ASKED FOR MORE INFORMATION ABOUT TOPIC OR WHO'S SPONSORING IT?:] This project is sponsored by the Otay Water District, and it's about some issues related to improving customer service. [IF SPONSOR INFORMATION GIVEN TO RESPONDENT, "TOPIC"=1] SEX. [RECORD GENDER OF RESPONDENT:] 1 - MALE 2 - FEMALE LP. [IF INDICATED BY ACCENT:] Would you prefer that we speak in... 1 - English or 2 - Spanish? Q1. Have you or anyone in your household or business called the Otay Water District for service or other help during the past 6 months [EMPHASIZE 6 MONTHS]? 1 - YES 2 - NO –THANK AND TERMINATE INTERVIEW 9 - DK/REF –THANK AND TERMINATE INTERVIEW Q1a—Please indicate the type of customer you are ATTACHMENT C Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 2 1—Residential 2—Business 3—Irrigation 4—Other, SPECIFY ________________________________________ Q1b. [IF YES:] Was the main purpose of your last call… 1 - a repair issue, 2 - a billing issue, or ------------> GO TO Q2 3 - another issue? ---> GO TO Q2 9 - DK/REF—DO NOT READ ------------> GO TO Q3 Q1c. [IF REPAIR ISSUE:] What type of repair did you call about? Was it... 1 - a pipeline break, 2 - a problem with supply to your home, 3—a suspected leak 4 - another problem? [SPECIFY:]______________________ 9 - DK/REF—DO NOT READ Q1d. Did you make any other calls to customer service in the past 6 months that were not repair related? 1—YES 2—NO—GO TO Q3 9 - DK/REF—DO NOT READ –GO TO Q3 Q2. What was the reason for that customer service call? [DO NOT VOLUNTEER] 1—Did not understand bill—[IF Q1b = 1--GO TO Q3—IF Q1b=2 or 3, GO TO Q2a] 2 – Need Assistance with online account ——[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 3—Thought I was charged too much for the amount of water I used—— [IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 4—Thought I used less water than bill indicated/Meter misread——[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 5---Why different amount from same month last year——[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 6—Question about message box on bill——[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 7—Address change——[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 8---Start service——[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 9---Stop Service——[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 3 10—Reconnect Service after shutoff——[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 15—Other? SPECIFY_______________________ —[IF Q1b = 1--GO TO Q3— IF Q1b=2 or 3, GO TO Q2a] 20—DK/REF—DO NOT READ [Go to Q3] Q2a. [IF Q2 = 1-15] Did you make any other calls to customer service in the past 6 months? 1—YES 2—NO—GO TO Q3 9 - DK/REF—DO NOT READ –GO TO Q3 Q2b. What was the reason for that customer service call? [DO NOT VOLUNTEER] 1—Did not understand bill 2—Thought I was charged too much for the amount of water I used 3—Thought I used less water than bill indicated/Meter misread 4---Why different amount from same month last year 5—Question about message box on bill 6—Address change 7---Start service 8---Stop Service 9—Reconnect Service after shutoff 10-- a pipeline break, 11 - a problem with supply to your home 15—Other? SPECIFY_______________________ 20—DK/REF—DO NOT READ Q3. How satisfied or dissatisfied were you with the service you received as far as…. a. your ability to reach a service representative? Were you…* 1 - very satisfied, 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? 9 - DK/REF—DO NOT READ b. the courtesy of the service representative? Were you…* 1 - very satisfied, 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? 9 - DK/REF—DO NOT READ c. the knowledge and expertise of your service representative? Were you…* 1 - very satisfied, Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 4 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? 9 - DK/REF—DO NOT READ d. getting your problem resolved? Were you...* 1 - very satisfied, 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? 9 - DK/REF—DO NOT READ Q4. Overall, how would you rate the quality of service that you received? Would you say 1 - excellent, 2 - good, 3 - fair 4 –poor 9 - DK/REF—DO NOT READ Q5. With regard to the problem or question you called about in the first call you mentioned, how many calls did it take to get your issue resolved? _____________ Q5a. [IF Q5 >1—OTHERWISE, GO TO Q6] Was your question or problem ultimately resolved to your satisfaction? 1-YES 2-NO 9 - DK/REF—DO NOT READ Q6. The Otay Water District implemented a new telephone system in June 2011. Have you noticed that the system has changed? 1 – Yes 2 - No [GO TO Q7] 9 - DK/REF—DO NOT READ [GO TO Q7] Q6a. Would you say that this new system is …? [REVERSE] 1. Better than the previous system? 2. About the same as the previous system? 3. Worse than the previous system? Q7. The Otay Water District implemented a new telephone system in June 2011. The Otay Water District has an Interactive Voice Response feature in their telephone system. This feature provides the customer with account information, total amount due, and last payment received. Have you used this feature? 1—YES 2—NO-----------GO TO Q8 Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 5 9 - DK/REF—DO NOT READ-----------GO TO Q8 Q7a. [IF Q7= 1] Did you find this feature to be useful? 1—YES 2—NO 9 - DK/REF—DO NOT READ Q7b. When you last called the Otay Water District for customer service, were you able to resolve your question or problem using the automated system only? 1—YES 2—NO 9 - DK/REF—DO NOT READ Q7c. Are there any other features that you would like to have offered by the Interactive Voice Response system? 1—Yes 2—No ---[GO TO Q8] 9 - DK/REF—DO NOT READ---[GO TO Q8] Q7d. What is one such additional feature you would like to have offered by the automated system? 99= DK/REF Q7e. Please rate the following features of the new phone system on a scale of 1 to 5, where 1 = very effective and 5 = not at all effective. 1 2 3 4 5 Q7e-1. Menu of options Q7e-2 Clarity of instructions Q7e-3 Quality of voice providing instructions Q7e-4 Overall effectiveness of the telephone message in guiding you to the services that you needed 9 - DK/REF—DO NOT READ Q8. Did your call require a field visit to your property? 1-YES 2-NO -------------[GO TO Q14] 9 - DK/REF—DO NOT READ ------------------[GO TO Q12] Q9. [IF Q8 = 1] What did the field representative do? _________________________________________________________ [USE THE FOLLOWING CODES BUT DO NOT READ THEM. ENTER ALL OTHER ANSWERS ABOVE—DK/REF = 99] Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 6 1. Checked meter 2. Check/Fix leak 3. Reconnect/turn water on Q10. How satisfied were you with the field service outcome? Were you* 1 - very satisfied, 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? 9 - DK/REF Q11. How satisfied were you with the time required to come to your property to provide the field service? Were you* 1 - very satisfied, 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? 9 - DK/REF—DO NOT READ Q12. How satisfied were you with the amount of time the field service representative needed at your property? Were you* 1 - very satisfied, 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? 9 - DK/REF—DO NOT READ Q13. Please rate your overall satisfaction with the field service you received. 1 - excellent, 2 - good, 3 - fair, or 4 - poor? 9 - DK/REF—DO NOT READ Q14. How do you pay your water bill most months? 1—Send check by mail 2—Automatic bank deduction 3—Credit card over the telephone 4—In person at the Otay Water District office 5—In person at payment center 6—On-line (Internet) 9 - DK/REF—DO NOT READ Q15. No matter how you presently pay your bill, how would you prefer to pay your bill most of the time? 1—Send check by mail 2—Automatic bank deduction 3—Credit card over the telephone Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 7 4—In person at the Otay Water District office 5—In person at payment center 6—On-line (Internet) ---------GO TO Q16 9 - DK/REF—DO NOT READ Q15a. [IF Q15 NOT = 6] What can the District do to make paying online or make paperless billing a more appealing option for you? _______________________________________________________________ DK/REF = 99 [USE THE FOLLOWING CODES BUT DO NOT READ THEM. ENTER ALL OTHER ANSWERS ABOVE] 1. THERE IS NOTHING THAT WOULD MAKE ME PAY ONLINE 2. OFFER DISCOUNTS ON THE BILL [IF Q15a = 99, GO TO Q16] Q15b. [IF any answer given to Q15a] If the District were to do that, how much more likely would you be to pay on-line? Would you say.. 1. Very likely 2. Somewhat likely 3. Somewhat unlikely 4. Very unlikely 9. DK/REF [DO NOT VOLUNTEER] Q16. Would you be interested in receiving your monthly bill from the Otay Water District by e-mail instead of through the Postal Service? 1 - YES 2 - NO 9 - DK/REF—DO NOT READ Q17. How likely are you to choose to go paperless in your bill paying to the District and other regular monthly accounts within the next year or two? That is, you would receive your bill by e-mail and would make your payments in one of several ways (phone, online, automatic deduction) but not by check or cash. 1. Very likely—GO TO Q18 2. Somewhat likely—GO TO Q18 3. Somewhat unlikely 4. Very unlikely 5. DK/REF [DO NOT VOLUNTEER]—GO TO Q18 Q17a. [IF Q17 =3 or 4] What is your major objection to the District going paperless? 1. I do not trust that my banking data is secure 2. I do not use the Internet Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 8 3. I feel more in control of my money when I write the checks. 4. Easier for my own accounting/taxes 5. Other, ___________________________ 9. DK/REF [DO NOT VOLUNTEER] Q18. Regarding your monthly billing, how satisfied are you with the accuracy of your water bill? 1 - very satisfied, 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? 9 - DK/REF—DO NOT READ Q19. How confident are you in the accuracy of your monthly meter reading? 1 - very confident, 2 - somewhat confident, 3 – not too confident, or 4 – not at all confident? 9 - DK/REF—DO NOT READ Q20. The Otay Water District has recently implemented a new bill design. It was first mailed to customers in September 2011. How satisfied are you with the ease of understanding this new water bill? 1 - very satisfied, 2 - somewhat satisfied, 3—Neither satisfied nor dissatisfied 4 - somewhat dissatisfied, or 5 - very dissatisfied? 6 – I am not aware of the new bill design 9 - DK/REF—DO NOT READ Q20a. [IF Q20 NOT = 6 or 9] Do you think that the previous water bill design is easier to understand than the new bill design? 1 –Yes 2 --No 9 - DK/REF—DO NOT READ Q21. The Otay Water District sends postcards to remind their customers that their water bill has not been paid. How would you prefer to be contacted by the Otay Water District under these circumstances? (select one) 1 – the postcards are fine 2- e-mail 3 - text message 4 – telephone message 8 – other (please specify) ______________________ Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 9 9 –DK/REF—DO NOT READ Q22. In comparison to other companies that bill you monthly (for example. gas and electric, cable TV, trash collection, among others), how would you rate your overall customer experience with the Otay Water District on a scale of 1-5, where 1 means that the Otay Water District provides the best customer experience in comparison to these other companies and 5 means that the Otay Water District provides the worst experience. __________________ Q23. In the past 6 months, have you used the Otay Water District website to obtain information or other services from the Otay Water District? 1—YES 2—NO-----------GO TO CUST 9 - DK/REF—DO NOT READ-----------GO TO CUST Q23a. [IF Q23=1] How satisfied were you with the web service you received? Were you* 1 - very satisfied, 2 - somewhat satisfied, 3 - somewhat dissatisfied, or 4 - very dissatisfied? CUST. IN CLOSING, THESE NEXT QUESTIONS ARE FOR COMPARISON PURPOSES ONLY. How long have you been a customer of the Otay Water District? _____________YEARS PPH. How many persons, including yourself, live in your household? ___________ 99 - DK/REF TEN. Is your residence owned by someone in your household, or is it rented? 1 - OWN 2 - RENT/OTHER STATUS 9 - DK/REF—DO NOT READ EDU. What is the highest grade or year of school that you have completed and received credit for... 1 - high school or less, 2 - at least one year of college, trade or vocational school, 3 - graduated college with a bachelor's degree, or 4 - at least one year of graduate work beyond a bachelor's degree? 9 - DK/REF—DO NOT READ Otay Water District Survey DRAFT Call Center Customer Service Rea & Parker Research 10 AGE. Please tell me when I mention the category that contains your age... 1 - 18 to 24, 2 - 25 to 34, 3 - 35 to 44, 4 - 45 to 54, 5 - 55 to 64, or 6 - 65 or over? 9 - DK/REF—DO NOT READ ETH. Which of the following best describes your ethnic or racial background... 1 - white, not of Hispanic origin; 2 - black, not of Hispanic origin; 3 - Hispanic or Latino; 4 - Asian or Pacific Islander; 5 - Native American; 6 – Middle Eastern 15 - another ethnic group? [SPECIFY:] __________________________________ 20 - DK/REF—DO NOT READ INC. Now, we don't want to know your exact income, but just roughly, could you tell me if your annual household income before taxes is... 1 - under $25,000, 2 - $25,000 up to but not including $50,000, 3 - $50,000 up to (but not including) $75,000, 4 - $75,000 up to (but not including) $100,000, 5 - $100,000 up to (but not including) $150,000 6. $150,000 and over 9 - DK/REF—DO NOT READ LAN. [LANGUAGE OF INTERVIEW:] 1 - ENGLISH 2 - SPANISH STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 7, 2012 SUBMITTED BY: Armando Buelna, Communications Officer W.O./G.F. NO: DIV. NO. All APPROVED BY: Joe Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Approve the selection of Marston+Marston Inc. for Public Outreach and Creative Services. GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District’s Board of Directors authorize the General Manager to finalize negotiations and enter into a three- year agreement (one-year with an option to renew for two additional years) with Marston+Marston Inc. for Public Outreach and Creative Services for an amount not to exceed $200,000 for the life of the agreement. The contract allows the District to continue using Marston+Marston Inc. until either party chooses to terminate the business relationship. COMMITTEE ACTION: See Attachment A BACKGROUND In May, 2009, the Board approved the District's agreement with Marston+Marston Inc. for public and community relations services. Board Policy establishes procedures governing the selection of professional consultants in the performance of District work. The policy sets forth procedures for selecting consultants for contracts greater than $50,000. In compliance with Board Policy, staff developed a Request for Proposals for public relations and as-needed creative services. SELECTION PROCESS RFPs were sent to more than 20 local public relations firms on January 10, 2012, with a due date of January 27, 2012. This date was extended to February 2, 2012 to give as many firms as possible time to develop and submit proposals. Five RFPs were received and reviewed by staff. AGENDA ITEM 6 Proposals were received from: Cook+Schmid LLC Humanability Katz and Associates Marston+Marston Inc. Southwest Strategies LLC A three person panel jointly reviewed and rated the proposals. The proposals were rated based on: a. Conformance with the RFP b. Ability to Perform the Work c. Experience with Otay or Similar Water Agencies d. Knowledge/Technical Support Related to the Work e. Availability/Accessibility/Office Location f. Experience/Credentials of Person(s) Servicing the Account g. Approach to Work/Managing Account h. Cover Letter/Description of Services i. Other Services Vendor Would Recommend j. Cost k. Errors and Omissions Each item was reviewed and rated. Some items were given a greater weight based on the relevance to the District’s business needs. CONCLUSION Based on the overall evaluation and scoring, staff recommends continuing with Marston+Marston Inc. All of the firms responding are capable of providing the services requested. The following factors placed Marston+Marston Inc. ahead of the other firms: 1) Marston+Marston Inc. received the highest overall ranking. 2) Marston+Marston Inc. have had an excellent track record of service with the District. 3) There would be no delays or costs associated with a transition. 4) Set pricing for necessary services over the term of the agreement. ONGOING SERVICES Public outreach and creative services needed for developing District newsletters, bill inserts, the annual consumer confidence report, flyers, brochures, press releases, graphic design and translation services are all ongoing functions of the District. Staff is proposing a contract for these services to extend through June 30, 2014. This would assure the delivery of these services on an uninterrupted basis and affirm the District is receiving the best value for its dollar. FISCAL IMPACT: Due to the high level of public relations and outreach services needed in the first and second quarters of FY 2012, additional services were required that were not anticipated when the budget was developed and adopted. Public relations and graphic design was budgeted at $40,000 for FY 2012. Through the RFP process, Marston+Marston Inc. is recommended to continue providing these services to the District. Funding through the end of the fiscal year is projected to total $78,000. These funds are available through the District’s General Fund. The contract amounts for FY 2013 and 2014 will be incorporated into those budget processes. LEGAL IMPACT: None. Attachments: A - Committee Action Report B – RFP Evaluation Form ATTACHMENT A SUBJECT/PROJECT: Approve the selection of Marston+Marston Inc. for Public Outreach and Creative Services. COMMITTEE ACTION: 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. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 7, 2012 SUBMITTED BY: Rita Bell, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager, Finance and Administration Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 531 Amending Section 25, Conditions for Water Service; Section 28, Connection Fees and Charges for Potable or Reclaimed Water Service; and Section 38, Service for Fire Protection Systems of the District’s Code of Ordinances to include Mandated Fire Service Standby Capacity for Single-Family Residences GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 531 amending Sections 25, 28, and 38 of the District’s Code of Ordinances to include mandated fire service standby capacity for single-family residences. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board revisions to Sections 25, 28, and 38 of the Code of Ordinances to include upsizing residential meters for mandated fire service standby capacity. AGENDA ITEM 7 2 ANALYSIS: Background Over the past few years, more meters are being required to be upsized in order to provide for new fire service requirements. The standby capacity necessary to provide for this fire service is already built into the District’s facilities and does not have an impact on the capacity fee. Recent changes in fire code are now affecting more homes within the District. This staff report proposes to bring the District’s code up-to-date and formally accommodate the new fire code requirements without requiring additional capacity or system fees. In March of 2008, the San Diego County Water Authority (CWA) amended Ordinance No. 97-1 which imposes capacity charges on ultimate users of water. This change was to accommodate requirements of fire protection agencies that mandated the upsizing of residential meters for fire protection capacity purposes. It allows for the capacity charge to be established without the additional size necessary for standby capacity. In May 2009, a memorandum was sent from the District’s Engineering Department to the General Manager discussing the practice going forward based on the adoption of the change by CWA. It was determined that the meter charge would be for the larger meter, but that the capacity fees would be based solely on the necessary capacity without fire protection purposes. This staff report goes further to formally change the capacity fee policy by amending sections 28 and 38 of the Code of Ordinances. Additionally, to address the Chula Vista Fire Department change in policy on January 1, 2012, a change is being made to section 25 so that the monthly MWD & CWA and system charges will be based on capacity without fire protection purposes. Section 25: Conditions for Water Service Existing provisions in Section 25.03 B and C of the Code of Ordinances establishes the amount of the monthly fixed MWD & CWA charges and system charges based on meter size. The proposed change to the code addresses the new mandate imposed by fire protection agencies to require the upsizing of a residential meter for additional fire standby capacity. This change would establish the monthly charge based on the water use requirements for the property, not the upsized meter for the sole purpose of fire protection. 3 Section 28: Connection Fees and Charges for Potable or Reclaimed Water Service Existing provisions in Section 25.01 B of the Code of Ordinances establishes the basis for determination of connection fees and charges. The proposed change to the Code addresses the new mandate imposed by fire protection agencies to require the upsizing of a residential meter for additional fire standby capacity. This change would establish the connection fee based on the water use requirements for the property, not the upsized meter for the sole purpose of fire protection. Section 38: Service for Fire Protection Systems Currently, there is no provision in this code section that addresses the mandating of residential meter upsizing by fire protection agencies. The addition of Section 38.03, Fire Service Standby Capacity, would address the standby capacity for a fire sprinkler system based on water use requirements for the property, without consideration of additional size necessary to provide the standby capacity. FISCAL IMPACT: The capacity fees were set based on the required meter size without the additional standby capacity. Therefore, this has already been incorporated into the District’s financial planning, and will not affect the District’s financial standing. Likewise, the District’s rate modeling process projected system fees without additional fees for the upsized meters. STRATEGIC GOAL: None. LEGAL IMPACT: None. Attachments: A) Committee Action Form B) Ordinance No. 531 Exhibit 1 Strike-through Section 25 Exhibit 2 Strike-through Section 28 Exhibit 3 Strike-through Section 38 C) Proposed Section 25 D) Proposed Section 28 4 E) Proposed Section 38 ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 531 Amending Section 25, Conditions for Water Service; Section 28, Connection Fees and Charges for Potable or Reclaimed Water Service; and Section 38, Service for Fire Protection Systems of the District’s Code of Ordinances to include Mandated Fire Service Standby Capacity for Single-Family Residences COMMITTEE ACTION: The Finance, Administration, and Communications Committee recommends that the Board adopt Ordinance No. 531 amending Sections 25, 28, and 38 of the District’s Code of Ordinances to include mandated fire service standby capacity for single-family residences. 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 ORDINANCE NO. 531 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 25, CONDITIONS FOR WATER SERVICE; SECTION 28, CONNECTION FEES AND CHARGES FOR POTABLE OR RECLAIMED WATER SERVICE; AND SECTION 38, SERVICE FOR FIRE PROTECTION SYSTEMS OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances, Section 25, Conditions for Water Service; Section 28, Connections Fees and Charges for Potable or Reclaimed Water Service; and Section 38, Service for Fire Protection Systems be replaced as per Attachments C, D, and E respectively. NOW, THEREFORE, BE IT RESOLVED that the new proposed Sections 25, 28 and 38 of the Code of Ordinances shall become effective March 7, 2012. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 7th day of March, 2012, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Attachment B 2 ________________________________ President ATTEST: _____________________________ District Secretary 25-1 25 SECTION 25 CONDITIONS FOR WATER SERVICE 25.01 SERVICE AREA Water service shall be furnished by the District only to property within (annexed to) a water improvement district within the District’s service area. Water service to property located outside an improvement district may be furnished only upon prior approval of the Board of Directors. Temporary water service to property located outside an improvement district may be furnished, in accordance with Section 25.03 E.10., upon the approval of the General Manager. 25.02 DEFINITION OF "H.C.F." AND "UNIT OF WATER" As used in the Code the terms "H.C.F." and "unit of water" are interchangeable and each shall mean 100 cubic feet or 748 gallons of water. 25.03 DEFINITIONS OF WATER SERVICE CATAGORIES, WATER RATES, CHARGES AND FEES Water service furnished by the District shall be under the categories of services and at the rates, charges and fees as set forth in Appendix A, Section 25. Five-year Rate Increase Schedule - All District water rates, charges and fees are subject to a five-year schedule of rate increases beginning September 1, 2009 and periodically thereafter through June 30, 2014. The increases under this schedule shall be the amount sufficient to cover cost increases related to operations and maintenance, but not to exceed 10% per year. Five-year Periodic Pass–through Rate Increases or Decreases from District Wholesalers – All District water rates, charges and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning September 1, 2009 through June 30, 2014. A. Set-up Fees for Accounts. A set-up fee shall be charged for each account transferred to another customer. See Appendix A, 25.03 A. for charges. A deposit will be required of all customers who do not own the property to be served. See Appendix A, 25.04 A. for deposit amounts. B. Monthly Fixed MWD & CWA Charges. Each potable water service customer shall pay a monthly MWD and CWA fixed charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for operating and maintenance costs, including the following: MWD Readiness- to-Serve Charge and Capacity Reservation Charge; CWA Infrastructure Access Charge, Customer Service Charge, and Exhibit 1 25-2 Emergency Storage Charge. The MWD & CWA charge is based on the size of the water meter(s) in service with the exception of upsizing the meter for fire protection, as described in Section 38.03 of the Code. The MWD & CWA charge shall start upon installation of the meter. C. Monthly Fixed System Charges. Each water service customer shall pay a monthly fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for water system replacement, maintenance, and operation expenses. The system charge is based on the size of the water meter(s) in service. The system charge shall start upon installation of the meter D. Water Conservation Drought Pricing. To promote conservation, base tiered water rates for all water services are subject to percentage increases during drought stages, as shown in the table below: Drought Stage Pricing Stage 2 Stage 3 Stage 4 Tier 1* 0% 0% 0% Tier 2 Up to 5% Up to 10% Up to 15% Tier 3 Up to 30% Up to 60% Up to 90% *Domestic residential water service has four tiered base rates as outlined in Appendix A, 25.03 E.1.(b). Tier 1 of the above table applies to the first two tiered base rates. Tier 2 of the above table applies to the third tiered base rate. Tier 3 of the above table applies to the fourth tiered base rate. E. Categories of Water Service. The definitions and rates and charges for water service furnished by the District shall be as follows: 1. DOMESTIC RESIDENTIAL WATER (a) Defined as: Water service for single residential and individually metered attached households as well as other domestic uses (other than that provided for in Paragraph 2 below). (b) Base Rate: The tiered base rates of water furnished under this category shall be set forth in Appendix A, 25.03 E.1.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 25-3 2. MULTIPLE RESIDENTIAL WATER (a) Defined as: Master metered water service for multiple residential households, for example, duplexes, townhomes, apartments and mobile homes. (b) Base Rate: The tiered base rates of water furnished for each dwelling unit under each block of service in this category shall be as set forth in Appendix A, 25.03 E.2.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 3. BUSINESS AND PUBLICLY-OWNED WATER (a) Defined as: Potable water service for commercial, industrial and publicly-owned establishments. (b) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.3.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 4. IRRIGATION AND COMMERCIAL AGRICULTURAL USING POTABLE WATER (a) Irrigation is potable water service provided solely for irrigation of landscape or landscaping, as defined in Section 0.02. (b) Commercial agricultural engaged in the growing or raising of live stock, in conformity with recognized practices of husbandry, for the purpose of commerce, trade or industry, or for the use by public educational or correctional institutions or agricultural horticultural or floricultural products and produced, (i) for human consumption or for the market, or (ii) for the feeding of fowl or livestock produced for human consumption or for the market, or (iii) for feeding fowl or livestock for the purpose of obtaining their products for human consumption or for the market, such 25-4 products to be grown or raised on a parcel of land having an area of not less than one acre utilized exclusively therefore. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.4.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 5. RECYCLED WATER (a) Defined as: Non-potable and recycled water service provided for irrigation of landscaping, as defined in Section 0.02 A. of the Code, and certain non- irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.5.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C. 6. TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.6.(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under 25-5 this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system and MWD & CWA charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 7. WATER SERVICE UNDER SPECIAL AGREEMENTS (a) Defined as: Water service provided under express agreements approved by the Board of Directors for service to golf courses and other entities, which service may be curtailed or interrupted by the District under conditions provided in such agreements. (b) For water service under this category the base rate shall be determined on a case-by-case basis. Unless otherwise specified in the particular agreement, the tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 8. TANK TRUCKS (a) Defined as: Water service provided for the filling of tanks on motor vehicles transporting water used for other than earth grading purposes, which service shall be made only through a portable meter issued by the District to a customer specifically for use in accordance with the provisions herein for such service. (b) The rate for metered water furnished under this category is reflected in Appendix A, 25.03 E.8. (b), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (c) Requirements for Use of Water Meter (1) To receive such service, the customer must make a deposit for the use a water meter furnished by the District. The fee is set forth in Appendix A, 31.03 A.1. 25-6 (2) Upon termination of the service, the Dis- trict will refund the amount of deposit remaining after making the following deductions: (i) Cost of repairing or replacing the meter, fire hydrant and/or any fittings damaged or lost while in use; and (ii) Unpaid charges for water or other applicable charges. (3) Prior to the end of each six month period following issuance of a meter under this section, or at the request of the District, whichever is earlier, the customer shall return the meter to the District for inspection, repair, or calibration as deemed necessary by the District. (4) Payment for water service under this cate- gory shall be made as follows: (i) The bill shall be based on the amount of water actually used, which shall be determined by the District’s reading of the meter or by a report made by the customer to the District in the manner prescribed by the District. (ii) Where the actual amount of water used cannot be determined as provided in (i), the District will issue a bill based on a District estimate of the amount of water used, as determined by the District. Such estimates shall be reconciled with actual amounts used when the customer returns the meter to the District as provided in paragraph 3 above. (iii)Payments shall be made as specified on the bill. 9. WATER SERVICE OUTSIDE DISTRICT (a) Defined as: Water service for real property outside the service area of the District. (b) This service will be provided only upon prior approval of the General Manager when there is a surplus of water over and above the existing needs for service in the District. This service is temporary and may be terminated upon written notice from the District. Customers for this 25-7 service are sometimes referred to as "outside users." (c) Customers applying for this category of service shall pay an application fee as set forth in Appendix A, 25.03 E.9.(c). (d) The rate for metered water furnished under this category shall be charged the rate as described in Appendix A, 25.03 E.9.(d), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) Customers requesting only fire service or a fire hydrant under this category shall be charged a capacity fee based on one (1) EDU for a permanent meter in the improvement district from which the fire service derives its flow, plus a monthly system charge at the rate set forth in Appendix A, 25.03 E.11.(c). 10. WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT (a) Defined as: Water service for property located within the boundaries of the District, but not within a water improvement district. Customers for this service are sometimes referred to as "outside users." (b) Customers applying for this service shall pay an application fee as set forth in Appendix A, 25.03 E.10.(b). The District will review the application to determine whether the land to be served should be annexed to an improvement district. If it is determined that annexation is not practical, the Board of Directors may authorize service as an outside user. This service will be reviewed periodically until it is determined that the property must be annexed to an improvement district or that service must be terminated. (c) The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 E.10.(c), plus a monthly system charge as set forth in Appendix A, 25.03.C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 25-8 (d) Upon approval of the Board of Directors, a cus- tomer, who has paid all construction costs for facilities necessary to serve the customer's property in lieu of annexation to a water improvement district, shall be exempt from the provision for this category of service. 11. SERVICE FOR FIRE PROTECTION (a) Defined as: Water service provided by the Dis- trict solely to feed fire hydrants or fire sprinkler systems from lines or laterals con- nected to District water mains. (b) The District will not make a charge for the quantity of water used for fire protection purposes. (c) The monthly system charge for this category of service is set forth in Appendix A, 25.03 E.11.(c) for each connection to a District water main made for fire protection service. 12. WATER SERVICE TO PROPERTY NOT SUBJECT TO DISTRICT TAXES (a) Pursuant to Section 71613 of the California Water Code, the District may furnish water to property, not subject to District taxes, at special rates, terms and conditions as are determined by the Board of Directors for such service. Such rates, terms and conditions shall be uniformly applied to like classes and conditions of service in the same improvement district or geographical area. (b) Customers in this category, such as publicly- owned establishments, shall pay an additional fee as outlined in Appendix A, 25.03 E.12.(b). 13. INTERIM WATER SERVICE IN IMPROVEMENT DISTRICT 7 (a) Definition of Interim Service. This is water Service furnished to a customer in Improvement District 7 (ID 7) for temporary use. (b) Rates for Interim Service. Customers applying for interim service in ID 7 shall not be required to pay the ID 7 water capacity fee and San Diego County Water Authority fee, as required under Section 2801 of this Code. The water rate is set forth in Appendix A, 25.03 E.13.(b). (c) Conversion to Permanent Service. At such time as use expires, the customer shall be required to 25-9 pay all fees in effect at the time the permanent use is implemented. F. Energy Charges for Pumping Water In addition to water rates and other charges provided for in this Section 25.03, customers shall be charged an energy pumping charge based on the quantity of water used and the elevation to which the water has been lifted to provide service. The energy pumping charge shall be made at the rate set forth in Appendix A, 25.03 F. G. Additional Water Charge for Service in the North District 1. In addition to other applicable water rates and charges provided for in this Section 25.03, each customer receiving water service in the North District shall pay a charge as set forth in Appendix A, 25.03 G.1. The North District area is defined in Section 0.02 of this Code. 2. All proceeds from charges collected pursuant to this Section 25.03 G. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage reservoirs, pump stations and water lines to provide service in the North District. H. Additional Water Charges and Monthly System Charges for Service in the ID 9 Water Service Zone 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a charge set forth in Appendix A, 25.03 H.1. The ID 9 Water Service Zone area is defined in Section 0.02 of this Code. 2. In addition to the monthly system charges provided for, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a monthly meter system charge as outlined in Appendix A, 25.03 H.2. for each meter in service. 3. All proceeds from charges collected pursuant to this Section 25.03 H. shall be set aside by the District in a separate account and shall be used solely for pay- ment of costs and borrowing for construction, installation and maintenance of water storage reser- voirs, pump stations and water lines to provide ser- vice in the ID 9 Water Service Zone. 25-10 I. Additional Water Charges for Services in the ID 3, ID 10 and La Presa Water Service Zones. 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 17, 1993, each customer receiving water service in ID 3, ID 10 and La Presa Water Service Zones is assessed an additional charge per H.C.F. of water furnished by the District. Said surcharge is assessed as set forth in Appendix A, 25.03 I.1.(a),(b), and (c). 2. All proceeds from charges collected pursuant to this Section 25.03 I. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage, reservoirs, pump stations and water lines to provide service in the ID 3, ID 10 and La Presa Water Service Zones, respectively. 25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY A. AMOUNT OF DEPOSIT The customer's deposit shall be applied to reduce or satisfy any delinquent payment or other amount due the District at the time of termination of water service to the customer. Any portion of the deposit remaining, after satisfaction of the amount due, shall be refunded to the customer that made the deposit. The deposits listed above may be waived for a new resi- dential applicant where the applicant demonstrates credit worthiness based upon prior utility payments or a non- delinquent water account for one year or other similar evidence of credit. When an application for water service is made by a customer who does not own the land to be served, the customer shall be required to make a cash deposit to assure payment of the account. In lieu of a deposit, the customer may have payment of water service bills guaranteed in writing by the owner of the property. The amount of deposit, determined by the size of meter is outlined in Appendix A, 25.04 A. 25-11 B. REFUND OF DEPOSIT Where funds have been on deposit for twelve months in a domestic service account and there has been no more than one delinquent payment on that account during that period, the District will apply a credit to the water account in the amount of the deposit. C. LETTER OF CREDIT A letter of credit, in a form approved by the General Manager or Department Head of Finance, may be submitted to the District to satisfy the deposit requirements. 25.05 SERVICE TO SUBSEQUENT CUSTOMERS After a water meter has been installed for a customer and all fees and charges have been paid, water service may be furnished to a subsequent customer through the water meter installed without payment of further charges, except for the set-up fee for transferred accounts, payment of delinquent charges for the applicant's service or other deposits that may be required by this Code. 28-1 SECTION 28 CONNECTION FEES AND CHARGES FOR POTABLE OR RECLAIMED WATER SERVICE 28.01 COLLECTION OF FEES AND CHARGES A. Fees and Charges to be paid by the Customer. The following fees and charges shall be paid by the customer to connect to a District water system for potable water or reclaimed water service; these are in addition to the fees and charges in Section 9 and 25. Fees and charges shall include, but not be limited to, District fees, San Diego County Water Authority fees, applicable zone charge and charges for work performed by District personnel on behalf of the customer. These charges may include the installation by District personnel of a water service lateral, and inspections required due to the requirement of a back flow device. These charges may also include a meter fee, installation fee (where laterals exist), lateral fee, meter box fee, and excavation permit fee. B. Basis for Determination of Connection Fees and Charges. The fees and charges shall be determined as follows: For permanent water meters, including potable or recycled irrigation service, the total water connection fee shall be determined on the basis of the demand to be placed on the District water system. The extent of demand will be determined on the basis of the size of the water meter, as set forth in Section 27 of the Code. For fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The water connection fee will be determined by multiplying the demand factor for the meter size, as set forth below, by the total of the District-wide capacity fee and applicable zone charge. Meter Size Demand Factor 3/4" 1 1 2-1/2 1-1/2" 5 2" 8 3" 16 4" 25 6" 50 8" 80 10" 115 Exhibit 2 28-2 1. The District-wide capacity fee and the applicable zone charge shall constitute the "base rate." For fees or charges after July 1, 2010, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 9777.19(as of July 1, 2009) shall be deemed the "base index." The adjustment shall be in an amount equal to the percent- age change in the ENR Construction Cost Index from the base index for the period from June 10, 2009 to the date of payment. (See Appendix A, 28.01 B.1. for fees.) 2. The District-wide new water supply fee shall constitute the “base rate.” For fees or charges after July 1, 2010, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 9777.19 (as of July 1, 2009) shall be deemed the “base index.” The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 10, 2009 to the date of payment. (See Appendix A, 28.01 B.2. for fees.) 28.02 INSTALLATION CHARGES FOR WATER METER AND WATER SERVICE LATERALS The determination of the water meter or service lateral size shall be based upon the information provided by the customer as detailed in Section 27 of the Code. The installation charges are set forth in Appendix A, 28.02. Where a water meter larger than 2-inch or a new water lateral is required, a customized, written estimate of the District's costs will be prepared. The customer shall deposit the estimated costs with the District prior to commencement of the work. If actual costs incurred by the District are less than the amount deposited, the District shall refund the excess to the customer. If the actual costs incurred exceed the amount deposited, the customer shall reimburse the District for the additional costs. 28-3 28.03 METER FEE REFUND A. If a water meter/service has been paid for but not installed, a customer may receive a refund of the District’s capacity fee and charges. If San Diego County Water Authority capacity fees have been paid to San Diego County Water Authority, the customer shall request a refund from San Diego County Water Authority. B. If the customer wants to change the meter/service size, they will be credited with the number of equivalent dwelling units they have previously purchased and will be refunded any balance per Section 28.03 A, above. If additional equivalent dwelling units are required, the customer will be charged based on 28.01 and 28.02. 38-1 SECTION 38 SERVICE FOR FIRE PROTECTION SYSTEMS 38.01 SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES The District will provide water service for fire pro- tection systems for commercial or industrial developments within the District. Such service shall be available only in accordance with the rules and regulations provided in this Code. 38.02 RULES AND REGULATIONS FOR FIRE HYDRANT AND/OR FIRE SPRINKLER SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES ON PRIVATE PROPERTY A. All fire hydrant and/or fire sprinkler service mains installed for commercial or industrial pur- poses on privately-owned land shall be owned and maintained by the land owner; except for fire hydrants installed for developments where the District has accepted an easement for such service mains. B. Where service is provided for fire hydrant or fire sprinkler service on privately-owned land under Paragraph A above, the service shall be provided by the District at the property line of the land to be served. The property owner or developer shall be responsible to construct and maintain the remainder of the facilities to pro- vide fire protection to the property. Each such facilities installation shall include a reduced pressure principle assembly backflow device installed in accordance with District specifica- tions on the fire main on the customer side of the property line. C. Water furnished for fire hydrant or fire sprin- kler service shall be used only for fire protec- tion purposes. Water service for domestic, busi- ness, commercial or irrigation purposes shall be furnished only after a meter or meters have been installed on laterals connected to the District main in the street pursuant to requirements of this Code. D. Upon application for installation of one or more fire service connections to an existing District water main, the customer shall pay such charges as shall be determined on the basis of actual costs incurred by the District in performing the 38-2 work. At the time of application for the instal- lation, the District will estimate the total costs to be incurred in performing the work. The customer shall deposit the estimated amount with the District prior to commencement of the work. The work shall be performed by the District under a District Water/Sewer Order. If actual costs incurred by the District are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If the costs incurred exceed the amount deposited, the cus- tomer shall reimburse the District for the addi- tional costs. Where the fire service connection is to be made to a water main to be constructed in a street by the owner or developer, the costs for such connection shall be covered under the standard developer's agreement with the District for installation of the water facilities for the development project. E. Water for fire protection services shall be pro- vided in accordance with District fees and charges set forth in Section 25.03.D of this Code. F. The District shall have no responsibility for the proper function of the fire service system nor for the availability of water from its mains for fire protection in the event of emergency. While the District undertakes at all times to have ade- quate supplies available in its system for ordi- nary uses, it is not a guarantor of continual service in quantities adequate for all purposes however, and each customer shall specifically agree that as a condition of the fire service connection contracted for that the District shall incur no liability nor be subject to any damages resulting from a failure or malfunctioning of the fire sprinkler lateral or fire sprinkler system or from a lack of water in adequate quantity or pressure to make it fully effective. 38.03 SERVICES FOR RESIDENTIAL FIRE PROTECTION When a residential water meter is required to provide standby capacity for a fire sprinkler system, the capacity charge may be determined according to the size of the meter necessary to meet the water use requirements for the property. This is determined according to the rules of the member agency providing 38-3 the meter, without consideration of additional size necessary to provide the standby capacity. Standby capacity to provide water for a fire sprinkler system is required when (1) the fire sprinkler system is required by law, including any requirement imposed as a condition of development, permit, or occupancy, and (2) the fire chief, fire marshal, or building official of the city, county, or special district responsible for fire protection service to the property has a requirement for additional meter size due to fire protection. The determination, under this section, shall be made at the time the meter is first obtained, or at the time a meter is replaced with one of greater size due to the later installation of a fire protection system. 25-1 25 SECTION 25 CONDITIONS FOR WATER SERVICE 25.01 SERVICE AREA Water service shall be furnished by the District only to property within (annexed to) a water improvement district within the District’s service area. Water service to property located outside an improvement district may be furnished only upon prior approval of the Board of Directors. Temporary water service to property located outside an improvement district may be furnished, in accordance with Section 25.03 E.10., upon the approval of the General Manager. 25.02 DEFINITION OF "H.C.F." AND "UNIT OF WATER" As used in the Code the terms "H.C.F." and "unit of water" are interchangeable and each shall mean 100 cubic feet or 748 gallons of water. 25.03 DEFINITIONS OF WATER SERVICE CATAGORIES, WATER RATES, CHARGES AND FEES Water service furnished by the District shall be under the categories of services and at the rates, charges and fees as set forth in Appendix A, Section 25. Five-year Rate Increase Schedule - All District water rates, charges and fees are subject to a five-year schedule of rate increases beginning September 1, 2009 and periodically thereafter through June 30, 2014. The increases under this schedule shall be the amount sufficient to cover cost increases related to operations and maintenance, but not to exceed 10% per year. Five-year Periodic Pass–through Rate Increases or Decreases from District Wholesalers – All District water rates, charges and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning September 1, 2009 through June 30, 2014. A. Set-up Fees for Accounts. A set-up fee shall be charged for each account transferred to another customer. See Appendix A, 25.03 A. for charges. A deposit will be required of all customers who do not own the property to be served. See Appendix A, 25.04 A. for deposit amounts. B. Monthly Fixed MWD & CWA Charges. Each potable water service customer shall pay a monthly MWD and CWA fixed charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for operating and maintenance costs, including the following: MWD Readiness- to-Serve Charge and Capacity Reservation Charge; CWA Infrastructure Access Charge, Customer Service Charge, and Attachment C 25-2 Emergency Storage Charge. The MWD & CWA charge is based on the size of the water meter(s) in service with the exception of upsizing the meter for fire protection, as described in Section 38.03 of the Code. The MWD & CWA charge shall start upon installation of the meter. C. Monthly Fixed System Charges. Each water service customer shall pay a monthly fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for water system replacement, maintenance, and operation expenses. The system charge is based on the size of the water meter(s) in service. The system charge shall start upon installation of the meter D. Water Conservation Drought Pricing. To promote conservation, base tiered water rates for all water services are subject to percentage increases during drought stages, as shown in the table below: Drought Stage Pricing Stage 2 Stage 3 Stage 4 Tier 1* 0% 0% 0% Tier 2 Up to 5% Up to 10% Up to 15% Tier 3 Up to 30% Up to 60% Up to 90% *Domestic residential water service has four tiered base rates as outlined in Appendix A, 25.03 E.1.(b). Tier 1 of the above table applies to the first two tiered base rates. Tier 2 of the above table applies to the third tiered base rate. Tier 3 of the above table applies to the fourth tiered base rate. E. Categories of Water Service. The definitions and rates and charges for water service furnished by the District shall be as follows: 1. DOMESTIC RESIDENTIAL WATER (a) Defined as: Water service for single residential and individually metered attached households as well as other domestic uses (other than that provided for in Paragraph 2 below). (b) Base Rate: The tiered base rates of water furnished under this category shall be set forth in Appendix A, 25.03 E.1.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 25-3 2. MULTIPLE RESIDENTIAL WATER (a) Defined as: Master metered water service for multiple residential households, for example, duplexes, townhomes, apartments and mobile homes. (b) Base Rate: The tiered base rates of water furnished for each dwelling unit under each block of service in this category shall be as set forth in Appendix A, 25.03 E.2.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 3. BUSINESS AND PUBLICLY-OWNED WATER (a) Defined as: Potable water service for commercial, industrial and publicly-owned establishments. (b) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.3.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 4. IRRIGATION AND COMMERCIAL AGRICULTURAL USING POTABLE WATER (a) Irrigation is potable water service provided solely for irrigation of landscape or landscaping, as defined in Section 0.02. (b) Commercial agricultural engaged in the growing or raising of live stock, in conformity with recognized practices of husbandry, for the purpose of commerce, trade or industry, or for the use by public educational or correctional institutions or agricultural horticultural or floricultural products and produced, (i) for human consumption or for the market, or (ii) for the feeding of fowl or livestock produced for human consumption or for the market, or (iii) for feeding fowl or livestock for the purpose of obtaining their products for human consumption or for the market, such 25-4 products to be grown or raised on a parcel of land having an area of not less than one acre utilized exclusively therefore. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.4.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 5. RECYCLED WATER (a) Defined as: Non-potable and recycled water service provided for irrigation of landscaping, as defined in Section 0.02 A. of the Code, and certain non- irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.5.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C. 6. TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.6.(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under 25-5 this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system and MWD & CWA charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 7. WATER SERVICE UNDER SPECIAL AGREEMENTS (a) Defined as: Water service provided under express agreements approved by the Board of Directors for service to golf courses and other entities, which service may be curtailed or interrupted by the District under conditions provided in such agreements. (b) For water service under this category the base rate shall be determined on a case-by-case basis. Unless otherwise specified in the particular agreement, the tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 8. TANK TRUCKS (a) Defined as: Water service provided for the filling of tanks on motor vehicles transporting water used for other than earth grading purposes, which service shall be made only through a portable meter issued by the District to a customer specifically for use in accordance with the provisions herein for such service. (b) The rate for metered water furnished under this category is reflected in Appendix A, 25.03 E.8. (b), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (c) Requirements for Use of Water Meter (1) To receive such service, the customer must make a deposit for the use a water meter furnished by the District. The fee is set forth in Appendix A, 31.03 A.1. 25-6 (2) Upon termination of the service, the Dis- trict will refund the amount of deposit remaining after making the following deductions: (i) Cost of repairing or replacing the meter, fire hydrant and/or any fittings damaged or lost while in use; and (ii) Unpaid charges for water or other applicable charges. (3) Prior to the end of each six month period following issuance of a meter under this section, or at the request of the District, whichever is earlier, the customer shall return the meter to the District for inspection, repair, or calibration as deemed necessary by the District. (4) Payment for water service under this cate- gory shall be made as follows: (i) The bill shall be based on the amount of water actually used, which shall be determined by the District’s reading of the meter or by a report made by the customer to the District in the manner prescribed by the District. (ii) Where the actual amount of water used cannot be determined as provided in (i), the District will issue a bill based on a District estimate of the amount of water used, as determined by the District. Such estimates shall be reconciled with actual amounts used when the customer returns the meter to the District as provided in paragraph 3 above. (iii)Payments shall be made as specified on the bill. 9. WATER SERVICE OUTSIDE DISTRICT (a) Defined as: Water service for real property outside the service area of the District. (b) This service will be provided only upon prior approval of the General Manager when there is a surplus of water over and above the existing needs for service in the District. This service is temporary and may be terminated upon written notice from the District. Customers for this 25-7 service are sometimes referred to as "outside users." (c) Customers applying for this category of service shall pay an application fee as set forth in Appendix A, 25.03 E.9.(c). (d) The rate for metered water furnished under this category shall be charged the rate as described in Appendix A, 25.03 E.9.(d), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) Customers requesting only fire service or a fire hydrant under this category shall be charged a capacity fee based on one (1) EDU for a permanent meter in the improvement district from which the fire service derives its flow, plus a monthly system charge at the rate set forth in Appendix A, 25.03 E.11.(c). 10. WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT (a) Defined as: Water service for property located within the boundaries of the District, but not within a water improvement district. Customers for this service are sometimes referred to as "outside users." (b) Customers applying for this service shall pay an application fee as set forth in Appendix A, 25.03 E.10.(b). The District will review the application to determine whether the land to be served should be annexed to an improvement district. If it is determined that annexation is not practical, the Board of Directors may authorize service as an outside user. This service will be reviewed periodically until it is determined that the property must be annexed to an improvement district or that service must be terminated. (c) The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 E.10.(c), plus a monthly system charge as set forth in Appendix A, 25.03.C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 25-8 (d) Upon approval of the Board of Directors, a cus- tomer, who has paid all construction costs for facilities necessary to serve the customer's property in lieu of annexation to a water improvement district, shall be exempt from the provision for this category of service. 11. SERVICE FOR FIRE PROTECTION (a) Defined as: Water service provided by the Dis- trict solely to feed fire hydrants or fire sprinkler systems from lines or laterals con- nected to District water mains. (b) The District will not make a charge for the quantity of water used for fire protection purposes. (c) The monthly system charge for this category of service is set forth in Appendix A, 25.03 E.11.(c) for each connection to a District water main made for fire protection service. 12. WATER SERVICE TO PROPERTY NOT SUBJECT TO DISTRICT TAXES (a) Pursuant to Section 71613 of the California Water Code, the District may furnish water to property, not subject to District taxes, at special rates, terms and conditions as are determined by the Board of Directors for such service. Such rates, terms and conditions shall be uniformly applied to like classes and conditions of service in the same improvement district or geographical area. (b) Customers in this category, such as publicly- owned establishments, shall pay an additional fee as outlined in Appendix A, 25.03 E.12.(b). 13. INTERIM WATER SERVICE IN IMPROVEMENT DISTRICT 7 (a) Definition of Interim Service. This is water Service furnished to a customer in Improvement District 7 (ID 7) for temporary use. (b) Rates for Interim Service. Customers applying for interim service in ID 7 shall not be required to pay the ID 7 water capacity fee and San Diego County Water Authority fee, as required under Section 2801 of this Code. The water rate is set forth in Appendix A, 25.03 E.13.(b). (c) Conversion to Permanent Service. At such time as use expires, the customer shall be required to 25-9 pay all fees in effect at the time the permanent use is implemented. F. Energy Charges for Pumping Water In addition to water rates and other charges provided for in this Section 25.03, customers shall be charged an energy pumping charge based on the quantity of water used and the elevation to which the water has been lifted to provide service. The energy pumping charge shall be made at the rate set forth in Appendix A, 25.03 F. G. Additional Water Charge for Service in the North District 1. In addition to other applicable water rates and charges provided for in this Section 25.03, each customer receiving water service in the North District shall pay a charge as set forth in Appendix A, 25.03 G.1. The North District area is defined in Section 0.02 of this Code. 2. All proceeds from charges collected pursuant to this Section 25.03 G. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage reservoirs, pump stations and water lines to provide service in the North District. H. Additional Water Charges and Monthly System Charges for Service in the ID 9 Water Service Zone 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a charge set forth in Appendix A, 25.03 H.1. The ID 9 Water Service Zone area is defined in Section 0.02 of this Code. 2. In addition to the monthly system charges provided for, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a monthly meter system charge as outlined in Appendix A, 25.03 H.2. for each meter in service. 3. All proceeds from charges collected pursuant to this Section 25.03 H. shall be set aside by the District in a separate account and shall be used solely for pay- ment of costs and borrowing for construction, installation and maintenance of water storage reser- voirs, pump stations and water lines to provide ser- vice in the ID 9 Water Service Zone. 25-10 I. Additional Water Charges for Services in the ID 3, ID 10 and La Presa Water Service Zones. 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 17, 1993, each customer receiving water service in ID 3, ID 10 and La Presa Water Service Zones is assessed an additional charge per H.C.F. of water furnished by the District. Said surcharge is assessed as set forth in Appendix A, 25.03 I.1.(a),(b), and (c). 2. All proceeds from charges collected pursuant to this Section 25.03 I. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage, reservoirs, pump stations and water lines to provide service in the ID 3, ID 10 and La Presa Water Service Zones, respectively. 25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY A. AMOUNT OF DEPOSIT The customer's deposit shall be applied to reduce or satisfy any delinquent payment or other amount due the District at the time of termination of water service to the customer. Any portion of the deposit remaining, after satisfaction of the amount due, shall be refunded to the customer that made the deposit. The deposits listed above may be waived for a new resi- dential applicant where the applicant demonstrates credit worthiness based upon prior utility payments or a non- delinquent water account for one year or other similar evidence of credit. When an application for water service is made by a customer who does not own the land to be served, the customer shall be required to make a cash deposit to assure payment of the account. In lieu of a deposit, the customer may have payment of water service bills guaranteed in writing by the owner of the property. The amount of deposit, determined by the size of meter is outlined in Appendix A, 25.04 A. 25-11 B. REFUND OF DEPOSIT Where funds have been on deposit for twelve months in a domestic service account and there has been no more than one delinquent payment on that account during that period, the District will apply a credit to the water account in the amount of the deposit. C. LETTER OF CREDIT A letter of credit, in a form approved by the General Manager or Department Head of Finance, may be submitted to the District to satisfy the deposit requirements. 25.05 SERVICE TO SUBSEQUENT CUSTOMERS After a water meter has been installed for a customer and all fees and charges have been paid, water service may be furnished to a subsequent customer through the water meter installed without payment of further charges, except for the set-up fee for transferred accounts, payment of delinquent charges for the applicant's service or other deposits that may be required by this Code. 28-1 SECTION 28 CONNECTION FEES AND CHARGES FOR POTABLE OR RECLAIMED WATER SERVICE 28.01 COLLECTION OF FEES AND CHARGES A. Fees and Charges to be paid by the Customer. The following fees and charges shall be paid by the customer to connect to a District water system for potable water or reclaimed water service; these are in addition to the fees and charges in Section 9 and 25. Fees and charges shall include, but not be limited to, District fees, San Diego County Water Authority fees, applicable zone charge and charges for work performed by District personnel on behalf of the customer. These charges may include the installation by District personnel of a water service lateral, and inspections required due to the requirement of a back flow device. These charges may also include a meter fee, installation fee (where laterals exist), lateral fee, meter box fee, and excavation permit fee. B. Basis for Determination of Connection Fees and Charges. The fees and charges shall be determined as follows: For permanent water meters, including potable or recycled irrigation service, the total water connection fee shall be determined on the basis of the demand to be placed on the District water system. The extent of demand will be determined on the basis of the size of the water meter, as set forth in Section 27 of the Code. For fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The water connection fee will be determined by multiplying the demand factor for the meter size, as set forth below, by the total of the District-wide capacity fee and applicable zone charge. Meter Size Demand Factor 3/4" 1 1 2-1/2 1-1/2" 5 2" 8 3" 16 4" 25 6" 50 8" 80 10" 115 Attachment D 28-2 1. The District-wide capacity fee and the applicable zone charge shall constitute the "base rate." For fees or charges after July 1, 2010, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 9777.19(as of July 1, 2009) shall be deemed the "base index." The adjustment shall be in an amount equal to the percent- age change in the ENR Construction Cost Index from the base index for the period from June 10, 2009 to the date of payment. (See Appendix A, 28.01 B.1. for fees.) 2. The District-wide new water supply fee shall constitute the “base rate.” For fees or charges after July 1, 2010, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 9777.19 (as of July 1, 2009) shall be deemed the “base index.” The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 10, 2009 to the date of payment. (See Appendix A, 28.01 B.2. for fees.) 28.02 INSTALLATION CHARGES FOR WATER METER AND WATER SERVICE LATERALS The determination of the water meter or service lateral size shall be based upon the information provided by the customer as detailed in Section 27 of the Code. The installation charges are set forth in Appendix A, 28.02. Where a water meter larger than 2-inch or a new water lateral is required, a customized, written estimate of the District's costs will be prepared. The customer shall deposit the estimated costs with the District prior to commencement of the work. If actual costs incurred by the District are less than the amount deposited, the District shall refund the excess to the customer. If the actual costs incurred exceed the amount deposited, the customer shall reimburse the District for the additional costs. 28-3 28.03 METER FEE REFUND A. If a water meter/service has been paid for but not installed, a customer may receive a refund of the District’s capacity fee and charges. If San Diego County Water Authority capacity fees have been paid to San Diego County Water Authority, the customer shall request a refund from San Diego County Water Authority. B. If the customer wants to change the meter/service size, they will be credited with the number of equivalent dwelling units they have previously purchased and will be refunded any balance per Section 28.03 A, above. If additional equivalent dwelling units are required, the customer will be charged based on 28.01 and 28.02. 38-1 SECTION 38 SERVICE FOR FIRE PROTECTION SYSTEMS 38.01 SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES The District will provide water service for fire pro- tection systems for commercial or industrial developments within the District. Such service shall be available only in accordance with the rules and regulations provided in this Code. 38.02 RULES AND REGULATIONS FOR FIRE HYDRANT AND/OR FIRE SPRINKLER SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES ON PRIVATE PROPERTY A. All fire hydrant and/or fire sprinkler service mains installed for commercial or industrial pur- poses on privately-owned land shall be owned and maintained by the land owner; except for fire hydrants installed for developments where the District has accepted an easement for such service mains. B. Where service is provided for fire hydrant or fire sprinkler service on privately-owned land under Paragraph A above, the service shall be provided by the District at the property line of the land to be served. The property owner or developer shall be responsible to construct and maintain the remainder of the facilities to pro- vide fire protection to the property. Each such facilities installation shall include a reduced pressure principle assembly backflow device installed in accordance with District specifica- tions on the fire main on the customer side of the property line. C. Water furnished for fire hydrant or fire sprin- kler service shall be used only for fire protec- tion purposes. Water service for domestic, busi- ness, commercial or irrigation purposes shall be furnished only after a meter or meters have been installed on laterals connected to the District main in the street pursuant to requirements of this Code. D. Upon application for installation of one or more fire service connections to an existing District water main, the customer shall pay such charges as shall be determined on the basis of actual costs incurred by the District in performing the Attachment E 38-2 work. At the time of application for the instal- lation, the District will estimate the total costs to be incurred in performing the work. The customer shall deposit the estimated amount with the District prior to commencement of the work. The work shall be performed by the District under a District Water/Sewer Order. If actual costs incurred by the District are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If the costs incurred exceed the amount deposited, the cus- tomer shall reimburse the District for the addi- tional costs. Where the fire service connection is to be made to a water main to be constructed in a street by the owner or developer, the costs for such connection shall be covered under the standard developer's agreement with the District for installation of the water facilities for the development project. E. Water for fire protection services shall be pro- vided in accordance with District fees and charges set forth in Section 25.03.D of this Code. F. The District shall have no responsibility for the proper function of the fire service system nor for the availability of water from its mains for fire protection in the event of emergency. While the District undertakes at all times to have ade- quate supplies available in its system for ordi- nary uses, it is not a guarantor of continual service in quantities adequate for all purposes however, and each customer shall specifically agree that as a condition of the fire service connection contracted for that the District shall incur no liability nor be subject to any damages resulting from a failure or malfunctioning of the fire sprinkler lateral or fire sprinkler system or from a lack of water in adequate quantity or pressure to make it fully effective. 38.03 SERVICES FOR RESIDENTIAL FIRE PROTECTION When a residential water meter is required to provide standby capacity for a fire sprinkler system, the capacity charge may be determined according to the size of the meter necessary to meet the water use requirements for the property. This is determined according to the rules of the member agency providing 38-3 the meter, without consideration of additional size necessary to provide the standby capacity. Standby capacity to provide water for a fire sprinkler system is required when (1) the fire sprinkler system is required by law, including any requirement imposed as a condition of development, permit, or occupancy, and (2) the fire chief, fire marshal, or building official of the city, county, or special district responsible for fire protection service to the property has a requirement for additional meter size due to fire protection. The determination, under this section, shall be made at the time the meter is first obtained, or at the time a meter is replaced with one of greater size due to the later installation of a fire protection system. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2012 SUBMITTED BY: Geoffrey Stevens, Chief Information Officer PROJECT: Various DIV. NO. ALL APPROVED BY: German Alvarez, Assistant General Manager, Administration and Finance Joe Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Update - Records Retention Policy GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To provide an informational update on changes to the District’s records retention policy. ANALYSIS: In February 2010 the Board approved policy 5-A Records Policies and Procedures – Records Retention and Destruction. The policy established a revised records retention policy. In addition the policy allows the General Manager to make minor ongoing changes to the Records Retention Schedule if necessary. One area where change has occurred since the policy was adopted in 2010 is in the area of electronic records. In researching the best way to handle items like email and computer back-up tapes, staff learned that both CWA and the State of California delete this type of information more rapidly than does the District. For example CWA uses a four month timeframe. State policies vary somewhat but require each agency to have a specific policy. Because of this your staff is AGENDA ITEM 8 implementing a thirteen month period (reduced from 36 months in the original policy) for both emails and computer backup tapes. While our policy does not require Board approval for minor changes, the General Manager wishes to inform the Board because of the significant interest in electronic document policy and also that this is the first time we have made a minor change to the policy. This 13 month timeframe will allow us to recover any item we received electronically in the last year and also allow us to manage the immense storage requirements of electronic communications. From a legal perspective, email is considered to be transitory communication and not in and of itself a “record.” Sometimes, however, email contains specific content or attachments that should be retained as a record, for example, the final version of a contract. In this case, the individual who receives the email will be responsible for transfering the record into the correct category in the TRIM records system. The records system is designed to make this electronic transfer function easy. As this item is an informational item, it is relevant to take this opportunity to also inform the Board that significant improvements have been completed in our records management systems as well. During the last year staff has upgraded our existing TRIM records system with a new version now provided and supported by HP. This enhanced product is a scalable enterprise document and records management solution that simplifies the capture, management, security, and access to information—in a business context. It is also compliant with a number of government recommended standards, for example Records Management—Part 1 and 2 ISO 15489-1:2001 and ISO/TR 15489- 2:2001. This system enables the District to more easily comply with regulations and corporate policies, and it helps the District secure information from inappropriate access and misuse. TRIM has been implemented with significant staff input and serves as the official repository for District records. FISCAL IMPACT: None at this time. STRATEGIC GOAL: Item 3.B.7 Update the District-wide Records Management Program. LEGAL IMPACT: None. This recommendation has been reviewed and approved by the District’s legal staff. Attachments: Attachment A – Committee Action Attachment B – Policy 5A ATTACHMENT A SUBJECT/PROJECT: Update - Records Retention Policy COMMITTEE ACTION: This item will be presented to the Finance, Administration and Communications Committee. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 7, 2012 SUBMITTED BY: Rita Bell, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager, Finance and Administration Mark Watton, General Manager SUBJECT: The Projected Fiscal Year 2012 Comparative Budget Summary GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: See Attachment A. PURPOSE: To inform the Board as to the latest budget projections. ANALYSIS: Background: CWA considered FY2010 the “new normal” year, taking into consideration changes in our customers habits, based on the last several year’s unprecedented rate increases, weather, the slow economic recovery, and ongoing conservation messages. Staff presented to the Board that the CWA assumptions were reasonable estimates and therefore, used the same assumptions. AGENDA ITEM 9 2 In the FY2012 budget process, the District anticipated that water sales would regain 50% of the FY2010 loss. Another 25% in sales was estimated to return in FY2013, and the final 25% would return in FY2014. CWA acknowledged that FY2011 had the coolest July since the 1930’s and the wettest December since 1850. In addition, the forecast for FY2012 was a La Nina, meaning less rainfall, and hopefully less extreme weather, so the CWA overall assumption seemed reasonable. The State and CWA also put an end to water use restrictions, allowing customers to use more water in FY2011. Current Status: On a monthly basis, staff monitors the revenues and expenses of the operating budget and reports to the Board via the Comparative Budget Summary. The first month of the fiscal year began with water sales above budgeted levels by 5.5%. For the next five consecutive months, water sales fell short of budget and reached a cumulative sales volume deficit of 10.4%. Cool summer months, and early rainfall in September through November, reduced water sales in months where some of the highest volume sales are anticipated, and at the higher tiers, thus further reducing water sales dollars. For the first seven months of the FY2012, the budget assumed 69% of the water sales units, when actual sales were only 67%. In sales dollars, because of the effect of the tiered rate structure, the budget assumed 69% in sales, but only achieved 66%. With only 33% of the anticipated sales over the next five months, it is unlikely that the deficit will be eliminated. In January, the trend began reversing itself and the District experienced higher sales than budgeted by 24.1%, reducing the cumulative variance to -7.7%. Should the District sales stay on budget for the next five months, and if the identified departmental expense savings are realized, the District will still be $1.6 million under the budgeted net revenues. Staff has provided three additional scenarios with sales at 4% and 8% below budget and the final one that matches the fiscal year 2011 February through June actual sales (12% above budget) for the remainder of the year. FISCAL IMPACT: An operating budget shortfall of $1.6 million up to $2.0 is possible, due to reduced water sales, despite the almost $800,000 in expense savings. Even in the best case scenario where February through June sales matches 2011, the shortfall is still $1.3 million. This shortfall will have a negative effect on the proposed water rates in 3 the pending FY 2013 budget process. If this year’s sales are lower than anticipated, the future projected water sales will also be lowered, putting added upward rate pressure into the budget process. The upward pressure on rates will be partially offset by additional budget scrutiny, labor efficiencies, and any reduction in CIP expenditures. STRATEGIC GOAL: Provide value by directing and managing the financial issues that are critical to the District. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Presentation ATTACHMENT A SUBJECT/PROJECT: The Projected Fiscal Year 2012 Comparative Budget Summary 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. Fiscal Year 2012 Budget to Actual Comparative Projection February 14, 2012 1 Actual through January – Projected on Budget through June 5.5% 1.0% -2.8% -4.1% -7.8% -10.4% -7.7%-7.2%-6.9%-6.4%-5.8%-5.3% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 FY 2012 Budget vs. Actual Monthly Water Sales with February through June on Budget Budget Actual/Projected Cumm % 2 Actual through January – Projected on 4% Below Budget through June 5.5% 1.0% -2.8% -4.1% -7.8% -10.4% -7.7%-7.5% -7.5%-7.6%-7.8%-8.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 FY 2012 Budget vs. Actual Monthly Water Sales with February through June 4% Below Budget Budget Actual/Projected Cumm % 3 Actual through January – Projected on 8% Below Budget through June 5.5% 1.0% -2.8% -4.1% -7.8% -10.4% -7.7%-7.7%-7.9%-8.3%-8.7%-9.2% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 FY 2012 Budget vs. Actual Monthly Water Sales with February through June 8% Below Budget Budget Actual/Projected Cumm % 4 Actual through January – Projected using 2011 February through June Units 5.5% 1.0% -2.8% -4.1% -7.8% -10.4% -7.7% -4.2% -2.5%-2.5% -1.2%-0.9% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 FY 2012 Budget vs. Actual Monthly Water Sales with February through June 2011 units Budget Actual/Projected Cumm % 5 6 Historical Water Purchases 35,394 37,896 38,836 38,045 34,971 31,172 29,860 30,483 2,284 3,050 3,073 20,000 25,000 30,000 35,000 40,000 45,000 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Budget 2012 Ac r e F e e t Otay Purchases Supplement to Recycled System Otay High Demand 4.2% 9.2% 27.2% Otay High Demand - 41, 909 AF 8.1% 11.1% 2.1% 37,678 40,946 41,909 Water Sales FY 2011 vs. FY 2012 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Cumulative Sales FY 2011 and FY 2012 FY 2011 FY 2012 7 Historical Sales - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Historical Monthly Water Sales FY 2009 FY 2010 FY 2011 FY 2012 8 Rainfall JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY10 - - - - 0.12 2.28 3.38 2.28 0.68 1.78 0.01 0.02 FY11 0.02 - 0.03 2.18 0.88 5.00 0.31 2.13 1.46 0.26 0.36 0.03 FY12 - - 0.13 0.46 3.12 0.86 0.89 Average 0.01 - 0.05 0.88 1.37 2.71 2.29 2.21 1.07 1.02 0.19 0.03 - 1.00 2.00 3.00 4.00 5.00 6.00 in c h e s FY 2010-2012 Rainfall (Monthly ) FY10 FY11 FY12 Average 9 Effect on Projected Comparative Budget Summary On Budget Feb – June 4% Below Feb – June 8% Below Feb – June 2011 units Revenue $ (4,278,136) $ (4,831,361) $ (5,390,349) $ (2,676,085) Expenses $ 2,628,866 $ 2,975,024 $ 3,344,654 $ 1,353,054 Net Amount Over/(Under) $ (1,649,270) $ (1,856,337) $ (2,045,695) $ (1,323,031) Water Sales variance in dollars -10.0% -11.2% -12.4% -6.5% Water Purchases variance in dollars 6.6% 7.9% 9.2% 2.2% 10 Operating Budget Savings Payroll and Related Costs Materials & Maintenance Administrative Expenses 11 Operating Budget Savings – Payroll and Related Costs Estimated Salary Savings of $462,380 Projected vacancies $549,880 PERS savings from employee contributions $451,500 Less increase in OPEB cost -$539,000 $462,380 12 Operating Budget Savings – Materials and Maintenance Estimated Material Savings of $118,700 Safety Equipment $5,000 Contracted Services $8,700 Infrastructure Materials $25,000 Fuel & Oil $20,000 Fleet Parts & Equipment $10,000 Chemicals $50,000 $118,700 13 Operating Budget Savings – Administrative Expenses Estimated Admin Expense Savings of $210,300 Outside Services $225,000 Insurance -$47,900 Travel, Conferences & Meetings $7,100 Incentives $66,000 Bank Fees $11,500 Office Supplies, Printing & Training $12,600 Communications $27,000 Employee Programs $18,000 Bad Debt -$17,800 Overhead Allocation -$91,200 $210,300 14 Where do we go next? ◦Watch and update water sales ◦Look for more expense savings ◦Update the Rate Model with latest estimates Questions? 15