HomeMy WebLinkAbout04-18-06 E&O Committee PacketOTAY WATER DISTRICT
ENGINEERING AND OPERATIONS COMMITTEE MEETING
and
SPECIAL MEETING OF THE BOARD OF DIRECTORS
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY,CALIFORNIA
Board Room
Tuesday
April 18,2006
4:00 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
INFORMATION /ACTION ITEMS
3.APPROVE THE EXECUTION OF AN AGREEMENT FOR THE EXPLORATION,
PRODUCTION AND SALE OF POTABLE WATER AND WATER RIGHTS BE-
TWEEN OTAY WATER DISTRICT AND 0&0 LANDHOLDINGS (WAT-
TON/CALDERON)[10 minutes]
4.ADOPT RESOLUTION NO.4076 ANNEXATION OF ASSESSOR PARCEL NO.
519-350-26 KNOWN AS THE "3124 OLD SCHOOLHOUSE ROAD SEWER AN-
NEXATION"TO IMPROVEMENT DISTRICT 18 OF THE OTAY WATER DIS-
TRICT FOR SEWER SERVICE (POSADA/CHARLES)[5 minutes]
5.ADOPT RESOLUTION NO.4077 ANNEXATION OF ASSESSOR PARCEL NO.
644-030-07 KNOWN AS THE "OTAY RANCH VILLAGE 2 ANNEXATION"TO 10
22/27 OF THE OTAY WATER DISTRICT FOR WATER SERVICE
(POSADA/CHARLES)[5 minutes]
6.APPROVE CHANGE OF HEALTH CARE PROVIDER NETWORK FROM PA-
CIFIC FOUNDATION FOR MEDICAL CARE TO BLUE CROSS AND ADD A $10
1
OFFICE VISIT CO-PAY IN PLACE OF A 90/10 CO-INSURANCE (WILLIAM-
SON/SARNO)[10 minutes]
7.APPROVE IMPLEMENTATION OF A PAY-FOR-PERFORMANCE PROGRAM
AND RESOLUTION NO.4073 TO SET COMPENSATION AND BENEFITS FOR
ALL DEPARTMENT CHIEFS (WILLIAMSON/SARNO)[10 minutes]
8.ADJUSTMENT OF THE BUDGET FOR THE 980-2 PUMP STATION FOR FIS-
CAL YEAR 2005-2006 IN THE AMOUNT OF $555,000 IN THE PROJECT
BUDGET (POSADA/VAUGHAN)[10 minutes]
9.ADJOURNMENT
BOARD MEMBERS ATTENDING:
Gary Croucher
Jose Lopez
All items appearing on this agenda,whether or not expressly listed for action,may be
deliberated and may be subject to action by the Board.
If you have any disability that 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 April 13,2006,I posted a copy of the foregoing agenda near the
regular meeting place of the Board of Directors of Otay Water District,said time being at
least 24 hours in advance of the meeting of the Board of Directors (Government Code
Section §54954.2).
Executed at Spring Valley,California on April 13,2006.
Connie Rathbone,Assistant District Secretary
2
AGENDA ITEM 3
TYPE MEETING:Regular Board
SUBMITTED BY:Mark Watton,
General Manager
Yuri Calderon,
General Counsel
5TAFF REPORT
MEETING DATE:
W.O.lG.F.NO:
May 3,2006
DIV.NO.
APPROVED BY:
SUBJECT:Agreement with D & D Landholdings Concerning the Exploration,
Production and Sale of Potable Water and Water Rights
GENERAL MANAGER'S RECOMMENDATION:
That the Board approve the execution and delivery of an Agreement for
the Exploration,Production and Sale of Potable Water and Water
Rights (the "Agreement")between the Otay Water District ("District")
and D & D Landholdings ("D&D")to set forth terms and conditions for
the search for potable water wi thin certain real property described
in the Agreement,the retrival or production of potable water meeting
certain conditions specified in the Agreement and the sale of the
same to the District.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain the approval of the Board of Directors of the District
("Board")for the District to enter into the Agreement to set forth
terms and conditions pursuant to which D&D will explore for water
within certain real property described in the Agreement and pursuant
to which the District will agree to purchase potable water if certain
conditions are met.
ANALYSIS:
In 1994,the Board established a goal for the District to meet 40
percent of its water demands from local water sources.The District
has made efforts and implemented measures to reduce its reliance on
imported water.Although the District has several agreements in
place that advance its goal,additional efforts must be made to
secure permanent,reliable sources of potable water.Among other
potential benefits,the proposed Agreement would afford the District
the opportunity of determining whether potable water can be found in
a portion of certain local real property at a minimum cost to the
District.
Pursuant to the Agreement,D&D will be responsible for searching for
sources of potable water within certain real property depicted on
Exhibit B-2 to the Agreement (the "Company Property").The
activities associated with the exploration of the Company Property
will include the identification of potential drilling sites,
including any preliminary testing required,the drilling of potential
sites to draw samples of water for testing,the testing of any
samples found and the production of a report identifying any sites
within the Company Property that could be suitable for the
contruction of a well site.Sites an only be considered suitable
potential well sites if potable water meeting certain standards of
quality and quantity set forth in the Agreement are met.D&D shall
have twelve calendar months,commencing on the date of the Agreement,
to prove to the District that one or more potential sites exist
within the Company Property.
If an acceptable potential site is found,D&D and the District will
agree on the terms for construction of a well and the District shall
have the sole and exclusive right to produce and sell water from such
well,excepting only D&D's right to provide water in an amount not to
exceed 137 acre-feet per year to a tenant of D&D identified in the
Agreement as the Mining Company.It is agreed,however,that water
used by the Mining Company shall not cause the water supply available
to the District to fall below the amount of 1,612 acre feet per year
within certain safety margins.
If an acceptable potential site is not found within the period of
time provided in the Agreement,the District has the option to extend
the exploration period or terminate the Agreement.If an appropriate
site is found,the District has the option to initiate proceedings to
adjudicate the rights to the water basin.
If a well site is built,the District will pay D&D 90%of the San
Diego County Water Authority's published rate for treated potable
water;provided that any direct and indirect costs of the District in
connection with the construction of the well shall be fully amortized
over a 20 year period and deducted on an annual basis from the price
of water purchased.
The terms above are reflected in the attached form of Agreement.
FISCAL IMPACT:
Initial expense of approximately $24,000 for legal costs incurred in
connection with the drafting and negotiation of the Agreement.If
adequate/acceptable water is found and the District constructs a
well,it could incur costs of construction up to an
$3,724,000 depending on well capacity.The cost will be
over 20 years into the water price as per the water
agreement.
LEGAL IMPACTj
None anticipated.
SD #4822-7168-2304 vI
amount of
amortized
purchase
ATTACHMENT A
Agreement with D & D Landholdings Concerning the
Exploration,Production and Sale of Potable Water and Water
SUBJECT/PROJECT:Rights
COMMITTEE ACTION:
This item was presented to Engineering and Water Operations
Committee on April 18,2006.The committee supported
presentation to the full board.
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
AGENDA ITEM 4
TYPE MEETING:Regular Board MEETING DATE:May 3,2006
20.270
services~~
SUBMITTED BY:
APPROVED BY:
(Chief)
David Charles,Public
Services Manager ~-Rod Posada,Chief Development
W.O./G.F.NO:0210-DIV.
NO.
5
APPROVED BY:
(Asst.GM):
SUBJECT:
Manny Magana,Asst.GM Engineering &Operation~~
",.....
3124 Old Schoolhouse Road Sewer Annexation to ID 18
GENERAL MANAGER'S RECOMMENDATION:
Approve Resolution No.4076,the annexation of the property of
Jack and Marian Doherty to Improvement District No.18.
COMMITTEE ACTION:
Please see Attachment "A."
PURPOSE:
The purpose of the proposed annexation is to provide sewer service to a
parcel owned by Mr.and Mrs.Jack Doherty (APN 519-350-26).
ANALYSIS:
A written request and Petition signed by Mr.and Mrs.Doherty
has been received for annexation of APN519-350-26 into
Improvement District No.18 for sewer service.The total
acreage to be annexed is 1.29 acres.The property is within the
sphere of Otay Water District and will be part of Improvement
District No.18 after the Board of Directors approves this
request.The property is located at 3124 Old Schoolhouse Road,
in the city of EI Cajon and County of San Diego.
FISCAL IMPACT~
The property owners will be charged $38.70 per year for
availability fees.A sewer annexation fee of $4,767.00 will be
collected at the time sewer service will be provided.
STRATEGIC GOAL:
Provide sewer service to meet increasing customer needs.
LEGAL IMPACT:
General Manager
.................................................................................................................................".J
ATTACHMENT A
r"'SUBJE'CT/PR6JECT~""I 312 4·····0id··Schooihou's"~"'Roa:d .(A PN"5'i9=j'50=26Y'S'~;;;~'~"'Ann e xat ion
t...................................J~o 10 18
COMMITTEE ACTION:
On April 18,2006,the Engineering and Operations Committee met
to consider this item and supported staff's recommendation.
NOTE:
The "Committee Action"is written in anticipation of the
Committee moving the item forward for board approval.This
report will be sent to the Board as a committee approved item,
or modified to reflect any discussion or changes as directed
from the committee prior to presentation to the full board.
G:\UserData\DistSec\WINWORD\STAFRPTS\Annex 3124 Old Schoolhouse Road.doc
LOCATION MAP
Division 5
2
JACK E.DOHERTY JR.
ANNEXATION TO ID 18
DIR.DIV.:
I.D.:
JACK E.DOHERTY JR-
DEVELOPER:3124 OLD SCHOOLHOUSE RD.
APN;519-350-26
VICINITY MAP
APN:519-350-26
P:IPublic-slshapefilesIWOproJ\workorrfer.apr
RESOLUTION NO.4076
A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY
WATER DISTRICT APPROVING THE ANNEXATION TO
OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO.18
OF THOSE LANDS DESCRIBED AS "3124 OLD
SCHOOLHOUSE ROAD SEWER ANNEXATION"(WO 0210-
20.280/DIV.5)
WHEREAS,a petition has been filed by Jack and Marian Doherty,the owners and
parties that have an interest in the land described in Exhibit "A,"attached hereto,for annexation
of said land to Otay Water District Improvement District No.18 pursuant to California Water
Code Section 72670 et seq.;and
WHEREAS,pursuant to Section 72680.1 ofsaid Water Code,the Board ofDirectors may
proceed and act thereon without notice and hearing.
NOW,THEREFORE,THE BOARD OF DIRECTORS OF THE OTAY WATER
DISTRICT FINDS,RESOLVES,ORDERS AND DETERMINES as follows:
1.A depiction of the area proposed to be annexed,and the boundaries of ID 18
following the annexation,is set forth on a map filed with the Secretary ofthe District,which map
shall govern for all details as to the area proposed to be annexed.
2.The purpose of the proposed annexation is to make sewer service available to the
area to be annexed,which availability constitutes a benefit to said area.
3.The Board finds and determines that the area proposed to be annexed to ID 18
will be benefited by such annexation and that the property currently within ID 18 will also be
benefited and not injured by such annexation because after the annexation a larger tax base will
be available to finance the sewer facilities and improvements ofID 18.
4.The Board of Directors hereby declares that the annexation of said property is
subject to the owners complying with the following terms and conditions:
(a)The petitioners for said annexation shall pay to Otay Water District the
following:
(1)Standard processing fee in the amount of
$628.00;
(2)State Board ofEqualization filing fees in the amount of$350;
(3)A sewer annexation fee of $4,767 per EDU to be collected at the
time sewer service is provided;
(4)Yearly assessment fees will be collected through the County Tax
Assessor's office in the amount of $38.70 for APN 519-350-26;
and
(5)Payment by the owners ofAPN 519-350-26 of all other applicable
local or state agency fees or charges.
(b)The property to be annexed shall be subject to taxation after annexation
thereof for the purposes of the improvement district,including the pay-
ment of principal and interest on bonds and other obligations of the
improvement district,authorized and outstanding at the time of
annexation,the same as if the annexed property had always been a part of
the improvement district.
5.The Board hereby declares the property described III Exhibit "A"shall be
considered annexed to ID 18 upon passage ofthis resolution.
6.The Board of Directors further finds and determines that there are no exchanges
of property tax revenues to be made pursuant to California Revenue and Taxation Code Section
95 et seq.,as a result ofsuch annexation.
7.The annexation of APN 519-350-26 to the District is hereby designated as the
"3124 OLD SCHOOLHOUSE ROAD SEWER ANNEXATION."
8.Pursuant to Section 572029(c)of the Government Code,the effective date of the
3124 OLD SCHOOLHOUSE ROAD SEWER ANNEXATION shall be the date this Resolution
is adopted by the Board ofDirectors ofthe Otay Water District.
9.The General Manager of the District and the Secretary of the District,or their
respective designees,are hereby ordered to take all actions required to complete this annexation.
PASSED,APPROVED AND ADOPTED by the Board of Directors of the Otay Water
District at a regular meeting held this 3rd day ofMay,2006.
President
ATTEST:
District Secretary
G:\UserData\DistSec\WINWORD\RESOLUTN\Res4076 -3124 Old Schoolhouse Road Sewer Annex.doc
EXHIBIT "A"
LEGAL DESCRIPTION
ANNEXATION PARCEL
OTAY WATER DISTRICT I.D.
ALL THAT PORTION OF SECTIONS 31 AND 32 ,TOWNSHIP 16 SOUTH,RANGE 1EAST,
S.B.M.TOGETHER WITH PORTIONS OF LOTS 204 AND 205 OF MAP NO:13187 FILED IN THE
OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY,STATE OF CALIFORNIA,
DESCRIBED AS FOLLOWS;
BEGINNING AT A POINT ON THE LINE OF SECTIONS 31 AND 32 ,TOWNSHIP 16 SOUTH,
RANGE 1 EAST,S.B.M.72.66 FEET SOUTH OF THE INTERSECTION WITH JAMACHA
RANCHO;THENCE SOUTH 6t44 '05"EAST 76.38 FEET TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING SOUTH 61°44'05"EAST A DISTANCE OF 187.00 FEETTO THE
WESTERLY LINE OF LOT 1,MAP 10401;THENCE SOUTH 28tl15'07"WEST ALONG THE
WESTERLY LINE OF SAID LOT 1 ,A DISTANCE OF 210.88 FEET TO A POINT ON Ao1542.00
FOOT RADIUS CURVE CONCAVE SOUTHERLY A RADIAL BEARING OF SOUTH 08 09'06"
EAST;THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 4~8'
15"A DISTANCE OF 120.32 FEET;THENCE LEAVING SAID CURVE NORTH 01 57 '34"WEST A
DISTANCE OF 18.84 FEET;THENCE NORTH 2l47'14"WEST A DISTANCE OF 36.91 FEET;
THENCE NORTH 32°36'41"WEST A DISTANCE OF 29.16 FEET;THENCE NORTH 4t49'26"
WEST A DISTANCE OF 60.11 FEET;THENCE NORTH 38°50'53"EAST A DISTANCE OF 212.94
FEET MORE OR LESS TO THE TRUE POINT OF BEGINNING.
TOGETHER WITH A PORTION OF SECTION 32,TOWNSHIP 16 SOUTH,RANGE 1 EAST,S.B.M.
AS DESCRIBED AS FOLLOWS;
/'"'.z;;.?~2)-t)f..
R.NICOLAU IJI LS 6045 DATEJA
BEGINNING AT A POINT ON THE SECTION LINE OF SECTIONS 31 AND 32 SOUTH OF THE
INTERSECTION WITH JAMACHA RANCHO A DISTANCE OF 633.23 FEET BEING
MONUMENTED BY A 2"IRON PIPE L.S.4512 PER MAP 10401.THENCE NORTH 00')13'40"EAST
ALONG SAID SECTION LINE A DISTANCE OF 138.41 FEET TO A POINT ON A 1458 FOOT
RADIUS CURVE CONCAVE SOUTHERLY BEING THE SOUTHERLY LINE OF JAMUL DRIVE,A
RADIAL BEARING OF SOUTH 1159'24"EAST;THENCE EASTERLY ALONG SAID CURVE A
DISTANCE OF 85.61 FEET A CENTRAL ANGLE OF 03°21'51"TO THE NORTHWESTERLY LINE
OF LOT 39,MAP 10401;THENCE SOUTH 28°15'07"WEST ALONG THE WESTERLY LINE OF
SAID LOT 39 A DISTANCE OF 177.84 FEET MORE OR LE~S TO THE TRUE POINT OF
BEGINNING.~('\~O 8U'~~'VO 41't'&\
CONTAINING 1.29 ACRES MORE OR LESS.W ~:~\::J b\\*JAMES R.NKXJl..AU V}).i:1t
EXP.1-OO-06 j.
L.8.elM5 I:"ii~~t~/i"d!j S!fl.:\'1:~~~,!l"
HW'l'.94
SCALE I ~..80'
EL CAJON
VICINITY MAP
NO SCALE
niOS.BROS.P.1272 C-5
LEGEND -----,------~Il'JDICATES ANNEXATION J\REA.
]-2.7-0>:-
DATEJAMESR.NICOLAU III L.S.6045
JRN lAND SURVEYING
9786 CHOCOLATE SUMMIT DR.
EL CAJON CAo 92021
OTAY WATER DISTRICT ----_._-
A PORTION OF SEC.31 AND 32,T.16 S.,R.I E.,S.B.M.TOGETHER WITH
A PORTION OF LOTS 205 AND 206 ,MAP 13187,COUNTY OF SAN DIEGO J STAlE OF CALIF.
RECORDERS F/P _._]'cooiIiitlirrEs
-.,'IAP NO.RECOIID"~G DATE:-J.:.::::...---j
t----+---t----------IarAY w.o.DEED NO:DAlE:3-27-<)6 __
D~I DAlE DESCRIPTION IMP.D1S1.NO:-DI1AWH BY:JRN -~
N;Y.--_._W.O.NO.06-2ITrA
STAFF REPORT
AGENDA ITEM 5
TYPE MEETING:Regular Board MEETING DATE:May 3,2006
SUBMITTED BY:
APPROVED BY:
(Chief)
APPROVED BY:
(Ass!.GM):
David Charles,Public W.O.lG.F.NO:0210-20.279
Services Manager ~..~~
Rod Posada,Chief Development service~~~\
Manny M~sst.GM Engineering and Operationsr •
DIV.NO.2
SUBJECT:Otay Ranch Village 2 Annexation to Improvement District 22/27
GENERAL MANAGER'S RECOMMENDATION:
Adopt Resolution No.4077,which approves the annexation of the real
property known as Otay Ranch Village 2,APN 644-030-07 to Improvement
District No.22/27.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
The purpose of the proposed annexation is to make water service
available to the property proposed to be annexed,which Otay Ranch
Investments,LLC intends to develop.
ANALYSIS:
On March 8,2006,Ranie L.Hunter,Vice President of the Otay Ranch
Company,submitted a request for the annexation of the real property
known as Otay Ranch Village 2 to Improvement District 22/27.Otay
Ranch Village 2,which covers an area of approximately 108.041 acres,
is located within Parcel Map No.19923,Assessor Parcel Number 644-
030-07.Otay Ranch Investments,LLC owns the parcel.
Otay Ranch Investment,LLC has informed staff that it intends to
develop Otay Ranch Village 2 and would like the real property to be
annexed into Improvement District No.22/27 to facilitate the future
connection of the development to the Otay Water District water
system.Before water service may be provided to the proposed area,
it must be annexed into Improvement District 22/27.
The real property proposed to be annexed is located within the
boundaries of the Otay Water District,and it will not be an island
annexation nor will it create an island.The property is located
south of Olympic Parkway at the southwest corner of Heritage Road,in
the City of Chula Vista,County of San Diego.
The Otay Water District Board of Directors approved the Otay Ranch
Village 2 Water Assessment Study Requirements pursuant to SB 610 and
SB 221 on January 14,2004.In addition,the Subarea Master Plan for
Otay Ranch Village 2 was submitted to the District in January 2006
and is currently under review by District staff for approval.The
District Water Resources Master Plan for 2002 had factored in the
water availability for the entire Otay Ranch Village 2 development.
As required by state law,the secretary of the Otay Water District
has examined the petition for annexation submitted by Otay Ranch
Investment,LLC.Since the petition for annexation has been signed
by a representative authorized on behalf of Otay Ranch Investment,
LLC,the Board may proceed and act on the petition for annexation
without notice or a public hearing.
The resolution approving the annexation,Resolution 4077,has been
prepared in accordance with state law.The resolution describes the
territory to be annexed and references maps,which are on file with
the secretary,depicting the territory to be annexed and the
boundaries of Improvement District 22/27 after the annexation.
FISCAL IMPACT:S~
-~//?
This property will be assessed availability fees of $3,241.23
annually.
STRATEGIC GOAL·
Provide water service to meet increasing customer needs.
LEGAL IMPACT:
Ge
G:\UserData\DistSec\WINWORD\STAFRPTS\Annex Otay Ranch village 2 -5-3-06.doc
ATTACHMENT A
Otay Ranch Village 2 Annexation to Improvement District
SUBJECT/PROJECT:22/27
COMMITTEE ACTION:
On April 18,2006,the Engineering and Operations Committee met
and supported staff's recommendation.
NOTE:
The "Committee Action"is written in anticipation of the
Committee moving the item forward for board approval.This
report will be sent to the Board as a committee approved item,
or modified to reflect any discussion or changes as directed
from the committee prior to presentation to the full board.
AY itA ILIl..A8E 2 Alii ATIOII
DEVELOPER:
OTAY RANCH INVESTMENT LLC.
A P N :644-030-07-00
A eRE:108.041
•~D ~:22-27
D•R ~D •V ~:Division 2
LOCATION MAP
VICINITY MAP
644-030-07-00 I ID:22/27
RESOLUTION NO.4077
A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY
WATER DISTRICT APPROVING THE ANNEXATION TO
OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO.
22/27 OF THOSE LANDS DESCRIBED AS "OTAY RANCH
VILLAGE 2,APN 644-030-07"(WO 0210-20.279/DIV.2)
WHEREAS,a petition signed by Ranie L.Hunter,Vice President of the Otay Ranch
Company and as representative on behalf of Otay Ranch Investment,LLC,has been submitted to
the Secretary of the Otay Water District (District)requesting annexation of the real property
described in Exhibit "A,"attached hereto,to the District's Improvement District No.22/27 (ID
22/27)pursuant to California Water Code Section 72670 et seq.;and
WHEREAS,a map showing the boundaries of the property to be annexed,and the
boundaries of ID 22/27 after the proposed annexation,is on file with the Secretary of the
District;and
WHEREAS,Otay Ranch Investments,LLC owns certain real property commonly
referred to as Otay Ranch Village 2 and intends to develop the property for residential purposes;
and
WHEREAS,pursuant to Section 72680.1 of the Water Code,the Board of Directors may
proceed and act on the petition without notice and hearing.
NOW,THEREFORE,THE BOARD OF DIRECTORS OF THE OTAY WATER
DISTRICT FINDS,RESOLVES,ORDERS AND DETERMINES as follows:
1.A depiction of the area proposed to be annexed,and the boundaries of ID 22/27
following the annexation,is set forth on a map filed with the Secretary ofthe District,which map
shall govern for all details as to the area proposed to be annexed.
2.The purpose of the proposed annexation is to make water service available to the
area to be annexed,which availability constitutes a benefit to said area.
3.The Board finds and determines that the area proposed to be annexed to ID 22/27
will be benefited by such annexation and that the property currently within ID 22/27 will also be
benefited and not injured by such annexation because after the annexation a larger tax base will
be available to finance the water facilities and improvements ofID 22/27.
4.The Board of Directors hereby declares that the annexation of said property is
subject to compliance with the following terms and conditions:
(a)The petitioners for 'Said annexation shall pay to Otay Water District the
following:
(1)Standard processing fee in the amount of
$628.00;
(2)State Board ofEqualization filing fees in the amount of$2,000.00;
(3)An annexation fee of $1,309 per EDU to be collected at the time
meters are purchased;
(4)Yearly assessment fees will be collected through the County Tax
Assessor's office in the amount of $3,241.23 for APN 644-030-07;
(5)Payment by the owners of APN 644-030-07 of all other applicable
local or state agency fees or charges.
(b)The property to be annexed shall be subject to taxation after annexation
thereof for the purposes of the improvement district,including the pay-
ment of principal and interest on bonds and other obligations of the
improvement district,authorized and outstanding at the time of
annexation,the same as if the annexed property had always been a part of
the improvement district.
5.The Board does hereby declare the property described in Exhibit "A"to be
annexed to ID 22/27.
6.The Board of Directors further finds and determines that there are no exchanges
of property tax revenues to be made pursuant to California Revenue and Taxation Code Section
95 et seq.,as a result ofsuch annexation.
SD 4824-0391-5776.2 v2
7.The General Manager of the District,or his designee,are hereby ordered to take
any and all action necessary to finalize the annexation as contemplated in this Resolution.
8.This Resolution becomes effective on the date of its adoption pursuant to Section
72686 ofthe Water Code.
PASSED,APPROVED AND ADOPTED by the Board of Directors of the Otay Water
District at a regular meeting held this 3rd day ofMay,2006.
President
ATTEST:
District Secretary
G:\UserData\DistSec\WINWORD\RESOLUTN\Res4077 -Otay Ranch Village 2 -5-3-06 .doc
SD 4824-0391-5776.2 v2
EXHIBIT "A"
LEGAL DESCRIPTION
ALL OF PARCELS 1 AND 2 OF PARCEL MAP NO.19923 RECORDED JANUARY 18,2006,
IN THE CITY OF CHULA VISTA,COUNTY OF SAN DIEGO,STATE OF CALIFORNIA FILED
IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER,BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID PARCEL 1;
1 THENCE NORTH 71 °57'40"EAST,1553.86 FEET
2.THENCE SOUTH 18°38'30"EAST,2639.80 FEET;
3.THENCE NORTH 84°54'08"WEST,480.07 FEET;
4.THENCE SOUTH 40°13'20"WEST,358.46 FEET;
5.THENCE SOUTH 71 °57'57"WEST,188.28 FEET;
6.THENCE NORTH 5r29'21"WEST,245.28 FEET;
7.THENCE NORTH 86°43'00"WEST,313.96 FEET;
8.THENCE SOUTH 60°06'49"WEST,301.89 FEET;
9.THENCE SOUTH 78°24'41"WEST,125.67 FEET;
10.THENCE SOUTH 83°25'04"WEST,432.57 FEET;
11.THENCE NORTH 2°20'50"WEST,2386.92 FEET TO THE POINT OF BEGINNING;
THE HERINEABOVE DESCRIBED PARCEL CONTAINS 108.014 ACRES,MORE OR LESS.
&.~$d/L~~~
'DAVID W.AMBLER 7L:7322
HUNSAKER &ASSOCIATES SAN DIEGO,INC.
PAGE 1 OF 1
:RC M:\0025\366\Legal Oescriptions\A2 OWO Annex 108 Acre Parcel.doc
WO 2366-23 3/7/06
SHEET 1 OF 2
1.0.--/--
INDICATES ANNEXATION
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INDICATES COURSE NUMBER PER
THE ATTACHED LEGAL DESCRIPTION.
INDICATES SHEET NUMBER
MAIN ST.
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AGENDA ITEM 6
STAFF REPORT
May 3,2006
DIV.NO.ALL
Pacific Foundation
$10 Office Visit Co-
W.O.lG.F.NO:
MEETING DATE:
Kelli Williamson~/~o
Human Resou ces Manager
Rom Sarno,~,
Chief Aoml1~strative Services
German Alv~rez,j~~
Asst.GM,Fin~Administration
Change Health Care Provider Network from
for Medical Care to Blue Cross and Add a
Pay in Place of a 90/10 Coinsurance
SUBJECT:
APPROVED BY:
(Asst.GM):
APPROVED BY:
(Chief)
TYPE MEETING:Regular Board
SUBMITTED BY:
GENERAL MANAGER'S RECOMMENDATION:
That the Board:
1)Approve changing Health Care provider network from Pacific
Foundation for Medical Care to Blue Cross effective July 1,2006;
and
2)Approve adding a $10 office visit co-pay in place of a 90/10
coinsurance effective July 1,2006
COMMITTEE ACTION:
See Attachment "Au.
PURPOSE:
To request that the Board approve changing Health Care provider
network to Blue Cross effective July 1,2006 and add a $10
office visit co-pay in place of a 90/10 coinsurance effective
July 1,2006.
ANALYSIS:
CHANGE IN PROVIDER NETWORK
The District has contracted with Pacific Foundation for Medical
Care (PFMC)since 1994.As part of a good faith effort to ensure
the District is receiving the best contracted provider rates for
our health care,our broker Bradawn Inc.,recommended analyzing
the District's current rates to other providers.Bradawn's
research concluded that the District and employees would see
significant cost-savings if we were to change our provider
network to Blue Cross.
One of the primary advantages of changing to Blue Cross is that
they offer larger discounted contracted rates for services
provided,therefore,the District and employees would
immediately see a cost savings.Blue Cross is able to offer
larger discounted contract rates because they have a larger
network of providers compared to PFMC.An example of how the
District would save on a claim can be seen in Attachment "B".
Overall,a conservative $131,192 would be saved in the first
year of changing to Blue Cross.
On a statewide average,Blue Cross contracted rates show a
savings of:
*60-70%for PPO Hospital Inpatient
*50-55%for PPO Hospital Outpatient
*40-50%for Professional PPO
District Employees would also see a cost-savings to their claims
especially'on the larger hospital or lab bills.An example of
how the employee would save on a claim can be seen in Attachment
"B".
As mentioned earlier,Blue Cross has a larger selection of
providers in California than PFMC.In fact,based on a review of
doctors used by our covered members,there are 105 additional
providers contracted with Blue Cross that are not contracted
with PFMC.Conversely,there were only three providers that
were contracted with PFMC that are not contracted with'Blue
Cross.These three providers impact only eight employees and
have been identified as one-time visits (not recurring claims).
Prior to changing providers,the Bradawn would contact these
employees and provide them with the Blue Cross directories so
they may identify new providers as necessary.
ADD $10 CO-PAY FOR OFFICE VISITS
Additionally,staff is recommending that we implement a plan
design change of instituting a $10 office visit co-pay for in-
network PPO providers.Currently we have a 90/10 co-insurance
payment structure for in-network provider office visits.With
the $10 co-pay,employees will see cost savings to their routine
appointments as well as have a more convenient way to pay for
their visits.Implementing a $10 co-pay would be a cost-neutral
benefit to the District.Please note the $10 co-pay would only
be applied to standard office visits and preventative care.The
other claims (e.g.hospital bills,lab work,emergency services,
chiropractic care)would still fall under the 90/10 co-insurance
structure for in-network and 70/30 for out-of-network
coinsurance.
To help alleviate any impact this transition may have on
employees,the District would hold another Benefit open
enrollment effective July 1,2006 for both Medical/Dental
benefits and the Flexible Spending Accounts.This will enable
employees to make any midyear adjustments necessary due to the
new cost savings Blue Cross and the $10 office visit co-pay
would provide.
Staff has met with the Employee Association to discuss this
matter and they support this change.
FISCAL IMPACT:~~/~r'./
A conservative estimate of $131,192 per year in cost savings is
projected.This was calculated by analyzing total claims in
2005 and applying the Blue Cross discounted rates compared to
the PFMC contracted rates.Additionally,the Blue Cross Network
Access fee ($14.18 per employee/month versus $3.50 per
employee/month for PFMC)was also factored in the cost savings
estimate.Although the Blue Cross Access fee is higher than
PFMC,the cost savings that we will receive from the Blue Cross
discounts outweigh the increased access fee.
Additional savings are anticipated under the District's stop
loss contracts Stop loss vendors will see that we have lower
contracted rates with Blue Cross and therefore infer that it
will take the District longer to hit the stop loss amounts.
Stop loss vendors take these factors into consideration when
assessing their fees to provide stop loss coverage.
STRATEGIC GOAL:
FY'06 -Promote the value of the District's compensation and
benefits plan.
LEGAL IMPACT:
Attachment A:Committee Action
Attachment B:Cost Savings Example for Otay and Otay Employees
ATTACHMENT A
Approve changing health care provider network from Pacific
Foundation for Medical Care to Blue Cross effective July 1,
2006 and approve adding a $10 office visit co-pay in place
SUBJECT/PROJECT:of a 90/10 co-insurance effective July 1,2006
COMMITTEE ACTION:
The Finance/Administration Committee met on April 20,2006 and
the Engineering/Operations Committee met on April 18,2006.Both
Committees support Staff's recommendations to approve changing
health care provider network from Pacific Foundation for Medical
Care to Blue Cross effective July 1,2006 and approve adding a
$10 office visit co-pay in place of a 90/10 co-insurance
effective July 1,2006.
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.
Blue Cross
ATTACHMENT B
Cost Savings Example for Otay
Pacific Foundation for Medical Care
Blue Cross
The Cost Savings difference is $93.60
Anticipated annual cost savings to Otay is $131,192
Cost Savings Example for Employees
Pacific Foundation for Medical Care
John's lab claim was $200.He would only have to pay $4.80 using the Blue Cross Network versus
$15.20,using the PFMC network.
AGENDA ITEM 7
STAFF REPORT
AllDIV.NO.
May 3,2006
W.O.lG.F.NO:
MEETING DATE:Regular Board .~/
Kelli Williamso~y\V)
Human Resource~nager
Rom Sarno,~
Chief,Administrative Servo ~
German Alv~~'£4
Assistant~Manager,Finance and Administration
Approve implementation of a Pay-for-Performance Program and
Resolution #4073 to Set Compensation and Benefits for All
Department Chiefs
SUBJECT:
APPROVED BY:
(Asst.GM):
APPROVED BY:
(Chief)
TYPE MEETING:
SUBMITTED BY:
GENERAL MANAGER'S RECOMMENDATION:
That the Board approve implementation of a Pay-for-Performance
Program and Resolution #4073 to Set Compensation and Benefits
for All Department Chiefs.
COMMITTEE ACTION:
See Attachment "A".
PURPOSE:
To approve implementation of a Pay-for-Performance Program and
Resolution #4073 to set compensation and benefits for all
department chiefs~(Attachment B)
ANALYSIS:
The District's current compensation program allows for an annual
cost of living adjustment (COLA),with the salary ranges being
adjusted by the amount of the increase.Under the current
Memorandum of Understanding (for represented employees)and the
current Resolution (for unrepresented employees),employees will
receive a 3%COLA adjustment July 1,2006 and July 1,2007.In
addition,employees with salaries below the top of the salary
range,who meet or exceed performance expectations,and who have
no disciplinary actions within the past twelve months,receive a
3%"In-Range"adjustment each year.
The current Memorandum of Understanding (MOU)states that
employee recognition programs may be institituted by the
District and the purpose of such programs will be to recognize
"Star Performers"(exemplary employees)and improve public
service through enhanced motivation.Developing and implementing
a Pay-for-Performance ("Star Performer")program is an
outstanding item as a result of the MOU implemented in July
2003.
Human Resources conducted a county-wide survey of other water
agencies regarding pay programs in preparation to develop a
program and it was determined that San Diego County Water
Authority (SDCWA)had the most comprehensive program in the
County.Human Resources staff and the General Manager have
spoken with members of SDCWA to discuss particulars of the plan
and have used the information to design a plan that the District
is able to implement at this time.
After a thorough review of SDCWA's program,meetings were held
with Senior Management and the Management Team to further
discuss the program.Staff is recommending the following
program to the Board of Directors for consideration and
approval.
The program will include a category for all represented and
unrepresented employees (which includes supervisors,managers
and confidential staff from Human Resources,Finance and the
General Manager's office)and a category for Executives (which
includes Department Chiefs)as follows:
Represented/Unrepresented
•1-2%base pay increase or lump sum (if employee is at the
maximum of the salary range)if the employee's performance
is determined to exceed expectations
•2-4%base pay increase or lump sum (if employee is at the
maximum of the salary range)if the employee's performance
is determined to be exceptional
Executives
•The executives must at minimum meet expectations in order
to be considered for a COLA
•Base salary can be set within the salary range as
recommended by the supervisor and approved by the General
Manager
•1-2%lump sum if employee's performance is determined to
exceed expectations
•2-4%lump sum if the employee's performance is determined
to be exceptional
Executive Program
In order to implement a change to the application of the COLA
for executive staff,a revised resolution for Department Chiefs
is attached.(Attachment C)The resolution currently in place
states that Department Chiefs will receive a COLA regardless of
the level of performance.The revised resolution clarifies that
Department Chiefs must receive a performance evaluation rating
of meets expectations or greater on the performance evaluation
to be eligible to receive the COLA.
In addition to meeting with Senior Management and Management
staff,a copy of the pay-for-performance program was also
forwarded to the Otay Water District Employees Association
(OWDEA).Pursuant to the Memorandum of Understanding,the
implementation of this pay-for performance-program is at the
General Manager's discretion and not subject to meet and confer;
however,every effort will be made to implement the program to
maximize the benefit to the District by way of employee
understanding and participation in the program.
FISCAL IMPACT:
The FY06 budget includes $100,000 that will not be utilized this
year.It is proposed to implement this program in the FY07 and
budget $200,000 for the implementation of the program.This
$200,000 will be included in the proposed FY07 budget.In future
years,funding for this program will be included as a part of
the annual budget process.
STRATEGIC GOAL:
Finalize and Implement the District's Recognition and Reward
Program
LEGAL IMPACT
N07JiU)~
General Manager
Attachment A,Committee Action
Attachment B,Pay-for-Performance Program
ATTACHMENT A
Approve Implementation of a Pay for Performance Program and
Resolution #4073 to Set Compensation and Benefits for All
SUBJECT/PROJECT:Department Chiefs
COMMITTEE ACTION:
The Finance/Administration Committee met on March 24 and April
20,2006,and the Engineering/Operations Committee met on April
18,2006.Both Committees support Staff's recommendations to
approve implementation of a Pay for Performance Program and
Resolution #4073 to set compensation and benefits for all
Department Chiefs.
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.
tay Water District
Human Resources
Policy and
Procedures
Section Title:
PAY-FOR-PERFORMANCE POLICY
AND PROCEDURES
PURPOSE
Effective Date:
July 1,2006
ATTACHMENT B
Page 1 of 6
The purpose of the Otay Water District's Pay-for-Performance Program is to utilize incentive pay
to motivate performance and creativity that result in high productivity for the benefit of both the
employee and the District.By linking incentive pay to the District's Strategic Plan,Performance
Measures,Statement of Values,and organizational performance,employees are encouraged to
take a personal interest in the overall success of the organization.Thus,employee motivation to
work harder and smarter is enhanced and efforts directed at continuous improvement are
maintained.
POLICY
-It is the policy of the Otay Water District to acknowledge and reward employees for competent
and meritorious performance of the full range of duties assigned to an employee.It is a reflection
of an employee's experience,continuing growth and development in the classification recognizing
the value of developing experience within the District.The Pay-for-Performance Program is
designed for meritorious performance.The program is also designed to recognize employees
who have made a significant contribution to the District by initiating or providing assistance in the
completion of a program{s}or project{s}and whose performance is consistent.No Pay-for-
Performance increase is warranted nor should it be awarded if there is no growth and
development after completion of the qualifying time period.The program includes:
•Star Performer Program
•Executive Pay-for-Performance Program
ELIGIBILITY
A.The Pay-for-Performance Program is available to all Regular Full-Time and Part-Time
employees.The Star Performer Program is specific to the Represented,Confidential,
Supervisors and Managers;and the Executive Pay-for-Performance Program is specific to
Department Chiefs.
B.Star Performer Program Eligibility:Eligible employees include Represented,Confidential,
Supervisors and Managers.
1.An employee who,based on his/her most recent annual evaluation,is eligible to
receive an In-Range Adjustment,is also eligible for consideration for the Star
Performer Program.An employee whose salary is at the maximum of the salary
range for his/her classification,but who otherwise would have been eligible for an
In-Range Adjustment,based on his/her most recent annual evaluation,is eligible
for consideration for the Star Performer Special Pay.An employee who is
promoted on or before January 1 of the fiscal year for which the Star Performer
Program is being considered will be eligible for consideration for the Star Performer
Program.An employee who has just completed a probationary period as a newly-
hired employee is not eligible for the Star Performer Program but may become
eligible in all subsequent years.
2.Eligibility for the Star Performer Program is not a guarantee that the employee will
receive a Star Performer Increase or Star Performer Special Pay.These are
granted only as an award for meritorious performance.Star Performer Increases or
Special Pay shall be recommended and shall be reviewed by the Department Chief
and Assistant General Manager in conjunction with the employee performance
evaluation.
C.Executive Pay-far-Performance Program Eligibility:
Department Chiefs.
Eligible employees include
1.The employee's most recent annual overall evaluation rating will be considered in
determining eligibility to the Executive Pay-far-Performance Program.A minimum
of Meets Expectations is needed in the overall evaluation rating in order to be
eligible for consideration for the Executive Pay-far-Performance Program.An
employee whose salary is at the maximum of the salary range for his/her
classification,but who otherwise would have been eligible for Base Pay Salary
Increase,based on his/her most recent annual evaluation is eligible for
consideration for the One-Time Bonus Payment program.An employee who is
promoted or hired on or before January 1 of the fiscal year for which the Executive
Pay-far-Performance Program is being considered will be eligible for consideration
for the Executive Pay-far-Performance Program.
2.Eligibility for the Executive Pay-far-Performance Program is not a guarantee that
the employee will receive a Cost of Living Increase,Base Pay Salary Increase or
One-Time Bonus Payment.These are granted only as an award for meritorious
performance.Cost of Living Increases,Base Pay Increases or One-Time Bonus
Payments shall be recommended and shall be reviewed by the Assistant General
Manager and/or General Manager in conjunction with the employee's performance
evaluation.
2
PROCEDURE
A.Star Performer Program
The Star Performer Program consists of the following:
•Star Performer Increase
•Star Performer Special Pay (Lump Sum)
1.Qualifying Time Period and Performance Goals
At the beginning of each fiscal year,every Division must set performance goals
consistent with the District's Strategic Plan and Performance Measures with each
employee for the upcoming fiscal year (July 1 through June 30).Goals will be set
so that each goal is difficult enough to present a challenge to employees,but not to
the extent that the goal is perceived as impossible to achieve.Goals can also be
created in an effort to support and pursue other priorities of the District,Department
and Division.
2.Cost of Living Adjustment and In-Range Adjustment
Pursuant to the MOU for represented employees and Board Resolution for
Managers and Supervisors,employees may be eligible for a Cost of Living
Allowance (COLA).In addition,the above mentioned employees may also be
eligible for an In-Range Adjustment of up to 3%.
3.Star Performer Increase
a.The District encourages employees to perform their jobs to the fullest
potential.As a reward for Exceeding Expectation on performance,a Star
Performer increase of 1%-2%may be granted to an employee who has
clearly exceeded expectations in his/her performance and whose most
recent annual overall performance rating is Exceeds Expectations,in
addition to the In-Range Adjustment increase of 3%,resulting in an overall
increase of 4%-5%.The additional 1%-2%may be awarded in September
of each fiscal year with the General Manager's approval.
Performance Rating
Exceeds Expectations
Recommended Increase
1%-2%
b.As a reward for Exceptional performance,a Star Performer increase of 2%~
4%may be granted to an employee who has clearly demonstrated
sustained exceptional performance and whose most recent annual overall
performance rating is Exceptional,in addition to the In-Range Adjustment
increase of 3%resulting in an overall increase of 5%-7%.The additional
2%-4%may be awarded in September of each fiscal year with the General
3
Manager's approval.
Performance Rating
Exceptional
Recommended Increase
2%-4%
c.An employee may not receive a Star Performer Increase that would place
his/her salary above the maximum of the salary range for his/her
classification.
3.Star Performer Special Pay (Lump Sum)
a.An employee who has reached the maximum of his/her salary range,but
who has demonstrated performance that would otherwise merit a Star
Performer Increase,may receive a one-time lump sum as a percentage of
his/her base annual salary,in September of each fiscal year:
Performance Rating
Exceeds Expectations
Exceptional
Recommended Lump Sum
1%-2%
2%-4%
b.The standards for determining whether an eligible employee will receive Star
Performer Special Pay are the same as those that are applied to the
consideration of Star Performer Increases.
c.Conditions:The following conditions are applicable to Star Performer
Special Pay.
•Special Pay shall not be included in base pay.
•Special Pay shall not be cumulative.
•An employee may receive Special Pay in each annual evaluation cycle
that he/she is eligible for the Star Performer Program and remains at the
maximum of his/her salary range.
•An employee who is hired at or promoted at the maximum of the salary
range may receive Special Pay in each annual evaluation cycle that
he/she is eligible for the Star Performer Program and remains at the
maximum of his/her salary range.
4.Performance Review and COLA For Supervisors and Managers
a.In addition to the employee's annual performance evaluation a 3600
Review may be implemented in the upcoming performance assessment
and be part of the eligibility criteria for Supervisors and Manager for the
Star Performer Program.The 3600 Review would require the immediate
supervisor to solicit input regarding working relationships and performance
from the employee's peers and subordinates as appropriate,utilizing the
3600 Review form.
4
b.In subsequent years,the Cost of Living Allowance may be implemented
similar to the Executive Pay-for-Performance Program in which an
employee must receive a performance evaluation rating of Meets
Expectation or greater on his/her annual performance evaluation to be
eligible to receive a Cost of Living Allowance on July 1 of each fiscal year.
B.Executive Pay-for-Performance Program
The Executive Pay-for-Performance Program includes:
•Cost of Living Increase
•Base Pay Salary Increase
•One-Time Bonus Payment (Lump Sum)
1.Qualifying Time Period and Performance Goals
At the beginning of each fiscal year,every Division must set performance goals
consistent with the District's Strategic Plan and Performance Measures with each
employee for the upcoming fiscal year (July 1 through June 30).Goals will be set
so that each goal is difficult enough to present a challenge to employees,but not to
the extent that the goal is perceived as impossible to achieve.Goals can also be
created in an effort to support and pursue other priorities of the District,Department
and Division.
2.Cost of Living Allowance
An employee that receives a performance evaluation rating of Meets
Expectations or greater on his/her annual performance evaluation shall be
eligible to receive a Cost of Living Allowance on July 1 of each fiscal year.The
Cost of Living Allowance shall be determined by the agreed upon resolution
established for unrepresented staff.
3.Base Pay Salary Increase
a.The District encourages employees to perform their jobs to the fullest
potential.As a reward for Meeting Expectation,Exceeding Expectation or
receiving an Exceptional rating on a performance evaluation,a Base Pay
Salary Increase within the employee's salary range with recommendation
from the supervisor may be granted.The Base Pay Salary Increase may be
awarded on July 1 of each fiscal year with the General Manager's approval.
b.An employee may not receive a Base Pay Salary Increase that would place
his/her salary above the maximum of the salary range for his/her
classification.
5
4.One-Time Bonus Payment (Lump Sum)
a.An employee that receives an Exceeds Expectation or an Exceptional
performance rating on their most recent performance evaluation may receive
a one-time lump sum payment as a percentage of his/her base annual
salary,in September of each fiscal year.Eligible employees include those
that are within their salary range and those that are at the maximum of their
salary range.
Performance Rating
Exceeds Expectations
Exceptional
Recommended Lump Sum
1%-2%
2%-4%
b.Conditions:The following conditions are applicable to One Time Bonus
Payment.
•Bonus Pay shall not be included in base pay.
•Bonus Pay shall not be cumulative.
•An employee may receive Bonus Pay in each annual evaluation cycle
that he/she is eligible for the Base Pay Salary Increase program.
•An employee who is hired at or promoted at the maximum of the salary
range may receive a One-Time Bonus Payment in each annual
evaluation cycle that he/she is eligible for the Pay-for-Performance
Program.
5.Performance Review
In addition to the employee's annual performance evaluation a 3600 Review may
be implemented in the upcoming performance assessment and be part of the
eligibility criteria for Executive Staff for the Pay-for-Performance Program.The
3600 Review would require the immediate supervisor to solicit input regarding
working relationships and performance from the employee's peers and
subordinates as appropriatE?,utilizing the 3600 Review form.
6
ATTACHMENT C
RESOLUTION NO.4073
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
OTAY WATER DISTRICT
TO SET COMPENSATION AND BENEFITS FOR ALL
DEPARTMENT CHIEFS
WHEREAS,The Board of Directors set compensation and
benefits for Department Chiefs;and
WHEREAS,the District has developed a Pay-for-Performance
Program to provide incentive pay to motivate performance and
creativity that result in high productivity for the benefit of
both the employee and the District;and
WHEREAS,the Otay Water District board desires to implement
a Pay-for-Performance program for department chiefs;and
WHERAS,This resolution supersedes any previous resolutions
setting compensation and benefits for Department Chiefs;and
WHEREAS,the purpose of this resolution is to provide
recognition and to maintain the ability to recruit and retain
qualified candidates for Department Chiefs.
NOW,THEREFORE,BE IT RESOLVED by the Board of Directors of
the Otay Water District as follows:
1.That the Board of Directors approve the same across-
the-board increases each year for Department Chiefs that are
provided to the represented employees pursuant to the negotiated
1
ATTACHMENT C
Memorandum of Understanding,July 1,2003 -June 30,2008
provided that the Department Chief receives a performance
evaluation rating of Meets Expectations or greater on his/her
annual performance evaluation.If the Department Chief is
performing below expectations,no across-the-board increase will
be granted.
2.That the same health care plan design changes,cost-
sharing,and retiree health care coverage implemented for
represented employees will apply to unrepresented employees.
4.That the General Manager will have the authority to
provide salary adjustments within the approved salary ranges
based on performance.
PASSED,APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a regular meeting held this 3rd of
May,2006.
President
ATTEST:
Secretary
2
AGENDA ITEM 8
STAFF REPORT
1DIV.
NO.
P2008
May 3,2006
PROJECT I
SUBPROJECT:
MEETING DATE:
-Randy Klaahsen,
Patrick Vaughan,
Senior Civil Engineer I
Mehdi A,rbabian,Chief of Engineering and Pla~i~~;;{ci)'
Rod Posada,Chief of Development Services~~
Manny ~~..:-,
Assistant G~h~~~l Manager,Engineering and Operations
Adjustment of the Budget for the 980-2 Pump Station for FY
05-06 in the amount of $555,000
SUBJECT:
APPROVED BY:
(Ass!. GM):
APPROVED BY:
(Chief)
TYPE MEETING:Regular Board
SUBMITTED BY:
GENERAL MANAGER'S RECOMMENDATION:
That the Board increase the budget for the 980-2 Pump Station by
$555,000 in FY 05-06 for a total project budget of $8,055,000,
an increase of 7.4%.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization to increase the project budget by
$555,000 in FY 05-06.
ANALYSIS:
The 980-2 Pump Station is in the final stages of construction.
During the preparation of the budget for FY 06-07,staff
realized that there was a shortfall of funds to complete the
project.The budget for the project had not been adjusted since
the design was completed in FY 04-05.Staff has prepared Table 1
showing expenditures and commitments vs budget.
On September 1,2004 the Board awarded the construction contract
to Spiess Construction Company in the amount of $6,053,800.The
Board also authorized District staff to pre-purchase the four
pumps required for the project directly from the manufacturer,
Peerless Pump Company,in the amount of approximately $330,000.
The actual cost for the pumps was $355,575.The increase
resulted from tax charges.
On October 6,2004 the Board awarded the construction management
contract to Richard Brady &Associates in the amount of
$444,675.
Overall,this project has been very successful.The change order
incidence has amounted to $16,200 or 0.22%of the project's
total cost.The industry average is between 5%to 12%.During
the budget preparation,a few items were underestimated such as
staff time,construction management,change orders,and
contingency.In addition,the SDG&E's records for main power
feed did not accurately reflect the as-built conditions,which
resulted in additional project costs.
To help prevent future budget increases,staff has implemented a
number of measures,including working closer with Finance to
incorporate all committed dollars into project accounting.
Also,staff has developed a standard budget estimating sheet
that depicts level of efforts for planning,design,and
construction costs.
Staff will also verify in the field that all critical utilities
are available,and will proactively work with SDG&E and others
to confirm and obtain services early on in every project.
TABLE 1
EXPENSES &COMMITMENTS
4/11/06
Pl $53 0.72%
Desi $792 10.57%
Construction Contract $6 053 800 80.72%
Pre-urchase Pum s $355,575 4.74
BUDGET FY 05-06
·~~~··:I~~~it~~~h~~·~~~i~·if·T·"i~~....···01..$ij6;~i~t······~:~~:
MiscellanE:l lJ..l:l..?..........................m......m..Jm~.~..'...~??..I....m...O.06%
..c;ha...:t?-g~9.:r::9~~~......i $1,200 ,0 .02%.~9'~.!.?E~P~~.~?·?~.~·r····s·uppiy~.?~.kl...$4:2 ,·500·1········0:···5·7%
SUB TOTAL $7,978,869 106.3
ADJUSTMENT REQUEST
TOTAL
Contingency for Start-up
Time
~~.~?:~..~9.g.~~~9~.9..E9~.E ...
Rental Pum Contin enc
,,/-'~/~/FISCAL IMPACT:/~//7 I 7
//
The approved budget for the 980-2 Pump Station is $7,500,000.
Commitments to date are $7,978,869.
Staff requests increasing the budget by $555,000 to $8,055,000.
Finance has determined that 100%of the funding is available
from the Expansion Fund.
STRATEGIC GOAL:
This project supports the District's mission statement and the
District's Strategic Goal to:"Design and construct new
infrastructure -satisfy current and future water needs for
Potable,Recycled,and Wastewater Services."
LEGAL IMPACT:
None.
General Manager
Attachment
PV/RP
P:\WORKING\CIP 008\W0 30075\Staff Reports\BD 5-3-06,Adjust Budget IPVj .doc
ATTACHMENT A
r·s"LiBJECTipROJEcT:TAdJ~·s tment of the Budget for the
I !05-06 in the amount of $555,000
L........1 .
COMMITTEE ACTION:
980-2Pl1~p···Station for Fyi
...1
On April 18,2006,the Engineering and Operations Committee met
and supported staff's recommendation.
On April 20,2006,the Finance and Administration Committee met
and supported staff's recommendation.
NOTE:
The "Committee Action"is written in anticipation of the
Committee moving the item forward for board approval.This
report will be sent to the Board as a committee approved item,
or modified to reflect any discussion or changes as directed
from the committee prior to presentation to the full board.