Loading...
HomeMy WebLinkAbout07-23-24 F&A Committee Packet1 OTAY WATER DISTRICT FINANCE AND ADMINISTRATION COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM TUESDAY JULY 23, 2024 1:00 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 INCLUDING AN ITEM ON TODAY’S AGENDA DISCUSSION ITEMS 3.ADOPT RESOLUTION NO. 4443 TO CONTINUE WATER AND SEWER AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL YEAR 2024-2025 TO BE COLLECTED THROUGH PROPERTY TAX BILLS (ANDREA CAREY) [5 minutes] 4.ADOPT ORDINANCE NO. 593 TO APPROVE THE PROPOSED CHANGES TO SECTION 23, NON-RESPONSIBILITY OF DISTRICT, AND SECTION 38, SERVICE FOR FIRE PROTECTION SYSTEMS (ANDREA CAREY) [5 minutes] 5.AUTHORIZE AN ADDENDUM TO AMEND THE SCOPE OF SERVICES, LENGTH OF TIME, AND TOTAL COMPENSATION FOR THE CONSULTING SERVICES AGREEMENT BY AND BETWEEN THE OTAY WATER DISTRICT AND BURKE, WILLIAMS & SORENSEN, LLP IN AN AMOUNT NOT-TO-EXCEED $115,000 (SUZIE LAWSON) [5 MINUTES] 6.ADJOURNMENT 2 BOARD MEMBERS ATTENDING: Tim Smith, Chair Jose Lopez All items appearing on this agenda, whether or not expressly listed for action, may be de- liberated and may be subject to action by the Board. The agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the agenda and attachments are also available by contacting the District Secretary at (619) 670-2253. If you have any disability which would require accommodations to enable you to participate in this meeting, please call the District Secretary at 670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on July 19, 2024, I posted a copy of the foregoing agenda near the reg- ular 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 July 19, 2024. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 7, 2024 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Kevin Koeppen, Assistant Chief of Finance Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4443 to Continue Water and Sewer Availability Charges for District Customers for Fiscal Year 2024-2025 to be Collected Through Property Tax Bills GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution No. 4443 to continue water and sewer availability charges for District customers for fiscal year 2024-2025 to be collected through property tax bills. COMMITTEE ACTION: See Attachment A. PURPOSE: That the Board consider the adoption of Resolution No. 4443 to continue water and sewer availability charges for District customers for fiscal year 2024-2025 to be collected through property tax bills. ANALYSIS: The District levies availability charges each year on property in both developed and undeveloped areas. State Water Code Section 71630- 71637 authorizes the District to assess such availability charges. To place these charges on the tax roll, the County of San Diego (the AGENDA ITEM 3 2 County) requires the District to provide a resolution authorizing the charges. In late July of each year, the District provides a resolution along with the listing of charges by parcel to the County’s property tax services department. For a parcel to be assessed a sewer availability charge, it must be annexed into the District’s sewer Improvement District No. 18. Sewer availability charges are either a fixed fee of $10 for parcels one acre or less or $30 per acre for parcels greater than one acre. Unlike sewer, water availability charges are assessed on all parcels within the District’s boundaries and do not require annexation into an improvement district. For most parcels, water availability charges are the same as those shown for sewer availability above; however, there are some exceptions. Parcels greater than one mile from a District pipeline, identified as an agricultural preserve, in a floodplain, or have a 30% slope are charged $3 per acre. Parcels identified as open space are charged 50% of the normal assessment fees ($5 for those one acre or less or $15 per acre for those greater than an acre). Current legislation provides that any amount up to $10 per parcel (one acre or less) is for general use and any amount over $10 per parcel ($30 per acre for parcels over one acre) is restricted, to be expended in and for that improvement district. The District uses amounts over $10 per parcel to develop water and sewer systems within the Improvement Districts where the funds are collected. In accordance with legislation, the District places amounts up to $10 per parcel in the General Fund. FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer The availability charges, as budgeted, will generate approximately $1.2 million in revenue. STRATEGIC GOAL: This revenue source will help the District meet its fiscal responsibility to its ratepayers. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4443 ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 4443 to Continue Water and Sewer Availability Charges for District Customers for Fiscal Year 2024-2025 to be Collected Through Property Tax Bills COMMITTEE ACTION: 1 RESOLUTION NO. 4443 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT CONTINUING PREVIOUSLY ESTABLISHED WATER AND SEWER AVAILABILITY CHARGES FOR FISCAL YEAR 2024-2025; REQUESTING THE COUNTY TO COLLECT SUCH AVAILABILITY CHARGES ON THE 2024-2025 SECURED TAX ROLL AND TAKING OTHER RELATED ACTIONS WHEREAS, the Otay Water District (herein "District") is a member of the San Diego County Water Authority and the Metropolitan Water District of Southern California and, as a member, the District is entitled to purchase water for distribution within the District and water so purchased is available to property in the District that is also within the San Diego County Water Authority and the Metropolitan Water District of Southern California, without further need for annexation to any agency; and WHEREAS, Improvement District No. 18 has been formed within the Otay Water District (herein "District") and sanitary sewers have been constructed and sewer service is available to land within the said District; and WHEREAS, in consideration of the benefit that water availability confers upon property within the District, and in further consideration of the need for revenue to pay the cost of water storage and transmission facilities which directly and specifically benefit property within the District, the District has previously determined that water availability charges be fixed and established under applicable provisions of law; and Attachment B 2 WHEREAS, in consideration of the benefit which sewer availability confers upon property within Improvement District No. 18, and in further consideration of the need to pay the cost of sanitary sewers which directly and specifically benefit those properties, the District has previously determined that sewer availability charges be fixed and established for Improvement District No. 18 as provided under applicable provisions of law; and WHEREAS, the District desires to continue the collection of such water and sewer availability charges without increases or revisions in methodology or application. NOW, THEREFORE, the Board of Directors of the Otay Water District resolves, determines and orders as follows: 1. SCHEDULE OF WATER CHARGES (A) The water availability charges previously fixed and established are hereby continued for Fiscal Year 2024-2025 at the existing rates, as follows: (1) In Improvement District No. 22 the charge shall be $30.00 per acre of land and $10.00 per parcel of land less than one acre. (2) For land located outside an improvement district and within one mile of a District water line, the charge shall be $10.00 per acre of land and $10.00 for each parcel less than one acre. (3) For land located outside an improvement district and greater than one mile from District facilities, the 3 charge shall be $3.00 per acre of land and $3.00 for each parcel less than one acre. (B) Modifications The charges provided for in subparagraphs (1) through (3) in (A) above shall be modified upon petition by the property owner where the property does not receive water from the District as follows: (1) where a parcel of land or a portion thereof is within an open space easement approved by San Diego County, the charge for such parcel or portion thereof shall be fifty percent (50%) of the charge determined pursuant to paragraph (A), provided the owner files with the District proof, satisfactory to the District, that said parcel of land or portion thereof is within such a designated permanent open space area; (2) where a parcel of land or portion thereof is in an agricultural reserve under a Land Conservation Contract with the County of San Diego, pursuant to the Land Conservation Act of 1965 as amended, the charge for such parcel shall be $3.00 per acre, provided the owner files with the District proof, satisfactory to the District, that said parcel of land or portion thereof is within such an agricultural preserve; (3) where a parcel of land or a portion thereof is within an area designated as a floodplain by the County of San Diego, the charge for such a parcel or portion 4 thereof shall be $3.00 per acre, provided the owner files with the District proof, satisfactory to the District, that said parcel of land or portion thereof is within such designated floodplain; and (4) where a parcel of land or portion thereof exceeds a 30% slope, and where such is not within a legal subdivision, lot-split or planned residential development, the charge for the slope portion shall be $3.00 per acre, or if such a parcel is less than one acre and more than one-half of the area exceeds 30% slope, $3.00 for the parcel, provided the owner files with the District proof, satisfactory to the District, that said parcel of land or portion thereof meets or exceeds the slope. (C) Exceptions The charges provided for in (A) and (B) above shall not apply, upon petition by the property owner, to the following: (1) land located within an area designated as a floodway by the County of San Diego; (2) land designated as a vernal pool area by a govern- mental agency authorized to make such a designation and which designation prohibits use of such area for any purpose; (3) land owned by non-profit, tax-exempt conservation organizations specializing in identifying and protecting the natural habitat of rare species; or 5 (4) land that is located within the boundaries of the Otay Water District but not within the boundaries of the Metropolitan Water District of Southern California and the San Diego County Water Authority. 2. SCHEDULE OF SEWER CHARGES (A) Sewer standby assessment or availability charges are hereby fixed and established for Fiscal Year 2024-2025 as follows: (1) In Improvement District No. 18 the charges shall be $30.00 per acre of land and $10.00 per parcel of land less than one acre. The preceding charges shall not apply, upon petition by the property owner, to the following: (a) any portion of a parcel which is undeveloped and maintained in its natural state within an Open Space Area as a requirement under the San Diego County General Plan, provided the owner of such parcel files proof, satisfactory to the District, of such designed Open Space Area; (b) any portion of a parcel located within an area designated by the County of San Diego as a floodway or floodplain; or (c) any portion of a parcel of land which exceeds a slope of 30% and which is not within a legal subdivision, lot split or planned lot split or planned residential development. 6 3. DEFERRALS (A) Deferral of Charge, Purpose Situations may arise when an owner of a parcel of land does not use and has no present intention of using water and/or sewer provided by the District on a parcel of land, as defined in Section 4. The purpose of this section is to permit an evaluation by the District, on a case-by- case basis, of the circumstances which pertain to such situations to determine whether a deferral of charges should be approved according to the terms and conditions herein provided. Any owner of a parcel of land who believes that the amount of the water and/or sewer availability charges fixed against such parcel should be deferred may file an application with the District for deferral of the charge, as follows: (1) Application The application shall include a statement describing the circumstances and factual elements which support the request for deferral. (2) The General Manager shall consider the request within sixty (60) days after the filing of a completed application. If the application for deferral meets the established criteria, the General Manager may decide whether to approve the request and order the charge deferred accordingly. If the request is denied, the applicant shall be notified in writing stating the reasons for the denial. (B) Appeal to Board of Directors If the General Manager denies a request, the owner may file an appeal with the Board of Directors within sixty (60) days after such denial. No new 7 application for deferral need be considered by the General Manager until expiration of twelve (12) months from the date of a denial, unless differently directed by the Board of Directors. (C) Deferred Charges on Restricted Parcels, Criteria The levy of the charge may be deferred annually as to any parcel of land which meets each of the following criteria: (1) The owner of such parcel makes a timely application requesting deferral of the charge. (2) The parcel, which is the subject of the request, will become subject to enforceable restrictions which prohibits the connection to the District sewer system or use of water on the parcel, except by means of natural precipitation or runoff; provided, however, if considered appropriate by the General Manager, local water may be used for limited domestic stock watering and irrigation uses. (3) The owner executed a recordable agreement which includes provisions that: (a) set forth the enforceable restrictions pertinent to the subject parcel; (b) the agreement may be terminated upon written request by the owner and payment of all deferred water and/or sewer availability charges, plus interest thereon, compounded annually, and accruing at the legal rate from the date such charges would have been otherwise due and payable; 8 (c) no water and/or sewer service from the District shall be provided to such parcel for a period of ten (10) years after the total amount due for the charges deferred, plus annually compounded interest, is paid in full to the District, unless a surcharge penalty as described below is paid to the District prior to connection of any water and/or sewer service; (d) if the surcharge is not paid, during the ten (10) year period, while water and/or sewer service is not available to the subject land, the owner shall pay all annual water or availability charges as fixed; and (e) contains such other provisions considered by the General Manager to be appropriate. (D) Surcharge Upon termination of the deferral agreement, an owner may elect to receive water and/or sewer service prior to the expiration of the ten (10) year penalty period upon payment of a surcharge. The surcharge shall be equal to the amount of the annual water and/or sewer availability charges fixed for the parcel(s) of land in the year of election to receive water and/or sewer service multiplied by the number of years remaining of the ten (10) year penalty period. This surcharge shall also apply if a property owner develops a parcel that is subject to a deferral agreement without termination of said agreement. 9 (E) Enforcement Procedures In order to insure that terms and conditions of the recordable agreement are being met, the General Manager shall: (1) Maintain a record of all parcels approved for deferral of the water assessments or availability charges. (2) Report to the Board of Directors any instances where the terms of the agreement are being violated. (3) Take such other actions or procedures considered appropriate. 4. DEFINITION OF PARCEL The term "parcel" as used herein shall mean a parcel of land as shown on the assessment rolls of the County Assessor of San Diego County as of March, 2024. 5. NOTICE AND REQUEST TO THE BOARD OF SUPERVISORS AND AUDITOR As provided in Sections 71634 to 71637, on or before the third Monday in August, 2024, the Secretary of this District shall furnish, in writing to the Board of Supervisors of San Diego County and to the County Auditor, a description of the land within the District upon which availability charges are to be levied and collected for Fiscal Year 2024-2025 together with the amount of the assessments or charges. At the time and in the manner required by law for the levying of taxes for county purposes, the Board of Supervisors of San Diego County shall levy, in addition to taxes it levies, water and/or sewer availability charges in the amounts fixed by this Resolution for the respective parcels of land described in Section 1 of this Resolution. All county officers charged with the duty of collecting taxes shall collect 10 the charges with the regular property tax payments in the same form and manner as county taxes are collected. Such availability charges are a lien on the property with respect to which they are fixed. Collection of the charges may be enforced by the same means as provided for the enforcement of liens for state and county taxes. 6. CERTIFICATION TO COUNTY BOARD OF SUPERVISORS The District certifies that this Resolution complies with the provisions of Article XIIID of the California Constitution in that the availability charges are existing charges first set by the Board of Directors of the District prior to November 6, 1996. At the time the availability charges were initially established, the District followed the applicable provisions of law then in effect, and the District has continued to comply with such provisions, including any requirements for notices or hearings, as from time to time in effect. Therefore, pursuant to Section 71632 and Section 71638 of the California Water Code, as currently in effect, the District may continue the availability charges in successive years at the same rate. The District further certifies that the charge is not increased hereby and the methodology for the rate is the same as in previous years. The charge is imposed exclusively to finance the capital costs, maintenance, and operating expenses of the water or sewer system of the District, as applicable. 7. CERTIFIED COPIES The Secretary of this District shall deliver certified copies of this Resolution to the Board of 11 Supervisors and to the Auditor of San Diego County with the list of charges described in Section 4 above. 8. CORRECTIONS; OTHER ACTIONS The General Manager of the District is hereby authorized to correct any clerical error made in any assessment or charge pursuant to this Resolution and to make an appropriate adjustment in any assessment or charge made in error. Furthermore, the General Manager and the Secretary of this District are hereby directed to take any further actions and deliver such documents and certificates as necessary to carry out the purpose of this Resolution. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 7th day of August, 2024. Ayes: Noes: Abstain: Absent: President ATTEST: Secretary 12 I HEREBY CERTIFY that the foregoing Resolution No. 4443 was duly adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at a regular meeting thereof held on the 7th day of August, 2024 by the following vote: Ayes: Noes: Abstain: Absent: District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 7, 2024 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Adopt Ordinance No. 593 to Approve the Proposed Changes to Section 23, Non-Responsibility of District, and Section 38, Service for Fire Protection Systems GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 593 to approve the proposed changes to Section 23, Non-Responsibility of District, and Section 38, Service for Fire Protection Systems. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board, for consideration, proposed changes to Section 23 and Section 38 and request the Board approve these changes by adopting Ordinance No. 593. BACKGROUND: In order to protect the public water supply, the State of California established regulations to prevent backflow incidents into public water systems. Previously, the Department of Public Health’s California Administrative Code, Title 17, provided a framework for agencies to establish regulations related to cross-connection control and backflow protection. In 2017, Assembly Bill 1671 was signed into law and mandated the State Water Resources Control Board (SWRCB) to adopt standards for backflow protection and cross-connection control. On December 19, 2023, the SWRCB adopted the Cross-Connection Control Policy Handbook (CCCPH). The CCCPH went into effect on July 1, 2024, and, as a result, the Title 17 cross-connection control standards will be repealed on October 1, 2024. AGENDA ITEM 4 In response to the new regulations, staff is recommending changes to Sections 23 and 38 of the District’s Code of Ordinances to ensure the District is in compliance with the regulations set forth in the CCCPH. Additionally, minor changes to both sections are being requested to reflect current products and practices. ANALYSIS: Section 23 Section 23, Non-Responsibility of District, details the District’s cross-connection program and includes multiple references to Title 17.Staff is recommending updating these references to the CCCPH. In addition, staff recommends adding another type of protection as outlined in the CCCPH. A double check valve backflow prevention assembly will now be allowed in very limited circumstances, such as single-family residential homes with fire protection. Unrelated to the CCCPH, the District is moving to a new backflow tracking software system, which will be entirely online. Therefore, staff is also recommending changes that reflect electronic test submissions and updates to the testing schedule. Section 38 Section 38, Service for Fire Protection Systems, outlines the rules and regulations for commercial and industrial properties, as well as multi-family and single-family residential properties with internal fire protection systems. The CCCPH has expanded backflow regulations for single-family residential properties with fire protection systems. Prior to the adoption of the CCCPH, there was no requirement for backflow protection at these homes. As currently written, the CCCPH requires single-family residential properties to have an above- grade double check valve backflow prevention assembly unless all of the following criteria are met: 1)The user premises has only one service connection to the PWS; 2)A single service line onto the user premises exists that subsequently splits on the property for domestic flow and fire protection system flow, such that the fire protection system may be isolated from the rest of the user premises; 3)A single, water industry standard, water meter is provided to measure combined domestic flow and fire protection system flow; 4)The fire protection system is constructed of piping materials certified as meeting NSF/ANSI Standard 61; and 5)The fire protection system’s piping is looped within the structure and is connected to one or more routinely used fixtures (such as a water closet) to prevent stagnant water. In response to this requirement, staff recommends including this language in Section 38. This will ensure all new developments either include the five elements above or a backflow prevention assembly. Over the past several months, the District’s public services division has been communicating these new requirements to the developer community to ensure home builders are aware of what is required on new developments. FISCAL IMPACT: Joe Beachem, Chief Financial Officer While there is little financial impact to the District directly from the recommended section updates, the adoption of the CCCPH will result in additional oversight and expansion of the District’s backflow prevention program. The code changes to Section 38 provide clarity to the home builders, so that they can plan for and finance the cost of abiding by the new requirements. STRATEGIC GOAL: These updates support the District’s Strategic Plan Objective, Potable Water Compliance Rate, which aims to ensure that 100% of all health-related drinking water standards are met quarterly and annually. LEGAL IMPACT: None. Attachments: A)Committee Action B)Ordinance No. 593 Exhibit 1 – Section No. 23 Strike-through Exhibit 2 – Section No. 38 Strike-through C)Section No. 23 Proposed D)Section No. 38 Proposed ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 593 to Approve the Proposed Changes to Section 23, Non-Responsibility of District, and Section 38, Service for Fire Protection Systems COMMITTEE ACTION: 1 ORDINANCE NO. 593 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 23, NON-RESPONSIBILITY OF DISTRICT, 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 23, Non- Responsibility of District, and Section 38, Service for Fire Protection Systems be amended as per Exhibit 1 and Exhibit 2 to this ordinance. NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 23, Non-Responsibility of District (Attachment C) and Section 38, Service for Fire Protection Systems (Attachment D) of the Code of Ordinances shall become effective August 7, 2024. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 7th day of August 2024, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: __________________________ District Secretary Attachment B 23-1 SECTION 23 NON-RESPONSIBILITY OF DISTRICT 23.01 INTERRUPTIONS OF WATER SERVICE District does not guarantee continuous delivery of water on demand. From time to time it may be necessary for the District to shut off the flow of water in any of its water systems. Except in emergencies, such stoppages will not be made without prior notice to the customers involved. District shall not assume any responsibility for loss or damages which may occur due to interruption of water service. 23.02 PRIVATELY-OWNED WATER LINES The District assumes no responsibility for the delivery of water through privately-owned pipelines or systems, nor shall it assume any responsibility for damages resulting from the operation of any such system even though water may be received from a district water distribution system. 23.03 WATER PRESSURE REGULATION A.Customer Responsibility. The District shall assume no responsibility for water pressure regulation within a customer's service area. The customer shall be responsible for providing adequate safeguard measures for the customer's water system wherever pressure regulation is necessary. B.Requirement for Installation in New Construction. Customers making application for water service for new construction for residential, commercial or industrial use shall be required to install an appropriate pressure regulation device for such service. 23.04 CROSS-CONNECTIONS AND BACKFLOW DEVICES State Regulations for Cross-Connections The California State Water Resources Control BoardDepartment of Public Health has issued rRegulations rRelatinged to cCross-cConnections, outlined in the Cross- Connection Control Policy Handbook, (California Administrative Code, Title 17 - Public Health) for the purpose of safeguarding drinking water supplies by preventing backflow into public water systems. It is unlawful for any person, firm, or corporation at any time to make or maintain, or cause to be made or main- tained, temporarily or permanently, for any period of time whatsoever, any cross-connection between plumbing pipes or water fixtures being served with water by the District water EXHIBIT 1 23-2 department and any other source of water supply; or to main- tain any sanitary fixtures or other appurtenances or fixtures which, by reason of their construction, may cause or allow back-flow of water or other substances into the water supply system of the District and/or the service of water pipes or fixtures of any consumer of the District. A.Definitions: For a complete listing, see the California State Water Resources Control Board’s Cross-Connection Control Policy Handbook. Administrative Code, Title 17, Public Health. 1.Air-Gap Separation (AG): The term "air-gap separation" means a physical break between a supply pipe and a receiving vessel. The air-gap shall be at least double the diameter of the supply pipe measured vertically above the top rim of the vessel, in no case less than one inch. 2.Approved Backflow Prevention Device: The term "approved backflow prevention device" shall mean devices which have passed laboratory and field evaluation tests performed by a recognized testing organization which has demonstrated their competency to perform such test to the California Department of Health Services and the Otay Water District. 3.AWWA Standard: The term "AWWA Standard" means an official standard developed and approved by the American Water Works Association (AWWA). 4.Backflow: The term "backflow" shall mean a flow condition, caused by a differential in pressure that causes the flow of water or other liquids, gases, mixtures or substances into the distributing pipes of a potable supply of water from any source or sources other than an approved water supply source. Back-siphonage is one cause of backflow. Back pressure is the other cause. 5.Cross-Connection: The term "cross-connection" as used in this Ordinance means any unprotected actual or potential connection between a potable water system used to supply water for drinking purposes and any source or system containing unapproved water or a substance that is not or cannot be approved as safe, wholesome, and potable. Bypass arrangements, jumper connections, removable sections, swivel or changeover devices, or other devices through which backflow could occur, shall be considered to be cross-connections. 23-3 6.Double Check Valve Assembly: The term "double check valve assembly" means an assembly of at least two independently acting check valves, including tightly closing shut-off valves, on each side of the check valve assembly and test cocks available for testing the water tightness of each check valve. 7.Reduced Pressure Principle Backflow Prevention Device (RP): The term "reduced pressure principle backflow prevention device" means a device incorporating two or more check valves and an automatically operating differential relief valve located between the two check valves, a tightly closing shut-off valve on each side of the check valve assembly, and equipped with necessary test cocks for testing. 8.Reduced Pressure Detection Assembly (RPDA): Same as RP except as approved for fire services. 9.Service Connection: The term "service connection" refers to the point of connection of a user's piping to the Otay Water District facilities. B.General Provisions 1.Unprotected cross-connections with the public water supply are prohibited. 2.Whenever backflow protection has been found necessary, the District will require the water user to install an approved backflow prevention device, by and at his/her expense, for continued services or before a new service will be granted. 3.Wherever backflow protection has been found necessary on a water supply line entering a water user's premises, then any and all water supply lines from the District's mains entering such premises, buildings, or structures shall be protected by an approved backflow prevention device. The type of device to be installed will be in accordance with the requirements of this Ordinance. C.Where Protection is Required 23-4 1.Each service connection from the District water system for supplying water to premises having an auxiliary water supply shall be protected against backflow of water from the premises into the public water system. 2.Each service connection from the District water system for supplying water to any premises on which any substance is handled in such fashion as may allow its entry into the water system shall be protected against backflow of the water from the premises into the public system. This includes commercial accounts, fire service accounts, irrigation accounts, multi-family dwellings, multi-story buildings, complex piping, and locations where the handling of process waters and waters originating from the District water system may be subjected to deterioration in sanitary quality. D.Type of Protection Required 1.The type of protection that shall be provided to prevent backflow into the approved water supply shall be commensurate to the degree of hazard that exists on the consumer's premises. The type of protective device that may be required (listed in an increasing levels of protection) includes: double check valve backflow prevention assemblies, rReduced pPressure pPrinciple bBack- flow pPrevention assembliesDevice (RP), and an aAir-gap separation (AG). The water user may choose a higher level of protection than that required by the District. The minimum types of backflow protection required to protect the approved water supply at the user's water connec- tion to premises with varying degrees of hazard, are given in Table 1 of the California Administrative Code, Title 17, Public HealthAppendix D of the Cross-Connection Control Policy Handbook. Situations which are not covered in Table 1Appendix D shall be evaluated on a case-by-case basis, and the appropriate backflow protection shall be determined by the District. E.Approved Backflow Prevention Devices 23-5 1.Only lead-free backflow prevention devices assemblies which have been approved by the District shall be acceptable for installation by a water user connected to the District's potable water system. 2.The District will provide to any affected cus- tomer, upon their request, a list of approved backflow prevention devices. F.Backflow Prevention Device Installation 1.Backflow prevention devices shall be installed in a manner prescribed in Section 7603, Title 17 of the California Administrative CodeArticle 3 of the Cross-Connection Control Policy Handbook. Location of the devices should be as close as practical to the user's connection. The District shall have the final authority in determining the required location of a backflow prevention device. a.Air-gap Separation (AG) - The air-gap separation shall be located on the user's side of, and as close to, the service connection as is practical. All piping from the service connection to the receiving tank shall be above grade and be entirely visible. No water use shall be provided from any point between the service connection and the air-gap separa- tion. The water inlet piping shall terminate a distance of at least two (2) pipe diameters of the supply inlet, but in no case less than one inch above the overflow rim of the receiving tank. b.Reduced Pressure Principle Backflow Prevention Device (RP) - The approved reduced pressure principle backflow prevention device shall be installed on the user's side of the service connection at a distance consistent with the District's Standard Drawings and Specifications. The device shall be installed a minimum of twelve inches (12") 23-6 but not more than eighteen twenty-four inches (1824") above grade, measured from the bottom of the relief valve and with a minimum of twelve inches (12") side clearance, and twenty-four inches (24”) of clearance on the side of the assembly containing the test cocks. The device shall be installed so that it is readily accessible for maintenance and testing. Water supplied from any point between the service connection and the RP device shall be protected in a manner approved by the District. Additionally, materials and installation shall at all times conform to water agency standards which can be found at www.sdwas.comorg. G.Backflow Prevention Device Testing and Maintenance 1.The owners of any premises on which, or on account of which, backflow prevention devices are installed, shall have the devices tested by a person who has demonstrated their competency in testing of these devices to the District and has been approved by the District. Backflow prevention devices must be tested at least annually and immediately after installation, relocation, or repair. The District may require a more frequent testing schedule if it is determined to be necessary. No device shall be placed back in service unless it is functioning as required. A report testing result submission, in a form acceptable to the District, shall be filed with the Districtmade each time a device is tested, relocated, or repaired. These devices shall be serviced, overhauled, or replaced whenever they are found to be defective and all costs of testing, repair, and maintenance shall be borne by the water user. 2.Initial testing after installation and subse- quent retesting shall at all times conform to water agency standards as outlined in www.sdwas.comorg. 23-7 3.The District will supply affected water users with a list of persons acceptable to the District to test backflow prevention devices. The District will notify affected customers by mail when annual testing of a device is needed and will also supply users with the necessary forms which must be filled outtesting information to be submitted each time a device is tested or repaired. 4.Existing double check valves and pressure vacuum breakers on median strip irrigation areas which function adequately may remain in place, however, as the District no longer recognizes such devices to be commensurate with the degree of potential hazard, failures of these devices will necessitate their replacement with a reduced pressure principal backflow prevention device (RP). H.Backflow Prevention Device Removal 1.Written approval must be obtained from the District before a backflow prevention device is removed, relocated, repaired or replaced. a.Removal: The use of a device may be discontinued and device removed from service upon presentation of sufficient evidence to the District to verify that a hazard no longer exists or is not likely to be created in the future. b.Relocation: A device may be relocated following confirmation by the District that the relocation will continue to provide the required protection and satisfy installation requirements. A retest will be required following the relocation of the device. c.Repair: A device may be removed for repair, provided the water use is either discontinued until repair is completed and the device is returned to service, or the service connection is equipped with other backflow protection approved by the 23-8 District. A retest will be required following the repair of the device. d.Replacement: A device may be removed and replaced provided the water use is discontinued until the replacement device is installed and tested. All replacement devices must be approved by the District and must be commensurate with the degree of hazard involved. I.User Supervisor 1.At each premise where it is necessary, in the opinion of the District, a user supervisor shall be designated by and at the expense of the water user. This user supervisor shall be responsible for the monitoring of the backflow prevention devices and for avoidance of cross- connections. In the event of contamination or pollution of the drinking water system due to a cross- connection on the premises, the District shall be promptly notified by the user supervisor so appropriate measures may be taken to overcome the contamination. The water user shall inform the District of the user supervisor's required information on an annual basis or whenever a change occurs. J.Administrative Procedures Water System Survey 1.The District shall review all requests for new services to determine if backflow protection is needed. Plans and specifications must be submitted to the District upon request for review of possible cross-connection hazards as a condition of service for new service connections. If it is determined that a backflow prevention device is necessary to protect the public water system, the required device must be installed before service will be activated. 23-9 2.The District may require an on premise inspection to evaluate cross-connection hazards. The District will transmit a written notice requesting an inspection appointment to each affected water user. Any customer who cannot or will not allow an on premise inspection of their piping system shall be required to install the backflow prevention device the District considers necessary. 3.The District may, at its discretion, require a reinspection for cross-connection hazards of any premise to which it serves water. The District will transmit a written notice requesting an inspection appointment to each affected water user. Any customer who cannot or will not allow an on premise inspection of their piping system shall be required to install the backflow prevention device the District considers necessary. K.Customer Notification - Device Installation and/or Repair (Corrective Action) 1.The District will notify the water user of the survey findings, listing corrective action to be taken if required. A period of 30 days will be given to complete all corrective action required including installation of backflow prevention devices. 2.A second notice will be sent to each water user who does not take the required corrective action prescribed in the first notice within the 30 day period allowed. The second notice will give the water user a 14 day period to take the required corrective action and will generate the assessment of a fee in accordance with Appendix A. If no action is taken within the 14 day period, the District may terminate water service to the affected water user until the required corrective actions are taken. 3.A third and final notice will be sent to each water user who fails to take the requisite corrective action detailed in the second notice within the 14 day period allowed. The third 23-10 notice will indicate the date of service termination and will generate the assessment of a fee in accordance with Appendix A. 4.Only written verificationpassing test results from a certified and District-approved tester/installer received in the District officeelectronically through the SwiftComply tester’s portal within the allotted time period will constitute compliance with the above requirements. L.Customer Notification - Testing 1.The District will notify each affected water user when it is time for the backflow preven- tion device installed on their service connections to be tested. This written notice shall give the water user 630 days to have the device tested and will supply the water user with the necessary form(s)testing information to be completed and submittedused when submitting testing results to the District. 2.A second notice shall be sent to each water user who does not have their backflow preven- tion device tested as prescribed in the first notice within the 630- day period allowed. The second notice will give the water user an additional 14 days period to have their backflow prevention device tested and will generate the assessment of a fee in accordance with Appendix A of this Ordinance. If no action is taken within the 14 -day period, the District may terminate water service to the affected water user until the subject device is tested. 3.A third and final notice will be sent to each water user who fails to have their backflow prevention device(s) tested as required in the second notice within the 14- day period allowed. The third notice will indicate the date of service termination and will generate 23-11 the assessment of a fee in accordance with Appendix A of this Ordinance. 4.Submittal of passing verification of testing results by a District approved tester, through the SwiftComply portal, on the appropriate form(s) received in the District office within the allotted time period will constitute compliance with the above requirements. M.Water Service Termination A.General When the District encounters water uses that rep- resent a clear and immediate hazard to the potable water supply that cannot be immediately abated, the District shall institute the procedure for discontinuing the District water service. A reconnection fee will be assessed in accordance with Appendix A. B.Basis for Termination Conditions or water uses that create a basis for water service termination shall include, but are not limited to the following items: 1.Refusal to install a required backflow pre- vention device; 2.Refusal to test a backflow prevention device; 3.Refusal to repair a faulty backflow prevention device; 4.Refusal to replace a faulty backflow prevention device; 5.Direct or indirect connection between the public water system and a sewer line; 6.Unprotected direct or indirect connection between the public water system and a system or equipment containing contaminants; 23-12 7.Unprotected direct or indirect connection between the public water system and an auxil- iary water system; and/or 8.Any situation which presents an immediate health hazard to the public water system. Additional remedies for failure to comply with cCross- cConnection requirements are referenced in Section 72 of the Code of Ordinances and may be prosecuted as set forth in Section 73.01 of this Code. N.Water Service Termination Procedures The District has absolute discretion to determine the corrective action required and referenced in Sections 72 and 73 of this Code. 1.For conditions 1, 2, 3, or 4, the District will terminate service to a customer's premise after 2 written notices have been sent specifying the corrective action needed and the time period in which it must be done. If no action is taken within the allowed time period water service may be terminated. 2.For conditions 4, 5, 6, 7, or 8, the District will take the following steps: a.Make reasonable effort to advise the water user of intent to terminate water service; b.Terminate water supply and lock service valve. The water service will remain inactive until correction of violations has been approved by the District. O.Requirements for addition to or renewal on the Otay Water District list of approved backflow prevention device testers A.Each applicant desiring initial addition to or annual renewal on the District’s List of Approved Backflow Prevention Device Testers shall submit a fee in accordance with Appendix A.Fees must be made in an acceptable form of payment to the District. Along with the fee, a current address and phone number must be 23-13 furnished. Those applicants not meeting all qualifications specified herein will have current fees returned. B.Applicants shall hold a valid and current certification from the American Water Works Association (AWWA) California Nevada Section, American Backflow Prevention Association (ABPA), American Society of Sanitary Engineering (ASSE), University of Southern California Test Procedures (current edition) or from a certification program recognized by the San Diego County Health Department. Evidence of said certification shall be furnished to the District at the time of application, at the time of renewal, and at any time the District requests verification. Certification alone does not constitute District approval. C.Each applicant shall furnish evidence to show the availability of the necessary tools and equipment to properly test and/or repair such devices. Test kits shall be recalibrated annually and evidence of this shall also be provided with both the initial application and subsequent renewals. D.The tester shall be solely responsible for the competency and accuracy of all tests and reports prepared and submitted to the District. The list of approved testers will be furnished upon request to any District customer requiring such service. The testers listed will remain listed for a period of one year at which time they are subject to application for renewal. At the beginning of each year a grace period not to exceed ninety (90) days will be allowed for this process. Failure to renew within the grace period will constitute removal from the list. The District reserves the authority to revoke, suspend, or remove any tester from the list of authorized testers for improper conduct, testing, repairs, and/or reporting. 23-14 FEES A.A second notice for required corrective action will result in a service fee, per backflow device as outlined in Appendix A. B.A third notice (termination of service notice) will result in a service fee per backflow device followed by the assessment of a reconnection fee if such action is required as outlined in Appendix A. C.A reconnection fee per service is required for service to be resumed as outlined in Appendix A. D.Applicants for addition to the list of approved backflow prevention device testers in the Otay Water District will submit an initial filing fee and an annual renewal fee, as outlined in Appendix A. 23.05 WATER SERVICE FOR STEAM BOILERS Customers using District water to supply steam boilers are required to provide adequate storage of water for boiler use for a minimum period of 12 hours. 23.06 ELECTRICAL GROUND CONNECTIONS The connection of electrical ground wire to water pipes is prohibited. The District shall assume no responsibility for any loss or damage resulting from such a connection. 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, OR MULTI-FAMILY RESIDENCES, ON PRIVATE PROPERTY A.All fire hydrant and/or fire sprinkler service mains installed for commercial or industrial purposes, or multi-family residences, 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 detector backflow prevention assembly (RPDA) backflow device installed in accordance with District specifications, and tested annually in accordance with Section 23.04.G. of this code. The RPDA device shall be installed on the fire main located, and 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, business, commercial or irrigation purposes, or multi-family residences, shall be furnished only after a meter or meters have been installed on EXHIBIT 2 38-2 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 work. At the time of application for the installation, 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 customer shall reimburse the District for the additional 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.16.(c) of this Code. F.The District shall have no responsibility for the proper function of the fire service system or 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 adequate supplies available in its system for ordinary 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 or be subject to any damages resulting from a failure or 38-3 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 INDIVIDUALLY METERED RESIDENTIAL FIRE PROTECTION When a single-family 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. Additional capacity fees for upsizing the single-family residential meter to meet fire flow requirements will be waived. 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. When a separate meter is required, water for fire protection services shall be provided in accordance with District fees and charges set forth in Section 25.03 D.16.(c) of this Code. 38.04 FIRE SPRINKLER SERVICE FOR COMBINED MULTI & SINGLE FAMILY SITES A.Master metered residential sites that contain both multi-family and single-family units, as designated by the fire department with jurisdiction, shall design and install the multi-family portion of the project in accordance with Section 38.02 (A through F). Portions of the site designated as single-family 38-4 shall design and install fire sprinklers as required by the fire agency with jurisdiction. The District encourages the use of passive purge design in single-family home construction.The District requires all single-family residential homes to abide by the rules set forth in Section 38.05. 38.05 RULES AND REGULATIONS FOR SINGLE-FAMILY RESIDENTIAL PROPERTIES WITH FIRE PROTECTION SYSTEMS A.The District requires single-family residential homes with fire sprinklers to include an above- grade double check valve backflow prevention assembly all the following criteria are met: 1.The user premises has only one service connection to the PWS; 2.A single service line onto the user premises exists that subsequently splits on the property for domestic flow and fire protection system flow, such that the fire protection system may be isolated from the rest of the user premises; 3.A single, water industry standard, water meter is provided to measure combined domestic flow and fire protection system flow; 4.The fire protection system is constructed of piping materials certified as meeting NSF/ANSI Standard 61; and 5.The fire protection system’s piping is looped within the structure and is connected to one or more routinely used fixtures (such as a water closet) to prevent stagnant water. B.The District highly encourages the use of a passive purge system, as described in section 38.05, for all new single-family residential sites. 23-1 SECTION 23 NON-RESPONSIBILITY OF DISTRICT 23.01 INTERRUPTIONS OF WATER SERVICE District does not guarantee continuous delivery of water on demand. From time to time it may be necessary for the District to shut off the flow of water in any of its water systems. Except in emergencies, such stoppages will not be made without prior notice to the customers involved. District shall not assume any responsibility for loss or damages which may occur due to interruption of water service. 23.02 PRIVATELY-OWNED WATER LINES The District assumes no responsibility for the delivery of water through privately-owned pipelines or systems, nor shall it assume any responsibility for damages resulting from the operation of any such system even though water may be received from a district water distribution system. 23.03 WATER PRESSURE REGULATION A.Customer Responsibility. The District shall assume no responsibility for water pressure regulation within a customer's service area. The customer shall be responsible for providing adequate safeguard measures for the customer's water system wherever pressure regulation is necessary. B.Requirement for Installation in New Construction. Customers making application for water service for new construction for residential, commercial or industrial use shall be required to install an appropriate pressure regulation device for such service. 23.04 CROSS-CONNECTIONS AND BACKFLOW DEVICES State Regulations for Cross-Connections The California State Water Resources Control Board has issued regulations related to cross-connections, outlined in the Cross-Connection Control Policy Handbook, for the purpose of safeguarding drinking water supplies by preventing backflow into public water systems. It is unlawful for any person, firm, or corporation at any time to make or maintain, or cause to be made or main- tained, temporarily or permanently, for any period of time whatsoever, any cross-connection between plumbing pipes or water fixtures being served with water by the District water department and any other source of water supply; or to main- tain any sanitary fixtures or other appurtenances or fixtures Attachment C 23-2 which, by reason of their construction, may cause or allow backflow of water or other substances into the water supply system of the District and/or the service of water pipes or fixtures of any consumer of the District. A.Definitions: For a complete listing, see the California State Water Resources Control Board’s Cross-Connection Control Policy Handbook. 1.Air-Gap Separation (AG): The term "air-gap separation" means a physical break between a supply pipe and a receiving vessel. The air-gap shall be at least double the diameter of the supply pipe measured vertically above the top rim of the vessel, in no case less than one inch. 2.Approved Backflow Prevention Device: The term "approved backflow prevention device" shall mean devices which have passed laboratory and field evaluation tests performed by a recognized testing organization which has demonstrated their competency to perform such test to the California Department of Health Services and the Otay Water District. 3.AWWA Standard: The term "AWWA Standard" means an official standard developed and approved by the American Water Works Association (AWWA). 4.Backflow: The term "backflow" shall mean a flow condition, caused by a differential in pressure that causes the flow of water or other liquids, gases, mixtures or substances into the distributing pipes of a potable supply of water from any source or sources other than an approved water supply source. Back-siphonage is one cause of backflow. Back pressure is the other cause. 5.Cross-Connection: The term "cross-connection" as used in this Ordinance means any unprotected actual or potential connection between a potable water system used to supply water for drinking purposes and any source or system containing unapproved water or a substance that is not or cannot be approved as safe, wholesome, and potable. Bypass arrangements, jumper connections, removable sections, swivel or changeover devices, or other devices through which backflow could occur, shall be considered to be cross-connections. 6.Double Check Valve Assembly: The term "double check valve assembly" means an assembly of at least two independently acting check valves, including tightly 23-3 closing shut-off valves, on each side of the check valve assembly and test cocks available for testing the water tightness of each check valve. 7.Reduced Pressure Principle Backflow Prevention Device (RP): The term "reduced pressure principle backflow prevention device" means a device incorporating two or more check valves and an automatically operating differential relief valve located between the two check valves, a tightly closing shut-off valve on each side of the check valve assembly, and equipped with necessary test cocks for testing. 8.Reduced Pressure Detection Assembly (RPDA): Same as RP except as approved for fire services. 9.Service Connection: The term "service connection" refers to the point of connection of a user's piping to the Otay Water District facilities. B.General Provisions 1.Unprotected cross-connections with the public water supply are prohibited. 2.Whenever backflow protection has been found necessary, the District will require the water user to install an approved backflow prevention device, by and at his/her expense, for continued services or before a new service will be granted. 3.Wherever backflow protection has been found necessary on a water supply line entering a water user's premises, then any and all water supply lines from the District's mains entering such premises, buildings, or structures shall be protected by an approved backflow prevention device. The type of device to be installed will be in accordance with the requirements of this Ordinance. C.Where Protection is Required 1.Each service connection from the District water system for supplying water to premises having an auxiliary water supply shall be protected against 23-4 backflow of water from the premises into the public water system. 2.Each service connection from the District water system for supplying water to any premises on which any substance is handled in such fashion as may allow its entry into the water system shall be protected against backflow of the water from the premises into the public system. This includes commercial accounts, fire service accounts, irrigation accounts, multi-family dwellings, multi-story buildings, complex piping, and locations where the handling of process waters and waters originating from the District water system may be subjected to deterioration in sanitary quality. D.Type of Protection Required 1.The type of protection that shall be provided to prevent backflow into the approved water supply shall be commensurate to the degree of hazard that exists on the consumer's premises. The type of protective device that may be required (listed in increasing levels of protection) includes: double check valve backflow prevention assemblies, reduced pressure principle backflow prevention assemblies (RP), and an air-gap separation (AG). The water user may choose a higher level of protection than that required by the District. The minimum types of backflow protection required to protect the approved water supply at the user's water connection to premises with varying degrees of hazard are given in Appendix D of the Cross-Connection Control Policy Handbook. Situations which are not covered in Appendix D shall be evaluated on a case-by-case basis, and the appropriate backflow protection shall be determined by the District. E.Approved Backflow Prevention Devices 1.Only lead-free backflow prevention assemblies which have been approved by the District shall be acceptable for installation by a water user connected to the District's potable water system. 23-5 2.The District will provide to any affected cus- tomer, upon their request, a list of approved backflow prevention devices. F.Backflow Prevention Device Installation 1.Backflow prevention devices shall be installed in a manner prescribed in Article 3 of the Cross- Connection Control Policy Handbook. Location of the devices should be as close as practical to the user's connection. The District shall have the final authority in determining the required location of a backflow prevention device. a.Air-gap Separation (AG) - The air-gap separation shall be located on the user's side of, and as close to, the service connection as is practical. All piping from the service connection to the receiving tank shall be above grade and be entirely visible. No water use shall be provided from any point between the service connection and the air-gap separa- tion. The water inlet piping shall terminate a distance of at least two (2) pipe diameters of the supply inlet, but in no case less than one inch above the overflow rim of the receiving tank. b.Reduced Pressure Principle Backflow Prevention Device (RP) - The approved reduced pressure principle backflow prevention device shall be installed on the user's side of the service connection at a distance consistent with the District's Standard Drawings and Specifications. The device shall be installed a minimum of twelve inches (12") but not more than twenty-four inches (24") above grade, measured from the bottom of the relief valve and with a minimum of twelve inches (12") side clearance, and twenty-four inches (24”) of clearance on the side of the assembly containing the test cocks. The device shall be installed so that it is readily accessible for maintenance and testing. Water supplied 23-6 from any point between the service connection and the RP device shall be protected in a manner approved by the District. Additionally, materials and installation shall at all times conform to water agency standards which can be found at www.sdwas.org. G.Backflow Prevention Device Testing and Maintenance 1.The owners of any premises on which, or on account of which, backflow prevention devices are installed shall have the devices tested by a person who has demonstrated their competency in testing of these devices to the District and has been approved by the District. Backflow prevention devices must be tested at least annually and immediately after installation, relocation, or repair. The District may require a more frequent testing schedule if it is determined to be necessary. No device shall be placed back in service unless it is functioning as required. A testing result submission, in a form acceptable to the District, shall be made each time a device is tested, relocated, or repaired. These devices shall be serviced, overhauled, or replaced whenever they are found to be defective and all costs of testing, repair, and maintenance shall be borne by the water user. 2.Initial testing after installation and subse- quent retesting shall at all times conform to water agency standards as outlined in www.sdwas.org. 3.The District will supply affected water users with a list of persons acceptable to the District to test backflow prevention devices. The District will notify affected customers by mail when annual testing of a device is needed and will also supply users with the necessary testing information to be submitted each time a device is tested or repaired. 4.Existing double check valves and pressure vacuum breakers on median strip irrigation areas which 23-7 function adequately may remain in place, however, as the District no longer recognizes such devices to be commensurate with the degree of potential hazard, failures of these devices will necessitate their replacement with a reduced pressure principal backflow prevention device (RP). H.Backflow Prevention Device Removal 1.Written approval must be obtained from the District before a backflow prevention device is removed, relocated, repaired or replaced. a.Removal: The use of a device may be discontinued and device removed from service upon presentation of sufficient evidence to the District to verify that a hazard no longer exists or is not likely to be created in the future. b.Relocation: A device may be relocated following confirmation by the District that the relocation will continue to provide the required protection and satisfy installation requirements. A retest will be required following the relocation of the device. c.Repair: A device may be removed for repair, provided the water use is either discontinued until repair is completed and the device is returned to service, or the service connection is equipped with other backflow protection approved by the District. A retest will be required following the repair of the device. d.Replacement: A device may be removed and replaced provided the water use is discontinued until the replacement device is installed and tested. All replacement devices must be approved by the District and must be commensurate with the degree of hazard involved. 23-8 I.User Supervisor 1.At each premise where it is necessary, in the opinion of the District, a user supervisor shall be designated by and at the expense of the water user. This user supervisor shall be responsible for the monitoring of the backflow prevention devices and for avoidance of cross-connections. In the event of contamination or pollution of the drinking water system due to a cross- connection on the premises, the District shall be promptly notified by the user supervisor so appropriate measures may be taken to overcome the contamination. The water user shall inform the District of the user supervisor's required information on an annual basis or whenever a change occurs. J.Administrative Procedures Water System Survey 1.The District shall review all requests for new services to determine if backflow protection is needed. Plans and specifications must be submitted to the District upon request for review of possible cross-connection hazards as a condition of service for new service connections. If it is determined that a backflow prevention device is necessary to protect the public water system, the required device must be installed before service will be activated. 2.The District may require an on premise inspection to evaluate cross-connection hazards. The District will transmit a written notice requesting an inspection appointment to each affected water user. Any customer who cannot or will not allow an on premise inspection of their piping system shall be required to install the backflow prevention device the District considers necessary. 3.The District may, at its discretion, require a reinspection for cross-connection hazards of any premise to which it serves water. The 23-9 District will transmit a written notice requesting an inspection appointment to each affected water user. Any customer who cannot or will not allow an on premise inspection of their piping system shall be required to install the backflow prevention device the District considers necessary. K.Customer Notification - Device Installation and/or Repair (Corrective Action) 1.The District will notify the water user of the survey findings, listing corrective action to be taken if required. A period of 30 days will be given to complete all corrective action required including installation of backflow prevention devices. 2.A second notice will be sent to each water user who does not take the required corrective action prescribed in the first notice within the 30 day period allowed. The second notice will give the water user a 14 day period to take the required corrective action and will generate the assessment of a fee in accordance with Appendix A. If no action is taken within the 14 day period, the District may terminate water service to the affected water user until the required corrective actions are taken. 3.A third and final notice will be sent to each water user who fails to take the requisite corrective action detailed in the second notice within the 14 day period allowed. The third notice will indicate the date of service termination and will generate the assessment of a fee in accordance with Appendix A. 4.Only passing test results from a certified and District-approved tester/installer received electronically through the SwiftComply tester’s portal within the allotted time period will constitute compliance with the above require- ments. 23-10 L.Customer Notification - Testing 1.The District will notify each affected water user when it is time for the backflow preven- tion device installed on their service connections to be tested. This written notice shall give the water user 60 days to have the device tested and will supply the water user with the necessary testing information to be used when submitting testing results to the District. 2.A second notice shall be sent to each water user who does not have their backflow preven- tion device tested as prescribed in the first notice within the 60-day period allowed. The second notice will give the water user an additional 14 days to have their backflow prevention device tested and will generate the assessment of a fee in accordance with Appendix A of this Ordinance. If no action is taken within the 14-day period, the District may terminate water service to the affected water user until the subject device is tested. 3.A third and final notice will be sent to each water user who fails to have their backflow prevention device(s) tested as required in the second notice within the 14-day period allowed. The third notice will indicate the date of service termination and will generate the assessment of a fee in accordance with Appendix A of this Ordinance. 4.Submittal of passing test results by a District approved tester, through the SwiftComply portal, within the allotted time period will constitute compliance with the above requirements. M.Water Service Termination A.General When the District encounters water uses that rep- resent a clear and immediate hazard to the potable water supply that cannot be immediately abated, the 23-11 District shall institute the procedure for discontinuing the District water service. A reconnection fee will be assessed in accordance with Appendix A. B.Basis for Termination Conditions or water uses that create a basis for water service termination shall include, but are not limited to the following items: 1.Refusal to install a required backflow pre- vention device; 2.Refusal to test a backflow prevention device; 3.Refusal to repair a faulty backflow prevention device; 4.Refusal to replace a faulty backflow prevention device; 5.Direct or indirect connection between the public water system and a sewer line; 6.Unprotected direct or indirect connection between the public water system and a system or equipment containing contaminants; 7.Unprotected direct or indirect connection between the public water system and an auxil- iary water system; and/or 8.Any situation which presents an immediate health hazard to the public water system. Additional remedies for failure to comply with cross- connection requirements are referenced in Section 72 of the Code of Ordinances and may be prosecuted as set forth in Section 73.01 of this Code. N.Water Service Termination Procedures The District has absolute discretion to determine the corrective action required and referenced in Sections 72 and 73 of this Code. 23-12 1.For conditions 1, 2, 3, or 4, the District will terminate service to a customer's premise after 2 written notices have been sent specifying the corrective action needed and the time period in which it must be done. If no action is taken within the allowed time period water service may be terminated. 2.For conditions 4, 5, 6, 7, or 8, the District will take the following steps: a.Make reasonable effort to advise the water user of intent to terminate water service; b.Terminate water supply and lock service valve. The water service will remain inactive until correction of violations has been approved by the District. O.Requirements for addition to or renewal on the Otay Water District list of approved backflow prevention device testers A.Each applicant desiring initial addition to or annual renewal on the District’s List of Approved Backflow Prevention Device Testers shall submit a fee in accordance with Appendix A.Fees must be made in an acceptable form of payment to the District. Along with the fee, a current address and phone number must be furnished. Those applicants not meeting all qualifications specified herein will have current fees returned. B.Applicants shall hold a valid and current certification from the American Water Works Association (AWWA) California Nevada Section, American Backflow Prevention Association (ABPA), American Society of Sanitary Engineering (ASSE), University of Southern California Test Procedures (current edition) or from a certification program recognized by the San Diego County Health Department. Evidence of said certification shall be furnished to the District at the time of application, at the time of renewal, and at any time the District 23-13 requests verification. Certification alone does not constitute District approval. C.Each applicant shall furnish evidence to show the availability of the necessary tools and equipment to properly test and/or repair such devices. Test kits shall be recalibrated annually and evidence of this shall also be provided with both the initial application and subsequent renewals. D.The tester shall be solely responsible for the competency and accuracy of all tests and reports prepared and submitted to the District. The list of approved testers will be furnished upon request to any District customer requiring such service. The testers listed will remain listed for a period of one year at which time they are subject to application for renewal. At the beginning of each year a grace period not to exceed ninety (90) days will be allowed for this process. Failure to renew within the grace period will constitute removal from the list. The District reserves the authority to revoke, suspend, or remove any tester from the list of authorized testers for improper conduct, testing, repairs, and/or reporting. FEES A.A second notice for required corrective action will result in a service fee, per backflow device as outlined in Appendix A. B.A third notice (termination of service notice) will result in a service fee per backflow device followed by the assessment of a reconnection fee if such action is required as outlined in Appendix A. C.A reconnection fee per service is required for service to be resumed as outlined in Appendix A. 23-14 D.Applicants for addition to the list of approved backflow prevention device testers in the Otay Water District will submit an initial filing fee and an annual renewal fee, as outlined in Appendix A. 23.05 WATER SERVICE FOR STEAM BOILERS Customers using District water to supply steam boilers are required to provide adequate storage of water for boiler use for a minimum period of 12 hours. 23.06 ELECTRICAL GROUND CONNECTIONS The connection of electrical ground wire to water pipes is prohibited. The District shall assume no responsibility for any loss or damage resulting from such a connection. 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, OR MULTI-FAMILY RESIDENCES, ON PRIVATE PROPERTY A.All fire hydrant and/or fire sprinkler service mains installed for commercial or industrial purposes, or multi-family residences, 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 detector backflow prevention assembly (RPDA) device installed in accordance with District specifications, and tested annually in accordance with Section 23.04.G. of this code. The RPDA device shall be installed on the fire main located 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, business, commercial or irrigation purposes, or multi-family residences, shall be furnished only after a meter or meters have been installed on Attachment D 38-2 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 work. At the time of application for the installation, 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 customer shall reimburse the District for the additional 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.16.(c) of this Code. F. The District shall have no responsibility for the proper function of the fire service system or 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 adequate supplies available in its system for ordinary 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 or be subject to any damages resulting from a failure or 38-3 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 INDIVIDUALLY METERED RESIDENTIAL FIRE PROTECTION When a single-family 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. Additional capacity fees for upsizing the single-family residential meter to meet fire flow requirements will be waived. 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. When a separate meter is required, water for fire protection services shall be provided in accordance with District fees and charges set forth in Section 25.03 D.16.(c) of this Code. 38.04 FIRE SPRINKLER SERVICE FOR COMBINED MULTI & SINGLE FAMILY SITES A. Master metered residential sites that contain both multi-family and single-family units, as designated by the fire department with jurisdiction, shall design and install the multi-family portion of the project in accordance with Section 38.02 (A through F). Portions of the site designated as single-family 38-4 shall design and install fire sprinklers as required by the fire agency with jurisdiction. The District requires all single-family residential homes to abide by the rules set forth in Section 38.05. 38.05 RULES AND REGULATIONS FOR SINGLE-FAMILY RESIDENTIAL PROPERTIES WITH FIRE PROTECTION SYSTEMS A. The District requires single-family residential homes with fire sprinklers to include an above- grade double check valve backflow prevention assembly all the following criteria are met: 1. The user premises has only one service connection to the PWS; 2. A single service line onto the user premises exists that subsequently splits on the property for domestic flow and fire protection system flow, such that the fire protection system may be isolated from the rest of the user premises; 3. A single, water industry standard, water meter is provided to measure combined domestic flow and fire protection system flow; 4. The fire protection system is constructed of piping materials certified as meeting NSF/ANSI Standard 61; and 5. The fire protection system’s piping is looped within the structure and is connected to one or more routinely used fixtures (such as a water closet) to prevent stagnant water. B. The District highly encourages the use of a passive purge system, as described in section 38.05, for all new single-family residential sites. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 7, 2024 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Suzie Lawson Human Resources Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services Jose Martinez, General Manager SUBJECT: AUTHORIZE AN ADDENDUM TO AMEND THE SCOPE OF SERVICES, LENGTH OF TIME, AND TOTAL COMPENSATION FOR THE CONSULTING SERVICES AGREEMENT BY AND BETWEEN THE OTAY WATER DISTRICT AND BURKE, WILLIAMS & SORENSEN, LLP GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors (Board) authorize the General Manager to issue an addendum to the current consulting services agreement by and between the Otay Water District (District) and Burke, Williams & Sorensen, LLP (Consultant) to amend the scope of services, length of time, and total compensation in an amount not-to-exceed $115,000. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To obtain Board authorization for the General Manager to issue an addendum to amend the scope of services, length of time, and total compensation for the consulting services agreement by and between the District and the Consultant. ANALYSIS: The District entered an agreement on November 28, 2023, with the Consultant to perform legal services and consultation relating to labor relations, including reviewing the Memorandum of Understanding (MOU) between the District and the Otay Water District Employees’ Association (Association) and serving as Chief Negotiator during labor negotiations. The Chief Negotiator received direction and parameters AGENDA ITEM 5 from the Board of Directors’ Ad-Hoc Negotiations Committee and the General Manager and acted on behalf of the Board and the District throughout labor negotiations. The original agreement specified in the scope of services that the services were to be performed with a “time is of the essence” approach to complete the project prior to the June 30, 2024, expiration date of the preceding MOU. The Chief Negotiator’s preparation for negotiations, including reviewing the current MOU, began in December 2023. Negotiation meetings between the District and the Association concluded in May 2024. The MOU was presented to and approved by the Board of Directors on June 5, 2024, and became effective July 1, 2024, with one (1) provision, the Health Reimbursement Arrangement (HRA), becoming effective September 1, 2024. The cost of the Consultant’s services provided in December 2023 through June 2024 totaled $83,910.21, of which $75,000 has been paid to date, resulting in a balance of $8,910.21 for services rendered through June of 2024. While the meetings concluded prior to the expiration date of the preceding MOU, the number of meetings and volume of work involved exceeded what had been anticipated, resulting in higher costs than anticipated or budgeted and resulting in the cost of services rendered exceeding the General Manager’s authority. In order to ensure successful implementation of the MOU changes and the HRA, staff is proposing to extend the scope of services to include other items which were identified, during and immediately following the negotiations process, as requiring additional legal review, such as: 1) Assisting in the implementation of the MOU by responding to questions which have arisen because of changes in the law, and; 2) Assisting in the implementation of the HRA and review of related documents. Staff estimates the cost for additional services to total up to $30,000. Staff requests a not-to-exceed amount of $115,000 to ensure that the outstanding invoice balance can be paid and additional services can be provided. The table below includes a summary of costs to date and future estimated costs. Time Period of Consulting Services Provided Total Cost of Services Rendered through 6/30/24 Amount Paid to Date Estimated Future Costs Total or Estimated Future Costs December 2023 through June 2024 $83,910.21 $75,000 N/A $8,910.21 July 2024 through June 2025 Estimate N/A $0 Approx. $30,000 Approx. $30,000 Total $83,910.21 $75,000 Approx. $30,000 Approx. $38,910.21 Finally, staff is requesting to extend the length of time of the agreement. The original term of the agreement was “until conclusion on the matter(s) specified in the Scope of Service” of the original agreement, which focused on the period of negotiations. The extension of the scope of services will necessitate an extension of the length of time to perform the extended services through the end of Fiscal Year 2025. Based on the aforementioned, staff is requesting that an addendum to the current consultant services agreement be approved and issued to amend the scope of services and length of time. In addition, due to this amendment increasing the total contractual amount above the General Manager’s authority, staff is requesting that the Board also approve the agreement addendum in the amount of $40,000 and authorize the revised total agreement amount of $115,000. FISCAL IMPACT: Joe Beachem, Chief Financial Officer With approval, this amendment to the agreement will cost up to $40,000. While the planned budget for consultant’s services is not sufficient, it was determined that the services were necessary in order to meet the “time is of the essence approach” to labor negotiations. In addition, the extended services are necessary to ensure timely and successful implementation of the HRA. STRATEGIC GOAL: Learning & Growth 2.1 - Negotiate a successor Memorandum of Understanding (MOU) with the employee association and unrepresented employees to focus on recruitment and retention. Financial 1.4 – Conduct an evaluation of a health savings investment account program for an optional post-employment benefit. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE AN ADDENDUM TO AMEND THE SCOPE OF SERVICES, LENGTH OF TIME, AND TOTAL COMPENSATION FOR THE CONSULTING SERVICES AGREEMENT BY AND BETWEEN THE OTAY WATER DISTRICT AND BURKE, WILLIAMS & SORENSEN, LLP COMMITTEE ACTION: The Finance & Administration Committee reviewed this item at a meeting held on July 23, 2024. The Committee supports 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 by the committee prior to presentation to the full Board.