HomeMy WebLinkAbout06-03-20 Board Packet 1
OTAY WATER DISTRICT
AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING
BY TELECONFERENCE
2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA
WEDNESDAY
June 3, 2020
3:30 P.M.
AGENDA
1. ROLL CALL 2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA 4. APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF MARCH 11, 2020 AND APRIL 1, 2020; AND THE SPECIAL BOARD MEETINGS OF JANUARY 16,
2020 AND MARCH 18, 2020
5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURIS-DICTION BUT NOT AN ITEM ON TODAY'S AGENDA
In lieu of in-person attendance, members of the public may submit their comments on agendized and non-agendized items via email at boardsecretary@otaywater.gov. Public comments submitted will be read into the record at the Board Meeting and the
public may continue to watch and listen to meetings. The information on how to watch
and listen to the District’s live streaming can be found at this link: https://otay-water.gov/board-of-directors/agenda-and-minutes/board-agenda/ CONSENT CALENDAR
6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICU-LAR ITEM:
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a) APPROVE CHANGE ORDER NO. 7 TO THE EXISTING CONSTRUCTION
CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE AMOUNT OF $60,567.00 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT b) ADOPT RESOLUTION NO. 4379 TO CONTINUE WATER AND SEWER
AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL YEAR
2020-2021 TO BE COLLECTED THROUGH PROPERTY TAX BILLS c) ADOPT RESOLUTION NO. 4380 TO ESTABLISH A REDUCED TAX RATE FOR IMPROVEMENT DISTRICT NO. 27 AT $0.0035 FOR FISCAL YEAR 2020-2021
d) ADOPT RESOLUTION NO. 4383 AMENDING THE DISTRICT’S RESERVE POLICY, POLICY NO. 25, OF THE DISTRICT’S CODE OF ORDINANCES ESTABLISHING A SEWER RATE STABILIZATION FUND; AND APPROVE THE TRANSFER OF $175,000 FROM THE SEWER GENERAL FUND TO THE
SEWER RATE STABILIZATION FUND
ACTION ITEMS 7. FINANCE AND ADMINISTRATION
a) ADOPT RESOLUTION NO. 4381 CONSENTING THE DISTRICT TO ENTER THE JOINT PROTECTION PROGRAMS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES/JOINT POWERS INSURANCE AUTHORITY (ACWA-JPIA) AND ELECT TO JOIN THE LIABILITY, PROPERTY, AND WORKERS’ COMPEN-SATION PROGRAMS SPONSORED BY ACWA-JPIA; ADOPT RESOLUTION
NO. 4382 AUTHORIZING APPLICATION TO THE DIRECTOR OF INDUSTRIAL RELATIONS, STATE OF CALIFORNIA FOR A CERTIFICATE OF CONSENT TO SELF-INSURE WORKERS’ COMPENSATION LIABILITIES; APPROVE MODIFI-CATION TO THE DISTRICT’S PURCHASING MANUAL SECTION 7.2.8, BOARD AUTHORIZED PURCHASES EXCEEDING THE GENERAL MANAGER’S AU-
THORITY, TO INCLUDE INSURANCE SERVICES PROVIDED BY ACWA-JPIA; AUTHORIZE THE GENERAL MANAGER TO SIGN CONTRACTS AND AGREE-MENTS AS NEEDED FOR INSURANCE PROGRAM SERVICES ON BEHALF OF THE DISTRICT WITH THE ACWA-JPIA; AND APPOINT A REPRESENTATIVE TO THE ACWA-JPIA BOARD AND AN ALTERNATE (FAKHOURI)
8. BOARD a) DISCUSS THE 2020 BOARD MEETING CALENDARS
INFORMATIONAL ITEMS 9. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PUR-POSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM:
a) THIRD QUARTER OF FISCAL YEAR 2020 CAPITAL IMPROVEMENT PRO-GRAM REPORT (POSADA)
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WORKSHOP
10. ADOPT RESOLUTION NO. 4384 TO APPROVE THE FY 2020-2021 OPERATING AND CAPITAL BUDGET WITH A ZERO PERCENT (0%) RATE INCREASE FOR WATER AND SEWER; APPROVE FUND TRANSFERS FOR POTABLE, RECYCLED, AND
SEWER; ADOPT THE SALARY SCHEDULE; AND DIRECT STAFF TO DRAFT AND
MAIL SEWER PROPOSITION 218 HEARING NOTICES TO CUSTOMERS OPTIONALLY, ADOPT RESOLUTION NO 4384 TO APPROVE THE FY 2020-2021 OPERATING AND CAPITAL BUDGET WITH A HALF (2.9%) OR FULL (5.8%) RATE
INCREASE FOR WATER AND A HALF (2.8%) OR FULL (5.6%) RATE INCREASE FOR
SEWER WITH THE FOLLOWING ADDITIONAL ACTIONS: ADOPT THE HALF RATE INCREASE OR FULL RATE INCREASE ALTERNATIVE TRANSFER SCHEDULE; ADOPT ORDINANCE NO. 577 AMENDING APPENDIX A WITH THE APPROVED WA-TER RATE CHANGE, EFFECTIVE JANUARY 1, 2021; DIRECT STAFF TO DRAFT AND
MAIL WATER RATE INCREASE NOTICES; AND DIRECT STAFF TO DRAFT AND
MAIL SEWER PROPOSITION 218 HEARING NOTICES WITH THE PROPOSED FULL-RATE INCREASE ALTERNATIVE OR THE HALF-RATE INCREASE ALTERNATIVE TO CUSTOMERS (KOEPPEN)
REPORTS
11. GENERAL MANAGER’S REPORT a) UPDATE ON DISTRICT’S RESPONSE TO COVID-19 PANDEMIC
12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 13. DIRECTORS' REPORTS/REQUESTS 14. PRESIDENT’S REPORT/REQUESTS
RECESS TO CLOSED SESSION 15. CLOSED SESSION
a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SER-VICES [GOVERNMENT CODE §54957] b) CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to California Government Code section 54956.8
Property: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY CHULA VISTA, CA 91914
Agency negotiator: General Counsel Under negotiation: Disposition of Property
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c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN-MENT CODE §54956.9] OTAY WATER DISTRICT vs. RAINBOW MUNICIPAL WATER DISTRICT; CASE
NO. 37-2020-00001510-CU-WM-CTL
d) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN-MENT CODE §54956.9]
OTAY WATER DISTRICT vs. FALLBROOK PUBLIC UTILITY DISTRICT; CASE
NO. 37-2017-00019348-CU-WM-CTL RETURN TO OPEN SESSION
16. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO
TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. OTAY WATER DISTRICT FINANCING AUTHORITY
17. NO MATTERS TO DISCUSS
18. ADJOURNMENT
All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619)
670-2280.
If you have any disability which would require accommodation in order to enable you to partici-
pate in this meeting, please call the District Secretary at (619) 670-2280 at least 24 hours prior
to the meeting.
Certification of Posting
I certify that on May 29, 2020 I posted a copy of the foregoing agenda near the regular
meeting place of the Board of Directors of Otay Water District, said time being at least 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2).
Executed at Spring Valley, California on May 29, 2020. /s/ Susan Cruz, District Secretary
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MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY March 11, 2020
1.The meeting was called to order by President Croucher at 3:31 p.m.
2.ROLL CALL
Directors Present: Croucher, Gastelum, Robak, Smith and Thompson
Staff Present: General Manager Mark Watton, New General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Engineering Dan Martin, Asst. Chief of
Finance Kevin Koeppen, District Secretary Susan Cruz and others per attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Thompson, and seconded by Director Smith andcarried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None
to approve the agenda.
5.PRESENTATION OF SCHOLARSHIP FUND FOR CUYAMACA COLLEGE’SCENTER FOR WATER STUDIES
Director Thompson presented on behalf of the District’s Board of Directors ascholarship named in honor of the District’s retiring General Manager, Mark Watton,titled the “Mark Watton Scholarship Fund for the Cuyamaca College Center forWater Studies”. The scholarship fund will provide scholarships to students enrolledin the College’s Center for Water Studies Program which prepares students to work
in the water industry. The District’s board members each thanked General ManagerWatton for his service to the District and his impact on the industry. GeneralManager Watton thanked the board for the honor of having a scholarship in his
Agenda Item 4
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namesake. He stated the success of the District is due to its employees and a scholarship fund to prepare the next generation of water industry employees is wonderful recognition. The representatives from Cuyamaca College, Chancellor
Lynn Neault, President Julianna Barnes and Former Water Studies Program Coordinator Don Jones thanked the District for the initiation of the new scholarship fund. 6. PRESENTATION FROM THE CITY OF POWAY TO EXPRESS THEIR
APPRECIATION TO THE OTAY WATER DISTRICT Mr. Eric Heidemann, City of Poway Director of Public Works, thanked the District on behalf of the City of Poway and its residents for the assistance the Otay Water District provided on November 30, 2019 in response to a water emergency which
required the City of Poway to purge their entire water distribution system The Otay Water District, along with nine (9) other agencies, assisted their City in getting their system back online. Mr. Heidemann indicated that if the District ever needed the City of Poway’s assistance, they will be ready to assist. He again thanked the District and its staff.
7. PRESENTATION OF PROCLAMATION BY CHAIRMAN GREG COX, COUNTY OF SAN DIEGO BOARD OF SUPERVISORS County of San Diego Board of Supervisor Chair Greg Cox presented a
Proclamation recognizing retiring General Manager Watton for his service to the County of San Diego. He stated that he was presenting a Proclamation on behalf of the County of San Diego Board of Supervisors in recognition of his contributions to the region and is declaring March 11, 2020 as Mark Watton day throughout the County of San Diego. General Manager Watton thanked Chairman Cox and the
County Board of Supervisors for the honor. The Board recessed at 4:04 p.m. for a reception honoring General Manager Mark Watton on his retirement and reconvened at 4:27 p.m.
8. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard.
A moment of silence was observed in honor of Mr. John Masson who passed away on March 10, 2020 after a year-long battle with cancer. Mr. Masson served on the City of Escondido’s Council since 2012 and was the City’s representative on the San Diego County Water Authority Board of Directors.
9. CLOSED SESSION
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The board recessed to closed session at 4:30 p.m. to discuss the following matter: a) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE
§54957.6] AGENCY DESIGNATED REPRESENTATIVES: BOARD AD HOC GM RECRUITMENT COMMITTEE MEMBERS
EMPLOYEE: JOSE MARTINEZ 10. APPROVE GENERAL MANAGER’S EMPLOYMENT CONTRACT
The board reconvened at 4:59 p.m. and General Counsel Dan Shinoff reported that the board took action on an employment contract between the District and the District’s new general manager, Jose Martinez, dated March 11, 2020. The terms of compensation and fringe benefits includes a base salary of $240,000 for services rendered from February 17, 2020 to February 14, 2021. He, additionally, indicated
that Mr. Martinez will be entitled to the same medical and dental benefits provided through the District’s medical plan for himself and his dependents and vacation/sick leave provided to other executive management employees. He stated that no automobile or monthly car allowance would be provided.
A motion was made by Director Thompson, and seconded by Director Gastelum and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None
Abstain: None Absent: None to approve the contract between the District and new general manager Jose Martinez dated March 11, 2020.
11. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF OCTOBER 2, 2019 AND SPECIAL BOARD MEETING OF OCTOBER 8, 2019 A motion was made by Director Robak, and seconded by Director Gastelum and
carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None
Absent: None
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to approve the minutes of the regular board meeting of October 2, 2019 and special board meeting of October 8, 2019.
CONSENT CALENDAR 12. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM:
A motion was made by Director Robak, and seconded by Director Gastelum and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None Abstain: None Absent: None to approve the following consent calendar items:
a) ADOPT RESOLUTION NO. 4377 DESIGNATING A CHANGE OF AUTHORIZED SIGNATORIES FOR THE DISTRICT’S BANK ACCOUNTS AND AUTHORIZE THE NEW GENERAL MANAGER TO ENTER INTO BANKING CONTRACTS WITH MUFG UNION BANK, N.A.
b) APPROVE AN INCREASE TO THE CIP S2070 BUDGET IN THE AMOUNT OF $65,000 (FROM $150,000 TO $215,000) AND AUTHORIZE AN AGREEMENT WITH KAY CONSTRUCTION FOR THE HIDDEN MOUNTAIN SEWER PUMP STATION WET WELL RENOVATION PROJECT IN AN
AMOUNT NOT-TO-EXCEED $142,940 c) APPROVE AN INCREASE TO THE CIP P2609 BUDGET IN THE AMOUNT OF $500,000 (FROM $800,000 TO $1,300,000) AND AUTHORIZE A CONSTRUCTION AGREEMENT WITH LB CIVIL CONSTRUCTION, INC.
FOR THE DICTIONARY HILL WATER LINE REPLACEMENT PROJECT – 2019 (CIP P2608, P2609, P2655) IN AN AMOUNT NOT-TO-EXCEED $1,345,315 ACTION ITEMS
13. BOARD a) DISCUSS OF 2020 BOARD MEETING CALENDAR
There were no changes to the board meeting calendar. INFORMATIONAL ITEMS
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14. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE
FOLLOWING AGENDA ITEMS: a) PRESENTATION ON THE CUSTOMER OPINION SURVEY Communications Officer Tenille Otero and the District’s consultant, Mr. Timothy
McLarney, the president of True North Research, Inc. presented the findings of the Customer Opinion Survey conducted in January 2020. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Ms. Otero’s and Mr. McLarney’s report.
Mr. McLarney indicated that the District’s Communications, Public Relations, Legal & Legislative Committee inquired about the respondents he had identified as located in “other unincorporated areas” with regard to questions concerning desalinated water as a solution for water reliability. He explained that he had misspoke and that the “other” refers to respondents from small areas of Bonita, La
Mesa, and San Diego. Director Thompson indicated that he wished future surveys to delve more into the reasons Asian and Hispanic customers had a higher percentage of “very dissatisfied” respondents with regard to the questions, “providing high quality water”
and “providing water that is safe to drink” than other ethnicities. Ms. Otero and Mr. McLarney responded to additional questions and comments from the board.
b) SECOND QUARTER OF FISCAL YEAR 2020 CAPITAL IMPROVEMENT PROGRAM REPORT Assistant Chief of Engineering Dan Martin provided an update on the District’s second quarter of FY 2020 Capital Improvement Program. He indicated that the FY
2020 budget is divided into 113 projects totaling $17.2 million. The overall expenditures through the second quarter are $7.4 million which is approximately 43% of the FY 2020 budget. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Mr. Martin’s report. Mr. Martin responded to questions and comments from the board.
c) FISCAL YEAR 2020 MID-YEAR STRATEGIC PLAN UPDATE Chief of Administration Adolfo Segura and Information Technology Manager Michael Kerr provided a mid-year report on the status of the District’s fiscal year
(FY) 2019-2022 Strategic Plan for FY 2020. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Messrs. Segura’s and Kerr’s reports. President Croucher encouraged the board to meet
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with staff to receive an in depth review of the District’s Strategic Plan program. The board had no questions.
REPORTS 15. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report which included an
update on the joint effort to acquire county-wide aerial images; new hires, promotions, and recruitments; voucher program for prescription safety glasses; capacity fee study; and the 870-2 pump station replacement project. He also reviewed a handout that was provided to each board member on the dais of a graph showing the sewage flows to the Metro system versus the District’s planned
capacity. He stated the graph will be included monthly in future general manager’s reports. 16. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
Director Smith reported that CWA’s Engineering and Operations Departments provided a tour for MWD staff of the Lake Hodges Reservoir facility, Twin Oaks Valley Water Treatment Plant and the Pure Water Project. He stated as part of the tour, CWA’s head of operations highlighted to MWD’s staff a portion of a tunnel that only delivers water to San Diego and indicated CWA’s’ concern for that tunnel.
MWD’s staff, after the tour, decided to advance the project for the tunnel and included it in their upcoming 2-year CIP, allocating several million to the project. He also indicated that General Manager Watton was recognized at CWA’s last board meeting and he had introduced and passed the baton to the District’s new General Manager Martinez. Director Smith lastly shared with regard to estimating water
demands, that Otay WD is getting very good at estimating its customer water demands, however, CWA and MWD are about 10% to 15% too high. Both CWA and MWD are currently developing their Integrated Resources Plan which estimates water demand 25 years into the future. He stated that this plan is something the District should keep its eye on as it will have impact on the District if their estimates
are not accurate. Director Croucher additionally shared that he attended ACWA’s Washington DC legislative conference and was assigned the Head of ACWA’s Water Working Group. He stated that the San Diego Regional Chamber’s Binational Delegation
Outreach Trip to Mexico City and the SANDAG retreat was canceled due to the Coronavirus pandemic. He indicated that he was also scheduled to travel to Sacramento to meet with legislators. However, legislators are suggesting that the meetings be held by teleconference/video conference while they are in Sacramento. He stated that he has suggested that they stay in San Diego and they still can meet
via teleconference/video conference. He also shared that they had met with the farmers in Imperial County and they were very pleased with the work CWA is doing. He shared that it is remarkable what farmers are doing with technology to augment
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their soil to improve its quality to grow better fruits and vegetables and it was very humbling to learn and see what they are doing. He also indicated with regard to the lawsuits with MWD, that had CWA withdrawn two of the suits and Mayor Faulconer
and others have acknowledged and supported the action. He lastly invited the members of the board to attend CWA’s committee meeting which will be held the next day, March 12, at 1:30 p.m. The committee will discuss and receive a presentation on the regional conveyance project. This first phase of the project is to discuss the alignment, cost of the project, determine if the project is viable and if
there are any fatal flaws. If it is decided to move forward with the second phase of the project, at that time, they will discuss the possibility of public/private partnerships, grants and other funding that might be available. 17. DIRECTORS' REPORTS/REQUESTS
Director Robak shared that Helix WD and Sweetwater Authority received a grant from MWD to subsidize half the cost of the Flume for their customers in the form of rebates (a Flume is a $200 product that monitors water consumption and provides
real-time water usage data to your smartphone). He stated that he received one as
a social media influencer. He reported that he attended CSDA’s quarterly meeting and the San Diego Regional Chamber Leadership Delegation to Sacramento. He also shared that Mr. Jeff Keitlinger was retiring from MWD.
President Croucher stepped off the dais at 6:20 p.m. and returned at 6:23 p.m.
Director Gastelum indicated he forwarded his report to District Secretary Cruz, but he did wish to highlight from his report that he attended ACWA’s Washington DC legislative conference and it was refreshing to see that on the topic of California
water, Republican and Democratic representatives in Washington DC agree and
work together on this issue. Director Smith reported that he has submitted a written report to District Secretary Cruz as well, which will be attached to the minutes of this meeting.
Director Thompson stated that he also submitted his report to District Secretary Cruz which will be included with the minutes. He stated he did wish to share that the board introduced the District’s new General Manager Jose Martinez at the Chula Vista Chamber of Commerce Annual Installation and the Mexican American
Business Professional Association events. He stated he feels the District is doing a
good job in participating in the community to develop a good public perception of Otay WD. He thanked staff for following up on the Water Resiliency Plan. He lastly shared that the Chair of the South Government Affairs Committee of Pacific Southwest Association of Realtors successfully encouraged the City of El Cajon not
to include sewer billing charges on County property tax bills as it could impact home
buyers ability to get a loan as taxes are calculated into a buyers income ratios/residual income tests. The City of El Cajon estimated that the cost for the City to collect the sewer billing on their own was more than twice of what the Otay
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WD charges the City of Chula Vista for half the number of customers. He stated the City of Chula Vista was contemplating doing the same at one time and the District was able to discourage them as well. He stated that he feels the District is
providing a good public service by providing the sewer billing services for the City of Chula Vista which has helped their jurisdiction. Director Robak reported that the issue was also discussed at the East County Chamber of Commerce’s Government Affairs Committee and he had shared that
Otay WD provides the sewer billing services for the City of Chula Vista and Helix WD board members in attendance of the meeting, indicated that they would not be able to provide the billing services for the City of El Cajon. The City of El Cajon has not yet decided what they will do.
18. PRESIDENT’S REPORT President Croucher reported that he and new General Manager Martinez will be scheduling meetings with surrounding agencies (Helix WD, Padre MWD, Sweetwater Authority, etc.) to foster more interaction between the board presidents
and general managers to discuss and work on issues of mutual interest to the agencies. 19. CLOSED SESSION
The board recessed to closed session at 6:34 p.m. to discuss the following matter: a) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERNMENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, SAN DIEGO
COUNTY WATER AUTHORITY, ET AL.; CASE NO. 37-2015-00023413
b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9]
KESSNER, ET AL. vs. CITY OF SANTA CLARA, ET AL.; CASE NO.
20CV364054, SANTA CLARA COUNTY SUPERIOR COURT c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017-00019348-CU-WM-CTL d) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
[GOVERNMENT CODE §54956.9]
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OTAY WATER DISTRICT vs. RAINBOW MUNICIPAL WATER DISTRICT; CASE NO. 37-2020-00001510-CU-WM-CTL
e) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. FALLBROOK PUBLIC UTILITY DISTRICT; CASE NO. 37-2017-00019348-CU-WM-CTL
20. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION The board reconvened from closed session at 7:29 p.m. and General Counsel Dan
Shinoff reported that the board took no reportable actions in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY
21. NO MATTERS TO DISCUSS
There were no items scheduled for discussion for the Otay Water District Financing Authority board.
22. ADJOURNMENT
With no further business to come before the Board, President Croucher adjourned the meeting at 7:30 p.m.
___________________________________ President
ATTEST:
District Secretary
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Board of Directors Meetings Attended Form
Director Name: Gary Croucher Period Covered:
From: 2/1/20 To: 2/29/20 Item No. Date Meeting Attended Description
1.
2/5/20 OWD Board Meeting OWD Regular Board Meeting
2.
2/12/20 Mexican American Bus Professional Assoc. Presented on Water Issues
3.
2/13/20 Committee Agenda Briefing Met w/ General Managers Watton and Martinez to review items that will be presented at the February committee meetings
4.
2/19/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the March 2020 board meeting.
Board of Directors Meetings Attended Form
Director Name:Mitchell Thompson Period Covered:
From: 2/1/20 To: 2/29/20
Item
No.
Date Meeting Attended Description
1.2/3/20 OWD Special Board Mtg See agenda
2.2/4/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting
3.2/5/20 OWD Board Meeting See agenda, regular monthly board meeting
4.2/10/20 Quarterly Mtg with GM Discuss OWD issues and my district with new GM
5.2/12/20 MABPA monthly lunch
meeting
Community discussion about water issues in SD County
6.2/19/20 State of the County
Address
Represent OWD at County
7.2/20/20 CSDA Quarterly Dinner
Mtg
CSDA Agenda
8.
9.
10.
-Instructions on Reverse -
EXHIBIT B
(Director’s Signature)
GM Approval: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $
INSTRUCTIONS ON REVERSE
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Hector Gastelum Period Covered:
Employee Number: 1860 From: 2/1/2020 To: 2/29/2020
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED
MILEAGE
HOME to OWD
OWD to HOME
MILEAGE
OTHER
LOCATIONS
1
2/3 OWD SPECIAL BOARD
MEETING
GM CANDIDATE INTERVIEWS 18
2 2/5 OWD MONTHLY MEETING 18
3 2/12 MEXICAN AMERICAN
BUSINESS POLITICAL ASSN
@ SAN DIEGO COUNTY WATER
AUTHORITY
44
4
2/13 QUARTERLY GM MEETING @OWD 18
5
2/18 COUNCIL OF WATER
UTILITIES MEETING
@BUTCHERS SHOP 44
6
2/18 CPRL&L COMMITTEE 18
7
2/19 STATE OF THE COUNTY
ADDRESS
@ MIDWAY MUSEUM 38
8
2/20 SAN DIEGO CSDA
QUARTERLY MEETING
@ BUTCHER SHOP 44
9 2/24 ACWA DC Conference Travel Day 40
10 2/24 ACWA DC Conference
11 2/24 ACWA DC Conference
12 2/24 ACWA DC Conference 40
13
2/28 CHULA VISTA CHAMBER OF
COMMERCE
93RD INSTALLATION DINNER 4
72 254
Total Meeting Per Diem:
1520.00
($152 per meeting)
326
Total Mileage Claimed: miles
Mark Robak
7014 From:2/1/2020 2/29/2020
ITEM DATE MEETING PURPOSE / ISSUES
MILEAGE HOME
TO OWD OWD TO
HOME
MILEAGE
OTHER
LOCATIONS
1 2/3/2020 OWD Special Board Meeting General Manager Candidate Interviews 0 12
2 2/3/2020 Otay Water District Active Shooter Training - No Charge 0 0
3 2/4/2020 South County EDC Meeting Monthly Meeting 0 28
4 2/5/2020 OWD Board Meeting OWD Monthly Board Meeting 4 6
5 2/6/2020 Metro JPA Meeting Discussed regional sewer system operation and
maintenance - No Charge 0 24
6 2/10/2020 East County Chamber of
Commerce
El Cajon Citizen of the Year Presentation - No
Charge 0 0
7 2/10/2020 Otay Water District Quarterly Meeting with old and new General
Manager's 0 12
8 2/12/2020 Meeting with Sweetwater Ad-
Hoc Committee
Discussed concepts of maximizing recycled
water reuse 0 6
9 2/18/2020 Council of Water Utilities Heard presentation on Water Innovation &
Efficiency in Agriculture - No Charge 0 0
10 2/18/2020 Finance & Administration
Committee
Discussed District finance and administration
items 0 12
11 2/20/2020 CSDA Quarterly Dinner LAFCO Special District Advisory Board
candidate presentations 0 26
12 2/25/2020 San Diego Regional
Chamber of Commerce 2020 Leadership Delegation to Sacramento 0 19
13 2/26/2020 San Diego Regional
Chamber of Commerce 2020 Leadership Delegation to Sacramento 0 19
14 2/28/2020 Chula Vista Chamber
Installation Dinner Annual Event - No Charge 0 0
4 164
$ 1,368
168 Miles
GM Receipt: Date: ___________________
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________
Pay To:Period Covered
Employee Number
Total Mileage
Claimed:
Director Signature
($152 PER MEETING)
Total Meeting Per
Diem:
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
1
MINUTES OF THE
BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY April 1, 2020
1.The meeting was called to order by General Manager Martinez at 3:30 p.m.
2.ROLL CALL
Directors Present: Croucher, Gastelum, Robak, Smith and Thompson
Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura,
Chief of Operations Pedro Porras, Asst. Chief of Engineering
Dan Martin, Asst. Chief of Finance Kevin Koeppen, District Secretary Susan Cruz and others per attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Thompson, and seconded by President Croucherand carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None
to approve the agenda.
5.APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OFNOVEMBER 6, 2019 AND THE EMERGENCY MEETING OF MARCH 16, 2020
A motion was made by President Croucher, and seconded by Director Smith andcarried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None Absent: None
to approve the minutes of the regular board meeting of November 6, 2019 and the
emergency meeting of March 16, 2020.
Agenda Item 4
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6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard.
INFORMATIONAL ITEM
7. PRESENTATION OF 2020 ECONOMIC OUTLOOK UPDATE FOR SAN DIEGO COUNTY
Mr. Alan Nevin, Director of Economic and Market Research of Xpera Group,
provided an overview of the economic outlook for the United States, California, and San Diego County. He stated that the State of California is the fifth (5th) largest economy in the world and he believes the State will remain so for some time. He stated with regard to the County of San Diego that it has many economic drivers
which insulates it from recessions and has allowed it to add 34,800 new jobs in the past year. Housing construction, however, has been dropping over the years with only 3,023 new single-family homes and 5,059 new multi-family units (townhomes, condominiums and apartments) built in the County in 2019.
Mr. Niven indicated the City of Chula Vista had a very robust residential construction year in 2018, but it slowed greatly in 2019 with a total of only 282 single-family and 839 multi-family units built. He stated the reason is developers did not have enough land prepared for construction. It is anticipated residential construction will increase in 2020 with an estimated 1,108 residential units (215
single-family and 893 multi-family) projected for construction. He stated that there is currently little inventory, but homes are selling as buyer wish to take advantage of low interest rates. He stated that the largest planned commercial development in Otay WD’s service
area in the next year is Amazon’s 3.4 million square foot distribution center in the Otay Mesa area that will include 1800 parking spaces. It is expected that Amazon’s facility will generate business growth as Amazon suppliers will locate offices close to the facility. The facility will employ approximately 4,000 to 5,000 people.
Mr. Nevin added that he is concerned with COVID-19’s impact on the construction start date of Amazon’s development because of the current requirement to social distance and to telecommute employees. He stated it is also not certain what COVID-19’s impact will be on the office market and we will have to wait and observe over time. He stated that the industrial market, however, is continuing to
do well and the hotel sector he felt, will begin to recover by the 3rd quarter (fall timeframe). He also indicated that the recession triggered by COVID-19 has been compared to the great depression. It, however, is not similar as in 1929, 39% of the jobs were in
manufacturing and when manufacturing plummeted, the economy plummeted.
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Today, our nation does not have the same overall weakness in the economy with
only 7% of jobs are in manufacturing. In San Diego County, fifty percent (50%) of
the jobs are termed “safe” jobs like government, military, healthcare, support jobs (food, drug/pharmacy, construction etc.), etc. He stated that he is hoping with people now taking the situation more seriously and there is increased social distancing, that we will see a rapid recovery in the economy once states return to
normalcy.
The board appreciated Mr. Nevin’s prediction for a rapid recovery and suggested that the District should hope for the best, but be prepared for the worst. Mr. Nevin and staff responded to additional comments and questions from members of the
board.
CONSENT CALENDAR 8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM: A motion was made by Director Smith, and seconded by Director Robak and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None
to approve the following consent calendar items: a) APPROVE AN INCREASE TO THE CIP P2561 BUDGET IN THE AMOUNT OF $150,000 (FROM $2,300,000 TO $2,450,000) AND APPROVE CHANGE ORDER NO. 1 TO THE EXISTING CONSTRUCTION CONTRACT WITH
LAYFIELD USA CORPORATION IN AN AMOUNT NOT-TO-EXCEED $105,535.48 FOR THE RESERVOIR 711-3 FLOATING COVER AND LINER REPLACEMENT PROJECT b) APPROVE CHANGE ORDER NO. 4 TO THE EXISTING CONSTRUCTION
CONTRACT WITH CASS CONSTRUCTION, INC. dba CASS ARRIETA IN AN AMOUNT NOT-TO-EXCEED $1,880 FOR THE VISTA VEREDA AND HIDDEN MESA ROAD WATER LINE REPLACEMENT PROJECT c) APPROVE CHANGE ORDER NO. 6 TO THE EXISTING CONSTRUCTION
CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE AMOUNT OF $40,125.89 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT
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d) ADOPT RESOLUTION NO. 4378 DESIGNATING SPECIFIC STAFF
POSITIONS TO BE AUTHORIZED AS AGENTS TO DEAL WITH THE
STATE OF CALIFORNIA, OFFICE OF EMERGENCY SERVICES, ON THE DISTRICT’S BEHALF IN ALL MATTERS PERTAINING TO DISASTER ASSISTANCE
ACTION ITEMS
9. FINANCE AND ADMINISTRATION a) APPROVE THE IMPLEMENTATION OF A 90-DAY MORATORIUM ON ANY
CHANGES TO ALL DISTRICT CAPACITY AND ANNEXATION FEES
Assistant Chief of Finance Kevin Koeppen stated that staff is requesting that the board approve the implementation of a 90-day moratorium on any changes to all District capacity and annexation fees. Mr. Koeppen indicated that due to the
COVID-19 pandemic, it is not clear what impacts it will have on the District. Staff
proposes that the District allow the current situation to develop to help provide clarity and any time before the close of the proposed 90-day moratorium, this issue could be brought back to the board for further discussion. Staff responded to comments and questions from the board.
A motion was made by Director Thompson , and seconded by President Croucher and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None Absent: None to approve staffs’ recommendation:
10. BOARD a) DISCUSS OF 2020 BOARD MEETING CALENDAR
A motion was made by President Croucher, and seconded by Director Smith and
carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None
Abstain: None
Absent: None to move the May regular board meeting back to Wednesday, May 6, 2020, at 3:30 p.m.
INFORMATIONAL ITEMS
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11. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR
INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) DISCUSS OTAY WATER DISTRICT’S CORONAVIRUS (COVID-19)
RESPONSE
General Manager Martinez provided an update on any impacts to the District from the COVID-19 pandemic. He noted there are no potential or known impacts to water supply, operations and services.
Director Smith requested a summary sheet for active CIPs stating any impacts to the project (completion delays, if a project will continue to be on schedule, and expenditure changes). He stated that he is interested in the information as it impacts CIP spending and the budget which staff is currently developing. Staff
indicated that they would provide a document with such information.
b) UPDATE THE BOARD ON BUDGET CONSIDERATIONS RELATED TO THE COVID-19 EMERGENCY
Assistant Chief of Finance Koeppen updated the board on budget considerations
related to the COVID-19 pandemic. He reviewed items that staff is monitoring closely as the pandemic continues which included, water sales volume, collections, property tax revenues from potential changes in property valuations, operating expenses, etc. [please reference the attached staff report for additional details).
These impacts will be continually monitored as the FY 2021 budget is developed
and staff will present a detailed and quantified evaluation of financial impacts to the board in upcoming weeks as the situation and any impacts unfold. President Croucher stated that Standard & Poors published a report that indicated
that more government and public agencies will receive a rating downgrade than
upgrade this year due to impacts from the pandemic. He asked General Manager Martinez to forward a copy of the report to the Board. Staff responded to additional questions and comments from the board.
REPORTS
12. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report which included an update on new hires, promotions and recruitments; on America’s Water
Infrastructure Act of 2018; the SDRMA insurance renewal; the graph for sewage flows to the Metro Commission versus planned capacity; and an air-vac leak repair. Staff responded to questions and comments from the board. 13. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
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President Croucher reported that CWA is similarly responding to the impacts from
the COVID-19 pandemic on their services and operations. They are down to
essential staff and are working to keep the water flowing. They have isolated their operations staff to protect them from contact and to keep them healthy. CWA has also contacted their retirees to make arrangements for their return to work at CWA, if they are needed, to assist with operations. He lastly indicated that he would
provide a written report that would better update the board on CWA matters.
Director Smith additionally reported that CWA’s General Manager Sandy Kerl provided an update on the impacts of COVID-19 on CWA’s operations. CWA’s and MWD’s boards also discussed water revenue bonds and refunding bonds and the
risks from variable rate bonds. He stated that both boards took action on their
variable rate bonds. He shared with regard to the repair of Pipeline 5 that CWA will be performing an emergency shutdown around April 6, 2020 to install two (2) carbon fiber bulkhead replacements. He lastly shared that MWD had provided a series of helpful public relations related videos and slides related to COVID-19 to
help the public better understand how water agencies are being affected. It was
indicated that the link to the materials would be forwarded to District Secretary Cruz who would share it with the full board. Director Smith indicated that if the District found any of the materials useful, MWD is open to having the links shared on agencies’ websites.
14. DIRECTORS' REPORTS/REQUESTS Director Smith reported that he has submitted a written report to District Secretary Cruz, which will be attached to the minutes of today’s meeting.
Director Thompson indicated that he apologizes to the board, but he did not prepare his written report for the meetings he attended and would provide his report verbally quickly. He reported that he attended the following meetings:
• March 11, 2020, OWD Regular Board Meeting
• March 3, 2020, South County Economic Development Council Board Meeting
• March 12, 2020, CWA Board Meeting regarding the Regional Conveyance Project
• March 16, 2020, Otay WD Finance and Administration Committee
• March 16, 18, 20, 23 & 25, 2020, Otay WD Special Board Meetings to discuss COVID-19 Impacts to District
• March 30, 2020, ACWA Webinar regarding Communications During COVID-19
Director Gastelum indicated he will forward his report to District Secretary Cruz. He reported that he attended all the District’s special board meetings (as listed above in Director Thompson’s report); the CWA Board meeting regarding the Regional Conveyance Project (also listed above), and two CSDA webinars which earned the
District credit towards premium discounts from SDRMA, the District’s liability insurance provider.
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Director Robak stated that District Secretary Cruz has his report which will be
attached to the minutes of this meeting. 15. PRESIDENT’S REPORT
President Croucher’s report is attached. He indicated that he wished to remind
everyone that during stressful times, you don’t know what stresses others are dealing with and to please be patient with each other during this challenging time. He thanked everyone for their efforts.
16. CLOSED SESSION
The board recessed to closed session at 5:24 p.m. to discuss the following matters: a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC
SERVICES [GOVERNMENT CODE §54957]
b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT vs. RAINBOW MUNICIPAL WATER DISTRICT;
CASE NO. 37-2020-00001510-CU-WM-CTL c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT vs. FALLBROOK PUBLIC UTILITY DISTRICT; CASE NO. 37-2017-00019348-CU-WM-CTL 17. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY
ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
The board reconvened from closed session at 6:03 p.m. and General Counsel Dan Shinoff reported that the board took action on item ‘b’ above on a motion by President Croucher, seconded by Director Smith and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None
to ratify an agreement that has been entered into between Otay WD and Rainbow MWD which effectively dismiss the pending litigation. The stipulation, agreement and attachments are subject to the California Public Record Act to those who have interest.
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The board also took action on item ‘c’ above on a motion by Director Smith,
seconded by Director Gastelum and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None
Absent: None
to ratify an agreement that has been entered into between Otay WD and Fallbrook PUD to effectively dismiss the pending litigation. The stipulation, agreement and attachments are subject to the California Public Record Act to those who have
interest.
The board took no other reportable actions in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY
18. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board.
19. ADJOURNMENT With no further business to come before the Board, President Croucher adjourned the meeting at 6:06 p.m.
___________________________________
President
ATTEST:
District Secretary
9
Board of Directors Meetings Attended Form
Director Name: Gary Croucher Period Covered:
From: 3/1/20 To: 3/31/20
Item No. Date Meeting Attended Description
1.
3/9/20 Board Agenda Review Meeting Met with General Managers Watton and Martinez and General Counsels Shinoff and Blumenfeld to review the March Board Meeting Agenda
2.
3/11/20 OWD Board Meeting OWD Regular Board Meeting
3.
3/16/20 Emergency Board Mtg Discuss impacts of COVID-19 to District operations
4.
3/17/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the April 2020 board meeting.
5.
3/18/20 Special Board Meeting Update on impacts of COVID-19 to District operations
6.
3/20/20 Special Board Meeting Update on impacts of COVID-19 to District operations
7.
3/23/20 Special Board Meeting Update on impacts of COVID-19 to District operations
8.
3/25/20 Special Board Meeting Update on impacts of COVID-19 to District operations
9.
3/27/20 Board Agenda Review Meeting Met with General Manager Martinez and General Counsels Shinoff and Blumenfeld to review the April Board Meeting Agenda
Board of Directors Meetings Attended Form
Director Name: Tim Smith Period Covered:
From: 3/1/20 To: 3/31/20
Item
No.
Date Meeting Attended Description
1.
3/11/20 OWD Regular Board
Meeting
Monthly Board Meeting
2.
3/12/20 CWA Matters Meeting Discuss CWA Matters with GM and Director Croucher
3.
3/16/20 OWD Special Board
Meeting
Special Board Meeting - Coronavirus
4.
3/17/20 EO&WR Committee Reviewed items that will be presented at the April Board
Meeting
5.
3/18/20 OWD Special Board
Meeting
Special Board Meeting – COVID-19 Update
6.
3/20/20 OWD Special Board
Meeting
Special Board Meeting – COVID-19 Update
7.
3/23/20 OWD Special Board
Meeting
Special Board Meeting – COVID-19 Update
8.
3/25/20 OWD Special Board
Meeting
Special Board Meeting – COVID-19 Update
9.
3/27/20 OWD Special Board
Meeting
Special Board Meeting – COVID-19 Update
10.
-Instructions on Reverse -
EXHIBIT B
(Director’s Signature)
GM Approval: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $
INSTRUCTIONS ON REVERSE
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Hector Gastelum Period Covered:
Employee Number: 1860 From: 3/1/2020 To: 3/31/2020
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED
MILEAGE
HOME to OWD
OWD to HOME
MILEAGE
OTHER
LOCATIONS
1
3/11 MONTHLY OWD MEETING 18
2 3/12 SPECIAL IMPORTED WATER
Committee Meeting @sdcwa
Colorado Work Grou update on Regional
Conveyance System Study
46
3 3/16 Emergency Teleconference
Meeting of the Board of Directors
4
3/18 CSDA Webinar Ethics Webinar
5
3/20 Emergency Teleconference
Meeting of the Board of Directors
6
3/23 Emergency Teleconference
Meeting of the Board of Directors
7
3/25 Emergency Teleconference
Meeting of the Board of Directors
8
3/29 CSDA Webinar Annual Employment law update; recent
cases and trends
9 3/30 ACWA Webinar Communicating during a crisis
10 3/31 CSDA Webinar How to collect unpaid bills
11
12
13
18 46
64
Total Meeting Per Diem: 1520.00
($152 per meeting)
64
Total Mileage Claimed: miles
Recvd 5/15/20 SC
Mark Robak
7014 From:3/1/2020 3/31/2020
ITEM DATE MEETING PURPOSE / ISSUES
MILEAGE HOME
TO OWD OWD TO
HOME
MILEAGE
OTHER
LOCATIONS
1 3/2/2020 Ad Hoc Salt Creek Golf
Course Committee Discuss property disposition 0 12
2 3/3/2020 East County Chamber of
Commerce
Government Afffairs & Infrstraucture
Committee 0 10
3 3/5/2020 SD Chamber Sustainability &
Industry Committee Tour of PureWater San Diego Facility 0 32
4 3/5/2020 Metro JPA Meeting Monthly Meeting - No Charge 0 24
5 3/11/2020 OWD Board Meeting OWD Monthly Board Meeting 4 6
6 3/12/2020 San Diego County Water
Authority Regional Conveyence Presentation 0 20
7 3/16/2020 Finance & Administration
Committee
Discussed District finance and administration
items 0 0
8 3/16/2020 OWD Board Meeting Special Board Meeting to Discuss Coronavirus
response - No Charge 0 0
9 3/18/2020 OWD Board Meeting Special Board Meeting to Discuss Coronavirus
response 0 0
10 3/20/2020 LAFCO Special Disticts
Advisory Committee
Discussed ongoing workplan, budget and other
items 0 0
11 3/20/2020 OWD Board Meeting Special Board Meeting to Discuss Coronavirus
response - No Charge 0 0
12 3/23/2020 OWD Board Meeting Special Board Meeting to Discuss Coronavirus
response 0 0
13 3/25/2020 OWD Board Meeting Special Board Meeting to Discuss Coronavirus
response 0 0
14 3/26/2020 SDCWA Board Meeting Monthly Meeting - No Charge 0 0
4 104
$ 1,520
108 Miles
GM Receipt: Date: ___________________
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________
Pay To:Period Covered
Employee Number
Total Mileage
Claimed:
Director Signature
($152 PER MEETING)
Total Meeting Per
Diem:
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
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MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS
OTAY WATER DISTRICT January 16, 2020
1.The meeting was called to order by President Croucher at 8:02 a.m.
2.ROLL CALL
Directors Present:Croucher, Gastelum and Smith (Robak and Thompson joined the meeting during Closed Session)
Staff Present: General Manager Mark Watton, Attorney Jeanne Blumenfeld, Human Resources Manager Kelli Williamson, District Secretary Susan Cruz and others per attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Gastelum, seconded by Director Smith and carried
with the following vote:
Ayes: Directors Croucher, GasteIum and Smith Noes: None Abstain: None
Absent: Robak and Thompson
to approve the agenda.
5.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
RECESS TO CLOSED SESSION
6.CLOSED SESSION
The board recessed to closed session at 8:03 a.m. to discuss the following matter:
a)PUBLIC EMPLOYMENT [GOVERNMENT CODE §54957]
TITLE: GENERAL MANAGER
AGENDA ITEM 4
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The board reconvened at 9:46 a.m. and Attorney Jeanne Blumenfeld indicated that the board took no reportable actions in closed session.
7. ADJOURNMENT With no further business to come before the Board, President Croucher adjourned the meeting at 9:46 a.m.
___________________________________ President
ATTEST:
District Secretary SC:TRK
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MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS
OTAY WATER DISTRICT
March 18, 2020
1.The meeting was called to order by President Croucher at 12:02 p.m.
2.ROLL CALL
Directors Present:Croucher, Gastelum, Robak, Smith and Thompson
Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Chief Financial Officer Joe Beachem, Chief of Operations Pedro Porras, Chief of Engineering Rod Posada, Chief of Administration and
Information Technology Adolfo Segura, Asst. Chief of Finance
Kevin Koeppen, Asst. Chief of Engineering, Dan Martin, District Secretary Susan Cruz and others per attached list.
3.PLEDGE OF ALLEGIANCE
4.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TOSPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'SJURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
5.DISCUSS OTAY WATER DISTRICT’S CORONAVIRUS (COVID-19) RESPONSE
General Manager Jose Martinez presented an update of how the District is
responding to the Federal, State and Local Orders. He also provided a response to
the board’s inquiries/requests from the March 16th special board meeting. OnMarch 16th, customers received a notification via email that the District would beclosing its lobby effective March 18, 2020. Customers who do not have email orsocial media access were notified via auto phone dialer.
Communications Officer Tenille Otero presented a draft COVID-19 postcard withinformation that the virus has no impact on the District’s tap water and is safe todrink. The postcard also directs customers to the District’s website for additionalinformation.
Staff responded to comments and questions from the board concerning the draftCOVID-19 postcard. Because of the cost to print and mail the postcard,approximately $15,000, Director Thompson stated that he is not in favor of sending
AGENDA ITEM 4
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it to customers since the District has not received many phone calls concerning the COVID-19 pandemic.
A motion was made by President Croucher, seconded by Director Smith and carried
with the following vote: Ayes: Directors Croucher, Gastelum, Robak and Smith Noes: Director Thompson
Abstain: None
Absent: None to approve the printing and mailout of the COVID-19 postcard to customers.
President Croucher requested that board members complete COVID-19 training.
General Counsel Jeanne Blumenfeld reported than an Executive Order from Governor Newsom suspends individual gatherings at local governing agency meetings and provides flexibility to Brown Act requirements.
RECESS TO CLOSED SESSION 6. CLOSED SESSION
The board recessed to closed session at 12:45 p.m. to discuss the following matter:
a) EMERGENCY DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957]
RETURN TO OPEN SESSION
7. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
The board reconvened from closed session at 12:57 p.m. and General Counsel Dan
Shinoff reported that the board took no reportable actions in closed session. 8. ADJOURNMENT
With no further business to come before the board, President Croucher adjourned
the meeting at 12:57 p.m.
___________________________________
President
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ATTEST:
District Secretary SC:TRK
STAFF REPORT
TYPE MEETING:Regular Board MEETING DATE: June 3, 2020
SUBMITTED BY:Michael J. Long
Engineering Manager
PROJECT: P2083-001103
P2562-001103
DIV. NO.2
APPROVED BY: Rod Posada, Chief, Engineering
Jose Martinez, General Manager
SUBJECT:Approval of Change Order No. 7 in an amount not-to-exceed
$60,567.00 to the Construction Contract with Pacific Hydrotech
Corporation for the 870-2 Pump Station Replacement Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
authorize the General Manager to execute Change Order No. 7 to the
existing construction contract with Pacific Hydrotech Corporation
(Pacific Hydrotech) in the amount of $60,567.00 for the 870-2 Pump
Station Replacement Project (Project) (see Exhibits A and B for
Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to execute
Change Order No. 7 in the amount of $60,567.00 to the construction
contract with Pacific Hydrotech for the 870-2 Pump Station
Replacement Project.
AGENDA ITEM 6a
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ANALYSIS:
The District’s existing High Head (870-1) and Low Head (571-1) Pump
Stations constructed in 1962 and 1966, respectively, have reached the
end of their useful lives. The 870-2 Pump Station Project will
replace these facilities and includes replacement of existing
Reservoir inlet/outlet piping, construction of recirculation system
pumps, and a chloramine disinfection booster system. Improvements of
the access road and the installation of utilities for electrical,
gas, sewer, and communication services are also included.
The 870-2 Pump Station Replacement Project also includes the
replacement of the 571-1 Reservoir (36.7 MG) floating cover and
liner. The 571-1 Reservoir was originally built in 1967. In 1993
the District retrofitted the existing Reservoir to install a
reservoir liner and floating cover. The existing liner and floating
cover were more than 24 years old and nearing the end of their useful
lives. As part of the overall Project, the existing Reservoir outlet
stub-out piping located beneath the Reservoir was replaced, which
allows the new 870-2 Pump Station to simultaneously perform its
primary function (pump from the 571-1 Reservoir to the 870-1
Reservoir), recirculate the 571-1 Reservoir, and also achieve a
future function (pump from the 571-1 Reservoir to the 624 Pressure
Zone). The replacement of the cover and liner under this Project
mitigates having to take this critical Reservoir out of service a
second time within the next few years.
The demolition of the Low Head and High Head Pump Stations will be
completed at a later date (not part of this Project) when the new
870-2 Pump Station has been brought online and completed its warranty
period.
At the July 5, 2017 Board Meeting, the Board awarded a construction
contract in the amount of $16,925,900.00 to Pacific Hydrotech. Since
the award of the construction contract, six (6) change orders have
been approved.
Change Order No. 1, which totaled $26,269.83, compensated the
contractor for changes associated with the 571-1 Reservoir cover and
liner improvements. These changes included provisions for additional
cover buoyancy floats; replacement of existing unsalvageable batten
bar anchor bolts; contractor reservoir disinfection in lieu of
contract specified District disinfection; weather related days; and
an adjustment to the contract milestone date for the 571-1 Reservoir.
In total, Change Order No. 1 added twenty-seven (27) days to the
contract.
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Change Order No. 2, which totaled $48,698.12, compensated the
contractor for changes including the following: modifications to the
new electric meter room to accommodate San Diego Gas & Electric
accessibility requirements; modifications to provide two (2) 250-
gallon aqueous ammonia tanks in lieu of one (1) 550-gallon tank to
better serve Station operations; provisions for two (2) 30-inch
magnetic flow meters in lieu of ultrasonic flow meters to provide
more resiliency and flexibility with anticipated flow conditions; and
repairs to an existing rectifier electrical conduit adjacent to the
access road. Change Order No. 2 also addressed contract time
including weather days. In total, Change Order No. 2 added sixteen
(16)days to the contract.
Change Order No. 3, which totaled $64,864.00, compensated the
contractor for several changes including the following:
modifications to the dimensions of the backup generator concrete
foundation pad; addition of structural support members for the
heating, ventilation, and air-conditioning (HVAC) equipment and
emergency generator muffler; revisions to the Stations louvers and
associated masonry; installation of door louvers for the compressor
room doors; increasing the discharge piping on the 570 zone
(recirculation) pumps to 18-inches; revisions to provide a sewn
protective thermal insulation jacket with clips for the emergency
generator muffler and exhaust piping; modifying the emergency
generator exhaust roof penetration to simplify future muffler
removal/servicing; and consolidation of exterior lighting controls in
a new contactor and control panel. Change Order No. 3 also addressed
contract time including weather days. In total, Change Order No. 3
added twenty-five (25) days to the contract.
Change Order No. 4, which totaled $49,157.89, compensated the
contractor for several changes including the following: surge
protection for indoor devices; additional pipe supports; spare engine
exhaust catalysts; modification to Victaulic couplings; and
relocation of chemical analyzers. Change Order No. 4 also reconciled
credits associated with the unused portions of the
Environmental/Regulatory Compliance and Reservoir Improvement
Allowance items. Change Order No. 4 also addressed contract time
including weather days. In total, Change Order No. 4 added forty-
four (44) days to the contract.
Change Order No. 5, which totaled $95,725.00, compensated the
contractor for several changes including the following: profile and
alignment revisions to the 66-inch and 30-inch discharge yard piping
and suction header elevation; modifications to the Type D emergency
batteries and test switch locations; addition of a fuel containment
structure; providing position switches at the surge tank isolation
valve; modifications to the thermal insulation for the pump engine
coolant line piping; fire rated door hardware at door D-12; addition
4
of bollards and a metal protective enclosure at the diesel fuel lines
entrance location to the Pump Station; revisions to the suction
header platform handrail; revisions to the pump engine natural gas
pipe sizes; modifications to the cable tray support; ethernet
communications to the pump engines; additional costs associated with
dewatering existing vault No. 7; elevation and layout modifications
to the suction header walkway and engine platform structures; and
credits for unused items. Change Order No. 5 also addressed contract
time including weather days. In total, Change Order No. 5 added
thirty-eight (38) days to the contract.
Change Order No. 6, which totaled $40,125.89, compensated the
contractor for several changes including the following: Credits
associated with revisions to chain link fencing; Modifications to the
overhead crane electrical feed circuit; Installation of flashing
around pump engine exhaust canopy roof penetration; Handrail and
steps at the fuel containment structure; Incorporation of handwheels
on all suction header valves; Type II gate well frames and lids;
Additional conduit between CP-100 and the telephone backboard;
Additional electrical grounding of the gas engines; Custom grade
adjustment for the oil interceptor; Relocation of pump engine
batteries; and modifications to the planned hydroseed mix. Change
Order No. 6 also addressed contract time including weather days. In
total, Change Order No. 6 added twenty-seven (27) days to the
contract.
Change Order No. 7, which is the subject of this staff report,
provides for the following twelve (12) items, as detailed in the
attached Exhibit C:
1.Revisions to the ammonia alarm horn/beacon mounting location.
2.Provides for cathodic protection jumper wires at the meter
vault and cathodic system retesting.
3.Installation of concrete curbs at unpaved access road
crossings.
4.Additional data communication and programming for chlorine
analyzers.
5.Revisions to programming for pump emergency stop buttons.
6.Installation of additional UPS receptacles.
7.Replacement of sodium hypochlorite and ammonia pressure
switches.
8.Revisions to the trip rating of panel LP-2 main circuit
breaker.
9.Modifications to the site drainage at the Pump Station
entrance.
10.Provides custom protective enclosures for fuel piping.
11.Provides type II gate well frame/lid to provide tracer wire
access.
12.Addition of nine (9) days due to weather impacts.
5
In total, the cost associated with the items in Change Order No. 7 is
$60,567.00. Time impacts associated with this change are also
provided in Exhibit C. The forty-seven (47) additional days added to
the contract will result in a revised total contract duration of
1,024 calendar days.
As of May 2020, the physical construction of the 870-2 Pump Station
is approximately 99% percent complete and Project startup is
underway.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2083, as approved in the FY 2020 budget, is
$19,550,000. Total expenditures, plus outstanding commitments and
forecast, are $19,547,852. See Attachment B-1 for the budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that the budget is sufficient to support the Project.
The total budget for CIP P2562, as approved in the FY 2020 budget, is
$2,900,000. Total expenditures, plus outstanding commitments and
forecast, including this contract, are $2,877,536. See Attachment B-
2 for the budget detail. Based on a review of the financial budget,
the Project Manager anticipates that the budget is sufficient to
support the Project.
The Finance Department has determined that, under the current rate
model, 100% of the funding is available from the Replacement Fund for
CIP P2083 and for CIP P2562.
GRANTS/LOANS:
Engineering staff researched and explored grants and loans and found
none currently available for this Project.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
exceptional water and wastewater service to its customers, and to
manage District resources in a transparent and fiscally responsible
manner” and the District’s Vision, “To be a model water agency by
providing stellar service, achieving measurable results, and
continuously improving operational practices.”
6
LEGAL IMPACT:
None.
MJL/RP:jf
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Staff Reports\BD 06-03-20 Pacific Hydrotech Change
Order 7\BD 06-03-20 Staff Report CO No. 7 for 870-2 PS.docx
Attachments: Attachment A – Committee Action
Attachment B1 – P2083 Budget Detail
Attachment B2 - P2562 Budget Detail
Exhibit A – 870-2 Pump Station Project Location
Exhibit B - 870-2 Pump Station Project Detail Map
Exhibit C – Change Order No. 7
ATTACHMENT A
SUBJECT/PROJECT:
P2083-001103
P2562-001103
Approval of Change Order No. 7 in an amount not-to-exceed
$60,567.00 to the Construction Contract with Pacific
Hydrotech Corporation for the 870-2 Pump Station
Replacement Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a Committee Meeting held on May 19,
2020 and the following comments were made:
•Staff recommended that the Board authorize the General Manager
to execute Change Order No. 7 to the existing construction
contract with Pacific Hydrotech Corporation (Pacific Hydrotech)
in the amount of $60,567.00 for the 870-2 Pump Station
Replacement Project (Project).
•Staff discussed Change Orders No. 1-6. Details of these change
orders are provided on pages 2 through 4 of the staff report.
•Details of Change Order No. 7 and time impacts associated with
this change are provided in Exhibit C of the staff report. It
was noted that the forty-seven (47) additional days added to the
contract will result in a revised total contract duration of
1,024 calendar days.
•The physical construction of the 870-2 Pump Station is
approximately 99% complete and Project startup has begun. Staff
indicated that the total Change Order rate to-date, including
allowances, is 2.3%. A final change order, Change Order No. 8,
is anticipated for approximately $60,000 to close out the
Project.
•Following a discussion, staff affirmed to the Committee that all
items included in Change Order No. 7 are solely the
responsibility of the District. It was noted that for Change
Order No. 8, staff will produce a more detailed explanation of
the reasons for each individual item.
•In response to a question from the Committee, staff stated that
Change Order No. 8 is associated with improving the design of
the pump station that will help with future maintainability,
long term operations, and changes that will comply with current
requirements.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board as a
Consent Item.
ATTACHMENT B-1 – P2083 Budget Detail
SUBJECT/PROJECT:
P2083-001103
P2562-001103
Approval of Change Order No. 7 in an amount not-to-exceed
$60,567.00 to the Construction Contract with Pacific
Hydrotech Corporation for the 870-2 Pump Station
Replacement Project
5/11/2020
Budget
19,550,000 Planning
Consultant Contracts 100,000 78,075 21,925 100,000 HELIX ENVIRONMENTAL17,094 17,094 - 17,094 JONES & STOKES ASSOCIATES INC211,296 211,296 - 211,296 ICF JONES & STOKES INCRegulatory Agency Fees 2,109 2,109 - 2,109 CA DEPT OF FISH & WILDLIFE
720 720 - 720 CALIFORNIA REGIONAL WATER1,570 1,570 - 1,570 SAN DIEGO COUNTY WATER AUTH
3,924 3,924 - 3,924 STATE WATER RESOURCESService Contracts 2,260 2,260 - 2,260 COUNTY OF SAN DIEGO
164 164 - 164 SAN DIEGO DAILY TRANSCRIPT505 505 - 505 THE SAN DIEGO UNION-TRIBUNE
Standard Salaries 219,920 219,920 - 219,920 Fixed Asset 580,444 580,444 - 580,444
Total Planning 1,140,008 1,118,083 21,925 1,140,008 Design 001102
Consultant Contracts 136 136 - 136 THE WATCHLIGHT CORPORATION4,850 4,850 - 4,850 BURKETT & WONG ENGINEERS INC14,068 14,068 - 14,068 SOUTHERN CALIFORNIA SOIL3,034 3,034 - 3,034 RICK ENGINEERING COMPANY4,625 4,625 - 4,625 ROGER B WOODHULL22,149 22,149 - 22,149 NINYO & MOORE GEOTECHNICAL AND10,484 10,484 - 10,484 HUNSAKER & ASSOCIATES6,086 6,086 - 6,086 HDR ENGINEERING INC
682,870 682,870 - 682,870 CAROLLO ENGINEERS INC7,974 7,974 - 7,974 AEGIS ENGINEERING MGMT INC
Regulatory Agency Fees 3,694 3,694 - 3,694 SAN DIEGO GAS & ELECTRIC20,000 18,348 1,652 20,000 COUNTY OF SAN DIEGO
Service Contracts 98 98 - 98 DAILY JOURNAL CORPORATIONStandard Salaries 677,054 677,054 - 677,054
Supplier Contracts 5,350 5,350 - 5,350 INLAND AERIAL SURVEYS INC
Total Design 1,462,472 1,460,820 1,652 1,462,472
Construction
Construction Contracts 2,000 790 1,210 2,000 CLARKSON LAB & SUPPLY INC13,973,627 13,269,381 704,246 13,973,627 PACIFIC HYDROTECH CORPORATION60,567 - 60,567 60,567 Pacific Hydrotech Co. CO No. 7735,454 698,389 37,066 735,454 PACIFIC WESTERN BANKConsultant Contracts 437,691 412,363 25,328 437,691 CAROLLO ENGINEERS INC1,319 1,319 - 1,319 NINYO & MOORE GEOTECHNICAL AND9,225 9,225 - 9,225 NV5 INC17,623 17,623 - 17,623 RBF CONSULTING1,069,994 910,838 159,157 1,069,994 MICHAEL BAKER INT'L INC438 438 - 438 NINYO & MOORE GEOTECHNICALOTHER AGENCY FEES 211,542 211,542 - 211,542 SAN DIEGO GAS & ELECTRIC
29 29 - 29 PARKING & TOLLSProfessional Legal Fees 276 276 - 276 ARTIANO SHINOFF
280 280 - 280 STUTZ ARTIANO SHINOFFRegulatory Agency Fees 15,000 9,064 5,936 15,000 COUNTY OF SAN DIEGO
Service Contracts 3,628 3,628 - 3,628 MAYER REPROGRAPHICS INC119 119 - 119 SAN DIEGO DAILY TRANSCRIPT
Standard Salaries 240,000 208,223 31,777 240,000 60,000 - 60,000 60,000 Security System15,000 - 15,000 15,000 Communications ConnectionContingency93,710 - 93,710 93,710 0.6% of Construction Contract
Total Construction 16,947,520 15,753,525 1,193,996 16,947,520
Grand Total 19,550,000 18,332,427 1,217,573 19,550,000
Vendor/Comments
Otay Water District
p2083-PS - 870-2 Pump Station Repl
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
ATTACHMENT B-2 – P2562 Budget Detail
SUBJECT/PROJECT:
P2083-001103
P2562-001103
Approval of Change Order No. 7 in an amount not-to-exceed
$60,567.00 to the Construction Contract with Pacific
Hydrotech Corporation for the 870-2 Pump Station
Replacement Project
5/11/2020
Budget
2,900,000
Planning
Regulatory Agency Fees 50 50 -50 PETTY CASH CUSTODIAN
Total Planning 50 50 -50
Design 001102
Standard Salaries 51,320 51,320 -51,320
Total Design 51,320 51,320 -51,320
Construction
206 206 -206 CLARKSON LAB & SUPPLY INC
2,414,577 2,384,358 30,218 2,414,577 PACIFIC HYDROTECH CORPORATION
127,083 125,493 1,590 127,083 PACIFIC WESTERN BANK
Consultant Contracts 129,300 129,300 -129,300 MICHAEL BAKER INT'L INC
Standard Salaries 30,000 15,916 14,084 30,000
Contingency 125,000 - 125,000 125,000 4.9% of Construction Contract
Total Construction 2,826,166 2,655,273 170,893 2,826,166
Grand Total 2,877,536 2,706,643 170,893 2,877,536
Vendor/Comments
Otay Water District
p2562-Res - 571-1 Reservoir Cover/Liner Replac
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
OTAY WATER DISTRICT870-2 PUMP STATIONLOCATION MAP
EXHIBIT A
CIP P2083F
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit A, Location Map, May 2016.mxd
ROLLRESERVOIR(571-1)
LOW HEADPUMP STATION
HIGH HEADPUMPSTATION
FOR PROJECT DETAILSEE EXHIBIT B
ACCESS FROMALTA RD
OWD PROPERTY LINE(APPROX)
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VICINITY MAP
PROJECT SITE
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DIV 2
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DIV 3
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OTAY WATER DISTRICT870-2 PUMP STATIONPROJECT DETAIL MAP
EXHIBIT B
CIP P2083F
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit B, Project Detail Map, May 2016.mxd
0 10050
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Legend
ExistingEasementOWD
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ExistingWaterOWD
OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA. 91978, (619) 670-2222
CONTRACT/P.O. CHANGE ORDER No. 7
PROJECT/ITEM: 870-2 Pump Station Replacement
CONTRACTOR/VENDOR: Pacific Hydrotech Corporation REF.CIP No.: P2083/P2562
APPROVED BY: Board REF. P.O. No: 720067 DATE: 5/7/20
DESCRIPTION:
See attached page 2 of 4 for continuation.
REASON:
See attached page 3 of 4 for continuation.
CHANGE P.O. TO READ:
Revise Contract to add $60,567.00 and add 47 days time for a total Contract amount of $17,311,307.73 with a Contract Duration of 1024 Calendar Days.
ORIGINAL CONTRACT/P.O. AMOUNT: $ 16,925,900.00 ADJUSTED AMOUNT FROM PREVIOUS CHANGE: $ 324,840.73 TOTAL COST OF THIS CHANGE ORDER: $ 60,567.00
NEW CONTRACT/P.O. AMOUNT IS: $ 17,311,307.73 ORIGINAL CONTRACT COMPLETION DATE: 10/4/19 CONTRACT/P.O. TIME AFFECTED BY THIS CHANGE: Yes REVISED CONTRACT COMPLETION DATE: 5/15/20
IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS, THAT THE CONTRACTOR/VENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES. IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O. ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O. REMAIN IN FULL FORCE AND EFFECT.
CONTRACTOR/VENDOR: STAFF APPROVALS:
SIGNATURE: PROJ. MGR: DATE:
NAME: David Power ASST CHIEF: DATE:
TITLE: Project Manager DATE: CHIEF: DATE:
COMPANY & Pacific Hydrotech Corporation ADDRESS: 314 E. 3rd Street DISTRICT APPROVAL:
Perris, CA 92570 GEN. MANAGER: DATE:
COPIES: FILE (Orig.), CONTRACTOR/VENDOR, CHIEF-ENGINEERING,CHIEF-FINANCE,ENGR. MGR.
ACCTS PAYABLE,INSPECTION,PROJ. MGR.,ENGR. SECRETARY,PURCHASING,PROJECT BINDER
EXHIBIT C
Contract / P.O. Change Order No. 7 page 2 of 4 Description of Work
Description
Increase Decrease Time
Item No. 1: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for revisions to the ammonia alarm horn/beacon mounting location per COR 89R1.
$3,290.00 2
Item No. 2: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for cathodic protection jumper wires at the meter vault and cathodic system retesting per COR 120.
$4,335.00 1
Item No. 3: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for installation of concrete curbs per COR 121. $2,264.00 1
Item No. 4: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides additional data communication and programming for chlorine analyzers per COR 123.
$23,024.00 4
Item No. 5: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides programming revisions to pump emergency stop buttons per COR 1129R1.
$7,939.00 1
Item No. 6: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides additional UPS receptacles in CP-100 per COR 130. $1,527.00 1
Item No. 7: Charges attributable to the 870-2 PS (CIP 2083). This Change Order replaces sodium hypochlorite and ammonia pressure switches per COR 131. $10,981.00 28
Item No. 8: Charges attributable to the 870-2 PS (CIP 2083). This Change Order revises the trip rating of panel LP-2 main circuit breaker per COR 132. $846.00 0
Item No. 9: Charges attributable to the 870-2 PS (CIP 2083). This Change Order modifies site drainage at the pump station entrance per COR 135. $2,559.00 0
Item No. 10: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides custom protective enclosures for fuel piping per COR 137. $2,968.00 0
Item No. 11: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides one type II gate well frame/lid to provide tracer wire access per COR 137.
$834.00 0
Item No. 12: Add nine (9) calendar days due to weather impacts per Contract Specifications 00700-8.5. $0.00 $0.00 9
Sub Total Amount $60,567.00 $0.00 47
Total Net Change Order Amount $60,567.00
Contract / P.O. Change Order No. 7 page 3 of 4
Reason: Item No. 1: The Contract included SCADA programming for a high ammonia alarm but did not specify the type of alarm or mounting location. This Change Order is required to provide and install the programmed high ammonia alarm in the ammonia storage room resolving all costs associated with COR 89R1. Item No. 2: The Contract initially included an ultrasonic flow meter which was changed to a magnetic flow meter. As part of the magnetic flow meter installation dielectric isolation was required to allow the meters to function properly. This change order is required to provide and install cathodic bonding jumper wires and retest the impressed current cathodic system. This change order is required to implement the required modifications resolving all costs associated with COR 120. Item No. 3: The Contract included new asphalt concrete paved access roads with redwood headers. The new roads crossed existing
SDG&E, San Diego Sheriff’s and District unpaved access roads. The specified redwood headers at these vehicle crossings would not have maintained functionality over the road’s intended life span requiring installation of concrete curb/headers at these crossing locations to ensure continued serviceability of the roads. This change order is required to implement the required modifications resolving all costs associated with COR 121. Item No. 4: During functional testing it was determined that Operations required monitoring and trending of chlorine analyzer data points not monitored by SCADA. This determination required incorporation of a new communication interface with the chlorine analyzers and additional SCADA programming to deliver the desired functionality. This change order is required to implement the required modifications resolving all costs associated with COR 123. Item No. 5: The Contract provided motor starter circuit diagrams indicated a controlled and sequential pump shutdown when the emergency stop button was depressed. During functional testing is was determined by Operations that the emergency stop button should stop pump rotation immediately and initiate an alarm condition on SCADA. This determination required wiring and programming modifications to the reduced voltage motor starter and SCADA to provide the desired functionality. This change order is required to implement the modification resolving all costs with COR 129R1. Item No. 6:
During functional testing it was determined by Operations that existing non-UPS convenience outlets in panel CP-100 should be connected to the uninterruptable power supply (UPS) to provide the desired functionality. This change order is required to implement the modification resolving all costs with COR 130. Item No. 7: During functional testing it was determined that the specified sodium hypochlorite and ammonia pressure switches did not provide the desired level of accuracy to shut down the system in the event of a pressure surge. This resulted in the determination to replace both pressure switches to provide the desired response accuracy increasing the safety of the chemical injection system. This change order is required to implement the modification and resolve all costs associated with COR 131. Item No. 8: Subsequent to design review of the short circuit coordination study the designer required the main breaker for panel LP-2 to be changed from a 250AT rating to a 150AT rating requiring replacement of an installed component to achieve the desired circuit breaker trip rating. This change order is required to implement the modification and resolve all costs associated with COR 132. Item No. 9: Subsequent to multiple rain events and final grading it was determined that an area near the pump station gate did not effectively drain which could have detrimentally impacted the new access road over time. This resulted in the determination to incorporate an additional area drain to improve the drainage condition increasing the anticipated serviceability of the new access road. This change order is required to implement the modification and resolve all costs associated with COR 136. Item No. 10: During construction, revisions were made to how the diesel fuel transfer fuel lines entered the building and fuel containment structure exposing the piping undesirable visual and sun/weather conditions. This resulted in the determination to construct protective enclosures for the piping at the building and fuel containment penetration locations. This change order is required to implement the modification resolving all costs with COR 136. Item No. 11: During construction it was determined that the plans did not incorporate the District standard two-piece gate well lids as part of the included details for tracer wire access. This change order is required to implement the modification and resolve all costs associated with COR 137.
Contract / P.O. Change Order No. 7 page 4 of 4 Item No. 12: Contract Documents Section 00700-8.5 provides for no cost time extensions due to weather impacts on the project progress. Weather impacted the project nine (9) days between March 1, 2020 and April 30, 2020. The project was impacted on March 12, 13, 18 and 19, April 6, 7, 8, 10 and 13, 2020 due to weather.
870-2 Pump Station Replacement Project Project: P2083/P2562
Consultant/Contractor: Pacific Hydrotech Corporation Subproject: 001103
APPROVED
C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O.
1 $26,269.83 GM 5/18/2018
Change order provides for additional buoyancy floats,
anchor bolts, and a modified disinfection procedure for the
571-1 Reservoir. Also addresses contract time for weather.
Contractor
2 $48,698.12 GM 1/29/2019
Electric service room modifications; ammonia storage
modifications; replace ultrasonic flow meters with magnetic
type; relocate existing rectifier power conduit; and weather
days
Contractor
3 $64,864.00 Board 4/4/2019
Bathroom fixtures; backup generator concrete foundation
pad modifications; HVAC muffler support structural
members; louver and pilaster modifications; door louvers;
increase pump discharge pipe size to 18-inch; modify
emergency generator thermal insulation; emergency
generator exhaust roof penetration; exterior lighting controls
modifications; weather days.
Contractor
4 $49,157.89 Board 11/7/2019
Change order addresses 28 specific items including but not
limited to surge protection for indoor devices, additional pipe
supports, exhaust fan for EF-4, spare exhaust catalyst,
modifications to Victaulic couplings, relocation of chemical
analyzers. Also includes time adjustments and weather
days.
Contractor
5 $95,725.00 Board 2/6/2020
Change order addresses 23 specific items including but not
limited to profile and alignment revisions to the 66-inch and
30-inch discharge yard piping; addition of a fuel containment
structure; modifications to emergency batteries and test
switch locations; modifications to the thermal insulation for
the pump engine coolant line piping; Ethernet
communication to the pump engines; modifications to the
suction header walkway and engine platform structures; and
credits for unused allowance items. Also includes time
adjustments and weather days.
Contractor
6 $40,125.89 Board 3/9/2020
Change Order addresses 12 specific items including a credit
for fencing, modifications to the crane electrical, canopy
flashing around engine exhaust, handrail and steps for fuel
containment, handwheels for suction header valves, type II
gate well frames/lids, conduit between CP-100 and
telephone backboard, additional grounding for gas engines,
grade adjustment for oil interceptor, relocation of engine
batteries, modifications to hydroseed mix, and weather days.
Contractor
7 $60,567.00 Board
Change Order addresses 12 specific items including
revisions to the ammonia alarm horn/beacon mounting
location; provides for cathodic protection jumper wires at the
meter vault and cathodic system retesting; installation of
concrete curbs at unpaved access road crossings; additional
data communication and programming for chlorine
analyzers; revisions to programming for pump emergency
stop buttons; installation of additional UPS receptacles;
replacement of sodium hypochlorite and ammonia pressure
switches; revisions to the trip rating of panel LP-2 main
circuit breaker; modifications to the site drainage at the
Pump Station entrance; provides custom protective
enclosures for fuel piping; provides type II gate well frame/lid
to provide tracer wire access; and addition of nine (9) days
due to weather impacts.
Contractor
8
9
10
Total C.O.'s To Date: $385,407.73 2.3%
Original Contract Amount:$16,925,900.00
Current Contract Amount:$17,311,307.73
Month Net C.O.$ Limit Authorization Absolute C.O.$ C.O. %
5/20 $60,657.00 $3,000 Insp $60,657.00 0.4%
$7,000 PM/Supervisor 0.0%
$15,000 Manager 0.0%
$20,000 Asst. Chief 0.0%
$30,000 Chief 0.0%
$75,000 GM 0.0%
>$75,000 Board 0.0%
CHANGE ORDER LOG
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Construction\Change Orders\COLOG_2006031 5/13/2020
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: June 3, 2020
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 Resolution No. 4379 to Continue Water and Sewer
Availability Charges for District Customers for Fiscal Year
2020-2021 to be Collected Through Property Tax Bills
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4379 to continue water and sewer
availability charges for District customers for fiscal year 2020-2021
to be collected through property tax bills.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
That the Board consider the adoption of Resolution No. 4379 to
continue water and sewer availability charges for District customers
for fiscal year 2020-2021 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 access such availability
charges. In order to place these charges on the tax roll, the County
of San Diego requires the District to provide a resolution
AGENDA ITEM 6b
2
authorizing the charges. Each year, the District provides a
resolution along with the listing of charges by parcel. 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:
A)Committee Action
B)Resolution No. 4379
ATTACHMENT A
SUBJECT/PROJECT: Adopt Resolution No. 4379 to Continue Water and Sewer
Availability Charges for District Customers for Fiscal Year
2020-2021 to be Collected Through Property Tax Bills
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on May 18, 2020 and the following comments were made:
•Staff is requesting that the board adopt Resolution No. 4379 to
continue water and sewer availability charges for District
customers for fiscal year 2020-2021 to be collected through
property tax bills.
•Staff presented information from the staff report.
Because the Committee is familiar with this item as it is presented
annually, the committee had no questions or comments and supported
staff’s recommendation and presentation to the full board on the
consent calendar.
1
RESOLUTION NO. 4379
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
OTAY WATER DISTRICT CONTINUING PREVIOUSLY
ESTABLISHED WATER AND SEWER AVAILABILITY
CHARGES FOR FISCAL YEAR 2020-2021; REQUESTING
THE COUNTY TO COLLECT SUCH AVAILABILITY
CHARGES ON THE 2020-2021 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
a
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 2020-2021 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 2020-2021 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:
(a) Application The application shall include a
statement describing the circumstances and factual
elements which support the request for deferral.
(b) 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
7
Directors within sixty (60) days after such denial. No new
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:
(a) The owner of such parcel makes a timely application
requesting deferral of the charge.
(b) 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.
(c) The owner executed a recordable agreement which
includes provisions that:
(1) set forth the enforceable restrictions
pertinent to the subject parcel;
(2) 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
8
the date such charges would have been
otherwise due and payable;
(3) 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;
(4) 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
(5) 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
9
property owner develops a parcel that is subject to a
deferral agreement without termination of said agreement.
(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, 2020.
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, 2020, 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 2020-2021 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
10
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
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.
11
7. CERTIFIED COPIES The Secretary of this District shall
deliver certified copies of this Resolution to the Board of
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 3rd day of
June, 2020.
Ayes:
Noes:
Abstain:
Absent:
President
ATTEST:
Secretary
12
I HEREBY CERTIFY that the foregoing Resolution No. 4379 was duly
adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at a
regular meeting thereof held on the 3rd day of June, 2020 by the
following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING
DATE:
June 3, 2020
SUBMITTED BY: Kevin Koeppen, Assistant Chief
of Finance
PROJECT: DIV. NO.All
APPROVED BY: Joseph R. Beachem, Chief Financial Officer
Jose Martinez, General Manager
SUBJECT: Adopt Resolution No. 4380 to Establish a Reduced Tax Rate for
Improvement District No. 27 (ID 27) for Fiscal Year
2020-2021
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4380 to establish a reduced tax
rate for Improvement District No. 27 (ID 27) at $0.0035 for fiscal
year 2020-2021.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
Improvement District No. 27 (ID 27) has outstanding general
obligation bonds which mature in fiscal year 2023 and is the only
improvement district with general obligation debt service. As of
July 1, 2020, the outstanding debt will be $2.1 million with an
interest rate of 4%. The bonds are non-callable.
At the beginning of each fiscal year staff must provide the County of
San Diego, Property Tax Services, with the tax rate to be charged
upon all property within ID 27 to ensure the amount of tax
collections will support the annual debt service requirement. Staff
recommends that the Board adopt Resolution No. 4380 to establish a
reduced tax rate for ID 27 at $0.0035 for fiscal year 2020-2021.
AGENDA ITEM 6c
2
This is a reduction from .00375 in FY 2019-2020 to .0035 in FY 2020-
2021.
BACKGROUND:
In December 1992, the District sold $11,500,000 of general obligation
bonds in ID 27 for the construction of the 30mg reservoir. The debt
and levying of the tax was approved by the voters. When the Board
subsequently approved the issuance of the debt based on voter
approval, it covenanted to levy this tax as approved by the voters.
At the time of the formation of ID 27, the District intended to have
a maximum tax rate of $0.10 per $100 of assessed valuation. The tax
rate has remained well below the intended maximum rate.
The District refinanced the bonds in fiscal year 1998 and again in
fiscal year 2010 which resulted in a reduction in the annual debt
schedule. Property valuations peaked in fiscal year 2008 at $12.5
billion, dropped below $10 billion in fiscal year 2011, and is now
valued at more than $11 billion. The combination of the reduced debt
service requirement and the increased assessed values resulted in the
District’s ID 27 reserve levels exceeding the target.
From fiscal year 2009 to fiscal year 2015, the tax rate was $0.005
and from fiscal year 2016 to fiscal year 2019, the tax rate was
reduced to $0.004. In fiscal year 2020 the tax rate was reduced
again to $.00375. During all of these years the District has covered
any tax collection shortfalls from the ID 27 reserves.
For fiscal year 2021, staff proposes to reduce the tax rate from
$0.00375 to $0.0035 and continue to cover the tax collection
shortfall from the ID 27 reserves. Staff projects that a $0.0035 tax
rate will wind down reserve levels until the expiration of the debt
on September 1, 2022. Upon expiration of the debt, staff anticipates
that the reserve will be fully depleted.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
The tax proceeds are legally restricted for the sole purpose of the
repayment of this debt. These proceeds will be collected until the
debt obligation is fully paid, at which time the fund is planned to
have a zero balance. The $0.0035 tax rate is projected to generate
$611,478 in revenue in fiscal year 2021. The projected revenue,
given the recommended tax rate combined with the current fund
balance, will meet the annual ID 27 debt service principal and
interest payment of $750,600.
3
STRATEGIC GOAL:
Through well-established financial policies and wise management of
funds, the District will continue to guarantee fiscal responsibility
to its ratepayers and the community at large.
LEGAL IMPACT:
None.
Attachments:
A)Committee Action
B)Resolution No. 4380
C)ID 27 Tables
ATTACHMENT A
SUBJECT/PROJECT: Adopt Resolution No. 4380 to Establish a Reduced Tax Rate
for Improvement District No. 27 (ID 27) for Fiscal Year
2020-2021
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on May 18, 2020 and the following comments were made:
•Staff is requesting that the Board adopt Resolution No. 4380 to
establish a reduced tax rate for Improvement District No. 27 (ID
27) at $0.0035 for fiscal year 20209-2021.
•Staff presented information from the staff report.
•The $0.0035 tax rate is projected to generate $611,478 in revenue
and the interest payment on the bonds for FY 2021 is $750,000.
The shortfall of approximately $140,000 will be covered by the
debt reserve fund. The debt is scheduled to expire on September
1, 2022 and staff anticipates the reserve will be fully depleted
by that time.
•In response to an inquiry from the Committee, staff explained
that the District has two years left in setting tax rates for ID
27 (FY’s 2022 and 2023) before the debt expires on September 1,
2022. The Committee indicated that, due to COVID-19, property
tax values may drop which may require the District to increase
the tax rate for ID 27. The Committee further added that they
would like staff to avoid increasing the rate in future years and
suggested keeping the tax rate the same as last year and,
depending on property valuations, provide a decrease in the tax
rate next fiscal year. Staff performed a sensitivity analysis of
the forecasted reserve balances as of the bonds maturity in FY
2023 based on the current rate of $0.00375 and the proposed rate
of $0.0035. The analysis projects the reserve balance at
maturity associated with a 0%, 5% and 10% decline in assessed
values as of July 1, 2021. Staff assumed the decline in assessed
values would be effective through the FY 2023 maturity. The
table on the following page summarizes the results.
The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information; being grammatically correct and free of formatting and typographical errors; accurately presenting calculated values and numerical references; and being internally consistent, legible and uniform in its presentation style.
Under the proposed rate, a 10% decline in assessed values would
result in an ending reserve deficit of $22,000, which would be
acceptable. If assessed property values do not decline staff will
propose additional reductions to the rate that would become
effective for the fiscal years beginning July 1, 2021 and/or July
1, 2022. Based on the analysis performed, the probability of
this proposed tax rate decrease being offset by a future tax rate
increase is low. While the analysis shows that a future tax rate
increase is unlikely, a more conservative approach of maintaining
the current rate can be used along with future reductions in the
tax rate.
Following the discussion, the Committee supported staff’s
recommendation and presentation to the full board on the consent
calendar.
Rate
% Decline in Assessed Property Values 0%5%10%
Current Rate 0.00375$ $200,000 $142,000 $85,000
Proposed Rate 0.0035$ $85,000 $31,000 ($22,000)
Projected Reserve Balance at Maturity
1
RESOLUTION NO. 4380
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OTAY WATER DISTRICT FIXING TAX RATES FOR
FISCAL YEAR 2020-2021 FOR PAYMENT OF
PRINCIPAL AND INTEREST ON GENERAL OBLIGATION
BONDS OF IMPROVEMENT DISTRICTS (GF 1600)
WHEREAS, California Water Code Section 72091 authorizes the
Otay Water District, as a municipal water district, to levy an
ad valorem property tax which is equal to the amount required to
make annual payments for principal and interest on general
obligation bonds approved by the voters prior to July 1, 1978.
NOW, THEREFORE, the Board of Directors of the Otay Water
District resolves, determines and orders as follows:
1. Findings. It is necessary that this Board of
Directors cause taxes to be levied in fiscal year 2020-2021 for
Improvement District No. 27 of the Otay Water District to pay
the amount of the principal and interest on the bonded debt of
such improvement district.
2. Amounts to be Raised by Taxes. The amount required to
be raised by taxation during fiscal year 2020-2021 for the
principal and interest on the bonded debt of Improvement
District No. 27 is as follows:
Improvement District No. 27 $611,478
3.Tax Rates. The tax rates per one hundred dollars
($100) of the full value of all taxable property within said
improvement district necessary to pay the aforesaid amounts of
2
principal and interest on the bonded debt of said improvement
district for fiscal year 2020-2021 is hereby determined and
fixed as follows:
Improvement District No. 27 $0.0035
4. Certification of Tax Rates. Pursuant to Water Code
Section 72094, this Board of Directors hereby certifies to the
Board of Supervisors and the County Auditor of the County of San
Diego the tax rates hereinbefore fixed, and said County Auditor
shall, pursuant to Section 72095 of said Code, compute and enter
in the County assessment roll the respective sums to be paid as
tax on the property in Improvement District No. 27, using the
rate of levy hereinabove fixed for such improvement district and
the full value as found on the assessment roll for the property
therein, and the Secretary of this Board of Directors is hereby
authorized and directed to transmit certified copies of this
resolution, Attachment B, and made a part hereof, to said Board
of Supervisors and said Auditor.
PASSED AND ADOPTED by the Board of Directors of the Otay
Water District at a regular meeting held this 3rd day of June,
2020.
Ayes:
Noes:
Abstain:
Absent:
President
3
ATTEST:
Secretary
4
I HEREBY CERTIFY that the foregoing Resolution No. 4380 was duly
adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at
a regular meeting thereof held on the 3rd day of June, 2020 by
the following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
IMPROVEMENT DISTRICT 27
History
1989 Improvement District 27 was formed with $100,000,000 bonding authorized.
1992 District issued $11,500,000 in General Obligation Bonds primarily for the constructionof a 30 million gallon storage reservoir.
1998 District refinanced outstanding debt of $10,900,000.
2009 District refinanced again outstanding debt of $7,780,000.
TAXES DEBT TAX ASSESSED
COLLECTED SERVICE NET RATE VALUATION INC%
FY03 $725,085 $848,600 ($123,515)$0.01500 $3,837,693,353 37%
FY04 $829,036 $848,700 ($19,664)$0.01400 $5,047,625,296 32%
FY05 $994,501 $840,800 $153,701 $0.01200 $6,454,909,846 28%
FY06 $1,081,991 $840,385 $241,606 $0.01000 $8,579,576,581 33%
FY 07 $862,795 $837,936 $24,859 $0.00700 $10,348,663,242 21%
FY 08 $917,168 $835,017 $82,151 $0.00600 $12,518,643,676 21%
FY 09 $747,175 $830,823 ($83,648)$0.00500 $12,308,043,285 -2%
FY 10 $605,405 $934,674 ($329,269)$0.00500 $10,378,404,507 -16%
FY 11 $606,966 $781,144 ($174,178)$0.00500 $10,131,397,697 -2.4%
FY 12 $597,799 $752,976 ($155,177)$0.00500 $9,941,622,812 -1.9%
FY 13 $650,587 $773,863 ($123,276)$0.00500 $9,869,377,173 -0.7%
FY 14 $658,147 $750,088 ($91,940)$0.00500 $10,226,148,004 3.6%
FY 15 $706,025 $748,663 ($42,638)$0.00500 $11,157,255,925 9.1%
FY 16 $612,980 $751,663 ($138,683)$0.00400 $11,904,159,221 6.7%
FY 17 $640,241 $747,969 ($107,728)$0.00400 $12,738,454,702 7.0%
FY 18 $678,655 $744,633 ($65,978)$0.00400 $13,574,290,102 6.6%
FY 19 $720,975 $749,433 ($28,458)$0.00400 $14,327,195,366 5.5%
FY 20 (1)700,712 747,200 ($46,488)$0.00375 $14,470,467,320 1.0%
(1) Due to timing of the report, taxes collected is an estimate.
TAXES DEBT TAX ASSESSEDCOLLECTEDSERVICENETRATEVALUATION INC%
Est Fund Balance 6/30/20 $416,722
FY21 611,478 750,600 ($139,122)$0.00350 $14,615,171,993 1.0%
Interest $2,601
Est Fund Balance 6/30/21 $280,202
Historical Data
Change in Fund Balance
$0
$2
$4
$6
$8
$10
$12
$14
$16
Bi
l
l
i
o
n
s
ASSESSED VALUATION10 Year History
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: June 3, 2020
SUBMITTED BY: Kevin Koeppen, Assistant
Chief of Finance
PROJECT: DIV. NO.All
APPROVED BY: Joseph R. Beachem, Chief Financial Officer
Jose Martinez, General Manager
SUBJECT: Adopt Resolution No. 4383 Amending Policy No. 25, the Reserve
Policy, of the District’s Code of Ordinances Establishing a
Sewer Rate Stabilization Fund; and Approve the Transfer of
$175,000 from the Sewer General Fund to the Sewer Rate
Stabilization Fund.
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4383 amending Policy No. 25, the
Reserve Policy, of the District’s Code of Ordinances establishing a
sewer rate stabilization fund; and approve the transfer of $175,000
from the sewer general fund to the sewer rate stabilization fund.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To present to the Board a revision of the Reserve Policy establishing
a sewer rate stabilization fund and to request that the Board approve
a transfer of $175,000 from the sewer general fund to the sewer rate
stabilization fund.
BACKGROUND:
In December of 2019, the Otay Water District Financing Authority
issued the 2019 Wastewater Revenue Bonds. The terms of financing
included provisions allowing the District’s sewer fund to establish a
rate stabilization fund (RSF) that may be used to meet covenanted
debt service coverage levels. The 2019 Wastewater Revenue Bonds are
the sewer fund’s only current debt obligation. Prior to its
issuance, the sewer fund had no outstanding debt obligations.
AGENDA ITEM 6d
ANALYSIS:
Staff is recommending that the Board establish a sewer RSF for the
purpose of reserving amounts in years where the sewer fund’s net
revenues are stronger than expected. The funds can then be used to
mitigate “rate shock” in years where net revenues are weaker in order
to manage debt service coverage.
The fund is to be used for the purpose of minimizing rate increases
in response to one-time events and therefore stabilizing the rates
and charges imposed by the District to meet covenanted debt service
coverage levels. The RSF is not intended to be used to offset
regular rate increases needed to meet routine inflationary cost
increases in operations.
The RSF target balance shall be equal to the financial impact of two
(2)consecutive years of low winter water usage and the maximum fund
balance shall be equal to the financial impact of three (3)
consecutive years of low winter water usage. Currently the
calculated target balance is $315,000 and the maximum balance is
$470,000.
The District may budget for transfers to the RSF after payment of
operating expenses for the annual debt service obligations coming due
and payable in the fiscal year. The District may only deposit
amounts into the RSF after the payment of the fiscal year debt
service obligation has been paid.
In FY 2020, the District sold property which was intended to be used
as a shared sewer and water operations yard. Approximately $175,000
of the proceeds from the land sale were credited to the sewer fund.
The bond requires that the current year’s debt obligation be paid
prior to any funds being transferred into the RSF in a fiscal year.
The current fiscal year debt obligation has been paid and the other
sewer reserves are at target levels; therefore, staff is recommending
that $175,000 of proceeds from the land sale be transferred to the
RSF at this time.
The San Diego County Water Authority (CWA) has a RSF, which it has
used to ensure that the debt coverage requirements are met during
periods of financial distress. CWA has utilized its RSF to manage
its debt service coverage in years of reduced water sales due to
conservation during droughts or above average rainfall. CWA was also
evaluating the use of RSF funds to aid in offsetting the anticipated
adverse impacts of rate pressures in FY 2021.
The District’s current outstanding water bonds are parity bond
obligations whereby each bond issuance carries the same priority of
payment and debt service coverage is calculated on a combined
basis. None of the earlier water bond issuances included the RSF, so
it did not seem advantageous to add an RSF to new water bond issues
because the RSF could not be used in the combined coverage ratio
calculation. Staff will be evaluating the inclusion of rate
stabilization provisions in the water funds future bond
issuances. For a RSF to be an effective fund used to meet debt
coverage covenants, all the outstanding debt obligations must include
similar rate stabilization fund provisions. Therefore, a water RSF
would not be available to achieve debt coverage until the current
outstanding water bonds mature or are refinanced and include the RSF
provision.
FISCAL IMPACT:
Amendments to the Reserve Policy do not have any financial impact.
The $175,000 in proceeds from the sale of the land were not included
in the FY 2020 budget or six-year rate model. These unanticipated
revenues are being recommended to be transferred to the RSF because
they were unanticipated and all reserves are at or above target
levels.
STRATEGIC GOAL:
The District ensures its continued financial health through long-term
financial planning and debt planning.
LEGAL IMPACT:
None.
Attachments:
A)Committee Action
B)Resolution No. 4383
Exhibit I Strike-through Policy No. 25
C)Proposed Policy No. 25
ATTACHMENT A
SUBJECT/PROJECT: Adopt Resolution No. 4383 Amending Policy No. 25, the
Reserve Policy, of the District’s Code of Ordinances
Establishing a Sewer Rate Stabilization Fund; and Approve
the Transfer of $175,000 from the Sewer General Fund to the
Sewer Rate Stabilization Fund.
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on May 18, 2020 and the following comments were
made:
•Staff is requesting that the Board adopt Resolution No.
4383 amending the Reserve Policy, Policy No. 25, of the
District’s Code of Ordinances establishing a sewer rate
stabilization fund; and approve the transfer of $175,000
from the sewer general fund to the sewer rate stabilization
fund (RSF).
•Staff presented information from the staff report.
•In response to an inquiry from the Committee, staff stated
that the debt documents set stipulations on how monies can
be deposited to the RSF and how monies can be taken out of
the RSF. The RSF will provide for another tool for the
District to manage volatility in sewer rates.
•Staff explained, in response to another inquiry from the
Committee, that if the District wished to implement a RSF
for water, the District would either have to wait until
current water bond issuances mature or are refinanced to
include the RSF provision. Staff will be evaluating
including RSF provisions in future water bond issuances.
•It was further indicated, because the size of the
District’s water operations is much larger and diverse than
sewer operations, it is not necessarily impacted by the
variability in water use.
•Staff stated that the District’s debt coverage ratio is
also maintained at 150+%. By keeping the ratio high, it
addresses many uncertainties.
Following the discussion, the Committee supported staff’s
recommendation and presentation to the full board on the consent
calendar.
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RESOLUTION NO.4383
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT AMENDING
RESERVE POLICY NO. 25 OF THE
DISTRICT’S CODE OF ORDINANCES
WHEREAS, the Otay Water District Board of Directors have
been presented with an amended Reserve Policy No. 25 of the
District’s Code of Ordinances for the financial management of
the Otay Water District; and
WHEREAS, the amended Reserve Policy has been reviewed and
considered by the Board, and it is in the interest of the
District to adopt the amended Reserve Policy; and
WHEREAS, the strike-through copy of the proposed policy is
attached as Exhibit 1 to this resolution; and
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by
the Board of Directors of the Otay Water District that the
amended Policy No. 25, incorporated herein as Attachment C, is
hereby adopted.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
Otay Water District at a board meeting held this 3rd day of June,
2020, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
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________________________
President
ATTEST:
____________________________
District Secretary
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1.0 The District
The Otay Water District is a California municipal water district,
authorized in 1956 by the State Legislature under the provisions
of the Municipal Water District Act of 1911. The District is a
"revenue neutral" public agency; meaning each end user pays their
fair share of the District's costs of water acquisition,
construction of infrastructure, and the operation and maintenance
of the public water facilities.
The District provides water service within its boundaries, and
provides sewer and recycled water service within certain portions
of the District. As such, the District operates three distinct
business segments:
• Potable water
• Recycled water
• Sewer
Each of these business segments has an identifiable customer base.
In addition, the developer community, large and small, makes up a
significant class of customer for each business segment. As a
result, the District has four distinct customer service types:
• Developers
• Potable water users
• Recycled water users
• Sewer users
The District has established practices and developed computer
systems that have enabled the District to maintain a clear
separation between the service costs relating to each of its four
customer service types. Regardless of customer class, financial
principles regarding cost allocation and fund accounting are
fundamental to the District’s Reserve Policy. These principles
are derived from the statements of the Governmental Accounting
Standards Board (GASB), and from oversight and advisory bodies
such as the California State Auditor, the Little Hoover
Commission, and the Government Finance Officers Association
(GFOA). These have significant impacts on how the finances of
the District are organized and how financial processes work within
the organization.
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1.1 The District’s Use of Financial Resources
All of the District’s expenditures fall into two broad categories:
operating costs and capital expenditures. The operating costs
include costs relating to the purchase and delivery of potable and
recycled water, and the transportation and treatment of sewage.
The capital expenditures support the construction of
infrastructure necessary to deliver services. The District uses
various funds to support the operating and capital efforts.
Operations and maintenance is financed only by rates and charges,
also called pay-as-you-go, while capital infrastructure is
financed using two financing methods: pay-as-you-go and debt
issuance (requiring annual debt service). The Capital Improvement
Program (CIP) and the two funding methods support the
construction, betterment, and replacement of infrastructure in all
three business areas: potable, recycled, and sewer.
The District establishes different funds to track revenues
allocated to different activities. Once established, each fund
receives financial resources up to the levels defined in this
policy. Every year, as a part of the annual budget process, the
District’s rate model is updated for each fund with the current
fund balances and the estimated revenues and expenditures for the
next six years. The expenditure requirements and financial
resources are then evaluated to ensure that the existing fund
balances and additional revenues are sufficient within the current
budget cycle and for the next five years to maintain target fund
levels. If a deficit is identified, then options for transfers,
shifting CIP projects, debt, cost saving measures, and/or rate
increases are evaluated.
1.2 The District’s Capital Improvement Program (CIP)
The planning, design, and construction costs of all capital
facilities within the three business segments are allocated to
four cost types and corresponding fund categories: New Water
Supply, Expansion, Replacement, and/or Betterment. The allocation
to these four cost types is defined in the District’s Capital
Improvement Program (CIP) and is determined by an engineering
analysis that identifies which type of customer will benefit from
each facility, planned or existing. The costs of the capital
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improvements are borne by either existing users or by the
developing areas, or by a combination of the two, as applicable.
This Reserve Policy protects both the existing users and the
developing areas from incurring unwarranted costs. Developing
areas are not required to finance facilities that are replacement
or betterment and established areas are not required to replace
facilities before they are worn out because of new development.
However, to ensure a fair allocation of costs, each facility has
the potential to be classified into any or all of the four cost
types. In addition to these cost types there are occasional CIPs
that may be billable to a third party, if for example a third
party requires a District facility be relocated. Paragraphs a
through d below, describe how the costs of capital facilities are
financed through various fees.
a. New Water Supply
The portion of a new supply project that benefits new users
is financed from the reserves in the New Water Supply Fund
category. These reserves are primarily derived from proceeds
of the new water supply fee. The New Water Supply Fund is
restricted, meaning the amounts credited to this fund are
accounted for separately and are used solely for the
planning, design, and construction of the new water supply
expansion facilities. Debt financing may also be a temporary
financial resource to finance new water supply projects. The
District has a Debt Policy (Policy No. 45) that guides the
debt issuance process. Any debt proceeds used for this
purpose would be restricted in nature and tracked separately.
General use reserves may also be placed in the Designated New
Water Supply Fund and used for water supply projects.
b. Expansion
The portion of a CIP project that benefits new users is
financed from the reserves in the Expansion Fund category.
These reserves are primarily derived from proceeds of the
“incremental” portion of the capacity fees collected within
developing areas. Capacity fees are accounted for separately
and used for the planning, design, and construction of
expansion facilities. Additionally, expansion may be
financed by the “buy-in” portion of the capacity fee which is
restricted for CIP purposes, but not specifically for
expansion. Debt financing may also be a temporary financial
resource for expansion projects. General use reserves may
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also be placed in the Designated Expansion Fund and used for
expansion projects.
c. Replacement
The portion of a CIP project that benefits existing users by
replacing an existing facility is financed from the reserves
in the Replacement Fund category. Replacement of facilities
may be financed with proceeds of the “buy-in” portion of the
capacity fees, general use reserves held in the Designated
Replacement Fund, and debt proceeds. The various funding
sources available for replacement projects is anticipated to
provide the necessary flexibility to begin projects while any
necessary debt financing is being obtained.
d. Betterment
Facilities that improve reliability, meet new regulations, or
create increased levels of service are considered betterment
facilities that benefit existing users. The reserves in the
Betterment Fund category are used to finance these projects
or portions of projects. Proceeds of the “buy-in” portion of
the capacity fees may also be used to finance betterment
projects. General use reserves may be placed in the
Designated Betterment Fund and used for betterment projects.
1.21 Relocations
Occasionally, relocation of a District facility is required by a
third party. If the District has a superior easement the
relocation cost will be paid by the third party, but only to the
extent that the District does not benefit from the relocation.
When relocation is required, a CIP project may be created which is
wholly or partially financed by a third party. On occasion, the
District will require that its own facilities be relocated.
Depending on the nature of the facilities, the financial resources
for these projects could be from new water supply, expansion,
replacement, betterment or third party financing. Each project is
individually negotiated with the third party based on the facts
and circumstances of the relocation. Occasionally, the District
will improve the facilities that are being relocated. When
determining how to allocate costs to various funds the following
guideline is suggested: if a project has more than five years of
useful life remaining, an incremental cost view should be
considered; if the project has less than five years of useful life
remaining, a pro-rata cost approach should be considered. Also,
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the likelihood the District will benefit from an asset’s life
extension should be evaluated prior to allocating costs.
1.22 Oversizing
If deemed reasonable by the District, in connection with the
construction of backbone facilities, a developer may be required
to oversize new facilities for future development. The developer
is reimbursed for incremental oversizing costs as per Policy
No. 26. These reimbursements are not available for the
distribution system within a development which is an obligation
of the developer.
1.23 Exclusion of Developed Areas from Expansion Costs
Developed areas are assumed to have sufficient supply and capacity
to meet their current requirements as provided by the developers.
In addition, they are considered to have borne capital financial
costs that are at least proportionate to the benefits they have
received from capital facilities. Accordingly, no regional
capital financing costs are allocated to these areas so that they
will not incur any costs for newly developing areas, except for
capital projects that produce district-wide benefit or cost
savings.
1.24 Improvement Districts (IDs)
Improvement Districts (IDs) are established to facilitate the
financing of particular improvements by the specific
beneficiaries. The District has a number of improvement districts
that were established for General Obligation (GO) debt repayment.
Most GO debt has been paid off and it is unlikely that the
District will issue additional GO debt. Improvement districts
continue to be used for other purposes: 1) to distinguish sewer
customers from water customers on the county tax roll; or 2) to
place parcels on the county tax roll for the collection of
availability fees.
Over the years, the District moved to a district-wide perspective
of financing improvements. This philosophy is evident by the
district-wide capacity and annexation fees. The District also
uses district-wide water rates. As time goes on, it is expected
that IDs will continue to outgrow their purpose and their use will
diminish.
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1.3 The Purpose of the Policy
Public entities accumulate and maintain reserves to ensure both
financial stability and continuous availability of services.
Financial stability and the resulting improved credit quality
allow the public entity to weather times of uncertainty and the
impact of negative events, both major and minor. Reserves allow
for the ongoing maintenance of property and timely payment of
expenses even when such expenses exceed money available from a
single fiscal period. In the final analysis, the type and level
of reserves are driven by the type and magnitude of uncertainty
faced by the public entity.
A “reserve” has a number of meanings, as follows:
• Working capital is required to insure timely payment of
obligations.
• A buffer against volatility in revenues.
• Liquidity is required to obtain other goods and services
(e.g., bank services).
• Designated money to protect creditors.
• Money set aside to replace assets at the end of their useful
lives.
• Money set aside to repair or replace assets damaged or
destroyed at unanticipated times.
It is important to note that reserves, fund balance, and net
assets are not the same. Fund balance and net assets are
accounting terms and may not always be in the form of cash or
liquid investments. Fund balances and net assets may not always
be reserves unless a designation of all or a portion of fund
balance is made. In addition, the term fund balance was replaced
by net assets as codified by the Governmental Accounting Standards
Board (GASB).
In short, reserves are the liquid assets of the District,
accumulated and maintained for application to finance contingent
future activities, whether known or unanticipated, operating or
capital in nature. The District’s Reserve Policy governs the
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management and use of these financial resources. Few policies
have a more significant impact on the financial health and
stability of the District. This policy explains several key
financial concepts used by the District and provides some
background information to the overall strategies and practices
utilized. The District has a fiduciary obligation to its
customers, to manage and direct the use of public funds for the
purpose of providing water and sewer services in an efficient and
financially sound manner.
1.4 Policy Guidelines
In 2000, the Little Hoover Commission reviewed the levels of
reserve funds for special districts in California and prepared a
report reflecting that special districts were accumulating
unreasonable levels of funds. As a proactive response, the
California Special Districts Association (CSDA) prepared Reserve
Guidelines for its members. The Reserve Guidelines were
significant in noting that reserve levels need to be in context of
the organization’s overall business model and capital improvement
plan.
There are a number of potential events which the District should
consider in the development of reserves:
• Economic Uncertainty - performance of the regional economy
and the impact of that performance on demand for water.
• Weather - the amount of rainfall and the impact of weather on
the availability and the cost of water as well as the demand
for water.
• Government Mandates - the impact of federal and state
regulation, particularly environmental regulation.
• Tax Changes - limitations on the District’s taxing and
spending powers through the passage of a voter referendum,
the impound of District property taxes or the removal of the
District’s power to levy property taxes, further increases to
Educational Revenue Augmentation Fund (ERAF) contributions or
changes in calculation methodology.
• Operating Costs - increases in operating and maintenance
costs because of inflation, labor agreement or other
modification.
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• Force Majeure - unanticipated expenditures resulting from
natural disasters or intentional acts.
• Emergency Maintenance - unanticipated expenditures resulting
from unexpected failure of assets (e.g., rupture in the
primary transmission system).
• Unexpected Variation in Cash Flow - the incidence of
additional costs or decreased revenues that require short-
term borrowing in the absence of sufficient financial
resources.
The California State Auditor has, in its oversight role, offered a
number of quality recommendations for the development of reserve
policies as outlined in its report entitled, “California’s
Independent Water Districts: Reserve Amounts Are Not Always
Sufficiently Justified, and Some Expenses and Contract Decisions
Are Questionable,” dated June 2004, Report No. 2003-137. All of
these recommendations have been incorporated into this policy in
an effort to address key issues surrounding the management and use
of District reserves. The detailed objectives as identified by
the State Auditor are as follows:
• Distinguish between restricted and unrestricted reserves.
• Establish distinct purposes for all reserves.
• Set target levels, including minimums and maximums, for the
accumulation of reserves.
• Identify the events or conditions that prompt the use of
reserves.
• Conform to plans to acquire or build capital assets.
• Receive Board approval and that it is in writing.
• Require periodic review of reserve balances and rationale for
maintaining them.
Yet, the State Auditor’s report acknowledges that the California
Constitution (Article XIII B, Section 5) is vague in its
provisions governing the accumulation and use of reserves.1
1 California State Auditor, Bureau of State Audits, “California’s Independent Water Districts: Reserve Amounts Are
Not Always Sufficiently Justified, and Some Expenses and Contract Decisions Are Questionable,” dated June 2004,
2003-137; p. 8.
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Specifically, the Constitution states that “each entity of the
government can establish contingency, emergency, unemployment,
reserve, sinking fund… or similar funds as it shall deem
reasonable and proper.”2 Similarly, the State’s Water Code does
not impose any requirements as to specific or recommended reserve
fund levels. As a result, the public finance community as a whole
has yet to settle on any real objective standards for the level of
reserve funds appropriate for governmental enterprises. This lack
of consensus as to specific standards is indicative of the wide
variance of the financial and operations context for different
districts and different contingencies justifying reserves.
The Government Finance Officers Association (GFOA) in its
“Recommended Practice on Appropriate Level of Unreserved Fund
Balance in the General Fund” (2002) states that in
establishing a policy governing the level of unreserved fund
balance in the general fund, a government should consider a
variety of factors. These include:
• The predictability of its revenues and the volatility of
its expenditures (i.e., higher levels of the unreserved
fund balances may be needed if significant revenue
sources are subject to unpredictable fluctuations or if
operating expenditures are highly volatile).
• The availability of resources in other funds as well as
the potential drain upon general fund resources from
other funds (i.e., the availability of resources in
other funds may reduce the amount of the unreserved fund
balance needed in the general fund, just as deficits in
other funds may require that a higher level of
unreserved fund balance be maintained in the general
fund).
• Liquidity (i.e., a disparity between when financial
resources actually become available to make payments and
the average maturity of related liabilities may require
that a higher level of resources be maintained).
• Designations (i.e., governments may wish to maintain
higher levels of the unreserved fund balance to
2 California Constitution, Article XIII B, Section 5.
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compensate for any portion of unreserved fund balance
already designated for a specific purpose).
In the preparation of this policy, each of the CSDA guidelines and
the GFOA recommendations has been considered. In addition, all
seven objectives provided by the State Auditor are specifically
addressed for each reserve. The District wholly supports the
State Auditor’s efforts to bring a high-level of quality to
reserve governance and establishing a standard of performance.
The District recognizes that the customer pays for services
provided. Quality management requires that periodic valuations be
performed so that fees and charges can be set at appropriate
levels to recover the cost of service. The District’s Reserve
Policy has been drafted with consideration of the GFOA, CSDA, and
State Auditor’s general guidelines as provided above. In
addition, the District has adopted the following principles in the
management of its financial resources:
• Reserves are held and used only for the purpose for which
they are collected. This is done to maintain equity among
customers.
• Each of the service types is tracked separately so that
expenditures and revenues can be monitored and evaluated for
each customer type. This provides the District with the
necessary information to appropriately charge for each of the
services.
• Separation of operations and maintenance from capital
expenditures occurs within each of the service types. This
is done because the financing of these expenditures is often
on different timelines or use different reserves.
• The District will hold its reserves at responsible and
prudent levels. This policy sets minimum, maximum, and
target levels for each of the various funds. This has been
done so that the District can maintain reserves to meet the
purpose for which the funds were established. The levels are
set by reference to line items in the District’s financial
statements and approved budgets. This allows reserve levels
to adjust to the District’s changing financial circumstances.
• Debt financing of facilities provides intergenerational
equity and maintains rates at reasonable levels. This equity
is accomplished with long-term financing which spreads the
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cost of facilities over the life of the facilities. The
burden to pay for facilities is then paid by those who use
them. The District could amass significant reserves by pre-
collecting financial resources in a Replacement Reserve Fund
allowing the District to cash finance all replacements.
However, this would require significant rate increases
burdening the current customers and creating reserve levels
difficult to defend to the ratepayers or other oversight
entities.
These concepts are fundamental to the way the District manages its
funds and have a direct impact on the way rates and charges are
set. The District performs annual budget evaluations and updates
its rate model on an annual basis to monitor and adjust the
various funds and revenue sources. The separation, tracking, and
projecting of the various funds and expenditures create the
essential information necessary for the equitable rate structure
maintained by the District. The annual review preserves the
balance between services provided and the fees charged. This
review also insures that reserves will be available to continue to
serve the District’s customers.
Financial Sources
2.0 Developers
a. Meter Installation Charges (General Use)
Meter fees are charges collected for new water service
connections. Fees vary depending upon meter size and type of
service. The costs associated with meter installations are
included in the Operating Expenses section of the budget.
These charges are financed by developers.
b. Developer Deposits (General Use)
These deposits are for the engineering and operations
services provided to developers. They are tracked separately
for each developer and any excess amount is returned to the
developer.
c. Water Annexation Fees (General Use)
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Annexation fees3 are collected as a condition of annexing
into the District’s potable or recycled water facilities.
Since the existing facilities have been built and maintained
by developers or customers within the District, the
annexation fee is calculated based on the present value of
all property taxes (1% property tax and availability fees)
paid by existing and prior customers. The annexation fee
reimburses existing customers for past contributions so that
all customers have contributed more equally to water
facilities. Proceeds of annexation fees are unrestricted and
may be used for any general fund purpose.
d. Sewer Annexation Fees (General Use)
A sewer annexation fee is collected when property is annexed
into an improvement district. Since the existing facilities
have been built and maintained by developers or customers
within a sewer IDs, the annexation fee is calculated based on
the present value of all availability fees paid by existing
and prior customers. The annexation fee reimburses existing
customers for past contributions so that all customers have
contributed more equally to sewer facilities. Proceeds of the
annexation fees are unrestricted and may be used for any
general fund purpose.
e. New Water Supply Fee (Restricted)
New water supply fees4 are based on the cost of the expansion
portion of new water supply projects divided by the number of
future equivalent dwelling units (EDU). The new water supply
fee covers the cost of planning, design, construction, and
financing associated with facilities for the District’s new
supply needs. These fees are paid by developers. The
proceeds of this fee may be used only for new potable or
recycled water supply projects. Although the fees collected
are not restricted separately, one portion for potable and
the other for recycled, they are tracked separately.
f. Water Capacity Fees (Restricted)
Water capacity fees4 are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
3 Code of Ordinances, Section 9.
4 Code of Ordinances, Section 28
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capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers costs to repay
existing customers for the facilities that they have built,
and where the “incremental” portion of the capacity fee
covers the cost of future expansion facilities. The “buy-in”
portion of the capacity fee is restricted to pay for
planning, design, construction, and financing associated with
expansion, replacement or betterment facilities. The “buy-
in” portion may be shifted back and forth between expansion,
betterment or replacement as the financing needs change. The
“incremental” portion of the capacity fee is limited to
planning, design, construction, and financing exclusively for
expansion facilities (excluding new water supply expansion).
g. Sewer Capacity Fees (Restricted)
Sewer capacity fees are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers cost to repay existing
customers for the facilities that they have built, and where
the “incremental” portion of the capacity fee covers the cost
of future expansion facilities. The “buy-in” portion of
the capacity fee is restricted to pay for planning, design,
construction, and financing associated with expansion,
replacement or betterment facilities. The “buy-in” portion
may be shifted back and forth between expansion, betterment
or replacement as the financing needs change. The
“incremental” portion of the capacity fee is limited to
planning, design, construction, and financing exclusively for
expansion facilities. For parcels within a sewer ID the
calculation excludes the tax debt already paid by these
customers therefore, producing a lower fee than for parcels
outside of a sewer ID. The capacity fees are restricted to
pay for planning, design, construction, and financing
associated with the expansion, replacement, or betterment of
facilities.
Facility needs are based on projected land use planning. Changes
in anticipated future land use occur and can alter projected
facility requirements. Thus, both the anticipated facilities
needs and their projected costs change over time as regulatory
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agencies make changes to land use. The District periodically
reviews the capacity fee calculation to accommodate such
variations. These fees are paid by developers.
The District’s construction of infrastructure occurs prior to the
addition of EDUs. This sequence serves two purposes: one it
ensures that the District can serve the pending construction as it
is completed; and two, it is more efficient to oversize many
facilities at the outset rather than build for the current need
and then reconstruct when the future need is realized. As a
result of this strategy, the District has financed construction
with bond financing as the existing expansion reserves are
depleted.
The water capacity fee is calculated based on the combined
recycled and potable water systems’ needs. This methodology is
used because the two water systems work hand-in-hand. All
capacity fees can be used for either potable or recycled but must
be tracked to distinguish between the “buy-in” and “incremental”
portions as described above. So, while capacity fees are not
restricted separately by potable and recycled, they are tracked
separately.
2.1 Customers/Users
DEVELOPERS
Diagram 2.0: Flow of Funds - Developer Sources
Unrestricted and
Undesignated
(General Use) Funds
Meter
Installation
Charges
Developer
Deposits
Restricted Funds
Annexation
Fees
Capacity
Fees
New Water
Supply Fees
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a. Uniform Rates and Charges (General Use)
Charges to users for water, sewer, and recycled water are
uniform throughout the District for similar customer types.
b. Monthly System Fees (General Use)
This is a fixed revenue source that is charged monthly. The
amount of the charge is based on the meter size.
c. Energy Charges (General Use)
The energy pumping fee is a charge per Unit of water for each
100 feet of lift, or fraction thereof, above the base
elevation of 450 feet. This charge is placed on the monthly
water bills of all water customers.
d. Penalties (General Use)
Penalties are added to the monthly water and sewer bills for
late charges, locks, etc.
e. Pass-through Fixed Charges (General Use)
A fixed monthly charge to the District’s customers intended
to collect sufficient funds to pass-through the increased
fixed costs from the County Water Authority (CWA) and the
Metropolitan Water District (MWD).
f. Special Rates and Charges (General Use)
In addition to the uniform water and sewer charges, the
District has a special sewer rate for the Russell Square lift
station. The Russell Square fee is for construction,
installation, maintenance or repair of the Russell Square
lift station. This fee is collected in accordance with the
Russell Square sewer charge (see Code of Ordinances Section
53.03B).
g. Temporary Meter Fees (General Use/Restricted)
Water charges, in lieu of capacity fees, are charged on
temporary meters. This is done because temporary meters use
system capacity but they are not charged a capacity fee.
Temporary water use is charged at two times the water rate
with the added charge placed in the Restricted Expansion
Fund. The primary users of these temporary meters are
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developers; however, general customers also use these for
various purposes.
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2.2 County-Collected Taxes and Fees
a. General Levy Property Tax Receipts (1% Property Tax)
(General Use)
In 1978, Proposition 13 limited the levy of ad valorem
property taxes on real property to one percent of the
assessed value of such property. Subsequent legislation,
AB 8, established that the receipts from the one percent levy
were to be distributed to taxing agencies proportionate to
each agency’s general levy receipts prior to Proposition 13.
Taxes received are for general use. Spending limits for the
District are governed by the 1979 passage of California
Proposition 4, Limitations of Government Appropriations (GANN
limit). Proposition 4 places an appropriation limit on most
spending from tax proceeds.
b. Availability Charges (General Use/Restricted)
The District levies availability charges each year in
developed and undeveloped areas. Current legislation
provides that any amount up to $10 per parcel is general use
CUSTOMERS / USERS
Diagram 2.1: Flow of Funds - Customer Sources
Unrestricted and
Undesignated
(General Use) Funds
Monthly
System Fees
Restricted Funds
Energy
Charges
Penalties
Pass –Through
Fixed Charges
2x Water
Rate
Special Rates
and Charges
Uniform Rates
and Charges
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and any amount over $10 per parcel is restricted to be
expended in and for the improvement district (ID) within
which it is collected. Accordingly, the District may use
availability charges in excess of $10 toward costs of water
and sewer facilities which are either, expansion, betterment,
or replacement of facilities consistent with the purpose of
the ID in which they are collected. This portion of the
proceeds of availability charges is geographically restricted
and restricted by purpose. As costs are incurred on these
projects the respective IDs are charged, reducing the
reserves. To the extent that availability charges are not
used for the purpose for which they are collected, they must
be returned to the property owners that paid them. The
District has historically used these reserves for betterment
capital facilities thus, the restricted reserves are
accounted for in “sub-funds” of the Betterment Fund
(See 2.1 f.).
c. Improvement District General Obligation (GO) Bond
Assessments (Restricted)
The District has historically issued general obligation (GO)
debt and establishes an improvement district for the
repayment of that debt. When this financing method is used,
the county tax roll can be used to collect special taxes or
assessments within the ID to pay the debt obligation. The
proceeds of the debt are restricted for the purpose as
defined in the bond documents.
COUNTY COLLECTED TAXES AND FEES
Unrestricted and
Undesignated
(General Use)
Funds
General Levy
Property Tax
Receipts
Availability
Charges
Restricted Funds
General Obligation
Bond Assessments
Diagram 2.2: Flow of Funds – County Collection Sources
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2.3 Miscellaneous Income
a. Miscellaneous Rents and Leases (General Use)
Revenues received from the rental and lease of District
property are general use revenues. Not only are they
periodic revenues, but there is also a one-time fee charged
with the setup of each new lease. The District incurs
expenses related to these rents and leases. The one-time
fees are calculated to recover the costs to setup the leases.
b. Sewer Billing Fees (General Use)
Sewer billing fees are general use revenues. The District
provides processing and billing services to the City of Chula
Vista to bill and collect from their customers for sewer
service. These fees are to recover the cost the District
incurs to provide this service.
c. Interest Income or Expense Allocation (General Use,
Designated, and Restricted)
Interest income (expense) will be allocated every month based
upon each fund's month-ending balance. In this way, each
fund receives credit for interest earned by that fund and
each fund with a negative balance is charged for the use of
the other fund’s reserves.
MISCELLANEOUS INCOME
Unrestricted and
Undesignated
(General Use) Funds
Miscellaneous
Rents and Leases
Sewer Billing
Fees
Restricted Funds
Interest Income or
Expense Allocation
Diagram 2.3: Flow of Funds – Miscellaneous Income Sources
Designated Funds
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2.4 Debt Issuance
a. Loans (General/Restricted Use)
As the District determines that additional financing is
required for a particular purpose, the option of borrowing is
considered. The determination to borrow is made as a part of
the annual rate model update and is evaluated in accordance
with the Debt Policy before it is recommended to the Board
for action. As an option to bond indebtedness, loans are
available to satisfy short-term financing needs. These loans
may or may not be contractually restricted for a particular
purpose.
b. General Obligation (GO) Bonds (Restricted)
As the District becomes more developed it becomes less likely
that general obligation debt will be used as it requires a
vote of the public to be approved. Bond proceeds are
restricted for the construction of those facilities
identified in the GO bond issuance. Occasionally, specific
portions of bond proceeds may be allocated for the repayment
of the principal and interest, also called debt service, on
these bonds. As the District determines that additional
financing is required for a particular purpose, the option of
debt issuance is considered. The determination to issue debt
is made as a part of the annual rate model update and is
evaluated in accordance with the Debt Policy before it is
recommended to the Board for action.
c. Certificates of Participation (COPs) (Restricted)
General revenues of the District are pledged as security for
Certificates of Participation (COPs) indebtedness. If the
District determines that additional financing is required for
a particular purpose, the option of debt issuance is
considered. The determination to issue debt is made as a
part of the annual rate model update and is evaluated in
accordance with the Debt Policy before it is recommended to
the Board for action. This form of financing has become the
industry’s preferred form of financing as it does not require
a vote of the general public.
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2.5 Inter-fund Transfers
Each year in the budgeting process, future fund levels are
projected for the next six years. Based on these projections
transfers are recommended. Reserves may be transferred
between Unrestricted or Designated Funds and the General Fund
(see 4.0 “Funding Levels” and 4.1 “Fund Transfers”).
Reserves may not be transferred to or from any of the
restricted funds unless it is between two restricted funds
with a shared purpose.
Fund Types and Categories
3.0 General Funds
a. Purpose
The General Fund is neither restricted nor designated. The
District maintains one General Fund for each business segment
(water, sewer, and recycled). This fund holds the working
capital and emergency operating reserves. While the General
Fund has a short-term focus to finance the District’s annual
operations, it is supported by the six-year rate model. This
DEBT PROCEEDS
Unrestricted and
Undesignated
(General Use) Funds
Loans General
Obligation Bonds
Restricted Funds
Certificates of
Participation
Diagram 2.4: Flow of Funds – Debt Issuance Sources
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fund is primarily used to finance the operations of the
District; however, it can be used for any District purpose.
This fund can be used to supplement the District’s rates and
charges and be a temporary source of revenue to balance the
Operating Budget. This fund can also be used to avoid spikes
in the rates or significant and abrupt increases. It is an
industry practice to have a fund that can be used to
stabilize rates. This would only occur if there was a
temporary need for reserves that would smooth out a rate
spike or to ramp up what would otherwise be a dramatic rate
increase.
The General Fund also plays a role in the debt planning of
the District. This fund is viewed by the debt markets as a
commitment by the District to ensure financial stability of
the rates and charges of the District. The District is
anticipated to need a number of debt issuances over the years
and this fund will help the District not only to stabilize
rate fluctuations but also to access low cost financing for
future projects.
b. Sources
Meter installation charges, temporary meter fees, uniform
rates and charges, monthly system fees, energy charges,
penalties, pass-through fixed charges, general levy property
tax receipts, water annexation fees, availability charges,
miscellaneous rents and leases, sewer billing fees, interest
income or expense allocation, loans, and a portion of the
temporary water sales.
The sewer general fund receives sewer charges, penalties,
availability charges, sewer annexation fees, and interest
income or expense allocation.
c. Funding Levels
I. Minimum Level – The minimum reserve level for each
business segment of the General Fund is three
months of operating budget expenses (evaluated
separately for each segment).
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II. Maximum Level – The maximum reserve level for the
General Fund is nine months of operating budget
expenses. In the event that this fund exceeds the
seven month level, the excess will be evaluated or
transferred to one or more of the designated funds.
III. Target Level – The target level of reserves is
three months of operating budget expenses. In the
event that the fund drops below the target level,
rate increases or fund transfers would be
considered.
3.1 Designated Other Post Employment Benefits (OPEB) Fund
a. Purpose
Designated Other Post Employment Benefits (OPEB) reserves are
“general use” reserves that have been set apart by Board
action to finance the medical benefits of qualified retirees
as outlined in the District’s benefits plan. This fund is
available to hold any Board designated OPEB funds. The
District also has a trust at CalPERS and is restricted for
the purpose of financing the OPEB liability. Money held in
the CalPERS trust restricts the funds from any use other than
OPEB. The two funds are considered jointly when looking at
target reserve levels. Every two years, actuarial study is
performed to update the annual financing requirements.
Changes in the actuarial valuation may result from changes in
benefit levels, employee population, health insurance costs,
or general market conditions.
b. Sources
The OPEB liability may be financed by general use reserves
coming from user rates and charges, either from an operating
budget expenditure or from interfund transfers. Transfers of
unrestricted reserves may come from the various designated
funds or from the General Fund. As a part of the normal
budget process, annual operating revenues have been
sufficient to finance the ongoing needs of this designated
fund. While debt financing is also an option, the District
has only used user rates and charges to finance this fund.
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c. Funding Levels
I. Minimum Level – The minimum reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. When
considering the reserve level of this fund, both
the District held OPEB reserves and CalPERS held
OPEB reserves must be considered jointly.
II. Maximum Level – The maximum reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. In the event
that the two funds, as described above, exceed the
OPEB liability, the District will reduce the annual
funding levels as defined by the actuarial study.
III. Target Level – The target reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. In the event
that the two funds, as described above, fall below
the OPEB liability, the District will increase the
annual funding levels as defined by the actuarial
study.
3.2 New Water Supply Fund Category
a. Purpose
The New Water Supply Fund category is to finance the
expansion portion of new water supply projects and is
therefore to be paid by developers. When considering the
reserve level of the New Water Supply category; the New Water
Supply Fund, the New Water Supply Debt Fund, and the
Designated New Water Supply Fund all work in concert and must
be considered jointly.
b. Sources
The New Water Supply Fund receives reserves only from the new
water supply fee. Other funds within the new water supply
category of funds receive debt proceeds and general use
reserves through a designation to this category.
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c. Funding Levels
I. Minimum Level – As the District matures the CIP
will move to purely replacement projects. As the
District moves through its lifecycle the need for
new water supply reserves will decrease and may be
reduced to zero.
II. Maximum Level – The maximum reserve level for the
new water supply category of funds is limited to
five years of the unfinanced new water supply
facilities as described in the District’s CIP
Budget. To determine the unfinanced amount, the
total new water supply financing needs must be
reduced by the projected new water supply revenues,
general fund designations, and bond financing. If
the combined new water supply reserves exceed the
target level, the District should consider
transferring designated reserves to meet other
purposes, reduce the new water supply fee, or
change the timing of the new water supply projects.
III. Target Level – In order to facilitate debt
financing of the new water supply, it is important
that the various new water supply funds retain an
overall reserve level of six months, prior to any
attempt to obtain debt financing. This reserve
level allows the District the time necessary to
issue additional debt without depleting new water
supply reserves. If the combined new water supply
reserve levels drop below six months of
expenditures, this would trigger a transfer of
general use reserves, a bond sale, or a change in
the timing of new water supply projects. Bond
proceeds would be placed in the Restricted New
Water Supply Debt Fund while transfers would be
placed in the Designated New Water Supply Fund.
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3.3 Expansion Fund Category
a. Purpose
The Expansion Fund category is to finance the expansion
portion of capital projects and therefore is to be paid for
by developers. When considering the reserve levels of the
expansion category, the following funds work in concert and
must be considered jointly: the Expansion Fund, Expansion
Debt Fund, Capital Improvement Fund, and the Designated
Restricted Funds
Unrestricted and
Undesignated Funding
Sources
Funding Source New Water
Supply Fees
Debt
Proceeds
Restricted Funds
Restricted Funds
Designated Funds
New Water
Supply Fund
Expansion
New Water
Supply Fund
Designated
New Water
Supply Fund
Debt Fund
General Fund – Rates and Charges
New Water
Supply Fund
Category
New Water
Supply
Debt Fund
Diagram 3.2: New Water Supply Fund Category
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Expansion Fund. Potable and recycled reserves are considered
jointly while sewer is evaluated separately.
b. Sources
The Expansion Fund is financed by water charges in lieu of
capacity fees (for temporary meters) and the “incremental”
portion of the capacity fee. The other funds in this
category may also be financed by debt proceeds, the “buy-in”
portion of the capacity fee, and the general fund through a
designation of reserves.
c. Funding Levels
I. Minimum Level – As the District matures the CIP
will move to purely replacement and betterment
projects. As the District moves through this
lifecycle the need for expansion reserves will
decrease and may be reduced to zero.
II. Maximum Level – The maximum reserve level for the
expansion category of funds is limited to five
years of unfinanced expansion facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing needs must be reduced by the projected
expansion revenues, bond financing, and any
restricted or general fund revenues allocated to
this fund category. If the combined expansion
reserves exceed target levels, the District should
consider reducing capacity fees, reallocating
restricted or designated funds to meet other
purposes, or shifting the timing of expansion
projects.
III. Target Level – The target level is six months of
expansion expenditures. It is important that the
expansion reserves remain at a minimum of six
months of expansion expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting expansion
reserves. If the combined expansion reserves drop
below six months of expenditures this would trigger
a transfer of general use reserves, a bond sale, an
adjustment to the timing of expansion projects, or
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a reallocation of restricted reserves. Bond
proceeds would be placed in the Restricted Bond
Fund, transfers of general use reserves would be
placed in the Designated Expansion Fund, and
transfers of restricted reserves would be placed in
the Expansion Capital Improvement Fund.
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Unrestricted and
Undesignated Funding
Sources
Diagram 3.3: Expansion Fund Category
Funding Source 2x Water
Rates
Capacity
Fees (1)
Restricted Funds
Restricted Funds
Designated Funds
Expansion
Fund
Expansion
Debt Fund
General Fund – Rates and Charges
Restricted Funds Expansion Capital
Improvement
Fund
Debt
Proceeds
Restricted Funds
Capital
Improvement
Fund
Bond
Debt
Expansion
Fund
Designated
Expansion
Fund
Expansion
Fund
Category
(1) For Water Capacity Fees 32.4% goes into the Expansion fund and 67.6% goes into
the Capital Improvement Fund. For Sewer Capacity Fees 100% goes into the
Capital Improvement Fund.
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3.4 Replacement Fund Category
a. Purpose
The Replacement Fund category is to finance replacement
projects. When considering the reserve levels of the
replacement category of funds, the following funds work
in concert and must be considered jointly: the Debt
Fund, Capital Improvement Fund, and the Designated
Replacement Fund. The purpose of these reserves is to
pay for the replacement of capital infrastructure and
capital purchases. These reserves are not to be used
for the replacement of non-capital items.
With the District’s development of its financial systems
and the greater need and ability to separate and track
reserves, the replacement reserves have been separated
into three funds: water, recycled, and sewer.
Projects undertaken solely for the purpose of replacing
major capital equipment or facilities, i.e., where the
cost exceeds $10,000 for capital purchases or $20,000
for infrastructure items, generally these are not
considered normal maintenance. When the cost is below
$10,000, the costs are financed annually as operational
maintenance. As charges are incurred on replacement
projects the reserves are deducted from the respective
Replacement Funds on a monthly basis.
b. Sources
The various funds in this category are financed by debt
proceeds, the “buy-in” portion of the capacity fee, and
general fund designations.
c. Funding Levels
I. Minimum Level – The minimum reserve level of this
category of funds is 3% of the historical value of
existing assets as identified in the District’s
current financial statements. Potable, recycled,
and sewer replacement are evaluated separately.
II. Maximum Level – The maximum reserve level of this
category of funds is 6% of existing assets. If the
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combined replacement reserves exceed target levels,
the District should consider transferring the “buy-
in” portion of the capacity fee to meet other
purposes. Another consideration would be to shift
the timing of replacement projects.
III. Target Level – The target reserve level of this
category of funds is 4% of existing assets. In the
event that the reserves fall below the recommended
target level, the District should consider
transferring the “buy-in” portion of the capacity
fee. The District should also consider shifting
the timing of replacement projects or issuing debt
to support the planned level of facility
replacement. The District will act based on the
annual six-year rate model, to insure that at the
end of that planning horizon the reserves exceed
the minimum level and is approaching the target
level.
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(1) For Water Capacity Fees 67.6% goes into the Capital Improvement Fund.
For Sewer Capacity Fees 100% goes into the Capital Improvement Fund.
3.5 Betterment Fund Category
a. Purpose
The Betterment Fund category is to finance the
betterment portion of capital projects with a portion
going to maintenance of the potable, recycled, and sewer
systems. The District maintains separate Betterment
Funding Source
Unrestricted and
Undesignated Funding
Sources
Capacity
Fees (1)
Diagram 3.4: Replacement Fund Category
Restricted Funds
Restricted Funds
Designated Funds
Capital
Improvement Fund
Replacement
Debt Fund
Designated
Replacement
Fund
General Fund – Rates and Charges
Debt
Proceeds
Debt Fund
Restricted Funds
Replacement
Capital
Improvement
Fund
Replacement
Fund
Category
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Fund categories, one for each improvement district. An
improvement district is a legally defined geographic
area usually established for the purpose of bond
financing of facilities. The betterment reserves within
these funds are restricted by law for use within the
improvement district in which the fees were collected
(Water Code 71631.6). However, the legal restriction of
this reserve depends upon the particular revenue source.
(See Section 2.2 b. for a review of the availability
fees).
When considering the reserve levels of the betterment
category of funds, the following funds work in concert
and must be considered jointly: the Betterment Fund,
Debt Fund, Capital Improvement Fund, and Designated
Betterment Fund.
b. Sources
The Betterment Fund category receives restricted
revenues by improvement district from availability fees
(the first $10 is unrestricted, while amounts over $10
are restricted) collected through the county tax roll.
Betterment may also be financed by debt proceeds, the
“buy-in” portion of the capacity fee, as well as the
general fund through a designation of reserves.
c. Funding Levels
I. Minimum Level – As the District matures the CIP
will move to purely replacement projects. As the
District moves through this lifecycle the need for
betterment reserves will decrease and may be
reduced to zero.
II. Maximum Level – The maximum reserve level for the
betterment category of funds is limited to five
years of unfinanced betterment facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing need must be reduced by the projected
betterment revenues, bond financing, and general
fund designations. If this maximum is exceeded,
then the District should evaluate reductions in the
special water rates and availability fees,
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transferring designated reserves to meet other
purposes, or shifting the timing of betterment
projects.
III. Target Level – The target is six months of
betterment expenditures. It is important that the
betterment reserves remain at a minimum of six
months of betterment expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting betterment
reserves. If the combined betterment reserves drop
below six months of expenditures this would trigger
a transfer of general use reserves, a bond sale, or
an adjustment to the timing of betterment projects.
Bond proceeds would be placed in the Betterment
Bond Fund while transfers would be placed in the
Designated Betterment Fund.
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Fund
Unrestricted and
Undesignated Funding
Sources
Diagram 3.5: Betterment Fund Category
Funding Source Capacity
Fees (2)
Restricted Funds
Restricted Funds
Designated Funds
Capital
Improvement
Fund
Betterment
Debt Fund
Betterment
Fund
General Fund – Rates and Charges
Availability
Charges (1)
Restricted Funds
Debt
Proceeds
Restricted Funds
Bond
Debt
Designated
Betterment
Fund
Betterment
Fund
Betterment
Capital
Improvement
Fund
Betterment
Fund
Category
(1) The portion of charges over $10 per parcel is restricted.
(2) For Water Capacity Fees 67.6% goes into the Capital Improvement Fund. For Sewer
Capacity Fees 100% goes into the Capital Improvement Fund.
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Diagram 3.6: Fund Targets
Fund or Fund
Category
Actions to Consider if
below Target Target Maximum
New Supply Fund
Category
New supply fee increase,
bond financing, or
transfer to designated or
CIF Funds
Total of all funds in fund
category = six months of
capital expenditures
Nexus of cost to fee
Expansion Fund
Category
Capacity fee increase,
bond financing, or
transfer to designated or
CIF Funds
Total of all funds in fund
category = six months of
capital expenditures
Nexus of cost to fee
Replacement Fund
Category
Bond financing, or
transfer to designated or
CIF Funds
Total of all funds in fund
category = 4% of
infrastructure
Nexus of cost to fee
Betterment Fund
Category
Bond financing, or
transfer to designated or
CIF Funds
Total of all funds in fund
category = six months of
capital expenditures
5 Five years unfunded
needs
Debt Reserve Fund Increase tax collection or
rates
One semi-annual
payment
Two semi-annual
payments
Rate Stabilization Fund Fund transfers from
legally available funds
The financial impact of
2two consecutive years
of low winter water
usage
The financial impact of
3three consecutive years
of low winter water
usage
OPEB Fund Fund transfers Full funding Full funding
General Fund Rate increase or fund
transfers
Three months of
operating budget
expenses
Nine months of
operating budget
expenses
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Additional Restricted Funds
4.0 Capital Improvement Fund
a. Purpose
The “Capital Improvement Fund’s sole purpose is to track the
“buy-in” portion of the capacity fee and to ensure these fees
are expended solely for the purpose for which they were
collected. In this case it is to pay for facilities that
were in existence at the time this fee was established.
These fees may be used for expansion, replacement, or
betterment projects or any debt related to these categories.
The water capacity fees may also be used for either the
potable or the recycled systems. As capacity fees are
collected, the “buy-in” portion of the fee is allocated as
needed to one of three capital improvement funds, one in each
of the Expansion, Replacement, and Betterment Fund
categories. These reserves are used to pay debt or offset
any negative balance within these three categories of funds.
For sewer, these fees fund the Expansion, Replacement, or
Betterment Fund categories. These fees may not be used to
finance the New Water Supply category, as there were no new
water supply facilities in existence at the time the new
methodology for capacity fees was established.
b. Sources
The “buy-in” portion of the capacity fee collected after
June 30, 2010 or after September 30, 2014 for sewer.
c. Funding Levels
There are no minimums, maximums, or target levels for these
reserves on an individual basis. The allocation of this fee
to the various capital improvement funds is dependent on the
overall reserve levels within each fund category.
4.1 Debt Reserve Fund
a. Purpose
The Debt Reserve Fund is established to hold the proceeds
from the various debt issuances. There are two types of
debt, General Obligation bonds and Certificates of
Participation bonds. The proceeds are transferred to the New
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Water Supply, Expansion, Replacement, or Betterment Debt
Funds as they are expended for various facilities within
those fund categories. As repayment of the debt occurs, the
balances within these individual funds are reduced so that
the financial impact of issuing debt is tracked within the
category for which the debt was issued.
b. Sources
Debt proceeds.
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c. Uses
There are no minimums, maximums, or target levels for this
fund on an individual basis. This fund is available on an as
needed basis to fund CIP projects for new water supply,
expansion, replacement, or betterment. From a funding level
perspective, these reserves are evaluated in the context of
all the various funds within each fund category.
4.2 Rate Stabilization Fund
a. Purpose
The Rate Stabilization Fund is established for the purpose of
minimizing rate increases in response to one-time events and
therefore stabilizing the rates and charges imposed by the
District to meet covenanted debt service coverage levels.
The Rate Stabilization Fund is not intended to be used to
offset regular rate increases needed to meet inflationary
cost increases in operations.
b. Sources
The District may budget for Rate Stabilization Fund deposits
from the Sewer Fund, amounts in excess of the annual debt
service coming due and payable in the fFiscal yYear, after
payment of operating expenses. The allowable amount that may
be deposited shall not be transferred prior to payment of the
annual debt service obligation.
c. Uses
There is no minimums level for this fund. The maximum level
shall be equal to the financial impact of three (3)
consecutive years of low winter water usage. The target
levels for this fund shall be equal to two (2) consecutive
years of low winter water usage. For the purposes of
calculating debt service, amounts transferred from the Rate
Stabilization Fund to the Sewer Fund will constitute Gross
Revenue in the fiscal year the transfer occurs. All interest
or other earnings on deposits in the Rate Stabilization
FundSRF will be withdrawn at least annually and will be
accounted for as operating revenue in the Sewer Fund.
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Fund Transfers
5.0 Funding Levels
As described in the preceding sections, the District maintains
reserves for its operating and capital activities. These reserves
can be of three types: 1) undesignated or general use reserves,
2) designated, and 3) restricted for a specific purpose. The
restricted reserves can be restricted geographically and/or by
purpose. The District maintains various funds to track the
various designations and restrictions. The source of the money
for each fund was discussed along with the purpose, source of
funds, and levels. Key characteristics of these funds are the
target levels, minimums, and maximums. The funding levels must be
viewed in the context of the economic environment, political
environment, and in light of the District’s rate model. The
District’s six-year rate model not only shows the current balance
but also shows the trend of the fund balances. Often the trend of
the fund is a greater indicator of financial stability than is the
current balance.
The rate model is updated each year with the budget process and
evaluates each fund over the next six years. The rate model will
take into account the general economic environment, looking at the
development rate, supply rate increases, the possibility of
raising rates, capital infrastructure spending, and strategic plan
initiatives. The fund balances may at times be over or under the
target amount. This is not only acceptable but expected. The
rate model provides an empirical estimate of the conformance
between the projected District’s financial activities and the
guidelines of this policy.
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5.1 Fund Transfers
Reserves within the District’s various designated funds come from
interfund transfers of unrestricted general use reserves. It is
important to note that the District has the ability to use general
use reserves for any business purpose. General use reserves may
be transferred to and from any unrestricted fund for any business
need. Designated reserves are general use reserves which have
been set aside for a specific purpose by Board action. These
reserves can only be used for the purpose they were designated, or
with Board action they may be used for any other business purpose.
While general use reserves may be used for any restricted purpose
they may not be transferred to Restricted Funds due to the
sensitivity of the tracking of restricted reserves. If reserves
are needed for a restricted purpose they are transferred to a
Designated Fund within the fund category with that particular
purpose. Reserves restricted to a fund category may only be used
within that category and may not be transferred to another
category. For example, the new water supply fee and the
“incremental” portion of the capacity fee are restricted reserves
for a specific purpose, and may not be transferred to another
category as no other category has the same purpose. However, the
“buy-in” portion of the capacity fees are restricted for purposes
that are shared by more than one category of funds and may
therefore be transferred to a restricted fund within another fund
category as long as it shares the same purpose.
In many situations reserve transfers are expected as some fund
categories will exceed their maximums or drop below their
minimums. Only fund categories that are below the stated target
are eligible to receive transferred reserves. Fund categories
that exceed their maximums are first to be considered for
transfers out, followed by funds that exceed their targets. Funds
that exceed their minimums are also available for reserve
transfers out, but only when other options are not available.
The rationale for prioritizing reserve transfers is based on the
immediacy of the need and the availability of reserves from other
funding sources. For example, the General Fund is first to
receive reserves when it drops below its target or minimum levels.
This is because of the immediate and ongoing nature of the
expenditures that are served by this fund. The operation of the
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District is first and foremost of the objectives of the District.
On the other end of the spectrum, the Replacement Fund has a long-
term perspective and will be used to partially finance replacement
assets for many years to come. Debt financing is available to
respond to this long term, foreseeable, and planned cash flow.
This fund is less likely to have immediate needs and has other
financing options.
When making the determination of when transfers are necessary, all
funds within a fund category work as a group. The combined
balance of the restricted and designated funds is looked at when
determining whether the fund category requires additional funding
from the Restricted Capital Improvement Fund, Restricted Debt
Fund, or the General Fund. Because the Capital Improvement Fund
may finance expansion, replacement or betterment reserves may be
transferred between these fund categories, but only back and forth
within its own type of restricted fund.
As an example, if during the rate model update process it was
determined that the Expansion Funds (designated and restricted)
would drop and stay below the minimum during the six-year planning
horizon, this would trigger a bond sale, a transfer of general use
reserves, and/or a transfer of restricted reserves. If in the
cash planning process, it was anticipated that the General Fund
would remain above target during the planning horizon and that the
trend did not present a problematic underfunded status, then
General Fund reserves would be considered available for transfer
prior to making proceeds available from a bond sale. Also, if
during this period the Betterment Fund category was anticipated to
exceed its maximum, then reserves from either the Designated
Betterment Fund, or the Capital Improvement Fund would be
transferred to the corresponding Expansion Fund prior to a bond
sale. All funds are evaluated to determine which has the greatest
need or availability of reserves before any reserve transfer
recommendation is presented to the Board.
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GLOSSARY
The Reserve Policy contains terminology that is unique to public
finance and budgeting. The following glossary provides assistance
in understanding these terms.
Annexation Fees: When water service is requested for land outside
the boundaries of the District, the land to be serviced must first
be annexed. For sewer service the land must be annexed into an
improvement district within the District.
Assets: Resources owned or held by Otay Water District that has
monetary value.
Availability Fees: The District levies charges each year in
developed areas to be used for upgrades, betterment, or
replacement and in undeveloped areas to provide a source of
funding for planning, mapping, and preliminary design of
facilities to meet future development. Current legislation
provides that any availability charge in excess of $10.00 per acre
shall be used only for the purpose of the improvement district for
which it was assessed.
Bond: A written promise to pay a sum of money on a specific date
at a specified interest rate. The interest payments and the
repayment of the principal are authorized in a District bond
resolution. The most common types of bonds are General Obligation
(GO) bonds and Certificates of Participation (COPs). These are
frequently used for construction of large capital projects such as
buildings, reservoirs, pipelines and pump stations.
Capital Equipment: Fixed assets such as vehicles, marine
equipment, computers, furniture, technical instruments, etc. which
have a life expectancy of more than two years and a value over
$10,000.
Capital Improvement Program: A long-range plan of the District
for the construction, rehabilitation and modernization of the
District-owned and operated infrastructure.
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CWA: The County Water Authority was organized in 1944 under the
State County Water Authority Act for the primary purpose of
importing Colorado River water to augment the local water supplies
of the Authority's member agencies. The Authority purchases water
from the Metropolitan Water District of Southern California (MWD)
which imports water from the Colorado River and the State Water
Project.
Debt Service: The District's obligation to pay the principal and
interest of bonds and other debt instruments according to a
predetermined payment schedule.
Expenditures/Expenses: These terms refer to the outflow of funds
paid or to be paid for an asset, goods, or services obtained
regardless of when actually paid for. (Note: An encumbrance is
not an expenditure). An encumbrance reserves funds to be expended
in a future period.
Fund: An account used to track the collection and use of monies
for a specifically defined purpose.
Fund Balance: The current funds on hand resulting from the
historical collection and use of monies. The difference between
assets and liabilities reported in the District’s Operating Fund
plus residual equities or balances and changes therein, from the
results of operations.
Interest Income: Earnings from the investment portfolio. Per
District Policy Number 25, interest income will be allocated to
the various funds each month based upon each fund’s prior month-
ending balance.
Late Charges/Penalties: Charges and penalties are imposed on
customer accounts for late payments, returned payments, and other
infringements of the District’s Code of Ordinances.
1% Property Tax: In 1978, Proposition 13 limited general levy
property tax rates for all taxing authorities to a total rate of
1% of full cash value. Subsequent legislation, AB 8, established
that the receipts from the 1% levy were to be distributed to
taxing agencies according to approximately the same proportions
received prior to Proposition 13.
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Operating Budget: The portion of the budget that pertains to
daily operations that provide basic governmental services. The
operating budget contains appropriations for such expenditures as
personnel, supplies, utilities, materials, travel and fuel, and
does not include purchases of major capital plant or equipment
which is budgeted for separately in the Capital Budget. The
Operating Budget also identifies planned non-operating revenues
and expenses.
Revenue: Monies that the District receives as income. It
includes such items as water sales and sewer fees. Estimated
revenues are those expected to be collected during the fiscal
year.
Russell Square: A sewer lift station constructed in 1983 that
serves four properties in the Russell Square Development.
System Fees: Each water service customer pays a monthly system
charge for water system replacement, maintenance, and operation
expenses. The charge is based on the size of the meter and class
of service.
Tax Collection for Bond Debt: California Water Code Section 72091
authorizes the District, as a municipal water district, to levy ad
valorem property taxes which are equal to the amount required to
make annual payments for principal and interest on General
Obligation bonds approved by the voters prior to July 1, 1978.
Unit: A Unit of water is 100 cubic feet or 748 gallons of water.
Water Rates: Rates vary among classes of service and are measured
in Units. The water rates for residential customers are based on
an accelerated block structure. As more Units are consumed, a
higher Unit rate is charged. Effective in 2009, all non-
residential customers are charged for water based on a tiered rate
structure in which water rates are based on meter size and amount
of Units consumed.
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1.0 The District
The Otay Water District is a California municipal water district,
authorized in 1956 by the State Legislature under the provisions
of the Municipal Water District Act of 1911. The District is a
"revenue neutral" public agency; meaning each end user pays their
fair share of the District's costs of water acquisition,
construction of infrastructure, and the operation and maintenance
of the public water facilities.
The District provides water service within its boundaries, and
provides sewer and recycled water service within certain portions
of the District. As such, the District operates three distinct
business segments:
• Potable water
• Recycled water
• Sewer
Each of these business segments has an identifiable customer base.
In addition, the developer community, large and small, makes up a
significant class of customer for each business segment. As a
result, the District has four distinct customer service types:
• Developers
• Potable water users
• Recycled water users
• Sewer users
The District has established practices and developed computer
systems that have enabled the District to maintain a clear
separation between the service costs relating to each of its four
customer service types. Regardless of customer class, financial
principles regarding cost allocation and fund accounting are
fundamental to the District’s Reserve Policy. These principles
are derived from the statements of the Governmental Accounting
Standards Board (GASB), and from oversight and advisory bodies
such as the California State Auditor, the Little Hoover
Commission, and the Government Finance Officers Association
(GFOA). These have significant impacts on how the finances of
the District are organized and how financial processes work within
the organization.
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1.1 The District’s Use of Financial Resources
All of the District’s expenditures fall into two broad categories:
operating costs and capital expenditures. The operating costs
include costs relating to the purchase and delivery of potable and
recycled water, and the transportation and treatment of sewage.
The capital expenditures support the construction of
infrastructure necessary to deliver services. The District uses
various funds to support the operating and capital efforts.
Operations and maintenance is financed only by rates and charges,
also called pay-as-you-go, while capital infrastructure is
financed using two financing methods: pay-as-you-go and debt
issuance (requiring annual debt service). The Capital Improvement
Program (CIP) and the two funding methods support the
construction, betterment, and replacement of infrastructure in all
three business areas: potable, recycled, and sewer.
The District establishes different funds to track revenues
allocated to different activities. Once established, each fund
receives financial resources up to the levels defined in this
policy. Every year, as a part of the annual budget process, the
District’s rate model is updated for each fund with the current
fund balances and the estimated revenues and expenditures for the
next six years. The expenditure requirements and financial
resources are then evaluated to ensure that the existing fund
balances and additional revenues are sufficient within the current
budget cycle and for the next five years to maintain target fund
levels. If a deficit is identified, then options for transfers,
shifting CIP projects, debt, cost saving measures, and/or rate
increases are evaluated.
1.2 The District’s Capital Improvement Program (CIP)
The planning, design, and construction costs of all capital
facilities within the three business segments are allocated to
four cost types and corresponding fund categories: New Water
Supply, Expansion, Replacement, and/or Betterment. The allocation
to these four cost types is defined in the District’s Capital
Improvement Program (CIP) and is determined by an engineering
analysis that identifies which type of customer will benefit from
each facility, planned or existing. The costs of the capital
improvements are borne by either existing users or by the
developing areas, or by a combination of the two, as applicable.
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This Reserve Policy protects both the existing users and the
developing areas from incurring unwarranted costs. Developing
areas are not required to finance facilities that are replacement
or betterment and established areas are not required to replace
facilities before they are worn out because of new development.
However, to ensure a fair allocation of costs, each facility has
the potential to be classified into any or all of the four cost
types. In addition to these cost types there are occasional CIPs
that may be billable to a third party, if for example a third
party requires a District facility be relocated. Paragraphs a
through d below, describe how the costs of capital facilities are
financed through various fees.
a. New Water Supply
The portion of a new supply project that benefits new users
is financed from the reserves in the New Water Supply Fund
category. These reserves are primarily derived from proceeds
of the new water supply fee. The New Water Supply Fund is
restricted, meaning the amounts credited to this fund are
accounted for separately and are used solely for the
planning, design, and construction of the new water supply
expansion facilities. Debt financing may also be a temporary
financial resource to finance new water supply projects. The
District has a Debt Policy (Policy No. 45) that guides the
debt issuance process. Any debt proceeds used for this
purpose would be restricted in nature and tracked separately.
General use reserves may also be placed in the Designated New
Water Supply Fund and used for water supply projects.
b. Expansion
The portion of a CIP project that benefits new users is
financed from the reserves in the Expansion Fund category.
These reserves are primarily derived from proceeds of the
“incremental” portion of the capacity fees collected within
developing areas. Capacity fees are accounted for separately
and used for the planning, design, and construction of
expansion facilities. Additionally, expansion may be
financed by the “buy-in” portion of the capacity fee which is
restricted for CIP purposes, but not specifically for
expansion. Debt financing may also be a temporary financial
resource for expansion projects. General use reserves may
also be placed in the Designated Expansion Fund and used for
expansion projects.
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c. Replacement
The portion of a CIP project that benefits existing users by
replacing an existing facility is financed from the reserves
in the Replacement Fund category. Replacement of facilities
may be financed with proceeds of the “buy-in” portion of the
capacity fees, general use reserves held in the Designated
Replacement Fund, and debt proceeds. The various funding
sources available for replacement projects is anticipated to
provide the necessary flexibility to begin projects while any
necessary debt financing is being obtained.
d. Betterment
Facilities that improve reliability, meet new regulations, or
create increased levels of service are considered betterment
facilities that benefit existing users. The reserves in the
Betterment Fund category are used to finance these projects
or portions of projects. Proceeds of the “buy-in” portion of
the capacity fees may also be used to finance betterment
projects. General use reserves may be placed in the
Designated Betterment Fund and used for betterment projects.
1.21 Relocations
Occasionally, relocation of a District facility is required by a
third party. If the District has a superior easement the
relocation cost will be paid by the third party, but only to the
extent that the District does not benefit from the relocation.
When relocation is required, a CIP project may be created which is
wholly or partially financed by a third party. On occasion, the
District will require that its own facilities be relocated.
Depending on the nature of the facilities, the financial resources
for these projects could be from new water supply, expansion,
replacement, betterment or third party financing. Each project is
individually negotiated with the third party based on the facts
and circumstances of the relocation. Occasionally, the District
will improve the facilities that are being relocated. When
determining how to allocate costs to various funds the following
guideline is suggested: if a project has more than five years of
useful life remaining, an incremental cost view should be
considered; if the project has less than five years of useful life
remaining, a pro-rata cost approach should be considered. Also,
the likelihood the District will benefit from an asset’s life
extension should be evaluated prior to allocating costs.
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1.22 Oversizing
If deemed reasonable by the District, in connection with the
construction of backbone facilities, a developer may be required
to oversize new facilities for future development. The developer
is reimbursed for incremental oversizing costs as per Policy
No. 26. These reimbursements are not available for the
distribution system within a development which is an obligation
of the developer.
1.23 Exclusion of Developed Areas from Expansion Costs
Developed areas are assumed to have sufficient supply and capacity
to meet their current requirements as provided by the developers.
In addition, they are considered to have borne capital financial
costs that are at least proportionate to the benefits they have
received from capital facilities. Accordingly, no regional
capital financing costs are allocated to these areas so that they
will not incur any costs for newly developing areas, except for
capital projects that produce district-wide benefit or cost
savings.
1.24 Improvement Districts (IDs)
Improvement Districts (IDs) are established to facilitate the
financing of particular improvements by the specific
beneficiaries. The District has a number of improvement districts
that were established for General Obligation (GO) debt repayment.
Most GO debt has been paid off and it is unlikely that the
District will issue additional GO debt. Improvement districts
continue to be used for other purposes: 1) to distinguish sewer
customers from water customers on the county tax roll; or 2) to
place parcels on the county tax roll for the collection of
availability fees.
Over the years, the District moved to a district-wide perspective
of financing improvements. This philosophy is evident by the
district-wide capacity and annexation fees. The District also
uses district-wide water rates. As time goes on, it is expected
that IDs will continue to outgrow their purpose and their use will
diminish.
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1.3 The Purpose of the Policy
Public entities accumulate and maintain reserves to ensure both
financial stability and continuous availability of services.
Financial stability and the resulting improved credit quality
allow the public entity to weather times of uncertainty and the
impact of negative events, both major and minor. Reserves allow
for the ongoing maintenance of property and timely payment of
expenses even when such expenses exceed money available from a
single fiscal period. In the final analysis, the type and level
of reserves are driven by the type and magnitude of uncertainty
faced by the public entity.
A “reserve” has a number of meanings, as follows:
• Working capital is required to insure timely payment of
obligations.
• A buffer against volatility in revenues.
• Liquidity is required to obtain other goods and services
(e.g., bank services).
• Designated money to protect creditors.
• Money set aside to replace assets at the end of their useful
lives.
• Money set aside to repair or replace assets damaged or
destroyed at unanticipated times.
It is important to note that reserves, fund balance, and net
assets are not the same. Fund balance and net assets are
accounting terms and may not always be in the form of cash or
liquid investments. Fund balances and net assets may not always
be reserves unless a designation of all or a portion of fund
balance is made. In addition, the term fund balance was replaced
by net assets as codified by the Governmental Accounting Standards
Board (GASB).
In short, reserves are the liquid assets of the District,
accumulated and maintained for application to finance contingent
future activities, whether known or unanticipated, operating or
capital in nature. The District’s Reserve Policy governs the
management and use of these financial resources. Few policies
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have a more significant impact on the financial health and
stability of the District. This policy explains several key
financial concepts used by the District and provides some
background information to the overall strategies and practices
utilized. The District has a fiduciary obligation to its
customers, to manage and direct the use of public funds for the
purpose of providing water and sewer services in an efficient and
financially sound manner.
1.4 Policy Guidelines
In 2000, the Little Hoover Commission reviewed the levels of
reserve funds for special districts in California and prepared a
report reflecting that special districts were accumulating
unreasonable levels of funds. As a proactive response, the
California Special Districts Association (CSDA) prepared Reserve
Guidelines for its members. The Reserve Guidelines were
significant in noting that reserve levels need to be in context of
the organization’s overall business model and capital improvement
plan.
There are a number of potential events which the District should
consider in the development of reserves:
• Economic Uncertainty - performance of the regional economy
and the impact of that performance on demand for water.
• Weather - the amount of rainfall and the impact of weather on
the availability and the cost of water as well as the demand
for water.
• Government Mandates - the impact of federal and state
regulation, particularly environmental regulation.
• Tax Changes - limitations on the District’s taxing and
spending powers through the passage of a voter referendum,
the impound of District property taxes or the removal of the
District’s power to levy property taxes, further increases to
Educational Revenue Augmentation Fund (ERAF) contributions or
changes in calculation methodology.
• Operating Costs - increases in operating and maintenance
costs because of inflation, labor agreement or other
modification.
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• Force Majeure - unanticipated expenditures resulting from
natural disasters or intentional acts.
• Emergency Maintenance - unanticipated expenditures resulting
from unexpected failure of assets (e.g., rupture in the
primary transmission system).
• Unexpected Variation in Cash Flow - the incidence of
additional costs or decreased revenues that require short-
term borrowing in the absence of sufficient financial
resources.
The California State Auditor has, in its oversight role, offered a
number of quality recommendations for the development of reserve
policies as outlined in its report entitled, “California’s
Independent Water Districts: Reserve Amounts Are Not Always
Sufficiently Justified, and Some Expenses and Contract Decisions
Are Questionable,” dated June 2004, Report No. 2003-137. All of
these recommendations have been incorporated into this policy in
an effort to address key issues surrounding the management and use
of District reserves. The detailed objectives as identified by
the State Auditor are as follows:
• Distinguish between restricted and unrestricted reserves.
• Establish distinct purposes for all reserves.
• Set target levels, including minimums and maximums, for the
accumulation of reserves.
• Identify the events or conditions that prompt the use of
reserves.
• Conform to plans to acquire or build capital assets.
• Receive Board approval and that it is in writing.
• Require periodic review of reserve balances and rationale for
maintaining them.
Yet, the State Auditor’s report acknowledges that the California
Constitution (Article XIII B, Section 5) is vague in its
provisions governing the accumulation and use of reserves.1
1 California State Auditor, Bureau of State Audits, “California’s Independent Water Districts: Reserve Amounts Are
Not Always Sufficiently Justified, and Some Expenses and Contract Decisions Are Questionable,” dated June 2004,
2003-137; p. 8.
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Specifically, the Constitution states that “each entity of the
government can establish contingency, emergency, unemployment,
reserve, sinking fund… or similar funds as it shall deem
reasonable and proper.”2 Similarly, the State’s Water Code does
not impose any requirements as to specific or recommended reserve
fund levels. As a result, the public finance community as a whole
has yet to settle on any real objective standards for the level of
reserve funds appropriate for governmental enterprises. This lack
of consensus as to specific standards is indicative of the wide
variance of the financial and operations context for different
districts and different contingencies justifying reserves.
The Government Finance Officers Association (GFOA) in its
“Recommended Practice on Appropriate Level of Unreserved Fund
Balance in the General Fund” (2002) states that in
establishing a policy governing the level of unreserved fund
balance in the general fund, a government should consider a
variety of factors. These include:
• The predictability of its revenues and the volatility of
its expenditures (i.e., higher levels of the unreserved
fund balances may be needed if significant revenue
sources are subject to unpredictable fluctuations or if
operating expenditures are highly volatile).
• The availability of resources in other funds as well as
the potential drain upon general fund resources from
other funds (i.e., the availability of resources in
other funds may reduce the amount of the unreserved fund
balance needed in the general fund, just as deficits in
other funds may require that a higher level of
unreserved fund balance be maintained in the general
fund).
• Liquidity (i.e., a disparity between when financial
resources actually become available to make payments and
the average maturity of related liabilities may require
that a higher level of resources be maintained).
• Designations (i.e., governments may wish to maintain
higher levels of the unreserved fund balance to
compensate for any portion of unreserved fund balance
already designated for a specific purpose).
2 California Constitution, Article XIII B, Section 5.
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In the preparation of this policy, each of the CSDA guidelines and
the GFOA recommendations has been considered. In addition, all
seven objectives provided by the State Auditor are specifically
addressed for each reserve. The District wholly supports the
State Auditor’s efforts to bring a high-level of quality to
reserve governance and establishing a standard of performance.
The District recognizes that the customer pays for services
provided. Quality management requires that periodic valuations be
performed so that fees and charges can be set at appropriate
levels to recover the cost of service. The District’s Reserve
Policy has been drafted with consideration of the GFOA, CSDA, and
State Auditor’s general guidelines as provided above. In
addition, the District has adopted the following principles in the
management of its financial resources:
• Reserves are held and used only for the purpose for which
they are collected. This is done to maintain equity among
customers.
• Each of the service types is tracked separately so that
expenditures and revenues can be monitored and evaluated for
each customer type. This provides the District with the
necessary information to appropriately charge for each of the
services.
• Separation of operations and maintenance from capital
expenditures occurs within each of the service types. This
is done because the financing of these expenditures is often
on different timelines or use different reserves.
• The District will hold its reserves at responsible and
prudent levels. This policy sets minimum, maximum, and
target levels for each of the various funds. This has been
done so that the District can maintain reserves to meet the
purpose for which the funds were established. The levels are
set by reference to line items in the District’s financial
statements and approved budgets. This allows reserve levels
to adjust to the District’s changing financial circumstances.
• Debt financing of facilities provides intergenerational
equity and maintains rates at reasonable levels. This equity
is accomplished with long-term financing which spreads the
cost of facilities over the life of the facilities. The
burden to pay for facilities is then paid by those who use
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them. The District could amass significant reserves by pre-
collecting financial resources in a Replacement Reserve Fund
allowing the District to cash finance all replacements.
However, this would require significant rate increases
burdening the current customers and creating reserve levels
difficult to defend to the ratepayers or other oversight
entities.
These concepts are fundamental to the way the District manages its
funds and have a direct impact on the way rates and charges are
set. The District performs annual budget evaluations and updates
its rate model on an annual basis to monitor and adjust the
various funds and revenue sources. The separation, tracking, and
projecting of the various funds and expenditures create the
essential information necessary for the equitable rate structure
maintained by the District. The annual review preserves the
balance between services provided and the fees charged. This
review also insures that reserves will be available to continue to
serve the District’s customers.
Financial Sources
2.0 Developers
a. Meter Installation Charges (General Use)
Meter fees are charges collected for new water service
connections. Fees vary depending upon meter size and type of
service. The costs associated with meter installations are
included in the Operating Expenses section of the budget.
These charges are financed by developers.
b. Developer Deposits (General Use)
These deposits are for the engineering and operations
services provided to developers. They are tracked separately
for each developer and any excess amount is returned to the
developer.
c. Water Annexation Fees (General Use)
Annexation fees3 are collected as a condition of annexing
into the District’s potable or recycled water facilities.
Since the existing facilities have been built and maintained
by developers or customers within the District, the
3 Code of Ordinances, Section 9.
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annexation fee is calculated based on the present value of
all property taxes (1% property tax and availability fees)
paid by existing and prior customers. The annexation fee
reimburses existing customers for past contributions so that
all customers have contributed more equally to water
facilities. Proceeds of annexation fees are unrestricted and
may be used for any general fund purpose.
d. Sewer Annexation Fees (General Use)
A sewer annexation fee is collected when property is annexed
into an improvement district. Since the existing facilities
have been built and maintained by developers or customers
within a sewer IDs, the annexation fee is calculated based on
the present value of all availability fees paid by existing
and prior customers. The annexation fee reimburses existing
customers for past contributions so that all customers have
contributed more equally to sewer facilities. Proceeds of the
annexation fees are unrestricted and may be used for any
general fund purpose.
e. New Water Supply Fee (Restricted)
New water supply fees4 are based on the cost of the expansion
portion of new water supply projects divided by the number of
future equivalent dwelling units (EDU). The new water supply
fee covers the cost of planning, design, construction, and
financing associated with facilities for the District’s new
supply needs. These fees are paid by developers. The
proceeds of this fee may be used only for new potable or
recycled water supply projects. Although the fees collected
are not restricted separately, one portion for potable and
the other for recycled, they are tracked separately.
f. Water Capacity Fees (Restricted)
Water capacity fees4 are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers costs to repay
existing customers for the facilities that they have built,
and where the “incremental” portion of the capacity fee
covers the cost of future expansion facilities. The “buy-in”
portion of the capacity fee is restricted to pay for
4 Code of Ordinances, Section 28
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planning, design, construction, and financing associated with
expansion, replacement or betterment facilities. The “buy-
in” portion may be shifted back and forth between expansion,
betterment or replacement as the financing needs change. The
“incremental” portion of the capacity fee is limited to
planning, design, construction, and financing exclusively for
expansion facilities (excluding new water supply expansion).
g. Sewer Capacity Fees (Restricted)
Sewer capacity fees are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers cost to repay existing
customers for the facilities that they have built, and where
the “incremental” portion of the capacity fee covers the cost
of future expansion facilities. The “buy-in” portion of
the capacity fee is restricted to pay for planning, design,
construction, and financing associated with expansion,
replacement or betterment facilities. The “buy-in” portion
may be shifted back and forth between expansion, betterment
or replacement as the financing needs change. The
“incremental” portion of the capacity fee is limited to
planning, design, construction, and financing exclusively for
expansion facilities. For parcels within a sewer ID the
calculation excludes the tax debt already paid by these
customers therefore, producing a lower fee than for parcels
outside of a sewer ID. The capacity fees are restricted to
pay for planning, design, construction, and financing
associated with the expansion, replacement, or betterment of
facilities.
Facility needs are based on projected land use planning. Changes
in anticipated future land use occur and can alter projected
facility requirements. Thus, both the anticipated facilities
needs and their projected costs change over time as regulatory
agencies make changes to land use. The District periodically
reviews the capacity fee calculation to accommodate such
variations. These fees are paid by developers.
The District’s construction of infrastructure occurs prior to the
addition of EDUs. This sequence serves two purposes: one it
ensures that the District can serve the pending construction as it
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is completed; and two, it is more efficient to oversize many
facilities at the outset rather than build for the current need
and then reconstruct when the future need is realized. As a
result of this strategy, the District has financed construction
with bond financing as the existing expansion reserves are
depleted.
The water capacity fee is calculated based on the combined
recycled and potable water systems’ needs. This methodology is
used because the two water systems work hand-in-hand. All
capacity fees can be used for either potable or recycled but must
be tracked to distinguish between the “buy-in” and “incremental”
portions as described above. So, while capacity fees are not
restricted separately by potable and recycled, they are tracked
separately.
2.1 Customers/Users
a. Uniform Rates and Charges (General Use)
Charges to users for water, sewer, and recycled water are
uniform throughout the District for similar customer types.
DEVELOPERS
Diagram 2.0: Flow of Funds - Developer Sources
Unrestricted and
Undesignated
(General Use) Funds
Meter
Installation
Charges
Developer
Deposits
Restricted Funds
Annexation
Fees
Capacity
Fees
New Water
Supply Fees
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b. Monthly System Fees (General Use)
This is a fixed revenue source that is charged monthly. The
amount of the charge is based on the meter size.
c. Energy Charges (General Use)
The energy pumping fee is a charge per Unit of water for each
100 feet of lift, or fraction thereof, above the base
elevation of 450 feet. This charge is placed on the monthly
water bills of all water customers.
d. Penalties (General Use)
Penalties are added to the monthly water and sewer bills for
late charges, locks, etc.
e. Pass-through Fixed Charges (General Use)
A fixed monthly charge to the District’s customers intended
to collect sufficient funds to pass-through the increased
fixed costs from the County Water Authority (CWA) and the
Metropolitan Water District (MWD).
f. Special Rates and Charges (General Use)
In addition to the uniform water and sewer charges, the
District has a special sewer rate for the Russell Square lift
station. The Russell Square fee is for construction,
installation, maintenance or repair of the Russell Square
lift station. This fee is collected in accordance with the
Russell Square sewer charge (see Code of Ordinances Section
53.03B).
g. Temporary Meter Fees (General Use/Restricted)
Water charges, in lieu of capacity fees, are charged on
temporary meters. This is done because temporary meters use
system capacity but they are not charged a capacity fee.
Temporary water use is charged at two times the water rate
with the added charge placed in the Restricted Expansion
Fund. The primary users of these temporary meters are
developers; however, general customers also use these for
various purposes.
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2.2 County-Collected Taxes and Fees
a. General Levy Property Tax Receipts (1% Property Tax)
(General Use)
In 1978, Proposition 13 limited the levy of ad valorem
property taxes on real property to one percent of the
assessed value of such property. Subsequent legislation,
AB 8, established that the receipts from the one percent levy
were to be distributed to taxing agencies proportionate to
each agency’s general levy receipts prior to Proposition 13.
Taxes received are for general use. Spending limits for the
District are governed by the 1979 passage of California
Proposition 4, Limitations of Government Appropriations (GANN
limit). Proposition 4 places an appropriation limit on most
spending from tax proceeds.
b. Availability Charges (General Use/Restricted)
The District levies availability charges each year in
developed and undeveloped areas. Current legislation
provides that any amount up to $10 per parcel is general use
and any amount over $10 per parcel is restricted to be
CUSTOMERS / USERS
Diagram 2.1: Flow of Funds - Customer Sources
Unrestricted and
Undesignated
(General Use) Funds
Monthly
System Fees
Restricted Funds
Energy
Charges
Penalties
Pass –Through
Fixed Charges
2x Water
Rate
Special Rates
and Charges
Uniform Rates
and Charges
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expended in and for the improvement district (ID) within
which it is collected. Accordingly, the District may use
availability charges in excess of $10 toward costs of water
and sewer facilities which are either, expansion, betterment,
or replacement of facilities consistent with the purpose of
the ID in which they are collected. This portion of the
proceeds of availability charges is geographically restricted
and restricted by purpose. As costs are incurred on these
projects the respective IDs are charged, reducing the
reserves. To the extent that availability charges are not
used for the purpose for which they are collected, they must
be returned to the property owners that paid them. The
District has historically used these reserves for betterment
capital facilities thus, the restricted reserves are
accounted for in “sub-funds” of the Betterment Fund
(See 2.1 f.).
c. Improvement District General Obligation (GO) Bond
Assessments (Restricted)
The District has historically issued general obligation (GO)
debt and establishes an improvement district for the
repayment of that debt. When this financing method is used,
the county tax roll can be used to collect special taxes or
assessments within the ID to pay the debt obligation. The
proceeds of the debt are restricted for the purpose as
defined in the bond documents.
COUNTY COLLECTED TAXES AND FEES
Unrestricted and
Undesignated
(General Use)
Funds
General Levy
Property Tax
Receipts
Availability
Charges
Restricted Funds
General Obligation
Bond Assessments
Diagram 2.2: Flow of Funds – County Collection Sources
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2.3 Miscellaneous Income
a. Miscellaneous Rents and Leases (General Use)
Revenues received from the rental and lease of District
property are general use revenues. Not only are they
periodic revenues, but there is also a one-time fee charged
with the setup of each new lease. The District incurs
expenses related to these rents and leases. The one-time
fees are calculated to recover the costs to setup the leases.
b. Sewer Billing Fees (General Use)
Sewer billing fees are general use revenues. The District
provides processing and billing services to the City of Chula
Vista to bill and collect from their customers for sewer
service. These fees are to recover the cost the District
incurs to provide this service.
c. Interest Income or Expense Allocation (General Use,
Designated, and Restricted)
Interest income (expense) will be allocated every month based
upon each fund's month-ending balance. In this way, each
fund receives credit for interest earned by that fund and
each fund with a negative balance is charged for the use of
the other fund’s reserves.
MISCELLANEOUS INCOME
Unrestricted and
Undesignated
(General Use) Funds
Miscellaneous
Rents and Leases
Sewer Billing
Fees
Restricted Funds
Interest Income or
Expense Allocation
Diagram 2.3: Flow of Funds – Miscellaneous Income Sources
Designated Funds
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2.4 Debt Issuance
a. Loans (General/Restricted Use)
As the District determines that additional financing is
required for a particular purpose, the option of borrowing is
considered. The determination to borrow is made as a part of
the annual rate model update and is evaluated in accordance
with the Debt Policy before it is recommended to the Board
for action. As an option to bond indebtedness, loans are
available to satisfy short-term financing needs. These loans
may or may not be contractually restricted for a particular
purpose.
b. General Obligation (GO) Bonds (Restricted)
As the District becomes more developed it becomes less likely
that general obligation debt will be used as it requires a
vote of the public to be approved. Bond proceeds are
restricted for the construction of those facilities
identified in the GO bond issuance. Occasionally, specific
portions of bond proceeds may be allocated for the repayment
of the principal and interest, also called debt service, on
these bonds. As the District determines that additional
financing is required for a particular purpose, the option of
debt issuance is considered. The determination to issue debt
is made as a part of the annual rate model update and is
evaluated in accordance with the Debt Policy before it is
recommended to the Board for action.
c. Certificates of Participation (COPs) (Restricted)
General revenues of the District are pledged as security for
Certificates of Participation (COPs) indebtedness. If the
District determines that additional financing is required for
a particular purpose, the option of debt issuance is
considered. The determination to issue debt is made as a
part of the annual rate model update and is evaluated in
accordance with the Debt Policy before it is recommended to
the Board for action. This form of financing has become the
industry’s preferred form of financing as it does not require
a vote of the general public.
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2.5 Inter-fund Transfers
Each year in the budgeting process, future fund levels are
projected for the next six years. Based on these projections
transfers are recommended. Reserves may be transferred
between Unrestricted or Designated Funds and the General Fund
(see 4.0 “Funding Levels” and 4.1 “Fund Transfers”).
Reserves may not be transferred to or from any of the
restricted funds unless it is between two restricted funds
with a shared purpose.
Fund Types and Categories
3.0 General Funds
a. Purpose
The General Fund is neither restricted nor designated. The
District maintains one General Fund for each business segment
(water, sewer, and recycled). This fund holds the working
capital and emergency operating reserves. While the General
Fund has a short-term focus to finance the District’s annual
operations, it is supported by the six-year rate model. This
DEBT PROCEEDS
Unrestricted and
Undesignated
(General Use) Funds
Loans General
Obligation Bonds
Restricted Funds
Certificates of
Participation
Diagram 2.4: Flow of Funds – Debt Issuance Sources
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fund is primarily used to finance the operations of the
District; however, it can be used for any District purpose.
This fund can be used to supplement the District’s rates and
charges and be a temporary source of revenue to balance the
Operating Budget. This fund can also be used to avoid spikes
in the rates or significant and abrupt increases. It is an
industry practice to have a fund that can be used to
stabilize rates. This would only occur if there was a
temporary need for reserves that would smooth out a rate
spike or to ramp up what would otherwise be a dramatic rate
increase.
The General Fund also plays a role in the debt planning of
the District. This fund is viewed by the debt markets as a
commitment by the District to ensure financial stability of
the rates and charges of the District. The District is
anticipated to need a number of debt issuances over the years
and this fund will help the District not only to stabilize
rate fluctuations but also to access low cost financing for
future projects.
b. Sources
Meter installation charges, temporary meter fees, uniform
rates and charges, monthly system fees, energy charges,
penalties, pass-through fixed charges, general levy property
tax receipts, water annexation fees, availability charges,
miscellaneous rents and leases, sewer billing fees, interest
income or expense allocation, loans, and a portion of the
temporary water sales.
The sewer general fund receives sewer charges, penalties,
availability charges, sewer annexation fees, and interest
income or expense allocation.
c. Funding Levels
I. Minimum Level – The minimum reserve level for each
business segment of the General Fund is three
months of operating budget expenses (evaluated
separately for each segment).
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II. Maximum Level – The maximum reserve level for the
General Fund is nine months of operating budget
expenses. In the event that this fund exceeds the
seven month level, the excess will be evaluated or
transferred to one or more of the designated funds.
III. Target Level – The target level of reserves is
three months of operating budget expenses. In the
event that the fund drops below the target level,
rate increases or fund transfers would be
considered.
3.1 Designated Other Post Employment Benefits (OPEB) Fund
a. Purpose
Designated Other Post Employment Benefits (OPEB) reserves are
“general use” reserves that have been set apart by Board
action to finance the medical benefits of qualified retirees
as outlined in the District’s benefits plan. This fund is
available to hold any Board designated OPEB funds. The
District also has a trust at CalPERS and is restricted for
the purpose of financing the OPEB liability. Money held in
the CalPERS trust restricts the funds from any use other than
OPEB. The two funds are considered jointly when looking at
target reserve levels. Every two years, actuarial study is
performed to update the annual financing requirements.
Changes in the actuarial valuation may result from changes in
benefit levels, employee population, health insurance costs,
or general market conditions.
b. Sources
The OPEB liability may be financed by general use reserves
coming from user rates and charges, either from an operating
budget expenditure or from interfund transfers. Transfers of
unrestricted reserves may come from the various designated
funds or from the General Fund. As a part of the normal
budget process, annual operating revenues have been
sufficient to finance the ongoing needs of this designated
fund. While debt financing is also an option, the District
has only used user rates and charges to finance this fund.
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c. Funding Levels
I. Minimum Level – The minimum reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. When
considering the reserve level of this fund, both
the District held OPEB reserves and CalPERS held
OPEB reserves must be considered jointly.
II. Maximum Level – The maximum reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. In the event
that the two funds, as described above, exceed the
OPEB liability, the District will reduce the annual
funding levels as defined by the actuarial study.
III. Target Level – The target reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. In the event
that the two funds, as described above, fall below
the OPEB liability, the District will increase the
annual funding levels as defined by the actuarial
study.
3.2 New Water Supply Fund Category
a. Purpose
The New Water Supply Fund category is to finance the
expansion portion of new water supply projects and is
therefore to be paid by developers. When considering the
reserve level of the New Water Supply category; the New Water
Supply Fund, the New Water Supply Debt Fund, and the
Designated New Water Supply Fund all work in concert and must
be considered jointly.
b. Sources
The New Water Supply Fund receives reserves only from the new
water supply fee. Other funds within the new water supply
category of funds receive debt proceeds and general use
reserves through a designation to this category.
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c. Funding Levels
I. Minimum Level – As the District matures the CIP
will move to purely replacement projects. As the
District moves through its lifecycle the need for
new water supply reserves will decrease and may be
reduced to zero.
II. Maximum Level – The maximum reserve level for the
new water supply category of funds is limited to
five years of the unfinanced new water supply
facilities as described in the District’s CIP
Budget. To determine the unfinanced amount, the
total new water supply financing needs must be
reduced by the projected new water supply revenues,
general fund designations, and bond financing. If
the combined new water supply reserves exceed the
target level, the District should consider
transferring designated reserves to meet other
purposes, reduce the new water supply fee, or
change the timing of the new water supply projects.
III. Target Level – In order to facilitate debt
financing of the new water supply, it is important
that the various new water supply funds retain an
overall reserve level of six months, prior to any
attempt to obtain debt financing. This reserve
level allows the District the time necessary to
issue additional debt without depleting new water
supply reserves. If the combined new water supply
reserve levels drop below six months of
expenditures, this would trigger a transfer of
general use reserves, a bond sale, or a change in
the timing of new water supply projects. Bond
proceeds would be placed in the Restricted New
Water Supply Debt Fund while transfers would be
placed in the Designated New Water Supply Fund.
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3.3 Expansion Fund Category
a. Purpose
The Expansion Fund category is to finance the expansion
portion of capital projects and therefore is to be paid for
by developers. When considering the reserve levels of the
expansion category, the following funds work in concert and
must be considered jointly: the Expansion Fund, Expansion
Debt Fund, Capital Improvement Fund, and the Designated
Restricted Funds
Unrestricted and
Undesignated Funding
Sources
Funding Source New Water
Supply Fees
Debt
Proceeds
Restricted Funds
Restricted Funds
Designated Funds
New Water
Supply Fund
Expansion
New Water
Supply Fund
Designated
New Water
Supply Fund
Debt Fund
General Fund – Rates and Charges
New Water
Supply Fund
Category
New Water
Supply
Debt Fund
Diagram 3.2: New Water Supply Fund Category
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Expansion Fund. Potable and recycled reserves are considered
jointly while sewer is evaluated separately.
b. Sources
The Expansion Fund is financed by water charges in lieu of
capacity fees (for temporary meters) and the “incremental”
portion of the capacity fee. The other funds in this
category may also be financed by debt proceeds, the “buy-in”
portion of the capacity fee, and the general fund through a
designation of reserves.
c. Funding Levels
I. Minimum Level – As the District matures the CIP
will move to purely replacement and betterment
projects. As the District moves through this
lifecycle the need for expansion reserves will
decrease and may be reduced to zero.
II. Maximum Level – The maximum reserve level for the
expansion category of funds is limited to five
years of unfinanced expansion facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing needs must be reduced by the projected
expansion revenues, bond financing, and any
restricted or general fund revenues allocated to
this fund category. If the combined expansion
reserves exceed target levels, the District should
consider reducing capacity fees, reallocating
restricted or designated funds to meet other
purposes, or shifting the timing of expansion
projects.
III. Target Level – The target level is six months of
expansion expenditures. It is important that the
expansion reserves remain at a minimum of six
months of expansion expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting expansion
reserves. If the combined expansion reserves drop
below six months of expenditures this would trigger
a transfer of general use reserves, a bond sale, an
adjustment to the timing of expansion projects, or
a reallocation of restricted reserves. Bond
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proceeds would be placed in the Restricted Bond
Fund, transfers of general use reserves would be
placed in the Designated Expansion Fund, and
transfers of restricted reserves would be placed in
the Expansion Capital Improvement Fund.
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Unrestricted and
Undesignated Funding
Sources
Diagram 3.3: Expansion Fund Category
Funding Source 2x Water
Rates
Capacity
Fees (1)
Restricted Funds
Restricted Funds
Designated Funds
Expansion
Fund
Expansion
Debt Fund
General Fund – Rates and Charges
Restricted Funds Expansion Capital
Improvement
Fund
Debt
Proceeds
Restricted Funds
Capital
Improvement
Fund
Bond
Debt
Expansion
Fund
Designated
Expansion
Fund
Expansion
Fund
Category
(1) For Water Capacity Fees 32.4% goes into the Expansion fund and 67.6% goes into
the Capital Improvement Fund. For Sewer Capacity Fees 100% goes into the
Capital Improvement Fund.
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3.4 Replacement Fund Category
a. Purpose
The Replacement Fund category is to finance replacement
projects. When considering the reserve levels of the
replacement category of funds, the following funds work
in concert and must be considered jointly: the Debt
Fund, Capital Improvement Fund, and the Designated
Replacement Fund. The purpose of these reserves is to
pay for the replacement of capital infrastructure and
capital purchases. These reserves are not to be used
for the replacement of non-capital items.
With the District’s development of its financial systems
and the greater need and ability to separate and track
reserves, the replacement reserves have been separated
into three funds: water, recycled, and sewer.
Projects undertaken solely for the purpose of replacing
major capital equipment or facilities, i.e., where the
cost exceeds $10,000 for capital purchases or $20,000
for infrastructure items, generally these are not
considered normal maintenance. When the cost is below
$10,000, the costs are financed annually as operational
maintenance. As charges are incurred on replacement
projects the reserves are deducted from the respective
Replacement Funds on a monthly basis.
b. Sources
The various funds in this category are financed by debt
proceeds, the “buy-in” portion of the capacity fee, and
general fund designations.
c. Funding Levels
I. Minimum Level – The minimum reserve level of this
category of funds is 3% of the historical value of
existing assets as identified in the District’s
current financial statements. Potable, recycled,
and sewer replacement are evaluated separately.
II. Maximum Level – The maximum reserve level of this
category of funds is 6% of existing assets. If the
combined replacement reserves exceed target levels,
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the District should consider transferring the “buy-
in” portion of the capacity fee to meet other
purposes. Another consideration would be to shift
the timing of replacement projects.
III. Target Level – The target reserve level of this
category of funds is 4% of existing assets. In the
event that the reserves fall below the recommended
target level, the District should consider
transferring the “buy-in” portion of the capacity
fee. The District should also consider shifting
the timing of replacement projects or issuing debt
to support the planned level of facility
replacement. The District will act based on the
annual six-year rate model, to insure that at the
end of that planning horizon the reserves exceed
the minimum level and is approaching the target
level.
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(1) For Water Capacity Fees 67.6% goes into the Capital Improvement Fund.
For Sewer Capacity Fees 100% goes into the Capital Improvement Fund.
3.5 Betterment Fund Category
a. Purpose
The Betterment Fund category is to finance the
betterment portion of capital projects with a portion
going to maintenance of the potable, recycled, and sewer
systems. The District maintains separate Betterment
Fund categories, one for each improvement district. An
Funding Source
Unrestricted and
Undesignated Funding
Sources
Capacity
Fees (1)
Diagram 3.4: Replacement Fund Category
Restricted Funds
Restricted Funds
Designated Funds
Capital
Improvement Fund
Replacement
Debt Fund
Designated
Replacement
Fund
General Fund – Rates and Charges
Debt
Proceeds
Debt Fund
Restricted Funds
Replacement
Capital
Improvement
Fund
Replacement
Fund
Category
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improvement district is a legally defined geographic
area usually established for the purpose of bond
financing of facilities. The betterment reserves within
these funds are restricted by law for use within the
improvement district in which the fees were collected
(Water Code 71631.6). However, the legal restriction of
this reserve depends upon the particular revenue source.
(See Section 2.2 b. for a review of the availability
fees).
When considering the reserve levels of the betterment
category of funds, the following funds work in concert
and must be considered jointly: the Betterment Fund,
Debt Fund, Capital Improvement Fund, and Designated
Betterment Fund.
b. Sources
The Betterment Fund category receives restricted
revenues by improvement district from availability fees
(the first $10 is unrestricted, while amounts over $10
are restricted) collected through the county tax roll.
Betterment may also be financed by debt proceeds, the
“buy-in” portion of the capacity fee, as well as the
general fund through a designation of reserves.
c. Funding Levels
I. Minimum Level – As the District matures the CIP
will move to purely replacement projects. As the
District moves through this lifecycle the need for
betterment reserves will decrease and may be
reduced to zero.
II. Maximum Level – The maximum reserve level for the
betterment category of funds is limited to five
years of unfinanced betterment facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing need must be reduced by the projected
betterment revenues, bond financing, and general
fund designations. If this maximum is exceeded,
then the District should evaluate reductions in the
special water rates and availability fees,
transferring designated reserves to meet other
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purposes, or shifting the timing of betterment
projects.
III. Target Level – The target is six months of
betterment expenditures. It is important that the
betterment reserves remain at a minimum of six
months of betterment expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting betterment
reserves. If the combined betterment reserves drop
below six months of expenditures this would trigger
a transfer of general use reserves, a bond sale, or
an adjustment to the timing of betterment projects.
Bond proceeds would be placed in the Betterment
Bond Fund while transfers would be placed in the
Designated Betterment Fund.
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Fund
Unrestricted and
Undesignated Funding
Sources
Diagram 3.5: Betterment Fund Category
Funding Source Capacity
Fees (2)
Restricted Funds
Restricted Funds
Designated Funds
Capital
Improvement
Fund
Betterment
Debt Fund
Betterment
Fund
General Fund – Rates and Charges
Availability
Charges (1)
Restricted Funds
Debt
Proceeds
Restricted Funds
Bond
Debt
Designated
Betterment
Fund
Betterment
Fund
Betterment
Capital
Improvement
Fund
Betterment
Fund
Category
(1) The portion of charges over $10 per parcel is restricted.
(2) For Water Capacity Fees 67.6% goes into the Capital Improvement Fund. For Sewer
Capacity Fees 100% goes into the Capital Improvement Fund.
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Diagram 3.6: Fund Targets
Fund or Fund
Category
Actions to Consider if
below Target Target Maximum
New Supply Fund
Category
New supply fee increase,
bond financing, or
transfer to designated or
CIF Funds
Total of all funds in fund
category = six months of
capital expenditures
Nexus of cost to fee
Expansion Fund
Category
Capacity fee increase,
bond financing, or
transfer to designated or
CIF Funds
Total of all funds in fund
category = six months of
capital expenditures
Nexus of cost to fee
Replacement Fund
Category
Bond financing, or
transfer to designated or
CIF Funds
Total of all funds in fund
category = 4% of
infrastructure
Nexus of cost to fee
Betterment Fund
Category
Bond financing, or
transfer to designated or
CIF Funds
Total of all funds in fund
category = six months of
capital expenditures
Five years unfunded
needs
Debt Reserve Fund Increase tax collection or
rates
One semi-annual
payment
Two semi-annual
payments
Rate Stabilization Fund Fund transfers from
legally available funds
The financial impact of
two consecutive years of
low winter water usage
The financial impact of
three consecutive years
of low winter water
usage
OPEB Fund Fund transfers Full funding Full funding
General Fund Rate increase or fund
transfers
Three months of
operating budget
expenses
Nine months of
operating budget
expenses
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Additional Restricted Funds
4.0 Capital Improvement Fund
a. Purpose
The “Capital Improvement Fund’s sole purpose is to track the
“buy-in” portion of the capacity fee and to ensure these fees
are expended solely for the purpose for which they were
collected. In this case it is to pay for facilities that
were in existence at the time this fee was established.
These fees may be used for expansion, replacement, or
betterment projects or any debt related to these categories.
The water capacity fees may also be used for either the
potable or the recycled systems. As capacity fees are
collected, the “buy-in” portion of the fee is allocated as
needed to one of three capital improvement funds, one in each
of the Expansion, Replacement, and Betterment Fund
categories. These reserves are used to pay debt or offset
any negative balance within these three categories of funds.
For sewer, these fees fund the Expansion, Replacement, or
Betterment Fund categories. These fees may not be used to
finance the New Water Supply category, as there were no new
water supply facilities in existence at the time the new
methodology for capacity fees was established.
b. Sources
The “buy-in” portion of the capacity fee collected after
June 30, 2010 or after September 30, 2014 for sewer.
c. Funding Levels
There are no minimums, maximums, or target levels for these
reserves on an individual basis. The allocation of this fee
to the various capital improvement funds is dependent on the
overall reserve levels within each fund category.
4.1 Debt Reserve Fund
a. Purpose
The Debt Reserve Fund is established to hold the proceeds
from the various debt issuances. There are two types of
debt, General Obligation bonds and Certificates of
Participation bonds. The proceeds are transferred to the New
Water Supply, Expansion, Replacement, or Betterment Debt
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Funds as they are expended for various facilities within
those fund categories. As repayment of the debt occurs, the
balances within these individual funds are reduced so that
the financial impact of issuing debt is tracked within the
category for which the debt was issued.
b. Sources
Debt proceeds.
c. Uses
There are no minimums, maximums, or target levels for this
fund on an individual basis. This fund is available on an as
needed basis to fund CIP projects for new water supply,
expansion, replacement, or betterment. From a funding level
perspective, these reserves are evaluated in the context of
all the various funds within each fund category.
4.2 Rate Stabilization Fund
a. Purpose
The Rate Stabilization Fund is established for the purpose of
minimizing rate increases in response to one-time events and
therefore stabilizing the rates and charges imposed by the
District to meet covenanted debt service coverage levels.
The Rate Stabilization Fund is not intended to be used to
offset regular rate increases needed to meet inflationary
cost increases in operations.
b. Sources
The District may budget for Rate Stabilization Fund deposits
from the Sewer Fund, amounts in excess of the annual debt
service coming due and payable in the fiscal year, after
payment of operating expenses. The allowable amount that may
be deposited shall not be transferred prior to payment of the
annual debt service obligation.
c. Uses
There is no minimum level for this fund. The maximum level
shall be equal to the financial impact of three (3)
consecutive years of low winter water usage. The target
level for this fund shall be equal to two (2) consecutive
years of low winter water usage. For the purposes of
calculating debt service, amounts transferred from the Rate
Stabilization Fund to the Sewer Fund will constitute Gross
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Revenue in the fiscal year the transfer occurs. All interest
or other earnings on deposits in the Rate Stabilization Fund
will be withdrawn at least annually and will be accounted for
as operating revenue in the Sewer Fund.
Fund Transfers
5.0 Funding Levels
As described in the preceding sections, the District maintains
reserves for its operating and capital activities. These reserves
can be of three types: 1) undesignated or general use reserves,
2) designated, and 3) restricted for a specific purpose. The
restricted reserves can be restricted geographically and/or by
purpose. The District maintains various funds to track the
various designations and restrictions. The source of the money
for each fund was discussed along with the purpose, source of
funds, and levels. Key characteristics of these funds are the
target levels, minimums, and maximums. The funding levels must be
viewed in the context of the economic environment, political
environment, and in light of the District’s rate model. The
District’s six-year rate model not only shows the current balance
but also shows the trend of the fund balances. Often the trend of
the fund is a greater indicator of financial stability than is the
current balance.
The rate model is updated each year with the budget process and
evaluates each fund over the next six years. The rate model will
take into account the general economic environment, looking at the
development rate, supply rate increases, the possibility of
raising rates, capital infrastructure spending, and strategic plan
initiatives. The fund balances may at times be over or under the
target amount. This is not only acceptable but expected. The
rate model provides an empirical estimate of the conformance
between the projected District’s financial activities and the
guidelines of this policy.
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5.1 Fund Transfers
Reserves within the District’s various designated funds come from
interfund transfers of unrestricted general use reserves. It is
important to note that the District has the ability to use general
use reserves for any business purpose. General use reserves may
be transferred to and from any unrestricted fund for any business
need. Designated reserves are general use reserves which have
been set aside for a specific purpose by Board action. These
reserves can only be used for the purpose they were designated, or
with Board action they may be used for any other business purpose.
While general use reserves may be used for any restricted purpose
they may not be transferred to Restricted Funds due to the
sensitivity of the tracking of restricted reserves. If reserves
are needed for a restricted purpose they are transferred to a
Designated Fund within the fund category with that particular
purpose. Reserves restricted to a fund category may only be used
within that category and may not be transferred to another
category. For example, the new water supply fee and the
“incremental” portion of the capacity fee are restricted reserves
for a specific purpose, and may not be transferred to another
category as no other category has the same purpose. However, the
“buy-in” portion of the capacity fees are restricted for purposes
that are shared by more than one category of funds and may
therefore be transferred to a restricted fund within another fund
category as long as it shares the same purpose.
In many situations reserve transfers are expected as some fund
categories will exceed their maximums or drop below their
minimums. Only fund categories that are below the stated target
are eligible to receive transferred reserves. Fund categories
that exceed their maximums are first to be considered for
transfers out, followed by funds that exceed their targets. Funds
that exceed their minimums are also available for reserve
transfers out, but only when other options are not available.
The rationale for prioritizing reserve transfers is based on the
immediacy of the need and the availability of reserves from other
funding sources. For example, the General Fund is first to
receive reserves when it drops below its target or minimum levels.
This is because of the immediate and ongoing nature of the
expenditures that are served by this fund. The operation of the
District is first and foremost of the objectives of the District.
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On the other end of the spectrum, the Replacement Fund has a long-
term perspective and will be used to partially finance replacement
assets for many years to come. Debt financing is available to
respond to this long term, foreseeable, and planned cash flow.
This fund is less likely to have immediate needs and has other
financing options.
When making the determination of when transfers are necessary, all
funds within a fund category work as a group. The combined
balance of the restricted and designated funds is looked at when
determining whether the fund category requires additional funding
from the Restricted Capital Improvement Fund, Restricted Debt
Fund, or the General Fund. Because the Capital Improvement Fund
may finance expansion, replacement or betterment reserves may be
transferred between these fund categories, but only back and forth
within its own type of restricted fund.
As an example, if during the rate model update process it was
determined that the Expansion Funds (designated and restricted)
would drop and stay below the minimum during the six-year planning
horizon, this would trigger a bond sale, a transfer of general use
reserves, and/or a transfer of restricted reserves. If in the
cash planning process, it was anticipated that the General Fund
would remain above target during the planning horizon and that the
trend did not present a problematic underfunded status, then
General Fund reserves would be considered available for transfer
prior to making proceeds available from a bond sale. Also, if
during this period the Betterment Fund category was anticipated to
exceed its maximum, then reserves from either the Designated
Betterment Fund, or the Capital Improvement Fund would be
transferred to the corresponding Expansion Fund prior to a bond
sale. All funds are evaluated to determine which has the greatest
need or availability of reserves before any reserve transfer
recommendation is presented to the Board.
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GLOSSARY
The Reserve Policy contains terminology that is unique to public
finance and budgeting. The following glossary provides assistance
in understanding these terms.
Annexation Fees: When water service is requested for land outside
the boundaries of the District, the land to be serviced must first
be annexed. For sewer service the land must be annexed into an
improvement district within the District.
Assets: Resources owned or held by Otay Water District that has
monetary value.
Availability Fees: The District levies charges each year in
developed areas to be used for upgrades, betterment, or
replacement and in undeveloped areas to provide a source of
funding for planning, mapping, and preliminary design of
facilities to meet future development. Current legislation
provides that any availability charge in excess of $10.00 per acre
shall be used only for the purpose of the improvement district for
which it was assessed.
Bond: A written promise to pay a sum of money on a specific date
at a specified interest rate. The interest payments and the
repayment of the principal are authorized in a District bond
resolution. The most common types of bonds are General Obligation
(GO) bonds and Certificates of Participation (COPs). These are
frequently used for construction of large capital projects such as
buildings, reservoirs, pipelines and pump stations.
Capital Equipment: Fixed assets such as vehicles, marine
equipment, computers, furniture, technical instruments, etc. which
have a life expectancy of more than two years and a value over
$10,000.
Capital Improvement Program: A long-range plan of the District
for the construction, rehabilitation and modernization of the
District-owned and operated infrastructure.
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CWA: The County Water Authority was organized in 1944 under the
State County Water Authority Act for the primary purpose of
importing Colorado River water to augment the local water supplies
of the Authority's member agencies. The Authority purchases water
from the Metropolitan Water District of Southern California (MWD)
which imports water from the Colorado River and the State Water
Project.
Debt Service: The District's obligation to pay the principal and
interest of bonds and other debt instruments according to a
predetermined payment schedule.
Expenditures/Expenses: These terms refer to the outflow of funds
paid or to be paid for an asset, goods, or services obtained
regardless of when actually paid for. (Note: An encumbrance is
not an expenditure). An encumbrance reserves funds to be expended
in a future period.
Fund: An account used to track the collection and use of monies
for a specifically defined purpose.
Fund Balance: The current funds on hand resulting from the
historical collection and use of monies. The difference between
assets and liabilities reported in the District’s Operating Fund
plus residual equities or balances and changes therein, from the
results of operations.
Interest Income: Earnings from the investment portfolio. Per
District Policy Number 25, interest income will be allocated to
the various funds each month based upon each fund’s prior month-
ending balance.
Late Charges/Penalties: Charges and penalties are imposed on
customer accounts for late payments, returned payments, and other
infringements of the District’s Code of Ordinances.
1% Property Tax: In 1978, Proposition 13 limited general levy
property tax rates for all taxing authorities to a total rate of
1% of full cash value. Subsequent legislation, AB 8, established
that the receipts from the 1% levy were to be distributed to
taxing agencies according to approximately the same proportions
received prior to Proposition 13.
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Operating Budget: The portion of the budget that pertains to
daily operations that provide basic governmental services. The
operating budget contains appropriations for such expenditures as
personnel, supplies, utilities, materials, travel and fuel, and
does not include purchases of major capital plant or equipment
which is budgeted for separately in the Capital Budget. The
Operating Budget also identifies planned non-operating revenues
and expenses.
Revenue: Monies that the District receives as income. It
includes such items as water sales and sewer fees. Estimated
revenues are those expected to be collected during the fiscal
year.
Russell Square: A sewer lift station constructed in 1983 that
serves four properties in the Russell Square Development.
System Fees: Each water service customer pays a monthly system
charge for water system replacement, maintenance, and operation
expenses. The charge is based on the size of the meter and class
of service.
Tax Collection for Bond Debt: California Water Code Section 72091
authorizes the District, as a municipal water district, to levy ad
valorem property taxes which are equal to the amount required to
make annual payments for principal and interest on General
Obligation bonds approved by the voters prior to July 1, 1978.
Unit: A Unit of water is 100 cubic feet or 748 gallons of water.
Water Rates: Rates vary among classes of service and are measured
in Units. The water rates for residential customers are based on
an accelerated block structure. As more Units are consumed, a
higher Unit rate is charged. Effective in 2009, all non-
residential customers are charged for water based on a tiered rate
structure in which water rates are based on meter size and amount
of Units consumed.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: June 3, 2020
SUBMITTED BY: Eid Fakhouri, Finance 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. 4381 Consenting to Enter the Joint
Protection Programs of the Association of the California
Water Agencies/Joint Powers Insurance Authority (ACWA-JPIA)
and Hereby Elects to Join the Liability, Property, and
Workers’ Compensation Programs Sponsored by the Authority.
Adopt Resolution No. 4382 Authorizing Application to the
Director of Industrial Relations, State of California for a
Certificate of Consent to Self-Insure Workers’ Compensation
Liabilities
Approve Modification to the District’s Purchasing Manual
Section 7.2.8 “Board Authorized Purchases Exceeding the
General Manager’s Authority” to Include Insurance Services
Provided by ACWA-JPIA.
Authorize the General Manager to Sign Contracts and
Agreements as Needed for Insurance Program Services on Behalf
of the District with the ACWA-JPIA.
Appoint a Representative to the ACWA-JPIA Board, and an
Alternate.
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4381 consenting to enter the
joint protection programs of the Association of the California
Water Agencies/Joint Powers Insurance Authority (ACWA-JPIA) and
hereby elects to join the Liability, Property, and Workers’
Compensation Programs sponsored by the Authority.
That the Board adopt Resolution No. 4382 authorizing application to
the Director of Industrial Relations, State of California for a
certificate of consent to self-insure workers’ compensation
liabilities.
AGENDA ITEM 7a
That the Board approve modification to the District’s Purchasing
Manual Section 7.2.8 “Board Authorized Purchases Exceeding the
General Manager’s Authority” to include insurance services provided
by ACWA-JPIA.
That the Board authorize the General Manager to sign contracts and
agreements as needed for insurance program services on behalf of
the District with the ACWA-JPIA.
That the Board appoint a representative to the ACWA-JPIA Board, and
an alternate.
COMMITTEE ACTION:
Please see Attachment A
PURPOSE:
To request the Board change the District’s insurance carrier from
the Special District Risk Management Authority (SDRMA) to the
Association of the California Water Agencies/Joint Powers Insurance
Authority (ACWA-JPIA) for Liability, Property, and Workers’
Compensation Programs.
ANALYSIS:
The Otay Water District (District) has been a member of the SDRMA
insurance authority since FY03. The District currently utilizes
SDRMA to provide liability, property, and workers’ compensation
insurance. From time to time, the District has performed market
rate comparisons to ensure our annual contributions charged by
SDRMA are reasonable and competitive, the most recent review was
conducted in 2014.
Starting in FY19, the District’s annual contributions to SDRMA for
insurance have significantly increased for many reasons.
Primarily, the reinsurer market is experiencing major losses which
are then passed on to insurance pools in the form of annual premium
increases. Some of these major losses are due to massive
wildfires, floods, and personal liability issues around child
safety.
Other factors that affect SDRMA include operating expenses,
District’s payroll, insured valuations, and loss history.
Below is a table that summarizes the District’s annual insurance
premiums paid to SDRMA since FY18 including the proposed quote for
FY21.
SDRMA
FY18 FY19 % FY20 % FY21 %
Property &
Liability $ 650,906 $ 775,520 19.1% $ 908,948 17.2% $ 1,454,317 60.0%
Workers'
Compensation $ 319,226 $ 405,167 26.9% $ 608,624 50.2% $ 563,212 -7.5%
In response to the SDRMA FY21 proposed rate increases, District
staff submitted applications to three (3) California Joint Powers
Insurance Authorities (JPIAs) and directly to an insurance carrier
through a broker that covers pools and large governmental agencies.
The insurance carrier/broker was not able to provide a quote due to
conflicts of interest with SDRMA and other pools unless the
District would first officially withdraw from SDRMA.
In order to obtain quotations, SDRMA requires its members to first
submit a provisional notice of withdrawal. The provisional notice
was submitted to SDRMA prior to obtaining competitive quotes.
According to the SDRMA program rules, we have until June 1, 2020 to
rescind the notice and remain in their JPA or we may notify SDRMA
of our final decision to withdraw from SDRMA’s insurance programs.
If no action is taken by June 1, 2020, by default SDRMA will renew
the policy. Due to the timing of the District’s Board meeting,
District staff requested and obtained an extension from SDRMA for
filing the final notice of withdrawal to June 4, 2020.
The District received preliminary quotations/proposals from ACWA-
JPIA, Public Entity Risk Management Authority (PERMA), and Golden
State Risk Management Authority (GSRMA).
PERMA and GSRMA FY21 quotes for property and liability (P&L) are
within $15,000 of SDRMA’s FY21 quote. However, workers’
compensation (WC) coverage under PERMA and GSRMA is nearly $350,000
higher than SDRMA. GSRMA requires members to participate in both
P&L and WC programs, while PERMA allows members to split
participation. These options were not financially beneficial to
the District and therefore staff did not pursue membership with
those JPAs.
ACWA-JPIA proposed an overall quotation that is $485,020 less than
the FY21 program renewal amount proposed by SDRMA. The quotations
on the following page include a 5% multi-program discount for
participating in both the P&L and WC programs.
FY 21 Quotations ACWA-JPIA SDRMA Savings (1)
Property & Liability (P&L) $1,103,925 $1,454,317 ($350,392)
Workers' Compensation (WC) $ 428,584 $ 563,212 ($134,628)
TOTAL $1,532,509 $2,017,529 ($485,020)
If the District decided to split coverage and move only P&L to
ACWA-JPIA it would lose $31,000 in SDRMA multi-program discounts
and lose an additional $30,000 in ACWA-JPIA multi-program discounts
for not participating in its WC program. This is another reason to
move both insurance programs to ACWA-JPIA.
Staff compared the proposal to the District’s current insurance
programs with SDRMA. The programs offered by ACWA-JPIA are
equivalent to SDRMA and are summarized in Attachment J.
ACWA-JPIA Background
ACWA-JPIA evolved in 1979 after most commercial insurers abandoned
the public entity market. As a result, public entities formed risk
pools to reduce and stabilize long-term insurance costs and ensure
access to coverage and service critical for local government
functions such as the acquisition, treatment, and delivery of
water.
As a California special district, ACWA-JPIA operates as a public
entity. They are member owned, member governed, and member driven.
The JPIA only serves water agencies and is currently made up of
over 360 member agencies.
Included with the insurance coverage is a full-service claims
management function and risk management function. ACWA-JPIA’s risk
management staff partners with member agencies to cost effectively
control exposures to potential losses in all insured programs.
This includes on-site assessments, specialized training, and best
practice recommendations.
Regarding claims management, ACWA-JPIA employs experienced in-house
claims staff and state-certified examiners experienced with JPIA
member agencies. ACWA-JPIA utilizes statewide claims resources
including investigators, adjusters, and specialized legal counsel.
These resources conduct aggressive investigations and provide
defense against questionable claims.
Terms of the Proposal
ACWA-JPIA proposed a quote that provides equivalent program limits
to what the District currently has with SDRMA. The minimum program
commitment is three (3) years. Overall, the programs and limits
are consistent with the coverage provided to existing ACWA-JPIA
members. The list below includes a few differences between the
District’s existing policy with SDRMA versus the ACWA-JPIA
proposal. With a change to ACWA-JPIA the District will experience:
1.An increased limit for inverse condemnation from $1M to $5M
pool coverage and up to $55M coverage through reinsurance.
Inverse condemnation coverage protects members against private
owner claims that arise from the operation or failure of a
public facility that damages private property.
2.An increase in accidental pollution liability limits from $2M
to $55M.
3.A reduced limit for employer bodily injury from $5M to $4M;
this is a component of WC.
4.Under ACWA-JPIA, property and WC insurance will continue to
renew on July 1st of each year. These rates will be available
during the District’s annual budget process.
However, general liability (GL) insurance renews on Oct 1st of
each year, and the final renewal rate is usually not available
until August or September. For budgetary purposes, ACWA-JPIA
will provide their best estimate for GL rates in April, but
this amount could be different than the final rate notice in
August or September.
5.In lieu of a deductible, ACWA-JPIA utilizes a Retrospective
Allocation Point (RAP). The RAP is the portion of the claim
that is allocated directly back to a specific member and not
the shared pool. Any amount over the RAP is then allocated to
the pool and then reallocated to its members based on various
factors. ACWA-JPIA uses a rolling four-year look back to
review closed claims to determine the RAP allocation for each
member agency. According to ACWA-JPIA, the annual insurance
payments to the pool have been actuarially determined, are
historically adequate to cover the RAP, and rarely result in a
bill or request to the member to “true up” and pay a balance
after the four-year look back. According to ACWA-JPIA this
method usually results in a refund to member agencies or a
credit to be used in future years.
Unlike today, the District will not be required to make annual
deductible payments beyond the annual insurance payments.
Currently, the District has a $50,000 deductible for GL and
$1,000 deductible for property coverage. With ACWA-JPIA, the
RAP will be similar, $50,000 for GL and $1,000 for property.
Under ACWA-JPIA there is also a $15,000 RAP for WC. Currently
the District has a $0 deductible for WC. The annual payment
to ACWA-JPIA is set at a level to cover the RAP and premiums.
Even with the RAP, the annual WC savings with ACWA-JPIA versus
SDRMA is nearly $135,000.
ACWA-JPIA Board Representation
ACWA-JPIA is member governed and the ACWA-JPIA Board of Directors
includes a representative from each member’s Board. The JPIA Board
elects an eight-member Executive Committee to work on its behalf
with the JPIA management and staff.
Member agencies are required to select a representative and an
alternate to sit on the ACWA-JPIA Board. Full Board meetings are
usually held twice a year and a representative from the District
should attend at least one Board meeting annually. These meetings
are in conjunction with the ACWA conference.
Duties of the Board can be found under Article 8 — Powers Of The
Board Of Directors in the Joint Powers Agreement (Attachment E).
The Board of Directors of the Authority shall have the following
powers and functions:
(a) The Board shall elect from its voting members pursuant to
Article 10 of this Agreement an Executive Committee.
(b) The Board may review all acts of the Executive Committee,
and shall have the power to modify and/or reverse any decision
or action of the Executive Committee upon a majority vote of
the voting Directors present at any Duly Constituted Board
Meeting.
(c) The Board shall review, modify if necessary, and approve
the annual operating budget of the Authority, prepared by the
Executive Committee pursuant to Article 11 (d).
(d) The Board shall receive and review periodic accountings of
all funds under Articles 17 and 18 of this Agreement.
(e) The Board shall have the power to conduct on behalf of the
Authority all business of the Authority, including that
assigned to the Executive Committee, which the Authority may
conduct under the provisions hereof and pursuant to law.
(f) The Board shall have such other powers and functions as
are provided for in this Agreement or in the Bylaws.
Staff is recommending the District Board appoint a representative
and an alternate to the ACWA-JPIA Board.
The primary representative must be a member of the District’s
Governing Board, the alternate shall be an officer, a member of the
Governing Board, or an employee of the District.
Each Director or alternate of the ACWA-JPIA Board shall serve until
a successor is appointed. Each Director or alternate shall serve
at the pleasure of the member by which he or she has been
appointed.
Purchasing Manual
Each year, the District renews its participation in an insurance
Joint Powers Authority, whether with SDRMA or another JPA. The
renewal process includes updating the insured property list,
reporting payroll changes, and possibly making policy changes to
ensure the District is adequately covered.
Members must make a three-year commitment when joining ACWA-JPIA.
In order to facilitate the administration of the program, staff is
recommending the District’s Purchasing Manual be revised to include
ACWA-JPIA as a noted addition to the General Manager’s purchasing
authority.
According to the District’s Code of Ordinances, Chapter 4,
paragraph 4.01, “With the exception of real property, all purchases
shall be made in conformity with the District Purchasing Manual
promulgated by the General Manager and approved by the Board.”
Currently, item 7 under Section 7.2.8 of the Purchasing Manual
refers only to SDRMA as the designated insurance service provider.
Staff is recommending that the Purchasing Manual be broadened to
include all insurance services including ACWA-JPIA, or other Board
approved insurance providers.
Purchasing Manual Current Language
7.2.8 Board Authorized Purchases Exceeding the General Manager’s
Authority:
a. The General Manager or his/her Designee is authorized to exceed
his/her delegated purchasing authority under Section 2 of the Code
of Ordinance and purchase the following goods and services without
Board approval so long as the overall Board Approved District
Budget is not exceeded:
1.Temporary labor services
2.Fuel, gasoline and diesel
3.Sewage Transportation and Processing
4.Water Meters
5.Service and maintenance of the District’s Board adopted sole
source Enterprise Resource Planning (ERP) System, Tyler Eden
6.Service and maintenance of the District’s Board adopted sole
source Geographic Information System, Environmental Systems
Research Institute (ESRI)/GIS
7.Medical Service Benefits, Property Liability Insurance and other
products and services as provided by Special District Risk
Management Authority (SDRMA)
8.Regulatory Fees
9.Service and maintenance of the District’s Board adopted sole
source Cityworks® work and asset management system.
10.Service and maintenance of other Board adopted sole and single
source enterprise systems, infrastructure and services.
11.Mount Miguel Antenna Site Lease Agreement and Addendums
Purchasing Policy Revision Bolded (Item #7 only)
7.Health Benefits, Property, Liability Insurance, Workers’
Compensation and other products and services as provided by Special
District Risk Management Authority (SDRMA), Association of
California Water Agencies – Joint Powers Insurance Authority (ACWA-
JPIA) or any other Board approved provider.
Next Steps
On May 1, 2020, the ACWA-JPIA held an Executive Committee meeting
and approved the District’s application for membership to
participate in its insurance programs.
In order to complete the membership process, the following steps
will need to be completed:
1.The Board adopt Resolution No. 4381 consenting to enter the
joint protection programs of the Association of the California
Water Agencies/Joint Powers Insurance Authority and elects to
join the Liability, Property, and Workers’ Compensation
Programs sponsored by the Authority.
2.The Board adopt Resolution No. 4382 authorizing application to
the Director of Industrial Relations, State of California for
a certificate of consent to self-insure workers’ compensation
liabilities.
3.The Board approve modification to the District’s Purchasing
Manual Section 7.2.8 “Board Authorized Purchases Exceeding the
General Manager’s Authority” to include insurance services
provided by ACWA-JPIA.
4.The Board authorize the General Manager to sign contracts and
agreements as needed for insurance program services on behalf
of the District with the ACWA-JPIA.
5.The Board appoint a representative to the ACWA-JPIA Board, and
an alternate.
6.The Board Secretary sign and certify Form A-2 "Certificate of
Consent to Self-Insure Workers' Compensation Liabilities and
Representatives of Agency are Authorized to Execute any and
all Documents Required for such Application."
7.Staff to notify SDRMA of withdrawal from the JPA Insurance
Authority.
Additionally, District staff will meet with ACWA-JPIA to coordinate
the claims management process to ensure a smooth transition is in
place as of July 1, 2020.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
If the District maintained its current provider for property,
liability, workers compensation, the estimated annual premiums would
be $2,017,529. With the proposed change, the estimated annual
premiums will be $1,532,509. This is an overall 34% savings and
results in an approximate savings of $485,020 in FY21. Funding for
these expenditures is budgeted in the FY21 Operating Budget and is
sufficient to cover costs.
STRATEGIC GOAL:
Demonstrate financial health through formalized policies, prudent
investing, and efficient operations.
LEGAL IMPACT:
None.
Attachments: A) Committee Action
B) Resolution No. 4381
C)Resolution No. 4382 (Form A-2, Page 5)
D)ACWA-JPIA Proposal
E)ACWA-JPIA Agreement
F)ACWA-JPIA Entity Description, Introducing Your
Best Protection
G)ACWA-JPIA Memorandum of Liability Coverage
H)ACWA-JPIA APIP Binder of Insurance
I)ACWA-JPIA Director Selection Form
J)Insurance Limit Comparison
K)Purchasing Manual – Redline Version
L) Purchasing Manual – Proposed Version
M) PowerPoint
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4381 Consenting to Enter the Joint
Protection Programs of the Association of the California
Water Agencies/Joint Powers Insurance Authority (ACWA-JPIA)
and Hereby Elects to Join the Liability, Property, and
Workers’ Compensation Programs Sponsored by the Authority.
Adopt Resolution No. 4382 Authorizing Application to the
Director of Industrial Relations, State of California for a
Certificate of Consent to Self-Insure Workers’ Compensation
Liabilities
Approve Modification to the District’s Purchasing Manual
Section 7.2.8 “Board Authorized Purchases Exceeding the
General Manager’s Authority” to Include Insurance Services
Provided by ACWA-JPIA.
Authorize the General Manager to Sign Contracts and
Agreements as Needed for Insurance Program Services on
Behalf of the District with the ACWA-JPIA.
Appoint a Representative to the ACWA-JPIA Board, and an
Alternate.
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on May 18, 2020 and the following comments were made:
•Staff is requesting that the Board adopt Resolution No. 4381
consenting the District to enter the joint protection programs
of the Association of California Water Agencies/Joint Powers
Insurance Authority (ACWA-JPIA) and elect to join the
liability, property, and workers’ compensation programs
sponsored by ACWA-JPIA; adopt Resolution No. 4382 authorizing
application to the Director of Industrial Relations, State of
California for a certificate of consent to self-insure workers’
compensation liabilities; approve modification to the
District’s Purchasing Manual section 7.2.8, Board Authorized
Purchases Exceeding the General Manager’s Authority, to include
insurance services provided by ACWA-JPIA; authorize the General
Manager to sign contracts and agreements as needed for
insurance program services on behalf of the District with the
ACWA-JPIA; and appoint a representative to the ACWA-JPIA board
and an alternate.
•Information was presented from the staff report.
•Staff introduced Ms. Karen Thesing, Director of Insurance
Services for ACWA-JPIA, who assisted the District with the
application process. Ms. Thesing indicated in response to an
inquiry from the Committee that the ACWA-JPIA is not covered by
the Department of Insurance. She explained that none of the
State of California pools qualify because a JPIA is not a
commercial entity. ACWA-JPIA is a public sector organization
similar to SDRMA.
•Ms. Thesing stated in response to another inquiry from the
Committee that ACWA-JPIA covers claims through a deposit
premium which they collect from their 371 members annually
based on the member’s payroll, claims experience and a risk
assessment or RAP (Retrospective Allocation Point) [please
reference page 5 of the staff report for additional details].
Ms. Thesing indicated that the credit rating for the reinsurers
that ACWA-JPIA utilizes is A to AAA.
•Staff indicated they thought the District had reached a peak
last year when SDRMA increased its rate 20% and was
anticipating rates would stay flat or drop because the
District’s loss ratio had been going down. With SDRMA
proposing a 50+% rate increase for FY 2021, staff is finding
that it is difficult to estimate SDRMA’s future rates because
of the volatility of their rates over the last three years.
•ACWA-JPIA’s rates have not risen in the last 10 years and, in
fact, their rates have dropped. Some of the reasons that allow
ACWA-JPIA to keep rates stable/flat is their size (they are one
of the largest pools in the State of California which spreads
costs), they are a homogeneous organization (they only serve
water and wastewater agencies), and their loss experience has
been negligible. Over the last 12 years, there has been two
claims that exceeded $1 million.
•Additionally, ACWA-JPIA provides members a dedicated Risk
Advisor who trains and assists in determining areas that can be
improved to lower risk. They also provide upfront tools to
keep losses/severity of losses low and they have their own
claims staff.
•It was indicated, in response to an inquiry from the Committee,
that Helix WD, Vista Irrigation District, Sweetwater Authority
and other local agencies are members of the ACWA-JPIA pool. It
was noted that the Otay WD’s loss history is very similar to
these agencies.
•It was discussed the 371 members of ACWA-JPIA are water and
sewer wholesalers and retailers. Some member agencies have
recreational activities (lakes, etc.). ACWA-JPIA has very
aggressive risk management and underwriting practices in place
for these members. They noted that they have denied one such
application in the last four years from a Community Service
District.
•In response to another question from the Committee, Ms. Thesing
indicated that due to the COVID-19 Pandemic, there could be
impact to their reinsurance treaties and members may see
communicable disease coverage eliminated. ACWA-JPIA has also
had some losses over the last three (3) years from the Monte
Vista, Paradise and Redding fires and they have been educating
their members about fire resiliency, mitigation and defensible
space. These actions have been shared with the reinsurers and
they have been positive with the actions ACWA-JPIA has taken,
along with the actions Counties and States have taken.
Property rates, thus, have not been impacted at this time.
•The Committee inquired what other entities did the District
considered for its insurance needs. Staff indicated that they
requested a quote from Public Entity Risk Management Authority
(PERMA) and the Golden State Risk Management Authority (GSRMA).
Both did not offer a quote that was competitive enough for the
District to leave SDRMA [please reference page 3 of the staff
report for the details concerning their quotes.] Staff also
requested a quote directly from the reinsurers through the
California State Association of Counties (CSAC). However, they
were not able to provide a quote due to a conflict of interest
with SDRMA and other pools unless the District officially
withdrew from SDRMA.
•The Committee recommended that Director Thompson be appointed
as the primary representative to the ACWA-JPIA board and stated
they would defer to the full board the affirmation of Director
Thompson’s appointment and to select the alternate
representative. It was noted that the primary representative
must be a member of the District’s board and the alternate may
be either a board or staff member of the agency. ACWA-JPIA’s
board meets twice a year (May and November). The board’s key
functions are to approve the financial audit, the budget for
the upcoming fiscal year and the ratification of new members.
Following the discussion, the Committee supported staff’s
recommendation and presentation to the full board as an action item.
RESOLUTION NO. 4381
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT
CONSENTING TO ENTER THE JOINT PROTECTION
PROGRAMS OF THE ASSOCIATION OF CALIFORNIA
WATER AGENCIES/JOINT POWERS INSURANCE AUTHORITY
WHEREAS, pursuant to the provisions of Section 990, 990.4, 990.8, and 6500 of the
Government Code, this District wishes to enter into an agreement with various other districts
entitled "Joint Powers Agreement: Creating the Association of California Water
Agencies/Joint Powers Insurance Authority" (the Authority), for the purpose of participating in
the Joint Powers Insurance Authority created thereby, which since its formation has provided
for and administered joint protection programs as more fully set forth in said agreement; and
WHEREAS, said joint protection programs offer significant advantages to this District
in terms of cost, liability protection, property protection, workers’ compensation protection,
and services, and entering such programs, on the conditions hereinafter set forth, appears to
be in the best interest of the District.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water
District:
Section 1. That the Otay Water District hereby consents pursuant to the above-
mentioned Joint Powers Agreement, and the resolutions and policies enacted in
implementation of such Agreement, to enter said joint protection programs.
Section 2. That the District hereby elects to join the Liability, Property, and Workers’
Compensation Programs sponsored by the Authority.
Section 3. That the District hereby selects $__50,000___as its Retrospective
Allocation Point (RAP) for the first partial year of participation under the Authority's cost
allocation formula for liability exclusive of Dam Failure Liability.
Section 4. That the District hereby selects $__15,000__ as its Retrospective
Allocation Point (RAP) for the first partial year of participation under the Authority’s cost
allocation formula for workers’ compensation liabilities.
Section 5. That the Treasurer of this District is hereby authorized to pay to the
ACWA/Joint Powers Insurance Authority its first deposit premium.
Section 6. That the Secretary of the Board of Directors of this District is directed to
certify a copy of this resolution and to forward the same resolution, the signed Joint Powers
Agreement, and the JPIA deposit premium payment promptly by mail to the Association of
California Water Agencies/Joint Powers Insurance Authority, P.O. Box 619082, Roseville,
California, 95661, at which time coverage will commence the 1st day of July, 2020.
PASSED, APPROVED, AND ADOPTED this 3rd day of June 2020 by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
_______________________________ ______________________________
Secretary President
Form: A-2 (1-2016) | Page 5
RESOLUTION NO.: __________ DATED: __________________________
A RESOLUTION AUTHORIZING APPLICATION TO THE DIRECTOR OF INDUSTRIAL RELATIONS, STATE OF CALIFORNIA FOR A CERTIFICATE OF CONSENT TO SELF-INSURE WORKERS' COMPENSATION LIABILITIES
At a meeting of the _____________________________________________________
(Enter Name of the Board)
of the ________________________________________________________________
(Enter Name of Public Agency, District, Etc.)
a ______________________________________ organized and existing under the
(Enter Type of Agency, i.e., County, City, School District, etc.)
laws of the State of California, held on the _______ day of ______________, 20___,
the following resolution was adopted:
RESOLVED, that the above named public agency is authorized and empowered to
make application to the Director of Industrial Relations, State of California, for a Certificate of Consent to Self-Insure workers' compensation liabilities and representatives of Agency are authorized to execute any and all documents required for such application.
IN WITNESS WHEREOF: I HAVE SIGNED AND AFFIXED THE AGENCY SEAL.
X_____________________________________________ DATE: __________________________________ SIGNED: Board Secretary or Chair
______________________________________________ Printed Name
______________________________________________ Title Affix Seal Here ______________________________________________ Agency Name
z
Coverage Proposal
OTAY WATER DISTRICT
April 3, 2020
Page 1
Liability Coverage Quotation
LIABILITY PROGRAM LIMIT ................................... $55,000,000 *
SUB-LIMITS:
$ 5,000,000 - Terrorism
$30,000,000 - Subsidence
$30,000,000 - Lead
$35,000,000 - Mold
INCLUDES:
Bodily Injury
Errors & Omissions
Public Officials Errors & Omissions Liability
Accidental Pollution Liability
Property Damage
Employment Practices Liability
Inverse Condemnation
Automobile Liability
*Coverage afforded for drones that follow FAA Rules and Regulations Part 107 of Title XIV.
Retrospective Allocation Point (RAP) .................................................................... $50,000
10/1/19 TO 10/1/20
ESTIMATED DEPOSIT PREMIUM ...................................................................... $732,692
PREMIUM WITH MULTIPLE PROGRAM DISCOUNT (5%) ................................. $698,058
Deposit premium based on estimated annual payroll of $15,324,800.
CYBER AND TECHNOLOGY LIABILITY COVERAGE
Included with Liability Program
Limit of Coverage .................................................................... $3,000,000 per claim
........................................................................................ $5,000,000 policy aggregate
INCLUDES RETENTION SCHEDULE
Third Party Liability Coverage Revenue:
First Party Coverage <$5,000,000....................................... $10,000
$5,000,000 to $25,000,000 ................ $25,000
>$25,000,000..................................... $50,000
Page 2
Property Coverage Quotation
PROPERTY PROGRAM LIMIT .................................................... $500,000,000 *
*subject to submission of Property Program application, including statement of values
$ 100,000,000
$ 500,000 **
$ 50,000,000
$ 25,000,000
$ 25,000,000
$ 10,000,000
$ 2,500,000 **
$ 2,500,000
$ 500,000
$ 100,000 **
SUB-LIMITS:
Accidental Mechanical Breakdown
Business Interruption
Extra Expense
Off Premises Service Interruption
Flood – Program Aggregate
Zones A or V
Earthquake – Program Aggregate
Money & Securities
Accidental Contamination – Program Aggregate
Employee Dishonesty
**Additional limits available, if scheduled
TOTAL INSURABLE VALUES:
Buildings & Fixed Equipment & Contents ..................................................... $405,309,879
Mobile Equipment ............................................................................................. $1,695,243
Vehicles (62 units) ............................................................................................ $2,798,478
Coverage afforded for drones that follow FAA Rules and Regulations Part 107 of Title XIV; excludes
damage sustained while in flight
DEDUCTIBLES: (higher deductible options available)
Buildings, Fixed Equipment & Contents ................................................................... $1,000
Mobile Equipment .................................................................................................... $1,000
Vehicles - physical damage...................................................................................... $1,000
Accidental Mechanical Breakdown
Turbine Units & associated Equipment,
Electrical Generators, or Electrical Power Distribution ................................. $50,000
All other objects ........................................................................................... $25,000
Service Interruption ..........................................................................24 Hour Waiting Period
Earthquake ....................................................................... 5%, subject to minimum $75,000
Flood- All Zones .................................................................................................... $100,000
7/1/19 TO 7/1/20 ESTIMATED DEPOSIT PREMIUM ............................................ $349,275 *** PREMIUM WITH MULTIPLE PROGRAM DISCOUNT (5%) ................................. $331,811 ***
***rates subject to change 7/1/2020
Page 3
Excess Crime Coverage Quotation
GROUP PURCHASE PROGRAM
Limit of Coverage ............................................................................................. $1,000,000 * INCLUDES
Public Employee Dishonesty
Forgery or Alteration Computer Fraud Faithful Performance of Duty
Deductible ................................................................................................................ $1,000
ESTIMATED ANNUAL PREMIUM 7/1/19 TO 7/1/20 ............................................... $1,200 **
*Higher limits available
**Subject to carrier’s review of completed application
Page 4
Workers’ Compensation &
Employers Liability Coverage Quotation
WORKERS’ COMPENSATION
Limit of Coverage ................................................................................ Up to Statutory Limits
EMPLOYERS’ LIABILITY
Bodily Injury by Accident ................................................................................. $ 4,000,000
Bodily Injury by Disease - each employee ....................................................... $ 4,000,000
Bodily Injury by Disease - policy limit .............................................................. $ 4,000,000
Economy of Size Discount – 12% $ (31,387)
Discounted Premium $ 230,174
Experience Modification Factor 1.96
Modified Premium $ 451,141
JPIA Multiple Program Discount (5%) $ (22,557)
Estimated 7/1/19-20 Deposit Premium $ 428,584
Minimum Retrospective Attachment Point (RAP) - $15,000
*rates subject to change 7/1/2020
Deposit premium is payable on a quarterly reporting basis. No up-front deposit is required.
Class Code Classification Estimated Annual Payroll Rate 7/1/2019* Estimated Annual Deposit
7520 Waterworks Operations $ 3,002,600 .0451 $ 135,417
7580 Sanitation District $ 658,500 .0303 $ 19,953
8810 Clerical $ 8,394,900 .0086 $ 33,996
8742 Salesperson-Meter Readers $ 3,268,800 .0104 $ 72,196 Total $ 15,324,800 $ 261,561
Page 5
Premium Summary
Program Estimated Annual Premium
Estimated Annual
Premium with Multiple
Program Discount (3)
Liability Coverage
$ 732,692 $696,058
Property Coverage
$349,275 $331,811
Workers’ Compensation Coverage $ 451,141 $428,584
Excess Crime $ 1,200 $ 1,200
Total Estimated Annual Premium
$ 1,534,308 $1,457,653
CONDITIONS:
1. Participation in pooled programs requires an initial three-year commitment;
2. Favorable Risk Assessment, including:
a. Complete Applications for Property Program and Excess Crime Program
b. Detailed loss history – Liability, Property, Crime & Workers Compensation
c. Detailed Statement of Values
3. Approval by ACWA JPIA Executive Committee;
4. Board to adopt resolution to join ACWA JPIA pooled programs;
5. ACWA Membership
Joint Powers Agreement
Creating The
Association of California Water Agencies
Joint Powers Insurance Authority
Adopted May 9, 1979
Revised on May 7, 2012
Joint Powers Agreement — Table of Contents
Recitals ........................................................................................................................... 1
Article 1 — Definitions ..................................................................................................... 2
Article 2 — Purposes ....................................................................................................... 4
Article 3 — Parties To Agreement ................................................................................... 4
Article 4 — Term Of Agreement ...................................................................................... 4
Article 5 — Creation Of Authority .................................................................................... 4
Article 6 — Powers Of Authority ...................................................................................... 5
Article 7 — Board Of Directors ........................................................................................ 5
Article 8 — Powers Of The Board Of Directors ............................................................... 6
Article 9 — Meetings Of The Board Of Directors ............................................................. 6
Article 10 — Executive Committee .................................................................................. 7
Article 11 — Powers Of The Executive Committee ......................................................... 7
Article 12 — Meetings Of The Executive Committee....................................................... 8
Article 13 — Officers Of The Authority ............................................................................ 8
Article 14 — Standing Committees.................................................................................. 9
Article 15 — Insurance Coverage ................................................................................... 9
Article 16 —Implementation Of The Joint Protection Program ........................................ 9
Article 17 — Accounts And Records ............................................................................. 10
Article 18 — Responsibility For Monies ......................................................................... 11
Article 19 — Responsibilities Of The Authority .............................................................. 11
Article 20 — Responsibilities Of Members .................................................................... 12
Article 21 — New Members ........................................................................................... 13
Article 22 — Withdrawal ................................................................................................ 13
Article 23 — Cancellation Of Membership Or Participation ........................................... 14
Article 24 — Effect Of Withdrawal Or Cancellation ....................................................... 15
Article 25 — Termination And Distribution ..................................................................... 15
Article 26 — Provision For Bylaws And Manuals .......................................................... 16
Article 27 — Notices ...................................................................................................... 16
Article 28 — Amendment .............................................................................................. 16
Article 29 — Prohibition Against Assignment ................................................................ 16
Article 30 — Agreement Complete ................................................................................ 17
JPIA Agreement Revised May 7, 2012 Page 1
Joint Powers Agreement
Creating The
Association Of California Water Agencies
Joint Powers Insurance Authority
THIS AGREEMENT is made and entered into in the County of Placer, State of
California, by and among the water districts and agencies (hereinafter "Districts") and other public entities (hereinafter "Friends of ACWA") organized and existing under the laws of the State of California, which are parties signatory to this Agreement and listed in Appendix "A", which is attached hereto and made a part
hereof. Said Districts and Friends of ACWA are sometimes referred to herein as
"parties" or "Members".
Recitals
WHEREAS, California Government Code Section 6500 et seq. provides that two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and
WHEREAS, California Government Code Section 990.4 provides that a local
public entity may self-insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus lines broker, or any combination of these; and
WHEREAS, California Government Code Section 990.8 provides that two or
more local entities may, by a joint powers agreement, provide insurance or
reinsurance for any purpose by any one or more of the methods specified in Government Code Section 990.4; and
WHEREAS, the parties to this Agreement desire to join together for the purpose of establishing pools for self-insured losses and purchasing excess insurance or
reinsurance and administrative services in connection with joint protection
programs for said parties; and
WHEREAS, it appears economically feasible and practical for the parties to this Agreement to do so;
NOW THEREFORE, for and in consideration of all of the mutual benefits,
covenants and agreements contained herein, the parties hereto agree as follows:
JPIA Agreement Revised May 7, 2012 Page 2
Article 1 — Definitions
The following definitions shall apply to the provisions of this Agreement:
(a) "Auditor/Controller" shall mean that person, designated by the Executive
Committee who is required to draw, or cause to be drawn, checks, warrants,
and electronic payments on behalf of the Authority, and to provide for an annual audit.
(b) "Authority" shall mean the Association of California Water Agencies Joint Powers Insurance Authority (ACWA/JPIA) created by this Agreement.
(c) "Board of Directors" or "Board" shall mean the governing body of the
Authority.
(d) “Chief Executive Officer” shall mean that employee of the Authority who is so appointed by the Executive Committee and ratified by the Board of Directors at the next meeting, unless approved unanimously by the
Executive Committee.
(e) "Claims" shall mean demands made against Members which are within the Authority's joint protection programs as developed by the Board of Directors.
(f) "Deposit Premium" shall mean the amount determined by the Executive Committee annually, as necessary to fund each joint protection program of
the Authority.
(g) “Director” shall mean that individual selected by the Member, from its governing body, to represent the Member on the ACWA/JPIA Board of Directors.
(h) "District" shall mean those entities of local government empowered by law
to replenish ground waters, distribute, control, treat, develop, acquire, use,
store or supply water, or empowered by laws to protect, drain or reclaim lands within the State of California, including but not limited to irrigation districts, California water districts, municipal water districts, county water districts, municipal utility districts, and drainage, water replenishment,
reclamation districts, flood control districts, conservation districts, sanitation
districts, sanitary districts, special act districts, cities, and joint powers authorities which are signatories to this Agreement and are members of the Association of California Water Agencies (ACWA), or are affiliated with ACWA based on their meeting the criteria currently specified by ACWA for
ACWA Affiliates – “Friends of ACWA”.
(i) "Duly Constituted Board Meeting" shall mean any Board of Directors meeting noticed and held in the required manner and at which a Quorum was determined to be present at the beginning of the meeting.
JPIA Agreement Revised May 7, 2012 Page 3
(j) "Excess Insurance" shall mean that insurance or reinsurance which may be purchased on behalf of the Authority to protect the funds of the Members.
(k) "Executive Committee" shall mean the Executive Committee of the Board
of Directors of the Authority.
(l) "Finance and Audit Committee" shall mean the committee of the Authority composed of financial staff of districts appointed by the Board President and ratified by their Districts.
(m) "Fiscal Year" shall mean that period of twelve (12) months which is
established as the fiscal year of the Authority.
(n) “Friends of ACWA” shall mean those public agencies that do not meet the definition of “District” who are members of the ACWA or are affiliated with ACWA based on their meeting the criteria currently specified by ACWA for
ACWA Affiliates – “Friends of ACWA,” and which are also signatories to this
Agreement.
(o) "Insurance" shall mean and include a joint protection program, self-insurance through a funded program, and/or any commercial insurance or reinsurance contract.
(p) "Member" shall mean either a "Friend of ACWA" or a "District" which is a
signatory to this Agreement.
(q) "Policy Year" shall mean a period of time, usually twelve (12) months, determined by the Executive Committee into which each joint protection program is segregated for ease in determining deposit premiums, incurred
losses, and retrospective premium calculations.
(r) "Retrospective Premium Adjustment" shall include the terms "Retrospective Premium" and "Retrospective Adjustment" and shall mean the amount determined by the cost allocation plans and formulas adopted from time to time by the Board as a Member's share of losses, expenses,
and contribution to the catastrophe fund or other reserve.
(s) “Secretary” shall mean the person appointed by the Executive Committee to record or cause to be recorded, and keep or cause to be kept, at the principal executive office or such other place as the Executive Committee may order, a book of minutes of actions taken at all meetings of the Board of
Directors and Executive Committee.
(t) “Treasurer” shall mean the person appointed by the Executive Committee to keep and maintain, or cause to be kept and maintained, adequate and correct financial records of the Authority.
JPIA Agreement Revised May 7, 2012 Page 4
Article 2 — Purposes
This Agreement is entered into by Members pursuant to the provisions of California Government Code sections 990, 990.4, 990.8 and 6500 et seq., in
order to provide comprehensive and economical public liability, workers'
compensation, unemployment, health, accident and/or dental, and property coverage, or coverage for other risks to which the Board of Directors may agree.
Additional purposes are to reduce the amount and frequency of losses, and to decrease the cost incurred by Members in the handling and litigation of claims.
These purposes shall be accomplished through the exercise of the powers of
such Members jointly in the creation of a separate entity, the Association of California Water Agencies Joint Powers Insurance Authority (the Authority), to administer joint protection programs wherein Districts and Friends of ACWA will separately pool their losses and claims, and jointly purchase excess insurance
and/or reinsurance and administrative and other services, including claims
adjusting, data processing, risk management consulting, loss prevention, legal, and other related services.
It is also the purpose of this Agreement to provide, to the extent permitted by law, for the inclusion at a subsequent date of such additional Members organized and
existing under the laws of the State of California as may desire to become parties
to the Agreement and members of the Authority, subject to approval by the Board of Directors.
Article 3 — Parties To Agreement
Each party to this Agreement certifies that it intends to and does contract with all other parties who are signatories to this Agreement and, in addition, with such other parties as may later be added as parties to and signatories to this
Agreement pursuant to Article 21. Each party to this Agreement also certifies that the deletion of any party from this Agreement, pursuant to Article 22 or Article 23, shall not affect this Agreement or such party's intent to contract as described above with the other parties to the Agreement then remaining.
Article 4 — Term Of Agreement
This Agreement became effective on the date of execution hereof by the last of
sixty (60) Districts with a combined 1978/79 liability policy premium of $2 million,
and it shall continue until and unless terminated as hereinafter provided.
Article 5 — Creation Of Authority
Pursuant to Section 6500 et seq. of the California Government Code, there is hereby created a public entity separate and apart from the parties hereto, to be known as the Association of California Water Agencies Joint Powers Insurance Authority. Pursuant to Government Code Section 6508.1, the debts, liabilities and
JPIA Agreement Revised May 7, 2012 Page 5
obligations of the Authority shall not constitute debts, liabilities or obligations of any party to this Agreement or of any District or Friend of ACWA.
Article 6 — Powers Of Authority
(a) The Authority shall have the powers common to Members and is hereby
authorized to do all acts necessary for the exercise of said common powers, including, but not limited to, any or all of the following:
(1) To make and enter into contracts;
(2) To incur debts, liabilities or obligations;
(3) To acquire, hold or dispose of property, contributions and donations of
property, funds, services and other forms of assistance from persons, firms, corporations and governmental entities;
(4) To sue and be sued in its own name; and
(5) To exercise all powers necessary and proper to carry out the terms and
provisions of this Agreement, or otherwise authorized by law.
(b) Said powers shall be exercised pursuant to the terms hereof and in the manner provided by law, and in accordance with Government Code Section 6509, the foregoing powers shall be subject to the restrictions upon the manner of exercising such powers pertaining to the Walnut Valley Water
District as specified in The California Water District Law (California Water
Code Sections 34000 et seq.).
Article 7 — Board Of Directors
(a) The Authority shall be governed by the Board of Directors which is hereby established and which shall be composed of one representative from each Member, who shall be a Member director selected by the governing board of that Member. Each Member, in addition to appointing its member of the
Board, shall appoint at least one alternate who shall be an officer, member of the governing board, or employee of that Member. The alternate appointed by a Member shall have the authority to attend and participate in any meeting of the Board when the regular member for whom he or she is an alternate is absent from said meeting.
(b) Each Director or alternate of the Board shall serve until a successor is appointed. Each Director or alternate shall serve at the pleasure of the Member by which he or she has been appointed.
(c) Each Director representing a Member, or his or her alternate, shall have one vote.
JPIA Agreement Revised May 7, 2012 Page 6
Article 8 — Powers Of The Board Of Directors
The Board of Directors of the Authority shall have the following powers and functions:
(a) The Board shall elect from its voting members pursuant to Article 10 of this
Agreement an Executive Committee.
(b) The Board may review all acts of the Executive Committee, and shall have the power to modify and/or reverse any decision or action of the Executive Committee upon a majority vote of the voting Directors present at any Duly
Constituted Board Meeting.
(c) The Board shall review, modify if necessary, and approve the annual operating budget of the Authority, prepared by the Executive Committee pursuant to Article 11 (d).
(d) The Board shall receive and review periodic accountings of all funds under
Articles 17 and 18 of this Agreement.
(e) The Board shall have the power to conduct on behalf of the Authority all business of the Authority, including that assigned to the Executive Committee, which the Authority may conduct under the provisions hereof and pursuant to law.
(f) The Board shall have such other powers and functions as are provided for in
this Agreement or in the Bylaws.
Article 9 — Meetings Of The Board Of Directors
(a) Meetings. The Board shall provide for at least one annual regular meeting. It may also provide for adjourned regular meetings, special meetings, or meetings upon call of the President of the Board.
(b) Minutes. The Secretary of the Authority shall cause minutes of regular,
adjourned regular, and special meetings (but not of any closed-session portion of any such meeting) to be kept and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board and to each Member.
(c) Quorum. Any fifty (50) voting members of the Board present when the
meeting is called to order shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time. A vote of the majority of those voting members present and voting in the prescribed manner at any Duly Constituted Board Meeting shall be sufficient to constitute action by the Board except as otherwise specifically set forth in
this Agreement or in the Bylaws.
JPIA Agreement Revised May 7, 2012 Page 7
(d) Compliance with the Brown Act. All meetings of the Board, including, without limitation, regular, adjourned regular, and special meetings, shall be
called, noticed, held and conducted in accordance with the provisions of the
Ralph M. Brown Act, California Government Code Section 54950 et seq.
Article 10 — Executive Committee
(a) There shall be an Executive Committee of the Board of Directors which shall consist of nine (9) members, as provided in the Bylaws. Eight (8) members of the Executive Committee shall be elected by the Board of Directors from
its voting members as provided in the Bylaws. The ninth member of the
Executive Committee shall be the Vice President of the Association of California Water Agencies, who shall be an ex officio member of the Executive Committee.
(b) The Executive Committee shall appoint a President and a Vice President of
the Board of Directors from among the eight (8) Executive Committee
members elected by the Board of Directors, as provided in the Bylaws. The President of the Board, or the Vice President in his or her absence, shall serve as the Chair of the Executive Committee.
(c) The unexcused absence of a member of the Executive Committee, other
than the Vice President of the Association of California Water Agencies,
from two consecutive meetings may be cause for the removal of said member by the Executive Committee.
(d) Vacancies on the Executive Committee shall be filled as provided in the Bylaws.
Article 11 — Powers Of The Executive Committee
The Executive Committee shall have the following powers:
(a) The Executive Committee shall determine details of and select the joint protection program or programs of the Authority.
(b) The Executive Committee shall determine and select all insurance, including excess insurance and reinsurance, necessary to carry out the joint protection program or programs of the Authority.
(c) The Executive Committee shall have authority to contract for or develop various services for the Authority, including, but not limited to, claims adjusting, loss control and risk management consulting.
(d) The Executive Committee shall cause to be prepared the operating budget of the Authority for each fiscal year, subject to review, modification and
approval by the Board, as provided for in Article 8 (c).
JPIA Agreement Revised May 7, 2012 Page 8
(e) The Executive Committee shall receive and act upon reports of all other committees and from the Chief Executive Officer.
(f) The Executive Committee shall appoint the President, Vice President, Chief
Executive Officer, Secretary, Treasurer, and Auditor/Controller of the Authority.
(g) The Executive Committee shall have the authority to engage, retain, and discharge persons, firms, or other organizations as the Executive Committee
deems necessary for the administration of the Authority. The Executive
Committee may delegate this authority to the Chief Executive Officer of the Authority.
(h) The Executive Committee shall exercise general supervisory control of and provide policy to the Chief Executive Officer.
(i) Additional committees and sub-committees shall be established by the
Executive Committee as it deems necessary to best serve the interests of the Authority.
(j) The Executive Committee shall have such other powers and functions as are provided for pursuant to this Agreement.
Article 12 — Meetings Of The Executive Committee
The meetings of the Executive Committee shall be held and conducted as
provided in the Bylaws. The Committee shall make periodic reports to the Board of Directors, advising the Board of its decisions and activities.
Article 13 — Officers Of The Authority
(a) President and Vice President. The President and Vice President of the Board shall be appointed by the Executive Committee from among the Executive Committee’s eight (8) elected members. In the event the
President or Vice President so appointed ceases to be a member of the Board, the resulting vacancy in the office of President or Vice President may be filled on either an interim or a permanent basis at the next regular meeting of the Executive Committee held after such vacancy occurs. In the absence or inability of the President to act, the Vice President shall act as
President. The President, or in his or her absence the Vice President, shall preside at and conduct all meetings of the Board, and shall chair the Executive Committee.
(b) Chief Executive Officer. The Chief Executive Officer shall have the general administrative responsibility for the activities of the Authority and shall
appoint all necessary employees thereof, subject to prior authorization of
JPIA Agreement Revised May 7, 2012 Page 9
each position by the Executive Committee and shall perform such other duties as may be assigned by the Executive Committee.
(c) Auditor/Controller. The Auditor/Controller shall be appointed by the
Executive Committee. The duties of the Auditor/Controller shall be as set forth in Articles 17 and 18 of this Agreement.
(d) Secretary. The Secretary shall be appointed by the Executive Committee and shall be responsible for all minutes, notices, and records of the
Authority.
(e) Treasurer. The Treasurer shall be appointed by the Executive Committee. The duties of the Treasurer shall be as set forth in Articles 17 and 18 of this Agreement.
(f) The Executive Committee shall have the power to appoint such other
officers as may be necessary to carry out the purposes of this Agreement.
Article 14 — Standing Committees
The Board or the Executive Committee may establish standing committees from time to time, as provided in the Bylaws.
Article 15 — Insurance Coverage
(a) The Authority shall maintain such levels of insurance coverage for Members as may be determined by the Executive Committee. Such coverage may provide for binding arbitration before an independent arbitration panel of any
disputes concerning coverage between the Authority and a Member.
(b) The Insurance coverages provided for Members by the Authority may include protection for comprehensive and economical public liability, property, workers' compensation, employee benefits, or coverage for other risks which the Executive Committee may determine to be advisable.
(c) The Executive Committee may arrange for group policies to be issued for Members interested in obtaining additional coverage, at an additional cost to those participating Members.
(d) The Executive Committee may arrange for the purchase of Excess Insurance. The Executive Committee may discontinue purchase of this
Excess Insurance, if at a future time it is no longer needed to protect the Authority's funds.
Article 16 —Implementation Of The Joint Protection Program
(a) The Board of Directors shall establish the insurance coverages provided for in Article 15, the amount of deposit premiums, and the precise cost
JPIA Agreement Revised May 7, 2012 Page 10
allocation plans and formulas, and shall provide for the handling of claims, and the pro forma financial statements of each joint protection program, and
shall specify the amounts and types of Excess Insurance or reinsurance to
be procured.
(b) The Deposit Premium for each Member for each joint protection program shall be determined by the Executive Committee.
(1) Deposit Premiums shall be based on estimated costs for a given
program year. Costs shall include estimates for claims, excess
insurance/reinsurance, general & administrative expenses, program reserves and include an estimate for interest earnings.
(2) Each Member’s share of the Deposit Premium for the given program year shall generally be based on its payroll and past loss history for the
Liability, Workers’ Compensation, and Employee Benefits Programs
and scheduled values for the Property Program.
The Executive Committee may make retrospective premium adjustments to prior program years.
(c) The Retrospective Premium Adjustment, and all other adjustments to the
Authority’s financial records respecting each Member, shall be made
annually. All premiums shall be due and payable within thirty (30) days after the invoice date.
(d) Inasmuch as some Members may experience an unusually high dollar value of losses during a single Policy Year, which would increase their
Retrospective Premium substantially above the Deposit Premium for that
joint protection program for that Policy Year and cause budgetary problems, the Executive Committee may allow for payment of a portion of such additional Retrospective Premium to be made over a period of time, not to exceed five years, with reasonable interest.
(e) The Executive Committee shall have the power to disburse or distribute reserve funds for their intended purposes.
Article 17 — Accounts And Records
(a) Annual Budget. The Authority shall annually adopt an operating budget, pursuant to Article 8 (c) of this Agreement.
(b) Funds and Accounts. The Treasurer of the Authority shall establish and
maintain such funds and accounts as required by the Executive Committee
and as required by generally accepted accounting principles. Books and records of the Authority shall be open to any inspection at all reasonable times by authorized representatives of Members as otherwise required by law.
JPIA Agreement Revised May 7, 2012 Page 11
(c) Treasurer's Report. The Treasurer shall present a complete written report of all investment activities for the most recently completed fiscal year to the
Board at its regularly scheduled meeting.
(d) Annual Audit. The Auditor/Controller shall provide for a certified, annual audit of the accounts and records of the authority, which audit shall be made by a certified public accountant and shall conform to generally accepted auditing standards. Such report shall be presented to the Executive
Committee and, following its approval by the Executive Committee, shall be
presented to the Board of Directors for concurrence.
Article 18 — Responsibility For Monies
(a) The Treasurer of the Authority shall have the authority to delegate the signatory function of Treasurer to such persons as are authorized by resolution of the Executive Committee.
(b) A bond in the amount determined adequate by the Executive Committee
shall be required of all officers and personnel authorized to disburse funds of the Authority, such bond to be paid for by the Authority.
(c) The Treasurer of the Authority shall assume the duties described in California Government Code Section 6505.5, including:
(1) Receive and acknowledge receipt for all money of the Authority and
place it in the treasury of the Authority;
(2) Be responsible upon his or her official bond for the safekeeping and disbursement of all of the Authority's money so held by him or her;
(3) Pay, when due, out of money of the Authority so held by him or her, all
sums payable on outstanding bonds and coupons of the Authority;
(4) Pay any other sums due from Authority money only upon checks, warrants, or electronic payments approved by the Chief Executive Officer or his or her designee. The checks, warrants, or electronic payments shall be reviewed by the President of the Board and the
Chair of the Finance & Audit Committee.
Article 19 — Responsibilities Of The Authority
The Authority shall perform the following functions in discharging its responsibilities under this Agreement:
(a) Provide insurance coverage as necessary, including but not limited to a self-insurance fund and commercial insurance, as well as excess coverage, reinsurance, and umbrella insurance, by negotiation or bid, and purchase,
as necessary.
JPIA Agreement Revised May 7, 2012 Page 12
(b) Assist Members in obtaining insurance coverage for risks not included within the coverage of the Authority.
(c) Assist each Member's designated risk manager with the implementation of
that risk management function as it relates to risks covered by the joint protection programs within the Member.
(d) Provide loss prevention and safety consulting services to Members as required.
(e) Provide claims adjusting and subrogation services for Claims covered by the
Authority's joint protection programs.
(f) Provide loss analysis and control by the use of statistical analysis, data processing, and record and file keeping services, in order to identify high exposure operations and to evaluate proper levels of self-retention and
deductibles.
(g) Review Member contracts to determine sufficiency of indemnity and insurance provisions when requested.
(h) Conduct risk assessments for each Member.
(i) The Authority shall have such other responsibilities as deemed necessary
by the Board of Directors or Executive Committee.
Article 20 — Responsibilities Of Members
Members shall have the following responsibilities:
(a) The governing board of each Member shall appoint a representative and at least one alternate representative to the Board of Directors, pursuant to Article 7 of this Agreement.
(b) Each Member shall appoint an employee of the Member to be responsible
for the risk management function within that Member and to serve as a liaison between the Member and the Authority as to risk management.
(c) It is recommended that each Member maintain an active safety officer and/or committee. Each Member shall consider all recommendations of the
Authority concerning unsafe practices.
(d) Each Member shall pay its deposit premium and premium adjustments, including any Retrospective Adjustment, within thirty (30) days after the invoice date. After withdrawal or termination, each Member or former Member or its successor shall pay within 45 days to the Authority its share
of any additional premium, when and if required of it by the Executive
Committee under Article 24 or Article 25 of this Agreement.
JPIA Agreement Revised May 7, 2012 Page 13
(e) Each Member shall provide the Authority with such other information or assistance as may be necessary for the Authority to carry out the joint
protection programs under this Agreement.
(f) Each Member shall in any and all ways cooperate with and assist the Authority, and any insurer or reinsurer of the Authority, in all matters relating to this Agreement and covered claims, and shall also comply with all Bylaws, rules and regulations adopted by the Board of Directors and
Executive Committee.
Article 21 — New Members
The Authority shall allow new Members entry into its joint protection programs only upon approval by the Board, or by the Executive Committee if specifically delegated such authority by resolution of the Board, which resolution may impose such conditions or limitations upon such authority of the Executive Committee as
the Board deems appropriate. Members entering under this Article may be
required to pay their share of the organizational expenses as determined by the Executive Committee, including expenses necessary to analyze their loss data and determine their Deposit Premiums.
Article 22 — Withdrawal
(a) A Member may withdraw as a party to this Agreement any time prior to its consenting in writing to enter the joint protection program.
(b) A Member that does not consent in writing to enter the joint protection program must withdraw as a party to this Agreement prior to the effective date of the program, or it will be considered to have voluntarily withdrawn upon such effective date.
(c) As respects to coverage Programs of the Authority, other than the Employee
Benefits Program:
(1) A Member that enters or has entered any pooled joint protection program may not withdraw as a participant of that program, as a party to this Agreement, or as a Member of the Authority, for a three-year period commencing on the Member's date of entry into said pooled joint
protection program.
(2) After the initial three-year non-cancellable commitment to each pooled joint protection program, a Member may withdraw only at the end of said program's Policy Year, provided it has given the Authority a twelve-month written notice of its intent to withdraw from said pooled joint
protection program.
JPIA Agreement Revised May 7, 2012 Page 14
(i) No later than ninety (90) days prior to the end of said pooled joint protection program's Policy Year, any Member having given an
Article 22 (d) conditional notice shall make clear to the Authority its
final decision on withdrawal. Final notice of actual withdrawal must be given and received by that date in clear, unambiguous form. The staff is instructed to rely on such final notice received on or before ninety (90) days prior to the end of the program's Policy
Year, and no rescission of such final notice can be made after
close of business ninety (90) days prior to the end of the program's Policy Year. If no such final notice is received by close of business on the required date, staff shall treat the original notice with all its conditions and ambiguities as final notice of withdrawal.
(ii) Any participation by a former Member must be effected as a new
Member. No benefits will be held over from the withdrawing Member's former status as a previous program participant.
(3) Members may withdraw from any group purchase program at the conclusion of its Policy Year, without being required to give the twelve-
month written notice required for withdrawal from pooled joint protection
programs.
(d) Members may withdraw as a party of the Employee Benefits Program to be effective on the first day of any month by providing written intention of withdrawing to the Authority at least 60 days prior to the proposed effective
date of the withdrawal. Any such withdrawal shall be effective only upon
receipt of the notice of withdrawal by the Authority which shall acknowledge receipt of such notice of the withdrawal in writing effective upon the proposed filing date, or such other date as the Executive Committee may designate which is not more than 90 nor less than 60 days from the notice in
order to bring such notice of withdrawal in compliance with the terms hereof.
(e) A Member may not withdraw as a party to this Agreement nor as a member of the Authority until it has withdrawn from all of the programs of the Authority.
Article 23 — Cancellation Of Membership Or Participation
(a) Notwithstanding the provisions of Article 22, the Authority shall have the
right to cancel any Member's participation in any joint protection program
upon a two-thirds vote of the voting Directors present at any Duly Constituted Board Meeting, provided that a reasonable time shall be afforded, at the discretion of the Board of Directors, to place coverage elsewhere.
(b) Notwithstanding any other provisions of this Agreement, the participation of
any Member of the Authority, including participation in any of the Authority's
JPIA Agreement Revised May 7, 2012 Page 15
programs, shall cease and be canceled automatically at the end of the next complete Policy Year for each program whenever such Member's
membership in the Association of California Water Agencies, or its affiliation
with said Association based on its meeting the criteria currently specified by ACWA for ACWA Affiliates – “Friends of ACWA,” ceases. Such automatic cancellation shall not relieve the Member or former Member of its responsibilities as provided for in Article 24 (b).
(c) Notwithstanding any other provisions of this Agreement, the participation of
any Member of the Authority, including participation in any of the Authority’s programs, may be canceled at the discretion of the Executive Committee whenever such Member is dissolved, consolidated, merged or annexed. A reasonable time shall be afforded, in the discretion of the Executive
Committee, to place coverage elsewhere. Any such cancellation shall not
relieve the Member or former Member of its responsibilities as provided for in Article 24 (b).
Article 24 — Effect Of Withdrawal Or Cancellation
(a) The withdrawal or cancellation of any Member from this Agreement shall not terminate the same and a Member by withdrawing or being canceled shall
not be entitled to payment or return of any premium, consideration or
property paid, or donated by the Member to the Authority, or to any distribution of assets, except as provided in Article 25 (c).
(b) The withdrawal or cancellation of any Member after the effective date of any joint protection program shall not terminate its responsibility to contribute its
share of deposit premium, premium adjustments or funds to any funds or
insurance program(s) created by the Authority until all claims, or other unpaid liabilities, covering the Program period any part of which the Member was signatory thereto have been finally resolved and a determination of the final amount of payments due by the Member or credits to the Member for
the period of its participation has been made by the Executive Committee. In
connection with this determination, the Executive Committee may exercise similar powers to those provided for in Article 25 (b) of this Agreement.
Article 25 — Termination And Distribution
(a) This Agreement may be terminated at any time by the written consent of three-fourths (3/4) of the voting Members, provided, however, that this Agreement and the Authority shall continue to exist for the purpose of
disposing of all claims, distribution of assets and all other functions necessary to wind up the affairs of the Authority.
(b) The Executive Committee is vested with all powers of the Authority for the purpose of winding up and dissolving the business affairs of the Authority. These powers shall include the power to require Members and former
JPIA Agreement Revised May 7, 2012 Page 16
Members, including those which were signatory hereto at the time the Claim arose or was incurred, to pay their share of any additional amount of
premium in accordance with loss allocation formulas for final disposition of
all Claims and losses covered by this Agreement. A Member's or former Member’s share of such additional premium shall be determined on the same basis as that provided for Retrospective Premiums in Article 16 of this Agreement.
(c) Upon termination of this Agreement all assets of the Authority shall be
distributed only among the Members that have been signatories hereto, including any of those Members which previously withdrew pursuant to Article 22 (d) or were canceled pursuant to Article 23 of this Agreement, in accordance with and proportionate to their cash contributions (including
premium payments and property at market value when received) made
during the term of this Agreement. The Executive Committee shall determine such distribution within six (6) months after disposal of the last pending Claim or loss covered by this Agreement.
(d) In the absence of an Executive Committee, the Chief Executive Officer shall
exercise all powers and authority under this Article. The decision of the
Executive Committee or Chief Executive Officer under this Article shall be final.
Article 26 — Provision For Bylaws And Manuals
As soon as practicable after the first meeting of the Board of Directors, the Board shall cause to be developed Authority Bylaws and a Mission Statement.
Article 27 — Notices
Notices to Members hereunder shall be sufficient if delivered to the principal
office of the respective Member.
Article 28 — Amendment
This Agreement may be amended at any time by a two-thirds (2/3) vote of the voting Directors present at any Duly Constituted Board Meeting.
Article 29 — Prohibition Against Assignment
No Member may assign any right, claim or interest it may have under this Agreement, and no creditor, assignee or third party beneficiary of any Member shall have any right, claim or title or any part, share, interest, fund, premium or
asset of the Authority.
JPIA Agreement Revised May 7, 2012 Page 17
Article 30 — Agreement Complete
The foregoing constitutes the full and complete Agreement of the parties. There are no oral understandings or agreements not set forth in writing herein.
IN WITNESS WHEREOF, the parties hereto have first executed this Agreement
by authorized officials thereof on the date indicated below:
DATE: _________________ _____________________________________
Member
BY: _____________________________________
Signature of Authorized Representative
FORMED BY WATER AGENCIES
FOR WATER AGENCIES
Water agencies have a unique set of risks not every provider can cover. In
1979, water agencies banded together to share their risks and associated
insurance costs. They empowered ACWA JPIA to provide the best coverage
for their needs …and we delivered.
Today, we are the leader in providing California public water agencies with
liability, property, and workers’ compensation loss coverage programs as well
as employee benefi ts. Serving only water agencies, our experience, expertise
and knowledge are highly tuned to our members’ unique requirements.
We are a strong, innovative organization. We continually evolve to serve our
members’ ever-changing demands with programs designed by them and for
them. As your partner, we always battle for your agency’s rights and best
protection.
ADVANTAGES AT A GLANCE
Strong, stable risk-sharing pool with over 360 members
100 percent member governed, member driven and member focused
Complete protection programs tailored specifi cally to water agencies
Programs with cost savings of 20 to 30 percent compared to
commercial insurance
Value-added services to help reduce claims, keep costs low
and protect members
Trustworthy, reliable and knowledgeable staff dedicated to each member
Tools, technology and resources to support your agency’s needs
Resourceful, in-house staff with expertise in every service area
OUR MISSION
ACWA JPIA is
dedicated to
consistently and
cost effectively
providing the
broadest possible
affordable insurance
coverage and
related services to
its member agencies.
Introducing Your Best Protection
WATER AGENCIES HAVE A CHAMPION IN THE JPIA
Public entities created pools beginning in the early 1970s. In fact, ACWA JPIA evolved in 1979 after most commercial
insurers abandoned the public entity market. As a result, public entities formed risk pools to reduce and stabilize
long-term insurance costs and ensure access to coverage and service critical for local government functions such
as the acquisition, treatment and delivery of water.
As a California special district, ACWA JPIA operates as a public entity. We are member owned, member governed
and member driven. Our Board of Directors includes a representative from each member’s board. Our Board elects
an eight-member Executive Committee to work on its behalf with the JPIA management and staff.
Unlike the commercial insurance industry, which uses profi ts to measure success, ACWA JPIA provides services,
coverage and risk management tools with the singular goal of servicing our members. We work closely with each of
our members to provide customized programs, resources and services for their needs, no matter the agency size.
HOW WE WORK
Water Agencies must be a member of the Association of California Water Agencies to join the JPIA. Our Board
and Executive Committee approve entry into the JPIA. Upon joining, members agree to share the cost of risk by
contributing to pooled programs. This pool of funds pays for all member claims and, as a result, reduces the burden
of long-term claim costs for all members. At the end of each program year, if claims costs are below anticipated
levels, members may be eligible for refunds. ACWA JPIA is proud to be a partner with water agencies throughout
California. Quite simply, ACWA JPIA is a proven source of innovation, expertise, education and fi nancial stability.
PROTECTION – EXCLUSIVE TO MEMBERS SERVICES – EXCLUSIVE TO MEMBERS
PROPERTY PROGRAM
• $500 million limits
• Pooled retention to $100,000 per loss
• Includes boiler and machinery
GENERAL, AUTO, EPL AND PUBLIC OFFICIALS ERRORS
AND OMISSIONS LIABILITY COVERAGE
• Up to $55 million limits
• Pooled retention to $5 million per occurence
• Funded for catastrophic events
• Excess premium returned to members
• Employment Practices Liability
WORKERS’ COMPENSATION
• Over 6,000 employees covered
• Statutory limits
• Pooled retention $2 million
• No deductible
• In-house claims examiners ranked #1 in California
• Funded for catastrophic events
EMPLOYEE BENEFITS
• HMO, PPO and consumer-driven medical plans
• HMO and PPO dental plans
• Life insurance and disability plans
• Employee assistance and wellness programs
RISK MANAGEMENT SERVICES
• Certifi ed safety professionals on staff
• On-site consultations and risk assessments
• Assistance with safety policies
HUMAN RESOURCES SUPPORT
• Certifi ed human resource professionals on staff
• Employment practices hotline including free legal consultations
• Regional HR group meetings and individual consultations
• Employee handbook/policy reviews
• Model water district job descriptions
EMPLOYEE BENEFITS SERVICES
• Advocacy and claim support
• Legal compliance assistance
• Electronic enrollment system
TRAINING RESOURCES
• On-site, local and regional classes
• Online courses
• Professional development programs
CLAIMS SERVICES
• In-house claims staff
• Specialized legal counsel
• Investigation and defense
MEMORANDUM OF LIABILITY COVERAGE
For The
Association of California Water Agencies
Joint Powers Insurance Authority
DECLARATIONS
FORM NUMBER: MOLC-100119
MEMBER AGENCY: Member Agency
MAILING ADDRESS: P.O. Box 123
Anytown, CA 95432-0123
COVERAGE PERIOD: October 1, 2019 to October 1, 2020
12:01 A.M. Pacific Standard Time
LIMIT OF LIABILITY: $5,000,000 per occurrence
Signed by: Date: September 29, 2019 (Authorized Representative)
TABLE OF CONTENTS
Section I
Definitions .................................................................................................................. 2
Section II
Coverage ................................................................................................................... 8
Section III Limit of Liability .......................................................................................................... 9
Section IV
Who is Covered ....................................................................................................... 10
Section V
Defense of the Member Agency .............................................................................. 10
Section VI
Exclusions ................................................................................................................ 11
Section VII
Conditions ................................................................................................................ 16
Addendum Crisis Management ..................................................................................................... i
Liability – Section 1 – Coverage (MOLC-100119) Page 1 of 26
LIABILITY
COVERAGE PROVISIONS
This is a Memorandum of understanding between all of the Member Agencies
of the Association of California Water Agencies Joint Powers Insurance Authority
(ACWA JPIA), a California public entities risk pool operating under Sections
990.4 and 990.8 of the Government Code and other provisions of law. The
purpose of this Memorandum is to set forth the terms on which the ACWA
JPIA's Member Agencies have agreed to pool certain third-party liability risks
among their membership, and have agreed to purchase excess liability insurance
(or reinsurance) above the limit of coverage provided by the Member Agencies'
pooled funds. This Memorandum shall be applied according to the principles of
contract law, giving full effect to the intent of the Member Agencies of the ACWA
JPIA in adopting this Memorandum of Liability Coverage. None of the parties to
the Memorandum are entitled to rely on any contract interpretation principle
which would require the interpretation of ambiguous language against the drafter
of an agreement. The Member Agencies participating in the pool understand
and acknowledge that their risk-pooling arrangement governed by this
Memorandum is not insurance nor is it subject to regulation under the Insurance
Code. As the ACWA JPIA is not an insurer, it has no obligation to issue
reservation of rights letters, nor does it have any obligation to provide Cumis
counsel to a Covered Party in a disputed coverage situation, as an insurer might
have under Civil Code Section 2860.
Throughout this Memorandum, words and phrases that appear in bold have
special meaning. They are defined in Section I - Definitions. Words that appear in
CAPITAL LETTERS have reference to the like titled section in the
Memorandum. Neither the terms nor conditions of this Memorandum may be changed, except
by addendum issued by us to become part of this Memorandum.
In consideration of the premium paid by the Member Agency, and subject to all
terms and conditions herein, the Authority and the Member Agency agrees as
follows:
Page 2 of 26 Liability – Section 1 – Coverage (MOLC-100119)
SECTION I - DEFINITIONS
Aerial application means the delivery of herbicides and/or pesticides by use of
an agricultural aircraft including but not limited to airplanes, helicopters, and/or
unmanned aircraft.
Aircraft means a vehicle designed for the transport of persons or property
principally in the air.
Authority means the Association of California Water Agencies Joint Powers
Insurance Authority.
Automobile means a land motor vehicle, trailer or semi-trailer.
Bodily injury means physical injury, sickness, disease, or emotional distress
sustained by a person, including death resulting therefrom, and also includes
care and loss of services by any person or persons.
Claim(s) means a demand for money.
Covered Party means any person or entity set forth in Section IV of this
Memorandum.
Cyber Liability means any liability arising out of or related to the acquisition,
storage, security, use, misuse, disclosure, or transmission of electronic data of
any kind, including, but not limited to, technology errors and omissions,
information security and privacy, privacy notification cost, penalties for regulatory
defense or penalties, website media content, disclosure or misuse of confidential
information, failure to prevent unauthorized disclosure or misuse of confidential
information, improper or inadequate storage or security or personal or
confidential information, unauthorized use, unauthorized access to computer
systems containing confidential information, or transmission or failure to prevent
transmission of a computer virus or other damaging material.
Dam means any artificial barrier, together with appurtenant works, which does or
may impound or divert water, and which either: (a) is 25 feet or more in height
from the natural bed of the stream or watercourse at the downstream toe of the
barrier, or from the lowest elevation of the outside limit of the barrier, if it is not
across a stream channel or watercourse, to the maximum possible water storage
elevation; or (b) has an impounding capacity of 50 acre-feet or more.
Any such barrier which is not in excess of 6 feet in height, regardless of storage
capacity, or which has a storage capacity not in excess of 15 acre-feet,
regardless of height, shall not be considered a dam.
Liability – Section 1 – Coverage (MOLC-100119) Page 3 of 26
No obstruction in a canal used to raise or lower water therein or divert water
therefrom, no levee, including but not limited to, a levee on the bed of a natural
lake the primary purpose of which levee is to control floodwaters, no railroad fill
or structure, tank constructed of steel or concrete or of a combination thereof, no
tank elevated above the ground, and no barrier which is not across a stream
channel, watercourse, or natural drainage area and which has the principal
purpose of impounding water for agricultural use shall be considered a dam. In
addition, no obstruction in the channel of a stream or watercourse, which is 15
feet or less in height from the lowest elevation of the obstruction and which has
the single purpose of spreading water within the bed of the stream or
watercourse upstream from the construction for percolation underground shall be
considered a dam.
Regardless of the language of the above definition, however, no structure
specifically exempted from the jurisdiction of the State of California Department
of Water Resources, Division of Safety of Dams, shall be considered a dam,
unless such structure is under the jurisdiction of any agency of the Federal
Government.
Damages means monetary compensation legally recoverable from a Covered
Party, for past injury caused to a claimant by the unlawful acts or omissions of
said Covered Party, except for the following:
1. Punitive or exemplary damages, statutory multiples of
damages, civil fines or penalties, or any other liability over and
above actual damages, by whatever name called, irrespective
of whether the Covered Party's governing board has taken
any action or passed any resolution electing to pay such
damages;
2. Criminal fines or penalties;
3. Back-pay awards or any other restitutive relief awarded to
compensate a claimant for services rendered to, or financial
benefit otherwise conferred upon, a Covered Party; and any
FLSA Wage and Hour or any CA Wage Order or any similar
Federal or State law claims or suits against, either the
Member Agency or Covered Party; and
4. Injunctive and/or administrative relief.
Defense costs means reasonable fees charged by an attorney appointed by the
Authority to defend the claim or suit and all other reasonable fees, costs and
Page 4 of 26 Liability – Section 1 – Coverage (MOLC-100119)
expenses attributable to the investigation, defense or appeal of a claim or suit
that is within the scope of coverage afforded by this Memorandum, and that has
been, and remains, duly tendered to the Authority for defense and indemnity
under this Memorandum, except salaries of employees of the Covered Party,
the office expenses of the Member Agency, and expenses of any claims
servicing organization the Member Agency has engaged.
Employee means any person whose labor or services is engaged and directed
by a Covered Party, whether past or present, including a volunteer, official, or
applicant for employment. This includes part-time, seasonal, and temporary labor
or services, as well as any person employed in a supervisory, managerial, or
confidential position. Employee shall not include leased employees, independent
contractors or subcontractors, agents, or servants of any Covered Party, unless
the Covered Party has the right to and does control and direct the details of their
work rather than the result of that work. Employee also shall not include spouse,
child, unborn fetus, parent, brother, or sister of the employee.
The exclusion of independent contractors or subcontractors from the definition of
employee shall not apply to a claim for sexual harassment specifically
authorized under California Government Code 12940(j)(4) and (5).
Employment Practices Liability means liability of the Covered Party for
compensatory damages payable to any prospective, present or former employee
on account of a violation by Covered Party of any federal or state Employment
Liability Statute or conduct held to be in violation California public policy, arising
from:
1. Refusal to employ such person; or
2. Termination of such person’s employment; or
3. Coercion, discrimination, retaliation, harassment, demotion,
reassignment, discipline or other employment-related practice,
policy, act or omission, provided such practice policy act
omission does not include the willful commission of a crime or
intentional infliction of bodily Injury.
Liability to the employee shall include liability to any spouse for economic
damages or emotional distress incident to any of the acts 1 through 3 above.
Employment Practices Liability excludes anything not enumerated above,
specifically excluding liability for breach of any employment contract, including
without limitation any liability for wages, salaries, bonuses, stipends, expenses,
overtime, retirement, medical or disability benefits, back pay, or any severance or
other amount payable on termination.
Liability – Section 1 – Coverage (MOLC-100119) Page 5 of 26
Employment Liability Statute shall include the following:
Title VII of the Civil Rights Act of 1964 and amendments thereto; the
Americans with Disabilities Act; the Age Discrimination in Employment
Act; the Equal Pay Act; the Pregnancy Discrimination Act of 1978; the
Immigration Reform Control Act of 1986; the Family and Medical Leave
Act of 1993; the Genetic Information Nondiscrimination Act of 2008; the
Health Insurance Portability and Accountability Act of 1996; the California
Fair Employment and Housing Act; and any California or Federal statute
to the extent it proscribes the same conduct.
Hired automobile means an automobile used under contract on behalf of, or
loaned to, the Member Agency, provided such automobile is not owned by or
registered in the name of the Member Agency or an employee or authorized
volunteer of the Member Agency.
Member Agency means the local public agency, designated in the
DECLARATIONS, which is a party signatory to the Joint Powers Agreement
creating the Association of California Water Agencies Joint Powers Insurance
Authority and is a participant in its Liability Program.
Member Agency's product means any goods or products, other than real
property, manufactured, sold, handled, distributed or disposed of by the Member
Agency or by others trading under its name, including, but not limited to,
domestic water, agricultural water, recycled water, waste water, or electricity.
Member Agency’s product also includes containers (other than vehicles),
materials, parts or equipment furnished in connection with such goods or
products.
Memorandum means this document, the MEMORANDUM OF LIABILITY
COVERAGE.
Nuclear material means source material, special nuclear material, or byproduct
material. “Source material,” “special nuclear material,” and “byproduct material”
have the meanings given to them by the Atomic Energy Act of 1954 or in any law
amendatory thereof.
Occurrence means:
1. With respect to the bodily injury, property damage, or sudden
and accidental pollution: an accident, including continuous or
repeated exposure to substantially the same generally harmful
conditions, which results in bodily injury or property damage
Page 6 of 26 Liability – Section 1 – Coverage (MOLC-100119)
neither expected nor intended from the standpoint of the Covered
Party. Property damage that is the loss of use of tangible property
not physically injured shall be deemed to occur at the time of the
occurrence that caused it.
2. With respect to personal injury and Public Official’s errors and
omissions respectively: an offense described in the definition of
those terms in this Memorandum.
3. With respect to Employment Practices Liability: an act, policy, or
course of conduct by a Covered Party during the coverage period
which results in a claim for wrongful employment if the first act,
policy or course of conduct occurred during the coverage period.
All allegations by the same employee in the same claim shall be
considered one occurrence for the purpose of the Limit of
Coverage, and such occurrence shall be deemed to exist on the
date of the alleged first act, policy, or conduct, in the event of an
allegation of multiple acts, policies, or course of conduct.
Owned automobile means an automobile owned by or under long term lease
to the Member Agency.
Personal Injury means: (a) false arrest, malicious prosecution, or willful
detention; (b) libel, slander or defamation of character; (c) invasion of privacy;
(d) wrongful entry or eviction, or other invasion of the right of private occupancy;
(e) assault and battery; and (f) discrimination or violation of civil rights prohibited
by law or violation of federal civil rights laws, not intentionally committed by or at
the direction of a Covered Party.
Pollutants means any solid, semi-solid, noise, liquid, gaseous or thermal irritant
or contaminant, including smoke, vapor, soot, mists, fumes, acids, alkalis,
chemicals, biological and other etiologic agents or materials, genetically
engineered materials, teratogenic, carcinogenic and mutagenic materials, waste
materials, and any irritant or contaminant. Waste material includes materials
which are intended to be or have been recycled, reconditioned or reclaimed.
Pollutants does not include domestic water, agricultural water, recycled water,
waste water, or water furnished to commercial users, nor include waterborne
asbestos.
Products hazard includes bodily injury or property damage arising out of the
Member Agency's products or reliance upon a representation or warranty
made at any time with respect thereto, but only if the bodily injury or property
damage occurs away from premises owned by or rented to the Member Agency
Liability – Section 1 – Coverage (MOLC-100119) Page 7 of 26
and after physical possession of such Member Agency's products has been
relinquished to others.
Property damage means physical injury to or destruction of tangible property,
including the loss of use thereof at any time resulting therefrom; or loss of use of
tangible property which has not been physically injured or destroyed.
Public Official’s errors and omissions means any and all breaches of duty by
any Covered Party arising from mistake, misstatement, misleading statement,
error, neglect, inadvertence, omission or negligent action or inaction, in the
discharge of his/her duties for the Member Agency including service with any
other entity at the direction of any Member Agency, except for the following:
1. Willful commission of crime or other dishonest, fraudulent or
malicious act;
2. Obtaining financial gain to which the Covered Party is not
legally entitled;
3. Faulty preparation or approval of maps, plans, reports,
surveys, designs, bid documents, or specifications unrelated
to the operations of a Covered Party; but this exception does
not apply to reports provided to any other water purveyor or to
services provided by a Covered Party for another Covered
Party; or
4. Adoption or administrative application of any ordinance, resolution
or regulation.
Sexual Abuse or Molestation means any actual or alleged negligent or
intentional act, error or omission, amounting to or resulting in sexual abuse or
molestation or threatened sexual abuse or molestation of any minor.
Subsidence shall mean earth movement including, but not limited to, landslide,
mudflow, earth sinking, earth rising or earth shifting.
Sudden and accidental pollution means the sudden and accidental discharge,
dispersal, release, or escape of pollutants, resulting in property damage or
bodily injury neither expected nor intended from the standpoint of the covered
party, onto or upon land, into the atmosphere, into or under the ground, or into
any watercourse, whether natural or man-made, or body of water or aquifer, but
does not include any discharge, dispersal, release, or escape of pollutants,
whether sudden or accidental or gradual or intentional from any fixed or
Page 8 of 26 Liability – Section 1 – Coverage (MOLC-100119)
stationary contained, vessel, or tank of any description whatever, when located
above ground or underground.
Suit(s) means a civil proceeding in which damages are alleged because of
bodily injury, property damage, personal injury, or Public Official’s errors
and omissions to which this Memorandum applies. Suit includes:
1. An arbitration proceeding in which such damages are claimed
and to which a Covered Party must submit or does submit
with the consent of the Authority; or
2. Any other alternative dispute resolution proceeding in which
such damages are claimed and to which a Covered Party
submits with the consent of the Authority.
Terrorism means an act, including but not limited to the use of force or violence
and/or threat thereof, of any person or group(s) of persons, whether acting alone
or on behalf of or in connection with any organization(s) or government(s),
committed for political, religious, ideological or similar purposes including the
intention to influence any government and/or to put the public, or any section of
the public, in fear.
Ultimate net loss means the sum actually paid or payable in cash in the
settlement or satisfaction of claims or suits, for which the Covered Party is
liable either by: (1) adjudication, or (2) compromises with the written consent of
the Authority, after making proper deduction for all recoveries and salvages
collectible, and includes defense costs, court costs and interest on any
judgment or award, but excludes all unallocated loss adjustment expenses and
all salaries of employees and office expenses of the Covered Party and
Authority.
Unmanned Aircraft means an aircraft, aerial system or device that is not
designed, manufactured, or modified after manufactured to be controlled directly
by a person from within or on the aircraft, aerial system or device.
SECTION II – COVERAGE
The Authority shall pay on behalf of any Covered Party the ultimate net loss
which that Covered Party shall become legally obligated to pay to a third party
by reason of liability (1) imposed by law, or (2) assumed by contract, for
damages because of:
Liability – Section 1 – Coverage (MOLC-100119) Page 9 of 26
1. Bodily Injury Liability;
2. Property Damage Liability;
3. Public Official’s Errors and Omissions Liability;
4. Personal Injury Liability; or
5. Employment Practices Liability
to which this Memorandum applies, caused by or arising out of an occurrence
during the coverage period.
This coverage applies only to claims for damages arising out of those activities
the Member Agency was engaged in at the inception date of this
Memorandum, and not to claims arising out of any activity or service which the
Member Agency added to its operations after the inception date of this
Memorandum, unless such new activity or service is reported by the Member
Agency to the Authority at least 60 days prior to commencing the new activity
or service.
This coverage does not apply to claims for damages which are either expected
or intended by the Covered Party.
Any increase in the Member Agency's exposure with regard to levee
maintenance, hydroelectric generation, fire, police or ambulance services must
have prior approval of the Executive Committee in order to have coverage under
this Memorandum.
SECTION III – LIMIT OF LIABILITY
Regardless of the number of (1) Covered Parties under this Memorandum,
(2) persons or organizations who sustain injury or damage, or (3) claims made
or suits brought, the Authority's liability for the ultimate net loss shall be the
lesser of:
1. $5,000,000 Any one occurrence, arising out of bodily injury,
property damage, Public Official’s errors and
omissions, personal injury or Employment
Practices Liability, or any combination thereof; or
2. The total limit for all Covered Parties provided by any purchased
excess insurance or reinsurance, subject to the Authority’s ability
to recover from those excess insurers or reinsurers.
Page 10 of 26 Liability – Section 1 – Coverage (MOLC-100119)
SECTION IV –WHO IS COVERED
Each of the following is a Covered Party to the extent set forth below:
1. The Member Agency and any subsidiary or special district or
agency totally governed by the Member Agency;
2. Any director of the Member Agency while acting within the course
and scope of his/her duties;
3. Any employee or authorized volunteer of the Member Agency
while acting within the course and scope of his/her duties; and
4. Any party designated in the foregoing paragraphs 1 through 3 while
acting within the course and scope of his/her duties with respect to
the use of an automobile not owned by the Member Agency and
then only excess over any other insurance specifically insuring said
automobile. Any person while using any owned or hired
automobile and any person legally responsible for the use there of,
provided the actual use of the automobile is with the permission of
the Member Agency.
SECTION V - DEFENSE OF THE MEMBER AGENCY
On causes of action covered by this Memorandum and only those causes, the
Authority shall have the right and duty to defend any suit against any Covered
Party, even if all allegations are groundless, false or fraudulent. The Authority
may make such investigations, negotiations or settlement of any claim or suit as
it deems expedient. The Authority shall not be obligated to pay any claim or
judgment or to defend any suit after any of the Authority's limits of liability have
been exhausted.
The Authority shall have no duty to defend any suit against a Covered Party,
nor to pay any costs or expenses incurred by any Covered Party, at any time
before the suit is tendered to the Authority, nor shall the Authority have any
duty to pay any costs or expenses incurred by any Covered Party at any time
after the Covered Party withdraws its tender of the suit to the Authority for any
reason.
This coverage applies only to claims for damages caused by an occurrence, for
damage or injury that occurs during the coverage period of this Memorandum,
and then only if, prior to the first day of the coverage period of this
Memorandum, no person or party authorized by any Covered Party to give or
Liability – Section 1 – Coverage (MOLC-100119) Page 11 of 26
receive notice of an occurrence or claim knew that the injury or damage had
occurred, in whole or in part. If such an authorized person or party knew, prior to
the first day of the coverage period of this Memorandum, that the injury or
damage had occurred, then any continuation, change or resumption of such
injury or damage during or after the coverage period of this Memorandum will be
deemed to have been known prior to the coverage period. Injury or damage will
be deemed to have been known to have occurred at the earliest time when any
person or party authorized by any Covered Party to give or receive notice of an
occurrence or claim: (1) reports all, or any part, of the injury or damage to the
Authority or to any other risk pool, any insurer, or any other indemnitor; or (2)
receives a written or verbal demand or claim for damages because of the injury
or damage; or (3) becomes aware by any other means that injury or damage has
occurred or has begun to occur.
With respect to any covered claim or suit against the Covered Party, the
Authority shall select and assign counsel to defend the Covered Party(s)
against the claim or suit. The Authority will consider the wishes of a Covered
Party with respect to the assignment of counsel; however, the Authority retains
the sole right to make the assignment of counsel. If the Covered Party refuses to
be defended by the counsel assigned by the Authority then this Memorandum
shall not provide any defense or indemnity to such Covered Party for such claim
or suit, and the Authority shall not be required to contribute to any defense
costs, settlement or judgment arising from such claim or suit.
Any claim for damages by one Member Agency against any other Member
Agency, if otherwise covered by this Memorandum, shall be submitted to
binding arbitration pursuant to Section VII. – Conditions, F. RESOLUTION OF
DISPUTES, (6) Arbitration Procedures for Resolving Disputes.
SECTION VI – EXCLUSIONS
This Memorandum does not apply to any defense or indemnification for the
following items, whether the act or occurrence is alone, or is concurrent with
other, covered matters:
A. Liability arising out of the ownership, maintenance, loading, unloading, use
or operation of any airfield, or similar aviation facility; or
Liability arising out of the ownership of aircraft, or the maintenance or use
of owned aircraft.
This exclusion does not apply to claims arising out of the ownership,
operation, use, maintenance or entrustment to others of any unmanned
Page 12 of 26 Liability – Section 1 – Coverage (MOLC-100119)
aircraft owned or operated by or rented to or loaned by or on behalf of
any Member Agency if operated in accordance with all applicable federal,
state, and local laws, rules, and regulations, including but not limited to
Federal Aviation Administration (FAA) Rules and Regulations for
unmanned aircraft detailed in part 107 of Title XIV of the Code of Federal
Regulations.
B. Any obligation for which any Covered Party, or any carrier as insurer
therefore, may be held liable under any workers' compensation,
unemployment compensation or disability benefits law, or under any
similar law; or
Liability of any employee or authorized volunteer with respect to bodily
injury of another employee or authorized volunteer.
C. Liability for property damage to:
1. Property owned by the Covered Party;
2. Aircraft in the care, custody or control of the Covered Party.
D. Liability arising out of:
1. The Covered Party's delivery or non-delivery of Member
Agency’s product, based on any decision made by the Covered
Party's with respect to either obtaining a supply of water or
electricity for, or allocating the available supply of water or
electricity, among the Covered Party's water or electricity users; or
2. The Covered Party’s claim to, right to or ownership of any supply
of Member Agency’s product.
E. Liability for:
1. Bodily injury, property damage, personal injury or Public
Official’s errors and omissions which would not have occurred or
taken place in whole or in part except for the actual, alleged or
threatened discharge, dispersal, seepage, migration, release or
escape of pollutants at any time; or
2. Any loss, cost or expense arising out of any:
a. Request, demand, or order that a Covered Party, or any
others, test for, monitor, clean up, remove, contain, treat,
Liability – Section 1 – Coverage (MOLC-100119) Page 13 of 26
detoxify or neutralize, or in any way respond to, or assess
the effects of pollutants; or
b. Claim or suit by or on behalf of a governmental authority for
damages because of testing for, monitoring, cleaning,
removing, containing, treating, detoxifying or neutralizing, in
any way responding to, or assessing the effects of
pollutants.
c. Aerial application of weed abatement or spraying or pest
abatement or spraying.
However, this exclusion shall not apply to bodily injury, property
damage, personal injury, or Public Official’s errors and omissions
arising out of the actual, alleged or threatened discharge, dispersal,
seepage, migration, release or escape of pollutants that:
a. Was sudden and accidental, and neither expected nor intended by
a Covered Party; or
b. Resulted from the use, handling, storage, discharge, dispersal,
release or escape of chlorine or any other chemical used in the
water treatment process or waste water treatment process; or
c. Arose out of explosion, lightning, windstorm, vandalism or malicious
mischief, collapse, riot and civil commotion, flood, earthquake or
the collision, upset or overturn of an automobile or equipment; or
d. Arose out of the heat, smoke or fumes from a hostile fire; a hostile
fire is defined herein as a fire that becomes uncontrollable or
breaks out from where it was intended to be; or
e. Arose out of weed abatement or spraying, unless by and/or through
aerial application; or
f. Arose out of pest abatement or spraying, unless by and/or through
aerial application; or
g. Arose from propane or natural gas; or
h. Arose from the products hazard.
Page 14 of 26 Liability – Section 1 – Coverage (MOLC-100119)
F. Liability arising out of:
1. Estimates of probable costs, or cost estimates being exceeded, or
failure to award contracts in accordance with statute or ordinance
which under law must be submitted for bids; or
2. Failure to perform or breach of a contractual obligation; or
3. Settlement Agreements. Claims alleging breach of a settlement
agreement involving a Covered Party in an underlying matter that
was afforded coverage under this Memorandum will be covered for
no more than $25,000.00 reimbursement by the Authority to the
Covered Party for indemnity and defense as a combined total.
G. Liability at any time arising out of the manufacture of, mining of, use of,
sale of, installation of, removal of, distribution of, or exposure to asbestos,
asbestos products, asbestos fibers, or asbestos dust; or
To any obligation of the Covered Party to indemnify any party because of
damage arising any time as a result of the manufacture of, mining of, use
of, sale of, installation of, removal of, distribution of, or exposure to
asbestos, asbestos products, asbestos fibers, or asbestos dust; or
To any obligation to defend any suit or claim against the Covered Party
seeking damages, if such suit or claim results from or is contributed to,
by any or any combination of the following: manufacture of, mining of, use
of, sale of, installation of, removal of, distribution of, or exposure to
asbestos, asbestos products, asbestos fibers, or asbestos dust.
H. Liability for past, present, or future claims arising in whole or in part, either
directly or indirectly, out of selenium, or any compound containing
selenium.
I. Liability for punitive or exemplary damages, statutory multiples of
damages, civil fines or penalties, or any other liability over and above
actual damages, by whatever name called, irrespective of whether the
Covered Party's governing board has taken any action or passed any
resolution electing to pay such damages.
J. Liability arising out of the hazardous properties of nuclear material.
K. Liability arising out of the partial or complete structural failure of any dam.
Liability – Section 1 – Coverage (MOLC-100119) Page 15 of 26
L. Liability arising out of or in connection with land use regulation, or land use
planning, the principles of eminent domain, condemnation proceedings, or
inverse condemnation by whatever name called, to the extent that such
liability is alleged to, or does, result from deliberate, decision-making
conduct by the governing body of the Covered Party, and whether or not
liability accrues directly against any Covered Party by virtue of any
agreement entered into by or on behalf of any Covered Party.
This exclusion does not apply to inverse condemnation liability arising
from accidentally caused physical injury to or destruction of tangible
property, including all resulting loss of use of such property, for which the
Covered Party may be legally responsible.
M. Liability imposed by any “No-Fault,” “Uninsured Motorist” or “Underinsured
Motorist” law, or any similar law.
N. Liability arising out of any claim for Cyber Liability or by any name by
which it is called.
O. Liability arising out of injunctive and/or administrative relief.
P. Liability arising out of the actual or threatened abuse or molestation of
any minor, including but not limited to physical abuse, corporal
punishment, sexual abuse, or sexual molestation by any Covered
Party, or anyone acting on behalf of the Covered Party.
Q. Liability arising out of the adoption or administrative application of any
ordinance, resolution or regulation.
This exclusion shall not apply to the physical enforcement of an ordinance,
resolution or regulation, such as liability arising from the act of delivering a
fine, citation, warning, notice or inspection.
R. Liability arising out of or by reason of:
1. The purchase, sale, offer of sale, or solicitation of any security,
debt, bank deposit, or financial interest or instrument;
2. Any representations made at any time in relation to the price or
value of any security, debt, bank deposit or financial interest or
instrument;
3. Any depreciation or decline in price or value of any security, debt,
bank deposit, or financial interest or instrument; or
Page 16 of 26 Liability – Section 1 – Coverage (MOLC-100119)
4. Employee Retirement Income Security Act of 1974 or any law
amendatory thereof, or any similar law, or arising out of fiduciary
activities with respect to employee benefit plans.
SECTION VII - CONDITIONS
A. PREMIUM/DEPOSIT PREMIUM
All premium payments required by this Memorandum shall be computed
in accordance with the Joint Powers Agreement and the cost allocation
plan adopted by the Authority's Board of Directors. The Deposit Premium
is an estimate to be credited against the amount of Retrospective
Premium determined under the cost allocation plan.
B. INSPECTION AND AUDIT
The Authority shall be permitted, but not obligated, to inspect the
Member Agency's property or operations at any time. The Authority
shall have the right to examine and/or audit any data provided by the
Member Agency which affects or may affect the Member Agency's
financial obligations under this Memorandum.
C. SEVERABILITY OF INTEREST
The term Member Agency is used severally and not collectively.
D. MEMBER AGENCY'S DUTIES IN THE EVENT OF OCCURRENCE,
CLAIM, OR SUIT
1. The Covered Party’s duties in the event of an occurrence, claim,
or suit reasonably likely to involve the Authority are as follows.
These provisions are conditions precedent to coverage afforded
under this Memorandum.
Written notice containing particulars sufficient to identify the
Covered Party and also reasonably obtainable information with
respect to the time, place and circumstances thereof, and the
names and addresses of the injured and of the available witnesses,
shall be given by or for the Covered Party to the Authority or any
of its authorized agents.
a. The Covered Party shall immediately notify the Authority
upon receipt of notice of a claim involving:
Liability – Section 1 – Coverage (MOLC-100119) Page 17 of 26
i. One or more fatalities;
ii. Loss of limb or amputation;
iii. Loss of use of any sensory organ;
iv. Spinal cord injuries (quadriplegia or paraplegia);
v. Third degree burns involving 10% or more of the
body;
vi. Serious facial disfigurement;
vii. Paralysis;
viii. Closed head injuries;
ix. Serious loss of use of any body functions;
x. Long-term hospitalization;
xi. Class action suits; or
xii. Sexual abuse or molestation.
2. If claim is made or suit is brought against the Covered Party, and
the Covered Party seeks defense or indemnity against the claim
or suit from the Authority, the Covered Party shall immediately
forward to the Authority every demand, notice, summons or
process received.
3. The Covered Party shall cooperate with the Authority and with
defense counsel appointed by the Authority and, upon the
Authority's request, assist in making settlements, in the conduct of
suits and in enforcing any right of contribution or indemnity against
any person or organization who may be liable to the Covered Party
because of injury or damage with respect to which coverage is
afforded under this Memorandum; and the Covered Party shall
attend hearings and trials and assist in securing and giving
evidence and obtaining the attendance of witnesses. The Covered
Party shall not, except at the Covered Party's own cost, voluntarily
make any payment, assume any obligation, or incur any defense
attorney's fees or costs or any other expense other than for first aid
or damage mitigation.
Page 18 of 26 Liability – Section 1 – Coverage (MOLC-100119)
4. With respect to "Small Claims" as defined below, the Member
Agency may elect to make investigations and settlements. At the
request of the Member Agency, however, the Authority shall
investigate, handle, deny, accept or otherwise settle any such
claim or claims on behalf of the Member Agency.
“Small Claims” within the meaning of this condition:
a. Must be for property damage only, with no apparent
potential for related bodily injury allegations;
b. Must not have estimated damages for all claims arising out
of the occurrence exceeding the Member Agency's
applicable Retrospective Allocation Point; and
c. Must be settled within sixty (60) days of the date of filing or
be turned over to the Authority's claims handling agency no
later than the 62nd day.
If a Member Agency incurs a loss which meets the above
constraints, it may use the following procedures:
a. Negotiate settlement of the claim up to the specified limits;
b. Issue a check to claimant or otherwise compensate claimant
for the agreed upon damages; and
c. Report the settlement to the Authority with a copy of the
claim report, along with a copy of any release taken, and
receive reimbursement for the amount of the settlement.
5. The Authority shall not be liable for occurrences, suits or claims
with regard to which the Member Agency fails to comply with this
subsection D.
E. ACTION AGAINST THE AUTHORITY
No action shall lie against the Authority unless, as a condition precedent
thereto, there shall have been full compliance with all the terms of this
Memorandum, nor until the amount of the Covered Party's obligation to
pay shall have been finally determined either by judgment against the
Covered Party after actual trial or by written agreement of the Covered
Party, the claimant and the Authority.
Liability – Section 1 – Coverage (MOLC-100119) Page 19 of 26
No person or organization shall have any right under this Memorandum
to join the Authority as a party to any action against any Covered Party
to determine the Covered Party's liability, nor shall the Authority be
impleaded by the Covered Party or the Covered Party's legal
representative. Bankruptcy or insolvency of the Covered Party or of the
Covered Party's estate shall not relieve the Authority of any of its
obligations hereunder.
F. RESOLUTION OF DISPUTES
1. General
The following procedures shall be followed in resolving any dispute,
claim, or controversy arising out of or connected with the
agreements set forth in this Memorandum. Such disputes shall be
resolved by either administrative proceedings or binding arbitration
as provided for herein. The parties in these proceedings shall be
the Authority and the Member Agency and are hereinafter
referred to as "party" or "parties".
2. Initiation of Proceedings
Either party shall give written notice to the other party of its intent to
initiate proceedings to resolve any dispute covered by this
SECTION VII – Conditions, E. Such notice shall contain a
statement setting forth the nature of the dispute, the amount
involved, and the remedy sought.
3. Administrative Procedures for Resolving Disputes
a. All disputes subject to these proceedings shall first be
submitted to the following designated committee, depending
upon the amount in dispute, to determine whether the
dispute can be resolved by administrative proceedings
without having to be submitted to binding arbitration.
Level and Committee Amount in Dispute
1. Liability Program Committee Not in excess of $50,000, per
occurrence
2. The Authority’s Executive
Committee
Over $50,000, but not in excess
of $200,000, per occurrence
Page 20 of 26 Liability – Section 1 – Coverage (MOLC-100119)
3. Ad Hoc Board Committee Over $200,000 and up to the
attachment point of re-insurance
or excess coverage, per
occurrence
b. A separate Ad Hoc Board Committee shall be formed for
each dispute as follows:
i. Upon initiation of the dispute, the entire Board
roster shall be randomly prioritized.
ii. The first seven Board members on the prioritized
list agreeing to serve on the Ad Hoc Committee,
or to have their alternates serve, shall comprise
the pool. At least five members of the pool shall
be required to convene the Committee.
iii. No Board member representing a Member
Agency that is a party to the arbitration, nor
his/her alternate, shall serve on the Ad Hoc
Committee.
4. Administrative Hearings
Administrative hearings before committees shall be conducted in an
informal manner with the Chair of the Committee presiding at the
Liability Program Committee and the Executive Committee and the
Chief Executive Officer of the Authority presiding, without a vote,
at the Ad Hoc Committee. They shall be conducted in accordance
with procedures determined by the Committee except as follows:
a. List of Witnesses and Documents
If either party wishes a list of the other party's witnesses and
documents, it may demand it in accordance with the
procedures set forth in California Code of Civil Procedure,
Section 1282.2. However, the failure to list a witness or a
document shall not bar the testimony of the unlisted witness
or the introduction of an undesignated document, provided
that good cause for the omission is shown as determined by
the Committee.
Liability – Section 1 – Coverage (MOLC-100119) Page 21 of 26
b. Presentation of Evidence
Each party shall present its evidence in an informal manner.
The Chair of the Committee shall rule on the admission and
exclusion of evidence, but the Chair need not follow the rules
of evidence and rules of judicial procedures.
c. Cross-Examination
Each party shall be permitted to cross-examine witnesses.
d. Testimony Under Oath
The testimony of witnesses shall be given under oath, with
oaths to be administered by a Notary Public.
e. Representation by Counsel
Parties have the right to be represented by counsel.
f. Stenographic Record
Either party wishing a stenographic record shall make
arrangements directly with a stenographer and shall notify
the other party of such arrangements in advance of the
hearing. The requesting party shall pay the cost of recording
the hearing if no transcript is ordered. If a transcript is
ordered, the cost of the transcript and of recording the
hearing shall be prorated equally among the parties ordering
copies.
g. Place of Hearing Unless otherwise agreed to by the parties, administrative
hearings shall be held at the general office of the Authority.
h. Time of Decisions
Decisions shall be made promptly by the Committee in
writing and, unless otherwise agreed by the parties or
specified by law, no later than ten (10) days from the date of
the close of the hearing.
Page 22 of 26 Liability – Section 1 – Coverage (MOLC-100119)
i. Costs and Expenses
Each party shall bear its own expenses.
5. Time and Method of Appealing Administrative Decisions
Either party may appeal the decision of the Committee to which the
dispute was first referred pursuant to paragraph (3) above. Notice
of such appeal shall be submitted in writing within ten (10) days of
receipt of the Committee's decision. If the initial decision was by the
Liability Program Committee or by the Executive Committee, the
parties shall confer within ten (10) days of receipt of the Notice of
Appeal to determine if they are both willing to submit the appeal to
one of the committees set forth in paragraph (3) above having
greater jurisdiction than the Committee that made the initial
decision. If they agree to submit it to such a committee for final
binding determination, the parties shall indicate this in writing and
the matter shall be submitted to that committee and heard in
accordance with the procedures set forth in paragraph (4) above. If
either party is not willing to have the appeal heard by another
committee, or the initial decision was by the Ad Hoc Board
Committee, the appeal shall be submitted to binding arbitration in
accordance with the procedures set forth in paragraph (6) below.
6. Arbitration Procedures for Resolving Disputes
a. Selection of Arbitrators
If an appeal of an administrative decision is submitted to
arbitration, each party shall, within ten (10) days, select one
arbitrator and submit his or her name in writing to the other
party. Within ten (10) days after their selection, these two
arbitrators shall select a third independent arbitrator. If the
two parties cannot agree on the selection of the third
arbitrator within ten (10) days, either party may petition the
Placer County Superior Court for the appointment of the third
arbitrator pursuant to the provisions of Section 1281.6 of the
California Code of Civil Procedure. The third arbitrator shall
preside as the Chair of the arbitration panel. Except for
notification of appointment and as provided in the California
Code of Civil Procedure, there shall be no communication
between the parties and the arbitrator(s) relating to the
subject of the arbitration other than at oral hearings.
Liability – Section 1 – Coverage (MOLC-100119) Page 23 of 26
b. Discovery
The procedures set forth in California Code of Civil
Procedure Section 1283.05 relating to depositions and
discovery shall apply to any arbitration pursuant to this
paragraph (6).
c. Testimony Under Oath
The testimony of witnesses shall be given under oath, with
oaths to be administered by a Notary Public.
d. Stenographic Record
Either party wishing a stenographic record shall make
arrangements directly with a stenographer and shall notify
the other party of such arrangements in advance of the
hearing. The requesting party shall pay the cost of recording
the hearing if no transcript is ordered. If a transcript is
ordered, the cost of the transcript and of recording the
hearing shall be prorated equally among the parties ordering
copies.
e. Place of Hearing
Unless otherwise agreed to by the parties, arbitration
hearings shall be held at the general office of the Authority.
f. Closing the Hearing
Each arbitration hearing shall be completed within one (1)
day; provided, however the arbitrators may, for good cause
shown, schedule such additional hearings as are necessary
to ensure that all evidence material to the controversy is
presented.
g. Time of Decisions
Decisions shall be made promptly by the arbitrators in writing
and, unless otherwise agreed by the parties or specified by
law, no later than ten (10) days from the date of the close of
the hearing.
Page 24 of 26 Liability – Section 1 – Coverage (MOLC-100119)
h. Costs and Expenses
Each party shall pay its own expenses, including the
expense of the arbitrator appointed by it and the expense of
any witnesses which it calls. Except as otherwise provided
herein, the expenses of any witness or the cost of any proof
produced at the direct request of the arbitrators, and all other
expenses of the arbitration, including the travel and the other
expenses of the third arbitrator chosen by the first two
arbitrators shall be borne equally by the parties.
i. Interpretation and Application of Rules
With respect to any procedure not herein expressly provided
for, the arbitration shall be governed by the California Code
of Civil Procedure provisions relating to arbitration (Section
1280 et seq.). The arbitrator(s) shall interpret and apply
these rules insofar as they relate to the arbitrator's powers
and duties. All decisions of the arbitration panel shall be
decided by a majority vote.
7. Funding of Defense and Payment of Claims Pending Resolution
of Dispute
During the course of the administrative and arbitration proceedings
provided for herein, the Authority may fund any defense to the
claim against the Member Agency and any settlement of that
claim approved by the Member Agency, subject to the right of the
Authority to recover from the Member Agency any amounts paid
out by the Authority for such defense or settlement which are
finally determined not to be owed by the Authority under this
Memorandum, with interest thereon at the legal rate of interest on
judgments.
8. Effect of Arbitration Decisions
All decisions on appeals, whether by an administrative committee
pursuant to paragraph (5) above or by an arbitration panel, shall be
final and binding upon the parties.
Liability – Section 1 – Coverage (MOLC-100119) Page 25 of 26
9. Not Applicable to Excess Carriers
These arbitration provisions are intended to bind only the Authority
and its Member Agencies. They are not intended to be binding
upon any of the Authority's re-insurers or excess carriers.
G. OTHER COVERAGES
The coverage afforded in this Memorandum shall be excess of, and shall
not contribute with, any valid and collectible insurance or self-insurance or
other coverage, other than any excess, or umbrella insurance, or
reinsurance procured by the Authority or the Member Agency.
Any and all payments made by others on behalf of the Member Agency
towards defense costs, settlement, or satisfaction of a claim or suit to
which this Memorandum applies, including but not limited to payments
made by any valid and collectible insurance or self-insurance or other
coverage but not including payments made by any excess insurance,
umbrella insurance or reinsurance, procured by the Authority or the
Member Agency, shall serve to satisfy the Authority’s liability for
ultimate net loss and shall be treated as though paid by the Authority
hereunder. Such payments shall not be considered “recoveries and
salvages collectible” under the definition of ultimate net loss set forth
under Section I. – Definitions of this Memorandum.
H. SUBROGATION
In the event of any payment under this Memorandum, the Authority shall
be subrogated to all the Covered Party's rights of recovery therefore
against any person or organization, and the Covered Party shall execute
and deliver instruments and papers and do whatever else is necessary to
secure such rights. The Covered Party shall do nothing after an
occurrence to prejudice such rights and shall do everything necessary to
secure such rights.
I. WITHDRAWAL/CANCELLATION
The Member Agency may withdraw from the Authority and cancel this
coverage only:
1. At the end of one of the Authority's Liability Program Coverage
Years;
Page 26 of 26 Liability – Section 1 – Coverage (MOLC-100119)
2. After three or more years following its first day of coverage by the
Authority's Liability Program; and
3. After twelve months' advance written notice of such intent to
withdraw is given by the Member Agency and received by the
Authority.
The Authority may cancel the Member Agency's participation in the
Authority's Liability Program upon a two-thirds vote at any duly
constituted Board of Directors' meeting of the Authority. However, any
canceled Member Agency shall be permitted a reasonable time to obtain
other basic liability coverage before such cancellation becomes effective.
COVERAGE SCHEDULE
FOR COVERAGE PERIOD 10/1/2019 - 10/1/2020
*SUBLIMITS:
$ 5,000,000 Terrorism
$ 30,000,000 Subsidence
$ 30,000,000 Lead
$ 35,000,000 Mold; Perfluoroalkyl and Polyfluoroalkyl (PFAS)
All coverage renews at 12:01 a.m. Standard Time at Roseville, California.
COVERAGE LIMIT CARRIER
$5,000,000* JPIA Pooled Layer
$5,000,001 to $10M Safety National Casualty Corporation
$10,000,001 to $20M Markel Global Reinsurance Company/Great American Insurance Company
$20,000,001 to $25M Everest Reinsurance Company
$25,000,001 to $30M* Lloyd’s of London (Brit Syndicate 2987)
$30,000,001 to $35M* Great American E&S Insurance Company
$35,000,001 to $40M* Hallmark Specialty Insurance Company
$40,000,001 to $45M Illinois Union Insurance Company
$45,000,001 to $50M Allied World National Assurance Company
$50,000,001 to $55M General Security Indemnity Company of Arizona
Page i of v Liability - Section 1 - Coverage (MOLC-100119)
CRISIS MANAGEMENT COVERAGE CRISIS
MANAGEMENT COVERAGE ADDENDUM TO THE
MEMORANDUM OF LIABILITY COVERAGE
NOTICE: Words that appear in bold, except for headings, have special meaning and
are defined either in this Addendum or in the Memorandum of Liability Coverage to
which it is attached.
COVERAGE LIMITS:
Coverage A: Crisis Response $ 250,000 Each Crisis Management Event
and annual aggregate
Coverage B: Crisis Communication $ 50,000 Each Crisis Management Event
and annual aggregate
COVERAGE AGREEMENT:
A.Advancement of Crisis Response Costs during a Crisis
Management Event
The Authority will pay on behalf of the Member Agency those Crisis
Response Costs that may be associated with damages covered by
the Memorandum arising from a Crisis Management Event that first
commences during the Coverage Period, up to the amount of the
Crisis Response Coverage Limit.
The Authority may advance the Crisis Response Costs that may be
associated with damage covered by the Memorandum directly to third
parties.
B.Crisis Communication Expenses
The Authority will pay on behalf of the Member Agency the costs of
Crisis Communication Services arising from a Crisis Management
Event that first commences during the Coverage Period, up to the
amount of the Crisis Communication Coverage Limit.
C.A Crisis Management Event shall first commence at the time during
the Coverage Period when a Key Executive of the Member Agency
first becomes aware of an Occurrence that gives rise to a Crisis
Management Event and shall end at the earliest of the time that the
Authority determines that a crisis no longer exists or when the Crisis
Response Coverage Limit and/or the Crisis Communication
Coverage Limit, whichever applies, has been exhausted.
Liability - Section 1 - Coverage (MOLC-100119) Page ii of v
LIMITS OF COVERAGE:
A.The Crisis Response Coverage Limit is the most the Authority will
pay for all Crisis Response Costs under this Addendum, regardless
of the number of Crisis Management Events first commencing during
the Coverage Period.
B.The Crisis Communication Coverage Limit is the most the
Authority will pay for all Crisis Communication Costs under this
Addendum, regardless of the number of Crisis Management Events
first commencing during the Coverage Period.
C.The Authority will have no obligation to advance Crisis Response
Costs or to pay Crisis Communication Costs from the earliest of the
time that the Authority determines that a crisis no longer exists or
when the Crisis Response Coverage Limit and/or the Crisis
Communication Coverage Limit, whichever applies, has been
exhausted.
WORDS AND PHRASES WITH SPECIAL MEANING (DEFINITIONS):
A.Crisis Communication Coverage Limit means the limit shown for
Coverage B: Crisis Communication in the Coverage Limits of this
Addendum.
B.Crisis Communication Firm means any public relations firm
approved by the Authority that is hired by the Member Agency to
perform Crisis Communication Services in connection with the
Crisis Management Event.
C.Crisis Communication Services means those services performed by
a Crisis Communication Firm in advising the Member Agency on
minimizing potential harm to the Member Agency from a covered
Crisis Management Event by maintaining and restoring public
confidence in Member Agency.
D.Crisis Communication Costs means the following amounts incurred
during a Crisis Management Event:
1.Amounts for the reasonable and necessary fees and expenses
incurred by a Crisis Communication Firm in the performance
of Crisis Communication Services for a Member Agency
solely arising from a covered Crisis Management Event; and
Page iii of v Liability – Section 1 – Coverage (MOLC-100119)
2.Amounts for reasonable and necessary printing, advertising,
mailing of materials, or travel by directors, officers, employees
or agents of a Member Agency or a Crisis Communication
Firm incurred at the direction of a Crisis Communication
Firm, solely arising from a covered Crisis Management
Event.
E.Crisis Management Event means an Occurrence that, in the good
faith opinion of a Key Executive of the Member Agency and with the
concurrence of the Authority, in absence of Crisis Communication
Services, has been or may reasonably be associated with:
1.damages covered by the Memorandum; and
2.significant adverse regional or national news media coverage
Crisis Management Event shall include, without limitation, man-made
disasters such as explosions, chemical releases, major vehicle,
equipment or construction accidents resulting in multiple deaths,
burns, dismemberment, traumatic brain injury, permanent paralysis, or
contamination of food, drink or pharmaceuticals, or wide-spread
property damage due to infrastructure failure.
F.Crisis Response Costs means the following reasonable and
necessary expenses incurred during a Crisis Management Event
directly caused by a Crisis Management Event, provided that such
expenses have been pre-approved by the Authority and may be
associated with damages that would be covered by the
Memorandum.
1.Medical expenses;
2.Funeral expenses;
3.Psychological counseling;
4.Travel expenses;
5.Temporary living expenses;
6.Expenses to secure the scene of a Crisis Management Event;
and
7.Any other expenses pre-approved by the Authority.
Liability - Section 1 - Coverage (MOLC-100119) Page iv of v
Crisis Response Costs will not include defense costs or Crisis
Communication Costs.
G.Crisis Response Coverage Limit means the limit shown for
Coverage A: Crisis Response in the Coverage Limits of this
Addendum.
H.Key Executive means the General Manager, Chief Executive Officer,
Chief Operating Officer, Chief Financial Officer, Board President, or
General Counsel of the Member Agency. A Key Executive also
means any other person designated as such by the Member
Agency’s Board of Directors.
EXCLUSIONS:
This coverage will not apply to any Crisis Response Costs or Crisis
Communication Costs in connection with a Crisis Management Event:
A.arising out of, based upon or attributable to any acts alleged, or to the
same or related acts alleged or contained, in any crisis, claim or Suit
that has been reported, or in any circumstances where notice has
been given under any coverage of which this Memorandum is a
renewal or replacement or which it may succeed in time; or
B.arising out, based upon or attributable to any pending or prior crisis,
claim or Suit as of the inception date of this Memorandum.
CONDITIONS:
A.The Member Agency must report any Crisis Management Event to
the Authority within twenty-four (24) hours of the time that a Key
Executive first becomes aware of an Occurrence that gives rise to a
Crisis Management Event to be eligible for the advancement of
Crisis Response Costs or the payment of any Crisis
Communication Costs.
Notice of a Crisis Management Event may be given by calling the
Authority at 1-800-231-5742. Written notice shall be given as soon as
soon as practicable thereafter and should include:
1.how, when and where the Crisis Management Event is taking
or took place;
2.the names, addresses and contact information of any injured
parties and any witnesses; and
Page v of v Liability – Section 1 – Coverage (MOLC-100119)
3. the nature and location of any injury or damage arising out of
the Crisis Management Event.
B. Any payments by the Authority for Crisis Communication Costs or
advancement of Crisis Response Costs under this Addendum will
not:
1. be deemed to be a determination of the Member Agency’s
liability with respect to any claim or Suit that results from a
Crisis Management Event; and
2. create any duty for the Authority to defend any Suit or to
investigate any claim arising from a Crisis Management
Event, nor any coverage obligations under the Memorandum.
All other terms, definitions, conditions and exclusions of the Memorandum remain
unchanged.
Alliant Insurance Services, Inc. CA License No. 0C36861 www.alliant.com
Association of California
Water Agencies/JPIA
July 1, 2019 – July 1, 2020
Alliant Property Insurance Program (APIP)
Binder of Insurance
Presented by:
Seth Cole
Senior Vice President
Rob Lowe
Vice President
Andrea Ferry, ARM
Account Manager - Lead
2019-2020 Alliant Property Insurance Program (APIP) Summary of Bound Changes Page 1 of 4
APIP SUMMARY OF BOUND CHANGES
THE FOLLOWING ITEMS ARE CHANGES FOR THE 2019-2020 POLICY TERM
Coverage 2018-2019 2019-2020 Bound Changes
Flood A&V sub-
limit coverage
wording
Per Occurrence and in the Annual Aggregate
for all locations in Flood Zones A & V
(inclusive of all 100 year exposures). This
Sub-limit does not increase the specific flood
limit of liability for those Named Insured(s)
that purchase this optional dedicated
coverage.
Per Occurrence and in the Annual Aggregate for
scheduled locations in Flood Zones A & V
(inclusive of all 100 year exposures). This Sub-
limit does not increase the specific flood limit of
liability for those Named Insured(s) that purchase
this optional dedicated coverage.
Combined
Business
Interruption
Combined Business Interruption, Rental
Income and Tax Revenue amd Tuition
Income (and related fees). However, if
specific values for such coverage have not
been reported as part of the Named Insured's
schedule of values held on file with Alliant
Insurance Services Inc., this sub-limit amount
is limited to $500,000 per Named Insured
subject to maximum of $2,500,000 Per
Occurrence for Business Interruption, Rental
Income and Tuition Income combined, and
$5,000,000 Per Occurrence for Tax Revenue
Interruption. Coverage for power generating
plants is excluded, unless otherwise
specified.
Combined Business Interruption, Rental Income
and Tuition Income (and related fees). However, if
specific values for such coverage have not been
reported as part of the Named Insured's schedule
of values held on file with Alliant Insurance
Services Inc., this sub-limit amount is limited to
$500,000 per Named Insured subject to maximum
of $2,500,000 Per Occurrence, Per Declaration for
Business Interruption, Rental Income and Tuition
Income combined. Coverage for power generating
plants is excluded, unless otherwise specified.
Tax Revenue
sub-limit
Combined Business Interruption, Rental
Income and Tax Revenue amd Tuition
Income (and related fees). However, if
specific values for such coverage have not
been reported as part of the Named Insured's
schedule of values held on file with Alliant
Insurance Services Inc., this sub-limit amount
is limited to $500,000 per Named Insured
subject to maximum of $2,500,000 Per
Occurrence for Business Interruption, Rental
Income and Tuition Income combined, and
$5,000,000 Per Occurrence for Tax Revenue
Interruption. Coverage for power generating
plants is excluded, unless otherwise
specified.
Coverage moved to it’s own specific field:
$ 3,000,000 Tax Revenue Interruption – Per Policy
Provisions. However, if specific values for such
coverage have not been reported as part of the
Named Insured’s schedule of values held on file
with Alliant Insurance Services, Inc., this sub-limit
amount is limited to $1,000,000 Per Occurrence –
Per Policy Provisions.
Miscellaneous
Unnamed
Locations
Miscellaneous Unnamed Locations for
existing Named Insured's Excluding
Earthquake coverage for Alaska and
California Named Insureds. If Flood coverage
is purchased for all scheduled locations, this
extension will extend to include Flood
coverage for any location not situated in
Flood Zones A or V.
Miscellaneous Unnamed Locations for existing
Named Insured's excluding Earthquake coverage
for Alaska and California locations. If Flood
coverage is purchased for scheduled locations, this
extension will extend to include Flood coverage for
any location not situated in Flood Zones A or V
2019-2020 Alliant Property Insurance Program (APIP) Summary of Bound Changes Page 2 of 4
APIP SUMMARY OF BOUND CHANGES CONTINUED
THE FOLLOWING ITEMS ARE CHANGES FOR THE 2019-2020 POLICY TERM
Coverage 2018-2019 2019-2020 Bound Changes
Unscheduled
Landscaping
sub-limit
wording
Unscheduled Landscaping, tees, sand traps,
greens, athletic fields and artificial turf and
further subject to $25,000 / 25 gallon
maximum per item.
Unscheduled Landscaping, tees, sand traps,
greens, athletic fields and artificial turf and further
subject to $25,000 / 25 gallon maximum per item
for existing Named Insureds excluding Earthquake
coverage for Alaska and California locations. If
Flood coverage is purchased for scheduled
locations, this extension will extend to include
Flood coverage for any location not situated in
Flood Zones A or V.
Unscheduled
Infrastructure
Unscheduled Tunnels, Bridges, Dams,
Catwalks (except those not for public use),
Roadways, Highways, Streets, Sidewalks,
Culverts, Street Lights and Traffic Signals
unless a specific value has been declared
(excluding coverage for the peril of
Earthquake Shock, and excluding Federal
Emergency Management Agency (FEMA)
and/or Office of Emergency Services (OES)
declared disasters, providing said declaration
provides funding for repairs).
Unscheduled infrastructure including but not limited
to Tunnels, Bridges, Dams, Catwalks (except those
not for public use), Roadways, Highways, Streets
(including guardrails), Sidewalks (including
guardrails), Culverts, Channels, Levees, Dikes,
Berms, Embankments, Street Lights, Traffic
Signals, Meters, Roadway or Highway Fencing, and
all similar property unless a specific value has been
declared. Unscheduled infrastructure coverage is
excluded for the peril of Earthquake and excluded
for Federal Emergency Management Agency
(FEMA) and/or Office of Emergency Services (OES)
declared disasters, providing said declaration
provides funding for repairs).
Primary
Terrorism
Per Named Insured Per Occurrence subject
to $200,000,000 Annual Aggregate of
Declarations 1-14, 18-22, 25-30 and 32-34
combined as respects Property Damage,
Business Interruption, Rental Income and
Extra Expense Combined for Terrorism
(Primary Layer).
Per Named Insured Per Occurrence subject to
$200,000,000 Annual Aggregate of Declarations 1-
14, 18-30 and 32-34 combined as respects Property
Damage, Business Interruption, Rental Income and
Extra Expense Combined for Terrorism (Primary
Layer).
Excess
Terrorism Limits
Per Occurrence, All Named Insureds
combined in Declarations 1-14, 18-21, 25-30
and 32-34 for Terrorism (Excess Layer)
subject to;
Per Occurrence, All Named Insureds combined in
Declarations 1-14, 18-21, 23-30 and 32-34 for
Terrorism (Excess Layer) subject to;
Excess
Terrorism
Aggregate
Annual Aggregate shared by all Named
Insureds combined in Declarations 1-14, 18-
21, 25-30 and 32-34, as respects Property
Damage, Business Interruption, Rental
Income and Extra Expense combined for
Terrorism (Excess Layer).
Annual Aggregate shared by all Named Insureds
combined in Declarations 1-14, 18-21, 23-30 and
32-34, as respects Property Damage, Business
Interruption, Rental Income and Extra Expense
combined for Terrorism (Excess Layer).
Pollution Policy Summary of Bound changes is provided with the Pollution Coverage document for those who
request the coverage.
Cyber Policy Summary of Bound changes is provided with the Cyber Coverage for those who request the
coverage.
2019-2020 Alliant Property Insurance Program (APIP) Summary of Bound Changes Page 3 of 4
Master Policy Form Wording Bound Changes
Coverage 2018-2019 2019-2020 Bound
Policy Term July 1, 2018 to July 1,2019 July 1, 2019 to July 1,2020
Section I, E., 2.
g.
Unscheduled Landscaping, tees, sand
traps, greens, athletic fields and artificial turf
if specific values for such items have not
been reported as part of the Named
Insured(s) schedule of values held on file
with Alliant Insurance Services, Inc.;
Unscheduled Landscaping, tees, sand traps,
greens, athletic fields and artificial turf if specific
values for such items have not been reported as
part of the Named Insured(s) schedule of values
held on file with Alliant Insurance Services, Inc.
This coverage extension does not apply to the peril
of Earthquake in the states of California, or Alaska.
If Flood coverage is purchased for scheduled
locations, this extension will extend to include
Flood coverage for any location not situated in
Flood Zones A or V;
Section I, E., 2.
o.
Unscheduled Tunnels, bridges, dams,
catwalks (except those not for public use),
roadways, highways, streets, sidewalks,
culverts, street lights and traffic signals
unless specific values for such items have
been reported as part of a Named Insured(s)
schedule of values held on file in the offices
of Alliant Insurance Services, Inc. excluding
Federal Emergency Management Agency
(F.E.M.A.) and/or any State Office of
Emergency Services (O.E.S.) declared
disasters, providing said declaration provides
funding for repairs;
Unscheduled infrastructure including but not limited
to Tunnels, bridges, dams, catwalks (except those
not for public use), roadways, highways, streets
(including guardrails), sidewalks (including
guardrails), culverts, channels, levees, dikes,
berms, embankments, street lights,traffic signals,
meters, roadway or highway fencing, and all
similar property unless specific values for such
items have been reported as part of a Named
Insured(s) schedule of values held on file in the
offices of Alliant Insurance Services, Inc.
Unscheduled infrastructure coverage is excluded
for the peril of Earthquake, and for Federal
Emergency Management Agency (F.E.M.A.)
and/or any State Office of Emergency Services
(O.E.S.) declared disasters, providing said
declaration provides funding for repairs;
2019-2020 Alliant Property Insurance Program (APIP) Summary of Bound Changes Page 4 of 4
Master Policy Form Wording Bound Changes Continued
Coverage 2018-2019 2019-2020 Bound
Section II, B. 19
The Company retains the right to determine the
acceptability of all such property(ies) once it has
been reported. Additional premium will be
calculated from the date of acquisition.
Replacing complete sentence with:
After the reporting of a location added under
automatic acquisition, the Company retains the
right to determine acceptability of all such
property(ies). Additional premium will be
calculated from the date of acquisition, if values
are in excess of USD25,000,000.
Section II, B. 20
Coverage is extended to include property at
locations (including buildings or structures,
owned, occupied or which the Named Insured is
obligated to maintain insurance) located within
the territorial limitations set by this policy.
Coverage provided by this clause is limited to
any sub-limit noted on the Declaration Page
attached to this form, and by terms and
conditions of this policy form. This coverage
extension does not apply to the peril of
Earthquake Shock in the states of California, or
Alaska. If Flood coverage is purchased for all
scheduled locations, this extension will extend
to include Flood coverage for any location not
situated in Flood Zones A or V.
Coverage is extended to include property at
locations (including buildings or structures,
owned, occupied or which the Named Insured is
obligated to maintain insurance) located within
the territorial limitations set by this policy.
Coverage provided by this clause is limited to
any sub-limit noted on the Declaration Page
attached to this form, and by terms and
conditions of this policy form. This coverage
extension does not apply to the peril of
Earthquake Shock in the states of California, or
Alaska. If Flood coverage is purchased for all
scheduled locations, this extension will extend to
include Flood coverage for any location not
situated in Flood Zones A or V.
Section II, C. 8.
Unscheduled tunnels, bridges, dams, catwalks
(except those not for public use), roadways,
highways, streets, sidewalks, culverts,
streetlights, and traffic signals, excess of the
sub-limit terms provided on the Declaration
Page.
Deleted in its entirety
Section III, B. 5.
(3rd paragraph)
If the Named Insured has reported Tax Revenue
Interruption values for which premium has been
charged, such loss recovery after deductible shall
be limited to whichever is the least of:
1. The sub-limit insured on the Policy;
2. The actual loss sustained;
3. The difference in amount between 97.5% of the
anticipated revenue and the actual total revenue
after the loss.
If the Named Insured has not reported Revenue
Interruption values, such loss recovery after
deductible shall be limited to whichever is the least
of:
1. The actual loss sustained;
2. USD5,000,000 per occurrence
If the Named Insured has reported Tax Revenue
Interruption values for which premium has been
charged, such loss recovery after deductible shall
be limited to whichever is the least of:
1. USD3,000,000 per occurrence
2. The actual loss sustained;
3. The difference in amount between 97.5% of the
anticipated revenue and the actual total revenue
after the loss.
If the Named Insured has not reported Tax
Revenue Interruption values, such loss recovery
after deductible shall be limited to whichever is the
least of:
1. The actual loss sustained;
2. USD1,000,000 per occurrence
Form Letters3
EVIDENCE OF PROPERTY INSURANCE ISSUE DATE (MM/DD/YY)
07/01/19
THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE, AND
CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY.
PRODUCER
ALLIANT INSURANCE SERVICES, INC.
100 PINE ST. 11TH FLOOR
SAN FRANCISCO, CA 94111-2711
PH (415) 403-1400 / FAX (415) 402-0773
LICENSE NO. 0C36861
COMPANY
VARIOUS PER ATTACHED SCHEDULE
CODE SUB-CODE
INSURED
ALLIANT PROPERTY INSURANCE PROGRAM (APIP)
ASSOCIATION OF CALIFORNIA WATER AGENCIES/JPIA
2100 PROFESSIONAL DRIVE
ROSEVILLE, CA 95661
EVIDENCE NUMBER
APIP1920
POLICY NUMBER
017471590/06 (Dec 32)
EFFECTIVE DATE (MM/DD/YY)
07/01/19
EXPIRATION DATE (MM/DD/YY)
07/01/20
CONT. UNTIL
TERMINATED
IF CHECKED
THIS REPLACES PRIOR EVIDENCE DATED:
PROPERTY INFORMATION
LOCATION / DESCRIPTION
PENDING RECEIPT OF COMPANY POLICY(IES), THIS DOCUMENTATION IS PROVIDED AS EVIDENCE OF PROPERTY AND
BOILER & MACHINERY INSURANCE COVERAGE FOR LOCATIONS ON FILE WITH ALLIANT INSURANCE SERVICES.
COVERAGE INFORMATION
COVERAGE / PERILS / FORMS / AMOUNT OF INSURANCE & DEDUCTIBLE
“ALL RISK” OF DIRECT PHYSICAL LOSS OR DAMAGE AND ALL EXTENSIONS AND SUBLIMITS OF COVERAGE PER PEPIP
MANUSCRIPT POLICY FORM. SUBJECT TO POLICY TERMS, CONDITIONS AND EXCLUSIONS.
LIMITS & DEDUCTIBLE ATTACHED FOR THE FOLLOWING:
PROPERTY
COVERAGE
BOILER & MACHINERY
COVERAGE
REMARKS (INCLUDING SPECIAL CONDITIONS)
CANCELLATION
SEE ATTACHED
ADDITIONAL INTEREST
NAME AND ADDRESS NATURE OF INTEREST
MORTGAGEE ADDITIONAL INSURED
EVIDENCE OF COVERAGE
LOSS PAYEE X (OTHER)
EVIDENCE OF COVERAGE
SIGNATURE OF AUTHORIZED AGENT OF COMPANY
X
X
2019-2020 Alliant Property Insurance Program (APIP) Property Evidence Attachment Page 1 of 7
Association of California Water Agencies/JPIA
ALLIANT INSURANCE SERVICES, INC.
ALLIANT PROPERTY INSURANCE PROGRAM (APIP)
PROPERTY EVIDENCE ATTACHMENT
TYPE OF INSURANCE: Insurance Reinsurance
NAMED INSURED: Association of California Water Agencies/JPIA
DECLARATION: 33-Public Utilities 1
POLICY PERIOD: July 1, 2019 to July 1, 2020
POLICY NUMBER: 017471590/06 (Dec 32)
COMPANIES: See Attached List of Companies
TOTAL INSURED
VALUES:
7,832,712,889 as of June 25, 2019
COVERAGES & LIMITS:
$ 450,000,000 Excess of 50,000,000 Primary Policy. Below Sub-Limits are
Inclusive of Primary. Per Occurrence: all Perils, Coverages
(subject to policy exclusions) and all Named Insureds (as
defined in the policy) combined, per Declaration, regardless of
the number of Named Insureds, coverages, extensions of
coverage, or perils insured, subject to the following per
occurrence and/or aggregate sub-limits as noted below.
Not Covered Flood Limit - Per Occurrence and in the Annual Aggregate (for
those Named Insured(s) that purchase this optional dedicated
coverage).
Not Covered Per Occurrence and in the Annual Aggregate for scheduled
locations in Flood Zones A & V (inclusive of all 100 year
exposures). This Sub-limit does not increase the specific flood
limit of liability for those Named Insured(s) that purchase this
optional dedicated coverage.
Not Covered Earthquake Shock - Per Occurrence and in the Annual
Aggregate (for those Named Insured(s) that purchase this
optional dedicated coverage).
$ 100,000,000 Combined Business Interruption, Rental Income and Tuition
Income (and related fees). However, if specific values for such
coverage have not been reported as part of the Named Insured's
schedule of values held on file with Alliant Insurance Services,
Inc., this sub-limit amount is limited to $500,000 per Named
Insured subject to maximum of $2,500,000 Per Occurrence, Per
Declaration for Business Interruption, Rental Income and Tuition
Income combined. Coverage for power generating plants is
excluded, unless otherwise specified.
$ 50,000,000 Extra Expense.
2019-2020 Alliant Property Insurance Program (APIP) Property Evidence Attachment Page 2 of 7
Association of California Water Agencies/JPIA
Not Covered Miscellaneous Unnamed Locations for existing Named Insured's
excluding Earthquake coverage for Alaska and California
locations. If Flood coverage is purchased for scheduled
locations, this extension will extend to include Flood coverage for
any location not situated in Flood Zones A or V.
COVERAGES & LIMITS:
(continued)
180 Days Extended Period of Indemnity
See Policy
Provisions
$25,000,000 Automatic Acquisition up to $100,000,000 or a
Named Insured's Policy Limit of Liability if less than $100,000,000
for 120 days excluding licensed vehicles for which a sub-limit of
$10,000,000 applies per policy Automatic Acquisition and
Reporting Condition. Additionally a sub-limit of $2,500,000
applies for Tier 1 Wind Counties, Parishes and Independent Cities
for 60 days for the states of Virginia, North Carolina, South
Carolina, Georgia, Alabama, Mississippi, Louisiana, Texas and/or
situated anywhere within the states of Florida and Hawaii. The
peril of EQ is excluded for the states of Alaska and California. If
Flood coverage is purchased for all scheduled locations, this
extension will extend to include Flood coverage for any location
not situated in Flood Zones A or V.
$ 1,000,000 Unscheduled Landscaping, tees, sand traps, greens, athletic
fields and artificial turf and further subject to $25,000 / 25 gallon
maximum per item for existing Named Insureds excluding
Earthquake coverage for Alaska and California locations. If
Flood coverage is purchased for scheduled locations, this
extension includes Flood coverage for any location not situated
in Flood Zones A or V. $ 5,000,000 or 110% of the scheduled values, whichever is greater, for
Scheduled Landscaping, tees, sand traps, greens, athletic fields
and artificial turf and further subject to $25,000 / 25 gallon
maximum per item.
$ 50,000,000 Errors & Omissions - This extension does not increase any more
specific limit stated elsewhere in this policy or Declarations.
$ 25,000,000 Course of Construction and Additions (including new) for projects
with completed values not exceeding the sub-limit shown. $ 2,500,000 Money & Securities for named perils only as referenced within
the policy.
$ 2,500,000 Unscheduled Fine Arts.
$ 250,000 Accidental Contamination per occurrence and annual aggregate
per Named Insured with $500,000 annual aggregate for all
Named Insureds per Declaration.
2019-2020 Alliant Property Insurance Program (APIP) Property Evidence Attachment Page 3 of 7
Association of California Water Agencies/JPIA
$ 750,000 Unscheduled infrastructure including but not limited to Tunnels,
Bridges, Dams, Catwalks (except those not for public use),
Roadways, Highways, Streets (including guardrails), Sidewalks
(including guardrails), Culverts, Channels, Levees, Dikes,
Berms, Embankments, Street Lights, Traffic Signals, Meters,
Roadways or Highway Fencing, and all similar property unless a
specific value has been declared. Unscheduled infrastructure
coverage is excluded for the peril of Earthquake and excluded
for Federal Emergency Management Agency (FEMA) and/or
Office of Emergency Services (OES) declared disasters,
providing said declaration provides funding for repairs.
COVERAGES & LIMITS:
(continued)
$ 50,000,000 Increased Cost of Construction due to the enforcement of
building codes/ ordinance or law (includes All Risk and Boiler &
Machinery).
$ 25,000,000 Transit.
$ 2,500,000 Unscheduled Animals; not to exceed $50,000 per Animal, per
Occurrence.
$ 2,500,000 Unscheduled Watercraft up to 27 feet.
Not Covered Per Occurrence for Off Premises Vehicle Physical Damage.
$ 25,000,000 Off Premises Services Interruption including Extra Expense
resulting from a covered peril at non-owned/operated locations.
$ 5,000,000 Per Occurrence Per Named Insured subject to an Annual
Aggregate of $10,000,000 for Earthquake Shock on Licensed
Vehicles, Unlicensed Vehicles, Contractor's Equipment and Fine
Arts combined for all Named Insured(s) in this Declaration
combined that do not purchase optional dedicated Earthquake
Shock coverage, and/or where specific values for such items are
not covered for optional dedicated Earthquake Shock coverage
as part of the Named Insured's schedule of values held on file
with Alliant Insurance Services, Inc..
$ 5,000,000 Per Occurrence Per Named Insured subject to an Annual
Aggregate of $10,000,000 for Flood on Licensed Vehicles,
Unlicensed Vehicles, Contractor's Equipment and Fine Arts
combined for all Named Insured(s) in this Declaration combined
that do not purchase optional dedicated Flood coverage, and/or
where specific values for such items are not covered for optional
dedicated Flood coverage as part of the Named Insured's
schedule of values held on file with Alliant Insurance Services,
Inc..
$ 3,000,000 Contingent Business Interruption, Contingent Extra Expense,
Contingent Rental Values and Contingent Tuition Income
separately.
$ 3,000,000 Tax Revenue Interruption – Per Policy Provisions. However, if
specific values for such coverage have not been reported as part
of the Named Insured’s schedule of values held on file with
Alliant Insurance Services, Inc., this sub-limit amount is limited to
$1,000,000 Per Occurrence – Per Policy Provisions.
2019-2020 Alliant Property Insurance Program (APIP) Property Evidence Attachment Page 4 of 7
Association of California Water Agencies/JPIA
$ 500,000 Jewelry, Furs, Precious Metals and Precious Stones Separately.
$ 1,000,000 Claims Preparation Expenses.
$ 50,000,000 Expediting Expenses.
$ 1,000,000 Personal Property Outside of the USA.
Not Covered Per Occurrence Per Declaration Upgrade to Green Coverage
subject to the lesser of, the cost of upgrade, an additional 25% of
the applicable limit of liability shown in the schedule of values or
this sub limit.
$ 500,000 Per Occurrence and Annual Aggregate per named insured for
Communicable Disease subject to an APIP Program aggregate
of $10,000,000 for all declarations combined except Hospital
declarations.
$ 100,000 Per Occurrence while in Storage and In Transit coverage subject
to $10,000 Deductible for Unmanned Aircraft as more fully
defined in the Policy. Not Covered while in Flight.
$ 100,000 Per Occurrence with a $1,000,000 Annual Aggregate per
Declaration for Mold/Fungus Resultant Damage as more fully
defined in the policy.
VALUATION: • Repair or Replacement Cost
• Actual Loss Sustained for Time Element Coverages
• Contractor’s Equipment/Vehicles either Replacement Cost or Actual Cash
Value as declared by each insured. If not declared, valuation will default to
Actual Cash Value
EXCLUSIONS
(Including but not
limited to):
• Seepage & Contamination - unless otherwise provided by the Pollution Liability
Coverage per the Summary attached. If, insured purchases such coverage.
• Cost of Clean-up for Pollution - unless otherwise provided by the Pollution
Liability Coverage per the Summary attached. If, insured purchases such
coverage.
• Mold - as more fully described in the Master Policy Wording or otherwise
provided when Pollution Liability Coverage is purchased, and as defined in the
coverage Summary.
Deductibles: If two or more deductible amounts provided in the Declaration
Page apply for a single occurrence the total to be deducted shall not exceed
the largest per occurrence deductible amount applicable. (The Deductible
amounts set forth below apply Per Occurrence unless indicated otherwise).
“ALL RISK”
DEDUCTIBLE:
Excess Coverage only. $100,000 All Risk Deductible in Primary Placement Per
Occurrence, which will apply in the event a more specific
deductible is not applicable to a loss.
2019-2020 Alliant Property Insurance Program (APIP) Property Evidence Attachment Page 5 of 7
Association of California Water Agencies/JPIA
DEDUCTIBLES FOR
SPECIFIC PERILS
AND COVERAGES:
Not Covered Per Occurrence for Flood Zones A & V (inclusive of all 100 year
exposures).
Not Covered All Flood Zones Per Occurrence excluding Flood Zones A & V.
Not Covered Earthquake Shock: If the stated deductible is a flat dollar
amount, the deductible will apply on a Per Occurrence basis,
unless otherwise stated. If the stated deductible is on a
percentage basis, the deductible will apply Per Occurrence on a
Per Unit basis, as defined in the policy form, subject to the
minimum deductible per occurrence.
$ 1,000 Per Occurrence for Specially Trained Animals.
DEDUCTIBLES FOR
SPECIFIC PERILS
AND COVERAGES
(continued):
$ 500,000 Per Occurrence for Unscheduled infrastructure including but not
limited to Tunnels, Bridges, Dams, Catwalks (except those not
for public use), Roadways, Highways, Streets (including
guardrails), Sidewalks (including guardrails), Culverts, Channels,
Levees, Dikes, Berms, Embankments, Street Lights, Traffic
Signals, Meters, Roadways or Highway Fencing, and all similar
property unless a specific value has been declared.
Unscheduled infrastructure coverage is excluded for the peril of
Earthquake and excluded for Federal Emergency Management
Agency (FEMA) and/or Office of Emergency Services (OES)
declared disasters, providing said declaration provides funding
for repairs.
$ 10,000 Per Vehicle or Item for Licensed Vehicles, Unlicensed Vehicles
and Contractor's Equipment subject to $100,000 Maximum Per
Occurrence, Per Named Insured for the peril of Earthquake for
Named Insured(s) who do not purchase dedicated Earthquake
limits.
$ 50,000 Per Occurrence Per Named Insured for this Declaration for Fine
Arts for the peril of Earthquake for Named Insured(s) who do not
purchase dedicated Earthquake limits.
$ 10,000 Per Vehicle or Item for Licensed Vehicles, Unlicensed Vehicles
and Contractor's Equipment subject to $100,000 Maximum Per
Occurrence, Per Named Insured for the peril of Flood for Named
Insured(s) who do not purchase dedicated Flood limits.
$ 50,000 Per Occurrence Per Named Insured for this Declaration for Fine
Arts for the peril of Flood for Named Insured(s) who do not
purchase dedicated Flood limits.
24 Hour Waiting Period for Service Interruption for All Perils and
Coverages.
2.5% of Annual Tax Revenue Value per Location for Tax Interruption.
Not Covered Per Occurrence for Off Premises Vehicle Physical Damage. If
Off-Premises coverage is included/purchased, the stated
deductible will apply to vehicle physical damage both on and off-
premises on a Per Occurrence basis, unless otherwise stated. If
Off-Premises coverage is not included, On-Premises/In-Yard
coverage is subject to the All Risk (Basic) deductible.
2019-2020 Alliant Property Insurance Program (APIP) Property Evidence Attachment Page 6 of 7
Association of California Water Agencies/JPIA
Not Covered Per Occurrence for Contractor's Equipment.
SPECIAL TERMS AND
CONDITIONS:
It is understood and agreed that not withstanding anything contained herein to the contrary the following shall apply
to this Policy:
SPECIAL TERMS 1: The following wording applies to all limits and sub-limits contained herein.
The Company's limit of liability in any one occurrence under this policy, after deduction
of the Total Underlying Insurance Limit of $50,000,000 and any applicable
deductible(s) or Self-Insured Retention shall not exceed:
The Company's 100 % of $450,000,000 Policy Limit in any one occurrence. Sub-limits
of coverage are inclusive of Primary 50M.
Not Applicable Special Terms Limit
Not Applicable Special Terms Deductible
SPECIAL TERMS 2: The Terrorism coverage provided under this policy is excess of 100,000,000 per
Occurrence, 200,000,000 per Aggregate Primary Terrorism policy placed outside of
APIP.
Not Applicable Special Terms Limit
Not Applicable Special Terms Deductible
SPECIAL TERMS 3: For El Dorado Irrigation District, there is No Coverage for dams, tunnels, bridges,
flumes, canals, and power generators.
Not Applicable Special Terms Limit
Not Applicable Special Terms Deductible
SPECIAL TERMS 4: Unscheduled Property is hereby Excluded from Miscellaneous Unnamed Locations
coverage, Errors & Omissions coverage, Business Interruption coverage, and Tax
Revenue Interruption coverage.
Not Covered Special Terms Limit
Not Applicable Special Terms Deductible
The following stand-alone coverages are provided by the APIP program but are not covered in the Limit of
Liability or the Sub-Limits of Liability above or attached to the Master Policy Form Wording. Carriers
providing these coverages are included in the Schedule of Carriers.
Excess Coverage Only See Special Terms Per Named Insured Per Occurrence
subject to $200,000,000 Annual Aggregate of Declarations 1-14,
18-30 and 32-34 combined as respects Property Damage,
Business Interruption, Rental Income and Extra Expense
Combined for Terrorism (Primary Layer).
2019-2020 Alliant Property Insurance Program (APIP) Property Evidence Attachment Page 7 of 7
Association of California Water Agencies/JPIA
Excess Coverage only. $100,000 All Risk Deductible in Primary Placement Per
Occurrence Deductible for Primary Terrorism.
$ 600,000,000 Per Named Insured for Terrorism (Excess Layer) subject to;
$ 1,100,000,000 Per Occurrence, All Named Insureds combined in Declarations
1-14, 18-21, 23-30 and 32-34 for Terrorism (Excess Layer)
subject to;
$ 1,400,000,000 Annual Aggregate shared by all Named Insureds combined in
Declarations 1-14, 18-21, 23-30 and 32-34, as respects Property
Damage, Business Interruption, Rental Income and Extra
Expense combined for Terrorism (Excess Layer).
$ 500,000 Per Occurrence Deductible for Excess Terrorism (Applies only if
the Primary Terrorism Limit is exhausted).
$ 2,000,000 Information Security & Privacy Insurance with Electronic Media
Liability Coverage. See attached Cyber Coverage Document for
applicable Limits. (Cyber Liability) If, insured purchases such
coverage.
Not Covered Pollution Liability Insurance Coverage. See attached Pollution
Liability Insurance Coverage Document for applicable limits and
deductibles. If, insured purchases such coverage.
TERMS & CONDITIONS: 25% Minimum Earned Premium and cancellations subject to 10% penalty
Except Cyber Liability Premium is calculated on a pro-rata basis, unless there is a
claim in which case the premium is deemed fully earned. If, insured purchases such
coverage.
Except Pollution Liability Premium is 25% Earned at Inception, unless there is a
claim in which premium is deemed fully earned. If, insured purchases such coverage.
NOTICE OF
CANCELLATION:
90 days except 10 days for non-payment of premium
BROKER: ALLIANT INSURANCE SERVICES, INC.
License No. 0C36861
Seth Cole
Senior Vice President
Rob Lowe
Vice President
Andrea Ferry
Account Manager
Coverage outlined in this Evidence Attachment is subject to the terms and conditions set
forth in the policy. Please refer to policy for specific terms, conditions and exclusions.
2019-2020 Alliant Property Insurance Program (APIP) B&M Evidence Attachment Page 1 of 3
Association of California Water Agencies/JPIA
ALLIANT INSURANCE SERVICES, INC.
ALLIANT PROPERTY INSURANCE PROGRAM (APIP)
BOILER & MACHINERY EVIDENCE ATTACHMENT
NAMED INSURED: Association of California Water Agencies/JPIA
DECLARATION: 33-Public Utilities 1
POLICY PERIOD: July 1, 2019 to July 1, 2020
POLICY NUMBER: 017471590/06 (Dec 32)
COMPANIES: See Attached List of Companies
TOTAL INSURED VALUES: 7,832,712,889 as of June 25, 2019
COVERAGES & LIMITS: $ 50,000,000 Excess of 50,000,000 Boiler Explosion and Machinery
Breakdown, (for those Named Insureds that purchase this
optional dedicated coverage) as respects Combined
Property Damage and Business Interruption/Extra Expense
(Including Bond Revenue Interest Payments where Values
Reported and excluding Business Interruption for power
generating facilities unless otherwise specified). Limit
includes loss adjustment agreement and electronic
computer or electronic data processing equipment with the
following sub-limits:
Included Jurisdictional and Inspections.
$ 10,000,000 Per Occurrence for Service/Utility/Off Premises Power
Interruption.
Included Per Occurrence for Consequential Damage/Perishable
Goods/Spoilage.
$ 10,000,000 Per Occurrence for Electronic Data Processing Media and
Data Restoration.
$ 2,000,000 Per Occurrence, Per Named Insured and in the Annual
Aggregate per Declaration for Earthquake Resultant
Damage for Named Insureds who purchase Dedicated
Earthquake Coverage.
$ 10,000,000 Per Occurrence for Hazardous Substances / Pollutants /
Decontamination.
Included Per Occurrence for Machine or Apparatus used for
Research, Diagnosis, Medication, Surgical, Therapeutic,
Dental or Pathological Purposes.
NEWLY ACQUIRED
LOCATIONS:
$ 25,000,000 Automatic Acquisition for Boiler & Machinery values at
newly acquired locations. Values greater than 25,000,000
or Power Generating Facilities must be reported within 120
days and must have prior underwriting approval prior to
binding
2019-2020 Alliant Property Insurance Program (APIP) B&M Evidence Attachment Page 2 of 3
Association of California Water Agencies/JPIA
VALUATION: Repair or Replacement except Actual Loss sustained for all Time Element
coverages
EXCLUSIONS
(Including but not limited to):
• Testing
• Explosion, except for steam or centrifugal explosion
• Explosion of gas or unconsumed fuel from furnace of the boiler
OBJECTS EXCLUDED:
(Including but not limited to):
• Insulating or refractory material
• Buried Vessels or Piping
NOTICE OF
CANCELLATION:
90 days except 10 days for non-payment of premium
DEDUCTIBLES: Excess Coverage only. Except as shown for Specific Objects or Perils.
Excess Coverage only. Electronic Data Processing Media.
Excess Coverage only. Consequential Damage.
Excess Coverage only. Objects over 200 hp, 1,000 KW/KVA/Amps or
Boilers over 5,000 square feet of heating surface.
Excess Coverage only. Objects over 350 hp, 2,500 KW/KVA/Amps or Boilers
over 10,000 square feet of heating surface.
Excess Coverage only. Objects over 500 hp, 5,000 KW/KVA/Amps or Boilers
over 25,000 square feet of heating surface.
Excess Coverage only. Objects over 750 hp, 10,000 KW/KVA/Amps or Boilers
over 75,000 square feet of heating surface.
Excess Coverage only. Objects over 25,000 hp, 25,000 KW/KVA/Amps or
Boilers over 250,000 square feet of heating surface.
10 per foot / $2,500 Minimum Deep Water Wells.
24 Hours except Not Covered for Donald Von Raesfeld Power Plant
Business Interruption/Extra Expense Except as noted below.
30 Days Business Interruption - Revenue Bond.
24 Hour Waiting Period Utility Interruption.
5 x 100% of Daily Value Business Interruption - All objects over 750 hp or
10,000 KW/KVA/Amps or 10,000 square feet heating surface.
5 x 100% of Daily Value Business interruption - All Objects at Waste Water
Treatment Facilities and All Utilities.
2019-2020 Alliant Property Insurance Program (APIP) B&M Evidence Attachment Page 3 of 3
Association of California Water Agencies/JPIA
BROKER: ALLIANT INSURANCE SERVICES, INC.
License No. 0C36861
Seth Cole
Senior Vice President
Rob Lowe
Vice President
Andrea Ferry
Account Manager
Coverage outlined in this Evidence Attachment is subject to the terms and conditions set forth in the
policy. Please refer to policy for specific terms, conditions and exclusions.
2019-2020 Alliant Property Insurance Program (APIP) Cyber Liability Evidence Page 1 of 7
Association of California Water Agencies/JPIA
ALLIANT INSURANCE SERVICES, INC.
ALLIANT PROPERTY INSURANCE PROGRAM (APIP)
CYBER INSURANCE EVIDENCE
TYPE OF COVERAGE:
PROGRAM:
NAMED INSURED:
Information Security & Privacy Insurance with Electronic Media Liability Coverage
Alliant Property Insurance Program (APIP) inclusive of
Public Entity Property Insurance Program (PEPIP), and
Hospital All Risk Property Program (HARPP)
Any client(s), entity(ies), agency(ies), organization(s), enterprise(s) and/or individual(s),
attaching to each Declaration insured under the ALLIANT PROPERTY INSURANCE
PROGRAM (APIP) as their respective rights and interests may appear which now exist
or which hereafter may be created or acquired and which are owned, financially
controlled or actively managed by the herein named interest, all jointly, severally or in
any combination of their interests, for account of whom it may concern (all hereinafter
referred to as Client(s) / Entity(ies)
DECLARATION: Various Declarations as on file with Insurer
POLICY PERIOD: July 1, 2019 to July 1, 2020
POLICY #: TBD
TERRITORY: WORLD-WIDE
RETROACTIVE DATE: APIP/PEPIP
For new members – the retro active date will be the date of addition
July 1, 2018 For existing members included on the July 1, 2018/19 policy
July 1, 2017 For existing members included on the July 1, 2017/18 policy
July 1, 2016 For existing members included on the July 1, 2016/17 policy
July 1, 2015 For existing members included on the July 1, 2015/16 policy
July 1, 2014 For existing members included on the July 1, 2014/15 policy
July 1, 2013 For existing members included on the July 1, 2013/14 policy
July 1, 2012 For existing members included on the July 1, 2012/13 policy
July 1, 2011 For existing members included on the July 1, 2011/12 policy
July 1, 2010 For existing members included on the July 1, 2010/11 policy
CSU
July 1, 2008 California State University and CSU Auxiliary Organizations
INSURER: Lloyd’s of London - Beazley Syndicate:
Syndicates 2623 - 623 - 100%
2019-2020 Alliant Property Insurance Program (APIP) Cyber Liability Evidence Page 2 of 7
Association of California Water Agencies/JPIA
COVERAGES & LIMITS:
Ai
$ 25,000,000 Annual Policy and Program Aggregate Limit of Liability
(subject to policy exclusions) for all Insureds/Members
combined (Aggregate for all coverage’s combined,
including Claims Expenses), subject to the following sub-
limits as noted.
Ai $ 2,000,000 Annual Aggregate Limit of Liability for each
Insured/Member (Aggregate for all coverages combined,
including Claim Expenses) subject to the following sub-
limits as noted:
BREACH RESPONSE
Breach Response
Costs:
$ 500,000 Aggregate Limit of Liability for each Insured/Member
(Limit is increased to $1,000,000 if Beazley Nominated
Services Providers are used)
FIRST PARTY LOSS
Business Interruption
Loss Resulting from
Security Breach:
Business Interruption
Loss Resulting from
System Failure:
$ 2,000,000 Aggregate Limit of Liability for each Insured/Member
$ 500,000 Aggregate Limit of Liability for each Insured/Member
Dependent Business
Loss Resulting from
Security Breach:
Dependent Business
Loss Resulting from
System Failure:
Cyber Extortion Loss:
Data Recovery Costs:
$ 750,000 Aggregate Limit of Liability for each Insured/Member
$ 100,000 Aggregate Limit of Liability for each Insured/Member
$ 2,000,000 Aggregate Limit of Liability for each Insured/Member
$ 2,000,000 Aggregate Limit of Liability for each Insured/Member
LIABILITY
Data & Network
Liability:
Regulatory Defense &
Penalties:
$ 2,000,000 Aggregate Limit of Liability for each Insured/Member for
all Damages and Claims Expenses
$ 2,000,000 Aggregate Limit of Liability for each Insured/Member for
all Damages and Claims Expenses
2019-2020 Alliant Property Insurance Program (APIP) Cyber Liability Evidence Page 3 of 7
Association of California Water Agencies/JPIA
Payment Card
Liabilities & Costs:
Media Liability:
$ 2,000,000 Aggregate Limit of Liability for each Insured/Member for
all Damages and Claims Expenses
$ 2,000,000 Aggregate Limit of Liability for each Insured/Member for
all Damages and Claims Expenses
eCRIME
Fraudulent Instruction:
Funds Transfer Fraud:
Telephone Fraud:
$ 75,000 Aggregate Limit of Liability for each Insured/Member
$ 75,000 Aggregate Limit of Liability for each Insured/Member
$ 75,000 Aggregate Limit of Liability for each Insured/Member
CRIMINAL REWARD
Criminal Reward:
$ 25,000 Aggregate Limit of Liability for each Insured/Member
COVERAGE
ENDORSEMENT(S)
Consequential
Reputational Loss:
$ 50,000 Aggregate Limit of Liability for each Insured/Member
Computer Hardware
Replacement Costs:
$ 75,000 Aggregate Limit of Liability for each Insured/Member
RETENTION:
$ 25,000 CSU Auxiliary Organizations only
$ 50,000 Per Occurrence for each Insured/Member with TIV up to
$500,000,000 at the time of loss
8 Hour waiting period for Dependent/Business Interruption
Loss
$ 100,000 Per Occurrence for each Insured/Member with TIV greater
than $500,000,000 at time of loss
8 Hour waiting period for Dependent/Business Interruption
Loss
*Per Insured/Member with TIV below $250,000,000 have the option to buy-
down the retention from $50,000 to $5,000 with an additional premium of
$2,500 per entity.
NOTICE: Policy coverage of this policy provides coverage on a claims made and
reported basis; except as otherwise provided, coverage under noted
coverage schedule applies only to claims first made against the
Insured/Member and reported to underwriters during the policy period.
Claims expenses shall reduce the applicable limit of liability and are subject to the
applicable retention.
2019-2020 Alliant Property Insurance Program (APIP) Cyber Liability Evidence Page 4 of 7
Association of California Water Agencies/JPIA
EXTENDED
REPORTING PERIOD:
For Named Insured - To be determined at the time of election (additional premium
will apply)
SPECIFIC COVERAGE
PROVISIONS:
A.
Breach Response indemnifies the Insured/Member for Breach Response Costs
incurred by the Insured/Member because of an actual or reasonably suspected
Data Breach or Security Breach that the Insured first discovers during the Policy
Period.
B.
First Party Loss
Business Interruption Loss indemnifies the Insured/Member sustains as a result
of a Security Breach or System Failure that the Insured first discovers during the
Policy Period.
Dependent Business Interruption Loss indemnifies the Insured/Member sustains
as a result of a Security Breach or a System Failure that the Insured first discover
during the Policy Period.
Cyber Extortion Loss indemnifies the Insured/Member incurs as a result of an
Extortion Threat first made against the Insured/Member during the Policy Period.
Data Recovery Costs indemnifies the Insured/Member incurs as a direct result of
a Security Breach that the Insured first discovers during the Policy Period.
C.
Liability
Data & Network Liability pays Damages and Claims Expenses, which the Insured
is legally obligated to pay because of any Claim first made against any Insured
during the Policy Period
Regulatory Defense & Penalties pays Penalties and Claims Expenses, which the
Insured is legally obligated to pay because of a Regulatory Proceeding first made
against any Insured during the Policy Period for a Data Breach or a Security
Breach.
Payment Card Liabilities & Costs indemnifies the Insured/Member for PCI Fines,
Expenses and Costs which it is legally obligated to pay because of a Claim first
made against any Insured during the Policy Period.
Media Liability pays Damages and Claims Expenses, which the Insured is legally
obligated to pay because of any Claim first made against any Insured during the
Policy Period for electronic Media Liability.
D.
E.
eCrime indemnifies the Insured/Member for any direct financial loss sustained
resulting from:
• Fraudulent Instruction
• Funds Transfer Fraud
• Telephone Fraud
That the Insured first discovers during the Policy Period.
Criminal Reward indemnifies the Insured/Member for Criminal Reward Funds.
2019-2020 Alliant Property Insurance Program (APIP) Cyber Liability Evidence Page 5 of 7
Association of California Water Agencies/JPIA
Coverage
Endorsement(s)
EXCLUSIONS:
(Including but not
limited to)
Consequential Reputational indemnifies the Insured/Member for Consequential
Reputational Loss, that the Insured incurs during the Notification Period as a
result of (i) an actual or reasonably suspected Data Breach or Security Breach
that the Insured first discovers during the Policy Period and (ii) for which
individuals have been notified pursuant to the Breach Response Services
definition.
Computer Hardware Replacement Costs means reasonable and necessary
expenses incurred by the Insured Organization to replace computers or any
associated devices or equipment operated by, and either owned by or leased to,
the Insured Organization that are unable to function as intended due to corruption
or destruction of software or firmware directly resulting from a Security Breach.
Coverage does not apply to any claim or loss from;
• Bodily Injury or Property Damage
• Trade Practices and Antitrust
• Gathering or Distribution of Information
• Prior Known Acts & Prior Noticed Claims
• Racketeering, Benefit Plans, Employment Liability & Discrimination
• Sale or Ownership of Securities & Violation of Securities Laws
• Criminal, Intentional of Fraudulent Acts
• Patent, Software Copyright, Misappropriation of Information
• Governmental Actions
• Other Insureds & Related Enterprises
• Trading Losses, Loss of Money & Discounts
• Media-Related Exposures – Contractual liability or obligation
• Nuclear Incident
• Radioactive Contamination
• First Party Loss – with respects: 1. seizure, nationalization, confiscation, or
destruction of property or data by order of any governmental or public
authority; 2. costs or expenses incurred by the Insured to identify or remediate
software program errors or vulnerabilities or update, replace, restore,
assemble, reproduce, recollect or enhance data or Computer Systems to a
level beyond that which existed prior to a Security Breach, System Failure,
Dependent Security Breach, Dependent System Failure or Extortion Threat;
3. failure or malfunction of satellites or of power, utility, mechanical or
telecommunications (including internet) infrastructure or services that are not
under the Insured Organization’s direct operational control; or 4. fire, flood,
earthquake, volcanic eruption, explosion, lightning, wind, hail, tidal wave,
landslide, act of God or other physical event.
2019-2020 Alliant Property Insurance Program (APIP) Cyber Liability Evidence Page 6 of 7
Association of California Water Agencies/JPIA
NOTICE OF CLAIM:
• IMMEDIATE NOTICE must be made to Beazley NY of all potential claims and
circumstances (assistance, and cooperation clause applies)
• Claim notification under this policy is to:
Beazley Group
Attn: TMB Claims Group
1270 Avenue of the Americas
New York, NY 10020
tmbclaims@beazley.com
NOTICE OF
CANCELLATION:
10 days for non-payment of premium
REINSTATEMENT
PROVISIONS:
Optional reinstatement at 125% of the Annual Policy Premium
CYBER COST:
Cost is included in Total Property Premium
Earned premium is calculated on a pro-rata basis, unless there is a claim in which
case the premium is deemed fully earned.
OTHER SERVICES Unlimited Access to Beazley Breach Solutions
BROKER: ALLIANT INSURANCE SERVICES HOUSTON, LLC
License No. 0C36861
NOTES: Coverage outlined in this Evidence are subject to the terms and conditions set forth in the policy. Please
refer to Policy for specific terms, conditions and exclusions.
2019-2020 Alliant Property Insurance Program (APIP) Cyber Liability Evidence Page 7 of 7
ALLIANT PROPERTY INSURANCE PROGRAM
SUMMARY OF CYBER BOUND CHANGES
THE FOLLOWING ITEMS ARE BOUND CHANGES AS FOR THE 2019-2020 POLICY TERM
Coverage 2018-2019 2019-2020 Bound Changes Status
Business Interruption Loss resulting
from System Failure: $250,000 $500,000 Enhancement
Dependent Business Interruption
Loss resulting from Dependent
System Failure:
N/a $100,000 New Coverage
Fraudulent Instruction $50,000 $75,000 Enhancement
Funds Transfer Fraud $50,000 $75,000 Enhancement
Telephone Fraud $50,000 $75,000 Enhancement
Computer Hardware Replacement
Costs N/a $75,000 New Coverage
Endorsement Enhancements:
Voluntary Shutdown Coverage - Included Enhancement
Amend Data Recovery Costs - Included Enhancement
Amend Settlement of Claims - Included Enhancement
Amend Definition of Data - Included Enhancement
ALLIANT PROPERTY INSURANCE PROGRAM
2019-2020
NAMED INSURED SCHEDULE
AS OF 06/25/2019
THE NAMED INSURED IS:
Named Insured shall be deemed the sole agent of each and every Named Insured for the purpose of:
(1) Giving notice of cancellation,
(2) Giving instructions for changes in the Policy and accepting changes in this Policy
(3) The payment of assessments / premiums or receipt of return assessments / premiums.
Member(s), entity(ies), agency(ies), organization(s), enterprise(s) and/or individual(s) for
whom the Named Insured has extended coverage is as follows:
Page 1 of 1 DECLARATION 33
Association of California Water Agencies/JPIA
2100 Professional Drive
Roseville, CA 95661
NAMED INSURED MEMBER(S):
Association of California Water Agencies/JPIA
(ACWA JPIA)
Alliant Property Insurance Program
2019-2020 Policy Year
Schedule of Insurers (Bound)
Company A.M. Best's I.D. # A.M. Best's Guide Rating Standard and Poor's
Page 1 of 3
Allied World National
Assurance Company
012526 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 02/15/19)
A-
(As of 05/30/18)
Arch Specialty Insurance
Company
012523 A+, Superior;
Financial Size Category 15;
$2,000,000,000 to greater
(As of 10/11/18)
A+
(As of 06/25/18)
Aspen Insurance UK
Limited
084806 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 03/01/19)
A
(As of 06/26/18)
Ategrity Specialty
Insurance Company
020603 A-, Excellent;
Financial Size Category 8;
$100,000,000 to $250,000,000
(As of 09/26/18)
Not Rated
(As of 06/17/19)
Chubb European Group
Limited
086485 A++ , Superior;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 12/13/18)
AA
(As of 06/24/16)
Endurance Worldwide
Insurance Limited
083234 A+, Superior;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 07/20/18)
A+
(As of 04/26/18)
Evanston Insurance Co. 003759 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 12/19/18)
A
(As of 07/27/17)
Everest Indemnity
Insurance Company
012096 A+, Superior;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 05/02/19)
A+
(As of 12/22/15)
General Security
Indemnity Company of
AZ
02837 A+, Superior;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 09/19/18)
AA-
(As of 09/07/15)
Hallmark Specialty
Insurance Co.
010838 A-, Excellent;
Financial Size Category 8;
$100,000,000 to $250,000,000
(As of 08/23/18)
Not Rated
(As of 04/22/19)
HDI Global Specialty SE 086486 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 01/11/19)
A+
(As of 05/18/18)
Homeland Insurance
Company of New York
010604
A+, Superior;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 03/08/19)
Not Rated
(As of 04/22/19)
Alliant Property Insurance Program
2019-2020 Policy Year
Schedule of Insurers (Bound)
Company A.M. Best's I.D. # A.M. Best's Guide Rating Standard and Poor's
Page 2 of 3
Interstate Fire and
Casualty Ins. Co.
02267 A+, Superior;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 08/30/18)
AA
(As of 03/17/16)
Ironshore Specialty
Insurance Company
013866 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or greater
(As of 05/16/18)
A
(As of 05/02/17)
Lancashire Insurance
Company (UK) Ltd.
078390 A, Excellent;
Financial Size Category 12;
$1,000,000,000 to
$1,250,000,000
(As of 10/24/18)
A-
(As of 02/28/18)
Landmark American
Insurance Co.
012619 A+, Superior;
Financial Size Category 14;
$1,500,000,000 to
$2,000,000,000
(As of 11/02/18)
A+
(As of 04/18/18)
Lexington Insurance
Company
002350 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 06/20/18)
A+
(As of 06/06/17)
Liberty Mutual Fire
Insurance Company
002282 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 05/16/18)
A
(As of 06/17/14)
Lloyd’s of London 085202 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 07/12/18)
A+
(As of 10/12/17)
National Union Fire
Insurance Co.
(Berkshire)
002351 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 06/20/18)
A+
(As of 05/17/19)
PartnerRe Ireland
Insurance Ltd.
088621 A, Excellent
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 06/15/18)
A+
(As of 09/07/16)
QBE Specialty Insurance
Company
012562 A, Excellent;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 06/13/18)
A+
(As of 06/30/18)
United Specialty
Insurance Company
013105 A, Excellent;
Financial Size Category 9;
$250,000,000 to 500,000,000
(As of 12/19/18)
Not Rated
(As of 04/30/19)
Alliant Property Insurance Program
2019-2020 Policy Year
Schedule of Insurers (Bound)
Company A.M. Best's I.D. # A.M. Best's Guide Rating Standard and Poor's
Page 3 of 3
Westchester Surplus
Lines Insurance
Company
004433 A++, Superior;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 12/13/18)
AA
(As of 06/24/16)
Westport Insurance
Corporation
000347 A+, Superior;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 12/13/18)
AA-
(As of 10/28/11)
XL Insurance America
Inc.
002423 A+, Superior;
Financial Size Category 15;
$2,000,000,000 or Greater
(As of 12/06/18)
AA-
(As of 11/19/18)
06/25/2019
Association of California Water Agencies/JPIA
2100 Professional Drive
Roseville CA 95661
Alliant embraces a policy of transparency with respect to its compensation from
insurance transactions and a policy of disclosure as to the insurance carriers with
which Alliant does business.
The commission Alliant will receive from the carrier as a result of this placement
will be no greater than 11% of the premium.
Alliant Underwriting Services will also receive additional compensation from the
carrier for providing Underwriting Services up to 16.9%. A fee of $0.00 has been
included on your invoice for Loss Control, Engineering and Appraisal services
provided by Alliant Business Services.
Alliant Underwriting Services and Alliant Business Services are internal operating
groups of Alliant Insurance Services, Inc.
Alliant has no ownership interest in any of the carriers or any other intermediaries
(if any) that were a part of this placement.
Upon written request, Alliant will further disclose all quotes and indications sought
and received by Alliant in connection with your insurance placement, and the
terms, including any Alliant interest in or contractual agreement with any of the
prospective insurers, of all compensation to be received by Alliant. Request should
be mailed to:
Alliant Insurance Services, Inc.
701 B. Street, 6th Floor
San Diego, California 92101-8156
Attention: General Counsel
NOTICE:
1. THE INSURANCE POLICY THAT YOU ARE APPLYING TO PURCHASE I BEING
ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE OF
CALIFORNIA. THESE COMPANIES ARE CALLED “NONADMITTED” OR
“SURPLUS LINE” INSURERS.
2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY
REGULATION AND ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED
INSURERS.
3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE
GUARANTEE FUNDS CREATED BY CALIFORNIA LAW. THEREFORE, THESE
FUNDS WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE
INSURER BECOMES INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS
PROMISED.
4. THE INSURER SHOULD BE LICENSED EITHER AS A FOREIGN INSURER IN
ANOTHER STATE IN THE UNITED STATES OR AS A NON-UNITED STATES
(ALIEN) INSURER. YOU SHOULD ASK QUESTIONS OF YOUR INSURANCE
AGENT, BROKER, OR “SURPLUS LINE” BROKER OR CONTACT THE
CALIFORNIA DEPARTMENT OF INSURANCE AT THE FOLLOWING TOLL-FREE
TELEPHONE NUMBER: 1800-927-4357 OR INTERNET WEB SITE
WWW.INSURANCE.CA.GOV. ASK WHETHER OR NOT THE INSURER IS
LICENSED AS A FOREIGN OR NON-UNITED STATES (ALIEN) INSURER AND
FOR ADDITIONAL INFORMATION ABOUT THE INSURER. YOU MAY ALSO
CONTACT THE NAIC’S INTERNET WEB SITE AT WWW.NAIC.ORG.
5. FOREIGN INSURERS SHOULD BE LICENSED BY A STATE IN THE UNITED
STATES AND YOU MAY CONTACT THAT STATE’S DEPARTMENT OF
INSURANCE TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.
6. FOR NON-UNITED STATES (ALIEN) INSURERS, THE INSURER SHOULD BE
LICENSED BY A COUNTRY OUTSIDE OF THE UNITED STATES AND SHOULD
BE ON THE NAIC’S INTERNATIONAL INSURERS DEPARTMENT (IID) LISTING
OF APPROVED NONADMITTED NON-UNITED STATES INSURERS. ASK YOUR
AGENT, BROKER, OR “SURPLUS LINE” BROKER TO OBTAIN MORE
INFORMATION ABOUT THAT INSURER.
7. CALIFORNIA MAINTAINS A LIST OF APPROVED SURPLUS LINE INSURERS.
ASK YOUR AGENT OR BROKER IF THE INSURER IS ON THAT LIST, OR VIEW
THAT LIST AT THE INTERNET WEB SITE OF THE CALIFORNIA DEPARTMENT
OF INSURANCE: WWW.INSURANCE.CA.GOV.
8. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY
YOU HAVE PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE
EXISTING COVERAGE WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS
OR BECAUSE YOU WERE REQUIRED TO HAVE COVERAGE WITHIN TWO
BUSINESS DAYS, AND YOU DID NOT RECEIVE THIS DISCLOSURE FORM AND
A REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE BECAME
EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS POLICY WITHIN FIVE
DAYS OF RECEIVING THIS DISCLOSURE. IF YOU CANCEL COVERAGE, THE
PREMIUM WILL BE PRORATED AND ANY BROKER’S FEE CHARGED FOR THIS
INSURANCE WILL BE RETURNED TO YOU.
D-2 (Effective July, 2017)
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 1
Disclosures / Disclaimers
This evidence of insurance is provided as a matter of convenience and information only. All information
included in this evidence, including but not limited to personal and real property values, locations,
operations, products, data, automobile schedules, financial data and loss experience, is based on facts and
representations supplied to Alliant Insurance Services, Inc. by your organization. This evidence does not
reflect any independent study or investigation by Alliant Insurance Services, Inc. or its agents and
employees.
Please be advised that this evidence is also expressly conditioned on there being no material change in the
risk between the date of this evidence and the inception date of the proposed policy (including the occurrence
of any claim or notice of circumstances that may give rise to a claim under any policy which the policy being
proposed is a renewal or replacement). In the event of such change of risk, the insurer may, at its sole
discretion, modify, or withdraw this evidence, whether or not this offer has already been accepted.
This evidence is not confirmation of insurance and does not add to, extend, amend, change, or alter any
coverage in any actual policy of insurance you may have. All existing policy terms, conditions, exclusions,
and limitations apply. For specific information regarding your insurance coverage, please refer to the policy
itself. Alliant Insurance Services, Inc. will not be liable for any claims arising from or related to information
included in or omitted from this evidence of insurance.
Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on
our compensation policy, including the types of income that Alliant may earn on a placement, are available on our
website at www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to
your account you may also contact us at: Alliant Insurance Services, Inc., Attention: General Counsel, 701 B Street,
6th Floor, San Diego, CA 92101.
Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth
technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as
Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and
Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative
analysis of the information available in formulating their ratings.
A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies.
You can visit them via this AmBest Consumer Web link. For additional information regarding insurer financial strength
ratings visit Standard and Poor's website at www.standardandpoors.com.
Our goal is to procure insurance for you with underwriters possessing the financial strength to perform. Alliant does
not, however, guarantee the solvency of any underwriters with which insurance or reinsurance is placed and maintains
no responsibility for any loss or damage arising from the financial failure or insolvency of any insurer. We encourage
you to review the publicly available information collected to enable you to make an informed decision to accept or
reject a particular underwriter. To learn more about companies doing business in your state, visit the Department of
Insurance website for that state.
NY Regulation 194 and General Broker Compensation Disclosure
Alliant Insurance Services, Inc. is an insurance producer licensed by the State of New York and other States. Insurance
producers are authorized by their license to confer with insurance purchasers about the benefits, terms and conditions
of insurance contracts; to offer advice concerning the substantive benefits of particular insurance contracts; to sell
insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically
involves one or more of these activities.
Compensation will be paid to the producer, based on the insurance contract the producer sells. Depending on the
insurer(s) and insurance contract(s) the purchaser selects, compensation will be paid by the insurer(s) selling the
insurance contract or by another third party. Such compensation may vary depending on a number of factors, including
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 2
the insurance contract(s) and the insurer(s) the purchaser selects. In some cases, other factors such as the volume of
business a producer provides to an insurer or the profitability of insurance contracts a producer provides to an insurer
also may affect compensation.
The insurance purchaser may obtain information about compensation expected to be received by the producer based
in whole or in part on the sale of insurance to the purchaser, and (if applicable) compensation expected to be received
based in whole or in part on any alternative quotes presented to the purchaser by the producer, by requesting such
information from the producer.
Other Disclosures / Disclaimers Cont.
FATCA:
The Foreign Account Tax Compliance Act (FATCA) requires the notification of certain financial accounts to the United
States Internal Revenue Service. Alliant does not provide tax advice so please contact your tax consultant for your
obligation regarding FATCA.
NRRA:
(Applicable if the insurance company is non-admitted)
The Non-Admitted and Reinsurance Reform Act (NRRA) went into effect on July 21, 2011. Accordingly, surplus lines
tax rates and regulations are subject to change which could result in an increase or decrease of the total surplus lines
taxes and/or fees owed on this placement. If a change is required, we will promptly notify you. Any additional taxes
and/or fees must be promptly remitted to Alliant Insurance Services, Inc.
Changes and Developments
It is important that we be advised of any changes in your operations, which may have a bearing on the validity and/or
adequacy of your insurance. The types of changes that concern us include, but are not limited to, those listed below:
Mergers and/or acquisition and any change in business ownership, including percentages.
Any newly assumed contractual liability, granting of indemnities or hold harmless agreements.
Any changes in existing premises including vacancy, whether temporary or permanent, alterations, demolition,
etc. Also, any new premises either purchased, constructed or occupied
Circumstances which may require an increased liability insurance limit.
Any changes in fire or theft protection such as the installation of or disconnection of sprinkler systems, burglar
alarms, etc. This includes any alterations to the system.
Immediate notification of any changes to a scheduled of equipment, property, vehicles, electronic data
processing, etc.
Property of yours that is in transit, unless previously discussed and/or currently insured.
Loss Notification Requirements:
Your policy will come with specific claim reporting requirements. Please make sure your organization understands
these obligations and time limitations which are outlined in the attached Loss Notification documents. Contact your
Alliant Service Team with any questions.
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 3
LOSS NOTIFICATION REQUIREMENT
ALLIANT PROPERTY INSURANCE PROGRAM (APIP)
Claim notifications need to be sent to Robert Frey, Diana Walizada and Sandra Doig. In the event this is a Cyber loss please
include item III contact, for a Pollution loss please include item IV contact in addition to Alliant Insurance Services contacts.
I. During regular business hours (between 8:30 AM and 5:00 PM PST), First Notice of Claim should be reported
to Alliant Insurance Services via telephone, fax, mail or e-mail to our San Francisco Office:
Robert A. Frey, RPA Diana L. Walizada, AIC, CPIW, RPA, AINS
Senior Vice President, Regional Claims Director Vice President, Claims Unit Manager
Voice: (415) 403-1445 Cell: (415) 518-8490 Voice:(415)403-1453
Email: rfrey@alliant.com Email: dwalizada@alliant.com
Address: Alliant Insurance Services, Inc.
100 Pine St, 11th Floor
San Francisco CA 94111
Toll Free Voice: (877) 725-7695 Fax: (415) 403-1466
II. Please be sure to include APIP’s Claim Administrator as a CC on all Claims correspondence:
Sandra Doig
McLaren’s Global Claims Services
Address: 1301 Dove St., Suite 200
Newport Beach, CA 92660
Voice: (949) 757-1413 Fax: (949) 757-1692
Email: sandra.doig@mclarens.com
III. Cyber Liability Carrier Beazley NY needs to also be provided with Notice of Claim immediately (if purchased):
Beth Diamond
Beazley Group
Address: 1270 Avenue of the America’s, Suite 1200
New York, NY 10020
Fax: (546) 378-4039
Email: tmbclaims@beazley.com
Elaine G. Tizon, CISR
Assistant Vice President, Claims Advocate
Address: 100 Pine Street, 11th Floor
San Francisco, CA 94111-5101
Voice: (415) 403-1458 Fax: (415) 403-1466
Email: elaine.tizon@alliant.com
IV. Pollution Liability Carrier Allianz Global Corporate & Specialty (if purchased):
Allianz Global Corp. & Specialty Att: FNOL Claims Unit
Address: 1 Progress Point Parkway, 2nd Floor
O’Fallon, MO 63368
In emergency call: (800) 558-1606
Fax: (800) 323-6450
Email: NewLoss@agcs.allianz.com
Akbar Sharif
Claims Advocate
Address: 1301 Dove St. Ste. 200
Newport Beach, CA 92646
Voice: (949) 260-5088 Fax: (415) 403-1466
Email: Akbar.Sharif@alliant.com
Please include the Insured /JPA name along with the following information when reporting claims:
Time, date and specific location of property damaged
A description of the incident that caused the damage (such as fire, theft or water damage)
Estimated amount of loss in dollars
Contact person for claim including name, title, voice & fax numbers
Complete and return the Property Loss Notice for processing.
Mortgagee or Loss Payee name, address, and account number
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 4
IN THE EVENT OF A
PROPERTY LOSS:
1) Follow your organization procedures for reporting and responding to an incident
2) Alert local emergency authorities, as appropriate
3) Report the incident to Alliant Insurance Services immediately at:
877-725-7695
All property losses must be reported as soon as
practicable upon knowledge within the risk management or
finance division of the insured that a loss has occurred.
Be prepared to give basic information about the location and nature of the incident, as well as steps which have been
taken in response to the incident.
4) Report the incident to McLarens Global Claims Services AND your Alliant
representative
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 5
PROPERTY FIRST NOTICE OF LOSS FORM
SEND TO: Alliant Insurance Services, Inc.
BY MAIL: 100 Pine Street, 11th Floor, San Francisco, CA 94111
BY FAX: (415) 403-1466
BY EMAIL: rfrey@alliant.com AND dwalizada@alliant.com
Carbon Copy APIP Claims Administrator: sandra.doig@mclarens.com and your Alliant representative
Today’s Date: _________________
Type of Claim: (check all that apply)
Insured’s Name & Contact Information
Insured’s Name: Point of Contact:
Address:
Phone #:
Broker/Agent’s Name & Contact Information
Company Name: Alliant Insurance Services - Claims Point of Contact: Robert A. Frey & Diana L. Walizada
Address: 100 Pine Street, 11th Floor, San Francisco, CA 94111
Phone #: 1-877-725-7695 Fax #: 415-403-1466
Policy Information
Policy Number:________________________________ Policy Period: ______________________
Limits of Liability: _______________per___________agg Self-Insured Retention/Deductible: ______________
Loss Information
Date of Incident/Claim: _____________ Location:___________________________________________________
Description of Loss:
_______________________________________________________________________________
_____________________________________________________________________________________________
Please list all attached or enclosed documentation: (check if none provided) __________________________
_____________________________________________________________________________________________
Name of Person Completing This Form: _____________________________________
Signature:___________________________________
Real Property Vehicles
Personal Property Other
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 6
Per the PEPIP USA Form Master Policy Wording, Section IV General Conditions;
J. NOTICE OF LOSS
In the event of loss or damage insured against under this Policy, the Insured shall give notice thereof to
ALLIANT INSURANCE SERVICES, INC., 100 Pine Street, 11th Floor, San Francisco, CA 94111-1073.
TEL NO. (877) 725-7695, FAX NO. (415) 403-1466 of such loss. Such notice is to be made as soon as
practicable upon knowledge within the risk management or finance division of the insured that a loss has
occurred.
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 7
IN THE EVENT OF A
CYBER LOSS:
1) Follow your organizations procedures for reporting and responding to an
incident
2) Alert authorities, as appropriate
3) Report the incident to Beazley Group immediately at:
tmbclaims@beazley.com
All Cyber losses must be reported as soon as practicable
upon knowledge by the insured that a loss has occurred.
Be prepared to give basic information about the location and nature of the incident, as well as steps
which have been taken in response to the incident.
4) Report the incident to Alliant Claims Department and your Alliant
representative
SPECIAL NOTE REGARDING PRIVACY NOTIFICATION COSTS:
The policy provides a $500,000 Aggregate Limit for Privacy Notification Costs. If you utilize a Beazley
vendor, the limit is increased to $1,000,000.
Please contact Beazley for a list of approved vendors.
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 8
CYBER FIRST NOTICE OF LOSS FORM
Today’s Date:
Insured’s Name & Contact Information
Insured’s Name: Point of Contact:
Address:
Phone #:
Broker/Agent’s Name & Contact Information
Company Name: Alliant Insurance Services – Claims Point of Contact: Elaine Tizon
Address: 100 Pine Street, 11th Floor, San Francisco, CA 94111
Phone #: 877-725-7695 Fax #:415-403-1466
Policy Information
Policy Number: Policy Period:
Limits of Liability: per agg Self-Insured Retention/Deductible
Loss Information
Date of Incident/Claim: Location:
Description of Loss:
Please list all attached or enclosed documentation: (check if none provided)
Name of Person Completing This Form:
Signature:
SEND TO: Beazley Group
BY MAIL: 1270 Avenue of the America’s, Suite 1200, New York, NY 10020
BY FAX: (546) 378-4039
BY EMAIL: tmbclaims@beazley.com
CC Alliant Claims Department:
elaine.tizon@alliant.com , and your Alliant representative
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 9
A. NOTICE OF CLAIM, LOSS OR CIRCUMSTANCE THAT MIGHT LEAD TO A CLAIM
1. If any Claim is made against the Insured, the Insured shall, as soon as practicable upon knowledge by the
Insured, forward to the Underwriters through persons named in Item 9.A. of the Declarations written notice
of such Claim in the form of a telecopy, or express or certified mail together with every demand, notice,
summons or other process received by the Insured or the Insured’s representative; provided that with
regard to coverage provided under Insuring Agreements I.A. and I.C., all Claims made against any Insured
must be reported no later than the end of the Policy Period, in accordance with the requirements of the
Optional Extension Period (if applicable), or within thirty (30) days after the expiration date of the Policy
Period in the case of Claims first made against the Insured during the last thirty (30) days of the Policy
Period.
2. With respect to Insuring Agreement I.B. for a legal obligation to comply with a Breach Notice Law because
of an incident (or reasonably suspected incident) described in Insuring Clause I.A.1 or I.A.2, such incident or
reasonably suspected incident must be reported as soon as practicable during the Policy Period after
discovery by the Insured. For such incidents or suspected incidents discovered by the Insured within 60
days prior to expiration of the Policy, such incident shall be reported as soon as practicable, but in no event
later than 60 days after the end the Policy Period, provided; if this Policy is renewed by Underwriters and
covered Privacy Notification Costs are incurred because of such incident or suspected incident reported
during the 60 day post Policy Period reporting period, then any subsequent Claim arising out of such
incident or suspected incident is deemed to have been made during the Policy Period.
3. With respect to Insuring Agreements I.A. and I.C., if during the Policy Period, the Insured first becomes
aware of any circumstance that could reasonably be the basis for a Claim it may give written notice to
Underwriters in the form of a telecopy, or express or certified mail through persons named in Item 9.A. of the
Declarations as soon as practicable during the Policy Period of:
a. the specific details of the act, error, omission, or Security Breach that could reasonably be the basis for
a Claim;
b. the injury or damage which may result or has resulted from the circumstance; and
c. the facts by which the Insured first became aware of the act, error, omission or Security Breach
Any subsequent Claim made against the Insured arising out of such circumstance which is the subject of
the written notice will be deemed to have been made at the time written notice complying with the above
requirements was first given to the Underwriters.
4. A Claim or legal obligation under section X.A.1 or X.A.2 above shall be considered to be reported to the
Underwriters when written notice is first received by Underwriters in the form of a telecopy, or express or
certified mail or email through persons named in Item 9.A. of the Declarations of the Claim or legal
obligation, or of an act, error, or omission, which could reasonably be expected to give rise to a Claim if
provided in compliance with sub-paragraph X.A.3. above.
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 10
ALLIANZ GLOBAL CORPORATE & SPECIALTY
IN THE EVENT OF AN
ENVIRONMENTAL EMERGENCY:
1) Follow your organization procedures for reporting and responding to an
incident
2) Alert local emergency authorities, as appropriate
3) Report the incident immediately at:
800-558-1606
4] Report the incident to Alliant
Akbar Sharif
Claims Advocate
949-260-5088
415-403-1466 – fax
Akbar.Sharif@alliant.com
Be prepared to give basic information about the location and nature of the incident, as well as steps
which have been taken in response to the incident.
DO follow your organization’s detailed response plan
DO contact your management as well as appropriate authorities
DO ensure anyone who could come in contact with a spill or release is kept away
DO NOT ignore a potential spill or leak
DO NOT attempt to respond beyond your level of training or certification
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 11
Today’s Date:
Notice of: (check all that apply)
Pollution Incident Potential Claim Other
Third-Party Claim Litigation Initiated
Insured’s Name & Contact Information
Company Name: Point of Contact:
Address:
Phone #:
Broker/Agent’s Name & Contact Information
Company Name: Alliant Insurance Services - Claims Point of Contact: Akbar Sharif
Address: 1301 Dove St. Ste. 200 Newport Beach, CA 92660
Phone #: 1-949-260-5088
Policy Information
Policy Number: Policy Period:
Limits of Liability: per agg Self-Insured Retention/Deductible
Loss Information
Date of Incident/Claim: Location:
Claimant Name/Address:
Description of Loss:
Please list all attached or enclosed documentation: (check if none provided)
Name of Person Completing This Form: Signature:
SEND TO: ALLIANZ GLOBAL CORPORATE & SPECIALTY
BY MAIL: Allianz Global Corporate & Specialty, Attn: FNOL Claims Unit, One Progress Point
Parkway, 2nd Floor, O’Fallon, MO 63368
BY FAX: (888) 323-6450
BY EMAIL: NewLoss@agcs.allianz.com
CC Alliant Insurance: Akbar.Sharif@alliant.com and your Alliant Representative
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 12
VII. REPORTING AND COOPERATION
A. The “insured” must see to it that the Insurer receives written notice of any “claim” or “pollution condition”, as soon as
practicable, at the address identified in Item 7.a. of the Declarations to this Policy. Notice should include reasonably
detailed information as to:
1. The identity of the “insured”, including contact information for an appropriate person to contact regarding the handling
of the “claim” or “pollution condition”;
2. The identity of the “covered location” or “covered operations”;
3. The nature of the “claim” or “pollution condition”; and
4. Any steps undertaken by the “insured” to respond to the “claim” or “pollution condition”. In the event of a “pollution
condition”, the “insured” must also take all reasonable measures to provide immediate verbal notice to the Insurer.
B. The “insured” must:
1. As soon as practicable, send the Insurer copies of any demands, notices, summonses or legal papers received in
connection with any “claim”;
2. Authorize the Insurer to obtain records and other information;
3. Cooperate with the Insurer in the investigation, settlement or defense of the “claim”;
4. Assist the Insurer, upon the Insurer’s request, in the enforcement of any right against any person or organization which
may be liable to the “insured” because of “bodily injury”, “property damage”, “remediation costs” or “legal defense
expense” to which this Policy may apply; and
5. Provide the Insurer with such information and cooperation as it may reasonably require.
C. No “insured” shall make or authorize an admission of liability or attempt to settle or otherwise dispose of any “claim”
without the written consent of the Insurer. Nor shall any “insured” retain any consultants or incur any “remediation
costs” without the prior express written consent of the Insurer, except in the event of an “emergency response”.
(Emergency Response coverage is limited to the first 7 days)
D. Upon the discovery of a “pollution condition”, the “insured” shall make every attempt to mitigate any loss and comply
with applicable “environmental law”. The Insurer shall have the right, but not the duty, to mitigate such “pollution
conditions” if, in the sole judgment of the Insurer, the “insured” fails to take reasonable steps to do so. In that event, any
“remediation costs” incurred by the Insurer shall be deemed incurred by the “insured”, and shall be subject to the “self-
insured retention” and Limits of Liability identified in the Declarations to this Policy.
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 13
APIP Pollution: Claim Reporting Fact Sheet
This page outlines the steps that should be taken BY YOUR ORGANIZATION, at the time of an environmental incident, to assure
that the Pollution coverage offered with ACE through APIP is not jeopardized. We ask that you review this document and provide
copies to all appropriate colleagues in advance of a possible incident.
Coverage under Pollution policies is dependent on specific compliance with claims and loss reporting; especially in the case of
“Emergency Response” expenses that you may incur to address a pollution loss. For these “Emergency Response” expenses
there is a strict seven (7) day window, following discovery of a “Pollution Condition” by the “Insured”, after which reasonable
expenses will not be reimbursed unless the carrier has given prior consent. It is extremely important pollution exposures be
reported immediately; and clearly no later than seven (7) days.
Although we ask that you fully review your policy and all its’ Terms and Conditions, we have highlighted some key sections of the
ACE policy which address the Emergency Response issue and the reporting provisions:
III. DEFENSE AND SETTLEMENT C. The “insured” shall have the right and duty to retain a qualified environmental
consultant to perform any investigation and/or remediation of any “pollution condition” covered pursuant to this
Policy. The “insured” must receive the written consent of the Insurer prior to the selection and retention of such
consultant, except in the event of an “emergency response”. Any costs incurred prior to such consent shall not be
covered pursuant to this Policy, or credited against the “self-insured retention”, except in the event of an
“emergency response”.
V. DEFINITIONS
F. “Emergency response” means actions taken and reasonable “remediation costs” 7 days following the discovery
of a “pollution condition” by an “insured” in order to abate or respond to an imminent and substantial threat to human
health or the environment arising out of such “pollution condition”.
T. “Pollution condition” means: 2. The discharge, dispersal, release, escape, migration, or seepage of any solid,
liquid, gaseous or thermal irritant, contaminant, or pollutant, including smoke, soot, vapors, fumes, acids, alkalis,
chemicals, hazardous substances, hazardous materials, or waste materials, on, in, into, or upon land and structures
thereupon, the atmosphere, surface water, or groundwater.
V. “Remediation costs” means reasonable expenses incurred to investigate, quantify, monitor, mitigate, abate,
remove, dispose, treat, neutralize, or immobilize “pollution conditions” to the extent required by “environmental law”.
VII. REPORTING AND COOPERATION
A. The “insured” must see to it that the Insurer receives written notice of any “claim” or “pollution condition”, as
soon as practicable, at the address identified in Item 7.a. of the Declarations to this Policy. Notice should include
reasonably detailed information as to: 1. The identity of the “insured”, including contact information for an
appropriate person to contact regarding the handling of the “claim” or “pollution condition”;
B. The “insured” must: 1. As soon as practicable, send the Insurer copies of any demands, notices, summonses or
legal papers received in connection with any “claim”;
C. No “insured” shall make or authorize an admission of liability or attempt to settle or otherwise dispose of any
“claim” without the written consent of the Insurer. Nor shall any “insured” retain any consultants or incur any
“remediation costs” without the prior express written consent of the Insurer, except in the event of an “emergency
response”. (Emergency Response coverage is limited to the first 7 days)
D. Upon the discovery of a “pollution condition”, the “insured” shall make every attempt to mitigate any loss and
comply with applicable “environmental law”. The Insurer shall have the right, but not the duty, to mitigate such
“pollution conditions” if, in the sole judgment of the Insurer, the “insured” fails to take reasonable steps to do so. In
that event, any “remediation costs” incurred by the Insurer shall be deemed incurred by the “insured”, and shall be
subject to the “self-insured retention” and Limits of Liability identified in the Declarations to this Policy.
The bottom line is if there is a Pollution event, please contact us immediately so that we can report the Incident and properly
protect coverage for these unexpected events; please refer to the Claims Reporting form for proper contact information
Date Issued: May 14, 2019 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 14
ALLIANT FACT SHEET
Page 1
RETAIL BROKERAGE VS. WHOLESALE & SERVICE OPERATIONS
RETAIL BROKERAGE VS. WHOLESALE & SERVICE OPERATIONS
Many insurance brokerage firms, including Alliant Insurance Services, Inc., have affiliate and/or subsidiary companies
that perform services associated with the risk management and insurance procurement process. Alliant has
numerous and varied client relationships that may involve any combination of Retail Brokerage, Wholesale Brokerage
and other Loss Control or Risk Management Consulting work. In addition, Alliant’s affiliates, such as Alliant Business
Services (ABS), can provide clients with other services not necessarily directly related to the risk management or
insurance procurement process such as Human Resources Consulting and/or Appraisal Services.
Normally when acting as clients’ “Retail Broker” Alliant will collect a commission as compensation, or may have a Fee
for Service compensation plan. Typically Alliant will then have a written Agreement with clients, and that document
includes full disclosure concerning compensation including wording similar to the following:
In addition to the commissions that Broker receives, Alliant Underwriting Services (AUS), a division of
a related entity, may receive compensation from Broker and/or the carrier for providing underwriting
services. The financial impact of the compensation received by AUS is a cost included in the premium.
Additionally, the related entities of Alliant Business Services (ABS) may receive compensation from
Broker and/or the carrier for providing designated, value-added services. Services contracted for by
the Client directly will be invoiced accordingly. Otherwise, services will be provided at the expense of
Broker and/or the carrier.
This contract language is in addition to the standard disclosure wording contained in Alliant proposals. At the bottom
of this Fact Sheet we have attached what we include on our Standard Proposals. (Additional disclosure wording is
also included on Alliant invoices.) Full disclosure is a key component of client communication concerning
compensation.
The Retail Broker activities, and Alliant’s other services involved in Wholesale Brokering are distinctly separate. Our
Retail Brokers and staff act as advocates for the client and are involved in the day-to-day delivery of services spelled
out in our “Scope of Services.” Such services include negotiating terms and conditions of coverage, issuance of
certificates, tailoring coverages to meet specific needs, and assuring that all lines of coverages are properly provided
to protect clients’ assets.
Wholesale Broker activities are provided through Alliant Underwriting Services (AUS). These include administration
of programs that Alliant companies manage and/or underwrite, and involve separate functions from Retail Brokerage
service. Alliant Insurance Services, Inc. has other operations including, AUS and ABS, which provide non-retail
brokerage services. The inclusion of these Wholesale Broker activities into a program has additional advantages
that accrue to clients, primarily in the realm of cost savings, as needed services can generally be provided less
expensively by a wholesale outfit than by a traditional insurer. This is especially the case when a program is large
or complex.
As in any business, the cost of services will vary year by year based on program size, underwriting authority, and
other factors. AUS receives compensation from carriers for which it provides underwriting and program
administration services. There are numerous services involved in this Wholesale Broker function, including:
Underwriting new and renewal business for the primary/excess markets
- PML Analysis
- Claims Analysis
- Program Management
- Program Administration/Information Technology associated with program management.
AS JUST ONE EXAMPLE, the Public Entity Property Insurance Program (PEPIP) - formed in 1993 to meet the
unique property insurance needs of public entities – has grown from 65 members in one State to over 9,000 members
in 45 States. This growth has fueled insurance cost savings for all members.
ALLIANT FACT SHEET
Page 2
To achieve Program results, AUS annually:
Underwrites over 6,000 renewal applications,
Reviews Statement of Values and associated COPE (Construction, Occupancy, Protection & Exposure)
information for over 262,303 PEPIP property locations,
Allocates premium between 25 separate insurance markets,
Establishes renewal pricing parameters in accordance with the underwriting/rating standards provided by the
program markets, and
Performs Program Accounting including individual member pricing billing, collections, and remittance to program
markets.
Additional ABS services available to Program members include:
Loss Control Services (no specific budget and can be tailored to individual clients).
Appraisals (Buildings over $5M appraised every 3-5 years. We currently do every 3 years, but we are
evaluating doing every 5 years at renewal).
Infrared Testing (again tailored to the client but not an unlimited number of days).
Business Interruption Consulting (assistance by Forensic Accountant in determining Business Interruption
values).
PEPIP Solution Center (24 hr. hotline to address Property Loss Control questions).
Webinars (8-10 web based training sessions per year on Property related topics).
Alliant Insurance Services, Inc., our Retail Brokers and colleagues all strive to provide the high level of service
expected from our clients at a competitive level of compensation that should be clearly understood and
documented.
Commissions are customarily paid by the insurance carriers to their agents and to brokers as a percentage of premiums. In
addition to the commissions that Alliant receives, Alliant Underwriting Services. ("AUS"), a division of a related entity may
receive compensation from Alliant and/or the carrier for providing underwriting services. The financial impact of the
compensation received by AUS is a cost included in the premium. Additionally, Alliant Business Services (“ABS”) and/or
Strategic HR may receive compensation from Alliant and/or the carrier for providing designated, value-added
services. Services contracted for by the client directly will be invoiced accordingly. Otherwise, services will be provided
at the expense of Alliant and/or the carrier. Further information is available upon written request directed to: Alliant
Insurance Services, Attention: General Counsel, 701 B Street, San Diego, CA 92101.
JPIA Board of Directors - Member/Alternate
An excerpt from the JPIA Agreement: "Article 7 - Board of Directors"
(a) The Authority shall be governed by the Board of Directors which is hereby established and
which shall be composed of one representative from each Member, who shall be a Member director selected by the governing board of that Member. Each Member, in addition to appointing its member of the Board, shall appoint at least one alternate who shall be an
officer, member of the governing board, or employee of that Member. The alternate appointed
by a Member shall have the authority to attend and participate in any meeting of the Board
when the regular member for whom he or she is an alternate is absent from said meeting. (b) Each Director or alternate of the Board shall serve until a successor is appointed. Each
Director or alternate shall serve at the pleasure of the Member by which he or she has been
appointed.
(c) Each Director representing a Member, or his or her alternate, shall have one vote.
Please have your agency’s Board of Directors designate a JPIA Director Representative and
Alternate Representative. Member Agency:
JPIA Director Representative:
Must be a member of the agency’s board of directors.
Preferred mailing address:
E-mail address:
Phone number:
JPIA Alternate Representative:
Preferred mailing address:
E-mail address:
Phone number:
Please mail form to: Attn: Bobbette Wells, ACWA/JPIA, PO Box 619082, Roseville, CA 95661-9082
or FAX to: (916) 774-7040
Insurance Limit Comparison
SDRMA LIMIT ACWA LIMIT
Coverage Occurrence Occurrence
Boiler & Machinery
100,000,000
100,000,000
Flood (excluding A and V)
10,000,000
10,000,000
Flood (A and V)
10,000,000
10,000,000
Cyber
3,000,000
3,000,000
Mobile/Contractors Equipment
1,000,000,000 Actual Value
SUB-LIMITS:
Business Interruption
500,000
500,000
Extra Expense
50,000,000
50,000,000
Off Premises Service Interruption
25,000,000
25,000,000
Money & Securities
2,500,000
2,500,000
Accidental Contamination – Program Aggregate
250,000
250,000
Employee Dishonesty
1,000,000
1,000,000
Unscheduled Landscaping
1,000,000 1,000,000
Unscheduled Infrastructure
750,000
750,000
E&O Property
50,000,000
50,000,000
General Liability
Bodily Injury
10,000,000
55,000,000
Property Damage
10,000,000
55,000,000
Accidental Pollution
2,000,000
55,000,000
Employee/Public Officials E & O
10,000,000
10,000,000
Employment Practices Liability
10,000,000
10,000,000
Employee/Public Officials Dishonesty
1,000,000
1,000,000
Auto
Auto Bodily Injury
10,000,000
55,000,000
Auto Property Damage
10,000,000
55,000,000
Uninsured Motorist
1,000,000 (1)
Auto PD - Comp
100,000 ACV
Auto PD - Collision
100,000 ACV
High Dollar Vehicles
1,000,000,000 ACV
Scheduled Trailer
100,000 ACV
Workers' Compensation
Employers Liability
5,000,000
4,000,000
Workers' Compensation Statutory Limits Statutory Limits
Outside Policies
Fiduciary Liability - Hudson Insurance Company
2,000,000
2,000,000
Other Fiduciary Liability Employment Benefits -
(Employee Benefits Liability due to Employee
Benefits Acts, Errors and Omissions, or any
combination thereof; and/or)
10,000,000
10,000,000
Endorsements
Failure to Supply (FTS)
1,000,000 (2)
Inverse Condemnation
1,000,000
55,000,000
(1) District property insurance would cover damage to District owned property, and workers’
compensation would cover injury of District employees.
(2) Under Section 23 of The District’s Code of Ordinances, The District does not guarantee
continuous delivery of water on demand. ACWA-JPIA will cover up to $55M of liability claims
due to accidental failure to supply (FTS), but not FTS due to a discretionary District action.
Page 1 of 32
OTAY WATER DISTRICT
PURCHASING MANUAL
Revised August 2, 2017April 28June 3, 2020
Page 2 of 32
Table of Contents
Section Page
1 – Mission and Ethics Statement . . . . . . . . . . . . . . . . . . . 4
2 – Organization . . . . . . . . . . . . . . . . . . . . . 5
Purpose
Statement
Responsibilities
3 - Purchasing Policy . . . . . . . . . . . . . . . . . . . 7
Purpose
General
Policies
4 - Purchasing Guidelines . . . . . . . . . . . . . . . . . 9
Purpose
General
Guidelines and Protocols
Vendor Involvement
Guidelines and Protocols
5 - Legal Considerations Regarding Purchasing . . . . . . . 11
Purpose
General
6 - Types of Purchases . . . . . . . . . . . . . . . . . . 12
Purpose
General
Procedures
Construction Services (Public Works)
Professional Consulting
Cooperative/Joint Purchases
Emergency Purchases 13
Materials, Goods, Services, and General Consulting
Petty Cash
Sole Source Purchases
Blanket Purchase Orders:
Guidelines for Issuing Blanket Purchase Orders 14
Guidelines for the Use of Blanket Purchase Orders
7 - Pricing/Bidding Requirements . . . . . . . . . . . . . . 15
Purpose
General
Requirements
Formal Advertising
Quotations
Public Works – Construction
Request for Proposals 16
Two Step Bidding
Purchases Exempt from Competitive Pricing
Emergency Purchases 17
Page 3 of 32
Board Authorized Purchases Exceeding the General Manager’s Authority
8 - Change Orders . . . . . . . . . . . . . . . . . . . . . 18
Purpose
General
9 - Authorization to Purchase – Signatory Authority . . . . 19
Purpose
General
10 - Documentation of Purchases . . . . . . . . . . . . . . 20
Purpose
General
Procedure
Purchases Exempt from Purchase Order Requirement
11 - Special Considerations . . . . . . . . . . . . . . . . 22
Exceptions to Purchasing Procedures
Bonding
Encouraging Emerging Business Enterprise
Insurance
Invoicing
Receiving, Inspection and Acceptance 23
Specifications
Inventory
12 - Disposal of Surplus Property . . . . . . . . . . . . . 24
Purpose
General
Procedure
Auction Sale
Sale to Federal, State, and Local Municipalities and Government Agencies 25
Sale to Republic of Mexico Municipalities and U.S. Government Agencies 26
Donation of District Surplus Property to Municipalities, Government Agencies, and
Charitable Organizations 27
Exchange or Trade-In 28
Disposal as Scrap
13 – Cal Card Credit Cards . . . . . . . . . . . . . . . . . 29
Purpose
Guidelines
Definitions
Procedure 30
Authorized Purchases
Responsibilities
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Revisions . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Page 4 of 32
Section 1 – Mission and Ethics Statement
1.0 PURPOSE:
To provide an understanding of the basic goal of the purchasing function within the Otay Water District.
1.1 MISSION STATEMENT:
To provide for the procurement, storage and distribution of all supplies, equipment and services for the
District using progressive purchasing techniques, methods and stringent controls while seeking the
highest cost savings for the customers of the District.
1.2 ETHICS STATEMENT:
The Otay Water District, its governing Board, employees, and agents who are involved at any point in
the process to select suppliers, award and administer contracts and approve payments must adhere to
high standards of ethical behavior. To this end, the policies and guidelines established in this Purchasing
Manual are intended to ensure that purchasing and purchasing related decisions are in accordance with
adherence to the high ethical standards of the purchasing community and of the Otay Water District.
Page 5 of 32
Section 2 – Organization
(Rev 2017-05-03) (Rev 2017-08-02)
2.0 PURPOSE:
To provide an understanding of the Purchasing Division’s organization and its relationship within the
Otay Water District.
2.1 STATEMENT:
The Purchasing and Facilities Manager directs the Purchasing and Facilities Division. The Purchasing
and Facilities Manager reports to the Chief of Administrative Services, who in turn reports to the General
Manager. The General Manager reports to the Board of Directors.
Board of Directors
|
General Manager
|
Chief of Administrative Services
|
Purchasing and Facilities Manager
2.2 RESPONSIBILITIES:
2.2.1 Board of Directors – Ultimate authority regarding the purchasing policies, practices and guidelines
of the District rests with the Board of Directors. It is the Board’s responsibility to establish policy and
direction regarding purchasing functions in accordance with the District’s Code of Ordinances.
2.2.2 General Manager – The General Manager is responsible, in accordance with the District’s Code of
Ordinances, for ensuring that the District complies with Board direction regarding the purchasing
function.
2.2.3 (Deleted)
2.2.4 Chief of Administrative Services – It is the Chief’s responsibility to administer the District’s
Purchasing and Facilities Division as directed by the General Manager.
2.2.5 Purchasing and Facilities Manager – It is the Manager’s responsibility to manage the Purchasing
and Facilities Division as directed by the Chief of Administrative Services and to:
a. Develop objectives, policies, programs and procedures for the negotiation and the
acquisition of materials, supplies, equipment and services for the District.
Page 6 of 32
b. Coordinate purchasing policies throughout the District.
c. Disseminate to other departments purchasing information designed to promote efficient
operations.
d. Negotiate and approve assigned purchase orders in the best interest of the District.
e. Make purchases for the District in such a manner so as to maximize the value received for
monies expended.
f. Arrange for the sale or disposal of materials and supplies declared surplus by the Board of
Directors.
g. Maintain inventory levels at a satisfactory operating level.
h. Work with District departments to promote vendor/seller relations.
i. Work with District Departments and Committees establishing standardization of
workmanship, materials and supplies used throughout the District.
j. Protect the District’s interest in matters concerning charges related to the purchasing of
materials, supplies and services.
Page 7 of 32
Section 3 – Purchasing Policy
3.0 PURPOSE:
To provide an understanding of the purchasing function and to establish and present the
purchasing policies within the Otay Water District.
3.1 GENERAL:
Purchasing is fundamental to the operation of the District. It means the acquisition of goods and
services in exchange for an acceptable price or consideration. A purchase may be in the simplest
form or it may involve the development of lengthy written agreements. Every purchase involving
the transfer of goods or services is a contract. As a contract, there are considerations as to the
nature of the purchase, its value, timing, method of payment, delivery, and other conditions that
must be addressed. For this reason, it is the District’s policy to rest the responsibility and authority
to purchase within the Purchasing and Facilities Division (Purchasing Department).
3.2 POLICIES:
a. General Policy: All purchases and requests for pricing or repair services shall be made in
accordance with applicable laws and the District’s Purchasing Manual, policies, and
procedures.
b. Open Door Policy: The Purchasing Department shall maintain an “Open Door” policy
with all salespeople desiring to sell goods or services to the District.
c. Interviews with Salespeople: If it is necessary for staff, other than Purchasing Department
personnel, to interview salespeople regarding details of their products, requests for such
visits should be made through the Purchasing Department. In interviews with salespeople,
no one except the Purchasing Department may comment on the preference for any product,
or give any information regarding performance or price.
d. Correspondence with Suppliers: All correspondence with suppliers must be processed
through the Purchasing Department unless it is technical in nature and makes no references
towards purchasing.
e. Negotiated Changes: Unless authorized by the General Manager, the Purchasing
Department will negotiate all changes to purchases.
f. Authority to Question: In order to serve the best interest of the District, the
Purchasing Department shall have the authority to question all requests for purchases
regarding quantity, quality, timing, and specifications.
g. Approval of Gratis Materials and Samples: The Purchasing Department must approve all
gratis materials, supplies or services submitted to the District as samples or tests prior to
their acceptance.
h. Conflict of Interest: Employees are required to disclose to the Purchasing Department
any conflict of interest in the selection or recommendation for selection of District
vendors, suppliers, or consultants. All contracts shall contain language, as approved
by the District’s legal counsel, requiring Vendors, Suppliers, and Consultants to disclose
any actual and potential conflicts of interest that exist between the Vendor, Supplier, or
Consultant and the District, its representatives, agents, Board of Directors, and employees.
Page 8 of 32
Section 4 – Purchasing Guidelines
4.0 PURPOSE:
To provide guidelines and protocol for the standardized application of purchasing activities within
the Otay Water District.
4.1 GENERAL:
To a large extent, the Purchasing and Facilities Division’s (Purchasing Department) performance
will be measured by how well it satisfies the needs of various departments within the District. It is
essential that there be mutual cooperation between District departments to ensure that a condition
of confidence exists. For this reason the following standardized guidelines and protocols have been
established.
4.1.1 Guidelines and Protocol:
a. Departments will keep the Purchasing Department informed of their current and anticipated
activities.
b. Overlapping duties regarding purchases will be clearly defined in the best interest of
the District.
c. If the material or equipment requested is not readily available or its price is such that
significant savings can be realized through alternatives, the alternative that is in the best
interest of the District shall be selected.
d. Policies and procedures of the District’s Purchasing Manual will be followed.
e. The Purchasing Department will notify interested departments on matters related to
shortages, new products, discontinued products or anything else that directly affects the
performance of the interested department, the Purchasing Department, or the District.
4.2 VENDOR INVOLVEMENT
Through the Purchasing Department’s contact with vendors, it is in a position to develop or
diminish the District’s reputation and/or vendor/District relationships. The District promotes a
fair and aggressive purchasing manner that results in positive vendor relationships. To
accomplish this, the District has established the following standardized guidelines and
protocols.
4.2.1 Guidelines and Protocol:
a. All competition between suppliers is to be kept open and fair.
b. Advantages through vendor errors shall be declined.
c. Revision of bids after submission shall not be accepted.
d. Materials not strictly up to specification that may be usable without sacrifice shall be
reviewed.
e. Bids shall only be solicited from those vendors with whom the District intends to do
business.
Page 9 of 32
f. The District shall not be obligated to any particular vendor.
g. Vendor locations may be visited to promote product and vendor knowledge.
h. Transactions and communications with vendors shall be truthful yet shall not divulge
sensitive or confidential information related to competition.
i. Vendor questions, calls or correspondence shall be answered promptly and in a manner that
maintains fair competition.
Page 10 of 32
Section 5 – Legal Considerations Regarding Purchasing
5.0 PURPOSE:
To provide understanding and direction related to legal considerations within the purchasing function of
the Otay Water District.
5.1 GENERAL:
The District has designated that the Purchasing and Facilities Manager has the authority to act fiducially
as its agent with regard to the purchase of materials, supplies, and services. This designation is referred
to as Law of Agency. As such, the Purchasing and Facilities Manager binds the District to whatever
buying decision is made and makes the District responsible for any purchase order issued under his/her
limits of authority. In addition to acting in the best interest of the District, the Purchasing and Facilities
Manager must ensure that various Federal and State statutes governing purchasing and interstate
commerce are complied with. For these reasons, consultation with the District’s legal counselor shall
be made whenever there is a question concerning anti-trust implications, warranty, risk of loss and
rights and remedies of the District.
Page 11 of 32
Section 6 – Types of Purchases
6.0 PURPOSE:
To provide standardized procedures for the purchase of consulting, construction, materials, goods, and
services within the Otay Water District.
6.1 GENERAL:
The District recognizes the varying levels of complexity within the purchasing function and the need to
establish standardized procedures to administer the various types of purchases made within the District.
6.2 PROCEDURES:
6.2.1 Construction Services (Public Works):
The General Manager, or his/her designee, may award purchase orders/contracts for construction services
that are within the authorization limit of the General Manager as set by the Board of Directors.
Competitive pricing of construction purchases must be in accordance with the bidding and pricing
procedures of the District as outlined in Section 7.2.3 (Pricing/Bidding Requirements) of this manual.
Award shall be made to the responsive and responsible bidder who has submitted the lowest bid
meeting the requirements and criteria set forth in the invitation to bid. For construction contracts
exceeding staff’s limit of authorization, a summary of bids together with staff’s recommendation for
award or possible rejection of bids must be presented to the Board of Directors of the District at a board
meeting. Should an award be made, the Board of Directors will authorize staff to execute a contract on
behalf of the District. After approval as to form and legality by the District’s legal counsel, the successful
bidder and the District’s representative will sign the contract. A copy of the executed contract
shall be promptly provided to the Finance Department for proper accounting review. If after
notification, the successful bidder fails to execute the contract within ten (10) days, the bid deposit,
made in cash, cashier’s check, certified check, or bid bond will be forfeited.
6.2.2 Professional Consulting:
The General Manager, or his/her designee, may award purchase orders/contracts for professional
consulting services that are within the authorization limits as set by the Board of Directors. Professional
Consulting Services are defined as architectural, Engineering, Environmental and any other service as
identified within the California Government Code § 4525-4529. Competitive pricing of consulting
services must be in accordance with the bidding and pricing procedures of the District as outlined in
Section 7.2.4a (Pricing/Bidding Requirements) of this manual. Award shall be made to the consultant
whose response to a request for proposal best meets the District’s needs. At the discretion of the Board
of Directors or the General Manager, the review of submitted proposals may be made by a Committee
established by the Board or the General Manager. For professional consulting contracts exceeding the
General Manager’s limit of authorization, a summary of bids together with staff’s recommendation for
award must be presented to the Board of Directors of the District at a board meeting. Should an award be
made, the Board of Directors will authorize staff to execute a contract on behalf of the District. After
approval as to form and legality by the District’s legal counsel, the successful bidder and the District’s
representative will sign the contract. A copy of the executed contract shall be promptly provided to the
Finance Department for proper accounting review.
6.2.3 Cooperative/ Joint Purchases:
The Purchasing and Facilities Manager may utilize cooperative/"piggyback" contracts, multiple
award schedules and joint power agreements awarded by Federal agencies, any state, municipality
Page 12 of 32
or public agency to purchase goods and services, up to the General Manager’s authorized approval
limit or subject to Board of Directors’ approval when the General Manager’s authority is
exceeded. These purchases are exempt from the District’s competitive solicitation requirements
so long as the contracts, schedules and agreements are solicited in a manner substantially
consistent with District purchasing policies. (Rev 2017-05-03)
6.2.4 Emergency Purchases:
In the event of a catastrophic emergency, the guidelines and requirements as set forth in California state
statute and in the District’s Code of Ordinance shall prevail over those stated herein.
6.2.5 Materials, Goods, Services, and General Consulting:
Purchases of materials, goods and services, the value of which are within the limits authorized by the
Board of Directors, may be made by the District’s General Manager or his/her designee. Competitive
pricing for materials, goods and services must be in accordance with the bidding and pricing procedures
of the District as outlined in Section 7.2.2, 7.2.4, 7.2.5, and 7.2.6 (Pricing/Bidding Requirements) of
this manual as applicable. Purchases shall be made from the bidder whose bid best meets the District’s
requirements and needs as set forth in the invitation to bid or request for quotation. The Board of Directors
of the District must authorize purchases exceeding the General Manager’s authorized approval limit.
At a meeting of the Board of Directors, a summary of bids together with staff’s recommendation for the
award of a contract/purchase order or the rejection of bids shall be presented. Should an award be made,
the Board of Directors of the District will authorize staff to execute a purchase order/contract on behalf
of the District.
6.2.6 Petty Cash:
The primary purpose of petty cash funds is to reduce costs associated with purchases and expenses in
accordance with the District’s financial policies.
6.2.7 Sole Source Purchases:
Other than contracts for construction, alteration or repair of District facilities, a contract may be
awarded for materials, goods, services, or general consulting without competition when the District’s
General Manager or the Board of Directors determines that either the product is designated to match others
in use on a particular public improvement, is a unique or novel product application required to be used in
the public interest, or where only one brand or trade name is known. Sole source purchases may be
made by the District’s General Manager provided the value of the purchase is within the limits authorized
for the General Manager by the Board of Directors of the District and the reason for the sole source
authorization is documented by the General Manager and retained in accordance with District’s record’s
retention policy. The Board of Directors of the District must authorize sole source purchases exceeding
the General Manager’s authorized limit. At a meeting of the Board of Directors, staff will present the
bid submitted together with a recommendation requesting an award of purchase order/contract to the
vendor identified as the sole source. Should an award be made, the Board will authorize staff to
execute a purchase order/contract on behalf of the District.
6.2.8 Blanket Purchase Orders:
Blanket purchase orders are issued to reduce administrative and operational costs, inventories and
paperwork and may be issued for regularly purchased materials, supplies and services. Should a
blanket purchase order be issued, the order shall include a description of each material, supply and/or
service requested, a unit price for each, the period of time the order shall be in effect, and a statement
obligating the vendor to deliver all or a specified part of the District’s usage requirement upon receipt
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of an authorized release from the District. Not included on the blanket purchase order are specific
quantities. Instead of specific quantities, the blanket purchase order shall list an estimate of the quantity
of each item that will be used for the period to which the blanket purchase order refers. Blanket
purchase orders may not be issued for a period of time exceeding one year unless authorized by the
General Manager.
6.2.8.1 Guidelines for Issuing Blanket Purchase Orders:
a. Blanket purchase orders may only be issued, changed, or revoked by the Purchasing and
Facilities Manager or the General Manager.
b. Competitive pricing and vendor selection for blanket purchase orders shall be in accordance
with the policies and guidelines as set forth in this manual.
c. The Board of Directors must authorize blanket purchase orders exceeding the General
Manager’s authorization limit. At a formal meeting of the Board of Directors, a summary of
the requested blanket purchase order(s) shall be presented. The summary shall include a
description of the materials, supplies, and services required, and total order pricing. Should
the Board approve the blanket order(s), they will authorize staff to issue a blanket purchase
order on behalf of the District.
6.2.8.2 Guidelines for the Use of Blanket Purchase Orders:
a. The supervisor of the employee receiving materials, services, and/or goods released against
a blanket purchase order will write the account code/work order information, sign (attesting
that the release is authorized and that all goods/materials/services were received and accepted)
and forward the receiving (packing slips) document to the Finance Department. Processed
shipping documents (coded and signed) must be submitted to the Finance Department no later
than the end of next workday from the date items were received.
b. In the event that invoiced unit pricing exceeds the unit price indicated on the blanket
purchase order, Purchasing will contact the vendor requesting that a corrected invoice be
sent to the District and notify them that payment will be withheld pending the receipt of the
corrected invoice.
c. Should the ordering individual wish the warehouse to take delivery of items released under a
blanket purchase order, notification must be given to warehouse staff. Said notification
should be made by written memorandum or through e-mail or other electronic form and
must include information on the purchase order number assigned to the purchase, what and
when goods are to be delivered, and who will ultimately receive the goods.
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Section 7 – Pricing/Bidding Requirements
7.0 PURPOSE:
To provide requirements, policies, and guidelines for the pricing/bidding of purchases within the Otay
Water District.
7.1 GENERAL:
It is the District’s policy to request competitive pricing from responsible vendors for all purchases
exceeding $10,000. Pricing, although important, is not the only factor in determining the overall cost
and value of a product. Quality, service and delivery are factors that must also be considered when
comparing quotations. It is by weighing these factors that an intelligent decision can be made to purchase
the product with the greatest value for the least overall price. (Rev 2017-05-03)
7.2 REQUIREMENTS:
7.2.1 Formal Advertising:
Public works purchases, as defined in the State of California’s government and contract code, shall follow
the procedure outlined under the California Uniform Public Construction Cost Accounting Act
(CUPCCAA) (Sect 22000 et seq. of the California Contract Code and as set by the California Uniform
Construction Cost Accounting Commission (CUCCAC). Solicitations must contain a brief description of
the goods or services required, state where prospective bidders may obtain plans and specifications and
make any required deposits, state the time and place of the bid opening, and state that the District reserves
the right to reject one or all bids. (Rev 2016-09-07) (Rev 2016-09-07)
7.2.2 Quotations:
For purchases greater than $10,000, excluding public works subject to CUPCCAA or formal bidding, a
minimum of three competitive quotations must be obtained. Quotations received may be in written or oral
form. Should oral quotations be received, written documentation must be made identifying the bidder’s
name, contact name, telephone number, the date of the quotation and the pride bid. Should three quotations
not be obtainable, documentation in the form of a notation of memorandum must be provided and attached
to the purchase requisition. Where only one price is obtainable, the actions taken to obtain competitive
pricing shall be documented and attached to the purchase requisition and the purchase may be made and
the requirements of this section shall be satisfied. (Rev 2016-09-07) (Rev 2017-05-03)
7.2.3 Public Works - Construction
Public work purchases equal to or exceeding what is authorized under the California Uniform Public
Construction Cost Accounting Act (CUPCCAA) (Sect 22000 et seq. of the California Code and as set by
the California Uniform Construction Cost Accounting Commission (CUCCAC) must be formally
advertised and sealed bids received. (Rev 2017-09-07)
The Purchasing and Facilities Manager or the General Manager’s designee, in conjunction with the project
manager, and where appropriate, the District’s legal counsel, shall publicly open all sealed bids and
tabulate the results. The bid tabulation, along with a recommendation for award contract or
possible rejection of bids, shall be forwarded to the District’s General Manager.
In the event that the value of the purchase exceeds the General Manager’s signatory authority, a summary
of bids shall be presented together with staff’s recommendation for an award of contract or possible
rejection of bids to the Board of Directors of the District during a formal board meeting. The Board of
Directors will then authorize the execution of the contract on behalf of the District.
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Award shall be made to the responsive and responsible bidder who has submitted the lowest bid
meeting the requirements and criteria set forth in the invitation to bid. After approval as to form and
legality of the contract documents by legal counsel, the successful bidder and the appropriate District
representative(s) shall execute the contract. A copy of the executed contract shall be promptly provided
to the Finance Department for proper accounting review.
7.2.4 Request for Proposals:
a. For the Solicitation of Professional Consulting (Engineering): (Rev 2016-09-07)
The General Manager, or his/her designee, will establish a review panel to evaluate and rank submittals
(proposals) using criteria published in the Request for Proposals package. Documents, invitations, and
evaluation of submittals for professional consulting services shall be made in compliance with
Government Code Section 4526-4529 and District Policy #21 – Policy for Selection of Professional
Consultants.
b. For the Solicitation of General Consulting and Services:
The General Manager, or his/her designee, shall determine the method for soliciting and evaluating
proposals for general consulting and services. The request for proposal must be in written form and must
provide sufficient information to clearly identify the work required and provide respondents with a
clear understanding of the District’s needs, work specifications, expectations and the criteria that will
be used to evaluate submittals.
7.2.5 Two Step Bidding:
Where it is considered impractical to initially prepare a purchase description to support an award on price,
a request for proposals may be issued requesting the submission of not priced technical proposals. This
will be followed by an invitation for bids limited to those bidders whose technical proposals meet the
requirements set forth in the first invitation.
7.2.6 Purchases Exempt from Competitive Pricing:
The following contract/purchases are exempt from competitive pricing:
1. With Federal, State or Local Agencies,
2. Temporary labor services to fill time-limited employment needs,
3. For the sole purpose of obtaining expert witness for litigation, and
4. That are for legal defense, legal advice, or legal services.
7.2.7 Emergency Purchases:
During times when the General Manager has declared an emergency, where the immediate acquisition
of materials, goods, and services is required, the purchase of needed materials, goods, and services shall
be made in accordance with California state statutes and per the District’s Code of Ordinances.
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7.2.8 Board Authorized Purchases Exceeding the General Manager’s Authority: (Rev 2017-05-03) (Rev 2017-08-02)
a. The General Manager or his/her Designee is authorized to exceed his/her delegated purchasing
authority under Section 2 of the Code of Ordinance and purchase the following goods and services
without Board approval so long as the overall Board Approved District Budget for Labor and
Benefits, Materials and Maintenance and Administrative expenses is not exceeded:
1. Temporary labor services
2. Fuel, gasoline and diesel
3. Sewage Transportation and Processing
4. Water Meters
5. Service and maintenance of the District’s Board adopted sole source Enterprise Resource
Planning (ERP) System, Tyler Eden
6. Service and maintenance of the District’s Board adopted sole source Geographic Information
System, Environmental Systems Research Institute (ESRI)/GIS
7. Medical ServiceHealth Benefits, Property,. Liability Insurance, Workers’ Compensation and
other products and services as provided by Special District Risk Management Authority
(SDRMA), Association of California Water Agencies – Joint Powers Insurance Authority
(AWCCWA-JPIA) or any other Board approved provider. (Rev 2020-064-2803)
8. Regulatory Fees
9. Service and maintenance of the District’s Board adopted sole source Cityworks® work and
asset management system.
10. Service and maintenance of other Board adopted sole and single source enterprise systems,
infrastructure and services.
11. Mount Miguel Antenna Site Lease Agreement and Addendums
b. The General Manager or his/her Designee is authorized to exceed his/her delegated purchasing
authority under Section 2 of the Code of Ordinances and purchase the following goods and services
without Board approval so long as the amounts are commensurate with the District’s water
revenues for the same time period:
1. Water
2. Gas and electric utility for the operation of the District
3. Chemicals and gasses for the treatment of potable and recycled water.
Formatted: Subscript
Formatted: Subscript
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Section 8 – Change Orders
8.0 PURPOSE:
To provide guidelines for the initiation and approval of contract change orders within the Otay Water
District.
8.1 GENERAL:
Change orders may be initiated by the contractor/vendor or by the District. The District’s General
Manager or his/her designee must approve change orders as defined in the District’s Code of
Ordinances, Section 2.01e. The Board must approve change orders exceeding the General Manager’s
authorized limit. Only written change orders are allowed.
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Section 9 – Authorization to Purchase – Signatory Authority
9.0 PURPOSE:
To provide guidelines and protocol for establishing signatory authority for the approval of purchases
within the Otay Water District.
9.1 GENERAL:
The Board of Directors of the District has sole signatory (ability to sign contracts and approve purchases)
authority within the Otay Water District. The Board may, at a regularly scheduled board meeting,
establish signatory authorization limit(s) for the General Manager as defined in the District’s Code of
Ordinances, Section 2.01c-e. The General Manager at his/her discretion may delegate his/her signatory
authority, as he/she deems necessary. Other than as identified in Section 7.2.8 of this Manual, “Board
Authorized Purchases Exceeding the General Managers Authority”, delegated authorization limits may
not exceed those established by the Board for the General Manager. Delegated authorization
must be documented in the form of a memorandum, signed by the General Manager. Included in the
memorandum must be a listing of individuals and/or job classification to whom signatory and
purchase approval authority has been delegated and the maximum dollar value(s) of said authority.
Copies of the memorandum shall be provided to the District’s senior management team and to the
Purchasing and Facilities Manager. The General Manager at his/her discretion may allow the
Department Chiefs to delegate their signatory authority, as they deem necessary within their departments.
(Rev 2017-08-02)
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Section 10 – Documentation of Purchases
10.0 PURPOSE:
To provide standardized guidelines and procedures for documenting the authorization, pricing
and award of contracts within the Otay Water District. All purchases exceeding petty cash limit,
excluding purchases identified as exempt from this requirement under “Purchases Exempt from
Purchase Order Requirement”, shall be required to be documented as prescribed herein.
10.1 GENERAL:
As a public agency, the fundamental practice of documenting purchases must be followed. The
documentation must provide a record of vendor name, address, contact and telephone number, pricing,
authorized purchase approval(s), terms and conditions, consideration, placement of order, receipt of
order and authorization of payment. Documentation will be made on a “purchase requisition” form
(printed or electronic) together with a purchase order/contract (printed or electronic).
10.2 PROCEDURE:
a. A “Purchase Requisition” (requisition) form is an internal control document. It shall be used
to record vendor name, address, contact and telephone number, authorized purchase
approval(s), pricing, quantities and special terms and conditions. Documentation of competitive
pricing may be in the form of a memorandum or note attached to the requisition. For purchases
requiring the use of formal bidding/advertising, the bids received will be retained in accordance
with the District’s record retention policy. The requisition may be in written or electronic form
provided that it is standardized, and immutable.
b. When complete, the requisition will be used to produce a purchase order/contract. A copy
of the completed purchase requisition will be retained in accordance with the District’s record
retention policy.
c. The purchase order/contract represents a written agreement between the District and the Vendor.
In addition to identifying the District and Vendor, it is used to document terms and conditions.
d. The purchase order/contract will be in a form as approved by the District’s legal counsel.
e. The purchase order form shall be the used as the District’s primary contract document
for material, service, and supply purchases. Typically, purchases of professional engineering
services, consulting and major construction require contracts in a form other than a purchase
order. In the event a contract in a form other than a purchase order is used, the District’s
counsel shall approve it as to form. A purchase order may be issued for control purposes
to supplement a contract. In this event, the purchase order will reference the contract document
as representing the agreement between the District and vendor.
10.2.1 Purchases Exempt from Purchase Order Requirement:
a. The Board has identified the following purchases as exempt from the requirement of a
written purchase order/contract:
1. Travel and meeting advances and reimbursements
2. Purchases less than the petty cash limit
3. Prepaid travel expenses, i.e., airfare and hotel
4. Utilities
5. Television and satellite service
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6. Meal reimbursements
7. Telephone usage charges, including wireless telephones and pagers
8. Postage
9. Classified, legal, and display advertising
10. Petty Cash purchases
11. Mileage reimbursement
12. Memberships and dues
13. Subscriptions and books
14. Permits and fees
15. Customer refunds
16. District credit card reimbursements
17. Employee awards, incentives
18. Employee educational reimbursements
19. Seminars and training
20. Purchases made utilizing Cal Card
21. Contracts or letters of agreement as approved by the General Manager or the Board
of Directors
b. Completed purchase requisitions may be required, as determined by the General Manager
or his/her designee.
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Section 11 – Special Considerations
11.0 Exceptions to Purchasing Procedures:
In specific instances, such as Federal Grants and Assessment Districts, there may be specific requirements
in the contract or ordinance relating to the expenditure of such funds. The conditions of such agreements
and ordinances shall take precedence over the procedures established in this manual.
11.1 Bonding:
a. In addition to any required bid deposit or bond, all construction contracts in excess of $35,000
shall require:
1) A PERFORMANCE BOND in the amount of 100% of the contract price, and
2) A LABOR AND MATERIALS BOND in the amount of not less than 50% of the contract
price.
b. For construction contracts under $35,000, bonding shall be in accordance with District Policy
No. 31, Encouraging Disadvantaged Business Enterprise Firms.
11.2 Encouraging Emerging Business Enterprise:
The District’s purchasing practices shall reflect the requirements set forth in District Policy No. 31,
Encouraging Disadvantaged Business Enterprise Firms.
11.3 Insurance:
a. General, Automobile, and Errors and Omissions:
All contracts shall have a requirement for general, automobile, and errors and omissions insurance
as applicable to the type of service or work contemplated. The amount and type of insurance
required for each type of contract shall be at the discretion of the General Manager in an amount
so as to indemnify the District from loss.
b. Workers’ Compensation:
All public works contracts shall have a requirement for workers’ compensation insurance in an
amount as required by law. Additionally, all non-public works contracts shall require workers’
compensation insurance coverage in an amount sufficient to indemnify the District from loss.
11.4 Invoicing:
Financial obligations of the District are normally settled on a Net 30 day payment basis. All
invoices submitted to the District must include:
1) The vendor’s name, business address and date,
2) The District’s purchase order/contract number and the vendor’s invoice number,
3) The shipment date and/or the date of service,
4) The terms of sale and applicable payment discounts,
5) An itemized description of materials purchased or services performed, including quantities,
unit prices, discounts, extensions, and other charges as specified in the purchase order/contract,
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6) Sales and other taxes and freight charges, itemized separately or as specified by the District.
11.5 Receiving, Inspection and Acceptance:
a. All materials, supplies or services furnished shall be exactly as specified, free from all defects and
shall be subject to inspection and testing by the District. The method of inspection to be used
in any particular procurement shall be commensurate with the specific quality and specification
requirements. The Purchasing and Facilities Manager shall be notified immediately if any
materials, supplies or services do not conform to specification. In such cases, the Purchasing
and Facilities Manager shall take appropriate action to protect the interests of the District.
b. Receiving shall be documented on the receiving copy of the purchase order or other electronic
form. When all materials, supplies and/or services have been received, the receiving staff will
forward the vendor’s shipping document(s) to the Finance Department and indicate (in writing or
electronically) that the materials, supplies and/or services have been accepted and that the purchase
order is authorized for payment.
11.6 Specifications:
a. All purchases of materials, supplies and services shall meet the requirements as published by the
District in “Standard Specifications for Water and Sewer Construction”.
b. The requesting person shall define specifications for materials, supplies and services not
addressed by the above referenced publication. The specification shall include information such as
brand or trade names, description of material or method of manufacture, description of performance,
purpose and use, physical and chemical properties, and any other information needed so as to give
the purchasing department enough information to purchase correctly. For purchases requiring a
written specification, it shall be the requisitioning staff’s responsibility to provide a complete
specification document.
c. All specifications shall be drafted so as to assure the maximum practicable competition for the
District’s needs.
11.7 Inventory:
General Manager or his/her designee shall identify District property to be inventoried and shall insure
that periodic inventory reconciliation is performed.
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Section 12 – Disposal of Surplus Property
12.0 PURPOSE:
To provide a standardized method for disposing of materials, supplies and other property, excluding
real property, that is surplus to the needs of the District.
12.1 GENERAL:
a. It is staff’s responsibility to keep the District’s inventories as low as possible and to standardize
materials, supplies and equipment in order to minimize the number of articles carried in stock while
b. Surplus Items - The General Manager shall develop, on an as need basis, an inventory of properties
that are surplus to the District’s needs. The General Manager or his/her designee may declare items
with a residual value less than $10,000.00 as surplus to the needs of the District and authorize their
disposal. Where the residual value of an item exceeds $10,000.00, only the Board of Directors may
declare the property surplus and authorize its disposal.
c. Items of Little or No Value – Items that have no value to the District and little or no value in the
market place except as scrap or for a purpose other than its originally intended use, the General
Manager or his/her designee shall have authority to declare said properties trash or scrap and
12.2 PROCEDURE:
Once property has been declared surplus it shall be the responsibility of the Purchasing and Facilities
Manager, in a manner provided herein and approved by the General Manager, to dispose of the surplus
property. All property shall be disposed of “as is-where is”, with no warranty or guarantee as to
serviceability or usability and where applicable, paid in full in U.S. currency prior to delivery. District
property tags shall be removed from the surplus property prior to its disposal. District employees, as private
individuals, may purchase District surplus property by participating in auction sales as prescribed in
Section 12.2.1 Auction Sale.
12.2.1 Auction Sale:
a. Disposal of surplus property may be accomplished through auction sale.
1) Through consignment of items to a vendor, a private auctioneer, licensed and bonded to do
business in San Diego County, to sell on behalf of the District. Where authorized by the
General Manager, the Purchasing and Facilities Manager shall enter into an agreement with
the vendor that has the potential of generating the most market interest and, therefore, the
highest net proceeds for the District. The consignment vendor shall, at its expense, advertise
the item for sale and shall accept offers for the District, with the District having final
acceptance authority.
2) By advertising for sale in a newspaper of general circulation or in any other manner approved
by the General Manager. Newspaper ads shall be placed at least two (2) weeks prior to the
sale date and shall identify the property for sale. Sealed bids will be solicited unless
otherwise directed by the Purchasing and Facilities Manager and the property will be sold to
the highest bidder.
Bid security shall be provided by requiring that a ten percent (10%) guarantee accompany each
bid or aggregated bid. Such bid security shall be in the form of a certified check, cashier’s
check, or money order payable to the order of the District. Payment of the balance of the total
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bid must be made by the successful bidder within twenty-four (24) hours after the award.
In the event the successful bidder fails to pay the balance of his bid, the bid security will be
forfeited and the award will be made to the next highest responsible bidder.
The successful bidder shall be responsible for all required permits, fees and licenses. The
property shall be removed from District premises in a time frame established by the Purchasing
and Facilities Manager.
3) By participation in a joint municipal/public agency public auction. Where authorized by the
General Manager, the District may dispose of surplus property through participation in a
joint municipal/public agency auction.
12.2.2 Sale to Federal, State, and Local Municipalities and Governmental Agencies:
a. Where it is in the best interest of the public, surplus property may be sold by the Purchasing and
Facilities Manager to municipalities and government agencies in accordance with the follow
guidelines. The Purchasing and Facilities Manager shall give preference to local governmental
agencies located within the District’s boundary.
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1) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
does not exceed $10,000, a negotiated sale may be conducted with the governmental agency
and sale of the item concluded at the price determined to be a fair and reasonable market price
for the item.
2) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
is greater than $10,000 but does not exceed $50,000, the General Manager’s approval shall
be obtained prior to any sale. Information provided to the General Manager shall, at a
minimum, identify the government entity, the rationale behind the sale at the value, and the
manner in which the fair market value was determined.
3) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
is greater than $50,000, Board approval shall be obtained prior to any sale. Information
provided to the Board shall, at a minimum, identify the government entity, the rationale behind
the sale at that value, and the manner in which the fair market value was determined.
12.2.3 Sale to Republic of Mexico, U.S. Municipalities and Government Agencies:
a. When the District has declared items surplus to its needs and the Purchasing and Facilities
Manager has determined that the item(s) should be sold in accordance with the guidelines
contained herein, such item(s) may be sold to Republic of Mexico, U.S. municipalities and/or
government agencies under the following guidelines:
1) Prior to consummating any sale to a Republic of Mexico, U.S. municipality and/or
governmental agency, the Purchasing and Facilities Manager shall ensure that right of first
refusal for known requirements is offered to local governmental agencies.
2) The Republic of Mexico, U.S. municipality and/or governmental agency shall forward to the
Purchasing and Facilities Manager, a written official request which provides the following
information:
a. Name and address of municipality or governmental agency.
b. Name and telephone number of responsible official who can consummate a resulting sale
agreement and sign appropriate sale documents.
c. Description and quantity of surplus property items desired.
d. Statement as to how the items requested will be used by the requesting municipality or
governmental agency.
3) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
does not exceed $50,000, the General Manager’s approval shall be obtained. Information
provided to the General Manager shall, at a minimum, identify the government entity, the
rationale behind the sale at that value, and the manner in which the fair market value was
determined.
4) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
is greater than $50,000, Board approval shall be obtained. Information provided to the
Board shall, at a minimum, identify the government entity, the rationale behind the sale at that
value, and the manner in which the fair market value was determined.
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12.2.4 Donation of District Surplus Property to Municipalities, Governmental Agencies, and Charitable
Organizations:
a. Where it is in the best interest of the public, surplus District property of no or De Minimus
value, where proceeds of the sale of the property will be less than the cost of the sale of the property,
may be donated under the following guidelines to municipalities, governmental agencies, and
charitable organizations in lieu of discarding such property:
b. The District’s Purchasing and Facilities Manager shall first assess the value of the item and the
cost of disposal and make a determination that the item has no value or De Minimus value.
c. The requesting municipality, public agency, or charitable organization shall forward to the
Purchasing and Facilities Manager a written donation request, approved by its governing board or
chief operating officer, which includes the following minimum information:
1. Name and address of municipality, agency, or charitable organization.
2. Name and telephone number of responsible official who will accept the donation, if
approved, and sign appropriate donation documents.
3. Description and quantity of surplus property items desired.
4. Statement as to how the items requested will be used by the requesting public agency.
5. Proof of charitable status (501 (C)) organizations as applicable.
d. Donation of surplus items requested shall be made to requesting entities giving priority to
entities as follows:
1. Public agencies within the District’s boundary
2. Public agencies outside of the District’s boundary
3. Charitable organizations within the District’s boundary
4. Charitable organizations outside of the District’s boundary
e. Donation of District owned surplus property of no or De Minimus value may be approved by
the Purchasing and Facilities Manager when the estimated total fair market value of the
donation, as determined by the Purchasing and Facilities Manager, does not exceed either $25
per item or $500 per lot.
f. Donation of District owned surplus property of no or De Minimus value may be approved by
the General Manager when the estimated total fair market value, as determined by the
Purchasing and Facilities Manager, does not exceed $10,000.
g. Donation of District owned surplus property of no or De Minimus value, where the total
estimated fair market value of the donation, as determined by the Purchasing and Facilities
Manager, exceeds $10,000 shall be made by the Board.
h. For the purpose of this policy, charitable organizations shall mean a non-profit organization exempt
from taxation under the provisions of the Internal Revenue Code, 26 U.S.C. 501 (C), whose primary
purpose is public service or a Republic of Mexico registered public organization promoting
economic and social well-being in the border region.
i. In consideration for the donation and as a condition of transfer, the recipient of the donated surplus
shall execute a release and indemnification agreement satisfactory to the District’s General Counsel.
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12.2.5 Exchange or Trade-In:
Where deemed by the Purchasing and Facilities Manager to be in the best interest of the District, the
surplus property may be exchanged or traded in on new supplies and equipment. Trade-in values must
be documented and retained in accordance with the District’s records retention policy.
12.2.6 Disposal as Scrap:
In the case of surplus property that has been determined by the General Manager or their designee to be
trash or scrap with no or De Minimus value, and where no governmental or non-profit organization
expresses interest in the item, the Purchasing and Facilities Manager may dispose of the property in any
manner deemed appropriate. Where property is disposed of as scrap, full records of such disposal shall
be kept.
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Section 13 –Credit Cards
13.0 PURPOSE:
To provide procedures and guidelines for the issuing and use of credit cards and for the
administration of the Cal-Card Program within the District.
13.1 GUIDELINES:
a. The General Manager is authorized to be issued and to issue credit cards and to establish
revolving credit accounts with vendors where it is in the best interest of the District, in
accordance with applicable statutes and laws.
b. Where feasible, the issuing of credit cards shall be through the State of California Cal Card
Program.
c. Use of credit cards shall be limited to appropriate purchases as defined herein.
d. Purchases utilizing credit cards shall be made in accordance with this policy and established
purchasing procedures and guidelines as defined in the District’s Purchasing Manual. This
includes, but is not limited to complying with the District’s requirements related to authorization
and pricing/ bidding.
e. The intent of utilizing credit cards, and in particular Cal-Card credit cards, is to:
1. Reduce costs associated with the accounts payable function,
2. Reduce payment time to District suppliers,
3. Provide a means to take advantage of time sensitive price discounts,
4. Enhance District operations and reduce cost,
5. Reduce dependency on petty cash disbursements,
6. Provide for expedient purchases during emergencies.
13.2 DEFINITIONS:
a. Cal-Card Program: A system developed by the State of California (under Governor Wilson’s
Executive Order W-73-94) designed to facilitate public credit card purchases up to $50,000.
b. I.M.P.A.C. Government Services (IMPAC): Credit Card provider contracted with the State
of California, through a Master Service Agreement, to provide Visa Credit Card service;
maintain master file and account for each card holder; send monthly statements to each
cardholder, approving official, and agency or district accounting office.
c. District Representative: The District’s contact person for program and accounting office
functions; determines which District personnel receives cards; establishes card limits
including purchase restrictions; establishes District’s procedures and guidelines for
participation in the Cal-Card Program.
d. Cardholder: Person(s) designated by the District’s Representative as being authorized to
make purchases using credit cards and/or the Cal-Card Program within District procedures
and guidelines.
e. Approving Official: Person(s) designated by the District’s Representative to review,
approve, and/or certify monthly cardholder billing statements and adherence to District
purchasing and budgetary procedures; forwards monthly statements to the District’s
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accounting office.
f. Accounting Office Representative: Person designated within the District to receive and
process credit card statements and documentation.
g. Credit Card Limit: The transaction and spending limit established by the District
Representative for a Cardholder.
13.3 PROCEDURE:
Purchases made utilizing credit cards and/or Cal-Cards shall comply with the District’s
requirements, guidelines and procedures as defined within the District’s Purchasing Manual.
13.4 APPROPRIATE PURCHASES:
a. The General Manager or his/her designee shall determine which goods and services are
appropriate for purchase using credit cards and may, in the best interest of the District,
restrict where, when and how credit cards are utilized. The value of a purchase made using
credit cards is limited to the signatory authority of the General Manager and must be
categorized as one of the following:
1. Exempt from the requirement of a purchase order/contract,
2. Made under the auspices of a blanket purchase order,
3. Documented and approved in a form approved by the General Manager,
4. Made under an emergency declared by authority of the General Manager.
13.5 RESPONSIBILITIES UNDER THE CAL_CARD PROGRAM:
13.5.1 District’s Representative:
a. The General Manager or his/her designee is the District’s Representative relative to the Cal-
Card program.
b. The District’s Representative shall be responsible, for:
1. Completion and processing of State required documentation for participation in the Cal-
Card program,
2. Establishment of credit card limits (Credit card limits shall not exceed the purchasing
authority of the General Manager as granted by the Board of Directors and those limits
established by the General Manager under his/her Signatory Authority Delegation
Schedule),
3. Identification of Cardholders, Approving Officials, and Accounting Office
Representative,
4. Overseeing of the Cal-Card Program within the District,
5. Insuring adherence to the District’s purchasing policies, procedures and practice.
13.5.2 Cardholder:
a. The Cardholder shall be responsible for:
1. Adhering to the procedures and guidelines set herein,
2. Reviewing his/her monthly statements for accuracy,
3. Retaining, reconciling, and attaching sales slips and, when applicable, approved
requisitions to his/her monthly statement,
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4. Providing and documenting account code information on monthly statements by
transaction,
5. Submitting his/her reconciled statement, with attachments, to his/her Approving Official
in a timely manner.
13.5.3 Approving Official:
a. The Approving Official shall be responsible for:
1. Adhering to the procedures and guidelines set herein,
2. Reviewing and approving for payment the monthly statements for those cardholders
under his/her supervision,
3. Insuring that all information required for payment, including account coding, of monthly
statements is provided to the Finance Department,
4. Requesting additional documentation if necessary,
5. Forwarding all statements to the Finance Department in a timely manner.
13.5.4 Finance Department Representative:
1. The Finance Department Representative shall be responsible for:
1. Adhering to the procedures and guidelines set herein,
2. Receiving consolidated monthly statements,
3. Receiving reconciled statements from Approving Officials,
4. Reconciling statements in accordance with District procedures and policies governing
the accounts payable function.
Page 31 of 32
Appendix
1. Otay Water District Board of Directors Policy No. 21
2. Otay Water District Board of Directors Policy No. 31
3. Otay Water District Memorandum -Signatory Authority Delegation (Revised as necessary by the
General Manager)
Page 32 of 32
Revisions
1. Codified October 2009
2. October 2014 –Amend Section 12 - Disposal of Surplus Property by Board action,
3. April 2016 – Amend Section 7.2.8 Board Authorized Purchases Exceeding the General Manager’s
Authority by Board action.
4. August 2016 – Correction of minor spelling errors. Board action not required.
5. September 2016 – CUPCCAA adoption. Section 7 – Pricing/Bidding Requirements by Board action.
6. May 3, 2017 - Section 2 – Organization; 6.2.3 Cooperative/ Joint Purchases; Section 7 –
Pricing/Bidding Requirements; 7.2.8 Board Authorized Purchases Exceeding the General Manager’s
Authority; miscellaneous formatting by Board action.
7. June 7, 2017 – Added: Section 7.2.8, a, 8. Regulatory Fees
8. August 2, 2017 – Modified: Section 7.2.8, a, 7 Liability Insurance and other services added; Added:
Section 7.2.8, a, 9. Cityworks, 10. Enterprise Systems, 11. Antenna Lease Agreement; Modified:
Section 2 – Organization: Assistant GM deleted; Modified: Section 9 – Authorization to Purchase –
Signatory Authority: Assistant GM deleted
8.9. April 28June 3, 2020 – Appended Section 7.2.8, a, 7 to include: Association of California Water
Agencies – Joint Powers Insurance Authority (AWCCWA-JPIA) or any other Board approved
provider.
Page 1 of 31
OTAY WATER DISTRICT
PURCHASING MANUAL
Revised June 3, 2020
Page 2 of 31
Table of Contents
Section Page
1 – Mission and Ethics Statement . . . . . . . . . . . . . . . . . . . 4
2 – Organization . . . . . . . . . . . . . . . . . . . . . 5
Purpose
Statement
Responsibilities
3 - Purchasing Policy . . . . . . . . . . . . . . . . . . . 7
Purpose
General
Policies
4 - Purchasing Guidelines . . . . . . . . . . . . . . . . . 9
Purpose
General
Guidelines and Protocols
Vendor Involvement
Guidelines and Protocols
5 - Legal Considerations Regarding Purchasing . . . . . . . 11
Purpose
General
6 - Types of Purchases . . . . . . . . . . . . . . . . . . 12
Purpose
General
Procedures
Construction Services (Public Works)
Professional Consulting
Cooperative/Joint Purchases
Emergency Purchases 13
Materials, Goods, Services, and General Consulting
Petty Cash
Sole Source Purchases
Blanket Purchase Orders:
Guidelines for Issuing Blanket Purchase Orders 14
Guidelines for the Use of Blanket Purchase Orders
7 - Pricing/Bidding Requirements . . . . . . . . . . . . . . 15
Purpose
General
Requirements
Formal Advertising
Quotations
Public Works – Construction
Request for Proposals 16
Two Step Bidding
Purchases Exempt from Competitive Pricing
Emergency Purchases 17
Page 3 of 31
Board Authorized Purchases Exceeding the General Manager’s Authority
8 - Change Orders . . . . . . . . . . . . . . . . . . . . . 18
Purpose
General
9 - Authorization to Purchase – Signatory Authority . . . . 19
Purpose
General
10 - Documentation of Purchases . . . . . . . . . . . . . . 20
Purpose
General
Procedure
Purchases Exempt from Purchase Order Requirement
11 - Special Considerations . . . . . . . . . . . . . . . . 22
Exceptions to Purchasing Procedures
Bonding
Encouraging Emerging Business Enterprise
Insurance
Invoicing
Receiving, Inspection and Acceptance 23
Specifications
Inventory
12 - Disposal of Surplus Property . . . . . . . . . . . . . 24
Purpose
General
Procedure
Auction Sale
Sale to Federal, State, and Local Municipalities and Government Agencies 25
Sale to Republic of Mexico Municipalities and U.S. Government Agencies 26
Donation of District Surplus Property to Municipalities, Government Agencies, and
Charitable Organizations 27
Exchange or Trade-In 28
Disposal as Scrap
13 – Cal Card Credit Cards . . . . . . . . . . . . . . . . . 29
Purpose
Guidelines
Definitions
Procedure 30
Authorized Purchases
Responsibilities
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Revisions . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Page 4 of 31
Section 1 – Mission and Ethics Statement
1.0 PURPOSE:
To provide an understanding of the basic goal of the purchasing function within the Otay Water District.
1.1 MISSION STATEMENT:
To provide for the procurement, storage and distribution of all supplies, equipment and services for the
District using progressive purchasing techniques, methods and stringent controls while seeking the
highest cost savings for the customers of the District.
1.2 ETHICS STATEMENT:
The Otay Water District, its governing Board, employees, and agents who are involved at any point in
the process to select suppliers, award and administer contracts and approve payments must adhere to
high standards of ethical behavior. To this end, the policies and guidelines established in this Purchasing
Manual are intended to ensure that purchasing and purchasing related decisions are in accordance with
adherence to the high ethical standards of the purchasing community and of the Otay Water District.
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Section 2 – Organization
(Rev 2017-05-03) (Rev 2017-08-02)
2.0 PURPOSE:
To provide an understanding of the Purchasing Division’s organization and its relationship within the
Otay Water District.
2.1 STATEMENT:
The Purchasing and Facilities Manager directs the Purchasing and Facilities Division. The Purchasing
and Facilities Manager reports to the Chief of Administrative Services, who in turn reports to the General
Manager. The General Manager reports to the Board of Directors.
Board of Directors
|
General Manager
|
Chief of Administrative Services
|
Purchasing and Facilities Manager
2.2 RESPONSIBILITIES:
2.2.1 Board of Directors – Ultimate authority regarding the purchasing policies, practices and guidelines
of the District rests with the Board of Directors. It is the Board’s responsibility to establish policy and
direction regarding purchasing functions in accordance with the District’s Code of Ordinances.
2.2.2 General Manager – The General Manager is responsible, in accordance with the District’s Code of
Ordinances, for ensuring that the District complies with Board direction regarding the purchasing
function.
2.2.3 (Deleted)
2.2.4 Chief of Administrative Services – It is the Chief’s responsibility to administer the District’s
Purchasing and Facilities Division as directed by the General Manager.
2.2.5 Purchasing and Facilities Manager – It is the Manager’s responsibility to manage the Purchasing
and Facilities Division as directed by the Chief of Administrative Services and to:
a. Develop objectives, policies, programs and procedures for the negotiation and the
acquisition of materials, supplies, equipment and services for the District.
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b. Coordinate purchasing policies throughout the District.
c. Disseminate to other departments purchasing information designed to promote efficient
operations.
d. Negotiate and approve assigned purchase orders in the best interest of the District.
e. Make purchases for the District in such a manner so as to maximize the value received for
monies expended.
f. Arrange for the sale or disposal of materials and supplies declared surplus by the Board of
Directors.
g. Maintain inventory levels at a satisfactory operating level.
h. Work with District departments to promote vendor/seller relations.
i. Work with District Departments and Committees establishing standardization of
workmanship, materials and supplies used throughout the District.
j. Protect the District’s interest in matters concerning charges related to the purchasing of
materials, supplies and services.
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Section 3 – Purchasing Policy
3.0 PURPOSE:
To provide an understanding of the purchasing function and to establish and present the
purchasing policies within the Otay Water District.
3.1 GENERAL:
Purchasing is fundamental to the operation of the District. It means the acquisition of goods and
services in exchange for an acceptable price or consideration. A purchase may be in the simplest
form or it may involve the development of lengthy written agreements. Every purchase involving
the transfer of goods or services is a contract. As a contract, there are considerations as to the
nature of the purchase, its value, timing, method of payment, delivery, and other conditions that
must be addressed. For this reason, it is the District’s policy to rest the responsibility and authority
to purchase within the Purchasing and Facilities Division (Purchasing Department).
3.2 POLICIES:
a. General Policy: All purchases and requests for pricing or repair services shall be made in
accordance with applicable laws and the District’s Purchasing Manual, policies, and
procedures.
b. Open Door Policy: The Purchasing Department shall maintain an “Open Door” policy
with all salespeople desiring to sell goods or services to the District.
c. Interviews with Salespeople: If it is necessary for staff, other than Purchasing Department
personnel, to interview salespeople regarding details of their products, requests for such
visits should be made through the Purchasing Department. In interviews with salespeople,
no one except the Purchasing Department may comment on the preference for any product,
or give any information regarding performance or price.
d. Correspondence with Suppliers: All correspondence with suppliers must be processed
through the Purchasing Department unless it is technical in nature and makes no references
towards purchasing.
e. Negotiated Changes: Unless authorized by the General Manager, the Purchasing
Department will negotiate all changes to purchases.
f. Authority to Question: In order to serve the best interest of the District, the
Purchasing Department shall have the authority to question all requests for purchases
regarding quantity, quality, timing, and specifications.
g. Approval of Gratis Materials and Samples: The Purchasing Department must approve all
gratis materials, supplies or services submitted to the District as samples or tests prior to
their acceptance.
h. Conflict of Interest: Employees are required to disclose to the Purchasing Department
any conflict of interest in the selection or recommendation for selection of District
vendors, suppliers, or consultants. All contracts shall contain language, as approved
by the District’s legal counsel, requiring Vendors, Suppliers, and Consultants to disclose
any actual and potential conflicts of interest that exist between the Vendor, Supplier, or
Consultant and the District, its representatives, agents, Board of Directors, and employees.
Page 8 of 31
Section 4 – Purchasing Guidelines
4.0 PURPOSE:
To provide guidelines and protocol for the standardized application of purchasing activities within
the Otay Water District.
4.1 GENERAL:
To a large extent, the Purchasing and Facilities Division’s (Purchasing Department) performance
will be measured by how well it satisfies the needs of various departments within the District. It is
essential that there be mutual cooperation between District departments to ensure that a condition
of confidence exists. For this reason the following standardized guidelines and protocols have been
established.
4.1.1 Guidelines and Protocol:
a. Departments will keep the Purchasing Department informed of their current and anticipated
activities.
b. Overlapping duties regarding purchases will be clearly defined in the best interest of
the District.
c. If the material or equipment requested is not readily available or its price is such that
significant savings can be realized through alternatives, the alternative that is in the best
interest of the District shall be selected.
d. Policies and procedures of the District’s Purchasing Manual will be followed.
e. The Purchasing Department will notify interested departments on matters related to
shortages, new products, discontinued products or anything else that directly affects the
performance of the interested department, the Purchasing Department, or the District.
4.2 VENDOR INVOLVEMENT
Through the Purchasing Department’s contact with vendors, it is in a position to develop or
diminish the District’s reputation and/or vendor/District relationships. The District promotes a
fair and aggressive purchasing manner that results in positive vendor relationships. To
accomplish this, the District has established the following standardized guidelines and
protocols.
4.2.1 Guidelines and Protocol:
a. All competition between suppliers is to be kept open and fair.
b. Advantages through vendor errors shall be declined.
c. Revision of bids after submission shall not be accepted.
d. Materials not strictly up to specification that may be usable without sacrifice shall be
reviewed.
e. Bids shall only be solicited from those vendors with whom the District intends to do
business.
Page 9 of 31
f. The District shall not be obligated to any particular vendor.
g. Vendor locations may be visited to promote product and vendor knowledge.
h. Transactions and communications with vendors shall be truthful yet shall not divulge
sensitive or confidential information related to competition.
i. Vendor questions, calls or correspondence shall be answered promptly and in a manner that
maintains fair competition.
Page 10 of 31
Section 5 – Legal Considerations Regarding Purchasing
5.0 PURPOSE:
To provide understanding and direction related to legal considerations within the purchasing function of
the Otay Water District.
5.1 GENERAL:
The District has designated that the Purchasing and Facilities Manager has the authority to act fiducially
as its agent with regard to the purchase of materials, supplies, and services. This designation is referred
to as Law of Agency. As such, the Purchasing and Facilities Manager binds the District to whatever
buying decision is made and makes the District responsible for any purchase order issued under his/her
limits of authority. In addition to acting in the best interest of the District, the Purchasing and Facilities
Manager must ensure that various Federal and State statutes governing purchasing and interstate
commerce are complied with. For these reasons, consultation with the District’s legal counselor shall
be made whenever there is a question concerning anti-trust implications, warranty, risk of loss and
rights and remedies of the District.
Page 11 of 31
Section 6 – Types of Purchases
6.0 PURPOSE:
To provide standardized procedures for the purchase of consulting, construction, materials, goods, and
services within the Otay Water District.
6.1 GENERAL:
The District recognizes the varying levels of complexity within the purchasing function and the need to
establish standardized procedures to administer the various types of purchases made within the District.
6.2 PROCEDURES:
6.2.1 Construction Services (Public Works):
The General Manager, or his/her designee, may award purchase orders/contracts for construction services
that are within the authorization limit of the General Manager as set by the Board of Directors.
Competitive pricing of construction purchases must be in accordance with the bidding and pricing
procedures of the District as outlined in Section 7.2.3 (Pricing/Bidding Requirements) of this manual.
Award shall be made to the responsive and responsible bidder who has submitted the lowest bid
meeting the requirements and criteria set forth in the invitation to bid. For construction contracts
exceeding staff’s limit of authorization, a summary of bids together with staff’s recommendation for
award or possible rejection of bids must be presented to the Board of Directors of the District at a board
meeting. Should an award be made, the Board of Directors will authorize staff to execute a contract on
behalf of the District. After approval as to form and legality by the District’s legal counsel, the successful
bidder and the District’s representative will sign the contract. A copy of the executed contract
shall be promptly provided to the Finance Department for proper accounting review. If after
notification, the successful bidder fails to execute the contract within ten (10) days, the bid deposit,
made in cash, cashier’s check, certified check, or bid bond will be forfeited.
6.2.2 Professional Consulting:
The General Manager, or his/her designee, may award purchase orders/contracts for professional
consulting services that are within the authorization limits as set by the Board of Directors. Professional
Consulting Services are defined as architectural, Engineering, Environmental and any other service as
identified within the California Government Code § 4525-4529. Competitive pricing of consulting
services must be in accordance with the bidding and pricing procedures of the District as outlined in
Section 7.2.4a (Pricing/Bidding Requirements) of this manual. Award shall be made to the consultant
whose response to a request for proposal best meets the District’s needs. At the discretion of the Board
of Directors or the General Manager, the review of submitted proposals may be made by a Committee
established by the Board or the General Manager. For professional consulting contracts exceeding the
General Manager’s limit of authorization, a summary of bids together with staff’s recommendation for
award must be presented to the Board of Directors of the District at a board meeting. Should an award be
made, the Board of Directors will authorize staff to execute a contract on behalf of the District. After
approval as to form and legality by the District’s legal counsel, the successful bidder and the District’s
representative will sign the contract. A copy of the executed contract shall be promptly provided to the
Finance Department for proper accounting review.
6.2.3 Cooperative/ Joint Purchases:
The Purchasing and Facilities Manager may utilize cooperative/"piggyback" contracts, multiple
award schedules and joint power agreements awarded by Federal agencies, any state, municipality
Page 12 of 31
or public agency to purchase goods and services, up to the General Manager’s authorized approval
limit or subject to Board of Directors’ approval when the General Manager’s authority i s
exceeded. These purchases are exempt from the District’s competitive solicitation requirements
so long as the contracts, schedules and agreements are solicited in a manner substantially
consistent with District purchasing policies. (Rev 2017-05-03)
6.2.4 Emergency Purchases:
In the event of a catastrophic emergency, the guidelines and requirements as set forth in California state
statute and in the District’s Code of Ordinance shall prevail over those stated herein.
6.2.5 Materials, Goods, Services, and General Consulting:
Purchases of materials, goods and services, the value of which are within the limits authorized by the
Board of Directors, may be made by the District’s General Manager or his/her designee. Competitive
pricing for materials, goods and services must be in accordance with the bidding and pricing procedures
of the District as outlined in Section 7.2.2, 7.2.4, 7.2.5, and 7.2.6 (Pricing/Bidding Requirements) of
this manual as applicable. Purchases shall be made from the bidder whose bid best meets the District’s
requirements and needs as set forth in the invitation to bid or request for quotation. The Board of Directors
of the District must authorize purchases exceeding the General Manager’s authorized approval limit.
At a meeting of the Board of Directors, a summary of bids together with staff’s recommendation for the
award of a contract/purchase order or the rejection of bids shall be presented. Should an award be made,
the Board of Directors of the District will authorize staff to execute a purchase order/contract on behalf
of the District.
6.2.6 Petty Cash:
The primary purpose of petty cash funds is to reduce costs associated with purchases and expenses in
accordance with the District’s financial policies.
6.2.7 Sole Source Purchases:
Other than contracts for construction, alteration or repair of District facilities, a contract may be
awarded for materials, goods, services, or general consulting without competition when the District’s
General Manager or the Board of Directors determines that either the product is designated to match others
in use on a particular public improvement, is a unique or novel product application required to be used in
the public interest, or where only one brand or trade name is known. Sole source purchases may be
made by the District’s General Manager provided the value of the purchase is within the limits authorized
for the General Manager by the Board of Directors of the District and the reason for the sole source
authorization is documented by the General Manager and retained in accordance with District’s record’s
retention policy. The Board of Directors of the District must authorize sole source purchases exceeding
the General Manager’s authorized limit. At a meeting of the Board of Directors, staff will present the
bid submitted together with a recommendation requesting an award of purchase order/contract to the
vendor identified as the sole source. Should an award be made, the Board will authorize staff to
execute a purchase order/contract on behalf of the District.
6.2.8 Blanket Purchase Orders:
Blanket purchase orders are issued to reduce administrative and operational costs, inventories and
paperwork and may be issued for regularly purchased materials, supplies and services. Should a
blanket purchase order be issued, the order shall include a description of each material, supply and/or
service requested, a unit price for each, the period of time the order shall be in effect, and a statement
obligating the vendor to deliver all or a specified part of the District’s usage requirement upon receipt
Page 13 of 31
of an authorized release from the District. Not included on the blanket purchase order are specific
quantities. Instead of specific quantities, the blanket purchase order shall list an estimate of the quantity
of each item that will be used for the period to which the blanket purchase order refers. Blanket
purchase orders may not be issued for a period of time exceeding one year unless authorized by the
General Manager.
6.2.8.1 Guidelines for Issuing Blanket Purchase Orders:
a. Blanket purchase orders may only be issued, changed, or revoked by the Purchasing and
Facilities Manager or the General Manager.
b. Competitive pricing and vendor selection for blanket purchase orders shall be in accordance
with the policies and guidelines as set forth in this manual.
c. The Board of Directors must authorize blanket purchase orders exceeding the General
Manager’s authorization limit. At a formal meeting of the Board of Directors, a summary of
the requested blanket purchase order(s) shall be presented. The summary shall include a
description of the materials, supplies, and services required, and total order pricing. Should
the Board approve the blanket order(s), they will authorize staff to issue a blanket purchase
order on behalf of the District.
6.2.8.2 Guidelines for the Use of Blanket Purchase Orders:
a. The supervisor of the employee receiving materials, services, and/or goods released against
a blanket purchase order will write the account code/work order information, sign (attesting
that the release is authorized and that all goods/materials/services were received and accepted)
and forward the receiving (packing slips) document to the Finance Department. Processed
shipping documents (coded and signed) must be submitted to the Finance Department no later
than the end of next workday from the date items were received.
b. In the event that invoiced unit pricing exceeds the unit price indicated on the blanket
purchase order, Purchasing will contact the vendor requesting that a corrected invoice be
sent to the District and notify them that payment will be withheld pending the receipt of the
corrected invoice.
c. Should the ordering individual wish the warehouse to take delivery of items released under a
blanket purchase order, notification must be given to warehouse staff. Said notification
should be made by written memorandum or through e-mail or other electronic form and
must include information on the purchase order number assigned to the purchase, what and
when goods are to be delivered, and who will ultimately receive the goods.
Page 14 of 31
Section 7 – Pricing/Bidding Requirements
7.0 PURPOSE:
To provide requirements, policies, and guidelines for the pricing/bidding of purchases within the Otay
Water District.
7.1 GENERAL:
It is the District’s policy to request competitive pricing from responsible vendors for all purchases
exceeding $10,000. Pricing, although important, is not the only factor in determining the overall cost
and value of a product. Quality, service and delivery are factors that must also be considered when
comparing quotations. It is by weighing these factors that an intelligent decision can be made to purchase
the product with the greatest value for the least overall price. (Rev 2017-05-03)
7.2 REQUIREMENTS:
7.2.1 Formal Advertising:
Public works purchases, as defined in the State of California’s government and contract code, shall follow
the procedure outlined under the California Uniform Public Construction Cost Accounting Act
(CUPCCAA) (Sect 22000 et seq. of the California Contract Code and as set by the California Uniform
Construction Cost Accounting Commission (CUCCAC). Solicitations must contain a brief description of
the goods or services required, state where prospective bidders may obtain plans and specifications and
make any required deposits, state the time and place of the bid opening, and state that the District reserves
the right to reject one or all bids. (Rev 2016-09-07) (Rev 2016-09-07)
7.2.2 Quotations:
For purchases greater than $10,000, excluding public works subject to CUPCCAA or formal bidding, a
minimum of three competitive quotations must be obtained. Quotations received may be in written or oral
form. Should oral quotations be received, written documentation must be made identifying the bidder’s
name, contact name, telephone number, the date of the quotation and the pride bid. Should three quotations
not be obtainable, documentation in the form of a notation of memorandum must be provided and attached
to the purchase requisition. Where only one price is obtainable, the actions taken to obtain competitive
pricing shall be documented and attached to the purchase requisition and the purchase may be made and
the requirements of this section shall be satisfied. (Rev 2016-09-07) (Rev 2017-05-03)
7.2.3 Public Works - Construction
Public work purchases equal to or exceeding what is authorized under the California Uniform Public
Construction Cost Accounting Act (CUPCCAA) (Sect 22000 et seq. of the California Code and as set by
the California Uniform Construction Cost Accounting Commission (CUCCAC) must be formally
advertised and sealed bids received. (Rev 2017-09-07)
The Purchasing and Facilities Manager or the General Manager’s designee, in conjunction with the project
manager, and where appropriate, the District’s legal counsel, shall publicly open all sealed bids and
tabulate the results. The bid tabulation, along with a recommendation for award contract or
possible rejection of bids, shall be forwarded to the District’s General Manager.
In the event that the value of the purchase exceeds the General Manager’s signatory authority, a summary
of bids shall be presented together with staff’s recommendation for an award of contract or possible
rejection of bids to the Board of Directors of the District during a formal board meeting. The Board of
Directors will then authorize the execution of the contract on behalf of the District.
Page 15 of 31
Award shall be made to the responsive and responsible bidder who has submitted the lowest bid
meeting the requirements and criteria set forth in the invitation to bid. After approval as to form and
legality of the contract documents by legal counsel, the successful bidder and the appropriate District
representative(s) shall execute the contract. A copy of the executed contract shall be promptly provided
to the Finance Department for proper accounting review.
7.2.4 Request for Proposals:
a. For the Solicitation of Professional Consulting (Engineering): (Rev 2016-09-07)
The General Manager, or his/her designee, will establish a review panel to evaluate and rank submittals
(proposals) using criteria published in the Request for Proposals package. Documents, invitations, and
evaluation of submittals for professional consulting services shall be made in compliance with
Government Code Section 4526-4529 and District Policy #21 – Policy for Selection of Professional
Consultants.
b. For the Solicitation of General Consulting and Services:
The General Manager, or his/her designee, shall determine the method for soliciting and evaluating
proposals for general consulting and services. The request for proposal must be in written form and must
provide sufficient information to clearly identify the work required and provide respondents with a
clear understanding of the District’s needs, work specifications, expectations and the criteria that will
be used to evaluate submittals.
7.2.5 Two Step Bidding:
Where it is considered impractical to initially prepare a purchase description to support an award on price,
a request for proposals may be issued requesting the submission of not priced technical proposals. This
will be followed by an invitation for bids limited to those bidders whose technical proposals meet the
requirements set forth in the first invitation.
7.2.6 Purchases Exempt from Competitive Pricing:
The following contract/purchases are exempt from competitive pricing:
1. With Federal, State or Local Agencies,
2. Temporary labor services to fill time-limited employment needs,
3. For the sole purpose of obtaining expert witness for litigation, and
4. That are for legal defense, legal advice, or legal services.
7.2.7 Emergency Purchases:
During times when the General Manager has declared an emergency, where the immediate acquisition
of materials, goods, and services is required, the purchase of needed materials, goods, and services shall
be made in accordance with California state statutes and per the District’s Code of Ordinances.
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7.2.8 Board Authorized Purchases Exceeding the General Manager’s Authority: (Rev 2017-05-03) (Rev 2017-08-02)
a. The General Manager or his/her Designee is authorized to exceed his/her delegated purchasing
authority under Section 2 of the Code of Ordinance and purchase the following goods and services
without Board approval so long as the overall Board Approved District Budget for Labor and
Benefits, Materials and Maintenance and Administrative expenses is not exceeded:
1. Temporary labor services
2. Fuel, gasoline and diesel
3. Sewage Transportation and Processing
4. Water Meters
5. Service and maintenance of the District’s Board adopted sole source Enterprise Resource
Planning (ERP) System, Tyler Eden
6. Service and maintenance of the District’s Board adopted sole source Geographic Information
System, Environmental Systems Research Institute (ESRI)/GIS
7. Health Benefits, Property, Liability Insurance, Workers’ Compensation and other products and
services as provided by Special District Risk Management Authority (SDRMA), Association
of California Water Agencies – Joint Powers Insurance Authority (ACWA-JPIA) or any other
Board approved provider. (Rev 2020-06-03)
8. Regulatory Fees
9. Service and maintenance of the District’s Board adopted sole source Cityworks® work and
asset management system.
10. Service and maintenance of other Board adopted sole and single source enterprise systems,
infrastructure and services.
11. Mount Miguel Antenna Site Lease Agreement and Addendums
b. The General Manager or his/her Designee is authorized to exceed his/her delegated purchasing
authority under Section 2 of the Code of Ordinances and purchase the following goods and services
without Board approval so long as the amounts are commensurate with the District’s water
revenues for the same time period:
1. Water
2. Gas and electric utility for the operation of the District
3. Chemicals and gasses for the treatment of potable and recycled water.
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Section 8 – Change Orders
8.0 PURPOSE:
To provide guidelines for the initiation and approval of contract change orders within the Otay Water
District.
8.1 GENERAL:
Change orders may be initiated by the contractor/vendor or by the District. The District’s General
Manager or his/her designee must approve change orders as defined in the District’s Code of
Ordinances, Section 2.01e. The Board must approve change orders exceeding the General Manager’s
authorized limit. Only written change orders are allowed.
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Section 9 – Authorization to Purchase – Signatory Authority
9.0 PURPOSE:
To provide guidelines and protocol for establishing signatory authority for the approval of purchases
within the Otay Water District.
9.1 GENERAL:
The Board of Directors of the District has sole signatory (ability to sign contracts and approve purchases)
authority within the Otay Water District. The Board may, at a regularly scheduled board meeting,
establish signatory authorization limit(s) for the General Manager as defined in the District’s Code of
Ordinances, Section 2.01c-e. The General Manager at his/her discretion may delegate his/her signatory
authority, as he/she deems necessary. Other than as identified in Section 7.2.8 of this Manual, “Board
Authorized Purchases Exceeding the General Managers Authority”, delegated authorization limits may
not exceed those established by the Board for the General Manager. Delegated authorization
must be documented in the form of a memorandum, signed by the General Manager. Included in the
memorandum must be a listing of individuals and/or job classification to whom signatory and
purchase approval authority has been delegated and the maximum dollar value(s) of said authority.
Copies of the memorandum shall be provided to the District’s senior management team and to the
Purchasing and Facilities Manager. The General Manager at his/her discretion may allow the
Department Chiefs to delegate their signatory authority, as they deem necessary within their departments.
(Rev 2017-08-02)
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Section 10 – Documentation of Purchases
10.0 PURPOSE:
To provide standardized guidelines and procedures for documenting the authorization, pricing
and award of contracts within the Otay Water District. All purchases exceeding petty cash limit,
excluding purchases identified as exempt from this requirement under “Purchases Exempt from
Purchase Order Requirement”, shall be required to be documented as prescribed herein.
10.1 GENERAL:
As a public agency, the fundamental practice of documenting purchases must be followed. The
documentation must provide a record of vendor name, address, contact and telephone number, pricing,
authorized purchase approval(s), terms and conditions, consideration, placement of order, receipt of
order and authorization of payment. Documentation will be made on a “purchase requisition” form
(printed or electronic) together with a purchase order/contract (printed or electronic).
10.2 PROCEDURE:
a. A “Purchase Requisition” (requisition) form is an internal control document. It shall be used
to record vendor name, address, contact and telephone number, authorized purchase
approval(s), pricing, quantities and special terms and conditions. Documentation of competitive
pricing may be in the form of a memorandum or note attached to the requisition. For purchases
requiring the use of formal bidding/advertising, the bids received will be retained in accordance
with the District’s record retention policy. The requisition may be in written or electronic form
provided that it is standardized, and immutable.
b. When complete, the requisition will be used to produce a purchase order/contract. A copy
of the completed purchase requisition will be retained in accordance with the District’s record
retention policy.
c. The purchase order/contract represents a written agreement between the District and the Vendor.
In addition to identifying the District and Vendor, it is used to document terms and conditions.
d. The purchase order/contract will be in a form as approved by the District’s legal counsel.
e. The purchase order form shall be the used as the District’s primary contract document
for material, service, and supply purchases. Typically, purchases of professional engineering
services, consulting and major construction require contracts in a form other than a purchase
order. In the event a contract in a form other than a purchase order is used, the District’s
counsel shall approve it as to form. A purchase order may be issued for control purposes
to supplement a contract. In this event, the purchase order will reference the contract document
as representing the agreement between the District and vendor.
10.2.1 Purchases Exempt from Purchase Order Requirement:
a. The Board has identified the following purchases as exempt from the requirement of a
written purchase order/contract:
1. Travel and meeting advances and reimbursements
2. Purchases less than the petty cash limit
3. Prepaid travel expenses, i.e., airfare and hotel
4. Utilities
5. Television and satellite service
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6. Meal reimbursements
7. Telephone usage charges, including wireless telephones and pagers
8. Postage
9. Classified, legal, and display advertising
10. Petty Cash purchases
11. Mileage reimbursement
12. Memberships and dues
13. Subscriptions and books
14. Permits and fees
15. Customer refunds
16. District credit card reimbursements
17. Employee awards, incentives
18. Employee educational reimbursements
19. Seminars and training
20. Purchases made utilizing Cal Card
21. Contracts or letters of agreement as approved by the General Manager or the Board
of Directors
b. Completed purchase requisitions may be required, as determined by the General Manager
or his/her designee.
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Section 11 – Special Considerations
11.0 Exceptions to Purchasing Procedures:
In specific instances, such as Federal Grants and Assessment Districts, there may be specific requirements
in the contract or ordinance relating to the expenditure of such funds. The conditions of such agreements
and ordinances shall take precedence over the procedures established in this manual.
11.1 Bonding:
a. In addition to any required bid deposit or bond, all construction contracts in excess of $35,000
shall require:
1) A PERFORMANCE BOND in the amount of 100% of the contract price, and
2) A LABOR AND MATERIALS BOND in the amount of not less than 50% of the contract
price.
b. For construction contracts under $35,000, bonding shall be in accordance with District Policy
No. 31, Encouraging Disadvantaged Business Enterprise Firms.
11.2 Encouraging Emerging Business Enterprise:
The District’s purchasing practices shall reflect the requirements set forth in District Policy No. 31,
Encouraging Disadvantaged Business Enterprise Firms.
11.3 Insurance:
a. General, Automobile, and Errors and Omissions:
All contracts shall have a requirement for general, automobile, and errors and omissions insurance
as applicable to the type of service or work contemplated. The amount and type of insurance
required for each type of contract shall be at the discretion of the General Manager in an amount
so as to indemnify the District from loss.
b. Workers’ Compensation:
All public works contracts shall have a requirement for workers’ compensation insurance in an
amount as required by law. Additionally, all non-public works contracts shall require workers’
compensation insurance coverage in an amount sufficient to indemnify the District from loss.
11.4 Invoicing:
Financial obligations of the District are normally settled on a Net 30 day payment basis. All
invoices submitted to the District must include:
1) The vendor’s name, business address and date,
2) The District’s purchase order/contract number and the vendor’s invoice number,
3) The shipment date and/or the date of service,
4) The terms of sale and applicable payment discounts,
5) An itemized description of materials purchased or services performed, including quantities,
unit prices, discounts, extensions, and other charges as specified in the purchase order/contract,
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6) Sales and other taxes and freight charges, itemized separately or as specified by the District.
11.5 Receiving, Inspection and Acceptance:
a. All materials, supplies or services furnished shall be exactly as specified, free from all defects and
shall be subject to inspection and testing by the District. The method of inspection to be used
in any particular procurement shall be commensurate with the specific quality and specification
requirements. The Purchasing and Facilities Manager shall be notified immediately if any
materials, supplies or services do not conform to specification. In such cases, the Purchasing
and Facilities Manager shall take appropriate action to protect the interests of the District.
b. Receiving shall be documented on the receiving copy of the purchase order or other electronic
form. When all materials, supplies and/or services have been received, the receiving staff will
forward the vendor’s shipping document(s) to the Finance Department and indicate (in writing or
electronically) that the materials, supplies and/or services have been accepted and that the purchase
order is authorized for payment.
11.6 Specifications:
a. All purchases of materials, supplies and services shall meet the requirements as published by the
District in “Standard Specifications for Water and Sewer Construction”.
b. The requesting person shall define specifications for materials, supplies and services not
addressed by the above referenced publication. The specification shall include information such as
brand or trade names, description of material or method of manufacture, description of performance,
purpose and use, physical and chemical properties, and any other information needed so as to give
the purchasing department enough information to purchase correctly. For purchases requiring a
written specification, it shall be the requisitioning staff’s responsibility to provide a complete
specification document.
c. All specifications shall be drafted so as to assure the maximum practicable competition for the
District’s needs.
11.7 Inventory:
General Manager or his/her designee shall identify District property to be inventoried and shall insure
that periodic inventory reconciliation is performed.
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Section 12 – Disposal of Surplus Property
12.0 PURPOSE:
To provide a standardized method for disposing of materials, supplies and other property, excluding
real property, that is surplus to the needs of the District.
12.1 GENERAL:
a. It is staff’s responsibility to keep the District’s inventories as low as possible and to standardize
materials, supplies and equipment in order to minimize the number of articles carried in stock while
b. Surplus Items - The General Manager shall develop, on an as need basis, an inventory of properties
that are surplus to the District’s needs. The General Manager or his/her designee may declare items
with a residual value less than $10,000.00 as surplus to the needs of the District and authorize their
disposal. Where the residual value of an item exceeds $10,000.00, only the Board of Directors may
declare the property surplus and authorize its disposal.
c. Items of Little or No Value – Items that have no value to the District and little or no value in the
market place except as scrap or for a purpose other than its originally intended use, the General
Manager or his/her designee shall have authority to declare said properties trash or scrap and
12.2 PROCEDURE:
Once property has been declared surplus it shall be the responsibility of the Purchasing and Facilities
Manager, in a manner provided herein and approved by the General Manager, to dispose of the surplus
property. All property shall be disposed of “as is-where is”, with no warranty or guarantee as to
serviceability or usability and where applicable, paid in full in U.S. currency prior to delivery. District
property tags shall be removed from the surplus property prior to its disposal. District employees, as private
individuals, may purchase District surplus property by participating in auction sales as prescribed in
Section 12.2.1 Auction Sale.
12.2.1 Auction Sale:
a. Disposal of surplus property may be accomplished through auction sale.
1) Through consignment of items to a vendor, a private auctioneer, licensed and bonded to do
business in San Diego County, to sell on behalf of the District. Where authorized by the
General Manager, the Purchasing and Facilities Manager shall enter into an agreement with
the vendor that has the potential of generating the most market interest and, therefore, the
highest net proceeds for the District. The consignment vendor shall, at its expense, advertise
the item for sale and shall accept offers for the District, with the District having final
acceptance authority.
2) By advertising for sale in a newspaper of general circulation or in any other manner approved
by the General Manager. Newspaper ads shall be placed at least two (2) weeks prior to the
sale date and shall identify the property for sale. Sealed bids will be solicited unless
otherwise directed by the Purchasing and Facilities Manager and the property will be sold to
the highest bidder.
Bid security shall be provided by requiring that a ten percent (10%) guarantee accompany each
bid or aggregated bid. Such bid security shall be in the form of a certified check, cashier’s
check, or money order payable to the order of the District. Payment of the balance of the total
Page 24 of 31
bid must be made by the successful bidder within twenty-four (24) hours after the award.
In the event the successful bidder fails to pay the balance of his bid, the bid security will be
forfeited and the award will be made to the next highest responsible bidder.
The successful bidder shall be responsible for all required permits, fees and licenses. The
property shall be removed from District premises in a time frame established by the Purchasing
and Facilities Manager.
3) By participation in a joint municipal/public agency public auction. Where authorized by the
General Manager, the District may dispose of surplus property through participation in a
joint municipal/public agency auction.
12.2.2 Sale to Federal, State, and Local Municipalities and Governmental Agencies:
a. Where it is in the best interest of the public, surplus property may be sold by the Purchasing and
Facilities Manager to municipalities and government agencies in accordance with the follow
guidelines. The Purchasing and Facilities Manager shall give preference to local governmental
agencies located within the District’s boundary.
1) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
does not exceed $10,000, a negotiated sale may be conducted with the governmental agency
and sale of the item concluded at the price determined to be a fair and reasonable market price
for the item.
2) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
is greater than $10,000 but does not exceed $50,000, the General Manager’s approval shall
be obtained prior to any sale. Information provided to the General Manager shall, at a
minimum, identify the government entity, the rationale behind the sale at the value, and the
manner in which the fair market value was determined.
3) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
is greater than $50,000, Board approval shall be obtained prior to any sale. Information
provided to the Board shall, at a minimum, identify the government entity, the rationale behind
the sale at that value, and the manner in which the fair market value was determined.
12.2.3 Sale to Republic of Mexico, U.S. Municipalities and Government Agencies:
a. When the District has declared items surplus to its needs and the Purchasing and Facilities
Manager has determined that the item(s) should be sold in accordance with the guidelines
contained herein, such item(s) may be sold to Republic of Mexico, U.S. municipalities and/or
government agencies under the following guidelines:
1) Prior to consummating any sale to a Republic of Mexico, U.S. municipality and/or
governmental agency, the Purchasing and Facilities Manager shall ensure that right of first
refusal for known requirements is offered to local governmental agencies.
2) The Republic of Mexico, U.S. municipality and/or governmental agency shall forward to the
Purchasing and Facilities Manager, a written official request which provides the following
information:
a. Name and address of municipality or governmental agency.
b. Name and telephone number of responsible official who can consummate a resulting sale
Page 25 of 31
agreement and sign appropriate sale documents.
c. Description and quantity of surplus property items desired.
d. Statement as to how the items requested will be used by the requesting municipality or
governmental agency.
3) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
does not exceed $50,000, the General Manager’s approval shall be obtained. Information
provided to the General Manager shall, at a minimum, identify the government entity, the
rationale behind the sale at that value, and the manner in which the fair market value was
determined.
4) If the estimated fair market value, as determined by the Purchasing and Facilities Manager,
is greater than $50,000, Board approval shall be obtained. Information provided to the
Board shall, at a minimum, identify the government entity, the rationale behind the sale at that
value, and the manner in which the fair market value was determined.
12.2.4 Donation of District Surplus Property to Municipalities, Governmental Agencies, and Charitable
Organizations:
a. Where it is in the best interest of the public, surplus District property of no or De Minimus
value, where proceeds of the sale of the property will be less than the cost of the sale of the property,
may be donated under the following guidelines to municipalities, governmental agencies, and
charitable organizations in lieu of discarding such property:
b. The District’s Purchasing and Facilities Manager shall first assess the value of the item and the
cost of disposal and make a determination that the item has no value or De Minimus value.
c. The requesting municipality, public agency, or charitable organization shall forward to the
Purchasing and Facilities Manager a written donation request, approved by its governing board or
chief operating officer, which includes the following minimum information:
1. Name and address of municipality, agency, or charitable organization.
2. Name and telephone number of responsible official who will accept the donation, if
approved, and sign appropriate donation documents.
3. Description and quantity of surplus property items desired.
4. Statement as to how the items requested will be used by the requesting public agency.
5. Proof of charitable status (501 (C)) organizations as applicable.
d. Donation of surplus items requested shall be made to requesting entities giving priority to
entities as follows:
1. Public agencies within the District’s boundary
2. Public agencies outside of the District’s boundary
3. Charitable organizations within the District’s boundary
4. Charitable organizations outside of the District’s boundary
e. Donation of District owned surplus property of no or De Minimus value may be approved by
the Purchasing and Facilities Manager when the estimated total fair market value of the
donation, as determined by the Purchasing and Facilities Manager, does not exceed either $25
per item or $500 per lot.
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f. Donation of District owned surplus property of no or De Minimus value may be approved by
the General Manager when the estimated total fair market value, as determined by the
Purchasing and Facilities Manager, does not exceed $10,000.
g. Donation of District owned surplus property of no or De Minimus value, where the total
estimated fair market value of the donation, as determined by the Purchasing and Facilities
Manager, exceeds $10,000 shall be made by the Board.
h. For the purpose of this policy, charitable organizations shall mean a non-profit organization exempt
from taxation under the provisions of the Internal Revenue Code, 26 U.S.C. 501 (C), whose primary
purpose is public service or a Republic of Mexico registered public organization promoting
economic and social well-being in the border region.
i. In consideration for the donation and as a condition of transfer, the recipient of the donated surplus
shall execute a release and indemnification agreement satisfactory to the District’s General Counsel.
12.2.5 Exchange or Trade-In:
Where deemed by the Purchasing and Facilities Manager to be in the best interest of the District, the
surplus property may be exchanged or traded in on new supplies and equipment. Trade-in values must
be documented and retained in accordance with the District’s records retention policy.
12.2.6 Disposal as Scrap:
In the case of surplus property that has been determined by the General Manager or their designee to be
trash or scrap with no or De Minimus value, and where no governmental or non-profit organization
expresses interest in the item, the Purchasing and Facilities Manager may dispose of the property in any
manner deemed appropriate. Where property is disposed of as scrap, full records of such disposal shall
be kept.
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Section 13 –Credit Cards
13.0 PURPOSE:
To provide procedures and guidelines for the issuing and use of credit cards and for the
administration of the Cal-Card Program within the District.
13.1 GUIDELINES:
a. The General Manager is authorized to be issued and to issue credit cards and to establish
revolving credit accounts with vendors where it is in the best interest of the District, in
accordance with applicable statutes and laws.
b. Where feasible, the issuing of credit cards shall be through the State of California Cal Card
Program.
c. Use of credit cards shall be limited to appropriate purchases as defined herein.
d. Purchases utilizing credit cards shall be made in accordance with this policy and established
purchasing procedures and guidelines as defined in the District’s Purchasing Manual. This
includes, but is not limited to complying with the District’s requirements related to authorization
and pricing/ bidding.
e. The intent of utilizing credit cards, and in particular Cal-Card credit cards, is to:
1. Reduce costs associated with the accounts payable function,
2. Reduce payment time to District suppliers,
3. Provide a means to take advantage of time sensitive price discounts,
4. Enhance District operations and reduce cost,
5. Reduce dependency on petty cash disbursements,
6. Provide for expedient purchases during emergencies.
13.2 DEFINITIONS:
a. Cal-Card Program: A system developed by the State of California (under Governor Wilson’s
Executive Order W-73-94) designed to facilitate public credit card purchases up to $50,000.
b. I.M.P.A.C. Government Services (IMPAC): Credit Card provider contracted with the State
of California, through a Master Service Agreement, to provide Visa Credit Card service;
maintain master file and account for each card holder; send monthly statements to each
cardholder, approving official, and agency or district accounting office.
c. District Representative: The District’s contact person for program and accounting office
functions; determines which District personnel receives cards; establishes card limits
including purchase restrictions; establishes District’s procedures and guidelines for
participation in the Cal-Card Program.
d. Cardholder: Person(s) designated by the District’s Representative as being authorized to
make purchases using credit cards and/or the Cal-Card Program within District procedures
and guidelines.
e. Approving Official: Person(s) designated by the District’s Representative to review,
approve, and/or certify monthly cardholder billing statements and adherence to District
purchasing and budgetary procedures; forwards monthly statements to the District’s
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accounting office.
f. Accounting Office Representative: Person designated within the District to receive and
process credit card statements and documentation.
g. Credit Card Limit: The transaction and spending limit established by the District
Representative for a Cardholder.
13.3 PROCEDURE:
Purchases made utilizing credit cards and/or Cal-Cards shall comply with the District’s
requirements, guidelines and procedures as defined within the District’s Purchasing Manual.
13.4 APPROPRIATE PURCHASES:
a. The General Manager or his/her designee shall determine which goods and services are
appropriate for purchase using credit cards and may, in the best interest of the District,
restrict where, when and how credit cards are utilized. The value of a purchase made using
credit cards is limited to the signatory authority of the General Manager and must be
categorized as one of the following:
1. Exempt from the requirement of a purchase order/contract,
2. Made under the auspices of a blanket purchase order,
3. Documented and approved in a form approved by the General Manager,
4. Made under an emergency declared by authority of the General Manager.
13.5 RESPONSIBILITIES UNDER THE CAL_CARD PROGRAM:
13.5.1 District’s Representative:
a. The General Manager or his/her designee is the District’s Representative relative to the Cal-
Card program.
b. The District’s Representative shall be responsible, for:
1. Completion and processing of State required documentation for participation in the Cal-
Card program,
2. Establishment of credit card limits (Credit card limits shall not exceed the purchasing
authority of the General Manager as granted by the Board of Directors and those limits
established by the General Manager under his/her Signatory Authority Delegation
Schedule),
3. Identification of Cardholders, Approving Officials, and Accounting Office
Representative,
4. Overseeing of the Cal-Card Program within the District,
5. Insuring adherence to the District’s purchasing policies, procedures and practice.
13.5.2 Cardholder:
a. The Cardholder shall be responsible for:
1. Adhering to the procedures and guidelines set herein,
2. Reviewing his/her monthly statements for accuracy,
3. Retaining, reconciling, and attaching sales slips and, when applicable, approved
requisitions to his/her monthly statement,
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4. Providing and documenting account code information on monthly statements by
transaction,
5. Submitting his/her reconciled statement, with attachments, to his/her Approving Official
in a timely manner.
13.5.3 Approving Official:
a. The Approving Official shall be responsible for:
1. Adhering to the procedures and guidelines set herein,
2. Reviewing and approving for payment the monthly statements for those cardholders
under his/her supervision,
3. Insuring that all information required for payment, including account coding, of monthly
statements is provided to the Finance Department,
4. Requesting additional documentation if necessary,
5. Forwarding all statements to the Finance Department in a timely manner.
13.5.4 Finance Department Representative:
1. The Finance Department Representative shall be responsible for:
1. Adhering to the procedures and guidelines set herein,
2. Receiving consolidated monthly statements,
3. Receiving reconciled statements from Approving Officials,
4. Reconciling statements in accordance with District procedures and policies governing
the accounts payable function.
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Appendix
1. Otay Water District Board of Directors Policy No. 21
2. Otay Water District Board of Directors Policy No. 31
3. Otay Water District Memorandum -Signatory Authority Delegation (Revised as necessary by the
General Manager)
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Revisions
1. Codified October 2009
2. October 2014 –Amend Section 12 - Disposal of Surplus Property by Board action,
3. April 2016 – Amend Section 7.2.8 Board Authorized Purchases Exceeding the General Manager’s
Authority by Board action.
4. August 2016 – Correction of minor spelling errors. Board action not required.
5. September 2016 – CUPCCAA adoption. Section 7 – Pricing/Bidding Requirements by Board action.
6. May 3, 2017 - Section 2 – Organization; 6.2.3 Cooperative/ Joint Purchases; Section 7 –
Pricing/Bidding Requirements; 7.2.8 Board Authorized Purchases Exceeding the General Manager’s
Authority; miscellaneous formatting by Board action.
7. June 7, 2017 – Added: Section 7.2.8, a, 8. Regulatory Fees
8. August 2, 2017 – Modified: Section 7.2.8, a, 7 Liability Insurance and other services added; Added:
Section 7.2.8, a, 9. Cityworks, 10. Enterprise Systems, 11. Antenna Lease Agreement; Modified:
Section 2 – Organization: Assistant GM deleted; Modified: Section 9 – Authorization to Purchase –
Signatory Authority: Assistant GM deleted
9. June 3, 2020 – Appended Section 7.2.8, a, 7 to include: Association of California Water Agencies –
Joint Powers Insurance Authority (ACWA-JPIA) or any other Board approved provider.
Insurance
Provider
Change
PROPERTY, LIABILITY, AND
WORKERS’ COMPENSATION
Eid Fakhouri, CPA Finance Manager
Otay Water District Insurance Programs
Current Provider: Special District Risk Management Authority (SDRMA)
Proposed New Provider -Association of the California Water Agencies/Joint Powers Insurance
Authority (ACWA-JPIA)
Karen Thesing, ACWA-JPIA, Director of Insurance Services
➢Property Coverage –(District Assets)
Reservoirs, pump stations, facilities, machinery, mobile equipment, automobiles
Money, securities, cash, business interruption, errors and omissions
➢Liability Coverage–(Includes Non-District Assets)
Bodily injury, 3rd party claims, property damage, accidental pollution
Employee dishonesty, errors and omissions, employee benefits administration
➢Workers’ Compensation –(Protects Employees)
Otay Water District Insurance Programs
Actions Necessary to Change Insurance Providers from SDRMA to ACWA-JPIA
➢Adopt Resolution No. 4381 consenting to enter the joint protection programs of the
Association of the California Water Agencies/Joint Powers Insurance Authority (ACWA-
JPIA) and hereby elects to join the Liability, Property, and Workers’ Compensation
Programs sponsored by the Authority.
➢Adopt Resolution No. 4382 authorizing application to the Director of Industrial Relations,
State of California for a certificate of consent to self-insure workers’ compensation
liabilities.
➢Approve modification to the District’s Purchasing Manual Section 7.2.8 “Board
Authorized Purchases Exceeding the General Manager’s Authority” to include insurance
services provided by ACWA-JPIA.
Otay Water District Insurance Programs
Actions Necessary to Change Insurance Providers from SDRMA to ACWA-JPIA
➢Authorize the General Manager to sign contracts and agreements as needed for
insurance program services on behalf of the District with the ACWA-JPIA.
➢Appoint a representative to the ACWA-JPIA Board, and an alternate.
Historical Cost of Insurance
SDRMA
Programs FY18 FY19 %FY20 %FY21 %
Property &
Liability (P&L)$ 650,906 $ 775,520 19.1 $ 908,948 17.2 $ 1,454,317 60.0
Workers'
Compensation
(WC)$ 319,226 $ 405,167 26.9 $ 608,624 50.2 $ 563,212 -7.5
FY21 Rate Comparison
FY21 Quotations ACWA-JPIA SDRMA Savings
Property & Liability (P&L)$ 1,103,925 $ 1,454,317 ($350,392)
Workers' Compensation (WC)$ 428,584 $ 563,212 ($134,628)
TOTAL $ 1,532,509 $ 2,017,529 ($485,020)
ACWA-JPIA
(Formed in 1979 as a Public Entity Risk Pool)
➢Only serves water agencies, currently made up of over 360 member agencies
including local agencies in San Diego County
➢Equivalent programs and coverages as SDRMA
➢Three-year program commitment
➢Retrospective Allocation Point or (RAP)
➢Member governed –Board representation
➢Risk management services, including on-site assessments, trainings, and best
practice recommendations to reduce loss
Proposed start date: July 1, 2020
District’s Purchasing Manual
Current Language:
7.2.8 Board Authorized Purchases Exceeding the General Manager’s Authority:
➢Item 7. Medical Service Benefits, Property Liability Insurance and other products
and services as provided by Special District Risk Management Authority (SDRMA)
Proposed Language:
➢Item 7.Health Benefits, Property,Liability Insurance, Worker’s Compensation and
other products and services as provided by Special District Risk Management
Authority (SDRMA), Association of California Water Agencies –Joint Powers
Insurance Authority (ACWA-JPIA) or any other Board approved provider.
Next Steps
1.Adopt Resolution No. 4381
2.Adopt Resolution No. 4382
3.Approve modification to the District’s Purchasing Manual
Section 7.2.8
4.Authorize the General Manager to sign contracts and
agreements as needed for insurance program services on
behalf of the District with the ACWA-JPIA
5.Appoint a representative to the ACWA-JPIA Board, and an
alternate
Questions?
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: June 3, 2020
SUBMITTED BY: Jose Martinez,
General Manager
W.O./G.F. NO: DIV. NO.
APPROVED BY: Susan Cruz, District Secretary
Jose Martinez, General Manager
SUBJECT: Board of Directors 2020 Calendar of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting
calendar for 2020 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2020 Board of Director’s meeting calendar
and amend the schedules as needed.
COMMITTEE ACTION:
N/A
ANALYSIS:
The Board requested that this item be presented at each meeting so
they may have an opportunity to review the Board meeting calendar
schedule and amend it as needed.
STRATEGIC GOAL:
N/A
FISCAL IMPACT:
None.
LEGAL IMPACT:
None.
Attachment: Calendars of Meeting for 2020
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 06-03-20.doc
AGENDA ITEM 8a
Board of Directors, Workshops
and Committee Meetings
(Via Teleconference)
2020
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 8, 2020
February 5, 2020
March 11, 2020
April 1, 2020
May 6, 2020
June 3, 2020
July 1, 2020
August 5, 2020
September 2, 2020
October 7, 2020
November 4, 2020
December 2, 2020
January 22, 2020
February 19, 2020
March 18, 2020
April 22, 2020
May 20, 2020
June 17, 2020
July 22, 2020
August 19, 2020
September 23, 2020
October 21, 2020
November 18, 2020
December 16, 2020
SPECIAL BOARD MEETINGS (Teleconference):
June 17, 2020 at 12:00 p.m.: Special Board Meeting
STAFF REPORT
TYPE MEETING:Regular Board MEETING DATE:June 3, 2020
SUBMITTED BY:Michael J. Long
Engineering Manager
PROJECT:Various DIV. NO. ALL
APPROVED BY: Rod Posada, Chief, Engineering
Jose Martinez, General Manager
SUBJECT:Informational Item – Third Quarter Fiscal Year 2020 Capital
Improvement Program Report
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To update the Board about the status of all CIP project expenditures
and to highlight significant issues, progress, and milestones on
major projects.
ANALYSIS:
To keep up with growth and to meet our ratepayers' expectations to
adequately deliver safe, reliable, cost-effective, and quality water,
each year the District staff prepares a Six-Year CIP Plan that
identifies the District’s infrastructure needs. The CIP is comprised
of four categories consisting of backbone capital facilities,
replacement/renewal projects, capital purchases, and developer's
reimbursement projects.
The Third Quarter Fiscal Year 2020 update is intended to provide a
detailed analysis of progress in completing these projects within the
allotted time and budget of $17.22 million. Expenditures through the
AGENDA ITEM 9a
2
Second Quarter totaled approximately $11.14 million. Approximately
65% of the Fiscal Year 2020 expenditure budget was spent (see
Attachment B).
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
No fiscal impact as this is an informational item only.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
exceptional water and wastewater service to its customers, and to
manage District resources in a transparent and fiscally responsible
manner” and the General Manager’s Vision, "To be a model water agency
by providing stellar service, achieving measurable results, and
continuously improving operational practices."
LEGAL IMPACT:
None.
MJL/RP:jf
P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2020\Q3\Staff Report\BD 06-03-20 Staff Report Third
Quarter FY 2020 CIP Report (ML-RP).docx
Attachments: Attachment A – Committee Action
Attachment B - Fiscal Year 2020 Third Quarter CIP
Expenditure Report
Attachment C – Presentation
ATTACHMENT A
SUBJECT/PROJECT:
VARIOUS
Informational Item – Third Quarter Fiscal Year 2020 Capital
Improvement Program Report
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this item at a Committee Meeting held on May 19, 2020 and the
following comments were made:
•Staff indicated that the District’s FY 2020 CIP budget consists
of 113 projects that total $17.2 million and is divided into
four categories:
o Capital Facilities= $5.2 million
o Replacement/Renewal= $11.3 million
o Capital Purchases= $.7 million
o Developer Reimbursement= $2.0 thousand
•Staff reviewed the PowerPoint presentation with the Committee
and indicated that the expenditures through the third quarter
of FY 2020 totaled $11.1 million, which is approximately 65% of
the District’s fiscal year budget.
•The PowerPoint presentation included the following:
o Total Life-to-Date Expenditures
o CIP Budget Forecast vs. Expenditures
o Major CIP Projects that have been completed, are in design
or are in construction
o CIP Projects in Construction
o Construction Contract Status of projects, contract amount
with allowances, net change orders, and percent of project
completion
o Consultant Contract Status of contract amounts, approved
payments to date, change orders, dates when contracts were
signed and the end date of contracts
•Staff stated that during the third quarter of FY 2020 the rate
for Change Orders with Allowance Credit equaled to 1.6%.
•The Committee inquired about the overall change order
percentage. Staff stated that change orders without allowance
is currently at 4.7% and may increase to 5.2% by the end of
this fiscal year.
•The Committee suggested that a Consultant Contract goal be
included in the District’s Strategic Plan to monitor change
orders for consultants.
Following the discussion, the committee supported presentation to the
full board as an informational item.
FISCAL YEAR 2020 3RD QUARTER REPORT
(Expenditures through 3/31/2020)($000)
ATTACHMENT B
2020 03/31/20
CIP No.Description Project Manager FY 2020 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Add Q3 Comments
CAPITAL FACILITY PROJECTS -
P2040 Res - 1655-1 Reservoir 0.5 MG Cameron 30$ 45$ (15)$ 150%4,500$ 642$ 3,858$ 14%
Environmental work is complete. Legal review in progress.
Consultant selection process for design will begin in Q4.
P2405 PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road Cameron 5 - 5 0%1,500 - 1,500 0%
This project is tied to P2553 and is driven by the City of Chula Vista. Construction is scheduled for FY 2022.
P2451 Otay Mesa Desalination Conveyance and Disinfection System Kennedy 10 - 10 0%3,975 3,823 152 96%EIR/EIS complete and Presidential permit issued. Continue meetings with DDW and AdR.
P2453 SR-11 Utility Relocations Marchioro 270 32 238 12%3,000 1,945 1,055 65%
Schedule driven by Caltrans. Caltrans issued construction contract notice to proceed Q1 FY 2020. Completion of construction anticipated for Q2 FY 2022.
P2460 I.D. 7 Trestle and Pipeline Demolition Beppler 80 7 73 9%600 17 583 3%Consultant selected for performance of environmental surveys to be perfomed in Q4. Demolition now expected to occur in FY 2023.
P2485 SCADA - Infrastructure and Communications Replacement Kerr 60 93 (33) 155%2,428 2,227 201 92%
Additional security devices during this period required for enhancements of District facilities.
P2494 Multiple Species Conservation Plan Coburn-Boyd 30 2 28 7%1,000 931 69 93%
Minor expenditures are expected for the remainder of the fiscal year (staff time for coordination with USFWS). It is anticipated that most of the remaining budget will be spent in FY 2021.
P2516 PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage Marchioro - - - 0%1,000 - 1,000 0%
No expenditures anticipated in FY 2020. Completion of construction anticipated FY 2026.
P2521 Large Meter Vault Upgrade Program Carey 100 6 94 6%620 335 285 54%Due to COVID-19, work moved to FY 2021.
P2553 Heritage Road Bridge Replacement and Utility Relocation Cameron 40 21 19 53%3,500 50 3,450 1%
Project is driven by the City of Chula Vista's schedule for replacement; the City has delayed the design. The City provided design parameters to the District in June 2019; additional information needed. NV5 was selected as the design consultant. Design will begin in Q4 FY 2020.
P2584 Res - 657-1 and 657-2 Reservoir Demolitions Marchioro - - - 0%51 - 51 0%No expenditures anticipated in FY 2020. These Reservoirs are scheduled to be removed at the end of their useful life.
P2608 PL - 8-inch, 850 Zone, Coronado Ave, Chestnut/Apple Cameron 50 41 9 82%820 63 757 8%
Design was completed and advertised for construction in Q3 FY 2020. Construction to begin in Q4.
P2611 Quarry Road Bridge Replacement and Utility Relocation Cameron 75 55 20 73%1,300 105 1,195 8%This is a County of San Diego driven project. The County has put this project of hold. Project is currently 50% designed.
P2612 PL - 12-inch, 711 Zone, Paso de Luz/Telegraph Canyon Rd Cameron 50 65 (15) 130%500 106 394 21%Project is in planning stage; expected to start design in late FY 2020.
P2614 485-1 Reservoir Interior/Exterior Coating Cameron - - - 0%895 - 895 0%No expenditures in FY 2020.
P2617 Lobby Security Enhancements Payne 150 95 55 63%225 150 75 67%
COVID related delays and the addition of Board Room security features will move completion into FY 2021.
P2619 PS - Temporary Lower Otay Pump Station Redundancy Marchioro 2,000 990 1,010 50%3,200 1,387 1,813 43%
Redundant trailer delivered Q3 FY 2020. Construction completion anticipated Q1 FY 2021.
P2623
Central Area to Otay Mesa Interconnection Pipelines Combination Air/Vacuum Valve Replacements Marchioro 50 1 49 2%500 214 286 43%
Easement offer sent to property owner Q4 FY 2019. Design phase for valve relocations commenced Q4 FY 2020. Completion of construction anticipated FY 2022.
P2626 803-4 Reservoir Water Quality Improvements – PAX SystemPurchase Coburn-Boyd 150 11 139 7%325 11 314 3%The project has been delayed, but is now in construction and expected to be complete by the end of FY 2020.
P2630 624-3 Reservoir Automation of Chemical Feed System Cameron 5 - 5 0%505 - 505 0%Budget for preliminary planning.
P2638 Buildings and Grounds Refurbishments Payne 89 6 83 7%114 16 98 14%
As a cost saving measure, the Admin building was power washed; COVID related delays places completion of grounds work into FY 2021.
P2639 Vista Diego Hydropneumatic Pump Station Replacement Marchioro 25 10 15 40%2,800 11 2,789 0%Advance planning work commenced Q3 FY 2020. Completion of construction anticipated FY 2024.
P2640 Portable Trailer Mounted VFD Pumps Marchioro 458 9 449 2%550 65 485 12%Trailer delivery anticipated Q4 FY 2020.
P2642 Rancho Jamul Pump Station Replacement Marchioro 5 - 5 0%2,500 - 2,500 0%
Project will be coordinated with P2040, 1655-1 Reservoir. Completion of construction currently scheduled for FY 2026.
FISCAL YEAR-TO-DATE, 03/31/20 LIFE-TO-DATE, 03/31/20
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FISCAL YEAR 2020 3RD QUARTER REPORT
(Expenditures through 3/31/2020)($000)
ATTACHMENT B
2020 03/31/20
CIP No.Description Project Manager FY 2020 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Add Q3 Comments
FISCAL YEAR-TO-DATE, 03/31/20 LIFE-TO-DATE, 03/31/20
P2646 North District Area Cathodic Protection Improvements Marchioro - - - 0%1,200 - 1,200 0%No expenditures anticipated in FY 2020. Completion of construction anticipated FY 2025.
P2647 Central Area Cathodic Protection Improvements Marchioro - - - 0%1,300 - 1,300 0%No expenditures anticipated in FY 2020. Completion of construction anticipated FY 2024.
P2648 Otay Mesa Area Cathodic Protection Improvements Marchioro 100 119 (19) 119%430 150 280 35%
Completion of design phase scheduled for FY Q4 2020. Completion of construction anticipated FY 2021.
P2649 HVAC Equipment Purchase Payne 44 - 44 0%130 10 120 8%Five year schedule; Operations replacement scheduled for late June.
P2652 520 to 640 Pressure Zone Conversion Cameron 20 17 3 85%250 17 233 7%Work on PDR began.
P2654 Heritage Road Interconnection Improvements Marchioro 65 18 47 28%200 18 182 9%Project scope will change, pending City preference. Completion of construction anticipated FY 2023.
P2658 832-1 Pump Station Modifications Cameron 15 7 8 47%600 7 593 1%Work on PDR began.
P2659 District Boardroom Improvements Kerr 180 99 81 55%200 99 101 50%Currently on target and not anticipating additional funding.
P2660
Camino Elevado Drive OWD and SWA Interconnection Upgrade Beppler 3 10 (7) 333%250 10 240 4%
Upon project investigation, this project does not meet the cost to benefit requirements and will not be implemented.
P2663 Potable Water Pressure Vessel Program Marchioro 50 6 44 12%1,500 6 1,494 0%
Advanced planning work for Rancho Jamul Hydropneumatic Station - hydropneumatic tank replacement began in Q3 FY 2020. Completion of construction scheduled for Q4 FY 2021.
P2664 Otay Mesa Dual Piping Modification Program Beppler 10 4 6 40%350 4 346 1%
Figures are being created to identify existing system operation, proposed changes, and potential future changes and alternative uses.
R2116 RecPL - 14-Inch, 927 Zone, Force Main Improvements Marchioro 25 30 (5) 120%2,250 2,222 28 99%Post construction mitigation work anticipated to complete Q4 FY 2020.
R2118 Steele Canyon Sewer PS Large Solids Handling Improvements Beppler 5 - 5 0%175 174 1 99%Warranty period ended during this quarter. Close out project at end of fiscal year.
R2120 RWCWRF Filtered Water Storage Tank Improvements Cameron 390 16 374 4%575 48 527 8%This project was delayed until FY 2021.
R2125 RecPRS - 927/680 PRS Improvements, Otay Lakes Road Marchioro 45 27 18 60%225 50 175 22%
Project scope reduced. Completion of construction anticipated Q4 FY 2020.
R2146 Recycled Pipeline Cathodic Protection Improvements Marchioro 40 1 39 3%700 1 699 0%
Advanced planning work scheduled to commence Q3 FY 2020. Completion of construction anticipated FY 2025.
R2150 RWCWRF - Secondary Chlorine Analyzer and Feed System Beppler 1 - 1 0%55 53 2 96%Warranty period ended during this quarter. Close out project at end of fiscal year.
S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Beppler 50 - 50 0%1,800 1,111 689 62%Annual County invoicing covers this project. No District involvement in design and construction.
S2027 Rancho San Diego Pump Station Rehabilitation Beppler 5 - 5 0%3,060 3,050 10 100%County indicated no additional costs or credits, so this project can be closed out at end of fiscal year.
S2043 RWCWRF Sludge Handling System Beppler 100 66 34 66%390 120 270 31%
Final report received, recommendation is for no solids handling at RWCWRF. Keep CIP active for future reassessment as warranted.
S2047 Asset Management - Info Master Sewer Implementation Zhao 5 - 5 0%58 38 20 66%No expeditures planned in Q3 FY 2020.
S2061 RWCWRF Aeration Controls Consolidation & Optimization Upgrades (S)Beppler 30 4 26 13%220 6 214 3%Selection of consultant for implementing the project put on hold until alternative consultants confirmed and change in COVID limitations.
S2067
RWCWRF Roofing Replacement and Natural Light
Enhancement Payne 145 - 145 0%165 16 149 10%
Consultant report is in and it is above budget. Adjustment to budget is
being considered for next fiscal year.
S2071 San Diego Metro Wastewater Capital Improvements Kennedy 132 99 33 75%1,546 99 1,447 6%
Annual City of S.D. invoicing covers this project. No District involvement in design and construction.
Total Capital Facility Projects Total:5,192 2,012 3,180 39%54,037 19,407 34,630 36%
REPLACEMENT/RENEWAL PROJECTS
P2083 PS - 870-2 Pump Station Replacement Marchioro 4,700 3,739 961 80%19,550 18,268 1,282 93%Completion of construction anticipated Q1 FY 2021.
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FISCAL YEAR 2020 3RD QUARTER REPORT
(Expenditures through 3/31/2020)($000)
ATTACHMENT B
2020 03/31/20
CIP No.Description Project Manager FY 2020 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Add Q3 Comments
FISCAL YEAR-TO-DATE, 03/31/20 LIFE-TO-DATE, 03/31/20
P2174 PS - 1090-1 Pump Station Upgrade Beppler 350 36 314 10%2,000 70 1,930 4%Electrical design is in progress as well as mechanical design. Design is expected to be completed in Q1 FY 2021.
P2507 East Palomar Street Utility Relocation Cameron 4 4 - 100%735 733 2 100%Budget is for staff time to collect final reimbursement.
P2508 Pipeline Cathodic Protection Replacement Program Marchioro 50 31 19 62%1,250 1,240 10 99%Construction completed Q1 FY 2020. Project one year warranty scheduled to complete Q1 FY 2021.
P2533 1200-1 Reservoir Interior & Exterior Coating Cameron 25 9 16 36%895 33 862 4%Budget is for planning and design late FY 2020.
P2534 978-1 Reservoir Interior & Exterior Coating Cameron 5 12 (7) 240%650 614 36 94%Project will be closed after final invoices have been paid.
P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations Cameron 20 38 (18) 190%1,090 990 100 91%Project is driven by SANDAG. Expenditures within overall project budget.
P2543 850-1 Reservoir Interior/Exterior Coating Cameron 810 33 777 4%940 42 898 4%This project was delayed until FY 2021.
P2544 850-2 Reservoir Interior/Exterior Coating Cameron 5 88 (83) 1760%980 929 51 95%Project will be closed after final invoices have been paid.
P2546 980-2 Reservoir Interior/Exterior Coating Cameron 5 - 5 0%1,705 1,686 19 99%
Project accepted in November 2018, and is in the 2 year warranty period.
P2555 Administration and Operations Parking Lot Improvements Cameron 30 43 (13) 143%935 905 30 97%Budget is for warranty and ancillary items.
P2561 Res - 711-3 Reservoir Cover/Liner Replacement Marchioro 50 346 (296) 692%2,300 2,435 (135) 106%Engineering staff to coordinate with Operations staff as issues arise.
P2562 Res - 571-1 Reservoir Cover/Liner Replacement Marchioro 20 - 20 0%2,900 2,707 193 93%
As part of the larger 870-2 Pump Station project, the 571-1 Reservoir was placed back into service April 2018.
P2563 Res - 870-1 Reservoir Cover/Liner Replacement Marchioro 5 1 4 20%1,250 7 1,243 1%Existing cover/liner material will be tested to provide better understanding of remaining useful life.
P2565 803-2 Reservoir Interior/Exterior Coating & Upgrades Cameron 125 307 (182) 246%1,200 986 214 82%More work was completed in FY 2020 than anticipated. Project completed and in the 2 year warranty period.
P2567 1004-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%965 - 965 0%No expenditures in FY 2020.
P2573 PL - 12-Inch Pipeline Replacement, 803 Zone, Hillsdale Road Beppler 5 - 5 0%2,580 2,572 8 100%Warranty period expired in Q1 FY 2020. No further expenditures are anticipated at this time.
P2574 PL - 12-Inch Pipeline Replacement, 978 Zone, Vista Vereda Beppler 230 637 (407) 277%1,785 1,706 79 96%
Project construction substantially completed in Q2 FY 2020. Final acceptance expected in Q4 FY 2020 with start of one year warranty.
P2578 PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 gpm Marchioro - - - 0%13,000 - 13,000 0%No expenditures anticipated in FY 2020. Replacement scheduled for FY 2023-2025 to coincide with development of Villages 4, 8, 9, & 3.
P2593 458-1 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%1,050 - 1,050 0%No expenditures in FY 2020.
P2594 Large Meter Replacement Carey 60 14 46 23%650 467 183 72%On target, more work to be completed in Q4 FY 2020.
P2604 AMR Change-Out Carey 1,300 1,300 - 100%6,290 5,696 594 91%On target.
P2605 458/340 PRS Replacement, 1571 Melrose Ave Beppler 295 52 243 18%475 97 378 20%Project design completed in Q2 FY 2020, with bidding performed and rejected. Project to be rebid in FY 2021 with next pipeline project.
P2607 Douglas Ave SWA and OWD Interconnection Upgrade Beppler 20 1 19 5%50 4 46 8%
Project being designed by SWA; final design expected before the end of FY 2020 and constructed during FY 2021.
P2609
PL - 8-inch, 1004 Zone, Eucalyptus St, Coronado/Date/La Mesa Cameron 225 88 137 39%800 128 672 16%
Project was bid in Q3 FY 2020 and construction to begin in Q4 FY 2020.
P2610 Valve Replacement Program - Phase 1 Cameron 50 - 50 0%275 22 253 8%Operations is taking the lead on this project.
P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande Beppler 25 15 10 60%2,200 34 2,166 2%
Preliminary design report submitted in Q3 FY 2020. Further design needs to wait until FY 2022 for paving restriction to elapse.
P2616
PL - 12-Inch Pipeline Replacement, 978 Zone, Pence Dr/Vista Sierra Dr Beppler 170 77 93 45%3,300 144 3,156 4%
Preliminary design report submitted in Q3 FY 2020. Final design to begin in Q4 FY 2020.
P2625 PL - 12-inch, 978 Zone, Hidden Mesa Road Beppler 200 136 64 68%2,210 2,197 13 99%Project construction substantially completed in Q2 FY 2020. Final acceptance expected in Q4 FY 2020 with start of one year warranty.
P2627 458/340 PRS Replacement, 1505 Oleander Ave Beppler 300 59 241 20%475 125 350 26%Project design completed in Q2 FY 2020, with bidding performed and rejected. Project to be rebid in FY 2021 with next pipeline project.
P2631 1485-2 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%1,055 - 1,055 0%No expenditures in FY 2020.
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FISCAL YEAR 2020 3RD QUARTER REPORT
(Expenditures through 3/31/2020)($000)
ATTACHMENT B
2020 03/31/20
CIP No.Description Project Manager FY 2020 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Add Q3 Comments
FISCAL YEAR-TO-DATE, 03/31/20 LIFE-TO-DATE, 03/31/20
P2653 1200 Pressure Zone Improvements Marchioro 200 55 145 28%325 55 270 17%Construction of Phase 1 on track for completion in Q4 FY 2020. Completion of Phase 2 construction scheduled for FY 2021.
P2655 La Presa Pipeline Improvements Cameron 15 33 (18) 220%1,750 33 1,717 2%Budget is for warranty and ancillary items.
P2656 Regulatory Site Desilting Basin Improvements Beppler 40 7 33 18%150 7 143 5%
Operations staff to implement first alternative for project in Q4 FY
2020.
P2657 1485-1 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%30 - 30 0%No expenditures in FY 2020.
P2661
Replacement of Backflow Prevention Devices on Pipeline Interconnections on Otay Mesa Beppler 10 5 5 50%375 5 370 1%Engineering staff to coordinate with Operations staff as issues arise.
P2662 Potable Water Meter Change Out Carey - - - 0%1,950 - 1,950 0%No expenditures in FY 2020.
R2121 Res - 944-1 Reservoir Cover/Liner Replacement Marchioro 60 6 54 10%1,800 25 1,775 1%Replacement scheduled for FY 2025 since existing cover/liner testing completed in FY 2020 suggested four to six years remaining life.
R2139 RWCWRF - Filter Troughs Replacement Beppler 1 - 1 0%40 34 6 85%Warranty period ended during this quarter. Close out project at end of fiscal year.
R2143 AMR Change-Out Carey 130 84 46 65%525 333 192 63%Due to COVID-19, work moved to FY 2021.
R2145 RWCWRF - Filter Media and Nozzles Replacement Beppler 1 - 1 0%130 117 13 90%Warranty period ended during this quarter. Close out project at end of fiscal year.
R2147 RWCWRF Fuel Lines Replacement Marchioro 10 36 (26) 360%225 222 3 99%Construction completed Q1 FY 2020. Project one year warranty scheduled to complete Q1 FY 2021.
R2148 Large Meter Replacement - Recycled Carey 12 15 (3) 125%58 15 43 26%
Additional irrigation meter measuring elements needed in FY 2020; wil not affect overall budget.
R2151
RWCWRF - Bulk Chlorine Vapor Scrubber System Refurbishment Lintner 1 - 1 0%40 39 1 98%This project is complete and will be closed at the end of the fiscal year.
R2152 Recycled Water Meter Change-Out Carey - - - 0%70 - 70 0%No expenditures in FY 2020.
R2153 Recycled Water Pressure Vessel Program Marchioro 1 - 1 0%50 - 50 0%No expenditures anticipated in FY 2020.
S2024 Campo Road Sewer Main Replacement Beppler 1,500 1,347 153 90%10,980 10,978 2 100%Project construction substantially completed in Q2 FY 2020. Final acceptance expected in Q4 FY 2020 with start of one year warranty.
S2045 Fuerte Drive Sewer Relocation Beppler 20 - 20 0%370 278 92 75%
Warranty period expired in Q1 FY 2020. No further expenditures are
anticipated at this time.
S2046 RWCWRF - Aeration Panels Replacement Beppler 5 - 5 0%250 250 - 100%
Warranty period ended during this quarter. Close out project at end of fiscal year.
S2048 Hillsdale Road Sewer Repairs Beppler 5 - 5 0%720 692 28 96%Warranty period expired in Q1 FY 2020. No further expenditures are anticipated at this time.
S2049 Calavo Basin Sewer Rehabilitation - Phase 2 Beppler 40 26 14 65%1,000 64 936 6%
Design services occurred in Q2 FY 2020. Final design not expected to be completed until FY 2021.
S2050 Rancho San Diego Basin Sewer Rehabilitation - Phase 2 Beppler 5 - 5 0%820 7 813 1%
No work performed in Q3. Planning services to be performed during FY 2020 as time allows.
S2051 RWCWRF - Headworks Improvements Beppler 5 - 5 0%250 246 4 98%
Warranty period ended during this quarter. Close out project at end of fiscal year.
S2053 RWCWRF - Sedimentation Basins Weirs Replacement Beppler 1 - 1 0%60 53 7 88%
Warranty period ended during this quarter. Close out project at end of fiscal year.
S2054 Calavo Basin Sewer Rehabilitation - Phase 3 Beppler - - - 0%10 - 10 0%No work planned for FY 2020.
S2060 Steele Canyon Pump Station Replacement Beppler - - - 0%200 - 200 0%No work planned for FY 2020.
S2066 Rancho San Diego Basin Sewer Rehabilitation - Phase 3 Beppler - - - 0%10 - 10 0%No work planned for FY 2020.
S2069 Cottonwood Sewer Pump Station Renovation Beppler 10 20 (10) 200%1,800 20 1,780 1%
Planning work and outreach to property owner performed in Q3. Property acquisition expected to move ahead in early FY 2021.
S2070 Hidden Mountain Sewer Pump Station Wet Well Renovation Beppler 130 45 85 35%215 45 170 21%
Award of project occurred in Q3 FY 2020. Construction to begin in Q4 with completion expected in Q1 FY 2021.
Total Replacement/Renewal Projects Total:11,286 8,745 2,541 77%99,743 58,355 41,388 59%
Y:\Board\CurBdPkg\ENGRPLAN\2020\06-03-2020\FY20 3rd qtr exp v2 Final.xlsx Page 4 of 18 5/6/2020
FISCAL YEAR 2020 3RD QUARTER REPORT
(Expenditures through 3/31/2020)($000)
ATTACHMENT B
2020 03/31/20
CIP No.Description Project Manager FY 2020 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Add Q3 Comments
FISCAL YEAR-TO-DATE, 03/31/20 LIFE-TO-DATE, 03/31/20
CAPITAL PURCHASE PROJECTS
P2282 Vehicle Capital Purchases Rahders 439 161 278 37%6,000 4,640 1,360 77%Purchase of compact trucks and replacement truck.
P2286 Field Equipment Capital Purchases Rahders 203 209 (6) 103%2,250 2,026 224 90%Purchase of portable genset and chlorine pump.
P2571 Data Center Network Data Storage and Infrastructure Enhancements Kerr 100 13 87 13%200 125 75 63%
Currently on target with project expenditures; maybe possibly overflow (expenditure/project) into next fiscal year. Have requested additional funding for Project based on additional hardware needed (end of life support); more detail identified in CIP Application.
P2572 Enterprise Resource Planning (ERP) Replacement Kerr - - - 0%130 - 130 0%Project to commence beginning of FY 2021.
Total Capital Purchase Projects Total:742 383 359 52%8,580 6,791 1,789 79%
DEVELOPER REIMBURSEMENT PROJECTS
P2595
PL - 16-inch, 624 Zone, Village 3N - Heritage Road, Main
St/Energy Way Beppler 1 - 1 0%150 - 150 0%
Project under construction; awaiting developer submission for
reimbursement.
R2084 RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media Beppler 1 - 1 0%365 1 364 0%
Project under construction; awaiting developer submission for reimbursement.
Total Developer Reimbursement Projects Total:2 - 2 0%515 1 514 0%
113 GRAND TOTAL 17,222$ 11,140$ 6,082$ 65%162,875$ 84,554$ 78,321$ 52%
Y:\Board\CurBdPkg\ENGRPLAN\2020\06-03-2020\FY20 3rd qtr exp v2 Final.xlsx Page 5 of 18 5/6/2020
Otay Water District
Capital Improvement Program
Fiscal Year 2020
Third Quarter
(through March 31, 2020)
ATTACHMENT C
TLOPS Redundancy Project –Pump Trailer
02/27/2020
Background
The approved CIP Budget for Fiscal Year 2020
consists of 113 projects that total $17.2 million.
These projects are broken down into four categories.
1.Capital Facilities $ 5.2 million
2.Replacement/Renewal $11.3 million
3.Capital Purchases $ 0.7 million
4.Developer Reimbursement $ 2.0 thousand
Overall expenditures through the Third Quarter of
Fiscal Year 2020 totaled $11.1 million, which is
approximately 65% of the Fiscal Year budget.
2
Fiscal Year 2020
Third Quarter Update
($000)
CIP
CAT Description FY 2020 Budget FY 2020 Expenditures
%
FY 2020 Budget
Spent
Total Life-to-Date
Budget
TotalLife-to-Date
Expenditures
%
Life-to-Date
Budget
Spent
1 Capital Facilities $5,192 $2,012 39%$54,037 $19,407 36%
2 Replacement/Renewal $11,286 $8,745 77%$99,743 $58,355 59%
3 Capital Purchases $742 $383 52%$8,580 $6,791 79%
4 Developer Reimbursement $2 $0 0%$515 $1 0%
Total:
$17,222 $11,140 65%$162,875 $84,554 52%
3
Fiscal Year 2020
Third Quarter
CIP Budget Forecast vs. Expenditures
4
$13,700,000
$11,140,000
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July
FISCAL YEAR PERIOD IN MONTHS
Budget Forecast
Total Expenditures
Q3 FY 2020 Forecast
$17,222,000
5
CIP Projects in Construction
870-2 Pump Station
Replacement Project
(P2083/P2562)
Replacement of existing
870 High Head and
Low Head Pump
Stations.
Remove and Replace
the existing 571-1
Reservoir liner and
cover.
$21.65M Budget
Start: July 2017
Estimated Completion:
May 2020 870-2 Pump Station –Site Paving
Division No. 2
Location:
North East corner
of Otay Mesa.
Existing 571-1
Reservoir and High
Head/Low Head
Pump Station site.
6
02/21/2020
CIP Projects in Construction
870-2 Pump Station and Fuel Storage
Facing East
703/27/2020
03/27/2020
870-2 Pump Station and 571-1 Reservoir
Facing North
CIP Projects in Construction
Temporary Lower
Otay Pump Station
(TLOPS) Redundancy
Project (P2619)
Add a second pump to
the TLOPS.
Project includes site
work, yard piping,
instrumentation and
controls, and security
improvements.
$3.20M Budget
Start: September 2019
Estimated Completion:
July 2020 TLOPS –Retaining Wall Construction
Division No. 1
Location:
TLOPS is located
south of Wueste
Road at the south
end of the Lower
Otay Reservoir.
8
03/30/2020
Construction Contract Status
9
FY 2020 CIP CONSTRUCTION PROJECTS
CIP NO.PROJECT TITLE CONTRACTOR BASE BID
AMOUNT
CONTRACT
AMOUNT W/
ALLOWANCES
NET CHANGE ORDERS
LTD*CURRENT
CONTRACT
AMOUNT
TOTAL
EARNED
TO DATE
% CHANGE
ORDERS W/
ALLOWANCE
CREDIT**
%
COMPLETE
EST.
COMP.
DATEPROJECT TOTAL %
P2508
Pipeline CP
Improvements -
Phase II
M-Rae Engineering
Inc.$329,500 $347,000 $16,267 4.9%$349,386 $349,386 0.7%100.0%October 2019
P2561
Reservoir 711-3
Floating Cover and
Liner Replacement
Layfield USA
Corporation $1,947,000 $1,997,000 $0 0.0%$1,987,320 $1,822,250 -0.5%91.7%November
2019
P2565
803-2 Reservoir
Interior/Exterior
Coating & Upgrades
Advanced Industrial
Services Inc.$737,690 $951,690 ($117,080)-15.9%$690,360 $690,360 -27.5%100.0%October 2019
P2574/ P2625
Vista Vereda and
Hidden Mesa Road
Water Line
Replacement
Cass-Arrieta
Construction $2,718,239 $2,848,364 $281,976 10.4%$3,011,326 $2,954,161 5.7%98.1%December
2019
R2147
RWCWRF Fuel
System
Improvements
Jauregui & Culver, Inc.$153,092 $158,092 $1,781 1.2%$154,873 $154,873 -2.0%100.0%September
2019
S2024 Campo Road Sewer
Replacement Project
Wier Construction
Corporation $7,623,146 $7,816,646 $666,334 8.7%$8,482,980 $8,482,980 8.5%100.0%December
2019
Construction Contract Status
10
FY 2020 CIP CONSTRUCTION PROJECTS
CIP NO.PROJECT TITLE CONTRACTOR BASE BID
AMOUNT
CONTRACT
AMOUNT W/
ALLOWANCES
NET CHANGE ORDERS
LTD*CURRENT
CONTRACT
AMOUNT
TOTAL
EARNED
TO DATE
% CHANGE
ORDERS W/
ALLOWANCE
CREDIT**
%
COMPLETE
EST.
COMP.
DATEPROJECT
TOTAL %
P2619
P1320***
Temporary Lower
Otay Pump Station
Redundancy
Tharsos, Inc.$1,600,500 $1,647,000 $57,133 3.6%$1,657,633 $144,313 0.6%8.7%July 2020
P2608 P2609
P2655
Dictionary Hill
Waterline
Replacement -2019
LB Civil Construction,
Inc.$1,125,315 $1,345,315 $0 0.0%$1,125,315 $0 -16.4%0.0%October
2020
P2653
1200 Pressure Zone
Improvements -
Phase 1
Piperin Corporation $145,990 $151,990 $0 0.0%$145,990 $3,000 -3.9%2.1%June 2020
S2070
Hidden Mountain
Sewer Pump Station
Wet Well
Renovation
Kay Construction $132,930 $142,940 $0 0.0%$132,930 $0 -7.0%0.0%August
2020
P2083 P2562
870-2 Pump Station
Replacement/ 571-1
Reservoir Liner and
Cover Replacement
Pacific Hydrotech
Corporation $16,500,900 $16,925,900 $646,104 3.9%$17,147,004 $16,477,620 1.3%96.1%May 2020
TOTALS:$33,014,302 $34,331,937 $1,552,515 4.7%$34,885,117 $31,078,943 1.6%
*NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT
**THIS CHANGE ORDER RATE INCLUDES THE CREDIT FOR UNUSED ALLOWANCES
**ADDITIONAL SCOPE WAS ADDED TO THIS CONTRACT VIA CHANGE ORDER TO PERFORM FUEL LEAK REMEDIATION AT THE 1485 PUMP STATION
Consultant Contract Status
11
Consultant Contract Status
12
Consultant Contract Status
13
QUESTIONS?
14
STAFF REPORT
TYPE MEETING: Budget Workshop MEETING DATE: June 3, 2020
SUBMITTED BY: Kevin Koeppen, Assistant Chief
of Finance
PROJECT: DIV. NO.All
APPROVED BY:
(Chief) Joseph R. Beachem, Chief Financial Officer
Jose Martinez, General Manager
SUBJECT: Adopt Resolution No. 4384 to Approve the FY 2020-2021
Operating and Capital Budget; Approve Fund Transfers for
Potable, Recycled, and Sewer; Adopt the Salary Schedule;
Direct Staff to Draft and Mail Sewer 218 Hearing Notices
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4384 including the approval
of the:
a)FY 2020-2021 Operating and Capital Budget with zero-rate
increases for water and sewer.
b)Approve the fund transfers for potable, recycled, and
sewer.
c)Adopt the Salary Schedule.
d)Direct staff to draft and mail sewer Proposition 218
hearing notices to customers.
Full and Half-Rate Increase Actions
If the Board were to approve full or half-rate increase
alternatives the following additional actions would be required.
a)Approve the water FY 2020-2021 Operating and Capital Budget
with:
a.Full water rate increases of 5.8% or,
b.Half water rate increases of 2.9%.
AGENDA ITEM 10
2
b)Approve the sewer FY 2020-2021 Operating and Capital Budget
with:
a.Full sewer rate increase of 5.6% or,
b.Half sewer rate increase of 2.8%.
c)Adopt the full-rate increase or half-rate increase
alternative transfer schedule.
d)Adopt Ordinance No. 577 amending Appendix A with the
approved water rate changes, effective January 1, 2021.
e)Direct staff to draft and mail water rate increase notices.
f)Direct staff to draft and mail sewer Proposition 218
hearing notices with the proposed full-rate increase
alternative or the half-rate increase alternative.
PURPOSE:
To adopt Resolution No. 4384 to approve the FY 2020-2021
Operating and Capital Budget assuming zero-rate increases for
sewer and water; approve fund transfers for potable, recycled,
and sewer; adopt the Salary Schedule; and direct staff to draft
and mail sewer Proposition 218 hearing notices.
If the Board were to select half-rate increase or full-rate
increase alternatives there are additional actions that would be
required including the adoption of Ordinance No. 577 amending
Appendix A with the approved water rate changes and direct staff
to draft and mail water rate increase notices.
Sewer rates and charges include the implementation of the
changes to rates and rate structures recommended in the cost of
service study presented at the May 6, 2020, Board meeting. To
implement these changes the District must complete a Proposition
218 process and hold a Proposition 218 hearing. For the changes
to be effective January 1, 2021, and to give customers time to
plan for the change, staff recommend the hearing be held in
October but no later than the November 4, 2020, Board meeting.
A 218 hearing is proposed to be scheduled for the October 7,
2020, Board meeting and notices would be mailed in July and
August. On October 7, 2020, and subject to the results of the
218 hearing, staff will be requesting the Board approve the
adoption of the rate structure proposed in the cost of service
study and the rates determined by the recommended zero-rate
3
increase or, if selected by the Board, the alternative half-rate
increase or full-rate increase.
BACKGROUND:
Each year the District goes through a rate setting process with
new challenges. The process begins in January and ends with the
implementation of rates the following January. On April 1,
2020, staff presented both the annual Economic Outlook Report
prepared by the Xpera Group and the COVID-19 Informational Item
regarding the projected impacts of COVID-19 on the budget
process. In response to these presentations the Board requested
that staff present three budget alternatives including:
(1)Zero-rate increase
(2)Full-rate increase
(3)Half-rate increase
Staff has prepared the proposed Operating and Capital Budget
incorporating the recommended changes to water and sewer rates
within these three alternatives.
The zero-rate increase recommended budget was prepared based on
recommending 0.0% rate increases in FY 2021. The projected rate
increases for FY 2022 to FY 2026 were determined by balancing
rate increases and debt financing to maintain reserves and debt
service coverage above minimum and covenant levels, while
returning both to target levels by FY 2026.
The full-rate increase budget alternative was prepared based on
the historic practice of maintaining reserves and debt coverage
at target levels in all six years. Under this alternative no
future debt issuances were proposed.
For the half-rate increase alternative staff prepared the budget
based on recommending a FY 2021 rate increase equivalent to half
of the FY 2021 increase proposed under the full-rate increase
alternative. Future years rate increases were determined by
balancing rate increases and debt to maintain reserves and debt
service coverage above minimum and covenant levels, while
returning both to target levels by FY 2026.
For the full-rate increase and half-rate increase alternatives
100% of the increase is attributable to rate increases imposed
on the District by CWA/MWD and SDG&E.
4
On April 29, 2020, staff held a Budget Workshop presenting: the
budget process and objectives, rate strategy, challenges and
strengths, the strategic plan, key assumptions for sales
volumes, water costs, power costs, rate drivers, Capital
Improvement Program (CIP) and growth projections, COVID-19
impacts, and the pension strategy. The assumptions and inputs
used to prepare today’s presentation for the three alternatives
are consistent with those presented on April 29th.
Based on input received from the Board on April 29th, staff
examined the financial impact of increasing the potable sales
volumes by 6% and recycled sales by 7%, which equates to half of
the volume reduction presented at the April 29th Budget Workshop.
Staff concluded that the impact of this change would not
materially impact current or the projected rate increases and
has maintained volumes at the levels presented at the April 29th
meeting. To the degree FY 2021 sales volumes exceed budget, the
benefit will be reflected in a potential step two budget
approval planned for the September or October time frame or
rolled into the FY 2022 budget.
Also, based on feedback received at the April 29th meeting, staff
examined the financial impact of eliminating or deferring the
$1.1 million of additional annual contributions to the
District’s pension (PERS). The additional contributions to PERS
are projected to maximize the savings associated with the use of
these funds; therefore, staff is recommending that the District
move forward with the additional contributions, which are
estimated to save $5.0 million over 14 years. There is an
additional discussion regarding the PERS savings later in this
staff report.
On May 20,2020, the San Diego County Water Authority (CWA)
posted its proposed budget, including proposed changes to its
rates and charges. District staff has incorporated the CWA
recommended rates and charges posted on May 20th into the
District’s proposed budget. Further discussion regarding the
impact of the proposed changes is included later in this report.
Staff has made every effort to present the most realistic set of
factors and assumptions based on information received from
various sources including: estimated COVID-19 impacts, the
wholesale water suppliers, the Metropolitan Water District of
Southern California (MWD), the San Diego County Water Authority
(CWA), and the City of San Diego (the City); vendors such as
SDG&E; and an economic report prepared by the Xpera Group.
Staff uses this information in conjunction with other economic
5
indicators affecting taxes and revenues, such as inflation and
interest rates, to prepare the budget.
DISCUSSION:
Challenges
Consistent with the April 29, 2020, presentation, COVID-19
impacts, CIP inflation, and CWA water costs remain the primary
challenges for water. For sewer, the primary challenges in
addition to COVID-19 are proposed changes in winter averages,
the City of San Diego’s Pure Water Program, and the upcoming
debt issuance. When combined with these challenges, the
recommended zero-rate increase and alternative half-rate
increase budgets result in the District absorbing supplier rate
increases in FY 2021, which places pressure on debt coverage and
reserve levels.
Staff prepared several rate models examining the requested rate
alternatives, varying financing mechanisms, and varying COVID-19
impacts. As part of these examinations staff considered the
impacts to customers, District reserve levels, annual debt
service dollars, debt service coverage ratios, and flexibility
to manage the uncertainties of the current environment.
In each alternative that was considered, debt service coverage
is a challenge in the near-term and reserve levels are the
challenge in the long-term. While these challenges are
partially offset by savings initiatives, the savings are largely
related to CIP. CIP savings benefit reserve levels but only
minimally benefit the debt coverage ratio.
Savings Initiatives
After the April 29th Budget Workshop, staff incorporated an
additional $600 thousand in savings initiatives, primarily
related to insurance and payroll. The additional savings
included $400 thousand related to changing property/liability
providers, $100 thousand of savings related to workers’
compensation, and $100 thousand related to the temporary hiring
freeze of an open position. The cumulative savings initiatives
included in the FY 2021 budget and six-year rate model are $5.9
million and $9.5 million, respectively. COVID-19 is projected
to have an adverse impact on the District’s financial results
estimated to be approximately $4.6 million in FY 2021 and $8.8
million during the six-year rate model. Details of the impacts
were presented at the April 29th Board Budget Workshop.
6
Credit Ratings
The actual impact and duration of the ongoing pandemic are
unknown at this time; however, the District anticipates
revenues, bad debt, connection fees, and property tax receipts
will be adversely impacted. The FY 2021 budget includes
estimates of the COVID-19 impact prepared by the District. The
estimates are based on data from the last recession, current
available data, an April 14, 2020, AWWA report titled The
Financial Impact of the COVID-19 Crisis on U.S. Drinking Water
Utilities, a local economist, and a survey of developers in the
region. Based on the information available at this time, the
District’s opinion is that the estimated impacts of COVID-19
included in the FY 2021 budget are conservative. The most
significant impacts are estimated to be 12% and 15% declines in
potable and recycled sales volumes. To offset the estimated
impacts of COVID-19 the District has implemented savings
initiatives. The District will continue to monitor the impacts
of COVID-19 and, to the extent necessary, will propose
additional savings and rate modifications to the FY 2021 budget
if the impacts of COVID-19 exceed the District’s estimates. The
estimated impacts and savings initiatives were presented in a
Budget Workshop given to the Board on April 29th, 2020.
The District’s water operation currently maintains an AA credit
rating from Standard & Poor’s (S&P). The District’s sewer debt
is not rated. The last credit rating update the District
received was in 2018. A credit rating is an overall rating that
considers many factors, with debt coverage and liquidity being
two of the main financial factors. These ratings are all
related to the District’s water side of the business as no
credit rating was requested for the District’s sewer system. In
September 2008, the District received a rating upgrade from S&P
to ‘AA’, from ‘AA-’, as part of their global rating
recalibration for municipal agencies.
S&P has developed a concept of “all-in coverage” where they
calculate the implicit debt service for the debt incurred by
other public agencies that can be allocated to the District
based on its share of the revenues paid to the wholesaler and
add that amount to the District’s debt service. A like amount
is deducted from operating expense. Included in the District’s
all-in coverage are obligations of CWA, MWD, and the State Water
Project. The District really has no control over the all-in
coverage factor and would generally not base its financing
decisions or rate increases to provide coverage on what are
7
essentially operating costs, paid through MWD and CWA water
costs, and not directly related to its own capital needs.
In September 2018, S&P affirmed the District’s ‘AA’ rating with
a stable outlook. The affirmed outlook was based on good
historical coverage metrics, a strong liquidity position,
moderate leverage, and strong financial management policies and
practices. S&P could take a positive rating action if the
District is able to materially widen margins and provide
stronger levels of coverage on a basis that S&P believes to be
sustainable. They could take a negative action if the District
experiences substantial increases in its water supply costs, or
its capital plans change significantly over time, resulting in
pressured all-in coverage metrics or a substantially weaker
liquidity position.
Water Rate Recommendation and Financing Plan Analysis
Water Rate Recommendation and Analysis
Based on the analysis performed, staff is recommending a zero-
rate increase for FY 2021, and projecting to utilize both rate
increases and debt issuances to maintain reserves above minimum
levels over the next five years. The recommendation will be to
return reserves and debt service coverage to target by FY 2026.
Water’s current reserve and debt coverage levels are above
targeted levels. This provides water the option of leveraging
debt financing as a more significant part of its financing plan
and a longer period to smooth increases into rates.
The table below contains the projected rate increases and debt
financing for the zero-rate increase, half-rate increase, and
full-rate increase alternatives.
Water Rate Increase Percentage and Debt Financing Projections ($’s Millions)
The proposed zero-rate increase will allow the District to
relieve our customers of an additional financial burden during
2021 2022 2023 2024 2025 2026 Total
Zero Rate Increase:
Rate Increases 0.0%5.2%5.2%5.2%5.2%5.2%
Debt Financing $0.0 $7.0 $0.0 $0.0 $21.5 $0.0 $28.5
Half Rate Increase:
Rate Increases 2.9%4.4%4.4%4.4%4.4%4.4%
Debt Financing $0.0 $0.0 $5.5 $0.0 $15.3 $0.0 $20.8
Full Rate Increase:
Rate Increases 5.8%5.8%4.0%4.0%4.0%4.0%
Debt Financing $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
8
this unprecedented event. The projected rate increases and debt
issuances will result in debt service coverage and reserves
meeting targeted levels by 2026. When compared to the current
annual debt service levels, the proposed debt financing will not
result in a material increase in the District’s annual debt
service due to two current outstanding debt issuances fully
maturing over the next seven years.
The half and full-rate increase alternatives were not
recommended for FY 2021 due to the impacts these options would
have on the District’s customer base during the COVID-19
pandemic. As the pandemic subsides staff will re-evaluate the
financial impacts and update the related projections. Further
discussion regarding the impacts of the three alternatives
(zero, half, and full) can be found in the Financing Plan
section of this report.
Water Financing Plan Analysis
Based on the analysis performed it would be reasonable to
utilize a combination of future rate increases and future debt
financing to bring reserves to target levels by FY 2026.
The zero-rate increase and half-rate increase options will
result in lower cumulative revenues over the next six years
resulting in a decline in reserve levels and lower debt coverage
ratios. The following table summarizes the six-year cumulative
revenue and reserve level differential between the three
alternatives.
Six-Year Water Revenue and Reserve Differential ($’s millions)
Full
Increase
Half
Increase
Zero
Increase
Revenue Differential $0.0 $(18.8) $(24.5)
Staff projected the future rate increases that would be
necessary to bring reserves to target levels by FY 2026 and the
resulting debt coverage levels without utilizing debt financing.
If the zero-rate increase or half-rate increase alternatives
were chosen for FY 2021, the approximate annual future rate
increases to bring reserves to target are projected to be
between 6.3% and 7.5%, respectively. At these rate increase
levels the debt coverage ratio, excluding growth, would increase
to between 251% and 311%. At these levels, generational equity
is weighed in matching the funding of CIP reserve funding with
those benefiting from the facilities. Debt financing is an
acceptable instrument for matching CIP funding with those
benefiting from the CIP project.
9
Staff also examined the impact additional debt issuances would
have on the District’s annual debt service. The chart below
contains water’s annual projected debt service level for each of
the alternatives through 2029. Excluding the projected debt
issuances, the District’s annual debt service will decrease from
the current $9.4 million to $7.7 million by 2029. The decrease
is due to the 1996 refinancing and 2013 bonds fully maturing.
When considering the projected debt issuances under all the
alternatives an annual debt service between $9.4 and $7.7
million in FY 2029 is projected to be the same as, or less than,
the current annual debt service of $9.4 million.
Based on the projected debt coverage ratios above, evaluations
of the District’s debt burden, and six-year CIP plan, staff is
recommending that debt issuances be utilized in future years to
maintain reserve levels at minimum levels for a period of time
and return reserve levels to target levels by FY 2026.
Water Debt Service Coverage
The debt coverage ratio is the ratio of net revenues to debt
service.
10
“With Growth” Ratio
The “with growth” ratio includes capacity fees, which are
omitted from a “no growth” calculation.
Water has a “with growth” debt service coverage bond covenant of
125%. Water achieved a “with growth” debt service ratio of 212%
in FY 2019 and is projected to achieve a ratio of 244% in FY
2020.
With the recommended zero-rate increase, staff is budgeting that
the FY 2021 “with growth” debt service coverage ratio will be
137%. Under the full-rate increase and half-rate increase
alternatives the ratio is budgeted to be 160% and 149%,
respectively. If the actual sales volume reduction were half
the budgeted amount the debt service ratio is projected to be
153%. The projected decline from FY 2020 to FY 2021 is due to
the combined $4.6 million impact related to COVID-19 presented
at the April 29th Budget Workshop and the $2.3 million estimated
impact of increases in CWA rates and charges.
The ratio is projected to remain above the 125% debt covenant in
all years in the recommended budget, as well as the half-rate
increase and full-rate increase alternatives. The following
table shows the historical and projected “with growth” debt
coverage ratios compared to the coverage ratio covenant for the
three alternatives.
11
“No Growth” Debt Coverage Ratio
Staff has a “no growth” debt service coverage target of 150% and
a “no growth” debt service covenant of 100%. The “no growth”
ratio excludes capacity fee revenues that are included in the
“with growth” ratio. The “no growth” ratio was 165% in 2019,
and is projected to be 203% in FY 2020, which is above the 150%
target. Under the recommended zero-rate increase alternative,
the ratio is projected to decline to 117%, which is just $1.5
million above the requirement. The ratio is projected to
increase above the 150% target by FY 2026. The table below
shows the historic and projected annual “no growth” debt
coverage ratios.
Sewer Rate Recommendation and Financing Plan Analysis
Sewer Rate Recommendation
Staff is recommending a zero-rate increase budget for FY 2021
for sewer with the incorporation of the results of the cost of
service study. The table on the following page summarizes the
projected sewer rates and debt financing for the six-year
period. Staff has incorporated the results of the cost of
service study presented to the Board on May 6, 2020, into the FY
2021 budget and six-year rate model. The incorporation of the
cost of service study rebalances the rates between customer
classes and results in changes to the rates for sewer, but
District wide it is a revenue neutral change.
12
Sewer revenues are a set charge for the year based on past
usage. Implementation of the three-year average recommended in
the cost of service study will result in revenues remaining
relatively flat compared to the prior year budget. On average,
residential sewer customer’s bills will increase on January 1,
2021, by $3.62 due to increases in usage; however, residential
sewer customers will pay an average of $1.04 per month less
during FY 2021 than was paid in FY 2020, and total budgeted
revenues of $2.8 million are flat compared to FY 2020.
Last year staff projected sewer annual rate increases of 6.7%
would be necessary from FY 2022 to FY 2025 to meet the debt
covenant requirements of a $3.0 million debt issuance in FY 2020
and a projected $3.5 million debt issuance in FY 2022. The FY
2020 debt issuance was issued in December 2019. Due to lower
than estimated annual debt service, CIP savings initiatives in
the COVID-19 savings plans, and delays in the City of San
Diego’s Pure Water Program, staff is projecting that FY 2022
debt issuance may be delayed one year under the recommended
zero-rate increase alternative to FY 2023, or delayed two years
under the half-rate increase or the full-rate increase
alternatives. The projected level of debt financing is between
$3.6 million under the recommended zero-rate increase option and
$3.1 million under the full-rate increase alternative.
The following table summarizes the sewer rate increases and debt
financing associated for the three rate alternatives.
Sewer Rate Increase Percentage and Debt Financing Projections ($’s Millions)
Sewer Financing Plan
For sewer customers, the zero-rate increase and half-rate
increase alternatives result in an overall revenue decline for
the six-year period compared to the full-rate increase
alternative. The financial needs of sewer for the FY 2021 six-
year projection are consistent with the FY 2020 financing needs
which included funding anticipated Metro JPA increases and
meeting the requirements of future debt obligations. Sewer
Scenario 2021 2022 2023 2024 2025 2026 Total
Zero Rate Increase
Rate Increases 0.0%7.3%7.3%7.3%7.3%7.3%
Debt Financing $0.0 $0.0 $3.6 $0.0 $0.0 $0.0 $3.6
Half Rate Increase:
Rate Increases 2.8%6.4%6.4%6.4%6.4%6.4%
Debt Financing $0.0 $0.0 $0.0 $3.2 $0.0 $0.0 $3.2
Full Rate Increase:
Rate Increases 5.6%5.6%5.6%5.6%5.6%5.6%
Debt Financing $0.0 $0.0 $0.0 $3.1 $0.0 $0.0 $3.1
13
issued debt in FY 2020 and was projected to need future debt
financing to maintain reserves at target levels along with
future rate increases being necessary to strengthen debt
coverage to meet target levels.
The projected sewer revenue differential for the three
alternatives over the six-year period are shown in the table
below. When compared to the full-increase alternative, the
recommended zero-increase budget is $500 thousand less as shown
in the table.
Six-Year Sewer Revenue and Reserve Differential ($’s millions)
Full
Increase
Half
Increase
Zero
Increase
Revenue Differential – COVID-19 $0.0 $(0.3) $(0.5)
Under the zero-rate increase budget, future annual rate
increases of 7.3% are projected from FY 2022 to FY 2026. At the
August 7, 2019, Board meeting staff projected annual rate
increases of 6.7% from FY 2022 to FY 2026. When compared to the
August 7th projection the increase in projected rate increases is
largely due to the zero-rate increase for FY 2021. When
combined with the recommended debt financing, the recommended
zero-rate increase alternative maintains the reserves above
target levels throughout the six-year rate model period. Under
the half and full-rate increase alternatives the reserves are
maintained at or above target levels throughout the six-year
rate model period. Under the zero-rate increase alternative,
the debt service coverage level declines below target but
remains above the minimum level during the six-year period,
returning to target level by FY 2026.
Depending on the chosen alternative, staff is projecting a sewer
debt issuance between $3.6 million in FY 2023 under the zero-
rate increase budget and $3.1 million in FY 2024 under the full-
rate increase alternative.
Sewer Debt Service Coverage
Sewer has a 115% “with growth” minimum debt coverage ratio, as
defined in the District’s bond covenants. Like water, sewer
also has a “no growth” debt coverage ratio target of 150%.
However, there is no growth projected for sewer; therefore, the
projected “with growth” and “no growth” debt coverages are equal
in each year of the six-year projection.
14
Sewer’s debt service coverage for FY 2020 is projected to be
240%. The table below shows the projected debt coverage ratios
for the six-year rate model period.
With a zero-rate increase staff is projecting a FY 2021 debt
coverage ratio of 504%. The FY 2021 debt coverage ratio under
the half-rate increase and full-rate increase alternatives would
increase to 553% and 596%, respectively. The increase from FY
2020 to FY 2021 is due to the one-year delay in the City of San
Diego’s Pure Water Program. The projected decline from FY 2020
to FY 2022 is due to sewer debt service increasing from $0 in FY
2019 to $160 thousand in FY 2022 as the full debt service for
sewer’s only current outstanding debt obligation becomes
effective.
Due to a debt issuance projected one year earlier in the zero-
rate recommendation, the debt coverage ratio is projected to
drop below the target level in 2024 and increase back to the
target level by 2026. Under the half-rate increase and full-
rate increase alternatives the debt service coverage is
projected to be maintained above targeted levels throughout the
six-year rate model period.
Due to sewer’s size, its debt coverage is sensitive to operating
fluctuations. A $50 thousand incremental increase in sewer
expenditures results in a corresponding debt coverage decrease
of 55%.
15
PERS and OPEB Funding
As of June 30, 2019, PERS and other post-retirement benefits
(OPEB) obligations are 85% and 100% funded, respectively. Due
to the OPEB being 100% funded, staff is budgeting the District
reimburse the General Fund from the OPEB fund for actual retiree
medical expenses. Until now the District has been indirectly
contributing a prepayment of $1.1 million annually to the OPEB
fund, which has resulted in the OPEB becoming fully funded.
Based on input received from the Board at the April 29th Budget
Workshop, staff evaluated retaining the funds in its reserves.
The benefit of retaining the funds is not projected to exceed
the benefit of transferring the funds to PERS. Therefore, staff
is recommending that the funds be transferred to PERS and has
included this assumption in the budget and six-year rate model.
At an interest rate of 7.0% the unfunded pension liability is
the District’s highest debt cost. Transferring the funds to
PERS is cash and debt coverage neutral and will generate a net
present value savings of $5.0 million over 14 years. The plan
would be projected to be fully funded in FY 2034, which is seven
years earlier than projected without the additional
contribution.
Relative Position to Other Districts
The District performs an annual county-wide survey of the water
provider rates. For many years, the District has remained in
the lower half of this comparison. Depending on their relative
dependence on CWA water, it is expected that all water providers
in the county are facing the same rate pressures by purchasing
water from CWA and MWD. The District’s survey, shown in the
attached presentation, illustrates the average District customer
using 11 units, will be charged the third lowest rate when
compared to all 22 agencies in the county.
The District also performs an annual survey comparing its sewer
rates to other sewer providers in the county. The District’s
survey, shown in the attached presentation, illustrates an
average residential sewer customer will be charged the sixth
lowest rate when compared to all 28 agencies in the county.
Water and Sewer Revenues
With a zero-rate increase, average potable and recycled water
sales are budgeted to be $77.8 million and $8.3 million,
respectively. This is a 7.4% decrease in potable water sales
and a 15.2% decline in recycled water sales versus the FY 2020
16
budget. The decline in potable water sales is due to estimated
declines in water volumes because of the pandemic. The decline
in recycled water sales is due to adjusting future volumes due
to a projected 5% budget shortfall in FY 2020 and the projected
impacts of the pandemic.
The sewer budgeted revenues of $2.9 million are expected to
remain relatively unchanged from last year’s budget. Sewer
revenues are a fixed fee based on past usage. Implementation of
the three-year average recommended in the cost of service study
will result in revenues remaining relatively consistent when
considering the impacts of the pandemic.
Other changes in the revenues include the following:
•Capacity fee revenues funding operating expenses are
expected to increase $51 thousand or 2.7%, due to
increases in the planning area for studies being
performed in FY 2021.
•Property tax revenues are expected to decrease $461
thousand or 10.0%, due to anticipated property tax
delinquencies because of the pandemic.
•Non-operating revenues are expected to increase $111
thousand or 5.4%, primarily due to increases in cell-
site lease rates.
Water Costs
For FY 2021, potable and recycled water costs are budgeted to be
$46.8 million and $4.1 million, respectively. Water costs
represent 52.0% of the District’s operating budget and any
changes in the wholesale water price has a significant impact on
the overall operating budget. The net water cost is decreasing
by $2.9 million. The overall decrease is due to a $5.2 million
decrease from reduced water sales volumes, offset by a $2.3
million increase in CWA fees. The melded price per acre-foot is
increasing from $1,761 in FY 2019 to $1,901 in FY 2020. The
increase is due to the impact of rate increases and volume
declines on the conversion of fixed charges calculated on a per
acre-foot basis. On a volume neutral basis, the CWA melded rate
is increasing 5.0% in FY 2021.
CWA’s variable rate is budgeted to increase 4.6% percent from
$1,337 per acre-foot to $1,399 per acre-foot due to declining
sales volumes to CWA member agencies and increases in the rates
charged by CWA’s supplier, MWD.
17
CWA/MWD fixed fees are budgeted to increase $735 thousand, or
5.9%, due to the combined impact of the FY 2020 increases and
projected FY 2021 increases and decreases. Following is a
detailed explanation regarding the changes in each fixed fee.
•The CWA IAC fee is budgeted to increase $458 thousand or
19.2% due to the carryover impact of an FY 2020 actual
increase of 24% or $250 thousand and a FY 2021 proposed
increase of 15.8% or $208 thousand.
•The CWA Customer Service Charge is budgeted to increase
$43 thousand or 2.6% due to the carryover impact of a 5.3%
FY 2020 actual increase. CWA is proposing no increase to
this fee in FY 2021.
•The CWA Emergency Storage Charge is budgeted to increase
$28 thousand or 0.6% due to an actual FY 2020 increase of
2.5% and a FY 2021 proposed decrease of 3.8%.
•The CWA Reliability Charge is budgeted to increase $334
thousand or 14.0% due to the carryover impact of a 25.1%
or $265 thousand due to FY 2020 25% actual increase and a
FY 2021 proposed increase of 5.2%, or $69 thousand.
•The MWD Capacity Reservation Charge is budgeted to
increase $21 thousand or 3.5% due to the carryover of an
actual FY 2020 6.3% decrease, offset by a FY 2021 proposed
increase of 14.0%.
•The MWD Readiness-to-Serve Charge is budgeted to decrease
$150 thousand or 17.2%. The decrease is due to a 9.1%
rate decrease in FY 2021 and a catch-up FY 2020 reduction
of $78 thousand.
The recycled water rate from the City of San Diego for FY 2020
is expected to remain at $1.73/HCF in FY 2021. Overall recycled
water purchases are projected to be unchanged from FY 2021
volumes due to no change in the contractual minimums.
Power Costs
Power costs of $2.9 million for water and sewer are budgeted to
decrease $287 thousand or less than 9.0% versus the FY 2020
budget. This is due primarily to a reduction in water sales
volumes because of the pandemic.
Labor and Benefits
The District has, through strategic planning, reduced the full-
time employee (FTE) count by 20.5% from 174.75 in FY 2007 to
139.0 in FY 2021. In FY 2021, the District will be adding one
18
FTE due to increased workload related to utility maintenance and
construction. The increased workload is being driven by more
valve replacements and small CIP projects. The overall
reduction in FTE’s since 2007 has saved the District $54.5
million over the 14-year period.
The FY 2021 gross labor and benefit expenditures are increasing
$704 thousand (3.0%) to $24.3 million. The increase in the
gross amount is primarily due to:
o $450 thousand, a 2.3% increase in labor costs due to the
2.3% COLA (including fringe impact).
o $291 thousand, an 11.7% increase in PERS expense due to the
anticipated impacts of the reduction in the discount rate
from 7.5% to 7.0%.
o $157 thousand, a 5.5% increase in health insurance
primarily due to an assumed increase in rates and changes
to employees’ coverage.
o $35 thousand, a 0.2% increase due to adding one FTE in the
middle of the fiscal year, position changes, advancements,
and retirements.
Offset by the following decreases:
o $184 thousand, a 30.6% decrease in workers’ compensation
due primarily to a proposed change in insurance providers
and a decrease in the District’s experience modification.
o $24 thousand, an 11.9% decrease in overtime based on recent
trends and main break activity.
o $19 thousand, a 1.8% decrease in OPEB due to the OPEB plan
being fully funded.
Annual Salary Schedule
While the General Manager has authority to set salaries pursuant
to Section 2.01 of the Code of Ordinances, recent legislation,
namely the California Code of Regulations (CCR) section 570.5,
adopted and effective August 10, 2011, as well as a CalPERS
circular letter clarifying section 570.5, require information
regarding the compensation of public employees to be publicly
available. Thus, in order to be in compliance with CCR 570.5,
the District is required to have a publicly available Salary
Schedule that, “has been duly approved and adopted by the
employer’s governing body in accordance with requirements of
applicable public meeting laws.” As such, a copy of the Job
Classification and Salary Schedule is included herein for Board
approval (Exhibit D). Although District salaries are already
made public as a part of our NeoGov recruitment system, this
19
Salary Schedule will be retained for public inspection for the
required five years and posted to the District’s website per
requirements of CalPERS. Please note, that making such
information publicly available does not in any way interfere
with or change the General Manager’s authority to set salaries
pursuant to the authority granted to him. Accordingly, and
consistent with such authority, the Board is requested to
authorize the General Manager to update the Salary Schedule,
when necessary, to reflect changes made within his authority.
Materials and Maintenance
The materials and maintenance budget of $3.7 million is
decreasing by $114 thousand, versus the FY 2020 budget, or 3.0%
due to the following:
o $115 thousand, a 44.3% decrease in meters and materials due
to projected decline in new meter sales.
o $56 thousand, an 8.8% decline in one-time purchases of
equipment.
o $46 thousand, an 18.4% decrease in Spring Valley sewer
charge based on the county completing a major maintenance
project for a shared facility.
o $22 thousand, a 23.8% decrease in safety equipment for
savings initiatives implemented in response to COVID-19.
o $13 thousand, a 1.3% net decrease in contracted services
due to a $23 thousand decrease to savings initiatives
offset by a $10 thousand increase to the expiration of the
Pio Pico grant.
o $8 thousand, a 3.6% decrease in fuel and oil primarily due
to changes in field operations.
o $7 thousand, a 10.3% decrease in building and grounds
materials for a reduction in various District supplies.
These decreases were offset by increases due to:
o $62 thousand, a 10.3% increase in operating expense Metro
costs due to changes related to the City of San Diego’s
Pure Water Program.
o $82 thousand, a 39.9% increase in other materials and
supplies for repair/replacement of appurtenances, including
a $10 thousand increase due to the expiration of the Pio
Pico grant.
20
o $12 thousand, a 3.3% increase in chemicals related to the
purchase of additional SL 1000 chemical monitoring
instruments.
Administrative Expenses
The administrative expenses budget of $7.0 million is
increasing, versus the FY 2020 budget, by $652 thousand or
10.3%, primarily due to the following:
o $379 thousand, a 347.7% increase in bad debt expense
primarily due to projected collection impacts due to the
COVID-19 pandemic and locking moratorium.
o $361 thousand, a 22.6% increase in insurance and legal
primarily due to an increase in the annual premium.
Insurance costs are increasing globally due to worldwide
natural disasters.
o $111 thousand, a 15.8% increase in fees primarily due to
$54 thousand for increases in credit card activity, $45
thousand for election costs, and $12 thousand for agency
costs.
o $64 thousand, a 4.6% increase in equipment due increases in
GIS expenses for mapping updates, increase for the
purchases of a replacement vehicle diagnostic scan tool and
new Board equipment.
These increases were offset by decreases due to:
o $151 thousand, a 7.4% decrease in services for saving
initiatives implemented in response to COVID-19.
o $58 thousand, a 21.9% decrease in travel and memberships is
for savings initiatives implemented in response to COVID-
19. The FY 2021 travel and membership budget consist only
of items that are related to requirements necessary for
staff to maintain required professional licenses or
certifications.
o $30 thousand, a 17.4% decrease in training for savings
initiatives implemented in response to COVID-19. The FY
2021 training budget consist of those that are required for
staff to maintain required professional licenses or
certifications.
o $21 thousand, a 7.7% decrease in general office expenses
primarily due to anticipated reduction in office supplies,
postage, and delivery expenses implemented in response to
COVID-19.
21
o $7 thousand, a 4.3% decrease in conservation and outreach
for savings initiatives implemented in response to COVID-
19.
Transfers
The requested transfers serve the purpose of ensuring the
reserves are funded at target levels, in accordance with the
Reserve Policy. There are two types of transfers the District
can make. The first is the use of operating revenues to fund
reserves which are shown in the operating budget. The second
type of transfer is inter-fund. Both types rebalance funds to
target levels. The total inter-fund transfers requested in this
staff report are $4,702,000.
Capital Improvement Program (CIP) Budget
As a component of the annual budget development process,
Engineering staff update the CIP budget. Consistent with the
April 29, 2020, Budget Workshop, the total six-year CIP budget of
$92.3 million is increasing by $4.0 million versus last year.
Water and sewer total CIP budgets for the six-year period are
$85.4 million and $6.9 million, respectively. Project details
are in Exhibit 1 under the Capital Budget tab.
Next Steps and Monitoring
Staff will continue to monitor the ongoing impacts of COVID-19.
Some of the items that will be monitored on a weekly and monthly
basis include lockable account levels, accounts receivable
aging, waived penalties, sales volumes, property tax revenues,
and capacity fee revenues. Staff will also continue to monitor
legislative changes as well as stimulus package offerings to
evaluate additional potential financial exposure and pursue
available financial relief.
If the impacts of COVID-19 exceed budgeted levels and no
additional financial relief is made available, staff may be
required to return to the Board in September or October to
present a modified budget, which may include additional savings
measures as well as proposed rate increases.
22
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
A six-year rate modeling effort is one of the ways the District
can better inform its customers, minimize financial risks,
reduce rate impacts, and establish fiscal strength.
The recommended balanced operating budget totals $97.5 million
and the recommended CIP budget totals $8.5 million. With budget
approval, the District will move forward into FY 2021 with clear
financial direction and with rates that will maintain the
coverages at or above minimum levels.
This budget, with the recommended transfers, provides sufficient
funding to pay increased water costs; continues funding for the
District’s administration, maintenance, and operations; and is
consistent with the Strategic Plan and Reserve Policy.
STRATEGIC OUTLOOK:
The District ensures its continued financial health through
long-term financial planning and debt planning.
LEGAL IMPACT:
None.
Attachments:
A)Inter-Fund Transfers
B)Resolution No. 4384
Exhibit A - FY 2020-21 Preliminary Operating and
Capital Budget – Zero-Rate Increase
Exhibit B – FY 2020-21 Preliminary Operating and
Capital Budget – Full-Rate Increase
Schedules
Exhibit C – FY 2020-21 Preliminary Operating and
Capital Budget – Half-Rate Increase
Schedules
Exhibit D – Job Classification and Salary Schedule
C)FY 2020-21 Budget Presentation
D)Ordinance No. 577
Exhibit 1 – Appendix A Strike-Through – Full and Half-
Rate Increase
Exhibit 2 – Appendix A Proposed – Full-Rate Increase
Exhibit 3 – Appendix A Proposed – Half-Rate Increase
WATER INTER-FUND TRANSFERS
Potable
Designated General Fund to Designated Replacement $2,185,000
Designated Betterment to Designated Replacement 30,000
Total Potable Inter-Fund Transfers $2,215,000
Recycled
Designated General Fund to Designated Replacement $180,000
Designated Expansion to Designated Replacement 320,000
Designated New Supply to Designated Replacement 237,000
Total Recycled Inter-Fund Transfers $737,000
SEWER INTER-FUND TRANSFERS
Sewer
Designated Betterment to Designated Replacement $1,695,000
Designated Betterment to Designated Expansion 55,000
Total Sewer Inter-Fund Transfers $1,750,000
WATER INTER-FUND TRANSFERS –FULL INCREASE
Potable
Designated Betterment to Designated Replacement $30,000
Total Potable Inter-Fund Transfers $30,000
Recycled
Designated Expansion to Designated Betterment $160,000
Designated New Supply to Designated Replacement 230,000
Total Recycled Inter-Fund Transfers $390,000
SEWER INTER-FUND TRANSFERS –FULL INCREASE
Sewer
Designated Betterment to Designated Replacement $1,750,000
Total Sewer Inter-Fund Transfers $1,750,000
WATER INTER-FUND TRANSFERS –HALF INCREASE
Potable
Designated Betterment to Designated Replacement $30,000
Total Potable Inter-Fund Transfers $30,000
Recycled
Designated Expansion to Designated Betterment $230,000
Designated New Supply to Designated Replacement 235,000
Total Recycled Inter-Fund Transfers $465,000
SEWER INTER-FUND TRANSFERS –HALF INCREASE
Sewer
Designated Betterment to Designated Replacement $1,695,000
Designated Betterment to Designated Expansion 55,000
Total Sewer Inter-Fund Transfers $1,750,000
Page 1 of 2
RESOLUTION NO. 4384
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OTAY WATER DISTRICT ADOPTING THE
FISCAL YEAR 2020-2021
OPERATING AND CAPITAL BUDGET;
AND SALARY SCHEDULE
WHEREAS, the Otay Water District Board of Directors have
been presented with three budget options (Exhibits A, B, and C)
for the operation of the Otay Water District for Fiscal Year
2020-2021; and
WHEREAS, the Fiscal Year 2020-2021 Operating and Capital
Budget options, have been reviewed and considered by the Board;
WHEREAS, it is in the interest of the District to adopt a
budget for said year;
WHEREAS, in connection with the adoption of the budget, the
Board is also being presented with the Salary Schedule
(Exhibit D) for its consideration, in order to comply with
California Code of Regulations Section 570.5,
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by
the Board of Directors of the Otay Water District that the
Operating and Capital Budget for the operation of the District,
incorporated herein by reference as Exhibit ____, is hereby
adopted for water and Exhibit____, is hereby adopted for sewer
as the District’s budget for Fiscal Year 2020-2021.
BE IT FURTHER RESOLVED that the Board hereby approves and
adopts the Salary Schedule included with the budget and,
consistent with his authority over employee compensation under
Page 2 of 2
both State law and the District’s Code of Ordinances, authorizes
the General Manager to update the Salary Schedule, whenever
necessary, to reflect changes made within his authority.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
Otay Water District at a board meeting held this 3rd day of June
2020, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
________________________
President
ATTEST:
____________________________
District Secretary
FY 2019 FY 2020 FY 2020 FY 2021
11-Actual Projected Budget Budget $%
Revenues
Potable Water Sales 77,974,743$ 83,320,937$ 83,951,500$ 77,760,000$ (6,191,500)$ (7.4%)
Recycled Water Sales 8,781,479 9,273,904 9,816,800 8,324,000 (1,492,800) (15.2%)
Sewer Revenues 2,933,657 2,897,216 2,890,000 2,831,000 (59,000) (2.0%)
Meter Fees 220,439 179,361 229,400 123,000 (106,400) (46.4%)
Capacity Fee Revenues 1,898,333 2,216,147 1,868,900 1,920,000 51,100 2.7%
Tax Revenues 4,673,453 4,769,804 4,615,900 4,155,000 (460,900) (10.0%)
Non-operating Revenues 2,639,856 2,712,323 2,065,900 2,177,000 111,100 5.4%
Interest 340,727 410,368 367,900 179,000 (188,900) (51.3%)
Total Revenues 99,462,687 105,780,060 105,806,300 97,469,000 (8,337,300) (7.9%)
Expenditures
Potable Water Purchases 35,777,445 38,286,718 37,282,800 33,631,000 (3,651,800) (9.8%)
Recycled Water Purchases 3,843,264 4,058,332 4,058,400 4,058,000 (400) (0.0%)
CWA - Infrastructure Access Charge 2,127,072 2,380,683 2,380,800 2,839,000 458,200 19.2%
CWA - Customer Service Charge 1,637,269 1,659,216 1,659,600 1,703,000 43,400 2.6%
CWA - Reliability Charge 2,069,007 2,377,306 2,377,200 2,711,000 333,800 14.0%
CWA - Emergency Storage Charge 4,464,397 4,579,906 4,579,800 4,608,000 28,200 0.6%
MWD - Capacity Reservation Charge 692,429 606,328 606,600 628,000 21,400 3.5%
MWD - Net RTS and Standby Charge 925,194 791,589 870,000 720,000 (150,000) (17.2%)
Subtotal - Water Costs 51,536,077 54,740,078 53,815,200 50,898,000 (2,917,200) (5.4%)
Labor and Benefits 21,981,251 21,498,187 21,157,700 21,860,000 702,300 3.3%
Administrative Expenses 5,733,412 5,553,394 6,333,800 6,986,000 652,200 10.3%
Materials and Maintenance 3,472,162 3,572,383 3,834,100 3,720,000 (114,100) (3.0%)
Power 2,877,016 3,157,896 3,184,700 2,898,000 (286,700) (9.0%)
Subtotal - Operations Costs 34,063,841 33,781,860 34,510,300 35,464,000 953,700 2.8%
D General Fund Reserve - 954,400 954,400 264,000 (690,400) (72.3%)
Expansion Reserve 2,758,100 4,927,300 4,927,300 290,000 (4,637,300) (94.1%)
B Betterment Reserve - 3,048,000 3,048,000 1,450,000 (1,598,000) (52.4%)
RReplacement Reserve 12,778,600 7,513,000 7,513,000 7,969,000 456,000 6.1%
TOOPEB Reserve 980,800 1,038,100 1,038,100 1,134,000 95,900 9.2%
New Supply Reserve 75,000 - - - - -
Subtotal - Reserve Funding 16,592,500 17,480,800 17,480,800 11,107,000 (6,373,800) (36.5%)
Total Expenditures 102,192,418 106,002,738 105,806,300 97,469,000 (8,337,300) (7.9%)
Excess Revenues (Expenditures)(2,729,731)$ (222,677)$ -$ -$ -$ -
Operating Budget Summary - General Fund
Budget to Budget
Variance
1
Potable Recycled Sewer Total
Revenues
Water Sales 77,760,000$ -$ -$77,760,000$
Recycled Water Sales - 8,324,000 8,324,000
Sewer Revenues - -2,831,000 2,831,000
Meter Fees 118,000 5,000 - 123,000
Capacity Fee Revenues 1,920,000 - - 1,920,000
Tax Revenues 4,106,000 - 49,000 4,155,000
Non-operating Revenues 2,109,000 - 68,000 2,177,000
Interest 162,000 13,000 4,000 179,000
Total Revenues 86,175,000 8,342,000 2,952,000 97,469,000
Expenditures
Water Purchases 33,631,000 4,058,000 - 37,689,000
CWA - Infrastructure Access Charge 2,839,000 - - 2,839,000
CWA - Customer Service Charge 1,703,000 - - 1,703,000
CWA - Reliability Charge 2,711,000 - - 2,711,000
CWA - Emergency Storage Charge 4,608,000 - - 4,608,000
MWD - Capacity Reservation Charge 628,000 - - 628,000
MWD - Net RTS and Standby Charge 720,000 - - 720,000
Subtotal - Water Costs 46,840,000 4,058,000 - 50,898,000
Labor and Benefits 19,459,000 1,367,000 1,034,000 21,860,000
Administrative Expenses 6,202,000 559,000 225,000 6,986,000
Materials and Maintenance 2,307,000 298,000 1,115,000 3,720,000
Power 2,244,000 502,000 152,000 2,898,000
Subtotal - Operations Costs 30,212,000 2,726,000 2,526,000 35,464,000
D General Fund Reserve - - 264,000 264,000
#Expansion Reserve 290,000 - - 290,000
B Betterment Reserve - 1,450,000 - 1,450,000
R Replacement Reserve 7,815,000 63,000 91,000 7,969,000
TOOPEB Reserve 1,018,000 45,000 71,000 1,134,000
Subtotal - Reserve Funding 9,123,000 1,558,000 426,000 11,107,000
Total Expenditures 86,175,000 8,342,000 2,952,000 97,469,000
Excess Revenue (Expenditures)-$ -$ -$ -$
FY 2021 Operating Budget Summary by System
2
Potable Water Sales 77,760,000$ 79.8%
Recycled Water Sales 8,324,000 8.5%
Sewer Revenues 2,831,000 2.9%
Meter Fees 123,000 0.1%
Capacity Fee Revenues 1,920,000 2.0%
Tax Revenues 4,155,000 4.3%
Non-operating Revenues 2,177,000 2.2%
Interest 179,000 0.2%
97,469,000 100.0%
Potable Water Purchases 46,840,000 48.0%
Recycled Water Purchases 4,058,000 4.2%
Power 2,898,000 3.0%
Labor and Benefits 21,860,000 22.4%
Administrative Expenses 6,986,000 7.2%
Materials & Maintenance 3,720,000 3.8%
Reserve Funding 11,107,000 11.4%
97,469,000$ 100.0%
Operating Budget Summary - General Fund
FY 2021 Operating Revenues
FY 2021 Operating Expenditures
3
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4
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues
Water/Sewer Rates 94,002,600$ 100,493,500$ 108,179,900$ 113,468,300$ 119,715,600$
Meter Fees 128,700 135,400 140,800 143,200 146,000
Capacity Fee Revenues 1,930,000 1,949,000 1,968,000 1,988,000 2,008,000
Non-operating Revenues 2,499,900 2,576,300 2,828,100 2,645,300 2,422,900
Tax Revenues 4,373,500 4,557,700 4,559,700 4,561,700 4,563,700
Interest Income 221,000 233,000 246,000 260,000 275,000
Total Revenues 103,155,700 109,944,900 117,922,500 123,066,500 129,131,200
39,105,900$ 40,930,100$ 44,026,000$ 44,460,200$
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Expenditures
Water Cost 54,011,000 57,606,100 61,439,700 66,667,100 72,024,000
Power 3,005,700 3,117,300 3,233,000 3,353,200 3,477,800
Labor and Benefits 23,065,100 24,085,300 24,698,700 25,348,100 25,979,700
Administrative Expenses 7,124,700 7,170,900 7,381,800 7,599,100 7,822,700
Materials & Maintenance 3,977,400 4,177,300 4,388,800 4,615,300 4,856,100
Net Reserve Funding 11,971,800 13,788,000 16,780,500 15,483,700 14,970,900
Total Expenditures and Transfers 103,155,700 109,944,900 117,922,500 123,066,500 129,131,200
Excess Revenues (Expenditures)-$ -$ -$ -$ -$
-$ -$ -$ -$ -$
General Fund Forecast
This forecast incorporates both cost increases for expenditures and rate increases for revenues,as well as growth
projections.
Expenditures and Transfers
Revenues
$0
$20
$40
$60
$80
$100
$120
$140
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
10
3
11
0
11
8
12
3
12
9
$1
0
3
$1
1
0
$1
1
8
$1
2
3
$1
2
9
Revenues and Expenditures Forecast, in millions ($)
Revenues Expenditures
5
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Fund Balance
General Fund 22,822,300$ 24,058,900$ 25,307,900$ 26,918,500$ 28,560,700$
Betterment Fund 1,007,100 1,217,500 1,885,300 2,216,600 2,215,700
Replacement Fund 30,383,400 29,155,200 28,110,500 43,551,700 33,596,100
Expansion Fund 166,200 411,700 600,000 520,000 517,700
New Supply Fund 2,366,600 2,293,300 2,282,000 2,270,700 2,221,800
Debt Reserve 9,716,800 9,563,900 8,834,900 8,827,900 8,820,900
Total Fund Balance 66,462,400$ 66,700,500$ 67,020,600$ 84,305,400$ 75,932,900$
(416,374) (420,216) (424,007) (427,807) (431,607)
Fund Balances Forecast
Fund Balances by Fund
$0
$20
$40
$60
$80
$100
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Fund Balances Forecast, in millions ($)
General Fund Betterment Fund Replacement Fund Expansion Fund Debt Reserve New Supply Fund
6
FY 2019 FY 2020 FY 2020 FY 2021
11-Actual Projected Budget Budget $%
Revenues
##Water Sales 77,974,743$ 83,320,937$ 83,951,500$ 77,760,000$ (6,191,500)$ (7.4%)
##Meter Fees 213,770 171,561 225,200 118,000 (107,200) (47.6%)
##Capacity Fee Revenues 1,885,940 2,202,847 1,868,900 1,920,000 51,100 2.7%
Tax Revenues 4,621,635 4,718,204 4,563,700 4,106,000 (457,700) (10.0%)
##Non-operating Revenues 2,218,262 2,508,660 2,032,600 2,109,000 76,400 3.8%
##Interest 293,111 360,468 327,700 162,000 (165,700) (50.6%)
Total Revenues 87,207,461 93,282,677 92,969,600 86,175,000 (6,794,600) (7.3%)
Expenditures
Potable Water Purchases 35,777,445 38,286,718 37,282,800 33,631,000 (3,651,800) (9.8%)
##CWA - Infrastructure Access Charge 2,127,072 2,380,683 2,380,800 2,839,000 458,200 19.2%
##CWA - Customer Service Charge 1,637,269 1,659,216 1,659,600 1,703,000 43,400 2.6%
##CWA - Reliability Charge 2,069,007 2,377,306 2,377,200 2,711,000 333,800 14.0%
##CWA - Emergency Storage Charge 4,464,397 4,579,906 4,579,800 4,608,000 28,200 0.6%
##MWD - Capacity Reservation Charge 692,429 606,328 606,600 628,000 21,400 3.5%
##MWD-Net RTS and Standby Charge 925,194 791,589 870,000 720,000 (150,000) (17.2%)
Subtotal - Water Costs 47,692,813 50,681,746 49,756,800 46,840,000 (2,916,800) (5.9%)
##Labor and Benefits 19,555,682 20,027,876 18,547,600 19,459,000 911,400 4.9%
##Administrative Expenses 5,032,115 4,872,836 5,460,600 6,202,000 741,400 13.6%
##Materials and Maintenance 1,987,515 2,163,814 2,311,200 2,307,000 (4,200) (0.2%)
##Power 2,197,262 2,428,168 2,434,900 2,244,000 (190,900) (7.8%)
11-Subtotal - Operations Costs 28,772,574 29,492,694 28,754,300 30,212,000 1,457,700 5.1%
DS General Fund Reserve - 556,100 556,100 - (556,100) (100.0%)
##Expansion Reserve - 2,599,900 2,599,900 290,000 (2,309,900) (88.8%)
Bet Betterment Reserve - 3,048,000 3,048,000 - (3,048,000) (100.0%)
Rep Replacement Reserve 12,489,600 7,321,600 7,321,600 7,815,000 493,400 6.7%
TO OPEB Reserve 906,300 932,900 932,900 1,018,000 85,100 9.1%
Subtotal - Reserve Funding 13,395,900 14,458,500 14,458,500 9,123,000 (5,335,500) (36.9%)
Total Expenditures 89,861,287 94,632,940 92,969,600 86,175,000 (6,794,600) (7.3%)
Excess Revenues (Expenditures)(2,653,826)$ (1,350,262)$ -$ -$ -$ -
Operating Budget Summary - Potable
Budget to Budget
Variance
7
FY 2019 FY 2021
Actual Projected Budget Budget $ %
Water Sales 47,517,849$ 51,640,036$ 52,353,600$ 45,984,000$ (6,369,600)$ -12.2%
System Charges 15,383,214 16,177,865 16,078,600 16,629,000 550,400 3.4%
Energy Charges 2,123,039 2,382,946 2,366,100 1,989,000 (377,100) -15.9%
MWD and CWA Fixed Charges 12,149,114 12,293,242 12,258,800 12,544,000 285,200 2.3%
Penalties 801,527 826,848 894,400 614,000 (280,400) -31.4%-$
Total Water Sales 77,974,743$ 83,320,937$ 83,951,500$ 77,760,000$ (6,191,500)$ -7.4%
Water Sales 45,984,000$ 59.1%
System Charges 16,629,000 21.4%
Energy Charges 1,989,000 2.6%
MWD and CWA Fixed Charges 12,544,000 16.1%
Penalties 614,000 0.8%
Total Water Sales 77,760,000$ 100.0%
Water Sales: Water rates vary among classes of service and are charged per unit of water. A unit of water is
equal to 100 cubic feet of water.
System Charges: Each water service customer pays a monthly system charge for water system replacement,
maintenance, and operation expenses. The charge is based on the size of the meter.
Energy Charges: The energy pumping charge is $ .06 per 100 cubic feet of water for each 100 feet of lift above
the elevation of 450 feet. All water customers are in one of 29 zones based on elevation.
MWD and CWA Fixed Charges: These pass-through charges are calculated to recover the MWD's and CWA's fixed
annual costs including the construction, operation and maintenance of aqueducts, and emergency storage projects.
These fixed charges are based on the size of the meter.
Penalties: Charges and penalties are imposed on customer accounts for late payments and returned checks.
FY 2020
Classification of Water Sales - Potable
Budget to Budget
Variance
FY 2021 Classification of Water Sales
8
Tier Rate Structure Current Proposed Accounts Unit Sales Budget
Residential 46,459 5,670,100 24,439,000$
1 - 10 3.31$ 3.31$
11 - 22 5.91 5.91
over 23 hcf 7.63 7.63
Multi-Residential 884 1,379,500 5,850,000
0 - 4 3.09 3.09
5 - 9 5.61 5.61
over 10 hcf 6.90 6.90
Business and Publicly-Owned
All units 3.92 3.92 1,494 1,625,800 6,373,000
Irrigation and Commercial Agricultural
All units 5.72 5.72 1,471 1,551,700 8,876,000
Total 50,308 10,227,100 45,538,000$
Government Fee 0.42 0.42 - - 446,000
Total Water Sales 50,308 10,227,100 45,984,000$
Units %
Residential 5,670,100 55.4%
Multi-Residential 1,379,500 13.5%
Business and Publicly-Owned 1,625,800 15.9%
Irrigation and Commercial
Agricultrual 1,551,700 15.2%
Total Water Sales 10,227,100 100.0%
Water Sales Summary by Service Class - Potable
Water Rates FY 2021
FY 2021 Unit Sales by Service Class
9
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget
Residential 6,266,299 6,761,701 6,187,132 6,443,200 6,508,300 5,670,000
Multi-Residential 1,516,436 1,602,807 1,598,041 1,567,600 1,583,400 1,379,500
Business and Publicly-Owned 1,815,635 1,924,280 1,874,312 1,847,500 1,866,200 1,625,800
Irrigation and Commercial Agricultural 1,651,961 1,938,595 1,667,267 1,763,400 1,781,200 1,551,800
Total Unit Sales 11,250,331 12,227,383 11,326,752 11,621,700 11,739,100 10,227,100
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget
Residential 45,086 45,518 45,972 46,194 46,463 46,459
Multi-Residential 802 820 821 874 826 884
Business and Publicly-Owned 2,227 2,271 2,302 2,342 2,291 2,342
Irrigation and Commercial Agricultural 1,387 1,436 1,460 1,469 1,454 1,471
Total Meter Count 49,502 50,045 50,555 50,879 51,034 51,156
Unit Sales History and Meter Count by Customer Class - Potable
Unit Sales in thousands and Meter Count Trends
Actual
Actual
FY 2020
FY 2020
5,000
15,000
25,000
35,000
45,000
55,000
-
5,000
10,000
15,000
20,000
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
Potable Meters Potable Unit Sales
Units Meters
10
FY 2020 FY 2021 FY 2020 FY 2021
Meter Size Count Count Current Proposed Budget Budget $%
Residential
0.75 45,369 45,301 18.87$ 18.87$ 9,984,400$ 10,228,000$ 243,600$ 2.4%
1.00 1,071 1,135 26.67 26.67 335,300 363,000 27,700 8.3%
1.50 19 19 46.13 46.13 10,300 11,000 700 6.8%
2.00 4 4 69.49 69.49 3,300 3,000 (300) -9.1%
Sub-total 46,463 46,459 10,333,300 10,605,000 271,700 2.6%
Multi-Residential
0.75 33 37 41.49 41.49 16,100 18,000 1,900 11.8%
1.00 152 190 58.59 58.59 104,600 134,000 29,400 28.1%
1.50 247 249 101.38 101.38 294,000 301,000 7,000 2.4%
2.00 257 263 152.67 152.67 459,700 482,000 22,300 4.9%
3.00 61 66 289.53 289.53 198,900 216,000 17,100 8.6%
4.00 66 69 443.54 443.54 343,700 367,000 23,300 6.8%
6.00 7 7 871.38 871.38 71,600 73,000 1,400 2.0%
8.00 3 3 1,384.73 1,384.73 48,800 50,000 1,200 2.5%
10.00 - - 1,983.62 1,983.62 - - - 0.0%
Sub-total 826 884 1,537,400 1,641,000 103,600 6.7%-
Business and Publicly-Owned
0.75 329 344 39.08 39.08 150,900 161,000 10,100 6.7%
1.00 355 371 55.19 55.19 230,000 246,000 16,000 7.0%
1.50 303 305 95.50 95.50 339,700 350,000 10,300 3.0%
2.00 392 394 143.82 143.82 661,800 680,000 18,200 2.8%
3.00 38 39 272.73 272.73 121,700 128,000 6,300 5.2%
4.00 28 27 417.79 417.79 137,300 135,000 (2,300) -1.7%
6.00 9 9 820.82 820.82 86,700 89,000 2,300 2.7%
8.00 - - 1,304.36 1,304.36 - - -
10.00 5 5 1,868.46 1,868.46 109,700 112,000 2,300 2.1%
Sub-total 1,459 1,494 1,837,800 1,901,000 63,200 3.4%-
Irrigation and Commercial Agricultural
0.75 124 124 33.00 33.00 48,000 49,000 1,000 2.1%
1.00 290 300 46.61 46.61 158,400 167,000 8,600 5.4%
1.50 392 393 80.65 80.65 370,700 379,000 8,300 2.2%
2.00 463 463 121.44 121.44 660,100 675,000 14,900 2.3%
3.00 3 3 230.32 230.32 8,100 8,000 (100) -1.2%
4.00 175 181 352.85 352.85 724,900 766,000 41,100 5.7%
6.00 7 7 693.20 693.20 57,000 58,000 1,000 1.8%
8.00 - - 1,101.58 1,101.58 - - -
10.00 - - 1,577.99 1,577.99 - - -
Sub-total 1,454 1,471 2,027,200 2,102,000 74,800 3.7%
Fire Services
Less than 3"50 49 22.55 22.55 13,200 13,000 (200)
More than 4"782 799 30.38 30.38 278,900 291,000 12,100
Sub-total 832 848 292,100 304,000 11,900 4.1%
Set-up Fees 15.00 15.00 50,800 76,000 25,200
Total 51,034 51,156 16,078,600$ 16,629,000$ 550,400$ 3.4%
System Charges - Potable
System Charges Budget to Budget Variance
11
FY 2021 FY 2020 FY 2021
Meter Size Count Current Proposed Budget Budget $%
0.75 45,800 15.56$ 15.56$ 8,379,400$ 8,527,000$ 147,600$ 1.8%
1.00 1,988 28.89 28.89 635,500 689,000 53,500 8.4%
1.50 962 65.31 65.31 738,700 753,000 14,300 1.9%
2.00 1,123 111.10 111.10 1,464,100 1,497,000 32,900 2.2%
3.00 108 236.29 236.29 278,000 295,000 17,000 6.1%
4.00 102 378.38 378.38 447,400 463,000 15,600 3.5%
6.00 18 774.56 774.56 164,900 167,000 2,100 1.3%
8.00 3 1,250.83 1,250.83 44,400 45,000 600 1.4%
10.00 5 1,800.41 1,800.41 106,400 108,000 1,600 1.5%
Total 50,109 12,258,800$ 12,544,000$ 285,200$ 2.3%
(1) Construction Meters, Fire Services, and Recycled Meters are exempt from MWD and CWA Fixed Charges.
Historical MWD and CWA Fixed Charges, in millions ($)
Budget to Budget
Variance
MWD and CWA Fixed Charges (Pass-Through) - Potable
MWD and CWA Fixed Charges
$0
$2
$4
$6
$8
$10
$12
$14
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
(1)
12
Meter Size Meter Sales Installation Fee Meter Fee Total Fees Budget
0.75 266 112.11$ 236.25$ 348.36$ 93,000$
1.00 - 112.11 304.86 416.97 -
1.50 3 112.11 495.51 607.62 2,000
2.00 - 112.11 710.01 822.12 -
3.00 8 674.99 2,212.68 2,887.67 23,000
4.00 - 674.99 3,843.08 4,518.07 -
6.00 - 1,066.20 6,638.04 7,704.24 -
8.00 - 1,634.92 8,293.74 9,928.66 -
10.00 - 1,634.92 11,927.94 13,562.86 -
Total 277 118,000$
Meter Fees - Potable
Meter Fees: Charges collected for new water service connections. Fees vary depending upon meter
size and type of service.The costs associated with meter installations are included in the Operating
Expenses section of the budget. These charges are funded by developers.
Historical Meter Count
FY 2021
-
15,000
30,000
45,000
60,000
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
13
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget
Water Sales 46,265,872$ 54,262,051$ 47,517,849$ 51,640,036$ 52,353,600$ 45,984,000$
System Charges 12,243,766 13,078,386 15,383,214 16,177,865 16,078,600 16,629,000
Energy Charges 2,334,565 2,040,410 2,123,039 2,382,946 2,366,100 1,989,000
MWD and CWA Fixed Charges 12,398,886 11,920,268 12,149,114 12,293,242 12,258,800 12,544,000
Penalties 734,261 830,217 801,527 826,848 894,400 614,000
Total Potable Revenues 73,977,350$ 82,131,332$ 77,974,743$ 83,320,937$ 83,951,500$ 77,760,000$
Revenue History - Potable, in millions ($)
Revenue History - Potable
FY 2020
Actual
$-
$20
$40
$60
$80
$100
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projection
FY 2020
Budget
FY 2021
Budget
Water Sales System Charges Energy Charges MWD & CWA Fixed Charges Penalties
14
FY 2021 FY 2021
Projected Budget Budget Projected Budget Budget $ %
Potable Water Purchases (CWA):
Rate Effective January 1,371.00$ 1,337.00$ 1,399.00$ 62.00$ 4.6%
Budgeted Sales 26,679.8 26,949.2 23,478.2 36,578,819 35,558,600$ 32,043,000$ (3,515,600)$ -9.9%
District & Unbilled Usage (1)178.7 176.3 178.7 235,333 232,900 243,000 10,100 4.3%
Water Loss 1,081.1 1,130.2 985.7 1,472,566 1,491,300 1,345,000 (146,300) -9.8% Budgeted Sales Treatment (CSD)- - - - - - 0.0%
Total Variable Charges 27,939.5 28,255.7 24,642.6 38,286,718$ 37,282,800$ 33,631,000$ (3,651,800) -9.8%
CWA and MWD Fixed Charges:
CWA - Infrastructure Access Charge 2,380,683$ 2,380,800$ 2,839,000$ 458,200$ 19.2%
CWA - Customer Service Charge 1,659,216 1,659,600 1,703,000 43,400 2.6%
CWA - Emergency Storage Charge 4,579,906 4,579,800 4,608,000 28,200 0.6%
CWA - Reliability Fixed Charge 2,377,306 2,377,200 2,711,000 333,800 14.0%
MWD - Capacity Reservation Charge 606,328 606,600 628,000 21,400 3.5%
MWD - Readiness-to-Serve Charge 791,589 870,000 720,000 (150,000) -17.2%
Total Fixed Charges 12,395,028$ 12,474,000$ 13,209,000$ 735,000$ 5.9%
Total Variable and Fixed Charges 50,681,746$ 49,756,800$ 46,840,000$ (2,916,800)$ -5.9%
Average Cost Per Acre-Foot 1,814$ 1,761$ 1,901$
(1) Excludes potable supplement to recycled system.
Water Purchases and Related Costs - Potable
Budget to Budget
VarianceAcre Feet Purchase Costs
FY 2020 FY 2020
-
8,000
16,000
24,000
32,000
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
Historical Potable Water Purchases, in acre-feet
15
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget $ %
Administrative Buildings 196,288$ 188,067$ 168,286$ 170,968$ 183,800$ 154,000$ (29,800)$ -16.2%
Potable Transmission 1,981,178 2,111,203 2,028,976 2,269,200 2,251,100 2,090,000 (161,100) -7.2%
Total Power Costs 2,177,466$ 2,299,270$ 2,197,262$ 2,440,168$ 2,434,900$ 2,244,000$ (190,900)$ -7.8%
Power Costs - Potable
Budget to Budget
Variance
Historical Power Costs, in thousands ($)
Actual
FY 2020
$0
$500
$1,000
$1,500
$2,000
$2,500
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
Administrative Buildings Potable Transmission
16
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Administrative Expenditures
Directors' Fees 55,925$ 80,000$ 80,000$ -$ 0.0%
Travel and Memberships 220,516 262,600 198,000 (64,600) (24.6%)
Conservation and Outreach 157,644 171,400 164,000 (7,400) (4.3%)
General Office Expense 232,821 270,900 250,000 (20,900) (7.7%)
Equipment 1,374,465 1,346,600 1,427,000 80,400 6.0%
Fees 666,276 674,200 776,000 101,800 15.1%
Services 1,687,171 1,844,300 1,746,000 (98,300) (5.3%)
Training 109,005 173,100 143,000 (30,100) (17.4%)
Utilities 13,894 15,800 16,000 200 1.3%
Insurance and Legal 1,218,137 1,420,700 1,782,000 361,300 25.4%
Bad Debt Expense 111,547 104,700 485,000 380,300 363.2%
Subtotal before Overhead 5,847,401 6,364,300 7,067,000 702,700 11.0%
Less: Overhead Allocation (815,417) (903,700) (865,000) 38,700 (4.3%)
Total Expenditures 5,031,984$ 5,460,600$ 6,202,000$ 741,400$ 13.6%
4,403,925$ 5,400,900$ 8,849,000$
Directors' Fees 80,000$ 1.1%
Travel and Memberships 198,000 2.8%
Conservation and Outreach 164,000 2.3%
General Office Expense 250,000 3.4%
Equipment 1,427,000 20.2%
Fees 776,000 11.0%
Services 1,746,000 24.8%
Training 143,000 2.0%
Utilities 16,000 0.2%
Insurance and Legal 1,782,000 25.2%
Bad Debt Expense (1)485,000 6.9%
7,067,000 100.0%
Less: Overhead Allocation (865,000)
Total Administrative Expenses 6,202,000$
(1)Includes Miscellaneous Expense.
Administrative Expenditures - Potable
Budget to Budget
Variance
FY 2021 Administrative Expenditures - Potable
17
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Materials and Maintenance
Fuel and Oil 179,711$ 189,200$ 189,000$ (200)$ (0.1%)
Meters and Materials 243,489 251,000 136,000 (115,000) (45.8%)
Fleet Parts and Equipment 123,525 135,300 130,000 (5,300) (3.9%)
Infrastructure Equipment & Supplies 402,932 394,800 371,000 (23,800) (6.0%)
Chemicals 117,883 194,400 207,000 12,600 6.5%
Safety Equipment 51,876 76,500 69,000 (7,500) (9.8%)
Laboratory Equipment and Supplies 40,087 45,700 43,000 (2,700) (5.9%)
Other Materials and Supplies 245,919 200,600 282,000 81,400 40.6%
Building and Grounds Materials 66,428 68,000 61,000 (7,000) (10.3%)
Contracted Services 515,665 755,700 819,000 63,300 8.4%
Total Expenditures 1,987,515$ 2,311,200$ 2,307,000$ (4,200)$ (0.2%)
Fuel and Oil 189,000$ 8.2%
Meters and Materials 136,000 5.9%
Fleet Parts and Equipment 130,000 5.6%
Infrastructure Equipment and Supplies 371,000 16.1%
Chemicals 207,000 9.0%
Safety Equipment 69,000 3.0%
Laboratory Equipment and Supplies 43,000 1.9%
Other Materials and Supplies 282,000 12.2%
Building and Grounds Materials 61,000 2.6%
Contracted Services 819,000 35.5%
Total Expenditures 2,307,000$ 100.0%
Materials and Maintenance Expenditures - Potable
Budget to Budget
Variance
FY 2021 Materials and Maintenance Expenditures - Potable
18
FY 2019 FY 2020 FY 2020 FY 2021
31-Actual Projected Budget Budget $%
Revenues
Recycled Water Sales 8,781,479$ 9,273,904$ 9,816,800$ 8,324,000$ (1,492,800)$ (15.2%)
Meter Fees 6,669 7,800 4,200 5,000 800 19.0%
Interest 33,639 32,800 24,700 13,000 (11,700) (47.4%)
Total Revenues 8,821,787 9,314,504 9,845,700 8,342,000 (1,503,700) (15.3%)
Expenditures
Recycled Water Purchases 3,843,264 4,058,332 4,058,400 4,058,000 (400) (0.0%)
Labor and Benefits 1,343,434 856,691 1,442,800 1,367,000 (75,800) (5.3%)
Administrative Expenses 486,328 421,955 591,300 559,000 (32,300) (5.5%)
Materials and Maintenance 213,027 261,984 331,100 298,000 (33,100) (10.0%)
Power 536,179 585,272 595,500 502,000 (93,500) (15.7%)
1 Subtotal - Operations Costs 6,422,232 6,184,234 7,019,100 6,784,000 (235,100) (3.3%)
DGeneral Fund Reserve - 398,300 398,300 - (398,300) (100.0%)
Expansion Reserve 2,712,100 2,281,400 2,281,400 - (2,281,400) (100.0%)
B Betterment Reserve - - - 1,450,000 1,450,000 100.0%
RReplacement Reserve - 81,100 81,100 63,000 (18,100) (22.3%)
TOPEB Reserve 34,900 65,800 65,800 45,000 (20,800) (31.6%)
NNew Supply Reserve 75,000 - - - - -
Subtotal - Reserve Funding 2,822,000 2,826,600 2,826,600 1,558,000 (1,268,600) (44.9%)
Total Expenditures 9,244,232 9,010,834 9,845,700 8,342,000 (1,503,700) (15.3%)
(422,445)$ 303,670$ -$ -$ -$ - Excess Revenues/Expenditures
Operating Budget Summary - Recycled
Budget to Budget
Variance
19
FY 2019 FY 2021
Actual Projected Budget Budget $%
Water Sales 6,347,342$ 6,679,906$ 7,187,000$ 6,028,000$ (1,159,000)$ -16.1%
System Charges 798,349 828,990 827,600 854,000 26,400 3.2%
Energy Charges 315,385 354,856 360,900 284,000 (76,900) -21.3%
MWD and CWA Rebates 1,292,330 1,377,723 1,407,800 1,137,000 (270,800) -19.2%
Penalties 28,073 32,429 33,500 21,000 (12,500) -37.3%
Total Recycled Water Sales 8,781,479$ 9,273,904$ 9,816,800$ 8,324,000$ (1,492,800)$ -15.2%
Water Charges 6,028,000$ 72.3%
System Charges 854,000 10.3%
Energy Charges 284,000 3.4%
MWD and CWA Rebates 1,137,000 13.7%
Penalties 21,000 0.3%
8,324,000$ 100%
Water Sales: Water rates vary among classes of service and are charged per unit of water. A unit of water is equal to
100 cubic feet of water.
System Charges: Each water service customer pays a monthly system charge for water system replacement,
maintenance, and operation expenses. The charge is based on the size of the meter.
Energy Charges: The energy pumping charge is $ .06 per 100 cubic feet of water for each 100 feet of lift above the
elevation of 450 feet. All water customers are in one of 29 zones based on elevation.
MWD and CWA Rebates: Incentive from MWD and CWA for providing recycled water. The District receives $200
from CWA and $185 from MWD for every acre-foot (AF) of recycled water sold.
Penalties: Charges and penalties are imposed on customer accounts for late payments and returned checks.
Budget to Budget
Variance
FY 2021 Classification of Water Sales
Classification of Water Sales - Recycled
FY 2020
20
Current Proposed Accounts Unit Sales Budget
Recycled Irrigation
All units 4.65$ 4.65$ 738 1,165,400 5,419,000$
Recycled Commercial
All units 3.29 3.29 1 120,800 397,000
Total 739 1,286,200 5,816,000$
Government Fee 0.42 0.42 - - 212,000
Total Water Sales 739 1,286,200 6,028,000$
Units %
Recycled Irrigation 1,165,400 91%
Recycled Commercial 120,800 9%
1,286,200 100%
FY 2021
Water Sales Summary by Meter Size - Recycled
Water Rates
FY 2021 Unit Sales by Meter Size
(1)
21
FY 2021 FY 2020 FY 2021
Meter Size Meter Count Current Proposed Budget Budget $%
Irrigation
0.75 3 33.95$ 33.95$ 1,200$ 1,000$ (200)$ -16.7%
1.00 112 47.95 47.95 59,950 64,000 4,050 6.8%
1.50 405 82.97 82.97 391,300 402,000 10,700 2.7%
2.00 205 124.94 124.94 290,650 305,000 14,350 4.9%
3.00 4 236.94 236.94 11,100 11,000 (100) -0.9%
4.00 7 362.99 362.99 34,000 31,000 (3,000) -8.8%
6.00 2 724.02 724.02 16,900 17,000 100 0.6%
8.00 - 1,133.22 1,133.22 - - - -
10.00 - 1,623.32 1,623.32 - - - -
Sub-total 738 805,100$ 831,000$ 25,900$ 3.2%
Commercial
0.75 - 40.21$ 40.21$ - - - -
1.00 - 56.78 56.78 - - - -
1.50 - 98.27 98.27 - - - -
2.00 - 148.00 148.00 - - - -
3.00 - 280.65 280.65 - - - -
4.00 - 429.92 429.92 - - - -
6.00 - 844.62 844.62 - - - -
8.00 - 1,342.20 1,342.20 - - - -
10.00 1 1,922.69 1,922.69 22,500 23,000 500 2.2%
Sub-total 1 22,500 23,000 500 2.2%
Total 739 827,600$ 854,000$ 26,400$ 3.2%
System Charges - Recycled
System Charges Budget to Budget Variance
22
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget
Recycled Irrigation 1,393,468 1,588,141 1,313,652 1,371,040 1,443,200 1,165,400
Recycled Commercial 232,300 222,361 148,980 142,120 149,600 120,800
Total Unit Sales 1,625,768 1,810,502 1,462,632 1,513,160 1,592,800 1,286,200
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget
Recycled Irrigation 719 723 725 730 730 738
Recycled Commercial 2 1 1 1 1 1
Total Meter Count 721 724 726 731 731 739
Unit Sales History and Meter Count by Customer Class - Recycled
Unit Sales in thousands and Meter Count Trends
FY 2020
FY 2020
Actual
Actual
-
150
300
450
600
750
100
500
900
1,300
1,700
2,100
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
MetersUnits
Meter Count Recycled Unit Sales
23
Meter Size Meter Sales Installation Fee Meter Fee Total Fees Budget
0.75 - 112.11$ 236.25$ 348.36$ -$
1.00 2 112.11 304.86 416.97 1,000
1.50 3 112.11 495.51 607.62 2,000
2.00 3 112.11 710.01 822.12 2,000
3.00 - 674.99 2,212.68 2,887.67 -
4.00 - 674.99 3,843.08 4,518.07 -
6.00 - 1,066.20 6,638.04 7,704.24 -
8.00 - 1,634.92 8,293.74 9,928.66 -
10.00 - 1,634.92 11,927.94 13,562.86 -
Total 8 5,000$
Meter Fees - Recycled
Historical Meter Count
Meter Fees:Charges collected for new water service connections. Fees vary depending upon
meter size and type of service.The costs associated with meter installations are included in the
Operating Expenses section of the budget. These charges are funded by developers.
FY 2021
550
575
600
625
650
675
700
725
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
24
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget
Water Sales 7,431,235$ 7,883,748$ 6,347,342$ 6,679,906$ 7,187,000$ 6,028,000$
System Charges 434,775 594,049 798,349 828,990 827,600 854,000
Energy Charges 417,595 347,841 315,385 354,856 360,900 284,000
MWD and CWA Rebates 1,436,936 1,600,214 1,292,330 1,377,723 1,407,800 1,137,000
Penalties 22,259 38,012 28,073 32,429 33,500 21,000
Total Recycled Revenues 9,742,800$ 10,463,864$ 8,781,479$ 9,273,904$ 9,816,800$ 8,324,000$
Revenue History - Recycled
Revenue History - Recycled, in millions ($)
Actual
FY 2020
$-
$2
$4
$6
$8
$10
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
Water Sales System Charges Energy Charges MWD and CWA Rebates Penalties
25
FY 2021 FY 2021
Projected Budget Budget Projected Budget Budget $ %
Rate Per Acre Feet 756.00$ 756.00$ 756.00$ -$ 0.0%
Recycled Water Purchases 2,476.9 2,607.2 1,927.6 1,872,521$ 1,971,100$ 1,457,000$ (514,100)$ -26.1%
Meter Fee $1,333.75 monthly 16,000 16,000 16,000 - 0.0%
Take-or-pay contract (1)2,870.1 2,739.8 3,419.4 2,169,811 2,071,300 2,585,000 513,700 24.8%
Total 5,347.0 5,347.0 5,347.0 4,058,332$ 4,058,400$ 4,058,000$ (400)$ 0.0%
Average Cost Per Acre-Foot (Effective Rate)1,638.49$ 1,556.59$ 2,105.18$
(1) This is the anticipated take-or-pay amount to be paid to the City of San Diego. The contract requires the purchase of a
minimum volume of water. The District does not anticipate meeting the minimum therefore, a payment would be due
to the City of San Diego.
HISTORICAL RECYCLED WATER PURCHASES, IN ACRE-FEET
Water Purchases - Recycled
FY 2020 Budget to Budget
Acre Feet Purchase Costs Variance
FY 2020
-
500
1,000
1,500
2,000
2,500
3,000
3,500
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
26
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget $ %
Total Power Cost 590,035$ 665,509$ 536,179$ 585,272$ 595,500$ 502,000$ (93,500)$ -15.7%
Power Costs - Recycled
FY 2020 Budget to Budget
Variance
Historical Power Costs, in thousands ($)
Actual
$0
$100
$200
$300
$400
$500
$600
$700
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
27
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Administrative Expenditures
Equipment 4,291 7,500 6,000 (1,500) (20.0%)
Fees 24,340 20,500 29,000 8,500 41.5%
Services 109,005 138,500 111,000 (27,500) (19.9%)
Insurance and Legal (1)129,404 175,000 175,000 -0.0%
Subtotal before Overhead 267,040 341,500 321,000 (20,500) (6.0%)
Add: Overhead Allocation 219,288 249,800 238,000 (11,800) (4.7%)
Total Expenditures 486,328$ 591,300$ 559,000$ (32,300)$ (5.5%)
Equipment 6,000$ 1.0%
Fees 29,000 5.2%
Services 111,000 19.9%
Insurance and Legal 175,000 31.3%
Overhead Allocation 238,000 42.6%
Total Expenditures 559,000$ 100.0%
(1) Legal expenses pertaining to the City of San Diego Recycled Water Rate Lawsuit.
FY 2021 Administrative Expenditures - Recycled
Administrative Expenditures - Recycled
Budget to Budget
Variance
28
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Materials and Maintenance
Fuel and Oil 17,548$ 31,800$ 24,000$ (7,800)$ (24.5%)
Meters and Materials 2,285 7,500 8,000 500 6.7%
Infrastructure Equipment & Supplies 62,487 102,800 82,000 (20,800) (20.2%)
Chemicals 85,225 146,000 149,000 3,000 2.1%
Safety Equipment 3,040 7,000 -(7,000) (100.0%)
Laboratory Equipment and Supplies 4,559 4,400 5,000 600 13.6%
Other Materials and Supplies 4,781 4,500 4,000 (500)(11.1%)
Contracted Services 33,102 27,100 26,000 (1,100) (4.1%)
Total Expenditures 213,027$ 331,100$ 298,000$ (33,100)$ (10.0%)
Fuel and Oil 24,000$ 8.1%
Meters and Materials 8,000 2.7%
Infrastructure Equipment & Supplies 82,000 27.5%
Chemicals 149,000 50.0%
Laboratory Equipment & Supplies 5,000 1.7%
Other Materials and Supplies 4,000 1.3%
Contracted Services 26,000 8.7%
Total Expenditures 298,000$ 100.0%
Materials and Maintenance Expenditures - Recycled
Budget to Budget
Variance
FY 2021 Materials and Maintenance Expenditures - Recycled
29
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30
FY 2019 FY 2020 FY 2020 FY 2021
21-Actual Projected Budget Budget $%
Revenues
#Sewer Revenues 2,933,657$ 2,897,216$ 2,890,000$ 2,831,000$ (59,000)$ (2.0%)
#Capacity Fee Revenues 12,393 13,300 - - - -
Tax Revenues 51,818 51,600 52,200 49,000 (3,200) (6.1%)
#Non-operating Revenues 420,124 203,663 33,300 68,000 34,700 104.2%
#Interest 13,977 17,100 15,500 4,000 (11,500) (74.2%)
Total Revenue 3,431,969 3,182,879 2,991,000 2,952,000 (39,000) (1.3%)
Expenditures
#Labor and Benefits 1,082,135 613,620 1,167,300 1,034,000 (133,300) (11.4%)
#Administrative Expenses 214,969 258,603 281,900 225,000 (56,900) (20.2%)
#Materials and Maintenance 1,271,620 1,146,585 1,191,800 1,115,000 (76,800) (6.4%)
#Power 143,575 144,456 154,300 152,000 (2,300) (1.5%)
11 Subtotal - Operations Costs 2,712,299 2,163,264 2,795,300 2,526,000 (269,300) (9.6%)
DGeneral Fund Reserve - - - 264,000 264,000 100.0%
#Expansion Reserve 46,000 46,000 46,000 - (46,000) (100.0%)
R Replacement Reserve 289,000 110,300 110,300 91,000 (19,300) (17.5%)
TOOPEB Reserve 39,600 39,400 39,400 71,000 31,600 80.2%
Subtotal - Reserve Funding 374,600 195,700 195,700 426,000 230,300 117.7%
Total Expenditures 3,086,899 2,358,964 2,991,000 2,952,000 (39,000) (1.3%)
345,070$ 823,915$ -$ -$ -$ -
Excess Revenue/(Expenditures)
Operating Budget Summary - Sewer
Budget to Budget
Variance
31
FY 2021 FY 2021
Accounts Current Proposed(1)Budget Budget $%
Residential 4,589 2.93$ 2.89$ 1,382,000$ 1,283,000$ (99,000)$ -7.2%
Multi-Residential 50 2.93 2.89 193,100 194,000 900 0.5%
Commercial
Low Strength 46 2.93 2.89 67,100 72,000 4,900 7.3%
Medium Strength 12 3.64 3.29 34,700 35,000 300 0.9%
High Strength 7 5.01 4.63 24,300 25,000 700 2.9%
Schools 6 2.93 2.89 97,300 98,000 700 0.7%
Churches 4 2.93 2.89 10,400 10,000 (400) -3.8%
Subtotal Commercial 75 233,800 240,000 6,200 2.7%
Total Sewer Charges 4,714 1,808,900$ 1,717,000$ (91,900)$ -5.1%
Single-Family 1,283,000$ 74.7%
Multi-Family 194,000 11.3%
Commercial 240,000 14.0%
1,717,000$ 100.0%
(1)Proposed rates for sewer service beginning in January 2021.
FY 2021 Charges Summary by Service Class
Charges Summary by Service Class - Sewer
Usage Rate Budget to Budget
VarianceFY 2020
32
FY 2021 Current Proposed FY 2020 FY 2021
Meter Size Accounts Charges Charges(1)Budget Budget $ %
Residential 4,589 16.38 16.13$ 864,500$ 895,000$ 30,500$ 3.5%
Multi-Residential/Commercial
0.75 24 16.38 16.13 4,300 5,000 700 16.3%
1.00 5 40.94 40.32 2,300 2,000 (300) -13.0%
1.50 20 81.88 80.63 18,800 20,000 1,200 6.4%
2.00 62 131.00 129.00 93,100 97,000 3,900 4.2%
3.00 6 245.64 241.89 16,900 18,000 1,100 6.5%
4.00 6 409.40 403.15 28,200 29,000 800 2.8%
6.00 1 818.79 806.29 9,400 10,000 600 6.4%
8.00 - 1,310.08 1,290.08 - - -
10.00 1 1,883.23 1,854.49 21,600 22,000 400 1.9%
Total System Charges 4,714 1,059,100$ 1,098,000$ 38,900$ 3.7%
(1)Proposed rates for sewer service beginning in January 2021.
System Charges - Sewer
Budget to Budget
Variance
33
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget
Sewer Charges 2,929,899$ 2,809,415$ 2,913,787$ 2,880,925$ 2,868,000$ 2,815,000$
Penalties 25,531 28,797 19,870 16,291 22,000 16,000
Total 2,955,430$ 2,838,212$ 2,933,657$ 2,897,216$ 2,890,000$ 2,831,000$
Revenue History - Sewer, in thousands ($)
Revenue History - Sewer
FY 2020
Actual
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
Sewer Charges Penalties
34
FY 2017 FY 2018 FY 2019 FY 2021
Projected Budget Budget $ %
Total Power Cost 122,622$ 173,997$ 143,575$ 144,456$ 154,300$ 152,000$ (2,300)$ -1.5%
Power Costs - Sewer
FY 2020 Budget to Budget
Variance
Actual
Historical Power Costs, in thousands ($)
$20
$60
$100
$140
$180
FY 2017
Actual
FY 2018
Actual
FY 2019
Actual
FY 2020
Projected
FY 2020
Budget
FY 2021
Budget
35
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Administrative Expenditures
Travel and Memberships -$ -$7,000$ 7,000$ 0.0%
Equipment 9,070 23,300 8,000 (15,300)$ (65.7%)
Fees 3,686 3,800 4,000 200 5.3%
Services 25,538 50,300 26,000 (24,300) (48.3%)
Bad Debt Expense 1,085 4,300 3,000 (1,300) (30.2%)
Total 39,379 81,700 48,000 (33,700) (41.2%)
Add: Overhead Allocation 175,590 200,200 177,000 (23,200) (11.6%)
Total Expenditures 214,969$ 281,900$ 225,000$ (56,900)$ (20.2%)
Travel & Memberships 7,000$ 3.1%
Equipment 8,000$ 3.6%
Fees 4,000 1.8%
Services 26,000 11.6%
Bad Debt Expense 3,000 1.3%
Overhead Allocation 177,000 78.6%
Total Expenditures 225,000$ 100.0%
Administrative Expenditures - Sewer
Budget to Budget
Variance
FY 2021 Administrative Expenditures - Sewer
36
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Materials and Maintenance
Fleet Parts and Equipment 8,444$ 8,000$ 8,000$ -$ -
Infrastructure Equipment & Supplies 118,046 132,900 122,000 (10,900) (8.2%)
Chemicals 4,059 27,400 24,000 (3,400) (12.4%)
Safety Equipment - 7,000 - (7,000) (100.0%)
Laboratory Equipment and Supplies 6,640 5,600 8,000 2,400 42.9%
Other Materials and Supplies 178 100 1,000 900 900.0%
Contracted Services 75,317 158,800 84,000 (74,800) (47.1%)
Subtotal Materials and Maintenance 212,684 339,800 247,000 (92,800) (27.3%)
Sewer Charges
Metro O&M Costs 782,379 600,900 663,000 62,100 10.3%
Spring Valley Sewer Charge 276,557 251,100 205,000 (46,100) (18.4%)
Subtotal Sewer Charges 1,058,936 852,000 868,000 16,000 1.9%
Total Expenditures 1,271,620$ 1,191,800$ 1,115,000$ (76,800)$ (6.4%)
Fleet Parts and Equipment 8,000$ 0.7%
Infrastructure Equipment & Supplies 122,000 10.9%
Chemicals 24,000 2.2%
Laboratory Equipment & Supplies (1)9,000 0.8%
Contracted Services 84,000 7.5%
Metro O&M Costs 663,000 59.5%
Spring Valley Sewer Charge 205,000 18.4%
Total Expenditures 1,115,000$ 100.0%
Includes Other Materials & Supplies.
Materials and Maintenance Expenditures - Sewer
Budget to Budget
Variance
FY 2021 Materials and Maintenance Expenditures - Sewer
(1)
37
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38
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Fee Revenues
Capacity Fee Revenues 1,898,333$ 1,868,900$ 1,920,000$ 51,100$ 2.7%
Subtotal Fee Revenues 1,898,333 1,868,900 1,920,000 51,100 2.7%
Tax Revenues
1% General Tax 3,950,206 3,901,400 3,490,000 (411,400) -10.5%
Availability Fees 723,247 714,500 665,000 (49,500) -6.9%
Subtotal Tax Revenues 4,673,453 4,615,900 4,155,000 (460,900) -10.0%
General Revenue 6,571,786$ 6,484,800$ 6,075,000$ (409,800)$ -6.3%
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Property Rental 1,384,211$ 1,487,900$ 1,554,000$ 66,100$ 4.4%
Sewer Billing Fees 409,765 422,900 438,000 15,100 3.6%
Set-up Fee for Lease Site 13,500 - - - 0.0%
Revenue from Shared Facility 27,500 28,300 30,000 1,700 6.0%
Miscellaneous 804,880 126,800 155,000 28,200 22.2%
Non-Operating Revenue 2,639,856$ 2,065,900$ 2,177,000$ 111,100$ 5.4%
Potable Recycled Sewer Total
Capacity Fee Revenues 1,920,000$ -$ -$ 1,920,000$
1% General Tax 3,490,000 -- 3,490,000
Availability Fees 616,000 -49,000 665,000
Property Rental 1,554,000 -- 1,554,000
Sewer Billing Fees 438,000 -- 438,000
Grants - - 38,000 38,000
Revenue from Shared Facility - - 30,000 30,000
Miscellaneous 117,000 -- 117,000
Total General and Non-Operating Revenue 8,135,000$ -$ 117,000$ 8,252,000$
(1)For General and Non-Operating Revenues, the Potable Fund serves as the District's General Fund
for accounting purposes.
FY 2021
General Revenues
General Revenues(1)
Budget to Budget
Variance
Non-Operating Revenues(1)
Budget to Budget
Variance
General and Non-Operating Revenues by Business(1)
39
FY 2019 FY 2020 FY 2021
Actual Budget Budget $ %
General Expense
Total labor and benefits (1)1,160,104$ 1,046,300$ 1,042,000$ (4,300)$ (0.4%)
Administrative Expenditures
Insurance expenses 773,943 975,700 1,250,000 274,300 28.1%
Legal expenses (2)573,598$ 620,000$ 707,000 87,000 14.0%
Total General Expense 2,507,645$ 2,642,000$ 2,999,000$ 357,000$ 13.5%
General Expense
Budget to Budget
Variance
(1)Benefits include District-wide labor and benefit costs not attributable to any one department,such
as the effect of cost of living raises on accrued leave liabilities or the Other Post Employment Benefit
(OPEB)costs.These costs are netted against the District's anticipated Vacancy Factor.The Vacancy
Factor for FY 2020 and FY 2021 is $202,600 and $209,700,respectively.Additionally,the labor and
benefits shown on this schedule are those related to operating costs and does not include CIP labor
and benefit costs.
(2)Included in the Legal Expenses for FY 2020 and FY 2021 is $175,000 and $175,000,respectively,for
the City of San Diego Recycled Water Rate Lawsuit.
40
Board of Directors 186,000$ 0.6%
General Manager 1,657,000 4.9%
General Expense 2,999,000 8.9%
Administrative Services 6,927,000 20.5%
Finance 6,256,000 18.5%
Water Operations 11,934,000 35.3%
Engineering 3,827,000 11.3%
33,786,000$ 100.0%
Departmental Operating Budget
Total FY 2021 Departmental Operating Budget
$33,786,000
41
Est. FY 06 Bud
FY 2019 FY 2021
Actual Projected Budget Budget $%
Labor Costs 12,041,669$ 12,413,439$ 12,866,000$ 13,160,000$ 294,000$ 2.3%
Benefits
Pension 4,865,042 2,430,249 2,499,100 2,855,000 355,900 14.2%
Employee Assistance Program 3,726 4,499 4,000 4,000 - 0.0%
Workers' Compensation 405,168 606,110 602,900 428,000 (174,900) -29.0%
Health/Dental/Life Insurance/OPEB 3,664,269 3,813,380 3,930,500 4,069,000 138,500 3.5%
Social Security/Medicare 1,003,750 1,035,579 1,090,900 1,119,000 28,100 2.6%
Salary Continuation Insurance 56,483 60,149 60,100 58,000 (2,100) -3.5%
State Unemployment Insurance - - 20,000 20,000 - 0.0%
Vacation/Sick/Holiday/Other Leave 2,398,576 2,608,788 2,541,400 2,606,000 64,600 2.5%
Total Benefits 12,397,014 10,558,754 10,748,900 11,159,000 410,100 3.8%
Total Labor and Benefits 24,438,683 22,972,193 23,614,900 24,319,000 704,100 3.0%
Less: Non-Operating Labor and Benefits
Labor Costs 992,363 939,084 1,070,400 1,061,000 (9,400) -0.9%
Benefits Allocation 744,391 534,922 609,400 628,000 18,600 3.1%
Total Non-Operating Labor and Benefits 1,736,754 1,474,006 1,679,800 1,689,000 9,200 0.5%
Operating Labor & Benefits 22,701,929 21,498,187 21,935,100 22,630,000 694,900 3.2%
Total Overhead Allocation 1,141,217 1,079,946 1,231,100 1,220,000 (11,100) -0.9%
Less: Overhead Allocation Personnel Portion 720,678 681,986 777,400 770,000 (7,400) -1.0%
Admin Portion of Overhead (36.85%)420,539 397,960 453,700 450,000 (3,700) -0.8%
Net Operating Labor and Benefits 21,981,251$ 20,816,201$ 21,157,700$ 21,860,000$ 702,300$ 3.3%
Labor and Benefits
FY 2020
Budget to Budget
Variance
137
138
139
0 40 80 120
Full - Time Equivalent (FTE)
FY 2021
FY 2020
FY 2019
Budget Actual
42
Potable Recycled Sewer
Developer
Reimbursed-
CIP Total
Operating Labor Costs 11,120,000$ 562,000$ 417,000$ -$ 12,099,000$
Benefits 9,820,000 397,000 314,000 - 10,531,000
Overhead Allocation-Personnel (1,481,000) 408,000 303,000 - (770,000)
Total Operating Labor and Benefits 19,459,000$ 1,367,000$ 1,034,000$ -$ 21,860,000$
CIP Labor Costs 552,000 40,000 78,000 391,000 1,061,000
Benefits 326,000 24,000 43,000 235,000 628,000
Overhead Allocation-Personnel 400,000 29,000 57,000 284,000 770,000
Total CIP Labor and Benefits 1,278,000$ 93,000$ 178,000$ 910,000$ 2,459,000$
Total Labor and Benefits 20,737,000$ 1,460,000$ 1,212,000$ 910,000$ 24,319,000$
Potable-Operating 19,459,000$ 80.0%
Potable-CIP 1,278,000 5.3%
Sewer-Operating 1,034,000 4.3%
Sewer-CIP 178,000 0.7%
Recycle-Operating 1,367,000 5.6%
Recycle-CIP 93,000 0.4%
Develeper Reimbursed-CIP 910,000 3.7%
24,319,000$ 100.0%
Labor and Benefits by Fund - Fiscal Year 2021
43
FY 2020
General Manager
General Manager 1 1 1
District Secretary 1 1 1
Sr. Confidential Executive Assistant 1 1 1
Communications Officer 1 1 1
Communications Assistant 1 1 1
Total FTE - General Manager Department 5 5 5
Administrative Services
Chief, Administrative Services 1 1 1
Confidential Executive Assistant 1 1 1
Confidential Department Assistant 1 1 1
Administrative Services 3 3 3
Human Resources
Human Resources Manager 1 1 1
Senior Human Resources Analyst 1 1 1
Human Resources Analyst 1 1 1
Human Resources 3 3 3
Purchasing
Purchasing and Facilities Manager 1 1 1
Senior Procurement & Contracting Analyst 1 1 1
Senior Warehouse Worker 1 1 1
Facilities Maintenance Technician 2 2 2
Purchasing 5 5 5
Safety
Safety & Security Specialist 1 1 1
Safety 1 1 1
Information Technology Operations/Applications
IT Manager 1 1 1
GIS Manager 1 1 1
GIS Programmer Analyst 1 1 1
GIS Analyst 1 1 1
GIS Technician 1 1 1
Network Engineer 1 1 1
Database Administrator 1 1 1
Business Systems Technician 1 1 1
System Support Analyst 1 1 1
Business Systems Analyst I and II 2 2 2
Information Technology 11 11 11
Total FTE - Administrative Services Department 23 23 23
Position Count by Department
FY 2019 FY 2021
44
FY 2020
Finance
Chief Financial Officer 1 1 1
Assistant Chief, Finance 1 1 1
Executive Assistant 1 1 1
Department Assistant 1 1 1
Finance 4 4 4
Controller and Budgetary Services
Senior Accountant 2 2 2
Accountant 1 1 1
Accounting Technician 1 1 1
Controller and Budgetary Services 4 4 4
Treasury and Accounting Services
Finance Manager, Treasury and Accounting 1 1 1
Senior Accountant 2 2 2
Accountant 1 1 1
Accounting Technician 1 1 1
Treasury and Accounting Services 5 5 5
Customer Service
Customer Service Manager 1 1 1
Customer Service Supervisor 1 1 1
Lead Customer Service Representative 1 1 1
Customer Service Representative I, II, III 6 6 6
Customer Service 9 9 9
Meter Services
Meter Services Supervisor 1 1 1
Lead Meter Maintenance/Cross Connection Worker 0 1 1
Meter Maintenance Worker I & II 4 3 3
Lead Customer Service Field Representative 1 1 1
Customer Service Field Representative I and II 3 3 3
Meter Services 9 9 9
Total FTE - Finance Department 31 31 31
Operations
Chief, Water Operations 1 1 1
Assistant Chief, Water Operations 1 1 0
Executive Assistant 1 1 1
Operations 3 3 2
Water System Operations
System Operations Manager 1 1 1
Water Systems Supervisor 1 1 1
Lead Water Systems Operator 2 2 2
Position Count by Department
FY 2019 FY 2021
45
FY 2020
Operations (continued)
Water System Operations (continued)
Water Systems Operator I, II, and III 8 8 8
Senior SCADA Instrumentation Technician 2 2 2
SCADA Instrumentation Technician 0 1 1
Senior Disinfection Technician 2 1 1
Disinfection Technician 0 1 1
Water System Operations 16 17 17
Utility Maintenance/Construction
Utility Services Manager 0 0 1
Utility Maintenance Supervisor 2 1 1
Utility Maintenance Assistant Supervisor 0 1 1
Utility Crew Leader 3 3 3
Utility Workers I and II 8 9 9
Senior Utility/Equipment Operator 3 3 4
Valve Maintenance Worker 2 1 1
Pump Electrical Supervisor 1 1 1
Electrician I and II 2 2 2
Pump Mechanic I and II 2 2 2
Fleet Maintenance Supervisor 1 1 1
Equipment Mechanic I and II 3 3 3
Utility Maintenance/Construction 27 27 29
Collection/Treatment/Reclamation Operations
Reclamation Plant Supervisor 1 1 1
Lead Reclamation Plant Operator 1 1 1
Reclamation Plant Operator I, II, III 2 2 2
Laboratory Analyst 2 2 2
Collection/Treatment/Reclamation Operations 6 6 6
Total FTE - Operations Department 52 53 54
Engineering
Chief, Engineering 1 1 1
Assistant Chief of Engineering 0 1 0
Executive Assistant 1 1 1
Department Assistant 1 1 1
Engineering 3 4 3
Water Resources, Planning, Design & Environmental
Engineering Manager 1 1 1
Senior Civil Engineer 2 3 3
Associate Civil Engineer 1 0 0
Environmental Compliance Specialist 1 1 1
Senior Engineering Technician 2 2 1
Engineering Design Technician 0 0 1
Water Resources, Planning, Design & Environmental 7 7 7
Position Count by Department
FY 2019 FY 2021
46
FY 2020
Engineering (continued)
Public Services, Survey, Inspection, & Recycled Water Program
Engineering Manager 1 0 1
Field Services Manager 1 1 1
Permit Technicians 2 2 2
Recycled Water Program Supervisor 1 1 1
Recycled Water Specialist 3 3 3
Inspection Supervisor 1 1 1
Construction Inspectors I and II 4 4 4
Supervising Land Surveyor 1 1 1
Assistant Survey Technician 2 0 0
Senior Utility Locator 0 1 1
Utility Locator 0 1 1
Public Services, Survey, Inspection, & Recycled Water
Program 16 15 16
Total FTE - Engineering Department 26 26 26
District Total FTE Position Count 137 138 139
Position Count by Department
FY 2019 FY 2021
47
FY 2020
Reclamation Plant Supervisor 0 0 0.5
Human Resources Analyst 0 0 0.5
Total Contract/Temporary Employees 0 0.5 1.0
General Manager 5 4%
Administrative Services 23 17%
Finance 31 22%
Operations 54 39%
Engineering 26 19%
Total 139 100%
FY 2021
Contract / Temporary Employees
FY 2019
FY 2021 Position Count by Department
48
FY 2019 FY 2020 FY 2021 Budget to
Budget
Actual Budget Budget Variance
Departmental Expenditures
B Board of Directors 151,815$ 190,000$ 186,000$ (4,000)$
G General Manager 1,499,791 1,674,900 1,657,000 (17,900)
G General Expense 2,507,645 2,642,000 2,999,000 357,000
A Administrative Services 6,788,108 6,737,000 6,927,000 190,000
F Finance 5,956,965 5,754,100 6,256,000 501,900
W Water Operations 11,606,626 11,857,500 11,933,000 75,500
EEngineering 3,817,092 3,701,200 3,827,000 125,800
T Total Departmental Expenditures 32,328,042 32,556,700 33,785,000 1,228,300
Less: Overhead Allocation (1,141,217) (1,231,100) (1,219,000) 12,100
Net Departmental Expenditures 31,186,825 31,325,600 32,566,000 1,240,400
Non-Departmental Expenditures & Reserve Funding
Water Purchases 51,536,077 53,815,200 50,898,000 (2,917,200)
Power 2,877,016 3,184,700 2,898,000 (286,700)
Subtotal Non-Departmental Expenditures 54,413,093 56,999,900 53,796,000 (3,203,900)
General Fund Reserve - 954,400 264,000 (690,400)
Expansion Reserve 2,758,100 4,927,300 290,000 (4,637,300)
Betterment Reserve - 3,048,000 1,450,000 (1,598,000)
Replacement Reserve 12,778,600 7,513,000 7,969,000 456,000
OPEB Reserve 980,800 1,038,100 1,134,000 95,900
New Supply Reserve 75,000 - - -
Subtotal Reserve Funding 16,592,500 17,480,800 11,107,000 (6,373,800)
Total Operating Expenditures 102,192,418$ 105,806,300$ 97,469,000$ (8,337,300)$
Operating Expenditures by Department
49
FY 2019 FY 2020 FY 2021 Budget to
Budget
Actual Budget Budget Variance
Departmental Expenditures
Labor and Benefits 22,701,929$ 21,935,100$ 22,630,000$ 694,900$
Director's Fees 55,925 80,000 80,000 -
Travel and Memberships 220,516 262,600 205,000 (57,600)
Conservation and Outreach 157,644 171,400 164,000 (7,400)
General Office Expense 232,817 270,900 250,000 (20,900)
Equipment 1,387,829 1,377,400 1,441,000 63,600
Fees 2,041,843 2,294,200 2,766,000 471,800
Services 1,821,714 2,033,100 1,883,000 (150,100)
Training 109,005 173,100 143,000 (30,100)
Materials & Maintenance 2,413,226 2,982,100 2,851,000 (131,100)
Utilities 13,894 15,800 16,000 200
Sewer Charges 1,058,936 852,000 868,000 16,000
Bad Debt Expense 112,764 109,000 488,000 379,000
Total Departmental Expenditures 32,328,042 32,556,700 33,785,000 1,228,300
Less: Overhead Allocation (1,141,217) (1,231,100) (1,219,000) 12,100
Net Departmental Expenditures 31,186,825 31,325,600 32,566,000 1,240,400
Non-Departmental Expenditures & Reserve Funding
Water Purchases 51,536,077 53,815,200 50,898,000 (2,917,200)
Power 2,877,016 3,184,700 2,898,000 (286,700)
Subtotal Non-Departmental Expenditures 54,413,093 56,999,900 53,796,000 (3,203,900)
General Fund Reserve - 954,400 264,000 (690,400)
Expansion Reserve 2,758,100 4,927,300 290,000 (4,637,300)
Betterment Reserve - 3,048,000 1,450,000 (1,598,000)
Replacement Reserve 12,778,600 7,513,000 7,969,000 456,000
OPEB Reserve 980,800 1,038,100 1,134,000 95,900
New Supply Reserve 75,000 - - -
Subtotal Reserve Funding 16,592,500 17,480,800 11,107,000 (6,373,800)
Total Operating Expenditures 102,192,418$ 105,806,300$ 97,469,000$ (8,337,300)$
Operating Expenditures by Object
50
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Administrative Expenditures
Directors' Fees 55,925$ 80,000$ 80,000$ -$ -
Travel and Memberships 220,516 262,600 205,000 (57,600) (21.9%)
Conservation and Outreach 157,644 171,400 164,000 (7,400) (4.3%)
General Office Expense 232,821 270,900 250,000 (20,900) (7.7%)
Equipment 1,387,826 1,377,400 1,441,000 63,600 4.6%
Fees 694,302 698,500 809,000 110,500 15.8%
Services 1,821,714 2,033,100 1,883,000 (150,100) (7.4%)
Training 109,005 173,100 143,000 (30,100) (17.4%)
Utilities 13,894 15,800 16,000 200 1.3%
Insurance and Legal 1,347,541 1,595,700 1,957,000 361,300 22.6%
Bad Debt Expense 112,632 109,000 488,000 379,000 347.7%
Subtotal before Overhead 6,153,820 6,787,500 7,436,000 648,500 9.6%
Less: Overhead Allocation (420,539) (453,700) (450,000) 3,700 (0.8%)
Total Expenditures 5,733,281$ 6,333,800$ 6,986,000$ 652,200$ 10.3%
4,702,612$ 5,605,400$ 9,393,000$
Directors' Fees 80,000$ 1.0%
Travel and Memberships 205,000 2.8%
Conservation & Outreach 164,000 2.2%
General Office Expense 250,000 3.4%
Equipment 1,441,000 19.4%
Fees 809,000 10.9%
Services 1,883,000 25.3%
Training 143,000 1.9%
Utilities 16,000 0.2%
General Expense 1,957,000 26.3%
Bad Debt Expense (1)488,000 6.6%
7,436,000 100.0%
(450,000)
6,986,000$
(1)Includes Miscellaneous Expense
Administrative Expenditures - Total
Budget to Budget
Variance
FY 2021 Total Administrative Expenditures, in thousands ($)
51
FY 2019 FY 2020 FY 2021
Actual Budget Budget $%
Materials and Maintenance
Fuel and Oil 197,259$ 221,000$ 213,000$ (8,000)$ (3.6%)
Meters and Materials 245,774 258,500 144,000 (114,500) (44.3%)
Fleet Parts and Equipment 131,969 143,300 138,000 (5,300) (3.7%)
Infrastructure Equipment & Supplies 583,465 630,500 575,000 (55,500) (8.8%)
Chemicals 207,167 367,800 380,000 12,200 3.3%
Safety Equipment 54,916 90,500 69,000 (21,500) (23.8%)
Laboratory Equipment and Supplies 51,286 55,700 56,000 300 0.5%
Other Materials and Supplies 250,878 205,200 287,000 81,800 39.9%
Building and Grounds Materials 66,428 68,000 61,000 (7,000) (10.3%)
Contracted Services 624,084 941,600 929,000 (12,600) (1.3%)
Subtotal Materials and Maintenance 2,413,226 2,982,100 2,852,000 (130,100) (4.4%)
Sewer Charges
Metro O&M Costs 782,379 600,900 663,000 62,100 10.3%
Spring Valley Sewer Charge 276,557 251,100 205,000 (46,100) (18.4%)
Subtotal Sewer Charges 1,058,936 852,000 868,000 16,000 1.9%
Total Expenditures 3,472,162$ 3,834,100$ 3,720,000$ (114,100)$ (3.0%)
Fuel and Oil 213,000$ 5.7%
Meters and Materials 144,000 3.9%
Fleet Parts and Equipment 138,000 3.7%
Infrastructure Equipment and Supplies 575,000 15.5%
Chemicals 380,000 10.2%
Safety Equipment 69,000 1.8%
Laboratory Equipment and Supplies 56,000 1.5%
Other Materials and Supplies 287,000 7.7%
Building and Grounds Materials 61,000 1.6%
Contracted Services 929,000 25.0%
Sewer Charges 868,000 23.4%
Total Expenditures 3,720,000$ 100.0%
Materials and Maintenance Expenditures - Total
Budget to Budget
Variance
FY 2021 Materials and Maintenance Expenditures
52
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 74,612 $ 82,300 $ 81,000 ($ 1,300)
Administrative Expenses
Mileage 7,153 11,700 6,000 (5,700)
Travel 5,331 6,500 8,000 1,500
Conferences and Seminars 5,695 6,000 8,000 2,000
Business Meetings 3,099 3,500 3,000 (500)
Director's Fees 55,925 80,000 80,000 -
Total Administrative Expenses 77,203 107,700 105,000 (2,700)
Total Expenses $ 151,815 $ 190,000 $ 186,000 ($ 4,000)
FY 2020
OTAY WATER DISTRICT
DIVISION 1111 - BOARD OF DIRECTORS
FISCAL YEAR 2021 BUDGET
53
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 1,160,104 $ 1,046,300 $ 1,042,000 $ (4,300)
Administrative Expenses
Insurance 773,943 975,700 1,250,000 274,300
Legal Expenses 573,598 620,000 707,000 87,000
Total Admin Expenses 1,347,541 1,595,700 1,957,000 361,300
Total Expenses $ 2,507,645 $ 2,642,000 $ 2,999,000 $ 357,000
FY 2020
OTAY WATER DISTRICT
DIVISION 1311 - GENERAL EXPENSE (INCLUDES LEGAL)
FISCAL YEAR 2021 BUDGET
54
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 1,074,739 $ 986,900 $ 998,000 $ 11,000
Administrative Expenses
Mileage 3,818 3,700 3,000 (700)
Travel 1,602 5,000 4,000 (1,000)
Conferences and Seminars 4,265 5,000 4,000 (1,000)
Business Meetings 10,644 15,700 16,000 300
Memberships and Dues 56,515 62,700 66,000 3,300
Public Recognition and Awards 29,384 28,500 29,000 500
Books, Periodicals and Subscriptions 1,553 1,700 2,000 300
Office Supplies 3,988 7,000 3,000 (4,000)
Agency Fees 59,577 82,000 109,000 27,000
Outside Services 116,529 195,600 158,000 (37,600)
General Training 916 1,500 3,000 1,500
Total Administrative Expenses 290,321 412,000 397,000 (15,000)
Materials and Maintenance Expenses
Contracted Services - 100,000 100,000 -
Total Materials and Maintenance Expenses - 100,000 100,000 -
Total Expenses $ 1,365,060 $ 1,498,900 $ 1,495,000 $ (4,000)
FY 2020
OTAY WATER DISTRICT
DIVISION 1211 - GENERAL MANAGER
FISCAL YEAR 2021 BUDGET
55
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Administrative Expenses
Travel - 800 - (800)
Conferences and Seminars - 800 - (800)
Business Meetings - 100 - (100)
Memberships and Dues 2,445.00 3,200 4,000 800
Incentives 9,747 12,200 8,000 (4,200)
Public Recognition and Awards 473 12,100 10,000 (2,100)
Conservation Garden 118,040 118,600 117,000 (1,600)
Books, Periodicals and Subscriptions - 200 - (200)
Outside Services 4,026 28,000 23,000 (5,000)
Total Administrative Expenses 134,731 176,000 162,000 (14,000)
Total Expenses $ 134,731 $ 176,000 $ 162,000 $ (14,000)
FY 2020
OTAY WATER DISTRICT
DIVISION 2343 - WATER CONSERVATION
FISCAL YEAR 2021 BUDGET
56
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor and Benefits
Total Labor and Benefits $ 596,224 $ 548,900 $ 444,000 $ (104,900)
Administrative Expenses
Mileage 172 200 - (200)
Travel 2,256 1,600 - (1,600)
Conferences and Seminars 2,096 3,500 1,000 (2,500)
Business Meetings 196 300 - (300)
Memberships and Dues 255 800 1,000 200
Books, Periodicals and Subscriptions 527 400 - (400)
General Training 434 1,000 - (1,000)
Total Administrative Expenses 5,936 7,800 2,000 (5,800)
Total Expenses $ 602,160 $ 556,700 $ 446,000 $ (110,700)
FY 2020
OTAY WATER DISTRICT
DIVISION 2211 - ADMINISTRATIVE SERVICES CHIEF
FISCAL YEAR 2021 BUDGET
57
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 659,598 $ 601,500 $ 752,000 $ 150,900
Administrative Expenses
Mileage 120 200 - (200)
Travel 3,894 4,800 5,000 200
Conferences and Seminars 2,764 5,000 5,000 -
Business Meetings 2,537 2,000 2,000 -
Memberships and Dues 1,213 800 1,000 200
Books, Periodicals and Subscriptions 173 1,200 1,000 (200)
Outside Services 31,354 40,000 33,000 (7,000)
Temporary Employment Services - - 20,000 20,000
Recruitment Expense 18,900 10,000 18,000 8,000
Tuition Reimbursement 3,224 10,000 10,000 -
General Training 30,948 43,500 35,000 (8,500)
Employee Programs 27,688 29,000 7,000 (22,000)
Total Administrative Expenses 122,815 146,500 137,000 (9,500)
Total Expenses $ 782,413 $ 748,000 $ 889,000 $ 141,400
FY 2020
OTAY WATER DISTRICT
DIVISION 2221 - HUMAN RESOURCES
FISCAL YEAR 2021 BUDGET
58
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 769,606 $ 747,600 $ 773,000 $ 25,100
Administrative Expenses
Travel - 1,200 - (1,200)
Conferences and Seminars 149 700 - (700)
Business Meetings 40 300 - (300)
Memberships and Dues 1,170 1,100 1,000 (100)
Office Supplies 33,763 39,300 39,000 (300)
Postage and Delivery Charges 27,363 32,000 32,000 -
Printing 18,684 18,300 18,000 (300)
Maintenance and Parts 19,612 22,800 23,000 200
Rents and Leases - 1,200 1,000 (200)
Office Furniture & Equipmt (Non-Capital)17,994 8,000 6,000 (2,000)
Small Tools & Equipment 19,972 2,500 3,000 500
Outside Services 111,563 139,100 138,000 (1,100)
Uniforms 56,546 40,000 30,000 (10,000)
General Training 1,489 3,000 2,000 (1,000)
Sewer 5,356 5,400 6,000 600
Trash Services 8,538 10,400 10,000 (400)
Total Administrative Expenses 322,239 325,300 309,000 (16,300)
Materials and Maintenance Expenses
Infrastructure Equipment & Materials - - - -
Building and Grounds Materials 64,128 67,500 60,000 (7,500)
Contracted Services 326,404 421,700 493,000 71,300
Total Materials and Maint Expenses 390,532 489,200 553,000 63,800
Total Expenses $ 1,482,377 $ 1,562,100 $ 1,635,000 $ 72,600
FY 2020
OTAY WATER DISTRICT
DIVISION 2231 - PURCHASING & FACILITIES
FISCAL YEAR 2021 BUDGET
59
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 194,663 $ 186,100 $ 193,000 $ 6,900
Administrative Expenses
Mileage 161 200 - (200)
Travel - 200 - (200)
Conferences and Seminars 272 300 - (300)
Business Meetings 212 600 1,000 400
Memberships and Dues 375 800 1,000 200
Books, Periodicals and Subscriptions 547 500 - (500)
Outside Services 25,815 78,000 53,000 (25,000)
Security Services 29,929 36,000 36,000 -
Health Exams 16,726 21,000 25,000 4,000
Required Training 22,994 47,500 58,000 10,500
Total Administrative Expenses 97,031 185,100 174,000 (11,100)
Materials and Maintenance Expenses
Safety Equipment 51,876 76,500 69,000 (7,500)
Building and Grounds Materials 125 - - -
Total Materials and Maint Expenses 52,001 76,500 69,000 (7,500)
Total Expenses $ 343,695 $ 447,700 $ 436,000 $ (11,700)
FY 2020
OTAY WATER DISTRICT
DIVISION 2241 - SAFETY & SECURITY
FISCAL YEAR 2021 BUDGET
60
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 1,427,911 $ 1,327,200 $ 1,373,000 $ 46,200
Administrative Expenses
Mileage 548 300 - (300)
Travel 6,640 8,000 - (8,000)
Conferences and Seminars 14,192 10,500 - (10,500)
Business Meetings 283 200 - (200)
Memberships and Dues 775 400 - (400)
Communication 388,799 356,200 416,000 59,800
Technology Hardware and Software 691,174 642,900 633,000 (9,900)
Outside Services 64,530 63,000 47,000 (16,000)
Total Administrative Expenses 1,166,941 1,081,500 1,096,000 14,500
Total Expenses $ 2,594,852 $ 2,408,700 $ 2,469,000 $ 60,700
FY 2020
OTAY WATER DISTRICT
DIVISION 2421 - IT OPERATIONS
FISCAL YEAR 2021 BUDGET
61
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 749,133 $ 711,700 $ 753,000 $ 41,200
Administrative Expenses
Mileage 455 500 - (500)
Travel 7,050 3,500 2,000 (1,500)
Conferences and Seminars 3,572 5,500 1,000 (4,500)
Business Meetings 339 300 - (300)
Memberships and Dues 360 500 1,000 500
Books, Periodicals and Subscriptions - 800 1,000 200.00
Technology Hardware and Software 202,810 247,000 257,000 10,000
Outside Services 16,215 31,000 31,000 -
General Training 2,677 13,000 6,000 (7,000)
Total Administrative Expenses 233,478 302,100 299,000 (3,100)
Total Expenses $ 982,611 $ 1,013,800 $ 1,052,000 $ 38,100
FY 2020
DIVISION 2431 - GEOGRAPHIC INFORMATION SYSTEM
FISCAL YEAR 2021 BUDGET
OTAY WATER DISTRICT
62
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 781,068 $ 799,400 $ 550,000 $ (249,400)
Administrative Expenses
Travel 509 100 - (100)
Conferences and Seminars 1,514 1,700 1,000 (700)
Memberships and Dues 3,048 2,800 3,000 200
Outside Services 12,870 13,100 13,000 (100)
Total Administrative Expenses 18,199 18,300 17,000 (1,300)
Total Expenses $ 799,267 $ 817,700 $ 567,000 $ (250,700)
FY 2020
OTAY WATER DISTRICT
DIVISION 2311 - FINANCE CHIEF
FISCAL YEAR 2021 BUDGET
63
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 686,038 $ 614,435 $ 880,000 $ 265,565
Administrative Expenses
Conferences and Seminars 262 1,500 1,000 (500)
Memberships and Dues 1,353 1,500 2,000 500
Office Supplies 1,896 1,100 1,000 (100)
Small Tools & Equipment 1,450 - - -
Outside Services 7,852 34,900 15,000 (19,900)
Total Administrative Expenses 12,866 39,300 19,000 (20,300)
Total Expenses $ 698,904 $ 653,735 $ 899,000 $ 245,265
FY 2020
OTAY WATER DISTRICT
DIVISION 2321 - CONTROLLER & BUDGETARY SERVICES
FISCAL YEAR 2021 BUDGET
64
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor and Benefits
Total Labor and Benefits $ 932,066 $ 802,065 $ 882,000 $ 80,035
Administrative Expenses
Conferences and Seminars 460 700 - (700)
Memberships and Dues 576 1,000 1,000 -
Accounting Fees 29,263 29,500 36,000 6,500
Bank Fees 432,424 401,800 456,000 54,200
Outside Services 10,000 27,500 10,000 (17,500)
Total Administrative Expenses 473,017 461,200 503,000 41,800
Total Expenses $ 1,405,083 $ 1,263,265 $ 1,385,000 $ 121,835
FY 2020
OTAY WATER DISTRICT
DIVISION 2331 - TREASURY & ACCOUNTING SERVICES
FISCAL YEAR 2021 BUDGET
65
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 1,768,122 $ 1,655,600 $ 1,746,000 $ 90,300
Administrative Expenses
Travel 1,248 3,100 - (3,100)
Conferences and Seminars 1,099 1,800 - (1,800)
Postage and Delivery Charges 142,916 165,800 152,000 (13,800)
Outside Services 79,179 91,900 109,000 17,100
General Training - 500 1,000 500
Bad Debt 112,632 109,000 488,000 379,000
Total Administrative Expenses 337,373 372,400 750,000 377,600
Total Expenses $ 2,105,495 $ 2,028,000 $ 2,496,000 $ 467,900
Less: Bad Debt (112,632) (109,000) (488,000) (379,000)
Expenses, net of Bad Debt $ 1,992,863 $ 1,919,000 $ 2,008,000 $ 88,900
FY 2020
OTAY WATER DISTRICT
DIVISION 2341 - CUSTOMER SERVICE
FISCAL YEAR 2021 BUDGET
66
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 652,795 $ 668,200 $ 699,000 $ 30,700
Administrative Expenses
Travel 17 1,500 - (1,500)
Conferences and Seminars - 1,300 - (1,300)
Small Tools & Equipment - 2,500 3,000 500
Certifications and Licenses 700 800 - (800)
Total Administrative Expenses 820 6,200 3,000 (3,200)
Materials & Maintenance Expenses
Meters and Materials 239,811 250,500 135,000 (115,500)
Infrastructure Equipment & Materials 2,842 10,000 15,000 5,000
Other Mtrls and Supplies (Inventory) 49,957 51,500 52,000 500
Contracted Services 1,859 5,000 5,000 -
Total Materials and Maint Expenses 294,469 317,000 207,000 (110,000)
Total Expenses $ 948,084 $ 991,400 $ 909,000 $ (82,500)
FY 2020
OTAY WATER DISTRICT
DIVISION 2342 - METER SHOP
FISCAL YEAR 2021 BUDGET
67
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 468,917 $ 437,300 $ 474,000 $ 36,200
Administrative Expenses
Mileage 467 400 - (400)
Travel 6,866 5,500 6,000 500
Conferences and Seminars 3,951 5,500 8,000 2,500
Business Meetings 150 200 - (200)
Memberships and Dues 4,000 5,000 5,000 -
Books, Periodicals and Subscriptions 99 300 - (300)
Outside Services 5,687 7,000 6,000 (1,000)
General Training 4,633 7,900 9,000 1,100
Certifications and Licenses 3,556 3,000 3,000 -
Total Administrative Expenses 29,409 34,800 37,000 2,200
Total Expenses $ 498,326 $ 472,100 $ 511,000 $ 38,400
FY 2020
OTAY WATER DISTRICT
DIVISION 3211 - WATER OPERATIONS CHIEF
FISCAL YEAR 2021 BUDGET
68
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 253,857 $ 245,100 $ 260,000 $ 14,900
Administrative Expenses
Rents and Leases 29,768 31,700 33,000 1,300
Agency Fees 108,431 114,200 132,000 17,800
Total Administrative Expenses 138,199 145,900 165,000 19,100
Total Expenses $ 392,056 $ 391,000 $ 425,000 $ 34,000
FY 2020
OTAY WATER DISTRICT
DIVISION 3221 - WATER SYSTEM OPERATIONS
FISCAL YEAR 2021 BUDGET
69
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 2,119,479 $ 1,941,800 $ 1,997,000 $ 55,100
Administrative Expenses
Small Tools & Equipment - 3,000 3,000 -
Outside Services 242,348 345,000 244,000 (101,000)
Total Administrative Expenses 242,348 348,000 247,000 (101,000)
Materials and Maintenance Expenses
Infrastructure Equipment & Materials 98,218 107,800 111,000 3,200
Chemicals 178,455 295,900 309,000 13,100
Other Mtrls and Supplies (Inventory) 25.00 500 1,000 500
Contracted Services - 1,000 1,000 -
Total Materials and Maint Expenses 276,698 405,200 422,000 16,800
Total Expenses $ 2,638,525 $ 2,695,000 $ 2,666,000 $ (29,100)
OTAY WATER DISTRICT
DIVISION 3225 - WATER SYSTEM
FISCAL YEAR 2021 BUDGET
FY 2020
70
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 363,242 $ 438,500 $ 527,000 $ 88,800
Administrative Expenses
Small Tools & Equipment - 1,000 6,000 5,000
Outside Services 12,571 15,800 16,000 200
Total Administrative Expenses 12,571 16,800 22,000 5,200
Materials and Maintenance Expenses
Infrastructure Equipment & Materials 27,459 32,500 31,000 (1,500)
Other Mtrls and Supplies (Inventory) 7.00 200 - (200)
Total Materials and Maint Expenses 27,466 32,700 31,000 (1,700)
Total Expenses $ 403,279 $ 488,000 $ 580,000 $ 92,300
FY 2020
OTAY WATER DISTRICT
DIVISION 3227 - SCADA
FISCAL YEAR 2021 BUDGET
71
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 289,432 $ 301,800 $ 191,000 $ (110,400)
Total Expenses $ 289,432 $ 301,800 $ 191,000 $ (110,400)
FY 2020
OTAY WATER DISTRICT
DIVISION 3231 - UTILITY SERVICES
FISCAL YEAR 2021 BUDGET
72
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 2,304,793 $ 2,444,900 $ 2,598,000 $ 153,300
Administrative Expenses
Rents and Leases - 3,500 5,000 1,500
Temporary Employment Services - - 3,000 3,000
Total Administrative Expenses - 3,500 8,000 4,500
Materials and Maintenance Expenses
Meters and Materials 5,963 8,000 9,000 1,000
Infrastructure Equipment & Materials 193,898 193,000 169,000 (24,000)
Other Mtrls and Supplies (Inventory) 199,633 153,000 233,000 80,000
Contracted Services 199,630 235,000 237,000 2,000
Total Materials and Maint Expenses 599,124 589,000 648,000 59,000
Total Expenses $ 2,903,917 $ 3,037,400 $ 3,254,000 $ 216,800
FY 2020
OTAY WATER DISTRICT
DIVISION 3232 - UTILITY MAINTENANCE
FISCAL YEAR 2021 BUDGET
73
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 608,860 $ 594,100 $ 586,000 $ (7,700)
Administrative Expenses
Mileage 27,720 30,000 30,000 -
Communication 1,817 8,000 5,000 (3,000)
Technology Hardware and Software 3,255 2,600 6,000 3,400
Hazardous Waste Disposal 7,393 9,000 9,000 -
Outside Services 15,831 13,600 17,000 3,400
Total Administrative Expenses 56,016 63,200 67,000 3,800
Materials and Maintenance Expenses
Fuel and Oil 179,711 189,200 189,000 (200)
Fleet Parts and Equipment 131,969 143,300 138,000 (5,300)
Infrastructure Equipment & Materials 21,504 25,000 16,000 (9,000)
Building and Grounds Materials 291 - - -
Total Materials and Maint Expenses 333,475 357,500 343,000 (14,500)
Total Expenses $ 998,351 $ 1,014,800 $ 996,000 $ (18,400)
FY 2020
OTAY WATER DISTRICT
DIVISION 3233 - FLEET MAINTENANCE
FISCAL YEAR 2021 BUDGET
74
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 756,135 $ 693,100 $ 752,000 $ 58,500
Administrative Expenses
Rents and Leases 578.00 3,000 11,000 8,000
Small Tools & Equipment - 1,000 1,000 -
Outside Services 102,598 85,800 71,000 (14,800)
Total Administrative Expenses 103,176 89,800 83,000 (6,800)
Materials and Maintenance Expenses
Infrastructure Equipment & Materials 146,008 147,500 128,000 (19,500)
Other Mtrls and Supplies (Inventory) 1,256 - 1,000.00 1,000
Building and Grounds Materials 1,884 500 1,000 500
Total Materials and Maint Expenses 149,148 148,000 130,000 (18,000)
Total Expenses $ 1,008,459 $ 930,900 $ 965,000 $ 33,700
FY 2020
OTAY WATER DISTRICT
DIVISION 3236 - PUMP & ELECTRICAL
FISCAL YEAR 2021 BUDGET
75
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Materials & Maintenance Expenses
Sewer Charges
Metro O&M Costs 782,379 600,900 663,000 62,100
Spring Valley Sewer Charge 276,557 251,100 205,000 (46,100)
Total Materials and Maint Expenses 1,058,936 852,000 868,000 16,000
Total Expenses $ 1,058,936 $ 852,000 $ 868,000 $ 16,000
FY 2020
OTAY WATER DISTRICT
DIVISION 3241 - COLLECTION/TREATMENT/RECYCLE OPERATIONS
FISCAL YEAR 2021 BUDGET
76
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 330,049 $ 353,600 $ 292,000 $ (61,200)
Administrative Expenses
Outside Services 69,851 118,600 102,000 (16,600)
Total Administrative Expenses 69,851 118,600 102,000 (16,600)
Materials and Maintenance Expenses
Laboratory Equipment and Supplies 51,286 55,700 56,000 300
Total Materials and Maint Expenses 51,286 55,700 56,000 300
Total Expenses $ 451,186 $ 527,900 $ 450,000 $ (77,500)
FY 2020
OTAY WATER DISTRICT
DIVISION 3243 - LABORATORY
FISCAL YEAR 2021 BUDGET
77
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 716,062 $ 712,500 $ 722,000 $ 9,200
Administrative Expenses
Rents and Leases 9,070 18,400 5,000 (13,400)
Small Tools & Equipment - 4,400 1,000 (3,400)
Outside Services - -8,000.00 8,000
Total Administrative Expenses 9,070 22,800 14,000 (8,800)
Materials and Maintenance Expenses
Fuel and Oil 17,548 31,800 24,000 (7,800)
Infrastructure Equipment & Materials 93,536 114,700 105,000 (9,700)
Chemicals 28,712 71,900 71,000 (900)
Safety Equipment 3,040 14,000 - (14,000)
Contracted Services 96,191 178,900 93,000 (85,900)
Total Materials and Maint Expenses 239,027 411,300 293,000 (118,300)
Total Expenses $ 964,159 $ 1,146,600 $ 1,029,000 $ (117,900)
FY 2020
OTAY WATER DISTRICT
DIVISION 3244 - RECLAMATION PLANT
FISCAL YEAR 2021 BUDGET
78
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 698,917 $ 543,000 $ 552,000 $ 9,000
Administrative Expenses
Mileage 761 400 - (400)
Travel 5,082 5,000 - (5,000)
Conferences and Seminars 4,054 10,000 - (10,000)
Business Meetings 570 700 1,000 300
Memberships and Dues 3,720 3,000 3,000 -
Books, Periodicals and Subscriptions 727 800 1,000 200
Small Tools & Equipment - 14,500 23,000 8,500
Outside Services 17,243 4,000 - (4,000)
General Training 7,955 9,900 7,000 (2,900)
Certifications and Licenses 1,791 2,500 2,000 (500)
Total Administrative Expenses 41,903 50,800 37,000 (13,800)
Total Expenses $ 740,820 $ 593,800 $ 589,000 $ (4,800)
FY 2020
OTAY WATER DISTRICT
DIVISION 3311 - ENGINEERING CHIEF
FISCAL YEAR 2021 BUDGET
79
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 625,884 $ 556,200 $ 595,000 $ 38,700
Administrative Expenses
Outside Services 264,113 285,000 316,000 31,000
Total Administrative Expenses 264,113 285,000 316,000 31,000
Total Expenses $ 889,997 $ 841,200 $ 911,000 $ 69,700
FY 2020
OTAY WATER DISTRICT
DIVISION 3321 - ENGINEERING SERVICES
FISCAL YEAR 2021 BUDGET
80
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 274,210 $ 350,900 $ 465,000 $ 113,600
Administrative Expenses
Outside Services 1,320 - - -
Total Administrative Expenses 1,320 - - -
Total Expenses $ 275,530 $ 350,900 $ 465,000 $ 113,600
FY 2020
OTAY WATER DISTRICT
DIVISION 3421 - PUBLIC SERVICES
FISCAL YEAR 2021 BUDGET
81
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 1,262,827 $ 1,447,600 $ 1,345,000 $ (102,800)
Administrative Expenses
Agency Fees 7,421 4,000 9,000 5,000
Outside Services 259,142 119,200 151,000 31,800
Total Administrative Expenses 266,563 123,200 160,000 36,800
Total Expenses $ 1,529,390 $ 1,570,800 $ 1,505,000 $ (66,000)
FY 2020
OTAY WATER DISTRICT
DIVISION 3431 - FIELD SERVICES
FISCAL YEAR 2021 BUDGET
82
FY 2019 FY 2021 Budget to Budget
Actual Budget Budget Variance
Labor & Benefits
Total Labor and Benefits $ 102,586 $ 96,500 $ 109,000 $ 12,200
Administrative Expenses
Agency Fees 49,793 58,000 58,000 -
Outside Services 228,976 190,000 190,000 -
Total Administrative Expenses 278,769 248,000 248,000 -
Total Expenses $ 381,355 $ 344,500 $ 357,000 $ 12,200
FY 2020
OTAY WATER DISTRICT
DIVISION 3451 - ENVIRONMENTAL SERVICES
FISCAL YEAR 2021 BUDGET
83
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84
Expansion
CIP No CIP Project Title FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
P2040 (1)Res - 1655-1 Reservoir 0.5 MG 8$ 85$ 163$ 372$ 481$ 395$ 1,504$
P2494 Multiple Species Conservation Plan 25 25 20 - - - 70
P2595 PL - 16-inch, 624 Zone, Village 3N - Heritage Road, Main St/Energy 1 1 1 1 145 1 150
P2642 Rancho Jamul Pump Station Replacement 2 2 51 225 326 155 760
R2084 RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media 1 1 1 1 1 358 363
S2069 Cottonwood Sewer Pump Station Renovation 19 38 63 175 200 75 569
S2071 San Diego Metro Wastewater Capital Improvements 14 17 17 27 34 34 143
Total Expansion 69$ 168$ 316$ 801$ 1,186$ 1,018$ 3,558$
Potable 35$ 113$ 235$ 598$ 951$ 551$ 2,483$
Recycled 1 1 1 1 1 358 363
Sewer 32 55 80 202 234 109 712
Total Expansion 69$ 168$ 316$ 801$ 1,186$ 1,018$ 3,558$
Betterment
Funding Source FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
P2040 Res - 1655-1 Reservoir 0.5 MG 17.3 189.8 362.3 828.0 1,069.5 879.8 3,347
P2451 Otay Mesa Desalination Conveyance and Disinfection System 4 7 7 7 7 69 100
P2521 Large Meter Vault Upgrade Program 75 75 60 50 - - 260
P2578 (1)PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 gpm 8 85 209 806 1,581 1,581 4,270
P2619 (1)PS - Temporary Lower Otay Pump Station Redundancy 345 138 138 - - - 621
P2626 803-4 Reservoir Water Quality Improvements – PAX System Purchase 25 50 50 25 - - 150
P2630 624-3 Reservoir Automation of Chemical Feed System 25 175 300 5 65 50 620
P2642 Rancho Jamul Pump Station Replacement 4 4 114 500 725 345 1,691
P2652 520 to 640 Pressure Zone Conversion 60 85 10 10 10 55 230
P2653 1200 Pressure Zone Improvements 150 200 75 - - - 425
P2654 Heritage Road Interconnection Improvements 10 85 85 - - - 180
P2656 Regulatory Site Desilting Basin Improvements 30 100 - - - - 130
P2658 832-1 Pump Station Modifications 50 100 50 - 190 200 590
P2664 Otay Mesa Dual Piping Modification Program 55 50 50 50 50 90 345
P2668 Implementation of PSIcapture Software for Accounts Payable Invoice 25 - - - - - 25
P2669 Fuel Tank Safety and Integrity 26 35 39 - - - 100
P2674 System Pressure Reducing Program 50 10 10 10 10 10 100
R2117 RWCWRF Disinfection System Improvements 240 1,000 240 20 - - 1,500
R2120 RWCWRF Filtered Water Storage Tank Improvements 400 225 25 - - - 650
R2157 RWCWRF Backwash Supply Pumps Upgrade 25 35 13 3 - - 75
S2024 Campo Road Sewer Main Replacement 5 3 3 - - - 10
S2043 RWCWRF Sludge Handling System 1 1 1 1 1 50 55
S2047 Asset Management - Info Master Sewer Implementation 5 5 9 - - - 19
S2069 Cottonwood Sewer Pump Station Renovation 19 38 63 175 200 75 569
S2070 Hidden Mountain Sewer Pump Station Wet Well Renovation 5 - - - - - 5
S2071 San Diego Metro Wastewater Capital Improvements 26 33 33 53 66 66 277
Total Betterment 1,684$ 2,728$ 1,945$ 2,543$ 3,974$ 3,471$ 16,344$
Potable 958$ 1,389$ 1,559$ 2,291$ 3,707$ 3,280$ 13,184$
Recycled 665 1,260 278 23 - - 2,225
Sewer 61 79 108 229 267 191 935
Total Betterment 1,684$ 2,728$ 1,945$ 2,543$ 3,974$ 3,471$ 16,344$
Six-Year CIP Projects by Source and Fund ($1,000s)
(1) Partially funded by 2018A Water Revenue Bonds.
(2) Project may by funded with Sewer Debt proceeds.
85
Replacement
CIP No CIP Project Title FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
P2083 (1)PS - 870-2 Pump Station Replacement 46 2 2 - - - 50
P2174 (1)PS - 1090-1 Pump Station Upgrade 375 850 525 120 - - 1,870
P2282 Vehicle Capital Purchases 315 405 250 200 210 200 1,580
P2286 Field Equipment Capital Purchases 57 60 60 60 60 60 357
P2405 PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road 25 150 425 500 200 140 1,440
P2453 (1)SR-11 Utility Relocations 50 100 100 150 200 300 900
P2460 I.D. 7 Trestle and Pipeline Demolition 50 150 350 70 90 17 727
P2485 SCADA - Infrastructure and Communications Replacement 100 95 25 - - - 220
P2508 Pipeline Cathodic Protection Replacement Program 10 - - - - - 10
P2516 (1)PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage - - 75 125 400 400 1,000
P2533 1200-1 Reservoir Interior & Exterior Coating 400 350 310 5 50 120 1,235
P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations 40 40 20 - - - 100
P2543 850-1 Reservoir Interior/Exterior Coating 375 400 300 5 5 115 1,200
P2546 980-2 Reservoir Interior/Exterior Coating 15 - - - - - 15
P2553 (1)Heritage Road Bridge Replacement and Utility Relocation 25 25 25 425 1,350 1,700 3,550
P2555 Administration and Operations Parking Lot Improvements 30 - - - - - 30
P2561 Res - 711-3 Reservoir Cover/Liner Replacement 30 - - - - - 30
P2562 Res - 571-1 Reservoir Cover/Liner Replacement 10 1 1 1 86 86 185
P2563 Res - 870-1 Reservoir Cover/Liner Replacement 5 5 5 5 5 150 175
P2565 803-2 Reservoir Interior/Exterior Coating & Upgrades 10 10 5 5 5 165 200
P2567 1004-2 Reservoir Interior/Exterior Coating & Upgrades - 20 850 40 5 235 1,150
P2571 Data Center Network Data Storage and Infrastructure Enhancements 130 130 30 - - - 290
P2572 Enterprise Resource Planning (ERP) Replacement 80 50 - - - - 130
P2573 PL - 12-Inch Pipeline Replacement, 803 Zone, Hillsdale Road 4 4 - - - - 8
P2574 (1)PL - 12-Inch Pipeline Replacement, 978 Zone, Vista Vereda 5 - - - - - 5
P2578 (1)PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 gpm 17 190 466 1,794 3,519 3,519 9,505
P2584 Res - 657-1 and 657-2 Reservoir Demolitions - - - - - 50 50
P2593 458-1 Reservoir Interior/Exterior Coating & Upgrades 10 895 110 5 30 - 1,050
P2594 Large Meter Replacement 1 1 1 77 25 60 165
P2604 AMR Change-Out 250 250 40 - - - 540
P2605 (1)458/340 PRS Replacement, 1571 Melrose Ave 60 325 225 40 - - 650
P2607 Douglas Ave SWA and OWD Interconnection Upgrade 45 - - - - - 45
P2608 (1)PL - 8-inch, 850 Zone, Coronado Ave, Chestnut/Apple 200 50 100 300 400 695 1,745
P2609 (1)PL - 8-inch, 1004 Zone, Eucalyptus St, Coronado/Date/La Mesa 900 165 25 300 400 110 1,900
P2610 Valve Replacement Program - Phase 1 100 175 400 400 400 400 1,875
P2611 (1)Quarry Road Bridge Replacement and Utility Relocation 25 10 10 10 10 210 275
P2612 (1)PL - 12-inch, 711 Zone, Paso de Luz/Telegraph Canyon Rd 75 500 350 90 55 60 1,130
P2614 485-1 Reservoir Interior/Exterior Coating - - 20 800 200 130 1,150
Six-Year CIP Projects by Source and Fund ($1,000s)
(1) Partially funded by 2018A Water Revenue Bonds.
(2) Project may by funded with Sewer Debt proceeds.
86
Replacement, Continued
CIP No CIP Project Title FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
P2615 (1)PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande 10 250 600 1,500 100 150 2,610
P2616 (1)PL - 12-Inch Pipeline Replacement, 978 Zone, Pence Dr/Vista Sierra Dr 425 1,100 1,400 900 25 150 4,000
P2617 Lobby Security Enhancements 20 20 20 20 - - 80
P2623 Central Area to Otay Mesa Interconnection Pipelines Combination Air/V 30 300 10 - - - 340
P2625 (1)PL - 12-inch, 978 Zone, Hidden Mesa Road 10 - - - - - 10
P2627 (1)458/340 PRS Replacement, 1505 Oleander Ave 60 325 225 15 - - 625
P2631 1485-2 Reservoir Interior/Exterior Coating & Upgrades - - 5 40 500 705 1,250
P2638 Buildings and Grounds Refurbishments 25 50 14 - - - 89
P2639 Vista Diego Hydropneumatic Pump Station Replacement 50 150 900 1,500 175 - 2,775
P2640 Portable Trailer Mounted VFD Pumps 30 - - - - - 30
P2646 North District Area Cathodic Protection Improvements 25 125 325 450 275 - 1,200
P2647 Central Area Cathodic Protection Improvements 5 25 45 275 500 350 1,200
P2648 Otay Mesa Area Cathodic Protection Improvements 200 250 50 40 - - 540
P2649 HVAC Equipment Purchase 20 15 30 40 - - 105
P2655 La Presa Pipeline Improvements 180 150 575 550 170 50 1,675
P2657 1485-1 Reservoir Interior/Exterior Coating & Upgrades - - - 5 25 900 930
P2659 District Boardroom Improvements 20 50 50 - - - 120
P2661 Replacement of Backflow Prevention Devices on Pipeline Interconnecti 75 75 75 75 65 5 370
P2662 Potable Water Meter Change Out - - 20 30 1,900 2,000 3,950
P2663 Potable Water Pressure Vessel Program 25 25 375 400 425 425 1,675
P2665 PL - 12-inch Pipeline Replacement, 870 Zone, Cactus Road 5 5 25 25 25 25 110
P2666 Low Head and High Head Pump Stations Demolition 25 25 25 25 50 50 200
P2667 Small Meter Testing Bench 150 100 - - - - 250
P2670 Administration and Operations Roof Repairs and Replacement 5 5 5 5 25 280 325
P2671 980 Reservoirs Altitude Valve Vaults Renovation 120 170 10 - - - 300
P2672 District Roof Repairs and Replacement Program 25 25 125 25 75 100 375
P2673 803-4 Reservoir Interior/Exterior Coating - - - - - 30 30
P2675 458-1 and 458-2 Reservoir Site Pavement Refurbishment 5 55 250 100 40 - 450
R2121 Res - 944-1 Reservoir Cover/Liner Replacement 5 5 30 50 2,000 289 2,379
R2143 AMR Change-Out 130 35 25 - - - 190
R2146 Recycled Pipeline Cathodic Protection Improvements 25 25 150 250 200 25 675
R2147 RWCWRF Fuel Lines Replacement 2 5 - - - - 7
R2148 (2)Large Meter Replacement - Recycled 10 9 8 8 8 - 43
R2152 Recycled Water Meter Change-Out - - 10 10 50 60 130
R2153 Recycled Water Pressure Vessel Program 1 1 1 1 1 45 50
R2154 RWCWRF Entrance Storm Water Improvements (R)115 10 - - - - 125
R2155 RWCWRF Roofing Replacement and Natural Light Enhancement (R)100 40 35 - - - 175
R2156 RecPL - 14-inch RWCWRF Effluent Force Main Improvements 250 65 10 10 25 140 500
R2157 RWCWRF Backwash Supply Pumps Upgrade 75 105 38 8 - - 225
R2158 RWCWRF Stormwater Pond Improvements (R)40 95 30 10 - - 175
S2012 San Diego County Sanitation District Outfall and RSD Outfall
Replacement
5 5 125 125 125 150 535
S2024 Campo Road Sewer Main Replacement 5 3 3 - - - 10
Six-Year CIP Projects by Source and Fund ($1,000s)
(1) Partially funded by 2018A Water Revenue Bonds.
(2) Project may by funded with Sewer Debt proceeds.
87
Replacement, Continued
CIP No CIP Project Title FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
S2049 Calavo Basin Sewer Rehabilitation - Phase 2 25 190 450 300 20 - 985
S2050 Rancho San Diego Basin Sewer Rehabilitation - Phase 2 5 5 10 20 180 800 1,020
S2054 Calavo Basin Sewer Rehabilitation - Phase 3 - - - - 10 100 110
S2060 Steele Canyon Pump Station Replacement - - - 10 40 250 300
S2061 RWCWRF Aeration Controls Consolidation & Optimization Upgrades
(S)
50 100 40 - - - 190
S2066 Rancho San Diego Basin Sewer Rehabilitation - Phase 3 - - - - 5 25 30
S2067 RWCWRF Roofing Replacement and Natural Light Enhancement (S)75 75 24 - - - 174
S2069 Cottonwood Sewer Pump Station Renovation 38 75 125 350 400 150 1,138
S2072 RWCWRF Rotary Screen Replacement 1 1 1 1 11 100 115
S2073 RWCWRF Entrance Storm Water Improvements (S)115 10 - - - - 125
S2074 RWCWRF Stormwater Pond Improvements (S)40 95 30 10 - - 175
S2075 Field Equipment Capital Purchases 25 25 25 25 100 100 300
Total Replacement 6,552$ 9,681$ 11,433$ 12,735$ 15,255$ 16,376$ 72,031$
Potable 5,415$ 8,703$ 10,264$ 11,547$ 12,080$ 14,142$ 62,151$
Recycled 753 395 337 347 2,284 559 4,674
Sewer 384 584 833 841 891 1,675 5,206
Total Replacement 6,552$ 9,681$ 11,433$ 12,735$ 15,255$ 16,376$ 72,031$
New Supply
CIP No CIP Project Title FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
P2451 Otay Mesa Desalination Conveyance and Disinfection System 2 3 3 3 3 31 45
Total New Supply 157$ 65$ 65$ 3$ 3$ 31$ 324$
Potable 157$ 65$ 65$ 3$ 3$ 31$ 324$
Total New Supply 157$ 65$ 65$ 3$ 3$ 31$ 324$
Summary by Source
Funding Source FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
Expansion 69 168 316 801 1,186 1,018 3,558$
Betterment 1,684 2,727 1,945 2,543 3,974 3,471 16,344
Replacement 6,551 9,682 11,432 12,734 15,255 16,376 72,030
New Supply 157 65 65 3 3 31 324
Total CIP by Funding Source 8,461$ 12,642$ 13,758$ 16,081$ 20,418$ 20,896$ 92,256$
Summary by Fund
Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
Potable 6,565 10,269 12,123 14,439 16,741 18,004 78,141$
Recycled 1,419 1,656 615 370 2,285 917 7,262$
Sewer 477 717 1,020 1,272 1,392 1,975 6,853$
Total CIP by Fund 8,461$ 12,642$ 13,758$ 16,081$ 20,418$ 20,896$ 92,256$
Six-Year CIP Projects by Source and Fund ($1,000s)
(1) Partially funded by 2018A Water Revenue Bonds.
(2) Project may by funded with Sewer Debt proceeds.
88
Quantity Amount
Vehicles
1 41,000$
1 1/2 ton truck for the Construction Services department.37,000
1 1/2 ton truck for the Construction Services department. 37,000
1 3/4 ton truck with utility body for SCADA department.46,500
1 3/4 ton truck with utility body for SCADA department 46,500
1 Class compact pickup truck.30,500
1 3/4 ton extra cab truck with utility body for Disinfection section.46,500
1 Compact vehicle.25,200
Total vehicles - P2282 310,200
Field Equipment
1 38,000
2 18,500
1 Replacement skimmer pump and related parts 25,000
Total field equipment - P2286/S2075 81,500
Total 391,700$
Summary by Project
P2282 Vehicles 310,200
P2286 Field equipment 56,500
S2075 Field Equipment 25,000
Grand Total:391,700$
Two 3" portable trash pumps, two high-pressure hoses, and one
spreader bar.
FY 2021 Capital Purchases
Capital purchases are non-recurring operating expense items for District-wide use that cost more than $10,000
each and have an estimated useful life of two years or more.The capital purchase projects include vehicles,
office equipment and furniture,field equipment and air pollution control district engine replacements, and
retrofits.
Description
1/2 ton truck for the Survey department.
Sewer camera and tractor.
89
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90
P2040Res - 1655-1 Reservoir 0.5 MG
Kevin Cameron
8/19/1992
5
3
$5,750,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for construction of a 0.5 million gallon Reservoir and approximately 1,500 feet of 12-inch pipeline to connect to the
existing system at Presilla Drive. These improvements are located within the Rancho Jamul Estates area.
JUSTIFICATION OF PROJECT:
The project will increase both system reliability and service capabilities, and provide adequate fire protection for the Rancho
Jamul Estates area within the 1655 Pressure Zone. The existing system is currently served with a Hydropneumatic Pump
Station. This current system is not sufficient to meet fire flow demand and the Board agreed they would build the Reservoir as
part of an exchange for land in the early 2000's.
COMMENTS:
FY 2017 - In early 2000, the project was designed to 90%, and due to the economy, the project was put on hold. The overall
budget was increased to account for the spending done prior to FY 2015. The project budget increased $1.2M after receiving a
preliminary cost estimate from a concrete tank manufacturer and updating cost estimates from the estimate done in 2000. The
concrete tank will have to be a Type I due to location and steep grades. Also, added updated costs for Reservoir security items.
FY 2020 - Budget was increased $1.1M, based on current bidding costs. This is a pre-planning budget.
FY 2021 - Revised budget with new estimate on tank, pipeline, and road construction.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %69 %0 %0 %69 %
Expansion 31 %0 %0 %0 %31 %
TOTAL:31 %69 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $275 $525 $1,200 $1,550 $1,275 $5,500
PRIOR YEARS:
TOTAL
$650
OTAY WATER DISTRICT
CAPITAL IMPROVEMENT PROGRAM
91
P2040
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2015 3/31/2021
4/1/2021 6/30/2024
$700
$450
PROJECT PHASE:
7/1/2024 10/31/2026 $4,600
PROJECT LOCATION:OWD Map Book:310
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/11/2020Jolene Fielding
92
P2083PS - 870-2 Pump Station Replacement
Jeff Marchioro
5/17/1995
P2451
2
1
$19,550,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the construction of a new Pump Station to replace the existing Low Head and High Head Pump Stations.
JUSTIFICATION OF PROJECT:
The two (2) existing Pump Stations have reached the end of their useful lives.
COMMENTS:
FY 2021 - Increased overall CIP budget $600K from $18.95M to $19.55M (to reflect three (3) staff reports approved at the
February 5, 2020 Board Meeting).
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$46 $2 $2 $0 $0 $0 $19,550
PRIOR YEARS:
TOTAL
$19,500
93
P2083
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2013 9/1/2013
9/1/2013 5/1/2017
$1,100
$1,500
PROJECT PHASE:
5/1/2017 6/30/2022 $16,950
PROJECT LOCATION:OWD Map Book:055
2021 2022 2023 2024 2025 2026 Total
$5,000 $5,000 $5,000 $5,000 $0 $0 $20,000
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
94
P2174PS - 1090-1 Pump Station Upgrade
Stephen Beppler
5/23/2016
P2640
5
2
$2,000,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace and upgrade the existing Pump Station (PS) pumps, controls, electrical panels, building appurtenances, piping, and
valves, which serves the small 1090 Pressure Zone containing approximately thirty-two (32) potable meters and eight (8)
hydrants. Increase the firm pumping capacity of the Station to ensure fire protection is provided while maintaining water quality
in the system. Existing emergency generator system is relatively new, so design options to keep this system intact will be
investigated. Piping revisions will include connection points for Portable Trailer Mounted Variable Frequency Drive (VFD) Pump.
JUSTIFICATION OF PROJECT:
The existing PS, originally constructed in 1962, requires significant upgrades to the electrical and control panels as well as new
pumps.
COMMENTS:
FY 2021 - Project design expected to be completed in FY 2021 Q1. Construction will extend into FY 2022.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$375 $850 $525 $120 $0 $0 $2,000
PRIOR YEARS:
TOTAL
$130
95
P2174
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 4/30/2019
5/1/2019 9/30/2020
$50
$350
PROJECT PHASE:
10/1/2020 6/30/2024 $1,600
PROJECT LOCATION:OWD Map Book:320
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/11/2020Jolene Fielding
96
P2282Vehicle Capital Purchases
Doug Rahders
6/3/1996
0
1
$6,500,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the capital purchase of various vehicles for daily Otay Water District functions.
JUSTIFICATION OF PROJECT:
Replacements or newly acquired vehicles will be used for operational and administrative functions throughout the entire Otay
Water District.
COMMENTS:
FY 2019 - Overall budget increased from $5,491K to $5,928K to reflect extension of CIP another year and FY 2019 budget from
$240K to $520K.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$315 $405 $278 $229 $210 $200 $6,500
PRIOR YEARS:
TOTAL
$4,863
97
P2282
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
12/1/2000 6/30/2026 $6,500
$0
PROJECT PHASE:
$0
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
98
P2286Field Equipment Capital Purchases
Doug Rahders
6/3/1996
0
1
$2,500,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for capital purchases of various pieces of field equipment used for daily Otay Water District functions.
JUSTIFICATION OF PROJECT:
Replacements or new acquisitions of field equipment will be used for operational functions throughout the entire Otay Water
District.
COMMENTS:
FY 2019 - Budget increased from $1.746M to $2.25M to reflect equipment purchase increases in FY 2019 and FY 2020.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$57 $60 $60 $60 $60 $60 $2,377
PRIOR YEARS:
TOTAL
$2,020
99
P2286
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/1996 6/30/2028 $2,500
$0
PROJECT PHASE:
$0
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
100
P2405PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road
Kevin Cameron
5/23/2016
2
2
$1,500,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the construction of approximately 1,200 feet of 12-inch pipeline in the 340 Pressure Zone in Otay Valley Road
and the 16-inch pipeline in Otay Valley Road and construction of a Pressure Reducing Station (PRS) between the 624/340
Pressure Zone near the intersection of Otay Valley Road/Main Street and Heritage Road.
JUSTIFICATION OF PROJECT:
This will provide a redundant service connection to the 340 Pressure Zone. The current pipeline is an environmentally sensitive
area and not in the street. This project will relocate the pipe and allow redundant delivery through the newly extended Heritage
Road.
COMMENTS:
FY 2020 - Approximately 1,200 linear feet (LF) of 12-inch PVC pipe (at $62/Inch//LF) and $600K for the PRS with SCADA
communication is the basis for the $1.5M budget.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $150 $425 $500 $200 $140 $1,445
PRIOR YEARS:
TOTAL
$5
101
P2405
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2016 6/30/2017
7/1/2017 6/30/2022
$15
$335
PROJECT PHASE:
7/1/2022 6/30/2028 $1,150
PROJECT LOCATION:OWD Map Book:51
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
102
P2451Otay Mesa Desalination Conveyance and Disinfection System
Bob Kennedy
5/23/2006
P2083
2
3
$35,700,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
The Otay Water District (District) could potentially receive a potable water supply source from the planned Rosarito Desalination
Facility via a conveyance system, pumping facilities, and disinfection system.
JUSTIFICATION OF PROJECT:
The concept could provide for an independent water source to the District.
COMMENTS:
FY 2007 - Original Budget amount approved 5/23/2006 for $1M.
FY 2009 - Budget increase approved 6/25/2008 to $5M.
FY 2010 - Budget increase approved 5/21/2009 to $30M.
FY 2020 - After discussions with DDW in May 2013, UV disinfection was estimated to cost $3.7M. Updating this estimate to
January 2019, the cost of UV is estimated to cost $4.3M. A Pump Station is not expected to be required since the HGL needed
to pump from Rosarito to the border will exceed the elevation of District facilities. The conveyance pipeline is estimated to be
21,100 linear feet (LF). A 24-inch pipeline could convey 12 MGD and at $62/Inch/LF will cost $31.4M. Updating these estimates
to January 2019, the cost was increased to $35.7M ($4.3M for UV and $31.4M for Conveyance Pipeline).
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %69 %0 %0 %69 %
New Water Supply Fee
Projects
0 %0 %0 %31 %31 %
TOTAL:0 %69 %0 %31 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$5 $10 $10 $10 $10 $100 $3,970
PRIOR YEARS:
TOTAL
$3,825
103
P2451
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2006 6/30/2027
7/1/2027 6/30/2029
$4,100
$4,000
PROJECT PHASE:
7/1/2029 6/30/2033 $27,600
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:1/23/2020Bob Kennedy
104
P2453 SR-11 Utility Relocations
Jeff Marchioro
5/23/2006
2
1
$3,000,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for all utility relocations required due to construction of the SR-11 on the Otay Mesa. Facility relocations vary in
size from 8-inch to 24-inch. Both the potable and recycled water systems are impacted.
JUSTIFICATION OF PROJECT:
Caltrans will construct the SR-11, which will result in utility conflicts with existing Otay Water District facilities at various locations.
In most cases, the Otay Water District does have prior and superior rights. The facilities must be relocated prior to Caltrans'
construction of the SR-11. The cost of the facilities relocations that have prior rights will be reimbursed by Caltrans.
COMMENTS:
FY 2020 - Project budget decreased from $4M to $3M to reflect changes in Otay Crossing Commerce Park development SAMP
and corresponding deletion of Siempre Viva Road bridge waterline.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$50 $100 $100 $150 $200 $300 $2,950
PRIOR YEARS:
TOTAL
$2,050
105
P2453
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2006 6/30/2019
7/1/2019 6/30/2020
$50
$550
PROJECT PHASE:
7/1/2020 6/30/2027 $2,400
PROJECT LOCATION:OWD Map Book:5
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Bob Kennedy
106
P2460I.D. 7 Trestle and Pipeline Demolition
Stephen Beppler
5/23/2016
1
2
$750,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the steel trestle demolition and removal of a pipeline. The 1960's steel trestle 24-inch pipeline crossing of Otay
River was replaced by the Central Area and Otay Mesa Interconnection Pipeline in 2001. The trestle also carries a high pressure
gas line that supplies the 870-1 Pump Station that prevented the trestle from being demolished previously. SDG&E abandoned
this gas line in 2017 and replaced it with a feed from the south.
JUSTIFICATION OF PROJECT:
The existing pipeline is no longer in service and should be removed to address liability concerns. The pipeline runs over a
canyon and there are concerns that unauthorized individuals could gain access and be injured. The pipeline is in an
environmentally sensitive area and becoming increasingly difficult to access. The Central Area - Otay Mesa Interconnection
Pipeline supplies water to the Otay Mesa System.
COMMENTS:
FY 2019 - Demolition of the trestle has been delayed until the completion of the 870-2 Pump Station Replacement project to
avoid area access conflicts. This also provides time for an environmental study ($100K) to be prepared for the project starting
Spring 2020 and assess potential site access concerns.
FY 2021 - Assumptions of road improvements to the site and environmental monitoring have been made for budget purposes.
Due to limited access during breeding seasons, construction duration is expected to be two (2) years.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$50 $150 $350 $70 $90 $17 $750
PRIOR YEARS:
TOTAL
$23
107
P2460
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2016 8/31/2020
9/1/2020 6/30/2022
$10
$240
PROJECT PHASE:
7/1/2022 6/30/2026 $500
PROJECT LOCATION:OWD Map Book:71
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
108
P2485SCADA - Infrastructure and Communications Replacement
Michael Kerr
5/21/2009
0
1
$2,450,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project will replace the existing SCADA software and radio communication system and install fuel level transmitters on all
diesel fuel tanks. A battery backup system will be installed at remote SCADA/radio sites without emergency power generators.
JUSTIFICATION OF PROJECT:
Beginning in 2012, the vendor no longer upgrades or supports the existing system. The radio equipment needs replacement to
allow for increased bandwidth capability to increase security systems functionality. The fuel level transmitters on all diesel fuel
tanks and remote SCADA monitoring will provide supervisors with real-time fuel levels to monitor available runtime on stand-by
engines during extended power outages. The battery backup system will provide continuous communications and SCADA
monitoring and control for three (3) days if the District lost power at sites without emergency power generators.
COMMENTS:
FY 2021 – Updated request for funding for current CIP. Based on conversations with Operations Manager a change was
requested for future funding.
P2485-020000 – SCADA Equipment & Infrastructure Enhancements (+$17K for FY 2021 and +$25K for FY 2022)
· FY 2021 - $77K; increase from last year’s requested amount of $60K
· FY 2022- $85K; increase from last year’s requested amount of $60K
At the end of FY 2022, all PLC sites will have been upgraded from 90/30’s where possible.
P2485-030000 – Metro Ethernet Implementation (+$9K for FY 2021 and +$7K for FY 2022)
· FY 2021 - $9K; Additional Hardware to support expanded facilities
· FY 2022- $7K; Additional Hardware to support expanded facilities
P2485-040000 – Emergency Operations Center (+$14K for FY 2021 and +$8K for FY 2022)
· FY 2021 - $14K; Additional Hardware to support District emergency operations
· FY 2022- $8K; Additional Hardware to support District emergency operations
To summarize:
P2485-020000 – SCADA Equipment & Infrastructure Enhancements (+$17K for FY 2021 and +$25K for FY 2022)
P2485-030000 – Metro Ethernet Implementation (+$9K for FY 2021 and +$7K for FY 2022)
P2485-040000 – Emergency Operations Center (+$14K for FY 2021 and +$8K for FY 2022)
Total:
FY 2021 = $100K; FY 2022 = $100K
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$100 $95 $25 $0 $0 $0 $2,450
PRIOR YEARS:
TOTAL
$2,230
109
P2485
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
$0
$0
PROJECT PHASE:
7/1/2009 6/30/2023 $2,450
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
110
P2494Multiple Species Conservation Plan
Lisa Coburn-Boyd
5/21/2009
P2495
0
1
$1,000,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is to develop a Habitat Conservation Plan (Plan) to streamline the environmental permitting processes for the Capital
Improvement Program (CIP) projects to be constructed.
JUSTIFICATION OF PROJECT:
The project will save time and money when compared to environmental permitting each CIP project individually.
COMMENTS:
FY 2019 - An additional $50K is requested to be added to the budget in order to complete the Plan. The Plan is ready to be
submitted to the Resource Agencies and they will have comments that will need to be addressed by the consultant and District
staff before finalizing the Plan. In addition, the Plan must undergo basic CEQA compliance and the funds needed for that
compliance, combined with the effort to address agency review comments, will exceed the current budgeted amount. This effort
has taken many years, but will greatly streamline biological permitting for CIP projects as well as operations and maintenance
issues once it is approved and in place.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Expansion 100 %0 %0 %0 %100 %
TOTAL:100 %0 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $25 $20 $0 $0 $0 $1,000
PRIOR YEARS:
TOTAL
$930
111
P2494
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2009 6/30/2023 $1,000
$0
PROJECT PHASE:
$0
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:4/16/2020Bob Kennedy
112
P2508Pipeline Cathodic Protection Replacement Program
Jeff Marchioro
5/17/2010
0
1
$1,250,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement and repairs of existing cathodic protection systems on six (6) pipelines in environmentally
sensitive areas, including the Otay Water District's existing 1980 era 14-inch force main, 2000 era Interconnect Pipelines
between the Central Area and Otay Mesa, 1998 era pipeline along Proctor Valley Road, 1987 era pipelines in the Sweetwater
River Bridge at Campo Road, 2004 era pipeline crossing Salt Creek, and 1981 era pipeline crossing the Sweetwater River.
JUSTIFICATION OF PROJECT:
The ongoing cathodic protection program efforts have identified various pipelines for anode replacement, cathodic test station
repairs, installation of isolation kits, and repair of existing anode beds.
COMMENTS:
FY 2021 - CIP P2508 will be closed after warranty phase ends FY 2021, Q1 (i.e., this CIP will be closed at the end of FY 2021).
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$10 $0 $0 $0 $0 $0 $1,250
PRIOR YEARS:
TOTAL
$1,240
113
P2508
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2010 6/30/2019
7/1/2014 6/30/2022
$135
$335
PROJECT PHASE:
10/1/2014 6/30/2021 $780
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
114
P2516PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage
Jeff Marchioro
5/23/2016
3
3
$1,000,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for construction of approximately 1,250 feet of 12-inch pipeline in Jamacha Road and Osage Drive in the 640
Pressure Zone. The pipe can last up to 85 years. Needs an inspection to assess condition.
JUSTIFICATION OF PROJECT:
The existing 1958 era pipelines are located in easements in the side yards of homes. The pipelines are a risk and liability to the
Otay Water District if they were to fail. This project will relocate the pipeline from yards to the streets.
COMMENTS:
FY 2020 - Project budget increased from $900K to $1M to reflect current $62/Inch/FT CIP level unit pricing.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$0 $0 $75 $125 $400 $400 $1,000
PRIOR YEARS:
TOTAL
$0
115
P2516
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2021 6/30/2022
7/1/2022 6/30/2023
$75
$125
PROJECT PHASE:
7/1/2023 6/30/2026 $800
PROJECT LOCATION:OWD Map Book:301
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:4/16/2020Bob Kennedy
116
P2521Large Meter Vault Upgrade Program
Andrea Carey
5/16/2011
0
1
$620,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the retrofit and upgrade of approximately fifty (50) large meter vaults to either above ground conditions or
eliminate the confined space depth.
JUSTIFICATION OF PROJECT:
The existing large meters are installed in below grade vaults, which creates increased costs and safety issues due to confined
space requirements. Some of the existing below grade systems are subject to flooding and create corrosive environments.
COMMENTS:
FY 2021 - Project has been replacing and upgrading meter vaults since FY 2017, with completion expected in FY 2022.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %100 %0 %0 %100 %
TOTAL:0 %100 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$75 $75 $60 $50 $0 $0 $620
PRIOR YEARS:
TOTAL
$360
117
P2521
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
$220
$6
PROJECT PHASE:
8/1/2016 6/30/2024 $394
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
118
P25331200-1 Reservoir Interior & Exterior Coating
Kevin Cameron
6/3/2015
5
2
$1,275,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the interior and exterior coatings of the 1200-1 Reservoir. In addition, an assessment of the facility will be
accomplished to assure compliance to all applicable codes and OSHA standards.
JUSTIFICATION OF PROJECT:
Based upon the 2011 Cathodic Assessment Report, the 1200-1 Reservoir interior and exterior coatings are in relatively poor
condition and are in need of replacement.
COMMENTS:
FY 2018 - Budget increased from $565K to $810K to reflect latest bid results and include structural improvements required on
many tanks recently recoated.
FY 2020 - Updated budget for current bidding climate and increased material costs.
FY 2021 - Budget increased as a result of latest bids received.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$400 $350 $310 $5 $50 $120 $1,275
PRIOR YEARS:
TOTAL
$40
119
P2533
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
6/1/2016 7/31/2017
8/3/2017 10/30/2020
$25
$75
PROJECT PHASE:
11/2/2020 6/30/2026 $1,175
PROJECT LOCATION:OWD Map Book:369
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
120
P2539South Bay Bus Rapid Transit (BRT) Utility Relocations
Kevin Cameron
5/19/2014
1
1
$1,090,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for all utility relocations required due to construction of South Bay BRT. Facility relocations vary in size and they
impact both the potable and recycled water systems.
JUSTIFICATION OF PROJECT:
Project improvements will affect the locations of some Otay Water District (District) facilities in streets in Chula Vista.
Engineering staff time will be needed to review the design drawings and identify any District facilities which will need relocation or
vertical adjustment. A construction budget is also needed for the work in relocating and adjusting these facilities.
COMMENTS:
FY 2018 - Budget increased from $940K to $1.09M to reflect actual costs encountered to date and remaining work to be
completed.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$40 $40 $20 $0 $0 $0 $1,090
PRIOR YEARS:
TOTAL
$990
121
P2539
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2013 6/30/2014
7/1/2014 4/30/2016
$40
$80
PROJECT PHASE:
5/1/2016 6/30/2023 $970
PROJECT LOCATION:OWD Map Book:80-82, 97-99,
113 &
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
122
P2543850-1 Reservoir Interior/Exterior Coating
Kevin Cameron
6/3/2015
3
2
$1,270,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the interior and exterior coatings of the 850-1 Reservoir. In addition, an assessment of the facility will be
accomplished to assure compliance to all applicable codes and OSHA standards.
JUSTIFICATION OF PROJECT:
Based upon the current Cathodic Assessment Report, the interior and exterior coatings on the 850-1 Reservoir are nearing the
end of their useful lives and are in need of replacement.
COMMENTS:
FY 2018 - Budget increased from $575K to $875K to reflect recent bid prices and anticipated structural repairs that have been
encountered on many of the tanks recently recoated.
FY 2020 - Updated budget for current bidding climate and increased material costs.
FY 2021 - Updated budget for current bidding climate, reflect recent bid prices, and increased material costs.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$375 $400 $300 $5 $5 $115 $1,250
PRIOR YEARS:
TOTAL
$50
123
P2543
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
1/2/2018 7/28/2019
7/31/2019 10/31/2019
$25
$75
PROJECT PHASE:
11/1/2019 6/30/2027 $1,170
PROJECT LOCATION:OWD Map Book:304
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/12/2020Jolene Fielding
124
P2546980-2 Reservoir Interior/Exterior Coating
Kevin Cameron
6/3/2015
P2545
5
2
$1,705,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the interior and exterior coatings of the 980-2 Reservoir. In addition, an assessment of the facility will be
accomplished to assure compliance to all applicable codes and OSHA standards.
JUSTIFICATION OF PROJECT:
Based upon the current Cathodic Assessment Report, the interior and exterior coatings on the 980-2 Reservoir are nearing the
end of their useful lives and are in need of replacement.
COMMENTS:
FY 2020 - Project is in two (2) year warranty period. $15K added to budget should warranty repairs be needed in FY 2021 for
staff and Coating Inspector. Costs to make repairs shall be paid by the contractor.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$15 $0 $0 $0 $0 $0 $1,705
PRIOR YEARS:
TOTAL
$1,690
125
P2546
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
1/1/2017 2/28/2017
3/1/2017 10/3/2017
$20
$60
PROJECT PHASE:
10/4/2017 6/30/2021 $1,625
PROJECT LOCATION:OWD Map Book:172
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:2/13/2020Bob Kennedy
126
P2553Heritage Road Bridge Replacement and Utility Relocation
Kevin Cameron
6/3/2015
2
2
$5,050,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
The existing 16-inch potable water pipeline to North Island Credit Union Amphitheatre (formally known as Sleep Train
Amphitheatre) and Aquatica San Diego, a SeaWorld Parks and Entertainment waterpark, was built under the Otay River.
The City of Chula Vista is planning to replace the Heritage Road Bridge (Project No. STM-364). The Otay Water District (District)
has requested the City to reserve room in the bridge for a 16-inch steel pipeline for potable water use and an 8-inch pipeline for
future recycled water use. In addition to the bridge crossing, approximately 1,600 linear feet of 16-inch potable water pipeline is
required. An existing 16-inch ACP pipeline in Otay River will be abandoned or converted to recycled water use.
JUSTIFICATION OF PROJECT:
A new bridge crossing of the Otay River at Heritage Road provides an opportunity for the District to relocate a pipeline out of the
river into a more secure location and also provides an economical way to build a recycled water pipeline to these commercial
customers. The current pipeline is in an environmentally sensitive area. The timing of the project will coincide with the City of
Chula Vista's construction.
COMMENTS:
FY 2016 - Budget increased from $1.2M to $1.43M to reflect latest projected costs and scope of work.
FY 2020 - Budget increased for 3,000 linear feet (LF) of 16-inch PVC pipe and 700 LF of 8-inch PVC (recycled) (at $62/Inch/LF)
is the basis for the $3.5M budget.
FY 2021 - Budget increased to $5.05M to reflect cost increases for similar bridge pipeline projects.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $25 $25 $425 $1,350 $1,700 $3,600
PRIOR YEARS:
TOTAL
$50
127
P2553
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2014 12/30/2016
1/2/2017 11/8/2022
$80
$420
PROJECT PHASE:
11/9/2022 12/30/2028 $4,550
PROJECT LOCATION:OWD Map Book:50 & 51
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Bob Kennedy
128
P2555Administration and Operations Parking Lot Improvements
Kevin Cameron
6/3/2015
3
2
$935,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for AC pavement repairs, slurry seal, re-striping, and updating area lighting improvements to existing
Administration and Operations parking lots.
JUSTIFICATION OF PROJECT:
Parking lot needs to be re-striped and AC pavement needs to be resealed. Area lighting will be updated to more energy efficient
fixtures.
COMMENTS:
FY 2018 - Increased budget by $225K for repaving, striping, motorized gate, and canopies for the Operations yard.
FY 2019 - Increased budget for lighting improvements for the Operations' garage and workshop, larger canopy, and current
bidding environment.
FY 2020 - Budget reduced to $935K for lower pricing on lighting improvements for Operations' fleet shop and warehouse.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$30 $0 $0 $0 $0 $0 $935
PRIOR YEARS:
TOTAL
$905
129
P2555
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2015 12/31/2015
1/1/2016 12/31/2016
$2
$173
PROJECT PHASE:
1/1/2017 6/30/2021 $760
PROJECT LOCATION:OWD Map Book:318
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:2/25/2020Kevin Cameron
130
P2561Res - 711-3 Reservoir Cover/Liner Replacement
Jeff Marchioro
6/3/2015
5
2
$2,450,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of the existing membrane floating cover and liner with new membrane system. Replace
existing low profile mechanical spring tension system with weight tension towers.
JUSTIFICATION OF PROJECT:
The existing membrane floating cover and liner and existing low profile mechanical spring tensioners, have reached the end of
their useful lives and require replacement to meet regulatory requirements.
COMMENTS:
FY 2021 - Project budget increased from $2.30M to $2.43M to reflect current prediction of settlement to close out construction
contract. CIP will be closed after warranty phase ends FY2021, Q2 (i.e., this CIP will be closed at the end of FY 2021).
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$15 $0 $0 $0 $0 $0 $2,450
PRIOR YEARS:
TOTAL
$2,435
131
P2561
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2015 9/30/2018
7/1/2018 2/15/2019
$10
$45
PROJECT PHASE:
2/15/2019 6/30/2021 $2,395
PROJECT LOCATION:OWD Map Book:159
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
132
P2562Res - 571-1 Reservoir Cover/Liner Replacement
Jeff Marchioro
6/3/2015
P2083
2
1
$2,900,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of the existing membrane floating cover and liner with new membrane system.
JUSTIFICATION OF PROJECT:
The existing membrane floating cover and liner have reached the end of their useful lives and require replacement to meet
regulatory requirements.
COMMENTS:
FY 2021 - Construction is complete and the project is in the warranty period.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$10 $1 $1 $1 $86 $86 $2,900
PRIOR YEARS:
TOTAL
$2,715
133
P2562
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2015 8/31/2016
9/1/2016 7/31/2017
$5
$50
PROJECT PHASE:
8/1/2017 6/30/2026 $2,845
PROJECT LOCATION:OWD Map Book:55
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
134
P2563Res - 870-1 Reservoir Cover/Liner Replacement
Jeff Marchioro
6/3/2015
2
3
$2,700,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of the existing membrane floating cover and liner with a new membrane system.
JUSTIFICATION OF PROJECT:
The existing membrane floating cover and liner have reached the end of their useful lives and require replacement to meet
regulatory requirements.
COMMENTS:
FY 2021 - Project budget increased from $1.25M to $2.70M include a temporary bolted tank (+$1M) and price increase for
floating cover/liner (+0.4M).
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$5 $5 $5 $5 $5 $150 $185
PRIOR YEARS:
TOTAL
$10
135
P2563
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2015 4/30/2023
5/1/2023 9/30/2026
$10
$60
PROJECT PHASE:
10/1/2026 6/30/2028 $2,630
PROJECT LOCATION:OWD Map Book:55
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:4/16/2020Bob Kennedy
136
P2565803-2 Reservoir Interior/Exterior Coating & Upgrades
Kevin Cameron
6/3/2015
5
2
$1,200,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the interior and exterior coatings of the 803-2 Reservoir. In addition, an assessment of the facility will be
accomplished to assure compliance to all applicable codes and OSHA standards.
JUSTIFICATION OF PROJECT:
Based upon the 2013 Cathodic Assessment Report, the 803-2 Reservoir interior and exterior coatings are near the end of their
useful lives and in need of replacement.
COMMENTS:
FY 2018 - Budget increased from $725K to $940K to reflect recent bid prices and anticipated structural repairs that have been
encountered on many of the tanks recently recoated.
FY 2019 - Budget increased from $940K to $1M, to add work from CIP P2606 to this CIP, and close CIP P2606 (Budget $75K).
This will reduce design and bidding costs.
FY 2020 - Budget increased from $1M to $1.2M.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$10 $10 $5 $5 $5 $165 $1,200
PRIOR YEARS:
TOTAL
$1,000
137
P2565
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
1/1/2018 6/30/2018
7/1/2018 10/2/2018
$20
$70
PROJECT PHASE:
10/3/2018 6/30/2026 $1,110
PROJECT LOCATION:OWD Map Book:357
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Bob Kennedy
138
P25671004-2 Reservoir Interior/Exterior Coating & Upgrades
Kevin Cameron
6/3/2015
3
3
$1,150,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the interior and exterior coatings of the 1004-2 Reservoir. In addition, an assessment of the facility will be
accomplished to assure compliance to all applicable codes and OSHA standards.
JUSTIFICATION OF PROJECT:
Based upon the 2013 Cathodic Assessment Report, the 1004-2 Reservoir interior and exterior coatings are at the end of their
useful lives and in need of replacement.
COMMENTS:
FY 2018 - Budget increased from $565K to $905K to reflect recent bid prices and anticipated structural repairs that have been
encountered on many of the tanks recently recoated.
FY 2020 - Updated budget for current bidding climate and increased material costs.
FY 2021 - Budget increased $185K to $1,150K. Recent bids for similar projects have noted increases in materials and labor
costs.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$0 $20 $850 $40 $5 $235 $1,150
PRIOR YEARS:
TOTAL
$0
139
P2567
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
1/4/2022 3/30/2022
4/1/2022 10/5/2023
$20
$65
PROJECT PHASE:
10/6/2023 6/30/2026 $1,065
PROJECT LOCATION:OWD Map Book:316
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
140
P2571Data Center Network Data Storage and Infrastructure
Enhancements
Michael Kerr
6/3/2015
0
2
$450,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement and enhancement of the infrastructure components for the Data Center Network.
JUSTIFICATION OF PROJECT:
Data Center Network infrastructure is reaching the end of its service life. This project plans for enhancement and replacement.
Some of the components that support the Otay Water District’s (District) business operations require upgrades and/or
replacements. The District’s data Storage Area Network (SAN) is reaching its end of service life. The Tegile Manufactured
System's SAN will not be supported as of Fiscal Year 2020 and requires replacement. Additional components of the Data Center
will also require extensive upgrades. Most of the hardware was replaced in 2014 and based on industry standards of a four (4) -
six (6) year replacement refresh cycle, will need to be upgraded or replaced. The end-of-life devices/hardware expose the threat
of unsupported infrastructure and new replacements would be costly. The District's operations depend on these components for
business continuity and service reliability.
COMMENTS:
FY 2020 – Updated request for funding for current CIP. Based on internal discussion with team members and project
deployment, an increase of $250k for additional funding is requested:
P2571 – Data Center Network Storage and Infrastructure Enhancements (+40K additional for FY 2020)
· FY 2021 – (+260K) - this increase will support the continued efforts for the replacement of the District’s current Storage
Hardware and associated equipment.
· FY 2022 – (+30K) - this increase will support the District’s core network hardware devices and associated equipment.
FY 2021 - Revised distribution: FY 2021=$130K; FY 2022=$130K; FY 2023=$30K
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$130 $130 $30 $0 $0 $0 $450
PRIOR YEARS:
TOTAL
$160
141
P2571
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
$0
$0
PROJECT PHASE:
7/1/2018 6/30/2023 $450
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
142
P2572Enterprise Resource Planning (ERP) Replacement
Michael Kerr
6/3/2015
0
3
$1,600,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of the Enterprise Resource Planning (ERP) system.
JUSTIFICATION OF PROJECT:
Based on preliminary road maps from the current vendor, staff anticipates that the current ERP system, Eden, will become
inflexible and constricted with new systems on the horizon. Staff is presently identifying key core business processes in
achieving improvements in productivity and quality. Staff also anticipates that the outcome of the workshops will recognize that
Eden will lack the necessary functionality, business agility, flexibility, and technology necessary for the Otay Water District's
(District) overall growth.
COMMENTS:
FY 2017 - Staff will start the discovery process in FY 2020 to identify possible alternatives for a new system. Given the history of
the current solution, Eden, staff anticipates that FY 2021 will be appropriate for a replacement. In FY 2021, the District will have
been utilizing the Eden financials for over fifteen (15) years. In the interim, staff will conduct research based on the District's
current technology infrastructure for best fit for conversion of historical data, proper workflow and security, and templates for
utility billing and invoicing.
FY 2019 - Staff will start the discovery process in FY 2020 to include needs assessment and evaluation of the District’s current
Financial Management solution. The ERP assessment will provide information needed to function effectively and to decide if the
current system is meeting the District’s business needs. Staff anticipates the assessment conducted will measure current District
operational strategies, business processes, and identify opportunities for margin improvement and risk reduction. Post
assessment, the selected vendor will produce a roadmap showing areas of potential improvement through planning, service and
quality, and align with the District’s strategy and goals.
FY 2020 - The original budget for FY 2019 was $0.5M and was increased on 2/4/19 to $1.6M. The increase in budget is a result
in the change in scope from a short-term replacement to a long-term replacement over many years.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$80 $50 $0 $0 $0 $0 $130
PRIOR YEARS:
TOTAL
$0
143
P2572
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
$0
$0
PROJECT PHASE:
7/1/2021 6/30/2030 $1,600
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:2/13/2020Bob Kennedy
144
P2573PL - 12-Inch Pipeline Replacement, 803 Zone, Hillsdale Road
Stephen Beppler
5/23/2016
P2574
5
1
$2,580,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of approximately 4,000 feet of 12-inch potable water main within the 803 Pressure Zones in
Hillsdale Road. The County has a CIP to repave Hillsdale Road after the Pipeline Replacement project is complete.
JUSTIFICATION OF PROJECT:
This project will replace thin wall, 1959 era, steel pipe originally constructed under As-Built number 01-03. Two (2) of the original
four (4) miles of thin wall steel pipe have been replaced through a separate CIP and developer projects. The remaining 2.1 miles
of pipe has developed several water main breaks including catastrophic failures due to semi-localized coating failures and severe
corrosion of the thin wall steel can.
COMMENTS:
FY 2018 - Design completed in FY 2017 and to be constructed in FY 2018. Construction of CIP S2048 to be completed at the
same time. Revision to water main alignment and updated cost opinion increased the project budget from $1.75M to $2.45M
and also reflects jump in bid prices experienced in early 2017.
FY 2020 - Construction completed in July 2018 with one (1) year warranty.
FY 2021 - Project to be closed at the end of FY 2022. Budget increased from $2.45M to $2.58M for warranty expenses and final
closeout costs.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$4 $4 $0 $0 $0 $0 $2,580
PRIOR YEARS:
TOTAL
$2,572
145
P2573
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2016 10/15/2016
10/1/2016 6/30/2017
$10
$255
PROJECT PHASE:
7/1/2017 3/1/2021 $2,315
PROJECT LOCATION:OWD Map Book:356
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
146
P2574PL - 12-Inch Pipeline Replacement, 978 Zone, Vista Vereda
Stephen Beppler
5/23/2016
P2573, P2615, P2616,
P2625
5
2
$1,785,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of approximately 0.5 miles of 12-inch potable water main within the 978 Pressure Zone (PZ) in
Vista Vereda and easements on private property. The replacement water line will vary from 2-inch to 12-inch as the water line
north of the feed from the 978 Pump Station will be changed to local distribution only. The transmission capabilities to the
western portions of the 978 PZ are being transferred to Hidden Mesa Road under CIP P2625.
JUSTIFICATION OF PROJECT:
This project will replace thin wall, 1959-60 era, steel pipe originally constructed under As-Built number 01-03. Two (2) of the
original four (4) miles of thin wall steel pipe have been replaced through separate CIP and developer projects. This pipe is
located in the Hillsdale area that has had major failures. This project will replace the pipe and relocate significant portions of the
pipe out of these backyards before a major failure.
COMMENTS:
FY 2021 - Weather during construction extended construction into Q1 of FY 2020. A one (1) year warranty period will require
keeping this project active into FY 2021.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$5 $0 $0 $0 $0 $0 $1,785
PRIOR YEARS:
TOTAL
$1,780
147
P2574
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2016 4/30/2017
5/1/2017 9/30/2018
$90
$333
PROJECT PHASE:
1/1/2019 6/30/2021 $1,362
PROJECT LOCATION:OWD Map Book:368, 369, 378
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
148
P2578PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 gpm
Stephen Beppler
5/23/2016
P2473
1
2
$16,000,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the construction of a new Pump Station to replace the existing Pump Station.
JUSTIFICATION OF PROJECT:
The existing Pump Station was de-rated in 2010 to resolve vibration and cavitation issues. The current Pump Station is not
capable of meeting the required flow rates for daily demands that are anticipated to meet growth in Villages 4, 8, 9, and 3. The
timing of this project coincides with the related development.
COMMENTS:
FY 2021 - Project budget increased from $13M to $16M to reflect current pricing.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %69 %0 %69 %
Betterment ID 22 0 %31 %0 %0 %31 %
TOTAL:0 %31 %69 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $275 $675 $2,600 $5,100 $5,100 $13,775
PRIOR YEARS:
TOTAL
$0
149
P2578
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2021 6/30/2022
10/1/2021 9/30/2024
$600
$1,400
PROJECT PHASE:
10/1/2024 6/30/2028 $14,000
PROJECT LOCATION:OWD Map Book:114
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:4/16/2020Bob Kennedy
150
P2584Res - 657-1 and 657-2 Reservoir Demolitions
Jeff Marchioro
5/23/2016
3
2
$720,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is to incorporate the existing 657 Pressure Zone into the 640 Pressure Zone, abandon and demolish the two (2) 657
Reservoirs, and modify associated 657 Zone Pressure Reducing Stations in the La Presa area.
JUSTIFICATION OF PROJECT:
Eliminating the existing 657 Pressure Zone will simplify operations, reduce operating cost, and improve reliability. These facilities
are no longer necessary and the demolishing will coordinate with the timing of the current coatings' useful life ending.
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $50 $50
PRIOR YEARS:
TOTAL
$0
151
P2584
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
12/31/2025 12/31/2030
1/1/2030 6/30/2031
$35
$35
PROJECT PHASE:
7/1/2031 6/30/2032 $650
PROJECT LOCATION:OWD Map Book:303
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
152
P2593458-1 Reservoir Interior/Exterior Coating & Upgrades
Kevin Cameron
5/23/2016
2
2
$1,050,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the interior and exterior coatings of the 458-1 Reservoir. In addition, an assessment of the facility will be
accomplished to assure compliance to all applicable codes and OSHA standards.
JUSTIFICATION OF PROJECT:
Based upon the 2013 Cathodic Assessment Report, the 458-1 Reservoir interior and exterior coatings are at the end of their
useful lives and in need of replacement.
COMMENTS:
FY 2020 - Updated budget for current bidding climate and increased material costs.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$10 $895 $110 $5 $30 $0 $1,050
PRIOR YEARS:
TOTAL
$0
153
P2593
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
2/1/2021 4/30/2021
5/1/2021 9/30/2021
$15
$65
PROJECT PHASE:
10/1/2021 7/30/2024 $970
PROJECT LOCATION:OWD Map Book:66
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:2/11/2020Kevin Cameron
154
P2594Large Meter Replacement
Andrea Carey
5/23/2016
0
1
$650,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of water meters 3-inch or larger.
JUSTIFICATION OF PROJECT:
FY 2021 - Of the 219 large meters in the ground, 105 are no longer repairable and must be replaced. Through FY 2020, a
majority of the meters have been replaced under this CIP. Staff has identified six (6) meters that will be replaced in 2020 and has
revised the CIP budget to include these.
Large meters typically have a life cycle of five (5) to seven (7) years. Based on prior replacements, staff anticipates another
round of replacements beginning in FY 2024. This includes three (3) 10-inch meters (approximately $20K each).
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$1 $1 $1 $77 $25 $60 $650
PRIOR YEARS:
TOTAL
$485
155
P2594
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2016 6/1/2019 $0
$0
PROJECT PHASE:
7/1/2016 6/30/2026 $650
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
156
P2595 PL - 16-inch, 624 Zone, Village 3N - Heritage Road, Main
St/Energy Way
Stephen Beppler
5/23/2005
P2403
2
2
$150,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for construction of approximately 1,200 feet of 16-inch pipeline within the 624 Pressure Zone (PZ) in Heritage
Road between Main Street to Energy Way. This project will be constructed by the developer and is subject to reimbursement per
Board policy. The budget reflects the upsizing of the developer required 12-inch water line to a 16-inch water line requested by
the Otay Water District for transmission capabilities within the 624 PZ.
JUSTIFICATION OF PROJECT:
This project will provide transmission capacity for development of Otay Ranch and other areas within the 624 PZ.
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Expansion 100 %0 %0 %0 %100 %
TOTAL:100 %0 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$1 $1 $1 $1 $145 $1 $150
PRIOR YEARS:
TOTAL
$0
157
P2595
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
1/1/2006 6/1/2018
7/1/2006 6/30/2018
$0
$0
PROJECT PHASE:
7/1/2019 6/30/2026 $150
PROJECT LOCATION:OWD Map Book:82
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
158
P2604AMR Change-Out
Andrea Carey
1/7/2017
R2143
0
1
$6,290,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Change out of existing Master Meter 3G registers to a combination of 3G and Allegro registers and complete meter change out
of the Otay Water District's (District) highest users of 3/4-2-inch. In addition, implement cellular reading technology for District's
temporary meters.
JUSTIFICATION OF PROJECT:
FY 2018 - Current technology is failing at a high percentage at year eleven (11). Final FY 2017 budget approved was $1.35M.
Total program budget is estimated at $10.1M (recycled (R2143) and potable), projected to be spent over six (6) years.
Also, implement cellular reading technology for District's temporary meters and any large users requesting hourly data on a
regular basis. Will pilot cell technology in FY 2018 with 20 endpoints and, if all works well, implement to all temporary meters in
FY 2019. The temporary cellular technology cost is estimated to be $75K.
FY 2019 - Master Meter has identified a manufacture defect in registers built between 2009-2013 causing them to fail at the six
(6) - eight (8) year mark. The District has approximately 15,000 of these in the ground and will need to make arrangements to
change out prior to original planned change out at year eleven (11). In addition, 2005-2008 installed registers will also need to be
changed out at year eleven (11). Staff has developed a new plan to change out all registers with a mixture of 3G (paid for under
warranty by Master Meter) and Allegro (Master Meter's latest technology) by the end of FY 2020. This shrinks the Change-Out
Program from a 7-year to a 4-year time frame. Total program budget was estimated at $10.1M (including recycled (R2143) and
potable), projected to be spent over seven (7) years. Now the total Program budget is estimated to be $6.8M (recycled and
potable).
COMMENTS:
FY 2018 - In FY 2025, the Change-Out Program will resume replacing all meters and registers. Plan to expand the Program to a
ten (10) year Change-Out Program for registers and twenty (20) year Change-Out Program for meters (with exception of high
users, which will have full meter change out every ten (10) years) at that time.
FY 2019 - Staff has developed a new plan to change out all registers by the end of FY 2020. This shrinks the Change-Out
Program from a 7-year to a 4-year time frame at $6.29M plus $525K (R2143).
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$250 $250 $40 $0 $0 $0 $6,290
PRIOR YEARS:
TOTAL
$5,750
159
P2604
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
1/1/2017 6/30/2020 $0
$0
PROJECT PHASE:
1/1/2017 6/30/2023 $6,290
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
160
P2605458/340 PRS Replacement, 1571 Melrose Ave
Stephen Beppler
5/24/2017
P2627
2
2
$750,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace existing Pressure Reducing Station (PRS) as-is without power or SCADA. Replace existing steel laterals. Construct
pressure relief with modern air gap. For cost efficiency, project will be designed and constructed together with similar PRS on
Oleander Avenue.
JUSTIFICATION OF PROJECT:
The existing 1965 era PRS has exceeded its useful life. PRS will be replaced without power or SCADA because there is
insufficient space to construct modern remote monitoring and controls within the existing right-of-way. An air gap is required by
the Health Department.
COMMENTS:
FY 2021 - Project budget increased from $475K to $750K to reflect bidding climate and detailed project scope of work.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$60 $325 $225 $40 $0 $0 $750
PRIOR YEARS:
TOTAL
$100
161
P2605
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 6/30/2018
7/1/2018 9/30/2020
$15
$110
PROJECT PHASE:
10/1/2020 6/30/2024 $625
PROJECT LOCATION:OWD Map Book:065
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
162
P2607Douglas Ave SWA and OWD Interconnection Upgrade
Stephen Beppler
5/24/2017
2
1
$50,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace existing 3-inch PRV at interconnection between Sweetwater Authority (SWA) and Otay Water District (District) with a
new 8-inch PRV. Interconnection is a one-way feed from District to SWA so SWA will cover a majority of the costs.
JUSTIFICATION OF PROJECT:
SWA requested this replacement and upgrade in PRV size to better supply their system in the event of an emergency.
COMMENTS:
FY 2021 - Design by SWA to be completed in FY 2020 Q3 with construction to begin in FY 2020 Q4. Invoicing of District share
expected in FY 2021.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$45 $0 $0 $0 $0 $0 $50
PRIOR YEARS:
TOTAL
$5
163
P2607
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 6/30/2018
7/1/2018 9/30/2019
$1
$2
PROJECT PHASE:
10/1/2019 6/30/2021 $47
PROJECT LOCATION:OWD Map Book:095
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
164
P2608PL - 8-inch, 850 Zone, Coronado Ave, Chestnut/Apple
Kevin Cameron
5/24/2017
3
2
$1,820,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Fire flows on this section of water line are below recommended rates due to the current pipe being undersized. Preferred
alternative to resolve this is to replace existing water line with about 1,300 feet of a higher pressure rated 8-inch pipeline and
provide individual residential pressure reducing valves (PRVs). 1,300 feet is the length needed to replace this section of
Coronado Avenue.
JUSTIFICATION OF PROJECT:
Existing water line is on the 657 Pressure Zone (PZ) and does not provide adequate fire protection. Moving this portion of the
water system to a higher pressure zone will resolve this issue.
COMMENTS:
FY 2018 - Issue discovered during modeling of moving the 657 PZ to the 640 PZ.
FY 2020 - 1,300 linear feet (LF) of replacement and 300 LF of new 8-inch PVC pipe (at $62/Inch/LF) extended outreach, new
PRV's is the basis for the $820K budget.
FY 2021 - The construction contract for the first phase was awarded by the Board on 3/11/2020 and the staff report for the award
of Phase I noted a budget increase for Phase II would be made during the FY 2021 budget process.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$200 $50 $100 $300 $400 $695 $1,820
PRIOR YEARS:
TOTAL
$75
165
P2608
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 6/30/2020
7/1/2020 6/30/2024
$25
$225
PROJECT PHASE:
7/1/2024 12/30/2026 $1,570
PROJECT LOCATION:OWD Map Book:303
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Bob Kennedy
166
P2609PL - 8-inch, 1004 Zone, Eucalyptus St, Coronado/Date/La Mesa
Kevin Cameron
5/24/2017
3
2
$2,100,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace existing water line through easement along Eucalyptus Street with 1,600 feet of new 8-inch water line along Coronado
Avenue, Date Street, and La Mesa Avenue.
JUSTIFICATION OF PROJECT:
Existing water line through easement along Eucalyptus Street is inaccessible, old, and has experienced leaks. Without this water
line, fire flows in the area are below recommended rates. The current pipeline in this area is failing. The recommended length is
needed to adequately serve the homes currently served by the failing pipe.
COMMENTS:
FY 2020 - 1,600 linear feet (LF) of new 8-inch PVC pipe (at $62/Inch/LF) and extended outreach is the basis for the $800K
budget.
FY 2021 - A budget increase of $500K was approved for Phase I by the Board on 3/11/2020 and the staff report for the award of
the first phase noted a budget increase for Phase II would be made during the FY 2021 budget process.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$900 $165 $25 $300 $400 $110 $2,100
PRIOR YEARS:
TOTAL
$200
167
P2609
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2018 6/30/2019
7/1/2019 3/31/2020
$25
$225
PROJECT PHASE:
4/1/2020 6/30/2026 $1,850
PROJECT LOCATION:OWD Map Book:317
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
168
P2610Valve Replacement Program - Phase 1
Kevin Cameron
5/24/2017
0
1
$2,000,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replacement of non-functioning isolation valves on the potable water system. Phase 1 is expected to replace up to twenty (20)
valves per year, and gradually increase the per year replacement to keep up with the expected life of 70 years per valve.
JUSTIFICATION OF PROJECT:
Working isolation valves are vital to the efficient operation of the water system. Life expectancy is assumed to be 70 years from
various data sources. Helix and Padre Dam currently have Valve Replacement Programs, and have seen an average
replacement cost of $20K/valve. Operations estimates that in order to keep up with the 70 year service life of the valves, we
need to eventually replace 300 valves/year.
COMMENTS:
FY 2020 - Increased the overall budget to have an annual valve replacement program.
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$100 $175 $400 $400 $400 $400 $1,905
PRIOR YEARS:
TOTAL
$30
169
P2610
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 6/30/2018
7/1/2018 6/30/2021
$75
$350
PROJECT PHASE:
7/1/2021 6/30/2026 $1,575
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
170
P2611Quarry Road Bridge Replacement and Utility Relocation
Kevin Cameron
5/24/2017
3
2
$3,600,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace existing water main crossing with new bridge construction.
JUSTIFICATION OF PROJECT:
New bridge construction requires replacement of the water main.
COMMENTS:
FY 2020 - Added $300K for temporary bypass during construction and used current bidding rates.
FY2021 - The County's design is at 70%, but the County is delaying the project and looking at alternative designs per a request
from Supervisor Jacobs. Moved budget into future years.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $10 $10 $10 $10 $210 $400
PRIOR YEARS:
TOTAL
$125
171
P2611
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 6/30/2024
7/1/2024 6/30/2027
$35
$340
PROJECT PHASE:
7/1/2027 8/31/2029 $3,225
PROJECT LOCATION:OWD Map Book:197
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
172
P2612PL - 12-inch, 711 Zone, Paso de Luz/Telegraph Canyon Rd
Kevin Cameron
5/24/2017
4
2
$1,250,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replacement of approximately 275 Linear Feet of existing 12-inch water line located in a steep slope easement with a new water
line located within right-of-way.
JUSTIFICATION OF PROJECT:
The pipe is currently leaking and needs to be replaced. A 12-inch water line is needed to meet flow requirements and will remain
in the same alignment.
COMMENTS:
FY 2021 - Budget amount revised to reflect full replacement with CML&C pipe.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$75 $500 $350 $90 $55 $60 $1,250
PRIOR YEARS:
TOTAL
$120
173
P2612
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 6/30/2019
7/1/2019 12/31/2020
$20
$175
PROJECT PHASE:
1/1/2021 12/31/2025 $1,055
PROJECT LOCATION:OWD Map Book:096
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/13/2020Jolene Fielding
174
P2614485-1 Reservoir Interior/Exterior Coating
Kevin Cameron
5/24/2017
4
3
$1,150,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the interior and exterior coatings of the 485-1 Reservoir. In addition, an assessment of the facility will be
accomplished to assure compliance to all applicable codes and OSHA standards.
JUSTIFICATION OF PROJECT:
Based upon the current Cathodic Assessment Report, the interior and exterior coatings on the 485-1 Reservoir are nearing the
end of their useful lives and are in need of replacement.
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$0 $0 $20 $800 $200 $130 $1,150
PRIOR YEARS:
TOTAL
$0
175
P2614
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
1/1/2023 5/31/2023
6/1/2023 10/3/2023
$15
$65
PROJECT PHASE:
10/4/2023 6/30/2025 $1,070
PROJECT LOCATION:OWD Map Book:112
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:4/16/2020Bob Kennedy
176
P2615PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande
Stephen Beppler
5/24/2017
5
2
$2,600,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of approximately 0.5 miles (2,750 ft +/-) of 12-inch and 14-inch potable water main within the
803 and 978 Pressure Zones (PZ) in Vista Grande. Project extends from Townsend Place to the 978-1 Pump Station (PS) site in
the 803 Pressure Zone (PZ) and from the 978-1 PS site to Paseo Grande in the 978 PZ.
JUSTIFICATION OF PROJECT:
This project will replace thin wall, 1959-60 era, steel pipe originally constructed under As-Built number 01-03. Two (2) of the
original four (4) miles of thin wall steel pipe have been replaced through separate CIP and developer projects. The remaining
2.1 miles of pipe have developed several water main breaks including semi-localized coating failures and corrosion of the thin
wall steel can. This is the last of the projects for this pipeline replacement.
COMMENTS:
FY 2020 - The County resealed this section of Vista Grande in December 2018, which has a three (3) year moratorium before the
Otay Water District can disturb the road without having to perform a full width restoration. As potholing will be required during
the design phase, the project has been delayed past the preliminary design phase until FY 2022.
FY 2021 - The project is located close to an elementary school that will restrict working hours during the school year, increasing
the construction cost due to lower productivity per day.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$10 $250 $600 $1,500 $100 $100 $2,600
PRIOR YEARS:
TOTAL
$40
177
P2615
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2018 6/30/2021
7/1/2021 9/30/2022
$50
$450
PROJECT PHASE:
10/1/2022 6/30/2026 $2,100
PROJECT LOCATION:OWD Map Book:368
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
178
P2616PL - 12-Inch Pipeline Replacement, 978 Zone, Pence Dr/Vista
Sierra Dr
Kevin Cameron
5/24/2017
P2573, P2574, P2615,
P2625
5
1
$4,200,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement of approximately 0.4 miles of 14-inch steel potable water main within the 978 Pressure Zones
(PZ) in Pence Drive, Vista Sierra Drive, and easements on private property east of Vista Grande. Replacement length of 12-inch
and 8-inch water lines increased to 4,700 feet (900 ft of 8-inch on 1200 PZ and 3,800 ft of 12-inch on 978 PZ) to relocate lines
outside of inaccessible easements and resolve low pressure services.
JUSTIFICATION OF PROJECT:
This project will replace thin wall, 1959-60 era, steel pipe originally constructed under As-Built number 01-03. Two (2) of the
original four (4) miles of thin wall steel pipe have been replaced through separate CIP and developer projects. The remaining 2.1
miles of pipe have developed several breaks and leaks and will be replaced under CIPs P2573, P2574, P2615, and P2625.
COMMENTS:
FY 2021 - Based upon latest construction bid costs and scope of work, budget increased from $3.3M to $4.2M.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$425 $1,100 $1,400 $900 $25 $150 $4,200
PRIOR YEARS:
TOTAL
$200
179
P2616
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 9/30/2019
10/1/2019 1/31/2021
$30
$370
PROJECT PHASE:
2/1/2021 6/30/2024 $3,800
PROJECT LOCATION:OWD Map Book:378
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:4/5/2020Bob Kennedy
180
P2617Lobby Security Enhancements
Kent Payne
5/24/2017
3
1
$225,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Redesign and install new customer service counter with enhanced security features; reconfigure the public service desk to
include security enhancements along with an enlarged and secured adjoining conference room; replace Finance and
Engineering double-doors with new secured glass doors.
JUSTIFICATION OF PROJECT:
This project will add security features to the Otay Water District’s public lobby in the form of bullet resistant barriers and glass and
work areas with sufficient protection to allow staff to retreat to a safe location should a dangerous encounter present itself.
COMMENTS:
FY 2019 - Project construction budget increased $75K to $150K.
FY 2020 - Budget increased from $150K t o $225K to include minor lobby remodeling and outfitting with customer interactive
informational technologies.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$20 $20 $20 $20 $0 $0 $225
PRIOR YEARS:
TOTAL
$145
181
P2617
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 6/30/2018
7/1/2017 6/30/2018
$5
$10
PROJECT PHASE:
7/1/2018 6/30/2024 $210
PROJECT LOCATION:OWD Map Book:318
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
182
P2619PS - Temporary Lower Otay Pump Station Redundancy
Jeff Marchioro
5/24/2017
P2579
1
1
$3,300,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Add a second pump to the temporary Lower Otay Pump Station (TLOPS) to provide redundancy to the existing single trailer
mounted pump. Project involves site work, yard piping, replacement of a 30-inch flow meter and adjoining piping due to internal
deterioration, instrumentation and controls, and security improvements.
JUSTIFICATION OF PROJECT:
A second redundant pump is needed to serve as backup to the existing pump at TLOPS. The existing diesel pump engine has
recently failed during a SDCWA Aqueduct shutdown. Aqueduct shutdowns may occur for routine maintenance or emergencies.
With the exception of portable trailer pumps, which can be deployed at the Telegraph Canyon site, TLOPS is the only potable
water supply to the District's central and south service areas during Aqueduct shutdowns. TLOPS has a much higher capacity
(12,500 gpm) compared to the potable trailer pumps deployed at Telegraph Canyon (5,000 gpm).
COMMENTS:
FY2021 - Project budget increased from $2.9M to $3.3M to reflect Board approved budget increase for construction contract
award at July 3, 2019 Board Meeting ($0.3M) and increase for construction phase contingency ($0.1M).
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %69 %0 %0 %69 %
New Water Supply Fee
Projects
0 %0 %0 %31 %31 %
TOTAL:0 %69 %0 %31 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$500 $200 $200 $0 $0 $0 $3,300
PRIOR YEARS:
TOTAL
$2,400
183
P2619
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 6/30/2018
3/1/2018 8/31/2019
$150
$250
PROJECT PHASE:
9/1/2019 6/30/2023 $2,900
PROJECT LOCATION:OWD Map Book:070
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
184
P2623Central Area to Otay Mesa Interconnection Pipelines
Combination Air/Vacuum Valve Replacements
Jeff Marchioro
5/24/2017
P2083
2
2
$600,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace approximately sixty (60) existing 4-inch combination air/vacuum valves with surge type (slow closing) combination
air/vacuum valves on the Central Area to Otay Mesa Interconnection Pipelines. Replace existing valve enclosures as needed.
Relocate approximately thirteen (13) existing air/vacuum valves located in vaults to an above ground location.
JUSTIFICATION OF PROJECT:
A transient surge analysis for the new 870-2 Pump Station project identified existing combination air/vacuum valves, which need
to be replaced with surge type (slow closing) valves. Existing air/vacuum valve enclosures will need to be replaced since some
are corroded and others are too short for the taller replacement valves. This will reduce the risk of damage to existing
infrastructure that could lead to pipe failure. Existing air/vacuum valves located in vaults should be relocated to an above ground
location per current health department requirements.
COMMENTS:
FY 2020 - Project budget increased from $270K to $500K to include relocation of thirteen (13) existing air/vacuum valves located
in vaults to an above ground location.
FY 2021 - Project budget increased from $500K to $600K to reflect current pricing.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$30 $300 $10 $0 $0 $0 $600
PRIOR YEARS:
TOTAL
$260
185
P2623
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 9/30/2017
10/1/2017 6/30/2021
$50
$130
PROJECT PHASE:
7/1/2018 6/30/2023 $420
PROJECT LOCATION:OWD Map Book:055
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
186
P2625PL - 12-inch, 978 Zone, Hidden Mesa Road
Stephen Beppler
11/1/2017
P2574
5
1
$2,210,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replacement of approximately 3,000 linear feet of 8-inch and 10-inch potable water line with a new 12-inch water main to serve
as the primary transmission main to the western portions of the 978 Pressure Zone (PZ) in the Hillsdale area.
JUSTIFICATION OF PROJECT:
The existing 12-inch water line along Vista Vereda and Hidden Mesa Trail providing transmission capabilities to the western
portions of the 978 PZ was constructed in 1959 through easements that are difficult to access, pose maintenance issues, and
present risks to the adjoining properties. This line is at the end of its useful life and analysis for the replacement of the pipeline
was performed under CIP P2574. An alternative project was selected to replace the pipeline with the portion in Vista Vereda to
be converted to a local distribution system with reduced reach and upsizing of the water line in Hidden Mesa Road to 12-inch to
handle transmission duties. This alternative provides the lowest risk to the Otay Water District while providing the best
maintenance access with long-term cost savings. This separate CIP was established for the Hidden Mesa Road portion of the
work.
COMMENTS:
Project completion is expected in FY 2020 Q3. Project completion is expected in FY 2020 Q3. Warranty period to extend for one
year.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$10 $0 $0 $0 $0 $0 $2,210
PRIOR YEARS:
TOTAL
$2,200
187
P2625
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2017 12/31/2017
1/1/2018 6/30/2018
$1
$211
PROJECT PHASE:
7/1/2018 6/30/2021 $1,998
PROJECT LOCATION:OWD Map Book:368,369
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
188
P2626803-4 Reservoir Water Quality Improvements – PAX System
Purchase
Lisa Coburn-Boyd 5
1
$325,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Purchase of a PAX System that includes an internal mixer for the Reservoir and a Residual Control System (RCS) (chemical
feed) in a permanent enclosure to improve the water quality within the 803-4 Reservoir and the downline 978-1 and 1200-1
Reservoirs.
JUSTIFICATION OF PROJECT:
The 803-4 Reservoir has experienced frequent nitrification events that have required increased Operations staff time to maintain
the water quality. These events also impact the water quality in the downstream Reservoirs that it feeds, the 978-1, and at the
end of the line, the 1200-1 Reservoir. Due to the increasing frequency of these nitrification events, Operations staff conducted a
pilot test of the PAX mixer and RCS system at the 803-4 Reservoir and entered into a rental agreement with the local supplier of
the equipment to use at the Reservoir. Results were initially mixed until the system was fine-tuned. The most recent results are
positive, resulting in improved water quality and a decrease of staff time that has been required to deal with water quality issues
at the Reservoir.
COMMENTS:
FY 2020 - There are several other Reservoirs that experience nitrification events on a regular basis and require substantial
Operations staff time to maintain water quality. These Reservoirs, which include the 944-2 Reservoir and end of the line
Reservoirs such as the 1090-1, 1200-1, and the 1485-2, could also benefit from the PAX System technology. This initial
installation will provide information about the use of this technology at these other sites. CIPs for these other sites will be added
in FY 2022 CIP budget.
This budget is based on a proposal the Otay Water District received for the 803-4 Reservoir for mixer, reservoir control system,
including water quality analyzer, sodium hypochlorite and ammonia feed skids and chemical storage tanks, and a pre-fabricated
building for $192K. Onsite improvements to pour the slab, electrical connections, SCADA, communications, and sample and
return chemical feed lines are $58.2K. Freight charges are $7.9K and taxes are $15K for a total construction cost of $273.1K with
the balance of the budget for inspection and contingencies.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %100 %0 %0 %100 %
TOTAL:0 %100 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $50 $50 $25 $0 $0 $325
PRIOR YEARS:
TOTAL
$175
189
P2626
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2019 9/30/2019
10/1/2019 3/31/2020
$5
$5
PROJECT PHASE:
4/1/2020 6/30/2024 $315
PROJECT LOCATION:OWD Map Book:307, 322, 369
2021 2022 2023 2024 2025 2026 Total
$0 $1,500 $1,500 $1,500 $0 $0 $4,500
$200 $200 $200 $200 $0 $0 $800
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Bob Kennedy
190
P2627458/340 PRS Replacement, 1505 Oleander Avenue
Stephen Beppler
5/21/2018
P2605
2
1
$750,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace existing Pressure Reducing Station (PRS) as-is without power or SCADA. Replace existing steel laterals. Construct
pressure relief with modern air gap. For cost efficiency, project will be designed and constructed together with a similar PRS on
Melrose Avenue.
JUSTIFICATION OF PROJECT:
The existing 1965 era PRS has exceeded its useful life. PRS will be replaced without power/SCADA because there is insufficient
space to construct modern remote monitoring and controls within the existing right-of-way. An air gap is required by the Health
Department.
COMMENTS:
FY 2021 - Project budget increased from $475K to $750K to reflect bidding climate and detailed project scope of work.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$60 $325 $225 $15 $0 $0 $750
PRIOR YEARS:
TOTAL
$125
191
P2627
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2018 9/30/2020
$2
$148
PROJECT PHASE:
10/1/2020 6/30/2024 $600
PROJECT LOCATION:OWD Map Book:065
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
192
P2630624-3 Reservoir Automation of Chemical Feed System
Kevin Cameron
5/21/2018
1
2
$625,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is to standardize the disinfection station located at the 624-3 Reservoir. The 624-3 Reservoir is a 30 million gallon
potable storage and disinfection facility located in Chula Vista that receives water from Water Authority FCF #12, which is then
pumped and/or gravity fed to other reservoir facilities to meet water demands. The 624-3 Reservoir has a boosting disinfection
station that is able to bring up the chlorine residual to a more stable and higher residual that will endure throughout the
distribution system to maintain water quality. The chlorine and ammonia pumps are manually operated and must be adjusted
every time a flow change is requested from San Diego County Water Authority. This process is usually done once per day and it
takes about an hour to complete.
JUSTIFICATION OF PROJECT:
The Otay Water District (District) currently has two (2) other disinfection facilities in operation that are automated with chemical
pumps that automatically adjust to achieve the desired chlorine residual to maintain water quality and meet EPA and State
requirements. This allows the Water System Operators to have the flexibility of requesting flow changes and not physically be at
the disinfection facility, but rather monitor remotely via SCADA and respond if needed. This project will automate the chemical
delivery system and will provide the Water System Operators more operational flexibility, increase efficiency, and reduce
operational costs and overtime.
COMMENTS:
FY 2020 - Automating the chemical system at the 624-3 Reservoir is considered as an option as it will standardize the operation
of the disinfection system throughout the District. Updated budget for current bidding climate and increased material costs.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %100 %0 %0 %100 %
TOTAL:0 %100 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $175 $300 $5 $65 $50 $625
PRIOR YEARS:
TOTAL
$5
193
P2630
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
4/1/2020 12/31/2020
1/1/2021 10/29/2021
$20
$125
PROJECT PHASE:
11/1/2022 6/30/2026 $480
PROJECT LOCATION:OWD Map Book:114
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
194
P26311485-2 Reservoir Interior/Exterior Coating & Upgrades
Kevin Cameron
5/21/2018
5
3
$1,250,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the interior and exterior coatings of the 1485-2 Reservoir. In addition, an assessment of the facility will be
accomplished to assure compliance to all applicable codes and OSHA standards.
JUSTIFICATION OF PROJECT:
Based upon the current Cathodic Assessment Report, the interior and exterior coatings on the 1485-2 Reservoir are nearing the
end of their useful lives and are in need of replacement. The Reservoir was constructed in 2006 and has never been recoated.
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$0 $0 $5 $40 $500 $705 $1,250
PRIOR YEARS:
TOTAL
$0
195
P2631
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
2/1/2023 4/30/2023
5/1/2023 10/31/2024
$20
$65
PROJECT PHASE:
11/1/2024 6/30/2026 $1,165
PROJECT LOCATION:OWD Map Book:336
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
196
P2638Buildings and Grounds Refurbishments
Kent Payne
5/21/2018
3
1
$114,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Throughout the Administration and Operations main campus, replace deteriorated irrigation systems; upgrade and calibrate
irrigation controls for optimal water usage; replace eroded slope areas along customer driveway, public and employee parking,
and equipment lots; install hard and soft ground cover for effective erosion control; remove and replace dead and dying trees;
restore plantings based on original architectural material schedules.
JUSTIFICATION OF PROJECT:
Much of the existing irrigation systems, remaining plants, and hardscape at the Administration campus are the from the original
1998 construction and are in need of replacement and replanting. The slopes along driveways and parking areas have eroded,
undermining sidewalks, fence posts, and other landscape materials. Age and drought have compromised several trees and
other original plantings. The result is a deteriorating appearance in public facing and employee surroundings throughout the
main campus.
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $50 $14 $0 $0 $0 $114
PRIOR YEARS:
TOTAL
$25
197
P2638
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
$0
$0
PROJECT PHASE:
7/1/2018 6/30/2023 $114
PROJECT LOCATION:OWD Map Book:318
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:3/27/2020Bob Kennedy
198
P2639Vista Diego Hydropneumatic Pump Station Replacement
Jeff Marchioro
5/21/2018
5
3
$2,800,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace the existing Hydropneumatic Pump Station (PS) which serves the small 1530 Pressure Zone (PZ) containing
approximately thirty-five (35) potable water meters and four (4) hydrants.
JUSTIFICATION OF PROJECT:
The original 1966 era PS was retrofitted with a fire pump in the late 1980's, at which time all electrical gear was replaced and a
generator was installed. The existing PS has an ongoing water quality (entrained air) issue observed within the PS and the small
1530 PZ it serves. The existing PS is nearing the end of its useful life.
COMMENTS:
FY 2020 - Project budget increased from $2.5M to $2.8M to reflect current pricing. Replacement of the generator will be done
through a separate CIP.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$50 $150 $900 $1,500 $175 $0 $2,800
PRIOR YEARS:
TOTAL
$25
199
P2639
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2018 6/30/2021
7/1/2021 9/30/2021
$25
$425
PROJECT PHASE:
10/1/2021 6/30/2025 $2,350
PROJECT LOCATION:OWD Map Book:322
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
200
P2640Portable Trailer Mounted VFD Pumps
Jeff Marchioro
5/21/2018
P2533, P2567
0
2
$550,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Procure a custom portable trailer fitted with a multistage centrifugal variable frequency drive (VFD) pump package.
JUSTIFICATION OF PROJECT:
The trailer would provide a means to avoid disruption of water service while taking existing critical facilities offline for extended
periods of time. The trailer will be designed for deployment at four (4) existing Hydropneumatic Pump Stations and three (3)
existing small Pressure Zones each fed by a single gravity reservoir with no redundancy.
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$30 $0 $0 $0 $0 $0 $550
PRIOR YEARS:
TOTAL
$520
201
P2640
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2018 3/1/2019
3/1/2019 9/30/2019
$20
$30
PROJECT PHASE:
10/1/2019 6/30/2021 $500
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:1/29/2020Jeff Marchioro
202
P2642Rancho Jamul Pump Station Replacement
Jeff Marchioro
5/21/2018
P2040, P2641
5
2
$2,500,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Replace the existing Hydropneumatic Pump Station (PS) with a new PS coordinated with a separate CIP P2040 (1655-1
Reservoir) project. The existing PS currently serves approximately twenty-five (25) meters and eleven (11) hydrants.
JUSTIFICATION OF PROJECT:
The existing 1655 Pressure Zone will change from a closed Hydropneumatic system to a gravity system when the future 1655-1
Reservoir is constructed (CIP 2040). The existing Rancho Jamul Hydropneumatic PS will need to be modified to pump to the
future 1655-1 Reservoir. The existing 1979 era PS is nearing the end of its useful life.
COMMENTS:
FY 2020 - An assessment of the existing PS will be prepared before the design for the replacement PS begins and rescheduled if
needed. Replacement of this PS may be facilitated by the procurement of a Portable Trailer Mounted Variable Frequency Drive
Pump (CIP P2640).
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Expansion 31 %0 %0 %0 %31 %
Betterment ID 22 0 %69 %0 %0 %69 %
TOTAL:31 %69 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$5 $5 $165 $725 $1,050 $500 $2,455
PRIOR YEARS:
TOTAL
$5
203
P2642
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2018 6/30/2023
7/1/2021 9/30/2023
$30
$370
PROJECT PHASE:
10/1/2023 6/30/2026 $2,100
PROJECT LOCATION:OWD Map Book:206
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:4/5/2020Bob Kennedy
204
P2646North District Area Cathodic Protection Improvements
Jeff Marchioro
5/21/2018
P2508
5
3
$1,200,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement and repairs of existing cathodic protection systems on various potable pipelines in the North
District.
JUSTIFICATION OF PROJECT:
The ongoing Cathodic Protection Program efforts have identified various pipelines for anode replacement, cathodic test station
repairs, installation of isolation kits, and repair of existing anode beds. This CIP has been budgeted based on recommendations
and cost estimates found in the Otay Water District’s Cathodic Protection Program 2015 Annual Report. Up to twenty-five (25)
cathodic protection systems may be repaired under this CIP.
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$25 $125 $325 $450 $275 $0 $1,200
PRIOR YEARS:
TOTAL
$0
205
P2646
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2019 6/30/2021
7/1/2020 6/30/2022
$100
$200
PROJECT PHASE:
7/1/2022 6/30/2024 $900
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
206
P2647Central Area Cathodic Protection Improvements
Jeff Marchioro
5/21/2018
P2508
1
3
$1,300,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement and repairs of existing cathodic protection systems on various potable pipelines in the Central
Area.
JUSTIFICATION OF PROJECT:
The ongoing Cathodic Protection Program efforts have identified various pipelines for anode replacement, cathodic test station
repairs, installation of isolation kits, and repair of existing anode beds. This CIP has been budgeted based on recommendations
and cost estimates found in the Otay Water District’s Cathodic Protection Program 2015 Annual Report. Up to twenty-eight (28)
cathodic protection systems may be repaired under this CIP.
COMMENTS:
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$5 $25 $45 $275 $500 $350 $1,200
PRIOR YEARS:
TOTAL
$0
207
P2647
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2020 6/30/2022
7/1/2021 6/30/2023
$100
$200
PROJECT PHASE:
7/1/2023 6/30/2028 $1,000
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
208
P2648Otay Mesa Area Cathodic Protection Improvements
Jeff Marchioro
5/21/2018
P2508
2
2
$700,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project is for the replacement and repairs of existing cathodic protection systems on various potable pipelines in the Otay
Mesa Area.
JUSTIFICATION OF PROJECT:
The ongoing Cathodic Protection Program efforts have identified various pipelines for anode replacement, cathodic test station
repairs, installation of isolation kits, and repair of existing anode beds. This CIP has been budgeted based on recommendations
and cost estimates found in the Otay Water District’s Cathodic Protection Program 2015 Annual Report. Up to fifteen (15)
cathodic protection systems may be repaired under this CIP.
COMMENTS:
FY 2021 - Project budget increased from $430K to $700K to reflect current scope and pricing.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$200 $250 $50 $40 $0 $0 $700
PRIOR YEARS:
TOTAL
$160
209
P2648
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2018 6/30/2020
7/1/2019 6/30/2021
$40
$130
PROJECT PHASE:
7/1/2021 6/30/2024 $530
PROJECT LOCATION:OWD Map Book:
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
210
P2649HVAC Equipment Purchase
Kent Payne
5/21/2018
3
1
$130,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
This project provides funding for the capital purchase of replacement heating, ventilation, and air conditioning (HVAC) roof top air
handling units (RTU) for the Administration building that were installed in 1998.
JUSTIFICATION OF PROJECT:
Replacement HVAC equipment will be used for administrative functions.
COMMENTS:
FY 2019 - The HVAC system RTUs have reached the end of their useful lives and need to be replaced. The schedule and
estimated cost for the replacement of these units will be done over several years.
Unit # Location Install Date Replacement Year (FY) Estimate
RTU 4 Board Room 1998 2019 $21,000
AC-2 Accounting 1998 2020 $22,000
AC-4 Finance 1998 2020 $22,000
RTU 8 Training Room 1998 2021 $20,000
RTU 7 Lunchroom 1998 2022 $15,000
RTU 6 Gym Area 1998 2023 $15,000
RTU 9 Computer Training 1998 2023 $15,000
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Replacement 0 %0 %100 %0 %100 %
TOTAL:0 %0 %100 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$20 $15 $30 $40 $0 $0 $130
PRIOR YEARS:
TOTAL
$25
211
P2649
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
$0
$0
PROJECT PHASE:
7/1/2018 6/30/2024 $130
PROJECT LOCATION:OWD Map Book:318
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
212
P2652520 to 640 Pressure Zone Conversion
Kevin Cameron
6/5/2019
P2502, P2503
5
2
$250,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Update the 2004 design report for the conversion of the 520 Pressure Zone (PZ) to 640 HGL to look at existing pipeline pressure
class, the approximately seventy-seven (77) commercial and multi-family potable water service connections, and the 832-1 Pump
Station (PS) modifications needed to convert this PZ. The report will also study the emergency storage requirements for this PZ
and make recommendations for both the 5.1 MG 520-2 and the 20 MG 520-3 Reservoirs.
JUSTIFICATION OF PROJECT:
The 5.1 MG 520-2 Reservoir Interior/Exterior Coatings and Upgrade project (P2566) is scheduled for construction in FY 2021.
The northern service area of the District has sufficient storage so staff is recommending to cancel this $1.5M CIP and to spend
this savings to study this PZ conversion. The 850-2 and 803-1 PSs have already been modified to operate under the 640 HGL
suction pressure. Adding a third PS to take suction from the higher pressure will also save energy costs.
COMMENTS:
FY 2020 - The 2004 design report suggested the 832-1 PS could be modified to take 640 HGL suction pressures by removing
one of four stages in the vertical turbine pumps. There are two (2) full diameter impellers and two (2) trimmed impellers in each
pump at this station. One (1) full diameter impeller would need to be taken out to operate under the 640 HGL suction pressure.
The pumps were estimated to operate at an efficiency of 85% and at the time this 2004 design report was prepared was
estimated to have a rated capacity of 2650 gpm @ 252' TDH. If converted, the pumps will not be able to take 520 HGL suction
pressure. Since the 832-1 PS presently has three (3) pumps with the capability to add three (3) additional pumps, the station
could be converted to have two (2) pumps operate from the 520 HGL suction pressure and four (4) pumps operate from the 640
HGL suction pressure or vice versa.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %100 %0 %0 %100 %
TOTAL:0 %100 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$60 $85 $10 $10 $10 $55 $250
PRIOR YEARS:
TOTAL
$20
213
P2652
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2019 3/31/2020
4/1/2020 6/30/2021
$20
$60
PROJECT PHASE:
7/1/2021 6/30/2025 $170
PROJECT LOCATION:OWD Map Book:331, 343
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
214
P26531200 Pressure Zone Improvements
Jeff Marchioro
6/5/2019
5
1
$650,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Complete the hydraulic modeling with the 1200-1 Pump Station (PS) temporarily operating as a Hydropneumatic PS to
recommend improvements. Existing pipelines would need to be replaced (approximately 1,100 linear feet (LF) of existing 8-inch
transmission main to 12- or 16-inch diameter), but the benefit would only be temporary so staff will be contacting the Fire
Department to notify them of reduced fire flow in this pressure zone (PZ) during the recoating and relining of the 1200-1
Reservoir in FY 2021. This project will replace the existing 1200-1 PS below grade 10-inch CMLC discharge header with a new
above grade discharge header, replace the existing 1200-1 PS pressure relief bypass, add connections for Portable Trailer
Mounted Variable Frequency Drive (VFD) Trailer Pump (CIP P2640), and replace non-operable valves at the 1200-1 PS site.
JUSTIFICATION OF PROJECT:
The existing 8-inch transmission main appears undersized for current operations and not ideal for operating the 1200 PZ as a
Hydropneumatic system during the planned 1200-1 Reservoir Interior & Exterior Coatings (CIP P2533) work. It is not cost
effective to replace 1,100 LF of pipeline to provide a temporary benefit during the next maintenance cycle for the 1200-1
Reservoir. A temporary repair completed by Operations within the confines of a small vault immediately adjacent to the 1200-1
PS discharge header has a short life expectancy and needs to be replaced. The existing pressure relief bypass has reached the
end of its useful life. The VFD Trailer Pump (CIP P2640) will be deployed at the 1200-1 PS site during the recoating and relining
of the 1200-1 Reservoir (CIP P2533) in FY 2021.
COMMENTS:
FY2021 - Project budget increased from $325K to $650K to reflect current scope and pricing of project split in two (2) phases.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %100 %0 %0 %100 %
TOTAL:0 %100 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$150 $200 $75 $0 $0 $0 $650
PRIOR YEARS:
TOTAL
$225
215
P2653
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2019 9/30/2019
10/1/2019 7/31/2020
$10
$100
PROJECT PHASE:
1/1/2020 12/31/2022 $540
PROJECT LOCATION:OWD Map Book:369,377,378
2021 2022 2023 2024 2025 2026 Total
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:5/14/2020Jolene Fielding
216
P2654Heritage Road Interconnection Improvements
Jeff Marchioro
6/5/2019
2
1
$200,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Amend or replace existing interconnection agreement with the City of San Diego with a new agreement to provide flow to the
Otay Water District (District). Move the City’s existing controls/SCADA cabinet from the below grade vault above ground.
Restore the District’s monitoring/SCADA equipment above ground.
JUSTIFICATION OF PROJECT:
A District trailer pump deployed at the intersection of Otay Mesa Road and Heritage Road would become the sole backup to the
existing High/Low Head Pump Stations (and future 870-2 Pump Station) to serve the 870-1 (Upper) Reservoir. The existing
interconnect was constructed and funded by the City for the benefit of the City in 2002. The existing interconnect was built with
pump connections for the District; however, the existing interconnect agreement was silent on flow to the District. The City’s
controls/SCADA gear within a cabinet (e.g., PLC, radio, Cla-Val 131VC controllers) is insecurely held by a rope and should be
moved above ground to reduce risk of damage due to flooding. The contents of the District’s monitoring/SCADA cabinet were
stripped from the facility.
COMMENTS:
FY 2020 - The District will take the lead on the design/bidding/construction effort and provide 100% of the funding since the
District did not fund the original interconnect.
FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total
Betterment ID 22 0 %100 %0 %0 %100 %
TOTAL:0 %100 %0 %0 %100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2021 2022 2023 2024 2025 2026 Total
$10 $85 $85 $0 $0 $0 $200
PRIOR YEARS:
TOTAL
$20
217
P2654
PROJECT SCHEDULE:
PLANNING:
DESIGN:
CIP Number:
ESTIMATED
START DATE
ESTIMATED
FINISHED DATE
ESTIMATED
COST (X $1,000):
CONSTRUCTION:
7/1/2019 6/30/2020
$0
$65
PROJECT PHASE:
7/1/2021 6/30/2023 $135
PROJECT LOCATION:OWD Map Book:022
2021 2022 2023 2024 2025 2026 Total
$0 $0 $1,500 $1,500 $1,500 $0 $4,500
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($):
MAINT:
ENERGY:
CHEMICAL:
Submitted By:Date:1/29/2020Jeff Marchioro
218
P2655La Presa Pipeline Improvements
Kevin Cameron 3
2
$1,750,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Determine the remaining useful life of existing AC pipelines installed in 1959 and develop a strategy for the improvement of the
water system that serves the area between Kempton Street, Grand Avenue, Jamacha Road, and San Francisco Street.
Improvements will include the replacement of gate valves (estimated 47 valves) and 6-inch AC pipelines (approximately 1,000
linear feet) with 8-inch PVC pipelines to improve fire flow in this area. Also, included is a pipeline