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Home My WebLink About06-21-23 F&A Committee Packet 1 OTAY WATER DISTRICT FINANCE AND ADMINISTRATION COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM WEDNESDAY June 21, 2023 12:00 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JU- RISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA DISCUSSION ITEMS 3. ADOPT ORDINANCE NO. 590 TO APPROVE PROPOSED CHANGES TO VARIOUS FEES, CHARGES, AND DEPOSITS BY AMENDING APPENDIX A AND SECTION 31, CONSTRUCTION WATER SERVICE; AND ADOPT RESOLUTION NO. 4434 AMENDING POLICY NO. 54, DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS, OF THE DISTRICT’S CODE OF ORDINANCES TO BE EFFECTIVE SEPTEMBER 1, 2023 (CAREY) [5 minutes] 4. ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM UPGRADE UPDATE (KERR) [5 minutes] 5. ADJOURNMENT BOARD MEMBERS ATTENDING: Tim Smith, Chair Ryan Keyes All items appearing on this agenda, whether or not expressly listed for action, may be delib- erated and may be subject to action by the Board. 2 The agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the agenda and attachments are also available by contacting the District Secretary at (619) 670- 2253. If you have any disability which would require accommodations to enable you to participate in this meeting, please call the District Secretary at 670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on June 16, 2023, I posted a copy of the foregoing agenda near the regu- lar meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on June 16, 2023. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 5, 2023 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Adopt Ordinance No. 590 to Approve the Proposed Changes to Various Fees, Charges, and Deposits by Amending Appendix A and Section 31, Construction Water Service; and Adopt Resolution No. 4434 Amending Policy No. 54, Discontinuation of Water Service for Delinquent Accounts, of the District’s Code of Ordinances to be Effective September 1, 2023 GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 590 to approve the proposed changes to various fees, charges, and deposits by amending Appendix A and Section 31, Construction Water Service; and adopt Resolution No. 4434 Amending Policy No. 54, Discontinuation of Water Service for Delinquent Accounts, of the District’s Code of Ordinances to be effective September 1, 2023. COMMITTEE ACTION: See Attachment A. PURPOSE: To present to the Board, for consideration, proposed changes to various fees, charges, and deposits listed in Appendix A and request that the Board approve those changes by adopting Ordinance No. 590, approving proposed changes to Appendix A and Section 31; and by adopting Resolution No. 4434, amending Policy No. 54. AGENDA ITEM 3 ANALYSIS: Periodically, the District analyzes fees to ensure all costs are recovered from the individual(s) benefiting from the service performed. In addition, staff reviews common deposits required by customers to verify if they are appropriate for the current period. The previous review was completed in 2019, therefore, sufficient time has passed to warrant another evaluation. Staff has prepared a cost analysis of various District fees, charges, and deposits as outlined in Appendix A and updates are recommended. The following sections will further explain these recommendations. Proposed Fee and Charge Changes For each fee, the amount of staff time spent on the activity was determined. Pertinent staff members were consulted to establish the average time spent completing each task in the field as well as any time spent in the office that was directly related to completing each task. Additionally, payroll personnel were asked to provide fully loaded labor rates. Using these labor rates and the average time spent to complete a specific task, staff then determined the overall cost required to perform each service. To ensure financial equity to all rate payers, staff is recommending changes to the following fees and charges effective September 1, 2023, as shown in the table below. Code Numbers Item Current Fees Proposed Fees 23.04 Backflow Certification Third Notification (hand delivered) $45.00 $60.00 Reconnection $50.00 $60.00 Reconnection (if test performed with technician present) $150.00 $180.00 31.03 A.4. Temporary Meter Install & Removal .75"- 4" (on hydrant) $150.00 $240.00 4"- 6" $806.00 $960.00 31.03 A.5. Temporary Meter Move Fee (includes backflow certification) .75"- 4" (on hydrant) $150.00 $180.00 4"- 6" $806.00 $960.00 34.02 C Meter Lock Charge $50.00 $60.00 72.04 A.1. Locking or Removing Damaged or Tampered Meters To Pull and Reset Meter .75"- 2" $200.00 $250.00 Broken Lock/Locking Device .75"- 1" $68.00 $80.00 Policy 54 Lien Processing Fee $50.00 $55.00 Policy 54 Delinquent Tax Roll Fee $40.00 $45.00 Policy 54 Mailed Delinquency Notice New $5.00 2 The fees and charges above are assessed to the customer’s water account after the work is performed. Staff has consulted with the District’s General Counsel who confirmed these fees are not subject to Proposition 218 noticing requirements. Most of the proposed fee changes are directly related to the increase in labor costs that have occurred since these fees were last updated. Changes to District practices, which are explained further in this document, also contributed to some of the proposed changes to fees. Additional information regarding the fees and charges is discussed below. Backflow Fees Staff is proposing an increase to fees assessed for hand-delivered backflow notices and the reconnection of service for meters disconnected due to non-compliance with backflow. These increases are a direct result of labor cost increases. Backflow devices must be tested on an annual basis and test reports must be submitted by the due date provided to the customer. Customers are notified of the due date 30 days in advance via mailed notice. If the test result is not submitted by the due date, a second notice is mailed giving 14 additional days to complete the test. At the end of the 14 day period, a third notice is mailed with notification of impending disconnection. In addition, staff hand delivers a notice to the site. This hand-delivered notice is to ensure the onsite manager is aware of the impending disconnection and can take the necessary steps to bring the backflow device into compliance. Although this can be time consuming for District staff, it has proven highly effective in minimizing disconnections. If a customer fails to respond after these notifications, the meter service is disconnected. In order to reconnect service, a Meter Services representative must meet the tester at the property to observe a passing test. When that happens, the customer is charged the reconnection fee. Temporary Meter Fees and Updates to Section 31 of the District’s Code of Ordinances Temporary meters are meters used for construction purposes. The majority of these are 2½” meters attached to District fire hydrants (see photo on page 4). Each temporary meter requires a backflow device to be tested and installed at the time the meter is set. District staff installs and removes all temporary meters and backflow devices for these 2½” meters. Staff is proposing an increase to the install fee for the hydrant meters from $150.00 to $240.00. Traditionally, temporary meters are used by multiple contractors at a site and can experience a lot of wear and tear for each project. Staff has noticed an increase in damage to various components of the backflow device and has started to test the backflow device both at the time of meter install and removal to make any necessary repairs before deploying the device again. Customers are charged separately for repairs related to any damage to the device. The proposed fee increase represents both the increase in labor costs and staff time associated with testing the backflow device twice. 3 The increase to the meter move fee is directly related to labor cost increases as there is no change to this process. On occasion, developers require a larger flow of water and must use a regular 4” or 6” meter (see photo below). The installation of these meters is much more involved and requires two staff members but does not require backflow testing as the customer is responsible for installing and testing the backflow device for these larger meters. The fee increase for these larger temporary meters is directly related to labor cost increases. Staff is also proposing updates to Section 31, Construction Water Service, to reflect current practices. Standard 2½” temporary meter/backflow device attached to hydrant for construction purposes. Larger 6” temporary meter installed for construction purposes. 4 Lock and Delinquency Notice Fees The meter lock charge is billed to customers that have their service disconnected for non-payment. The District locks approximately 180 meters per month. To determine the appropriate fee for disconnection and reconnection due to non-payment, staff analyzed the costs associated with locking and unlocking an account. Prior to locking a meter, Customer Service staff review each account on the day’s lock list. The final list is sent to the meter reading team. A meter reader then goes to each property to turn off service and place a lock on the meter with a tag stating the service has been interrupted and to call the office. The lock process takes approximately 15 minutes per account. To unlock the meter, the customer must pay the past due amount. A Customer Service Representative verifies payments made throughout the day to locked accounts and creates a service order to unlock the meter for those accounts that were paid. The meter reading team then returns to the property to unlock the meter. The unlock process takes approximately 20 minutes per account. Based on the average time of 35 minutes per account and the labor cost, staff is proposing an increase from $50.00 to $60.00. Staff has done a survey of neighboring agencies and lock fees are shown in the table below. Water Agency Lock Fee Padre Dam Municipal Water District $60 Helix Water District $58 Sweetwater Authority $85 Although not required by law, the District will be notifying all customers in August, via a message on their water bill, of the lock fee increase. Staff is proposing the addition of a new fee related to the delinquency notification process: the mailed delinquency notice fee. Historically we have not charged for delinquency notices, but with the changes in the delinquency process mandated by Senate Bill 998 in 2020, the process requires more staff time for printing and mailing. As mandated by law, Otay issues an automated call to delinquent customers at least seven business days before disconnection of service. If a call cannot be made, Otay must mail a notice out to the customer. Staff is proposing a new fee of $5.00 be charged to customers who require this mailed notification. The fee will allow the District to recoup the staff time, printing material, and postage costs associated with this notice from those responsible for the cost. The District mails approximately 600 notices per month. Neighboring agencies handle disconnection notification in many different ways (phone, mailed notice, FedEx, and hand delivery) so it is hard to compare fees associated with this task. The fees for other agencies range from $10.00 to $40.00. Pull Meter and Broken Lock Fees If a customer has been disconnected and tampers with the lock on their meter, staff will relock the meter and charge a broken lock 5 fee. This fee recovers the cost of the broken lock and staff time associated with investigating the incident and relocking the meter. The proposed increase is only associated with increased labor costs as the cost of the lock remains the same. If a customer breaks the lock more than once, staff will pull the meter and install a locking device at the service line. The customer must pay the pull and reset meter fee and all past due charges to have the meter reinstalled. When a meter is pulled, a letter is mailed to the property and the property owner (if different from the account holder) explaining the meter has been pulled, the amount that must be paid for it to be reinstalled, and that any further tampering of the service could result in additional fines and possible prosecution. The increased cost to pull and reset the meter is due to increased labor costs. Lien Processing and Delinquent Tax Roll Fees California Water Code 72102 allows water districts to file liens with the County for unpaid water and sewer charges. In 2022, the District filed 33 liens. Staff is required to send an intent to lien letter 30 days prior to filing the lien with the County. The lien processing fee offsets staff time associated with this process. In addition to filing liens on the delinquent owner, staff sends delinquent owner account balances to the County of San Diego’s tax roll annually. These balances are then collected through the property’s tax bill and reimbursed to Otay. In 2022, the District sent $28,883.94 from 61 delinquent accounts to the County for collection. The delinquent tax roll fee covers the costs associated with identifying, noticing, and submitting these accounts to the County. The proposed increases to both of these fees are directly related to labor cost increases. Proposed Deposit Changes Code Numbers Item Meter Size Current Fees Proposed Fees 25.04 A. Deposit for Non-Property Owners .75” $100.00 $150.00 1” $200.00 $250.00 1.5” $250.00 $300.00 2" $400.00 $450.00 31.03 A.1.Requirement of Deposit for Temporary Meters - Construction Trailer Temporary Meter 2" $2,046.00 $2,685.00 - Tank Truck Temporary Meter (Ordinance No. 372)2" $850.00 $1,000.00 33.07 A. Customer Request for Meter Test (Deposit) .75”-1” $60.00 $120.00 1.5”-2” $120.00 $200.00 3” and Larger $300.00 $400.00 Deposits for Non-Property Owners Customers who start service with Otay and are not the owner of the property are required to pay a deposit. This deposit remains on the 6 customer’s account for either 1) 12 months, provided they have one or less late payment during that time, or 2) until the account is closed. Staff is proposing an increase to this deposit. The proposed amounts were determined by looking at the District’s average bills for each meter size as well as the average closing account balance. Most tenant deposits are collected on residential 3/4” meters. The current average bill for this customer class is $115 dollars per month and the average closing bill is $200. The increase from $100 to $150 will reduce the District’s uncollectable balances and help unburden homeowners who are now responsible for unpaid balances of tenants. In addition to this deposit, the District’s Code of Ordinances allows for additional deposits up to two times the average annual monthly bill to be placed on any account with a repeated history of delinquency. Deposits for Temporary Meters Customers who request a temporary meter are required to pay a deposit prior to the meter being set. The deposit covers the cost of the meter, backflow device, and estimated labor associated with repairing or replacing the meter if it is damaged or stolen. The proposed increase is mainly related to the increase in device costs. Costs of replacement meters and parts have increased considerably over the last couple of years. Actual costs of replacement or repair are charged to the deposit as needed. Deposits are refunded to the customer when the temporary meter is removed, and the water account is closed. Tank truck meters are meters used by water trucks who may move from hydrant to hydrant within the District. The proposed increase reflects the increase in the cost of this meter. Customer Request for Meter Test The District allows a customer to request their meter to be tested if they feel it is not working properly. The District asks for the customer to pay a deposit for this test which is refunded to the customer if the meter does not meet appropriate accuracy ratings. To account for current labor rates and staff time associated with this meter testing, staff is proposing an increase to these deposit amounts. Meter test requests are rare but the District wants to ensure it is maintaining the deposit requirements based on current costs. Although the increase doubles the deposit for a 3/4” meter, the deposit required by Otay will still be lower than the deposit rate at Helix, Padre Dam, and Sweetwater. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Based on the average number of occurrences for each fee, staff estimates an increase of approximately $65,000 in annual revenue. The proposed fee, charge, and deposit changes reflect the current labor rates and time involved for each task. Updating these fees help to ensure the financial equity of all rate payers as the fees are only charged to those customers that require these services. 7 STRATEGIC GOAL: This revenue source will help the District meet its fiscal responsibility to its ratepayers. LEGAL IMPACT: None. Attachments: A) Committee Action Form B) Ordinance No. 590 Exhibit 1 – Section 31 Strike-through Exhibit 2 – Section 31 Proposed Exhibit 3 – Appendix A Strike-through Exhibit 4 – Appendix A Proposed C) Resolution No. 4434 Exhibit A – Policy 54 Strike-through Exhibit B – Policy 54 Proposed 8 ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 590 to Approve the Proposed Changes to Various Fees, Charges, and Deposits by Amending Appendix A and Section 31, Construction Water Service; and Adopt Resolution No. 4434 Amending Policy No. 54, Discontinuation of Water Service for Delinquent Accounts, of the District’s Code of Ordinances to be Effective September 1, 2023 COMMITTEE ACTION: 1 ORDINANCE NO. 590 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 31, CONSTRUCTION WATER SERVICE; AND APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Section 31, Construction Water Service; and Appendix A be amended as per Exhibits 1, 2, 3 & 4 (attached). NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 31, Construction Water Service (Exhibit 2) and Appendix A (Exhibit 4) of the Code of Ordinances shall become effective on September 1, 2023. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 5th day of July 2023, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: ________________________ District Secretary Attachment B 31-1 SECTION 31 CONSTRUCTION WATER SERVICE 31.01 DEFINITION OF CONSTRUCTION SERVICE Construction water service is water service provided for a limited period of time not to exceed 365 days, and used for temporary purposes such as construction, hydrotesting water systems, vegetation of slopes, and other uses noted in this section. Construction water service shall not be provided to residential dwellings or commercial business enterprises, which are covered under Section 60 of this Code. 31.02 REQUIREMENT OF CONSTRUCTION METER FOR SERVICE Construction water service may be provided after installation of a construction meter pursuant to a customer's written application for such service. Temporary water service by means of a "jumper" or other unauthorized connection to the District water system is prohibited and subject to penalties as set forth in Section 72. A.Size and Location. 1.The size and location of construction meters willbe determined solely by the District. 2.For construction water service from a fire hydrant, a construction meter of at least 4-inch in size will be required. The meter will be installed by the District with a District supplied reduced pressure principle backflow device (RP). Only one 2½-inch fire hydrant port per fire hydrant shall be occupied by a construction meter at one time. 2.3. For construction water service from a tee installed below a fire hydrant, blow off greater than 4-inch, or other lateral greater than 4-inch in size, a meter of at least 4-inches in size will be required. The meter will require the installation and testing of a reduced pressure principle backflow device (RP) provided by the customer. After the initial test, the RP device will be subjected to repeat testing annually by the customer and any time the device is depressurized. All testing results must be submitted to the District. B.Construction water service from a fire hydrant shall be limited to the following applications: 1.Filling of water trucks and drop tanks. 2.General construction requirements, such as backfill and compaction, guniting gunite and stuccoing application, and block wall building. Exhibit 1 31-2 3.Flushing of storm drains and sewer lines. 4.Filling, hydrotesting, chlorination, and flushing of newly constructed potable and reclaimed water lines. 5.Filling, flushing, hydrotesting, and the initial operational coverage testing of reclaimed waterirrigation systems. Service provided for this application shall be limited to a maximum of 60 days. 6.Operation of landscape irrigation for theestablishment of vegetation on slopes or other planted areas. Service provided for this application shall be limited to a maximum of 180 days. Item 5 and 6 above shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the service being established. The backflow device shall be installed in plain view and within 3 feet of the hydrant construction meter. C.Construction service to construction trailers or other temporary construction buildings may be provided as follows: 1.Through a construction meter connected to the 1 or 2- inch service lateral for fire hydrant nearest to the lot the trailer is placed on. 2.Where Item 1 above is not possible, through a construction meter connected to appurtenances other than a fire hydrant, such as a blow off. 3.Where either Item 1 or 2 above is not possible, from a construction 4-inch meter connected to a fire hydrant. Service to construction trailers or other temporary construction buildings shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the service being established. The backflow device shall be installed in accordance with District requirements. D.If any unauthorized connection, disconnection or relocation of a construction meter, or other connection device is made by other than District employees, District may discontinue further water service to the entire project and impose penalties as set forth in Section 72. E.Extensions to the time limits referenced in this section may be made by the General Manager. Requests for time extensions shall be made by the customer in writing. F.Recycled Construction Water Service may be provided 31-3 as follows: 1.Through an irrigation meter connection to a 2-inch recycled service lateral for the parcel proposed to be irrigated with recycled water. 2.Through a 3-inch or larger meter connected to an appropriate recycled appurtenance as approved by Otay Water District. 3.Permitted use of construction recycled water shall be limited to construction site dust control and soil hydration as approved by Otay Water District. 4.Use of construction recycled water shall be in accordance with the requirements of Section 26 “Water Recycling Plan and Implementing Procedures” of the Code of Ordinances. 31.03 FEES AND CHARGES FOR CONSTRUCTION METERS A. Construction Water Service. Construction water service shall be furnished to the property owner or the owner’s authorized agent only and shall be provided under the following conditions: Requirement of Deposit. At the time application is made for construction service, the customer shall deposit with the District the amount set forth in Appendix A, 31.03 A.1. 1.Delinquency.No construction meters shall be furnished to any person with a delinquent account with the District. 2.Refund of Deposit or Additional Payment. Upon cancellation or termination of the construction service, the District will refund the amount of deposit remaining after making the following deductions: a)cost of installing, moving, and removing the meter; b)cost of repairing or replacing the meter, RP device, fire hydrant, and/or any fittings damaged or lost while in use; and c)unpaid charges for water used or other applicablecharges. 3.Construction Meter Set-up & Removal.The charges to set- up and remove a construction meter are set forth 31-4 in Appendix A, 31.03 A.4. 4.Construction Meter Move Fee. If a meter needs to be moved from one location to another see Appendix A., 31.03 A.5. B.Rates for Construction Water Service. The minimum category of service for Construction Water Service from a hydrant shall be a meter size of 4-inches. Payment for construction water service shall be in accordance with rates and charges set forth in Section 25.03. 31.04 PAYMENT OF CAPACITY AND ANNEXATION FEES FOR CONSTRUCTION METERS A.Customers, whose property has been annexed into an Improvement District, may elect to pay the capacity and annexation fees in addition to the deposit amount shown in Appendix A, 31.03 A.1. B.Capacity and annexation fees for this type of water service shall be calculated in accordance with Sections 9 and 28. C.Payment for this type of water service shall be in accordance with the rates and charges set forth in Section 25.03 D.7. D.Customers electing this type of water service shall be credited the number of equivalent dwelling units they have previously purchased when the meter(s) is returned to the District. The credit shall be applicable to permanent meters purchased within the same subdivision or development where the construction meter was used. 31-1 SECTION 31 CONSTRUCTION WATER SERVICE 31.01 DEFINITION OF CONSTRUCTION SERVICE Construction water service is water service provided for a limited period of time not to exceed 365 days, and used for temporary purposes such as construction, hydrotesting water systems, vegetation of slopes, and other uses noted in this section. Construction water service shall not be provided to residential dwellings or commercial business enterprises, which are covered under Section 60 of this Code. 31.02 REQUIREMENT OF CONSTRUCTION METER FOR SERVICE Construction water service may be provided after installation of a construction meter pursuant to a customer's written application for such service. Temporary water service by means of a "jumper" or other unauthorized connection to the District water system is prohibited and subject to penalties as set forth in Section 72. A.Size and Location. 1.The size and location of construction meters willbe determined solely by the District. 2.For construction water service from a fire hydrant, a construction meter will be required. The meter will be installed by the District with a District supplied reduced pressure principle backflow device (RP). Only one 2½-inch fire hydrant port per fire hydrant shall be occupied by a construction meter at one time. 3.For construction water service from a tee installed below a fire hydrant, blow off greater than 4-inch, or other lateral greater than 4-inch in size, a meter of at least 4-inches in size will be required. The meter will require the installation and testing of a reduced pressure principle backflow device (RP) provided by the customer. After the initial test, the RP device will be subjected to repeat testing annually by the customer and any time the device is depressurized. All testing results must be submitted to the District. B.Construction water service from a fire hydrant shall be limited to the following applications: 1.Filling of water trucks and drop tanks. 2.General construction requirements, such as backfill and compaction, gunite and stucco application, and block wall building. Exhibit 2 31-2 3.Flushing of storm drains and sewer lines. 4.Filling, hydrotesting, chlorination, and flushing of newly constructed potable and reclaimed water lines. 5.Filling, flushing, hydrotesting, and the initial operational coverage testing of reclaimed waterirrigation systems. Service provided for this application shall be limited to a maximum of 60 days. 6.Operation of landscape irrigation for theestablishment of vegetation on slopes or other planted areas. Service provided for this application shall be limited to a maximum of 180 days. C.Construction service to construction trailers or other temporary construction buildings may be provided as follows: 1.Through a construction meter connected to the fire hydrant nearest to the lot the trailer is placed on. 2.Where Item 1 above is not possible, through a construction meter connected to appurtenances other than a fire hydrant, such as a blow off. D.If any unauthorized connection, disconnection or relocation of a construction meter, or other connection device is made by other than District employees, District may discontinue further water service to the entire project and impose penalties as set forth in Section 72. E.Extensions to the time limits referenced in this section may be made by the General Manager. Requests for time extensions shall be made by the customer in writing. F.Recycled Construction Water Service may be provided as follows: 1.Through an irrigation meter connection to a 2-inch recycled service lateral for the parcel proposed to be irrigated with recycled water. 2.Through a 3-inch or larger meter connected to an appropriate recycled appurtenance as approved by Otay Water District. 3.Permitted use of construction recycled water shall be limited to construction site dust control and soil hydration as approved by Otay Water District. 31-3 4. Use of construction recycled water shall be in accordance with the requirements of Section 26 “Water Recycling Plan and Implementing Procedures” of the Code of Ordinances. 31.03 FEES AND CHARGES FOR CONSTRUCTION METERS A. Construction Water Service. Construction water service shall be furnished to the property owner or the owner’s authorized agent only and shall be provided under the following conditions: Requirement of Deposit. At the time application is made for construction service, the customer shall deposit with the District the amount set forth in Appendix A, 31.03 A.1. 1. Delinquency. No construction meters shall be furnished to any person with a delinquent account with the District. 2. Refund of Deposit or Additional Payment. Upon cancellation or termination of the construction service, the District will refund the amount of deposit remaining after making the following deductions: a) cost of installing, moving, and removing the meter; b) cost of repairing or replacing the meter, RP device, fire hydrant, and/or any fittings damaged or lost while in use; and c) unpaid charges for water used or other applicable charges. 3. Construction Meter Set-up & Removal. The charges to set- up and remove a construction meter are set forth in Appendix A, 31.03 A.4. 4. Construction Meter Move Fee. If a meter needs to be moved from one location to another see Appendix A., 31.03 A.5. B. Rates for Construction Water Service. The minimum category of service for Construction Water Service from a hydrant shall be a meter size of 4-inches. Payment for construction water service shall be in accordance with rates and charges set forth in Section 25.03. 31.04 PAYMENT OF CAPACITY AND ANNEXATION FEES FOR CONSTRUCTION METERS 31-4 A.Customers, whose property has been annexed into an Improvement District, may elect to pay the capacity and annexation fees in addition to the deposit amount shown in Appendix A, 31.03 A.1. B.Capacity and annexation fees for this type of water service shall be calculated in accordance with Sections 9 and 28. C.Payment for this type of water service shall be in accordance with the rates and charges set forth in Section 25.03 D.7. D.Customers electing this type of water service shall be credited the number of equivalent dwelling units they have previously purchased when the meter(s) is returned to the District. The credit shall be applicable to permanent meters purchased within the same subdivision or development where the construction meter was used. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $970.30 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4"$2,454.95 1"$6,137.38 1-1/2"$12,274.75 2"$19,639.60 3"$39,279.20 4"$61,373.75 6"$122,747.50 8"$196,396.00 10"$282,319.25 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,342.96 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $15.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4"$16.33 1"$27.22 1-1/2"$54.42 2"$87.06 3"$190.45 4"$342.81 6"$761.79 8"$1,305.91 10"$2,067.69 Otay Water District Appendix A Charges (1)Water billed beginning January 1, 2023, which may include water used December 2022. Exhibit 3 Section #Code #Fee Description Meter Size Charges 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4" $18.07 1" $22.47 1-1/2" $33.73 2" $47.04 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4" $16.67 1" $20.14 1-1/2" $29.06 2" $39.58 3" $83.59 4" $140.85 6" $276.38 8" $426.72 10" $654.34 25 25.03 C.3. Business and Commercial Monthly Fixed System Charges (1)3/4" $18.22 1" $22.72 1-1/2" $34.22 2" $47.82 3" $101.62 4" $173.30 6" $348.50 8" $550.37 10" $850.11 25 25.03 C.4.3/4" $16.13 1" $19.24 1-1/2" $27.26 2" $36.69 3" $77.26 4" $129.48 6" $251.10 8" $383.41 10"$585.74 25 25.03 C.5.3/4" $16.97 1" $20.64 1-1/2" $30.06 2" $41.18 3" $87.08 4" $147.14 6" $290.36 8" $450.72 10"$692.32 Non-Public Irrigation and Commercial Agriculture Monthly Fixed System Charges (1) (1) Water billed beginning January 1, 2023, which may include water used December 2022. Publicly Owned Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 C.6.3/4"$16.13 1"$19.24 1-1/2"$27.26 2"$36.69 3"$77.26 4"$129.48 25 25.03 C.7.3/4"$16.58 1"$19.98 1-1/2"$28.75 2"$39.09 3"$82.51 4"$138.91 6"$272.08 8"$419.37 10"$642.67 25 25.03 C.8. 3/4"$36.06 1"$48.83 1-1/2"$81.22 2"$119.74 3"$262.42 4"$458.00 6"$953.41 8"$1,547.17 10"$2,411.52 25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge 0-9 $5.26 10-12 $5.71 13 or more $6.35 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-9 $5.22 10-12 $5.65 13 or more $5.85 Public Irrigation Monthly Fixed System Charges (1) Construction Monthly Fixed System Charges (1) Recycled Monthly Fixed System Charges (1) (1)Water billed beginning January 1, 2023, which may include water used December 2022. Section #Code #Fee Description Meter Size Charges 25 25.03 D.3.(b) Business and Commercial Water Rates (1)All Units $5.52 25 25.03 D.4.(c) Non-Public Irrigation and Commercial Agriculture Using Potable Water Rates (1)All Units $6.36 25 25.03 D.5.(b) Publicly-Owned Water Rates (1)All Units $6.08 25 25.03 D.6.(b) Public Irrigation Water Rates (1)All Units $6.94 25 25.03 D.7.(b) Construction Water Rates (1)All Units $6.32 25 25.03 D.8.(c)Recycled Non-Public Irrigation Water Rates (1)All Units $5.36 25 25.03 D.9.(c)Recycled Commercial Water Rates (1)All Units $4.92 25 25.03 D.10.(c)Recycled Public Irrigation Water Rates (1)All Units $5.47 25 25.03 D.11.(b) Potable Interim Business and Commercial Water Rates (1)All Units $11.04 25 25.03 D.12.(b) Potable Interim Non-Public Irrigation and Commercial Agriculture Water Rates (1)All Units $12.72 (1)Water billed beginning January 1, 2023, which may include water used December 2022. Section #Code #Fee Description Meter Size Charges 25 25.03 D.13.(b) Tank Trucks Water Rates (1)All Units $6.32 25 25.03 D.14.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.14.(d) Water Rate for Service Outside District Boundaries (1)All Units $12.16 25 25.03 D.15.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.15.(c) Water Rate for Service Outside Improvement District (1)All Units $12.16 25 25.03 D.16.(c) Fire Service Monthly Charge 3/4"$2.60 1"$2.68 1-1/2"$2.94 2"$3.38 3"$4.99 4"$7.75 6"$17.69 8"$34.83 10"$60.61 25 25.03 E.1.Energy Charges for Pumping Potable Water (1) Per 100 ft of lift over 450 ft per unit $0.068 25 25.03 E.2. Energy Charges for Pumping Recycled Water (1) Per 100 ft of lift over 450 ft per unit $0.077 25 25.04 A.Deposits for Non-Property Owners 3/4"$100.00 1"$200.00 1-1/2"$250.00 2"$400.00 3"$1,000.00 4"$1,350.00 6"$3,300.00 8"$7,000.00 10"$10,000.00 (1)Water billed beginning January 1, 2023, which may include water used December 2022. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4"$12,937.69 1"$32,344.23 1-1/2"$64,688.45 2"$103,501.52 3"$207,003.04 4"$323,442.25 6"$646,884.50 8"$1,035,015.20 10"$1,487,834.35 - TRIAD 3/4"$9,703.27 1"$24,258.18 1 -1/2"$48,516.35 2"$77,626.16 3"$155,252.32 4"$242,581.75 6"$485,163.50 8"$776,261.60 10"$1,115,876.05 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$275.63 $130.80 $406.43 $111.05 3/4" x 9"$293.47 $130.80 $424.27 $111.05 1"$355.69 $130.80 $486.49 $111.05 1.5"$578.13 $130.80 $708.93 $251.74 2"$828.40 $130.80 $959.20 $251.74 3"$2,581.62 $787.54 $3,369.16 $4,490.59 4"$4,483.85 $787.54 $5,271.39 $4,490.59 6"$7,744.83 $1,243.98 $8,988.81 $4,490.59 8"$9,676.59 $1,907.52 $11,584.11 $6,442.08 10"$13,916.75 $1,907.52 $15,824.27 $6,442.08 Section #Code #Fee Description Meter Size Charges 28 28.02 Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable/Recycled Irrigation 3/4" x 7.5"$275.63 $130.80 $406.43 $283.00 3/4" x 9"$293.47 $130.80 $424.27 $283.00 1"$355.69 $130.80 $486.49 $283.00 1.5"$578.13 $130.80 $708.93 $283.00 2"$828.40 $130.80 $959.20 $283.00 3"$1,786.74 $787.54 $2,574.28 $4,490.59 4"$3,478.50 $787.54 $4,266.04 $4,490.59 6"$6,262.44 $1,243.98 $7,506.42 $4,490.59 8"$8,342.69 $1,907.52 $10,250.21 $6,442.08 10"$11,838.91 $1,907.52 $13,746.43 $6,442.08 - Combined Fire and Domestic 4"$10,667.48 $787.54 $11,455.02 $4,490.59 6"$14,197.49 $1,243.98 $15,441.47 $4,490.59 8"$20,642.12 $1,907.52 $22,549.64 $6,442.08 10"$28,169.69 $1,907.52 $30,077.21 $6,442.08 31 31.03 A.1.Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal 3/4" - 4" (on hydrant)$150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4"(on hydrant)$150.00 4" - 6"$806.00 8" - 10"Actual Cost 33 33.07 A.Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$60.00 1-1/2" & 2 "$120.00 3" & Larger $300.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 C Meter Lock Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $7,006.35 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $9,691.47 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $15.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $3.25 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $18.13 53 53.10 A.4.Residential Sewer Without Consumption History 5/8", 3/4" & larger $48.81 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $3.25 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$18.13 1"$45.30 1.5"$90.58 2"$144.92 3"$271.74 4"$452.90 6"$905.79 8" $1,449.29 10"$2,083.35 (2) Sewer billed beginning January 1, 2023. Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates without Consumption History (2)Per dwelling unit $21.82 53 53.11 Commercial and Industrial Sewer Rates Rate multiplied by Low Strength $3.25 annual avg.Medium Strength $3.69 units High Strength $5.20 53 53.11 Commercial and Industrial Monthly Fixed Sewer System Charges (2).75"$18.13 1"$45.30 1.5"$90.58 2"$144.92 3"$271.74 4"$452.90 6"$905.79 8"$1,449.29 10"$2,083.35 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 (2)Sewer billed beginning January 1, 2023. Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5B Copies of Identifiable Public Records $0.20/page 54 Late Payment Charge 5% of Delinquent Balance 54 Lien Processing Fee $50.00 54 Delinquent Tax Roll Fee $40.00 54 Delinquency Mailed Notice $5.00 The cost for all other copy sizes is the direct cost of duplication. Per acre I.D. 18 8 1/2" x 11" Per $1000 of assessed value for I.D. 27 Per acre in I.D. 22 Less than one acre I.D. 18 Will not exceed per each day the violation is identified or continues. Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Fine up to amount specified per each day the violation is identified or continues. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $970.30 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4"$2,454.95 1"$6,137.38 1-1/2"$12,274.75 2"$19,639.60 3"$39,279.20 4"$61,373.75 6"$122,747.50 8"$196,396.00 10"$282,319.25 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,342.96 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$60.00 - Reconnection $60.00 - Reconnection (if test performed with technician present)$180.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $15.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4"$16.33 1"$27.22 1-1/2"$54.42 2"$87.06 3"$190.45 4"$342.81 6"$761.79 8"$1,305.91 10"$2,067.69 Otay Water District Appendix A Charges (1)Water billed beginning January 1, 2023, which may include water used December 2022. Exhibit 4 Section #Code #Fee Description Meter Size Charges 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4"$18.07 1"$22.47 1-1/2"$33.73 2"$47.04 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4"$16.67 1"$20.14 1-1/2"$29.06 2"$39.58 3"$83.59 4"$140.85 6"$276.38 8"$426.72 10"$654.34 25 25.03 C.3. Business and Commercial Monthly Fixed System Charges (1)3/4"$18.22 1"$22.72 1-1/2"$34.22 2"$47.82 3"$101.62 4"$173.30 6"$348.50 8"$550.37 10"$850.11 25 25.03 C.4.3/4"$16.13 1"$19.24 1-1/2"$27.26 2"$36.69 3"$77.26 4"$129.48 6"$251.10 8"$383.41 10"$585.74 25 25.03 C.5.3/4"$16.97 1"$20.64 1-1/2"$30.06 2"$41.18 3"$87.08 4"$147.14 6"$290.36 8"$450.72 10"$692.32 Publicly Owned Monthly Fixed System Charges (1) Non-Public Irrigation and Commercial Agriculture Monthly Fixed System Charges (1) (1)Water billed beginning January 1, 2023, which may include water used December 2022. Section #Code #Fee Description Meter Size Charges 25 25.03 C.6.3/4"$16.13 1"$19.24 1-1/2"$27.26 2"$36.69 3"$77.26 4"$129.48 25 25.03 C.7.3/4"$16.58 1"$19.98 1-1/2"$28.75 2"$39.09 3"$82.51 4"$138.91 6"$272.08 8"$419.37 10"$642.67 25 25.03 C.8. 3/4"$36.06 1"$48.83 1-1/2"$81.22 2"$119.74 3"$262.42 4"$458.00 6"$953.41 8"$1,547.17 10"$2,411.52 25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge 0-9 $5.26 10-12 $5.71 13 or more $6.35 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-9 $5.22 10-12 $5.65 13 or more $5.85 (1)Water billed beginning January 1, 2023, which may include water used December 2022. Recycled Monthly Fixed System Charges (1) Public Irrigation Monthly Fixed System Charges (1) Construction Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.3.(b) Business and Commercial Water Rates (1)All Units $5.52 25 25.03 D.4.(c) Non-Public Irrigation and Commercial Agriculture Using Potable Water Rates (1)All Units $6.36 25 25.03 D.5.(b) Publicly-Owned Water Rates (1)All Units $6.08 25 25.03 D.6.(b) Public Irrigation Water Rates (1)All Units $6.94 25 25.03 D.7.(b) Construction Water Rates (1)All Units $6.32 25 25.03 D.8.(c)Recycled Non-Public Irrigation Water Rates (1)All Units $5.36 25 25.03 D.9.(c)Recycled Commercial Water Rates (1)All Units $4.92 25 25.03 D.10.(c)Recycled Public Irrigation Water Rates (1)All Units $5.47 25 25.03 D.11.(b) Potable Interim Business and Commercial Water Rates (1)All Units $11.04 25 25.03 D.12.(b) Potable Interim Non-Public Irrigation and Commercial Agriculture Water Rates (1)All Units $12.72 (1) Water billed beginning January 1, 2023, which may include water used December 2022. Section #Code #Fee Description Meter Size Charges 25 25.03 D.13.(b) Tank Trucks Water Rates (1)All Units $6.32 25 25.03 D.14.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.14.(d) Water Rate for Service Outside District Boundaries (1)All Units $12.16 25 25.03 D.15.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.15.(c) Water Rate for Service Outside Improvement District (1)All Units $12.16 25 25.03 D.16.(c) Fire Service Monthly Charge 3/4"$2.60 1"$2.68 1-1/2"$2.94 2"$3.38 3"$4.99 4"$7.75 6"$17.69 8"$34.83 10"$60.61 25 25.03 E.1.Energy Charges for Pumping Potable Water (1) Per 100 ft of lift over 450 ft per unit $0.068 25 25.03 E.2. Energy Charges for Pumping Recycled Water (1) Per 100 ft of lift over 450 ft per unit $0.077 25 25.04 A.Deposits for Non-Property Owners 3/4"$150.00 1"$250.00 1-1/2"$300.00 2"$450.00 3"$1,000.00 4"$1,350.00 6"$3,300.00 8"$7,000.00 10"$10,000.00 (1)Water billed beginning January 1, 2023, which may include water used December 2022. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4"$12,937.69 1"$32,344.23 1-1/2"$64,688.45 2"$103,501.52 3"$207,003.04 4"$323,442.25 6"$646,884.50 8"$1,035,015.20 10"$1,487,834.35 - TRIAD 3/4"$9,703.27 1"$24,258.18 1 -1/2"$48,516.35 2"$77,626.16 3"$155,252.32 4"$242,581.75 6"$485,163.50 8"$776,261.60 10"$1,115,876.05 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$275.63 $130.80 $406.43 $111.05 3/4" x 9"$293.47 $130.80 $424.27 $111.05 1"$355.69 $130.80 $486.49 $111.05 1.5"$578.13 $130.80 $708.93 $251.74 2"$828.40 $130.80 $959.20 $251.74 3"$2,581.62 $787.54 $3,369.16 $4,490.59 4"$4,483.85 $787.54 $5,271.39 $4,490.59 6"$7,744.83 $1,243.98 $8,988.81 $4,490.59 8"$9,676.59 $1,907.52 $11,584.11 $6,442.08 10"$13,916.75 $1,907.52 $15,824.27 $6,442.08 Section #Code #Fee Description Meter Size Charges 28 28.02 Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable/Recycled Irrigation 3/4" x 7.5"$275.63 $130.80 $406.43 $283.00 3/4" x 9"$293.47 $130.80 $424.27 $283.00 1"$355.69 $130.80 $486.49 $283.00 1.5"$578.13 $130.80 $708.93 $283.00 2"$828.40 $130.80 $959.20 $283.00 3"$1,786.74 $787.54 $2,574.28 $4,490.59 4"$3,478.50 $787.54 $4,266.04 $4,490.59 6"$6,262.44 $1,243.98 $7,506.42 $4,490.59 8"$8,342.69 $1,907.52 $10,250.21 $6,442.08 10"$11,838.91 $1,907.52 $13,746.43 $6,442.08 - Combined Fire and Domestic 4"$10,667.48 $787.54 $11,455.02 $4,490.59 6"$14,197.49 $1,243.98 $15,441.47 $4,490.59 8"$20,642.12 $1,907.52 $22,549.64 $6,442.08 10"$28,169.69 $1,907.52 $30,077.21 $6,442.08 31 31.03 A.1.Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,685.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$1,000.00 31 31.03 A.4.Temporary Meter Install & Removal 3/4" - 4" (on hydrant)$240.00 4" - 6"$960.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4"(on hydrant)$180.00 4" - 6"$960.00 8" - 10"Actual Cost 33 33.07 A.Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$120.00 1-1/2" & 2 "$200.00 3" & Larger $400.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 C Meter Lock Charge $60.00 53 53.03 A.1.Sewer Capacity Fee within an ID $7,006.35 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $9,691.47 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $15.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $3.25 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $18.13 53 53.10 A.4.Residential Sewer Without Consumption History 5/8", 3/4" & larger $48.81 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $3.25 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$18.13 1"$45.30 1.5"$90.58 2"$144.92 3"$271.74 4"$452.90 6"$905.79 8"$1,449.29 10"$2,083.35 (2)Sewer billed beginning January 1, 2023. Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates without Consumption History (2)Per dwelling unit $21.82 53 53.11 Commercial and Industrial Sewer Rates Rate multiplied by Low Strength $3.25 annual avg.Medium Strength $3.69 units High Strength $5.20 53 53.11 Commercial and Industrial Monthly Fixed Sewer System Charges (2).75"$18.13 1"$45.30 1.5"$90.58 2"$144.92 3"$271.74 4"$452.90 6"$905.79 8"$1,449.29 10"$2,083.35 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$250.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$80.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 (2)Sewer billed beginning January 1, 2023. Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5B Copies of Identifiable Public Records $0.20/page 54 Late Payment Charge 5% of Delinquent Balance 54 Lien Processing Fee $55.00 54 Delinquent Tax Roll Fee $45.00 54 Delinquency Mailed Notice $5.00 Will not exceed per each day the violation is identified or continues. Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Fine up to amount specified per each day the violation is identified or continues. Per acre in I.D. 22 Less than one acre I.D. 18 The cost for all other copy sizes is the direct cost of duplication. Per acre I.D. 18 8 1/2" x 11" Per $1000 of assessed value for I.D. 27 Section #Code #Fee Description Meter Size Charges 54 Delinquency Tag $25.00 Page 1 of 2 RESOLUTION NO.4434 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS POLICY NO. 54 OF THE DISTRICT’S CODE OF ORDINANCES WHEREAS, the Otay Water District Board of Directors have been presented with an amended Discontinuation of Water Service for Delinquent Accounts Policy No. 54 (Policy No. 54) of the District’s Code of Ordinances for the financial management of the Otay Water District; and WHEREAS, the amended Policy No. 54 has been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended Policy No. 54; and WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit A 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. 54, incorporated herein as Exhibit B, is hereby adopted. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 5th day of July, 2023, by the following vote: Ayes: Noes: Abstain: Absent: Attachment C Page 2 of 2 ________________________ President ATTEST: ____________________________ District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 1 of 8 I.PURPOSE This Discontinuation of Water Service for Delinquent Accounts Policy (Policy) has been established to adhere to the laws regarding discontinuation of water service for residential customers due to non- payment of their water bill as required by Government Code § 60370 et seq. and Health & Safety Code § 116900 et seq. (California Senate Bill No. 998). II.BACKGROUND California Senate Bill No. 998 requires an urban or community water system, that supplies water to more than 200 service connections, to have a written policy that provides for discontinuation of residential water service for nonpayment. In the event that a water bill becomes delinquent, the District will apply this Policy for the collection of delinquent accounts, including notifications, fee assignments, and discontinuation of service. The District can be contacted by phone at (619)670-2222 to discuss options for avoiding discontinuation of water service for nonpayment under the terms of this policy. III.POLICY A.ISSUANCE, DUE DATE, AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE 1.Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. 2.Due Date. Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. 3.Final Payment Date. All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. 4.Payment of Charges. a.Place of Payment. Payments shall not be credited to a customer's account until cash, check, credit card, draft, electronic funds transfer, money order, or any other Exhibit A OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 2 of 8 acceptable form of payment that will be honored by a bank, has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer's account until it is received at the business office. b. Returned Check Charges. A returned payment charge (see Appendix A, 34.01 D.2. for charge) shall be added to a customer's account in each instance where payment has been made to the District with a check, draft, credit card, or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. B. DELINQUENT ACCOUNTS 1. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent on the day following the final payment date. 2. Late Payment Charge. A late payment charge (see Appendix A, policy 54 for charge) shall be added to a delinquent account as of the date the account becomes delinquent, and such charge(s) shall become an inseparable part of the amount due as of that time. A late payment charge shall not be added to any account that has no outstanding delinquencies. 3. Notice of Delinquency. A Delinquency Notice shall be mailed to each customer whose account is delinquent. The Delinquency Notice shall notify the customer that service will be turned off and discontinued unless payment is made. The Delinquency Notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within thirty (30) calendar days from the date of mailing or presentation of the Delinquency Notice to the customer, or service will be discontinued. 4. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. 5. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account. However, the partial payment shall not cause removal of the account from a delinquent status and OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 3 of 8 furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. 6.Financial Arrangements for Delinquent Accounts. a.Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service for a delinquent account if financial arrangements, satisfactory to the District, have been established. b.Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District in cash, or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief Financial Officer but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. i.Handling of Deposit. A deposit for a delinquent account shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. ii.Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. 7.Liens against Property for Delinquent Charges Upon written notice to the property owner, a lien against the property may be secured for unpaid bills. One or both of the following lien procedures may apply: a.Judgement Lien. In case any charges for water or other services remain unpaid, the amount of the unpaid charges may in the discretion of the District be secured at any time by filing for recording in the office of the county recorder, a OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 4 of 8 certificate specifying the amount of such charges and the name and address of the person liable therefor. The lien acquired thereby shall attach to all property within the County that is owned or thereafter acquired by the person with the delinquent account. Such lien shall have the force, priority, and effect of a judgment lien, and shall continue for 10 years from the filing date, unless released or discharged sooner. The lien may be extended, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien, by filing a new certificate in the office of the county recorder. A lien processing fee will be applied to any account against which a lien is filed (see Appendix A, policy 54 for charge). b.Tax Lien. Any unpaid charges or fees that are at least 60 days past due on July 1, may become part of the annual taxes levied upon the property upon which service is provided. In addition, if the charges remain unpaid by July 1, the outstanding charges, plus a delinquent tax roll fee (see Appendix A, policy 54 for the charge) will be added to the “secure tax roll” of the County of San Diego for collection. These lien procedures shall be in addition to any termination of service procedures. 8.Termination and Reinstatement of Water Service for Delinquent Accounts a.Termination of Service. If payment is not made in accordance with a Delinquency Notice, and the account remains unpaid for at least 60 days, residential service may be discontinued. The water meter or meters for said delinquent account may be turned off and locked. i.The District shall contact the customer(s) named on the account by telephone or written notice no less than seven (7) business days before discontinuation of termination service. A mailed delinquency notice fee will be charged(see Appendix A, policy 54 for charge)to the bill for a written notice mailed to the customer. ii.The District shall make a reasonable, good faith effort to contact an adult person residing at the premises identified on the account by telephone or in person, at least 48 hours prior to any termination of service. A delinquency tag fee OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 5 of 8 will be charged (see Appendix A, policy 54 for charge) to the bill for a contact made in person. b.Procedures for Occupants or Tenants to Become Customers of the District i.Scope. This section only applies when a property owner, landlord, manager, or operator of a residential service address is listed as the customer of record and has been issued a notice of intent to discontinue water service due to nonpayment. ii.Where an owner or manager is listed by the Dis- trict as the customer of record of the service, the District shall, in good faith, make every effort to inform the actual users of the services when the account is in arrears by means of a Notice of Termination of Service that service will be terminated in ten days. iii.Agreement to District Terms and Conditions of Service. The District will make service available to the actual residential occupants if each occupant agrees to the terms and conditions of service and meets the requirements of the District’s rules and regulations. Notwithstanding, if one or more of the occupants are willing and able to assume responsibility for the subsequent charges to the account to the satisfaction of the District, the District will make service available to the occupants who have met those requirements. iv.Verification of Tenancy. In order for the amount due on the delinquent account to be waived, an occupant who becomes a customer will verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code, at the discretion of the District. c.Residential water service shall not be terminated for non-payment in any of the following situations: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 6 of 8 i. During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non- payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for payment, shall be given an opportunity for a review by the General Manager, Chief Financial Officer, or any person designated by the General Manager. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time, not to exceed 12 months. No termination of service shall be affected for any customer who complies with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period. Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. ii. When a customer has been granted an extension of the period for payment of a bill. iii. In addition, the District will not terminate water service if all the following conditions are met: 1. The customer, or a tenant of the customer, submits certification from a primary care provider, as that term is defined in subparagraph (A) of paragraph (1) of subdivision (b) of Section 14088 of the Welfare and Institutions Code, that discontinuation of water service would be life threatening or pose a serious threat to the health and safety of a resident of the premises; and a. The customer is financially unable to pay within a normal billing cycle. This can be shown by either: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 7 of 8 Demonstrating that someone in the household is a recipient of one of the following programs: •CalWorks •CalFresh •General assistance •Medi-Cal •Supplemental Security Income/State Supplementary Payment Program •California Special Supplemental Nutrition Program for Women, Infants, and Children •Or declaring under penalty of perjury that household income is less than 200% of the federal poverty level; and b. The customer is willing to enter into an alternative payment arrangement, including an extension, amortization, or alternative payment schedule with respect to the delinquent charges. c. For customers who meet conditions a. and b. above, the District will offer one of the following options, to be selected by the District in its discretion: (i) an extension for payment, (ii) amortization of the outstanding balance or (iii) an alternative payment schedule. d. Termination of service. 1.If the customer fails to comply with an amortization agreement, alternative payment schedule, payment extension for 60 days or more, or if the customer does not pay his or her current residential service charges for at least 60 days, residential service may be discontinued no sooner than five (5) business days after the District posts a final notice of intent to disconnect services in a prominent and conspicuous location at the property. A delinquency tag fee will be charged (see Appendix A, policy 54 for OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 8 of 8 charge) to the bill for a contact made in person. 2.Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday, or at any time during which the business offices of the District are not open to the public. d.Reinstatement of Service. Reinstatement of service will occur during normal business hours of Monday through Friday 8:00am and 5:00pm. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and lock charges, have been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. Accounts that have payments received at the District office after 4:30pm may not have service restored until the next business day. e.Meter Lock Charge. A lock charge will be assessed to any account that has been terminated for non-payment. The charge to terminate service is set forth in Appendix A, 34.02 C. References A. California Water Code div. 1, ch. 1, § 106.3 B. California Health & Safety Code, div. 104, part 2, ch. 6, § 116900 et seq. (SB 998 [2018]) C. California Government Code, tit. 6, div. 1, § 60370 et seq. D. California Civil Code div. 3, part 2, title 2, § 1632 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 1 of 8 I.PURPOSE This Discontinuation of Water Service for Delinquent Accounts Policy (Policy) has been established to adhere to the laws regarding discontinuation of water service for residential customers due to non- payment of their water bill as required by Government Code § 60370 et seq. and Health & Safety Code § 116900 et seq. (California Senate Bill No. 998). II.BACKGROUND California Senate Bill No. 998 requires an urban or community water system, that supplies water to more than 200 service connections, to have a written policy that provides for discontinuation of residential water service for nonpayment. In the event that a water bill becomes delinquent, the District will apply this Policy for the collection of delinquent accounts, including notifications, fee assignments, and discontinuation of service. The District can be contacted by phone at (619)670-2222 to discuss options for avoiding discontinuation of water service for nonpayment under the terms of this policy. III.POLICY A.ISSUANCE, DUE DATE, AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE 1.Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. 2.Due Date. Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. 3.Final Payment Date. All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. 4.Payment of Charges. a.Place of Payment. Payments shall not be credited to a customer's account until cash, check, credit card, draft, electronic funds transfer, money order, or any other Exhibit B OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 2 of 8 acceptable form of payment that will be honored by a bank, has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer's account until it is received at the business office. b.Returned Check Charges. A returned payment charge (see Appendix A, 34.01 D.2. for charge) shall be added to a customer's account in each instance where payment has been made to the District with a check, draft, credit card, or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. B.DELINQUENT ACCOUNTS 1.For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent on the day following the final payment date. 2.Late Payment Charge. A late payment charge (see Appendix A, policy 54 for charge) shall be added to a delinquent account as of the date the account becomes delinquent, and such charge(s) shall become an inseparable part of the amount due as of that time. A late payment charge shall not be added to any account that has no outstanding delinquencies. 3.Notice of Delinquency. A Delinquency Notice shall be mailed to each customer whose account is delinquent. The Delinquency Notice shall notify the customer that service will be turned off and discontinued unless payment is made. The Delinquency Notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within thirty (30) calendar days from the date of mailing or presentation of the Delinquency Notice to the customer, or service will be discontinued. 4.Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. 5.Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account. However, the partial payment shall not cause removal of the account from a delinquent status and OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 3 of 8 furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. 6.Financial Arrangements for Delinquent Accounts. a.Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service for a delinquent account if financial arrangements, satisfactory to the District, have been established. b.Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District in cash, or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief Financial Officer but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. i.Handling of Deposit. A deposit for a delinquent account shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. ii.Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. 7.Liens against Property for Delinquent Charges Upon written notice to the property owner, a lien against the property may be secured for unpaid bills. One or both of the following lien procedures may apply: a.Judgement Lien. In case any charges for water or other services remain unpaid, the amount of the unpaid charges may in the discretion of the District be secured at any time by filing for recording in the office of the county recorder, a OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 4 of 8 certificate specifying the amount of such charges and the name and address of the person liable therefor. The lien acquired thereby shall attach to all property within the County that is owned or thereafter acquired by the person with the delinquent account. Such lien shall have the force, priority, and effect of a judgment lien, and shall continue for 10 years from the filing date, unless released or discharged sooner. The lien may be extended, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien, by filing a new certificate in the office of the county recorder. A lien processing fee will be applied to any account against which a lien is filed (see Appendix A, policy 54 for charge). b. Tax Lien. Any unpaid charges or fees that are at least 60 days past due on July 1, may become part of the annual taxes levied upon the property upon which service is provided. In addition, if the charges remain unpaid by July 1, the outstanding charges, plus a delinquent tax roll fee (see Appendix A, policy 54 for the charge) will be added to the “secure tax roll” of the County of San Diego for collection. These lien procedures shall be in addition to any termination of service procedures. 8. Termination and Reinstatement of Water Service for Delinquent Accounts a. Termination of Service. If payment is not made in accordance with a Delinquency Notice, and the account remains unpaid for at least 60 days, residential service may be discontinued. The water meter or meters for said delinquent account may be turned off and locked. i. The District shall contact the customer(s) named on the account by telephone or written notice no less than seven (7) business days before discontinuation of termination service. A mailed delinquency notice fee will be charged(see Appendix A, policy 54 for charge)to the bill for a written notice mailed to the customer. ii. The District shall make a reasonable, good faith effort to contact an adult person residing at the premises identified on the account by telephone or in person, at least 48 hours prior to any termination of service. A delinquency tag fee OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 5 of 8 will be charged (see Appendix A, policy 54 for charge) to the bill for a contact made in person. b.Procedures for Occupants or Tenants to Become Customers of the District i.Scope. This section only applies when a property owner, landlord, manager, or operator of a residential service address is listed as the customer of record and has been issued a notice of intent to discontinue water service due to nonpayment. ii.Where an owner or manager is listed by the Dis- trict as the customer of record of the service, the District shall, in good faith, make every effort to inform the actual users of the services when the account is in arrears by means of a Notice of Termination of Service that service will be terminated in ten days. iii.Agreement to District Terms and Conditions of Service. The District will make service available to the actual residential occupants if each occupant agrees to the terms and conditions of service and meets the requirements of the District’s rules and regulations. Notwithstanding, if one or more of the occupants are willing and able to assume responsibility for the subsequent charges to the account to the satisfaction of the District, the District will make service available to the occupants who have met those requirements. iv.Verification of Tenancy. In order for the amount due on the delinquent account to be waived, an occupant who becomes a customer will verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code, at the discretion of the District. c.Residential water service shall not be terminated for non-payment in any of the following situations: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 6 of 8 i. During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non- payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for payment, shall be given an opportunity for a review by the General Manager, Chief Financial Officer, or any person designated by the General Manager. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time, not to exceed 12 months. No termination of service shall be affected for any customer who complies with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period. Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. ii. When a customer has been granted an extension of the period for payment of a bill. iii. In addition, the District will not terminate water service if all the following conditions are met: 1. The customer, or a tenant of the customer, submits certification from a primary care provider, as that term is defined in subparagraph (A) of paragraph (1) of subdivision (b) of Section 14088 of the Welfare and Institutions Code, that discontinuation of water service would be life threatening or pose a serious threat to the health and safety of a resident of the premises; and a. The customer is financially unable to pay within a normal billing cycle. This can be shown by either: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 7 of 8 Demonstrating that someone in the household is a recipient of one of the following programs: •CalWorks •CalFresh •General assistance •Medi-Cal •Supplemental Security Income/State Supplementary Payment Program •California Special Supplemental Nutrition Program for Women, Infants, and Children •Or declaring under penalty of perjury that household income is less than 200% of the federal poverty level; and b. The customer is willing to enter into an alternative payment arrangement, including an extension, amortization, or alternative payment schedule with respect to the delinquent charges. c. For customers who meet conditions a. and b. above, the District will offer one of the following options, to be selected by the District in its discretion: (i) an extension for payment, (ii) amortization of the outstanding balance or (iii) an alternative payment schedule. d. Termination of service. 1.If the customer fails to comply with an amortization agreement, alternative payment schedule, payment extension for 60 days or more, or if the customer does not pay his or her current residential service charges for at least 60 days, residential service may be discontinued no sooner than five (5) business days after the District posts a final notice of intent to disconnect services in a prominent and conspicuous location at the property. A delinquency tag fee will be charged (see Appendix A, policy 54 for OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS 54 11/06/19 7/5/2023 Page 8 of 8 charge) to the bill for a contact made in person. 2.Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday, or at any time during which the business offices of the District are not open to the public. d.Reinstatement of Service. Reinstatement of service will occur during normal business hours of Monday through Friday 8:00am and 5:00pm. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and lock charges, have been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. Accounts that have payments received at the District office after 4:30pm may not have service restored until the next business day. e.Meter Lock Charge. A lock charge will be assessed to any account that has been terminated for non-payment. The charge to terminate service is set forth in Appendix A, 34.02 C. References A. California Water Code div. 1, ch. 1, § 106.3 B. California Health & Safety Code, div. 104, part 2, ch. 6, § 116900 et seq. (SB 998 [2018]) C. California Government Code, tit. 6, div. 1, § 60370 et seq. D. California Civil Code div. 3, part 2, title 2, § 1632 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 5, 2023 PROJECT: Various DIV. NO.ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief of Administrative Services Jose Martinez, General Manager SUBJECT: INFORMATIONAL ITEM – ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM UPGRADE GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide an informational item regarding the progress of the District's planned Enterprise Resource Planning (ERP) system upgrade. ANALYSIS: An Enterprise Resource Planning (ERP) system is an integrated system of software applications that allows an organization to manage its business processes and services. For nearly twenty years, the District has depended on the Tyler Eden ERP system to manage its core business functions including Financial, Human Resources, Purchasing, Permitting, and Utility Billing services. Unfortunately, the District’s ERP system, Tyler Eden, is approaching end-of-life (EOL) status (March 2027), and no additional updates will be made with only limited support. Given the EOL status, staff planned for and added a key objective in the District’s new strategic plan to conduct a needs assessment in order to identify a replacement for the District’s current ERP system, Tyler Eden. AGENDA ITEM 4 The District identified several crucial requirements for the new ERP system to include support for next-generation web-based applications, mobile features, business intelligence, financial analysis tools, and cloud-based hosting. These requirements encompass the need for a functional system that can effectively cater to the diverse and evolving needs of running a mid-size agency like the District. Furthermore, it is essential for the new ERP system to seamlessly integrate with other existing District systems in order to maximize efficiencies throughout all District departments. Over the past four years, staff evaluated a number of ERP systems, including Tyler Munis, Eden’s successor. During this time, District staff carefully reviewed the Munis ERP system and concluded that it correctly fits our future business and service needs. To validate this direction, staff contacted several public agencies to benchmark and gather additional input on the performance and value of the Tyler Munis ERP system. In addition, given the District's current Tyler licensing agreement, a significant cost typically associated with a new ERP system will be waived, saving the District substantial money. Furthermore, recognizing the high level of sensitivity associated with billing and customer interactions, staff is currently conducting additional evaluations of alternative Customer Service options, which includes assessing the suitability of the Tyler Munis ERP Utility Billing component. The implementation of the Tyler Munis ERP system will be an extensive project spanning multiple fiscal years. To ensure a successful implementation, the project will be divided into four main phases, allowing critical milestones to be achieved as we progress toward the go-live of the new ERP system. During the first phase, staff will evaluate, validate, and adopt new and more efficient workflows and business processes. Deliverable details for subsequent phases will be developed in conjunction with Tyler’s project management team. Estimated completion of the new Tyler Munis ERP system is expected to occur during the FY26-FY27 period. Proposed Timeline The project timeline outlines the sequential execution of these phases to ensure a well-structured and coordinated approach to the project. Each phase contributes to the overall success of the initiative by ensuring accurate data conversion, effective system implementation, efficient project management, and comprehensive user training. Below is a breakdown of the tentative project timeline and the proposed completion date for each phase: Phases* Completion* Module Go-Live Deliverables* April 2024 June 2025 Financial July 1, 2025 Chart of Accounts, General Ledger, Accounts Receivable, Purchasing, Capital Projects January 2025 December 2025 Human Capital Management/ Payroll January 1, 2026 Human Resources, Time & Attendance, Employee Records, Benefits October 2025 June 2026 Permitting July 1, 2026 Licensing, Permitting, Inspections April 2026 June 2027 Utility Billing July 1, 2027 Utility Billing, Customer Information System *estimated Next Steps Staff will present a final recommendation to the Board in August, seeking approval for the new ERP system. The request for approval will incorporate all the research, evaluations, and considerations made by staff, providing the Board with a comprehensive overview of the proposed system and its benefits for the District. FISCAL IMPACT:Joe Beachem, Chief Financial Officer Funding for the first phases of the upgrade has been allocated in the recently adopted FY24 CIP & Operating budget. Funding requests for the remaining phases will come before the Board for consideration at a subsequent date. STRATEGIC GOAL: This project will, in part, achieve the strategic objective of conducting a needs assessment and replacing the District's financial management system under the category of implementing technologies to improve response time, security, and operational effectiveness. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: INFORMATIONAL ITEM – ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM UPGRADE COMMITTEE ACTION: The Finance & Administration Committee met on June 21, 2023, to discuss this item. The Committee supports presentation to the full Board. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a committee approved item or modified to reflect any discussion or changes as directed by the committee prior to presentation to the full Board. Enterprise Resource Planning (ERP) System Update ATTACHMENT B Implementation of Tyler Eden System –May 2004 Tyler Eden System Sunset (EOL) – March 2027 Dec 2022 –Current April 2024-June 2025 Jan 2025 –Dec 2025 Oct 2025-June 2026 Apr 2026 –June 2027 Analysis Demonstrations/Recommendation Demonstration and Evaluation of Vendor Systems; Recommendation, Enhancing Requirements, Preparatory work for solicitation if needed, Board Approval Phase I: Financials Implementation, conversion, training, Project Management, etc., Phase II: HCM/Payroll Implementation, conversion, training, Project Management, etc., Phase III: Enterprise Permitting Implementation, conversion, training, Project Management, etc., Phase IV: Utility Billing Implementation, conversion, training, Project Management, etc., Kickoff, Interview, Initial Requirements [communications plan, business requirements, etc.] May 2022 –Dec 2022 Enterprise Resource Planning (ERP) Upgrade (Projected)