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Home My WebLink About02-19-19 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 TUESDAY February 19, 2019 12:30 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 BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. DISCUSS THE AUDIT PROCESS WITH THE DISTRICT’S FIRM, TEAMAN, RAMIREZ AND SMITH, INC., FOR THE FISCAL YEAR 2019 AUDIT (FAKHOURI) [5 minutes] 4. IMPOSE A $5,000 FINE TO WHITING TURNER CONSTRUCTION COMPANY FOR AN ILLEGAL CONNECTION TO A FIRE HYDRANT AND WATER THEFT (CAREY) [5 minutes] 5. ADOPT ORDINANCE NO. 570 TO AMEND SECTION 0 (DEFINITIONS AND MISCELLANEOUS PROVISIONS) AND SECTION 51 (DISTRICT SEWER SYSTEM) OF THE DISTRICT’S CODE OF ORDINANCES; AND, ADOPT RESOLUTION NO. 4357 TO AMEND BOARD OF DIRECTORS POLICY NO. 1 (PRIVATE SEWER LATERALS) OF THE DISTRICT’S CODE OF ORDINANCES (MARTIN) [5 minutes] 6. APPROVE STAFF’S RECOMMENDATION TO CONTINUE THE DISTRICT’S BANKING SERVICES WITH UNION BANK. STAFF WILL PERFORM THE NEXT BANKING SERVICES REVIEW IN SIX (6) YEARS AND A PRICING REVIEW IN THREE (3) YEARS (FAKHOURI) [5 minutes] 7. FISCAL YEAR 2019 MID-YEAR STRATEGIC PLAN UPDATE (SEGURA) [10 minutes] 2 8. ADJOURNMENT BOARD MEMBERS ATTENDING: Mitch Thompson, Chair Mark Robak 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. 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 all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability which would require accommodation in order to enable you to par- ticipate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on February 15, 2019 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on February 15, 2019. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Finance and Administration Committee MEETING DATE: February 19, 2019 SUBMITTED BY: Eid Fakhouri, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Kevin Koeppen, Assistant Chief of Finance Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Discuss the Audit Process with the District’s Audit Firm, Teaman, Ramirez & Smith, Inc., for the Fiscal Year 2019 Audit GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: See Attachment A. PURPOSE: The District’s audit firm, Teaman, Ramirez & Smith, Inc., will discuss the audit process for the Fiscal Year 2019 audit and be available for questions regarding the audit process. This overview also provides the opportunity for the Committee to discuss the upcoming audit procedures. ANALYSIS: The audit will consist of four major components: 1) Standard audit services, to provide an audit opinion on the District’s financial statements; 2) Agreed upon procedures related to the District’s Investment Policy procedures, to issue a report on staff’s compliance 2 with District’s policy; 3) A State Controllers Report, required by the State of California; and 4) Assistance in preparation of the District’s Comprehensive Annual Financial Report (CAFR). The following is a tentative planning schedule for the major activities involved in completing the FY 2019 financial audit:  Apr 2019: Interim fieldwork (4-5 days).  Aug-2019: Final fieldwork (4-5 days).  Oct-2019: Finance Committee presentation of audited financials.  Nov-2019: Board presentation of the audited financials.  Dec-2019: Submit completed CAFR to the Government Finance Officers Association (GFOA). The auditor’s responsibility will include a review of internal controls; compliance testing with laws, regulations and contracts; testing to assure that the financial statements are free of material misstatement; and communicating significant matters that are relevant to the overseeing of financial reporting. Additionally, the auditors assist with the preparation and review of the required supplementary information to supplement the basic financial statements. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: None. Attachments: A) Committee Action ATTACHMENT A SUBJECT/PROJECT: Discuss the Audit Process with the District’s Audit Firm, Teaman, Ramirez & Smith, Inc., for the Fiscal Year 2019 Audit COMMITTEE ACTION: This is an informational item only. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 6, 2019 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Impose a $5,000 Fine to Whiting Turner Construction Company for an Illegal Connection to a Fire Hydrant and Water Theft GENERAL MANAGER’S RECOMMENDATION: That the Board uphold staff’s decision to impose a $5,000 fine to Whiting Turner Construction Company for an illegal connection to a fire hydrant and water theft. COMMITTEE ACTION: See Attachment A. PURPOSE: To ensure the District continues to protect the water supply and applies violations consistent with the Code of Ordinances. ANALYSIS: On November 30, 2018, Otay Inspector Jeff Edwards encountered a hose illegally connected to a fire hydrant at the intersection of Stylus Street and Montage. It was determined one of Whiting Turner Construction Company’s subcontractors, Farley Interlocking Pavers, had hooked the hose up to the hydrant. Mr. Edwards immediately disconnected the hose and reported the situation to Sean Harmon of Whiting Turner. This was the third time that a subcontractor of 2 Whiting Turner had hooked up to a fire hydrant without using a temporary meter. The first incident occurred on October 15th when Farley Interlocking Pavers hooked up to a hydrant on lot 3 of the Milennia project and the second occurred on October 18th when Apptek Stucco hooked up to a hydrant on lot 2. Mr. Edwards spoke with both Sean Harmon and Jonathan Mendez from Whiting Turner about both of these incidents. The District’s Code of Ordinances Section 24.04 states “No person may withdraw water from any fire hydrant, blow-off valve, or other connection to the facilities of the District, unless an agreement has been entered into with this District for such withdrawal. Such agreement shall provide that all withdrawals shall be made through a meter.” A temporary water meter was installed for Whiting Turner on April 30, 2018. Per the Temporary Water Meter Uses and Procedures agreement that Whiting Turner’s agent, Wayne Toups, signed on April 10, 2018, Whiting Turner acknowledged they are subject to any fines associated with an unauthorized connection made by the company’s subcontractors or independent contractors. Section 71A of the District’s Code of Ordinances prohibits “installing or benefiting from any unauthorized connection to any District system.” Section 72.03D of the District’s Code of Ordinances states that illegal connections or other violations relating to fire service are subject to a fine, at the option of the District. Section 72.06 C.2 specifies that a Type II fine is assessed on “any violation that has the potential to endanger the health or safety, including, but not limited to, unauthorized or illegal connections, meter tampering, water theft, or knowingly filing a false statement or report required by a local health officer.” A Type II fine carries a maximum penalty of $5,000 for each day the violation continues. Pursuant to Section 72 of the District’s Code of Ordinances, the District assessed a $5,000 fine to Whiting Turner Construction Company on December 28, 2018. Whiting Turner has authorized Farley Interlocking Pavers to appeal this fine on their behalf. Charissa Farley of Farley Interlocking Pavers, appeared at the Board Meeting on February 6, 2019 to verbally appeal the fine. FISCAL IMPACT: The fiscal impact is limited to the amount of the fine assessed. 3 STRATEGIC GOAL: Enforce the District’s Code of Ordinances and protect the public water supply. LEGAL IMPACT: None. Attachments: A) Committee Action Form B) Temporary Water Meter Uses and Procedures Agreement C) Three Photos of the Illegal Connections D) Code Section 24 E) Code Section 71 F) Code Section 72 ATTACHMENT A SUBJECT/PROJECT: Impose a $5,000 Fine to Whiting Turner Construction Company for an Illegal Connection to a Fire Hydrant and Water Theft COMMITTEE ACTION: That the Finance, Administration and Communications Committee recommend that the Board uphold staff’s decision to impose a $5,000 fine to Whiting Turner Construction Company for an illegal connection to a fire hydrant and water theft. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. SECTION 24 CERTAIN SERVICE LIMITATIONS 24.01 NON-SERVICE AREAS A. Except as provided in Section 25 of this Code, no customer may use or permit the use of water: 1. for any property other than that described in the application for service; 2. for any property outside of the boundaries of an improvement district; or 3. for property outside the boundaries of the District. B. Water service shall not be supplied to more than one parcel through one meter, except for master meters when approved by the General Manager. A "parcel" shall be deemed to mean land or property identified as a parcel by the County Tax Assessor. 24.02 (RESERVED) 24.03 (RESERVED) 24.04 FIRE HYDRANTS AND CERTAIN OTHER FACILITIES A. No person may withdraw water from any fire hydrant, blow-off valve, or other connection to the facilities of this District, unless an agreement has been entered into with the District for such withdrawal. Such agreement shall provide that all withdrawals shall be made through a meter. B. The provisions of paragraph A shall not apply to withdrawals of water made from fire hydrants or other facilities for fire department purposes or to withdrawals made by other governmental agencies with prior District approval. Attachment D 71-1 Adopted 2/03/2010 SECTION 71. VIOLATIONS; PROHIBITED ACTIVITIES In addition to the prohibited practices described in any other sections of this Code or by law, all persons and entities are specifically prohibited from doing, or aiding or abetting any person in, any of the following: A. Installing or benefiting from any unauthorized connection to any District system; B. Refusing or failing to pay for services, in full, when bills are due; C. Entering, improving, purchasing, trading, selling, borrowing, using or otherwise benefiting from any District property or service without authorization from the District or without following authorized procedure; D. Vandalizing, tampering with, or threatening any portion of the District systems, services, facilities or property, including but not limited to taking any action to prevent any meter or other equipment device from accurately performing its function; E. Failing or refusing to install, maintain in good repair and working condition, or test any portion of any facilities required by the District in connection with a service, including any safety or prevention device or any measuring device; F. Knowingly permitting leaks or other wastes of water or recycled water or leaks or spills of sewage or other discharge; G. Preventing District staff from accessing any facilities connected to a service, including but not limited to meters located on private property, or in any manner threatening or interfering with any District staff performing his or her duties; H. Using or allowing the use of service for more than one parcel through one meter (except for master meters approved by the General Manager under Section 24.01) or supplying, reselling, using or permitting the use of any service by any other parcel, except as permitted under Section 27.04 of this Code or in writing by the District; I. Using or permitting the use of any District service for property outside the boundaries of an improvement district or not subject to District taxes, without prior written consent of the District; J. Using or attempting to use or connect to any fire hydrant within the District without proper authorization as required by Section 24.04 of this Code; or K. Violating or refusing to comply with any condition of service under this Code or with any law or regulation applicable to the use of any such service; including violating any conditions of any permit required for service or to regulate waste, such as a waste discharge permit under Sections 26 or 52 of the Code, or failing or refusing to obtain, maintain or comply with any required permit. Attachment E SECTION 72 PENALTIES AND DAMAGES 72.01 GENERAL A. User and Owner Responsibility. Each person receiving service, or that owns a property that receives service, agrees to pay the District any applicable fees and charges. Such persons are also responsible for all costs and damages in connection with any violation of this Code relating to their service. B. District Not Liable. The District shall bear no liability for any cost, damage, claim or expense incurred by District or any responsible party or third party on behalf of the District arising from or related to any violation, including, but not limited to, costs, damages, claims or expenses arising from any corrective action of the District. Such corrective actions include, but are not limited to, the removal, confiscation, disposition or use of any device, equipment, improvement or material encroaching on any District property or used in connection with any other violation. C. District Obligation to Collect Damages. Pursuant to Government Code Section 53069.6, the District shall take all practical and reasonable steps, including appropriate legal action, if necessary, to recover civil damages for the negligent, willful, or unlawful damaging or taking of property of the District. D. Assessment of Damages. Actual damages resulting from any violation, including late payment or failure or refusal to pay for service and any interest thereon, may be assessed and collected as part of a customer’s monthly bill to the extent allowed by law. The District will separately invoice any actual damages not assessed on a monthly bill, including any damages assessed against any responsible person who is not a customer. E. Unpaid or Partially Paid Bills. Bills issued by the District are due in full as provided in such bills. Failure to timely pay bills in full may lead to a reduction, suspension, or termination of service, as provided in Section 72.02(B), below, in Section 34 of this Code, or pursuant to other provisions of this Code or applicable law. In addition, if bills remain unpaid, in full or in part, the District may lien the delinquent real property and may assess damages and penalties established by District or otherwise authorized by law. 72.02 VIOLATIONS AND GENERAL PENALTIES FOR VIOLATIONS A. Notice of Violation. Notice and a reasonable period of time to correct a violation will be given prior to the termination, reduction or suspension of service or the imposition of any administrative fine. However, the District may, without notice, correct any condition or violation that endangers the health or safety or impairs any District service, facility or property or is otherwise determined by the District to require immediate action. Attachment F 1. Investigative Procedures. If a possible violation is identified, observed or reported, the District will contact the allegedly responsible party to investigate. If the violation is in fact occurring, District staff will issue a notice of violation or otherwise inform the responsible party that corrective actions must be taken within a period of time deemed reasonable by the District, taking into consideration the nature of the violation and the potential damage that can arise if the violation continues. 2. Content of Notice of Violation. The notice will describe the violation, indicate the actions that must be taken, and indicate the date by which those actions must be taken. Unless immediate action is required, the notice will provide a reasonable time for the violation to be corrected. The notice will also specify the amount of any delinquency, actual damages or other amounts due the District, if any, and the telephone number of a representative of the District who can provide additional information. 3. No Notice Required; District Action. If the District determines that immediate or prompt correction of the violation is necessary to prevent waste or to maintain the integrity of the water supply, systems or facilities of the District, or for the immediate protection of the health, safety or welfare of persons or property, or for any other compelling reason, the District will take any action deemed necessary (including suspension, reduction or termination of service; locking or removal of meters; or repairs of any improvements) and a notice will be left at the affected parcel specifying any further corrective actions required. Any costs incurred by District and any applicable fines will be the responsibility of the responsible party. 4. Notice; Failure to Comply. The responsible party will be given an opportunity to correct the violation and to provide verbal, written and pictorial exculpatory evidence. If such evidence does not exonerate the responsible parties and if the violation(s) are not corrected to the satisfaction of the District within the time provided, the District may assess cost and penalties, administrative fines and may take any other action or pursue any other remedy available. Furthermore, if the violation concerns any service requirement or facility, or to prevent waste or protect the integrity of the system or the health and safety of the public, the District may suspend, reduce or terminate service to the extent permitted by law. B. Service Termination, Suspension or Reduction; Removing or Locking Meters. Service may be reduced, suspended or terminated for failure to pay for service or in connection with a violation of this Code or applicable law. Termination, suspension or reduction of service will proceed as follows: 1. Notice Prior to Termination, Suspension or Reduction of Service. Except as provided in Paragraph A, above, or in other provisions of this Code or applicable law, not less than ten (10) days notice will be given prior to the date service is reduced, suspended or terminated; provided that, where service is terminated due to failure to comply with the terms of an amortization agreement, under Section 34 of this Code, only forty-eight (48) hours prior notice is required. The notice will be delivered to the affected parcel and, if the owner of record does not reside in the affected parcel, a copy of the notice will be forwarded to the owner’s address on record with the assessor’s office via any available means, such as personal delivery, certified mail return receipt requested, email, fax or fed-ex. 2. Termination for failure to pay for service. The District may discontinue any or all service due to failure to pay the whole or any part of a bill issued by the District. In connection with termination of water service, the provisions of Section 60373 of the Government Code, or any other appropriate provision of law, or as set forth in Section 34 of this Code of Ordinance, will be followed. In connection with sewer, Section 71672 of the California Water Code or other applicable requirements will be followed. C. Reconnection or Reinstatement of Service, Unlocking or Reinstalling Meters. If service is reduced, suspended or terminated for any reason, each of the following conditions applicable to the situation must be satisfied or arrangements satisfactory to the General Manager or a designee must be made before service is reinstated: 1. Outstanding amounts for service bills, including any service charges for benefits derived from the violation, must be paid; 2. All required deposits (including any security deposits), actual damages, fines, costs, charges and penalties must be paid; 3. Any amounts due for the removal, locking, servicing, repair or replacement of meters or other facilities required for service must be paid at the rates in effect at the time of reinstatement, as set forth on Appendix A to this Code or other schedule of fees then in effect; 4. All violations and related damages or conditions must have been corrected and/or repaired and evidence satisfactory to the District to that effect and demonstrating that it is safe to reinstate service, must have been provided to and approved by the District; and 5. If the service was originally in the name of a tenant, the District may require the owner of the parcel to request the service account under his or her name and responsibility. D. Owner Responsibility for Account. In addition to owners’ obligations under subsection (A) of section 72.01 and subsection (C)(5) of Section 72.02, above, and any other remedies provided by this Code or by applicable law, Owners may be required to deliver to the District a form of acknowledgement or authorization for service to a tenant. In addition, if (i) a tenant engages in any violation, (ii) if the District has reduced, suspended or terminated any service to a tenant three (3) times within any twenty-four (24) month period or (iii) the tenant has failed or refuses to comply with the terms of payment arrangements with the District four (4) times, the District reserves the right to demand that the property owner take responsibility for services to the tenant- occupied parcel. The General Manager or a designee shall develop procedures to implement these requirements. E. Right of Access to Customer’s Premises; Interference. If any person refuses to consent to an investigation of a possible violation, or prevents or refuses to allow access to District staff or authorized representatives to any premises or facility during an investigation or in connection with any termination, reduction or suspension of service, the District may seek an injunction or a warrant, as provided in Section 71601 of the Water Code. F. Other Remedies. In addition to the actions contemplated in this Section, the District may seek other remedies authorized or required by any applicable law, including imposing an administrative fine, pursuant to Section 72.06, or pursuing other available civil or criminal remedies. 72.03 CERTAIN SPECIFIC OPERATIONAL VIOLATIONS A. Unauthorized Connections. The District shall bear no cost or liability for any unauthorized connection. In addition to other remedies, any unauthorized connection is subject to a Type II fine, pursuant to Section 72.06 depending upon the severity, duration and reoccurrence of the violation and any other factors the District may reasonably take into consideration.., Further, the District may demand that the unauthorized connection be immediately disconnected. In the alternative, if the customer refuses to take immediate action, or if immediate actions is necessary as set forth in Section 72.02(A)(3), above, the District may immediately disconnect, remove, confiscate, destroy or dispose of any parts installed or used for the unauthorized connection, all at the expense of the customer and any other responsible party. To the extent allowed by law, the District may also, immediately or as otherwise deemed advisable by the District, terminate service to any parcel and any person that allows, uses or benefits from such unauthorized connection. B. Water waste. No customer shall knowingly permit leaks or other wastes of water, including, but not limited to, allowing runoff on any portion of his or her property, engaging in non-permitted uses of water, or failing to take corrective action after notice of any leaks or water waste is given. If the District determines that water waste is occurring, the District will: 1. Notify the customer that they are in violation of the District’s Code of Ordinances. 2. Notwithstanding the foregoing, the District may, without prior notice, repair or replace any District controlled facilities at the cost of the person identified as the responsible party, if any. 3. If the water waste is due to a condition within the customer’s property or facilities, the District may (i) require the customer to repair or replace the affected facilities, immediately or within a reasonable time, depending on the situation; or (ii) if necessary to prevent further waste, adjust, lock or remove the meter. If any repair or replacement required is not completed in a timely manner, the District may perform the repair or replacement at the cost of the customer or may terminate service without further notice. C. Meter Tampering. In addition to other remedies, tampering is subject to a Type II fine pursuant to Section 72.06 depending upon the severity, duration and reoccurrence of the violation and any other factors the District may reasonably take into consideration. Additionally, tampering may be prosecuted as a crime under Section 498 of the California Penal Code, as set forth in Section 73.01 of this Code. D. Fire Service Violation. Fire service is subject to compliance with all provisions of this Code and the law concerning water service, and failure to comply with such provisions may result in the reduction, suspension, termination or disconnection of water service for fire protection, without any liability to District. Furthermore, illegal connections or other violations relating to fire service are subject to either a Type I or Type II fine, at the option of the District, and may be prosecuted as crimes. E. Backflow prevention, screens and other safety devices. If service requirements include the installation, testing and maintenance of backflow prevention devices (Section 23.04 of this Code), screens or other safety operational items, in addition to, or in lieu of, other remedies provided herein, the District may apply any of the remedies under Section VI and VII of the District’s Ordinance No. 386, as amended or renumbered. Furthermore, violations relating to backflow testing may be prosecuted as set forth in Section 73.01 of this Code. Violations of backflow requirements or knowingly filing a false statement or report required by a local health officer are subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. F. Violation Concerning Recycled Water Service. In addition to any fine, revocation, suspension or penalty imposed under Section 26 in connection with any violation of said Section, including permit suspension or revocation under Section 26.07.C, the District may (i) suspend or terminate water and or sewer service to the property, the owner and/or the operator; (ii) require payment by the owner for any damage to the District facilities, reimbursement to District of costs and expenses, or fines imposed on the District in connection with such violation; or (iii) prosecute the responsible party under any applicable provision of this Code, the Water Code or the Penal Code. Additionally, any violation concerning recycled water service is subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. G. Violation Concerning Sewer Service. In addition to any other remedy, fine or penalty provided by this Code or applicable law, failure to comply with any requirements of sewer service, including requirements for the preservation of public health, safety and welfare and including, but not limited to, the requirements established under Article II, Chapter 2, Sections 50 to 56.04 of this Code, as hereafter amended or as supplemented by other District Rules and Regulations for Sewer Service, the California Health and Safety Code, the California Code of Regulations, Titles 17 and 22, and Water Agency Standards. Furthermore, may be prosecuted as set forth in Section 73.01 of this Code. Additionally, any violation concerning sewer service is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. H. Theft, Fraud, or Misappropriation. In addition to any other remedy, fine or penalty provided by this Code or applicable law, any violation involving theft, fraud or misappropriation of District water, services, or property is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. 72.04 VIOLATIONS OF CONSERVATION OR OTHER WATER USE RESTRICTION PROVISIONS The District has established and published conservation measures set forth in Section 39 of the Code. Commencing with declared Level 2 conditions, the District may assess water shortage rates and charges previously adopted. In addition, after notice of the declared water shortage level is given as required by law, any person who uses, causes to be used, or permits the use of water in violation of such requirements (other than a person who qualifies for an applicable exemption, if any) may be assessed damages, penalties and fines. A. Additional provisions concerning use restriction violations. In addition to payment of actual damages, the following may apply to a violation of any water conservation or water use restriction measure: 1. A change on the account holder shall not cause the account to revert to pre-violation status unless the new account holder provides evidence that it is not related to the violator and had no responsibility for the prior account. 2. The District may reduce, suspend or terminate service to any parcel immediately and without further notice if the violation involves or results in water waste, as set for in Section 72.03(B), above. 3. Willful violations of mandatory conservation measures described in Section 39 of this Code may be enforced by terminating service to the property at which the violation occurs, as provided by Section 356 of the California Water Code. B. Prosecution for violations of conservation measures. Pursuant to Section 377 and 71644 of the California Water Code, each violation of the District’s Conservation Ordinance, set fort in Section 39 of this Code, may be prosecuted as a misdemeanor, punishable by imprisonment in the County jail for no more than thirty (30) days or by a fine, as set forth in subsection (C), below. C. Assessment of fines for violations of conservation or water use restriction provisions. Any responsible party who fails to comply with any conservation or use restriction measure is subject to the assessment of an administrative Type I fine, added to account, pursuant to Section 72.06, below. 72.05 VIOLATIONS INVOLVING DISTRICT REAL PROPERTY A. Removal, Disposition and Costs. The District has absolute discretion to determine the corrective action required in connection with any violation involving District real property, including requiring the owner of any unauthorized encroachment or improvement to remove it or taking action to remove it immediately and without notice. Any improvements or uses placed within or on any District property or right of way are subject to the following: 1. Costs and Damages. All costs and damages shall be the responsibility of the customer and any other responsible party. Furthermore, the District shall not be liable for costs to repair or replace any unauthorized encroachment or improvement, or any property, improvement or thing used in connection with, supported by or attached thereto. 2. Burden of proof. The burden shall be on the user to prove to the District’s satisfaction, the authority, scope and extent of any right to access, improve or use the District’s property. Only written evidence in the form of an agreement, deed, statute, recorded or official map or plat, governmental regulation or other right may be used to establish such claim of right. B. Notice. In connection with any improvement or use that does not constitute a health hazard and does not interfere with the District’s use of its property, the District will give written notice of up to sixty (60) days, at the discretion of the General Manager, to cease, terminate, eliminate or remove the offending improvement, structure or use. Any written notice will be given to the responsible party or posted at the property where the trespass or encroachment occurs. If the responsible party is not the owner of any real property affected by the violation, the District will also give notice to the owner of record at the address on record with the assessor’s office via personal delivery, certified mail return receipt requested or via Fed-Ex. C. Immediate action. In connection with any improvement that constitutes a health hazard or interferes with the District’s use of any District property, the District will take any immediate action deemed necessary by the General Manager. D. Fines. In addition to all other remedies provided under this Article or under applicable law, the District may impose a fine as provided in Section 72.06. Additionally, the District may impose a fine up to either the amount specified on any sign, or a Type I or Type II fine, at the option of the District, in connection with any trespass on District property in violation of a sign prohibiting trespassing, pursuant to Section 72.06, below. E. Separate violation. A separate violation will accrue for each day after the deadline to cease, terminate, eliminate or remove the trespass or encroachment, as set forth in the notice. 72.06 ADMINISTRATIVE FINES Any administrative fines established herein shall be in the nature of civil penalties and shall be additional and cumulative to any other fines, damages or any other charges established by the District and are also separate from and cumulative to any other civil or criminal penalty, fine or remedy. In connection with each violation, the District may assess a fine up to the amount specified in the schedule of fines for the type of fine being imposed. Each day during which a violation is in effect constitutes a separate violation and violations are cumulative while the account is in the name of the original violator or any person that participated in or benefited from the violation. Except where the violation creates an immediate danger to health or safety, the person responsible for the continuing violation will be provided a reasonable period of time to correct or otherwise remedy the violation(s) prior to the imposition of administrative fines. A. Assessment of Fines for Technical Violations of Other Code Provisions. Any person who engages in a violation of any provision of this Code is subject to the assessment of a separate administrative Type I Fine, unless subject to a more severe fine as set forth in this Code. B. Assessment of Separate Fines. Nothing in this code or the limits specified per violation shall prevent the imposition of separate fines for each separate violation committed during a single act. For example, in connection with a violation concerning sewer service that involves a trespass on any portion of the District’s real property, separate fines may be assessed for the trespass, the damage to District personal property, the damage to District real property; the damage to the sewer system and the activity resulting on all the damages. C. Types of Fines. The amount for each type of fine specified below may increase automatically to reflect any higher amount authorized by law or regulation. The District has determined to establish two types of fines based on the nature of the violation, as follows: 1. Type I Fine. Any violation that does not have the potential to endanger the health or safety of the public. The fine will not exceed the amount specified in the Section 36900(b) of the California Government Code or Appendix A for a first, second, third or each additional violation of that same ordinance or requirement within a twelve-month period. 2. Type II Fine. Any violation that has the potential to endanger the health or safety, including, but not limited to, unauthorized or illegal connections, meter tampering, water theft, or knowingly filing a false statement or report required by a local health officer . The fine will not exceed the amount specified on Appendix A per each day the violation is identified or continues. D. Collection of Fines. Any fines assessed by the District are payable directly to the District, are due upon issuance or as otherwise indicated on the notice or bill, and are delinquent 30 calendar days from the due date. E. Notice of Administrative Fine; Content. Notice of an administrative fine pursuant to this section will contain the following information: (i) a brief description of the violation(s); (ii) the date and location of the violation(s); (iii) a brief description of corrective action(s) required, as appropriate; (iv) a statement explaining that each day the violation continues constitutes a new violation; (v) in the case of violations creating an immediate danger to health or safety, the amount of civil penalty assessed or, in all other cases, the amount of civil penalty to be assessed if the violation(s) are not corrected within the time provided by the notice; (vi) a statement of the procedure for payment and the consequences of failure to pay; (vii) contact information for the District employee that should be contacted to discuss the notice and provide evidence of compliance; and (viii) a brief statement describing the responsible party’s right to request further review, pursuant to subsection (F), below. F. Option for Board Review . Persons receiving a Notice of Administrative Fine may request Board review. The request for Board consideration must be in writing, must be received by the District Secretary within ten (10) calendar days from the date of the notice and must include contact information, an explanation of the basis for the request, and any supporting documentation said person(s) wish to provide to the Board for review and consideration. District staff will review the petitioner’s request and will make a recommendation to the Board in light of its investigation. The District will provide notice of the date, time and place for Board consideration by electronic means, facsimile or first class mail sent to the return addressee indicated on the written request. G. Any fines assessed pursuant to the Notice of Administrative Fines must be timely paid notwithstanding the filing of a request for Board review. At the time of Board review, the petitioner may, address the Board and respond to the charges to show good cause why the fine should not be imposed; however, the customer is not entitled to a full judicial-type hearing with cross examination, sworn testimony, etc. In accordance with the provisions of Government Code Section 53069.4, the Board’s determination shall be final and conclusive, and shall be deemed confirmed, if not appealed within 20 calendar days to the Superior Court of the County of San Diego. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 6, 2019 SUBMITTED BY: Dan Martin Assistant Chief of Engineering PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 570 Amending Section 0 Definitions and Miscellaneous Provisions, and Section 51 District Sewer System of the District’s Code of Ordinances; and, Adopt Resolution No. 4357 Amending Policy No. 1 for Private Sewer Laterals of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt: 1. Ordinance No. 570 amending Section 0 Definitions and Miscellaneous Provisions, and Section 51 District Sewer System of the District’s Code of Ordinances; and, 2. Resolution No. 4357 amending Policy No. 1 for Private Sewer Laterals of the District’s Code of Ordinances. COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of the proposed amendments outlined in this staff report is to update Policy No. 1 of the District’s Code of Ordinances to provide additional clarity with respect to responsibility and maintenance of a property’s sewer lateral. 2 ANALYSIS: Policy No. 1 of the District’s Code of Ordinances establishes that sewer laterals are the responsibility of the owner of the property that the sewer lateral serves. Staff has reviewed the current Policy No. 1, dated October 15, 1984. A comparative analysis of sewer lateral policies for neighboring sewer providers, including the County of San Diego, City of Chula Vista, City of El Cajon, City of La Mesa, and Padre Dam Municipal Water District was also performed by staff as part of this review for consistency and equitability between the District and other agencies. This review noted that the District’s current policy which states that the sewer laterals are the responsibility of property owners is consistent with the policies of neighboring sewer providers. Although the specific policy language for each sewer provider is written in different forms, in all cases, except for Padre Dam, the neighboring sewer provider policies state that the maintenance, cleaning, and repair of sewer laterals from the private property structure to the public sewer main connection are the responsibility of the property owner. In the case of Padre Dam, their policy for repairs of the sewer lateral in the public right-of-way states that if documentation verifies a sewer lateral repair issue, and not a maintenance issue, Padre Dam will make the repair at no cost to the owner. The review by District staff has concluded that additional language should be added to Policy No. 1 of the District’s Code of Ordinances to provide clarity to the property owner’s ownership, responsibility, and maintenance of the sewer lateral that serves their property. The amendments to Policy No. 1 provide clarity on the property owner’s responsibility for:  District notification of a stoppage in a sewer lateral;  Repair/replacement costs associated with the property’s sewer lateral;  Costs associated with corrective work or upsizing of the sewer lateral;  Permitting requirements; and  Property owner’s responsibility for sewer lateral overflows. 3 The amendments to Policy No. 1 also include the District’s responsibility for the relocation of a sewer lateral as part of a District sponsored project. The proposed amendments to Section 0 of the Code of Ordinances add definitions for District Sewer, Sewer Lateral, and Sewer Maintenance. This staff recommendation also includes a proposed amendment to Section 51 of the Code of Ordinances. The word “District” is stricken from Section 51.02 as it relates to a sewer lateral to avoid any ambiguity to the property owner’s responsibility for the sewer lateral. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Adoption of Ordinance No. 570 and Resolution No. 4357 supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, “To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices.” LEGAL IMPACT: None. DM/RP:jf P:\Public-s\STAFF REPORTS\2019\BD 02-06-19\BD 02-06-19 Staff Report Policy 1 Proposed Changes Report (DM-RP).docx Attachments: Attachment A – Committee Action Attachment B - Ordinance No. 570 Exhibit 1 – Strike-through Section 0 Exhibit 2 – Strike-through Section 51 Attachment C – Resolution No. 4357 Exhibit 1 – Strike-through Policy No. 1 Attachment D – Proposed Section 0 Attachment E – Proposed Section 51 Attachment F – Proposed Policy No. 1 ATTACHMENT A SUBJECT/PROJECT: VARIOUS Adopt Ordinance No. 570 Amending Section 0 Definitions and Miscellaneous Provisions, and Section 51 District Sewer System of the District’s Code of Ordinances; and Adopt Resolution No. 4357 Amending Policy No. 1 for Private Sewer Laterals of the District’s Code of Ordinances COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a Committee Meeting held on February 19, 2019. The Committee supported staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. Attachment B ORDINANCE NO. 570 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 0 DEFINITIONS, AND SECTION 51 DISTRICT SEWER SYSTEM 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 0 Definitions, and Section 51 District Sewer System be amended as per Exhibits 1 and 2 (attached). NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 0 (Attachment D), and Section 51 (Attachment E) of the Code of Ordinances shall become effective March 6, 2019. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 6th day of March, 2019, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary ATTACHMENT B – EXHIBIT 1 0-1 DIVISION I DISTRICT ADMINISTRATION CHAPTER 1 GENERAL PROVISIONS SECTION 0 DEFINITIONS AND MISCELLANEOUS PROVISIONS 0.01 TITLE - REFERENCE TO CODE This Code shall be known as the "Otay Water District Code of Ordinances." References herein to the "Code" or the "Ordinances" shall be deemed to mean said Code of Ordinances. 0.02 DEFINITIONS The following words as used in this Code shall have the meanings set forth below unless otherwise apparent in the context in which they are used: "Board of Directors" or "Board" means the Board of Directors of the District. "Board Member" or "Member of the Board" means a Director of the Board of Directors. "Central Area Service Zone" means all land within the bounda- ries of the area identified as the Central Area Service Zone as shown on the map on file in the Office of the District Sec- retary. "County" means the County of San Diego. "Customer" means any person, firm, association, partnership, corporation or governmental agency supplied or entitled to be supplied with water or sewer service by the District for com- pensation. "Developer" means any person, firm, association, partnership, joint venture or corporation who applies for acceptance by the District of an addition or change to its water distribution system or its sewer collection system. “Development” means the improvement of a parcel or a group of parcels that are owned by the same or affiliated parent entity, subsidiary, or Developer. "District" means the Otay Water District (formerly Otay Municipal Water District). ATTACHMENT B – EXHIBIT 1 0-2 “District Sewer” means sewer mains owned and operated by the District which are tributaries to treatment or reclamation facilities operated or utilized by the District, excluding Sewer Laterals. "Equivalent Dwelling Unit" or "EDU" means a unit of meas- urement for water service or sewer service. For water service, one EDU shall be considered to be equivalent to a ¾-inch meter, and is also typically considered to be equivalent to 650 gallons per day (gpd) for planning pur- poses. For sewer service, one EDU shall be 250 gallons per day (gpd) of residential strength wastewater defined as having a maximum concentration of 280 milligrams per liter (mg/l) biochemical oxygen demand (BOD) and 234 mil- ligrams per liter (mg/l) suspended solids. "General Manager" means the General Manager of the Dis- trict or the designated representative. "Irrigated area" means the area of land (measured in square feet) which may require supplemental water (pota- ble or recycled) from the District for the support of landscaping, but does not include decks, walkways, pat- ios, tennis courts or any other permanently hard-surfaced areas maintained within or around landscaped areas. Trees shall have an irrigated area equal to the area within the circumference of the canopy (drip line) of the tree at maturity. "Landscape or landscaping" means the living plant mate- rial and organic or inorganic ground covers (mulches) used for aesthetic, erosion control and/or fire control purposes as specified by city or county regulations. "Line Extension" means a water or sewer main constructed from the termination point of an existing District main to provide service beyond the existing main. "Non-permanent Irrigation Service" means temporary water service furnished to establish and maintain re-vegetated native plants. “Facilities” means structures, and water or sewer system elements that may be located above or below ground level including, but not limited to, pipelines, system appurtenances, pump stations and reservoirs. "Off-Site Facilities" means facilities which must be con- structed outside the boundaries of a development to bring utility service from the nearest District facility to the boundary of the land being developed. ATTACHMENT B – EXHIBIT 1 0-3 "On-Site Facilities" means facilities which must be con- structed within the boundaries of a development for util- ity service within the development or other land to be served. "Parcel Map Development" or "Lot-Split" means a real es- tate development resulting in a division of land into four or less parcels for which no subdivision map is re- quired but for which a parcel map is required to be filed and approved by the applicable local governmental agency. "Person" means any individual, firm, co-partnership, joint venture association, corporation, county, city, municipal corporation or other political subdivision, or any other group or combination acting as a unit. "Regional Facility” means those facilities that serve a regional need and are not required for a specific Development or Developments as defined in Section 0.02 of the District’s Code of Ordinances and as demonstrated by the Development’s Sub Area Master Plan(s). The District’s Water Facilities Master Plan defines which Regional Facilities are eligible for reimbursement. "Sewer Lateral" means a privately-owned pipeline connecting a property to the District Sewer. the portion of pipe between the District sewer main and the coupling at the property owner's point of connection. “Sewer Maintenance” means the cleaning, servicing, inspection, repairing and/or replacing of sewer-related facilities. The word "shall" means mandatory and the word "may" means permissive. "Staff" means the General Manager and other administra- tive personnel of the District. "Subdivision" means a real estate development resulting in a division of land into five or more lots or parcels for which a subdivision map is required to be filed and approved by the applicable local governmental agency. "Utility" or "Utility System" means a water system and/or sewer system, as applicable. "Water Lateral" means the portion of pipe between the District water main and the water meter location. ATTACHMENT B – EXHIBIT 1 0-4 "Water Meter" means an instrument used for automatic recording of the quantity of water delivered to a cus- tomer and the term shall include the fittings, valves and equipment required for operation of the water meter. "Water Service" means the furnishing of water to a cus- tomer through a District-owned water meter or meters. 0.03 EFFECT OF HEADING The title, division or section headings contained in this Code shall not be deemed to govern, limit or modify in any manner the scope, meaning or intent of the provisions of any section or subsection of this Code. 0.04 NOTICES A. Whenever a notice is required to be given under this Code, unless different provisions are specifically made herein, such notice may be made either by personal delivery thereof to the person to be notified or by deposit in the U.S. Mail in a sealed envelope, postage prepaid, addressed to such person at his last known business or residence address as the name appears in public records or other records pertaining to the matter to which the notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the post office. B. Proof of giving any notice may be made by the cer- tificate of any officer or employee of the District or by affidavit of any person over the age of eighteen years, which shows service in conformity with this Code or other provisions of law applicable to the subject matter concerned. 0.05 VALIDITY OF CODE If any section, subsection, sentence, clause, phrase or portion of this Code is for any reason held to be invalid or unconstitutional by the decision of any court, such decision shall not affect the remaining portions of this Code. The Board of Directors hereby declares that it would have adopted this Code and each section, subsection, sentence, clause, phrase or portion thereof, irrespective that any one or more sections, subsections, clauses, phrases or portions be declared invalid or unconstitutional. ATTACHMENT B – EXHIBIT 1 0-5 0.06 TIME LIMIT FOR SEEKING REVIEW OF ADMINISTRATIVE DECISIONS Judicial review of any administrative decision of the District may be had pursuant to Code of Civil Procedure Sec- tion 1094.5 only if the petition for writ of mandate is filed not later than the ninetieth day following the date on which the decision become final. ATTACHMENT B - EXHIBIT 2 SECTION 51 DISTRICT SEWER SYSTEM 51.01 CONTROL AND OPERATION OF SYSTEM The District sewer system and appurtenances thereto shall be under the management and control of the General Manager. No person, other than an employee or agent of the District, shall have any right to operate any part of a District sewer system. As provided in Division IV, any person who tampers or interferes with the Districts systems or facilities, or causes or permits any such act, shall be responsible for any injury or damage caused thereby or resulting therefrom. 51.02 CONNECTIONS AND DISCONNECTIONS TO SEWER SYSTEM Connection to and disconnection from a District sewer main shall be made only by District employees. Connection to and disconnection from a District sewer lateral shall be made by the customer subject to inspection and approval of the District. 51.03 INSPECTION OF CUSTOMER PREMISES Authorized District personnel shall have unrestricted access at reasonable hours to all premises served by District sewers for inspection and testing purposes, and to determine whether the customer is complying with the rules, regulations and ordinances of the District concerning sewer services. 51.04 (RESERVED) 51.05 PERMIT REVOCATED OR SUSPENDED The General Manager will give at least five (5) days notice prior to suspending or revoke a permit, stating the reason for the proposed action and, if determined to be reasonable by the General Manager, providing a reasonable time to correct the violation. Notice shall be given to the holder of the permit, at the address for such person on file with the District. ATTACHMENT C RESOLUTION NO. 4357 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY 1 PRIVATE SEWER LATERALS OF THE DISTRICT’S CODE OF ORDINANCES WHEREAS, the Otay Water District Board of Directors has been presented with an amended Policy No. 1 of the District’s Code of Ordinances for the management of the Otay Water District; and WHEREAS, the amended Policy No. 1 has been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended policy; and WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of Directors of the Otay Water District that the amended Policy No. 1, incorporated herein as Attachment F, is hereby adopted. PASSED, APPROVED, AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 6th day of March 2019, by the following vote: Ayes: Noes: Abstain: Absent: ________________________ President ATTEST: ____________________________ District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised CLEANING OF PRIVATE SEWER LATERALS 01 10/15/84 3/6/19 Page 1 of 2 Purpose. To establish policy determining that sewer laterals are the responsibility of property owners and not the District. Background. The District operates and maintains District sewer mains which collect sewage from sewer laterals on privately-owned property. A sewer lateral is deemed to be the portion of the property owner's sewer line that connects to the District main, whether in an easement on the owner's property or in a public right-of-way. Maintenance of sewer laterals is the responsibility of the owner of the property that the sewer lateral serves. Maintenance of District sewer mains and appurtenances, such as manholes, is the sole responsibility of the District. Frequently stoppage occurs within privately-owned sewer laterals due to property owner's use and requests are made to the District to clear the stoppage in the lateral. Policy. The District is responsible for operation and maintenance of the District Ssewer. mains, which includes cleaning of the mains. The District has no responsibility for performing sewer maintenance on cleaning any portion of infrastructure not owned by the District including, but not limited to, a property owner's sewer lateral or sewer connection to a building. line or sewer lateral. District personnel are prohibited from performing sewer maintenance on cleaning or servicing any such sewer line or lateral without prior unless otherwise authorized authorization from to do so by the General Manager. The General Manager may grant such authorization when it is deemed he deems it to be in the best interest of the District. to do so. The property owner Charges may be charged made to the owner for such sewer maintenance service at the discretion of the General Manager. The following Sewer Lateral Maintenance Policy is hereby adopted by the District’s Board of Directors. 1. If a stoppage is determined to be in the District Sewer, the property owner shall notify the District immediately. 2. If repair/replacement is necessary to restore sewer service to the sewer lateral, the property owner shall obtain all permits prior to performing any such repair/replacement, and the repair/replacement shall be performed in accordance with the permitting agency’s requirements at the property owner’s sole expense. ATTACHMENT C -- EXHIBIT 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised CLEANING OF PRIVATE SEWER LATERALS 01 10/15/84 3/6/19 Page 2 of 2 3. If a sewer lateral must be relocated due to the construction of projects sponsored by the District, the District will bear the sewer lateral relocation costs. The District will warranty the relocation of the sewer lateral for one year from the associated District sponsored project’s acceptance date. 4. If the existing sewer lateral serving the property is not adequate for the property owner’s needs, because of size, depth, location or any other factor, the entire cost of any related corrective work shall be borne by the property owner. 5. A District permit is required for the connection of any sewer lateral to the District Sewer, or work on the connection point of any sewer lateral to the District Sewer. 6. Where sewage from a sewer lateral overflows into the street, the property owner is responsible for immediate abatement of the overflow condition and remediation of any effects from the overflow. The cost for such cleaning and for all restoration work required as a result of an overflow from a sewer lateral shall be borne by the property owner. In instances where sewer lateral overflow sewage could reach or enter a storm drain system or the public right-of-way, and the property owner has failed to address or abate the overflow condition, the District may attempt to abate the sewer lateral overflow to prevent storm water pollution and protect public health. The District will bill the property owner for all costs associated with sewer lateral overflow abatement. If it is determined that the sewer lateral overflow is the result of a stoppage within the District Sewer, the District will perform an investigation to determine responsibility for abatement of the overflow condition and remediation of any effects from the overflow. ATTACHMENT D 0-1 DIVISION I DISTRICT ADMINISTRATION CHAPTER 1 GENERAL PROVISIONS SECTION 0 DEFINITIONS AND MISCELLANEOUS PROVISIONS 0.01 TITLE - REFERENCE TO CODE This Code shall be known as the "Otay Water District Code of Ordinances." References herein to the "Code" or the "Ordinances" shall be deemed to mean said Code of Ordinances. 0.02 DEFINITIONS The following words as used in this Code shall have the meanings set forth below unless otherwise apparent in the context in which they are used: "Board of Directors" or "Board" means the Board of Directors of the District. "Board Member" or "Member of the Board" means a Director of the Board of Directors. "Central Area Service Zone" means all land within the bounda- ries of the area identified as the Central Area Service Zone as shown on the map on file in the Office of the District Sec- retary. "County" means the County of San Diego. "Customer" means any person, firm, association, partnership, corporation or governmental agency supplied or entitled to be supplied with water or sewer service by the District for com- pensation. "Developer" means any person, firm, association, partnership, joint venture or corporation who applies for acceptance by the District of an addition or change to its water distribution system or its sewer collection system. “Development” means the improvement of a parcel or a group of parcels that are owned by the same or affiliated parent entity, subsidiary, or Developer. "District" means the Otay Water District (formerly Otay Municipal Water District). ATTACHMENT D 0-2 “District Sewer” means sewer mains owned and operated by the District which are tributaries to treatment or reclamation facilities operated or utilized by the District, excluding Sewer Laterals. "Equivalent Dwelling Unit" or "EDU" means a unit of meas- urement for water service or sewer service. For water service, one EDU shall be considered to be equivalent to a ¾-inch meter, and is also typically considered to be equivalent to 650 gallons per day (gpd) for planning pur- poses. For sewer service, one EDU shall be 250 gallons per day (gpd) of residential strength wastewater defined as having a maximum concentration of 280 milligrams per liter (mg/l) biochemical oxygen demand (BOD) and 234 mil- ligrams per liter (mg/l) suspended solids. "General Manager" means the General Manager of the Dis- trict or the designated representative. "Irrigated area" means the area of land (measured in square feet) which may require supplemental water (pota- ble or recycled) from the District for the support of landscaping, but does not include decks, walkways, pat- ios, tennis courts or any other permanently hard-surfaced areas maintained within or around landscaped areas. Trees shall have an irrigated area equal to the area within the circumference of the canopy (drip line) of the tree at maturity. "Landscape or landscaping" means the living plant mate- rial and organic or inorganic ground covers (mulches) used for aesthetic, erosion control and/or fire control purposes as specified by city or county regulations. "Line Extension" means a water or sewer main constructed from the termination point of an existing District main to provide service beyond the existing main. "Non-permanent Irrigation Service" means temporary water service furnished to establish and maintain re-vegetated native plants. “Facilities” means structures, and water or sewer system elements that may be located above or below ground level including, but not limited to, pipelines, system appurtenances, pump stations and reservoirs. "Off-Site Facilities" means facilities which must be con- structed outside the boundaries of a development to bring utility service from the nearest District facility to the boundary of the land being developed. ATTACHMENT D 0-3 "On-Site Facilities" means facilities which must be con- structed within the boundaries of a development for util- ity service within the development or other land to be served. "Parcel Map Development" or "Lot-Split" means a real es- tate development resulting in a division of land into four or less parcels for which no subdivision map is re- quired but for which a parcel map is required to be filed and approved by the applicable local governmental agency. "Person" means any individual, firm, co-partnership, joint venture association, corporation, county, city, municipal corporation or other political subdivision, or any other group or combination acting as a unit. "Regional Facility” means those facilities that serve a regional need and are not required for a specific Development or Developments as defined in Section 0.02 of the District’s Code of Ordinances and as demonstrated by the Development’s Sub Area Master Plan(s). The District’s Water Facilities Master Plan defines which Regional Facilities are eligible for reimbursement. "Sewer Lateral" means a privately-owned pipeline connecting a property to the District Sewer. “Sewer Maintenance” means the cleaning, servicing, inspection, repairing and/or replacing of sewer-related facilities. The word "shall" means mandatory and the word "may" means permissive. "Staff" means the General Manager and other administra- tive personnel of the District. "Subdivision" means a real estate development resulting in a division of land into five or more lots or parcels for which a subdivision map is required to be filed and approved by the applicable local governmental agency. "Utility" or "Utility System" means a water system and/or sewer system, as applicable. "Water Lateral" means the portion of pipe between the District water main and the water meter location. "Water Meter" means an instrument used for automatic recording of the quantity of water delivered to a cus- ATTACHMENT D 0-4 tomer and the term shall include the fittings, valves and equipment required for operation of the water meter. "Water Service" means the furnishing of water to a cus- tomer through a District-owned water meter or meters. 0.03 EFFECT OF HEADING The title, division or section headings contained in this Code shall not be deemed to govern, limit or modify in any manner the scope, meaning or intent of the provisions of any section or subsection of this Code. 0.04 NOTICES A. Whenever a notice is required to be given under this Code, unless different provisions are specifically made herein, such notice may be made either by personal delivery thereof to the person to be notified or by deposit in the U.S. Mail in a sealed envelope, postage prepaid, addressed to such person at his last known business or residence address as the name appears in public records or other records pertaining to the matter to which the notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the post office. B. Proof of giving any notice may be made by the cer- tificate of any officer or employee of the District or by affidavit of any person over the age of eighteen years, which shows service in conformity with this Code or other provisions of law applicable to the subject matter concerned. 0.05 VALIDITY OF CODE If any section, subsection, sentence, clause, phrase or portion of this Code is for any reason held to be invalid or unconstitutional by the decision of any court, such decision shall not affect the remaining portions of this Code. The Board of Directors hereby declares that it would have adopted this Code and each section, subsection, sentence, clause, phrase or portion thereof, irrespective that any one or more sections, subsections, clauses, phrases or portions be declared invalid or unconstitutional. ATTACHMENT D 0-5 0.06 TIME LIMIT FOR SEEKING REVIEW OF ADMINISTRATIVE DECISIONS Judicial review of any administrative decision of the District may be had pursuant to Code of Civil Procedure Sec- tion 1094.5 only if the petition for writ of mandate is filed not later than the ninetieth day following the date on which the decision become final. ATTACHMENT E SECTION 51 DISTRICT SEWER SYSTEM 51.01 CONTROL AND OPERATION OF SYSTEM The District sewer system and appurtenances thereto shall be under the management and control of the General Manager. No person, other than an employee or agent of the District, shall have any right to operate any part of a District sewer system. As provided in Division IV, any person who tampers or interferes with the Districts systems or facilities, or causes or permits any such act, shall be responsible for any injury or damage caused thereby or resulting therefrom. 51.02 CONNECTIONS AND DISCONNECTIONS TO SEWER SYSTEM Connection to and disconnection from a District sewer main shall be made only by District employees. Connection to and disconnection from a sewer lateral shall be made by the customer subject to inspection and approval of the District. 51.03 INSPECTION OF CUSTOMER PREMISES Authorized District personnel shall have unrestricted access at reasonable hours to all premises served by District sewers for inspection and testing purposes, and to determine whether the customer is complying with the rules, regulations and ordinances of the District concerning sewer services. 51.04 (RESERVED) 51.05 PERMIT REVOCATED OR SUSPENDED The General Manager will give at least five (5) days notice prior to suspending or revoke a permit, stating the reason for the proposed action and, if determined to be reasonable by the General Manager, providing a reasonable time to correct the violation. Notice shall be given to the holder of the permit, at the address for such person on file with the District. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised PRIVATE SEWER LATERALS 01 10/15/84 3/6/19 Page 1 of 2 Purpose. To establish policy determining that sewer laterals are the responsibility of property owners and not the District. Background. The District operates and maintains District sewer mains which collect sewage from sewer laterals on privately-owned property. A sewer lateral is the portion of the property owner's sewer line that connects to the District main, whether in an easement on the owner's property or in a public right-of-way. Maintenance of sewer laterals is the responsibility of the owner of the property that the sewer lateral serves. Maintenance of District sewer mains and appurtenances, such as manholes, is the sole responsibility of the District. Policy. The District is responsible for operation and maintenance of the District Sewer. The District has no responsibility for performing sewer maintenance on any portion of infrastructure not owned by the District including, but not limited to, a property owner's sewer lateral or sewer connection to a building. District personnel are prohibited from performing sewer maintenance on any sewer lateral without prior authorization from the General Manager. The General Manager may grant such authorization when it is deemed to be in the best interest of the District. The property owner may be charged for such sewer maintenance at the discretion of the General Manager. The following Sewer Lateral Maintenance Policy is hereby adopted by the District’s Board of Directors. 1. If a stoppage is determined to be in the District Sewer, the property owner shall notify the District immediately. 2. If repair/replacement is necessary to restore sewer service to the sewer lateral, the property owner shall obtain all permits prior to performing any such repair/replacement, and the repair/replacement shall be performed in accordance with the permitting agency’s requirements at the property owner’s sole expense. 3. If a sewer lateral must be relocated due to the construction of projects sponsored by the District, the District will bear the sewer lateral relocation costs. The District will warranty the relocation of the sewer lateral for one year from the associated District sponsored project’s acceptance date. ATTACHMENT F OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised PRIVATE SEWER LATERALS 01 10/15/84 3/6/19 Page 2 of 2 4. If the existing sewer lateral serving the property is not adequate for the property owner’s needs, because of size, depth, location or any other factor, the entire cost of any related corrective work shall be borne by the property owner. 5. A District permit is required for the connection of any sewer lateral to the District Sewer, or work on the connection point of any sewer lateral to the District Sewer. 6. Where sewage from a sewer lateral overflows into the street, the property owner is responsible for immediate abatement of the overflow condition and remediation of any effects from the overflow. The cost for such cleaning and for all restoration work required as a result of an overflow from a sewer lateral shall be borne by the property owner. In instances where sewer lateral overflow sewage could reach or enter a storm drain system or the public right-of-way, and the property owner has failed to address or abate the overflow condition, the District may attempt to abate the sewer lateral overflow to prevent storm water pollution and protect public health. The District will bill the property owner for all costs associated with sewer lateral overflow abatement. If it is determined that the sewer lateral overflow is the result of a stoppage within the District Sewer, the District will perform an investigation to determine responsibility for abatement of the overflow condition and remediation of any effects from the overflow. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 6, 2019 SUBMITTED BY: Eid Fakhouri, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Kevin Koeppen, Assistant Chief of Finance Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Continue the Banking Services with Union Bank GENERAL MANAGER’S RECOMMENDATION: That the Board approve staff’s recommendation to continue the banking services with Union Bank. Staff will perform the next banking services review in 6 years and a pricing review in 3 years. COMMITTEE ACTION: See Attachment A. PURPOSE: To evaluate the cost of banking services to ensure the District’s banking fees are competitive with current market rates. ANALYSIS: The Board has requested that staff perform a review of banking services on a recurring basis, considering the changing economy, technological advances and business competition within the banking and financial industries. Union Bank has been the primary bank of the District for its operating needs since 2006 and to ensure we are receiving competitive pricing, staff has performed banking service reviews on March 5, 2008, February 3, 2010, and March 5, 2015 and in 2 all instances recommended to the Board that the District maintain its banking services relationship with Union Bank based on their competitive pricing, range of banking services, customer service and overall highly satisfactory performance. This report is based on the most recent review of the District’s banking services and fees as of January 2019. Staff is recommending the District continue to utilize Union Bank for its banking services. Based on the analysis performed, Union Bank is the best value and least expensive provider when considering multiple factors including: annual banking fees, internal costs associated with changing banks, customer disruption and potential service risks associated with a banking change. Staff will perform the next banking services review in 6 years and a pricing review in 3 years. This is a change from our customary practice of performing banking service reviews every 4 years and a pricing review every 2 years. Staff is making this recommendation based on Union Bank’s competitive pricing, performance and agreeing to fix its rates for a 6-year period. If events were to occur that would affect the cost or services provided to the District, staff has the option to perform a banking services review at any time. QUOTATION PROCESS: Staff requested quotes from six banking institutions. The table below summarizes the institutions that the District sought quotes from and a brief statement regarding each institution’s response: Institution Response Union Bank Complete response and quote was received by the District. J.P. Morgan Chase Complete response and quote was received by the District. Wells Fargo Bank Complete response and quote was received by the District. U.S. Bank We received a letter explaining they had timing issues and were unable to respond to our RFQ Solicitation. Bank of the West Bank of the West’s policy states they cannot respond to a request if a particular service is not offered by the bank. Bank of the West does not offer bill concentration services; 3 therefore, they were unable to respond to the request for quote. Bank of America Did not respond to the request for quote. Staff performed the following evaluations of services based on the responses received from Union Bank, J.P. Morgan Chase and Wells Fargo Bank. AVAILABLE SERVICES: Staff performed a review of banking services offered by each institution to ensure each candidate was able to meet, at a minimum, the District’s current servicing needs. All of the institutions responding to the District’s request offer services consistent with those currently being performed by Union Bank. Each institution provides a full range of banking services including: account reconciliation, account analysis, lockbox, bill concentration, checking, web services, wire transfers, availability of funds, payroll, payroll tax, check fraud, daylight overdraft protection, and debt services. BANKING FACILITIES: Union Bank, J.P. Morgan Chase and Wells Fargo have physical locations within the District’s boundaries. CURRENT STAFF SATISFACTION: Staff who work with Union Bank on a repetitive basis were asked if they were dissatisfied or had any unresolved issues. This included Customer Service, Payroll, Accounts Payable, Information Technology, and Investment personnel. Responses were positive as any issues were minor in scope and Union Bank has been quick to respond and remediate issues as they arise. Staff is also very pleased with Union Bank’s services and personnel contacts. BANKING FEES: Staff performed an analysis based on each institution’s quote to determine their estimated annual fees using a typical set of service levels. Institution Overall Estimated Annual Fees Union Bank $70,500 J.P. Morgan Chase $71,000 Wells Fargo Bank $87,700 From the evaluation, staff found that service fees overall are competitively priced and the banks offer similar services. 4 Union Bank fees were significantly lower than Wells Fargo Bank and only slightly lower than J.P. Morgan Chase. The proposed pricing from Union Bank shall be fixed through June 30, 2025. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The District’s ongoing banking fees would be similar to the current annual fees. Based on the analysis performed, staff estimates the total annual banking service fees from Union Bank to be $70,500. Currently, Union Bank service fees are estimated to be within the Fiscal Year 2019 budget. STRATEGIC GOAL: The District ensures its continue financial health through long-term financial planning, formalized financial policies, enhanced budget controls, fair pricing, debt planning, and improved financial reporting. LEGAL IMPACT: None. Attachments: A) Committee Action ATTACHMENT A SUBJECT/PROJECT: Continue the Banking Services with Union Bank COMMITTEE ACTION: That the Finance and Administration Committee approve staff’s recommendation to continue the banking services with Union Bank. Staff will update the banking services review in 6 years with a pricing review performed in 3 years. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 6, 2019 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Adolfo Segura, Chief of Administrative Services APPROVED BY: Mark Watton, General Manager SUBJECT: FY19 MID-YEAR REPORT FOR THE DISTRICT’S FY19-22 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a mid-year report on the District’s FY19-22 Strategic Performance Plan for FY19. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year plan ranging from the start of FY19 through the end of FY22. This report details the mid-year results for the first year of our four-year plan. Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is executing mission designed objectives and making the appropriate high- level changes necessary to guide the agency’s efforts to meet new challenges and positively adapt to change. FY19 mid-year results are on target at 91%, with 31 of 34 active items completed or on schedule. One objective is on hold and two are not on target. Objectives Not on Target 1. Evaluate, and if beneficial, implement Cloud payroll service – Due to complexities of the design requirements, ADP is researching options to meet the District’s work schedule requirements, FLSA calculations, and time keeping requirements. Work on the project has paused until ADP can confirm they can meet the District’s functional requirements. 2. Customer electronic communication and outreach – Due to the retirement of the previous Customer Service Supervisor, staff has not explored exit surveys, options to expand text messaging to customers, as well as complete the evaluation form for customer service. This will not be completed until the new Supervisor is trained. The following objective has been put on hold: 1. Streamline contract and purchase order (contract) management and lifecycle – Staff has reviewed limitations of Eden’s contract capabilities regarding notification and visibility. At this time, workflow implementation has not matured enough for an assessment of its capabilities to enhance contract management. Staff will continue to explore options with Tyler. Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to track the District’s day-to-day performance. These items measure the effectiveness and efficiency of essential operational services. The overall goal is that at least 75% of these KPI’s be rated “on target”. FY19 mid-year results are above target with 32 of 35 (91%) items achieving the desired level or better. 0 2 4 6 8 10 12 14 16 18 ON SCHEDULE BEHIND ON HOLD NOT STARTED 31 2 1 15 On Schedule Behind On Hold Not Started 31 of 34 Active Objectives are On Target (91%) KPI’s are based on established AWWA performance benchmarks. Seven measures are reported at year’s end:  Water Debt Coverage  Sewer Debt Coverage  Reserve Level  Accounts Per FTE  Leak Detection Program  Injury Incident Rate  Enterprise Technology Services KPI’s Not On Target 1. Overtime Percentage – Year-to-date expenditures amounted to $99,928 vs. the budgeted amount of $73,700. Overtime exceeded budget due to multiple main breaks in the second quarter. 2. Recycled Water Shutdown Testing – Year-to-date 14 sites have been tested vs. the targeted amount of 22.5 sites. The Recycled Water team is currently in a transition period due to staff retirements. An action plan has been developed to reach the target by the end of FY19. 3. System Valve Exercising Program – Year-to-date number of valves exercised is 1483 vs. the targeted amount of 1540. The target was not met due to unplanned emergencies and weather. 0 2 4 6 8 10 12 14 16 18 ON TARGET NOT ON TARGET ANNUAL MEASURE 32 3 7 On Target Not on Target Annual Measure 32 of 35 Key Performance Indicators are On Target (91%) Next Steps Staff will continue to execute the plan’s objectives and key performance indicators and track emerging trends. Committee Reports – Slideshow The Strategic Plan results are presented to both the Finance, Administration, and Communications Committee and the Engineering, Operations, and Water Resources Committee with a specific focus on the most relevant information for each Committee (see “Attachment B”). Strategic Plan is available on the Board VPN All of the Strategic Plan results and associated details are provided in a real-time, interactive web-based application available to the Board via secured remote access, VPN. The District Secretary can facilitate any password or access issues. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation 5 ATTACHMENT A SUBJECT/PROJECT: FY19 MID-YEAR REPORT FOR THE DISTRICT’S FY19-22 STRATEGIC PLAN COMMITTEE ACTION: The Finance, Administration, and Communications Committee and the Engineering, Operations and Water Resources Committee reviewed this item at a meeting held on February 19 and 21, 2019, respectively. The Committees support presentation to the full Board for their consideration. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full Board. 1 STRATEGIC PLAN FY19 MID-YEAR REPORT 2 Introduction 3OWD Strategic Plan FY19-22 Customer Financial Internal BusinessProcesses Learning and Growth $ The District’s Strategic Plan is developed with the Balanced Scorecard (BSC) strategic planning and performance management methodology, which is used and widely adopted by businesses across the globe. The BSC performance system is now in its fourth- generation, which focuses on managing strategy, people, and performance in a changing environment. In brief, the BSC emphasizes alignment of business activities to the vision and strategy of the organization with goals and measures in four basic areas: customer, financial, internal business processes, and learning and growth. The District’s strategic plan also integrates elements from the five key water utility areas of structure: organizational development, business operations, customer relations, water operations, and wastewater operations. 4AWWA 2018 Business Drivers 5Objectives 91% are Completed or On Schedule 0 5 10 15 20 25 30 35 Completed On Target Not On Target On Hold Not Started 0 31 2 1 15 Completed On Target Not On Target On Hold Not Started Objective Report49 Total 6Objectives 1. Evaluate, and if beneficial, implement Cloud payroll service. 2. Customer electronic communication and outreach. NOT ON TARGET ON HOLD 1. Streamline contract and purchase order (contract) management and lifecycle. 7Key Performance Indicators 91% On Target Measure Report42 Total 0 5 10 15 20 25 30 35 On Target Not on Target Annual Measure 32 3 7 On Target Not on Target Annual Measure 8Key Performance Indicators 1. Overtime Percentage 2.Recycled Water Shutdown Testing 3. System Valve Exercising Program NOT ON TARGET 9AWWA Utility Benchmarks 1 Technical Quality Complaint Potable Water Distribution System Integrity Potable Water Compliance Rate Sewer Overflow Rate 2 3 4 10 Customer Execute and deliver services that meet or exceed customer expectations, and increase customer engagement in order to improve District Services 11 Measurement Method QTR:# of all calls answered/ # of all calls received during a quarter YTD:YTD # of all calls answered/ YTD # of all calls received Answer Rate Target: No less than 97%average answer rate per quarter annually 98.19 97.94 98.06 97 97 97 97 97 98 98 98 98 98 95 95.5 96 96.5 97 97.5 98 98.5 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 98 12Technical Quality Complaint (AWWA) Target: No more than 7.1 complaints per 1000 customer accounts annually Measurement Method QTR:1000 (# of technical quality complaints per quarter)/# of active customer accounts per reporting period YTD:1000 (YTD # of technical quality complaints per year)/ # of active customer accounts per reporting period) 0.93 0.73 1.66 7.1 1.78 1.78 1.78 1.78 7.1 4.2 4.2 4.2 4.2 4.2 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Result AWWA Target FY18 Strat Plan = 4.2 AW W A B e n c h m a r k 13Potable Water Compliance Rate (AWWA) Target: No less than 100%of all health related drinking water standards each quarter annually Measurement Method 100 (# of days the primary health regulations are met)/ # of days in the reporting period 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50 60 70 80 90 100 110 Q1 Q2 Q3 Q4 YTD Result AWWA Target FY18 Strat Plan = 100 14 Financial Plan and execute sound financial activities that are essential to running and sustaining District operations, with the lowest possible impact to customers 15CIP Project Expenditures vs. Budget Target: 95% of budget but not to exceed 100% annually Being below target gives the measure a “not on target” status Measurement Method OTR:Actual quarterly expenditures/Annual budget YTD:YTD expenditures/Annual budget 16.8 44.8 44.815 36 65 95 10097.4 97.4 97.4 97.4 97.4 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 97.4 16Construction Change Order Incidence (w/o allowances) Target: No more than 5%per quarter annually 2.2 2.4 2.4 55555 1.3 1.3 1.3 1.3 1.3 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 1.3 *QTR and YTD result are the life to dare change order rates for all active projects in FY17 Measurement Method Total cost of Change Orders (not including allowances)/Total original construction contract amount (not including allowances) 17 Measurement Method QTR:Total operations O&M costs/ # of accounts YTD:YTD total operations O&M costs/ # of accounts O&M Cost Per Account Target: Less than $571.00 per account annually (Target is based on Operating Budget) 122 147 269 125 153 153 140 571 549 549 549 549 549 100 150 200 250 300 350 400 450 500 550 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 549 18 Measurement Method QTR:# of correct bills during the reporting period/ # of total bills during the reporting period YTD:YTD # of correct bills during the reporting period/ YTD # of total bills during the reporting period Billing Accuracy Target: No less than 99.8%billing accuracy per quarter annually 99.98 99.98 99.98 99.8 99.8 99.8 99.8 99.8 99.98 99.98 99.98 99.98 99.98 98 98.5 99 99.5 100 100.5 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 99.98 19Overtime Percentage Target: Less than 100%of budgeted overtime per quarter annually (Target is based on Operating Budget; FY19 Overtime Budget is $149,900) Measurement Method QTR: Actual overtime costs (including comp time)/ Budgeted overtime costs YTD:YTD actual overtime costs (including comp time)/ YTD budgeted overtime costs 104 162 135 100 100 100 100 100 100 100 100 100 100 0 20 40 60 80 100 120 140 160 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 100 20Sewer Rate Ranking Target: Bottom 50 percentile for the 28 sewer service providers in San Diego (Otay ranks 6 out of 28 sewer service providers) Measurement Method Otay ranking for the average bill for sewer/ # of sewer agencies 66 14 14 66 0 5 10 15 20 25 Q1 YTD Result Target FY18 Strat Plan = 6 21 44 11 11 3 3 0 5 10 15 20 25 Q1 YTD Result Target FY18 Strat Plan = 3 Water Rate Ranking Target: Bottom 50 percentile for the 22 member agencies in San Diego (Otay ranks 4 out of 22 member agencies) Measurement Method Otay ranking for the average water bill among CWA member agencies 22Percent of Customers Paying Bills Electronically Target: No less than 75%per quarter annually Measurement Method YTD:YTD # of customers paying bills electronically/ Total # of customers QTR:# of customers paying bills electronically/ Total # of customers 78.25 77.51 77.88 75 75 75 75 75 77.05 77.05 77.05 77.05 77.05 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 77.05 23Distribution System Loss Target: Less than 5%of unaccounted water loss per quarter annually Measurement Method 100 [volume purchased (from CWA) – (volume sold (to customers) + volume used District usage)] / volume purchased (from CWA)) 3.6 3.6 3.6 55555 3.3 3.3 3.3 3.3 3.3 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 3.3 24Planned Potable Water Maintenance Ratio in $ Target: 66% or greater of all labor dollars spent on preventative maintenance per quarter annually Measurement Method Total planned maintenance cost/ Total maintenance cost 75 72.8 74 66 66 66 66 66 72 72 72 72 72 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 72 25 Measurement Method Total planned maintenance costs/Total maintenance costs Planned Recycled Water Maintenance Ratio in $ Target: 70%or greater of all labor spent on preventative maintenance per quarter annually 69 85 77 70 70 70 70 70 74 74 74 74 74 0 10 20 30 40 50 60 70 80 90 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 74 26Planned Wastewater Maintenance Ratio in $ Target: 77% or greater of all labor dollars spent on preventative maintenance per quarter annually Measurement Method Total planned maintenance cost/Total maintenance cost 87 88 87 77 77 77 77 77 82.47 82.47 82.47 82.47 82.47 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 82.47 27Direct Cost of Treatment Per MGD Target: No more than $1050 per MG spent on wastewater treatment per quarter annually (Targets each quarter will vary based on high and low demand times) Measurement Method Total O&M costs directly attributable to sewer treatment/ Total volume in MG 760.36 895.49 821.11 900 1200 1200 900 1050 1165.82 1165.82 1165.82 1165.82 1165.82 0 200 400 600 800 1000 1200 1400 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 1165.82 28Internal Business Processes Improve business services by continually improving essential processes, invest in strategic technology, and achieve new efficiencies. 29Mark-Out Accuracy Target: No less than 100%mark-out accuracy per quarter annually 99.91 100 100 100 100 100 100 100100 100 100 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4YTD Result Target FY18 Strat Plan = 100 Measurement Method # of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark- out/Total # of mark-outs performed 30Project Closeout Time Target: No more than a 45 day average per quarter annually 24.3 31.8 31.8 45 45 45 45 45 70.3 70.3 70.3 0 10 20 30 40 50 60 70 80 Q1 Q2 Q3 Q4 YTD Result Target FY Strat Plan = 70.3 Measurement Method QTR:# of days between NOSC and NOC for all construction projects within the quarter/# of construction projects within the quarter YTD:YTD # of days between NOSC and NOC for all construction projects within the quarter/YTD # of construction projects within the quarter 31Annual Recycled Water Site Inspections Target: 100%of recycled sites inspected annually (There are 102 recycled water use sites scheduled for FY19) Measurement Method Cumulative % of recycled sites inspected per quarter of those required by DEH 23 60 6025 50 75 100 100100 100 100 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 100 32Recycled Water Shutdown Testing Target: 90%of recycled site shut down tests annually (There are 50 recycled water use sites due for shutdown in FY19) Measurement Method Cumulative % of recycled site shutdown tests performed per year compared to those scheduled 14 42 42 22.5 45 67.5 90 9090 90 90 90 90 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 90 33Easement Evaluation and Field Inspection Target: 100%assigned easements evaluated via desktop tools and inspected annually (There are 100 easements assigned for FY19) Measurement Method Cumulative % of recycled site shutdown tests performed per year compared to those scheduled 42 101 101 25 50 75 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Result Target 34Percent of PMs Completed – Fleet Maintenance Target: No less than 90%of scheduled PM’s completed per quarter annually Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed 100 100 100 90 90 90 90 90 100 100 100 100 100 0 20 40 60 80 100 Q1 Q2 Q3 Q4 Annual Result Target FY18 Strat Plan = 100 35Percent of PMs Completed – Reclamation Plant 100 100 100 90 90 90 90 90 98 98 98 98 98 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 98 Target: No less than 90%of scheduled PM’s completed per quarter annually Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period 36Percent of PMs Completed – Pump/Electric Section 100 100 100 90 90 90 90 90 100 100 100 100 100 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 100 Target: No less than 90%of scheduled PM’s completed per quarter annually Measurement Method # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period 37System Valve Exercising Program Annual Target: 3080 valves exercised annually Measurement Method Actual number of valves exercised in the reporting period 835 648 1483770 770 770 770 3080 3405 3405 3405 3405 3405 0 500 1000 1500 2000 2500 3000 3500 Q1 Q2 Q3 Q4 YTD Result Target FY 18 Strat Plan = 3405 38 Measurement Method 100 (# of days the primary health regulations are met)/ # of days in the reporting period 2.01 2.31 4.32 16.1 4444 16 9.5 9.5 9.5 9.5 9.5 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 YTD Result AWWA Target FY18 Strat Plan = 9.5 Potable Water Distribution System Integrity (AWWA) Target: No more than 16 leaks and breaks per 100 miles of distribution piping annually 39Recycled Water System Integrity Target: No more than 6.6 leaks or breaks per 100 miles of recycled distribution system annually Measurement Method (100 x # of leaks or breaks)/ # of miles of distribution system 0.89 0.89 1.78 1.65 1.65 1.65 1.65 6.6 2.67 2.67 2.67 2.67 2.67 0 1 2 3 4 5 6 7 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 2.67 40Sewer Overflow Rate (AWWA) Target: 0 overflows per quarter annually Measurement Method QTR:100 (total number of sewer overflows during the reporting period) / total miles of pipe in the sewage collection system 0 0 0 000000000000 2 4 6 8 10 12 14 Q1 Q2 Q3 Q4YTD Result AWWA Target FY18 Strat Plan = 0 YTD:Cumulative number of overflows per quarter in a FY 0 Failures in Q1 & Q2 AWWA Benchmark is 0 41Emergency Facility Power Testing Target: 100%of the District’s facilities tested annually (The District currently has 34 powered ready facilities) Measurement Method Number of facilities tested / total facilities 100 100 100 100 100 100 100 100 36 36 36 36 36 0 20 40 60 80 100 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 36 42Potable Tank Inspection and Cleaning Annual Target: 8 potable water storage tanks and/or reservoirs cleaned annually. Measurement Method Number of tanks cleaned and inspected 1 6 7 88888 8 8888 0 2 4 6 8 10 12 14 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 8 43Main Flushing and Fire Hydrant Maintenance Target: 215 or more mains flushed and fire hydrants maintained annually (The target of 215 is comprised of 165 hydrants and 50 mains) Measurement Method Number of mains flushed and hydrants maintained 169 144 313 54 54 54 54 215 0 50 100 150 200 250 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 443 44Critical Valve Exercising Annual Target: Exercise 631 identified critical valves annually Measurement Method Number of critical valves exercised in a reporting period 631 0 631 631 631 631 631 631 633 633 633 633 633 0 100 200 300 400 500 600 700 800 900 1000 Q1 Q2 Q3 Q4 YTD Result Target FY18 Strat Plan = 633 45Learning and Growth Provide hands-on leadership, support, and empowerment of staff, in order to maintain an accountable high-performing workforce. 46Employee Turnover Rate Target: Less than 5%turnover annually 0 1.49 1.481.25 1.25 1.25 1.25 5 1.5 1.5 1.5 1.5 1.5 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4YTD Result Target FY18 Strat Plan = 1.5 QTR:# of voluntary resignations (not including retirements)/average # of employees Measurement Method YTD:YTD # of voluntary resignations (not including retirements)/average # of employees No turnovers in Q1 47Training Hours Per Employee Target: 12 hours or more general formal training per employee annually (excludes safety training) 5.53 6.93 12.46 3333 12 18.11 18.11 18.11 18.11 18.11 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 YTD/AVG Result Target FY18 Strat Plan = 18.11 Measurement Method QTR:Total qualified training hours for all employees/average # of FTEs YTD:YTD Total qualified training hours for all employees/Average # of FTEs 48Safety Training Program Target: 24 hours or more safety training per field employee annually 6.9 11.42 18.326666 24 33.38 33.38 33.38 33.38 33.38 0 5 10 15 20 25 30 35 40 Q1 Q2 Q3 Q4 YTD/AVG Result Target FY18 Strat Plan = 33.38 Measurement Method QTR:# of safety training hours for the quarter/ # of field employees YTD:YTD Total qualified safety training hours for field employees/average # of field employees 49 Questions?