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HomeMy WebLinkAbout09-20-17 EO&WR Committee PacketOTAY WATER DISTRICT ENGINEERING, OPERATIONS & WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Board Room WEDNESDAY September 20, 2017 12:00 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. AWARD TWO (2) PROFESSIONAL AS-NEEDED ENGINEERING DESIGN SER- VICES CONTRACTS WITH NV5, INC. AND MICHAEL BAKER INTERNATIONAL, INC., EACH IN THE AMOUNT NOT-TO-EXCEED $600,000 DURING FISCAL YEARS 2018 AND 2019 (ENDING JUNE 30, 2019) (CAMERON) [5 minutes] 4. AWARD TWO (2) AS-NEEDED GEOTECHNICAL ENGINEERING SERVICES CON- TRACTS WITH GEOCON, INC. AND NINYO & MOORE GEOTECHNICAL AND EN- VIRONMENTAL SCIENCES CONSULTANTS, INC., EACH IN AN AMOUNT NOT-TO- EXCEED $175,000. THE TOTAL AMOUNT OF THE TWO (2) CONTRACTS WILL NOT EXCEED $175,000 DURING FISCAL YEARS 2018, 2019, AND 2020. (CAMER- ON) [5 min] 5. AWARD A CONSTRUCTION CONTRACT TO SIMPSON SANDBLASTING AND SPECIAL COATINGS, INC. FOR THE 980-2 RESERVOIR INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT IN AN AMOUNT NOT-TO-EXCEED $1,146,327 (MARTIN) [5 min] 2 6. ADOPT ORDINANCE NO. 565 AMENDING SECTION 31, TEMPORARY WATER SERVICE, OF THE DISTRICT’S CODE OF ORDINANCES (DiPIETRO) [5 min] 7. FISCAL YEAR 2017 YEAR-END REPORT FOR THE DISTRICT’S FISCAL YEARS 2015-2018 STRATEGIC PLAN (SEGURA) [10 min] 8. ADJOURNMENT BOARD MEMBERS ATTENDING: Tim Smith, Chair Gary Croucher 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 that would require accommodation in order to enable you to partici- pate 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 September 15, 2017 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 September 15, 2017. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 4, 2017 SUBMITTED BY: Kevin Cameron Associate Civil Engineer Bob Kennedy Engineering Manager PROJECT: Various DIV. NO. All APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Award of Two (2) As-Needed Engineering Design Services Contracts for Fiscal Years 2018 and 2019 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award two (2) professional As-Needed Engineering Design Services contracts and to authorize the General Manager to execute two agreements with NV5, Inc. (NV5) and Michael Baker International, Inc. (Michael Baker), each in an amount not-to-exceed $600,000. The total amount of the two contracts will not exceed $600,000 during Fiscal Years 2018 and 2019 (ending June 30, 2019). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into two (2) professional As-Needed Engineering Design Services contracts with NV5 and Michael Baker, with each contract in an amount not-to- exceed $600,000 for Fiscal Years 2018 and 2019. The total amount of the two contracts will not exceed $600,000 during Fiscal Years 2018 and 2019. 2 ANALYSIS: The District will require the services of two professional engineering design consultants on an as-needed basis in support of Capital Improvement Program (CIP) projects for Fiscal Years 2018 and 2019. It is more efficient and cost effective to issue as-needed contracts for engineering design which will provide the District with the ability to obtain consulting services in a timely and efficient manner. This concept has also been used in the past for other disciplines, such as construction management, geotechnical, electrical, and environmental services. The District staff will identify tasks and request cost proposals from the two consultants during the contract period. Each consultant will prepare a detailed scope of work, schedule, and fee for each task order, with the District evaluating the proposals based upon qualifications and cost. The District will enter into negotiations with the consultants, selecting the proposal that has the best value for the District. Upon written task order authorization from the District, the selected consultant shall then proceed with the project as described in the scope of work. The CIP projects that are estimated to require engineering design services for Fiscal Years 2018 and 2019, at this time, are listed below: CIP DESCRIPTION ESTIMATED COST P2453 SR-11 Utility Relocations – Enrico Fermi & Alta Road Bridge Crossing $150,000 P2405/ P2554 624/340 PRSs at Energy Way/Nirvana Avenue and Heritage Road/Hard Rock Road $25,000 P2559 Pressure Vessel Repair and Replacement Program $25,000 P2553 Heritage Road Bridge Replacement and Utility Relocation $100,000 P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande $85,000 R2110 944-1 Recycled Water Pump Station Optimization and Pressure Zone Modifications $50,000 R2116 14-inch Recycled Force Main Assessment and Repair $75,000 S2049 Calavo Basin Sewer Rehabilitation - Phase 2 $65,000 TOTAL: $575,000 3 Staff believes that a $600,000 cap on each of the As-Needed Engineering Design Services contracts is adequate, while still providing a buffer for any unforeseen tasks. Fees for professional services will be charged to the CIP projects. The As-Needed Engineering Design Services contracts do not commit the District to any expenditure until a task order is approved to perform the work. The District does not guarantee work to the consultants, nor does the District guarantee to the consultants that it will expend all of the funds authorized by the contract on professional services. The District solicited engineering design services by placing an advertisement on the Otay Water District’s website and using BidSync, the District’s online bid solicitation website on June 27, 2017. The advertisement was also placed in the Daily Transcript. Ten (10) firms submitted a Letter of Interest and a Statement of Qualifications. The Request for Proposal (RFP) for Engineering Design Services was sent to all ten (10) firms resulting in eight (8) proposals received on August 2, 2017. They are as follows: • Atkins (San Diego, CA) • Brady (San Diego, CA) • Hazen and Sawyer (San Diego, CA) • Hunsaker and Associates (San Diego, CA) • Michael Baker International (San Diego, CA) • NV5 (San Diego, CA) • Psomas (San Diego, CA) • Rick Engineering (San Diego, CA) Firms that submitted Letters of Interest, but did not propose, were Carollo (San Diego, CA) and Harris and Associates (San Diego, CA). In accordance with the District’s Policy 21, Staff evaluated and scored all written proposals and interviewed the top six (6) firms on August 22 and August 29, 2017. NV5 and Michael Baker received the highest scores based on their experience, understanding of the scope of work, proposed method to accomplish the work, and their composite hourly rate. NV5 and Michael Baker were the most qualified consultants with the best overall proposal. Both consultants provide similar services to other local agencies and are readily available to provide the services required. A summary of the complete evaluation is shown in Attachment B. 4 NV5 and Michael Baker submitted the Company Background Questionnaire, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds for these contracts will be expended on a variety of projects, as previously noted above. These contracts are for as- needed professional services based on the District's need and schedule, and expenditures will not be made until a task order is approved by the District for the consultant's services on a specific CIP project. Based on a review of the financial budget, the Project Manager anticipates that the budgets will be sufficient to support the professional as-needed consulting services required for the CIP projects noted above. The Finance Department has determined that the funds to cover these contracts will be available as budgeted for these projects. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner” and the General Manager’s Vision, "A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. KC/BK:jf P:\WORKING\As Needed Services\Engineering Design\FY 2018-2019\Staff Report\BD_10-04-17_Staff Report_Award of As-Needed Engineering Design Services (KC-BK).docx Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: Various Award of Two (2) As-Needed Engineering Design Services Contracts for Fiscal Years 2018 and 2019 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2017. 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. Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Rates* Consultant's Commitment to DBE TOTAL - WRITTEN Additional Creativity and Insight Strength of Project Manager Presentation and Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL TOTAL SCORE 30 25 30 85 85 15 Y/N 100 15 15 10 10 50 50 150 Poor/Good/ Excellent Dan Martin 25 23 25 73 13 12 8 8 41 Brandon DiPietro 25 23 26 74 12 12 7 7 38 Steve Beppler 18 23 27 68 10 10 6 7 33 Jeff Marchioro 21 21 24 66 12 12 8 6 38 Jake Vaclavek 26 23 25 74 13 6 7 7 33 Dan Martin 28 20 24 72 10 9 7 7 33 Brandon DiPietro 24 22 25 71 12 11 7 6 36 Steve Beppler 23 20 22 65 10 8 7 6 31 Jeff Marchioro 26 21 26 73 12 10 8 7 37 Jake Vaclavek 22 23 26 71 8105 629 Dan Martin 26 20 24 70 Brandon DiPietro 22 21 22 65 Steve Beppler 21 19 22 62 Jeff Marchioro 24 20 24 68 Jake Vaclavek 23 22 24 69 Dan Martin 23 20 20 63 10 9 7 7 33 Brandon DiPietro 22 20 21 63 10 11 7 6 34 Steve Beppler 20 18 18 56 896528 Jeff Marchioro 19 17 19 55 11 10 8 5 34 Jake Vaclavek 22 19 22 63 778729 Dan Martin 28 23 28 79 13 14 9 9 45 Brandon DiPietro 27 23 26 76 14 14 10 9 47 Steve Beppler 25 22 26 73 12 12 9 8 41 Jeff Marchioro 28 23 28 79 14 13 10 10 47 Jake Vaclavek 26 23 27 76 13 12 10 9 44 Dan Martin 26 20 24 70 14 14 9 10 47 Brandon DiPietro 24 20 24 68 14 14 10 10 48 Steve Beppler 25 21 25 71 14 13 9 9 45 Jeff Marchioro 24 20 24 68 15 14 9 9 47 Jake Vaclavek 25 22 25 72 13 13 9 9 44 Dan Martin 26 20 24 70 Brandon DiPietro 22 20 22 64 Steve Beppler 23 20 24 67 Jeff Marchioro 22 19 22 63 Jake Vaclavek 25 20 25 70 Dan Martin 26 23 26 75 12 12 8 7 39 Brandon DiPietro 27 23 26 76 12 12 7 7 38 Steve Beppler 26 21 25 72 10 11 7 7 35 Jeff Marchioro 27 22 27 76 12 13 7 6 38 Jake Vaclavek 26 22 26 74 11 11 8 7 37 Consultant Weighted Rate Score Atkins $151 3 *The fees were evaluated by comparing rates for seven positions. The sum of these rates are noted on the table to the left. Brady $133 8 Note: Review Panel does not see or consider rates when scoring other categories. Rates are scored by the PM, who is not on Review Panel. Hazen and Sawyer $158 1 Hunsaker & Associates $105 15 Michael Baker International $152 3 NV5 $130 8 Psomas $145 4 Rick Engineering $129 9 RATES SCORING CHART Rick Engineering 8 Y 78 ATTACHMENT B SUMMARY OF PROPOSAL RANKINGS As-Needed Engineering Design - Fiscal Years 2018 and 2019 WRITTEN ORAL Hazen and Sawyer Brady 70 78 MAXIMUM POINTS 3Atkins Y Y 32 4 Michael Baker International REFERENCES 67 Y 68 8 71 Y 74 71 75 12184 Psomas Y 71 Hunsaker & Associates 67 Y 60 15 Y Excellent 379 77 3 37 111 33 111 FIRM NOT INTERVIEWED 125 46 124 Excellent 75 NV5 70 45 1 80 68 107 FIRM NOT INTERVIEWED STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 4, 2017 SUBMITTED BY: Kevin Cameron Associate Civil Engineer Bob Kennedy Engineering Manager PROJECT: Various DIV. NO. All APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Award of Two (2) As-Needed Geotechnical Engineering Services Contracts for Fiscal Years 2018, 2019, and 2020 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award two (2) professional As-Needed Geotechnical Engineering Services contracts and to authorize the General Manager to execute two agreements with Geocon, Inc. (Geocon) and Ninyo & Moore Geotechnical and Environmental Sciences Consultants, Inc. (Ninyo & Moore), each in an amount not-to-exceed $175,000. The total amount of the two contracts will not exceed $175,000 during Fiscal Years 2018, 2019, and 2020 (ending June 30, 2020). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into two (2) professional As-Needed Geotechnical Engineering Services contracts with Geocon and Ninyo & Moore, with each contract in an amount not-to-exceed $175,000 for Fiscal Years 2018, 2019, and 2020. The total amount of the two contracts will not exceed $175,000 during Fiscal Years 2018, 2019, and 2020. 2 ANALYSIS: The District will require the services of two professional Geotechnical Engineering consultants on an as-needed basis in support of Capital Improvement Program (CIP) projects for Fiscal Years 2018, 2019, and 2020. It is more efficient and cost effective to issue as- needed contracts for Geotechnical Engineering Services which will provide the District with the ability to obtain consulting services in a timely and efficient manner. This concept has also been used in the past for other disciplines, such as construction management, engineering design, land surveying, and environmental services. The District staff will identify tasks and request cost proposals from the two consultants during the contract period. Each consultant will prepare a detailed scope of work, schedule, and fee for each task order, with the District evaluating the proposals based upon qualifications and cost. The District will enter into negotiations with the consultants, selecting the proposal that has the best value for the District. Upon written task order authorization from the District, the selected consultant shall then proceed with the project as described in the scope of work. The CIP projects that are estimated to require Geotechnical Engineering Services for Fiscal Years 2018, 2019, and 2020, at this time, are listed below: CIP DESCRIPTION ESTIMATED COST P2040 Res - 1655-1 Reservoir 0.5 MG $15,000 P2453 SR-11 Utility Relocations – Enrico Fermi & Alta Road Bridge Crossing $30,000 P2405/ P2554 624/340 PRSs at Energy Way/Nirvana Avenue and Heritage Road/Hard Rock Road $5,000 P2559 Pressure Vessel Repair and Replacement Program $5,000 P2553 Heritage Road Bridge Replacement and Utility Relocation $20,000 P2615 Quarry Road Bridge Replacement and Utility Relocation $20,000 P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande $25,000 S2049 Calavo Basin Sewer Rehabilitation - Phase 2 $25,000 Various Steel Reservoir Rehabilitation – Welding Inspection $10,000 TOTAL: $155,000 3 Staff believes that a $175,000 cap on each of the As-Needed Geotechnical Engineering Services contracts is adequate, while still providing a buffer for any unforeseen tasks. Fees for professional services will be charged to the CIP projects. The As-Needed Geotechnical Engineering Services contracts do not commit the District to any expenditure until a task order is approved to perform the work. The District does not guarantee work to the consultants, nor does the District guarantee to the consultants that it will expend all of the funds authorized by the contract on professional services. The District solicited Geotechnical Engineering Services by placing an advertisement on the Otay Water District’s website and using BidSync, the District’s online bid solicitation website on July 24, 2017. The advertisement was also placed in the Daily Transcript. Seven (7) firms submitted a Letter of Interest and a Statement of Qualifications. The Request for Proposal (RFP) for Geotechnical Engineering Services was sent to all seven (7) firms resulting in six (6) proposals received by August 24, 2017. They are as follows: • Construction Testing & Engineering (Escondido, CA) • Geocon (San Diego, CA) • MTGL (Anaheim, CA) • Ninyo & Moore (San Diego, CA) • RMA Group (San Diego, CA) • SCST (San Diego, CA) Leighton Consulting (San Diego, CA) submitted a Letter of Interest, but did not submit a proposal. In accordance with the District’s Policy 21, Staff evaluated and scored all written proposals. Geocon and Ninyo & Moore received the highest scores based on their experience, understanding of the scope of work, proposed method to accomplish the work, and their composite hourly rate. Geocon and Ninyo & Moore were the most qualified consultants with the best overall proposal. Both consultants provided similar services to other local agencies and are readily available to provide the services required. A summary of the complete evaluation is shown in Attachment B. Geocon and Ninyo & Moore submitted the Company Background Questionnaire, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search. 4 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds for these contracts will be expended on a variety of projects, as previously noted above. These contracts are for as- needed professional services based on the District's need and schedule, and expenditures will not be made until a task order is approved by the District for the consultant's services on a specific CIP project. Based on a review of the financial budget, the Project Manager anticipates that the budgets will be sufficient to support the professional as-needed consulting services required for the CIP projects noted above. The Finance Department has determined that the funds to cover these contracts will be available as budgeted for these projects. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner” and the General Manager’s Vision, "A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. KC/BK:jf P:\WORKING\As Needed Services\Geotechnical Engineering\FY 2018-2019\Staff Report\BD_10-04-17_Staff Report_Award of As-Needed Geotechnical Engineering Services (KC-BK).docx Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: Various Award of Two (2) As-Needed Geotechnical Engineering Services Contracts for Fiscal Years 2018, 2019, and 2020 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2017. 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. Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Rates* Consultant's Commitment to DBE TOTAL SCORE 30 25 30 85 85 15 Y/N 100 Poor/Good/ Excellent Bob Kennedy 25 22 24 71 Jose Martinez 23 22 23 68 Lisa Colburn-Boyd 26 19 25 70 Mike O'Donnell 25 23 26 74 Jon Chambers 23 20 25 68 Bob Kennedy 27 24 26 77 Jose Martinez 25 23 24 72 Lisa Colburn-Boyd 27 24 27 78 Mike O'Donnell 26 25 27 78 Jon Chambers 26 22 26 74 Bob Kennedy 26 22 25 73 Jose Martinez 25 20 26 71 Lisa Colburn-Boyd 27 18 23 68 Mike O'Donnell 26 20 25 71 Jon Chambers 25 21 26 72 Bob Kennedy 27 24 27 78 Jose Martinez 25 23 25 73 Lisa Colburn-Boyd 28 24 27 79 Mike O'Donnell 27 25 27 79 Jon Chambers 27 24 26 77 Bob Kennedy 25 22 25 72 Jose Martinez 21 21 26 68 Lisa Colburn-Boyd 26 23 26 75 Mike O'Donnell 25 21 25 71 Jon Chambers 27 23 25 75 Bob Kennedy 25 22 25 72 Jose Martinez 24 23 24 71 Lisa Colburn-Boyd 27 20 25 72 Mike O'Donnell 25 22 25 72 Jon Chambers 25 20 25 70 Firm CT & E Geocon MTGL Ninyo & Moore RMA Group SCST Fee $183 $196 $181 $160 $240 $205 Score 11 9 11 15 1 7 *Note: Review Panel does not see or consider proposed fee when scoring other categories. The proposed fee is scored by the PM, who is not on the Review Panel. 78 RATES SCORING CHART 15 Y SCST 71 7 Y 92 MTGL, Inc.71 11 Y 82 SUMMARY OF PROPOSAL RANKINGS As-Needed Geotechnical Engineering Services Geocon, Inc.76 9 Y 85 Excellent ATTACHMENT B WRITTEN REFERENCES MAXIMUM POINTS Construction Testing & Engineering, Inc.70 11 Y 81 Excellent RMA Group 72 1 Y 73 Ninyo & Moore 77 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 4, 2017 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: P2546-001103 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Award of a Construction Contract to Simpson Sandblasting and Special Coatings, Inc. for the 980-2 Reservoir Interior/ Exterior Coatings & Upgrades Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a construction contract to Simpson Sandblasting and Special Coatings, Inc. (Simpson) and to authorize the General Manager to execute a construction contract with Simpson for the 980-2 Reservoir Interior/Exterior Coatings & Upgrades Project in an amount not-to- exceed $1,146,327.00 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a construction contract with Simpson for the 980-2 Reservoir Interior/Exterior Coatings & Upgrades Project in an amount not-to- exceed $1,146,327.00. 2 ANALYSIS: The 980-2 Reservoir is one of two 5.0 million gallon potable water storage facilities in the 980 pressure zone that serve the central area of the District. The 980-2 Reservoir was originally constructed in 1988. The 980-2 was last recoated on the interior surface in 2001, and the coating on the exterior is original to the tank. The District’s corrosion consultant, HDR, Inc., maintains a Corrosion Control Program (CCP) that addresses the installation, maintenance, and monitoring of corrosion protection systems for the District’s steel reservoirs and buried metallic piping. The CCP included a reservoir maintenance schedule that showed the 980-2 Reservoir was due to be recoated on both the interior and exterior surfaces in 2019. An in-service internal and external inspection was performed by Dive/Corr, Inc. which illustrated the interior roof coating was in fair to poor condition, and there were areas of interior blistering on the shell and floor beneath the waterline. Although the blistering paint is still protecting the steel, blisters in the paint are the beginning signs of failure. The coating on the reservoir exterior has never been completely replaced. Over the life of the reservoir, only spot repairs to the exterior have been performed as needed. The external inspection showed the exterior coating is beginning to lose adhesion and has exceeded its useful life. Given the condition of the interior coating, the age of the exterior coating, and the need for a number of structural upgrades, the reservoir recoating was accelerated. In addition to replacing the coatings and structural upgrades, safety items will be installed to comply with current safety and health requirements. During construction, service in the 980 pressure zone will be provided by the 980-1 Reservoir. In addition to the interior and exterior coating removal/replacement, the recommended structural upgrades are as follows: replace the existing level indicator, install new fall prevention devices on the exterior ladder, modify anode access ports, replace all cathodic anodes, replace all five (5) roof vents, install new safety cable lanyards for roof access, and add multiple tank penetrations for chlorination and sampling. These upgrades will ensure compliance with American Water Works Association (AWWA) and the Occupational Safety and Health Administration Standards for both Federal (OSHA) and State (Cal-OSHA) as well as upgrade antiquated equipment on the tank. The Project was advertised on August 2, 2017 using BidSync, the District’s online bid solicitation website, on the Otay Water District’s website, and in the Daily Transcript. A Pre-Bid Meeting 3 was held on August 15, 2017, which was attended by ten (10) contractors and vendors. One (1) addendum was sent out to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. Bids were publicly opened on August 24, 2017, with the following results: CONTRACTOR TOTAL BID AMOUNT 1 Simpson Sandblasting & Special Coatings, Inc. Fontana, CA $1,146,377.00 2 Advanced Industrial Services, Inc. Los Alamitos, CA $1,169,900.00 3 Bilbro Construction Company, Inc. Escondido, CA $1,425,107.00 4 West Coast Industrial Coatings, Inc. Hemet, CA $1,573,940.00 The Engineer's Estimate is $1,192,000. A review of the bids was performed by District staff for conformance with the contract requirements. During the review of the bids, staff noted a discrepancy between the unit price and extended total amounts for one of the items associated with the bid submitted by Simpson. Staff corrected the bid amount in accordance with the requirements included in Section 00400, “Bid List Requirements and Understanding” of the contract documents. Staff also noted that unit pricing, as required by the contract documents, was missing from West Coast Industrial Coatings, Inc.’s (West Coast) bid and only the extended total amounts were provided. Staff determined that West Coast’s bid is non-responsive. The corrected bid amounts are shown in the table below: CONTRACTOR TOTAL BID AMOUNT 1 Simpson Sandblasting & Special Coatings, Inc. Fontana, CA $1,146,327.00 2 Advanced Industrial Services, Inc. Los Alamitos, CA $1,169,900.00 3 Bilbro Construction Company, Inc. Escondido, CA $1,425,107.00 4 West Coast Industrial Coatings, Inc. Hemet, CA Non-Responsive 4 Staff determined that Simpson is the lowest responsive and responsible bidder. Simpson holds a Class C-33 Contractor’s license which expires on May 31, 2018. Simpson also holds a current QP-1 certification from the Society for Protective Coatings, which was also a requirement. Staff checked references, and the response from other agencies indicated Simpson has an excellent performance rating on similar projects. The proposed Project Manager has experience in California on similar projects and received excellent recommendations. A background search of the company was performed on the internet and revealed one issue associated with an OSHA safety violation where a $250.00 penalty was issued on March 30, 2012. The issue, which was related to an employee’s exposure to airborne contaminants, was abated by Simpson May 2, 2012 according to the OSHA website. Simpson submitted the Company Background and Company Safety Questionnaires, as required by the Contract Documents. Staff confirmed that Simpson is registered with the Department of Industrial Relations, as required by Senate Bill SB 854. Staff has verified that the bid bond provided by The Ohio Casualty Insurance Company is valid. Once Simpson signs the contract, they will furnish the performance bond and labor and materials bond. Staff will verify both bonds prior to executing the contract. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2546, as approved in the FY 2018 budget, is $1,450,000. Total expenditures, plus outstanding commitments and forecast, are $1,444,303. See Attachment B for the budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding will be available from the Replacement Fund. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” 5 LEGAL IMPACT: None. DM:jf P:\WORKING\CIP P2546 - 980-2 Reservoir Int-Ext Coating\Staff Reports\10-4-17, Staff Report 980-2 Reservoir Coating.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Project Location for 980-2 ATTACHMENT A SUBJECT/PROJECT: P2546-001103 Award of a Construction Contract to Simpson Sandblasting and Special Coatings, Inc. for the 980-2 Reservoir Interior/Exterior Coatings & Upgrades Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2017. 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 – Budget Detail SUBJECT/PROJECT: P2546-001103 Award of a Construction Contract to Simpson Sandblasting and Special Coatings, Inc. for the 980-2 Reservoir Interior/Exterior Coatings & Upgrades Project 8/28/2017 Budget 1,450,000 Planning Standard Salaries 4,200 4,042 158 4,200 Consultant Contracts - - - - Service Contracts 2,310 2,310 - 2,310 HDR ENGINEERING INC Regulatory Agency Fees 100 - 100 100 PETTY CASH CUSTODIAN Total Planning 6,610 6,352 258 6,610 Design Standard Salaries 15,000 10,201 4,799 15,000 Service Contracts 2,000 - 2,000 2,000 MAYER 1,000 - 1,000 1,000 DAILY TRIBUNE Equipment Charge 50 - 50 50 EQUIPMENT Total Design 18,050 10,201 7,849 18,050 Construction Standard Salaries 120,000 - 120,000 120,000 Construcion Contract 1,146,327 - 1,146,327 1,146,327 SIMPSON SANDBLASTING - CONTRACTOR Service Contracts 25,000 - 25,000 25,000 CONSTRUCTION MANAGEMENT 50,000 - 50,000 50,000 COATING INSPECTION 1,500 - 1,500 1,500 WELDING INSPECTION 10,000 - 10,000 10,000 SECURITY 2,000 - 2,000 2,000 CHEMICAL TESTING Equipment Charge 2,000 - 2,000 2,000 EQUIPMENT CHARGE Standard Materials 500 - 500 500 STANDARD MATERIALS Project Closeout 5,000 - 5,000 5,000 CLOSEOUT Project Contingency 57,316 - 57,316 57,316 5% OF CONSTRUCTION CONTRACT Total Construction 1,419,643 - 1,419,643 1,419,643 Grand Total 1,444,303 16,553 1,427,750 1,444,303 Vendor/Comments Otay Water District P2546-980-2 Reservoir Interior/Exterior Coating Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT980-2 Reservoir Interior/Exterior Coating & UpgradesLocation Map EXHIBIT A F P: \ \ W O R K I N G \ C I P P 2 5 4 6 - 9 8 0 - 2 R e s e r v o i r I n t - E x t C o a t i n g \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ R e s e r v o i r L o c a t i o n M a p E x h i b i t 0 750375 Feet CIP P2546 980-2 Reservoir ACC E S S R D SALT CREEK GOLF CLUB HU N T E !\ VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë F 944-1R 980-1 927-1R PROCTOR VALLEY RD P K W Y ACCESS RD STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 4, 2017 SUBMITTED BY: Brandon DiPietro Field Services Manager Dan Martin Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 565 Amending Section 31 Temporary Water Service of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt Ordinance No. 565 (Attachment B) amending Section 31 Temporary Water Service of the District’s Code of Ordinances. COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of the proposed amendments to Section 31 of the District’s Code of Ordinances is to provide clarification on requirements for the use of recycled water for temporary purposes. ANALYSIS: Section 31 of the District’s Code of Ordinances provides the definitions of approved uses of temporary water service, requirements of temporary meters for service, and the fees and charges for temporary meters. Within Section 31.02, “Requirement of Temporary Meter for Service,’’ the Code is silent on the requirements and use of recycled water for temporary purposes. As new areas of the District develop adjacent to the District’s recycled water network, temporary use of recycled water for dust 2 control and soil hydration during construction have been identified as an approved beneficial use for the District and the developer; other benefits to the District include reducing the demand on the potable system during large construction projects. Amending the Code of Ordinances will also bring greater visibility to the use of recycled water for construction. Staff is recommending language that codifies the requirements for obtaining recycled water through a temporary meter (see (Attachment B- Exhibit 1). The proposed changes to the District’s Code of Ordinances include the following:  Section 31.02 o E & F – Correct subparagraph lettering to D & E. o F - Language is added to describe how temporary recycled water service is provided and uses allowed for temporary recycled water. The draft language included in the proposed Section 31 of the Code of Ordinances (Attachment C) was transmitted to the development community on August 21, 2017 for comments; as of September 12, 2017 no comments have been received. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Adoption of Ordinance No. 565 supports the District’s Mission statement, “To provide high quality and reliable water and wastewater services to the customers of the Otay Water District, in a professional, effective, and efficient manner” and the General Manager’s Vision, "A District that is innovative in providing water services at competitive rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. BD/DM/RP:jf P:\Field Services\Staff Reports\Section 31\BD 10-04-2017 Staff Report Code Section 31_djm.docx Attachments: Attachment A – Committee Action Attachment B - Ordinance No. 565 Exhibit 1 – Strike-through Section 31 Attachment C – Proposed Section 31 ATTACHMENT A SUBJECT/PROJECT: VARIOUS Adopt Ordinance No. 565 Amending Section 31 Temporary Water Service of the District’s Code of Ordinances COMMITTEE ACTION: The Finance, Administration, and Communications Committee (Committee) reviewed this item at a Committee Meeting held on September 20, 2017. 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. 565 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 31 TEMPORARY WATER SERVICE OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances, Section 31 TEMPORARY WATER SERVICE be amended as per Exhibit 1 (attached). NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 31 (Attachment C) of the Code of Ordinances shall become effective October 4, 2017. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 4th day of October, 2017, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary Attachment B -- Exhibit 1 Revised by Ordinance 539 9/4/13 SECTION 31 TEMPORARY WATER SERVICE 31.01 DEFINITION OF TEMPORARY SERVICE Temporary water service is water service provided for a limited period of time not to exceed 365 days, and used for temporary purposes such as construction, hydrotesting water systems, vegetation of slopes, and other uses noted in this section. Temporary water service shall not be provided to residential dwellings or commercial business enterprises, which are covered under Section 60 of this Code. 31.02 REQUIREMENT OF TEMPORARY METER FOR SERVICE Temporary service may be provided after installation of a temporary meter pursuant to a customer's written application for such service. Temporary service by means of a "jumper" or other unauthorized connection to the District water system is prohibited and subject to penalties as set forth in Section 72. A. Size and Location. 1. The size and location of temporary meters will be determined solely by the District. 2. For temporary service from a fire hydrant, a meter of at least 4-inch" in size will be required. Only one 2½-inch" fire hydrant port per fire hydrant shall be occupied by a temporary meter at one time. B. Temporary water service from a fire hydrant shall be limited to the following applications: 1. Filling of water trucks and drop tanks. 2. General construction requirements, such as backfill and compaction, guniting and stuccoing, and block wall building. 3. Flushing of storm drains and sewer lines. 4. Filling, hydrotesting, chlorination, and flushing of newly constructed potable and reclaimed water lines. 5. Filling, flushing, hydrotesting, and the initial operational coverage testing of reclaimed water irrigation systems. Temporary service provided for this application shall be limited to a maximum of 60 days. 6. Operation of landscape irrigation for the establishment of vegetation on slopes or other planted areas. 31-2 Temporary service provided for this application shall be limited to a maximum of 180 days. Item 5 and 6 above shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in plain view and within 3 feet of the temporary hydrant meter. C. Temporary service to construction trailers or other temporary construction buildings may be provided as follows: 1. Through a temporary meter connected to the 1 or 2- inch service lateral for the lot the trailer is placed on. 2. Where Item 1 above is not possible, through a temporary meter connected to appurtenances other than a fire hydrant, such as a blow off. 3. Where either Item 1 or 2 above is not possible, from a temporary 4- inch meter connected to a fire hydrant. Service to construction trailers or other temporary construction buildings shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in accordance with District requirements. DE. If any unauthorized connection, disconnection or relocation of a temporary meter, or other connection device is made by other than District employees, District may discontinue fur- ther water service to the entire project and impose penalties as set forth in Section 72. EF. Extensions to the time limits referenced in this section may be made by the General Manager. Requests for time extensions shall be made by the customer in writing. F. Temporary Recycled Water Service may be provided as follows: 1. Through a temporary meter connection to a 2- inch recycled service lateral for the lot the work is to take place on.parcel proposed to be irrigated with recycled water. 2. Through a 3- inch or larger meter connected to an appropriate recycled appurtenance as approved by Otay Water District. 31-3 3. Permitted use of temporary recycled water shall be limited to construction site dust control and soil hydration as approved by Otay Water District. 4. Use of temporary recycled water shall be in accordance with the requirements of Section 26 ‘‘Water Recycling Plan and Implementing Procedures’’ of the Code of Ordiances. 31.03 FEES AND CHARGES FOR TEMPORARY METERS A. Temporary Service. Temporary water service shall be furnished to the property owner or the owner’s authorized agent only and shall be provided under the following conditions: 1. Requirement of Deposit. At the time application is made for temporary service, the customer shall deposit with the District the amount set forth in Appendix A, 31.03 A.1. 2. Delinquency. No temporary meters shall be furnished to any person with a delinquent account with the District. 3. Refund of Deposit or Additional Payment. Upon cancellation or termination of the temporary service, the District will refund the amount of deposit remaining after making the following deductions: a) cost of installing, moving, and removing the meter; b) cost of repairing or replacing the meter, fire hydrant, and/or any fittings damaged or lost while in use; and c) unpaid charges for water used or other applicable charges. 4. Temporary Meter Set-up & Removal. The charges to set- up and remove a temporary meter are set forth in Appendix A, 31.03 A.4. 5. Temporary Meter Move Fee. If a meter needs to be moved from one location to another see Appendix A., 31.03 A.5. B. Rates for Temporary Service. The minimum category of service for Temporary Water Service from a hydrant shall be a meter size of 4- inches. Payment for temporary water service shall be in accordance with rates and charges set forth in Section 25.03. 31-4 31.04 PAYMENT OF CAPACITY, NEW WATER SUPPLY, AND ANNEXATION FEES FOR TEMPORARY METERS A. Customers, whose property has been annexed into an Improvement District, may elect to pay the capacity, new water supply and annexation fees in addition to the deposit amount shown in Appendix A, 31.03.A.1. B. Capacity, new water supply and annexation fees for this type of temporary service shall be calculated in accordance with Sections 9 and 28. C. Payment for this type of temporary service shall be in accordance with the rates and charges set forth in Section 25.03 and based on water use type. D. Customers electing this type of temporary service shall be credited the number of equivalent dwelling units they have previously purchased when the meter(s) is returned to the District. The credit shall be applicable to permanent meters purchased within the same subdivision or development where the temporary meter was used. Attacment C Revised by Ordinance 539 9/4/13 SECTION 31 TEMPORARY WATER SERVICE 31.01 DEFINITION OF TEMPORARY SERVICE Temporary water service is water service provided for a limited period of time not to exceed 365 days, and used for temporary purposes such as construction, hydrotesting water systems, vegetation of slopes, and other uses noted in this section. Temporary water service shall not be provided to residential dwellings or commercial business enterprises, which are covered under Section 60 of this Code. 31.02 REQUIREMENT OF TEMPORARY METER FOR SERVICE Temporary service may be provided after installation of a temporary meter pursuant to a customer's written application for such service. Temporary service by means of a "jumper" or other unauthorized connection to the District water system is prohibited and subject to penalties as set forth in Section 72. A. Size and Location. 1. The size and location of temporary meters will be determined solely by the District. 2. For temporary service from a fire hydrant, a meter of at least 4-inch in size will be required. Only one 2½- inch fire hydrant port per fire hydrant shall be occupied by a temporary meter at one time. B. Temporary water service from a fire hydrant shall be limited to the following applications: 1. Filling of water trucks and drop tanks. 2. General construction requirements, such as backfill and compaction, guniting and stuccoing, and block wall building. 3. Flushing of storm drains and sewer lines. 4. Filling, hydrotesting, chlorination, and flushing of newly constructed potable and reclaimed water lines. 5. Filling, flushing, hydrotesting, and the initial operational coverage testing of reclaimed water irrigation systems. Temporary service provided for this application shall be limited to a maximum of 60 days. 6. Operation of landscape irrigation for the establishment of vegetation on slopes or other planted areas. 31-2 Temporary service provided for this application shall be limited to a maximum of 180 days. Item 5 and 6 above shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in plain view and within 3 feet of the temporary hydrant meter. C. Temporary service to construction trailers or other temporary construction buildings may be provided as follows: 1. Through a temporary meter connected to the 1 or 2-inch service lateral for the lot the trailer is placed on. 2. Where Item 1 above is not possible, through a temporary meter connected to appurtenances other than a fire hydrant, such as a blow off. 3. Where either Item 1 or 2 above is not possible, from a temporary 4-inch meter connected to a fire hydrant. Service to construction trailers or other temporary construction buildings shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in accordance with District requirements. D. If any unauthorized connection, disconnection or relocation of a temporary meter, or other connection device is made by other than District employees, District may discontinue fur- ther water service to the entire project and impose penalties as set forth in Section 72. E. Extensions to the time limits referenced in this section may be made by the General Manager. Requests for time extensions shall be made by the customer in writing. F. Temporary Recycled Water Service may be provided as follows: 1. Through a temporary meter connection to a 2-inch recycled service lateral for the parcel proposed to be irrigated with recycled water. 2. Through a 3-inch or larger meter connected to an appropriate recycled appurtenance as approved by Otay Water District. 3. Permitted use of temporary recycled water shall be limited to construction site dust control and soil hydration as approved by Otay Water District. 31-3 4. Use of temporary recycled water shall be in accordance with the requirements of Section 26 ‘‘Water Recycling Plan and Implementing Procedures’’ of the Code of Ordiances. 31.03 FEES AND CHARGES FOR TEMPORARY METERS A. Temporary Service. Temporary water service shall be furnished to the property owner or the owner’s authorized agent only and shall be provided under the following conditions: 1. Requirement of Deposit. At the time application is made for temporary service, the customer shall deposit with the District the amount set forth in Appendix A, 31.03 A.1. 2. Delinquency. No temporary meters shall be furnished to any person with a delinquent account with the District. 3. Refund of Deposit or Additional Payment. Upon cancellation or termination of the temporary service, the District will refund the amount of deposit remaining after making the following deductions: a) cost of installing, moving, and removing the meter; b) cost of repairing or replacing the meter, fire hydrant, and/or any fittings damaged or lost while in use; and c) unpaid charges for water used or other applicable charges. 4. Temporary Meter Set-up & Removal. The charges to set- up and remove a temporary meter are set forth in Appendix A, 31.03 A.4. 5. Temporary Meter Move Fee. If a meter needs to be moved from one location to another see Appendix A., 31.03 A.5. B. Rates for Temporary Service. The minimum category of service for Temporary Water Service from a hydrant shall be a meter size of 4-inches. Payment for temporary water service shall be in accordance with rates and charges set forth in Section 25.03. 31.04 PAYMENT OF CAPACITY, NEW WATER SUPPLY, AND ANNEXATION FEES FOR TEMPORARY METERS 31-4 A. Customers, whose property has been annexed into an Improvement District, may elect to pay the capacity, new water supply and annexation fees in addition to the deposit amount shown in Appendix A, 31.03.A.1. B. Capacity, new water supply and annexation fees for this type of temporary service shall be calculated in accordance with Sections 9 and 28. C. Payment for this type of temporary service shall be in accordance with the rates and charges set forth in Section 25.03 and based on water use type. D. Customers electing this type of temporary service shall be credited the number of equivalent dwelling units they have previously purchased when the meter(s) is returned to the District. The credit shall be applicable to permanent meters purchased within the same subdivision or development where the temporary meter was used. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 4, 2017 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Adolfo Segura, Chief of Administrative Services APPROVED BY: Mark Watton, General Manager SUBJECT: FY17 YEAR-END REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a year-end report on the District’s FY15-18 Strategic Performance Plan for FY17. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year plan ranging from the start of FY15 through the end of FY18. This report details the year-end results for the third year of our four-year plan. Strategic 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. Objective results for FY17 year-end are above target at 94%, with 29 of 31 active items completed or on schedule. One objective is behind schedule and one is on hold. The following objective has been reported to be behind schedule: 1. Streamline Input of Operations Data – Staff identified business processes and forms that could be automated for enhanced efficiencies. Due to the delay of the SCADA project closeout, a roadmap project list could not be completed on schedule, however, an action list will be presented during FY19. It’s important to note that as part of this objective, during the last three (3) years, approximately 20 paper-based forms and legacy processes, ranging from asset management maintenance work order creation to water systems daily journal logs, have been streamlined and automated. These forms and processes can be accessed via the District’s SharePoint work portal, or mobile application. The following objective has been put on hold: 1. Evaluate Requirements for Future Emergency Communication System – The existing radio communication system is expected to be vendor supported for an additional three (3) years. Staff will continue to explore new technologies in this area and during the new strategic plan, will conduct a needs-analysis in order to develop an RFP to replace the existing radio communication system. Performance Measures – Target 75% Performance measures are designed to track the District’s day-to-day performance. These items measure the effectiveness and efficiency of daily operations and essential services. The overall goal is that at least 75% of these measures be rated “on target”. FY17 year-end results are well above target with 38 of 43 (88%) items achieving the desired level or better. 0 2 4 6 8 10 12 14 16 18 COMPLETED ON SCHEDULE BEHIND ON HOLD 12 17 1 1 Completed On Schedule Behind On Hold 29 of 31 Active Objectives are Completed or On Schedule (94%) Items Not On Target 1. CIP Project Expenditures vs. Budget – Year-to-date CIP expenditures amounted to $12,964,000 vs. the budgeted amount of $11,883,000. 2. Project Closeout – Quarter four results were highly influenced by the S2033 project (203 days). Liquidated damages for this construction project were assessed due to delivery beyond the contract time. 3. Overtime Percentage – Year-to-date expenditures amounted to $145,928 vs. the budgeted amount of $123,900. Overtime exceeded the budget due to after-hour field repairs. 4. Direct Cost of Treatment per MGD – The year-to-date result is $1,095.70 vs. the year-to-date target of $1,050.00. The Reclamation Plant experienced process upsets and more material was used to improve effluent quality to meet regulatory compliance. 5. Sewer Overflow Rate – As reported to the Board during mid-year, staff responded to a sanitary sewer overflow in November 2016, near Fair Glen Road in Rancho San Diego. The blockage was a result of root overgrowth inside a sewer manhole. Staff has reported this event to the State Water Resources Control Board as a Category 2 Sanitary Sewer Overflow and the sewer manhole has been placed on a three-month inspection cycle. 0 2 4 6 8 10 12 14 16 18 ON TARGET NOT ON TARGET 38 5 On Target Not on Target 38 of 43 Performance Measures are On Target (88%) Next Steps – FY17-18 The completion of Phase 3 emphasized the adoption and leveraging of next generation technology solutions and process improvement, resulting in gained efficiencies with departmental functions across the District, and an effective sustainment of a growing customer base with a reduced workforce. During FY18, which is the last phase of the plan, staff will focus on the completion of remaining objectives, prioritization of a project action list from a recently developed multi-year SCADA roadmap, and improvement to our asset management decision analysis and development of CIP framework. Lastly, staff will also be working on the development of the District’s new 3-5 year Strategic Plan. 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: FY17 YEAR-END REPORT FOR THE DISTRICT’S FY15-18 STRATEGIC PLAN COMMITTEE ACTION: The Finance, Administration and Communications Committee met on September 19, 2017, and the Engineering, Operations, and Water Resources Committee met on September 20, 2017 to review this item. 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 FY17 YEAR-END REPORT 2 Introduction 3OWDStrategicPlanFY15–FY18 The District’s Strategic Plan is developed with the Balanced Scorecard (BSC)strategic planning and management methodology.The model has evolved over time and is now in its fourth-generation.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 or “perspectives”:financial,customer,business processes, and learning and growth. The District’s Strategic Plan is designed to track key organizational project objectives,and essential day-to-day performance measures.During FY17,staff continued to execute the completion of targeted projects and evaluate the potential to further streamline work-group processes and elevate performance metrics if warranted.As we go into the last year of our Strategic Plan,focus will be on the completion of remaining objectives,prioritization of a project action list from a recently developed multi-year SCADA roadmap,and improvement to our asset management decision analysis and development of CIP framework.Lastly,staff will also be working on the development of the District’s new 3-5 year Strategic Plan. 4 Deliver high quality services to meet and increase confidence of the customer 1.Increase customer confidence in the District 2.Improve and expand communications 3.Provide effective water services Manage the financial issues that are critical to the District 1.Improve financial information and systems 2.Maintain District financial strength Maximize efficiency and effectiveness 1.Actively manage water supply as well as support for water and sewer services 2.Identify and evaluate improvements to enterprise and departmental business processes Provide leadership and management expertise 1.Reinforce a results-oriented and accountable culture 2.Focus on achieving a lean flexible workforce Balanced Scorecard Strategies and Goals Customer Financial Business Processes Learning & Growth $$ 5AWWA Benchmarks 1 Technical Quality Complaint Potable Water Compliance Rate Collection System Integrity Sewer Overflow Rate 2 3 4 6Objectives 94% are Completed or On Schedule 0 2 4 6 8 10 12 14 16 18 Completed On Schedule Behind On Hold 12 17 1 1 Completed On Schedule Behind On Hold Objective Report 31 Total 7 COMPLETED Objectives 1.Optimize SCADA program 2.Streamline procurement and contractor on-boarding process via web-based eProcurement technology 3.Advance business processes and operational efficiencies through implementation of next generation information technology 4.Evaluate opportunities to combine or transfer similar work functions 5.Evaluate training and development programs for new and existing supervisors/managers 6.Address dependency of imported water 7.Sewer system business analysis 8.Evaluate the viability of implementing an indirect potable reuse program (IPRP) 9.Streamline work processes in four strategic areas including departmental synergies, technologies, procurements, and alignment of business processes 10.Revise master recycle water permit practice/process 11.Implement a habitat conservation plan that will streamline O&M with District easements 12.Improve and streamline meter related processes 8 ON HOLD Objectives 1.Evaluate Requirements for Future Emergency Communication System 9Objectives 1.Streamline Input of Operations Data BEHIND SCHEDULE 10Performance Measures 88% On Target Measure Report 43 Total 0 5 10 15 20 25 30 35 40 On Target Not on Target 38 5 On Target Not on Target 11Performance Measures 1.Overtime Percentage 2.CIP Project Expenditures vs. Budget 3.Project Closeout Time 4.Direct Cost of Treatment per MGD 5.Sewer Overflow Rate NOT ON TARGET 12 Year-End Results Administrative Services 13Enterprise Technology Services Availability Target: No less than 99.5%availability per quarter in a year Annual Average:99.5% = 3.60 hours of downtime per month/1.83 days of downtime in a year 99.5 99.5 99.5 99.5 99.5 98 98.5 99 99.5 100 100.5 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 Measurement Method 14Employee Turnover Rate Target: Less than 5%turnover in a year # of voluntary resignations (not including retirements)/average # of employees 0 0 0 0.75 0.75 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 Measurement Method 15Training Hours Per Employee Target: 12 hours or more general formal training per employee in a year (excludes safety training) Total qualified training hours for all employees/average # of FTEs 6.35 6.55 4.77 5.19 22.89 0 5 10 15 20 25 Q1 Q2 Q3 Q4 YTD/AVG Target 2015 2016 2017 Measurement Method 16Safety Training Program Target: 24 hours or more safety training per field employee in a year # of safety training hours for the quarter/ # of field employees 6.64 6.75 6.31 11.09 30.83 0 5 10 15 20 25 30 35 40 45 50 Q1 Q2 Q3 Q4 YTD/AVG Target 2015 2016 2017 Measurement Method 17Injury Incident Rate Target: Be at or below the National Average for Utilities-Water Sewage and other Systems A rate of 6.60 or less work-related injuries and illnesses 4.9 4.9 0 1 2 3 4 5 6 7 Q4 AVG Target 2017 Annual Average:6.60 = Number of injuries and illnesses (200,000) / Employee hours workedMeasurement Method 18 Engineering 19CIP Project Expenditures vs. Budget Target: 95% of budget but not to exceed 100%in a year Being below target gives the measure a “not on target” status Actual quarterly expenditures/Annual budget 18.9 19.8 26.8 47.4 109.1 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 Measurement Method 20Construction Change Order Incidence (w/o allowances) Target: No more than 5%per quarter in a year 1.2 2.1 3.1 1.5 1.5 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 Measurement Method Total cost of Change Orders (not including allowances)/Total original construction contract amount (not including allowances) 21 Mark-Out Accuracy Target: No less than 100%mark-out accuracy per quarter in a year 100 100 100 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 # 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 Measurement Method *FY15 –FY17 results are 100% 22Project Closeout Time Target: No more than a 45 day average per quarter in a year 0 48.5 2 128.5 71.2 0 20 40 60 80 100 120 140 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 # of days between NOSC and NOC for all construction projects within the quarter/# of construction projects within the quarter Measurement Method 23Annual Recycled Water Site Inspections Target: 100%of recycled sites inspected in a year (There are 147 recycled water use sites scheduled for FY17) Cumulative % of recycled sites inspected per quarter of those required by DEH 31.2 58.5 86.4 100 100 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 Measurement Method 24Recycled Water Shutdown Testing Target: No less than 90%of recycled site shut down tests in a year (There are 45 recycled water use sites due for shutdown in FY17) Cumulative % of recycled site shutdown tests performed per year compared to those scheduled 24 51 71 90 90 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 Measurement Method 25 Finance 26 # of all calls answered/ # of all calls received during a quarter Answer Rate Target: No less than 97%average answer rate per quarter in a year 98.09 98.19 97.9 98.1 98.12 95 95.5 96 96.5 97 97.5 98 98.5 99 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 Measurement Method 27 Total operations O&M costs/ # of accounts O&M Cost Per Account Target: Less than $540.00 per account in a single year (Target is based on Operating Budget) Measurement Method 117 254 246 517 517 100 150 200 250 300 350 400 450 500 550 600 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 28 # of correct bills during the reporting period/ # of total bills during the reporting period Billing Accuracy Target: No less than 99.8%billing accuracy per quarter in a year 99.99 99.99 99.99 99.99 99.99 98 98.5 99 99.5 100 100.5 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 Measurement Method 29Overtime Percentage Target: Less than 100%of budgeted overtime per quarter in a year (Target is based on Operating Budget; FY17 Overtime Budget is $123,900) Actual overtime costs (including comp time)/ Budgeted overtime costs 97.64 124 183 69 118 0 20 40 60 80 100 120 140 160 180 200 Q1 Q2 Q3 Q4 YTD Target 2014 2015 2016 2017 Measurement Method 30Sewer Rate Ranking Target: Bottom 50 percentile for the 28 sewer service providers in San Diego (Otay ranks 5 out of 28 sewer service providers) 5 5 0 5 10 15 20 25 Q4 YTD Target 2015 2016 2017 Otay ranking for the average bill for sewer/ # of sewer agenciesMeasurement Method 31Water Rate Ranking Target: Bottom 50 percentile for the 22 member agencies in San Diego (Otay ranks 11 out of 22 member agencies) Otay ranking for the average water bill among CWA member agencies 11 11 0 2 4 6 8 10 12 14 Q4 YTD Target 2015 2016 2017 Measurement Method 32Debt Coverage Ratio Target: Above 150%to have sufficient debt coverage (This is measured at year end) Qualified net operating revenues/debt service requirements (measured at year end) 200 200 0 50 100 150 200 250 300 Q4 YTD Target 2015 2016 2017 Measurement Method 33Reserve Level Target: Equal or exceed 85% (This is measured at year end) # of reserve funds that meet or exceed fund target levels/ Total # of reserve funds 85 85 0 20 40 60 80 100 120 140 Q4 YTD Target 2015 2016 2017 Measurement Method 34Percent of Customers Paying Bills Electronically Target: In development (No set targets in FY17; a baseline will be established in FY16 & 17 and appropriate targets will be recommended for the FY18 Strategic Plan) # of customers paying bills electronically/ Total # of customersMeasurement Method 75.17 75.64 75.77 76 75.64 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 YTD Target 2016 2017 35Distribution System Loss Target: Less than 5%of unaccounted water loss per quarter in a year 100 [volume purchased (from CWA) –(volume sold (to customers) + volume used District usage)] / volume purchased (from CWA))Measurement Method 4.3 4 3.6 4.1 4.1 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 36 Operations 37Technical Quality Complaint (AWWA) Target: No more than 9 complaints per 1000 customer accounts in a year 1000 (# of technical quality complaints per quarter)/# of active customer accounts per reporting period AW W A B e n c h m a r k Measurement Method 1.15 0.81 0.58 1.4 3.94 0 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 YTD Target AWWA 2015 2016 2017 AW W A B e n c h m a r k 38Planned Potable Water Maintenance Ratio in $ Target: 66% or greater of all labor dollars spent on preventative maintenance per quarter in a year Total planned maintenance cost/ Total maintenance costMeasurement Method 72 71 63 77 70 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 39 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 in a year Measurement Method 59 97.1 94 97 91 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 YTD Target 2014 2015 2016 2017 40Planned Wastewater Maintenance Ratio in $ Target: 77% or greater of all labor dollars spent on preventative maintenance per quarter in a year Total planned maintenance cost/Total maintenance costMeasurement Method 88.95 89.75 92.06 91.38 90.64 50 55 60 65 70 75 80 85 90 95 100 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 41Direct Cost of Treatment Per MGD Target: No more than $1050 per MG spent on wastewater treatment per quarter in a single year (Targets each quarter will vary based on high and low demand times) Total O&M costs directly attributable to sewer treatment/ Total volume in MGMeasurement Method 769.4 0 1675.53 875.2 1095.7 0 200 400 600 800 1000 1200 1400 1600 1800 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 42O&M Cost Per MG Processed of Wastewater Target: No more than $1925 per MG spent on O&M for wastewater treatment in a year (Targets each quarter will vary based on high and low demand times) Total O&M cost/ MGP FYTD O&M Cost = (Power Cost) + (Staff Cost) + (Equipment Cost) / FYTP MGP Measurement Method 1098.14 0 2419.59 1151.95 1482.6 0 500 1000 1500 2000 2500 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 43Leak Detection Program Target: Perform leak detection on 20%of potable distribution system %of potable distribution pipelines surveyed. The calculation is miles of pipe surveyed divided by total miles of pipe times 100. 33 33 0 10 20 30 40 50 60 70 80 90 100 Q3 YTD Target 2015 2016 2017 Measurement Method *FY15 –FY16 results are 20% 44Percent of PMs Completed –Fleet Maintenance Target: No less than 90%of scheduled PM’s completed per quarter in a year # of PM’s completed/ # of PM’s scheduled to be completed Measurement Method 100 100 100 100 100 0 20 40 60 80 100 Q1 Q2 Q3 Q4 Annual Target 2015 2016 2017 *FY16 &FY17 results are 100% 45Percent of PMs Completed –Reclamation Plant Target: No less than 90%of scheduled PM’s completed per quarter in a year # of PM’s completed/ # of PM’s scheduled to be completed in a reporting period Measurement Method 97 98 100 100 99 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 YTD Target 2014 2015 2016 2017 46Percent of PMs Completed –Pump/Electric Section Target: No less than 90%of scheduled PM’s completed per quarter in a year # of PM’s completed/ # of PM’s scheduled to be completed in a reporting periodMeasurement Method 100 100 100 100 100 75 80 85 90 95 100 105 110 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 *FY15 –FY17 results are 100% 47System Valve Exercising Program Target: Exercise 770 valves per quarter or 3080 valves by the end of fiscal year Actual number of valves exercised in the reporting periodMeasurement Method 793 787 814 834 3228 0 1000 2000 3000 4000 5000 6000 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 48Potable Water Distribution System Integrity Target: No more than 16 leaks and breaks per 100 miles of distribution piping in a year 100 (annual total number of leaks + annual total number of breaks) / total miles of distribution pipingMeasurement Method 2.4 2.97 3.55 1.34 10.28 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 49Potable Water Compliance Rate (AWWA) Target: No less than 100%of all health related drinking water standards each quarter in a year 100 (# of days the primary health regulations are met)/ # of days in the reporting periodMeasurement Method 100 100 100 100 100 50 60 70 80 90 100 110 Q1 Q2 Q3 Q4 YTD Target AWWA 2015 2016 2017 AW W A B e n c h m a r k *FY15 –FY17 results are 100% 50Collection System Integrity (AWWA) Target: No more than 3.6 system failures per 100 miles of collection system pipeline in a year 100 (total number of collection system failures during the year) / total miles of collection system pipingMeasurement Method 0 1 0 0 1 0 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 YTD Target AWWA 2015 2016 2017 *FY15 –FY16 had 0 system failures AW W A B e n c h m a r k 51Recycled Water System Integrity Target: No more than 6.6 leaks or breaks per 100 miles of recycled distribution system in a year (100 x # of leaks or breaks)/ # of miles of distribution systemMeasurement Method 0 0 0 0.9 0.9 0 1 2 3 4 5 6 7 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 52Sewer Overflow Rate (AWWA) Target: 0 overflows per quarter in a year 100 (total number of sewer overflows during the reporting period) / total miles of pipe in the sewage collection systemMeasurement Method 0 1 0 0 1 0 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 YTD Target AWWA 2015 2016 2017 AW W A B e n c h m a r k *FY 15 –FY 16 results are 0 overflows 53Emergency Facility Power Testing Target: 100%of the District’s facilities tested per year (The District currently has 34 powered ready facilities) Number of facilities tested / total facilities Measurement Method 29 47 79 105 105 0 20 40 60 80 100 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 54Tank Inspection and Cleaning Annual Target: Clean and inspect 8 tanks or more per year Number of tanks cleaned and inspectedMeasurement Method 4 3 1 0 8 0 2 4 6 8 10 12 14 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 55Main Flushing and Fire Hydrant Maintenance Target: 215 or more mains flushed and fire hydrants maintained in a single year (The target of 215 is comprised of 165 hydrants and 50 mains) Number of mains flushed and hydrants maintainedMeasurement Method 11 45 256 355 355 0 100 200 300 400 500 600 700 800 900 1000 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 56Critical Valve Exercising Target: Exercise 631 identified critical valves in a year Number of critical valves exercised in a reporting periodMeasurement Method 585 631 631 631 631 0 100 200 300 400 500 600 700 800 900 1000 Q1 Q2 Q3 Q4 YTD Target 2015 2016 2017 57 Questions?