STANDARD PRACTICES & POLICIES

STANDARD PRACTICES & POLICIES Published March 2022

Standard Practices and Policies

Section 11 Padre Dam Municipal Water District Page 1 of 98

SECTION 11 EMPLOYMENT PRACTICES AND POLICIES

INDEX Page 11.1 POLICY ........................................................................................................................................... 7

11.2 DISTRICT OBJECTIVES .................................................................................................................... 7

11.3 EQUAL OPPORTUNITY POLICY ...................................................................................................... 8

11.4 COMPETITIVE PRICING OF SERVICES ............................................................................................ 8

11.4.1 Contracting Out .......................................................................................................................... 8

11.5 DISTRICT MANAGEMENT RIGHTS ................................................................................................. 9

11.6 EMPLOYEES CONDUCT ................................................................................................................. 9

11.7 EMPLOYMENT PRACTICES .......................................................................................................... 11

11.7.1 Loyalty Oath ........................................................................................................................ 11

11.7.2 Physical Examination .................................................................................................................. 11

11.7.3 Probationary, Permanent, Staff Support, Temporary, Seasonal and Limited Term Employees ....

........................................................................................................................ 11

11.7.4 Work Scheduling, Alternate Work Schedules and Teleworking ................................................. 14

11.7.4.1 Scheduled Night Work ................................................................................................................ 15

11.7.4.2 Premium Pay ........................................................................................................................ 15

11.7.4.3 Alternate Work Schedules and Telework ................................................................................... 15

11.7.5 Lead Pay ........................................................................................................................ 20

11.7.6 Meal and Break Periods .............................................................................................................. 20

11.7.7 Absence and Tardiness ............................................................................................................... 22

11.7.8 Uniforms and Coveralls............................................................................................................... 22

11.7.9 Care of Clothing ........................................................................................................................ 23



11.7.10 Shorts and T-Shirts ...................................................................................................................... 23

11.7.11 Contribution to PERS .................................................................................................................. 23

11.7.12 Employee Travel/Conference Expense ....................................................................................... 23

11.7.12.1 Meetings and Conferences ......................................................................................................... 24

11.7.12.2 Philanthropic and Community Organizations ............................................................................ 24

11.7.12.3 Hotel .............................................................................................................................. 24

11.7.12.4 Travel .............................................................................................................................. 25

11.7.12.5 Expense Report .......................................................................................................................... 27

11.7.13 District Vehicle Commuter Use................................................................................................... 27

11.7.14 District Tools and Facilities ......................................................................................................... 28

11.7.15 Employee Recognition Program ................................................................................................. 28

11.7.16 Disciplinary Action ...................................................................................................................... 28

11.7.17 Disciplinary Procedures for Permanent Employees ................................................................... 29

11.7.18 Layoff or Reduction of Force ...................................................................................................... 32

11.8 WAGES AND SALARY .......................................................................................................... 32

11.8.1 Paydays ........................................................................................................................ 32

11.8.2 Salary Adjustments ..................................................................................................................... 32

11.8.3 Y-Rating Defined ........................................................................................................................ 32

11.8.4 Payroll Deduction ....................................................................................................................... 33

11.8.5 Salary Verification ....................................................................................................................... 33

11.8.6 Performance Rating/Salary Review ............................................................................................ 33

11.8.7 Compensation Policy .................................................................................................................. 34

11.8.8 Management Team Salaries ....................................................................................................... 34

11.8.9 Reclassification ........................................................................................................................ 34



11.8.10 Filling Vacancies ........................................................................................................................ 35

11.8.11 Promotions ........................................................................................................................ 35

11.8.12 After-Hour Duty Personnel and Policy Statement ...................................................................... 35

11.8.13 Overtime and Compensatory Time Off ...................................................................................... 37

11.8.14 Call Back Policy ........................................................................................................................ 39

11.9 INSURANCE ................................................................................................................................. 40

11.9.1 Group Health Insurance .............................................................................................................. 40

11.9.2 Waiving Health Coverage ........................................................................................................... 41

11.9.3 Group Life Insurance................................................................................................................... 41

11.9.4 Disability Insurance ..................................................................................................................... 42

11.9.5 Workers' Compensation Insurance ............................................................................................ 42

11.9.6 Unemployment Insurance .......................................................................................................... 43

11.9.7 Cancer/Accident Insurance ......................................................................................................... 43

11.9.8 Dental Insurance ........................................................................................................................ 43

11.9.9 Section 125 Reimbursement Plan .............................................................................................. 43

11.10 SICK LEAVE .................................................................................................................................. 43

11.10.1 Accumulation ........................................................................................................................ 43

11.10.2 Uses ........................................................................................................................ 44

11.11 VACATION ................................................................................................................................... 45

11.11.1 Accumulation for Non-Exempt Management and Confidential Employees .............................. 45

11.11.2 Accumulation for Management Team Members and Exempt Management and Confidential

Employees ........................................................................................................................ 46

11.11.3 Accumulation for All Other Employees ...................................................................................... 46

11.11.4 General Guidelines for Vacation Accrual/Usage ........................................................................ 47



11.11.5 Accelerated Vacation Option for Recruitment/Retention ......................................................... 47

11.12 HOLIDAYS ................................................................................................................................... 47

11.12.1 Vacation in Lieu of Holiday. ........................................................................................................ 48

11.13 LEAVE OF ABSENCE ..................................................................................................................... 48

11.13.1 Death in Family ........................................................................................................................ 48

11.13.2 Jury, Military, Civic Duty ............................................................................................................. 49

11.13.3 Medical ........................................................................................................................ 50

11.13.4 Family Care Leave ....................................................................................................................... 51

11.13.5 Pregnancy Disability Leave ......................................................................................................... 55

11.13.6 Emergency ........................................................................................................................ 56

11.13.7 Miscellaneous Leave ................................................................................................................... 57

11.13.8 Donation of Unused Sick Leave/Vacation .................................................................................. 57

11.13.9 Domestic Violence, Sexual Assault and Stalking Leave .............................................................. 58

11.13.10 Modified Work Due to Illness or Injury ...................................................................................... 58

11.14 RETIREMENT ............................................................................................................................... 60

11.14.1 General ........................................................................................................................ 60

11.14.2 Public Employees' Retirement System (PERS) ............................................................................ 60

11.14.3 Federal Social Security ................................................................................................................ 62

11.14.4 Insurance Benefits for Retirees .................................................................................................. 62

11.14.5 Insurance Benefits for Spouses or Domestic Partners of Retired Employees ............................ 65

11.14.6 Insurance Benefits for Dependents of Employees (Tier 2 & 3) .................................................. 65

11.14.7 Insurance Benefits for Out of Area Retirees ............................................................................... 66

11.14.8 Voluntary Elimination of Retiree Coverage ................................................................................ 66

11.14.9 Other Benefits ........................................................................................................................ 66



11.15 Vehicle Safety ............................................................................................................................. 66

11.15.1 District Vehicles ........................................................................................................................ 66

11.15.2 Accident Prevention ................................................................................................................... 70

11.15.3 Personal Vehicles for District Business ....................................................................................... 70

11.15.4 Accident Investigation and Procedure........................................................................................ 70

11.16 SKILL ENHANCEMENT & EDUCATION ASSISTANCE PROGRAM .................................................. 71

11.16.1 Education Assistance Program ................................................................................................... 72

11.16.2 Certification Bonuses .................................................................................................................. 73

11.17 EMPLOYER-EMPLOYEE RELATIONS ............................................................................................. 75

11.19 AUTOMATIC DEPOSIT AND SAVINGS PLAN ............................................................................... 75

11.20 EMPLOYEES DEFERRED COMPENSATION PLAN ......................................................................... 76

11.21 SAFETY SHOE ALLOWANCE ......................................................................................................... 76

11.22 EMPLOYEE BENEFIT GUIDE (BIG) ................................................................................................ 76

11.23 DISTRICT “NO SMOKING FOR GOOD HEALTH” POLICY............................................................... 76

11.24 EMPLOYEE ASSISTANCE PROGRAM ............................................................................................ 76

11.25 PERSONNEL FILES........................................................................................................................ 77

11.26 DRUG & ALCOHOL POLICY .......................................................................................................... 77

11.27 PADRE DAM COMPUTER SYSTEMS ............................................................................................. 85

11.27.1 Definitions ........................................................................................................................ 85

11.27.2 Policy ........................................................................................................................ 86

11.27.3 Scope ........................................................................................................................ 86

11.27.4 Information System Resource Use ............................................................................................. 86

11.27.5 Ownership and Privacy ............................................................................................................... 87

11.27.6 Unacceptable Use ....................................................................................................................... 87



11.27.7 Social Media ........................................................................................................................ 89

11.27.8 Internet Usage ........................................................................................................................ 90

11.27.9 Controlling User ID...................................................................................................................... 90

11.27.10 Electronic Mail/Communications ............................................................................................... 91

11.27.11 Software Use ........................................................................................................................ 91

11.27.12 Personal Electronic Equipment ................................................................................................... 92

11.27.13 Remote Access ........................................................................................................................ 92

11.27.14 Anti-Virus Scans ........................................................................................................................ 93

11.27.15 SCADA ........................................................................................................................ 93

11.27.16 Compliance Review..................................................................................................................... 93

11.28 PADRE DAM OWNED CELLULAR MOBILE DEVICES ..................................................................... 94

11.28.1 Policy ........................................................................................................................ 94

11.28.2 Ownership and Access ................................................................................................................ 94

11.28.3 Employee Use of Cell Phones ..................................................................................................... 94

11.28.4 Personal Use of Mobile Cellular Devices .................................................................................... 94

11.28.5 Safety ........................................................................................................................ 95

11.29 WHISTLEBLOWER POLICY ........................................................................................................... 96

11.29.1 Whistleblowing and Investigations ............................................................................................. 96

11.29.2 Whistleblower Protection ........................................................................................................... 96



SECTION 11 EMPLOYMENT PRACTICES AND POLICIES 11.1 POLICY This section of our Standard Practices and Policies Manual sets forth rules and regulations governing employment, employee benefits, Padre Dam objectives and personnel conduct. Padre Dam's governing Board is responsible for establishing these employment guidelines and benefits and only upon their formal action can a change or addition be incorporated. 11.2 DISTRICT OBJECTIVES Padre Dam has responsibilities to its customers, to its employees, to the voters of our service area, and to all other segments of the general public. Our overall objective is to operate Padre Dam in a manner that will satisfy those responsibilities fairly and equitably. Specific objectives are as follows: • To supply the highest quality of water/recycled water available and best service possible at fair and

reasonable rates. • To provide and maintain a wastewater collection and transmission system and afford the best service

possible at a fair and reasonable cost. • To operate Santee Lakes Recreation Preserve in a manner that enhances our community through the

delivery of exceptional recreation opportunities, the restoration and protection of environmental assets, and the re-investment in our park and campground for the benefit of the public.

• To maintain the highest degree of customer and public relations by extending to everyone the

courtesy and consideration that we, ourselves, would expect and appreciate. • To conduct Padre Dam operations as efficiently as possible in order to maintain a sound financial

structure on which we can grow and improve services and rates to our customers. • To provide an enjoyable work environment that will promote a spirit of friendliness and cooperation

among all employees. • If practicable, to first satisfy job openings from within and provide training opportunities to qualify

employees for promotion. • To assure employees that individual merit will be recognized and rewarded. • To protect Padre Dam property, buildings, operational facilities and equipment and establish sound

maintenance procedures to ensure their continued operation and usefulness. • To ensure equal employment opportunities for all employees and maintain a fair and equitable level

of compensation for services rendered. • To conduct our business in accordance with applicable laws and regulations and continually strive to

project a proper District image in the eyes of the public which we serve.



11.3 EQUAL OPPORTUNITY POLICY It is the policy of Padre Dam to: A. Recruit, hire, and promote persons for and to all job classifications without regard to race (including

traits historically associated with race such as hair texture and protective hairstyles –braids, locks and twists, religion, creed (including religious dress and grooming), color, national origin, ancestry, citizenship, sex (including pregnancy, childbirth, breastfeeding, and medical conditions related to pregnancy, childbirth or breastfeeding), sexual orientation, gender, gender identity, gender expression, religion, age (40 years of age or older), genetic information, mental or physical disability (whether perceived or actual), citizenship status, uniformed service member status, marital status, medical conditions, sexual orientation or any other status protected by federal, state or local law.

B. Hire, promote, and transfer relatives of Padre Dam employees, subject to the provisions of Section

16.9. C. Base decisions on employment upon an individual's qualifications for the position being filled. D. Make promotion decisions on the individual's qualifications as related to the requirements of the

position for which he or she is being considered. E. Ensure, to the extent required by law, that all other personnel actions such as compensation,

benefits, transfers, layoffs, returns from layoff, Padre Dam-sponsored training, education, tuition assistance, and social and recreation programs will be administered without regard to race, color, national origin, ancestry, sex (including pregnancy, childbirth, breastfeeding, and medical conditions related to pregnancy, childbirth or breastfeeding), gender, gender identity, and gender expression, religion (including religious dress and grooming), age (40 years of age or older), genetic information, mental or physical disability (whether perceived or actual), citizenship status, uniformed service member status, marital status, medical conditions, sexual orientation or any other status protected by federal, state or local law.

F. Recognize that all employees and all applicants for employment are fellow human beings entitled to

equal consideration and treatment in every respect. G. Continue to sustain and develop a system that promotes the maintenance and application of these

standards. (See Section 16, Equal Employment Opportunity Program.)

11.4 COMPETITIVE PRICING OF SERVICES Padre Dam seeks to be the “benchmark” in providing cost-effective and competitive services to its customers. Padre Dam and its employees agree to work together to achieve competitive pricing of services. 11.4.1 Contracting Out Consistent with Padre Dam’s Pipeline philosophy, each department shall be responsible for developing, through the Lateral of the Pipeline, and with a report to the Basin oversight committee, appropriate contracting out opportunities that help to achieve cost effective and competitive services.



11.5 DISTRICT MANAGEMENT RIGHTS It is understood and agreed that Padre Dam possesses the sole right and authority to operate and direct the employees of Padre Dam and its various departments in all aspects, including, but not limited to, all rights and authority exercised by Padre Dam except as modified in any Memorandum of Understanding entered into with any recognized employee bargaining unit. These rights include, but are not limited to: A. The right to determine its mission, policies, and to set forth all standards of service offered to the

public; B. To plan, direct, control and determine the operations or services to be conducted by employees of

Padre Dam; C. To determine the methods, means, number of personnel needed to carry out Padre Dam's mission; D. To direct the working forces; E. To hire and assign or to transfer employees within the departments; F. To promote, suspend, discipline or discharge consistent with the terms of this Agreement; G. To layoff or relieve employees due to lack of work or funds or for other legitimate reasons; H. To make, publish, and enforce rules and regulations for matters not within the scope of, or consistent

with, the meet and confer process; I. To introduce new or improved methods, equipment or facilities; J. To contract out for goods and for services, subject to meet and confer where legally necessary; K. To take any and all actions as may be necessary to carry out the mission of Padre Dam in situations

of civil emergency as may be declared by the Board of Directors or the General Manager or his designee; provided that no right enumerated herein shall be exercised or enforced in a manner contrary to or inconsistent with the provisions of any Memorandum of Understanding.

The Board of Directors has the sole authority to determine the purpose and mission of Padre Dam and the amount of budget to be adopted thereto.

11.6 EMPLOYEES CONDUCT A. It is expected that employees be punctual with regard to hours of work and business appointments. B. A high degree of personal cleanliness and appearance is required of all employees. Uniforms are

mandatory in the Plant, Park and Operations Departments. Office personnel are not required to conform to a specific dress code, but rather to maintain a type of dress that will be in good taste, project a good public image, and be appropriate for the assigned work area. All facial hair will be kept neat and trimmed.



C. Employees shall not use, carry or transport alcoholic beverages, during working hours or on District

premises, except while off duty at Park grounds. Employees shall not report for work under the influence of alcoholic beverages.

The illegal use, sale, or possession of narcotics, drugs, or controlled substances while on the job or on District property is a dischargeable offense. In addition, any illegal substances will be turned over to the appropriate law enforcement agency and may result in criminal prosecution.

Off-the-job illegal drug use could adversely affect an employee's job performance or could jeopardize the safety of other employees, the public, District equipment, and is proper cause for administrative or disciplinary action up to, and including termination of employment.

Employees who are convicted of off-the-job drug activity may be considered to be in violation of this policy. In deciding what action to take, management will take into consideration the nature of the charges, the employee's present job assignment, the employee's record with Padre Dam and other factors relative to the impact of the employee's arrest upon the conduct of District business.

Employees taking a prescribed controlled substance which may affect their ability to safely perform their position should report the use of the controlled substance to their supervisor or management if their position is considered a safety sensitive position as listed in Section 11.26.2. The use of controlled substances as part of a prescribed medical treatment program is naturally not grounds for disciplinary action, although it is essential for Padre Dam to know such use is occurring to ensure the safety of employees and members of the public.

D. An employee's personal affairs and time away from the job are his/her own business, and Padre Dam

will not interfere. Only when outside interests and, in particular, part-time employment, prevents an employee from satisfactorily performing his/her job, will Padre Dam become involved. See Section 20.9 for additional details.

E. Employees should discourage personal telephone calls and visitors during work hours and should

refrain from having personal mail addressed in the care of Padre Dam. F. Insubordination, immoral or indecent conduct, theft, or malicious damage will be among those

causes considered adequate for dismissal. G. Employees shall not accept gratuities or tips offered for Padre Dam services rendered a customer or

prospective customer. See Section 20.5.10 for additional details. H. Transportation in Padre Dam vehicles of persons other than directors, officers, employees, agents of

Padre Dam or authorized guests is prohibited. I. Employees should refrain from entering into any dispute with the public. Opinions or comments

regarding Padre Dam liability in any matter should not be discussed by employees. Management should be advised in all instances concerning customer relation problems that cannot be settled satisfactorily.



J. It is of utmost importance that Padre Dam has each employee's current home address and telephone

number as there may be occasions when it is imperative to reach employees at home. It is also important that Padre Dam be able to contact someone in the event of an accident or illness while at work. Employees are requested to notify their supervisor of any change of address or telephone number or forward it directly to Human Resources.

11.7 EMPLOYMENT PRACTICES 11.7.1 Loyalty Oath Each new employee is required to sign a loyalty oath prior to employment. (California Constitution Article 20, Section 3; Government Code Sections 3100-3109.) 11.7.2 Physical Examination Successful applicants for employment are required to successfully pass a pre-employment drug screening prior to commencing employment. The examination will be at Padre Dam expense by a physician designated by Padre Dam. 11.7.3 Probationary, Permanent, Staff Support, Temporary, Seasonal and Limited Term

Employees A. Probationary Employees.

Employment with Padre Dam is on a probationary basis for the first twelve months of employment. During the probationary period of employment, an employee serves at the pleasure of Padre Dam and may be discharged or suspended for any reason or cause.

B. Permanent, Full-Time Employees.

A permanent full-time employee is an employee who has successfully completed the probationary period, has received a satisfactory performance review by his or her supervisor and works a minimum of 40 hours per work week. A permanent full-time employee shall be subject to disciplinary action under the procedures set forth in Section 11.7.16 hereof. In addition, a permanent full-time employee is entitled to all benefits as described in the applicable MOU and Standard Practices and Policies.

C. Permanent, Part-Time Employees.

A permanent part-time employee is an employee who has successfully completed the probationary period, has received a satisfactory performance review by his or her supervisor and works less than 40 hours per work week. A permanent part-time employee shall be subject to disciplinary action under the procedures set forth in Section 11.7.16 hereof. Permanent, part-time employees are not entitled to insurance benefits; except when required under the Affordable Care Act. In addition; permanent, part-time employees who work more than 999 hours in a fiscal year will be enrolled in CalPERS and subject to employee contributions as described in Section 11.14.2(G).



D. Staff Support. Staff Support is a permanent, part-time hourly position that works a regular schedule. The position is non-exempt (entitled to overtime pay) and paid at least the minimum wage in effect at the time. Staff Support employees shall be entitled to the disciplinary procedures set forth in Section 11.7.16 hereof. The position may be paid higher as the duties and responsibilities require. Those people employed in this position are not doing the full range of duties of a regular full-time classification; they are performing one or two specific tasks that do not warrant full-time employees. Staff Support are held to the same Padre Dam standards and values as full-time employees.

Consistent with Padre Dam’s Workforce Partnership, each department shall be responsible for developing, through the lateral process, along with labor or management department representatives, request for Staff Support, which shall be considered in the annual budget process. Department PDEA/MMCA representatives shall be notified of the need to hire Staff Support.

E. Temporary/Seasonal Employees. The use of temporary employees is recognized as a method of economically meeting the short term workplace needs of Padre Dam. “Temporaries” shall be utilized in cases where the work is limited, seasonal in nature, or a special project, where the need for a particular position is not anticipated to be permanent. The justification to hire temporaries shall be developed in a “work-analysis” that documents the work to be done, the skills needed, and the anticipated duration of employment. Temporary and seasonal employees are invited to attend all District functions that occur during their assignment and may receive, at the department head’s discretion and depending on which position they hold, a reduced reimbursement for safety shoes as described in the PDEA MOU, Article 20.2, “Safety Clothing and Equipment.” Other than as previously stated, temporary and seasonal employees are not entitled to Padre Dam benefits; except when required under the Affordable Care Act or other law.

Consistent with Padre Dam’s Workforce Partnership, each department shall be responsible for developing, through the lateral process and labor or management department representatives, requests for temporary help, which shall be considered in the annual budget process. Department PDEA representatives shall be notified of the need to use temporary help. Sources for temporary employees may include but are not limited to summer interns, summer youths, disability employment services, and community service labor. Temporary employees shall be held to the same District standards and values as permanent employees.

In obtaining temporary/seasonal employees, staff shall: (1) conduct a recruitment; OR (2) obtain candidates from a local temporary agency; OR (3) contact previous applicants for employment to ascertain any desire to work on a temporary basis for Padre Dam.

If the full-time temporary employee receives a full-time permanent position, years of service for all applicable MOU benefits will be accrued based on the original hire date for the Temporary Position.

F. Limited Term Employees

A limited term employee is similar to a temporary employee in that there is a specified work-load that justifies an employee be hired to assist with that work-load and that the term of employment is specified in advance of the hire being made. The justification to hire Limited Term Employees shall be developed in a “work-analysis” that documents the work to be done, the specific skills needed, and the term of employment. Limited Term Employees are entitled to all Padre Dam benefits as specified in the MOU.



Consistent with Padre Dam’s Workforce Partnership, each department shall be responsible for developing, through the link pin committee’s process and labor or management department representatives, requests for Limited Term employees and such employment shall be considered in the annual budget process. Department PDEA representatives shall be notified of the need to use Limited Term Employees. All needs to limited term employees will go through the full recruitment process. Limited Term employees shall be held to the same District standards and values as permanent employees.

At the end of the specified term of employment, if staff determines additional temporary assistance is needed, staff may extend the Limited Term Assignment by up to 6 months making the maximum duration of the limited term position no more than 30 months. If the workload justifies the need, the position shall be filled with a permanent full-time employee, prior to the expiration of the 6-month extension. A minimum of 2 months prior to the expiration of the term, Padre Dam staff will communicate to the Limited Term employee and the PDEA whether or not the position is to be filled with a permanent position. If the full-time Limited Term employee receives a full-time permanent position; years of service for all applicable MOU benefits will be accrued based on the original hire date for the Limited Term Position.

G. East County AWP Project Funded Employees.

As part of the East County Advanced Water Purification Project (AWP), Padre Dam is entering into an Administrative and Operating Services Agreement (Agreement) with the East County CAWP Joint Powers Authority (JPA). Padre Dam, as the contracted Administrator and Operator, will provide management, administrative, operations, maintenance and similar or related services for JPA owned East County AWPAWP facilities. The Administrator and Operator functions will require Padre Dam to hire additional personnel for the development period of the project, or until the Agreement to provide those services is otherwise terminated or not extended. Once the Agreement is terminated or expires, Padre Dam will no longer need the additional personnel and will no longer have the funding to support additional personnel. East County AWP Project Funded Employees will be specifically hired as employees for the duration of time that the District is providing Administrative and Operating Services, but those employees may perform any work for the District within their employment classification, not just work under the Agreement. East County AWP Project Funded Employees will be provided the same rights and benefits as other Permanent Padre Dam Employees, and be hired into the same classifications with the same salaries, except with respect to termination of employment if Padre Dam ceases to provide Administrator or Operator services to East County AWP the JPA or if the terms of providing those services is substantially altered in a way that reduces the needed staff. If Padre Dam ceases to provide Administrator or Operator services to the JPA or if the terms of providing those services is altered in a way that reduces the staff needed or the funding for the staff, East Count AWP Project Funded Employees’ employment will end based on the change in funding, and those employees will not be entitled to the processes or procedures described in Article 10 Discipline or Article 11 Personnel Reduction of the MOU. Employees will be provided at least two weeks’ notice. Employees will not be entitled to severance pay or other continued pay or benefits, except as required by law or plan documents. If the Agreement expires or is terminated, or if the terms of providing those services is altered in a way that reduces the staff needed or the funding for the staff, District Management in its sole discretion will determine which East County AWP Project Funded Employees’ employment will be terminated and which employees are required to be retained based on the needs of the remaining functions to be performed. No further negotiations will be required if the District determines based on the conditions described above that East County AWP Project Employees employment will be terminated. Nothing in this section alters



the procedures for discipline or layoff of other employees, or for East County AWP Project Funded Employees, except as described above.

11.7.4 Work Scheduling, Alternate Work Schedules and Teleworking Employees may request a deviation from their assigned work hours to accommodate the employee’s personal preference(s), such as, accommodating the employee’s childcare, physical or mental fitness, educational or other interests. Such employee request shall be made in writing, and approved in advance by the appropriate Department Head. Such request shall not be unreasonably denied however not all requests may be approved as service to District customer; both internal and external is the number one job requirement. A Flexible Schedule may be approved. This is subject to Department Head discretion and the operational needs of the Department. If approved, employees may be allowed to flex from the regular schedule on an as-needed basis to allow for appointments, etc. Supervisors that allow employees to flex their time are responsible for ensuring that the employee works forty (40) hours per workweek or utilizes their accrued leave to make up the difference. In addition, employees should not be permitted to flex their schedule if it will result in overtime liability. If extraordinary situations arise such as emergencies or unpredictable circumstances, Department Heads or the General Manager may assign work hours, which are not fixed and consistent. Such authority shall not be unreasonably exercised. Department heads shall make all reasonable efforts to minimize the use of work hours which are not fixed and consistent. Employees are paid for all hours worked, to the nearest 1/10th of one hour. Therefore, an employee’s work hours will be rounded either up or down to the nearest 1/10 of an hour. Based on the below chart, employees are required to enter their actual hours worked, down to 1/10 of an hour, in decimal format.

Guidelines for Time Sheet Entry

Minutes Time Sheet Entry 10ths of an Hour

0 - 2 .0 3 - 8 .1

9 - 14 .2 15 - 20 .3 21 - 26 .4 27 - 32 .5 33 - 38 .6 39 - 44 .7 45 - 50 .8 52 - 56 .9

5 7 - 60 1.0



11.7.4.1 Scheduled Night Work Employees will be notified one week prior to the date of the scheduled night work. If one week prior notice is not given, the night work will be considered overtime and Article 15 of the PDEA MOU will apply.

When normal work schedules are changed from a day shift to scheduled night work to accommodate restrictions placed on Padre Dam by other agencies, contractors, etc., employees working the night work will be given 10 hours off before reporting back for duty on their normal day shift schedule.

11.7.4.2 Premium Pay

A pay premium applies if more than 50 percent of the scheduled work hours worked by an employee, in any 24-hour period, occur between the hours of 3:01 pm and 7:00 am when the hours are scheduled in advance by the employee’s supervisor. The premium shall not apply to hours worked which are not scheduled in advance, such as an extension of the employee’s shift due to an emergency or other unscheduled situation and a “call-back” as defined in Section 11.8.14. The premium for all hours worked between 3:01 pm and 12:00 pm shall be 3 percent above the employee’s standard rate of pay as defined in the current Salary Resolution. The premium for all hours worked between 12:01 pm and 7:00 am shall be 5 percent above the employee’s standard rate of pay as defined in the current Salary Resolution. The applicable overtime calculation shall be applied to any premium pay as premium pay is defined in this section.

11.7.4.3 Alternate Work Schedules and Telework Padre Dam provides the following written guidelines and requirements for Alternate Work Schedules (AWS) and Telework Arrangements (Alternate Work Arrangements). These alternate work arrangements are designed to meet the operational needs of departments and create a work-life balance for full-time employees. They are not intended to change operation hours, nor do they alter the responsibility nor diminish the authority of the Department Head and/or General Manager to establish and adjust work schedules. Instead, these alternate work schedules are intended to serve the following purposes: 1. To give Department Head’s flexibility in scheduling employees to meet Operational needs. 2. To improve recruitment and retention by providing a flexible schedule for employees. 3. To improve employee morale, reduce absenteeism, tardiness, and turnover by allowing flexible work

schedules so employees can better address changing needs and demands of life outside of work.

The General Manager is authorized to designate other workweeks and working hours for employees when in his/her opinion, the best interest of the District may be served by such adjustment of the standard work periods and hours. The General Manager may change or discontinue this policy at any time at his/her sole discretion. Alternate work schedules and teleworking are a privilege and not a right or entitlement. The General Manager reserves the right to change, amend, or discontinue any alternate work arrangement at any time for any reason.



Department Heads will consider employee requests for AWS and teleworking, and are responsible for determining which, if any assignments in the department lend themselves to an alternate work arrangement based on department operational needs. The duties, obligations, responsibilities, and conditions of an employee’s job remain unchanged even if the employee is working under an alternate work arrangement. This includes participating employee’s salary, retirement, benefits and insurance coverage. Following approval by a department head of an AWS or teleworking arrangement, Human Resources must review all requests to ensure conformance to this Policy and applicable memorandum of understandings before it will be implemented. The General Manager will make all final approval decisions for alternate work arrangements.

This policy is intended to provide a means for Fair Labor Standards Act (FLSA) exempt and non-exempt employees to have alternate work arrangements that results in no adverse impact to the work of the District.

Definitions

• Fair Labor Standards Act or FLSA – a federal law that sets minimum wage, overtime pay, equal pay, recordkeeping and child labor standards for employees who are covered by the Act.

• FLSA exempt employees – based on employee occupations, duties and criteria set for by FLSA, which are exempt from overtime compensation.

• FLSA non-exempt employees – based on employee occupations, duties, and criteria set for by FLSA, which are subject to the FLSA and payment of overtime.

• 9/80 alternate work schedule A– will consist of eight (8) work days of nine (9) hours and one work day of eight (8) hours for a total of 80 hours during a two-week pay period and forty (40) hours during the regular workweek. The eight (8) hour workday must be on the same day of the week as the employee’s regularly scheduled alternating day off. Friday is the standard day to be utilized for the eight (8) hour day. The 9/80 schedule is consistent and repeats every two weeks. The regular workweek for the 9/80 schedule begins at 11:01am on Friday and ends on the following Friday four hours into the 8 hour work day.

• 9/80 alternate work schedule B – will consist of eight (8) work days of nine(9) hours and two (2) work days of four (4) hours for a total of 80 hours during a two-week period, and forty (40) hours during the regular workweek. The two (2) four (4) hour workdays must be on the same day of the week. The 9/80 schedule is consistent and repeats every two weeks. For this 9/80 schedule, the regular workweek will apply.

• 4/10 schedule – will consist of four (4) ten (10) hour days per workweek and one regular day off per workweek. The regular day off shall be established ahead of time and should not change from week to week.

• Regular Schedule – Employees on a regular schedule work Monday through Friday from 8:00 am to 5:00 pm with an hour lunch break.

• Regular Work Week – The regular Padre Dam MWD workweek begins on Saturday and ends the following Friday.

• Teleworking – Employee performs part of their usual job duties from home, making use of the internet, email, telephone, and other work tools up to a maximum of two (2) set days a week. Employees in a teleworking arrangement will work with their supervisor to set telework days and continuous work hours but must be available during business hours to provide service to internal or external customers.



Eligibility AWS and/or Teleworking is not suitable for all employees and/or positions, the General Manager or his/her designee has the sole discretion to determine the employees and the positions that may participate in these work arrangements utilizing criteria that includes but is not limited to:

• Employee’s overall rating on their last performance evaluation must be a “meets” or “exceeds” expectations;

• Whether the employee’s job duties lend itself to the particular work schedule requested; • The ability to measure an employee’s work performance while under an alternate work

arrangement; • Whether or not the employee has the ability to work independently, manage work time, organize

and prioritize work, exercise good judgment, stay connected, and can communicate in a thorough and timely manner.

• The employee’s supervisory responsibilities; • The employee’s need for supervision; • Employees authorized to perform work under an alternate schedule must meet the same standards

of performance and professionalism expected of District employees in terms of job responsibilities, work product, timeliness of assignments and contact with other employees and members of the public.

Department Heads will forward requests to the General Manager for approval on a case-by-case basis. The District has no obligation to allow one employee to participate in an alternate work schedule or telework arrangement merely because another employee who performs the same or similar job duties has been approved to participate. The General Manager may or may not disclose the specific criteria used to determine approval or denial of a request.

Procedures for Alternate Work Schedule (AWS)

1. Employee must complete an AWS Request Form. Any approval of an AWS, including the selection of the work days and times as well as the regular day off, will be based on the District’s business needs and requires approval from the employee’s supervisor, Department Head, Human Resources and the General Manager. The Department Head is also responsible for ensuring that the AWS will not create the need for additional overtime, out of class pay for other employees, or the need to add additional full-time or part-time staff to cover the workload within the Department. Department Heads may not approve requests that have more than 50% of their staff out of the office on the same day.

2. It is expected that while working an AWS, an employee will be available to the department via telephone and/or email during all designated work hours. Any periods of unavailability must be approved in advance by management in accordance with current leave policies. Employees must notify their supervisor immediately if they are unable to perform work assignments due to equipment failure or other unforeseen circumstances.

3. The AWS Request Form must be submitted to the Human Resources Department at least three weeks prior to the beginning of the start time of the new AWS. Human Resources will then coordinate with payroll to determine the start date of the new AWS. AWS will always begin at the start of a new pay period.



4. Due to FLSA requirements to pay overtime if more than 40 hours are worked in one workweek, if a regular day off is designated, employees may not alter their scheduled day off without a permanent change to their work schedule. In addition, employees may not bounce between one AWS and another from week to week.

5. Holiday pay will remain at eight (8) hours. When a holiday falls on a regular nine (9) hour workday, the employee will use one (1) hour of non-sick leave (e.g. vacation or compensatory time) to make up the ninth hour. This also applies to employees working a regular ten (10 hour workday. The employee will use two (2) hours of non-sick leave (e.g. vacation or compensatory time) to make up the ninth and tenth hours.

6. District holidays are observed by all employees on the same District designated day, unless the employee works a seven day per week schedule, regardless of whether they participate in an AWS or not. If a holiday falls on a regular day off for an employee on an AWS and that employee does not work in a seven day per week schedule, they should adjust that holiday and take it on the regularly scheduled day just prior to the day off.

7. Time off from work will be charged nine (9) hours of leave for time taken on a scheduled nine (9) hour day. Time off from work will be charged ten (10) hours of leave for time taken on a scheduled ten (10) hour day. Time off from work will be charged eight (8) hours of leave for time taken on a scheduled eight-hour day.

8. Employees required to report for jury duty on their regular day off will not be entitled to any pay, since it is not a normally scheduled work day.

9. Only permanent full-time and Limited Term full-time employees who are meeting performance expectations are eligible to participate in AWS. AWS is optional and is not required of an employee.

10. Approval to participate in an AWS is a privilege and the employee should have no expectation that it is an employee right

11. All employees participating in AWS are subject to be called to work at any time to meet any and all emergencies and or unusual conditions which, in the opinion of the General Manager may require such service from any of said employees. This includes staff shortages in departments.

Procedures for Teleworking

1. Employee must complete a Telework Agreement Form, a Remote Access Policy Form and a Telework Site Safety Form. Any approval of a telework arrangement, including the selection of the teleworking work days and times as well as the regular day off, will be based on the District’s business needs and requires approval from the employee’s supervisor, Department Head, Human Resources and the General Manager. The Department Head is also responsible for ensuring that the arrangement will not create the need for additional overtime, out of class pay for other employees, or the need to add additional full-time or part-time staff to cover the workload within the Department. Department Heads may not approve requests that have more than 50% of their staff out of the office on the same day.

2. The Teleworking forms must be submitted to the Human Resources Department at least four weeks prior to the beginning of the requested teleworking arrangement. This allows for an approval period by the General Manager. If the request is approved, Human Resources will then coordinate with payroll to determine the start date of the new Telework arrangement. These arrangements will always begin at the start of a new pay period.

3. Only permanent full-time and Limited Term full-time employees who are meeting performance expectations are eligible to participate in a teleworking arrangement.



4. Approval to participate in a teleworking arrangement is a privilege and the employee should have no expectation that it is an employee right.

5. It is expected that while teleworking, an employee will be available to the department via telephone and/or email during all designated work hours. Any periods of unavailability must be approved in advance by management in accordance with current leave policies. Employees must notify their supervisor immediately if they are unable to perform work assignments due to equipment failure or other unforeseen circumstances.

6. All employees participating in a telework arrangement are subject to be called to work at any time to meet any and all emergencies and or unusual conditions which, in the opinion of the General Manager may require such service from any of said employees. This includes staff shortages in departments.

7. Employees on a Telework arrangement shall continue to abide by practices, policies, and procedures for requests of sick, vacation and other leaves of absences. Requests to work overtime, or take time off from work, must be pre-approved in writing by the employee’s supervisor or manager. If an employee becomes ill while working at home, he/she should notify their supervisor immediately and record missed work hours on their timesheet. In order to be fair to employees not teleworking, an employee may not telework in lieu of using accrued sick leave.

8. Employees in a teleworking arrangement must have access to an alternate worksite that is quiet and free of distractions, and which has reliable and secure power, internet and/or wireless access. Teleworking employees must ensure dependent care will not interfere with work responsibilities.

9. Before determining whether an employee is eligible to telework, a Department Head should determine whether or not the employee has adequate technical skills to perform teleworking duties while not placing a burden on the IS department.

10. Employees shall make all efforts to avoid taking time off on their “in office working” days to avoid undue hardship on their fellow coworkers and lack of service for our customers. Employees are encouraged to schedule personal business or appointments outside of work hours or on their regular days off.

11. If an employee is required to come into the office on their regular teleworking day for any reason, employees will not switch their telework days but rather they will come into the office to work that day and resume their regular schedule for the week.

12. Teleworking employees shall check their District-related business phone messages and emails on a consistent basis as if working at their District worksite. Teleworking employees should ensure they are available for Virtual Meetings.

13. Expenses incurred as a result of participating in a teleworking arrangement will not be reimbursed by the District unless they are normally reimbursable pursuant to District policies. Such non-reimbursable expenses include, but are not limited to, utility costs, (including internet access), purchase of office equipment or furniture, home improvements, any construction, any alterations to real or personal property, and travel to and from the primary worksite if required.

Flexible Teleworking Agreements may be approved for Supervisors, Managers and Exempt employees who do not wish to telework on a set schedule but would like the flexibility of teleworking from time to time. This type of arrangement needs to be agreed upon by the Department Head and the General Manager. An employee who desires a flexible schedule should submit a request for Teleworking and must comply with all Teleworking policies and procedures. The periodic teleworking should never exceed two workdays in a workweek.



Mandatory Teleworking Arrangement during exigent circumstances When an exigent circumstance exists, the District may direct its employees to perform work at an alternate location as part of an adopted short-term teleworking arrangement for employees to provide for the continuity of essential district services. When such an exigency exists and necessitates the adoption and implementation of a short-term mandatory teleworking arrangement for District employees, the General Manager is expressly authorized to suspend some or all provisions of this policy and adopt and implement alternative provisions necessary to provide for the continuity of essential services. 11.7.5 Lead Pay Purpose: To give Padre Dam flexibility to provide non-supervisory leadership needed for established work groups and special designated work teams; to successfully accomplish regular job functions, increased workload, special jobs, or dealing with emergencies; and to develop a more experienced workforce. Job Assignment: An employee may be assigned as a “lead” person by their immediate supervisor with management approval. The lead person will have the responsibility to direct the work of one or more employees, but typically, does not directly perform the annual evaluations for those employees. There is one PDEA permanent lead position in the District (Sr. Lab Analyst) that performs the annual evaluations for employees whose work they direct. Time Frame for Assignment: Assignment may fall into two categories. 1. Permanent Lead - This applies when there is the need for one individual, within a job class, to be

assigned as a lead person over a work group in support of Padre Dam in helping maintain job/function oversight on a continual basis.

2. Temporary Lead - This applies when there is the need for one individual to be assigned as a lead

person over a work group in support of Padre Dam in meeting short-term demands due to increased workload, special projects, and dealing with emergencies. Temporary assignments are defined as those with a duration of at least five consecutive work days, but for not more than one year.

Compensation: The individual given a lead assignment shall be paid a premium of five percent over their current salary grade, or five percent more than the highest salary grade of the individual(s) for which they are responsible, during the lead assignment, whichever is greater. Conditions of Employment: The individual shall remain in their current job classification and all other conditions of employment shall remain the same. 11.7.6 Meal and Break Periods A. Meal Periods

Each employee shall be provided with a minimum of 30 consecutive minutes of unpaid meal time during the hours worked, during which time the employee shall be free of all duties, except in cases of emergency. This meal period shall be taken halfway through the employee’s work shift, to the extent practicable.



B. Rest Periods

Each employee shall be provided with two daily paid rest periods of 15 consecutive minutes each, during which the employee shall be free of all duties, except in cases of emergency. The first rest period shall be provided halfway between the time the employee begins work for the day and the employee’s meal period, to the extent practicable. The second rest period shall be provided halfway between the employees’ meal period and the time the employee ends work for the day, to the extent practicable. Employees requesting lactation breaks shall, to the extent practicable, take the break in conjunction with their rest period. If the time needed exceeds the rest period, employees shall make up the missed time by either reporting early to work or staying later in the day.

C. Lactation Accommodation

Employees are entitled to time for lactation. Break times shall be established based on the employee’s work schedule. If possible, the lactation break is to run concurrently with any break time already provided. Frequency of periods needed to express breast milk on a daily basis as well as the duration of each individual period will likely vary for each employee. For non-exempt employees, lactation time beyond the regular paid rest periods is unpaid and should be recorded on an employee’s timecard as additional leave taken (vacation, sick or comp time). If no compensable leave time is available for use, the time shall be unpaid. Management will attempt to adjust beginning and ending work times to accommodate these breaks, if requested, subject to operational need. Padre Dam reserves the right to deny, in writing, an employee’s request for a lactation break if the additional time will seriously disrupt operations.

Padre Dam will provide an appropriate, private space for employees to express milk that meets the requirements of the law. The private space provided will have the ability to be locked, be shielded from view and free from intrusion of co-workers and/or the public. Management will make reasonable efforts to find a location in close proximity to the lactating employee’s work area. The space provided will be equipped with a surface to place a breast pump and personal items, an electrical outlet and comfortable seating and be in close proximity to a sink with a water supply and a refrigerator for storing milk.

Federal and state law prohibit harassment and/or discrimination against lactating employees because they request accommodations to express milk at work and/or any employees suffering from a medical condition related to breastfeeding. It is also prohibited to retaliate against lactating employees who request time to express breast milk at work and/or who lodge a complaint related to the right to lactation accommodations. Employees have the right to file a complaint with the labor commissioner for any violation of rights provided under the California Labor Code regarding lactation accommodation.

D. Meal Allowance

An employee shall receive a meal allowance of up to fifteen dollars upon proof of purchase after working three or more hours overtime and every five hours thereafter. In lieu of this meal allowance, Padre Dam may provide employees with appropriate meals at reasonable intervals.



11.7.7 Absence and Tardiness Any time that an employee is not at their work station to begin the work day, they are either tardy or absent. If it is necessary for an employee to be absent/tardy from work for any reason, the employee must, unless it is impossible to do so, notify his or her supervisor of the absence or tardiness prior to the scheduled starting time, giving the reasons for and anticipated duration of the absence/tardiness. In case of extended illness, employees should make arrangements to have their condition reported to their supervisor at frequent intervals so workloads can be reassigned. When employees are unable to report to work or will be late, they must notify their supervisor. Unless otherwise arranged, failure to report to Padre Dam daily will result in disciplinary action up to and including termination, which would be considered a voluntary quit.

11.7.8 Uniforms and Coveralls It is necessary for employees in certain positions to wear uniforms for one or more of the following reasons: (a) the work causes excess wear and tear on clothing, (b) identification of employees as members of Padre Dam staff, (c) to project a professional image, (d) safety, (e) health. It is mandatory that uniforms selected by Padre Dam be worn by all full-time employees in positions listed in the following table.

Classification Uniform Cathodic Protection Program Coordinator Shirt Compliance Administrator Shirt Compliance Specialist Full Construction and Maintenance Crew Supervisor Shirt Construction Equipment Operator Full Construction Inspector Shirt Distribution Maintenance Supervisor Shirt Distribution Maintenance Manager Full Electrician/Instrumentation and Control Technician Full Electrician/Instrumentation and Control Supervisor Full Equipment Mechanic Full Facilities Maintenance Worker Full Facilities Maintenance Specialist Full Laboratory Analyst Lab Coat/Full Laboratory Analyst, Sr. Lab Coat/Full Field Services Supervisor Full Field Services Technician Full Operations Supervisor Full Recycled Water Plant Operator Full Recycled Water Operations Supervisor Full Recycled Water Technician Full



SCADA Technician/Administrator Full Systems Operator Full Utility Locator Full Utility Worker Full Warehouse Specialist Shirt Warehouse Worker Shirt Wastewater Collection Systems Worker Full Water Quality Specialist Shirt Water Quality Compliance Specialist Full

The District provides an allowance that is equal to the actual cost, not to exceed $300 per year that Padre Dam would pay to the uniform rental and laundry service for providing and laundering the designated uniform (pants or shorts). Padre Dam will pay the annual allowance in two payments (in July and January of each year) for the subsequent six months. Padre Dam provides uniform shirts to employees required to wear them. 11.7.9 Care of Clothing

All employees receiving an allowance for uniforms must purchase uniforms that conform to the style and color standards set by the Department Head.

All clothing shall be of a style, material, and color that projects a professional image, and shall be maintained in good condition. 11.7.10 Shorts and T-Shirts Employees who are required to wear uniforms shall have the option to wear shorts and t-shirts, subject to department head and General Manager approval. Approval shall be based on safety issues and public image. 11.7.11 Contribution to PERS Classic Members – Uniform allowance is reportable to CalPERS provided the uniform is part of a ready substitute for personal attire the employee would otherwise have to acquire or maintain, and specifically excludes items that are solely for personal health and safety. The monetary value for this allowance is as follows: Full Uniform (shirt & pant) - $15.95 (bi-weekly) Pant - $9.85 (bi-weekly) Shirt - $6.10 (bi-weekly) Lab Coat - $1.46 (bi-weekly) New Members – This item is not reportable for new members as defined by GC 7522.04(f). 11.7.12 Employee Travel/Conference Expense Reimbursement of expenses incurred while attending conferences and meetings shall be limited to actual and necessary expenses incurred in the performance of official duties for the benefit of Padre Dam and must be pre-approved by the appropriate department head.

Standard Practices and Policies Section 11 Padre Dam Municipal Water District Page 24 of 98

A. Employee Participation

a. Employee attendance will be limited to those meetings which directly relate to the business of Padre Dam.

b. Attendance will be limited to employees who have a direct relationship to the meeting or conference.

B. Spouse Participation

a. Padre Dam shall not pay for or incur any expenses for the spouse, children or any other relative. b. Spouse expenses are not to be included on Padre Dam credit card. Make separate arrangements

for this personal expense. 11.7.12.1 Meetings and Conferences A. Conferences outside California are prohibited unless otherwise specifically authorized by the General

Manager in advance. B. Authorization for meetings or conference shall only be allowed for activities, conferences and/or

meetings that directly relate to the business of Padre Dam. C. General attendance to social or business gatherings such as the Chamber of Commerce do not qualify

for reimbursement unless the meeting is specifically sponsored by or directly related to Padre Dam. 11.7.12.2 Philanthropic and Community Organizations Involvement in worthy community organizations is encouraged. Payment of membership fees, meeting lunches and other support are not provided for Padre Dam employees. 11.7.12.3 Hotel

While traveling out of town, the following guidelines are to be used in selecting hotel accommodations: A. Select the hotel providing discounts for the conference/seminar. If conference or seminar housing

is not used and if more than one place of lodging is available, the prevailing rate for the designated conference/seminar housing for single occupancy lodging shall be the allowed reimbursable amount.

B. Whenever reimbursement is requested for amounts exceeding said prevailing lodging rate, a

statement of justification shall be attached to the reimbursement request. C. The room rate is not to exceed the discounted room rate for the conference, or the otherwise

available government rate, unless said discount or government rate is no longer available. D. Avoid extra transportation costs by picking a hotel near the conference. E. Arriving the night before is allowed when a conference starts the following morning.


11.7.12.4 Travel

Each employee will be reimbursed for allowable expenses incurred while traveling on Padre Dam business. Allowable expenses include:

• common carrier fares (coach class) • automobile rental charges • mileage reimbursement for personal vehicle usage • Padre Dam business telephone calls • two personal long-distance telephone calls home each day • meals • lodging • baggage handling • parking fees • tips • other miscellaneous expenses.

The following guidelines are to be used in traveling out of the area and for applying for reimbursement of transportation, lodging, meals and incidental expenses. A. Mode of transportation

1. Pick the least costly form of travel - drive or fly 2. Carpool where reasonably possible 3. Coach airfare only – First Class/Business Coach airfare is not allowed 4. Reservations for travel shall be made as far in advance as possible in order to take full advantage

of any travel discounts and/or early registration rates 5. Carrier services, including taxicabs and vehicle rental will be reimbursed at actual cost

B. Traveling to and from conference

1. Day before conference • Full Day Travel: Two meals • Half-Day Travel: One meal • Hotel room allowed when meeting begins next morning

2. Day after conference • Full Day Travel: Two meals • Half-Day Travel: One meal • No hotel room allowed

C. Car Rental

1. As much as possible, avoid renting a vehicle by taking shuttle/taxi/mass-transit service or other local transportation.

2. Rent a vehicle only when other means of transportation as described above are not available. 3. Carpool among other Padre Dam travelers. 4. Purchase full insurance coverage including the collision damage waiver.

D. Employee Personal Vehicle Use

Mileage will be reimbursed based upon the approved Internal Revenue Service (IRS) rate in effect upon completion of an approved expense report.


In order to be eligible for mileage reimbursement, you must be an employee at Padre Dam Municipal Water District and you must be driving on District business.

When a Padre Dam vehicle is not available for use by an employee engaged in District business,

permission for use of a privately owned vehicle may be granted from the appropriate supervisor.

• The use of personal vehicles in the conduct of official District business shall be reimbursed at the current approved Internal Revenue Service (IRS) rate per mile for trips. Beyond that, travel reimbursement shall not exceed the cost of the then prevailing round-trip (coach) airfare to the same destination.

• The Employee's expense claim should indicate the nature of the trip. District insurance does not cover your personal vehicle while it is being driven on District business. The reimbursement rate includes an allowance for insurance costs. Padre Dam will reimburse Employees for the deductible under their personal insurance policy in the event of an accident while traveling on District business.

E. Meals

The chart below reflects what the “typical” meal should cost as a “guideline” and the maximum allowed expense payment for meals while away on Padre Dam business. Actual receipts for meals are to be submitted. Employees are encouraged to incur less expense than the amounts shown below. Any amount spent beyond the maximum is to be paid by the attendee. The “Guideline” shall be considered the standard. The “Maximum” is designed to cover events where alternative and lower priced meals are not available within a reasonable distance from the event location. The limits indicated below apply to each meal. A participant may not apply savings from one meal in order to exceed the limit on a different meal. For instance, the maximum allowed for dinner is still $50 even if the employee skipped breakfast or paid less for lunch. Detailed receipts (not the credit card charge slip) must be attached to the expense reimbursement form. However, if no receipts are available, the employee may provide a written explanation of the expenditure, the amount paid, and to whom payment is required. Alcohol is never considered an allowed expense to be reimbursed by Padre Dam.

Guideline Maximum Breakfast $19 $38 Lunch $25 $44 Dinner $44 $63 Total Maximum Per Day $88 $145 NOTE: Add tax and tip to the above numbers. Tip should not exceed 20 percent.

F. Non-Reimbursable Items The following expenses are not reimbursable:• alcoholic beverages • parking or traffic violations • in-room movies • laundry service [prior to a three-day stay] • entertainment • expenses incurred on behalf of spouse, dependent, or traveling companion


Padre Dam will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Any receipts which include costs of personal travel (e.g. hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate).

G. Receipts:

Detailed receipts (not the credit card charge slip) must be attached to the expense reimbursement form for all expenses except mileage. However, if no receipts are available, the employee may provide a written explanation of the expenditure, the amount paid, and to whom payment is required. (Expenses of $25 or less can be reimbursed through Petty Cash without filing an Expense Report.)

11.7.12.5 Expense Report Authorized participants shall submit expense reports within a reasonable time (but no later than 30 days following the event) after incurring the expense and the reports shall be accompanied by the receipts documenting the expenses. To be reimbursable, such expenses shall be reasonable, actual and necessary incurred in the performance of official duties in attending of the authorized conference or meeting. Such attendees shall provide brief reports on the meeting attended at the expense of the local agency. The report will be given to their immediate supervisor emphasizing the value gained from attendance.

11.7.13 District Vehicle Commuter Use Employees who currently serve in the following positions are authorized to garage and commute to and from work in District owned vehicles:

• Assistant Operations Manager • Director of AWP • Distribution Maintenance Supervisor • Distribution Maintenance Manager • Construction and Maintenance Supervisor (as determined by the department head and

recommended to the General Manager) • Operations Manager • Water Quality Specialist • Director of Operations and Water Quality • General Manager/CEO • Plant Manager • Electrician/Instrumentation & Control Supervisor • Operations Supervisor Future assignments are to be made by the General Manager and length of time shall be determined by the General Manager. The General Manager will notify the Board of new assignments. All assignments must be based on evaluation of the following factors: 1. Needs of Padre Dam 2. Operating safety 3. Operating efficiency 4. Appropriateness as a fringe benefit.


All assignments must be justifiable in terms of the overall best interest of Padre Dam. The General Manager may terminate an assignment when the overall best interest of Padre Dam is no longer served. Each of the employees will be responsible for the value of the benefit based on applicable IRS regulations and will comply with IRS regulations relating to de minimis use. Under this policy, employees are not permitted to use the vehicle other than for commuting and de minimis personal use. However, the General Manager is permitted to elect to use the District vehicle for more than de minimis use, and if that election is made the General Manager will be required to pay taxes in accordance with IRS regulations relating to employer-provided vehicles for the year in which the election is made.

11.7.14 District Tools and Facilities No employee may engage in personal work in Padre Dam shops or other facilities, or use Padre Dam equipment on or off Padre Dam property, unless permission has first been obtained from the General Manager and Department Head having jurisdiction over equipment and/or facilities. 11.7.15 Employee Recognition Program In recognition of an employee's service to Padre Dam, employees will be awarded a gift check equal to $20.00 for every year of service following their 5, 10, 15, 20, 25, 30, 35, 40, 45, 50 & 55th employment anniversaries. The checks will be presented to the recipients on the date closest to their anniversary. As a further recognition to employees, the Board of Directors shall adopt a special resolution honoring employees on their 10, 20, and 30-year anniversaries, and in 10 year increments thereafter. 11.7.16 Disciplinary Action A. Disciplinary Actions Subject to Notice and Hearing.

Upon compliance with the procedures set forth in Section 11.7.17 hereof, the following disciplinary actions may be taken against a permanent employee either by the General Manager or such management personnel as he may designate:

1. Suspension from duty: An ordered interruption of duties for more than two days without pay. 2. Salary reduction: A reduction in pay from the employee's current pay within a pay range to any

lower pay within that same range, as such range is recorded in Padre Dam's current salary schedule.

3. Demotion: A reduction from a position in one class to a position in another class having a lower salary range affected for disciplinary purposes. (Demotions resulting from employee's inability to perform required duties, organizational changes, or layoffs are not disciplinary.)

4. Dismissal: Discharge from District service.

B. Disciplinary Actions Not Subject to Notice and Hearing Procedures. The following disciplinary actions may be taken against any permanent employee by the General Manager or such management personnel as he may designate without compliance with the procedures set forth in Section 11.7.17 hereof, but such actions may be reviewed in accordance with the grievance procedures of Padre Dam if requested by the employee:


1. Reprimand, which may be oral or in writing or both. 2. Suspension from duty: An ordered interruption of duties for two days or less without pay. 3. Change in working hours. 4. Reassignment not entailing a salary reduction or demotion.

C. Causes for Disciplinary Action.

It is intended that discipline be imposed primarily for corrective purposes and to address deficiencies in work performance. The following is a non-exclusive list of the more common reasons for disciplinary action: 1. Actions contrary to the rules of Padre Dam 2. Inefficiency or incompetence 3. Willful disobedience or insubordination 4. Self-inflicted abuse that would affect the physical or mental ability to perform the job 5. Dishonesty 6. Consumption of alcoholic beverages while on duty or on District premises (except while off duty

at Park grounds) 7. Intoxication while on duty 8. Use of non-prescribed prescription or illegal drugs or narcotics while on duty or on District

premises 9. Disorderly or immoral conduct while on duty or while in District uniform 10. Discourteous treatment of the public 11. Conviction of a felony 12. Unauthorized absence from work 13. Neglect of duty 14. Action incompatible with or inimical to public service 15. Failure to follow safe working practices 16. Failure to report an injury promptly 17. Failure to report significant unsafe working practices to supervisor 18. Possession or use of a firearm or other weapon while on duty or on District premises or while in

District uniform or while at District functions 19. Disclosure of unauthorized confidential information such as a co-worker’s address or phone

number 20. Disclosure of confidential information acquired in a closed session of the Board of Directors in

violation of Government Code §54963 21. Violation of any section of the Ethics Policy (Standard Practices and Policies, Section 20)

11.7.17 Disciplinary Procedures for Permanent Employees A. Purpose.

To ensure that all permanent employees are fairly treated when subjected to disciplinary action described in Paragraphs A and C of Section 11.7.16 hereof, this section sets forth the procedure for taking such action.

B. Notice of Proposed Action.

Before dismissing or otherwise disciplining a permanent employee, Padre Dam shall deliver to the employee a written notice of its intention to dismiss or otherwise discipline the employee. Such notice shall be personally served on the employee or sent by registered or certified mail to the employee's place of residence as shown on the records of Padre Dam. The notice shall be served or


mailed not less than seven days prior to the proposed disciplinary action and shall contain the following:

1. The kind and effective date of the proposed disciplinary action. 2. The specific charges upon which such action has been proposed and the reasons why such action

is being taken. Such charges shall contain any information essential to give the employee a fair opportunity to answer the charges made. Such information shall include, but is not limited to, names, times, dates, places or numbers that may be pertinent to the charges made.

3. If such charges are based upon documents or materials, the notice shall inform the employee of this fact, and shall inform the employee as to the location of such documents or materials. If available and subject to duplication, copies of such documents and materials shall be furnished to the employee with the notice.

4. A time and date for the filing by the employee of written response and for presentment of any oral response, which date shall not be less than seven days after the notice is served on or mailed to the employee, whichever occurs first.

5. The notice will advise the employee of the employee’s right to representation. C. Response of Employee.

The employee shall have the right to respond, either orally or in writing, or both, no later than the time and date provided in the notice to the employee. The time for response may be extended by the General Manager for a reasonable period if the General Manager determines it to be necessary to provide the employee with a fair opportunity to answer the charges made. Written responses shall be delivered to the General Manager. If the employee desires to make an oral response, the employee shall give written notice to the General Manager of this fact at least two days before the time and date stated in the notice for presentment of the oral response. Failure of the employee to give such notice shall constitute a waiver by the employee of any right to present an oral response.

D. Oral Response.

If the employee gives the notice provided for in paragraph C hereof, the oral response of the employee shall be presented to the General Manager. At the time of the employee's oral response, the employee shall have the right to be represented by counsel or by a representative of a recognized employee organization, or both. The employee shall have the right to present evidence and to examine adverse witnesses. If the employee desires to have any other available employee present at the time of the oral response in order to present evidence or to examine adverse witnesses, the employee shall, at least two days before the time scheduled for the oral response, file a written request with the General Manager requesting the presence of such persons at the time scheduled for the oral response. The General Manager may continue the matter for a reasonable period until such persons can be present. The proceedings at which the oral response is presented shall be preserved in summary form, but may be recorded and transcribed in full.

E. Determination by General Manager.

Upon expiration of the period of time set forth in Padre Dam's notice to the employee, or if an oral response is presented, upon completion of the response, whichever is later, the General Manager shall review the matter, including any response of the employee and his representatives and any evidence presented, and shall make a determination as to whether to discharge or otherwise discipline the employee. The General Manager shall notify the employee in writing of his determination. Such notice shall be personally served on the employee or shall be sent by registered or certified mail to the employee's place of residence as shown on the records of Padre Dam.


F. Disqualification of General Manager.

If prior to the time set for consideration of the response, the General Manager has become so involved in the matter as to create an actual bias against the employee which prevents the General Manager from fairly considering the response of the employee, the General Manager shall so advise the President of the Board of Directors, who shall thereupon appoint another person to act on behalf of and in place of the General Manager. However, mere prior knowledge of the factual background of the matter shall not, in and of itself, disqualify the General Manager.

G. Appeal of Decision of General Manager.

An employee or former employee dissatisfied with the determination made by the General Manager may appeal the determination to an independent fact finder/arbitrator, provided that a written notice of appeal is filed with the General Manager no later than 10 working days after the date of personal service or mailing of the notice of the General Manager's determination, whichever is sooner. A mutually agreed upon list of independent fact finders/ arbitrators shall be maintained by PDEA and Padre Dam. If a timely appeal is filed with the General Manager, Padre Dam shall schedule a hearing within 30 days of the date of filing of the notice of appeal, and shall notify the employee or former employee of the time and date fixed for the hearing. At the hearing, the employee shall have the right to be represented by counsel or by a representative of the Association, or both. The employee shall have the right to present evidence and to examine adverse witnesses. The employee shall, at least five calendar days before the scheduled hearing, file a written request with the General Manager requesting the presence of other employees at the hearing. If such persons can be made available without unduly interfering with the operations of Padre Dam, the General Manager shall cause such person to be present at the time of the hearing. The fact finder/ arbitrator may continue the hearing for a reasonable period until such persons can be present. The hearing shall be recorded and transcribed in full. The hearing shall be conducted in such a manner as to afford procedural due process to the parties.

H. Determination of Appeal.

If an appeal is taken upon conclusion of the hearing, the fact finder/arbitrator shall review the matter, including any evidence presented at the hearing, and shall make a proposed decision as to whether to confirm the determination of the General Manager. The fact finder/arbitrator shall have the power to recommend reinstatement of a discharged employee and/or impose different discipline upon the employee. Within 30 calendar days after the conclusion of the hearing, the fact finder/arbitrator shall certify the findings and decisions in writing and/ or orally to the Board of Directors. The Board of Directors may then affirm, revoke or modify the action taken as, in its judgment seems warranted, and the action taken shall be final. If the Board of Directors rejects the proposed decision, it may decide the matter upon the record, including the transcript, or upon an agreed statement of the parties, with or without taking additional evidence.

I. Status of Employee.

During the period prior to the determination of the matter by the General Manager, the employee may be suspended from performance of his or her duties with pay, or may be reassigned to other duties. If the final determination of the General Manager is to discharge an employee, the effective date of the discharge shall be the date that the notice of determination is personally served or mailed pursuant to paragraph E hereof.


J. Judicial Review. Judicial review of any decision of Padre Dam, or of any commission, committee, board, officer or agent thereof dismissing or otherwise disciplining an employee, which decision is subject to review under Code of Civil Procedures Section 1094.5, may be had pursuant to Code of Civil Procedure Section 1094.5 only if the petition for writ of mandate is filed within the time limit specified in Code of Civil Procedure Section 1094.6.

11.7.18 Layoff or Reduction of Force Notwithstanding any other provisions of these rules, nothing provided herein shall prohibit Padre Dam from discharging, suspending or transferring an employee upon a determination by Padre Dam that the needs of Padre Dam do not require continuance of the employee's position. 10 working days before the effective day of any layoff (or more if required by the applicable MOU), the General Manager shall notify the employee and the recognized employee organization of the intended action and reasons therefore and a statement certifying whether or not the services of the employee have been satisfactory. If certified as having given satisfactory service, the name of the employee laid off shall be placed on a re-employment list, and he or she shall be given priority recognition for the first opportunity for return to employment. If an employee is laid off after five years satisfactory employment, and he or she is re-employed within two years of termination in the classification the employee formerly was assigned, he or she shall be re-employed as a permanent employee rather than as a probationary employee. 11.8 WAGES AND SALARY 11.8.1 Paydays

All employees are paid bi-weekly on Friday, except when those dates fall on a holiday, at which time payment is on the preceding business day. The bi-weekly payroll covers work performed during the two weeks ending on the preceding Friday.

Employees are solely responsible for ensuring all time worked is appropriately reflected on their electronic time card. In the event an employee submits a timecard that is incorrect and a change is requested by the employee, the request must be in writing. 11.8.2 Salary Adjustments Effective on the first pay period of the fiscal years 2023, 2024, 2025, 2026 and 2027 and subject to the limitations below, all employees shall have their wages adjusted by 3.25 percent. The entire salary range for each position on the job classification schedule will be adjusted when the wages are adjusted. 11.8.3 Y-Rating Defined

Y-rating is defined as a cap on an individual’s salary/wages, with the employee ineligible for salary adjustments as described in Section 11.8.2 above. Any employee y-rated as a result of a reorganization, salary survey or transfer to a new job classification will remain y-rated until the salary range equals or exceeds the current rate of pay, or the employee promotes into a higher paid position. At that time the employee will be eligible for future salary adjustments. Should a salary adjustment result in the removal of the y-rating, the employee will receive any portion of the salary adjustment which would bring the employee up to the maximum rate of pay for the salary range.


The following situations may create the use of y-rating: Reorganization - When a new job specification is written and approved for an individual’s current job position, and a market salary has been determined for the new description, an employee may be y-rated due to salary variance. The employee will have the option of taking a decrease in pay or being y-rated as defined above. Salary Survey - Should the results of a salary survey indicate a lower salary range for an existing job classification, and an individual within that job classification is paid more than the maximum, the employee will be y-rated. Transfer to a New Job Classification - Should an individual request to transfer to a new job classification that has a lower salary grade, the employee will have the option of taking a decrease in pay or being y-rated as defined above. Discipline - In the event that the outcome of a discipline process determines that the freezing of an individual’s salary is appropriate, that individual’s salary will be considered ‘Y’ rated.

11.8.4 Payroll Deduction Payroll deductions may be authorized by an employee for purposes approved by Padre Dam. Payroll reductions may be authorized for employees who elect participation in the deferred compensation plan and the Section 125 Reimbursement Plan of Padre Dam or any other approved salary reduction program. 11.8.5 Salary Verification Padre Dam will not provide individual employee salary information unless required to do so by law or if an employee so authorizes in writing. 11.8.6 Performance Rating/Salary Review Employees will be reviewed at least annually on their review date. Reviews are to be based upon two components: (1) specific job standards created in each department by a Lateral of the Pipeline or labor-management representatives; and (2) actions in accordance with District Mission, Vision and Values. Employees may receive increases based upon meeting these components. Any salary changes will be effective on the beginning of the pay period that the review date falls in. The General Manager depends on the recommendations of Department Heads and Supervisors to establish wages within the limits of pay classifications and approve promotions to higher classifications. The pay classification of employees is based upon responsibilities, training and experience, and to some extent, length of service. A job description describes typical skill requirements of work operations and illustrates the level of difficulty of such requirements. The job description does not list or describe all work operations or responsibilities of the job; nor is an employee required to perform all the work operations outlined in the job description in order to receive a job classification.


11.8.7 Compensation Policy The purpose of Padre Dam’s personnel classification and compensation system is to support the recruitment, motivation and retention of highly qualified and productive employees and to reward activities that are positive in nature, cost effective and provide a high level of service to Padre Dam’s customers and service recipients. The classification system reflects meaningful and measurable differences in the type, level of work performed, and market compensation. Pay grade maximums are to be approximately the 65th percentile of the average of the top of the salary range paid to positions in the relevant labor market as reported in salary survey results. Pay range minimums and maximums are to be established from those survey results. “Relevant labor market” will be defined prior to conducting salary surveys. As it is one of the goals of Padre Dam’s compensation system to recruit highly qualified and productive individuals, new employees may be hired at a rate of pay that does not exceed the midpoint of the designated salary range for that classification. The hiring rate should be the minimum of the range for minimally acceptable qualified individuals. Individuals whose qualifications exceed the minimum may be appointed at a rate above the minimum, up to the midpoint, subject to the approval of the General Manager, or his designee. Part-time employees at Santee Lakes, hired after July 1, 2022 shall be paid at a minimum of $.50 above minimum wage per hour. Merit increases are considered by the Department Head each year on the employee’s evaluation date. All merit increases are subject to final approval by the General Manager. Employees may earn a merit increase based on their individual performance. Merit Increases are awarded as follows: Needs Improvement 0% Merit Increase Meets Expectations 1-3% Merit Increase Exceeds Expectations 3-4% Merit Increase In lieu of a merit increase, employees at the top of their salary range may receive a non-PERSable lump sum annual bonus based on performance and at Management’s Discretion. 11.8.8 Management Team Salaries The General Manager is authorized to determine the compensation of the Management Team (Director of Engineering and Planning, Director of Finance, Director of Operations and Water Quality, Director of Human Resources & Administrative Services and Director of Park and Recreation). Annually the General Manager shall review the compensation of the Management Team and establish their compensation so as to keep the salary current with appropriate market conditions. 11.8.9 Reclassification An employee may be reclassified to a higher classification only upon evidence that he or she meets the requirements for the position, and provided a vacancy and need exists in the higher classification.


Any reclassification resulting in a salary increase would change an employee's anniversary date for merit increases and performance evaluations to the date of the reclassification. 11.8.10 Filling Vacancies All new positions and vacancies will be posted so that all employees who wish to upgrade to fill such vacancies may submit an application for consideration. Any Padre Dam employee who feels qualified for the open position may submit an application. It is the desire of Padre Dam to fill all new positions and vacancies with the most qualified individual available. Padre Dam, when making a selection to fill a vacancy, will include in its consideration the employee’s work history and knowledge of Padre Dam. Each Padre Dam employee submitting a request to be considered will compete with outside applicants for job openings if the District determines it necessary to post positions to outside. Padre Dam employees will be assured access to the entire recruitment process including testing and interviewing. Should a Padre Dam employee not be selected for the position, the employee will be offered suggestions for further professional development to prepare for the next promotional opportunity. If an employee is currently in a Limited Term Position and a permanent position for the same job becomes available, it will be at the discretion of the Department Head to determine if that employee meets the requirements for the permanent position. If there is only one limited term position and one permanent position, the Department Head can make the decision to promote the limited term employee without holding a full recruitment. If there is more than one limited term position for one permanent position, a full recruitment must be held to determine the most qualified person to fill the position. Advancement through “job families” (broad classifications), may be handled as part of the annual performance review process and may not require posting of the opening. Advancement opportunities will be included in the annual budget. 11.8.11 Promotions At the discretion of the department head, promotions may be made provided there is an opening, and an employee is qualified for the position, shows readiness, and evaluations meet or exceed standards. Employees may be placed on a 90-day trial basis for the new position. Any promotion resulting in a salary increase would change an employee’s anniversary date for merit increases and performance evaluations to the date of the promotion. Employees who receive a promotion will receive either the starting rate in the pay range for their new position or a minimum of five percent over their current rate of pay, whichever is greater. 11.8.12 After-Hour Duty Personnel and Policy Statement A. Introduction.

Padre Dam provides water, sewer, recycled water and recreational services to its customers. These services are considered necessities of life and, therefore, it is of utmost importance that Padre Dam assures that these services function on a continual basis with little or no disruption of service. To that end, each of these divisions assigns to serve as after-hour duty personnel (or standby person). Each division will develop their own manual, specific to their operations to describe the calls that may be received by the standby person and the procedures to be followed while standing duty. None of the terms of the manual shall contradict any portion of the MOU. In the event there is a question


between the manual and the MOU, the MOU shall prevail. If an employee does not understand any part of this Manual, he or she is urged to contact the immediate supervisor, or their department head.

B. Definition of Standby.

Employees in each division who have demonstrated knowledge of Padre Dam policies, procedures and operations shall be authorized to stand duty. Each division shall develop their duty period, including “week” and “hours”. Specifics regarding the duty period shall be outlined in each Department’s Standby Manual. When standing duty, employees shall receive a stipend which amount shall be included in computing any overtime that may be worked during that week. The stipend is in addition to any pay add-ons the employee is otherwise entitled to receive due to their regular work schedule. No employee in any division shall receive more than what has been agreed to in this policy. The amount of the stipend will be specified in the annual Board resolution which establishes classifications and standard rates of pay.

C. Use of Padre Dam Vehicle.

In developing each division’s manual for standing duty, a determination will be made regarding the need and appropriateness for a District vehicle for the duty personnel. In such instance where it is determined that it is in the overall best interest of the division being served, Padre Dam will provide a vehicle to those duty personnel while on duty. This vehicle is equipped with all the tools necessary to respond to "typical" duty calls. While standing duty, duty personnel may use the vehicle to drive to and from work, make personal errands, etc. In addition, the duty personnel may transport members of his/her immediate family (as defined in Section 16.9 (A) of Standard Practices and Policies) in Padre Dam vehicle so long as those individuals comply with California safety laws and do not accompany the duty person on a District-related call. Employees must comply with all traffic laws while operating District vehicles and must remain sensitive to the public's perception of them while using Padre Dam vehicle. If a District vehicle is not available for the duty personnel, employees will be reimbursed for mileage at the standard mileage rate for physically responding to all calls.

D. Responding to Duty Calls.

When responding to a duty call, standby personnel must use Padre Dam vehicle, have an appropriate Padre Dam/Santee Lakes uniform shirt with them (which shall be worn when making the call) and carry an official Padre Dam/Santee Lakes identification card. If responding to a duty call between 10:00 pm and 5:30 am, standby personnel must contact their supervisor or manager so that a modified work schedule can be arranged to ensure the employee gets enough sleep to return to work safely.

E. Recording Duty Calls.

Should a standby person, other than a Systems Operator standby person, receive a call that can be resolved over the telephone, a minimum of one-half hour shall be reflected on their time sheet. Any telephone call that is taken between 10:00 pm and 5:30 am shall be recorded at a minimum of two hours. If more than one call is received within the recorded two hours, subsequent calls will be recorded in one half hour increments. All duty calls shall reflect the actual amount of time from the time the duty person leaves his/her home to the time of return, but in no event, less than two hours.


Systems Operators standing duty between the hours of 10:00 pm and 5:00 am that receive any pages, alarms and/or minor issues that can be quickly resolved over the phone or computer, will record the actual time to resolve the call, but in no event shall it be less than one half hour overtime. Calls, pages or alarms that require a field response by an Operator shall reflect the actual amount of time from the time the Systems Operator leaves his/her home to the time of return, but in no event, less than two hours.

F. Qualifications for Standby Duty.

Duty personnel shall have knowledge of Padre Dam policies, procedures and operations and be able to adequately satisfy their division supervisor of this knowledge. A list of qualified employees authorized to serve as after-hour duty personnel shall be prepared and maintained. No duty personnel shall be scheduled to serve more than one week each three weeks. Employees on modified duty will only be allowed to stand duty under certain conditions and with prior approval of the Supervisor and Safety and Risk Manager. However, duty personnel may volunteer to serve more often if they wish. The list shall be posted on the bulletin board at all applicable locations. Employees assigned to duty are responsible for coverage for the entire period. However, he or she may arrange for another employee to stand duty either by the hour, day or the week. If any substitution is made (hour, day or week), the appropriate person, as defined in the division procedure manual, must be notified of the individual now standing duty.

G. Response Time to Duty Calls.

All duty personnel must be prepared to respond to any duty call as defined in the division procedure manual and within the time frame defined in the division procedure manual. “Response to any duty call” may refer to telephone calls, computer alarms, and any other type of call that may be typical for that particular division and as is further defined in the division procedure manual.

H. Training. All employees authorized to stand duty shall receive regular training. Most calls that the duty person

receives will fall within the scope of their regularly assigned job duties. However, regular training sessions will be held to assure that everyone is aware of all aspects of the potential calls.

I. Discipline. Violation of any procedure as defined in the division procedure manual may subject the employee

to disciplinary action, up to and including discharge, in accordance with Padre Dam's discipline policy. 11.8.13 Overtime and Compensatory Time Off All employees, except those specified in “Positions Exempt from Overtime”, shall be paid an overtime premium for all hours worked in excess of 40 hours in their regularly scheduled work week. Employees called back to work (as defined in Section 11.8.14) on approved Padre Dam holidays shall be paid at the rate of double the employee’s rate of pay in effect for all time worked on the holiday, as described in Section 11.12, “Holidays.”


Amount of overtime premium shall be 50 percent of the employee’s pay rate. The overtime premium shall apply to the pay rate in effect at the time the overtime is worked. For example, if another premium also applies, such as the premium in Section 11.7.4 (A), that premium shall be applied first, and the overtime premium shall be applied last. Overtime shall not be performed without the express approval of the appropriate Department Head or designated representative.

For purposes of calculating overtime, the following are considered hours worked within an employee’s regularly scheduled hours of work:

Compensatory time off (CTO) Holidays Sick leave Vacation Mandatory Time Off (as described below)

If, due to unforeseen circumstances other than an emergency (when the EOC is activated) as defined under the Emergency Response Plan, an employee whose regularly scheduled workday ends at no later than 5:00 pm, is required to work continuously from the beginning of their shift until after 9:00 pm, or is called back to work after 9:00 pm, the employee will work until released by their supervisor. This will not exceed a total of sixteen (16) hours. A report will be pulled after each emergency and a list of employees working over fourteen (14) hours will be provided to the General Manager, Director of Operations, Director of Human Resources, PDEA President and the MMCA President. After being released, the employee shall then be given 10 hours off before reporting for duty. This 10 hours off is for safety reasons and is not waivable by employees. If the 10 hours falls into the regularly scheduled workday, Padre Dam will pay the employee for those hours normally worked, and the employee will report for work at the end of the 10 hours. If there are less than two hours remaining in that shift, the employee shall return at his/her next regular shift and be paid for his/her regular shift. If an employee does not qualify for the mandatory time off, vacation or CTO will be used to make up the difference in the hours for their shift. A. Compensatory Time Off

Hourly, non-exempt employees may accumulate a maximum of 240 hours of compensatory time off (CTO) for future use, above which any additional overtime will automatically be paid to the employee. Prior to the CTO accrual year (May to May), employees will be required to irrevocably designate the amount of CTO they are electing to cash-out which will be paid in June. Any CTO over 80 hours will be automatically cashed out at the end of the CTO year. CTO will be calculated at the employee’s rate of pay in effect at the time the CTO is paid. Employees may utilize accumulated CTO as leave from work for any purpose, subject to supervisor approval as for any other leave. This approval shall not be unreasonably withheld. Padre Dam shall provide employees with a statement of the amount of CTO accumulated with every paycheck.


B. Positions Exempt from Overtime Any employee employed in one of the following job classifications shall not be entitled to overtime pay as described above:

Management Team PDEA Positions MMCA Positions

Director of AWP Dir. of Eng. and Planning Dir. of Finance Dir. of Human Resources & Administrative Services Dir. of Ops & Water Quality Dir. of Park and Recreation General Manager

Accountant, Sr. Communications Coordinator Engineer GIS/Mapping Coordinator Info. Systems Tech. Specialist (highest level only) Laboratory Analyst, Sr.

Accounting Manager Assistant Ops. Manager AWP Manager Board Secretary Communications Officer/Manager Customer Service Manager Distribution Maintenance Manager Engineering Manager Human Resource Spec. Info. Systems Manager Operations Manager Park Recreation Mgr. Park Operations Mgr. Plant Manager Safety and Risk Manager

For all positions represented by PDEA, and in recognition of the overtime hours that may be required of these employees, they shall be provided with modified compensatory time off which shall be administered as follows:

1. After the accrual of 80 hours of unpaid overtime, overtime will accrue at the rate of one hour for

one hour, to a total of 40 hours. 2. Once the additional 40 hours of CTO has been accrued, no additional time will be accrued. 3. CTO earned under this Article will not be available for any payout and is available for time off

only. At the end of the fiscal year, any hours remaining in the CTO bank will be eliminated.

For all positions represented by MMCA and in recognition of the overtime hours that may be required of these employees, they shall be provided with one additional week of vacation until they have reached the maximum vacation accrual for their years of service (See Article 14 of the MMCA MOU for actual accrual rates)

11.8.14 Call Back Policy Occasionally Padre Dam may be required during emergency or unscheduled situations to call an employee back to work. Any off-duty employee "called back" to work before or after the normal work day will be paid for the actual hours worked at the rate of time and one-half, but in no event less than a minimum of three hours at time and one-half will be paid. Call-back time will not be paid to any employee scheduled to work holidays if that day is part of their normal work schedule and they work in a department with a 24-hour or seven day week operation (see Section 11.12, “Holidays”). If an employee gets multiple calls within the three-hour time frame from the initial call back response, they are not entitled to additional pay.


If an employee is called back to work in the event of an emergency (when the EOC is not activated); the employee will receive time and one-half for those hours. If the emergency work overlaps a normal work schedule, the employee will code the overlapping time as regular hours and keep track of the overlapping overtime using a special MOU OT pay code. This will allow the employee to receive the time and one-half for the hours and have the hours counted towards their regular scheduled 40 hour work week. Only employees called back to work for an emergency may use this code and the Department Head must approve use of the code in order to ensure the code is being used properly. Employees who start their regular shift and are sent to work on an emergency operation are not eligible to use this code. 11.9 INSURANCE 11.9.1 Group Health Insurance Full-time regular employees and dependents and/or domestic partners (as defined by California Family Code §297) are covered by a group health insurance plan. Eligibility for participation begins on the first of the calendar month following commencement of regular employment with Padre Dam. “Dependents” means any child under the age of 26 whether they are married or unmarried, live with the parent or not, regardless of earnings level or full-time student status or are claimed on the employee’s tax return in accordance with Federal law. An employee may choose to be covered under any insurance program offered by Padre Dam. If an employee would like group health insurance, the employee must select a health insurance plan prior to the end of his/her eligibility period. Cost Sharing is as follows:

HMO PPO Employee Only Employee pays zero percent Employee pays difference

between PPO and Kaiser HMO Rate

Employee + One Dependent Employee pays 10 percent Employee pays difference between PPO and Kaiser HMO Rate + 10 percent for dependents

Employee + Dependents Employee pays 10 percent Employee pays difference between PPO and Kaiser HMO Rate + 10 percent for dependents

Anyone who retires after July 1, 2007, under Article 27.11.2 and enrolled in the PPO plan after July 1, 2008, shall pay the same amount as active employees. Details of all plans are explained in the annual Employee Benefit Information Guide (BIG) which is provided to each employee during open enrollment. Employees are encouraged to review all options before his/her decision is made.


It is mandatory that each employee notify the Human Resources Department whenever any additions or deletions occur in his/her dependent status.

Active full-time employees and their dependent spouses age 65 or older have the option of selecting either Padre Dam's group health plan(s) (on the same conditions offered to employees under age 65) or Medicare as primary coverage. Employees will be notified at least 30 days prior to their 65th birthday and selection must be exercised in writing at that time.

November of each year the District will designate an "open enrollment" period. It is only during this period that an employee may elect to change his/her coverage from one plan to the other. Any changes made during this period will become effective on January 1 of the following year. Employees electing domestic partner coverage must comply with the requirements of California Family Code §297. Padre Dam retains the right to require verification of the relationship.

The District will ensure that the medical and dental benefits are maintained as is. This includes plan content, design, and co-pays. If advised by our insurance carriers that a change is required; or if requested by employees; parties agree to bring the Benefits Task Force Lateral together; including members of PDEA and Management, to consider recommended revisions. The Benefits Task Force Lateral will make recommendations to the District and the PDEA for their consideration during the associated meet and confer to address revisions to the Health Insurance Benefits. In the event the State and/or Federal Government implements a healthcare system which requires employer and/or employee contributions and which provides healthcare services which would duplicate, conflict with, or overlap with all, or a portion of, the healthcare benefits provided under this Section, the parties agree to reopen for meet and confer the affected provisions of the MOUs to address implementation of the new State and/or Federal healthcare system. 11.9.2 Waiving Health Coverage Every year at open enrollment, employees may choose to waive coverage of health insurance; upon completion of a waiver proving other ACA eligible coverage is available. Padre Dam and the employee will evenly share in the savings. The cost savings will be paid out monthly via payroll. Employees may re-enroll in health insurance upon a change of status or during open enrollment.

In the event of an emergency, employees may reinstate family members prior to open enrollment. “Emergency” is defined as loss of coverage for any reason.

11.9.3 Group Life Insurance Full-time regular employees and their eligible dependents are covered by a group life insurance program paid for by Padre Dam. Eligibility begins on the first of the calendar month following hire date.

Benefits are as follows: Active Employees - Life and AD&D (Accidental Death and Dismemberment) benefits equal to 1-1/2

times basic annual salary with maximum of $250,000. Minimum Life and AD&D benefit payable is $20,000, which reduces to 50 percent at age 70.


Retired Employees - Life and AD&D benefits are provided at 75 percent of pre-retirement salary to a maximum of $120,000.

Dependents - $5,000 Life Insurance is provided for one or more dependents. “Dependents”

includes spouse or domestic partner (as defined by California Family Code '297) and dependent children, six months to age 26. Dependent children from birth to six months (per insurance regulations) are covered at $500. Dependent coverage will continue until employee benefits are no longer in effect or dependent reaches age 26; whichever is sooner.

11.9.4 Disability Insurance Full-time regular employees are covered by a short-term disability program that is partially paid for by Padre Dam. When a disability occurs, an employee must use sick leave and/or vacation leave to cover the first 30 days of leave. From day 31 through day 90, Padre Dam will pay benefits based upon 66-2/3 percent of basic salary. Employees may offset the difference in their regular salary with sick leave and/or vacation time once sick leave is exhausted. Full-time regular employees are also covered by a long-term disability program paid for by Padre Dam. Eligibility begins following 30 days of continuous employment with Padre Dam but benefits are not payable until the 91st day of disability. Monthly benefits are based upon 66-2/3 percent of base salary up to a maximum of $7,000 per month (with Social Security benefits integrated). Benefits are payable from the 91st day of accident or sickness until age 64-70 dependent on commencement date of total disability. Additional benefits and details of the plan will be provided each employee when the eligibility period has been satisfied. 11.9.5 Workers' Compensation Insurance

Any employee injured on the job will be entitled to benefits under Padre Dam's Workers' Compensation Insurance coverage. It begins with the fourth calendar day off the job and continues until the employee is considered able to return to work. The first week is paid if hospitalized overnight or cannot work for more than 14 days. Time paid for doctor’s appointments, physical therapy, etc. shall not be counted towards overtime; except for the day of the injury. Padre Dam will coordinate workers' compensation benefits with sick leave/vacation benefits if the employee so elects. In addition, an employee may elect to coordinate the workers’ compensation benefits with their compensatory time off account. An employee elects to coordinate benefits if sick leave or vacation is selected. Payments received from workers’ compensation benefits will be coordinated with an employee’s sick leave accruals. To elect not to coordinate benefits, the employee must be on a Medical Leave without pay in accordance with Section 11.13.7 B. If an employee elects, or is unable to coordinate accumulated sick leave/vacation credits with workers' compensation benefits, Padre Dam will continue to pay group health, life, dental and long-term disability insurance for a work-related injury for a period of 90 days. Such period shall begin with the first day off work. Seniority rights pertaining to retirement benefits will not accrue during the period that full compensation is not received. Sick leave and vacation credits will continue to accrue for the 90-day period. CalPERS benefits will accrue at a reduced rate if the employee is unable to coordinate accumulated sick leave/vacation credits with workers compensation benefits.


Following the 90 day period stated above, it will be the responsibility of the employee to pay group health, life, dental, and long-term disability insurance which are normally paid by Padre Dam. Arrangements should be made to ensure that such coverage does not lapse. Under no condition shall the combination of benefits provided by workers' compensation, sick leave or vacation exceed the normal pay an employee would earn while working. It is each employee's responsibility to report immediately to his or her supervisor any injuries, regardless of severity, and to complete an injury report. 11.9.6 Unemployment Insurance Unemployment Insurance is provided by the State of California’s Employment Development Department. To apply for benefits or to determine eligibility, employees should contact their nearest Employment Development Department office. 11.9.7 Cancer/Accident Insurance A voluntary group cancer/accident insurance plan paid for by the employee is available at the employee's option. Information about this plan and other voluntary benefits can be found in the Benefits Information Guide (BIG) provided to employees each year at open enrollment. 11.9.8 Dental Insurance Full-time regular employees and their eligible dependents are covered by a group dental plan which is fully paid for by Padre Dam. Eligibility for participation begins on the first of the calendar month following an employee’s hire date. It is mandatory that each employee notify Human Resources whenever any change occurs in his/her dependent status. 11.9.9 Section 125 Reimbursement Plan Full-time regular employees may elect annually to set aside pre-tax dollars for reimbursement of unpaid medical costs and for dependent care reimbursement. 11.10 SICK LEAVE 11.10.1 Accumulation Beginning with date of employment, for permanent and full-time limited term employees: sick leave at 3.70 hours per pay period and bi-weekly pay records will reflect current sick leave accumulation. Effective July 1, 2022 and beginning with date of employment, part-time, temporary, staff support and seasonal employees accrue sick leave at the rate of one hour of sick leave per 30 hours worked and bi-weekly pay records will reflect current sick leave accumulation. Maximum accrual for part-time, temporary and seasonal employees is 48 hours.


An employee with no sick leave credit shall not receive compensation for days not worked. Compensation for accumulated sick leave will be paid for as follows: A. Employees hired before July 1, 2012: Employees on Padre Dam’s payroll before July 1, 2012, will be

eligible to receive 60 percent of their unused sick leave up to a maximum of the hours banked as of July 1, 2012, or 240 hours, whichever is greater at the time of retirement. Human Resources maintains a list of hours banked as of July 1, 2012.

Example A: If, on July 1, 2012, an employee has 145 hours banked, the employee will be eligible to receive 60 percent of the total hours banked up to 240 hours at time of retirement.

Example B: If, on July 1, 2012, an employee has 430 hours banked, the employee will be locked into that maximum and will be eligible to receive 60 percent of the total hours banked up to 430 hours at time of retirement. An employee hired by June 30, 2012, will be paid an additional one percent per year for each full year worked after 20 years of continuous service.

Prior to the sick leave accrual year (May-May), employees will be required to irrevocably elect the number of sick leave hours to be cashed out from sick leave to be earned in the next year. To be eligible for cashout, the employee must maintain a minimum accumulation of 240 hours (30 days) of unused sick leave. If the amount elected for payout will lower the employee’s sick leave accumulation below 240 hours as determined at the end of the accrual year, employee will only be entitled to cash out those sick leave hours, up to the amount which will leave 240 hours accrued. The cash out will be paid in June of each year.

B. Employees hired on or after July 1, 2012: Employees on Padre Dam’s payroll as of July 1, 2012 or

after will be eligible to receive 60 percent of their unused sick leave up to a maximum of 240 hours upon retirement.

Prior to the sick leave accrual year (May-May), employee will be required to irrevocably elect the number of sick leave hours to be cashed out from sick leave to be earned in the next year. To be eligible for cashout, the employee must maintain a minimum accumulation of 240 hours (30 days) of unused sick leave. If the amount elected for payout will lower the employee’s sick leave accumulation below 240 hours as determined at the end of the accrual year, employee will only be entitled to cash out those sick leave hours, up to the amount which will leave 240 hours accrued. The cash out will be paid in June of each year

11.10.2 Uses Sick leave may be used for the diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee or an employee’s eligible family member or for an employee who is a victim of domestic violence, sexual assault, or stalking, for the purposes described in subdivision (c) of Labor Code section 230 and subdivision (a) of Labor Code 230.1 (including to seek medical attention, counseling, social services, or obtain any court relief). “Family member” means any of the following: a child, meaning a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the


employee stands in loco parentis (this definition of a child is applicable regardless of age or dependency status). A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child; a spouse; a registered domestic partner, a grandparent; a grandchild; or a sibling. In accordance with Padre Dam values, employees should use sick leave in a responsible manner. Written proof of illness may be required for absences exceeding three consecutive work days, or for suspected sick leave abuse. Sick leave abuse could also result in referral to the Employee Assistance Program or disciplinary action up to and including termination. If sick leave abuse is suspected, the employee will be notified that he/she will be required to bring in a doctor’s statement for future absences. Approved sick leave must be recorded as such within the time entry system. Padre Dam will not compensate employees for absences which are covered by Workers' Compensation payments, except to the extent employees are allowed to use their accrued leave to make up the difference between these payments and the employee's regular bi-weekly salary. Social Security taxes will be withheld when sick leave is used for any purpose. Only when an employee is absent from work due to illness for more than six months will sick leave become exempt from Social Security tax withholding. 11.11 VACATION 11.11.1 Accumulation for Non-Exempt Management and Confidential Employees

Vacation days, for full-time employees, shall be earned at the following rate, based on years of service:

Year Hours/Pay Period

Days Per Year

Approx. Hours Per Year

1-4 3.7 12 96 5-10 5.24 17 136

11-14 6.47 21 168 15-20 6.77 22 176

21-23+ 7.70 25 200


11.11.2 Accumulation for Management Team Members and Exempt Management and Confidential Employees

Management Team members and exempt Management and Confidential employees shall earn vacation days at the following rate, based on years of service:

Year Hours/Pay

Period Days Per

Year Approx. Hours

Per Year 1-4 5.24 17 136

5-10 6.77 22 176 11+ 7.70 25 200

11.11.3 Accumulation for All Other Employees Vacation days shall be earned at the following rate, based on years of service:


Days Per Year


1-4 3.7 12 96 5-10 5.24 17 136

11-14 6.47 21 168 15-20 6.77 22 176

21-23+ 7.70 25 200 For employees hired before July 1, 1998, vacation will continue to accrue as follows:


Days Per Year


24 8.01 26 208 25 8.32 27 216 26 8.62 28 224 27 8.93 29 232 28 9.24 30 240 29 9.54 31 248

30+ 9.85 32 256 Effective July 1, 2022 and beginning with date of employment, part-time, staff support and seasonal employees will accrue vacation time at the rate of one hour of accrual per thirty (30) hours worked and bi-weekly pay records will reflect current vacation leave accumulation. Maximum accrual for part-time, temporary and seasonal employees is 48 hours.


11.11.4 General Guidelines for Vacation Accrual/Usage On an annual basis, employees will be paid for any vacation time over the amount of vacation time that could have been earned for two years. In addition, prior to the accrual year (October-October), employees will be required to irrevocably elect the number of vacation hours (minimum of eight) to be cashed out from vacation to be earned in the next year. To be eligible for cash out, the employee must maintain a minimum one year’s accrual of unused vacation. If the amount designated for payout will lower the employee’s vacation accumulation below one year’s accrual as determined at the end of the accrual year and based on the accrual rate in effect at that time, employee will only be entitled to cash out those vacation hours, up to the amount which will leave one year’s accrual. The cash out will be paid out in November of each year.

In the event that employment is terminated for any reason, the earned vacation will be deemed due and payable through the last full day of employment. Padre Dam considers that an annual vacation is necessary for all employees, whether you travel, stay at home, or engage in any other type of activity that takes you away from your daily work environment. For this reason, all employees are encouraged to take at least 10 consecutive work days' vacation during each year of their employment. Vacations must be approved in advance by the Supervisor or Department Head to ensure there are no conflicts with District operations and to allow for proper work scheduling. 11.11.5 Accelerated Vacation Option for Recruitment/Retention At the discretion of the Department Head, with the General Manager’s approval, accelerated vacation may be offered to new hires as an incentive for working at Padre Dam. In addition, accelerated vacation may be offered to any employee as a retention tool. In offering an accelerated vacation package, staff shall consider the background, work performance, history and experience of the individual and the current market pay for the position. At no time shall any offer of accelerated vacation exceed the maximum vacation accrual as set forth above. In addition, accelerated vacation shall only apply until the employee’s years of service match the normal vacation accrual.

11.12 HOLIDAYS The following holidays are recognized by Padre Dam for all full-time regular and full-time Limited Term employees. Permanent part-time employees receive these benefits as described in Article 12.3 of the PDEA MOU. New Year's Day January 1 Presidents' Birthday Third Monday in February Memorial Day Last Monday in May Independence Day July 4 Labor Day First Monday in September Veteran's Day November 11 Thanksgiving (16 Hours) Fourth Thursday and Friday in November Christmas Eve (4 Hours) December 24 Christmas December 25 New Year's Eve (4 Hours) December 31


Holidays falling on a Saturday shall be observed the preceding Friday. Holidays falling on a Sunday shall be observed the following Monday. Partial Holidays will precede the observed day off for the full Holiday. Any employee who works in a seven day per week area (i.e., Park, Systems Operators, Water Recycling Facility) and whose normal, regular work schedule includes work on a recognized holiday shall be provided with one of the following, as designated by the employee upon department head approval: A. One alternate day off on a date designated by the employee within the same work week; or B. Up to eight hours added to their vacation bank; or C. Up to eight hours paid at straight time. (Non-Exempt Employees Only) Any employee working a flexible work schedule of more than eight-hour days will be credited with eight hours of holiday pay. Employees have the option of using vacation or CTO for the additional time off.

11.12.1 Vacation in Lieu of Holiday. All full-time permanent and full-time limited term employees will be provided with one day of vacation accrual in the first pay period immediately following Martin Luther King, Jr.’s birthday (third Monday in January) and one day of vacation accrual in the first pay period immediately following Columbus Day (second Monday in October). 11.13 LEAVE OF ABSENCE 11.13.1 Death in Family In the event of a death in his/her immediate family, all employees shall be entitled to Bereavement Leave for purposes of attending the funeral or memorial services. During such leave, Padre Dam shall provide the employee his/her salary for up to three (24 hours) scheduled work days off (this leave will not be deducted from the employee’s available leave bank).If the employee is a part-time, a seasonal or temporary employee, their bereavement leave will be based on up to three shifts. Should additional time be required due to unusual circumstances, an additional two days (16 hours) or two shifts (part-time, seasonal or temporary) may be granted at the discretion of the employee’s department head. Any employee working a flexible work schedule of more than eight hour days will be credited with eight hours of bereavement leave for each day used. Employees have the option of using sick, vacation or CTO for the additional time off taken. Immediate family in this instance shall mean spouse, parent, stepparent, parent of current spouse, child, stepchild, grandparent, grandchild, brother or sister and or current member of the immediate household. Should an employee request bereavement leave for any other family member, the request shall be considered by the department head and granted on a case-by-case basis. If the death does not fall under the classification of immediate family member, vacation, sick or CTO must be used for the time off. Padre Dam may request that an employee’s request for bereavement leave be supported by satisfactory evidence of death and family relationship.


11.13.2 Jury, Military, Civic Duty

A. Jury. Jury duty is considered an excused absence. An employee summoned for jury duty, examination, or subpoenaed to appear in court as a witness for Padre Dam or non-personal related activities, shall receive pay for regularly scheduled work days. Employees are required to submit their jury duty timesheet in order to be paid for jury duty. The jury fee paid for these services shall be endorsed by the employee in favor of Padre Dam less mileage compensation paid the employee for personal car use. In no case shall payment be made for jury duty performed on an employee's normal day off or for hours in excess of the employee's regularly scheduled work day. In the event an employee is excused prior to the end of their normal work day, they are expected to contact their supervisor and return to work or use vacation/comp time for the remainder of the shift. If a scheduled jury duty report time falls later in the day, the same procedures shall be followed to account for work hours in the morning.

B. Military.

Any employee who is on temporary military leave of absence for military duty ordered for purposes of active military training, inactive duty training, encampment, naval cruises, special exercises, or like activity as such member, provided that the period of ordered duty does not exceed 180 calendar days including time involved in going to and returning from the duty, and who has been working for Padre Dam for a period of not less than one year immediately prior to the day on which the absence begins, is entitled to receive his or her salary or compensation for the first 30 calendar days of such absence. Pay for those purposes may not exceed 30 days in any one fiscal year. For the purposes of this section, in determining the one year of service with Padre Dam, all service if the employee in the recognized military service shall be counted Padre Dam service. Padre Dam employee shall have the right to a temporary military leave of absence for reserve duty, not to exceed 180 days. If employed by Padre Dam more than one year, the employee is entitled to receive his salary for the first 30 calendar days of any such absence. If the employee has been employed not less than one year, he/she is entitled to the same vacation, sick leave, and other benefits that would have accrued had he/she not been absent. As stated in the foregoing paragraph an employee is entitled to receive his/her salary for the first 30 calendar days of a temporary military leave of absence for reserve duty. Should that individual be called to active duty, the same would apply. Active duty beyond 30 days will be compensated by payment of the difference between military compensation and District salary for a period not to exceed 180 days. In the event that an employee is called to active duty because of a declared state of emergency, the employee will be entitled to receive his/her salary for the first 30 calendar days of such leave, regardless of other military leave taken during the year. If the active duty of an employee extends beyond the 180 days, the employee shall be entitled to use accrued vacation leave and sick leave respectively, to supplement the difference between the amount of his/her military pay and his/her salary as a Padre Dam employee. Unless limited by the insurance carrier, the same group health and dental benefits shall be provided by Padre Dam for up to 12 months of military service, following the first 30 calendar days of such military service. Life and long-term disability insurance will terminate at the end of the first 30 calendar days of a temporary military leave.


Vacation and sick leave do not accrue during an absence for military leave that extends beyond 30 days per year. The reservist must seek re-employment within six months after the termination of his/her active service, as provided for in the Military and Veterans Code, §395.1(a). The individual will be returned to the position held at the time of his/her military leave. If that position no longer exists, the individual will be placed in a comparable position. Employees who participate in military service or military organizations shall be eligible for such benefits as may be established by Federal and State laws regulations.

C. Military (Family of Military Member).

California Military and Veterans Code §395.10 makes available up to 10 days of unpaid leave to eligible spouses of members of the Armed Forces, National Guard, or Reserves, where the member is on leave from deployment during a period of military conflict. To be eligible, the spouse must: a. Work an average of 20 or more hours per week; b. Provide his/her employer notice of his/her intent to take leave “within two business days of

receiving official notice that the qualified member will be on leave from deployment”; and, c. Submit written documentation certifying that his/her spouse will be on leave from deployment.

D. Civic.

Any employee unable to attend work due to emergency duty to which he/she has been ordered for necessary civil defense or other civil activities such as Sheriff’s reserve, etc., will not be disciplined for his/her absence from work. Employees may use any accumulated vacation time or CTO for such time off.

11.13.3 Medical Employees may request an unpaid medical leave of absence only when sufficient sick leave has not been accumulated, or it has been exhausted, to cover a period of temporary disability resulting from any illness or physical condition, including pregnancy, miscarriage, childbirth and recovery therefrom. Medical leaves may be granted, subject to the General Manager's approval, for a reasonable period of time not to exceed four months, provided that the combination of sick leave, family care leave and medical leave does not exceed four months. Employees requesting a medical leave must provide a doctor's certificate indicating nature of illness or physical condition, and the period of temporary disability. No salary or benefits will be paid or accrued during the period of the leave. It is the responsibility of the employee to pay group health, life, dental, and long-term disability insurance which are normally paid by Padre Dam. Arrangements should be made to ensure that such coverage does not lapse. Seniority rights pertaining to retirement benefits, sick leave and vacation credits will not accrue during the period of leave. Immediate re-employment cannot be guaranteed under a medical leave unless the leave also qualifies as a leave under FMLA/CFRA/PDL. However, Padre Dam will endeavor to reinstate the employee to his/her original job or to a position of like status and pay without loss of seniority.


NOTE: Employees may request a family care leave under Section 11.13.4 below. Employees will be required to follow the policy set forth in Section 11.13.4 for any time requested prior to the commencement of the medical leave. 11.13.4 Family Care Leave Employees who have been employed by Padre Dam for at least one year and have worked at least 1,250 hours during the 12 month period preceding the request for Family Care Leave, may be entitled to leave under the California Family Rights Act (CFRA) and/or the Family and Medical Leave Act (FMLA) for the following reasons: 1. Basic Leave Entitlements (FMLA/CFRA):

a. Bond with and provide care for a newborn child, an adopted child, or a child placed with the employee for foster care. Bonding leave is available during the first 12 months after the birth/adoption/placement of the child; or

b. Provide care for a spouse, minor child, adult child over the age of 18, parent, domestic partner,

child of a domestic partner, grandparent, grandchild or sibling due to a serious health condition; or

c. For an employee’s own serious health condition which makes the employee unable to perform

the essential functions of their position. 2. Military Family Leave Entitlements (FMLA):

a. Exigency Leave. Eligible employees with a spouse, son, daughter or parent on covered active duty (or who has been called or ordered to covered active duty) in the Armed Forces may use their FMLA/CFRA leave entitlement of up to 12 workweeks during the applicable 12 month period to address qualifying exigencies. “Qualifying exigencies” may include activities such as attending certain military events, arranging for alternative childcare, addressing certain financial and legal arrangements, attending certain counseling sessions, and attending post-deployment reintegration briefings.

b. Military Caregiver Leave. Eligible employees may take up to 26 workweeks of FMLA leave in a

single 12-month period to care for a covered service member (as defined by law as a current member of the Armed Forces or a veteran discharged with the five-year period before the need for leave) who has incurred an injury or illness while in the Armed Forces provided that such injury or illness renders the family member medically unfit to perform duties of the member’s office, grade, rank or rating and is certified by the service member’s health care provider, or for a veteran which qualifies them for benefits from the Department of Veterans Affairs or substantially impairs their ability to work. The employee must be the spouse, son, daughter, parent or next of kin of the covered service member. Leave to care for an injured or ill service member, when combined with other FMLA-qualifying leave, may not exceed 26 work weeks in a single 12-month period, and will run concurrently with CFRA (unless employee is next of kin to the service member). Where spouses are both employed by Padre Dam, they may take up to, in aggregate, 26 work weeks of service member FMLA, provided that any portion of the aggregate leave that is not for care of a family service member does not exceed 12 work weeks.


Family Care leaves of absence are provided on an unpaid basis (if the employee does not have accrued paid leave) and may not exceed 12 working weeks (480 hours) in a 12 month period (up to 26 work weeks of FMLA in the case of Military Caregiver Leave), based on a backward rolling year, except that the single 12-month period for leave to care for a covered service member begins on the first day of leave and ends 12 months later. If the leave is due to the employee’s serious health condition, employees must use any accrued sick leave followed by any accrued vacation before entering into an unpaid status. If the leave is for any purpose other than the employee’s own serious health condition, sick leave may be used consistent with Padre Dam’s policy outlined in Section 11.10.2. The employee may use accrued vacation instead of, or in addition to, accrued sick leave. All accrued vacation must be exhausted prior to entering into an unpaid status. Employees taking leave to care for an ill family member will have the discretion of using accrued and available sick and/or vacation time.

NOTE: Employees may request a medical leave of absence under Section 11.13.3 above. In that instance, employees will be required to follow the policy set forth in Section 11.13.3 for any time requested after expiration of the family care leave. In addition, employees may request a pregnancy disability leave of absence in accordance with state law. Pregnancy disability leave will run concurrently with FMLA but not CFRA. If the leave is used to care for a spouse, child, or parent, or domestic partner, or because of the employee’s serious health condition, it may be taken intermittently or on a reduced leave schedule when medically necessary. Intermittent leave for child bonding may be limited by duration and occurrence. Padre Dam may require the employee to transfer temporarily to an available alternative position for which the employee is qualified and that has equivalent pay and benefits and better accommodates recurring periods of leave than the regular employment position of the employee. Padre Dam will maintain the employee’s group health, dental, life, and long term disability coverages during the entire Family Care Leave period, under the same conditions as coverage would have been provided if the employee had been continuously working. A request for family care leave must be made with reasonable advance notice to Padre Dam (generally 30 calendar days) unless the need for the leave is unforeseeable. If the need for the leave is due to planned medical treatment or supervision, the employee must make a reasonable effort to schedule the treatment or supervision to avoid disruption of his/her department and/or Padre Dam. If an employee requests a leave of absence under this section, a certification issued by the health care provider of the individual requiring the care will be required within 15 calendar days. The statement of the health care provider must include:

a. The date on which the serious health condition commenced; b. The probable duration of the condition; c. If appropriate, an estimate of the amount of time that the health care provider believes the

employee needs to care for the child, parent, or spouse, or domestic partner;


d. If appropriate, a statement that the serious health condition warrants the participation of a family member to provide care during a period of treatment or supervision of the child, parent, spouse of domestic partner;

e. If appropriate, a statement that the employee is unable to perform the functions of the position due to a serious health condition and if appropriate the request for intermittent leave or leave on a reduced leave schedule for planned medical treatments, the date and duration of the required treatments.

If additional leave is required beyond the initial estimated duration and within the appropriate limitation, the employee must provide recertification from the health care provider which provides all the information listed above, including the updated status. Padre Dam retains the right to request a second or third medical opinion, at its expense, when an employee requests a leave or reduced leave schedule due to the employee’s serious health condition. If an employee satisfies all the conditions of this Section and returns to work immediately following the expiration of an approved family care leave, Padre Dam will reinstate the employee to his/her original job or an equivalent job without loss of seniority. If an employee fails to report to work immediately after the approved leave expires or if a leave is obtained based on false representations regarding the need for a family care leave, the employee will be considered to have voluntarily quit. In addition, should an employee fail to return from the approved family care leave due to the continuation of the serious medical condition or any other circumstance beyond the employee’s control, the employee will be liable for all health insurance premiums paid on his or her behalf by Padre Dam. As used in this section, the following definitions apply: “Child” refers to a biological, adopted, or foster child, a stepchild, a child of a domestic partner, a legal ward, or a child of a person charged with a parent’s rights, duties, and responsibilities as to that child. The child must either be under 18 years of age or an adult dependent child. “Parent” refers to a biological foster, or adoptive parent, a stepparent, or a legal guardian. “Domestic partner” defined by California Family Code §297, established by the filing of a Declaration of Domestic Partnership with the Secretary of State pursuant to the Code, and meeting all requirements of the Code. “Serious health condition” is defined as an illness, injury, impairment, or physical or mental condition which involves one of the following: 1. Hospital Care: inpatient care (i.e., an overnight stay) in a hospital, hospice, or residential medical

care facility, including any period of incapacity or subsequent treatment in connection with or consequent to such inpatient care.

2. Absence Plus Continuing Treatment: A period of incapacity of more than three consecutive calendar

days (including any subsequent treatment or period of incapacity relating to the same condition), that also involves:


a. Treatment two or more times by a health care provider; by a nurse or physician’s assistant under

direct supervision of a health care provider; or by a provider of health care services (e.g., physical therapist) under orders of, or on referral by, a health care provider; or

b. Treatment by a health care provider on at least one occasion which results in a regimen of

continuing treatment under supervision of the health care provider.

* The “treatment” must be in-patient visits to a health care provider, the first of which must take place within seven days of the first day of incapacity.

3. Pregnancy: If FMLA leave is requested, “serious health condition” includes any period(s) of incapacity

due to pregnancy, or for prenatal care by a health care provider. If pregnancy disability leave is requested, a woman is “disabled by pregnancy” if, in the opinion of her health care provider, she is unable because of pregnancy:

a. To work at all, or is unable to perform any one or more of the essential functions of her job; or b. Perform these functions without undue risk to herself, the successful completion of her

pregnancy, or to other persons; or c. If she is suffering from “severe morning sickness” or needs to take time off for prenatal care.

4. Chronic Conditions Requiring Treatment: A chronic condition which:

a. Requires periodic visits for treatment by a health care provider, or by a nurse or physician’s

assistant under direct supervision of a health care provider; b. Continues over an extended period of time (including recurring episodes of a single underlying

condition); and c. May cause episodic rather than a continuing period of incapacity (e.g., asthma, diabetes,

epilepsy, etc.). 5. Permanent/Long-Term Conditions Requiring Supervision: A period of incapacity, which is permanent

or long-term due to a condition for which treatment may not be effective. The employee or family member must be under continuing supervision of, but need not be receiving active treatment by, a health care provider. Examples include Alzheimer’s, a severe stroke, or the terminal stages of a disease.

6. Multiple Treatments (Non-Chronic Conditions): Any period of absence to receive multiple

treatments (including any period of recovery therefrom) by a health care provider or by a provider of health care services under orders of, or on referral by, a health care provider, either for restorative surgery after an accident or other injury, or for a condition that would likely result in a period of incapacity of more than three consecutive calendar days in the absence of medical intervention or treatment, such as cancer (chemotherapy, radiation, etc.), severe arthritis (physical therapy), or kidney disease (dialysis).


“Health care provider” means any state licensed physician, surgeon, osteopathic physician, osteopathic surgeon, or other health care provider authorized by the State or Federal family care law. “Reduced leave schedule” means a leave schedule that reduces the employee’s usual number of hours per workweek or work day.

11.13.5 Pregnancy Disability Leave Pregnancy Disability Leave shall be granted in accordance with the provisions of Padre Dam’s policies, and in compliance with the California Pregnancy Disability Leave Law under the California Fair Employment and Housing Act (FEHA), the CFRA and the FMLA. Even if an employee is not eligible for FMLA leave, they are entitled to take a pregnancy disability leave (PDL) of up to four months (17 1/3 weeks) depending on the period of actual disability under FEHA. Time off needed for prenatal care, severe morning sickness, doctor-ordered bed rest, childbirth, and recovery from childbirth are all covered by a PDL. Specifically, the right to take CFRA leave is separate and distinct from the right to take a PDL. Leave taken by an employee disabled by pregnancy, childbirth or related medical conditions is not family leave under the CFRA, even though it may qualify as FMLA leave. Accordingly, Padre Dam District may require that pregnancy disability and FMLA leave run concurrently (pregnancy disability/FMLA leave), but CFRA leave can never run concurrently with a pregnancy disability leave. This means that, at the end of the employee's period(s) of pregnancy disability and/or pregnancy disability/FMLA leave, whichever occurs first, a CFRA eligible employee may take up to 12 workweeks of CFRA leave after the birth of her child for baby bonding or for other family leave purposes. Where an employee has exhausted her entitlement to pregnancy disability/FMLA leave prior to the birth of her child, and her health care provider certifies that continued leave is medically necessary, Padre Dam may, but is not required to, allow the employee to utilize CFRA leave prior to the birth of her child. A. Certification.

Padre Dam may require certification from the employee’s health care provider of a pregnancy disability or the medical advisability for a transfer or reasonable accommodation, particularly where the nature of the duties performed are hazardous or burdensome. If possible, an employee must provide at least 30 days advance notice for a foreseeable event such as the birth of a child. Following childbirth and upon release from medical treatment for the disability resulting from the pregnancy, an employee must submit to Padre Dam a medical statement of fitness to perform the duties of the position.

B. Minimum Period of Leave.

Leave may be taken in one or more periods and does not have to cover a continuous period of time. Such leave may be taken intermittently or on a reduced hours schedule, when medically necessary as determined by the employee's health care provider. Time off needed for prenatal care, severe morning sickness, doctor-ordered bed rest, childbirth, and recovery from childbirth would all be covered.


C. Benefits During Pregnancy Disability Leave. In general, employees taking pregnancy disability leave will be treated the same as other similarly situated employees taking disability leave. Employees returning from a pregnancy disability leave shall return with no less seniority than they had when the leave commenced for purposes of layoff, recall, promotion, job assignment, and seniority-related benefits. Employees shall retain employee status during the period of leave, and the leave shall not constitute a break in service for purposes of longevity and/or seniority. Padre Dam will continue the employee's health benefits under the same conditions as coverage would have been provided if the employee had been continuously working.

D. Requests for Reasonable Accommodation.

An employee may request a reasonable accommodation for pregnancy, childbirth, or related medical conditions if she provides Padre Dam with medical certification from her health care provider. In addition to other possible forms of reasonable accommodation, a pregnant employee may transfer temporarily to a less strenuous or hazardous position or to less hazardous or strenuous duties if she so requests, the transfer request is supported by proper medical certification, and the transfer can be reasonably accommodated. Such reasonable accommodation will not involve Padre Dam creating additional employment that would otherwise not be created, discharging other employees, transferring another employee with more seniority, violating a collective bargaining agreement, or promoting any employee (including the pregnant employee) to a position for which the employee is not qualified.

E. Pay During Leave.

Employees with pregnancy-related disabilities will be required, to the extent permitted by law, to use any accrued and available sick leave, and may be permitted to use accrued vacation. The employee may also be eligible to receive short-term or long-term disability payments during her pregnancy disability leave.

F. Reinstatement.

Employees are generally entitled to be reinstated to the same position at the end of the leave upon release to return to work by her health care provider, subject to exceptions allowed by applicable law.

11.13.6 Emergency Padre Dam may grant a leave of absence without pay for emergency or other necessary conditions, but not without due consideration, and only when such requests are thoroughly reviewed and determined to serve the best interest of Padre Dam. Recommendations that a leave of absence be granted must be made by the employee's Department Head and approved by the General Manager. Approved leaves will be granted for a period not to exceed 60 calendar days. During the period of leave, arrangements must be made by the employee to pay group health, dental, life and long-term disability insurance, which are normally paid by Padre Dam. Seniority rights pertaining to retirement benefits, sick leave, and vacation credits will not accrue for the period of the leave. Immediate re-employment cannot be guaranteed. However, upon return to work, Padre Dam will rein-state the employee to his/her original job or to a position of like status and pay without loss of seniority.


11.13.7 Miscellaneous Leave A. Leave Without Pay at District Convenience (LWOP[D])

Under certain work conditions, it is to Padre Dam's advantage to grant a LWOP[D] to an employee who is affected by such conditions. Slow-up in work load due to lack of building, and inability to work because of inclement weather, are examples of those work conditions. If such conditions occur and the employee(s) affected consent to a period of LWOP[D], the department head(s) concerned has the authority to grant such leave, but only when it is for Padre Dam's convenience. The Time Entry system will reflect the leave status for payroll records. With the exception of (PERS), Padre Dam will continue to pay all benefits under this leave policy, including vacation and sick leave accruals.

B. Leave Without Pay at Employee(s) Convenience (LWOP[E])

An employee having no vacation or sick leave accumulated may require several hours or days off for an illness or personal business. This need may also occur for an employee who has sick leave or vacation credits but prefers not to use the accumulated hours. Under either of these situations, the department head concerned has the authority to grant the LWOP[E], provided that the time off requested is kept to an absolute minimum and does not occur on a regular basis. If time off requested exceeds five working days, it will be necessary to submit a request to the General Manager for a Medical or Emergency leave in accordance with Sections 11.13.3, 11.13.4 or 11.13.5.

Under this LWOP[E] policy, the employee will be required to pay for all fringe benefits on a prorated basis, just as he or she is required to do when on Medical or Emergency leave. Vacation and sick leave benefits will not accrue and PERS benefit payments will not be paid. The time entry system shall reflect the leave status for payroll records.

11.13.8 Donation of Unused Sick Leave/Vacation Employees with unused combined sick leave and vacation balances of more than 172 hours may donate hours in four hour increments to an employee, who is out of work on catastrophic leave, who has exhausted all sick leave and vacation and is out on an approved Family Care or Medical Leave (Standard Practices and Policies, 11.13.3 and 11.13.4). Those employees donating unused sick leave hours may not allow their combined sick leave and vacation balances to drop below 172 hours as the employee donating the time might need those hours if an accident or illness required him or her to go out on disability. The employee receiving donated sick leave/vacation may receive no more than 172 hours or the amount required for the employee to qualify for short- term disability benefits. Donation of hours will be on an hour-for-hour basis and not a dollar-for-dollar basis.


11.13.9 Domestic Violence, Sexual Assault and Stalking Leave An employee who is a victim of domestic violence, sexual assault, or stalking may take time off from work to seek medical attention, obtain services from a domestic violence or rape crisis program, obtain psychological counseling, or make provisions for his or her safety (including obtaining a restraining order or other appropriate court orders and temporary or permanent relocation), related to domestic violence, sexual assault, or stalking. As a condition of taking time off, the employee must give reasonable advance notice, unless it is not feasible. When advance notice is not possible, the employee will be required to provide Padre Dam with a certification indicating that the unscheduled absence was a result of the protected activities (a police report, court order or doctor or counselor’s note or similar document). This leave may be paid or unpaid and employees will be required to use accrued leave time as appropriate prior to entering an unpaid status. If the domestic violence leave also qualifies as Family and Medical Leave (FMLA Leave), Padre Dam’s Family and Medical Leave policy will govern the leave and both leaves will run concurrently. If the domestic violence leave does not qualify as FMLA leave, the employee will be responsible for reimbursement to Padre Dam of health, dental, life, and long term disability insurance benefit premiums during any unpaid leave period incurred as a result of their time away from work. Padre Dam will, upon request, provide an accommodation to ensure workplace safety for employees who are victims of domestic violence, sexual assault, or stalking, which may include the following: installing locks, changing an employee’s shift or phone number, transferring or assigning an employee, or providing assistance with keeping a record of what happened to the employee. Padre Dam will require a signed statement certifying that the request is for proper purpose, and will require proof showing the need for accommodation. Padre Dam will keep such requests confidential, unless required to release information for safety purposes. Padre Dam will not discriminate against an employee or terminate an employee because the employee is a victim of domestic violence, sexual assault, or stalking, has requested leave time to get help, or has requested help or changes in the workplace to ensure workplace safety. Employees may obtain additional information from the California Labor Commissioner’s Office at 213-897-6595, or www.dir.ca.goc/dsle/DistrictOffices.htm.

11.13.10 Modified Work Due to Illness or Injury A. Purpose.

The purpose of this Modified Work Due to Illness or Injury program is to provide temporary modified-duty for employees who are partially disabled due to illness or injury. Padre Dam will make every effort to bring ill or injured employees back to work as long as temporary modified work is available and assignment will not cause any harm to the employee, others, property or create liability for Padre Dam.

B. Objectives.

The objectives of this Modified Work Due to Illness or Injury Program are to:

• Limit the number of lost workdays an injured or ill employee may incur by providing temporary, meaningful work of a restricted or limited nature.


• Allow the employee to remain in the work force and resume productive employment as soon as possible.

• Enable the worker to gradually overcome medical restrictions through a temporary period of

modified work or work reconditioning assignments. • Comply with all applicable parts of the Americans with Disabilities Act (ADA) and with all

appropriate parts of the Family and Medical Leave Act (FMLA). • Comply with all applicable state laws.

C. Scope.

This program applies to all Padre Dam employees. Padre Dam may provide temporary modified duty to employees who are injured off duty, however, Padre Dam is under no obligation to do so and employees injured at work will have priority for temporary modified duty assignments over employees injured off duty. Padre Dam will provide temporary modified duty whenever possible for a period of up to 30 calendar days to determine the degree of improvement. An extension in excess of 30 days may be allowed on a case-by-case basis when recovery is incomplete. Such extensions will be reviewed every 30 calendar days thereafter and modified work may continue to be provided in cases where improvement continues.

D. Type of Work.

Padre Dam will provide temporary modified duty whenever possible and practical, and will cooperate in every way possible to provide regular duties on a limited basis, modified duty, and/or special assignments for the recovering employee. Whenever possible, attempts will be made to allow the employee to remain in his or her original classification or job function with modified duties. Special assignments and/or modified duties will be determined by the Director of Human Resources, Safety and Risk Manager and by the Supervisor of the department in which the employee will be working after taking into consideration the employee's medical restrictions. Padre Dam maintains the right to assign employees on modified duty to any job or any shift within Padre Dam that will not exceed their restrictions and they are capable of doing. Modified duties may not be desirable to the employee. Employees on modified duty will only be allowed to work overtime under certain conditions and with prior approval of the Supervisor and Safety and Risk Manager.

E. Compensation and Benefits.

Employees on modified duty will be compensated at their regular rate of pay. Benefits will remain unchanged.

F. Employee Responsibilities.

Employees are responsible to:

1. Produce appropriate medical documentation to the Safety and Risk Manager on his or her condition to verify work restrictions or a change in their physical status as it affects returning to work.


2. Be examined by a physician that Padre Dam designates when it is determined by Padre Dam that

a fitness for duty needs to occur. 3. Adhere to all medical advice and directives as prescribed by the treating physician, nurse, or

other medically qualified professional. Failure to adhere to any medical restrictions may result in disciplinary action up to and including termination.

4. Perform all activities, both on and off the job, in accordance with job-related restrictions. If the

employee feels that tasks have been assigned which violate these restrictions, he or she should immediately inform his or her Supervisor or the Safety and Risk Manager.

5. Keep medical appointments and participate in follow-up rehabilitation treatment as necessary.

Failure to participate in medical and rehabilitation treatment may be considered a violation of work rules and may result in disciplinary action up to and including termination.

G. Supervisor Responsibilities:

1. Ensure that the employee is complying with job-related restrictions as noted on the Modified

Work Assignment form. 2. Assign employees to jobs which can accommodate their restrictions. If no jobs are available

within assigned department, contact the Safety and Risk Manager to discuss options or arrange for temporary departmental transfer.

11.14 RETIREMENT 11.14.1 General Employees are eligible to retire from Padre Dam with full retirement benefits after the age of 50 with no less than five years of service and whose age combined with years of service with Padre Dam equals 65 or more. “Full retirement benefits” include: (1) Picture of the Padre Dam; (2) check for $250; (3) in-house reception or party for the retiree and family, which shall be scheduled at a time determined by the Department Head if the party is on a weekday. Padre Dam will contribute an amount up to $500 for the reception/party, as determined by the General Manager or designee; (4) resolution from the Board of Directors; and (5) other benefits as described in Sections 11.14.7, 11.14.8 and 11.14.9 if eligible. In addition, employees may be eligible for insurance benefits as described in Sections 11.14.7, 11.14.8 and 11.14.9 and sick leave payout as described in Section 11.10.1. 11.14.2 Public Employees' Retirement System (PERS) A. Membership.

Padre Dam is a member of the Public Employees' Retirement System of the State of California and membership is compulsory for all employees except those specifically excluded. Exclusions includes: (1) special contract exclusions; (2) part-time employees who work less than 999 hours; (3) employees who work half time or more but not in excess of six months; (4) temporary or seasonal full-time employees who will work six months or less.


B. Service Retirement. The earliest retirement age is 50. An employee may retire any time after age 50, providing the employee meets the minimum requirement of having five years of service. The monthly income is determined by age at retirement, years of credited service, and "final compensation." The basic benefit for employees hired before June 26, 2010, will be 3 percent of “final compensation” for each year of credited service upon retirement at age 60. For employees hired between June 26, 2010 and December 31, 2012, and for classic members hired after January 1, 2013, the basic benefit will be 2.5 percent of “final compensation” for each year of credited service upon retirement at age 55. For employees (new CalPERS members) hired on or after January 1, 2013, the basic benefit will be 2 percent of “final compensation” for each year of credited service upon retirement at age 62. If retirement is earlier than age 60 (62 for new members), the percentages of "final compensation" for each year of service are decreased. Benefits from the State system will be coordinated with benefits from Social Security.

"Final compensation" is based upon the highest one-year final compensation (excluding overtime) earned by a member immediately preceding the effective date of retirement. For new members final compensation is the highest average year of compensation based on a consecutive 36 months (highest 3 years). A minimum service retirement allowance of $100 per month is guaranteed when retirement occurs at age 55 or later with 10 or more years of service.

C. Disability Retirement

An employee becoming disabled to the extent that he/she is incapable of performing his/her duties shall be eligible for disability retirement, provided he/she has at least five years of service. Employees may get the details on disability retirements by contacting CalPERS Member Service Division.

D. CalPERS Death Benefits

Under the District’s Contract with CalPERS, an employee’s beneficiary (or estate) will receive death benefits from CalPERS depending on the election. CalPERS may be contacted for detailed information on the benefits.

E. Termination of Employment

Upon termination of employment, an employee with five or more years of service may either leave his/her contributions with the System and receive, upon attaining retirement age, the retirement benefit he/she has earned, or he/she may withdraw his/her contributions (plus interest), thus terminating his/her membership in the System and receiving no retirement benefits. Except (1) a member with less than five years of service shall not have the privilege of leaving his/her contri-butions with the System, but shall automatically have his/her contributions (plus interest) refunded upon termination of employment; and (2) a member who is transferring to employment with another agency, which is covered under the System, shall not have the right of withdrawing his/her accumulated contributions.


F. Contributions Employees in the 3 percent at 60 or 2.5 percent at 55 benefit groups (referred to as “classic member employees”) are required by PERS to contribute 8 percent of the employee's gross salary, exclusive of overtime minus $133.33. All employees hired on or after January 1, 2013, that are classified as “new members” are required to pay 50 percent of the expected normal cost rounded to the nearest one quarter of a percent as their contribution. The normal cost is determined on an annual basis by CalPERS and is determined through an actuarial valuation of the plan. Padre Dam also contributes additional sums (employer costs) toward the cost of the CalPERS benefits. In addition, Padre Dam bears the entire cost of prior service benefits. All District contribution rates are established and are subject to revision by the Board of Administration of CalPERS.

G. Military Service Credit as Public Service Employees may elect to purchase up to four years of service credit for any continuous active military or merchant marine service prior to employment with Padre Dam. Interested employees may obtain cost information by contacting CalPERS Member Services Division. At the employee’s direction, payments may be made by payroll withholding.

11.14.3 Federal Social Security Social Security Insurance (OASI) is required by law for every Padre Dam employee under an arrangement with the State of California Public Employees' Retirement System and the Federal Insurance Contribution Act. Costs are shared equally between Padre Dam and employees. The amount paid by the employee is the prevailing rate as prescribed by Federal Law. Retirement benefits under Social Security are payable according to the schedule published by the Social Security Administration. 11.14.4 Insurance Benefits for Retirees For clarity purposes, an employee is placed into a retirement tier based on their hire date only if they are eligible for medical benefits on that hire date. If an employee is hired that does not have medical benefits, they are not placed into a Retirement Tier until the date they become eligible for medical benefits. The date of eligibility becomes the date used to determine which Tier they are placed into. A. Retiree Medical Benefits for District Employees Hired Before August 27, 2002 (Tier 1)

Eligible employees hired before August 27, 2002 shall have the option of retiring with fully paid medical benefits for themselves and their spouses or domestic partner (as defined by California Family Code §297) if they are at least 50 years of age and have at least five years of service with Padre Dam, and their age plus years of service equal 65

OR the employee may opt into Tier 2.

B. Retiree Medical Benefits for District Employees Hired After August 27, 2002 and before August 8,

2006. (Tier 2)


For all eligible employees hired after August 27, 2002, and before August 8, 2006 (and those eligible for Tier 1 who opt into Tier 2), Padre Dam will continue to pay premiums upon existing life insurance and health insurance provided for District employees and his/her spouse/domestic partner (as defined by California Family Code §297), at the same percentage as paid for District employees, for any employee who has voluntarily retired from Padre Dam and meets the following age and years of service requirements:

Minimum Age Years of Service 50 20

51 19 52 18 53 17 54 16 55 and older 15 Any employee who voluntarily retires from Padre Dam and does not meet the age and years of service requirements, may optionally purchase health insurance based on the following formula: Age Years of Service Retiree Pays

50 19 10 percent of Monthly Premium 50 18 15 percent of Monthly Premium 50 17 20 percent of Monthly Premium 50 16 25 percent of Monthly Premium 50 15 30 percent of Monthly Premium 55 10 30 percent of Monthly Premium 55 11 25 percent of Monthly Premium 55 12 20 percent of Monthly Premium 55 13 15 percent of Monthly Premium 55 14 10 percent of Monthly Premium

The amount the retiree is required to pay is the percentage listed under “Retiree Pays”, in addition to the contribution required based on the same percentage that current District employees pay.

Retirees under this section may purchase dental and vision (if available) insurance at 100 percent of the premium cost to Padre Dam. Retirees must pay their share of the monthly premiums at least on a quarterly basis. It is the responsibility of the retiree to pay their obligation on a timely basis. No statements will be sent from Padre Dam to the retiree reminding him/her of the obligation. Any monies not received by the 15th of the month in which the payment is due will disqualify the retiree from continuing the dental and/or vision insurance and may not be reinstated in the future. C. Retiree Medical Benefits for District Employees Hired after August 8, 2006 (Tier 3) Eligible employees hired after August 8, 2006, shall have the option of retiring under either: Option 1: For all employees hired after August 8, 2006, Padre Dam will contribute up to $600 per month toward the existing health insurance program provided for Padre Dam employees, and paid by Padre Dam toward current employee health insurance, as it may be amended by meet and confer, for both the


employee and his/her spouse/domestic partner (as defined by California Family Code '297), at time of retirement, based on the following schedule. Retirees must pay their share of the monthly premiums at least on a quarterly basis. It is the responsibility of the retiree to pay their obligation on a timely basis. No statements will be sent from Padre Dam to the retiree reminding him/her of the obligation. Any monies not received by the 15th of the month in which the payment is due will disqualify the retiree from continuing the medical benefits and may not be reinstated in the future. This applies to employees who voluntarily retire, based on the following age and years of service requirements:

Minimum Age Years of Service

50 20 51 19 52 18

53 17 54 16 55 and older 15

Option 2: For those employees who reach the age of 60 prior to voluntarily retiring, with at least 15 years of service with Padre Dam, Padre Dam will contribute on behalf of the retiree and spouse or surviving spouse/domestic partner up to the maximum paid for the highest cost HMO Plan.

Said payments for retiree and spouse shall cease upon the retiree becoming Medicare eligible. In Tier 3, if an employee does not have 15 years of service with Padre Dam upon retirement, there are no retiree medical benefits.

Surviving Spouse Benefits: If a retiree dies between ages 55 and Medicare eligibility, the surviving spouse

will continue to receive up to $300 per month for payment of healthcare insurance until reaching Medicare eligibility or for a maximum of 10 years, whichever occurs first under the same conditions as defined above, at which time all coverage shall cease.

Retirees under this section may purchase dental and vision insurances (if available) at 100 percent of the

premium cost to the District. Retirees must pay their share of the monthly premiums at least on a quarterly basis. It is the responsibility of the retiree to pay their obligation on a timely basis. No statements will be sent from the District to the retiree reminding him/her of the obligation. Any monies not received by the 15th of the month in which the payment is due will disqualify the retiree from continuing the dental and/or vision insurance and may not be reinstated in the future.

Health insurance coverage for the retiree employee and his/her spouse/domestic partner (as defined by California Family Code §297) will be coordinated with Medicare and other benefits provided by federal and state law, and will be reduced when retiree employee and/or his/her spouse/domestic partner (as defined by California Family Code §297 qualifies for those benefits. Retirees will be reimbursed for Medicare Part B at the “standard” premium and not on the income-adjusted portion. In addition, retirees will not be reimbursed for any Medicare Part D premium.


11.14.5 Insurance Benefits for Spouses or Domestic Partners of Retired Employees A. Padre Dam will continue to pay, after retirement of an employee, under the same terms and

conditions set forth in Sections 11.14.4(A) and (B), respectively, the premiums upon existing health insurance provided the spouses or domestic partners of said employees at the time of retirement.

B. Health insurance coverage for the spouse or domestic partner of a Padre Dam retiree will be

coordinated with Medicare and other benefits provided by federal and state law, and will thereby be reduced when the spouse or domestic partner qualifies for those benefits.

C. Upon the death of a Padre Dam retiree, health insurance coverage for the spouse or domestic partner

will be continued, provided the spouse or domestic partner keeps Padre Dam informed of his/her name, address and marital status. In the event such spouse or domestic partner remarries, his or her eligibility for such coverage ceases immediately and shall be terminated. This section is under the limitations defined in Section 11.14.4(C).

D. As used herein, "spouse" shall mean the spouse of the employee at the time of the employee's

retirement and “domestic partner” shall mean those individuals as defined by California Family Code §297 at the time of the employee’s retirement.

E. The surviving spouse or domestic partner of an employee who dies prior to retiring and who has met

the terms and conditions necessary for retirement and health coverage provided in Section 11.14.4 and 11.14.5, respectively, shall be provided the same coverage for the surviving spouses or domestic partner’s lifetime as though the death had occurred after retirement of the employee, subject to the limitations defined in Section 11.14.4(C).

11.14.6 Insurance Benefits for Dependents of Employees (Tier 2 & 3) Employees who retire after August 27, 2002 (Tiers 2 and 3) may, at the time of retirement, purchase health, dental and vision (if available) insurance for any additional dependents at the same premium which Padre Dam pays its providers. Retirees must pay the monthly premiums at least on a quarterly basis. It is the responsibility of the retiree to pay the premiums on a timely basis. No statements will be sent from Padre Dam to the retiree reminding him/her of the obligation. Any premium not received by the 15th of the month in which the payment is due will disqualify the retiree from continuing the dependent insurance and may not be reinstated in the future. Upon the death of a retired employee, health, dental and vision (if available) insurance coverage for the dependents will be continued, under the same terms and conditions allowed by the insurance provider, provided the dependents keep Padre Dam informed of his/her name, address and dependent status and meet the obligations set forth above. In the event other coverage is available to dependents due to the remarriage of the surviving parent, his or her eligibility for such coverage ceases immediately and shall be terminated. As used herein, "dependent" shall mean the dependent children (as defined by the insurance provider) of the employee at the time of the employee's retirement. The dependents of an employee who dies prior to retiring and who has met the terms and conditions necessary for retirement and health coverage provided in Sections 11.14.4 and 11.14.5, respectively, shall be provided the same coverage for the dependent as though the death had occurred after retirement of the employee. The terms and conditions provided in Section 11.14.4 shall apply to the dependents.


11.14.7 Insurance Benefits for Out of Area Retirees Should a retiree or surviving spouse/domestic partner of a retiree who retired under Section 11.14.4(A) or 11.14.4(B) move outside the service area of any insurance plan offered by Padre Dam, Padre Dam will reimburse the retiree or surviving spouse/domestic partner, upon proof of insurance and premium payment, up to the maximum paid for the highest cost HMO Plan for non-Medicare eligible recipients or the highest cost Medicare Supplement Plan for Medicare eligible recipients, whichever of these two plans is higher. 11.14.8 Voluntary Elimination of Retiree Coverage Retirees who reside outside the State of California and are unable to utilize benefits under the coverage programs of the District may waive all coverage under those benefits. The District and the retiree will evenly share in any resulting premium cost savings to the District. The savings will be distributed quarterly and will be taxable to the retiree. If the retiree returns to the area and desires to be reinstated to a program offered by Padre Dam, they will be reinstated so long as the insurance company allows the reinstatement. If the insurance company does not allow reinstatement, the retiree may purchase insurance and be reimbursed by Padre Dam as provided in Section 11.14.7. 11.14.9 Other Benefits Retirees may participate in established social functions of Padre Dam on the same basis as active employees. Retirees may also utilize the recreational facilities of Santee Lakes Recreation Preserve on the same basis as active employees. Park entry fee will be waived for active employees/retirees and their immediate family members. The fishing fee will be waived for retired employees only. Family members must be accompanied by District employee/retiree with proper ID badge in order for the Park entry fee to be waived. 11.15 VEHICLE SAFETY The purpose of this policy is to ensure the safety of those employees who drive District vehicles and to provide guidance on the proper use of District Fleet Vehicles. 11.15.1 District Vehicles Employees operating District vehicles are responsible for their safe operation in accordance with the State law and District Safety Rules and Regulations. Many job classifications require daily or periodic operation of District vehicles. Employees who are required to operate District vehicles in performance of their jobs, either on a daily or periodic basis, are required to hold a valid California driver's license for the class of vehicle being operated. The following guidelines apply to all employees driving District vehicles: 1. District vehicles are to be driven by authorized employees only, including repair testing by a

mechanic. 2. Any employee who has their driver’s license revoked or suspended shall immediately notify the

Safety & Risk Manager. The revocation or suspension of a license by the State of California for any reason may be sufficient cause for dismissal for any employee who may be required to drive as part of their job duties, although reasonable accommodations will be made if the revocation/suspension is the result of a disability.


3. All accidents in District vehicles, regardless of severity, must be reported to the Safety & Risk Manager. Accidents are to be reported immediately (from the scene, or as soon as practicable if reporting from the scene is not possible). Failure to stop after an accident and/or failure to report an accident may result in disciplinary action.

4. Employees must report all parking or traffic tickets received during the operation of a District vehicle, or while driving their personal vehicle on District business to the Safety & Risk Manager within 72 hours. Parking and traffic citations, except due to faulty equipment, are the employee's responsibility.

5. All employees operating or riding in a District vehicle must wear seat belts, in accordance with state law.

6. No employee should operate a District vehicle when his/her ability to do so safely has been impaired by illness, fatigue, injury, alcohol, drugs or prescription medication.

7. It is the responsibility of all drivers to ensure the vehicle they are operating is well maintained and safe to operate. Each day, prior to operation, drivers should perform a vehicle inspection confirming the vehicle is safe to operate. Inspection items should include, but not be limited to:

a. Fluid levels b. Oil or Grease leaks around or under the vehicle c. Belts and hoses (cracks, swells , wear and tear) d. Suspension e. Tires (inflation and tread wear) f. Headlights, brake lights, turn indicators, hazard flashers, reflectors g. Mirrors (condition, cleanliness, adjustment) h. Wipers and Washers, A/C, heater, defroster(s) i. Brakes j. Exhaust k. Steering l. Instrument Cluster readings gauge m. Appropriate safety equipment

If defects are noted, drivers must take appropriate action to ensure defects are corrected. Defensive Driving It is each driver’s responsibility to drive defensively and prevent collisions when operating a District vehicle. A defensive driver is constantly monitoring and evaluating the driving situation, making necessary adjustments to be prepared for every situation. The following defensive driving habits may help prevent vehicle crashes:

• Constantly scan traffic conditions ahead, to each side and behind you. • Use your communication devices such as brake lights, turn signals and flashers to ensure other

road users know your intended actions. • Keep your mind on driving. • Use accelerator and brakes smoothly. • Use your horn as a warning sign only. Do not assume it will stop or correct a potentially

dangerous situation. • Slow down before you enter a curve and accelerate gradually as you round it. • Pre-set temperature and radio controls.


• Clear windows of frost, ice or debris before driving. • Comply with all posted signs and speed limits. Speed limits are defined as the maximum safe

speed in optimal conditions. • Drive for conditions. In inclement weather, slow down and allow for increased stopping distances

and poor visibility. The District intends to install telematics/GPS vehicle tracking devices in all District-owned vehicles for the following purposes:

• To provide a fleet management solution for all District-owned vehicles. • To capture vehicle data relating to the engine, the drivetrain, the instrument cluster, and other

subsystems to promote the safe operation and healthy and running status of all District-owned vehicles.

• To provide for the efficient auditing of vehicle use. • To provide accurate, objective data in cases of alleged misuse or other vehicle-related issues.

Once all District vehicles are equipped with Global Positioning System (GPS) and telematics via an Event Data Recorder (EDR), the District may utilize the telematics/GPS devices within District-owned vehicles to increase efficiencies, promote employee safety, enhance service delivery, and improve vehicle utilization. The District does not intend to use audio or video telematics. The telematics/GPS device and any associated data collected through the devices are the property of the District and the District reserves the right to review the information generated by the device for any reason or no reason. Data collected will be maintained for a minimum of two years in order to meet retention guidelines. The District does not intend to use telematics/GPS devices for routine continuous “minute-by-minute” monitoring and no specific employee, division, or department will be selected for tracking. Vehicles entered into the tracking software system will be identified by vehicle number and or generic name (“Pump Tech 1, Pump Tech 2”, etc.) and will not include employee name for privacy purposes. Typical uses of the available data may include, but not be limited to:

• To receive vehicle maintenance reminders based upon time or distance and to receive engine status data for all major engine protocols. Generally, the system will be used for automated tracking of vehicle health and maintenance, mileage and implementation of an integrated fuel management system. Vehicle preventative maintenance and corrective maintenance alerts will be utilized to provide early warning of mechanical issues to District Equipment Mechanics for action. Additional evaluation may be needed to determine if fuel efficiencies exist.

• Analysis of vehicle routing for the purpose of creating the most efficient vehicle routes and work schedules. Vehicle location may be used to locate a vehicle in the field during an emergency/urgent event. Location may be used to coordinate work. Customer Service may request the vehicle location to determine which vehicle is available to respond to a customer’s request. In order to provide an expedited response, vehicle location may be displayed in the Operations Control Room and in the Customer Service Area to see what vehicles may be in an area where an urgent need exists.

• If the District receives a complaint from a customer, another employee or law enforcement, the District may utilize location information to confirm or deny that a specific vehicle was in the area in question.


• Vehicle speed tracking will be done on a case-by-case basis. If there is a personnel complaint, a workplace investigation, a complaint from a customer, peer or vendor, an evaluation of an employee’s speed may occur. Employees will be verbally counseled upon a first offense. Future offenses will follow the District’s discipline policy outlined in Section 11.7.17. Additionally, the Accident Review Board may request a speed evaluation.

• Unsafe practices such as hard braking or accelerating, excessive vehicle idling and use of the vehicle outside of Padre Dam’s service area will be evaluated on a quarterly basis for training purposes by the Director of Operations and the Safety and Risk Manager. The District is aware of some instances where idling is required. If additional training is required in this area, an employee will receive training. After the training has occurred, any future offenses will follow the District’s discipline policy outlined in Section 11.7.17.

Vehicles are tracked via software provided by the tracking units' vendor. Human Resources will approve installation of the software on each designated user’s computer who is authorized to monitor or review the information collected. All users will be aware and abide by this policy when using the software. Use of data generated by the tracking system for disciplinary purposes will be consistent with existing District disciplinary procedures.

Authorized User’s include the following: • Director of Human Resources & Administration • Director of Operations & Water Quality • Director of AWP • Director of Park & Recreation • Operations Manager • Assistant Operations Manager • Distribution Maintenance Manager • Distribution Maintenance Supervisor • Customer Service Manager • Engineering Manager (Development Services) • Engineering Supervisor (Development Services) • Plant Manager • Safety & Risk Manager

The above users may select one person in their department to be their “back-up” in the event they are out of the office. The above users will also have access to the List of Vehicles and Associated Drivers of those vehicles.

Employees should have no expectation of privacy in when operating a District-owned vehicle, including the information being collected, and/or information on their location while operating the District-owned vehicle. These devices are installed by the District and employees are not to disable the device for any reason. Tampering with or disabling the EDR device may result in disciplinary action. Employees operating District vehicles are responsible for their safe operation in accordance with the State law and District Safety Rules and Regulations. Many job classifications require daily or periodic operation of District vehicles. Employees who are required to operate District vehicles in performance of their jobs, either on a daily or periodic basis, are required to hold a valid California driver's license for the class vehicle being operated. The revoking or suspending of that license by the State of California for any reason may


be sufficient cause for dismissal. Traffic citations, except due to faulty equipment, are the employee's responsibility. 11.15.2 Accident Prevention District management is concerned about the health and safety of all employees, and employees are expected to share that concern by practicing safe working habits for their own benefit as well as that of their fellow employees. District policy and federal law requires that employees be provided places of employment free from recognized safety hazards, together with proper tools and equipment necessary to accomplish their work assignment in as safe a manner as possible. Padre Dam will conduct on-the-job safety and first aid programs for all employees. Employees are expected to notify their supervisors immediately whenever they have a question that concerns safety. (NOTE: See Section 13, District's Safety Policy and General Rules.) 11.15.3 Personal Vehicles for District Business Employees operating personal vehicles while conducting District business are responsible for their safe operation in accordance with State law and District Safety Rules and Regulations. Employees under this section are required to hold a valid California driver’s license and be able to show proof of financial responsibility in amounts not less than those required by the State of California. 11.15.4 Accident Investigation and Procedure Padre Dam shall establish an Accident Review Board consisting of the Safety and Risk Manager, the Director of Human Resources, a PDEA or MMCA representative and the Department Director of the affected Department. The Accident Review Board shall review the circumstances of any accidents involving District owned property or equipment or accidents involving employees driving their own vehicles while on District business. When an employee is involved in an accident, after making sure all injured parties are properly cared for, he/she should immediately notify law enforcement, his/her Supervisor and the Safety and Risk Manager, and should not make any statement concerning the responsibility for the accident to anyone but a District representative. This applies to accidents that occur on public or private property. Cooperation should be extended to law enforcement officers. The Safety and Risk Manager, with the assistance of the appropriate Supervisor, will conduct an accident investigation within 48 hours of the accident. The intent of the investigation will be to determine causal factors based on the driver’s legal responsibility as defined by State law, and the driver’s responsibility based on the preventability concept of defensive driving. The accident investigation, law enforcement traffic collision reports, when available, driver and witness statements and any other pertinent information shall be submitted to the Accident Review Board to assist in its determination. All accidents will fall into one of the following categories: A. Category I: Non Preventable Accident is one which the employee could not have reasonably

prevented due to the circumstances of the situation. Typically, these are accidents caused by the other party. Included in this category are those types of accidents when a vehicle sustains damage from other than the operation of the vehicle; for instance, a parked vehicle is struck by a tree limb or a golf ball.


B. Category II: Preventable Accident in which one or more of the following occurred:

1. The accident could have been prevented by utilizing defensive driving techniques. These types of accidents usually result because of misjudgment of clearance or not anticipating the other vehicle’s movements.

2. No personal injury to the employee or another person. 3. Vehicle and/or property damage to District or others’ property, except a personal auto used for

District business, is less than $1,000. C. Category III: Preventable Accident in which one or more of the following occurred:

1. The employee violated the Vehicle Code or a District departmental rule, policy or procedure. 2. The accident resulted in injury to the employee or another person involved in the accident. 3. Vehicle and/or property damage to District or others’ property, except a personal auto used for

District business, is greater than $1,000.

D. Category IV: Preventable Accident in which the employee failed to exercise reasonable care and whose actions disregarded the safety of people and property.

After the Accident Review Board meets, the Department Head or designee shall recommend discipline in accordance with Section 11.7.17. 11.16 SKILL ENHANCEMENT & EDUCATION ASSISTANCE PROGRAM In order to promote educational incentives for District employees and assist them to become more effective in their positions, Padre Dam offers a Skill Enhancement Program. It is expected that by participating in this program, employees will be better prepared and more knowledgeable in performing their jobs and assisting Padre Dam in serving our customers. The Skill Enhancement Program encourages employees to seek out pre-approved job enhancing certifications and education, and will recognize and reward employees upon satisfactory completion of such certifications and educational courses. Specific conditions to be met by a participating employee for the Skill Enhancement Program are as follows: Eligibility: A. Full-time regular employee; B. Monetary awards for probationary employees will be paid upon successful completion of probation.

1. Probationary employees may be reimbursed prior to successful completion of probation for Class A permit and/or license.

C. Part-time regular employees who work a minimum of 20 hours per week will receive reimbursement at 50 percent of the amount given to full-time regular employees.

Criteria: A. All certifications and educational courses must be pre-approved by the Department Head and

General Manager for each employee; B. Certifications and educational courses must be on the approved list; C. Certifications and educational courses are taken on the employee’s own time unless pre-approved

by the Department Head;


D. Employees must provide evidence of satisfactory completion of certification or at least a “C” or “Pass” for educational courses through a record transcript from the institution;

E. All awards are one time only and may not be awarded as certifications are renewed; F. Employees who receive more than one college degree are only entitled to a one-time incentive for

the lower degree and the difference between the incentives for a lower and higher degree. Program Monitoring: Certifications and educational courses will be reevaluated periodically. In addition, the program will be monitored periodically for its effectiveness. The Skill Enhancement Program shall be reevaluated periodically. The program will be reviewed for effectiveness, changes in the certifications required, and relevant educational courses based upon new and/or changing technologies. 11.16.1 Education Assistance Program Each fiscal year, Padre Dam will refund tuition fees spent by employees who take courses through recognized colleges, universities and on-line schools during that fiscal year to a maximum of the annual full-time under-graduate tuition cost at San Diego State University. “Full-time tuition” is defined as the fall and spring semesters for under-graduate studies regardless of the level of studies being undertaken by the employee. Padre Dam will also reimburse, in full, all educational expenses required by the courses (i.e., books, fees, lab supplies, etc.) No tuition refund will be made later than three months after the completion of the course. Reimbursement will apply to the Fiscal Year in which the class was taken/started. Reimbursement may be in the form of payment to the employee or direct payment to the school attended. It is the intention of Padre Dam that the Educational Assistance Program qualify as a plan providing qualified educational assistance under Section 127(b)(1) of the Internal Revenue Code and that educational assistance under the Plan be eligible for exclusion from the Employees income under Code Section 127(a). Any educational assistance in excess of $5,250 in a calendar year is not eligible for exclusion from Employees income under the Code Section 127(a). Courses not specifically related to work performed at Padre Dam but required to obtain a pre-approved college degree that does relate to work performed at Padre Dam may be reimbursed as described above. Course work and/or degrees not specifically related to the work currently performed at Padre Dam but related to other positions within Padre Dam may be reimbursed, upon prior approval by the Department Head and General Manager, at 50 percent of the rate indicated above. Part-time regular employees who work a minimum of 20 hours per week will receive reimbursement at 50 percent of the amount given to full-time regular employees. Employees are required to submit applications to the Department Head before starting courses for which tuition refund is requested. However, if this is not possible before enrollment, the application must be submitted no later than 30 days following enrollment. In the case of on-line courses, it is a requirement that applications for a tuition refund be submitted and approved before the employee makes a commitment. No tuition refund will be made later than three months after the completion of the course.


11.16.2 Certification Bonuses Certain job classifications require that the employee possess a specific college degree and/or certification issued by a recognized certifying entity (e.g., Department of Health, AWWA, CWEA, State of California, etc.). In several additional classifications, certification is not a prerequisite but advancement within those classifications is dependent on obtaining certain specific levels of certification or education. Other courses and/or certifications provide knowledge for employees to perform their duties more efficiently and to improve District services. These are referred to as “job specific” certifications or trainings. Coursework that is reimbursed under Section 11.16.1 at 50 percent of the tuition reimbursement rate is considered “job enhancement.” The designation of “job specific” or “job enhancement” shall be at the discretion of the department head. Padre Dam shall pay the cost of obtaining any required licensing or certifications. Cost for parking at the test site is not included in reimbursement from Padre Dam. Padre Dam is interested in providing employees the opportunity to qualify for new classifications when openings are available and advance within their present classifications. For this reason, a one-time cash incentive plan for certification has been established for those interested employees. The incentive plan is subject to District needs and requires Department Head and General Manager approval, which approval shall not be unreasonably withheld. If an employee is denied a request for certification incentive, an appeal may be presented to the appropriate representation group for discussion and resolution.

Water Treatment Operator (SWRCB)

Water Distribution Operator (SWCRB)

Grade I $100.00 Grade II $125.00

Grade III $150.00 Grade IV $275.00 Grade V $375.00

Grade I $100.00 Grade II $125.00 Grade III $150.00 Grade IV $275.00 Grade V $375.00

Plant Maintenance Certificate (CWEA) Wastewater Treatment Plant Operator (SWCRB)


Grade III $150.00 Grade IV $175.00

Grade I $100.00 Grade II $125.00 Grade III $150.00 Grade IV $275.00 Grade V $375.00

Collection Systems Maintenance Certificate (CWEA)

Laboratory Analyst Certificate (CWEA)

Grade I $100.00 Grade II $125.00 Grade III $150.00 Grade IV $275.00


Grade III $150.00 Grade IV $175.00


Plant Maintenance Electrical/Instrumentation Technologist Certificate (CWEA)

Plant Maintenance Mechanical Technologist Certificate (CWEA)



Advanced Water Treatment (CWEA)

Grade III $100.00 Grade IV $150.00 Grade V $200.00

Miscellaneous Water/Construction Related Certifications Backflow Tester $100.00 Cross-Connection Specialist $100.00 Environmental Compliance Inspector I $100.00 Instrumentation Society of America Certificate $100.00 Automotive Service Excellence Master Certification $250.00 Certified Control System Technician (CCST) $150.00

Water Conservation Practitioner I $100.00 Electrician Certification (CA) $275.00 Crane Operator (CA) $150.00 Underground Storage Tank Operator (CA) $100.00 Confined Space Training (Cal-OSHA) Certified $100.00

Engineering/Construction Certificates Engineering-in-Training $250.00 Professional Engineering License $500.00 Certified Construction Inspector $100.00 Construction Specification Institute $100.00 Certified Construction Manager (CMAA) $250.00 NACE Coating Inspector-Level I $100.00 NACE Coating Inspector Level 2 $150.00 NACE Coating Inspector Level 3 $250.00

NACE Certified Coating Inspector $100.00 NACE Cathodic Protection Tester $100.00 NACE Cathodic Protection Technician $150.00 IRWA Right of Way Novice $250.00 IRWA Right of Way Intermediate $250.00 IRWA Right of Way Senior/Advanced $250.00

Accounting/Finance Certificates Certified Public Accountant $500.00 ACWA Customer Service Certification $250.00

Fundamental Payroll Certification (APA) $100.00 Certified Payroll Professional $150.00 Notary Public $50.00

Computer Training/Certificates Comp TIA Specialty Series $100.00 Comp TIA Professional Series $150.00 Comp TIA Mastery Series $200.00 Ubiquiti Network Cert (Any 1 Cert) $150.00 ArcGIS Desktop (Any 1 Cert) $150.00 ESRI Administration Professional or Geodata Mgmt Professional (Any 1 Cert) $150.00 ArcGIS Specialty Cert (Any 1 Cert) $150.00

MS Cert Associate/Specialist $100.00 MS Cert Expert $200.00 MS CertMaster $250.00 VMware Professional $100.00 VMware Advanced Professional $175.00 VMware Expert $250.00 OnBase Certification (Any 1 Cert) $150.00


Special District Certificates Special District Board Management Certification $150.00

Special District Leadership Certification Program (ACWA/CSDA) $250.00

Human Resources/Safety and Risk Certificates Associate Risk Manager $300.00

Human Resources Certified Professional (CP) (IPMA or SHRM) $150.00 Human Resources Certified Professional (SCP) (IPMA or SHRM) $150.00

Miscellaneous Certificates Certified Park & Recreation Professional $150.00 Certified Park & Recreation Executive $250.00 Project Management Professional (PMP) $250.00

Qualified Applicator’s Certificate $100.00 Qualified Applicator's License $150.00 PD Management Readiness Training (Module One) $150.00 Design Build Institute of America (DBIA) $250.00

College Degrees* Job Specific Job Enhancing Associate in Arts/Science* $500.00 $350.00 Bachelor in Arts/Science* $1,000.00 $700.00 Master of Arts/Science* $500.00 $350.00 Doctor of Philosophy/Science* $500.00 $350.00 Accredited College Certificate Program (1 Per employee)

$250.00 $125.00

* It is understood that there will not be a combining of degrees for incentives. For example, if an Associate’s degree is part of the Bachelor’s degree program, employees will be eligible for the incentive for the Bachelor’s degree, not both the Associate’s and Bachelor’s degrees. However, if an employee receives two degrees where the lower degree is not a part of the higher degree program; employees are only entitled to a one-time incentive for the lower degree and the difference between the incentives for a lower and higher degree. 11.17 EMPLOYER-EMPLOYEE RELATIONS

The State legislature has provided in the Government Code for "public employee organizations." Resolution No. 79-142 of the Board of Directors has established rules and regulations for the administration of employer-employee relations. For formal recognition, an employee organization must comply with its provisions.

(NOTE: See Section 12 for details of Employer-Employee Relations Policy.) 11.18 This section intentionally left blank 11.19 AUTOMATIC DEPOSIT AND SAVINGS PLAN Through arrangements with certain local banks, employees are required to deposit their net pay into their personal checking or savings accounts. Arrangements for automatic deposits may be made by contacting Padre Dam's Human Resources Department.


11.20 EMPLOYEES DEFERRED COMPENSATION PLAN Padre Dam has established the Padre Dam Municipal Water District Employees Deferred Compensation Plan, which enables employees to defer portions of their present compensation in order to provide supplemental retirement benefits at a later date. At the same time, state and federal income taxes are lowered. Depending on the plan option chosen 457(b) or 457 Roth, the amount deferred and interest earned thereon may not be subject to federal or state income taxes until monies are actually received. Details of the plan and participation agreement are available to all employees upon request. 11.21 SAFETY SHOE ALLOWANCE Effective July 1, 2017 and each fiscal year thereafter, Padre Dam will provide an annual allowance of actual cost not to exceed $250.00 to each employee who elects to wear hard-toe steel safety shoes on the job for foot protection as approved by the Safety and Risk Manager. Full-time permanent Field Service Technicians may elect to purchase either hard-toe steel safety shoes as defined above or will be provided with an allowance of $75 every six months for walking shoes. Part-time and temporary employees will receive a pro-rata amount for their annual allowance if the position they hold requires them to wear safety shoes; as determined by their department head. 11.22 EMPLOYEE BENEFIT GUIDE (BIG) The employee benefits described in this section are merely a general summary of benefits provided. The actual insurance policies and contracts define and govern the specific benefits and eligibility re-quirements. Written materials containing detailed information may be obtained from Human Resources. 11.23 DISTRICT “NO SMOKING FOR GOOD HEALTH” POLICY Padre Dam is committed to a philosophy of good health and safety in the work environment. In keeping with this philosophy, it is essential that all indoor work places reflect Padre Dam’s concern for good health and safety. Therefore, smoking and/or vaping is not permitted in any buildings, facilities, vehicles, or any other indoor work area, under any circumstances. Employees who wish to smoke or vape must limit such smoking/vaping to outside designated smoking areas where there is adequate ventilation to prevent smoke from entering non-smoking areas. This policy shall apply to both employees and non-employees alike. 11.24 EMPLOYEE ASSISTANCE PROGRAM Full-time regular employees and their dependents are covered by an Employee Assistance Program paid for by Padre Dam. This program is available to assist employees who are experiencing personal problems which may be affecting their job performance. This program is available on a self-referral basis.


11.25 PERSONNEL FILES Each employee shall, during normal business hours, and upon reasonable advance notice, have the right to review and inspect his/her own personnel file in the Human Resources Department. The employee shall retain the right to respond in writing to any item placed in his/her personnel file and have that response made a permanent part of said file. In addition, should any employee so request, one copy will be made available to the employee of any document which the employee has signed. The employee may also, at his/her own expense, copy any other item from his/her personnel file. The only other persons permitted to have access to the contents of the employee's personnel file are a designated representative of the employee having the employee's signed authorization, Padre Dam's authorized staff, and any persons so designated in a court issued subpoena duces tecum. Employees shall receive a copy of any disciplinary action or adverse material related to job performance which is placed in an employee's personnel file at the same time that it is placed in the personnel file. 11.26 DRUG & ALCOHOL POLICY 11.26.1 Policy It is Padre Dam Municipal Water District’s (District) policy to prevent and eliminate substance abuse and its effects in the workplace. Additionally, effective January 1, 1996, the District must comply with the United States Department of Transportation (DOT) regulations implementing the Federal Omnibus Transportation Employee Testing Act of 1991 (the “Act”), which are codified in 49 C.F.R. Part 40 and must comply with the regulations of the Federal Motor Carrier Safety Administration (FMCSA), codified in 49 C.F.R. Part 382. Adoption of a policy is mandated under these regulations. Employees should familiarize themselves with the provisions of this Policy because compliance with this Policy is a condition of employment. Employees shall refer any questions regarding his/her rights and obligations under this Policy to the Director of Human Resources & Administrative Services. This person can be reached at 619-258-4656. 11.26.2 Procedures This policy applies to all employees of, and to all applicants for, employment with the District. This policy applies to alcohol and all controlled substances, drugs or medications (legal or illegal) that would impair an employee’s ability to effectively and safely perform the functions of the job. It is the District’s policy that employees shall not: be under the influence of, or in the possession of, alcohol or drugs; possess alcohol or drugs at work locations or while on duty; sell or provide drugs or alcohol to any other employee or to any person while such employee is on duty; or have their ability to work impaired as a result of the use of alcohol or drugs or medications. Some of the drug and alcohol testing procedures required in this policy are mandated by the DOT and FMCSA regulations preventing use of prohibited drugs and alcohol misuse by employees required to have a commercial driver’s license to operate commercial vehicles.


District employees who operate any of the following commercial motor vehicles are "covered employees" and subject to the DOT/FMCSA provisions of this Policy: 1. A vehicle with a gross weight rating or gross combination weight of at least 26,001 pounds inclusive

of a towed unit(s) with a gross vehicle weight of at least 10,000 pounds. 2. A vehicle with a gross vehicle weight rating or gross vehicle weight of at least 26,001 pounds. 3. A vehicle designed to transport 16 or more passengers, including the driver. 4. A vehicle used to transport any hazardous material found in the Hazardous Materials Transportation

Act, codified in 49 U.S.C. 5103. Covered employee classifications are: • Construction & Maintenance Supervisor • Construction Equipment Operator • Equipment Mechanic • Utility Worker • Wastewater Collection Systems Worker • Distribution Maintenance Manager** • Distribution Maintenance Supervisor** • Facilities Maintenance Worker** • Facilities Maintenance Specialist** • Systems Operator / Technician** **Not all employees in this classification are required to have a Class A License. However, if an employee has a Class A license and wishes to retain it, the DOT/FMCSA provisions will apply.

An employee may be given a written exemption from this Policy signed by the General Manager if, although the employee's classification is listed above, the employee does not fall within the definition of "covered employee.” Pursuant to the District’s policy (not DOT/FMCSA), all employees shall be subject to the prohibitions of the pre-employment, reasonable suspicion and post-accident provisions of this Policy, but not those involving random testing unless they are "covered employees" as set forth above. 11.26.3 Safety Sensitive Positions Employees may not be under the influence or in possession of controlled substances or alcohol during work hours. Further, certain conduct is prohibited (See 11.26.4 below) while performing and prior to performing "safety sensitive functions". The following are safety sensitive functions: 1. All time at a carrier or shipper, plant, terminal, facility, or other property, waiting to be dispatched,

unless the driver has been relieved from duty by the employer. 2. All time inspecting equipment as required by the Federal Motor Carrier Safety Regulations or

otherwise inspecting, servicing, or conditioning any commercial motor vehicle at any time. 3. All time spent at the driving controls of a commercial motor vehicle. 4. All time, other than driving time, spent on or in a commercial motor vehicle (except for time spent

resting in the sleeper berth).


5. All time loading or unloading a commercial motor vehicle, supervising, or assisting in the loading or unloading, attending a vehicle being loaded or unloaded, remaining in readiness to operate the vehicle, or in giving or receiving receipts for shipments loaded or unloaded.

6. All time repairing, obtaining assistance for, or remaining in attendance upon a disabled vehicle.

11.26.4 Prohibitions Under DOT/FMCSA The following conduct is prohibited while performing and prior to performing “safety sensitive functions” and may result in discipline, up to and including termination (based on District disciplinary policies): 1. Reporting for duty or remaining on duty requiring the performance of safety-sensitive functions

while having an alcohol concentration of 0.04 or greater; 2. Performing a safety sensitive function within four hours of using alcohol; 3. Using alcohol while performing a safety-sensitive function or while on-call to perform safety-

sensitive functions; 4. Reporting for duty or remaining on duty when there is a quantifiable presence of prohibited drugs in

the body, above the thresholds determined in Part 40. Prohibited drugs include marijuana, cocaine, phencyclidine, opiates, and amphetamines;

5. Reporting for duty or remaining on duty requiring the performance of safety sensitive functions if the employee tests positive for controlled substances;

6. Refusing to submit to any required alcohol or controlled substances test. An employee who refuses to submit to a required drug/alcohol test will be treated in the same manner as an employee who tested 0.04 or greater on an alcohol test or tested positively on a controlled substances test;

7. Consuming alcohol during the eight hours immediately following an accident or until he/she undergoes a post-accident alcohol test, whichever occurs first.

11.26.5 Prohibitions Under District Policy Additionally, pursuant to the District’s Policy (apart from any violation of DOT/FMCSA regulations), the following conduct is prohibited for all employees and may result in discipline, up to and including termination: 1. Selling, or offering to sell, purchasing, using, manufacturing, transferring or possessing illegal drugs

(including legal prescription drugs for which there is no valid prescription) while on District business or on District premises, property, or vehicles.

2. Bringing illegal drug paraphernalia onto District premises, property or vehicles. 3. Reporting for work with illegal drugs or their metabolites in the body. 4. Bringing illegal drug paraphernalia onto District premises, property or vehicles. 5. Bringing alcohol onto District premises, property or vehicles. 6. Consuming alcohol within 4 hours of work or reporting to work. 7. Refusing to submit to a drug/alcohol test when requested by the District, and in accordance with this

policy. 8. Using illegal drugs (including all forms of marijuana which remains illegal under Federal law). 9. Failing to notify the District, before beginning work, when taking medication or drug(s) (whether legal

or illegal) that could foreseeably interfere with the safe and effective performance of duties or operation of District equipment. In the event there is a question regarding an employee’s ability to safely and effectively perform assigned duties while using such medications or drugs, clearance from a qualified physician may be required.


10. Using alcohol while on duty including during breaks and meal periods. 11. Reporting for duty or remaining on duty while having an alcohol concentration of 0.02 or greater. 12. Testing positive for any illegal drug on a drug test, including a prescription drug without a valid

prescription. 13. A verified alcohol test result showing an alcohol concentration of 0.02 or greater. Compliance with these rules is considered an essential job qualification for all employees. Termination of employment may occur for a violation of any of these rules, even for first offense. If the District suspects that an employee has alcohol or drugs in his/her possession or at other work locations where the District maintains control, the District reserves the right to search those locations with or without the employee’s consent. The District will conduct the search in the presence of the employee, or, if requested, an association representative provided the employee or representative is promptly available. Otherwise, the District may notify the appropriate law enforcement agency that the employee may have illegal drugs in his or her possession or in an area not controlled by the District. 11.26.6 Consequences For Employees Found To Have Alcohol Concentration Levels of 0.02 Or

Greater But Less Than 0.04 An employee whose alcohol test indicates an alcohol concentration level between 0.02 and 0.04 will be removed from his or her safety sensitive position without pay (unless the employee elects to use accrued leave) until the start of the employee's next regularly scheduled duty period, but not less than 24 hours following administration of the test. Based on the District’s Policy (not DOT/FMCSA), employees may be subject to disciplinary action if they test within this range. 11.26.7 Circumstances Under Which Drug And Alcohol Testing Will Be Imposed On Employees DOT/FMCSA requires that the District perform drug and alcohol testing on safety-sensitive employees. In addition, the District may require drug testing on all employees, including non-safety-sensitive employees. Employees will be informed whether the test is required by DOT/FMCSA or is a District test. District tests will not be conducted using DOT/FMCSA testing forms. Under the DOT/FMCSA regulations, the District will test for the following drugs: • marijuana • cocaine • phencyclidine (PCP) • opiates • amphetamines Under District policy, for a non-DOT/FMCSA test, the District may test for additional drugs. 1. Pre-Employment/Pre-Duty Testing: A negative pre-employment drug test result is required before an employee can first perform safety-sensitive functions. If a pre-employment test is cancelled, the individual will be required to undergo another test and successfully pass with a verified negative result before performing safety-sensitive functions.


If a covered employee has not performed a safety-sensitive function for 90 or more consecutive calendars days, and has not been in the random testing pool during that time, the employee must take and pass a pre-employment test before he or she can return to a safety-sensitive function. A covered employee or applicant who has previously failed or refused a DOT pre-employment drug and/or alcohol test must provide proof of having successfully completed a referral, evaluation, and treatment plan meeting DOT requirements. The District may require all applicants to undergo pre-employment drug testing. 2. Post-Accident Testing: DOT and FMCSA mandated post-accident drug and alcohol testing will be conducted on covered employees following an accident. Post-accident alcohol tests shall be administered within two hours following an accident and in no event after eight hours. A post-accident controlled substance test shall be conducted within 32 hours following the accident. An "accident" occurs when there is the loss of human life or when a State or local law enforcement authority issues a citation to the covered employee driver for a moving violation arising from the accident that involved: (i) Bodily injury to any person who, as a result of the injury, immediately receives medical treatment away from the scene of the accident; or (ii) One or more motor vehicles incurring disabling damage as a result of the accident, requiring the motor vehicle to be transported away from the scene by a tow truck or other motor vehicle. If the accident involved the loss of human life each surviving driver who was performing safety sensitive functions with respect to the vehicle will be tested, even if no citation is issued. A driver who is subject to post-accident testing shall remain readily available for such testing or may be deemed by the employer to have refused to submit to testing. This does not require the delay of necessary medical attention for injured people following an accident or to prohibit a driver from leaving the scene of an accident for the period necessary to obtain assistance in responding to the accident, or to obtain necessary emergency medical care. In addition, the District requires post-accident testing for any accident, even when such testing is not required by the DOT/FMCSA. The District defines an accident as an incident which is not subject to DOT/FMCSA-mandated post-accident alcohol or drug testing, but involves damage to District property or an injury to any person. Any employee who is involved in an accident may, at the District’s discretion, be required to submit to non-DOT/FMCSA breath alcohol testing and drug testing. The definition of “involvement” includes, but is not limited to, any employee who is operating a District vehicle at the time of the accident, who reasonably could have contributed to the injury or damage. Further, any other employee whose performance could have contributed to an accident or injury, as determined by the District using the best information available at the time of the decision, may also be required to submit to non-DOT/FMCSA alcohol and/or drug testing. 3. Random Testing: Random drug and alcohol tests are unannounced and unpredictable, and the dates for administering random tests are spread reasonably throughout the calendar year. Random testing will be conducted at all times of the day when safety-sensitive functions are performed.


Testing rates will meet or exceed the minimum annual percentage rate set each year by the FMCSA administrator. The current year testing rates can be viewed online at www.transportation.gov/odapc/random-testing-rates. The selection of employees for random drug and alcohol testing will be made by a scientifically valid method, such as a random number table or a computer-based random number generator. Under the selection process used, each covered employee will have an equal chance of being tested each time selections are made. A covered employee may only be randomly tested for alcohol misuse while the employee is performing safety-sensitive functions, just before the employee is to perform safety-sensitive functions, or just after the employee has ceased performing such functions. A covered employee may be randomly tested for prohibited drug use anytime while on duty. Each covered employee who is notified of selection for random drug or random alcohol testing must immediately proceed to the designated testing site. 4. Reasonable Suspicion Testing: All covered employees shall be subject to a drug and/or alcohol test when Padre Dam Municipal Water District has reasonable suspicion to believe that the covered employee has used a prohibited drug and/or engaged in alcohol misuse. A reasonable suspicion referral for testing will be made by a trained supervisor or other trained agency official on the basis of specific, contemporaneous, articulable observations concerning the appearance, behavior, speech, or body odors of the covered employee. Covered employees may be subject to reasonable suspicion drug testing any time while on duty. Covered employees may be subject to reasonable suspicion alcohol testing while the employee is performing safety-sensitive functions, just before the employee is to perform safety-sensitive functions, or just after the employee has ceased performing such functions. Under District policy (not DOT/FMCSA), all employees may be subject to reasonable suspicion drug and alcohol testing, any time while on duty, based on reasonable suspicion to believe that the employee has used a prohibited drug and/or engaged in alcohol misuse. Supervisors will receive 2 hours of reasonable suspicion training every other year. To ensure that supervisors are trained to make reasonable suspicion determinations, supervisors vested with the authority to demand a reasonable suspicion drug and alcohol test, the training will include at least one hour of training on alcohol misuse and at least one hour of training on controlled substances use. The training will cover the physical, behavioral, speech, and performance indicators of probable alcohol misuse and use of controlled substances. In cases where a supervisor or other District superior has reasonable suspicion to believe that an employee possesses or is under the influence of drugs and/or alcohol and such use or influence may adversely affect his/her job performance, or his/her safety or that of co-workers, alcohol and/or drug screening may be ordered. Human Resources must be notified of the incident when it occurs and will coordinate the alcohol and/or drug screening. If an employee is on medically prescribed medication which may adversely affect his/her work ability, job performance or safety of him/herself or others, it is his/her responsibility to advise his/her supervisor of this fact before he/she reports to work.

http://www.transportation.gov/odapc/random-testing-rates


Violation of this policy or failure to cooperate fully with any request to test may result in disciplinary action up to and including termination. Padre Dam will pay the full cost of any testing that it has requested of an employee, including the reasonable cost of any transportation to and from the designated testing facility. To maintain the employee's confidentiality, access to test results shall be restricted to the General Manager, or his designee, and supervisors within the employee's chain of command. 5. Return to Duty/Follow-up Testing: An employee who has violated any of the prohibitions of this Policy and is not terminated must submit to a return to duty test before he/she may be returned to his/her position. The test result must indicate an alcohol concentration of less than 0.02 or a verified negative result on a controlled substances test. In addition because studies have shown that the relapse rate is highest during the first year of recovery, the employee will be subject to follow-up testing which is separate from the random testing obligation. The employee will be subject to the amount and frequency of unannounced follow-up tests as directed by the employee's substance abuse professional, but no less than six unannounced tests during the first year back to the safety-sensitive position following the violation. 11.26.8 Procedures To Be Used For Detection Of Drugs And Alcohol All FTA drug and alcohol testing will be conducted in accordance with 49 CFR Part 40, as amended. Dilute Urine Specimen If there is a negative dilute test result, Padre Dam Municipal Water District will accept the test result and there will be no retest, unless the creatinine concentration of a negative dilute specimen was greater than or equal to 2 mg/dL, but less than or equal to 5 mg/dL. Dilute negative results with a creatinine level greater than or equal to 2 mg/dL but less than or equal to 5 mg/dL require an immediate recollection under direct observation (see 49 CFR Part 40, section 40.67). Split Specimen Test In the event of a verified positive test result, or a verified adulterated or substituted result, the employee can request that the split specimen be tested at a second laboratory. Padre Dam Municipal Water District guarantees that the split specimen test will be conducted in a timely fashion. Employees may be required to pay for the split specimen test. 11.26.9 Refusal To Submit To An Alcohol And/Or Drug Test The DOT/FMCSA prohibits the District from allowing a covered employee who refuses to submit to any required drug/alcohol testing to perform or continue to perform safety-sensitive functions, including driving a commercial vehicle. Additionally, an employee who refuses to submit to any required drug/alcohol testing, will be immediately removed from safety-sensitive duties and will be treated in the same manner as an employee who tested 0.04 or greater on an alcohol test or tested positively on a controlled substances test. It is the District’s policy (not DOT/FMCSA) that any employee’s refusal to submit to drug/alcohol testing and/or appear for any testing within a reasonable time after being directed to do so by the District constitutes a verified positive result, which may result in discipline up to and including termination.


As a covered employee, an employee has refused to test if the employee: 1. Fails to appear for any test (except a pre-employment test) within a reasonable time, as determined

by the District.

2. Fails to remain at the testing site until the testing process is complete. An employee who leaves the testing site before the testing process commences for a pre-employment test has not refused to test.

3. Fails to attempt to provide a breath or urine specimen. An employee who does not provide a urine or breath specimen because he or she has left the testing site before the testing process commenced for a pre-employment test has not refused to test.

4. In the case of a directly-observed or monitored urine drug collection, fails to permit monitoring or observation of your provision of a specimen.

5. Fails to provide a sufficient quantity of urine or breath without a valid medical explanation. 6. Fails or declines to take a second test as directed by the collector or Padre Dam Municipal Water

District for drug testing. 7. Fails to undergo a medical evaluation as required by the MRO or Padre Dam Municipal Water

District’s Designated Employer Representative (DER). 8. Fails to cooperate with any part of the testing process. 9. Fails to follow an observer’s instructions to raise and lower clothing and turn around during a directly-

observed test. 10. Possesses or wears a prosthetic or other device used to tamper with the collection process. 11. Admits to the adulteration or substitution of a specimen to the collector or MRO. 12. Refuses to sign the certification at Step 2 of the Alcohol Testing Form (ATF). 13. Fails to remain readily available following an accident. As a covered employee, if the MRO reports that an employee has a verified adulterated or substituted test result, the employee refused to take a drug test. As a covered employee, if an employee refuses to take a drug and/or alcohol test, the employee incurs the same consequences as testing positive and will be immediately removed from performing safety-sensitive functions, and referred to a SAP. 11.26.10 Consequences Of Failing An Alcohol And/Or Drug Test Following a positive drug or alcohol (BAC at or above 0.04) test result or test refusal, the employee will be immediately removed from safety-sensitive duty and referred to a Substance Abuse Professional. Following a BAC of 0.02 or greater, but less than 0.04, the employee will be immediately removed from safety-sensitive duties for at least eight hours unless a retest results in the employee’s alcohol concentration being less than 0.02. A positive result from a drug or alcohol test may result in disciplinary action, up to and including termination, under District policy. Use of medical marijuana in California remains a violation of Federal law and also violates District policy. 11.26.11 Voluntary Self-Referral Any employee who has a drug and/or alcohol abuse problem and has not been selected for reasonable suspicion, random or post-accident testing or has not refused a drug or alcohol test may voluntarily refer


her or himself to the Human Resources Department, and request leave and refer to the EAP or other available resources. Any safety-sensitive employee who admits to a drug and/or alcohol problem may be immediately be removed from his/her safety-sensitive function and will not be allowed to perform such function until an appropriate release to perform the position is obtained. 11.26.12 Prescription Drug Use The appropriate use of legally prescribed drugs and non-prescription medications is not prohibited. Medical advice should be sought, as appropriate, while taking such medication and before performing safety-sensitive duties. Employees in positions identified in Section 11.26.2, are required to report to the Human Resources Director, the use of any substance which carries a warning label that indicates that mental functioning, motor skills, or judgment may be adversely affected. 11.26.13 Compliance With State And Federal Law The intent of this Policy is to comply with current applicable state and federal law concerning drug and alcohol testing. Issues or inconsistencies that are not addressed in this Policy will be determined by referring to state and federal law and regulations governing drug and alcohol testing. The District reserves the right to make changes to this Policy at any time; without further meet and confer, for the purpose of complying with state and federal law or regulation as it exists now or as it may be amended. Employees shall refer any questions regarding his/her rights and obligations under this policy to the Director of Human Resources 11.27 PADRE DAM COMPUTER SYSTEMS 11.27.1 Definitions District – means the Padre Dam Municipal Water District, and includes all of the District’s affiliated entities, including, without limitation, all standing and ad hoc committees, and financing corporations. District Official – any elected official, officer or employee of the District. District Business – construed broadly to mean information relating to the conduct of the public’s business or communications concerning matters within the subject matter of the District’s jurisdiction, including, but not limited to, pending or potential District projects, past or prospective District agenda items, or District budgets or expenditures involving District funds. Resolution of the question will involve an examination of several factors, including: (a) the content itself; (b) the context in, or purpose for which it was written; (c) the audience to whom it was directed; (d) the purpose of the communication; and (e) whether the writing was prepared by a District official acting or purporting to act within the scope of his or her employment. Electronic Communications – any and all electronic transmission, and every other means of recording upon any tangible thing in the form of communication or representation, including letters, words, pictures, sound, or symbols, or combinations thereof, and any record thereby created, regardless of the


manner in which the record has been stored. Without limiting the nature of the foregoing, “electronic communications” include emails, texts, voicemails, and also include communications on or within commercial applications (apps) such as Facebook Messenger, Twitter, Instagram, Whatsapp, etc. Electronic messaging account – any account that creates, sends, receives or stores electronic communications. Information System Resources – any component or service used in or connected in and including the network infrastructure. Examples include switches, routers, wiring, wireless access points, printers, computers, laptops, mobile devices, storage devices and internet access. Mobile computing devices – Laptop computers, tablet computers, smart phones, electronic readers, and personal data assistants (PDA). Examples include but are not limited to Apple iPads, Android devices, electronic readers, Windows Surface and RT devices, Amazon Kindle, and Barnes and Noble Nooks. Host – Servers, Desktop computers, workstations, laptops and mobile computing devices. 11.27.2 Policy This policy describes Padre Dam’s rules and restrictions regarding the use of the District’s information system resources. The use of Padre Dam information system resources is for Padre Dam business and for authorized purposes. The policy will describe acceptable use of Padre Dam’s information system resources. Inappropriate use of information system resources exposes the District to risks including virus attacks, compromise of network systems and disruption of services, as well as potential legal liability.

11.27.3 Scope This policy applies to employees, temporary employees, contractors, consultants and other workers at the District who use information system services provided by Padre Dam. All information system users are expected to be familiar with and comply with this policy. Violation of this policy may lead to revocation of system privileges and/or disciplinary action.

11.27.4 Information System Resource Use Use of Padre Dam’s information system resources are provided for Padre Dam business purposes. Personal use of Padre Dam’s information systems is acceptable as long as it is not excessive or inappropriate, occurs during personal time (lunch or breaks), and does not disrupt the normal operation of the district, and does not result in expense or liability to Padre Dam or violate any of the limitations contained within this policy. Use is defined as "excessive" if it interferes with normal job functions, responsiveness, or the ability to perform daily job activities. Use of Padre Dam’s information systems and technology is a privilege granted by Padre Dam and may be revoked at any time for inappropriate conduct carried out on such systems.


11.27.5 Ownership and Privacy Padre Dam owns the rights to all data, electronic messages and files in any computer, smartphone, mobile device, network, voice mail or other information systems used at Padre Dam. The information contained within the District’s email and/or Network based communication systems are the sole property of Padre Dam. District officials understand they have no expectation of privacy in the content of any electronic communications sent or received on a District account or communication utilizing District servers. District provided electronic devices are subject to District review and disclosure of electronic communications regarding District business. District officials understand that electronic communications regarding District business that are created, sent, received or stored on an electronic messaging account may be subject to the Public Records Act, even if created, sent, received or stored on a personal account or personal device. Padre Dam management reserves the right to monitor and examine all information stored on computers and devices owned by Padre Dam and any computer or device connected either wired or wirelessly to Padre Dam’s network. Padre Dam has the right to inspect any and all files stored in private areas of the network, individual computers, laptops, storage media, smart phones, and mobile devices in order to ensure compliance with policy, state and federal laws and for any other business purpose. Electronic mail messages sent and received using Padre Dam information systems are not private and are subject to viewing, downloading, inspecting, release and archive by Padre Dam officials at all times. Padre Dam reserves the right to monitor and examine any personal electronic communications including e-mail messages, instant messaging, person to person video and conferencing video systems, social media, and all related content, as well as any and all use of the Internet and of any computer or device used to create, view, or access e-mail and Internet content. Monitoring examination may occur at any time, and may or may not include notification of the worker or workers involved. If this examination is performed as part of an investigation, this examination will be coordinated with the employee’s department head and the Human Resources Department. Padre Dam will comply with reasonable requests from law enforcement and regulatory agencies for logs, diaries, archives, or files on individual Internet activities, e-mail use, telephone, voice mail, computer, laptop, and/or any mobile computing device use.

11.27.6 Unacceptable Use The following activities are, in general, prohibited. Employees may be exempted from these restrictions during the course of their legitimate job responsibilities (e.g. systems administration staff may need to disable the network access of a host if that host is disrupting production services). The list below is by no means exhaustive, but attempts to provide a framework for activities which fall into the category of unacceptable use. General activities and usage of Padre Dam’s information systems that are prohibited: • Soliciting or selling products or services that are unrelated to Padre Dam’s operations • Operating an employee owned business. • Distracting, intimidating, or harassing co-workers or third parties; or disrupting the workplace. • Misrepresenting oneself or Padre Dam.


• Causing congestion, disruption, disablement, alteration, or impairment of Padre Dam networks or systems.

• Failing to log off any secure, controlled-access computer or other form of electronic data system and leaving such computer or system unattended.

• Defeating or attempting to defeat security restrictions on Padre Dam systems and applications. • Attempting to log on to the District network with domain accounts the employee was not assigned

or authorized to use. • Revealing your domain account or logon credentials to others either inside or outside the Padre Dam

organization. • Sending chain letters or participating in any way in the creation or transmission of unsolicited

commercial e-mail (spam) that is unrelated to legitimate Padre Dam purposes. • Engaging in any activity that is a violation of the District’s Administrative Code, local, state or federal

or international law while utilizing District-owned resources; • Engaging in other unlawful or malicious activities. • Deliberately propagating any virus, worm, Trojan horse, trap-door program code, or other code or

file designed to disrupt, disable, impair, or otherwise harm either the Padre Dam's networks or systems or those of any other individual or entity.

• Using abusive, profane, threatening, racist, sexist, or otherwise objectionable language in either public or private messages.

• Violations of the rights of any person or company protected by copyright, trade secret, patent or other intellectual property, or similar laws or regulations. This includes but is not limited to: o Unauthorized copying, installation and/or distribution of software and applications. o Unauthorized copying, digitizing and/or distribution of copyright protected material including

content from magazines, books, music or video. • Unauthorized disclosure to outside parties of district confidential, employee, or customer

information. • Sending, receiving, or accessing pornographic materials. • Using District resources for political purposes. • Maintaining, organizing, or participating in non-work-related Web logs (blogs), Web journals, "chat

rooms", or private/personal/instant messaging. • Playing electronic games that are of an interactive, multi-user, violent, pornographic, or otherwise

inappropriate. • Uploading of streaming video for personal use. • Downloading of streaming video for personal use that exceeds bandwidth limitations. • Personal use of Internet Radio that exceeds bandwidth limitations. • Personal use of Internet based phone systems and software (e.g. SKYPE). • Creating, viewing, transmitting, or receiving racist, sexist, threatening, or otherwise objectionable or

illegal material. “Material” is defined as any visual, textual, or auditory form. • Soliciting or proselytizing others for commercial ventures, religious or political causes, outside

organizations or other non-job-related solicitations. • Any other use which would violate Section 11.27.4 of this policy • Any other use which would violate another Padre Dam Policy. Unless specifically granted in this policy, any unauthorized non-business use of the Padre Dam's information systems (including portable computer equipment used outside of Padre Dam offices) is expressly forbidden.


11.27.7 Social Media Social media refers to media designed to disseminate content (information, images, audio and video) through social interaction, created using highly accessible and scalable web-publishing techniques. The term includes “social network sites” that allow individuals and organizations to construct a profile and create and share content with others. Examples of social media include, but are not limited to: • Video sharing sites such as YouTube • Blogs

• Photo sharing sites such as Instagram, Flickr • Podcasting • Facebook, Linkedin • Twitter • Wikis • Content sharing sites such as Delicious and Digg • Aggregation platforms such as Hootsuite and Tweetdeck • On-line discussion groups Social media is an important channel of communication with customers and stakeholders. Only employees authorized by the General Manager will post content on social media sites on behalf of Padre Dam. Any and all information posted, or pages created, on behalf of Padre Dam must pertain to the District, its operations, programs and activities. Prohibited Content for those posting on behalf of Padre Dam: • Confidential information such as the personal information of employees or customers, or

information related to actual or potential legal claims, lawsuits or other legal issues. • Photographs or images of anyone who can be identified without first obtaining a signed release,

except for publicly obtained pictures/video involving public social events. • Language that is sexually explicit, lewd or obscene, racial, political, religious or that expresses an

opinion. • Disparaging comments about Padre Dam or Padre Dam staff. • Any content that negatively impacts the reputation of Padre Dam. • Any content that actively engages any person posting in an argumentative or offensive manner. While social media is an important way for Padre Dam to transmit information to customers and stakeholders, social media sites allow interactive, responsive postings by the public. Responsive posts are allowed but are subject to the Padre Dam Social Media Terms of Use which will appear on the venue and be readily accessible to anyone wishing to post a response. Padre Dam Social Media Guidelines and Terms of Use • This site serves as a moderated online information exchange and is not intended as a public forum. • Padre Dam reserves the right to delete submissions if they clearly do not relate to its operations,

facilities and programs or contain links that are outside the purpose or the theme of this site,


promote specific services, products or political organizations or infringe on copyrights, trademarks or these terms of use.

• Submissions that contain vulgar language, personal attacks of any kind, inflammatory language that targets or discriminates against individuals or groups based on race, ethnicity, color, gender, age, sexual orientation national origin or other protected classification; the defamation or libel of any person or group; or that promote any illegal activity will not be posted or will be removed.

• Padre Dam monitors the activity on this site for the purpose of the public exchange of information.

• Posts that request a response will be answered by the appropriate department or employee in as timely a manner as possible and in the most appropriate medium. Requests for a response on this site are considered informal in nature and do not substitute for any formal process establish by Padre Dam or by law. Submissions and responses posted here may be subject to the California Public Records Act.

• Comments are subject to removal after a reasonable period of time. • Padre Dam has the right at all times to disclose any information to satisfy applicable law, regulation,

legal process or governmental request and to edit, refuse to post or to remove or to store any information or materials posted here.

• Please note that this site is administered by Padre Dam, but the content on this site is not exclusively controlled by Padre Dam.

• Padre Dam does not endorse any line or advertisements place on this site by Facebook or its vendors or partners.

• Please see Facebook’s Privacy Policy and their Term of Use. • The comments and posts expressed on this site by members of the public do not reflect the opinions

of Padre Dam, members of its Board of Directors or employees. • The contact person for this site is the Communications Manager.

11.27.8 Internet Usage The Internet is to be used to further Padre Dam’s mission, to provide effective service of the highest quality to Padre Dam’s customers and staff, and to support other direct job-related purposes. Supervisors should work with employees to determine the appropriateness of using the Internet for professional activities and career development. The various modes of Internet/Intranet access are Padre Dam resources and are provided as business tools to employees who may use them for research, professional development, and work-related communications. Limited personal use of Internet resources is acceptable as long as it conforms to Section 11.27.6 and 11.28.4 of this policy. Employees are individually liable for any and all damages incurred as a result of violating Padre Dam security policy, copyright, and licensing agreements. All Padre Dam policies and procedures apply to employees' conduct on the Internet, especially, but not exclusively, relating to: intellectual property, confidentiality, Padre Dam information dissemination, standards of conduct, misuse of Padre Dam resources, anti-harassment, and information and data security. 11.27.9 Controlling User ID The user ID is what identifies individual users to the computer system. The password associated with the user ID is what keeps the user ID available only to a specific individual. Passwords must be kept secret.


Employees should keep their passwords private. The system will automatically require users to change their password every three months. It is important that passwords are chosen that are not easily guessed by others. Employees will be responsible for computer use performed with their user ID. For employee and system protection, users will be automatically logged off after their computer has remained idle for a predetermined period of time.

11.27.10 Electronic Mail/Communications All District officials shall be assigned a District electronic messaging account. District accounts shall be used to conduct District business. District officials shall not use personal accounts for the creation, transmission or storage of electronic communications regarding District business. If a District official receives an electronic message regarding District business on his/her non-District electronic messaging account, or circumstances require such person to conduct District business on a non-District account, the District official shall either: (a) copy (cc) any communication from a District official’s personal electronic messaging to his/her District electronic messaging account; or (b) forward the associated electronic communications to his/her District account no later than 10 days after the original creation or transmission of the electronic communication. District officials shall endeavor to ask persons sending electronic communications regarding District business to a personal account to instead utilize the District official’s account, and likewise shall endeavor to ask a person sending an electronic communication regarding non-District business to use the District official’s personal or non-District electronic messaging account. Electronic mail messages received should not be altered without the sender's permission; nor should electronic mail be altered and forwarded to another user and/or unauthorized attachments be placed on another's electronic mail message. Electronic mail is subject at all times to monitoring, and the release of specific information is subject to applicable state and federal laws and Padre Dam rules, policies, and procedures on confidentiality. Existing rules, policies, and procedures governing the sharing of confidential information also apply to the sharing of information via commercial software. It is a violation of Padre Dam policy for any employee to access others electronic mail and computer systems files without their permission and consent, except as described above Padre Dam may access any information and usage on its system to ensure compliance with this policy and for other business purposes.

11.27.11 Software Use Padre Dam has licensed the use of certain commercial software application programs for business purposes. Third parties retain the ownership and distribution rights to such software. No employee may create, use, or distribute copies of such software that are not in compliance with the license agreements for the software. All software applications whether purchased or free of charge, must first have the approval of the appropriate department head and the Information Systems Manager prior to installation on any Padre Dam owned computing equipment. This includes computers, laptops, smart phones and mobile devices. Copying or redistribution of District software for use at home or by others is prohibited and may be prohibited by both State and Federal laws. The District complies with applicable laws and will cooperate with copyright holders and law enforcement officials in all copyright matters.


All Padre Dam information should be stored on the network. Any information stored on an individual’s local hard drive (“C” Drive) or any form of removable media is not protected by backups and may be lost in the event of corruption or drive failure. 11.27.12 Personal Electronic Equipment Padre Dam prohibits the use in the workplace of any personal form of image/data recording device, removable media, or personal cloud based storage services without the express permission of Padre Dam. Padre Dam prohibits connecting, either by wired or wireless methods individual computers, laptops, storage media, smart phones and mobile devices to Padre Dam electronic systems and networks unless expressly permitted to do so by the IS Manager and/or an authorized Padre Dam Officer. Any employee bringing one of these devices onto Padre Dam premises thereby gives permission to Padre Dam to inspect the device at any time it is connected to Padre Dam systems and to analyze any files, other data, or data storage media that may be within or connectable to the device in question. Employees who do not wish such inspections to be done on their personal devices should not connect such items to Padre Dam systems. Violation of this policy, or failure to permit an inspection of any device covered by this policy, shall result in disciplinary action, up to and including termination of employment. 11.27.13 Remote Access An employee may access a Padre Dam account from a remote location other than the site designated for that account (e.g., telecommuting or checking e-mail while away from the office on business) only with approval of the employee’s supervisor, department head and Information Systems Manager and only for Padre Dam business during normal business hours. The remote access policy is in place to maintain the integrity of the District’s computer and mobile systems. Each employee (end user) has the responsibility to comply with the entirety of the policy. 1. Authorized users must protect their login credentials and must not share them with anyone for any

reason. This includes family members. 2. Remote users must be required to authenticate before being granted access to company

information. 3. All devices connected to Padre Dam’s internal networks via remote access must be District issued. 4. Issued devices are to be used solely by the authorized user for which the device was assigned. 5. While connected to Padre Dam’s computing resources, remote access users are required to follow

Padre Dam’s policies at all times, including the Acceptable Use Policy. 6. All remote devices as set forth in the scope of this document must have appropriate security

protections enabled. These protections include but are not limited to, the use of anti-virus software with the latest virus definitions installed, all appropriate operating system security patches applied and a personal firewall installed where available.

7. All devices connected to Padre Dam’s internal networks via remote access must be company-issued or approved third-party devices.

8. Authorized users shall not connect to Padre Dam’s VPN while the device is connected to a network that is not the user’s personal home network or a trusted third-party network. Users shall not connect to Padre Dam’s VPN while also using another VPN.


9. Users must exercise caution when connecting to networks in public venues like airports, coffee shops, etc., and must not connect to the Company’s internal network (even via VPN) if on an unsecured, public network.

10. Any remote access users who are utilizing the SSL VPN gateway should remain connected for only as long as they are conducting business related work for Padre Dam and are encouraged to disconnect as soon as that work is completed.

11. At no time is a remote user to remain connected to any Padre Dam network for more than 12 continual hours, unless pre-approved by Management.

12. At no time is a remote user to connect Padre Dam’s network to any other network or device beyond the initial device making the connection. This includes, but is not limited to split tunneling, dual homing, or otherwise re-routing Padre Dam traffic beyond the intended endpoint.

13. Remote access users are not permitted to download or otherwise store data which is considered confidential or contains Personally Identifiable Information (PII) on their personal remote computing devices. This includes the transfer of such data to a personal cloud service such as Dropbox, Google Drive or One Drive.

14. Remote access users are not permitted to connect any personal peripherals to their assigned computers and laptops. This includes data storage devices (Thumb drives, portable hard drives, etc.) printers and scanners.

15. If any device used for remote access is lost, stolen, or otherwise removed from the user’s control, the authorized user will be responsible for notifying the IS Department immediately.

16. Remote access user’s agree to immediately report to the IS department any incident or suspected incidents of unauthorized access and/or disclosure of company resources or information. If you believe your connection may have been compromised, please immediately report the incident to the IS Department.

17. Any device connecting to Padre Dam’s computing resources is subject to monitoring, which may include but is not limited to date, time, duration of access, identification of endpoint and all traffic which traverses Padre Dam’s networks.

Any exceptions to the policy must be approved by Human Resources. Questions regarding remote access should be directed to the IS department. 11.27.14 Anti-Virus Scans Anti-virus software is installed on every Padre Dam computer. The Anti-virus software will scan files from all sources, including the Internet. Anti-virus programs shall not be disabled or changed by anyone other than Information Systems staff. 11.27.15 SCADA Access to and use of Padre Dam SCADA computers is strictly forbidden without prior Padre Dam authorization. For information and details refer to the Padre Dam SCADA Computer Use Policy. 11.27.16 Compliance Review The department head will evaluate violations of the Padre Dam Computer policy and procedures on a case-by-case basis. Violations of these policies may lead to revocation of system privileges and/or disciplinary action, up to and including termination from employment.


11.28 PADRE DAM OWNED CELLULAR MOBILE DEVICES 11.28.1 Policy Authorized Padre Dam employees are provided Padre Dam owned or leased cellular mobile devices to assist them in carrying out District business in an efficient manner. Before receiving a cellular mobile device, employees will be required to sign a statement indicating that they will abide by this policy and any other written procedures, standards or agreements. 11.28.2 Ownership and Access All data and files in any voicemail, text, electronic mail (e-mail), application (apps), or other information system included with all mobile cellular devices is the property of Padre Dam. It is important to understand that the data and files, including all forms of electronic communications using a Padre Dam mobile cellular device are subject to complete access and review by Padre Dam officials, and employees should have no expectation of privacy when using Padre Dam mobile cellular devices. Should employees use their Padre Dam mobile cellular device for personal use, those communications should not be considered private and Padre Dam reserves the right to monitor the content of personal instant messaging, texts and voicemails, as well as any and all use of the internet. As part of the mobile cellular service, the location of a mobile cellular device may be accessed and reviewed by Padre Dam officials. Further, Padre Dam has the right to inspect any and all applications and files stored on the mobile cellular device or by the cellular service provider for any purpose, including for compliance with this policy and state and federal laws. Only applications authorized by the Department Head and approved by Information Systems may be downloaded or activated. No personal applications may be activated on a Padre Dam mobile cellular device without pre-approval by the Department Head and Information Systems. Any application on a Padre Dam mobile cellular device, whether or not pre-approved and whether or not District related, belongs to Padre Dam and may be monitored at any time. No employee may access another employee’s mobile cellular device and applications without prior authorization from either the employee or an appropriate Padre Dam official. 11.28.3 Employee Use of Cell Phones Mobile Cellular devices are provided to employees based on the needs of Padre Dam in serving our customers. Padre Dam mobile cellular devices are not to be used in any communications that are in violation of District policy, including but not limited to transmission of defamatory, obscene, offensive or harassing messages. Any such use will subject the employee to disciplinary action, up to and including termination. 11.28.4 Personal Use of Mobile Cellular Devices Padre Dam cellular phones are to be used for business related to the employee’s job and Padre Dam. Employees have the option of using Padre Dam’s mobile cellular device for incidental personal usage as defined below. If an employee elects to use the mobile cellular device for personal use, the employee will


be charged a flat usage fee of $4.00 or $6.00 for those employees that carry a device per pay period through payroll withholding to compensate Padre Dam for this personal use. “Incidental personal use” is defined as personal phone calls, and text messaging which are brief in nature. “Incidental personal use” and the payment of a usage fee does not invalidate Padre Dam’s right to inspect, monitor or apply any application that may be available to the cellular device, and as set forth above by using Padre Dam property for personal use, the employee is giving up any expectation of privacy in such communications. An employee can opt out of paying the $4.00 or $6.00 by signing a declaration that they will not use the mobile cellular device for any personal use. The mobile cellular device usage will be monitored and any employee who exceeds reasonable personal use will be subject to individual extra charges and no longer permitted to use the mobile cellular device for personal use. Any employee who has opted out of paying for personal usage and then uses the mobile cellular device for personal use, shall be subject to discipline up to and including discharge. At any time an employee may opt out of or into personal usage. 11.28.5 Safety Employees must comply with all laws restricting the use of cellular devices while driving, including the following: California Vehicle Code §23123(a) states that “A person shall not drive a motor vehicle while using a wireless telephone unless that telephone is specifically designed and configured to allow hands-free listening and talking, and is used in that manner while driving.” California Vehicle Code §23123.5(a) states that “A person shall not drive a motor vehicle while using an electronic wireless communication device to write, send, or read a text-based communication.” Employees who are assigned a mobile cellular device are required to be familiar and knowledgeable of Padre Dam’s additional procedures on the use of cellular devices which are included in the Safety Rules and Regulations and which are incorporated by this reference. 11.28.6 Mobile Cellular Device – Return Policy All mobile computing devices equipped or not with cellular and or Wi-Fi capability are wholly owned by Padre Dam and shall be returned to Padre Dam officials upon employment separation. All working devices will be reissued according to the surplus equipment policy. All non-working devices shall be disposed of according to the surplus equipment policy. Cellular phone numbers associated with a Padre Dam employee’s cellular plan can be transferred to a personal plan upon employment separation. The receiving cell provider must support the number transfer. The employee must be in good standing and will be subject to an internal transfer fee of $100.00.


11.29 WHISTLEBLOWER POLICY 11.29.1 Whistleblowing and Investigations

Padre Dam is committed to compliance with the federal and state laws, rules and regulations to which it is subject. These laws promote efficient and appropriate use of public funds and enable Padre Dam to achieve its mission. Padre Dam's internal controls and operating procedures are intended to prevent and detect improper activities. However, Padre Dam may not always be able to prevent or detect these activities. Therefore, Padre Dam relies on employees to bring suspected improper activities to its attention ("blow the whistle"). Employees are encouraged to bring any potential violation of applicable laws, rules or regulations to the attention of their department head (or to any other member of the Management Team). If the employee believes that the issue requires the involvement of the General Manager, due to the seriousness of the conduct or the persons involved, the employee should contact the General Manager or the Human Resources Department. Padre Dam will take all appropriate steps to thoroughly evaluate any potential violations or noncompliance with applicable federal and state laws, rules and regulations which are brought to its attention. Padre Dam will determine when circumstances warrant an investigation and the appropriate investigative process to be followed, in accordance with applicable law. Confidentiality will be maintained to the extent possible within the limitations of the law and the legitimate need to know in order to carry out an investigation. Release of an employee's name may be required pursuant to a subpoena or in other circumstances as required by law. In addition, an employee's public testimony may be necessary to prove the case against the alleged wrongdoer. Further, Padre Dam will no longer be obligated to maintain such confidence if an employee self-discloses their identity publicly. In addition the California Attorney General's Office maintains a Whistleblower Hotline which employees may call to report possible violation of federal and state laws, rules and regulations. Information on the Hotline is posted on bulletin boards around Padre Dam. 11.29.2 Whistleblower Protection Padre Dam will not retaliate against any employee who reports to Padre Dam, or any other government or law enforcement agency, a potential violation of the federal or state laws, rules and regulations based on a reasonable belief that such violation has occurred. In addition, Padre Dam will not retaliate against an employee for refusing to participate in an activity that would result in a violation of federal or state laws, rules and regulations. Padre Dam will not take any adverse actions against an employee for exercising these rights relating to another employer. Padre Dam also will not knowingly permit this form of retaliation by management employees or co-workers. Employees who believe they have been subject to any form of retaliation based on exercising their rights as a whistleblower should promptly report the conduct to their supervisor or department head (or to any other member of the management team) who will take action consistent with Padre Dam’s policy against harassment as described in Section 16.19. Employees may be subject to discipline, up to and including termination, for making accusations of improper conduct or retaliation, which they do not reasonably believe to be true.


List of Ordinances amending Section 11: 2001-01 adopted January 9, 2001, Sections 11.7.11 and 11.7.12, District Vehicle Commuter Use. 2001-03 adopted February 13, 2001, Section 11.7.10, Board of Directors Mileage Reimbursement 2001-04 adopted April 10, 2001, Section 11.7.11, District Vehicle Commuter Use. 2001-06 adopted April 24, 2001, Section 11.7.10, Employee/Director Travel; Section 11.16, Tuition Refunds/Certification

Bonus. 2001-08 adopted August 14, 2001, Sections 11.3.A and 11.3.E, Equal Opportunity Policy; Section 11.4.2, Competitive

Challenge; Section 11.7.4, Work Scheduling; Section 11.7.6, Meal and Break Periods; Section 11.7.8, Uniforms and Coveralls; Section 11.7.9, Care of Clothing; Section 11.7.10, Shorts and T-Shirts; Section 11.7.11, Contribution to PERS; Section 11.8.1, Paydays; Section 11.8.13, Filling Vacancies; Section 11.8.16, Overtime and Compensatory Time Off; Section 11.8.19, Call Back Policy; Section 11.9.3, Group Life Insurance, Active Employees; Section 11.12, Holidays; Section 11.13.2.A, Jury, Military, Civic Duty; Section 11.21, Safety Shoe Allowance.

2002-02 adopted January 22, 2002, adding Section 11.13.8, Domestic Violence Leave Act, and amending Section 11.27, Drug

and Alcohol Policy. 2002-05 adopted August 27, 2002, amending Section 11.4.1, Contracting Out; Section 11.4.2, Competitive Challenge; Section

11.4.3, Gain Sharing; Section 11.7.6, Meal and Break Periods; Section 11.7.8, Uniforms and Coveralls; Section 11.7.17, Disciplinary Action; Section 11.7.18, Disciplinary Procedures for Permanent Employees; Section 11.8.2, Implementation of 2002 Compensation Study; Section 11.8.3, Salary Adjustments; adding Section 11.8.4, Y-Rating Defined; Section 11.8.7, Salary Classification; Section 11.8.8, Performance Rating/Salary Review; Section 11.8.9, Compensation Policy; deleted Section 11.8.9, Market Premium Pay; Section 11.8.10, Future Salary Surveys; added Section 11.8.11, Pay for Performance Plan; Section 11.8.12, Management Team Salaries; Section 11.8.16, After-Hour Duty Personnel and Policy Statement; Section 11.8.17, Overtime and Compensatory Time Off; Section 11.8.18, Temporary/Seasonal Employment; Section 11.8.20, Call Back Policy; Section 11.9.1, Group Health Insurance; Section 11.9.10, Section 125 Reimbursement Plan; Section 11.10.1, Sick Leave Accumulation; Section 11.11.1, Accumulation for Non-Exempt Management and Confidential Employees; Section 11.11.2, Accumulation for Management Team Members and Exempt Management and Confidential Employees; Section 11.12, Holidays; Section 11.13.2, Jury, Military, Civic Duty; Section 11.14.1, Retirement - General; Section 11.14.2, Public Employees’ Retirement System (PERS); Section 11.14.3, Federal Social Security; Section 11.14.4, Insurance Benefits for Retirees; added Section 11.14.6, Insurance Benefits for Dependents of Employees; Section 11.15.2, District Vehicles; Section 11.16, Skill Enhancement Program; Section 11.16.2, Certification Bonuses; Section 11.21, Safety Shoe Allowance; deleted Section 11.23, No Smoking Policy; added Section 11.23, District “No Smoking For Good Health” Policy.

2002-6 adopted November 12, 2002, amending Section 11.8.17, Overtime and Compensatory Time Off; Section 11.9.3, Group Life Insurance; Section 11.9.5 Group Long-Term Disability Insurance; Section 11.9.10, Section 125 Reimbursement Plan; and Section 11.14.2, Public Employee’s Retirement System (PERS).

2003-01 adopted February 11, 2003, amending Section 11.14.4 Insurance Benefits for Retirees; Section 11.14.5 Insurance

Benefits for Spouses of Employees. 2004-03 adopted February 24, 2004, amending Sections 11.7.12, Employee-Director Travel/Conference Expense; 11.7.17,

Disciplinary Action; 11.9.3, Group Life Insurance; 11.9.4, Supplemental Life Insurance; 11.9.11, Board Cafeteria; Plan; 11.14.4, Insurance Benefits for Retirees; 11.14.5, Insurance Benefits for Spouses of Retirees; 11.15.2, District Vehicles; 11.15.3, Employee Insurability; 11.15.4, Accident Investigation and Procedure; 11.16.2, Certification Bonus; 11.28. District Computer System; 11.29, Whistle Blower Policy.

2005-04 adopted 3/22/05 amending Section 11, Employment Practices and Policies, Subsection 11.16.2, Certification

Bonuses, and 11.27, Drug and Alcohol Policy. 2005-06 adopted 6/14/05 amending Section 11.8.17 Positions exempt from Overtime (including exempt status, employee

association status, and title changes). 2005-07 adopted 10/25/05 adding Section 11.11.5, Accelerated Vacation Option for Recruitment/Retention.

2006-07 adopted 8/8/06, amending Sections 11.7.8, Uniforms and Coveralls; 11.7.13, District Vehicle Commuter Use;

11.8.17, Overtime and CTO. 2006-08 adopted 8/22/06, adding Sections 11.14.4 and 11.14.5, Insurance Benefits for Retirees and Insurance Benefits for

Spouses of Employees.


2007-01 adopted 4/10/07 amending Section 11 to reflect changes adopted in Ethics Policy. 2007-02 adopted 5/22/07 amending Section 11 to reflect changes agreed upon in MOUs. 2007-06 adopted 6/26/07 removing Section 11.8.6, Salary Classification, and amending Section 11.14.9, Other Benefits. 2008-03 adopted 2/26/08 amending Sections 11.8.9, 11.8.14, 11.10.2, and 11.13.4. 2008-07 adopted 7/8/08 amending Employment Practices and Policies, Subsections 11.13.2, July, Military, Civic Duty, and

11.13.9, Modified Work Due to Illness or Injury. 2008-12 adopted 12/9/08 amending Employment Practices and Policies, section 11.13.9, Modified Work Due to Illness or

Injury. 2010-01 adopted 3/23/10, effective 3/23/10 amending Section 11.7.14 and 11.14.2.G., related to Management Team Car

Allowance, Retirement Contributions, and Salary Adjustment. 2010-04 Ordinance adopted 11/09/10, effective 12/09/10, adding Section 11.29, Padre Dam Owned Cellular Phones and

Pagers policy. Previous Section 11.29 – Whistleblower Policy – moved as Section 11.30 2011-07 adopted 8/9/11, effective 8/12/11 amending Section 11.14.2, Public Employee’s Retirement System (PERS). 2012-02 adopted 4/18/12 amending various sections based on new 5-yr MOU. 2012-08 Ordinance adopted 12/5/12, effective immediately amending Section 11.16, Skill Enhancement Program 2013-08 adopted 12/18/13, annual review amending various sections 2014-06 adopted 12/3/14, annual review amending various sections 2016-03 adopted 2/3/16, annual review amending various sections 2017-02 adopted 4/19/17, annual review amending various sections 2018-04 adopted 12/19/18, annual review amending various sections 2020-02 adopted 2/5/20, annual review amending various sections 2021-05 adopted 9/15/21, annual review amending Section 11.7.4, 11.7.4.3, 11.7.5, 11.7.6,11.7.13, 11.8.13, 11.12, 11.13.3,

11.15, 11.27.13 2021-07 adopted 12/01/21 amending Sections 11.7.12 related to Employee Travel. 2022-02 adopted 3/2/22 amending various sections agreed upon in MOUS

Section 12 Standard Practices and Policies Page 1 of 11 Padre Dam Municipal Water District

SECTION 12 EMPLOYER-EMPLOYEE RELATIONS INDEX Page 12.1 PURPOSE ...................................................................................................................................3 12.2 DEFINITIONS ..............................................................................................................................3 12.3 RIGHT OF EMPLOYEES TO JOIN EMPLOYEE ORGANIZATIONS .......................................................3 12.4 RIGHT OF EMPLOYEES TO ABSTAIN FROM JOINING EMPLOYEE ORGANIZATIONS ........................3 12.5 RIGHT OF EMPLOYEES TO REPRESENT THEMSELVES ....................................................................4 12.6 DISCRIMINATION PROHIBITED ...................................................................................................4 12.7 MANAGEMENT AND CONFIDENTIAL EMPLOYEES ........................................................................4 12.8 RECOGNITION REQUIREMENTS ..................................................................................................5 12.9 RECOGNITION ............................................................................................................................6 12.10 PROCESSING OF RECOGNITION PETITION .................................................................................6 12.11 DETERMINATION BY BOARD OF DIRECTORS .............................................................................6 12.12 CURRENT INFORMATION .........................................................................................................7 12.13 INTERNAL ASSOCIATION MATTERS ...........................................................................................7 12.14 REPRESENTATION OF MEMBERS ..............................................................................................7 12.15 SCOPE OF REPRESENTATION ....................................................................................................7 12.16 DISTRICT REPRESENTATIVES .....................................................................................................7 12.17 CONFERENCES .........................................................................................................................7 12.18 MEMORANDUM OF UNDERSTANDING .....................................................................................8 12.19 FAILURE TO AGREE ...................................................................................................................8 12.20 CLOSED SESSIONS ....................................................................................................................8 12.21 REASONABLE TIME OFF TO MEET AND CONFER ........................................................................8


12.22 ADVANCE NOTICE ....................................................................................................................9 12.23 NOTICE OF BOARD OF DIRECTORS MEETINGS ...........................................................................9 12.24 GRIEVANCE PROCEDURES ........................................................................................................9 12.25 USE OF BULLETIN BOARDS .......................................................................................................9 12.26 ACTIVITIES ON DISTRICT'S PREMISES ...................................................................................... 10 12.27 AVAILABILITY OF DATA .......................................................................................................... 10 12.28 STRIKES AND LOCKOUTS ........................................................................................................ 10 12.29 AMENDMENTS ....................................................................................................................... 10


SECTION 12 EMPLOYER-EMPLOYEE RELATIONS

12.1 PURPOSE The purpose of these rules and regulations is to implement the Meyers-Milias Brown Act (Chapter 10, Division 4, Title 1 of the Government Code of the State of California, commencing with Section 3500), by providing orderly procedures for the administration of employer-employee relations between the District and employee organizations.

12.2 DEFINITIONS As used herein:

A. "Board of Directors" means the Board of Directors of the District. B. "District" means the Padre Dam Municipal Water District. C. "Employee" means any person employed by the District other than a member of the Board

of Directors. D. "Employee organization" means any organization which includes employees of the District,

and which has as one of its primary purposes the representation of such employees in their employment relations with the District.

E. "General Manager" means the General Manager of the District. F. "Recognized employee organization" means an employee organization that has fully and

currently complied with the requirements of subsections 8, 9, and 11 of these rules and regulations, and has been formally acknowledged by the Board of Directors as an employee organization that represents employees of the District.

G. "Secretary" means the Board Secretary of the District.

12.3 RIGHT OF EMPLOYEES TO JOIN EMPLOYEE ORGANIZATIONS Employees shall have the right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations. 12.4 RIGHT OF EMPLOYEES TO ABSTAIN FROM JOINING EMPLOYEE ORGANIZATIONS Employees shall have the right to refuse to join or to refuse to participate in the activities of employee organizations.


12.5 RIGHT OF EMPLOYEES TO REPRESENT THEMSELVES Employees shall have the right to represent themselves individually in their employment with the District. A member of an employee organization, who at any time wishes to represent himself or herself individually in his or her employment relations with the District, may do so upon filing a written statement to that effect with the Director of Human Resources The employee shall not be considered as being represented by an employee organization while such an unrevoked written statement is on file.

12.6 DISCRIMINATION PROHIBITED Employees shall not be discriminated against, interfered with, intimidated, restrained or coerced (by either the District or employee organizations) because they form, join and participate in the activities of employee organizations; they refuse to join, or refuse to participate in the activities of employee organizations; or they represent themselves individually in their employment relations with the District.

12.7 MANAGEMENT AND CONFIDENTIAL EMPLOYEES The duties and powers of the employees in the positions hereafter listed are of such a nature that they are classified as being engaged in duties related to management or in duties designated as confidential. Such employees may not be members of or represent any employee organization which represents other employees of the District on matters within the scope of representation. Such employees may be members of an employee organization whose membership consists solely of management and confidential employees, and may represent such organization on matters within the scope of representation:

Accounting Manager Administrative Assistant Assistant Operations Manager AWP Engineering Manager Board Secretary Communications Officer/Manager Customer Service Manager Director of AWP Director of Engineering and Planning Director of Finance Director of Human Resources Director of Human Resources & Administrative Services Director of Operations and Water Quality Director of Park and Campground Distribution Maintenance Manager Engineering Supervisor Engineering Staff Assistant Engineering Manager General Manager Human Resources Specialist Information Systems Manager Operations Manager Park Operations Manager


Park & Recreation Manager Plant Manager Safety and Risk Manager

12.8 RECOGNITION REQUIREMENTS An employee organization that seeks formal acknowledgment by the Board of Directors as a recognized employee organization representing employees of the District shall file with the General Manager a petition, verified under penalty of perjury by a duly authorized officer of the organization, containing the following information and documentation:

A. Name and address of the employee organization. B. Names and titles of its officers. C. Names of employee organization representatives who are authorized to represent its

members. D. A statement whether the employee organization is a chapter or local of, or affiliated

directly or indirectly in any manner with a regional, state, national or international organization, and if so, the name and address of each such regional, state, national or international organization.

E. Copies of the employee organization's constitution and by-laws. F. A designation of those persons, not exceeding two in number, and their addresses, to

whom notice sent by regular United States mail will be deemed sufficient notice to the employee organization for any purpose.

G. A statement that the employee organization recognizes that the provisions of Section 923 of the California Labor Code are not applicable to District employees. H. A statement that the employee organization has no restriction on membership based

upon race, color, creed, religion, sex, marital status, pregnancy, national origin, ancestry, age, physical handicap or medical condition (as defined by law).

I. The names of all District employees currently represented by the employee organization. J. A statement that the employee organization has in its possession written proof, dated

within three months of the date upon which the petition is filed, to establish that such employees have designated in writing the employee organization to represent them in their employment relations with the District.

K. A request that the Board of Directors formally acknowledge the petitioner as are

recognized employee organization that represents employees of the District.


12.9 RECOGNITION

A. Employees may be classified into at least two units: (1) management and confidential employees and (2) all other permanent full-time and permanent part-time employees. Employees may create bargaining units containing specific job classifications and excluding other job classifications.

B. An employee organization shall not be recognized unless the majority of all employees of

the District within the specified unit have authorized the employee organization to represent them by a vote of said employees. Upon recognition by the Board of Directors, said recognized employee organization shall have the right to represent District employees within the specified unit subject to the right of an employee to represent himself or herself as provided in Section 12.5 hereof.

C. Recognition of an employee organization formally recognized as the majority

representative of a specified unit pursuant to a vote of the employees may be revoked by a majority vote of the employees after a period of not less than 12 months following the date of such recognition. A vote shall be held by secret ballot upon a petition filed with the Secretary and signed by at least 30 percent of the employees within that specified unit.

12.10 PROCESSING OF RECOGNITION PETITION Within a reasonable time after receipt of a petition, the General Manager shall:

A. Determine whether (1) the petition fully complies with the requirements of these rules and regulations; (2) the petitioner represents a majority of the employees of the District within the specified unit; and (3) the petitioner qualifies as a recognized employee organization. In so doing, the General Manager may require the employee organization to submit such written proof as the employee organization has that it has been designated by the listed employees to represent them, including all written authorizations signed by employees designating the employee organization to represent them.

B. Submit the petition to the Board of Directors with a report as to the General Manager's

determinations and his recommendations regarding formal recognition.

12.11 DETERMINATION BY BOARD OF DIRECTORS Within a reasonable time after receipt of the report and recommendations of the General Manager, the Board of Directors shall determine if the petitioner qualifies as a recognized employee organization. The Board of Directors may direct the General Manager to make further determinations to assist the Board of Directors in making its decision. The Board of Directors shall formally acknowledge that the petitioner is a recognized employee organization if the petitioner qualifies as such under these rules and regulations.


12.12 CURRENT INFORMATION The information contained in the petition shall be kept current by the recognized employee organization. The General Manager may, from time to time, require verification by the recognized employee organization of any information contained in the petition (and current supplements thereto), including submission of such written proof as the recognized employee organization has that it has been designated by the listed employees to represent them.

12.13 INTERNAL ASSOCIATION MATTERS The District recognizes the right of any recognized employee organization to govern its internal affairs.

12.14 REPRESENTATION OF MEMBERS Subject to these rules and regulations, as they may be from time to time amended, a recognized employee organization shall have the right to represent all District employees within the specified unit in such employees' employment relations with the District, except those who have elected to represent themselves pursuant to Section 12.5.

12.15 SCOPE OF REPRESENTATION The scope of representation may include all matters relating to employment conditions and employer-employee relations, including, but not limited to, wages, hours and other terms and conditions of employment; except, however, that the scope of representation shall not include consideration of the merits, necessity or organization of any service or activity provided by law or established by the District.

12.16 DISTRICT REPRESENTATIVES The General Manager is appointed as the District's Employee Relations Officer to meet and confer with representatives of a recognized employee organization and with employees who wish to represent themselves individually. The General Manager may designate an employee listed in Section 12.7 hereof to meet and confer on his behalf. The Board of Directors may appoint one or more other representatives, including one or more members of the Board, to assist the Employee Relations Officer or to act as the Employee Relations Officer in place of the General Manager on specific matters.

12.17 CONFERENCES The Employee Relations Officer shall, upon written request, meet and confer in good faith regarding wages, hours and other terms and conditions of employment with the representatives of any recognized employee organization and shall consider fully such presentations as are made on behalf of employees who are members of such recognized employee organization. The Employee Relations Officer shall, upon written request, meet and confer in good faith regarding wages, hours and other terms and conditions of employment with the employees who wish to represent themselves individually, and shall consider fully such presentations as are made by them. Such meetings and conferences shall be held within a reasonable time written request, which shall set forth the matter(s) desired to be presented. The Employee Relations Officer may utilize other staff of the District to assist him and to attend conferences with him.


In the event that any Memorandum of Understanding exists with a procedure different than as stated above, the Memorandum of Understanding shall prevail. Meet and confer sessions for future memoranda of understanding shall commence on a date so that negotiations may be completed, if possible, by the first Board of Directors meeting in June of that year. "Meet and confer in good faith" means that the Employee Relations Officer and representatives of each recognized employee organization, or individual employees, shall have the mutual obligation personally to meet and confer promptly upon written request by either party, and to continue for a reasonable period of time in order to exchange freely information, opinions and proposals, and to endeavor to reach agreement on matters within the scope of representation, prior to adoption by the District of its final budget for the ensuing fiscal year. However, the parties may meet and confer, upon written request, at other times during the year.

12.18 MEMORANDUM OF UNDERSTANDING If agreement is reached by the Employee Relations Officer and a recognized employee organization, they shall jointly prepare a written Memorandum of such Understanding, signed by the Employee Relations Officer and the representative of the recognized employee organization, which shall not be binding, and present it to the Board of Directors for determination. If approved by the Board of Directors, the Memorandum of Understanding shall constitute a contract between the District and the recognized employee organization. The terms and conditions of any Memorandum of Understanding shall be approved by resolution of the Board of Directors and shall supersede all other ordinances and resolutions conflicting with the terms of the Memorandum of Understanding.

12.19 FAILURE TO AGREE If after a reasonable period of time, representatives of the District and a recognized employee organization fail to reach an agreement, the Board of Directors and the recognized employee organization may agree upon the appointment of a mediator mutually agreeable to the parties. Costs of mediation shall be divided one-half to the District and one-half to the recognized employee organization. Nothing provided herein shall require either party to agree to the appointment of a mediator.

12.20 CLOSED SESSIONS Pursuant to Section 54957.6(a) of the Government Code, the Board of Directors may hold closed sessions with the Employee Relations Officer and other staff members who are assisting him/her prior to and during consultations and discussions with representatives of an employee organization regarding the salaries, salary schedules or compensation paid in the form of fringe benefits of employees in order to review the Board's position and to instruct the Employee Relations Officer.

12.21 REASONABLE TIME OFF TO MEET AND CONFER Each recognized employee organization may select not more than four employee members of the organization to attend scheduled meetings with the Employee Relations Officer on subjects within the scope of representation during regular work hours without loss of compensation. Should any


Memorandum of Understanding provide for additional employee members, the Memorandum of Understanding shall prevail. Where circumstances warrant, the General Manager may approve the attendance at such meetings of additional employee representatives without loss of compensation. Each employee organization shall submit the names of the employee representatives to the General Manager at least three working days in advance of such meetings. Any such meeting is subject to scheduling by the General Manager in a manner consistent with operating needs and work schedules of the District.

12.22 ADVANCE NOTICE Except as hereinafter provided in this section, reasonable written notice shall be given to a recognized employee organization affected by any ordinance, rule, resolution or regulations directly relating to matters within the scope of representation proposed to be adopted by the Board of Directors and each shall be given the opportunity to meet with the Employment Relations Officer prior to adoption. In cases of emergency, when the Board of Directors determines that an ordinance, rule, resolution or regulation must be adopted immediately without prior notice or meeting with a recognized employee organization, the Board of Directors shall provide such notice and opportunity to meet at the earliest possible time following the adoption of such ordinance, rule, resolution or regulation.

12.23 NOTICE OF BOARD OF DIRECTORS MEETINGS Padre Dam will post on the District website all of the Padre Dam Board's regular public meeting agendas in advance of the regular Board meeting. Employees may sign up on the website to be notified of agendas when they are posted.

12.24 GRIEVANCE PROCEDURES An employee who is dissatisfied with any aspect of his or her employment should review the matter with his/her immediate supervisor. If the matter is not resolved to the satisfaction of the employee, the employee may submit the matter to the next level of supervision, and, if necessary, to the department head. If the matter is not resolved to the satisfaction of the employee by the foregoing process, the employee shall have the right to submit the matter to the General Manager for resolution. Any matter submitted to the General Manager shall be in writing. If the employee is a member of a recognized employee organization, he or she may be represented by a representative of the organization in presenting his or her grievance as provided in this section. Should any recognized employee organization have a Memorandum of Understanding that provides for a grievance procedure different than as stated above, the Memorandum of Understanding shall prevail.

12.25 USE OF BULLETIN BOARDS, INTRANET AND E-MAIL A recognized employee organization shall have adequate space made available in conspicuous locations at each facility operated by the District and/or on the intranet for the purpose of posting bargaining agent notices to members of the bargaining unit. A recognized employee organization will also have use of the e-mail system to communicate with the members of the bargaining unit.


12.26 ACTIVITIES ON DISTRICT'S PREMISES Membership meetings, organizing activities, membership campaigns, or dues collecting by a recognized employee organization or its representatives on District premises or at work locations during business hours shall not be permitted. Authorized non-employee representatives of a recognized employee organization will be given access to work locations during working hours to:

A. Post bulletins on bulletin boards without unreasonable interference with employee work. B. Investigate matters relating to employer-employee relations only if such investigation

cannot be conducted elsewhere, unless such access to given work locations would constitute a safety hazard or would interfere with the operations of the District.

Access to work locations may be regulated by the General Manager so as not to constitute a safety hazard or interfere with operations of the District. Representatives of a recognized employee organization shall not enter a work location without the consent of the General Manager or his designee in his absence. Each recognized employee organization shall give the Director of Human Resources a written list of such authorized representatives. Only those people whose names appear on the current list shall be granted access under this section. (Ord. No. 95-12, 11-14-95)

12.27 AVAILABILITY OF DATA The District will make available to a recognized employee organization such non-confidential information pertaining to employment relations as is contained in the public records of the District, subject to the limitations of the California Public Records Act (Government Code §§6250-60). Requests for such information shall be made to the General Manager, and such information shall be made available during regular office hours, after payment of reasonable costs of duplication if duplication is requested. Nothing herein shall be construed as requiring the District to furnish confidential information or to do research, to assemble information or to compile data.

12.28 STRIKES AND LOCKOUTS There shall be no strikes, work stoppages or slowdowns, nor shall there be any lockouts during the life of any Memorandum of Understanding. Any disputes arising for any reason shall be settled through the Grievance Procedure, Section 12.24.

12.29 AMENDMENTS The Board of Directors may amend these rules and regulations by changes, additions or deletions. Except in emergencies, such amendments shall be adopted after consultation in good faith with representatives of all recognized employee organizations, and copies of proposed rules and regulations shall be posted on District bulletin boards at least seven days before adoption.


List of Ordinances amending Section 12: 1995-12 adopted November 14, 1995, Section 12.7, Management and Confidential Employees; Section 12.26, Activities on District’s Premises 2001-08 adopted August 14, 2001, Section 12.7, Management and Confidential Employees 2002-04 adopted April 23, 2002, Section 12.7, Management and Confidential Employees 2002-05 adopted August 27, 2002, Section 12.7, Management and Confidential Employees 2006-07 adopted August 8, 2006, Section 12.7, Management and Confidential Employees 2008-03 adopted February 26, 2008, Section 12.7, Management and Confidential Employees 2012-04 adopted April 18, 2012, Section 12.7, Management and Confidential Employees; Section 12.23, Notice of Board of

Directors Meetings; Section 12.25, Use of Bulletin Boards, Internet and e-mail 2014-06 adopted 12/3/14, annual review – no changes made to section 12. 2016-03 adopted 2/3/16, annual review, amending Section 12.5 2020-02 adopted 2/5/20, annual review amending Section 12.7 2021-05 adopted 9/15/21, annual review with minor amendments to Sections 12.2, 12.7 and 12.22


List of Ordinances amending Section 12: 1995-12 adopted November 14, 1995, Section 12.7, Management and Confidential Employees; Section 12.26, Activities on District’s Premises 2001-08 adopted August 14, 2001, Section 12.7, Management and Confidential Employees 2002-04 adopted April 23, 2002, Section 12.7, Management and Confidential Employees 2002-05 adopted August 27, 2002, Section 12.7, Management and Confidential Employees 2006-07 adopted August 8, 2006, Section 12.7, Management and Confidential Employees 2008-03 adopted February 26, 2008, Section 12.7, Management and Confidential Employees 2012-04 adopted April 18, 2012, Section 12.7, Management and Confidential Employees; Section 12.23, Notice of Board of

Directors Meetings; Section 12.25, Use of Bulletin Boards, Internet and e-mail 2014-06 adopted 12/3/14, annual review – no changes made to section 12. 2016-03 adopted 2/3/16, annual review, amending Section 12.5 2020-02 adopted 2/5/20, annual review amending Section 12.7


SECTION 13 EMPLOYEE SAFETY

INDEX Page

SECTION 13 EMPLOYEE SAFETY ...................................................................................... 1

13.1 INJURY and ILLNESS PREVENTION PROGRAM ................................................................. 2

13.1.1 Basic Principles ................................................................................................... 2

13.1.2 General Responsibilities ......................................................................................... 2

13.1.3 Compliance with Healthy and Safe Work Practices ......................................................... 3

13.1.4 Communication ................................................................................................... 4

13.1.5 Identification of Job Hazards ................................................................................... 4

13.1.6 Injury and Illness Reporting ..................................................................................... 4

13.1.7 Correcting Unsafe Conditions .................................................................................. 5

13.1.8 Employee Training Program .................................................................................... 5

13.2 WORKPLACE VIOLENCE PREVENTION ........................................................................... 5

13.2.1 Definitions ......................................................................................................... 5

13.2.2 Policy .............................................................................................................. 6

13.2.3 Reporting and Investigation Procedures ..................................................................... 6

13.3 WORKPLACE SECURITY ............................................................................................ 7

13.3.1 Employee Security ............................................................................................... 7

13.3.2 Facility Security ................................................................................................... 7


SECTION 13 EMPLOYEE SAFETY

13.1 INJURY AND ILLNESS PREVENTION PROGRAM The Padre Dam Municipal Water District believes that safe working conditions for all its employees can be attained through adequate supervision, frequent review of safety practices, including ongoing training and proper use of tools and equipment, by use of appropriate safety devices and procedures, and by complete job instruction. The District has established and maintains a District-wide Injury and Illness Prevention Program pursuant to Title 8 Section 3203 (a) of the California Code of Regulations. Section 13 represents the written program required by Title 8 Section 3203 (a). In addition to Section 13, there are established procedures, employee training, written safety rules and regulations and written programs specific to certain occupational exposures.

13.1.1 Basic Principles To make the safety program effective, the following basic principles regarding safety awareness must be recognized:

A. Accidents can and must be reduced in number. B. Prevention of accidents is an operating responsibility. C. It is possible to eliminate operating hazards. D. All employees must understand it is to their advantage as well as the District's to work

safely and they are expected to achieve this objective. E. Active and responsible supervision is a vital factor in carrying out a successful safety

program. F. Safety awareness is good business as it affects humanity, efficiency and economy.

13.1.2 General Responsibilities The General Manager is responsible for implementing the Injury and Illness Prevention Program for the District. The General Manager has delegated authority and assigned responsibilities for safety to the Safety and Risk Manager, department heads, managers and supervisors. However, all employees are responsible for compliance with District Safety Rules and Regulations, for promptly reporting to their supervisor any hazardous conditions or procedures that affect them, their fellow workers or the general public.


13.1.3 Compliance with Healthy and Safe Work Practices The District’s Injury and Illness Prevention Program ensures that employees comply with healthy and safe work practices. Substantial compliance with this provision includes recognition of employees who follow safe and healthy work practices, training and retraining programs, disciplinary action, rewards for safety suggestions and any other such means that ensure employee compliance with safe and healthy work practices. A. Employees who fail to comply with safety rules will be subject to disciplinary action, up to and

including termination. Supervisors will observe the following disciplinary procedures: 1. Verbal Warning. This warning will be documented, signed by the employee and may be

placed in the employee's personnel file. 2. Written Warning. This warning will outline the nature of the offense, the necessary

corrective action, a deadline for correcting the offense, and a statement as to the next disciplinary step should the corrective action not be taken.

3. Suspension Without Pay. Should the appropriate corrective action not be taken after the

above disciplinary steps, employees will be subject to three working days suspension without pay. In addition, employees may be immediately subject to suspension without pay for a separate serious safety violation.

4. Reassignment. Should an employee fail to take corrective action as stated above,

management retains the right to reassign the employee to a different position which will remove him/her from the subject safety rule. Should such reassignment be to a lower classification, the employee's salary will be appropriately reduced. Nothing in this paragraph shall restrict management from terminating the employee in lieu of such reclassification.

5. Termination. The employee will be subject to immediate termination if the above

disciplinary steps do not result in corrective action. Documentation describing the above mentioned efforts to correct the behavior must be present in the employee's personnel file before termination will occur.

B. Management and supervisors will be subject to disciplinary action for the following reasons:

1. Repeated safety rule violations by the District, supervisors or department employees. 2. Failure to provide adequate training prior to job assignment. 3. Failure to report accidents and provide medical attention to employees injured at work. 4. Failure to control unsafe conditions or work practices.


5. Failure to maintain good housekeeping standard and cleanliness in their departments.

6. Failure to correct safety deficiencies when noted. 7. Failure to provide and maintain proper equipment in a safe operating manner.

Supervisors who fail to maintain high standards of safety within their departments may be demoted or terminated after three documented warnings have been received during any calendar year.

13.1.4 Communication The written Injury and Illness Prevention Program is just one way the District communicates with its employees in matters relating to occupational safety and health. The Program includes provisions designed to encourage employees to inform the District of any hazards at the worksite without fear of reprisal. The District provides release time for employees to attend safety meetings, training and retraining programs, and communicates with employees both orally and in writing to ensure safe work practices. Anonymous reports of safety concerns are investigated immediately by the District. A District-Wide Safety Committee meets monthly and minutes of the meetings are posted in all District facilities.

13.1.5 Identification of Job Hazards The District has implemented procedures for identifying and evaluating workplace hazards; including scheduled periodic inspections to identify unsafe conditions and work practices. In addition, whenever the District is aware of a new or previously unrecognized hazard, the District will investigate and correct the hazard and ensure the safety of all employees. Whenever new substances, processes, procedures or equipment are introduced to the workplace, all supervisors have been delegated the responsibility for reviewing safety procedures, establishing guidelines for safe use of the new equipment and instructing employees on the proper use of the product and/or equipment.

13.1.6 Injury and Illness Reporting Any employee injured on the job, or who has an occupational illness, is required to immediately report the injury or occupational illness to his/her supervisor and the Company Nurse. The Company Nurse is a telephone line provided by our insurance carrier, SDRMA. The purpose of the line is to provide front line access to immediate health care triage for the purposes of taking care of our employees in an illness/injury situation. Supervisors are required to instruct the employee to contact The Company Nurse (877-518-6711) to report the claim and supervisors are required to prepare an Accident Investigation Report that is subsequently reviewed by the Safety and Risk Manager and the Safety Committee. The supervisor will meet with the injured worker to review safety guidelines and procedures to correct unsafe work practices, if any.


13.1.7 Correcting Unsafe Conditions The District’s Injury and Illness Prevention Program includes methods for correcting unsafe or unhealthy conditions, work practices and work procedures in a timely manner. All employees have the responsibility to report unsafe conditions and accidents immediately to their supervisor. Unsafe conditions, noticed through periodic inspections or through Safety Committee inspections, are corrected immediately. Supervisors are expected to conduct on-the-job training, to observe employee performance and correct employees when necessary to ensure that safe procedures are followed.

13.1.8 Employee Training Program The District’s Safety Rules and Regulations are provided to each new employee and work is arranged so that the employee has an opportunity to read and study them during the first 10 days of employment. Supervisors instruct employees who are given new job assignments for which job training has not previously been received. In addition, the District provides training whenever new substances, procedures, processes or equipment are introduced into the workplace and represent a new hazard. The District investigates any report of a new or unrecognized hazard. Supervisors, through the Safety Rules and Regulations, are to be aware of the hazards to which employees directly under their control are exposed.

13.2 WORKPLACE VIOLENCE PREVENTION Padre Dam Municipal Water District is committed to providing its employees a work environment that is safe and secure. Consistent with this policy, the District will work with employees to maintain a workplace free from threats or acts of physical violence, including intimidation, harassment, coercion or other disruptive behavior.

13.2.1 Definitions The following definitions apply:

A. Workplace violence means acts of violence against an employee or member of the public, threats to inflict physical harm or damage to property, or any purposeful or knowing behavior which would cause a reasonable person to feel threatened with physical harm. Workplace violence may be committed by an employee or non-employee. Workplace violence does not include reasonable force to defend oneself or others.

B. Bullying is the use of physical or verbal coercion to obtain control over others or to be

habitually cruel to others. C. Physical assault is the attempt to act to strike or touch a person or that person’s property

with intent to cause hurt or harm.

D. Stalking is the persistent following, contacting, watching or any other such threatening actions that compromise the peace of mind or the personal safety of the individual.


E. Verbal abuse is the use of speech, writing or gestures that is threatening, insulting, intimidating, obscene, crude or derogatory directed at an individual or group, face-to-face or by any electronic communications with the intent to cause a person fear or injury.

F. Weapon is any firearm, whether loaded or unloaded, or any other device designed as a

weapon or, through its use, is capable of producing bodily harm or death; or imitation weapon or any other device or instrument which is, or can be used to threaten or cause bodily harm or death.

G. Possession is defined as having a weapon on one’s person, or in an area subject to one’s

control in a District owned property.

13.2.2 Policy No person, including but not limited to employees, relatives of employees, customers, vendors, contractors shall engage in violence, threats, physical assault, battery, harassment, verbal abuse, stalking, bullying, intimidation or other disruptive behavior in the workplace. All threats will be taken seriously, and not dismissed as harmless joking or “blowing off steam”. No employee or former employee shall possess or bring to the worksite, on their person, or in their belongings or vehicle, any non-job related weapons of any type. If authorized to carry or possess a weapon in connection with job duties, employees shall use the weapon only in accordance with manufacturer’s directions, specific training procedures and all applicable District, State and Federal laws. When employees witness any instances of any person violating this policy, they shall make a report immediately to their Supervisor, Department Head, Director of Human Resources & Administrative Services or General Manager.

13.2.3 Reporting and Investigation Procedures Reports of incidents may be made verbally or in writing, using the Workplace Violence/Threat Report, to a Supervisor, Manager, Department Head, Director of Human Resources & Administrative Services or General Manager. The District will form a Threat Assessment Team consisting of:

• Director of Human Resources & Administrative Services • Safety and Risk Manager • Employee Assistance Plan Representative • Department Head(s) of affected departments

The Threat Assessment Team is responsible for the following:

1. Assessing the District’s readiness for dealing with workplace violence. This will include a

review of physical facilities, security measures and employee training.


2. Making recommendations to improve security and training. 3. Serving as liaison with specialized resources from the community. 4. As assigned by the Director of Human Resources, conducting investigations of identified

situations where workplace violence has occurred, or is alleged to have occurred, or where it is likely to occur.

5. Advising appropriate follow-up actions such as EAP counseling, Fitness for Duty

examination or discipline for employees engaging in workplace violence or threats of violence.

Specific procedures about prohibited behavior, employee and Supervisor responsibilities, how to report threats or acts of violence as described in this policy shall be incorporated into the Employee Life Safety Guide.

13.3 WORKPLACE SECURITY The District recognizes that there is no substitute for employee awareness about general security and strives to maintain an environment in which employees will report suspicious activities in and around District facilities. Toward this end, the District adopts the following security policy:

13.3.1 Employee Security All employees are required to wear an identification badge while on District property. Field workers in a District issued uniform are not required to wear an identification badge but are required to have it with them at all times while on District property . All visitors to District facilities are required to wear a GUEST badge, sign in at each District facility and show the receptionist photo identification. To the extent possible, all visitors to District facilities are to be accompanied by a District employee.

13.3.2 Facility Security Any suspicious activity that requires immediate law enforcement attention is to be reported immediately by calling 9-911 from a District land line phone or 911 from a District cell phone. Other suspicious signs or activities are to be reported immediately to the Safety and Risk Manager. All instances of intrusion, vandalism or other unlawful activity on District property are to be reported to law enforcement. Employees are responsible for building security. The last employee to leave a facility is responsible for making sure the alarm is set and the doors are locked.


List of Ordinances amending Section 13: 2001-09 adopted 08/28/01, rewriting Section 13 2003-02 adopted 05/13/03, adding 13.2 Workplace Violence Prevention 2004-04 adopted 03/23/04, adding 13.3 Workplace Security 2013-08 adopted 12/18/13, annual review amending various sections 2014-06 adopted 12/3/14, annual review - no changes made to Section 13 2021-05 adopted 9/15/21, annual review with minor amendments.

Section 14 Standard Practices & Policies Page 1 of 30 Padre Dam Municipal Water District

SECTION 14 DISTRICT ADMINISTRATION POLICY

INDEX Page

14.1 POLICY FOR ADMINISTRATION OF THE DISTRICT ...................................................................4

14.2 GOVERNING BODY OF THE DISTRICT .....................................................................................4

14.2.1 Powers and Duties of the Board of Directors ..........................................................................4

14.2.2 Authority of Individual Board Members ..................................................................................5

14.2.3 Quorum and Voting Requirements .........................................................................................5

14.2.4 Official Seal of the District .....................................................................................................5

14.3 MEMBERS OF THE BOARD OF DIRECTORS .............................................................................5

14.3.1 Divisions of the District ..........................................................................................................5

14.3.2 Elections and Terms of Office.................................................................................................5

14.3.3 Financial Disclosure Statements .............................................................................................6

14.3.4 Appointment in Lieu of Election .............................................................................................6

14.3.5 Appointment to Fill a Vacancy ...............................................................................................6

14.3.6 Required Training ..................................................................................................................7

14.4 OFFICERS OF THE BOARD ......................................................................................................7

14.4.1 President ..............................................................................................................................7

14.4.2 Vice President .......................................................................................................................8

14.5 STANDING COMMITTEES OF THE BOARD ..............................................................................8

14.5.1 Ad Hoc or Special Committees ...............................................................................................8

14.6 BOARD MEETING AGENDAS ..................................................................................................9

14.6.1 Requirement to Post .............................................................................................................9

14.6.2 Agenda Item Descriptions ......................................................................................................9


14.6.3 Non-Agenda Items ................................................................................................................9

14.6.4 Opportunity for Public Comment ...........................................................................................9

14.6.5 Agenda Preparation ............................................................................................................ 10

14.6.6 Agenda Distribution ............................................................................................................ 10

14.6.7 Agendas and Related Materials as Public Records ................................................................. 10

14.7 MEETINGS OF THE BOARD OF DIRECTORS ........................................................................... 11

14.7.1 Regular Meetings ................................................................................................................ 11

14.7.2 Special and Emergency Meetings ......................................................................................... 11

14.7.3 Adjourned Meetings ........................................................................................................... 11

14.7.4 Closed Meetings ................................................................................................................. 11

14.8 RIGHT OF PUBLIC TO PARTICIPATE IN BOARD MEETINGS ..................................................... 12

14.8.1 Meetings to be Open and Public .......................................................................................... 12

14.8.2 Public not Required to Register Attendance .......................................................................... 13

14.8.3 Right of the Public to Address the Board .............................................................................. 13

14.8.4 Meetings Closed to the Public .............................................................................................. 13

14.9 BOARD MEETING PROCEDURES .......................................................................................... 13

14.9.1 Board Actions and Voting Procedures ................................................................................... 13

14.9.2 Public Hearings ................................................................................................................... 14

14.9.3 Rules of Order..................................................................................................................... 14

14.10 MINUTES OF BOARD MEETINGS .......................................................................................... 15

14.10.1 Content of the Minutes ....................................................................................................... 15

14.10.2 Approval and Authentication ............................................................................................... 15

14.10.3 Resolutions and Ordinances................................................................................................. 15


14.11 COMPENSATION OF THE BOARD OF DIRECTORS .................................................................. 15

14.11.1 Per Diem Compensation ...................................................................................................... 15

14.11.2 Per Diem and Meeting Authorization ................................................................................... 16

14.11.3 Representatives Serving on the San Diego County Water Authority Board and the Metro Commission/Metro Wastewater JPA .................................................................................... 18

14.12 REIMBURSEMENT OF EXPENSES .......................................................................................... 18

14.12.1 Purpose .............................................................................................................................. 18

14.12.2 Background ......................................................................................................................... 18

14.12.3 Use of District Credit Cards ................................................................................................... 18

14.12.4 Travel/Conference Expense .................................................................................................. 18

14.13 BENEFITS ............................................................................................................................ 21

14.13.1 Board Health and Welfare Plan ............................................................................................. 21

14.13.2 Insurance Benefits for Retired Directors ................................................................................ 23

14.13.3 Insurance Benefits for Spouses of Directors Retired Prior to Jan 1, 1995 ................................. 23

14.14 PADRE DAM OWNED TABLET COMPUTING DEVICES ............................................................ 24

14.14.1 Policy .................................................................................................................................. 24

14.14.2 Background and Purpose ...................................................................................................... 24

14.14.3 Procedure ........................................................................................................................... 24

14.14.4 Tablet and Software Use ...................................................................................................... 24

14.14.5 Return of Device .................................................................................................................. 26

14.15 RESPONSIBILITIES AND AUTHORITY OF GENERAL MANAGER ............................................... 26

14.15.1 Legal Authority ................................................................................................................... 26

14.15.2 Emergency Authority ........................................................................................................... 27

14.15.3 Duties and Responsibilities ................................................................................................... 28

14.16 DUTIES AND RESPONSIBILITIES OF LEGAL COUNSEL ............................................................. 28


SECTION 14 DISTRICT ADMINISTRATION POLICY

14.1 POLICY FOR ADMINISTRATION OF THE DISTRICT The purpose of this policy is to codify applicable provisions of the California Water Code and the California Government Code, and policies for the administration of the Board and management of the District. In addition to compliance with this section, the Board must also comply with Section 20, "Code of Ethics and Ethical Behavior." If any provision within these sections is found to be inconsistent with applicable statutes, the law shall govern.

14.2 GOVERNING BODY OF THE DISTRICT The Board of Directors is the governing body of the District. [Water Code §71270].

14.2.1 Powers and Duties of the Board of Directors All powers, privileges and duties vested in or imposed upon the District by law and the Municipal Water District Act of 1911 shall be exercised and performed by the Board of Directors [Water Code §71300] as a body, except as the Board shall delegate executive, administrative and ministerial powers to officers and employees of the District. [Water Code §71301].

The Board may delegate and redelegate to the officers of the District, under such conditions and restrictions as shall be fixed by the Board, the power to bind the District by contract [Water Code §71309]. The Board shall appoint, by majority vote, a General Manager, Attorney and Auditor, who shall serve at the pleasure of the Board, and shall define their duties and fix their compensation. The auditor shall have a limited multiyear term as determined by the Board. The Board shall conduct an annual performance evaluation and review the compensation of the General Manager, in Closed Session, at a regular meeting [Gov. Code §54956 (b)] held during the month of November of each year. The Board shall conduct an annual performance evaluation review, in Closed Session, of the Attorney and Law Firm in which the Attorney represents, and shall communicate the results of this evaluation in letter form to provide performance feedback on an annual basis.

The Board may require and fix the amount of all of fiscal bonds necessary for the protection of the funds and property of the District. [Water Code §71306]. The Board shall designate a depository or depositories to have custody of the funds of the District [Water Code §71311], and may issue bonds, borrow money and incur indebtedness as authorized by law. [Water Code §71312.5].

It shall be the responsibility of the Board to assure the District is well managed and responsive to the interests of those it represents, to comply with the law and use powers lawfully, to safeguard the assets of the District, to appoint a General Manager and Legal Counsel, and to determine the objectives and policies of the District.


14.2.2 Authority of Individual Board Members Individual Board Members, except as provided herein or otherwise authorized by the Board, shall have no power to act for the District or the Board, or to direct the staff of the District in the performance of their duties. This shall not preclude individual Board Members from making reasonable requests for information or staff assistance through the General Manager. Any requests by a Board Member that requires more than two hours staff/legal/consultant time requires Board approval. Any information provided to an individual Board Member shall also be available to other members of the Board, or to the Board as a body.

When representing the District, Board Members comments should reflect approved Board policies or actions. However, a Board Member has the right to express personal opinions on matters of Board concern. When expressing such an opinion in public, the Board Member must make it clear that it is only his/her opinion and not the position of the Board. Such an opinion will not be made using District letterhead/logo.

14.2.3 Quorum and Voting Requirements A majority of the Board of Directors shall constitute a quorum for the transaction of business. No ordinance, resolution or motion shall be passed without three affirmative votes. [Water Code §71274].

14.2.4 Official Seal of the District The official seal of the District bearing the words "Padre Dam Municipal Water District, founded November 23, 1955," was adopted by the Board in accordance with the law. [Water Code §71591, Resolution No. 77-2].

14.3 MEMBERS OF THE BOARD OF DIRECTORS

14.3.1 Divisions of the District The Board of Directors of Padre Dam Municipal Water District consists of five Directors, each representing a division of the District. Each Director shall be a resident of the division for which he or she is elected. [Water Code §71250]. Boundary lines of the divisions are established by the Board, and may be relocated prior to each election. [Water Code §71540].

14.3.2 Elections and Terms of Office Elections are held in accordance with the Uniform District Election Law. [Water Code §71505, Elections Code §10500 et seq.] Each Director is elected for a term of four years, or until his or her successor qualifies and takes office, and shall assume office at 12:00 noon on the first Friday in December following the election. [Water Code §71252, §71253]. The terms of office are staggered so that elections are held in November of each even-numbered year.


Directors representing Divisions 2 and 4 are elected each leap year, and Directors representing Divisions 1, 3 and 5 are elected in the intervening even-numbered election years. Each Director shall file an official oath of office prior to assuming office on the Board, and such oaths shall be kept on file by the Board Secretary. [Gov. Code §1363 (a)(4)].

14.3.3 Financial Disclosure Statements Directors shall disclose their private economic interests by filing statements as required under the Political Reform Act of 1974, and the District's Conflict of Interest Code, and shall disqualify themselves from participating in decisions in which they have a financial interest. Directors shall also file candidate and officeholder campaign statements, as required by the Political Reform Act.

14.3.4 Appointment in Lieu of Election If no person has filed a declaration of candidacy for the office of director by the 83rd day before the election, the Board may request the County Board of Supervisors to make an appointment prior to the last Monday before the last Friday in November in which the election was held; if only one person has filed a declaration of candidacy for such office, the County shall appoint that person to the office of director. [Elections Code, §10515(b)].

14.3.5 Appointment to Fill a Vacancy Whenever a vacancy occurs in the office of director, the remaining Directors shall, within 60 days after the vacancy occurs, appoint a qualified person from the division in which the vacancy occurs or call an election to fill the vacancy. [Water Code §71254, Gov. Code §1780]. If the vacancy occurs in the first half of a term of office and at least 130 days prior to the next general district election, the person appointed to fill the vacancy shall hold office until the next general district election that is scheduled 130 or more days after the date the District Board is notified of the vacancy, and thereafter until the person who is elected at that election to fill the vacancy has been qualified. The person elected to fill the vacancy shall hold office for the unexpired balance of the term of office. [Gov. Code §1780(d)(2)]. If the vacancy occurs in the first half of a term of office, but less than 130 days prior to the next general district election, or if the vacancy occurs in the second half of a term of office, the person appointed to fill the vacancy shall fill the balance of the unexpired term of office. If the Board determines to fill the vacancy by appointment, a notice of vacancy must be posted in three or more conspicuous places in the District, at least 15 days before the appointment is made. The Board may determine whether it desires additional publicity regarding the vacancy by the publication of a notice or other methods. As an alternative to making an appointment, the remaining members of the Board may within 60 days of the vacancy call an election to fill the vacancy. If the Board neither fills the vacancy nor calls an election, the Board of Supervisors may fill the vacancy within 90 days of the date of the vacancy, or may order the District to call an election. If the Board of Supervisors fails to act, the District must call an election.


A Director appointed to fill a vacancy may assume office immediately upon appointment and the execution of an oath of office.

14.3.6 Required Training Directors shall complete at least two hours of Ethics Training within one year from the first date of service, and once every two years thereafter. [Gov. Code Section 53234]. Additionally Directors shall complete at least two hours of Sexual Harassment Prevention Training within six months of taking office, and once every two years thereafter. [Gov. Code Sections 53237 et seq.]. Certificates of completion for both trainings shall be kept on file by the Board Secretary.

14.4 OFFICERS OF THE BOARD The officers of the Board shall consist of the President, Vice President, Treasurer and Secretary. The Treasurer and Secretary may, but need not be members of the Board. The President and Vice President shall serve one-year terms and shall be elected to such term by the Board at its first meeting in the month of January of each year. [Ord. 2013-02; Water Code §71273]. At such meeting, the current President or, in his or her absence, the current Vice-President, shall preside until the new President is elected. The Board shall appoint, by majority vote, at its pleasure, a Treasurer and Secretary, and shall define their duties and fix their compensation range if a District employee. [Water Code §71340]. The Board appoints to the position of Board Secretary that District employee who also serves as Executive Assistant to the District's Management Team, and appoints to the position of Treasurer, that District employee who also serves as the Director of Finance/Chief Financial Officer of the District. The General Manager is responsible for hiring the positions of Executive Assistant to the District’s Management Team and the Director of Finance/Chief Financial Officer and shall make a recommendation to the Board for formal appointment as Board Secretary and Treasurer, respectively. Each of these officers shall serve at the pleasure of the Board. If an appointed officer is a District employee, that officer shall report directly to the General Manager, and the General Manager shall perform an annual evaluation and set the employee's compensation in accordance with the Salary Schedule approved annually by the Board for all employees.

The Board may create any necessary offices and establish the powers and duties of all officers. [Water Code §71305].

14.4.1 President The President shall preside over the meetings of the Board of Directors in accordance with established rules of procedure, and shall maintain order and decorum. The President shall authenticate by signature all official records of the District as required by law or as directed by a majority vote of the Board. It shall be the responsibility of the President to set the time and place for any special meeting of the Board, and to appoint, with Board confirmation, any standing and ad hoc committees of the Board and representatives to outside organizations, as may be required.


The President shall carry out such other duties and responsibilities as required or imposed by law or a majority vote of the Board. [Water Code §71360].

14.4.2 Vice President If the President is absent or unable to act, the Vice President shall exercise the powers of the President granted by law. [Water Code §71273].

14.5 STANDING COMMITTEES OF THE BOARD Standing committees of less than a quorum of the Board (two Board Members) may be created to study and advise the full Board regarding certain areas of concern. Appointments to standing committees and designation of the chairperson shall be made by the President, with consent of the Board, following the selection of Board officers, and may be made as necessary due to vacancies on the Board. The General Manager shall assign appropriate staff to serve on each committee. Committees shall meet as determined by their members or as requested by staff. Directors that are not members of a standing committee may attend only as observers unless the agenda of the committee meeting indicates that a special meeting of the Board has also been noticed as required by law, at which the Board will discuss but not take any action. Whenever a standing committee meeting is also noticed as a special Board meeting, it shall be conducted as a committee meeting and Directors that are not members of the committee may participate in discussions upon recognition by the committee chair, but only members of the committee are entitled to make, second or vote on any motion or other action of the committee. Any actions taken by the committee pursuant to the posted agenda shall be deemed recommendations of the committee for the full Board to consider at a future Board meeting. In the event a committee quorum is not present, the meeting may continue as a special board meeting to hear informational reports on the agenda. Any action items will be agendized for a future committee meeting or regular board meeting. The Board retains all powers, privileges and duties to exercise and perform the business of the District, and committees of the Board are not empowered to act for the Board. Meetings of Board Standing Committees are subject to the Ralph M. Brown Act. Full Board discussion and public comment on committee recommendations shall be encouraged prior to Board action.

14.5.1 Ad Hoc or Special Committees The President may appoint, with Board confirmation, ad hoc or special committees of less than a quorum of the Board, as needed, to undertake specific assignments on behalf of the Board. Such a committee shall exist for a specified term or until its assigned responsibilities are completed.


14.6 BOARD MEETING AGENDAS Board meeting agendas are prepared, posted and distributed in accordance with provisions of the Ralph M. Brown Act, as set forth in §54950 et seq. of the Government Code.

14.6.1 Requirement to Post At least 72 hours prior to a regular meeting, the Secretary shall post, or cause to be posted, an agenda specifying the time and location of the meeting, in a place that is freely accessible to members of the public. [Gov. Code §54954.2(a)]. Requirements for posting the agenda for special meetings are described in more detail below.

14.6.2 Agenda Item Descriptions The agenda for a regular meeting shall contain a brief general description of each item of business to be transacted or discussed at the meeting. [Gov. Code §54954.2(a)].

The agenda for regular or special meetings may provide a consent calendar for routine items. An information agenda may also be provided for reports by Board members, District Counsel, and the General Manager, or other items not requiring action.

14.6.3 Non-Agenda Items No action shall be taken on any item not appearing on the posted agenda [Gov. Code §54954.2(a)], except as follows [Gov. Code §54954.2(b)]:

A. When a majority of the Board decides there is an emergency situation, as defined in

§54956.5 of the Government Code.

B. When two-thirds of the members [or all members if less than two-thirds are present] determine that the need to take action arose subsequent to the agenda being posted.

C. The item appeared on the agenda of, and was continued from a meeting held not more than five days earlier.

14.6.4 Opportunity for Public Comment Every agenda for regular meetings shall provide an opportunity for members of the public to address the Board on matters of interest to the public that are within the subject matter jurisdiction. [Gov. Code §54954.3(a)]. The Secretary shall provide mailed notices of all meetings to any person who has filed an annual written request with the Secretary. [Gov. Code §54954.1]. An annual subscription of $20 is required for this service to cover the cost incurred by the District. Additional information and resources regarding receiving meeting and agenda notifications is addressed in section 14.6.6 below.


14.6.5 Agenda Preparation The Secretary of the Board is responsible for preparing the agenda and assembling all supporting documents, including staff and committee recommendations, reports and exhibits. Agenda items are generated by staff, and submitted to the General Manager for approval before being placed on the agenda. Directors may also initiate items to be placed on Board agendas. Agenda items requested by the public must be received no later than 5:00 pm on Friday of the week preceding agenda posting. Earlier deadlines may be established by staff as necessary to allow sufficient time for preparation of related staff reports.

14.6.6 Agenda Distribution The agenda, along with related documents, is published and distributed to members of the Board and administrative staff no later than five days prior to the next meeting. Exceptions may be due to a holiday or some emergency, in which case distribution may be delayed. Any supplemental documents should be delivered no later than one day prior to the meeting. The complete Board agenda and related documents will be made available to the public on the District's website and in the lobby of the District Customer Service Center. The agenda may also be mailed to local newspapers, other public agencies, the District's auditor and insurance agent, and property owners, firms or individuals who subscribe on an annual basis. [Gov. Code §54954.1]. Any person desiring to electronically receive the Board agenda may sign up for the "Notify Me" program on the District's website (www.padredam.org) to be notified via e-mail or text that the agenda is available to view or download. Alternatively, any person desiring to receive copies of the Board agenda summary by mail shall make a request in writing to the Secretary, and shall pay in advance an annual fee of $20. [Gov. Code §54954.1]. Any person may obtain from the Secretary copies of agenda backup materials, upon payment of the standard fee charged for copies of public records in accordance with the public records policy. Any person desiring to receive hard copies of the complete Board agenda by mail shall make a request in writing to the Secretary, and shall pay in advance an annual fee of $600.

14.6.7 Agendas and Related Materials as Public Records Notwithstanding provisions of the Public Records Act, agendas and other writings are public records upon distribution to all or a majority of the members of the Board for discussion or consideration during a Board meeting, except for items exempt from public disclosure under Government Code §6253.5, §6254, §6254.3, §6254.7, §6254.15, §6254.16, §6254.22 or §6254.26 of the California Public Records Act. [Gov. Code §54957.5(a)]. Public record materials distributed prior to commencement of the Board meeting, or during the meeting and prior to their discussion, shall be made available immediately for public inspection. [Gov. Code §54957.5(a) and (b)]. Public record materials distributed during their discussion in a Board meeting shall be made available for public inspection immediately or as soon thereafter as practicable. [Gov. Code §54957.5(c)].


14.7 MEETINGS OF THE BOARD OF DIRECTORS

14.7.1 Regular Meetings Regular meetings of the Board of Directors shall be held on the first and third Wednesdays of each month, at 4:00 pm in the Board Room of the District’s Customer Service Center, at 9300 Fanita Parkway, Santee, California. Regular meetings may be rescheduled or cancelled as needed. All meetings of the Board shall be noticed and conducted in conformance with the provisions of the Ralph M. Brown Act, as set forth in Government Code §54950 et seq.

14.7.2 Special and Emergency Meetings Special meetings of the Board of Directors may be called at the time and in the manner provided by law. [Gov. Code §54956]. Written notice must be delivered personally or by any other means to each member of the Board and to members of the media requesting such notice in writing and by posting on the District's Website, at least 24 hours before the time of the meeting as specified in the notice. The notice shall state the time and place and the business to be transacted, and no other business shall be transacted. The notice shall also be posted at least 24 hours before the meeting in a site freely accessible to the public. The written notice may be dispensed under conditions set forth in the law. [Gov. Code §54956].

Emergency meetings may be held under these same provisions, when prompt action is needed because of actual or threatened disruption of public facilities or the public health and/or safety, except that the 24-hour notice is not required. [Gov. Code §54956.5].

14.7.3 Adjourned Meetings A regular or special meeting may be adjourned and re-adjourned to a time and place specified in the order of adjournment. [Gov. Code §54955]. Less than a quorum may so adjourn a meeting, and if no member of the Board is present, the Secretary may adjourn the meeting. A notice of such adjournment must be posted within 24 hours at or near the door of the place where the meeting was held. A public hearing can be continued in the same manner, except that a copy of the notice of continuance must be posted immediately after the meeting. If the hearing is continued to a time less than 24 hours after the time specified in the notice of hearing, a copy of the notice of continuance of hearing shall be posted immediately following the meeting at which the hearing was ordered to be continued. [Gov. Code §54955.1].

14.7.4 Closed Meetings The Board may hold a closed session only as authorized by the Brown Act, where restrictions are more fully described under Government Code §54950 et seq. The general reason for the closed session must be made public, either before or after the meeting, and in certain cases additional information must be disclosed. Only members of the Board, plus any necessary support staff or any witnesses, shall attend, and all others shall be excluded.


The Board shall publicly report any action taken in closed session in accordance with the requirements of Government Code §54957.1. In addition, any action taken during a closed session, and any roll call vote thereon, to appoint, employ, dismiss, accept the resignation of, or otherwise affect the employment status of a public employee arising out of closed session shall be publically reported at the public meeting during which the closed session is held; provided, however, that the report of a dismissal or of the nonrenewal of an employment contract shall be deferred until the first public meeting following the exhaustion of administrative remedies, if any. [Gov. Code §54957.1]. The Board may designate the Secretary or other officer to keep and enter in a minute book a record of the topics discussed and decisions made during a closed meeting. The closed session minute book and any staff reports or related documents are not public records, and shall be available only to members of the Board. Such minute book may consist of a tape recording [Gov. Code §54957.2]. The Board may hold a closed meeting only for the following purposes: [Gov. Code §54956.75-54957].

A. To consider the appointment, employment, performance evaluation or dismissal of an employee, or to hear complaints brought against such employee, unless the employee requests a public hearing.

B. To give instructions to negotiators regarding real estate transactions or labor negotiations.

C. To discuss matters posing a threat to the security of public buildings, a threat to the

security of essential public services including water, drinking water, wastewater treatment, natural gas service and electric service, or a threat to the public’s right of access to public services or public facilities.

D. To consider a confidential final draft audit report from the California State Auditor's

Office.

E. To meet with its legal counsel to discuss pending or potential litigation, or to consider initiating litigation. [Gov. Code §54956.9(a), (b) and (c)].

14.8 RIGHT OF PUBLIC TO PARTICIPATE IN BOARD MEETINGS

14.8.1 Meetings to be Open and Public All meetings except closed meetings shall be open and public, and all persons shall be permitted to attend any meeting of the Board of Directors, except as provided under the law. [Gov. Code §54953(a)].

Any person attending an open and public meeting of the Board shall have the right to record the proceedings, unless it is determined by the Board that such recording would constitute a disruption of the proceedings. [Gov. Code §54953.5].


14.8.2 Public not Required to Register Attendance Members of the public are not required, as a condition to attend a Board meeting, to register his or her name or provide any other information. Any attendance list circulated or otherwise made available in the Board Room shall state that signing or registering is voluntary. [Gov. Code §54953.3]

14.8.3 Right of the Public to Address the Board Members of the public may address the Board regarding items of interest to the public which are within the subject matter jurisdiction of the Board, providing that no action shall be taken on any item not appearing on the agenda, unless otherwise authorized under Government Code §54954.2(b).

The Board may require speakers to state their name and address for the record. Persons desiring to address the Board regarding items listed on the agenda are asked to present a speaker's slip to the Board President or the Secretary prior to the meeting, indicating their name and address, and the agenda item on which they wish to speak. The Board may limit the total amount of time allocated to public testimony on particular issues and for each individual speaker. [Gov. Code §54954.3(b)]. The public may also address the Board by written communication submitted to the President or to the Secretary, prior to or during the meeting.

14.8.4 Meetings Closed to the Public Part or all of a regular, special or adjourned meeting may be closed to the public under special conditions, as described herein in Section 14.7.4.

14.9 BOARD MEETING PROCEDURES

14.9.1 Board Actions and Voting Procedures The Board shall act only by resolution, ordinance or action upon a motion duly made, seconded and passed. [Water Code §71276]. The vote of a majority of the Board is sufficient for most official actions. Three affirmative votes shall constitute a majority. All ordinances require a roll call vote, and the results thereto shall be entered into the record of proceedings. [Water Code §71277]. The Board shall adopt an ordinance when required by law or to amend either the District's Rules and Regulations or the Standard Practices and Policies. Ordinances normally take effect in 30 days, unless otherwise stated. Resolutions and other motions may be passed by a voice vote, but on demand of any Board member, the roll shall be called and the vote recorded. [Water Code §71278]. All motions, including a motion to adopt an ordinance or approve a resolution, shall require a second. Any member of the Board, including the President, may make or second a motion, and the President shall vote on all motions unless disqualified or abstaining.


Votes of the members of the Board shall not be cast or exercised by proxy. [Water Code §71279]. Items on the consent calendar may be approved without discussion upon a single motion duly made, seconded and passed. Upon the request of a Director or a member of the public, an item on the consent calendar shall be removed from the consent calendar and placed on the action agenda with other items for discussion and/or public comment prior to being voted upon. The Board shall publicly report in the minutes any action taken and the vote or abstention on that action of each member present for the action. [Gov. Code §54953].

14.9.2 Public Hearings Public hearings shall be given proper public notice, as required by law. Public Hearings held pursuant to Proposition 218 for water and sewer rates shall be held at 6:00 pm. The staff shall present such information, exhibits and recommendations as may be appropriate. The presiding officer shall open the hearing for public comment. Board Members and staff may ask questions of members of the public during testimony, and may respond to relevant questions raised by the public. Board Members shall refrain from discussing the issue among themselves or expressing their personal views until all the testimony has been heard. At the conclusion of public testimony, the hearing shall be closed, and the Board may discuss the matter and take action, as desired.

14.9.3 Rules of Order Except as otherwise provided by law, all meetings of the Board shall be conducted on the basis of precedent and customary rules of order, in a manner facilitating the orderly transaction of business. Upon determination of a quorum, items on the agenda may be reordered or withdrawn upon request of either a Board member or staff.

The presiding officer shall allow reasonable opportunity for full discussion on any issue presented to the Board for consideration, and may terminate debate as appropriate. Each Board Member shall be recognized by the chair before speaking, and shall be allowed to speak without interruption.

A motion by any member shall be seconded prior to any discussion thereon. Any member may move to amend or table the motion, refer it to a committee, propose a substitute motion, or call for the question. The presiding officer may restate the motion if deemed appropriate before calling for a vote, and shall announce its passage or failure.


14.10 MINUTES OF BOARD MEETINGS The Secretary shall record and keep the minutes of meetings of the Board of Directors in a book maintained for that purpose and retained in accordance with the District’s Record Retention Schedule. The meetings may also be recorded, and such recordings shall be maintained in accordance with the District's Records Retention Schedule.

14.10.1 Content of the Minutes The minutes shall contain primarily a record of what was done at the meeting, not what was said by the members, and shall not reflect the opinion of the Secretary. Any Director may request his or her oral or written statement, or an abstract thereof, to be entered into the minutes. The minutes shall indicate the maker and seconder of each motion, the votes in favor and opposed, and any Board member absent or abstaining from the vote. The minutes may contain brief descriptions of documents presented to the Board, and may summarize staff reports and the Board discussion leading to the actions taken.

14.10.2 Approval and Authentication The minutes shall be approved by the Board upon publication, along with any amendments. The President or other person who may preside at the meeting shall authenticate the minutes by signature, and the Secretary shall attest thereto.

14.10.3 Resolutions and Ordinances All resolutions and ordinances adopted by the Board may be referred to in the minutes by number and title, but shall be recorded in their entirety in books kept for that purpose and retained in accordance with the District’s Record Retention Schedule. Resolutions and ordinances shall indicate the vote of the members of the Board, and shall be authenticated by the presiding officer and attested to by the Secretary. 14.10.4 Public Records Books of minutes, resolutions and ordinances shall be kept at such place as the Secretary deems appropriate, and shall be presented for inspection by any person at any reasonable time, upon request to the Secretary. Any copies of resolutions, ordinances, or excerpts from approved minutes provided to the public shall be certified by the Secretary.

14.11 COMPENSATION OF THE BOARD OF DIRECTORS

14.11.1 Per Diem Compensation Each Director shall receive compensation on a per diem basis in an amount not to exceed $145 for one meeting/function per day. [Ordinance 2019-02, effective July 1, 2019]. Attendance at meetings authorized in advance by the Board of Directors, or as specified in Section 14.11.2, will be eligible for


compensation and reimbursement of reasonable expenses incurred for each day's service rendered. Compensation and expense reimbursement for other services shall require a specific request and approval by the Board in advance. [Gov. Code 53232.2 (f)]. The maximum number of meetings for which a Director may receive compensation from the District is limited to a total of 10 days in any calendar month. No compensation shall be paid to a Director until a claim for per diem compensation has been filed on the "Per Diem and Mileage Claim Form" provided by the District. All such claims shall be filed within 30 days of the meeting. Listing of non-qualified meetings on the claim form is not permitted even when "no charge (N/C)" is indicated. Changes in Director compensation may be considered on an annual basis in conjunction with the development of the District's budget. If the Board determines to proceed with a change, a public hearing will be noticed to receive public comment prior to any action being taken. Changes in compensation shall require the approval of the Board at an open meeting held at least 60 days prior to the effective date of the change and cannot exceed five percent per calendar year following the operative date of the last adjustment. [Water Code 20202-20207].

14.11.2 Per Diem and Meeting Authorization Attendance at meetings pre-authorized by the Board of Director will be eligible for compensation and reimbursement of reasonable expenses, provided that the attendee(s) provide a brief report on the meeting attended at the next Regular Board meeting. [Gov. Code 53232.3 (d)]. A. Pre-approved meetings for ALL Directors The following meetings are pre-approved for all Directors to attend and receive payment of per diem compensation and expense reimbursement: 1. Padre Dam Regular and Special Board Meetings

2. Padre Dam Standing Committee meetings when also noticed as a Special Board Meeting 3. Conferences, seminars, workshops, or webinars of the following organizations:

> American Water Works Association (AWWA) > Association of California Water Agencies (ACWA) > Best, Best and Krieger Legal Updates (BB&K) > California Special Districts Association (CSDA) > Colorado River Water Users Association (CRWUA) > Special Districts Leadership Foundation (SDLF) > Metropolitan Water District of Southern California > San Diego County Water Authority (CWA) > Water Education Foundation > Water Research Foundation > CalDesal

4. Meetings of the following organizations: > Council of Water Utilities (COWU) > San Diego County Water Authority Board and Committee meetings (CWA)


> Metro Commission/Metro Wastewater Joint Powers Authority (Metro JPA) > East County Advanced Water Purification Joint Powers Authority (East County AWP

JPA) > Metro TAC (Technical Advisory Committee) (Limited to 2 Board Members each

meeting) > California Special Districts Association, San Diego Chapter > Association of California Water Agencies (ACWA) Committee meetings held in

conjunction with the ACWA Spring and Fall Conference > Tours of water projects sponsored by the San Diego County Water Authority,

Metropolitan Water District of Southern California and the Association of California Water Agencies (ACWA)

5. Meetings with the District General Manager 6. District's Assessment and Direction Workshops

7. Tours of District facilities 8. Tours, ground breakings, and open houses of Water Agencies in San Diego County 9. Participation and completion of Ethics Training, including online courses, to meet the

requirements of Government Code Sections 53234-53235.2. For online courses, Directors may be paid compensation for one day upon successful completion of the course

10. Meetings of other official bodies such as the City Council, Community Planning Groups, or the Local Agencies Formation Commission (LAFCO) if a Board Member is serving an official role on behalf of Padre Dam

11. Annual meeting with General Counsel B. Pre-approved meetings for Directors serving as designated representatives The following meetings are pre-approved for Directors serving as designated representatives, to attend conferences and regular and special meetings as specified below, and receive payment of per diem compensation and expense reimbursement:

1. Padre Dam Ad Hoc Committees 2. Padre Dam Basin Meeting 3. Standing, Special or Board-authorized committees of the Association of California Water

Agencies (ACWA) 4. San Diego Area Wastewater Management District 5. Local Agency Formation Commission (LAFCO) Regular Meetings 6. Local Agency Formation Commission Special Districts Advisory Committee 7. District sponsored (local) Speakers Bureau Presentations 8. Santee Chamber of Commerce Board meetings 9. Santee Chamber of Commerce Governance Affairs Committee meetings (representative

and alternate) 10. East County Economic Development Council Board Meetings 11. San Diego East County Chamber of Commerce Government Affairs & Infrastructure Land

Use Committee

C. Conferences outside the U.S. Conferences outside the U.S. are prohibited unless otherwise authorized by the Board of Directors in advance.


D. Philanthropic and Community Organizations [Ethics Policy 20.16.3] Involvement in worthy community organizations is encouraged. Payment of per diem or meeting expenses are not provided for Board Members. Payment of membership fees, meeting lunches and other support are not provided for Board Members.

14.11.3 Representatives Serving on the San Diego County Water Authority Board and the Metro Commission/Metro Wastewater JPA

Each Director appointed to represent the District on the Board of Directors of the San Diego County Water Authority and the Metro Commission/Metro Wastewater JPA receives compensation and reimbursement from the respective agency for each day's service rendered on behalf of the agency and not from the District.

14.12 REIMBURSEMENT OF EXPENSES

14.12.1 Purpose To establish a policy for reimbursement of expenses to Directors in connection with their attendance at meetings or when traveling on official District business.

14.12.2 Background Each Director shall be reimbursed in accordance with Water Code §71255 and as outlined in this section for any allowable expenses incurred in the performance of their duties required or authorized by the Board. This shall include attendance at occasions set forth in Section 14.11.2 and other occasions specifically approved by the Board in advance. Directors may request a cash advance for travel expenses, if desired.

14.12.3 Use of District Credit Cards It is the policy of the Board that District bank credit cards are authorized for Members of the Board. Padre Dam credit cards are to be used only for Padre Dam business; no personal expenses are to be charged even if the cardholder intends to later reimburse the District. District credit card holders shall submit to the accounting department the customer copy of each receipt clearly showing the date, time and explanation of charges. Customer charges must be submitted to accounting within 30 days of when expenditure occurs.

14.12.4 Travel/Conference Expense Reimbursement of expenses incurred while attending conferences and meetings shall be limited to actual and necessary expenses incurred in the performance of official duties for the benefit of Padre Dam. Per diem and travel expenses for arrival the night before is allowed when a conference is located outside the County of San Diego and starts the following morning. All completed travel/expense reports for individual Board Members are subject to the provision of this policy and approval by the Board of Directors.


Each Director will be reimbursed for allowable expenses incurred while traveling on District business. Allowable expenses include:

• common carrier fares (coach class) • lodging, single occupancy rate (for conferences outside the County of San Diego) • automobile rental charges (economy or midsize) or other ground transportation • parking fees • mileage reimbursement for personal vehicle usage • District business telephone calls • two personal long-distance telephone calls home each day • meals • tips • other miscellaneous expenses

Reservations for travel shall be made as far in advance as possible, in order to take full advantage of any travel discounts and/or early registration rates. Travel arrangements, applicable travel forms and all travel information should be made through or obtained from the Board Secretary. The Board may approve exceptions to this travel expense policy based on extenuating circumstances. Such exceptions must be approved before the expense is incurred. Retroactive authorization of reimbursement is not permitted. [Gov. Code 53232.2 (f)]. Claims for Compensation: Expenses shall not be reimbursed to a Director until an official expense reimbursement form has been filed with the Accounting Department. All such claims shall be filed on the "Travel and Meeting Expense Report Form" within 30 days of travel. Retroactive authorization of reimbursement is not permitted. [Gov. Code 53232.2(f)]. Guidelines for Reimbursement: Directors applying for reimbursement of transportation, lodging, meals, and incidental expenses shall use the following guidelines: A. Transportation

1. The maximum to be paid for travel outside the County of San Diego shall not exceed an amount equal to "coach fare" airline transportation. Government and group rates offered by a provider of transportation must be used, when available. [Gov. Code 53232.2 (e)].

2. Avoid car rentals by taking shuttle/taxi/mass-transit service or other local transportation.

3. When renting a car is necessary, it shall be economy or mid-size in class, unless upgrades are offered at no additional cost to the District. The traveler should purchase the full insurance coverage including the collision damage waiver.

Board of Directors Personal Vehicle Use: Mileage will be reimbursed based upon the approved Internal Revenue Service (IRS) rate in effect upon completion of an approved expense report. In order to be eligible for mileage reimbursement, you must be a Director on the Board at Padre Dam Municipal Water District and you must be driving on District business on occasions set forth in Section 14.11.2.


Travel reimbursement shall not exceed the cost of the then prevailing round-trip (coach) airfare to the same destination. The Director's expense claim should indicate the nature of the trip. District insurance does not cover your personal vehicle while it is being driven on District business. The reimbursement rate includes an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy in the event of an accident while traveling on District business. B. Lodging

Conference and similar housing reservations are reimbursable. Lodging expense for attending a conference or organized educational activity shall not exceed the maximum group rate published by the conference or activity sponsor. If the group rate is not available, reimbursement shall be for comparable lodging expense, so long as it does not exceed the prevailing lodging rate for lodging in the geographical area of the conference or educational activity. Government and group rates offered by a provider lodging services must be used, when available. [Gov. Code 53232.2 (d)(e)].

C. Meals

Reimbursement will be provided for meals while a Director is attending meetings, conferences, or other activities authorized under this policy. Meals that are part of the meeting, conference or activity, will be reimbursed at the actual cost. Other meal expenses actually incurred will be reimbursed and shall not exceed the maximum allowed amounts for single meals. If meals are included in the cost of a conference or event, substitute meals are not eligible for reimbursement.

The following chart provides a guideline as a standard to reflect what the "typical" meal should cost. The maximum amount is set to cover events where alternative and lower priced meals are not available within a reasonable distance from the event location.

The maximum meal limits are individually applied; unused meal allowance may not be accumulated to result in higher subsequent meals. The guidelines and maximum amounts are as follows:

Guideline Maximum Breakfast $19 $38 Lunch $25 $44 Dinner $44 $63 Total Maximum Per Day $88 $145

NOTE: Add tax and tip to the above numbers. Maximum tip is not to exceed 20 percent.


D. Non-Reimbursable Items

The following expenses are not reimbursable: a) alcoholic beverages

b) parking or traffic violations c) in-room movies d) laundry service [prior to a three-day stay] e) entertainment f) expenses incurred on behalf of spouse, dependent, or traveling companion

The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Any expense which includes costs of personal travel (e.g. hotel receipt for employee and spouse) should be paid for by the traveler. The District will reimburse the traveler for the portion of expenses qualifying as official business identified in this policy upon submission of a travel and meeting expense claim. E. Receipts Receipts must be attached to the expense reimbursement form for all expenses except mileage. However, if no receipts are available, a written explanation of the expenditure, the amount, and to whom paid is required.

14.13 BENEFITS Directors are entitled to group health, dental and life insurance coverage, as follows:

14.13.1 Board Health and Welfare Plan

Annually Board members may elect to receive medical and dental benefits.

Cost sharing for the medical plan is as follows:

HMO Coverage PPO Coverage

Board Member Only Board Member pays zero percent

Board Member pays difference between PPO and Kaiser HMO Rate

Board Member + One Dependent

Board Member pays 10 percent + half the amount over 15 percent TBD based on expenses for that individual year.

Employee pays difference between PPO and Kaiser HMO Rate + 10 percent for dependents and half the amount over 15 percent TBD based on expenses for that individual year


Board Member + Family Employee pays 10 percent + half the amount over 15 percent TBD based on expenses for that individual year.

Employee pays difference between PPO and Kaiser HMO Rate + 10 percent for dependents and half the amount over 15 percent TBD based on expenses for that individual year

Dental benefits are paid by the District (100% of the annual premium). Every year at open enrollment, a Board Member may choose to waive coverage of medical or dental insurance; upon completion of a waiver, proving other ACA eligible coverage is available. Padre Dam and the Board Member will evenly share in the savings. The cost savings will be placed monthly in a Health Reimbursement account that the Board Member can then use to seek reimbursement for out of pocket medical and dental expenses and insurance premiums. IF a Board Member does not use the money by December 31, the unused money shall revert back to the District. Board members also receive a life insurance and an AD&D policy equal to one and a half (1 ½) times their basic annual salary. As part of their life insurance benefits, $5,000 life insurance is provided for one or more dependents and includes spouse and dependent children, six months to age 21 (or age 23 if enrolled as full-time student). Coverage for children age birth to six months is $500. In accordance with the District's group life policy, the life insurance benefit will be reduced by 50 percent after the Board Member attains the age of 70. Dependent coverage will continue until the Board Member benefits are no longer in effect.


14.13.2 Insurance Benefits for Retired Directors

Directors sworn in for their initial term of office after January 1, 1995, may retire from the District after the age of 50 if they have completed one or more terms of office and if they have no less than five years of service with the District and whose age, combined with years of service, equals 65 or more. In such case, Directors may elect to continue receiving existing life insurance and health insurance as long as they pay the full cost of such premiums. The District will continue to pay premiums upon existing life insurance and health insurance for all previously retired Directors receiving such District benefits prior to January 1, 1995. In accordance with the District's group life policy, the life insurance benefit will be reduced by 50 percent after the retiree Director attains the age of 70. Health insurance coverage for the retiree Director will be coordinated with Medicare and other benefits provided by federal and state law, and will be reduced when retiree Director qualifies for those benefits.

14.13.3 Insurance Benefits for Spouses of Directors Retired Prior to Jan 1, 1995

A. The District will continue to pay, under the terms and conditions set forth in Section 14.13, the premiums upon existing health insurance provided to the spouses of said Directors at the time of retirement.

B. Health insurance coverage for the spouse of a retiree Director will be coordinated with

Medicare and other benefits provided by federal and state law, and will be reduced when the spouse qualifies for those benefits.

C. Upon the death of a retiree Director, health insurance coverage for the spouse will be

continued, provided the spouse keeps the District informed of his/her name, address and marital status. In the event such spouse remarries, his or her eligibility for such coverage ceases immediately and shall be terminated.

D. As used herein, "spouse" shall mean the spouse of the Director at the time of the

retirement.


14.14 PADRE DAM OWNED MOBILE COMPUTING DEVICES

14.14.1 Policy This policy is intended to guide the use of mobile computing devices by the Board of Directors. However, it does not cover every situation that may arise. All existing District policies continue to apply to Board Member conduct while using a mobile computing device. Padre Dam Board of Directors will be provided a Padre Dam owned mobile computing device to assist them in carrying out District business in an efficient manner. Before receiving the device, Board Members will be required to sign a statement indicating that they will abide by this policy and any other written procedures, standards or agreements.

14.14.2 Background and Purpose The use of mobile computing devices allows Board Members to receive electronic agenda packets in lieu of receiving a paper packet. The use of these devices will help reduce the amount of paper needed for the operations of the Board. The use of these devices will assist Board Members in the efficient performance of their duties, including service as members on other boards and commissions. Board Members will also be able to receive and respond to emails from District staff and the public. Board Members may also access personal emails subject to the District’s usage policy as further described in Section 14.14.4 below.

14.14.3 Procedure All Board Members are requested to use a mobile computing device and will no longer be provided with printed meeting packets and agendas, except by special request. Copies of the packet and agenda will be made available through electronic download. All references to "mobile computing devices" include laptop computers, tablet computers, smart phones, electronic readers, and personal data assistants (PDA). Examples include but are not limited to Apple iPads, Android devices, electronic readers, Windows Surface and RT devices, Amazon Kindle, and Barnes and Noble Nooks. Devices are provided to Board members based on the needs of Padre Dam in serving our customers. Each Board Member will be supplied with one device, portfolio case and keyboard combo, and associated chargers. All applications required to conduct District Business will come pre-installed on each tablet. Devices with cellular capability may be equipped with a limited cellular data plan (3G, 4G, etc.) to allow Board Members to have access to District information wirelessly. Use of the data plan is subject to the same restrictions as use of the mobile device itself.

14.14.4 Mobile Computing Device and Software Use All District-provided apps, data, and services (such as email and calendars) will remain the property of the District and may be accessed, altered, or removed by the District at any time. All information on any District mobile computing device used for District or other public agency business may (with limited exceptions) be subject to the provisions of the Public Records Act.


Training on the basic use of a mobile computing device and applications required by the District for conducting District businesses will be provided by District staff. The Board Member should update the installed apps and the mobile device operating system as updates are released. If a Board Member believes the security of his or her mobile computing device has been compromised, he or she shall immediately notify the Board Secretary/IS Manager. The device must be password protected and used only by the authorized Board Member. Internet use, email and other activities carried out on the device may be traceable to Padre Dam and the individual Board Member, and may impact the reputation of the District. District Board Members shall not use the device in any way as to violate the public meeting requirements of the Brown Act. Board members may not use the device in violation of Government Code § 54964, which prohibits the expenditure or authorization to expend public resources to "...support or oppose the approval or rejection of a ballot measure, or the election or defeat of a candidate, by the voters." Board Members must abide by the Policy on the use of Padre Dam Computer Systems, Section 11.27. Access to inappropriate, pornographic or offensive websites is prohibited. In addition, sending messages which would violate the District's Policy on use of email, that could be deemed defamatory, offensive or harassing are prohibited. All information regarding use of the Internet, including sites visited, and all information transmitted, including emails, should not be considered private and may be viewed by the District under appropriate circumstances and in accordance with applicable law. Cellular data use (not Wi-Fi) outside of the continental USA is extremely expensive. Therefore, the cellular data function should be disabled if a Board Member is traveling outside of the continental USA with their tablet. Information and use may still be available through the use of Wi-Fi. The IS Manager should be contacted to ensure that steps are taken to ensure the cellular data function is disabled. Use of the Padre Dam mobile computing devices are primarily for Padre Dam business purposes. Mobile computing devices will allow Board Members to receive agendas and other District communications electronically. Because Board Members are generally only at Padre Dam facilities during scheduled meetings, do not have designated computers at Padre Dam, and often perform Padre Dam business away from Padre Dam facilities, the device will allow Board Members to more effectively and efficiently perform their duties. Personal use of Padre Dam's devices is acceptable as long as it is not excessive or inappropriate, does not disrupt the normal operation of the district, and does not result in expense or liability to Padre Dam or violate any of the limitations contained within this policy. Board Members should, however, not have an expectation of privacy in anything they create, store, send or receive on the District’s mobile computing devices, including personal email accounts or other communications accessed on the devices. Board Members should use caution before downloading any programs or applications and seek assistance from the IS Manager as needed.

District-issued mobile computing devices may be backed up, remotely wiped, restored from a backup, or restored to factory settings as necessary to maintain the technical viability of the device and/or the District's network. The District does not accept responsibility for loss of files or software lost, including personal data or software, due to a wipe, backup or physical device damage. The District may add, upgrade or remove software/information on the device as necessary to maintain the technical viability of the device and/or the District's network. In addition, the District will retain access to and ownership


of backups of the device's content. All device IDs and service accounts used to manage the device will be maintained by the District.

14.14.5 Return of Device District issued mobile computing devices shall be returned to the Board Secretary/IS Manager when the individual Board member's term and service on the District Board has ended. Upon return of the device to the District and following the preparation of any appropriate backup files, it will be wiped clean of any and all information at the end of a Board Members term and service. Disposal of returned mobile computing devices shall be governed by the provisions of Section 18.16 (Control and Disposal of Surplus Equipment) of the District Standard Practices and Policies.

14.15 RESPONSIBILITIES AND AUTHORITY OF GENERAL MANAGER

14.15.1 Legal Authority Subject to the approval of the Board, the General Manager shall have full charge and control of the maintenance, operation and construction of the water and sewer systems and other operations and facilities of the District, with full power and authority to employ and terminate all employees, prescribe their duties and direct their activities, and fix their compensation. [Water Code §71362]. The General Manager shall serve at the pleasure of the Board [Water Code §71340], shall perform such duties as may be imposed by the Board, and shall report to the Board in accordance with such rules and regulations as it may adopt. [Water Code §71363]. The General Manager is authorized by the Board of Directors to enforce the District's Rules and Regulations and the Standard Practices and Policies, to execute documents necessary to carry out any action approved by the Board of Directors, and to otherwise act on behalf of the District as provided therein, and to delegate said duties and responsibilities. The General Manager is authorized by the Board to accept facilities and to file notices of completion on behalf of the District. [Resolution No. 77-125]. The General Manager is authorized by the Board of Directors to execute consents to recordation of grants to the District of interests in real property. [Resolution No. 97-31]. The General Manager is authorized by the Board to determine the compensation of the Management Team within the range established for unclassified employees by the Board of Directors. [Resolution 99-46]. The General Manager is authorized to sign an MOU, MOA or Interagency Agreement along with General Counsel and the respective Department Director if the document involves ministerial business transactions and if the annual committed value does not exceed $50,000 or, regardless of the value, if the District funds are reimbursable by a third party.


The General Manager or his/her designee is hereby delegated the responsibility to deny all claims filed against the District, and settle claims against the District up to a maximum of $50,000. [Gov. Code §935.4]. Settlement and payment of all claims in excess of $50,000 shall be subject to approval by the Board of Directors. The General Manager may, in his/her discretion, forward any claim in any amount to the Board of Directors for consideration and action, as he/she deems appropriate. The Board of Directors shall be provided with periodic confidential reports noting claims and lawsuits filed since the preceding report, as well as any settlement activity. The Board of Directors may, in its discretion, request additional periodic reports, as it deems appropriate. All reports containing privileged, confidential information may be provided to the Board of Directors and shall be identified as such, and shall not be considered public records, as defined by the California Public Records Act. The Board of Directors retains the right, in its sole discretion, to exercise the handling, compromise or settlement of any claim by providing notice of such intention to the General Manager.

14.15.2 Emergency Authority An emergency is defined as a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate the loss or impairment of life, health, property, or essential public services. [Public Contract Code §1102]. Pursuant to Public Contract Code Section 22050, the Board hereby delegates by 4/5ths vote, to the General Manager, and the General Manager's designee, the authority to order any action pursuant to the provisions of this Section 14.15.2. [Resolution 96-05; Ordinance 2013-02] In the event the General Manager or General Manager's Designee determines that an emergency exists requiring immediate action, the General Manager or General Manager's Designee (hereafter, the "EOC Manager," as designated by the Emergency Response Plan (a SEMS document) shall have the power, without prior Board action:

• To implement the District's Response Plan and to perform all other acts deemed necessary or appropriate to alleviate the emergency and to protect the interest of the District, the public and its customers.

• To enter into contracts and/or agreements and to expend funds on behalf of the District, provided that such expenditures or contracts do not exceed, in total one million dollars without competitive bidding.

• To control, limit or redirect the delivery of water to District customers. • To reassign District personnel and to employ additional personnel.

Not later than 72 hours after determination by the General Manager or EOC Manager of an emergency and that action must be taken pursuant to this section, the General Manager or EOC Manager shall notify the Board of Directors of the reasons necessitating such determination, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids, the emergency action(s) taken, and why the action is necessary to respond to the emergency. The Board shall review the General Manager's or EOC Manager's emergency action not later than seven days after the General Manager or EOC Manager takes emergency action(s) or at the next regularly scheduled Board meeting, if the meeting occurs within 14 days of the emergency action, and at least every regularly scheduled Board


meeting thereafter until the emergency action(s) is terminated, to determine by a 4/5th vote that there is a need to continue the emergency action(s). [Public Contract Code § 22050(b)(3), (c)(2)].

14.15.3 Duties and Responsibilities The General Manager shall manage the District in conformance with policies, goals and objectives established by the Board. It shall be the responsibility of the General Manager to provide for optimum utilization of the Management Team and hire qualified and competent people. The General Manager shall assure that the limitations of staff authority are defined and understood. The General Manager shall develop staff so that they may be qualified for promotional opportunities that may arise. The General Manager shall propose a budget for one or more fiscal years which shall be adopted by the Board, and shall manage the financial operations and expenditures of funds in conformity with the approved budget and within limits established by Board policy. It shall also be the responsibility of the General Manager to ensure that the Board is fully informed on conditions of the District and factors affecting their decisions and that sufficient staff analysis are provided. The General Manager shall develop specific policies, procedures and programs to implement the policies established by the Board. The General Manager shall execute all documents or commitments as may be required by action or policies of the Board. The General Manager shall develop a Strategic Plan and other long-range plans consistent with the policies, goals and objectives of the Board. In the absence of the General Manager, a member of the Management Team shall be appointed as acting General Manager.

14.16 DUTIES AND RESPONSIBILITIES OF LEGAL COUNSEL An attorney shall be employed by the Board of Directors to advise the District, in order that it may be in full compliance with the requirements of the Municipal Water District Law and other applicable laws. The attorney shall be the legal advisor of the District, and shall perform such other duties as may be prescribed by the Board. [Water Code §71364]. The legal counsel shall review and make appropriate comments on matters or recommendations presented to the Board in written or oral form, and shall review all notices, agendas, resolutions, ordinances, minutes, agreements, contracts and supporting materials.

It shall be the duty of the legal counsel to attend all meetings of the Board of Directors, unless excused in advance or during a meeting by the President of the Board, and to attend other meetings upon request of the Board or the General Manager.


List of Ordinances amending Section 14: 95-2 adopted March 14, 1995, Section 14.11.2, Authorization for meetings of Outside Organizations 97-6 adopted July 8, 1997, Section 14.11.1, Pier Diem Compensation 97-10 adopted August 12, 1997, Section 14.4, Officers of the Board, Section 14.5.1 Ad Hoc or Special Committees;

Section14.6.5, Agenda Preparation; Section 14.6.6, Agenda Distribution; Section 14.10, Minutes of Board Meetings; Section 14.10.1, Content of Minutes; Section 14.11.4, Benefits; Section 14.13.1, Legal Authority; Section 14.13.2, Duties and Responsibilities

98-01 adopted March 10, 1998, Section 14.4, Officers of the Board 99-01 adopted January 12, 1999, Section 14.4, Officers of the Board 2003-01 adopted February 11, 2003, Sections 14.4.4, Treasurer; 14.6.4, Opportunity for Public Comment; 14.6.6, Agenda

Distribution 2004-03 adopted February 24, 2004, Sections 14.11.4, Benefits, and 14.12.4, Director Travel/Conference Expense (added policies for Directors moved from Section 11) 2007-01 adopted April 10, 2007, incorporating the Ethic Policy and AB1234 requirements 2007-06 adopted June 26, 2007, amending Sections 14.14, Responsibilities of the GM 2007-07 adopted Sept.11, 2007, amending Section 14.11.2 A, Per Diem and Meeting Authorization 2008-05 adopted May 13, 2008, amending Section 14.5.1, Committees of the Whole, and 14.11.2 A, Pre-approved meeting for All Directors, and 14.12.4, Travel Expense 2008-08 adopted August 12, 2008, amending Section 14.11.2, Per Diem and Meeting Authorization 2009-03 adopted February 24, 2009, amending Section 14.11.2, Per Diem and Meeting Authorization 2009-09 adopted November 10, 2009, amending Section 14.13, Benefits 2011-08 adopted August 9, 2011, amending Section 14.11.1, Per Diem Compensation 2012-01 adopted Jan 4, 2012, amending Section 14.7, Meetings of the Board of Directors 2012-05 adopted May 2, 2012, adding the Santee Chamber Governance of Affairs Committee meetings (representative and

alternate) to pre-approved meetings 2013-02 adopted March 6, 2013, rewriting various sections 2013-03 adopted August 21, 2013, establishing a policy for tablet devices 2013-07 adopted December 18, 2013, amending Section 14.11.1, Per Diem Compensation 2013-08 adopted December 18, 2013, annual review amending various sections 2014-01 adopted May 7, 2014, amending Section 14.5, Standing Committees and Section 14.15.1, Responsibilities and

Authority of General Manager – Legal Authority 2014-07 adopted 12/17/14, annual review with minor revisions in various sections 2015-03 adopted 4/1/15, amending Section 14.11.1, Per Diem Compensation 2016-03 adopted 2/3/16, amending Sections 14.11 and 14.13 2016-04 adopted 4/6/16, amending Sections 14.11.1, Per Diem Compensation 2017-02 adopted 4/19/17, annual review amending various sections 2018-04 adopted 12/19/18, annual review amending various sections 2019-02 adopted 4/17/19, amending Section 14.11.1, Per Diem Compensation effective July 1, 2019 2019-04 adopted 10/2/19, amending Section 14.11.2, Per Diem and Meeting Authorization, to include the San Diego East

County Chamber of Commerce Government Affairs Committee.


2020-02 adopted 2/5/20, Annual review amending various sections. 2020-03 adopted 11/4/20, amending Section 14.11.2, Per Diem and Meeting Authorization, and 14.13.1, Board Health and

Welfare Plan. 2021-07 adopted 12/01/21, amending section 14.12.4, administration policy related to travel expense reimbursement for

Board of Directors. 2022-01 adopted 3/2/22, amending section 14.7.1, Regular Meetings policy and 14.9.2 Public Hearings policy


SECTION 15 PUBLIC RECORDS AND RETENTION POLICY

INDEX Page

15.1 PUBLIC RECORDS POLICY ............................................................................................................2

15.2 DEFINITIONS ..............................................................................................................................2

15.3 RECORDS EXEMPT FROM DISCLOSURE .......................................................................................2

15.3.1 Government Code Specific Exemptions ............................................................................................ 2

15.3.2 Public Interest Served in Nondisclosure ........................................................................................... 2

15.3.3 Right of Privacy ................................................................................................................................. 2

15.4 PROCEDURES FOR PUBLIC ACCESS ..............................................................................................3

15.5 RECORDS RETENTION AND DESTRUCTION POLICY .....................................................................5

15.5.1 Purpose ........................................................................................................................................... 5

15.5.2 General Guidelines ............................................................................................................................ 5

15.6 SPECIFIC GUIDELINES .................................................................................................................6

15.6.1 Retention of Electronic Mail (e-mail) ................................................................................................ 6

15.6.2 Suspension of Record Disposal due to Litigation or Claims (Litigation Hold) ................................... 7

15.6.3 Conclusion ........................................................................................................................................ 7


SECTION 15 PUBLIC RECORDS AND RETENTION POLICY

15.1 PUBLIC RECORDS POLICY Public Records of the District shall be open to inspection during regular office hours of the District in accordance with the California Public Records Act (Act) (Gov. Code § 6250 et. seq.). "Public Records" are all records of the District retained in the ordinary course of District business and in accordance with the District’s Records Retention Schedule, as may be amended from time to time, except those which are exempted from disclosure by the Act.

15.2 DEFINITIONS A. "Public Records" includes any writing containing information relating to the conduct of the

public's business prepared, owned, used or retained by the District regardless of physical form or characteristics.

B. "Writing" means handwriting, typewriting, printing, photostating, photographing, photocopying,

transmitting by electronic mail or facsimile, and every other means of recording upon any form of communication or representation, including letters, words, pictures, sounds, or symbols, or a combination thereof, and any record thereby created, regardless of the manner in which the record has been stored.

15.3 RECORDS EXEMPT FROM DISCLOSURE 15.3.1 Government Code Specific Exemptions The District shall withhold from inspection any record that is exempt from disclosure under the express provisions of the Act, including but not limited to Government Code sections 6253.5, 6254, 6254.9, 6254.19, 6254.25 and 6254.29. 15.3.2 Public Interest Served in Nondisclosure In addition to the items set forth above, the District may withhold any other record if on the facts of the particular case the public interest served by not making a record public clearly outweighs the public interest served by disclosing the record. If the District withholds a record on this basis, the notification of denial shall set forth the name and title or position of the person responsible for the denial. 15.3.3 Right of Privacy The Board of Directors acknowledges and recognizes the importance of the right of privacy in utility customer information, which right is codified in Government Code Section 6254.16. As such, customer names, addresses, telephone numbers, and utility information are not subject to disclosure unless expressly authorized by Government Code Section 6254.16.


15.4 PROCEDURES FOR PUBLIC ACCESS A. How to request records

While a written request is not required, the District prefers that the requestor(s) complete the District’s Records Request Form, or some other written form, so that the District can more accurately identify the records sought and process the request more efficiently. The District’s Records Request Form is available on its website, www.padredam.org, under Contact Us, and may be submitted online. Other requests should be sent to the Board Secretary at the following address:

Padre Dam Municipal Water District PO Box 719003 Santee, CA 92072 (619) 448-3111

The following information should be included in the request so that the District may respond in a timely manner: 1. A detailed description of the public record(s) which clearly identifies the records or

information sought. If needed, District staff will assist a requester in making a focused and effective request by helping identify records, describing where they can be located and providing other suggestions for facilitating access. The District may ask for additional information if the request is not specific enough to permit identification of the records sought.

2. Whether the request is for: a) inspection of records at District office during business hours; b) photocopy of records; or c) electronic copy, if maintained electronically by the District.

3. Contact information.

B. District Response to Requests Within 10 calendar days after receiving a request, the Board Secretary, or the Board Secretary’s

designee in the event the Board Secretary is unavailable, shall determine whether the requested record is subject to inspection and will notify the requesting party in writing of such determination and the reasons therefore. If the Board Secretary is uncertain whether the record is exempt from disclosure under the Act, or whether the facts of the particular case indicate the public interest is served by not making the record public clearly outweighs the public interest served by disclosure of the record, the Secretary shall consult with Legal Counsel for the District.

In unusual circumstances, the 10-day time limit may be extended up to an additional 14 days by

written notice to the requester, setting forth the reason for the time extension. Unusual circumstances include:

1. The need to search for and collect the requested records from field facilities or other

establishments that are separate from the office processing the request;

http://www.padredam.org/


2. The need to search for, collect, and appropriately examine a voluminous amount of separate and distinct records that are demanded in a single request;

3. The need for consultation, which shall be conducted with all practicable speed, with another agency having substantial interest in the District’s determination of the request or among two or more components of the District having substantial subject matter interest therein; and

4. The need to compile data, write programming language or a computer program, or constructs a computer report to extract data.

If the District determines it will comply with the request, the records will be made available as promptly as possible upon payment of any applicable copying fees.

C. Availability of Public Records Inspection of public records shall be made only in the District office during business hours,

generally 9:00am – 4:30pm Monday through Thursday, and 8:00am – noon on Friday, except for state holidays. It is advisable for any person who wishes to inspect public records to contact the District to ensure that the records are available. An appointment may be necessary if the records are not readily available. A representative of the District may be present during the inspection of any records.

Records available for public inspection and reproduction during regular business hours, and not

later than the second business day following the request, include the Fair Political Practices Commission forms (Gov. Code § 81008) of designated District employees and Board Members.

D. Electronic Records Upon request, the District will provide electronic copies of nonexempt public records if they are

still available in an electronic format. The District shall make an electronic public record available in any electronic format in which the District holds the information or in the format requested if the requested format is one that has been used by the District to create copies for itself or other agencies. However, the District is not required to reconstruct a record in an electronic format if the District no longer has the record in an electronic format.

E. Fees for Public Records

Copies: The standard fee for copying records is 10 cents per 8x11 inch page. The cost for all other copies is the direct cost of duplication, or a statutory fee if applicable.

Electronic Records: The requestor shall bear the cost of producing a copy of an electronic record,

including the cost to construct a record, and the cost of programming and computer services necessary to produce a copy of the record at the current burdened cost rate of staff when either of the following applies:

1. District would be required to produce a copy of an electronic record and the record is one

that is produced only at otherwise regularly scheduled intervals.


2. The request would require data compilation, extraction, or programming to produce the record.

The standard fee for electronic records produced on a CD is $1.00. For records required to be mailed, the current USPS first class mailing rate shall apply.

F. This public records policy of the District shall at all times be subject to the California Records Act, that it may be amended from time to time, and if there is any conflict between that Act and this policy, the Act shall prevail.

15.5 RECORDS RETENTION AND DESTRUCTION POLICY 15.5.1 Purpose The purpose of this policy is to provide for the identification, maintenance, retention and destruction of the District’s historical, administrative, legal and financial records while complying with legal and regulatory requirements and the needs of the District. All District records should be inventoried and analyzed to ensure that essential records are adequately preserved; and non-records and obsolete records are destroyed in accordance with the approved Records Retention Schedule, attached hereto as Appendix A. 15.5.2 General Guidelines A. All District records shall be retained in accordance with this policy and the District’s Records

Retention Schedule adopted by the Board of Directors, and as amended from time to time. B. The District shall retain all original records for at least two years. Duplicate records may be

destroyed before two years providing that the Department Head of the department responsible for the records has made the determination that the duplicate records are no longer needed in that the records have no further administrative, legal or fiscal value to the District.

C. Except where a longer retention period is specified by law or the Records Retention Schedule,

records may be destroyed after two years with the approval of the General Manager without the District retaining a record or copy.

D. In addition to the retention period required under this policy, the District shall retain original

administrative, legal, fiscal and/or historical records with continued value (i.e., records for long-term transactions and/or special projects) until all matters pertaining to such records are completely resolved or the time for appeals has expired. (Gov. Code § 14755, subd. (a); Gov. Code § 34090)


15.6 SPECIFIC GUIDELINES

15.6.1 Retention of Electronic Mail (e-mail) Electronic mail (E-mail) is intended as a medium of communication only. The District’s e-mail system should not be used for the electronic storage or maintenance of documentation, including, but not limited to, official District records which are records required to be retained by the District pursuant to the District’s Record Retention Schedule. E-mail messages and their attachments containing information relating to the conduct of the public's business prepared, owned, used, or retained by the District constitutes a "public record" and must be printed out and the hard copy filed in the appropriate subject file, or stored in the District’s Electronic Document Management System (EDMS). Such e-mail messages must be retained by the District pursuant to the District's Record Retention Schedule, attached hereto as Appendix A. Individual employees are responsible for the management of their mailboxes and associated folders. To ensure maximum efficiency, staff members should delete e-mail messages after (1) the messages have been preserved outside the e-mail system (either printed and filed, or moved to the EDMS); or (2) it has been determined the messages are not District records. Examples of e-mails that are not District records are as follows:

• E-mails which are considered transitory such as preliminary drafts, notes, interagency or intra-agency e-mail are non-records that should not retained by the District after they have fulfilled their purpose. These messages do not set policy, establish guidelines or procedures, certify a transaction, or become a receipt; rather, they are informal communications with no historical significance or public importance.

• Personal communications unrelated to District business. Examples of e-mails that are District records and which shall be retained as such include, but are not limited to, any e-mails which:

• Concern official actions or transaction concerning official District business; • Concern reports or recommendations; • Are kept in connection with the discharge of official duties; • Have legal, fiscal, historical or administrative value; or • Provide unique information that contributes to the understanding of a major decision of the

District Some messages sent or received on the District’s e-mail system will constitute confidential, privileged communications between the District and its attorneys. Attorney-client communications should not be forwarded to any person without consulting the General Manager and/or Legal Counsel.


15.6.2 Suspension of Record Disposal due to Litigation or Claims (Litigation Hold) In case of litigation or threatened litigation against the District on a specific matter, the District is required by law to keep all records, including electronic communications, related to the dispute. This is referred to as a “Litigation Hold” which suspends the District’s Records Retention Schedule for certain documents, including e-mails that may be relevant to a lawsuit or a reasonably anticipated lawsuit. 15.6.3 Conclusion The above guidelines do not take the place of legislative or administrative codes.


List of ordinances amending Section 15 2004-04 adopted 3/24/04, rewrite of Section 15. 2013-08 adopted 12/18/13, rewrite of Section 15. 2014-06 adopted 12/3/14, annual review with minor revisions.

RECORDS RETENTION SCHEDULE2014 AMENDMENTS - 12/3/14

Section 15 - Appendix AStandard Practices and Policies

Padre Dam Municipal Water District 1 of 7

Document Name/Type Description of Record Responsible Department

Rention Period (years)

Legal Authority Exceptions/Comments

Affidavits of Publications, Posting Legal notices for public hearings, publication of ordinances Admin 2 GC 34090

Agenda/Agenda PacketsBoard and Committee agenda packets, includes all staff reports and supporting documents Admin P GC 34090; SOSG Keep originals for 2 years; image for permanent retention

Articles of Incorporation/Formation Records Records related to formation Admin P GC 34090, 60201

Board Appointments List All Board appointments made by legislative body Admin S+2 GC 54970, 60201 Until superseded + 2

Board Minutes Board and Committee Minutes Admin P GC 34090, 60201 Image for preservation; originals may then be destroyed if approved by the GM

Board Resolutions and Ordinances Admin P GC 34090, 60201 Image for preservation; originals may then be destroyed if approved by the GM

Brochures/Publications Admin 2 GC 34090 retain select documents only for historic value

District Policies & Procedures Rules & Regulations, Standard Practices, Conflict of Interest Code Admin CU+2 GC 34090

Election, Certificate of Election Admin Term+4 GC 81009(a)(d); SOSG

Election, Oaths of Office Elected official before assuming office after successful election Admin T+6 GC 34090; 29 USC 1113

Ethics Training Records Admin 5 GC 53234, 53235.2 5 years after training

FPPC Filings - Code filers Form 700 - Statement of Economic Interest for Desinated Employees Admin 7 GC 81009 (C&E) May be imaged after 2 years

FPPC Filings - Statutory filers

Statements file pursuant to Political Reform Act - Form 460/470 (originals filed with the Registrar of Voters office) Form 700 (originals filed with the SD County Board of Supervisors) Admin 4 GC 81009 (F) May be imaged after 2 years

Legal Opinions Admin S+2 GC 34090; SOSG Until superseded +2 years; confidential attorney-client privilege

Litigation Case files Admin Settled+7 GC 34090

Newsletters District newsletters Admin 2 GC 34090 retain select documents only for historic value

Press Releases District press releases Admin CU+2 GC 34090 retain select documents only for historic value

Public Records Request Admin CL+5 GC 34090

Record Retention Schedules Admin S+4 SOSG

Recordings, Audio Audio recordings for Board/committee meetings Admin See comment GC 34090; 54953.5 30 days after approval of minutes by the Board

Records Mgmt Destruction Certification Admin P GC 34090, 60201

Agenda Reports (staff reports) Staff reports for Board and Committee meetings All Depts. 2 GC 34090; SOSGDepartments should maintain record with department files; Board Secretary retains agenda packages permanently electronically.

Bonds, Surety Bid, Payment & Maintenance

Documentation created and or received in connection with the performance of work/services for the District, usually associated with construction contracts, CIP and development All Depts. CL+10 CCP 337.5

In case of litigation or threatened litigation against the District on a specific matter, a "litigation hold" suspends the Retention Policy for certain documents, including e-mail, that may be relevant to a lawsuit. The District is required to keep all emails related to the dispute in its back up system or by placing a hard copy in the appropriate file.

Default Conditions: Except when a longer retention period is specified by this Records Retention Schedule, records may be destroyed after two years with approval from the GM, without the District retaining a record or copy of the document. The Responsible Department Head may authorize the destruction of duplicate records if no longer needed even if they are less than 2 years old.









Contracts (other than construction)Original contracts and agreements and back up materials, including leases - excludes construction contracts All Depts. L+4 CCP 337 Life of contract + 4 yrs

Correspondence (includes e-mail)General correspondence including e-mail; and complaints & requests not related to specific lawsuits involving the District All Depts. 3 SOSG

General Commercial Liability Policies Usually associated with Construction & Consultant Work All Depts. P GC 34090, SOSG

Grants

Grant documents and all supporting documents; applications, reports, contracts, project files, proposals, statements, sub-recipient dockets, environmental review, inventory, consolitated plan, etc. All Depts. CL+4 GC 34090; 24 CFR 570.502 & 85.42

Permits, OtherAlterations, temporary encroachment, excavations, road, street, sidewalks & curb alternations, transportation, temporary uses, etc. All Depts. CL+2 GC 34090

Purchasing - RFQ's, RFP's All Depts. CL+4 CCP 337

Accounts ReceivableChecks received, reports, invoices, receipt books; water, sewer and misc. receivables CS AU+4 CCP 337; 26 CFR 31.6001-1(e) (2)

Bank Deposits Daily Deposits by C/S CS AU+4 GC 34090, SOSG

Billing RecordsCustomer name, service address, meter reading, usage, payments, pay stubs, appeals, account adjustments, disconnects/shutoff records CS AU+2 GC 34090; SOSG

Connection Records Water and Sewer Service Orders (WSO and SSO) CS P GC 34090 per SOSG

Customer Deposit Forms CS CL+2 GC 34090 After closing of account OR 2 years after deposit is applied to account

Meter Reading Records Meter reports, orders, tests, maintenance records CS CU +2 GC 34090

Property Tax LiensProperty Tax Liens for unpaid water/sewer charges - recorded lien and supporting documentation CS P SOSG

Annexations/Reorganizations Notices, Resolutions, Certificates of Completion Engineering P GC 34090, 34090.5 May be destroyed if imaged - GC 34090.5

Appraisals For real property owned by the District Engineering CL+2 GC 34090, 6254(h) not a public record until real estate transaction complete

Bids, accepted Includes plans and specifications; notices/affidavits Engineering CL+10 CCP 337.15 If it affects title, then retention period is permanent

Bids, rejected Bids from vendors not meeting qualification criteria Engineering 2 GC 34090, 60201, 26202.1

Change Orders Engineering PC+10 CCP 337.15

Construction Contracts Engineering PC+10 CCP 337.15After completion of construction or improvement to real property + 10 years

Construction correspondence Engineering PC+10 GC 34090

Contractor Certified PayrollFor workers on public works projects; mantained with contract files when District is required to obtain due to funding source Engineering PC+2 GC 34090

project completion plus 2; public records- redact name, address, SSN; IF compliance agency, don't redact address

Environmental review Correspondence, consultants, issues, conservation Engineering CL+2 GC 34090d

Environmental, Asbestos Documents, abatement projects, public buildings Engineering P GC 34090; SOSG









Environmental, CEQA

Exemptions, Environmental Impact Reports, Mitigiaton monitoriing, negative declaration, notices of completion and determination, comments, statemetns of overriding consideration Engineering P GC 34090a; CEQA guideslines

Environmental, Pest Control Pesticide applications, inspections & sampling, documents Engineering CU+2 GC 34090d, SOSG

Environmental, Soil Analysis, construction recommendations Engineering CL+2 GC 34090d, SOSG

Environmental, Soil Final Reports Engineering p GC 34090d

Maps, Boundary Changes Engineering p GC 34090(a)

Property Records Deeds and easements; file with recorded documents Engineering P GC 34090, 60201(d) May destroy if property no longer owned by District, if imaged

Record drawings (asbuilts) Engineering P H&S 19850, GC 34090 May destroy if facility no longer exists

Unaccepted Bids/Proposals Engineering 2 yrs GC 34090, 26202.1, 60201

Accounts Payable

Journals, statements, asset inventories, account postings with supporting docs, vouchers, claims/invoices and backup docs, purchase orders, travel expense reimbursements, petty cash, etc. Finance AU+4

CCP 337; 26 CFR 31.6001 (e)(2); IRC 6001, IRS 1.60001-1 e

Adjusting Entries Finance AU+5 GC 34090

Annual Financial Statement Year-end unaudited financial statements Finance AU+2 GC 34090

AR Invoices Copies sent for fees owed, billing, related docs Finance AU+2 GC 34090, SOSG

AR register Finance AU+5 GC 34090, SOSG

Assessing records Finance 6 R&TC 19704

Audit Hearing or Review Documentation created and/or received in connection with an audit hearing or review Finance 2 GC 34090, SOSG

Audit Reports Financial svcs, internal or external reports; independent auditor analysis Finance AU+5, then image P GC 34090; SOSG

Audit Workpapers Finance AU+5 GC 34090

Audited Demand Payments Monthly Demands Payment Report Finance AU+2 GC 34090

Balance sheet statements Finance 2 GC 34090

Bank Account Reconciliation Bank statements, receipts, certificates of desposit, etc Finance AU+5 SOSG; 26 CFR 31.6001-1 (e(2)

BondsAuthorizations/public hearing records, prospectus, proposals, certificates, notices, transcripts, registers, and statements Finance 5yrs, then image P GC 34090

Bonds, finalFinal bond documentation; monthly statement of transactions; supporting documents Finance 10 yrs, then image P GC 34090; CCP 337.5

Bonds, Paid or Cancelled Including warrant certificates and interest coupons Finance 2 GC 34090; 53921









Bonds, unsold Finance 2 GC 34090; 43900 et seq.

Budgets Adjustments, journal entries, account transfers Finance AU+5 GC 34090

California State Tax Records Forms filed annually; quarterly & year-end reports Finance 6 R&TC 19530 & 19704

Capital Asset records Finance AU+5 GC 34090

Closing Entries Finance AU+5 GC 34090

Cost Accounting records Finance AU+5 GC 34090

Expenditure statements Finance AU+5 GC 34090

Fixed Assets, Depreciation Schedule Finance AU+5 SOSG

Fixed Assets, Inventory Reflects purchase date, cost, account number Finance AU+5 SOSG, 26 CFR 301.65-1(f)

Fixed Assets, Surplus Property Auction; disposal - listing of property; sealed bid sales of equipment Finance AU+5 GC 34090; CCP 337

General Journal Finance AU+5 GC 34090

General Ledger Finance AU+5, then image P CA Dept of General Services

Interest Capitalization Finance AU+2 GC 34090

Inventory records Finance AU+5 GC 34090

Investment Reports, Transactions Summary of transactions, inventory and earnings report Finance P GC 34090; CCP 337; SOSG

LedgersAR, AP, appropriations, taxes receiveable, construction and expenditure ledgers Finance AU+5, then image P CA Dept of General Services

Payroll Journal Finance 5 CA Dept of General Services

Payroll, Federal and State Reports Annual W-2s, W-4s, Form 1099s, etc; quarterly and year-end reports Finance 7 GC 60201

Payroll, PERS emp deduction reports Finance T+4 22 CCR 1085-2

Payroll, register Finance Finance AU+7GC 60201; 29 CFR 516.5(a); LC 1174(d)

Payroll, Salary recordsEarnings records, deduction authorizations, beneficiary designations, unemployments claims, and garnishments Finance CU+7

GC 60201; 29 CFR 516.6c, SOSG, LC 1174 May destroy after 7 years after the date of payment

Payroll, terminated employeees Finance T+7 GC 60201; 29 CFR 516.5 May destroy after 7 years after the date of last entry

Payroll, time cards Finance AU+6 29 CFR 516.6; LC § 1174; SOSG









Payroll, wage rates/job classifications Finance CU+7 GC 60201

Property Tax, Tax Rolls Finance 12 R&TC 4377May be destroyed if secured delinquencies have been transferred to abstract list certified by assessor

Property Tax, Unsecured Tax Rolls Finance 5 R&TC 2928 If certified by county or district auditor

Rates Finance P GC 34090; SOSG Image for permanent retention for historical purposes

Requisitions Finance AU+4 CCP 337, GC 34090

Schedule of Investments Finance 5 GC 34090

State Controller Annual Reports Finance 5 GC 12465(c)

Accidents/Damage to district property HR 2 GC 34090; CCP 337.15

Claims against the District Settlements - Paid/Denied HR Settled+5 GC 34090 & 25105.5 May be imaged after 3 years; retain during litigation.

Collective Bargaining Agreements HR CU+3 29 CFR 516.5

Deferred Compensation Reports pension/retirement funds HR 3 29 CFR 516.5, 1627.3

Employment, Accident/Illness reports

EE medical records & EE Exposure records, includes MSDS; DOES NOT include health insurance claims; first aid records of 1 time treatments for minor injuries; or records of EE's who worked less than 1 year if records are given to EE upon termination HR T+30 yrs GC 6254C 8CCR 3204 While employed plus 30 years; Confidential records

Employment, Family & Medical Leave ActRecords of leave taken, District policies relating to leave, notices, communications relating to taking leave HR T+3

GC 12946, 6250; 29 CFR 1602, 1607, 1627.3 while employed +3 years

Employment, Job Applications (not hired)Applications submitted for job openings, including any records pertaining to refusal to hire HR 2 GC 34090

Employment, Medical Records HIPAA records HR 6 45 CFR 164.530

Employment, Personnel Files

Includes application, performance reviews, training records, employment contracts, salary ranges, class specs, benefits, and other personal info HR T+2

GC 6254(c); GC 12946; LC 1198.5(C)(1) while employed +2

Employment, Surveys & Studies HR 2 29 CFR 516.6; GC 34090, 12946

Hazardous Materials Records Documents re: handling/disposal of hazardous waste; permits & storage HR CU+10 CAL OSHA; 40 CFR 122.21 May be destroyed after 2 yrs if microfilmed

Hazardous Materials, Exposure RecordsEmployee exposure records; name/identify of chemical substance used, and when & where. HR T+30 yrs 8 CCR 3204(d)

Insurance certificates, DistrictLiability, performance bonds, employee bonds, property, insurance certificates HR CU+3 CCP 338

Insurance, Liability/Property/AutoMay include liability, property, auto, Certificates of Participation, deferred, use of facilities HR CU+2 GC 34090

Insurance, Risk Management ReportsFederal OSHA Forms; loss analysis report; safety reports; actuarial studies HR CU+5 8 CCR 14300.33









Retirement records, PERS HR 7 GC 34090

Unemployment Insurance Records HR 4 yrs IRC 3301-3311 4 years from date contributions are due or paid

Workers Compentation Work-injury claims (including denied claims), claims filed, reports, etc. HR S+5 8 CCR 10102; 15400.2

Inventory, Information Systems Hardware/software inventory logs; systems manuals IS S+2 GC 34090

Network Information Systems (LAN/WAN) Configuration maps and plans IS CU+4 GC 34090; CCP 337.2; 343

Program Files & Directories Backups IS 2 GC 34090

Backflow Records Consists of installation, test, inspection and enforcement records OPS 4 17 CCR 7605

Consumer Confidence Reports OPS 3 22 CCR 64483

Corrosion Control Compliance documentation OPS CU+12 40 CFR 141.91; SOSG

Discharge Monitoring Average amount of pollution discharged into water of municipality OPS CU+5 40 CFR 122.41; SOSG

Disinfection of Reservoirs and Water Mains OPS 3 22 CCR 64580

Lead and Copper Records OPS 18 yrs 22 CCR 64580; 40 CFR 141.91

Maintenance/Repair Records Equipment OPS 2 GC 34090

Meter Maintenance Records OPS CU+2 GC 34090

Permits, NPDES Compliance with Clean Water Act re: pollutants OPS P 40 CFR 122.28; SOSG

Sewer Maintenance Daily Logs Flushing, CCTV inspections OPS 5 SWRCB requirement

Sewer Repair Records OPS 5 SWRCB requirement

Sewer Spill Reports OPS 5 SWRCB requirement

State Certification Compliance documentation OPS CU+12 40 CFR 141.91; SOSG

Valve Main Records OPS P GC 34090; SOSG

Vehicile Ownership Title records and transfer records when vehicle is sold OPS AU+4 VC 9900 et seq.

Water Outage & Customer complaints logColor, leaks, pressure, taste, order, turbidity, water borne illness, and worm and other organisms OPS 5 22 CCR 64470

Water Quality recordsCompliance documentation including sampling data, analysis, reports, surveys, documents, evaluation, schedules, valves, etc OPS CU+12 40 CFR 141.91; SOSG









Water Quality variance/exception OPS T+5 40 CFR 141.33; SOSG 5 yrs after expiration of variance

Water Quality violations OPS CL+3 40 CFR 141.33; SOSG May be destroyed 3 yrs after final corrective action

Recordings,Video Routine daily recordings/building security systems OPS/IS 1 GC 53160

Inventory, Equipment Warranties, purchase order Park AU+2 GC 34090; SOSG

Landscape Drawings, contracts, complaints, specifications, photos, reports Park CU+2 GC 34090; SOSG

Maintenance/Operations Work orders, inspection, repairs, cleaning, reports, complaints Park CU+2 GC 34090; SOSG

Maps Irrigation, plot plans Park P GC 34090; SOSG

Marketing, Promotional Brochures, announcements, etc. Park 2 GC 34090; SOSG

Plans, Proposed Future plans, new sites, expansions Park CU+2 GC 34090; SOSG

Policies & Procedures Park S+2 SOSG

Reports Accidents, Studies, others Park CL+2 GC 34090; SOSG

Schedules, Class & Events Enrollment, liability releases, evaluations, attendance, flyers Park CU+2 GC 34090; SOSG

Bacterialogical AnalysisCompliance records include location, date, mehod used and results; correcions analysis of bacterial content WRF CU+5 40 CFR 141.33; SOSG Originals may be destroyed if transferred to tabular summary

Chemical AnalysisCompliance records include locatin, date, mehod used and results; correcions analysis of chemical content WRF CU+10 40 CFR 141.33; SOSG Originals may be destroyed if transferred to tabular summary

Laboratory Quality Assurance Documents quality control and assurance records procedures WRF 12 40 CFR 141.91

Sanitary Surveys Statistics, reports, correspondence WRF CU+10 40 CFR 141.33; SOSG 10 yrs after completion of survey

Treatment Plant Records Compliance records and reports WRF 8 RWQCB & SWRCB

LEGEND Legal Authority Abbreviations

AU = Audit CCP - Code of Civil Procedure

CL = Closed/Completion CCR - California Code of Regulations

CU = Current Year CFR - Code of Federal Regulations

L = Life GC - Government Code

P = Permanent H&S - Health & Safety Code

PC = Project Completion LC - Labor Code

S = Supersede R&TC - Revenue & Taxation Code

T = Termination SOSG - Secretary of State Guidelines (GC 12236a)

SWRCB - State Water Resources Control BoardRWQCB - Regional Water Quality Control Board


SECTION 16 EQUAL EMPLOYMENT OPPORTUNITY/DISCRIMINATION, HARASSMENT AND RETALIATION PREVENTION INDEX Page 16.1 STATEMENT OF POLICY ........................................................................................................2 16.2 EQUAL OPPORTUNITY POLICY ..............................................................................................2 16.3 IMPLEMENTATION AND DISSEMINATION OF EEO POLICY .....................................................3 16.4 RESPONSIBILITIES OF EQUAL EMPLOYMENT OPPORTUNITY OFFICER ....................................4 16.5 HIRING PROCESS AND PROCESSING OF APPLICATIONS .........................................................5 16.6 PROMOTION AND UPGRADING ...........................................................................................5 16.7 TRAINING ............................................................................................................................5 16.9 HIRING, PROMOTION AND TRANSFER OF RELATIVES ............................................................6 16.10 POLICY AGAINST HARASSMENT ...........................................................................................7 16.11 POLICY AGAINST SEXUAL HARASSMENT ...............................................................................8 16.12 POLICY AGAINST RETALIATION ............................................................................................9 16.13 COMPLAINT PROCEDURE FOR DISCRIMINATION, HARASSMENT OR RETALIATION ................9 16.14 HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT .............................................9


SECTION 16 EQUAL EMPLOYMENT OPPORTUNITY/DISCRIMINATION, HARASSMENT AND RETALIATION PREVENTION 16.1 STATEMENT OF POLICY It is the policy of Padre Dam Municipal Water District to provide employees, applicants, volunteers, and independent contractors with an atmosphere free of discrimination, harassment and retaliation, based on race, religion, creed (including religious dress and grooming), color, national origin, ancestry, citizenship, sex, sexual orientation, gender identity, gender expression, marital status, pregnancy, childbirth or related conditions, domestic partner status, physical or mental disability, medical condition, age, genetic information, military and veteran status, holding or presenting a driver’s license issued under section 12801.9 of the Vehicle Code, or other protected category under local, state or federal law. This Policy applies to all areas of employment including, but not limited to, recruitment, hiring, transfers, promotions, compensation, benefits, District sponsored training, education, social and recreational programs and for all layoff and return-from-layoff practices. The law prohibits supervisors/managers, coworkers and third parties from discriminating, harassing or retaliating against District employees. Decisions on employment shall be based upon an individual's qualifications for the position being filled. Promotional decisions shall be made on the individual's qualifications for the position being filled. This Equal Employment Opportunity Program is a statement of the equal opportunity policies and procedures of the District. It is consistent with prior District standards and policies of equal opportunity and follows and implements the requirements in applicable federal and state laws and regulations. The Equal Employment Opportunity Program (EEOP) is adopted to implement equal employment policies of the District. The program includes policies and procedures for the communication of the District's policy; formal internal and external dissemination of the policy; establishment of responsibilities for the implementation of the program; and description of other steps to assure the effectiveness of the policies of the District. The General Manager shall have overall responsibility for this program. The Equal Employment Opportunity Officer (EEOO) shall be the Director of Human Resources & Administrative Services and shall administer the day-to-day program. 16.2 EQUAL OPPORTUNITY POLICY It is the policy of the District to: A. Recruit, hire, and promote persons for and to all job classifications without regard to

race(including traits historically associated with race such as hair texture and protective hairstyles – braids, locks and twists), religion, creed (including religious dress and grooming), color, national origin, ancestry, citizenship, sex, sexual orientation, gender, gender identity, gender expression, marital status, pregnancy, childbirth or related conditions, domestic partner status, physical or mental disability, medical condition, age, genetic information, military and veteran status, holding or presenting a driver’s license issued under section 12801.9 of the Vehicle Code, or other protected category under local, state or federal law.


B. Hire, promote, or transfer relatives of District employees, subject to the provisions of Section 16.9. C. Base employment decisions on an individual's qualifications for the position being filled. D. Make promotional decisions based on the individual's qualifications for the position for which he

or she is being considered. E. Ensure, that all other personnel actions such as compensation, benefits, transfers, layoffs,

returns-from-layoff, District-sponsored training, education, tuition assistance, and social and recreation programs will be administered without regard to race, religion, creed, color, national origin, ancestry, citizenship, sex, sexual orientation, gender identity, gender expression, marital status, pregnancy, childbirth or related conditions, domestic partner status, physical or mental disability, medical condition, age, genetic condition, military and veteran status, holding or presenting a driver’s license issued under section 12801.9 of the Vehicle Code, or other protected category under local, state or federal law.

F. Recognize that all employees and all applicants for employment are fellow human beings entitled

to equal consideration and treatment in every respect. G. Continue to sustain and develop a system that promotes the maintenance and applications of

these standards.

H. Prohibit unlawful harassment, including sexual harassment, of any employee, applicant, volunteer or independent contractor. (See Section 16.10, Policy Against Harassment and Section 16.11, Policy Against Sexual Harassment.)

I. Prohibit unlawful retaliation for taking protected action, including making complaints about

conduct prohibited by these policies, opposing conduct prohibited by these policies or participating in investigations into potential violation of these policies.

16.3 IMPLEMENTATION AND DISSEMINATION OF EEO POLICY To ensure that the equal opportunity policies of the District are effective, the following activities will be undertaken: A. The District, in accordance with District Policy, shall decide whether to advertise District

employment opportunities internally or externally. External employment opportunities will be advertised using available community resources.

B. District staff, management and supervisory personnel shall, from time to time attend training and

educational sessions at which equal employment opportunity programs and requirements are discussed.

C. The District shall disseminate its equal employment opportunity policy within the District by

posting it on the District website and on the intranet (Stream), by conducting trainings on the policy, by providing the policy to new employees, and by posting the policy.


D. The District shall disseminate its equal employment opportunity policy externally by posting it on the District website and by advertising as an equal opportunity employer.

E. The District shall encourage diversity in its workforce, through its recruiting processes. F. The District shall ensure that employee specifications, selection requirements, tests, and other

employee recruitment or evaluation procedures do not discriminate in application or effect. G. The District shall develop, where reasonable, on-the-job training opportunities, and participate

and assist in any association or employee group training program relevant to the District's employee needs.

H. The District shall encourage diverse employees to seek promotional opportunities. I. The District shall make sure that seniority practices, job classifications, and other employee

practices and classifications do not have an unlawful discriminatory effect. J. The District shall monitor all personnel activities to ensure that this equal employment

opportunity program is being carried out. K. The District shall solicit bids for contracts from available contractors, including minority contractor

groups and associations. 16.4 RESPONSIBILITIES OF EQUAL EMPLOYMENT OPPORTUNITY OFFICER The Equal Employment Opportunity Officer is responsible for implementation of the District's policy regarding equal employment opportunity. The responsibilities include, but are not limited to: A. Developing policy statements and internal and external communication techniques.

B. Maintaining liaison with federal, state and local agencies legally charged with equal employment responsibilities.

C. Conducting discussions with managers, supervisors, and employees to be certain that equal

employment opportunity policies are being followed. D. Taking steps to ensure that all protected classes are given full opportunities for transfers and

promotions. E. Developing contacts with diverse organizations and recruitment sources. F. Ensuring that recruitment sources are aware of the District's equal employment policy.

G. Ensuring that employment standards accurately reflect the requirements of the job. H. Ensuring that pre-employment and achievement tests, if they are used, are valid. I. Keeping management informed of the latest developments in the equal employment opportunity

field.

J. Ensuring that the District is in technical compliance with all applicable laws and regulations.


16.5 HIRING PROCESS AND PROCESSING OF APPLICATIONS All applications for existing vacancies will be recorded by the District as having been accepted or rejected and will be maintained by the District for two years. Applicants will be considered for employment without consideration of the protected categories discussed above, except that disabled applicants must be able to perform the essential functions of the position with or without reasonable accommodations. Applicants will be provided reasonable accommodations in the interview and testing process upon request. 16.6 PROMOTION AND UPGRADING There will be a periodic review of the qualifications and potential of all employees. Selection resulting from this review for training and/or promotion will be from among those individual employees qualified for higher paying jobs. Such review will be performed in close cooperation with department supervisors, and relate to existing and projected job vacancies and appropriate on-the-job training requirements. Existing and anticipated job vacancies will be projected to the extent practicable. All new positions and vacancies will be posted so that all employees who wish to upgrade to fill such vacancies may submit an application for consideration. Any District employee who feels qualified for the open position may submit an application. It is the desire of the District to fill all new positions and vacancies with the most qualified individual available. The District, when making a selection to fill a vacancy, will include in its consideration the employee’s work history and knowledge of the District. Each District employee submitting a request to be considered will compete with outside applicants for job openings if the District determines it is necessary to post positions externally. District employees will be assured access to the entire recruitment process including testing and interviewing. Should a District employee not be selected for the position, the employee will be offered suggestions for further professional development to prepare for the next promotional opportunity. Advancement through “job families” (broad classifications) may be handled as part of the annual performance review process and may not require posting of the opening. Advancement opportunities will be included in the annual budget. Any promotional standards used in upgrading employees will be realistically related to job and progression requirements, and will be applied in a nondiscriminatory manner. 16.7 TRAINING Supervisors are responsible for on-the-job training related to the immediate job assignment of the employee. Appropriate records of accomplishment will be maintained. Whenever specific on-the-job, or voluntary off-the-job programs are established by management for training in job skills not related to immediate positions, the District will encourage all employees to participate. Likewise, all employees will be encouraged to participate in training opportunities available in the community and to take courses related to their work.


Management will review and analyze available government sponsored manpower training programs and authorize participation in such programs if reasonable safeguards are preserved as to the District's right of selection on a nondiscriminatory basis. 16.8 REASONABLE ACCOMMODATIONS It is the policy of the District not to discriminate against any qualified person on the basis of mental or physical disability. To this end, all decisions relating to employment (including but not limited to recruitment, selection, training, assignment, promotion, compensation, transfer, benefits, and education), will be determined by the applicant’s or employee’s ability with consideration of any requested reasonable accommodations. If an employee needs a reasonable accommodation, the employee should personally notify the Human Resources Director as soon as possible. The District will thereafter engage in a reasonable, interactive process with the employee to determine whether the employee is a qualified individual with a disability and, if so, whether any reasonable accommodations are available. (The District can also independently commence the interactive process with the employee, if it acquires information to suggest that the employee needs a reasonable accommodation in the workplace). The District welcomes the employee’s input in this process and will consider any and all suggestions for reasonable accommodations. The District retains the ultimate discretion, however, to determine which accommodation to provide among equally effective reasonable accommodations. To support a request for accommodation, employees may be required to provide supporting medical documentation, which will be kept in a confidential medical file. The District will make reasonable accommodations for qualified employees with disabilities if necessary to enable employees to perform essential job functions or to benefit from the same opportunities and rights afforded employees without disabilities (unless doing so would result in "undue hardship"). The District will also make reasonable accommodations for pregnancy, childbirth or related conditions, and for religious beliefs and practices. 16.9 HIRING, PROMOTION AND TRANSFER OF RELATIVES In accordance with District policy, employment decisions are based upon an individual's qualifications for the position being filled. Except as provided below, the District does not prohibit the employment of relatives. However, the District reserves the right to exercise discretion in cases where relatives (as defined below) work together, occupy positions which create morale or supervisory problems or have access to sensitive or confidential information. A. For purposes of this policy, a relative is defined to be a spouse, father, mother, child, brother,

sister, aunt, uncle, niece, nephew, grandparent, grandchild, in-laws, significant other (romantic relationship), domestic partner (as defined in California Family Code §297), step parents/children and half-brothers/sisters.

B. No relative of a candidate for employment shall make the final determination on the employment,

appointment or promotion of that candidate. The employee must disclose the relationship to Human Resources and remove themselves from the decision-making process.


C. No employee shall have a relative as a first-level supervisor. D. The assignment of relatives to positions under the same first level supervisor is to be avoided. E. Should a relative relationship develop between employees (such as through marriage or a new

dating relationship) that creates a situation as defined in “C” and “D” above, then either employee may apply for a job vacancy in another department for which the employee is qualified. The District shall make reasonable efforts to assign job duties so as to minimize problems of supervision, safety, security and morale. Employees are responsible to notify Human Resources of any working relationship which is prohibited by “C” or “D” above.

If after a six month period neither employee has transferred to another position, the two employees shall determine which one shall resign. Should no decision be made within 14 days, the employee with the lesser seniority shall be terminated.

F. If termination of either party occurs, the employee terminated will be given priority recognition

to return to employment, subject to this policy and the re-employment conditions contained in Section 11.7.18, Layoff or Reduction of Force.

16.10 POLICY AGAINST HARASSMENT A. Policy All employees, including unpaid interns, volunteers, and persons providing services pursuant to a contract (independent contractors), have a right to work in an environment free from discrimination based on race (including traits historically associated with race such as hair texture and protective hairstyles – braids, locks and twists, religion, creed (including religious dress and grooming), color, national origin, ancestry, citizenship, sex, sexual orientation, gender, gender identity, gender expression, marital status, pregnancy, childbirth or related conditions, domestic partner status, physical or mental disability, medical condition, age, genetic condition, military and veteran status, holding or presenting a driver’s license issued under section 12801.9 of the Vehicle Code, or other protected category under local, state or federal law. Harassment is a form of discrimination, and employees, interns, volunteers and independent contractors are also entitled to a work environment free from all forms of harassment, including sexual harassment. Applicable laws prohibits and The District will not tolerate harassment by supervisors, managers, co-workers, volunteers or third parties. B. Definition of Harassment Harassment is a form of misconduct which undermines the integrity of the employment relationship. Harassment includes conduct that has the purpose or effect of unreasonably interfering with an individual’s work performance, creating an intimidating, hostile, threatening or offensive work environment, or adversely affecting the worker’s performance. This policy prohibits harassment in any form based on any protected category under applicable law. Verbal harassment includes such matters as epithets, derogatory comments or slurs. Physical harassment includes such activities as assault, impeding or blocking movement or any physical interference with normal work or movement. Visual forms of harassment include such things as derogatory posters, cartoons or drawings. Unsolicited or unwelcome overtures or misconduct are also a form of harassment.


16.11 POLICY AGAINST SEXUAL HARASSMENT A. Policy It is the District's policy to prohibit harassment of an employee by another employee, supervisor, manager, or a third party (including a customer) on the basis of sex. Sexual harassment includes unwelcome sexual advances or verbal or physical conduct of a sexual nature made, either explicitly or implicitly, as a condition of employment, or as a basis for any employment decision affecting the individual, or which creates an intimidating, hostile or offensive working environment. The District believes that prompt, appropriate action should be taken to avoid or minimize incidents of sexual harassment. The District will pursue every possible preventive measure to ensure employees are not subject to sexual harassment. The District will take appropriate disciplinary action against anyone found to be in violation of this policy. The District will inform employees of their rights and the appropriate means by which to file a complaint. Such information will also be included in all orientation packages for new employees, as well as posted on the Intranet (Stream) and on bulletin boards located around the District. B. Definition of Sexual Harassment Sexual harassment is defined as unsolicited and unwelcome sexual advances, requests for sexual favors and other verbal, physical or visual conduct of a sexual nature which occurs under any one of three circumstances:

1. Submission is made either explicitly or implicitly as a term or condition of employment.

2. Submission or rejection by an employee is used as a basis for employment decisions affecting the employee.

3. Such conduct has the potential to affect an employee's work performance negatively

and/or create an intimidating, hostile or otherwise offensive working environment. Other examples of sexual harassment include, but are not limited to:

1. Making unsolicited written, verbal, physical and/or visual contact with sexual overtones. (Written examples: suggestive or obscene letters, notes, invitations. Verbal examples: leering, gestures, display of sexually suggestive objects or pictures, cartoons or posters.)

2. Continuing to express sexual interest after being informed that the interest is unwelcome.

3. Making reprisals, threats of reprisal, or implied threats of reprisal following a negative

response. For example, implying or actually withholding support for an appointment, promotion, or change of assignment; suggesting a poor performance report will be prepared; or suggesting probation will be failed.

4. Engaging in implicit or explicit coercive sexual behavior which is used to control, influence,

or affect the career, salary, and/or work environment of another employee.


5. Offering favors or employment benefits, such as promotions, favorable performance evaluations, favorable assigned duties or shifts, recommendations, reclassifications, etc., in exchange for sexual favors.

16.12 POLICY AGAINST RETALIATION Fear of retaliatory actions by a superior, coworker, or member of the public should not be a reason for not reporting any incidents of harassment, discrimination, or retaliation. Retaliation against a worker for reporting violations of this Policy, opposing conduct prohibited by this Policy and applicable law, or for participating in the investigation of a harassment or discrimination complaint is strictly prohibited. In addition, the District will not retaliate against any worker for requesting a reasonable accommodation. 16.13 COMPLAINT PROCEDURE FOR DISCRIMINATION, HARASSMENT OR RETALIATION Any employee who believes that he or she has been harassed is encouraged to take immediate action to attempt to stop the harassment. Employees are encouraged to immediately inform the harasser that the conduct is unwelcome and offensive, but are not required to take such action before filing a complaint. An employee who feels he or she has experienced discrimination or harassment in the work place should immediately inform his/her supervisor, a manager, a department head, the Director of Human Resources & Administrative Services or the General Manager; whichever is most comfortable for the employee and follow immediately with a written complaint to the Director of Human Resources & Administrative Services. Supervisors/managers are required to report any complaints they receive to the Director of Human Resources & Administrative Services. In addition, supervisors/managers who become aware of discrimination, harassment or retaliation in the workplace, even without a formal complaint, are required to inform Human Resources. If an employee, volunteer or independent contractor makes a complaint of discrimination or harassment, it will be investigated in a fair, thorough, timely and confidential (to the extent possible) manner, which provides all parties appropriate due process and reaches conclusion based on the evidence collected. If substantiated, appropriate corrective action will be taken by the District. Complaints of retaliation will be investigated in the same manner as complaints of discrimination and harassment, and appropriate action will be taken if substantiated. 16.14 HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT A. Policy. It is Padre Dam’s policy to have in place appropriate administrative, technical and physical safeguards to protect the privacy of its employees’ protected health information consistent with State and Federal regulation under the Health Insurance Portability and Accountability Act (HIPAA). Padre Dam, by distributing and communicating this policy, will inform employees and benefits enrollees of their rights and the process for filing a complaint. This policy will also be included in all orientation packages for new employees, as well as posted on bulletin boards located around the District. Padre Dam will train all members of its workforce on the policies and procedures with respect to protected health information, as necessary and appropriate for the members of the workforce to carry out their function within Padre Dam Municipal Water District.


B. Definition of Protected Health Information (PHI). Protected Health Information (PHI) includes individually identifiable information such as employee name, benefit plan participant name, Social Security Number, or date of birth which is: A. Transmitted by electronic media;

B. Maintained in electronic medium; C. Transmitted or maintained in any other form or medium. C. Privacy Official/Contact Officer Designation. Padre Dam hereby designates the Director of Human Resources as the privacy official. Padre Dam hereby designates the Human Resources Specialist as the contact person for complaints related to privacy. D. Complaint Procedure. Any employee or benefit enrollee who believes that he or she has experienced an inappropriate disclosure or release of PHI associated with their employment or benefits at Padre Dam, should immediately inform Padre Dam’s Human Resources Specialist, the Director of Human Resources & Administration Services, or the employee’s Department Head. The complaint shall be immediately investigated, and if substantiated, corrective action shall be taken by Padre Dam. Padre Dam will mitigate, to the extent practicable, any harmful effect that is known to Padre Dam of a use or disclosure of protected health information which violates of its privacy policies and procedures or the state and federal privacy regulations by Padre Dam or a business associate of Padre Dam. E. Statement of Non-retaliation. Padre Dam will not intimidate, threaten, coerce, discriminate against, or take other retaliatory action against:

1. Any individual for having exercised their right under this policy, or for participation by the individual in any process established by this policy; or

2. Any individual or other person for:

a. Filing of a complaint with the Department of Health and Human Services;

b. Testifying, assisting or participating in an investigation, compliance review,

proceeding or hearing; or c. Opposing any act or practice made unlawful by the federal privacy regulations,

provided the individual or person has a good faith belief that the practice opposed is unlawful and the manner of the opposition is reasonable and does not involve a disclosure of protected health information in violation of the federal privacy regulations.


F. Record of Disclosures. Padre Dam will:

1. Maintain privacy policies and procedures in written or electronic form;

2. If a communication is required by the policies and procedures to be in writing, maintain such writing or an electronic copy, as documentation; and

3. If an action, activity or designation is required by the policies and procedures, maintain a

written contract or electronic record of such action, activity or designation. Padre Dam will retain the documentation described above for six years from the date of its creation or the date it last was in effect, whichever is later. G. Disclosure Rights of Employees and Benefits Enrollees. An individual has a right to receive an accounting of disclosures of protected health information made by Padre Dam in the six years prior to the date on which the accounting is requested, except for disclosures: 1. To carry out treatment, payment, and health care operations; 2. To the individual; 3. Pursuant to an authorization; or 4. That occurred prior to January 1, 2005. An individual has the right to request Padre Dam to amend protected health information or a record about the individual for as long as the protected health information is maintained. H. Waiver of Rights. Padre Dam will not require individuals to waive their rights under Padre Dam’s privacy policy or the federal privacy regulations as a condition or payment or enrollment in the health plan or eligibility for benefits. I. Business Associates. Padre Dam will negotiate business associate contracts as appropriate to adhere with the following policy. Each business associate contract will:

1. Establish the permitted and required uses and disclosures of protected health information by the business associate. The contract may not authorize the business associate to use or further disclose the information in a manner that would violate the requirements of the federal privacy regulations, the contract may:


a. Permit the business associate to use and disclose protected health information for the proper management and administration of the business associate’s business;

b. Permit the business associate to provide data aggregation services relating to the

health care operations of Padre Dam; and

c. To carry out the legal responsibilities of the business associate. 2. Stipulate that the business associate will:

a. Not use or further disclose the information other than as permitted or required by the contract or as required by law;

b. Use appropriate safeguards to prevent use or disclosure of the information other

than as provided for by its contract;

c. Report to Padre Dam any use or disclosure of the information not provided for by its contract of which the business associate becomes aware;

d. Ensure that any agents, including a subcontractor, to whom it provides protected

health information received from, or created or received by the business associate on behalf of Padre Dam agrees to the same restrictions and conditions as those that apply to the business associate with respect to such protected health information;

e. Make available protected health information to individuals in accordance with

the federal privacy regulations; f. Make available protected health information for amendment, and incorporate

any amendments to protected health information;

g. Make available the information required to provide an accounting of disclosures in accordance with the federal privacy regulations;

h. Make its internal practices, books and records relating to the use and disclosure

of protected health information received from, or created or received by the business associate on behalf of Padre Dam available for purposes of determining Padre Dam’s compliance with the federal privacy regulations;

i. At termination of the contract, if feasible, return or destroy all protected health

information received from, or created or received by the business associate on behalf of Padre Dam that the business associate still maintains in any form and retain no copies of such information or, if such return or destruction is not feasible, extend the protections of the contract to the information and limit further uses and disclosures to those purposes that make the return or destruction of the information infeasible.


3. Authorize termination of the contract by Padre Dam, if Padre Dam determines that the business associate has violated a material term of the contract.

4. The contract between Padre Dam and the business associate shall permit the business

associate to disclose the protected health information received by the business associate in its capacity as a business associate to Padre Dam, if;

a. The disclosure is required by law; or

b. (i) The business associate obtains reasonable assurances from the person to

whom the protected health information is disclosed that it will be held confidentially and used for further disclosed only as required by law or for the purpose for which it was disclosed to that person; and

(ii) The person notifies the business associate of any instances of which it is aware in which the confidentiality of the protected health information has been breached.

5. If Padre Dam knows of a pattern of activity or practice of the business associate that

constitutes a material breach or violation of the business associate’s obligation under the contract or other arrangement, Padre Dam will take reasonable steps to cure the breach or end the violation, as applicable and if such steps are unsuccessful:

a. Terminate the contract, if feasible; or

b. If termination is not feasible, report the problem to the Secretary of Health and Human Services.


List of Ordinances amending Section 16: 95-12 adopted November 14, 1995, Section 16.1, Statement of Policy; Section 16.10, Policy Against Harassment 96-4 adopted March 21, 1996, Section 16.6, Promotion and Upgrading 2001-08 adopted August 14, 2001, Section 16.1, Statement of Policy; Section 16.2, Equal Opportunity Policy; Section 16.5,

Hiring Process and Process of Applications; Section 16.6, Promotion and Upgrading; Section 16.8, Integration of All District Facilities; Section 16.10, Policy Against Harassment

2002-06 adopted November 12, 2002, Section 16.9, Hiring, Promotion and Transfer of Relatives 2004-03 adopted February 24, 2004, amending 16.2, Equal Opportunity Policy; 16.5, Hiring Process and Processing of

Applications; 16.8, Integration of All District Facilities; 16.10, Policy Against Harassment

2004-06 adopted 10/26/04 adding Sections 16.12, Health Insurance Portability and Accountability Act 2006-07 adopted 8/8/06 amending Section 16.9, Hiring, Promotion and Transfer of Relatives 2012-02 adopted 4/18/12 amending various sections, refer to pc doc number 33839 2014-06 adopted 12/3/14 annual review with minor amendments to various sections. 2016-03 adopted 2/3/16 annual review with minor amendments to various sections. 2016-06 adopted 6/1/16 amending various sections to comply with new legislation. 2020-02 adopted 2/5/20 annual review with minor amendments to various sections. 2021-05 adopted 9/15/21, annual review with minor amendments.


SECTION 17 AMERICANS WITH DISABILITIES ACT INDEX Page 17.1 PURPOSE ...............................................................................................................................2 17.2 DEFINITIONS ..........................................................................................................................2 17.3 EMPLOYMENT PRACTICES (Title I) ..........................................................................................3 17.4 PUBLIC SERVICES PRACTICES (Title II) ......................................................................................3 17.5 GRIEVANCE PROCEDURE ........................................................................................................4


SECTION 17 AMERICANS WITH DISABILITIES ACT

17.1 PURPOSE The purpose of these rules and regulations is to implement Title I and Title II of the Americans with Disabilities Act (ADA), 28 CFR Part 35, by providing orderly procedures for the administration, implementation and compliance with the accessibility and non-discrimination requirements of said Act.

17.2 DEFINITIONS As used herein:

a. "Board of Directors" means the Board of Directors of Padre Dam. b. "District" means the Padre Dam Municipal Water District. c. "Secretary" means Padre Dam Board Secretary. d. “ADA Coordinator” is the responsible person designated by Padre Dam to oversee the

implementation of the ADA plan. e. "Employee" means any person employed by Padre Dam, including a member of the Board

of Directors. f. "Individual with a Disability" is a person who: (1) has a physical or mental impairment

that substantially limits one or more of his/her major life activities; (2) has a record of such an impairment; or (3) is regarded as having such an impairment.

g. "Reasonable Accommodation" is any change in the work environment or in the way things

are usually done that Padre Dam may accomplish without undue hardship that may result in equal employment opportunities for an individual with a disability.

h. "Undue Hardship" is an action that is excessively costly, extensive, substantial, or

disruptive, or that would fundamentally alter the nature or operation of Padre Dam.


17.3 EMPLOYMENT PRACTICES (Title I) It is the policy of Padre Dam to make all employment decisions on the basis of an applicant's qualifications. Padre Dam's Equal Employment Opportunity Policy is more fully explained in Section 16 of these Standard Practices and Policies. Qualified individuals with disabilities are encouraged to apply for positions with Padre Dam. A "qualified individual with a disability" is an individual with a disability who meets the skill, experience, education and other job-related requirements of a position held or desired, and who, with or without reasonable accommodation, can perform the essential functions of the job. Padre Dam shall review all personnel procedures and policies and monitor practices to assure that this policy is fairly, uniformly and consistently maintained.

17.4 PUBLIC SERVICES PRACTICES (Title II) It is the policy of Padre Dam to assure that no qualified individual with a disability shall, by reason of such disability, be excluded from participation in or denied the benefits of the services, programs or activities of Padre Dam. A "qualified individual with a disability" is any individual with a disability who, with or without reasonable modifications to District rules, policies, practices, and removal of barriers, meets the essential eligibility requirements for the receipt of services or the participation in programs provided by Padre Dam. In complying with this Section, Padre Dam shall do the following:

a. Conduct an inspection of all premises used by the general public and determine if they are accessible by members of the disabled community.

b. After said inspection is conducted, prepare a transition plan for the modification or

removal of barriers to accessibility. Items listed in the transition plan shall be completed in accordance with Padre Dam’s implementation plan.

c. Require that any remodeling, renovation or other construction work done on Padre Dam's

premises comply with the Federal and State laws and statutes regarding disability accessibility.

d. The transition plan shall be in writing and shall be maintained by the ADA Coordinator or

designee for public access, review and inspection.

e. Conduct a self-evaluation to review all policies, procedures and requirements of Padre Dam to assure that they do not discriminate against members of the disabled community. If the review reveals areas where modification or change is required, those changes shall be so noted and made as soon as is feasibly possible. The review will be in writing and shall be maintained in a public location for a period of three years from the date of the review.

f. Update and maintain Padre Dam’s self-evaluation and transition plan on an ongoing basis.


17.5 GRIEVANCE PROCEDURE Any individual who feels that Padre Dam has not complied with the provisions of the ADA or with the above-stated procedures, may file a grievance with the ADA Coordinator. The grievance shall be filed within 10 days after the individual knew of the circumstances which form the basis for the grievance. The grievance shall be in writing and shall state the following:

a. A description of the specific grounds of the grievance, including dates, places and facts necessary for a complete understanding of the grievance;

b. A statement of the provisions of the ADA or this Section 17 which are alleged to have

been violated; c. A statement of specific actions requested by the grievance of Padre Dam which will

remedy the grievance. Within 10 days of receipt of the grievance, the ADA Coordinator, or designee, on behalf of Padre Dam, shall investigate the charges and prepare, in writing, a response to the grievant stating the results of the investigation. At any time during the investigation, the ADA Coordinator, or designee, may request a meeting with the grievant and the grievant shall be available to meet in an attempt to resolve the problem. Any individual dissatisfied with the determination made by Padre Dam may appeal the determination to the ADA Grievance Committee, provided that a written notice of appeal is filed with the Secretary of Padre Dam no later than 30 calendar days after the date of personal service or mailing of the notice of determination, whichever is sooner. The ADA Grievance Committee shall consist of two members of the Board of Directors, as may be designated by the President of the Board of Directors, and the ADA Coordinator, or designee. If a timely appeal is filed with the Secretary of Padre Dam, the ADA Grievance Committee shall schedule a hearing within 30 days of the date of filing of the notice of appeal, and the Secretary of Padre Dam shall notify the grievant of the time and date fixed for the hearing. The ADA Grievance Committee shall review the matter, including any evidence presented at the hearing and shall make a determination as to whether to confirm the determination of Padre Dam. The determination shall be reduced to writing and mailed to the grievant within 10 days of the date of the hearing. If the grievant is dissatisfied with the determination made by the ADA Grievance Committee, a request may be made to present the matter before the full Board of Directors at a regularly scheduled meeting. The request shall be made in writing, to the Secretary of the Board, within 10 days after receipt of the determination of the ADA Grievance Committee, and at least seven calendar days prior to a regularly scheduled board meeting. The appeal must be in writing and state all facts that lead the grievant to believe that the ADA Grievance Committee's determination is not appropriate. The Secretary of the Board shall schedule the appeal for Board action at the earliest convenient Board meeting and will notify grievant of such date and time. The Board of Directors shall review all documentation and make a determination as to whether to confirm the determination of the ADA Grievance Committee. The decision of the Board of Directors shall be final. A list of grievances filed, and the outcome of such, shall be kept in a public location and available for inspection and review for a period of at least three years. List of Ordinances amending Section 17:


2004-06 adopted 10/26/04, creating Section 17, Americans with Disabilities Act. 2014-06 adopted 12/3/14, annual review – no changes made to Section 17.


SECTION 18 PURCHASING POLICY

INDEX Page

18.1 PURPOSE OF POLICY ......................................................................................................... 2

18.2 LEGAL AND AUDIT REQUIREMENTS ................................................................................ 2

18.3 PURCHASING AUTHORITY ................................................................................................ 3

18.4 PURCHASING PROCEDURE RESPONSIBILITY .................................................................. 3

18.5 COST EFFICIENCY ............................................................................................................... 4

18.6 PURCHASE DEFINITION .................................................................................................... 4

18.7 DEFINITION OF BUDGET COMPLIANCE ........................................................................... 5

18.8 EXPENDITURE CATEGORIES ............................................................................................. 5

18.8.1 Capital Assets ..................................................................................................................... 5

18.8.2 Material and Supplies ....................................................................................................... 8

18.8.3 External Service Providers ................................................................................................ 8

18.8.4 Other Services and Supplies ............................................................................................. 8

18.8.5 Real Property ..................................................................................................................... 8

18.9 CONSTRUCTION PROJECTS FUNDING POLICY ................................................................ 9

18.10 COOPERATIVE PURCHASING ........................................................................................... 9


SECTION 18 PURCHASING POLICY 18.1 PURPOSE OF POLICY

The Procurement Process is the means by which essential capital, construction, supplies and services are purchased to support the mission of the District. In addition to acquiring what is needed, it is of the utmost importance that the District spends ratepayer dollars responsibly and in the best interest of the community it serves. It is the policy of the District to set forth a comprehensive Purchasing Policy which achieves not only these goals but which:

a. Expresses District values b. Addresses legal and audit requirements c. Specifies purchasing authority d. Defines purchasing responsibility e. Provides for a cost efficient level of control through decentralized purchasing f. Ensures good internal control, documentation and accountability for all expenditures

This Policy is based on the premise that all purchases will be made at the best possible price commensurate with quality. Purchases must be made in accordance with the District’s Business Plan (Plan) and should not be made unless sufficient funds are available. The highest ethical standards are to be maintained in all purchasing activities and employees must always make prudent buying decisions. The requirements and procedures for making specific types of purchases are outlined in the District’s Purchasing Procedures (Procedures). The CFO/Director of Finance (CFO) oversees all purchasing functions and is responsible for ensuring this policy is followed. The CFO is also responsible for reviewing this Policy annually and proposing any updates to keep the Policy current. All proposed changes must be presented to and approved by the full Board. 18.2 LEGAL AND AUDIT REQUIREMENTS The Purchasing Policy and related Procedures:

(a) Identify and formalize District purchases so payment can be made in accordance with sound internal controls consistent with standard accounting and auditing principles.

(b) Implement the laws and regulations applicable to purchasing policies of local agencies as found in California statutes and regulations and/or federal law.

Updates to the Policy and Procedures that are substantive (i.e. not merely grammatical or stylistic changes) will be reviewed by the District’s General Counsel to ensure compliance with relevant laws.


18.3 PURCHASING AUTHORITY The ultimate authority to make purchases for the District rests with the Board of Directors. The Board delegates this authority to the General Manager who further delegates it to others as specified in this Policy. The chart below outlines the overall levels of purchasing authority and criteria. Each department shall designate a “Purchasing Processor” to initiate purchase order requisitions which then go through the required level of approvals. Several departments may utilize one processor and larger departments may require more than one.

Authorized Purchaser Approval Required for all Purchases Purchasing Criteria

Board of Directors Over $50,000 Any item

General Manager Over $35,000 to $50,000 Must be within budget

Departmental Directors Over $15,000 to $35,000 Must be within budget

Cost Center Manager Up to $15,000 Must be within budget

Purchasing Processor Up to $2,500 Must be within budget

Finance and Operations Directors Actual Amount Water, sewer, electricity, CWA,METRO,

PERS, OPEB, loan payments

Director of Engineering Actual Amount Refunds of unused developer fees and deposits

Director of Human Resources Contracted Amount Insurance payments (i.e. health, dental, life, property, etc.)

General Manager/Management N/A May submit any lower amount for Board consideration.

For purposes of the Purchasing Policy, the term “within budget” means an expenditure that is consistent with the Five Year Business Plan including both expenditures specifically identified in the Five Year Budget (Budget) and unforeseen necessary expenditures, as long as the department’s overall approved budget is not exceeded; this most likely requires ongoing reprioritization or deferral of other budgeted items or a budget transfer from another department. Cost center managers must approve charges to their own cost center for any amounts in excess of $100; managers cannot charge another cost center without first obtaining the approval of that cost center manager. While Directors have the authority to charge to any of the cost centers under their control, they should make their respective cost center managers aware of all expenditures made. 18.4 PURCHASING PROCEDURE RESPONSIBILITY The CFO is responsible for maintaining detailed Purchasing Procedures (Procedures) to implement this Policy. These detailed Procedures define specific methods of purchasing and allow employees with purchasing authority to operate within certain limits while maintaining sound internal controls.


The Purchasing Procedures are created to be consistent with this Policy. It is expected that the Procedures will evolve over time and may be modified as better or more efficient methods are identified. Requests for changes must be approved by the CFO who will then issue a redline version and republish the procedures for staff use. Modifications to the Procedures do not require further Board action as long as the Procedures comply with Board Policy and sound internal controls. 18.5 COST EFFICIENCY The responsibility for making prudent purchases that maximize the benefit to the District while minimizing costs rests with the authorized purchasers. Anyone who initiates a purchase for the District is responsible for the following:

a. Complying with the District’s purchasing policy and procedures; b. Making only prudent and necessary purchases; c. Completing all required paperwork and obtaining the required approval(s); d. Inspecting and accepting or rejecting items received; e. Notifying the Accounting department immediately of any items received that do not conform

to the purchase order; f. Recording equipment model and serial numbers, and registering the purchase and warranty

with the manufacturer; g. Taking reasonable steps to obtain items in the most cost effective manner and remain aware

of the responsibility of spending public funds. Department heads are responsible for ensuring their staff is in compliance with this Policy and related Procedures whenever making a purchase. A purchase is not valid unless it is made in accordance with both the Purchasing Policy and Purchasing Procedures. The CFO, assisted by the accounting staff, is responsible for monitoring total purchases to comply with the Budget and ensure sufficient funds are available to pay for authorized purchases in a timely manner. Likewise, department heads and cost center managers are responsible for monitoring their respective area’s purchases in relation to the Budget and for reprioritizing spending as needed. The CEO/General Manager is authorized to purchase items up to $50,000. Board approval must be obtained for any purchase exceeding $50,000. Staff will not come back to the Board to request additional funding outside the Five Year Budget except for an unexpected, critical demand of a high dollar value. 18.6 PURCHASE DEFINITION A purchase is defined as an expenditure, or series of expenditures, that achieves a single purpose within a reasonable time period. An acquisition may not therefore be broken into smaller pieces to avoid purchasing authorization thresholds.


18.7 DEFINITION OF BUDGET COMPLIANCE As noted in section 18.3, the term “within budget” means an expenditure specifically identified in the budget as well as unforeseen necessary expenditures, as long as a department’s overall approved budget is not exceeded. Funds can be moved between accounts and years by staff with purchasing authority and cost center manager approval; Board approval is not required. CIP projects can be reprioritized to ensure those deemed most vital are achieved with approval of the CIP Manager and, if appropriate, the Operations Manager. Although Board approval is generally not required to reprioritize projects, approval would be required if a significant project were deferred. The monthly financial report lists all CIP projects and their progress. Funds may also be transferred between the operating, CIP and capital budgets if approved by the CFO; this does not require Board approval but finance provides an annual reconciliation to the original budget. The Park is unique in that an increase in attendance at the Park, campground and RV storage lot generates additional revenue but also generates additional expenses (i.e. electricity, fish stock, maintenance). Because maximizing occupancy at the Park is desirable, increased spending necessary to generate additional revenue at the Park is acceptable as long as revenue neutrality is achieved. All purchases must be coded to the correct cost center, object account and, if appropriate, project string or work order. Consistency in this area will ensure accurate record keeping and provide a comparable historical tracking of expenditures. Account coding of expenditures should not change solely because of a lack of budget within a cost center or account. The Five Year Plan allows for line items to be over or under budget as long as there is an offset so that the overall Budget is not exceeded. 18.8 EXPENDITURE CATEGORIES Expenditure authorizations have been established for the following expenditure categories:

1. Capital assets 2. Materials and supplies 3. Professional services 4. Other services and supplies 5. Real property

18.8.1 Capital Assets The Governmental Accounting Standards Board (GASB) Statement 34, among other things, establishes guidelines for recognizing and reporting capital assets. According to GASB 34 “the term capital asset includes land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, infrastructure and all other intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.” Capital assets that have durable physical form (e.g. land, buildings, equipment and infrastructure) are known as tangible capital assets. Capital assets that lack physical form (e.g. computer software, water rights


and easements) even though they may be closely associated with a tangible capital asset are known as intangible assets. Preconditions for Capitalization A cost should only be capitalized if it is: 1) Directly identifiable with a specific asset 2) Incurred after acquisition of the related asset is considered probable/ likely to occur The requirement that a cost be “directly identifiable with a specific asset” precludes the capitalization of things like studies and master plans. For example, the cost of a study undertaken to determine the best location for a pump station in not capitalizable because when the cost was incurred, it was not identified with a specific piece of property. The requirement that a cost can only be capitalized “if it is incurred after acquisition of the related asset is considered probable” precludes the capitalization of things like feasibility studies. Internal costs Many costs can be either directly or indirectly related to the acquisition of a capital asset. The following three basic guidelines can help determine if a cost should be included as part of the capital asset acquired:

1) General and administrative costs should never be capitalized – this includes overhead costs such as the use of district facilities, executive management salaries, accounting and HR.

2) Costs directly related to the acquisition of a specific asset should be capitalized – this includes

the salaries and wages of employees who work on a specific project. 3) Costs clearly related to the acquisition of capital assets, but not to specific projects, should be

capitalized – this includes project administration and other costs that clearly relate to projects under development or construction; these indirect project costs should be allocated to individual projects.

District Thresholds for Capitalization Expenditures for tangible items that meet the above criteria should be capitalized if the item purchased or constructed costs $5,000 or more and has a useful life of five or more years. The District divides capital expenditures into equipment, real property, and construction projects. Equipment purchases are items purchased in a form ready for use in District operations. Real property is land and land rights, such as easements. Construction projects are items built for public works, replacements or betterments and include expenditures for engineering, inspection, contracts, materials, equipment usage and District construction labor. Expenditures for intangible assets that meet the above criteria should be capitalized if the item costs $25,000 or more and has a useful life of five or more years. Major repair and maintenance expenditures should be capitalized if they extend the useful life of an asset, are $25,000 or more and have a useful life of seven or more years. Major repairs and maintenance under the $25,000 per seven year threshold can be


capitalized with the approval of the Director of Finance if they extend the life of the asset, cost over $5,000 and have a three year useful life. Many capital expenditure requirements can be anticipated and are therefore incorporated into the District’s Five Year Plan. However, the Plan allows for the flexibility to accommodate unanticipated purchases if there are sufficient capital funds available. Under the Plan, staff is authorized to change spending patterns of the capital equipment budget so long as overall spending does not exceed the approved Five Year Budget. Periodic reporting of the changes will be communicated to the Board and any major high dollar impact will be agendized for full Board consideration. At least annually, an updated spending plan for capital replacements and improvements and preventive maintenance will be presented to the Board with a staff analysis indicating why projects have been reprioritized. The following asset decision matrix can be used to determine if an expenditure should be capitalized.


18.8.2 Materials and Supplies Materials and supplies are items purchased for current use in operations or to be held in inventory for future use, have an individual cost of less than $5,000, and which do not otherwise qualify as a capital purchase per Section 18.9.1. The custodians of the material and supplies inventories are responsible for ensuring items are properly secured while in inventory, keeping accurate inventory records, keeping adequate inventory on hand for operations and issuing items from inventory consistent with this Policy. 18.8.3 External Service Providers The engagement of an external service provider is essential when District staff does not possess the necessary expertise or cannot perform work due to existing workload, project priorities, project size, etc. Specialized service providers qualified by education, experience or certification can be split into three basic categories: Construction Services, Professional Services and Maintenance / Service Providers. Section 18.15 of the Purchasing Procedures details the process for selecting external service providers. 18.8.4 Other Services and Supplies Other services and supplies are items charged to District operations, construction projects, or administration expenses. Included in this category are:

a. Water, Sewer and Power Expenditures The General Manager, Director of Operations and the Director of Finance are authorized to

purchase and disburse payment for imported water supply, sewer processing costs to San Diego METRO and to SDG&E or other energy providers for outside power services. Such authorization requires that at least two of these positions review and authorize payments.

b. Refund of Unused Developer Deposits and Fees

The General Manager, Director of Engineering and the Director of Finance are authorized to refund any unused developer fees and deposits in accordance with District policy. Such authorization requires that at least two of these positions review and authorize payments. Refunds require a notice of completion or abandonment of project. Engineering staff prepares and files the final paperwork and then Engineering and Finance staff review the final job cost report and process the payments.

c. Insurance Contracts The General Manager, Director of Human Resources, Director of Finance and Director of Operations are authorized to make disbursements for approved insurance contracts (i.e. health insurance, property and casualty insurance, etc.)

18.8.5 Real Property The General Manager is authorized to negotiate with property owners for the purchase or sale of real property or real property rights such as easements. The General Manager must follow state law regarding the purchase or sale of real property or for any special considerations relating to real property, such as


condemnation proceedings. All final agreements related to real property must be approved by the Board and executed through a written contract. 18.9 CONSTRUCTION PROJECTS FUNDING POLICY The District’s facilities are continually expanded and improved to meet the service needs of its customers and changing regulatory requirements. Construction projects are funded by developer deposits, other revenues, capacity expansion funds, or District general funds. Construction projects funded by developer deposits or other revenues require a revenue contract specifying the work to be performed, limiting the District's liability, and assuring the availability of funds. Construction projects funded by capacity expansion or general funds require available monies within the appropriate fund. If capital expansion fees are no longer available, projects are to be funded by general funds. Expenditures for construction projects built under the direction of the Director of Engineering and Planning are subject to the limits established in Section 18.3 of this Policy. Section 18.15 of the Purchasing Procedures outlines the solicitation and selection process for all external service providers, including those for construction projects. 18.10 COOPERATIVE PURCHASING Purchases of goods and services under cooperative purchasing programs with the federal government, state, county, any public or municipal corporation of the state, or intergovernmental cooperative purchasing agreement, may be made by the District when the administering or lead agency has based its contract on competitive pricing procedures and the purchase is determined to be in the best interest of the District. The purchase agreement must specifically include the item or service to be purchased by the District. The General Manager or his designee may also join directly with other public agencies in cooperative purchasing agreements to buy goods and services or buy/lease directly from a vendor at a price established by another public agency’s competitive bidding as long as that process was recent and in substantial compliance with the District’s competitive bidding process. The General Manager or his designee is authorized to enter into such cooperative purchasing contracts provided: the purchase does not exceed the limits outlined in section 18.3, the funding for the goods and services are within the approved budget, and the cooperative purchasing agreement being utilized was awarded as a result of a competitive pricing procedure containing a public agency clause.


List of Ordinances Amending Section 18: 2000-13, adopted 12/12/00, rewriting Section 18. 2008-09, adopted 8/12/08, rewriting Section 18. 2013-08, adopted 12/18/13, rewriting Section 18. 2014-06, adopted 12/3/14, annual review with minor changes. 2018-04, adopted 12/19/18, annual review amending various sections

PURCHASING PROCEDURES 18.13 PURCHASING PROCEDURES

18.13.1 Definition of a Purchase

18.13.2 Internal Controls

18.13.3 Purchasing Authority

18.13.4 Definition of Within Budget 18.13.5 Cost Efficient Purchasing

18.13.6 Competitive Bid Requirements

18.13.7 Sole or Single Source Purchases

18.14 PURCHASING METHODS

18.14.1 Requisition and Purchase Order (PO) 18.14.2 Blanket Purchase Order (BPO)

18.14.3 Line of Credit (LOC)

18.14.4 Warrant Request / Blue Warrant

18.14.5 Quick Check 18.14.6 Petty Cash 18.14.7 Credit Card

18.14.8 Ordinance, Resolution, or Motion

18.14.9 Written Contract 18.15 EXTERNAL SERVICE PROVIDERS 18.15.1 Soliciting an External Service Provider

18.15.2 Selection and Engagement of an External Service Provider 18.16 CONTROL AND DISPOSAL OF SURPLUS EQUIPMENT 18.17 PURCHASING FORMS

• Vendor Information Form

• Sole Source Procurement Form

• Vendor Warrant Request

18.13 PURCHASING PROCEDURES

These Procedures supplement the District’s Purchasing Policy. They define specific methods of purchasing goods and services and allow employees with purchasing authority to operate within certain limits while maintaining sound internal controls. The CFO/Director of Finance (CFO) and accounting staff help support and interpret the Purchasing Policy and Procedures as needed. They also conduct periodic training sessions for all designated purchasers and provide on the job training for anyone needing additional assistance. The responsibility and authority to modify these Procedures rests with the CFO; they should be modified as needed to remain relevant, accurate and effective. Although changes to the Purchasing Policy must be approved by the Board of Directors, these Procedures may be modified without Board approval as long as they comply with the Purchasing Policy and sound internal controls. 18.13.1 Definition of a Purchase For the purpose of these Procedures, a purchase is defined as an expenditure, or series of expenditures, that achieves a single purpose within a reasonable time period. An acquisition may not therefore be broken into smaller pieces to avoid purchasing authorization thresholds. Purchasing is a three step process; payments to vendors will only be made once all steps are completed.

* Proper documentation includes a purchase order, warrant, executed contract or credit card.

18.13.2 Internal Controls These Procedures should be consistent with sound internal controls which require segregation of duties and purchasing authority levels to protect against intentional and unintentional errors. Internal controls also help ensure that authorized purchases are made at the best possible price commensurate with quality, that goods or services are received and that funds are available. Internal controls protect employees and the District against fraud and errors by spreading the responsibility to more than one person. Honest errors are more likely to be caught and dishonest errors discouraged when effective internal controls exist. The higher the price of a purchase, the more stringent controls need to be because the impact on the District’s operations is more significant.

Ordering By an authorized

purchaser

Receiving Confirmation that goods or services

ordered are received

Invoicing Last step after proper

documentation is provided*

18.13.3 Purchasing Authority

The ultimate authority to make purchases for the District rests with the Board of Directors. The Board delegates this authority to the General Manager who further delegates it to others as specified in these Procedures. The chart below outlines the overall levels of purchasing authority and criteria. Each department shall designate a “Purchasing Processor” to initiate purchase order requisitions which then go through the required level of approvals. Several departments may utilize one processor and larger departments may require more than one.

Authorized Purchaser Approval Required for all Purchases Purchasing Criteria

Board of Directors Over $50,000 Any item

General Manager Up to $50,000 Must be within budget

Departmental Directors Up to $35,000 Must be within budget

Cost Center Managers Up to $15,000 Must be within budget

Purchasing Processors Up to $ 2,500 Must be within budget

Finance and Operations Directors Actual Amount

Water, sewer, electricity, CWA, METRO, PERS, OPEB, loan payments

Director of Engineering Actual Amount Refunds of unused developer fees and deposits

Director of Human Resources Contracted Amount Insurance payments (i.e. health, life, dental)

General Manager/ Management N/A May submit any lower amount

for Board consideration.

18.13.4 Definition of Within Budget

The definition of “within budget” is consistent with the Five Year Plan including expenditures specifically identified in the budget and unforeseen necessary expenditures, as long as the department’s overall approved budget is not exceeded; this most likely requires ongoing reprioritization or deferral of other budgeted items or a budget transfer from another department.

18.13.5 Cost Efficient Purchasing

These Procedures recognize the need for efficient, cost effective methods of purchasing. They also recognize that the Board’s delegation of purchasing authority requires employees be responsible and accountable. Employees must always make prudent buying decisions, based on a reasonable level of research, although the specific requirements vary depending on the dollar value of the purchase; higher dollar amounts which have higher budget consequences require alternative evaluations, more documentation and higher level approval.

18.13.6 Competitive Bid Requirements

Although all purchasing decisions should be made only after comparing available alternatives, the requirement to obtain bids, the type of bid and number of bids depends on the dollar value of a purchase. Bids should include all relevant information for comparability such as price, materials, equipment, terms, technical specifications, discounts, taxes and delivery. All bids should be scanned and attached to the Purchase Order in Munis. In limited circumstances, Sole or Single Source Purchases may be valid (see Section 18.13.7). The following summarizes the requirements for competitive bids.

*If fewer bids are submitted, staff may choose from among those received.

18.13.7 Sole or Single Source Purchases

A sole source purchase is one where there is only one vendor capable of providing a good or service making it impossible to obtain competitive bids. A single source purchase is one where there are multiple sources of supply but the purchase should be made from a specific vendor for particular reasons. Few situations should arise that justify sole or single source procurement and such situations must be thoroughly analyzed before determining a non-competitive environment for a purchase exists. The use of sole/single source purchasing is restricted to the following situations:

• The good or service is available only from one vendor. • Urgency or a public emergency does not permit the delay caused by a competitive process. • Competition is deemed inadequate after soliciting a number of sources. • A pre-existing vendor relationship exists where continuity of service will produce a better result. • Vendor holds a unique set of skills or expertise that makes it impossible/unlikely anyone else

can do the work or the same quality of work. • A grant or agency funding a project authorizes sole source, non-competitive negotiation.

Under $10,000

• Most competitive and convenient source

$10,000 - $35,000

•Two or more written bids approved by an individual with purchasing authority*

Over $35,000

•Three or more written bids with formal specifications approved by General Manager or designee*

If there is adequate justification for a sole or single source purchase, then the firm may be selected without other solicitations upon approval of the General Manager or designee for contracts anticipated to be less than $50,000 ($35,000 for public works) and upon Board approval for all other contracts. All sole or single source purchases should include a written justification and recommendation of the department head. A “Sole Source Procurement Form” (in Section 18.17 or on the Stream) should be completed to document the reason competitive bids were not obtained; this form should then be scanned and attached to the Purchase Order in Munis. 18.14 PURCHASING METHODS Nine purchasing methods are available to qualified purchasers; the choice of which method to use depends on the particular circumstance.

All purchasing methods require the same basic information to process payments.

• Vendor number • Description of goods or services • Account number, cost center and project or work order if applicable • Person ordering or authorized • Purchase price, not to exceed amount or per item dollar limit • Receipt or packing slip from vendor

The following is required to set up a new vendor:

• Vendor Information Form • Signed and completed Form W-9

Ordinance, Resolution or Motion

Written Contract

Electronic Purchase

Order

Blanket PO

Line of Credit

Quick Check

Warrant

Petty Cash

Credit Card

Purchasing Methods

18.14.1 Purchase Order (PO) and Requisition A legally binding document used to acquire goods or services from a vendor at a certain price. POs are processed in Munis, the District’s financial software. POs minimize paperwork and provide an organized method for processing, approving, receiving and paying for purchases. They are the preferred method for purchases other than incidental purchases under $50, travel expenses, credit card purchases or when the use of a Blanket PO, Line of Credit or Warrant Request is more appropriate. In order to issue a PO, a purchasing processor must first enter a Requisition in Munis. A Requisition includes all the information necessary for a PO but is a way to obtain required approvals before a PO is generated. An estimate of the cost of a purchase can be used if the exact cost is not known; reasonable variances (up to 10%) between invoiced amounts and PO amounts will be tolerated. Once a Requisition is entered into Munis, it is forwarded to the Budget Analyst who confirms it has been coded correctly. It is then forwarded through Munis’s workflow for approval based on purchasing authority thresholds. Once all approvals are given, the Requisition is converted to a PO and the cost center is encumbered for the total amount of the PO. It is the responsibility of the purchaser or purchasing processor to verify receipt of goods and services by “receiving” on a PO in Munis. Once this is done, Accounting processes the invoice for payment and the cost center is charged with the expense. All invoices must include a valid PO number. The PO and its receiving record are then matched with the invoice in Munis before vendor payment is made. 18.14.2 Blanket Purchase Order (BPO) The preferred purchasing method when several purchases of a common type from the same vendor are expected over a fiscal year and the total amount can be reasonably predicted. BPOs are issued the same way as a standard PO; the difference is in the receiving process. A BPO is approved for the total amount of all purchases expected and encumbers the cost center for that amount. As purchases are “received on”, the invoice is paid against the BPO and reduces the amount available for subsequent purchases. At the end of each fiscal year, any unused balance should be “closed” (zeroed out). If future purchases are expected, a new BPO can be created in the following fiscal year. BPOs should not be used in situations where multiple cost centers are impacted. 18.14.3 Line of Credit (LOC) A procurement process favored when making routine purchases from the same vendor. LOCs ultimately save time and expense of issuing POs or warrants each time a small, periodic purchase is made. LOCs designate dollar limits and other specific conditions within which named employees can charge purchases at a specific vendor location. Each purchase is limited to the dollar amount specified in the LOC but may not exceed $999.99; purchases over this amount should use a traditional PO. Only listed employees are authorized to purchase against a LOC. It is an employee’s responsibility to ensure that they are authorized to make a purchase; vendors are not expected to verify if an employee is an approved purchaser. Unauthorized employees that make purchases on a LOC will be disciplined.

Steps to request a new LOC:

1) Responsible party completes a LOC requisition form (Appendix B) 2) LOC form is forwarded to Accounting; the official LOC is prepared and signed by the CFO 3) Accounting notifies originating party and vendor of approved LOC and terms

As items are purchased, the authorized employee must promptly submit the invoice to Accounting, referencing the LOC number and including the information required for all purchases listed in section 18.13.1. Changes to an LOC must be approved by the appropriate department head in writing.

Accounting is responsible for maintaining current LOCs. Periodically, Accounting will review all LOCs to verify vendor information, authorized employees and per item dollar limit. Any old or expired LOCs should be closed and the vendor notified. 18.14.4 Warrant Request / Blue Warrant A manual purchase requisition process which is both a request to purchase and a request for payment. A warrant request is preferred when quick purchasing needs make traditional PO processing impractical or unwarranted. Warrant requests make sense for prepayments, registrations, travel expenses, subscriptions, sales tax payments and customer/developer refunds. A warrant can be requested by completing a “Warrant Request Form” (in Section 18.17 and on the Stream) or by affixing a warrant request sticker to an invoice. The completed request, along with the appropriate back-up and approvals, are routed to the Accounting department. Warrant checks are generally mailed directly to the vendor; if an employee wants to hand-deliver a check, they would attach a pink “Warrant Special Handling” form to the request before submitting it to Accounting. A warrant request is normally processed as part of the weekly Accounts Payable run. To expedite a warrant request, a “Blue Warrant” may be issued; the process for a blue warrant is the same as a regular warrant except that the check is issued immediately. With proper planning, the need for Blue Warrants should be infrequent. 18.14.5 Quick Check A Quick Check is designed for employees to make urgent, non-routine purchases between $25 and $250, where a vendor credit arrangement does not exist. The disadvantage of using a Quick Check is that purchase information is tracked manually rather than recorded in Munis. Quick Checks are a last resort behind POs, LOCs, warrants or credit cards and may not be mailed. Finance maintains a Quick Check checking account; the account is a $2,500 revolving fund which is replenished periodically. The Quick Check process is as follows:

1) An employee requests a Quick Check from Accounting 2) Accounting fills in the date and payee 3) The Quick Check is signed by an authorized signer 4) The purchaser promptly returns the white copy of the check form, the receipt and the

proper account code for the purchase to Accounting 5) Periodically, Accounting issues a check from the main account to reimburse the Quick Check

checking account; at this point, the expense is recorded in the GL.

18.14.6 Petty Cash Petty cash is the preferred method to make one-time purchases under $50; it saves the time and expense of issuing a PO. Multiple purchases of the same item are not allowed to circumvent the $50 limit. If a purchase exceeds $50, a warrant request should be submitted. Examples of petty cash use include parking fees, mileage, meeting supplies and other small incidental expenditures. Petty cash funds have been established in the Customer Service Department, Operations Administration Building and Park Office. Each petty cash custodian is responsible for safeguarding their fund. The CFO must authorize the establishment of new or adjustments to existing petty cash funds. To receive funds, a petty cash receipt form (kept by each petty cash custodian) must be completed stating the reason for the expenditure and the account to be charged; the original receipt should be attached to the form and must be signed by the purchaser. Petty cash cannot be used to cash employee personal checks. Remaining petty cash plus receipts should equal total petty cash fund at all times. To replenish a petty cash fund, the custodian completes the Petty Cash Reconciliation Form and turns it and all receipts in to Accounting. Accounting then issues a check made payable to “Padre Dam” which the custodian cashes at the bank and replenishes the fund.

18.14.7 Credit Cards A District issued credit card obligates the District when a purchase is made. Responsible parties may use a District credit card if the purchase does not exceed their approved budget and authority level. Credit cards should not be used for high dollar purchases where a Requisition/PO is more appropriate. District credit cards are not for personal use and should not be loaned out to unauthorized individuals. The issuance of new credit cards requires the approval of the department head and CFO. The number of credit cards is limited to improve accountability and control. Periodically, the CFO will review the list of card holders and limits to determine if adjustments are necessary. Credit cards should only be used when other purchasing methods are not practical such as for travel, business meals, on-line purchases and incidental minor purchases. When a purchase is made, the credit card receipt must be saved; if a receipt is lost, the purchaser must try to obtain a copy or other evidence of the purchase. Monthly, Accounting receives statements from the credit card company and distributes them to the individual cardholders. Each cardholder must verify all purchases and complete the Credit Card Summary Form. This form, with the statement and all original receipts, must be returned to accounting promptly; any delays can result in interest and late charges, and may cause the credit card holder to lose credit card privileges. 18.14.8 Ordinance, Resolution or Motion Formal, legal expressions of intent and direction required for purchases of goods or services over $50,000, adopted by the Board of Directors. They are generally not used for routine, budgeted items within purchasing authority levels unless Staff or the Board considers the purchase relevant for Board action or disclosure.

When requesting an ordinance, resolution or motion be approved for a purchase, the agenda report should list the requested expenditure, whether the expenditure is budgeted or unbudgeted and if funds are available; if unbudgeted, the agenda report should note where funds are available and/or if other projects will be delayed/forgone as a result. The purchasing processer submitting the requisition or warrant for payment must include documentation substantiating Board approval. This should include attaching Board Minutes, along with a copy of the contract, and include the date of Board approval within the general description, using the general notes in Munis if needed. 18.14.9 Written Contract A written document to provide goods and/or services for a specified price or range that binds both parties to the terms. A contract is required for all purchases. For purchases under $10,000, a PO serves as a contract; however, a written contract using the District’s approved template is required in any of the following cases:

• Purchase exceeds $10,000 • Maintenance / Service Agreements • Capital Improvement Project / Construction Contracts • Professional Service Agreements • Acquisition, sale, lease or licensing of Real Property, including Easements • Employee / Employer Labor Agreements • Requirement Imposed by Vendor • Requirement Imposed by Law

Written contracts should follow District guidelines and are to be signed by a department director or the General Manager, subject to authorization levels. A cost center manager may sign routine, maintenance/service contracts within their purchasing authority level with the written approval (or email) of their department’s director.

18.15 EXTERNAL SERVICES PROVIDERS The engagement of an external servicer provider is essential when District staff does not possess the necessary expertise or cannot perform work due to existing workload, project priorities, project size, etc. Specialized service providers qualified by education, experience or certification can be split into three basic categories: Construction Services, Professional Services and Maintenance / Service Provider.

18.15.1 Soliciting an External Service Provider One or more of the following solicitations are used depending on the type and value of services needed: Request for Qualifications (RFQ) An RFQ is a document that solicits firms to submit information about their qualifications and capabilities to perform the type of work associated with a proposed project. The preparation of an RFQ generally does not require specific project knowledge or project scope; a discussion of project specific work should be discouraged unless there are special circumstances. An RFQ may be used as a pre-qualification step to engaging a service provider. If an RFQ is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent RFP process. An RFQ will contain specific reference to selection criteria. Minimum selection criteria should include the following:

Firm and Staff experience on projects of a similar nature Approved methods to accomplish work Quality Control/Quality Assurance Program

Construction Services

Firms that work on projects to construct,

repair, replace, enhance or expand District facilities

Requires applicable contractors' license

Professional Services

Engineers, Architects, Attorneys and other

licensed individuals. Work product includes reports,

studies, plans, specifications, etc.

May require a license

Maintenance / Service Provider

Includes flow monitoring, surveying, maintenance,

security, landscaping, janitorial or other normally

non-licensed services

Usually includes some form of physical skill

Request for Proposal (RFP) An RFP is a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time and approach to work are important factors when evaluating proposals. RFPs are normally associated with Professional Services but can be used for Technical Services. RFPs are project specific and preparation requires general knowledge of the project. It is expected that interested parties would do a limited amount of work to develop a quality proposal; however, an RFP should not require proposers to do a significant amount of work that would normally be compensated for during the project in order to submit a proposal. The RFP should address the following:

Standard contract requirements Selection criteria Scope of required services Proposal and submittal requirements

Proposals will be evaluated and ranked based on factors listed in the RFP. At a minimum, the following criteria should be used to rank proposals:

Firm experience (including work & project-related references) Key personnel (including relevant experience and references) Availability of staff Approved methods to accomplish the work Scope of work and schedule Quality Control/Quality Assurance Program

Contracts for Professional Services shall be awarded based upon demonstrated competence and professional qualifications. Therefore, while a reasonable price is always a consideration in selecting a consultant, it cannot be the sole factor in selecting a consultant for Professional Services. An RFP for Professional Services may request price information, so long as the relative weight of any cost criteria is appropriate. An RFP may also request that price information be submitted in a separate sealed envelope. If requested in a separate envelope, the envelopes shall not be opened until the highest rated firm is identified based upon the other criteria/evaluation factors. At that time, price information will be reviewed to ensure that the price is fair and reasonable. If a major price discrepancy exists between the highest rated firm and the others, the discrepancy shall be evaluated and explained before work is awarded. If the discrepancy is not satisfactorily resolved, staff may negotiate with the next-highest-ranked firm upon approval from the department head. Invitation to Bid (ITB) An ITB is a formal process to obtain the lowest responsive, responsible bidder for a service or product at the lowest price. ITBs are publically advertised and bids are submitted in sealed envelopes that are opened during a formal public opening, unless an alternative bid opening is used for electronic bidding. ITB are used to award a contract based on specific product or service specifications, utilizing cost or price related criteria. Once the minimum requirements identified in the District specifications are met,

the sole basis of award is cost. Typically ITBs are used to purchase goods and materials or to award technical services and public works (construction) projects. ITBs are project specific and preparation requires general knowledge of the project. It is expected that interested parties would do a limited amount of work to develop a quality bid; however, an ITB should not require proposers to do a significant amount of work that would normally be compensated for during the project in order to submit a bid. The ITB should address the following:

Standard contract requirements Scope of Work and schedule for completion Costs and applicable progress payments References Selection Criteria Key personnel (including relevant experience and references) Availability of staff Approved methods to accomplish the work Quality Control/Quality Assurance Program

18.15.2 Selection and Engagement of an External Service Provider The requirements for selecting and engaging an external service provider depends on the type and value of services required. The following summarizes the differences:

Construction Services / Public

Works

<$35K Purchasing Policy

Authority

>$35K Competitive Bid Board Approval

Professional Services


Authority

$50K - $200K RFP, May be Advertised

Board Approval

>$200K RFQ and RFP

RFP Must be Advertised Board Approval

Maintenance / Service Provider


Authority

>$50K RFP or ITB

Board Approval

Construction Services / Public Works Contracts < $35,000 CIP projects under $35,000 are subject to the District’s purchasing policy authority levels. Board approval is not required if budgeted. Construction Services / Public Works Contracts > $35,000 The District must competitively bid “public works” projects greater than $35,000 per the Public Contract Code, Section 20642. The appropriate department head shall designate a project manager (PM). Prior to bidding, the PM shall verify budget is available. These procedures apply to all District projects; however, for Park Projects, “Park Director” should replace “Director of Engineering” where appropriate:

1. The Director of Engineering and Planning, or his/her designee, is authorized to develop contract documents (conditions, drawings and specifications) and request bids for capital projects.

2. The Director of Engineering and Planning, or his/her designee, shall issue a Notice Inviting Bids for the project outlining the bidding process and requirements. A pre-bid meeting to answer questions shall be held as part of the bidding process. All bids shall be sealed and delivered to the District at a designated time and place per the Notice Inviting Bids. All bids will be disclosed in an agenda report to the Board. The project is awarded to the lowest responsive and responsible bidder.

3. Construction Contracts must be awarded by the Board of Directors. At the time the contract is

awarded, construction support contracts and recommended project contingencies must be provided for Board approval. The Board may designate the General Manager (who may designate a Department Head) to execute the contract after the contract is awarded.

4. The Director of Engineering and Planning is responsible for ensuring that each construction

project is executed in accordance with the Public Contract Code.

5. Contract contingencies Accommodate unanticipated expenditures or subsequent changes to a contract. The Board must approve any requested contingency. Directors are authorized by the Board to approve change orders for contracts that cumulatively do not exceed the Board’s approved project contingency; in general, these contingency thresholds are as follows:

Construction Contract Amount Contingency Threshold

$0 to $500,000 15%

$500,001 to $2,000,000 10%

$2,000,0001 and higher 5%

Staff may request a higher contingency threshold on a case-by-case basis, subject to review and approval from the General Manager and final approval from the Board. Cumulative change orders exceeding Board approved project contingencies requires additional Board approval.

Professional Service Contracts < $50,000

1. Does not require Board Approval if budgeted.

2. Obtain a scope and not-to-exceed estimate from a firm on the District’s as-needed contract list or from a firm that has expressed an interest (in writing) to perform such work for the District.

3. The department head or designee shall review the scope and not-to-exceed fee estimate from the selected consultant and negotiate a fair and reasonable price for the project.

4. Approval of the negotiated contract shall comply with the requirements of the District’s

Purchasing Policy and Procedures. Professional Service Contracts $50,000 to $200,000

1. An RFP should be prepared and approved by the appropriate department head. The RFP is then sent to interested firms on the District’s pre-qualified, as-needed contract list or to firms that have expressed an interest (in writing) to perform such work for the District. The work/project may be advertised and posted to the District’s website to attract a sufficient number of qualified firms; the advertisement should describe the work to be performed and advise interested firms to contact the District to obtain an RFP.

2. A selection committee of at least four members should be chosen by the department head or his/her designee. The department head can serve as the project manager (PM) or delegate that responsibility. Panelists from other agencies may be used in addition to staff if desired.

3. The selection committee reviews and evaluates the proposals received and should select at least

three of the top-ranked firms for an interview. If the committee wants to interview less than three firms, the reasons for their decision must be presented to the GM who can approve their decision or require more firms be selected for an interview. At the conclusion of the interviews, the selection committee shall assign each firm a ranking based on an evaluation of relevant criteria. The ranking shall be delivered to the department head in writing and shall remain confidential until an agreement for the work has been executed with one of the firms.

4. If, after reviewing all proposals, the committee feels they do not need to interview firms to make a qualified decision, they rank each firm based on an evaluation of relevant criteria and identify a preferred candidate. The ranking shall be delivered to the department head in writing and shall remain confidential until an agreement for the work has been executed. The reasons for the committee’s decision not to hold interviews must be presented to the GM who can approve the decision or direct the committee to conduct interviews.

5. The PM shall check references or verify experience of the top-ranked firm and attempt to

negotiate an agreement with them. Preparation and terms of any proposed contract or agreement shall comply with all applicable District regulations and procedures.

6. If an agreement to perform the work at a fair and reasonable price cannot be successfullynegotiated with the top-ranked firm or if the firm’s competence and qualifications to performthe work cannot be verified, the firm shall be informed in writing that the District is no longerconsidering their services for the work. The PM will then initiate negotiations with the next-highest-ranked firm.

7. The selection process is completed when an agreement is authorized by the Board and theagreement for the work is executed. Files and documents relating to the selection process shallbe retained in accordance with the District’s Records Retention Policy.

Professional Service Contracts > $200,000

1. An RFQ is prepared and approved by the appropriate department head

2. The work/project should be advertised on the District’s website, describing the work to be performed with a link to the RFQ. The purpose of this step is to attract a sufficient number of qualified firms to participate in the selection process.

3. All responses to the RFQ shall be reviewed and evaluated by the PM and designated staff members; qualified firms will be included in the RFP process.

4. At this point, a RFQ would follow the steps the process outlined in the Professional Service Contracts between $50,000 and $200,000 section above.

Maintenance / Service Provider Contracts <$50,000:

The process for selecting consultants/contractors for minor projects shall be in accordance with the Purchasing Policy. Maintenance / Service contracts under $50K do not require board approval. However service contracts considered Public Works Projects must follow the requirements of the Public Contract Code (Section 20642) detailed above.

Maintenance / Service Provider Contracts $50,000 and Above

1. An RFP or ITB is prepared and approved by the appropriate department head. Determination ofwhen to use an RFP or an ITB and their requirements are listed in Section 18.15.1.

2. Send the RFP or ITB to interested firms on the District’s pre-qualified, as-needed contract list,known or recommended firms or to firms that have expressed an interest (in writing) to performsuch work for the District. If needed to attract a sufficient number of qualified firms, the workmay be advertised in relevant professional journals, publications, newspaper or the District’swebsite, describing the work to be performed and advising interested firms to contact theDistrict to obtain an RFP or ITB.

3. A minimum of three firms shall be invited to participate in the RFP or ITB process. If thedepartment head wants to invite less than three firms, the reasons for his/her decision must be

presented to the GM; the GM can authorize the selection process to proceed or direct that additional qualified firms be solicited before proceeding.

4. Review proposals or bids.a. For proposals, follow steps for Professional Services >$50,000b. For bids, select the lowest responsive and responsible bid.

5. The department head or designee shall check references or verify experience of the lowestbidding firm. Upon completion of verifications, the department head or designee will preparethe proposed contracts or agreements and shall be in compliance with all applicable Districtregulations and procedures.

6. The selection process is completed when an agreement is authorized by the Board and theagreement for the work is executed. Files and documents relating to the selection process shallbe retained in accordance with the District’s Records Retention Policy.

18.16 CONTROL AND DISPOSAL OF SURPLUS EQUIPMENT (EFFECTIVE WITH POLICY UPDATE)

Equipment that is replaced or no longer needed in one department may be transferred to another department within the District. Computer equipment being replaced shall be reviewed by IS staff to determine if it can be used elsewhere in the District. The following are the steps for replacing or discarding District equipment that cannot be used in another department.

Step 1: The original older equipment should be exchanged or traded in towards the purchase of the new equipment if possible and economically advantageous; otherwise

Step 2: The department with the equipment will notify the CFO of the surplus equipment; the notice should include a detailed description of the equipment including make, model and serial numbers of the equipment. For equipment which has a limited value, the documentation may be general.

Step 3: The CFO or designee shall try to sell the surplus equipment if the staff time required does not outweigh the benefit; the use of an auction service is a valid option. If the net proceeds from a sale do not justify the effort, then the surplus equipment may be sold for scrap (if possible) or else donated to a worthy organization, preferably within the District’s service area. Any equipment deemed worthless or inoperable may at the discretion and review of the CFO be discarded.

Once items are donated, discarded or disposed of, finance personnel will reflect these changes on the District’s list of assets.

18.17 PURCHASING FORMS

The following forms relate to the purchasing process. They can also be found on the Stream.

• Vendor Information Form• Sole Source Procurement Form• Vendor Warrant Request

VENDOR INFORMATION FORM

Required Information:

Vendor Number __________________________ New Update

Name of Person or Business _____________________________________________________

Address ______________________________________________________________________

City ____________________________________ State _______ Zip ________________

Business Phone # _______________________ Business Fax # ________________________

Contact Name _________________________________________________________________

Contact Phone # __________________ Contact Email: ________________________________

Payment Terms: Net 30 Other ______________ % Discount ________

W9 INFORMATION Required for All Vendors

Must also attach a completed and signed W-9 Form

Taxpayer Identification Number (TIN) Please check appropriate box:

______-__________________ OR C Corporation

Employer Identification Number (EIN) S Corporation

______-__________________ OR Partnership

Social Security Number (SSN) * Individual / Sole Proprietor

___________-________-___________ LLC: Type ______________

Name of person the SS# belongs to (mandatory) Other __________________

_______________________________________

Requested By ___________________________________ Dept. _____________ Date ____________

Entered By _____________________________________ Date ____________

Checked By _____________________________________ Date ____________

SOLE SOURCE PROCUREMENT FORM

Requestor Name: _______________________________________________________________________ Item/Service to be procured: _____________________________________________________________ Reason for requesting sole source (Check all that apply):

The good or service is available only from one vendor.

Urgency or a public emergency does not permit the delay caused by a competitive process.

Competition is deemed inadequate after soliciting a number of sources.

A pre-existing vendor relationship exists where continuity of service will produce a better result.

Vendor holds a unique set of skills or expertise that makes it impossible/unlikely anyone else can do the work or the same quality of work.

A grant or agency funding a project authorizes sole source, non-competitive negotiation.

Other service or equipment providers do not meet our requirements because:

_______________________________________________________________________________

Department Head Name: _______________________________________ Department Head Approval: ____________________________________ Date: ______________

CFO Name: __________________________________________________

CFO Approval: ________________________________________________ Date: ______________ NOTE: This form must be attached to a requisition (when creating a purchase order) or an invoice (when using a warrant request). Invoices for a sole source procurement purchase will NOT be paid unless accompanied by an approved Sole Source Procurement Form.

VENDOR WARRANT REQUEST

Attach all supporting documents to this request

Date or Invoice Date _______________________ Payment Due Date ______________

Invoice Number __________________________ Total Due _____________________

Vendor Number __________________________

Vendor Name ________________________________________________________________________

Address _____________________________________________________________________________

City _____________________________________ State ________ Zip ____________________

Project # or

Org Code

Phase Code or

Object

Task or

WO/ EE#

Org. Code or

Task Code Amount to pay Description

Remarks ____________________________________________________________________________________

____________________________________________________________________________________

Special Handling with pink slip attached

Mail check with attached copies

Purchasing Processor ____________________________________

Cost Center Manager/ Department Head ____________________________________

SECTION 19 INTERNAL OPERATING PROCEDURES INDEX Page

19.1 FUND STRUCTURE ........................................................................................................................ 3

19.1.1 Basis of Accounting ..............................................................................................................3

19.1.2 The General Fund ................................................................................................................3

19.1.3 Designated Cash Funds ........................................................................................................3

19.1.4 Restricted Cash Funds ..........................................................................................................5

19.1.5 Trust Funds .........................................................................................................................5

19.2 DISTRICT COST ALLOCATION AND BILLING RATES ...................................................................... 5

19.2.1 Cost Allocation ....................................................................................................................5

19.2.2 Billing Rates .........................................................................................................................5

19.3 PROPERTY TAX SUBVENTION ....................................................................................................... 5

19.4 INVESTMENT POLICY .................................................................................................................... 6

19.4.1 Introduction ........................................................................................................................6

19.4.2 Scope ..................................................................................................................................6

19.4.3 Objectives ...........................................................................................................................6

19.4.4 Delegation of Authority ........................................................................................................8

19.4.5 Finance and Administration Committee ................................................................................8

19.4.6 Reporting ............................................................................................................................8

19.4.7 Authorized Investment Instruments ......................................................................................9

19.4.8 Ineligible Investments ........................................................................................................ 13

19.4.9 Swaps ............................................................................................................................... 13

19.4.10 Loss of Value or Credit Quality ............................................................................................ 14

19.4.11 Approved Broker/Dealer List .............................................................................................. 14

19.4.12 Risk Tolerance ................................................................................................................... 14

19.4.13 Safekeeping and Custody ................................................................................................... 14

19.4.14 Statement of Investment Policy .......................................................................................... 15

19.4.15 Maximum Maturity ............................................................................................................ 15

19.4.16 Competitive Bidding Procedures ......................................................................................... 15

19.5 DEBT MANAGEMENT POLICY ..................................................................................................... 15

19.5.1 Introduction ...................................................................................................................... 15

Section 19 Standard Practices and Policies 2 of 28 Padre Dam Municipal Water District

19.5.2 Purpose of Policy ............................................................................................................... 16

19.5.3 Purpose and Use of Debt .................................................................................................... 16

19.5.4 Debt Management ............................................................................................................. 17

19.5.5 Debt Coverage Target ........................................................................................................ 17

19.5.6 Debt Structuring ................................................................................................................ 18

19.5.7 Types of Debt .................................................................................................................... 18

19.5.8 Credit Enhancement .......................................................................................................... 18

19.5.9 Debt Service Reserve Fund ................................................................................................. 18

19.5.10 Call Options/Redemption Provisions ................................................................................... 18

19.5.11 Capitalized Interest ............................................................................................................ 19

19.5.12 Credit Ratings .................................................................................................................... 19

19.5.13 Rating Agency Relationships ............................................................................................... 19

19.5.14 Bond Ratings ..................................................................................................................... 19

19.5.15 Method of Sale .................................................................................................................. 19

19.5.16 Roles and Responsibility ..................................................................................................... 20

19.6.17 Bond Counsel .................................................................................................................... 20

19.6.18 Financial Advisors .............................................................................................................. 20

19.5.19 Underwriters ..................................................................................................................... 21

19.5.20 Federal Arbitrage and Rebate Compliance ........................................................................... 21

19.5.21 Continuing Disclosure ........................................................................................................ 22

19.5.22 Compliance with Bond Covenants ....................................................................................... 22

19.5.23 Policy Review..................................................................................................................... 22

19.6 DISCLOSURE POLICY ................................................................................................................... 25

19.6.1 Purpose of Policy ............................................................................................................... 25


SECTION 19 INTERNAL OPERATING PROCEDURES

19.1 FUND STRUCTURE

19.1.1 Basis of Accounting

The District utilizes accounting principles appropriate for an enterprise fund to record its activities, as more fully described in the “Fund Accounting System,” adopted by the Board on July 28, 1999. Revenue and expenses are recognized on an accrual basis of accounting.

19.1.2 The General Fund The District maintains a general fund to account for its four operations: 1. Potable Water Fund: The Potable Water Operation is responsible for developing, acquiring,

transferring, storing and delivering potable water to retail customers in the western (ID A) and eastern (ID 1) service areas.

2. Wastewater (Sewer) Fund: The Wastewater (Sewer) Operation is responsible for the collection

and disposal of sewage for the District’s sewer service areas (ID A and B). 3. Water Recycling Fund: The Water Recycling Operation is responsible for the treatment and

distribution of reclaimed water to recycled irrigation customers and Santee Lakes. 4. Santee Lakes Recreation Preserve: Santee Lakes provides recreational services to campers,

picnickers, and fishermen at the Santee Lakes Recreation Preserve. The District records and distributes general and administrative support costs to operations and capital programs within the general fund based on the cost of support services provided. It also accounts for its capital equipment expenditures within the general fund.

19.1.3 Designated Cash Funds The District maintains designated funds for each operation to provide cash for the following purposes:

Rate Stabilization Fund (RSF): A reserve established to provide funding for operations in the event of an economic or other cyclical downturn, or in case of a natural disaster. RSF target balances are set for each operation. Funding of the RSF is determined as part of the rate setting process. Funds can be transferred between the RSF and CRF with Board approval.

RSF target balances for the Recycled Water and Park operations are set as follows:

Minimum: 1 year debt interest payments + 3 months operating expenses (before depreciation) Maximum: 1 year debt interest payments + 6 months operating expenses (before depreciation)


Because revenue for the Potable Water and Sewer operations can be more volatile, RSF target balances for these funds include an additional factor to mitigate the effects of a drought and supply allocations. RSF target balances for the Potable Water and Sewer operations are set as follows:

Minimum: 1 year debt interest payments + 3 months operating expenses (before depreciation)

+ loss of net revenue from a 10% loss of sales Maximum: 1 year debt interest payments + 6 months operating expenses (before depreciation)

+ loss of net revenue from a 20% loss of sales

2. Capital Replacement Fund (CRF): A reserve established to fund the replacement of capital assets (other than vehicles and equipment) as they reach the end of their useful lives. It also funds debt principal payments. CRF target balances are set for each operation. Funding of the CRF is determined as part of the rate setting process. Funds can be transferred between the CRF and RSF with Board approval.

CRF target balances for the Potable Water, Sewer and Park operations are set as follows:

Minimum: 1 year debt principal payments + 1 year CIP Maximum: 1 year debt principal payments + 2 years CIP

Future capital replacement needs relating to the water recycling plant far exceed current CIP expenditures in the Recycled Water operation. Because of this, the CRF target balances for Recycled Water include an additional factor to help offset those future costs.

Minimum: 1 year debt principal payments + 1 year CIP + funding for plant upgrade

Maximum: 1 year debt principal payments + 2 years CIP + funding for plant upgrade

3. Capital Improvement Program (CIP) Fund: A reserve established for each operation to help defray the cost of important Capital Improvement Projects. This reserve can be funded with excess unrestricted funds, earmarked CIP funds not spent in a particular year or used to save funds for expensive projects so as not to overtake the CIP Program’s budget or impact rates. Target balances will depend on existing needs.

4. Impending Sewer Liability Fund (ISLF): A reserve established to help fund either Padre Dam’s Advanced Water Purification Project (“AWP”) or the District’s share of the cost of upgrading the Point Loma Wastewater Treatment Plant. This is a reserve of the Sewer Operation. The target balances for this reserve are as follows:

Minimum: 20% of the estimated cost to the Sewer Operation for the AWP project

Maximum: Estimated cost of AWP or Point Loma Wastewater Treatment Plant upgrade


5. Contingency Fund: The Operating Contingency Fund is established to provide funding for significant but unanticipated expenditures. Funding for the contingency fund is determined as part of the rate setting process.

19.1.4 Restricted Cash Funds Capacity Expansion Funds (CEF) are revolving funds used to provide for the construction of facilities needed to extend services to new customers. CEF are funded through the expansion portion of capacity fees for new users and developers. All other funds held by the District that have an externally designated purpose are also considered restricted funds.

19.1.5 Trust Funds 1. California Employer’s Retiree Benefit Trust (CERBT): The District provides health insurance

benefits to its retirees (OPEB). The level of benefit depends on the year the employee was hired. The District joined CERBT to provide a vehicle for prefunding its obligations for providing OPEB. The District funds the Trust quarterly based on the amount determined by its actuary.

2. Such other funds as are necessary to accommodate statutory and contractual obligations of the

District. 19.2 DISTRICT COST ALLOCATION AND BILLING RATES

19.2.1 Cost Allocation District costs and expenses that can be directly attributed to a specific project, job, work order or operation shall be charged to that project, job, work order or operation. District costs and expenses that cannot be directly attributable to a specific project, job, work order or operation shall be charged to a support unit as defined in the District cost allocation plan. The cost of that support unit will be charged to District projects, jobs, work orders and operations based on the cost of support service actually provided.

19.2.2 Billing Rates The District's Billing Rates are the cost of supporting District employees so they can perform their work as efficiently as possible. Billing rates include direct labor costs, employee benefits and support unit costs. The support unit cost is calculated by a cost allocation plan. All direct and indirect costs are charged to the services, jobs, operations and departments based on the services provided. Billing rates are recomputed from time to time in accordance with Section 10.10 of the District’s Rules and Regulations. 19.3 PROPERTY TAX SUBVENTION The District receives property taxes that help offset the cost of providing water to its customers. A portion of the property taxes the District receives benefits all retail water customers; these property taxes are used


to directly reduce the retail water commodity rate. The District also receives property taxes that apply only to the Eastern service area; customers in that service area receive a credit per acre foot of water purchased. No subvention is provided to the District’s sewer customers, recycled water customers or the Santee Lakes Recreation Preserve. 19.4 INVESTMENT POLICY

19.4.1 Introduction The purpose of this document is to identify policies and procedures that provide for prudent and systematic investment of District funds and to organize and formalize investment related activities. The ultimate goal is to enhance the economic status of the District while protecting its funds. The investment policies and practices of the Treasurer and Director of Finance for the District are based upon limitations placed on it by the District's Board of Directors. These policies have five primary goals:

1. To protect principal.

2. To insure that funds are available to pay obligations of the District without having to liquidate investments at an inopportune time and risk loss of principal or accrued interest.

3. To maximize the interest yield earned from deposits. 4. To insure that all investment transactions are properly authorized and that all transactions

are properly carried out in a procedure designed to minimize risk, and prevent unauthorized transactions.

5. To assure compliance with all Federal, State and Local laws governing the investment of

monies under the control of the Director of Finance.

19.4.2 Scope It is intended that this policy cover all funds and investment activities under the direct authority of the Director of Finance, except for the employee's deferred compensation funds and funds invested by PERS. Bond proceeds will be invested according the applicable bond documents. If the bond documents are silent as to the investment of the proceeds, the proceeds will be invested according to this Policy.

19.4.3 Objectives A. Safety: It is the primary duty and responsibility of the Director of Finance to protect, preserve and maintain District cash and investments. Each investment transaction shall seek to ensure that capital losses are avoided, whether from institution default, broker-dealer default, or erosion of market value of securities. The Finance and Administration Committee shall evaluate or cause to have evaluated potential investments, seeking both quality in issuer and in underlying security or collateral. When possible, the portfolio will be diversified in order to reduce exposure to principal loss.


B. Liquidity: An adequate percentage of the portfolio will be maintained in liquid short-term securities which can be converted to cash if necessary to meet the operational needs of the District. Since all cash requirements cannot be anticipated, investment in securities with active secondary markets will be utilized. These securities will have a low sensitivity to market risk. C. Yield: Yield should become a consideration only after the basic requirements of safety and liquidity have been met. D. Market-Average Rate of Return: The investment portfolio shall be designed to attain a market-average rate of return throughout economic cycles, taking into account the District's risk constraints, the cash flow characteristics of the portfolio, State and Local laws, and ordinances or resolutions that restrict investments. The portfolio will be compared, on a quarterly basis, to a performance benchmark with portfolio characteristics similar to the District’s portfolio. E. Diversification: The investment portfolio will be diversified to avoid unreasonable and avoidable risks regarding specific security types or individual financial institutions. F. Prudence: The District adheres to the guidance provided by the "prudent investor standard”, a legal doctrine that requires fiduciaries to make investments using the prudence, diligence, and intelligence that would be used by a prudent person in making similar investments. “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” G. Public Trust: All participants in the investment process shall act as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. In a diversified portfolio it must be recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.

http://www.answers.com/topic/prudent-investor-rule-or-standard


19.4.4 Delegation of Authority The investment of District reserve funds is hereby delegated to the Finance and Administration Committee by the Board of Directors. The Finance and Administration Committee delegates the day to day investment operations to the Director of Finance for a period of one year; this delegation is contingent upon disclosure of investment results through the monthly report to the Board of Directors as described in Section 19.4.6. Subject to review, the Finance and Administration Committee may renew the delegation of authority pursuant to this section each year. As authorized by the Finance and Administration Committee, the Director of Finance may use a professional investment advisor to assist with the District’s investment program. Under the direction of the Director of Finance, the investment advisor will have responsibility for managing designated funds and executing day- to-day investment transactions. The investment advisor shall follow this investment policy and such other written instructions as are provided.

19.4.5 Finance and Administration Committee The Finance and Administration Committee shall consist of four members. All actions of the Finance and Administration Committee shall be with the approval of at least two members of the Finance and Administration Committee.

Primary Alternate Board Member Board Member Treasurer Board Member General Manager Accounting Manager Director of Finance Accounting Manager

19.4.6 Reporting The Director of Finance will submit a monthly investment report to the Board of Directors. This report will include:

Type of investment instrument (i.e. Treasury Bill, medium-term note) Issuer name (i.e., General Electric Credit Corp.) Purchase date (trade and settlement date) Maturity date Par value Purchase price Coupon Yield on cost Current market value and the source of valuation Accrued interest to date Overall portfolio yield based cost Average duration Percentage distribution by type of investment Transactions during the month

The monthly report shall (i) state compliance of the portfolio with applicable California Government Codes and the District’s Investment Policy, or manner in which the portfolio is not in compliance, (ii) include a description of any of the District’s funds, investments or programs that are under the management of contracted parties, and (iii) include a statement denoting the ability of the District to meet its expenditure


requirements for the next six months, or provide an explanation as to why sufficient money shall, or may not, be available.

19.4.7 Authorized Investment Instruments The District is governed by the California Government Code, § 53600 et seq. All percentages described below refer to the percentage at the time of the purchase. Within the context of these limitations, the following investments are authorized: Local Agency Investment Fund (LAIF): LAIF is a State of California Pooled Investment Fund that invests billions of dollars using the investment expertise of the State Treasurer’s Office investment staff at no additional cost to the taxpayer. All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The maximum permitted investment in the State’s pooled investment fund is the maximum allowed by the State Treasurer, currently $75 million. However, the District will set its maximum at 65% of the District’s surplus funds or $30 million, whichever is lower. San Diego County Pool: The San Diego County Investment Pool is a local government money fund which invests monies in accordance with standards set forth by the California Government Code and the County of San Diego Investment Policy. At a minimum, the pool is invested in no investment lower than an A rating. The maximum permitted investment in the County’s pooled investment fund is $1.0 million. No additional investments shall be made in the San Diego County Pool without the prior approval of the Finance and Administration Committee. Bankers Acceptances: The District may only purchase bankers’ acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System, the short-term paper of which is rated in the highest category by a Nationally Recognized Statistical Rating Organization (“NRSRO”). Purchases of Bankers Acceptances may not exceed 180 days maturity or 40 percent of the District’s surplus money. However, no more than 30% of the District’s surplus funds may be invested in the bankers’ acceptances of any one commercial bank. U.S. Treasury Securities: United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for payment of principal and interest.


Repurchase Agreements: Repurchase Agreements shall be used solely as short-term investments not to exceed 90 days. Collateral for repurchase agreements shall be limited to obligations of the United States government and its agencies. The market value of securities that underlie a Repurchase Agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be reviewed on a regular basis and adjusted no less than monthly. Market value must be calculated each time there is a substitution of collateral. The District will only enter into Repurchase Agreements with primary dealers of the Federal Reserve Bank of New York. Collateral used for the Repurchase Agreement will be delivered on a delivery vs. payment system to the District’s custodian on the date of settlement. Reverse Repurchase Agreements: The District will not enter into Reverse Repurchase Agreements, or any other securities lending arrangement, without the prior consent of the Board of Directors. If a Reverse Repurchase Agreement is authorized, it may be utilized only if the security to be sold on Reverse Repurchase Agreement has been owned and fully paid for by the District for a minimum of 30 days prior to the sale; the total of all Reverse Repurchase Agreements on investments owned by the District does not exceed 20 percent of the base value of the portfolio; and the agreement does not exceed a term of 90 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the settlement date and the maturity date. Reverse Repurchase Agreements can only be entered into with primary dealers of the Federal Reserve Bank of New York. Bank Deposits: The District may invest in FDIC-insured or fully collateralized bank deposits including, but not limited to, demand deposit accounts, savings accounts, market rate accounts, and time certificates of deposit in financial institutions issued by a nationally or state-chartered bank or a state or federal savings and loan association or by a state-licensed branch of a foreign bank. All deposits must be collateralized in accordance with California Government Code §53651, with the exception that real estate mortgages are not acceptable collateral; or at 110% by eligible marketable securities listed in Government Code section 53651, subdivisions subsections (a) through (l) and (n) and (o). A written depository contract is required with all institutions that hold Water District deposits. All banks are required to provide the District with a regular statement of pooled collateral which shall include the following statements: (i) the 110% collateral rule is being met; (ii) a market value and location listing of all collateral; (iii) accountability of the total amount of deposits secured by the pool. There is no limitation as to the percentage of the portfolio that may be invested in liquid bank deposits; however, collateralized time certificates shall not exceed 15 percent of total portfolio exposure. Maximum investment maturity will be restricted to two years.


Per §53637 of the California Government Code, the Board of Directors of Padre Dam Municipal Water District is prohibited from depositing or investing local funds in certificates of deposit issued by a state or federal credit union if any member of a local agency’s legislative body or any person with investment decision making authority for the local agency also serves on the board of directors or any committee appointed by the board of directors, or the credit committee, or supervisory committee, of the state or federal credit union issuing the negotiable certificates of deposit. Per § 53638 of the California Government Code, any deposit shall not exceed the total paid- up capital and surplus of any depository bank, nor shall the deposit exceed the total net worth of any institution. Placement Service Deposits: Deposit placed with a private sector entity that assists in the placement of deposits with eligible financial institutions located in the United States. The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by federal deposit insurance. Placement Service Deposits shall meet all of the requirements of California Government Code §53601.8. The total of all surplus funds invested with a Depository Institution, which are placed using a private sector placement entity, shall be limited to 30% of the District's surplus funds. Negotiable Certificates of Deposit: Negotiable certificates of deposits issued by a nationally or state-chartered bank or a state or federal association or by federally licensed or a state-licensed branch of a foreign bank provided that the senior debt obligations of the issuing institution are rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. Per §53601 of the California Govt. Code, the Board of Directors of Padre Dam Municipal Water District is prohibited from depositing or investing local funds in negotiable certificates of deposit issued by a state or federal credit union if any member of a local agency’s legislative body or any person with investment decision making authority for the local agency also serves on the board of directors or any committee appointed by the board of directors, or the credit committee, or supervisory committee, of the state or federal credit union issuing the negotiable certificates of deposit. Per §53638 of the California Govt. Code, any deposit shall not exceed the total paid-up capital and surplus of any depository bank, nor shall the deposit exceed the total net worth of any institution. Maximum investment maturity is restricted to five years. Maximum portfolio exposure is limited to 30 percent. Commercial Paper: Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): (1) The entity meets the following criteria: (a) is organized and operating within the United States as a general corporation; (b) has total assets in excess of $500 million; (c) has debt other than commercial paper, if any, that is rated in a rating category of "A" or higher, or the equivalent, by an NRSRO.


(2) The entity meets the following criteria: (a) is organized within the United States as a special purpose corporation, trust, or limited liability company; (b) has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond; (c) has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO. Purchases shall not exceed 10 percent of the outstanding paper of the issuing corporation. Maximum investment maturity is restricted to 270 days. Maximum portfolio exposure is limited to 25% percent. Medium Term Notes: Medium-term corporate notes, defined as all corporate and depository institution securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or depository institutions licensed by the United States or any state and operating within the United States. Medium term notes shall be rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. Maximum portfolio exposure is limited to 30 percent. U.S. Federal Agencies: Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. Other U.S. Instrumentalities: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or higher, or the equivalent, by an NRSRO. Maximum portfolio exposure is limited to 30 percent. Municipal Obligations: Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency or by a department, board, agency or authority of the state or any local agency. In addition to California municipal obligations, the District may invest in registered treasury notes or bonds of any of the other 49 United States, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States. To be eligible for purchase, the obligation must be rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. The maximum portfolio allocation to municipal obligations is 15 percent. Money Market Funds: Shares of beneficial interest issued by diversified management companies, that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.).


To be eligible for investment pursuant to this subdivision these companies shall either: (1) have attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs or (2) have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission, with not less than five years’ experience managing money market mutual funds, and with assets under management in excess of $500,000,000. The maximum portfolio exposure is limited to 20 percent. Local Government Investment Pools: Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in Government Code section 53601, subdivision (a) to (q),inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:

1. The adviser is registered or exempt from registration with the Securities and Exchange Commission.

2. The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.

3. The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

Mortgage- and Asset-Backed Securities: A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond with a maximum remaining maturity of five years or less. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO. Maximum portfolio exposure is limited to 20 percent. 19.4.8 Ineligible Investments The District shall not invest in inverse floaters, range notes, or mortgage-derived, interest-only strips. Furthermore, the District shall not invest in any security that could result in zero interest accrual if held to maturity. Any security or security type not specifically allowed by the District’s Policy is expressly prohibited. 19.4.9 Swaps A swap transaction will only be executed if (i) economic gain over the life or the investment can be realized, or (ii) it enhances the portfolio’s overall credit quality or liquidity. In no instance shall a swap be used for speculative purposes.


19.4.10 Loss of Value or Credit Quality When investments lose value either because of market conditions, credit quality, maturity or other conditions, the Finance and Administration Committee will evaluate the relative risk of holding versus liquidating the investment keeping in mind the five primary goals listed in Section 19.4.1 of this policy. If a fund or investment experiences a 3 percent market loss, regardless of actual dollar losses, the Committee will notify the Board of Directors of the reduced value and provide a recommended course of action. In the event a security held by the District is subject to a rating change that brings it below the minimum credit ratings specified in this policy, the Director of Finance will notify the Finance and Administration Committee of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further rate drops, and the market price of the security. 19.4.11 Approved Broker/Dealer List The District shall execute purchases and sales of securities only with primary dealers or other approved institutional broker/dealers. The District’s finance staff will maintain a list of financial institutions approved for securities’ transactions and will review the list annually. All approved institutions must sign the Information Request Form and agree to abide by the conditions set forth in the District’s Investment Policy. For transactions executed by the investment management firm engaged by the District, the firm’s approved list may be used. 19.4.12 Risk Tolerance The District recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control non-systematic risk. The Finance and Administration Committee is expected to display prudence in the selection of securities, as a way to minimize default risk. No individual investment transaction shall be undertaken which jeopardizes the capital position of the overall portfolio. Risk will also be managed by subscribing to a portfolio management philosophy that helps to control market and interest rate risk by purchasing in shorter term investments. This philosophy also prohibits trading losses (for speculative purposes) unless there is a sudden need for liquidity and the need cannot be satisfied on a more cost effective basis. Loss of principal will only be acceptable if economic gain can be conclusively demonstrated. Controlling and managing risk is the foremost portfolio management objective. The District strives to maintain an efficient portfolio by providing for the lowest level of risk for a given level of return. This acceptable level of return is based on the performance of a benchmark with similar portfolio characteristics as the District’s portfolio. Any level of return above this measure should be reviewed in order to ensure that such investments meet the criteria previously specified. 19.4.13 Safekeeping and Custody All securities transactions entered into by the District or by the District’s investment advisors, consultants or managers, shall be conducted on a delivery versus payment basis. All cash and securities in the District’s


portfolio shall be held in safekeeping the District’s name by a third party bank trust department, acting as agent for the District under the terms of a custody agreement executed by the bank and the District. The only exception to the foregoing shall be depository accounts and securities purchases made with: (I) LAIF, (ii) local government investment pools, and (iii) money market mutual funds, since these securities are not deliverable. Evidence of each of these investments will be held by the District Director of Finance. 19.4.14 Statement of Investment Policy The Director of Finance shall submit the Investment Policy for review by the Finance and Administration Committee annually. Any recommended changes to the policy shall also be considered by the Board of Directors at a public meeting. 19.4.15 Maximum Maturity Investment maturities shall be based on review of cash flow forecasts. Maturities will be scheduled so as to permit the District to meet all projected obligations. No investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement, that at the time of the investment has a term remaining to maturity in excess of five years, unless the Board has granted express authority to make that investment no less than three months prior to the investment. 19.4.16 Competitive Bidding Procedures A competitive process shall be used to conduct investment transactions whenever possible. When purchasing a security, the District, or its advisor, will select the security which provides (a) the highest rate of return among the comparable securities, and (b) optimizes the investment objectives of the overall portfolio. When selling a security, the District, or its advisor, will select the bid which generates the highest price. It will be the responsibility of the personnel involved with each purchase/sale to document and retain written records of each transaction.

19.5 DEBT MANAGEMENT POLICY

19.5.1 Introduction The Padre Dam Municipal Water District (District) funds its capital projects and meets other financing needs through a combination of current revenues, available reserves, and prudently issued debt. This policy, approved by the District’s Board of Directors (Board), documents the goals and guidelines of the District for the issuance and use of debt instruments to carry out its stated mission:

“The District’s mission is to provide quality water, recycled water, park and recreational facilities and wastewater management services for its customers. The District accomplishes this mission in the most cost-effective manner possible, earning customer and community respect.”


The District is committed to long-term capital and financial planning through its Five Year Business Plan and Budget as well as its 10-Year Strategic Plan. These plans are reviewed periodically to endorse prudent financial management and an updated capital replacement & improvement spending plan is presented to the Board annually with staff analysis of why projects have been reprioritized. The issuance of debt by the District to finance major capital projects or to refinance existing obligations will only occur after the transaction is evaluated and found to be fiscally prudent and responsible under the prevailing economic conditions. Debt will not be issued without prior approval by the Board.

19.5.2 Purpose of Policy The purpose of this debt management policy is to establish parameters for issuing debt; provide guidance to decision makers with respect to options available to finance capital projects and support other financing needs so that the most prudent, equitable and cost effective method of financing can be chosen; and promote objectivity in the decision-making process. The District will adhere to the following legal requirements for the issuance of debt:

• State law which authorizes the issuance of the debt; • Federal and state laws which govern the eligibility of the debt for tax-exempt status; • Federal and state laws which govern the issuance of taxable debt; • Federal and state laws which govern disclosure, sale, and trading of the debt both before and

subsequent to issuance; and • Generally Accepted Accounting Principles (GAAP).

19.5.3 Purpose and Use of Debt The District will use reasonable debt financing as an acceptable approach to fund long-term improvements and thus ensure intergenerational equity between existing and future customers. Long-term improvements include the acquisition of land, facilities, infrastructure, new supplies of water, new treatment options and enhancements or expansions to existing capacity and facilities. Debt can be issued to fund project planning, pre-design, design, land and/or easement acquisition, construction, equipment and other costs as permitted by law. The District will not issue debt to cover operating needs, unless specifically approved by the Board. District staff, including the General Manager and the Director of Finance, will work in conjunction with its outside financial advisor to periodically evaluate the District’s existing debt and recommend to the Board any such re-financing or prepayment (refunding) deemed economically beneficial. A refinancing may include the issuance of bonds to refund existing long-term or short-term obligations. All debt issuance or refunding proposals made by the District involving a pledge or other extension of the District’s credit through the sale of securities, execution of loans or leases, or making of guarantees or otherwise involving directly or indirectly the lending or pledging of the District’s credit shall be reviewed by the District and its financial advisor. District staff shall be responsible for analyzing the debt financing proposal to determine if it is beneficial to the District and complies with the its long-term financial planning objectives, including maintaining or improving the current credit ratings assigned to outstanding debt by the major credit rating agencies. The proceeds of any debt obligation shall be expended only for the purpose for which it was authorized. Debt may only be issued under Board authorization and when the District has appropriated sufficient funds to pay the obligation of principal and interest. No debt shall be issued with a maturity date greater


than the expected weighted average useful life of the facilities or improvements being financed. The final maturity of any long-term debt generally shall be limited to 30 years after the date of issuance, with exceptions requiring staff analysis and specific approval by the Board as to the rationale for extending beyond 30 years.

19.5.4 Debt Management The District will provide for a periodic review of its financial performance and review its performance relative to the financial policies outlined herein. These financial policies will be taken into account during the capital planning, budgeting, and rate setting processes. Necessary appropriations for annual debt service requirements will be reflected within the District’s budget. The District will maintain proactive communication with the investment community, including rating agencies and investors, to ensure future capital market access at the lowest possible interest rates. The District’s Debt Management Policy will be considered in the decision-making framework utilized in the preparation of the District’s Five Year Business Plan and Budget and ongoing capital improvement program planning. Proceeds of bond sales or other authorized long-term or short-term debt will be invested until used for the intended project(s) in order to maximize utilization of the public funds. The investments will be made to obtain the highest level of safety. District staff will oversee the investment of bond proceeds avoid or minimize any potential negative arbitrage over the life of the bond issuance, while complying with arbitrage and tax provisions. The proceeds will be deposited and recorded in separate accounts to ensure funds are not comingled with other forms of District cash. The District’s trustee bank will administer the disbursement of proceeds pursuant to each outstanding Indenture or Installment Purchase Agreement. Requisition for the disbursement of bond proceeds will be approved by the District’s General Manager or Director of Finance. District staff will monitor dedicated debt reserve fund balances and periodically review the advisability of prepayment or refunding of related debt. The financial advantages of a current refunding must outweigh the cost of reissuing new debt. A potential refunding will be assessed in combination with any new capital projects requiring financing, and the benefits of the refunding will be evaluated in relation to its costs and risks.

19.5.5 Debt Coverage Target The District will not engage in debt financing unless the proposed obligation, when combined with all existing debts, will result in acceptable debt ratios. In determining the affordability of proposed revenue bonds, the District will perform an analysis comparing projected annual net revenues, after payment of operating and maintenance (O&M expense), to estimated annual debt service and estimated debt coverage ratio. The debt coverage ratio is the amount of cash flow available to meet annual interest and principal payment on debt. The District’s existing bond covenants require a legal debt coverage ratio of at least 120% for Parity Debt and 105% including adjustments for District Reserves and District Rate Stabilization Funds. The District has established Rate Stabilization Funds to assist in meeting the legally required coverage levels. The District’s objective is to maintain coverage levels above the legally required minimum to sustain financial stability and result in a high quality credit rating.


19.5.6 Debt Structuring In structuring a debt issuance, the District will manage the amortization of debt, and to the extent possible, match its cash flow to the anticipated debt service payments. The District will evaluate the debt structure and amortization period on an issue-by-issue basis with the objective of structuring debt with level principal and interest payments over the life of the borrowing unless varying debt payments makes operational sense. 19.5.7 Types of Debt The District may consider the issuance of certificates of participation/revenue bonds, variable rate bonds, state revolving fund (SRF) loans, bank loans, notes, commercial paper, direct placements, capital leases, lease-purchase financing, and federal loans that may be available through the Water Infrastructure Finance and Innovation Act (WIFIA). The weighted average useful life of the asset(s) or project shall exceed the payout schedule of any debt the District assumes. A definition on each type of debt is provided in Appendix A. In addition to the aforementioned long and short term financing instruments, the District may consider joint arrangements with other governmental agencies to take advantage of cost sharing opportunities, potential joint projects and coordination to leverage grants and funding sources. The District is also authorized to join with other special districts and/or municipal agencies to create a separate entity, a Joint Powers Authority (JPA), to issue debt on behalf of the District, the special district or municipality. The District will only be liable for its share of debt service, as specified in a contract executed in connection with the joint venture debt. 19.5.8 Credit Enhancement Credit enhancement may be used to improve or establish a credit rating on a District debt obligation. Types of credit enhancements may include letters of credit, bond insurance or surety policies. The Board may be asked to authorize a credit enhancement if it reduces the overall cost of the proposed financing or if, in the opinion of the General Manager or Director of Finance, the use of such credit enhancement furthers the District’s overall financial objectives. 19.5.9 Debt Service Reserve Fund The District generally will size any new debt issuance such that a debt service reserve fund is established at the time of issuance. On a case-by-case basis, assuming there is no economic or credit disadvantage, the District may issue bonds without a debt service reserve fund or a reserve that is sized at a lower level. 19.5.10 Call Options/Redemption Provisions District staff will evaluate and recommend to the Board the use of a call option, if any, and call protection period for each issuance. A call option, or optional redemption provision, gives the District the right to prepay or retire debt prior to its stated maturity. This option may permit the District to achieve interest savings in the future through refunding of the bonds. The cost of call options can vary widely, depending largely on market conditions, an evaluation of factors, such as the call premium, time until the bonds may be called at a premium or at par, and interest rate volatility.


19.5.11 Capitalized Interest Generally, interest shall be capitalized for the construction period of a revenue-producing project as debt service expense does not begin until the project is expected to be operational and producing revenues. In addition, for lease back arrangements, such as those used for lease revenue bond transactions, interest may be capitalized for the construction period, until the asset is operational. Only under extraordinary circumstances may interest be capitalized for a period longer than the construction period. 19.5.12 Credit Ratings The District will seek to maintain the highest possible credit ratings that can be achieved for debt instruments without compromising the District’s policy objectives. Ratings are a reflection of the general fiscal soundness of the District and the capabilities of its management. Maintaining the highest possible credit ratings allows the District to issue debt at a lower interest cost. To enhance creditworthiness, the District is committed to prudent financial management, systematic capital planning, and long-term financial planning. The District recognizes that external economic, natural, or other events may from time to time affect the creditworthiness of its debt. Each proposal for new debt will be analyzed for its impact upon the District’s debt rating on its outstanding debt. 19.5.13 Rating Agency Relationships District staff shall be responsible for maintaining professional relationships with the rating agencies including S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings, as appropriate. This effort shall include providing periodic updates, both formal and informal, on the District’s general financial condition and coordinating meetings and presentations in conjunction with a new debt issuance, when determined necessary. Written disclosure documents to the rating agencies shall be provided by District staff. The retention of a rating agency relationship will be based on a determination of the potential for more favorable interest costs as compared to the direct and indirect cost of maintaining that relationship. 19.5.14 Bond Ratings District staff, working with the District’s financial advisor, shall be responsible for determining whether a rating shall be requested on a particular financing, and which of the major rating agencies shall be asked to provide such a rating. 19.5.15 Method of Sale The District will select the method of sale that best fits the type of debt being issued, market conditions, and the desire to structure maturities to enhance the overall performance of the entire debt portfolio. Three general methods exist for the sale of municipal bonds:

I. Competitive sale. Bonds are marketed to a wide audience of investment banking (underwriting) firms. The underwriter is selected based on its best bid for its securities. The District will award the sale of the competitively sold bonds on a true interest cost (TIC) basis. Pursuant to this policy, District staff are authorized to sign the bid form on behalf of the District fixing the interest rates on bonds sold on a competitive basis.


II. Negotiated sale. District staff selects the underwriter, or team of underwriters, of its securities in

advance of the bond sale. District staff works with the underwriter to bring the issue to market and negotiates all rates and terms of the sale. In advance of the sale, District staff will determine compensation for and liability of each underwriter employed and the designation rules and priority of orders under which the sale itself will be conducted. Pursuant to this policy, the General Manager or his designee (typically the Director of Finance) will be authorized to sign the bond purchase agreement on behalf of the District, fixing the interest rates on bonds sold on a negotiated basis.

III. Private placement. The District may elect to issue debt on a private placement bases. Such method

shall be considered if it is demonstrated to result in cost savings or provide other advantages relative to other methods of debt issuance, or of it is determined that access to the public market is unavailable and timing considerations require that a financing be completed.

19.5.16 Roles and Responsibility The primary responsibility for developing debt financing recommendations rests with the Director of Finance. In developing such recommendations, consideration should be given to the need for debt financing and an assessment of the progress on the District’s Five Year Business Plan & Budget and any other program/improvement deemed necessary by the District. The Board will authorize and approve debt financing and/or debt service related recommendations and proposals. All proposed debt financings shall be presented to the Board through the Finance and Administrative Services Committee and subsequently approved by the full Board. Debt is to be issued pursuant to the authority of and in full compliance with provisions, restrictions and limitations of the Constitution and laws of the State of California. 19.6.17 Bond Counsel The District will retain external bond counsel for all debt issues. As part of its responsibility to oversee and coordinate the marketing of all District indebtedness, District staff shall make recommendations for approval by the Board on the retention of bond counsel. Bond counsel will prepare the necessary authorizing resolutions, agreements and other documents necessary to execute the financing. All debt issued by the District will include a written opinion by bond counsel affirming that the District is authorized to issue the debt, stating that the District has met all state constitutional and statutory requirements necessary for issuance, and determining the debt's federal income tax status. 19.6.18 Financial Advisors The District will select financial advisors who may either be independent financial advisors or firms who engage in municipal bond underwriting or brokerage services. While serving as the District’s financial advisor, a firm may not also engage in the underwriting of the District’s debt issuance for which that firm also acts as financial advisor. A firm may also not switch roles (i.e., from financial advisor to underwriter) after a financial transaction has begun. Financial advisors shall be selected through a competitive process after a review of proposals by District staff.


During the contract term of any party acting as financial advisor, neither the firm nor any individual employed by that firm will perform financial advisory, investment banking or similar services for any entity other than the District in transactions involving a financial commitment of the District without the specific direction of District staff. The financial advisor will advise the District on refunding opportunities for current outstanding debt, as well as assist in evaluating the merits of competitive, negotiated or private placement of new debt, and determining the most appropriate structure to ensure effective pricing that meets the District’s near-term and long term cash flow needs. The financial advisor will work with all parties involved in the financing transaction, including the District’s bond counsel, trustee, underwriters, credit liquidity providers, to develop and monitor the financing schedule and preparation of the Official Statement. The financial advisor will assist the District in developing and distributing bid specifications for desired services as, trustee and paying agents, printing, remarketing and credit liquidity service providers, and assist the District in its review process. The District also expects its financial advisor to provide objective advice and analysis, maintain confidentiality of the District’s financial plans, and be free from any conflict of interest. 19.5.19 Underwriters For negotiated sales, the District will generally select or pre-qualify underwriters through a competitive process. This process may include a request for proposal or qualifications to all firms considered appropriate for the underwriting of a particular issue or type of bonds. District staff will determine the appropriate method to evaluate the underwriter submittals and then select or qualify firms on that basis. The District will not be bound by the terms and conditions of any underwriting agreement, oral or written, to which it was not a party. 19.5.20 Federal Arbitrage and Rebate Compliance

The District will fully comply with federal arbitrage and rebate regulations. Concurrent with this policy, District staff will take all permitted steps to minimize any rebate liability through proactive management in the structuring and oversight of its individual debt issues. All of the District’s tax-exempt issuances are subject to arbitrage compliance regulations. The District’s Finance Department shall be responsible for the following:

I. Monitoring the expenditure of bond proceeds to ensure they are used only for the purpose and authority for which the bonds were issued and exercising best efforts to spend bond proceeds in such a manner that the District shall meet one of the spend-down exemptions from arbitrage rebate. Tax-exempt bonds will not be issued unless it can be demonstrated that 85% of the proceeds will be expended within the three-year temporary period.

II. Monitoring the investment of bond proceeds with awareness of rules pertaining to yield

restrictions. Maintaining detailed investment records, including purchase prices, sale prices and comparable market prices for all securities.

III. Contracting the services of outside arbitrage consultants to establish and maintain a system of record keeping and reporting to meet the arbitrage rebate compliance requirements of federal tax code.


To the extent any arbitrage rebate liability exists, the District will report such liability in its annual Comprehensive Annual Financial Report (CAFR). 19.5.21 Continuing Disclosure The District will meet secondary disclosure requirements in a timely and comprehensive manner, as stipulated by the Securities Exchange Commission (SEC) Rule 15c2-12 and consistent with the District’s Standard Operating Procedure for Compliance with Security Exchange Commission Rule 15c2-12 (Exhibit B). The Director of Finance shall be responsible for providing ongoing disclosure information to the Municipal Securities Rulemaking Board’s (MSRB’s) Electronic Municipal Market Access (EMMA) system, the central depository designated by the SEC for ongoing disclosures by municipal issuers. The District will provide financial information and operating data annually, no later than 270 days following the end of the District’s fiscal year, and will provide notice of certain enumerated events with respect to the bonds, if material, as defined in the District’s bond covenants. The District will keep current with any changes to the administrative aspects of its filing requirements and the national repositories responsible for ensuring issuer compliance with the continuing disclosure regulations. In the event of a “material event” requiring immediate disclosure, the District will work with its Dissemination Agent to ensure dissemination of the information to the appropriate disclosure notification parties. 19.5.22 Compliance with Bond Covenants In addition to financial disclosure and arbitrage compliance, once the bonds are issued, the District is responsible for verifying compliance with all undertakings, covenants, and agreements of each bond issuance on an ongoing basis. This typically includes ensuring: Annual appropriation of revenues to meet debt service payments Timely transfer of debt service payments to the trustee or paying agent Compliance with insurance requirements Compliance with rate covenants where applicable Compliance with all other bond covenants

On an annual basis, the Finance Department will prepare all required debt-related schedules and footnotes for inclusion in the District’s Annual Financial Statements. The statements shall describe in detail all funds and fund balances established as part of any direct debt financing of the District. The statements may also contain a section on any rate covenants contained in any direct offering of the District and whether or not such covenants have been satisfied.

19.5.23 Policy Review On an as needed based, the Director of Finance will be responsible for updating and revising this Policy, and present any recommended revisions to the Board’s Finance and Administrative Services Committee prior to requesting adoption by the full Board.


APPENDIX A PADRE DAM MUNICIPAL WATER DISTRICT

TYPES OF AUTHORIZED DEBT

The following types of debt may be utilized by Padre Dam Municipal Water District: Certificates of Participation / Revenue Bonds Certificates of Participation (COPs) or revenue bonds issued by the District are long-term obligations issued to fund a specific project or purpose. The District will generally issue COPs or revenue bonds on a fixed interest rate basis, wherein at the time of the bond sale all interest rates are known and do not change while those bonds are outstanding. Particular conditions may arise where the District would consider the use of variable interest rate bonds. Variable interest rate bonds have interest rates that reset on a periodic basis (e.g. daily, weekly, monthly, etc.). Revenue bonds and COPs are payable solely from District revenues in accordance with the agreed upon bond covenants. Short Term Debt Pending the issuance of bonds the Board may authorize the issue of short term debt. Short-term borrowing may be utilized for the temporary funding of operational cash flow deficits or anticipated revenues, where anticipated revenues are defined as an assured revenue source with the anticipated amount based on conservative estimates. District staff will determine and utilize the least costly method for short-term borrowing. Short-term debt may include commercial paper, fixed-rate notes and floating rate obligations with a maturity of 13 months or less. Letters of Credit The District shall have the authority to enter into a letter-of-credit agreement when such an agreement is deemed prudent and advantageous. Only those financial institutions with long-term or short-term credit ratings greater than or equal to that of the District, may participate in the District’s letter of credit agreements. State Revolving Funds The State Revolving Fund (SRF) loan is a low or zero interest loan program made available for specific construction projects. SRF loans are generally structured such that the District is required to contribute a percentage of the total project cost and receives loan proceeds from the State of California for the balance. The SRF loan interest rate is calculated by taking half of the True Interest Cost (TIC) of the most recent sale of State General Obligation Bonds. The term of the loans can be 20 or, if applicable, an extended financing term of 30 years. SRF Loans may provide additional assistance in the form of principal forgiveness. Principal forgiveness must be specified at the execution of the loan agreement for the amount forgiven to be counted against the total loan required to be provided by the SRF.


Water Infrastructure Finance and Innovation Act (WIFIA) The Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) established the WIFIA program, a federal credit program administered by EPA for eligible water and wastewater infrastructure projects. The WIFIA program can fund development and implementation activities for eligible projects, including wastewater conveyance and treatment projects that are eligible for the Clean Water SRF; drinking water treatment and distribution projects that are eligible for the Drinking Water SRF; enhanced energy efficiency projects at drinking water and wastewater facilities; brackish or seawater desalination, aquifer recharge, alternative water supply, and water recycling projects; drought prevention, reduction, or mitigation projects; acquisition of property if it is integral to the project or will mitigate the environmental impact of a project. The minimum project size is $20 million and a WIFIA loan can fund up to 49% of an eligible project cost with a maximum final maturity date of 35 years after the date of substantial project completion. Variable Rate Debt Variable rate debt is an alternative to fixed rate debt. It may be appropriate to issue short-term or long-term variable rate debt to diversify the District’s debt portfolio, reduce interest costs, provide interim funding for capital projects and improve the match of assets to liabilities. Variable rate debt typically has a lower cost of borrowing than fixed rate financing and shorter maturities. The District may consider variable rate debt when fiscally prudent. The District will maintain a conservative level of outstanding variable debt in consideration of general rating agency guidelines in addition to maintaining adequate safeguards against risk and managing the variable revenue stream. Under no circumstances will the District issue variable rate debt solely for the purpose of earning arbitrage.


19.6 DISCLOSURE POLICY

19.6.1 Purpose of Policy This Disclosure Policy is intended to ensure that the District is in compliance with all applicable federal and state securities laws. Although not required by law, the SEC encourages municipal issuers to adopt such a policy to help avoid disclosure problems. The District’s Board of Directors (Board) shall approve this policy. The Director of Finance shall serve as Disclosure Coordinator for the District and is responsible for ensuring adherence to this policy.

19.6.2 Review and Approval of Official Statements

The Disclosure Coordinator of the District shall review any Official Statement prepared in connection with any debt issuance by the District in order to ensure there are no misstatements or omissions of material information in any sections that contain descriptions of information prepared by the District.

In connection with its review of the Official Statement, the Disclosure Coordinator shall consult with third parties, including outside professionals assisting the District, and all members of District staff, to the extent that the Disclosure Coordinator concludes they should be consulted so that the Official Statement will include all “material” information (as defined for purposes of federal securities law).

As part of the review process, the Disclosure Coordinator shall submit all Official Statements to the Board for approval. The cover letter used by the Disclosure Coordinator to submit the Official Statements shall be in substantially the form of Exhibit A.

The approval of an Official Statement by the Board shall be agendized as a new business matter and shall not be approved as a consent item. The Board shall undertake such review as deemed necessary by the Board, following consultation with the Disclosure Coordinator, to fulfill the Board’s responsibilities under applicable federal and state securities laws. In this regard, the Disclosure Coordinator shall consult with the District’s disclosure counsel to the extent the Disclosure Coordinator considers appropriate.

19.6.3 Continuing Disclosure Filings

Under the continuing disclosure undertakings that the District has entered into in connection with its debt offerings, the District is required each year to file annual reports with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access (“EMMA”) system in accordance with such undertakings. Such annual reports are required to include certain updated financial and operating information, and the District’s audited financial statements. The District is also required under its continuing disclosure undertakings to file notices of certain events with EMMA.

The Disclosure Coordinator is responsible for establishing a system (which may involve the retention of one or more consultants) by which:

(i) the District will make the annual filings required by its continuing disclosure undertakings on a complete and timely basis, and

(ii) the District will file notices of enumerated events on a timely basis.


19.6.4 Public Statements Regarding Financial Information

Whenever the District makes statements or releases information relating to its finances to the public that are reasonably expected to reach investors and the trading markets, the District is obligated to ensure that such statements and information are complete, true, and accurate in all material respects.

19.6.5 Training

The Disclosure Coordinator shall ensure that the members of the District staff involved in the initial or continuing disclosure process and the Board are properly trained to understand and perform their responsibilities.

The Disclosure Coordinator shall arrange for disclosure training sessions conducted by the District’s disclosure counsel. Such training sessions shall include education on these Disclosure Procedures, the District’s disclosure obligations under applicable federal and state securities laws and the disclosure responsibilities and potential liabilities of members of the District’s staff and members of the Board. Such training sessions may be conducted using a recorded presentation.


EXHIBIT A Form of Staff Report

To: Padre Dam Board of Directors From: Date:

This Staff Report relates to the proposed issuance of ______ (the “Obligations”) by the District. The Board of Directors (Board) is asked to approve issuance of the Obligations and all related documents. The near-final versions of these documents are attached.

The attached Preliminary Official Statement has been reviewed and approved for transmittal to the Board by the District’s financing team. The distribution of the Preliminary Official Statement by the District is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require the Preliminary Official Statement to include all facts that would be material to an investor in the Obligations. Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell the Obligations. If the Board concludes that the Preliminary Official Statement includes all facts that would be material to an investor in the Obligations, it must adopt a resolution that authorizes staff to execute a certificate to the effect that the Preliminary Official Statement has been “deemed final.”

The Securities and Exchange Commission (the “SEC”), the agency with regulatory authority over the District’s compliance with the federal securities laws, has issued guidance as to the duties of the Board with respect to its approval of the Preliminary Official Statement. In its “Report of Investigation in the Matter of County of Orange, California as it Relates to the Conduct of the Members of the Board of Supervisors” (Release No. 36761 / January 24, 1996) (the “Release”), the SEC indicated that, if a member of the City Council (Board) has knowledge of any facts or circumstances that an investor would want to know about prior to investing in the Obligations, whether relating to their repayment, tax-exempt status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such facts are adequately disclosed in the Preliminary Official Statement. In the Release, the SEC indicated that the steps that a member of the City Council (Board) could take include becoming familiar with the Preliminary Official Statement and questioning staff and consultants about the disclosure of such facts.

Set forth below is a summary of the financing, including cross-references to specific sections of the Preliminary Official Statement.

Section 1. Purpose of Financing.

Section 2. Documents for Approval; Security for the Obligations.

Section 3. Risks Relating to Repayment and Tax-Exempt Status of the Obligations.

Section 4. Requested Approvals.


List of Ordinance amending Section 19: 95-8 adopted 09/26/95 95-18 adopted 12/12/95, Section 19.1.3, Unrestricted Cash Funds 97-4 adopted 04/08/97 97-8 Replaces Ord. No. 97-4, adopted 07/22/97, Section 19.1.3, Unrestricted Cash Funds; Section

19.4, Investment Policy; Section 19.4 Investment Policy; Section 19.4.3, Objectives; Section 19.4.4, Delegation of Authority; Section 19.4.5, Finance Committee; Section 19.4.6, Reporting; Section 19.4.7, Authorized Investment Instruments; Section 19.4.8, Ineligible Investments; Section 19.4.9, Swaps; Section 19.4.10, Loss of value or Credit Quality; Section 19.4.11, Approved Broker/Dealer List; Section 19.4.12, Risk Tolerance

98-11 adopted 11/ 24/98, Section 19.4, Investment Policy; Section 19.4.7, Authorized Investment

Instruments 99-09 adopted 11/23/99, Section 19.1, Fund Structure; Section 19.2, District Cost Allocation and Billing Rates;

Section 19.3, Subventions; Section 19.4, Investment Policy; Section 19.4.7, Authorized Investment Instruments

2000-14 adopted 12/19/00, Section 19.4, Investment Policy; Section 19.4.3, Objectives; Section 19.4.7,

Authorized Investment Instruments 2002-01 adopted 01/08/02, Section 19.4, Investment Policy; Section 19.4.7, Authorized Investment

Instruments. 2003 Reviewed by PFM on 12/4/02; no revisions recommended. Note and File to Board on 01/14/03. 2004-01 adopted 01/13/04, amending Sections 19.4.3, 19.4.4, 19.4.5 and 19.4.7. 2004-08 adopted 12/14/04 amending Section 19.4.7, effective 1/13/05. 2005-08 adopted 12/13/05, effective 1/1/06. 2008-02 adopted 2/12/08, effective 3/13/08 2011-04 adopted 6/14/11, amending Section 19.4, effective 6/15/11 2013-08 adopted 12/18/13, rewrite of Section 19 2014-06 adopted 12/3/14, annual review amending various sections 2015-01 adopted 1/21/15, amending Section 19.1.3, Designated Cash Funds 2016-03 adopted 2/3/16, annual review amending various sections 2017-02 adopted 4/19/17, annual review amending Section 19.1.3, Designated Cash Funds; 19.4, Investment

Policy; and adding Sections 19.5 and 19.6, Debt and Disclosure Policies 2020-02 adopted 2/5/20, annual review with minor edits to various sections. 2021-02 Adopted 4/21/21, amending Section 19.1.3, establishing a new Designated CIP Fund.

SECTION 20 CODE OF ETHICS and ETHICAL BEHAVIOR

INDEX Page

20.1 INTRODUCTION ................................................................................................................................ 4

20.2 ETHICS AND ATTITUDE ..................................................................................................................... 4

20.3 BEHAVIOR IN THE WORKPLACE .................................................................................................. 4

20.3.1 Introduction ................................................................................................................................ 4

20.3.2 Equal Employment Opportunity Policy ......................................................................................... 5

20.3.3 Anti-Harassment, Hostile Work Environment Policy ...................................................................... 5

20.3.4 Workplace Violence Prevention Policy.......................................................................................... 5

20.3.6 Employee Conduct ...................................................................................................................... 5

20.3.7 Safety in the Workplace ............................................................................................................... 6

20.4 RESPONSIBILITY FOR ETHICAL BEHAVIOR ....................................................................................... 6

20.4.1 Leadership Responsibility ............................................................................................................. 6

20.4.2 Individual Responsibility .............................................................................................................. 6

20.4.3 Ethics Review Board .................................................................................................................... 7

20.4.4 Whistle Blower Provision ............................................................................................................. 7

20.4.5 Required Training ........................................................................................................................ 8

20.5 CONFLICT OF INTEREST ................................................................................................................ 8

20.5.1 Introduction ................................................................................................................................ 8

20.5.2 Actual vs. Perceived ..................................................................................................................... 8

20.5.3 Salary and/or Benefits Negotiations ............................................................................................. 9

20.5.4 Fair and Equitable Treatment of Subordinates .............................................................................. 9

20.5.5 Board of Directors ....................................................................................................................... 9

20.5.6 Legal Counsel .............................................................................................................................. 9

20.5.7 Personal Financial Interests.......................................................................................................... 9

20.5.8 Personal Advantage and Perks ..................................................................................................... 9

20.5.9 Transparency and Fairness in Conducting the Business of the Public ........................................... 10

20.5.10 Gifts, Gratuities, and Favors ...................................................................................................... 10

20.5.11 Disclosure ................................................................................................................................. 10

20.6 USE OF PADRE DAM EMPLOYMENT, FACILITIES AND OTHER RESOURCES ..................................... 10

20.6.1 Introduction .............................................................................................................................. 10

20.6.2 Board of Directors ..................................................................................................................... 10

20.6.3 Management ............................................................................................................................ 10

20.6.4 Use of Padre Dam Facilities and Other Resources ....................................................................... 11

20.7 CAMPAIGNS ................................................................................................................................... 11

20.7.1 Introduction .............................................................................................................................. 11

20.7.2 Board Members ........................................................................................................................ 11

20.7.3 Padre Dam Managers ................................................................................................................ 12

20.8 REPRESENTATION OF PADRE DAM POSITION ............................................................................... 12

20.8.1 Introduction .............................................................................................................................. 12

20.8.2 Use of Job Title .......................................................................................................................... 12

20.8.3 Use of Padre Dam Logo and Identity .......................................................................................... 12

20.9 OUTSIDE EMPLOYMENT ................................................................................................................ 13

20.9.1 Introduction .............................................................................................................................. 13

20.9.2 Policy ........................................................................................................................................ 13

20.10 CONFIDENTIAL INFORMATION ....................................................................................................... 13

20.10.1 Introduction .............................................................................................................................. 13

20.10.2 Customer Lists .......................................................................................................................... 13

20.10.3 Employee Lists .......................................................................................................................... 14

20.10.4 Vendor Lists .............................................................................................................................. 14

20.10.5 Privileged Matters ..................................................................................................................... 14

20.10.6 Personnel Evaluations ............................................................................................................... 14

20.10.7 Personnel Discipline .................................................................................................................. 14

20.11 BOARD OF DIRECTORS COMPENSATION AND AUTHORIZATION .................................................. 14

20.11.1 Introduction.............................................................................................................................. 14

20.12 ROLE OF BOARD OF DIRECTORS ..................................................................................................... 14

20.12.1 Introduction.............................................................................................................................. 14

20.12.2 Policy ........................................................................................................................................ 14

20.13 ROLE OF ALL MANAGERS ............................................................................................................... 15

20.13.1 Introduction .............................................................................................................................. 15

20.13.2 Policy ........................................................................................................................................ 15

20.14 ROLE OF EMPLOYEES ..................................................................................................................... 16

20.14.1 Introduction.............................................................................................................................. 16

20.14.2 Policy ........................................................................................................................................ 16

20.15 INTERNAL CONTROLS ..................................................................................................................... 16

20.15.1 Introduction .............................................................................................................................. 16

20.15.2 Investment Policy and Procedures ............................................................................................. 17

20.15.3 Sale and Disposal of Padre Dam Assets ...................................................................................... 17

20.15.4 Park Operations ........................................................................................................................ 17

20.16 MEETINGS AND CONFERENCES: EMPLOYEE TRAVEL AND EXPENSE GUIDELINES ........................ 17

20.16.1 Introduction.............................................................................................................................. 17

20.16.2 Meetings and Conferences ........................................................................................................ 18

20.16.3 Philanthropic and Community Organizations .............................................................................. 18

20.17 PADRE DAM CREDIT CARDS ........................................................................................................... 18

20.17.1 Introduction.............................................................................................................................. 18

20.17.2 Policy ........................................................................................................................................ 18

20.18 VEHICLE USAGE .............................................................................................................................. 18

20.18.1 Padre Dam Vehicle Commuter Use ............................................................................................ 18

20.18.2 After-Hour Duty Personnel and Policy Statement ....................................................................... 18

20.18.3 Padre Dam Vehicles and Personal Vehicles for Padre Dam Business ............................................ 19

20.19 COMPUTER USAGE ........................................................................................................................ 19

20.19.1 Introduction.............................................................................................................................. 19

20.19.2 Policy ........................................................................................................................................ 19


SECTION 20 CODE OF ETHICS and ETHICAL BEHAVIOR

20.1 INTRODUCTION A. Padre Dam Vision Statement

We set the standard for delivering exceptional value and service in providing important life necessities for our customers and community.

B. Padre Dam Mission Statement

The mission of Padre Dam is to provide quality water, recycled water, park and recreational facilities, and wastewater management services for our customers. We accomplish this mission in the most cost-effective manner possible while earning customer and community respect.

C. Definition of Ethics:

1. The discipline dealing with what is good and bad and with moral duty and obligation. 2. A set of moral principles and values. 3. A theory or system of moral values. 4. The principles of conduct governing an individual or a group.

20.2 ETHICS AND ATTITUDE A. Why a Code of Ethics

We expect ethical behavior of the workforce at Padre Dam. Our customers, stakeholders and community expect it, as well.

At Padre Dam we raise our level of accessibility, transparency and accountability in order to earn and retain the trust of our customers, our stakeholders and the community. While Padre Dam's values-based employee culture drives our commitment to customer service and value, the foundation on which our organization is built is the trust of our customers.

Our Code of Ethics is not just a set of rules for specific circumstances and it is not limited to legal requirements. This Code is also about principles, morals and state of mind. We expect our employees, temporary workers, supervisors, managers, Board members, consultants and contractors to read this Code, understand its importance, and apply its principles -- to their words, actions and decisions.

20.3 BEHAVIOR IN THE WORKPLACE

20.3.1 Introduction Padre Dam employees are expected to exhibit ethical behaviors in the workplace and Padre Dam is committed to a workplace that is free from harassment, discrimination and retaliation. We believe all employees, temporary workers, supervisors, managers, Board members, consultants and contractors are to be treated with respect. The Code of Values – Trust, Integrity, Competence, Accountability and Service – adopted by the District, is the cornerstone of our Pipeline philosophy and the foundation for


this section. All of the following policies are directly related to ethical behavior in the workplace and disciplinary action may be taken against anyone violating any of these policies. Conflicts are bound to arise in the workplace. However, conflicts are to be dealt with in a manner to resolve issues, not to exacerbate them. When a conflict arises, the individuals attempt to resolve it in a meaningful way. Individuals witnessing this type of behavior are to immediately discuss the conflict with the offender(s) with the goal being to resolve the situation. If employees do not feel comfortable discussing the matter with the offender, they are encouraged to seek the assistance of their supervisor, department head, employee association representative or Human Resources. Except in areas of abuse or harassment, the employee should always first try to address the other party.

20.3.2 Equal Employment Opportunity Policy Padre Dam recruits, hires and promotes all job classifications without regard to race, religion, creed, color, national origin, ancestry, sex, sexual orientation, gender, marital status, pregnancy, physical or mental disability, medical condition, age or any other category protected under applicable law. The same policy applies to transfers, promotions, compensation, benefits, Padre Dam sponsored training, education, social and recreational programs and for all layoff and return-from-layoff policies. Further details of this policy can be found in Section 16, "Equal Employment Opportunity Program."

20.3.3 Anti-Harassment, Hostile Work Environment Policy It is the policy of Padre Dam that all employees have a right to work in an environment free from discrimination based on race, religion, creed, color, national origin, ancestry, sex, sexual orientation, gender, marital status, pregnancy, physical or mental disability, medical condition, age or any other category protected under applicable law. Employees are entitled to a work environment free from all forms of harassment. Further details of this policy can be found in Section 16, "Equal Employment Opportunity Program."

20.3.4 Workplace Violence Prevention Policy Padre Dam is committed to providing its employees with a work environment that is safe and secure. Consistent with this policy, Padre Dam will work with employees to maintain a workplace free from threats or acts of physical violence, including intimidation, harassment, coercion or other disruptive behavior. For further details, see Section 13.2, "Workplace Violence Prevention." 20.3.5 Drug-Free Workplace Policy Padre Dam maintains a strict policy against being under the influence of, possession of, or the use of unlawful drugs or alcohol while on duty, while on Padre Dam premises and while operating a Padre Dam vehicle. In addition, Padre Dam participates in the U.S. Department of Transportation (DOT) program prohibiting certain conduct and requiring specific testing for alcohol and controlled substances on "safety sensitive" employees. Both policies are detailed in Section 11.26, "Substance Abuse Testing Policy" and 11.27, "Drug and Alcohol Policy Pursuant to Department of Transportation Regulations."

20.3.6 Employee Conduct Padre Dam has also outlined specific expectations for employees that can be found in Section 11.6, "Employees Conduct."


20.3.7 Safety in the Workplace Padre Dam is committed to a safe work environment for our employees. A safety program has been developed for employees based on the area where they work. Further details of the safety program can be found in Sections 11.15, "Safety," and 13, "Employee Safety," together with the Injury/Illness Prevention Program designed for each work area.

20.4 RESPONSIBILITY FOR ETHICAL BEHAVIOR Ethical behavior is the responsibility of everyone. The Padre Dam Board of Directors, Management Team, Basin oversight committee and all employees are responsible for promoting a work environment that fosters legal compliance, ethical behavior, and a high standard of moral conduct.

Our values and principles support applicable laws and regulations and are the foundation for our Pipeline philosophy and culture. Padre Dam leadership must act as role models for these values and principles.

20.4.1 Leadership Responsibility Padre Dam's leadership is responsible for adhering to this Ethics Policy and for holding all employees and organizational partners (consultants, vendors, etc.), accountable for adherence.

A. How is this done? 1. Creating this Ethics Policy and enforcing it. 2. Creating an Ethics Review Board. 3. Training in ethical behavior and policy compliance. 4. Monitoring compliance

5. Reporting policy compliance and policy breaches annually to the Board of Directors.

B. How do we measure and track results?

The Ethics Review Board reviews reported ethical breaches and recommends policy improvements, and reports periodically to the General Manager.

20.4.2 Individual Responsibility

A. Board of Directors: The Board of Directors are individually and collectively responsible for adherence to this Ethics Policy.

Enforcement: A perceived violation of this policy by a Board member should be referred to the full Board of Directors for investigation and consideration of appropriate action, if warranted. The Board may utilize the General Counsel or outside counsel to assist with Board member conduct as it deems appropriate. The Board may impose sanctions, including public censure, on a Board member who violates the Ethics Policy.

B. General Manager: The General Manager is individually responsible for adherence to this Ethics

Policy.

Enforcement: The General Manager serves at the pleasure of the Board of Directors who shall monitor the General Manager's personal adherence to this policy.


C. Management: The Management Team, Mid-Management, Supervisors, and Leads are individually responsible for adherence to this Ethics Policy. The General Manager, with the assistance of the Department Heads, shall monitor and enforce compliance.

D. All Employees: All Padre Dam employees are responsible for adherence to this Ethics Policy. The

General Manager, with the assistance of the Department Heads, shall monitor and enforce compliance.

20.4.3 Ethics Review Board An Employee Ethics Review Board is hereby created for the purpose of monitoring employee compliance with Padre Dam's Ethics Policy. This body does not evaluate the Board of Directors who are subject to the provisions of Section 20.4.2(A).

A. The Ethics Review Board will be formed as a Lateral of the Pipeline and shall function as a Hearing

Board to evaluate and resolve ethical issues. The Ethics Review Board will be comprised of the Director of Human Resources and four to six other employees. Employees will serve two-year staggered terms on the Ethics Review Board with at least two to three new members joining the board every year depending on the total number of members as determined by the Basin.

B. The Ethics Review Board shall elect a Chair to serve a one-year term. This Chair will prepare the agenda and lead the meetings.

C. The responsibilities of the Ethics Review Board shall include, but shall not be limited to,

monitoring compliance, conducting training in ethical behavior and policy compliance; reporting policy compliance and policy breaches as needed to the General Manager; and proposing improvements to the Ethics Policy.

D. Any person can refer an issue to the Ethics Review Board without fear of reprisal. However,

because there may be the necessity to question the issue being referred and to follow up on the issue, no anonymous referrals will be accepted.

E. The Ethics Review Board shall make a determination on all issues referred to it.

Determinations which may result in disciplinary action shall be referred to the General Manager and the Director of Human Resources.

F. If the Ethics Review Board is in discussions about a particular issue and the end of term

approaches, Ethics Review Board Members will remain on the board until the issue at hand is resolved.

20.4.4 Whistle Blower Provision

All existing provisions of Padre Dam's Whistle Blower Policy, Section 11.30, and applicable laws are herein incorporated by reference. Employees are encouraged and expected to report violations of the Ethics Policy to the Ethics Review Board, including but not limited to the following:

• Financial Statement falsification • Records falsification • Theft • Embezzlement • Misappropriation of Padre Dam funds or property


• Employee abuse • Customer abuse • Any other ethics violation

20.4.5 Required Training A. Employees:

1. Within one year of the first day of service each Padre Dam employee shall receive mandatory ethics training. Ethics training for Padre Dam employees may be different from that required of elected Board members as dictated by Government Code 53234, et seq. Thereafter, each employee shall receive mandatory ethics training at least once every two years.

2. Documentation of said training will be kept on file in Human Resources for at least five years following the training.

B. Board of Directors:

1. Within one year of the first day of service each elected official shall receive at least two hours of mandatory ethics training compliant with the requirement Government Code 53234 et seq., as it may be amended from time to time. Thereafter, each elected official shall receive a minimum of two hours of ethics training at least once every two years.

2. Documentation of said training will be kept on file with the Board Secretary for at least

five years following the training.

20.5 CONFLICT OF INTEREST

20.5.1 Introduction The Political Reform Act (Act) requires Padre Dam to adopt and maintain a Conflict of Interest Code (Code). Padre Dam's Code designates positions that are required to annually file a Statement of Economic Interest, Form 700, and assigns disclosure categories specifying the types of interests to be reported. The Code is a separate document from the Code of Ethics Policy in that it is required by law and must be approved biennially by Padre Dam's Code Reviewing Body, the San Diego County Board of Supervisors. Therefore, in addition to complying with the Code of Ethics Policy, employees whose positions are identified in Appendix A of Padre Dam's Conflict of Interest Code must also comply with those provisions as well. "Officials who Manage Public Investments," such as members of the Board of Directors, the General Manager, the Director of Finance and financial consultants, are not subject to Padre Dam's Code, but are subject to broader disclosure and disqualification requirements of the Act as well as compliance with the Ethics Policy.

20.5.2 Actual vs. Perceived Padre Dam employees, managers and Board members are responsible for both the actual and perceived conflicts of interest that may arise as a result of their actions. It is the responsibility of each to avoid such actual or perceived conflict of interests.


20.5.3 Salary and/or Benefits Negotiations

Even though no legal conflict of interest is created by doing so, as a matter of ethical principles, a manager, who would otherwise benefit, either in a direct or potentially indirect manner, from salary and/or benefits negotiations may not negotiate on behalf of the Board of Directors. The exception to this is the Director of Human Resources & Administrative Services and the General Manager who can act as advisors and/or negotiators for the Board.

20.5.4 Fair and Equitable Treatment of Subordinates A manager or supervisor shall not create either an appearance of or actual conflict of interest in carrying out the responsibility of their duties as a supervisor. The responsibility for avoiding an appearance of conflict rests with the manager or supervisor. That would include managers applying even casual pressure on an employee to comply with a request(s) for personal favors not otherwise consistent with the employee's job function. When in doubt, the issue may be referred to the Ethics Review Board for an advance ruling of the question.

20.5.5 Board of Directors

The Board of Directors shall comply with all existing laws regarding voting and discussing issues which are identified within the definitions of current law as conflicts and/or interests in contracts. In addition, they shall perform their policy functions through the established Board and Committee structure.

20.5.6 Legal Counsel Padre Dam's Legal Counsel shall provide legal advice and input in accordance with the California Rules of Professional Conduct, the California State Bar Act (Bus. and Prof. Code section 6000 et seq.) and other applicable laws. Personal opinion on operational or policy issues will be left to the Board of Directors and Management except where legal ramifications may exist. Legal Counsel shall comply with all applicable laws, rules, and regulations regarding the representation of clients, including rules related to representation of adverse interests. Separate outside legal counsel shall be retained when considered necessary. 20.5.7 Personal Financial Interests Board Members and employees shall not in any way use or attempt to use his/her official position to influence any governmental decision which he/she knows will have a reasonably foreseeable material financial effect on one or more of his/her economic interests or the economic interests of his/her spouse or dependent children.

20.5.8 Personal Advantage and Perks No Board member or employee shall receive any advantages over those which would otherwise be available to the general public except for those expressly granted by the Board of Directors in accordance with law, such as Park entry privileges.


20.5.9 Transparency and Fairness in Conducting the Business of the Public The Board, management and employees will conduct business in an open manner, within the spirit and intent of the Brown Act. Further details on this policy can be found in Section 14, “District Administration Policy.” Reasonable requests by the public for information will be responded to in a courteous and thoughtful manner and in compliance with the provisions of Public Records Act, and other State law, as applicable. Complex issues will be referred to the General Manager and Department Heads as considered necessary. Further details of this policy can be found in Section 15, "Public Records Policy."

20.5.10 Gifts, Gratuities, and Favors

Board members and employees shall not accept or solicit gifts, gratuities, or favors of any kind that might reasonably be interpreted as an attempt to influence their actions with respect to Padre Dam business. Board members and other public officials are further required to comply with the restrictions on gifts set forth in the Political Reform Act, its guidelines and other applicable laws.

20.5.11 Disclosure

All employees who are in a position to influence selection of a vendor or consultant shall immediately disclose the nature and extent of any material interest, direct or indirect, that may conflict with their responsibilities or duties, or may influence a decision which would benefit an organization or business in which the employee has a direct material interest. Disclosure shall be made as soon as possible, but in all cases, prior to negotiation with and selection of a vendor or consultant and the employee must not participate in the negotiation with or selection of the vendor or consultant. This does not include incidental ownership of stock of a widely held company. Such disclosure shall be made to the employee's Department Head and/or General Manager. All employees are further required to comply with the requirements of Government Code section 1090, and following, the Political Reform Act, its guidelines and other applicable laws.

20.6 USE OF PADRE DAM EMPLOYMENT, FACILITIES AND OTHER RESOURCES

20.6.1 Introduction An employee or Board member shall conduct the business of Padre Dam consistent with the job description for their position and shall not use undue influence to pressure others for personal favors unrelated to the operations of Padre Dam. The assets of Padre Dam are for use by assigned users for the benefit of Padre Dam business.

20.6.2 Board of Directors

Members of the Board of Directors shall not use their position to pressure any employee to provide favors for the personal gain of the Board member.

20.6.3 Management Members of Management shall not use their position to pressure any employee to provide favors for personal gain of the manager.


20.6.4 Use of Padre Dam Facilities and Other Resources Padre Dam facilities, such as vehicles, offices, furniture, conference rooms, copiers and computers are purchased for Padre Dam business. Personal use of Padre Dam facilities is prohibited with some exceptions as noted below. A. Computer Usage

As allowed within the Computer Systems Policy (see Section 11.28.4), personal use of Padre Dam's information systems is acceptable as long as it is not excessive or inappropriate, occurs during personal time (lunch or breaks), does not disrupt the normal operation of the district, and does not result in expense or liability to Padre Dam or violate any of the limitations contained within this policy. Use is defined as "excessive" if it interferes with normal job functions, responsiveness, or the ability to perform daily job activities.

B. Padre Dam Offices One-time use of Padre Dam offices or conference rooms for a gathering may be allowed for personal use by an employee if approved by a Department Head or General Manager. Such a gathering must be consistent with Padre Dam business and policies regarding the use of District facilities. Such activity may not otherwise compete with a Padre Dam use and cannot create any additional expense for the District. The facility is to be cleaned and returned to its original state by the user.

C. Cell Phones Padre Dam owns or leases cellular phones and air cards that are issued to certain employees

who can demonstrate a routine business need. The individual Department Head and Director of Finance (or their designees) are authorized to issue such equipment. The equipment is to be used for Padre Dam business. Employees have the option to use Padre Dam's cell phone for incidental personal use, which is brief in nature, by paying a flat usage fee through payroll withholding to compensate Padre Dam for this personal use. Refer to Section 11.29.2 for detailed policy.

20.7 CAMPAIGNS

20.7.1 Introduction Employees will not be pressured to support any candidate seeking election as a Padre Dam Board of Director. Employees may support candidates of their choosing without fear of reprisal from existing or future Board members or management. Any such support time must be conducted on personal time away from Padre Dam's premises.

20.7.2 Board Members A. No Padre Dam Board member shall use his/her position to pressure any employee to support

any particular candidate seeking election for a seat on the Padre Dam Board of Directors. This policy does not otherwise restrict any employee or Board member from exercising their fundamental constitutional rights to support any candidate of their choosing during personal time.

B. As related to personal and political issues, no Padre Dam Board member shall use his/her

position to pressure employees to take the side of a given Board member over that of another Board member or candidate running for the Board.


C. Board members shall comply with the provisions of the Political Reform Act regarding campaign

requirements, disclosures and disqualifications.

20.7.3 Padre Dam Managers A. No Padre Dam Manager shall use his/her position to pressure other employees to support any

particular candidate for the Padre Dam Board of Directors. This policy does not otherwise restrict any employee or Board member from exercising their fundamental constitutional rights to support any candidate of their choosing during personal time.

20.8 REPRESENTATION OF PADRE DAM POSITION

20.8.1 Introduction Board members and employees should never use Padre Dam's name, reputation or property for personal gain or for purposes inconsistent with Padre Dam's mission. Personal opinions and positions should be disclosed as not necessarily representing an official position of the Board or Padre Dam.

20.8.2 Use of Job Title A. Board of Directors: While Board members may communicate their personal position on any

issue, they may not represent their personal position as the position of Padre Dam unless a Board majority has voted in favor of that position.

B. General Manager: The General Manager (or designee) will act as the official spokesperson

responsible for representing Padre Dam's position to customers, the public and the media. The General Manager may not present a position contrary to the Board position, unless describing it as such.

C. Employees: All Padre Dam employees are ambassadors of Padre Dam and are responsible for

representing an accurate position of Padre Dam to news agencies, customers and the community. All media inquiries regarding Padre Dam's position should be directed immediately to the Communications Manager.

20.8.3 Use of Padre Dam Logo and Identity

A. Board of Directors: Board members should use the Padre Dam logo and letterhead only for correspondence or documents they produce in their capacity as a Board member of Padre Dam.

B. Employees: Employees are expected to identify Padre Dam documents and correspondence they

produce with the Padre Dam logo and identity. Guidelines for the correct use of the logo and identity are described in Padre Dam's 2017 Brand User Guide.

C. Other Users: Consultants, partners, vendors, key stakeholders and customers must request

permission from the Department Head before using the Padre Dam logo or identity.


20.9 OUTSIDE EMPLOYMENT

20.9.1 Introduction Employees' personal affairs and time away from the job are their own business and Padre Dam will not interfere. Only when outside interests, and in particular, part-time employment, prohibits an employee from satisfactorily performing their job, will Padre Dam become involved.

20.9.2 Policy Employees are normally expected to devote their work energies and loyalties exclusively to Padre Dam. However, employees may be employed outside Padre Dam provided that:

A. The outside employment does not interfere with the employee's ability to fully and satisfactorily perform his/her duties for Padre Dam. This requirement includes but is not limited to the employee's availability to respond to emergencies on behalf of Padre Dam and to work overtime and on-call/standby duty when so assigned by the employee's supervisor. This requirement also includes but is not limited to the absence of any limitation or adverse impact on the employee's performance and/or work attendance due to increased fatigue or to transportation difficulties.

B. The outside employment does not create a conflict of interest and/or incompatibility with the

employee's position with Padre Dam as determined by this Code of Ethics.

C. The outside employment is not involved in any actions that is illegal, or causes embarrassment to Padre Dam.

D. The outside employment does not distract the employee from his/her regular employment due

to excessive personal phone calls, sending or receiving mail or shipments related to the outside employment and soliciting employees, retirees or customers.

E. The outside employment does not involve any of the following: (1) the use of District resources; (2) receipt or acceptance by the employee of any money or other consideration for the performance of an act within the employee's duties at the District; or (3) the performance of an act which may later be subject directly or indirectly to review, control, inspection, audit, or enforcement of any other District officer or employee.

Any employee, who wishes to receive an opinion about future or current outside employment, may request a determination by the Director of Human Resources or the Ethics Review Board.

20.10 CONFIDENTIAL INFORMATION

20.10.1 Introduction Employees are prohibited from disclosing confidential information. Public record requests which seek confidential information will be processed through Legal Counsel prior to distribution. Confidential information provided within management and supervisors is on a "need to know" basis.

20.10.2 Customer Lists Customer names and addresses will not be released except in the case of any collection efforts of Padre Dam for purposes strictly related to collection or as otherwise provided in accordance with State law.


20.10.3 Employee Lists Employee names and addresses will not be released except where required by law and payroll reporting.

20.10.4 Vendor Lists Vendor lists will not be released except as provided in accordance with State law.

20.10.5 Privileged Matters Attorney-Client privileged communications/documents, matters discussed in closed session, and communications and/or documents subject to the Attorney-Client privilege will not be disclosed to anyone unless specifically authorized in writing by the Board of Directors, General Manager or Department Head, as applicable. Attorney-Client privileged documents once disclosed, pursuant to this section, shall become public records subject to disclosure in accordance with applicable State law.

20.10.6 Personnel Evaluations Evaluations of an employee, as confidential records, generally are not subject to disclosure under State law. Employee evaluations shall only be provided to the employee's Supervisors, Department Head, General Manager, Human Resources Department and Legal Counsel who shall maintain the confidentiality of such records, except as otherwise required or allowed by State law.

20.10.7 Personnel Discipline Information concerning employee disciplinary actions will be limited to the employee and the employee's Supervisor and Department Head. The Human Resources Department, General Manager, Board Ad Hoc Personnel Committee and Legal Counsel may also be involved with the discipline depending on the severity of the discipline.

20.11 BOARD OF DIRECTORS COMPENSATION AND AUTHORIZATION

20.11.1 Introduction The District will compensate Board members on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for reasonable expenses incurred while traveling on District business. Refer to Section 14.11, "Compensation of the Board of Directors," and Section 14.12, "Reimbursement of Expenses" for specific policy guidelines.

20.12 ROLE OF BOARD OF DIRECTORS

20.12.1 Introduction The Board of Directors sets Padre Dam policies and approves budget levels, customer rates, debt issuance and employee agreements through a general manager form of government. Further details of this policy can be found in Section 14, "District Administration Policy."

20.12.2 Policy A. The elected Board of Directors represents the interest of the electorate and establishes Padre

Dam wide policy.


B. The Board is to choose the best interest of the entire customer base rather than a particular

constituency. C. The Board is to provide the means for adequate resources to achieve the mission of Padre Dam. E. Board members will not attempt to direct, evaluate or counsel any staff member other than the

General Manager, Legal Counsel or outside auditors. F. Individual Board members will process any specific request through an agenda item to be

considered and acted upon by the whole Board. Except as otherwise required by law, a majority vote or consensus of the Board directing the General Manager to take action will constitute Board direction.

G. Individual Board members may request and discuss issues with management team staff but this

will not be deemed as setting any particular direction by that staff member or Padre Dam. H. In general, Board member requests for information should be processed through the General

Manager. I. Request for information by a Board member will be answered in a timely manner at least

consistent with timing dictated by the Public Records Act.

1. Consistent with Public Records Act, this timing applies to any existing public record or document.

2. If a request by a Board member requires the creation of a new document or record,

then reasonable time will be allowed for such creation. If the request is onerous, requiring more than two hours staff/legal/consultant time, that request will have to be processed through the whole Board at a public meeting.

20.13 ROLE OF ALL MANAGERS

20.13.1 Introduction Padre Dam managers implement Board policies within Board approved budget and rate parameters in providing water, sewer and recreational services to the customers. Managers provide alternative solutions and consequences of complying with Board policies while seeking new and more efficient ways in providing services consistent with regulatory requirements.

20.13.2 Policy A. Management directs the business of Padre Dam consistent with Board policies. B. The Management is far sighted by planning for the significant investment needs of the

infrastructure. C. Management identifies problems and creates solutions. D. Management constantly pursues operational efficiency to minimize rate impacts while still

providing adequate water, sewer and recreational services.


E. Management informs and recommends actions to the Board for operational and financial issues impacting the delivery of water, sewer, and recreational services.

F. Management presents alternative solutions. G. Management recommends adequate resources in providing water, sewer and recreational

services. H. Management works with labor through the Pipeline in dealing with Padre Dam-wide issues. I. Management recommends sufficient rates and funding plans to achieve the mission of Padre

Dam. J. Management members are expected to possess an expertise in a particular area in addition to

an appreciation for all the disciplines of Padre Dam. K. Management and supervisors provide expectations of work units. 20.14 ROLE OF EMPLOYEES

20.14.1 Introduction Padre Dam employees carry out the direct work of providing water, sewer and recreational services to customers.

20.14.2 Policy A. As front-line ambassadors to customers, Padre Dam employees operate in a professional, timely

and courteous manner. Employees must be particularly vigilant by generating a professional and courteous experience with customers on behalf of the District.

B. Employees provide the fundamental services to customers. C. Employees perform the day-to-day work necessary to provide water, sewer and recreational

services. D. Employees work effectively and efficiently in performing their duties.

E. Employees continually look at ways of doing their jobs better. F. Employees actively participate with Management through the Pipeline. 20.15 INTERNAL CONTROLS

20.15.1 Introduction Adequate and reasonable internal accounting controls will be implemented to sufficiently safeguard the assets and resources belonging to Padre Dam. Departmental internal controls will be periodically examined on a rotating basis to determine control adequacy. The responsibility for performing these reviews will rest with the Finance Department in consultation with the independent outside auditors. Internal controls are designed to safeguard both liquid and physical assets belonging to Padre Dam.


This would include controls over cash receipts, cash disbursements and controls over Padre Dam equipment, infrastructure and supplies. Padre Dam is incorporating the concepts of an audit standard, SAS #99, in reviewing its internal controls including:

• An attitude of Professional Skepticism by accounting staff • Identification of operational areas susceptible to fraud • Review of internal controls for each operational area • Management of antifraud programs and controls

20.15.2 Investment Policy and Procedures Padre Dam Treasuries are invested in accordance with Padre Dam's Investment Policy which is updated annually through the Board of Directors. Generally, the Investment Policy is designed to protect the principal fund balance and avoids aggressive investment risks. Consistent with state law, investments shall (1) protect principal, (2) maintain sufficient liquidity to meet operational needs, and (3) maximize a reasonable rate of return given the first two investment objectives. All investments are reported in monthly financial statements to management and the Board of Directors which show cost, market value and yields. Although all money is invested together, separate funds are tracked and reported by each operating area. Interest income accrues to the specific fund based upon the fund balances. An outside investment consultant recommends investments in the market place in compliance with the investment policy. Additional details of the Investment Policy can be found in Section 19.4.

20.15.3 Sale and Disposal of Padre Dam Assets If no other department has any use for the surplus property, the property is to be sold where possible, or inventoried and disposed of, in accordance with all applicable laws and Padre Dam's Purchasing Procedures, Section 18.16.

20.15.4 Park Operations Santee Lakes is a unique operation to Padre Dam and functions similar to a stand-alone enterprise. All full-time Park Staff rotate performing opening and closing procedures for the Park Office, General Store, and Park/Campground. Internal controls are in place to prepare and approve daily cash balancing and deposit reports, and staff are trained to identify and reconcile discrepancies. Full-time and part-time staff process camping reservations and General Store transactions, and volunteers process entry fees for the Day Use Park.

20.16 MEETINGS AND CONFERENCES: EMPLOYEE TRAVEL AND EXPENSE GUIDELINES

20.16.1 Introduction Reimbursement of expenses incurred while attending conferences and meetings shall be limited to actual and necessary expenses incurred in the performance of official duties for the benefit of Padre Dam and must be pre-approved by the appropriate Department Head. Refer to Section 11.7.12 for detailed policies and guidelines.


20.16.2 Meetings and Conferences

A. Employee attendance at conferences outside of California is prohibited unless otherwise specifically authorized by the General Manager in advance.

B. Authorization to attend meetings or conferences shall only be allowed for activities, conferences

and/or meetings that directly relate to the business of Padre Dam. C. General attendance at social or business gatherings do not qualify for reimbursement unless the

meeting is specifically sponsored by or directly related to Padre Dam. Per Diem and any reasonable business expenses for meeting attendance are allowed for a Padre Dam Board member who serves in an official capacity as Padre Dam's representative.

20.16.3 Philanthropic and Community Organizations Involvement in worthy community organizations is encouraged. Payment of per diem or meeting expenses is not provided for elected Board of Directors. Payment of membership fees, meeting lunches and other support is not provided for Padre Dam employees or Board members.

20.17 PADRE DAM CREDIT CARDS

20.17.1 Introduction Padre Dam credit cards are to be used only for Padre Dam business. No personal expenses are to be charged to a Padre Dam credit card.

20.17.2 Policy

A. Padre Dam credit cards are only to be used for Padre Dam business and Padre Dam Employee expenses only. Padre Dam employees should make separate arrangements for personal expenses.

20.18 VEHICLE USAGE

20.18.1 Padre Dam Vehicle Commuter Use Certain employees are authorized to garage and commute to and from work in Padre Dam owned vehicles in accordance with Section 11.7.13. The General Manager may make additional temporary assignments based on the best interests of Padre Dam. Notwithstanding, such users are prohibited from using Padre Dam owned vehicles for personal use unless it is an incidental personal errand on the way to or from work or during the course of the work day. Employees with home garaging privileges will receive a related taxable income addition on their year-end W-2.

20.18.2 After-Hour Duty Personnel and Policy Statement Padre Dam provides a vehicle to all duty personnel while on duty in accordance with Section 11.8.12 C. This vehicle is equipped with tools necessary to respond to duty calls. While standing duty, workers may use the vehicle in the same way they would use their personal vehicle as long as the worker complies with all traffic laws, Padre Dam Safety and other Padre Dam rules regarding personal conduct.


20.18.3 Padre Dam Vehicles and Personal Vehicles for Padre Dam Business Sections 11.15.2 and 11.15.3 and Articles 16.2 and 31 of the 2017-22 PDEA Memorandum of Understanding outlines Padre Dam's expectations with respect to general use of Padre Dam vehicles and use of personal vehicles for Padre Dam business and mileage reimbursement. A. Employees operating either a Padre Dam vehicle or a personal vehicle on Padre Dam business are

responsible for its safe operation. B. Employees must have the correct California Drivers' License for the vehicle they are driving. C. Employees are responsible for traffic citations except for a traffic citation due to faulty

equipment on a Padre Dam vehicle. D. Employees driving their personal vehicle on Padre Dam business must be able to show proof of

insurance as required by the State of California.

20.19 COMPUTER USAGE

20.19.1 Introduction Use of Padre Dam computers is controlled by Section 11.28, on Padre Dam Computer Systems and included within the "Computer User Agreement" which is signed by every employee. Padre Dam computers are provided for the efficiency of Padre Dam work and should not be used for entertainment or as a distraction from any Padre Dam obligations. The public has a right to access computer records at any time via public records requests. Padre Dam supports and encourages and expects the development of computer skills needed for current job duties and future job growth.

20.19.2 Policy A. Personal computer use may only occur during off time and when the computer is not otherwise

needed for Padre Dam business. Note that any internet use or personal information created and stored on a Padre Dam computer is available for review by a designated Padre Dam representative.

B. All software loaded on Padre Dam Computers must be approved and installed by Information

Systems designated personnel. C. Follow e-mail etiquette of courtesy and professionalism. Do not forward any e-mails of

questionable taste. Internet traffic guidelines are specified in the Computer User Agreement and as with email set guidelines for traffic that may be deemed unprofessional or inappropriate

D. Use of Padre Dam’s Computer systems, including all software applications, email, Pipeline, etc.

should be done during normal business hours. After hours use is strictly prohibited by non-exempt employees.

E. Report any misuse or abuse of Padre Dam computer equipment or software to your supervisor

and Information Systems.


List of Ordinances Amending Section 20: 2007-01 adopted April 10, 2007, creating Section 20, Code of Ethics and Ethical Behavior

2011-02 adopted 3/22/11, effective 3/23/11, eliminating Section 20.18.4, Vehicle Allowance and other minor corrections. 2013-08 adopted 12/18/13, rewrite of Section 20. 2014-06 adopted 12/3/14, annual review with minor changes in various sections. 2016-03 adopted 2/3/16, annual review with minor changes in various sections to reflect new Pipeline Program. 2017-02 adopted 4/19/17, annual review with minor changes in various sections. 2018-04, adopted 12/19/18, annual review amending various sections 2020-02, adopted 2/5/20, annual review amending various sections. 2021-05, adopted 9/15/21, annual review with minor amendments.

SECTION 21 IDENTITY THEFT PREVENTION PROGRAM

INDEX Page

21.1 PURPOSE .........................................................................................................................2

21.2 DEFINITIONS ....................................................................................................................2

21.3 DESIGNATION OF AUTHORITY ..........................................................................................3

21.4 COMPLIANCE REPORTS TO BE PREPARED BY DISTRICT STAFF ............................................3

21.5 RED FLAGS IDENTIFIED BY THE DISTRICT ...........................................................................3

21.6 PROCEDURES FOR DETECTING RED FLAGS ........................................................................6

21.7 ADDRESS DISCREPANCIES IN CONSUMER REPORTS ...........................................................7

21.8 PROCEDURES FOR RESPONDING TO RED FLAGS ................................................................8

21.9 PROCEDURES FOR RESPONDING TO A SECURITY BREACH ..................................................9

21.10 TRAINING OF STAFF ....................................................................................................... 11

21.11 OVERSIGHT OF THIRD-PARTY SERVICE PROVIDER INVOLVED WITH CUSTOMER

ACCOUNTS ..................................................................................................................... 11

21.12 USE OF A THIRD PARTY SERVICE PROVIDER TO ASSIST IN THE IMPLEMENTATION OF THE

PROGRAM ..................................................................................................................... 11

21.13 PERIODIC IDENTIFICATION OF CUSTOMER ACCOUNTS..................................................... 11

21.14 PERIODIC UPDATE OF THE PROGRAM ............................................................................. 12


SECTION 21 IDENTITY THEFT PREVENTION PROGRAM

21.1 PURPOSE The Fair and Accurate Credit Transaction Act of 2003 (FACTA), section 114, as implemented by the Red Flag Rules, 16 C.F.R. Part 681, issued by the Federal Trade Commission along with other federal agencies requires creditors of customer accounts to implement an Identity Theft Prevention Program. Pursuant to the regulations, Padre Dam Municipal Water District (District) is a creditor because it provides services to customers prior to receipt of payment through customer accounts, including utility service accounts, which are maintained primarily for personal, family or household purposes and involve multiple payments or transactions, and for which there is a reasonably foreseeable risk of identity theft. Furthermore, Section 1798.29 of the California Civil Code (effective January 1, 2014) requires local public agencies, such as the District, to disclose any breach of data security to any resident of California whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. This includes customer accounts as well as other online account information stored by the District. The purpose of this Identify Theft Prevention Program (Program) is to detect, prevent and mitigate identity theft in connection with all customer accounts and other records, taking into consideration the level of risk for identity theft given the District’s scope of services provided and the types of accounts. This Program is created to identify patterns, practices and specific activities that indicate the possible existence of identity theft, hereinafter referred to as “Red Flags.” The Program sets forth the procedures for detecting and responding to Red Flags when discovered. The Program also details procedures for disclosure of a breach, or reasonable belief of a breach, of data security.

21.2 DEFINITIONS A. “Customer account” shall mean a utility service account or other account provided by the District

that constitutes a “covered account” under the Red Flag Rules. B. “Identity theft” shall mean a fraud committed or attempted using the personal identifying

information of another person without his/her authority. (16 C.F.R. § 603.2 (a). C. “Personal identifying information” shall mean information that may be used to identify a specific

person, including, but not limited to, a social security number, date of birth, government issued driver’s license or identification number, government passport number, unique biometric data such as fingerprints or physical appearance, any unique electronic identification number, telephone number or address.

D. “Red Flag” shall mean a pattern, practice or specific activity that indicates the possible existence of

identity theft as defined in the Red Flag Rules, and as specifically enumerated in Section V. (16 C.F.R. § 681.2.)


21.3 DESIGNATION OF AUTHORITY The Board of Directors of Padre Dam designates the authority to develop, oversee, implement and administer the Program to the General Manager or his/her designee. As part of the General Manager’s or his or her designee’s oversight responsibilities for the Program, the General Manager or his or her designee is required to review and approve all material changes to the Program as necessary to address changing identity theft risks. The General Manager or his or her designee is also responsible for reviewing reports prepared by District’s staff regarding the District’s compliance with FACTA, the Red Flag Rules and Section 1798.29 of the California Civil Code requiring the implementation of an Identify Theft Prevention Program.

21.4 COMPLIANCE REPORTS TO BE PREPARED BY DISTRICT STAFF The General Manager will designate District staff involved with the implementation of the Program to prepare reports regarding the District’s compliance with FACTA, the Red Flag Rules, and Section 1798.29 of the California Civil Code requiring the implementation of an Identity Theft Prevention Program. The reports should address material matters related to the Program, such as the following:

a. The effectiveness of the District’s policies and procedures to address the risk of identity theft in connection with opening customer accounts, as well as with existing accounts. This includes identifying any issues related to identifying, detecting and responding to Red Flags;

b. Third-party service provider arrangements;

c. Significant incidents of identity theft, data security breaches, or Red Flag detection, and the District’s responses to those incidents;

d. Recommendations for material changes to the program to ensure that customer accounts are adequately protected from the risk of identity theft.

The reports should be prepared at least annually for review by the General Manager or his or her designee and/or the Board of Directors.

21.5 RED FLAGS IDENTIFIED BY THE DISTRICT In identifying the Red Flags applicable to the District’s customer accounts, the District considered the following risk factors:

a. The types of accounts the District maintains;

b. The methods the District provides to open customer accounts;

c. The methods the District provides to access customers’ accounts;


d. The District’s previous experiences with identify theft in connection with the customer accounts. The Red Flags identified in this Program have been incorporated from sources, which include supervisory guidance, past incidents of identity theft, and changes in methods of identity theft risk. The District’s Identified Red Flags are as follows:

Alerts, notifications, or other warnings received from consumer reporting agencies or service providers providing fraud protection services:

• Fraud or active duty alerts from consumer reports.

• Notice of a credit freeze from a consumer reporting agency in response to request for a consumer report.

• Notice of address discrepancy provided by a consumer reporting agency.

• A consumer report indicates a pattern of activity that is inconsistent with the history or usual pattern of activity of a customer or applicant.

• Recent significant increase in the volume of inquiries of the customer’s credit.

• Unusual number of recently established credit relationships.

• A material change in the use of credit, especially in regards to credit relationships recently established.

• A customer had an account with the District or any other creditor that was closed for cause or identified for abuse of account privileges.

Suspicious Documents:

• Documents used for identification purposes appear to have been altered or forged.

• The photograph or physical description on the identification documents does match the appearance of the person presenting the identification.

• Other information in identification documents does not match the information provided by the individual presenting the identification documents.

• Other information in the identification documents does not match the information on file with the District.

• The application to open the account appears to have been forged, altered, or gives the appearance of having been destroyed and reassembled.


Suspicious Personal Identifying Information:

• Personal information provided is inconsistent with information provided by an external source, for example where the address provided does not match the address contained in a consumer report.

• Personal identifying information is inconsistent with other personal identifying information provided by the customer, such as a date of birth and the social security number range that do not correlate.

• Personal identifying information provided is associated with known fraudulent activity, as indicated by internal or third-party sources, such as the address or phone number on an application was previously provided on another fraudulent application.

• Personal identifying information is of a type commonly associated with fraudulent activity, as indicated by internal or third-party sources, such as a fictitious address, or an invalid phone number.

• The social security number provided is the same as the social security number of another applicant attempting to open an account or an existing customer.

• The address or telephone number provided is the same as other individuals attempting to open an account or existing customers.

• The individual opening the account cannot provide all of the required personal identifying information for an application.

• Personal identifying information is inconsistent with the information provided by the customer on file with the District.

• Where challenge questions are used by the District to verify the identity of an individual, the individual claiming to be the customer cannot answer challenge questions correctly.

Unusual Use of or Other Suspicious Activity Related to a Customer Account:

• Shortly after receiving a notice of change of address for the account, the District receives a request to add another name to the account.

• A new account is used in a manner commonly associated with known patterns of fraud, such as a first payment is made, and then no subsequent payments are made.

• An account is used in a manner inconsistent with the established pattern of activity for the account, such as a nonpayment where there was never been a late or missed payment.

• An inactive account becomes active.


• Mail sent to the customer is returned repeatedly.

• The District is notified that a customer is not receiving his/her paper account statements.

• The District is notified of unauthorized transactions on a customer’s account.

Notice of Possible Identity Theft:

• The District is notified by a customer of possible identity theft in connection with his/her account.

• The District is notified by a victim of identity theft of possible identity theft in connection with a customer account.

• The District is notified by law enforcement of possible identity theft in connection with a customer account.

• The District is notified by others of possible identity theft in connection with a customer account.

21.6 PROCEDURES FOR DETECTING RED FLAGS The following procedures are being implemented by the District to detect the Red Flags identified with opening of accounts and existing accounts identified above:

A. Obtain personal identifying information of an individual to verify his/her identity prior to opening an account.

B. Authenticate the identity of customers when they are requesting information about their accounts.

C. Authenticate the identity of customers when they are requesting to make any changes to their accounts.

D. Verify the validity of all billing address change requests.

E. Conduct a credit check when opening a new account.

F. Monitor transactions.

G. Verify all requests to change banking information used for payment purposes.

Members of the District’s staff will be assigned and trained to detect Red Flags.

In addition, the District may employ the services of a third party service provider and/or utilize computer software programs to assist in detecting Red Flags.


21.7 ADDRESS DISCREPANCIES IN CONSUMER REPORTS Title 15 of the United States Code, section 1681c, requires consumer reporting agencies to notify a requestor in writing, such as the District, where the address provided by the District for a consumer substantially differs from the address the consumer reporting agency has on file for that consumer. Upon receipt of a notice of an address discrepancy for a consumer, the Red Flag Rules (16 C.F.R. Part 681) and 16 C.F.R. § 641.1 require the District to verify the identity of the consumer for whom the consumer report was obtained in order to form a reasonable belief that the District knows the identity of the consumer through one or more of the following methods:

(a) Verify the information in the consumer report with the consumer.

(b) Verify the consumer’s address through the records of applications, address change notifications, and other account records for the consumer maintained by the District, or retained Customer Identification Program documentation

(c) Verify the consumer’s address through information from third-parties.

(d) Use any other reasonable means.

Newly Established Accounts

For newly established accounts for which a notice of address discrepancy was received, the District must provide to the consumer reporting agency that furnished the notice of address discrepancy the address that the District has reasonably confirmed to be accurate under the following circumstances:

(a) The District can form a reasonable belief that the consumer report relates to the consumer for whom the report was requested;

(b) The District establishes a continuing relationship with the consumer; and

(c) The District regularly in the ordinary course of business provides information to the consumer reporting agency from which the notice of address discrepancy was obtained.

The consumer’s address can be confirmed through the following methods:

(a) Verify the information in the consumer report with the consumer.

(b) Verify the consumer’s address through the records of applications, address change notifications, and other account records for the consumer maintained by the District.

(c) Verify the consumer’s address through information from third-parties.

(d) Use any other reasonable means.

The District must provide the consumer reporting agency the address that the District has reasonably confirmed to be accurate as part of the information the District regularly furnishes for the reporting period in which the District establishes a relationship with the consumer.


Red Flags

A notice of address discrepancy constitutes a Red Flag, and the District will take the necessary action to respond appropriately.

21.8 PROCEDURES FOR RESPONDING TO RED FLAGS In order to prevent and mitigate identity theft, and after taking into consideration the risks of identity theft applicable to the customer accounts, the District implements the following procedures to respond to all Red Flags that are discovered. One or more of these procedures will be used each time a Red Flag is detected:

A. Monitor accounts for evidence of identity theft. B. Contact the customer.

C. Change or add a password, security code or other device that provide access to the account.

D. Reopen an account with a new account numbers.

E. Close an existing account.

F. Not open a new account.

G. Not selling an account to a debt collector. H. Not attempting to collect on an account.

I. Notify law enforcement.

J. Determine that no response is warranted given the particular circumstances.

K. Ask the customer to appear in person with government issued identification. L. Require a deposit to be paid before providing service.

M. Do not provide account information to anyone other than the account holder, or other

individual authorized by the account holder.

N. Update all account information.

O. Deactivate payment method, such as credit card registered for online payment.

P. Connect or disconnect service. Q. Initiate an investigation.


In addition to any of the actions above, the General Manager or his or her designee will be notified of any Red Flags discovered. 21.9 PROCEDURES FOR RESPONDING TO A SECURITY BREACH For purposes of this section, “personal information” means either of the following: (1) an individual’s first name or initial and last name in combination with any one or more of the following, when either is unencrypted: social security number, driver's license number, California identification card number, account number or credit or debit card number (in combination with any required password or code that would permit access to an individual's financial account), medical information, health insurance information, or information or data collected through the use or operation of an automated license plate recognition systems (as defined in Civil Code Section 1798.90.5); or (2) a user name or email address, in combination with a password or security question and answer that would permit access to an online account. For purposes of this section, “personal information” does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records. The District will expeditiously and without unreasonable delay disclose to any California resident if computerized data owned or licensed by the District containing the resident’s unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. Notification may be delayed if a law enforcement agency determines that the notification will impede a criminal investigation. Notification must be given after the law enforcement agency determines that notification of the security breach will not compromise the investigation. The security breach notification shall be written in plain language, titled “Notice of Data Breach” with headings, as follows:

“What Happened” “What Information Was Involved” “What We Are Doing” “What You Can Do” “For More Information”

The Notice of Data Breach shall be formatted, as follows:

A. The format of the notice shall be designed to call attention to the nature and significance of the information it contains.

B. The title and headings in the notice shall be clearly and conspicuously displayed.

C. The text of the notice and any other notice provided pursuant to this section shall be no

smaller than 10-point type. The Notice of Data Breach shall contain the following information:

A. The District’s name and contact information; B. A list of the types of personal information that was subject to the breach;


C. If determinable, the date of the breach, estimated date of the breach or date range in

which the breach occurred, and the date of the notice; D. If determinable, whether notification was delayed as a result of a law enforcement

investigation; E. If determinable, a general description of the security breach incident; and F. The toll-free telephone numbers and addresses of the major credit reporting agencies, if

the breach exposed a social security number, driver’s license number or California identification card number.

Written notice must be provided unless the California resident to be notified has affirmatively consented to electronic notification. If the data compromised only consists of a user name or email address, in combination with a password or security question and answer that would permit access to an online account, the District may comply with the security breach notification requirements under Section 1798.29 of the California Civil Code by providing prompt notice in electronic or other format that the California resident should promptly change his or her password, security question and/or answer. If such data compromised would permit access to an email account furnished by the District (e.g. an employee email account), the District shall not provide notification to the compromised email address. Instead, the District shall provide written notice, electronic notice to another email address if the California resident has affirmatively consented to electronic notice, substitute notice (as detailed below) or by clear and conspicuous notice delivered to the resident online when the resident is connected to the online account. “Substitute notice” may be given, if notification will cost more than $250,000, will be sent to more than 500,000 people, or the District does not have sufficient contact information for the California residents impacted, and shall include all of the following:

A. Email notice when possible;

B. Conspicuous posting of the notice of the District’s website for at least 30 days by providing a link on the home page in larger type than the surrounding text, or in contrasting type, font, or color to surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks that call attention to the link; and

C. Notification to major statewide media and the Information Security Office within the

California Department of Technology. If the security breach notification will be sent to more than 500 California residents, a sample copy of the security breach notification, excluding any personally identifiable information, must also be sent to the Attorney General.


21.10 TRAINING OF STAFF District staff that will be directly involved with opening customers’ account or servicing customer accounts in a manner that would place them in a position to detect Red Flags, or allow them access to customers’ private information shall be trained to detect Red Flags and data security breaches and appropriately respond when there is a Red Flags, data security breach or reasonable belief of a data security breach. The District’s staff participation is crucial to the effective implementation of this program. The General Manager or his or her designee will oversee all staff training to ensure that training is adequate to ensure effective implementation of the Program.

21.11 OVERSIGHT OF THIRD-PARTY SERVICE PROVIDER INVOLVED WITH CUSTOMER ACCOUNTS If, the District employs a third-party service provider to perform any activity in connection with a customer account, the General Manager is responsible for ensuring that the activity is conducted in compliance with reasonable policies and procedures to detect, prevent and mitigate the risk of identity theft. This may be achieved by requiring that a third-party service provider has policies and procedures to detect the Red Flags identified by the District, and also requiring the third-party service provider to review the District’s Program and agree to report any Red Flags to the General Manager or his or her designee.

21.12 USE OF A THIRD PARTY SERVICE PROVIDER TO ASSIST IN THE IMPLEMENTATION OF THE PROGRAM

The District may hire a third-party service provider to implement this Program. The third-party service provider may provide services such as the implementation and administration of computer software programs that detect Red Flags. If a third-party service provider is used to assist in the detection of Red Flags, the third-party service provider is required to immediately notify the General Manager or designee if any Red Flags are discovered. The General Manager or his designee is responsible for overseeing any third-party service provider in an appropriate and effective manner. The General Manager’s oversight shall include periodic meetings and/or receipt and review of periodic reports from the third-party service provider regarding what services are being provided, any Red Flags that have been detected, and any possible modifications to the services provided to increase the effectiveness.

21.13 PERIODIC IDENTIFICATION OF CUSTOMER ACCOUNTS The General Manager or his or her designee will periodically review the types of accounts it maintains for customers to determine which are “covered accounts” under the Red Flag Rules, and therefore are subject to this Program.


21.14 PERIODIC UPDATE OF THE PROGRAM This Program will be updated periodically to ensure that the identified Red Flags and security breaches, the procedures to detect Red Flags and security breaches, and the responses to the Red Flags and potential security breaches when discovered adequately protect customers from identity theft. The updating of the Program should take into consideration any changes in the customers’ level of risk of identity theft by looking at the following factors:

A. The District’s recent experiences with identity theft in connection with the customer accounts.

B. Changes in methods of identity theft. C. Changes in methods of detecting, preventing and mitigating identity theft.

D. Changes in the types of customer accounts offered.

E. Changes in arrangements with any third-party service providers involved in the

implementation of the Program.

District Staff may recommend modifications to the Program. However, any substantive modification to the Program may not be implemented unless first approved by the Board of Directors. Non-Substantive modifications to the Program will be made under the authority of the General Manager.


List of Ordinances amending Section 21: 2009-07 adopted 07/28/09, establishing policy 2014-06 adopted 12/3/14, annual review amending various sections 2016-03 adopted 2/3/16, amending 21.9 to comply with AB 964

Section 22 Standard Practices and Policies Page 1 of 13

Padre Dam Municipal Water District

SECTION 22 NATIVE AMERICAN SACRED RESOURCES POLICY

Section 22.1 Introduction

Padre Dam Municipal Water District (District) is committed to further improving its collaboration, cultural

sensitivity, and government to government relationship with local Native American Tribes regarding

District Projects that may have potential impacts on any Native American burial site, sanctified cemetery,

place of worship, religious or ceremonial site, or sacred shrine (collectively, Sacred Resources).

Pursuant to Ordinance 2014‐02 adopted by the Board of Directors on August 6, 2014, the Standard

Practices and Policies Manual of the District has been amended to add Section 22, Native American Sacred

Resources Policy (Policy), as set forth in Exhibit A attached hereto.

The District’s Director of Engineering and Planning will have the primary responsibility for the

implementation of this Policy pursuant to Section IX of the Policy.


PADRE DAM MUNICIPAL WATER DISTRICT

NATIVE AMERICAN SACRED RESOURCES POLICY

I. PURPOSE OF POLICY

A. Padre Dam Municipal Water District (“District”) is committed to further improving its collaboration, cultural sensitivity, and government to government relationship with local Native American Tribes (collectively, “Tribes”) regarding the District’s Projects (as defined in Section III. below) and their potential impacts on any Native American burial site, sanctified cemetery, place of worship, religious or ceremonial site, or sacred shrine (collectively, “Sacred Resources”). The purposes of this Native American Sacred Resources Policy (“Policy”) is to establish guidelines to be implemented by the District in connection with planning and construction of Projects in order to allow the Tribes an opportunity to engage in consultation; to provide input that can avoid adverse impacts to Sacred Resources; to create a process for the Tribes to make known appropriate and necessary precautions regarding potential impacts of Projects on Sacred Resources; and to increase the District’s level of understanding, appreciation, and respect for Sacred Resources.

B. The District acknowledges the need for sensitive treatment and care of Native American burial sites, skeletal remains, and items associated with Native American burials, and the priority to preserve or avoid any Sacred Resources located on District property or within a District Project footprint not on District property, whenever feasible.

C. The District acknowledges that while the locations of many Sacred Resources are known to the Tribes with a high degree of certainty, there are a significant number of sites that are known with less specificity. The District further acknowledges the Tribes’ concerns that locations of such sites were obscured by other development activities in the County or were hidden from documented view for generations, in fear of destruction or prosecution for their use by Native American people. Sacred Resources may occur within the area of existing facilities but were previously undetected. Planning for existing and future activities that may unknowingly coincide with Sacred Resources requires and benefits from coordination and consultation with the Tribes early in the planning process and avoidance opportunities.

D. Nothing in this Policy changes, limits or obviates the applicability of the California Environmental Quality Act, or other state or federal law, to activities carried out by the District.

II. TRIBES CONSULTATION LIST

A. This Policy will be assisted by the Tribes who have provided the District with a request to be consulted about any Projects which may have an impact on Sacred Resources (referred to herein as “Tribes Consultation List”, Attachment 3 hereto). The Tribes Consultation List will include any and all designated representatives provided by the Tribes to be contacted regarding such Projects. The District shall involve affected Tribes early in the planning of proposed Projects in an effort to identify any Sacred Resources and the potential impacts of proposed Projects on such Sacred Resources early in the project planning process.


III. APPLICABILITY OF POLICY

A. This Policy applies to any activity located on public property which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and which is an activity directly undertaken or approved by the District or its representatives (referred to herein as “Project”). This Policy shall not apply to any Projects (1) that do not include any ground disturbing activity; (2) involving the operation, repair, and/or maintenance of existing District facilities and/or equipment; (3) necessary to remedy any emergency condition that poses an imminent threat to health and safety, or property (though post notification of the activity will be provided to the Tribes); (4) involving ground disturbing activities located in a District right-of-way, on District property/facilities described in Attachment 1, or on any other existing District/facilities that are shown to have previously undergone environmental review prior to the adoption of this Policy (should such other property/facilities be identified by District, District will inform the Tribes on the Tribal Consultation List of same); or (5) located on District property that have been determined previously by the Tribes or Project Archaeologist not to be on or near any Sacred Resources pursuant to this Policy.

B. While this Policy only applies to District Projects, the District recognizes that it occasionally accepts facilities constructed by private parties into its water distribution system. In response to any request for service availability for such private projects, the District will provide notice of this Policy to the applicable land use authority responsible for project approval in substantially the same form as provided in Attachment 2.

IV. PRELIMINARY REVIEW OF PROJECT AND CONSULTATION

A. During its “Preliminary Review” of any proposed Project, the District shall determine whether the proposed Project site is located on or near any Sacred Resources by comparing the plans for such Project against information provided by the Tribes regarding known sites within the District’s jurisdictional area. The location of the Project will also be reviewed by the District’s archaeological monitor (“Project Archaeologist”) prior to designing the Project. The Project Archaeologist must be a professional archaeologist meeting the Secretary of the Interior’s Professional Qualifications Standards for Archaeology (36 CFR Part 61). The Project Archaeologist should have at least an M.A. in anthropology or related field plus at least five years’ experience involving Southern California cultural resources, including Sacred Resources. Additionally, the Project Archaeologist should have experience in the following types of projects: monitoring, survey/inventory, and evaluation studies. The Project Archaeologist will be made aware of the requirements of this Policy, and any other applicable requirements imposed by the District to carry out this Policy, including procedures for temporarily halting work and construction safety requirements and rules.

B. As part of the Preliminary Review, the District shall notify the Tribes of the potential location of proposed Projects to determine whether such Projects may be located on or near any Sacred Resources. The notification shall identify the proposed location of the Project; allow the Tribes an opportunity to provide available information regarding the existence of any Sacred Resources that are potentially within or adjacent to the proposed Project site; and give the Tribes an opportunity to comment


on impacts that could arise from the proposed Project. The notification shall allow the Tribes a reasonable period of time to respond, not less than 60 days or more than 90 days.

C. Any locations identified by the Tribes as Sacred Resources shall be kept confidential by the District and shall not be considered public records as defined by the California Public Records Act (Government Code section 6250 et. seq.). If a site is identified by any Tribe as a Sacred Resource, the District will initiate consultation with the affected Tribe regarding the potential implications or impacts the proposed Project may have on the site. Such consultation shall include describing the nature and scope of the proposed Project; conducting additional investigations to identify the site; and meeting/discussing potential impacts and avoidance strategies and any anticipated implications, including any time constraints or potential resource issues.

D. If, after Preliminary Review and consultation with the Tribes, the District determines that the proposed Project could cause damage, exposure or desecration to any Sacred Resources, the District will seek first to avoid the site through redesign and impacts avoidance.

E. If avoidance is not feasible, the District will engage in meaningful discussions with the affected Tribes to determine whether mitigation measures may be adopted to mitigate impacts to the site. The District will discuss and confer with the affected Tribes regarding all reasonable options related to the dignified and culturally sensitive treatment of the site and any Sacred Resources at the site. The District will carefully consider the views of the affected Tribes; develop measures to provide protection to Native American human burials and skeletal remains from vandalism and inadvertent destruction; and provide for sensitive treatment and disposition of Native American burials, skeletal remains, and associated grave goods.

F. If, after consultation with the affected Tribes, it is determined that severe and irreparable damage is unavoidable, and appropriate mitigation measures are not possible, the District may proceed with the proposed Project only if required to do so due to imminent public emergency need. The Project will be conducted in a manner respectful of the Native American cultural and religious customs and needs.

V. NATIVE AMERICAN MONITOR

A. The District will retain a qualified Native American Monitor, in consultation with the Tribes listed on the Tribes Consultation List, and will notify the Native American Monitor prior to any excavation activities for a Project. The Native American Monitor must satisfy the California Native American Heritage Commission’s guidelines for Native American Monitors, including but not limited to, experience working with Native American cultural features under the guidance of an archaeologist. The Native American Monitor’s experience and knowledge may be gained by training from tribal elders verified by the submission of such things as copies of contracts, reports, and letters from the Kumeyaay elders or formal education in fields such as anthropology, archaeology, or ethnology, may be substituted for experience. The Project Archaeologist will make reasonable efforts to consult with the Native American Monitor during the archaeological monitoring described in Section VI.A of this Policy.


VI. MONITORING AND DISCOVERY OF SACRED RESOURCES

A. The Project Archaeologist will monitor Projects for Sacred Resources. Monitoring will determine whether any Sacred Resources that are discovered during any ground disturbing activity derive from a disturbed context or, if potentially intact, whether a new site has been discovered. Sacred Resources identified during monitoring will be treated as a new discovery only if the native soils are found to be undisturbed, there is no record monitoring at the site, or previous or sensitive Sacred Resources are discovered (“New Discovery”). In determining whether unanticipated discovery of Sacred Resources is considered a New Discovery, the Project Archaeologist will inspect vertical soil exposures as they are excavated to ensure that no significant sites are affected by any ground disturbing activity.

B. Should a New Discovery be made, the Project Archaeologist will halt the ground disturbing activity. The Project Archaeologist will consult with the District immediately. If the Project Archeologist suspects that any ground disturbing activity has occurred outside of the approved Area of Potential Effects (“APE”), the Project Archaeologist may examine such areas as necessary to confirm compliance with this Policy. For purposes of this Policy, “APE” shall mean the area of land that may be affected by the Project, including direct effects and indirect effects.

C. If the Project site has no burial or human remains, but is otherwise considered a Sacred Resource, the District will contact the Native American Monitor and the Tribe on the Tribes Consultation List most closely associated with the site to consult regarding treatment of the site.

D. If the Project Site is identified as a Sacred Resource, including Native American human remains (pursuant to Section VII. of this Policy), grave goods, or features which are sacred, ceremonial or associated with a burial, the Site will be treated as a burial site. Such features will not be subject to complete exposure or removal, without prior consultation with the appropriate Most Likely Descendant (“MLD”), in accordance with the requirements of Public Resources Code section 5097.98, subdivision (a) and the procedures set forth in this Policy. VII. DISCOVERY OF HUMAN REMAINS

A. If suspected, probable, or possible human remains are discovered at any proposed Project site or existing facility, there shall be no further ground disturbing activity on the site or any nearby area reasonably suspected to overlie adjacent human remains, or removal of such remains. The District must secure the Project site to prevent trespass and vandalism. The San Diego County Coroner must be contacted to determine that no investigation of the cause of death is required. An analysis and identification must be conducted on-site by the San Diego County Medical Examiner or designee. If the County Coroner determines that the human remains are Native American, the District shall notify the Tribes and shall confirm that the Medical Examiner has contacted the Native American Heritage Commission within twenty-four (24) hours as required by Title 14 of the California Code of Regulations, section 15064.5, subdivision (e), as such regulations may be amended from time to time. The District shall further contact the Native American Heritage Commission to confirm it has identified and made contact with the person or persons it believes to be the MLD and follow this Policy.


B. Upon notification of the MLD, the District will allow the MLD’s designated representative(s) to inspect the Project site and make recommendations for treatment or disposition, with appropriate dignity, of the human remains and any associated grave goods. The District shall retain a Project Osteologist trained in human and faunal osteology to be present at the Project site during all sorting, analysis, or identification of suspected Native American human remains. The Project Osteologist must have at least an M.A. in anthropology or related field plus at least five years’ experience after receiving an M.A. with a specialization in either bioarchaeology, forensics, or physical anthropology with documented experience in human skeletal identification. Human remains of a Native American may be an inhumation or cremation, and in any state of decomposition or skeletal completeness.

C. Upon discovery of Native American human remains, the District must ensure that the immediate vicinity of the human remains, according to generally accepted cultural or archaeological standards or practices, where the Native American human remains are located, is not damaged or disturbed by further ground disturbing activity until the District has discussed and conferred, as prescribed in Public Resources Code section 5097.98 and Health and Safety Code section 7050.5, as amended from time to time, with the MLD regarding their recommendations. Transportation of any Native American human remains, without prior consultation with an MLD in a manner consistent with the requirements of Public Resources Code section 5097.98 is considered by an MLD to be non-dignified and disrespectful treatment of ancestors.

D. The District shall first determine whether any discovered human remains can feasibly be avoided through redesign of the Project. If impacts to the remains cannot be avoided, the District will discuss and confer regarding the MLD's preferences for treatment including but not limited to: (1) the nondestructive removal and analysis of human remains and items associated with Native American human remains; (2) preservation of Native American human remains and associated items in place; (3) relinquishment of Native American human remains and associated items to the descendants for treatment; or (4) other culturally appropriate treatment. For the purposes of this section, "conferral" or "discuss and confer" means the meaningful and timely discussion and careful consideration of the views of each party, in a manner that is cognizant of all parties' cultural values, and where feasible, seeking agreement. Each party shall recognize the other's needs and concerns for confidentiality of information provided to the other.

E. If an MLD is not identified, the identified MLD fails to make a recommendation, or the District rejects the recommendation of the MLD and the mediation provided for in Public Resources Code section 5097.94, subdivision (k), if invoked, fails to provide measures acceptable to the District, the District may work with the Tribes to reinter the human remains and items associated with Native American human remains with appropriate dignity on the property in a location not subject to further and future subsurface disturbance. Reinterment shall never occur without appropriate religious and ceremonial rites being provided.


F. To protect a Project site where Native American human remains have been reinterred, the District shall do one or more of the following, after consultation and concurrence with the MLD: (1) record the site with the Native American Heritage Commission or the appropriate Information Center; (2) utilize an open-space or conservation zoning designation or easement; or (3) record a document with the county in which the property is located titled "Notice of Reinterment of Native American Human Remains," which shall include a legal description of the property, the name of the owner of the property, and the owner's acknowledged signature, in addition to any other required information.

G. Any items associated with discovered human remains that are placed or buried with the Native American human remains are to be treated in the same manner as the remains, but do not by themselves constitute human remains. If any items are determined to be “unique archaeological resources” as defined by Public Resources Code section 21083.2 or are considered to be significant pursuant to the County of San Diego’s Resource Protection Ordinance, if applicable, all ground disturbing activity or archaeological activities must stop in that APE and avoidance measures must be considered. The District shall provide a reasonable effort and time allotment sufficient to allow for implementation of avoidance measures or appropriate mitigation to be investigated and discussed with the MLD. Work may continue in other part of the Project site outside of the APE while unique archaeological resource mitigation takes place.

H. An MLD’s burial practices may include ceremonial burnings, which often include animals and items of personal nature related to the deceased. Therefore, an MLD may interpret the term “human remains” to encompass more than the human bones themselves. As a result, until consultation with the MLD, the District should consider ashes and other remnants of burning ceremonies to be treated in the same manner as human remains. In addition, if faunal remains, burned or not burned, are found in close proximity to a burial or human remains, such faunal remains should be treated as burial goods.

I. Faunal remains, which have been positively identified as faunal by the Project Osteologist, may be found in the Project site context or in and around features located on the site. Bones will be identified to genus and species, or at least as small, medium or large vertebrate as possible. The Number of Identifiable Specimens (“NISP”) will be the minimal level of analysis, with Minimum Number of Individuals (“MNI”) as the optimal level of analysis. Faunal remains that are ceremonial, sacred or associated with a burial will not be subject to any destructive archaeological testing, and all actions concerning such specimens will be subject to prior consultation with an MLD in a manner consistent with the requirements of Public Resources Code Section 5097.98, subdivision (a).

VIII. POTENTIAL HISTORICAL RESOURCES

A. In the event that Sacred Resources that are potentially eligible for listing in the California Register of Historic Resources are encountered during any ground disturbing activity for a Project, the Project Archaeologist will temporarily halt Project work in the APE to assess significance of the discovery. If project work is temporarily halted, the Project Archaeologist will immediately notify the District and the Native American Monitor. The Project Archaeologist will then confer with the construction site supervisor so that the Project work at a safe distance outside the APE related to the find may continue. Additionally,


the District will notify and allow the Native American Monitor to be present during the monitoring efforts and to participate in the conferring process.

IX. DISTRICT POINT OF CONTACT

A. The District will designate and identify an official who will have the primary responsibility for the implementation of this Policy, who will communicate directly with the Tribes/MLD/NAHC and who will be available to the Tribes at all relevant times during the implementation of this Policy.

X. PROGRESS REPORTS & UPDATED MAPPING OF DISCOVERIES

A. Progress Reports shall be provided to the MLD/Tribe by the Project Archaeologist upon written request. In addition, confidential mapping shall be provided to the MLD/Tribe indicating the areas of discovery and evaluation by the Project Archaeologist upon request; however, such mapping shall not be disclosed to the general public in order to protect the locations of the Sacred Sites.

60025.0006E\8800684.1


Attachment 1

List of Areas Previously Disturbed by District or Located in District Right-of-Way And Which Have Previously Undergone Environmental Review



Attachment 2 Form of Land Use Authority Notification for Padre Dam Municipal Water District

Native American Sacred Resources Policy


To:____________

Re: Padre Dam Municipal Water District Native American Sacred Resources Policy

Your agency has requested information from Padre Dam Municipal Water District related to its ability to serve a new or existing development project (“New Service”). If the New Service involves any facilities or infrastructure that would be transferred to the District upon completion, your agency and the project applicant should be aware of the District’s Native American Sacred Resources Policy, a copy of which is attached. To understand the municipalities’ review process prior to the transfer of any facilities or infrastructure to the District, the District may inquire whether this Policy was used in the design and construction of the facilities.

Should your agency or the applicant have any questions regarding this Policy, please contact the District’s Point of Contact, ________________________.

Signature line for District General Manager

Enclosure


Attachment 3 Tribes Consultation List

Native American Sacred Resources Policy

Pursuant to the Padre Dam Municipal Water District Native American Sacred Resources Policy, the District will provide notifications and will consult with the following Tribes and the California Native American Heritage Commission, as provided for in the Policy. The Tribes Consultation List is intended to be updated and redistributed to the Tribes on the List at the end of each calendar year.

Tribe: Contact:

1. Viejas Band of Kumeyaay Indians Viejas Tribal Office 1 Viejas Grade Road Alpine, California 91901 Office: (619) 445-3810

2. California Native American Heritage 1550 Harbor Blvd Commission Suite 100

West Sacramento, CA 95691 (916) 373-3710

3. ___________________________ ____________________________________

___________________________ ____________________________________

4. ___________________________ ____________________________________

___________________________ ____________________________________

5. ___________________________ ____________________________________

___________________________ ____________________________________

6. ___________________________ ____________________________________

___________________________ ____________________________________

7. ___________________________ ____________________________________

___________________________ ____________________________________

8. ___________________________ ____________________________________

___________________________ ____________________________________


List of Ordinances amending Section 22: 2014-02 adopted 8/6/14, establishing policy 2014-06 adopted 12/3/14, annual review – no changes were made to Section 22.

Section 23 Standard Practices & Policies Page 1 of 13


SECTION 23 GOVERNMENT CLAIMS ACT

INDEX Page

I. CLAIMS PRESENTATION REQUIREMENTS .....................................................................................3

A. Notice of Claims (Government Code §§ 905, 945.2) ................................................................. 3

B. Claims Subject to Claims Presentation Requirements .............................................................. 3

C. Purpose of Claims Presentation ................................................................................................ 5

D. Party Responsible to Allow or Reject Claims ............................................................................. 5

II. WRITTEN CLAIM: SUFFICIENCY ...................................................................................................5

A. Written Claim: Required Information (Government Code § 910) ............................................ 5

B. District Claim Form (Government Code § 910.4) ...................................................................... 6

III. WRITTEN CLAIM: INSUFFICIENCY (GOVERNMENT CODE §§ 910.8 AND 911) .................................6

A. Claim Insufficiency ..................................................................................................................... 6

IV. TIMELINESS (GOVERNMENT CODE § 911.2) .................................................................................7

A. Claims Which Must be Presented Within Six Months ............................................................... 7

B. Claims Which Must be Presented Within One Year .................................................................. 7

C. Computing Time Limit ............................................................................................................... 7

V. REJECTION/ALLOWANCE OF SUFFICIENT AND TIMELY FILED CLAIMS ............................................7

A. Board Action within Forty-Five Days (Government Code § 912.4) ........................................... 7

B. Actions the Board or its Designees May Take (Government Code § 912.6) ............................. 7

C. Reject or Allow only Timely, Proper and Sufficient Claims ....................................................... 8

D. Board Action within Forty-Five Days on Amended Claim (Government Code .......... §912.4(a)) 8

E. Extension of Time by Agreement .............................................................................................. 8

F. Written Rejection (Government Code § 913) ........................................................................... 9

G. Rejection by Operation of Law (Government Code § 912.4) .................................................... 9

VI. LATE CLAIMS (Government Code §§ 911.4, 911.6 and 911.8) ........................................................9

A. Application to Present a Late Claim (Government Code § 911.4) ............................................ 9

B. Acceptance of Application to Present a Late Claim (Government Code §911.6) ................... 10

C. Denial of Application to Present a Late Claim (Government Code §§ 911.8, ......................... 11



VII. AMENDMENT OF CLAIMS (Government Code § 910.6) ............................................................... 11

A. Time to Amend Claim .............................................................................................................. 11

B. Amended Claim Must Relate to Original Claim ....................................................................... 11

VIII. INSURANCE .............................................................................................................................. 12

A. Submission of Claim ................................................................................................................ 12

B. Subsequent Lawsuits ............................................................................................................... 12

IX. GENERAL COUNSEL ................................................................................................................... 12



SECTION 23 GOVERNMENT CLAIMS ACT POLICY The California Government Claims Act (commencing with section 900) of the California Government Code governs the manner in which a public agency must handle claims for money or damages filed against it. All claims against the Padre Dam Municipal Water District (District), including claims for money and damages which are excepted by Section 905 from Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of the Government Code and which are not governed by any other statutes or regulations expressly relating thereto, shall be governed by the Claims Presentation Procedure set forth below, in accordance with the provisions of Government Code section 935.

I. CLAIMS PRESENTATION REQUIREMENTS

A. Notice of Claims (Government Code §§ 905, 945.2)

1. No suit for money or damages may be maintained against the District on a cause of action for which this Procedure requires a claim to be presented until a written claim has first been timely presented to the District in conformity with this Procedure.

B. Claims Subject to Claims Presentation Requirements

1. All claims against the District for money or damages including claims which are otherwise exempted by section 905 of the Government Code from the claims procedure provided in Part 3 of Division 3.6, Title 1 of the Government Code and which are not expressly governed by any other statute or regulation shall be governed by this Procedure. Claims set forth in section 905 of the Government Code include the following:

a. Claims under the Revenue and Taxation Code or other statute prescribing

procedures for the refund, rebate, exemption, cancellation, amendment, modification, or adjustment of any tax, assessment, fee or charge or any portion thereof, or of any penalties, costs or charges related thereto.

b. Claims in connection with which the filing of a notice of lien, statement

of claim or stop notice is required under any provision of law relating to mechanics, laborers or materialmen’s liens.

c. Claims by public employees for fees, salaries, wages, mileage or other

expenses and allowances. d. Claims for which the workers’ compensation authorized by Division 4

(commencing with Section 3200) of the Labor Code is the exclusive remedy.



e. Applications or claims for any form of public assistance under the Welfare and Institutions Code or other provisions of law relating to public assistance programs, and claims for goods, services, provisions or other assistance rendered for or on behalf of any recipient of any form of public assistance.

f. Applications or claims for money or benefits under any public retirement

or pension system. g. Claims for principal or interest upon any bonds, notes, warrants, or other

evidences of indebtedness. h. Claims which relate to a special assessment constituting a specific lien

against the property assessed and which are payable from the proceeds of such an assessment, by offset of a claim for damages against it or by delivery of any warrant or bonds representing it.

i. Claims by the State or by a state department or agency or by another

local public entity or by a judicial branch entity. j. Claims arising under any provision of the Unemployment Insurance Code,

including, but not limited to, claims for money or benefits, or for refunds or credits of employer or worker contributions, penalties, or interest, or for refunds to workers of deductions from wages in excess of the amount prescribed.

k. Claims for the recovery of penalties or forfeitures made pursuant to

Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code.

l. Claims governed by the Pedestrian Mall Law of 1960, Part 1 (commencing

with Section 11000) of Division 13 of the Streets and Highways Code. m. Claims made pursuant to Section 340.1 of the Code of Civil Procedure for

the recovery of damages suffered as a result of childhood sexual abuse. This subdivision shall apply only to claims arising out of conduct occurring on or after January 1, 2009.

n. Claims made pursuant to Section 701.820 of the Code of Civil Procedure

for the recovery of money pursuant to Section 26680. o. Claims made pursuant to Section 49013 of the Education Code for

reimbursement of pupil fees for participation in educational activities.



C. Purpose of Claims Presentation

1. Provides the District with an opportunity to settle just claims before suit is brought.

2. Permits the District to make an early investigation of the facts on which the claim

is based enabling the District to defend itself against unjust claims and to correct the conditions or practices which gave rise to the claim.

D. Party Responsible to Allow or Reject Claims

1. The Board of Directors hereby designates and authorizes the General Manager of the District to perform all functions of the Board as granted under this Procedure including examination, allowance, or denial of all claims filed against the District, and to settle claims against the District up to a maximum of $50,000. Settlement and payment of all claims in excess of $50,000 shall be subject to approval by the Board of Directors. (See Section 14 of the Standard Practices & Policies)

2. The Board of Directors, or its designee, shall examine and allow or reject claims

required to be filed by this Procedure.

3. The Board of Director’s designee’s allowance, settlement, denial and/or rejection of claims shall have the same effect as allowance, settlement, denial and/or rejection by the Board of Directors.

II. WRITTEN CLAIM: SUFFICIENCY

A. Written Claim: Required Information (Government Code § 910)

1. Written claims must contain the following information:

a. The name and address of the claimant; b. The post office address to which the person presenting the claim desires

notices to be sent; c. The date, place, and other circumstances of the occurrence or transaction

which gave rise to the claim asserted; d. A general description of the indebtedness, obligation, injury, damage or

loss incurred so far as it may be known at the time of presentation of the claim;

e. The name or names of the public employee or employees causing the

injury, damage or loss, if known;



f. The amount claimed if it totals less than $10,000 as of the date of claim presentation;

g. The signature of the claimant or some person on his or her behalf.

(Government Code § 910.2)

B. District Claim Form (Government Code § 910.4)

1. The District shall provide forms that the claimant shall use in order that his or her claim is deemed in conformity with Sections 910 and 910.2, as specified in Section II.A. Forms may be obtained by contacting the District’s Safety & Risk Manager.

2. A claim may be returned to the claimant if it was not presented using the form.

Any claim returned to a claimant may be resubmitted using the appropriate form. (Government Code § 910.4)

III. WRITTEN CLAIM: INSUFFICIENCY (GOVERNMENT CODE §§ 910.8 AND 911)

A. Claim Insufficiency

1. If the written claim does not substantially comply with the contents requirements of Section II.A. or with the requirements of a District form provided under section II.B., the claim is insufficient. (Government Code § 910.8)

2. An insufficient claim should not be rejected but should be acknowledged with a

written notice of insufficiency. 3. Within 20 days after the claim is presented, the Board or its designee shall give

written notice of the claim’s insufficiency, stating with particularity the claim’s defects or omissions. (Government Code § 910.8)

4. Written notice of insufficiency shall be given in one of the following ways

(Government Code § 915.4):

a. Personally delivering the notice to the person presenting the claim;

b. Mailing the notice to the address, if any, stated in the claim or on the application.

5. No notice needs to be given when the claim fails to state either a street address

or post office address. (Government Code § 915.4(b)) 6. The Board or its designee may not take action on the claim for a period of 15 days

after the written notice of insufficiency is given. (Government Code § 910.8)



7. Should the District fail to provide written notice of the claim’s insufficiency to the claimant, the District waives the insufficiency and cannot claim insufficiency as a defense, except that no notice need be given and no waiver shall result when the claim fails to state an address. (Government Code § 911)

IV. TIMELINESS (GOVERNMENT CODE § 911.2)

A. Claims Which Must be Presented Within Six Months

1. A claim relating to one of the following must be presented not later than six months after accrual of the cause of action:

a. Death or personal injury; b. Damage to personal property or growing crops.

B. Claims Which Must be Presented Within One Year

1. A claim relating to any other cause of action must be presented within one year of the accrual of the cause of action. (Government Code § 911.2)

C. Computing Time Limit 1. The computation of the six month and one year claims presentation periods may

entail subtle issues with respect to when the period commences to run. 2. Consult with General Counsel should there be any question regarding timelines,

especially in the areas of employment, harassment or discrimination claims.

V. REJECTION/ALLOWANCE OF SUFFICIENT AND TIMELY FILED CLAIMS

A. Board Action within 45 Days (Government Code § 912.4)

1. The Board or its designee shall act on a sufficient and timely submitted claim within 45 days after the claim has been presented.

B. Actions the Board or its Designees May Take (Government Code § 912.6)

1. The Board or its designee may act on the claim in one of the following ways:

a. Reject the claim if the Board or its designee finds the claim is not a proper charge against the District;

b. Allow the claim if the Board or its designee finds the claim is a proper

charge against the District and is for an amount justly due;



c. Either reject the claim or allow it in the amount justly due and reject it as

to the balance if the Board or its designee finds the claim is a proper charge against the District but is for an amount greater than is justly due;

d. Reject the claim or compromise it if legal liability of the District or the

amount justly due is disputed.

C. Reject or Allow only Timely, Proper and Sufficient Claims

1. Only those claims with proper and sufficient contents, as provided in this Policy, and presented in a timely fashion can be rejected or allowed.

D. Board Action within 45 Days on Amended Claim (Government Code §912.4(a))

1. If a claim is amended, the Board or its designee shall act on the amended claim within 45 days after the amended claim is presented, except as provided in Sections E and G, below.

E. Extension of Time by Agreement

1. The claimant and the Board or its designee may extend the time period within which the Board is required to act on the claim by written agreement. (Government Code § 912.4(b))

2. The extension of time must be given:

a. Before the expiration of the 45 day period; or

b. After the expiration of the 45 day period if an action based on the claim has not been commenced and is not yet barred by the period of limitations provided in Section IV. (Government Code § 945.6)

3. Any claim which is not acted upon within the extended time period shall be

deemed to have been rejected by the Board or its designee on the last day of the extended time period. (Government Code § 912.4(c))



F. Written Rejection (Government Code § 913)

1. The claimant has six months in which to file suit on a claim which has been rejected in writing within 45 days of presentation.

a. The written letter of claim rejection must be substantially in the form

found at Government Code § 913. b. The written letter of claim rejection must be given as provided in Section

III.A.4.

G. Rejection by Operation of Law (Government Code § 912.4)

1. A claim that is not rejected in writing within 45 days of presentation is deemed rejected by operation of law on the 45th day following presentation.

a. Written notice of rejection must be provided to the claimant for claims

deemed rejected by operation of law.

i. The claimant has six months in which to file suit in a claim deemed rejected by operation of law if written notice of rejection is provided. (Government Code § 945.6)

ii. The claimant has 2 years in which to file suit on any claim deemed

rejected by operation of law if written notice of rejection is not provided. (Government Code § 945.6)

b. The written letter of claim rejection must be substantially in the form

found at Government Code § 913.

VI. LATE CLAIMS (Government Code §§ 911.4, 911.6 and 911.8)

Any claim which is filed late, and which is not accompanied by an Application to Present a Late Claim shall be returned because it is late and shall not be considered on its merits.

A. Application to Present a Late Claim (Government Code § 911.4)

1. Should the claimant fail to present a claim within the time provided in Section

IV.A., the claimant must present an Application to Present a Late Claim. 2. The Application to Present a Late Claim must:

a. Be presented within one year after the accrual of the cause of action; b. Set forth the reasons for the delay; c. Have a written claim attached.



3. Partially Late/Partially Timely Claims

a. A claim which contains several causes of action must be carefully reviewed to determine which causes of action are timely or untimely filed.

b. Written notice of rejection or allowance, pursuant to Section V, must be

provided to claimant for those causes of action within the claim which are sufficient and timely presented.

c. Written notice of late filing, pursuant to Section VI, must be provided to

claimant for those causes of action within the claim which are not timely presented.

B. Acceptance of Application to Present a Late Claim (Government Code §911.6)

1. The District shall grant the Application to Present a Late Claim only in the following instances:

a. The failure to timely present the claim was due to mistake, inadvertence,

surprise or excusable neglect, and the District is not prejudiced in its defense of the claim by the claimant’s failure to timely present the claim; or

b. The person who sustained the alleged injury, damage or loss was a minor

during all the time specified in Section IV for the presentation of the claim; or

c. The person who sustained the alleged injury, damage or loss was

physically or mentally incapacitated during all the time specified in Section IV for the presentation of the claim; or

d. The person who sustained the alleged injury, damage or loss died before

the expiration of the time specified in Section IV for the presentation of the claim.

2. The Board or its designee must grant or deny the Application to Present a Late

Claim within 45 days after it has been presented, except as provided in Section 3, below.

a. The claimant and the Board or its designee may extend the period within

which the Board must act on the application by written agreement made before the end of the 45 day period.



(i) The Board or its designee must act within the extended period of time or the application shall be deemed denied on the last day specified in the agreement.

3. If the Board or its designee fails to act on the application within the 45 days

following the presentation of the claim, the application shall be deemed to have been denied on the 45th day. (Government Code § 911.6(c)).

C. Denial of Application to Present a Late Claim (Government Code §§ 911.8, 946.6)

1. The District shall deny the Application to Present a Late Claim if it is not excused pursuant to Section VI.C.1.

2. Any denial of an Application to Present a Late Claim must be in writing and must

advise the claimant that he or she has six months to petition the appropriate court for relief.

3. The denial of the Application to Present a Late Claim is unrelated to the validity

of the claim. Denial of an Application to Present a Late Claim means only that this claim was not properly presented.

4. Any Application to Present a Late Claim filed or presented a year from the date of

accrual of the cause of action shall be rejected in writing. (Government Code § 911.8).

a. Written notice of denial of an Application to Present a Late Claim shall be

given as provided in Section III.A.4.

VII. AMENDMENT OF CLAIMS (Government Code § 910.6)

A. Time to Amend Claim

A claim may be amended at any time before the expiration of the period designated in Section IV or before final action on the claim is taken by the Board of Directors, whichever is later.

B. Amended Claim Must Relate to Original Claim

1. The amended claim must relate to the same transaction or occurrence which gave rise to the original claim.

2. The amendment shall be considered a part of the original claim for all purposes.



VIII. INSURANCE

A. Submission of Claim

1. Notice of claim receipt and a copy of the claim should be provided to the District’s insurer immediately.

2. District’s insurer should be informed of all action taken on the claim.

B. Subsequent Lawsuits

1. Tender of District’s defense and a copy of the complaint should be provided to the District’s insurer immediately.

IX. GENERAL COUNSEL

A. General Counsel should be consulted if there is any question regarding sufficiency of a claim, its timeliness or any other matter regarding proper claim administration.

B. Brown Act Compliance

1. General Counsel should be consulted regarding open versus closed session discussion of claims and how to agendize such discussion.



List of Ordinance amending Section 23: 2014-06 adopted 12/3/14, annual review amending various sections