HomeMy WebLinkAbout05-04-16 Board Packet 1
OTAY WATER DISTRICT
BOARD OF DIRECTORS MEETING
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
WEDNESDAY
May 4, 2016
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. APPROVE THE MINUTES OF THE SPECIAL BOARD MEETING OF NOVEM-
BER 18, 2015 AND REGULAR BOARD MEETING OF MARCH 2, 2016
5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
CONSENT CALENDAR
6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
a) APPROVE AN AGREEMENT WITH KIRK PAVING IN AN AMOUNT NOT-
TO-EXCEED $200,000 FOR AS-NEEDED ASPHALT PAVING SER-
VICES FROM JULY 1, 2016 THROUGH JUNE 30, 2017
b) APPROVE A REIMBURSEMENT AGREEMENT WITH BALDWIN &
SONS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, FOR A
PORTION OF THE CAPITAL IMPROVEMENT PROGRAM PROJECT
RECPL – 20-INCH, 680 ZONE, VILLAGE 2 – HERITAGE/LA MEDIA, IN
THE AMOUNT OF $265,994.40
c) ADOPT RESOLUTION NO. 4300 AMENDING POLICY NO. 6, THE AN-
NUAL CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT, OF THE
DISTRICT’S CODE OF ORDINANCES TO INCREASE THE EFFICIENCY
OF THE CIP PROCESS FOR BOARD APPROVED PROJECTS
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d) ADOPT RESOLUTION NO. 4301 AMENDING POLICY NO. 27, THE IN-
VESTMENT POLICY, OF THE DISTRICT’S CODE OF ORDINANCE AND
RE-DELEGATING AUTHORITY FOR ALL INVESTMENT RELATED AC-
TIVITIES TO THE CHIEF FINANCIAL OFFICER, IN ACCORDANCE
WITH GOVERNMENT CODE SECTION 53607
e) APPROVE LIFTING THE TWO-DAY PER WEEK LIMIT ON OUTDOOR
IRRIGATION EFFECTIVE IMMEDIATELY; ALL OTHER MANDATORY
WATER CONSERVATION MEASURES UNDER THE LEVEL 2
DROUGHT ALERT WOULD REMAIN IN EFFECT
f) ADOPT RESOLUTION NO. 4299 REVISING BOARD POLICY #05-A,
RECORDS POLICY AND PROCEDURES – RECORDS RETENTION
AND DESTRUCTION, INCLUDING MODIFYING THE POLICY TITLE TO,
“#05-A RECORDS RETENTION AND DESTRUCTION”
ACTION ITEMS
7. BOARD
a) ADOPT A POSITION OF SUPPORT ON ASSEMBLY BILL 2470 (GON-
ZALEZ), RELATING TO THE PROVISION OF WATER SERVICE TO
TRIBAL LANDS OUTSIDE OF A WATER DISTRICT’S SERVICE AREA
[BUELNA]
b) DISCUSSION OF THE 2016 BOARD MEETING CALENDAR
REPORTS
8. GENERAL MANAGER’S REPORT
a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE
9. DIRECTORS' REPORTS/REQUESTS
10. PRESIDENT’S REPORT/REQUESTS
RECESS TO CLOSED SESSION
11. CLOSED SESSION
a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION: PERIODIC AND
CUSTOMARY REVIEW IN DUE COURSE [GOVERNMENT CODE
§54957.6]
TITLE: GENERAL COUNSEL
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RETURN TO OPEN SESSION
12. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD
MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
13. ADJOURNMENT
All items appearing on this agenda, whether or not expressly listed for action, may be
deliberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the
District’s website at www.otaywater.gov. Written changes to any items to be considered
at the open meeting, or to any attachments, will be posted on the District’s website.
Copies of the Agenda and all attachments are also available through the District
Secretary by contacting her at (619) 670-2280.
If you have any disability which would require accommodation in order to enable you to
participate in this meeting, please call the District Secretary at (619) 670-2280 at least
24 hours prior to the meeting.
Certification of Posting
I certify that on April 29, 2016, I posted a copy of the foregoing agenda near the
regular meeting place of the Board of Directors of Otay Water District, said time being at
least 72 hours in advance of the regular meeting of the Board of Directors (Government
Code Section §54954.2).
Executed at Spring Valley, California on April 29, 2016.
/s/ Susan Cruz, District Secretary
1
MINUTES OF A SPECIAL MEETING OF THE
BOARD OF DIRECTORS OFTHE
OTAY WATER DISTRICT
November 18, 2015
1. The meeting was called to order by President Lopez at 3:46 p.m.
2. ROLL CALL
Directors Present: Croucher, Lopez, Robak, Smith and Thompson
Directors Absent: None
Staff Present: General Manager Mark Watton (arrived at 3:49 p.m.),
General Counsel Dan Shinoff, Asst. GM German Alvarez,
Chief Financial Officer Joe Beachem, Chief of Water
Operations Pedro Porras, Chief of Engineering Rod
Posada, Assistant Chief of Administration and IT Services
Adolfo Segura, Assistant Chief of Water Operations Jose
Martinez, District Secretary Susan Cruz and others per
attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
A motion was made by Director Thompson, and seconded by Director Croucher
and carried with the following vote:
Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the agenda.
5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
WORKSHOP
6. DISCUSSION OF CONSERVATION’S IMPACT ON REVENUES AND THE CITY
OF SAN DIEGO’S PROPOSED RECYCLED WATER RATE INCREASE;
PRESENTATION OF A NUMBER OF FINANCIAL CONSIDERATIONS WITH
REGARD TO THE CURRENT BUDGET IMPACT AND FUTURE RATE
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INCREASES; AND REQUEST FOR THE BOARD CONSIDERATION AND
DIRECTION
Chief Financial Officer Joe Beachem indicated that this workshop is scheduled
today to discuss two issues that will significantly impact the District’s budget: 1)
the City of San Diego’s vote to increase reclaimed water rates; and 2) the
District’s customer water conservation rate which is much higher than
anticipated.
He presented the District’s customers actual conservation level from July to
October which is 26.24%. He stated that staff is projecting conservation through
the end of the year will be 25.7%. He noted that the State’s mandated
conservation for the District is 20%. Mr. Beachem stated that the conservation
level wherein the District would begin to violate its bond covenant is 17.2%. The
District had budgeted a conservation level of 12% and as much as the District
hoped that there would be a rebound in water sales, at this point staff is
projecting a smaller rebound than anticipated. He noted that for every 1% of
potable conservation, the net budget impact is $102,000 and the total net budget
impact of 1% recycled conservation is $34,000.
In response to a question from Director Robak, Chief Financial Officer Beachem
indicated that potable conservation is 10% higher than what was budgeted, and
stated that he did not have the figure for recycled water. He noted that the State
Governor has extended the water conservation mandate through October 2016.
Chief Financial Officer Beachem indicated with regard to recycled water, the City
of San Diego has voted to increase their recycled water rate to the Otay WD
116.25% effective January 1, 2016. He stated that the fiscal impacts from
customer conservation and the rate increase from the City of San Diego is
approximately $2,390,000 (please reference slide 4 of the attached powerpoint
presentation for a breakdown of the $2,390,000).
Mr. Beachem reviewed in detail how the additional expense of $2,390,000 will
impact the District’s debt coverage ratio and bond convenants. He also reviewed
costs that staff has identified that can be avoided and some revenue that will be
greater than anticipated to help mitigate the increased costs and reduced
revenues. He indicated, however, that these cost savings will not fully mitigate
the impact of the increased recycled water cost and reduced revenues due to
mandated conservation.
He noted that conservation and the recycled water rate increase from the City of
San Diego will have an ongoing impact to the District’s budget and the sooner
the District can implement a rate increase, the smoother the impact is to the
District’s rates and the more connected the increase is to the City’s actions and
the Governor’s mandate.
Chief Financial Officer Beachem reviewed the different rate increase options and
indicated that a rate increase of 8.6% would only pass through the City of San
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Diego’s recycled water rate increase and would give the District low protection
from violating its bond covenants. Implementing a 9.9% rate increase would put
the District back, or very close to budget, and give moderate protection. Staff
recommends implementing a rate increase to be effective March 1, 2016.
General Counsel Daniel Shinoff indicated that violating bond covenants can
result in serious implications for the District.
Director Smith inquired if the District could increase its recycled water rate from
85% of the potable rate to 90-95%. Mr. Beachem stated that the District has a
recycled water agreement with CWA that restricts the District from going above
85%. If the District were to do so, it would lose future credits equal to the amount
of extra revenues gained from increasing the District’s recycled water rates.
Director Smith indicated that customers will inquire why potable rates are
impacted by an increase to recycled water rates. General Manager Watton
indicated that, per Proposition 218, the City of San Diego’s recycled rate increase
cannot be placed fully on recycled customers. He indicated that water is water,
whether it is recycled or potable. The cost of water is discounted by 15% for
recycled water.
Director Croucher suggested that staff approach CWA to see if there is a
possibility of amending the District’s agreement as it would help alleviate the
unanticipated rate increase from the City of San Diego.
Director Smith commended staff for identifying budget savings and the deferral of
costs outlined on the last page of the staff report.
In response to questions and comments from several members of the board,
Chief Financial Officer Beachem stated that deferring or eliminating Capital
Improvement Projects do not affect the District’s debt coverage calculation as
those expenditures do not become revenues, they would just remain in reserves.
General Manager Watton added that staff developed the Capital Budget as a 6-
year plan. Many of the projects are maintenance (the extension of the life) of
existing facilities. If these projects were to be deferred, it would work temporarily,
however, the District is just postponing the Capital Investment for maintenance to
another time in the future. Thus, those projects would really not go away, they
accumulate until they are scheduled and completed sometime in the future.
Chief Financial Officer Beachem further indicated that if the District had a
significant sized capital project that could be permanently deleted, then it may
provide enough reserves to possibly pay-off some debt, which would have an
immediate impact on the District’s debt coverage ratio. Otherwise, a year-to-year
shift in the CIP projects would not provide a positive impact to the debt coverage
ratio.
General Manager Watton stated that staff will review the Capital Budget for the
next fiscal year and look into the possibility of deferring CIP projects, as well as,
other alternatives that may help avoid increasing the District’s water rates.
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Director Croucher stepped off the dias at 4:31 p.m.
In response to comments from General Manager Watton, Director Smith stated
that it is important to understand that there may be additional costs associated
with the City of San Diego’s recent action that are not included in staffs’
presentation at this time. Chief Financial Officer Joe Beachem also added that it
is anticipated the El Niño storms will impact the District’s budget.
Director Croucher returned to the dias at 4:34 p.m.
Assistant General Manager German Alvarez clarified that the District’s 9.9%
proposed water rate increase includes the City of San Diego’s unitary increase.
Director Thompson inquired if staff has considered a hiring freeze to assist with
the budget. General Manager Watton stated that the District has downsized over
the years by not filling vacant positions. He indicated that there will be two staff
members who will be retiring (one in December 2015 and one in February 2016)
and the District does not plan on filling their positions. In the last 7-8 years, when
a vacancy occurs, the District reviews the position and determines if its duties
can be automated or distributed without impacting the workload of other staff
members in order to economize and increase efficiency.
Director Thompson recommended that staff defer hiring new staff members until
the District has a better handle on the impacts of the City of San Diego’s rate
increase and conservation. If it is necessary to hire new employees, he
recommended that staff members provide a justification to the board.
In response to comments from Director Smith and Croucher, General Manager
Watton stated that he will have staff discuss the format of the District’s water rate
increase notices. It was discussed that the notices should include detailed
information on how the 9.9% water rate increase will be distributed and that it
should also include a comparison chart of where the District stands in
comparison to other agencies with regard to water rates. Mr. Watton also stated
that he will have staff draft a document that provides information on what the
District has done over the years to offset water rate increases (i.e. reduction of
fleet and personnel, etc.). Director Thompson suggested the document should
be added to the District’s website for customers to access. Director Croucher
also suggested that staff provide information concerning MWD’s illegal rates, the
outcome of the County Water Authority’s (CWA) litigation with MWD regarding
their illegal rate structure, and that CWA is in the process of trying to get those
funds back.
Assistant General Manager Alvarez provided additional information with regard to
the downsizing of personnel. He indicated that this year the District has
eliminated the following positions: Chief Information Officer, Assistant Buyer,
Network Analyst, and a Customer Service Manager. This was made possible
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through automation, restructuring the organization and handling workflow
differently.
Director Thompson further commented on the different rate alternatives provided
in staffs’ presentation and stated that he would prefer the 9.9% rate increase to
be implemented now for reasons cited by staff. He stated that it would coincide
with the City of San Diego’s rate increase and would also protect the District’s
bond covenant.
In response to a question from Director Smith, Chief Financial Officer Beachem
indicated that with the implementation of a 9.9% rate increase, the District would
have 25.7% conservation level built into the budget. In the next year, the
conservation level will increase to 1%, then 2% the year after. Director Smith
stated that he is comfortable with the proposed 9.9% rate increase as it would
allow the District to collect the appropriate revenues to cover unknown impacts,
such as, El Niño and landscape modifications by customers who want to
conserve water.
Director Croucher discussed the contract between the District and the City of San
Diego with regard to the District’s treatment facility and inquired when the
contract will expire. Finance Manager Bell indicated that the contract expires at
the end of 2026. General Manager Watton commented that the City is
dependent on the District’s facility for storage and noted that any water that is
delivered from the District’s reservoir is treated. The City of San Diego also
utilizes the District’ conveyance system to deliver water to its customers. It is felt
that the City of San Diego owes the District for a portion of the O&M costs
associated with the District’s facilities that they utilize. General Manager Watton
indicated that staff plans to work with the City of San Diego’s staff to negotiate
contract terms that would respond to the issues impacting both agencies.
General Manager Watton recommended that the board discuss this matter
further in closed session with legal counsel.
At the request of President Lopez, District Secretary Susan Cruz made a note to
schedule a Special Board Meeting in December 2016 to further discuss the
contract between the District and the City of San Diego.
In response to a question from Director Croucher, Finance Manager Bell
indicated that the Take-or-Pay Agreement with the City of San Diego requires the
District to take 4604 AF of recycled water in calendar year 2015. The District has
budgeted to take 2900 AF in calendar 2015 and is currently behind in its sales.
However, General Manager Watton commented that developer projects are
starting up again in the City of Chula Vista, which means there will be a need for
recycled water for grading.
Director Thompson requested that staff perform a thorough review of potential
recycled water customers. General Manager Watton shared that the District had
a pilot program for Home Owners Associations (HOAs) to convert their
community landscapes to utilize recycled water. Mr. Watton stated that staff will
6
look into the feasibility of offering this program again to potential recycled water
customers.
Director Croucher requested that staff also inform customers of the District’s
limitation in providing tiered rates due to restrictions within Proposition 218.
In response to a question from Director Thompson, Chief Financial Officer
Beachem stated that board members will be able to review and further discuss
the language in the rate increase notices at the Special Board Meeting in
December 2016. Director Thompson suggested that if the board required a
follow-up discussion on the rate increase notices, an Ad Hoc Committee could be
scheduled to follow the Special Board meeting.
President Lopez stated he will consider implementing an Ad Hoc Committee to
review and discuss the language in the rate increase notices. He then requested
that the Special Board Meeting be scheduled in the second week of December.
A motion was made by Director Robak, and seconded by Director Croucher and
carried with the following vote:
Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve a rate increase of 9.9% and that the District form an Optimization Ad
Hoc Committee.
7. ADJOURNMENT
With no further business to come before the Board, President Lopez adjourned
the meeting at 5:28 p.m.
___________________________________
President
ATTEST:
District Secretary
1
MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT
March 2, 2016
1. The meeting was called to order by President Thompson at 3:34 p.m.
2. ROLL CALL
Directors Present: Croucher, Lopez, Robak, Smith and Thompson
Staff Present: General Manager Mark Watton, General Counsel Dan
Shinoff, Asst. General Manager German Alvarez, Chief of
Engineering Rod Posada, Chief Financial Officer Joe
Beachem, Chief of Operations Pedro Porras, Asst. Chief of
Administration and Information Technology Adolfo Segura,
Asst. Chief of Operations Jose Martinez, District Secretary
Susan Cruz and others per attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
A motion was made by Director Lopez, and seconded by Director Croucher and
carried with the following vote:
Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the agenda.
5. APPROVE THE MINUTES OF THE BOARD MEETING OF AUGUST 13, 2015
A motion was made by Director Robak, seconded by Director Lopez to approve
the minutes of the August 13, 2015 board meeting.
Director Thompson indicated that with regard to the last paragraph of page five
(5) of the minutes he would like to suggest that the paragraph be changed to
read:
The board thanked Mr. Calderon for his honesty. A motion was made to
reduce the fine to $500.
Director Robak accepted the amendment to his motion, and Director Lopez
seconded and the motion carried with the following vote:
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Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the minutes of August 13, 2015 with Director Thompson’s
amendment.
6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
7. LEGISLATIVE UPDATE
Ms. Chris Frahm of Brownstein, Hyatt, Farber and Schreck provided an update
on legislative bills and matters that may impact the District. She also introduced
Mr. Adrian LeCesne, newly hired by her firm, who graduated from Yale University
and Harvard Law School.
Ms. Frahm provided a handout of the bills her firm is currently tracking for the
District. She indicated that the County of San Diego’s local projects, such as
desalination and the City of San Diego’s Pure Water Program, are receiving a lot
of attention in Sacramento. She also indicated that there has not been much
legislative focus on the Delta issues and that the focus has been on the
administrative side, including the Emergency Drought Legislation and the Ground
Water Management Act. She shared that there are some State Ballot initiatives
that are of interest; 1) Association of California Water Agencies (ACWA) League
of Cities is seeking funding for water projects for disadvantaged/low income
communities, storm water projects and a resolution for tiered water rates, 2) the
Initiative for Delta Twin Tunnels, and 3) the Water Bond which will not be back
until about 2018.
In response to an inquiry from Director Robak, Ms. Frahm indicated that there
are a couple Federal funding bills that are focused on drought and funding for
disadvantaged communities. She did not know specifically what is pending, but
would be happy to forward the information following the meeting.
Director Smith added that he did see information from the WateReuse
Association concerning funding that they are seeking from the Federal
Government for research for water reuse projects, particularly for projects for
indirect and direct potable reuse.
There was discussion that there has not been good solutions for issues related to
disadvantaged communities and low income customers. These are real issues
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and it is felt that the current legislation will not solve the concerns that it is
intended to solve. These issues do need to be addressed and it is hoped that
this will happen in the future.
CONSENT CALENDAR
8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
Director Smith pulled items 7b, APPROVE A CONTRACT FOR FINANCIAL
ADVISOR, BOND COUNSEL AND DISCLOSURE COUNSEL SERVICES FOR
THE ADVANCED REFUNDING OF THE 2007 CERTIFICATES OF
PARTICIPATION FOR AN AMOUNT NOT-TO-EXCEED $52,500 FOR
FINANCIAL ADVISOR SERVICES AND $55,000 FOR COMBINED BOND
COUNSEL AND DISCLOSURE COUNSEL SERVICES, for discussion.
A motion was made by Director Lopez, seconded by Director Robak and carried
with the following vote:
Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the following consent calendar item:
a) NULLIFY THE AUTHORIZATION TO ISSUE A PURCHASE ORDER TO
ORANGE COAST DODGE AND APPROVE THE ISSUANCE OF A
PURCHASE ORDER TO MIRAMAR FORD IN THE AMOUNT OF
$116,002 FOR THE PURCHASE OF ONE (1) REPLACEMENT CLASS 4
UTILITY TRUCK
President Thompson presented item 7b for discussion:
b) APPROVE A CONTRACT FOR FINANCIAL ADVISOR, BOND COUNSEL
AND DISCLOSURE COUNSEL SERVICES FOR THE ADVANCED
REFUNDING OF THE 2007 CERTIFICATES OF PARTICIPATION FOR
AN AMOUNT NOT-TO-EXCEED $52,500 FOR FINANCIAL ADVISOR
SERVICES AND $55,000 FOR COMBINED BOND COUNSEL AND
DISCLOSURE COUNSEL SERVICES
General Manager Watton indicated in response to an inquiry from Director Smith,
that the agreement for the Financial Advisor includes a boiler plate disclaimer
proposed by the Municipal Securities Rulemaking Board (MSRB) that reminds
the District of the inherent conflict of interest caused by a contingent fee
arrangement (the Financial Advisor’s compensation is dependent upon the
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successful completion of the refinancing of the District’s bonds). He stated that
the disclaimer is intended to make the District aware of possible issues that could
occur with a contingent fee. He noted that the District is not relying solely on the
Financial Advisor and that there are many staff members overseeing the
refinancing and the District would not be led astray. Director Thompson added
that the conflict does not exist in this situation as this is a refinancing of an
existing issuance. This issuance is already a set amount and the District is just
trying to attain a lower interest rate on the debt. He also noted that contingent
fees are customary and a standard operating procedure as it saves the public
from paying for services that it did not receive.
A motion was made by Director Smith, seconded by Director Thompson and
carried with the following vote:
Ayes: Directors Croucher, Lopez, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve staffs’ recommendation.
ACTION ITEMS
9. BOARD
a) DISCUSSION OF THE 2016 BOARD MEETING CALENDAR
There were no changes to the board meeting calendar.
INFORMATIONAL ITEM
10. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR
INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE
FOLLOWING AGENDA ITEMS:
a) REVIEW INFORMATION GATHERED AND PREPARED IN THE
UPDATING OF THE INTEGRATED WATER RESOURCES PLAN (IRP)
FOR IDENTIFYING AND EVALUATING CURRENT AND POTENTIAL
WATER SUPPLIES FOR THE DISTRICT
Senior Civil Engineer Steve Beppler introduced Megan Brown, Corrollo
Engineers, who is assisting staff in updating the District’s Integrated Water
Resources Plan (IRP) for FY 2015. He stated that staff is concluding the update
and wished to receive the board’s input on the IRP before it is finalized. He
stated there has been a number of potential water resources that have been
investigated and those that are determined viable have been included in the IRP.
The Plan also reflects current water usage, which has been reduced due to the
5
State Governor’s mandate to conserve water and an analysis of any water supply
gap. Mr. Beppler stated staff will review the District’s existing water resources,
its supplies versus demands into the future, and options to expand supplies as
needed. He reviewed the District’s water supply sources for both potable and
recycled (see slide number 7 in attached presentation to the staff report) and the
capacity from each source. He noted that CWA has increased San Diego
County’s water supply reliability through diversification and today, only 30% of
the County’s water resources is imported from the Metropolitan Water District
(MWD). In 1991 San Diego imported 95% of its water supply resources from
MWD (see slide number 8 for the San Diego County’s current supply resources
which includes conservation, desalination, recycled water, transfer agreements,
etc.).
Mr. Beppler indicated that water supply demand has dropped quite a bit since the
development of the 2007 IRP due to conservation associated with drought.
Water demand peaked at approximately 40,000 acre fee per year (AF/year) in
2006 and it is not expected that the District will rebound to the 2006 levels by
2050. Current demand is similar to the 1999 demand level of 32,000 AF/year.
Staff projects, based on current demand levels, that there will not be a shortage
in water supplies in the near future.
Ms. Brown reviewed the District’s future water supply options, which included
conservation, groundwater, imported potable water, indirect/direct potable reuse
of local supplies, potable water treatment options, ocean desalination and
recycled water for non-potable use.
In response to an inquiry from Director Smith, General Manager Watton indicated
that the only water supply that the State Water Board provides CWA credit for is
the Carlsbad desalination water. The credit for this water is distributed to each of
CWA’s member agencies.
In response to an inquiry from Director Robak, staff indicated that the District is
currently researching the cost to convert the Ralph W. Chapman Water
Recycling Facility to potable level treatment and the results of that study are still
pending.
It was discussed that the District is not required to do an IRP, however, staff
believes that it is good to prepare an IRP as it makes the District aware of its
supply options and assures that water supplies can meet future growth
requirements. It is a good planning document for the District. It is expected that
the finalized IRP will be presented to the board for final adoption around June
2016.
REPORTS
11. GENERAL MANAGER’S REPORT
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General Manager Watton presented information from his report. He reported on
the District’s emergency preparedness, disaster recovery for business continuity,
Senate Bill 272, the Government Finance Officers Association Award for the
District’s budget, CWA’s planned seven day treated water shutdown, APCD’s
inspection, and the District’s conservation target.
He also indicated that he has provided handouts on the dias and the first is a
powerpoint presentation from CWA on water supply conditions and drought
response activities and a memo from the California Special District’s Association
calling for nominations for Seat B on their Board of Directors.
CWA Report
General Manager Watton indicated that much of the discussions at CWA has
been on MWD’s proposed rates and their water sales budget. MWD’s water
sales budget is at an all-time low which will impact rates. CWA is concerned that
MWD would like to adjust their treatment rates, which would impact Otay as the
District buys treated water. MWD has not taken an action on their rates, but they
continue to propose rates that disadvantage CWA. CWA may need to file
another lawsuit against MWD on their rates and may need to continue to file
each year until the appellate court rules on the lawsuit CWA had won last year.
He also shared that CWA hired a new General Counsel, Mr. Mark Hattam. Mr.
Hattam is a very experienced lawyer who has handled water matters for CWA
and, more extensively, for the Imperial Irrigation District. He indicated that he felt
CWA will be very well served by Mr. Hattam.
Director Croucher indicated that CWA has also been focused on the El Niño
storms and if the amount of rain and snow from the storms will be enough to end
the drought. He noted in Sacramento the deadline for the introduction of new
bills closed and 2000 new bills has been received by the legislature since
January. This is in addition to the 1000 bills that were carried over from last year.
He also shared that the Water Education Foundation will host an Executive
Briefing on March 17, 2016 and suggested that this event may be something the
President of the Board or his designee might consider attending. He indicated
that the discussions will focus on the “new normal,” climate change, water
strategies and investing in the future. He stated that it sounds like it will be a
worthwhile event.
12. DIRECTORS' REPORTS/REQUESTS
Director Robak indicated that the Union-Tribune has been publishing each of the
CWA member agencies per capita water use almost on a monthly basis (based
on the State report) and Otay WD’s per capita water use in January 2016 was
54.4 gallons per person. He stated a recent article indicates, in comparison to
January 2013, Otay WD is cumulatively above its conservation target of 20% and
most of the agencies are still cumulatively meeting their targets, but there are
some that are not. He inquired if the State has levied any penalties to those that
7
are not meeting their conservation target. General Manager Watton indicated
that the only agency that has received a penalty notice, that he is aware of, is
Rainbow MWD. Rainbow MWD forwarded a response to the penalty notice
inquiring the legal authority the State Water Resources Control Board has to levy
fines and the State Board withdrew the penalty. Director Robak also noted the
invite to the Water Reliability Coalition's 3rd Annual Spring Reception scheduled
on March 31. He stated that it is a worthwhile event to attend.
Director Croucher thanked staff for the tour of the Ralph W. Chapman Water
Recycling Facility. He stated that the tour included a history of the facility and it
was very worthwhile.
Director Smith reported, besides the regular meetings he attends (board and
committee meetings), he and President Thompson met with Sweetwater
Authority on February 2 to discuss common water projects and how our agencies
could coordinate with the City of Chula Vista for future water projects through the
Chula Vista Interagency Water Task Force. He noted that the next meeting of
the Task Force is scheduled this month.
13. PRESIDENT’S REPORT
President Thompson indicated that he has submitted a written report for the
meetings he has attended during the month of February 2016. His report is
attached.
14. CLOSED SESSION
The board recessed to closed session at 5:23 p.m. to discuss the following
matters:
a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section
54956.9:
1 CASE
b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION: PERIODIC AND
CUSTOMARY REVIEW IN DUE COURSE [GOVERNMENT CODE
§54957.6]
TITLE: GENERAL COUNSEL
The board reconvened at 6:39 p.m. and General Counsel Dan Shinoff reported
that the board met in closed session and took no reportable actions.
15. ADJOURNMENT
8
With no further business to come before the Board, President Thompson
adjourned the meeting at 6:39 p.m.
___________________________________
President
ATTEST:
District Secretary
9
President’s Report
March 2, 2016 Board Meeting
A) Meetings attended during the Month of February 2016:
1) February 2: Met with Sweetwater Authority to discuss
agenda matters for the March 7, 2016 Chula Vista
Interagency Task Force Meeting. Attendees: Director Smith
and General Manager Watton
2) February 3: OWD Regular Board Meeting
3) February 16: Attended the District’s Finance,
Administration and Communications Committee. Reviewed,
discussed, and made recommendation on items that will be
presented at the March board meeting.
4) February 17: Attended the Cross Border Environmental Forum
held at CILA’s offices in Imperial Beach. Attendees:
Director Lopez, General Manager Watton, Chief of
Engineering Posada, Environmental Compliance Specialist
Coburn-Boyd.
5) February 25: Attended the State of the County Address.
6) February 26: Board Agenda Briefing. Met with General
Manager Watton, General Counsel Dan Shinoff, and Attorney
Jeanne Blumenfeld to review items that will be presented at
the March board meeting.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: May 4, 2016
SUBMITTED BY:
Jose Martinez, Assistant
Chief of Water Operations
PROJECT: DIV. NO. All
APPROVED BY:
Pedro Porras, Chief of Water Operations
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: AUTHORIZE AGREEMENT WITH KIRK PAVING FOR ANNUAL AS-NEEDED
PAVING SERVICES
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize entering into an agreement with Kirk
Paving in an amount not to exceed $200,000 for as-needed asphalt
paving services from July 1, 2016 through June 30, 2017.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To present bid results and request that the Board authorize
entering into an agreement with Kirk Paving, Lakeside, CA for as-
needed asphalt paving services from July 1, 2016 through June 30,
2017 in an amount not to exceed $200,000.
ANALYSIS:
As a regular course of business, the District is required to
maintain and repair its water delivery infrastructure. Routinely
this work requires the removal and re-installation of asphalt
paving in public roadways. It has been shown more effective and
efficient for the District to use outside contractors for its
asphalt paving work. Therefore, the District has used outside
asphalt paving contract services for more than eleven (11) years.
As-needed paving services have been included in the FY 2017
Operating Budget under Contracted Services. The FY 2017 budget for
annual as-needed paving under Contracted Services is $200,000.
In accordance with the District’s purchasing requirements, a
notice was published and bids were solicited for this work on a
“unit price” basis. On March 21, 2016 contractors attended a
mandatory pre-bid meeting and on April 1, 2016 bids were received
and publicly opened with the following results from three (3)
bidders:
Bidder Weighted
Score
Kirk Paving, Lakeside 397.34
Frank and Son Paving, Bonita 460.10
ABC Construction, San Diego 487.14
The responsive bidder with the lowest weighted score is determined
to be the lowest responsible bidder, in this case it is Kirk
Paving, of Lakeside, CA.
Kirk Paving served as the FY 2016 as-needed paving service
contractor for the District and has performed all required work
with no issues noted. Staff is confident that they will be able
to perform the required work.
Bids have been submitted on a unit-cost basis for the different
types of work typically required during paving. The types of work
are assigned a weight factor based on the District’s experience of
the frequency they will be employed during the term of the
agreement and these weights are multiplied by the unit cost to
determine a unit score. Unit scores are totaled to provide the
overall score of the bid and the contractor with the lowest overall
score is the low bidder. Please refer to Attachment B.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The FY 2017 budget request includes $200,000 for as-needed paving
services. The project manager has projected that this requested
amount is sufficient to cover the anticipated expenses for the
paving needs in the 2017 fiscal year.
STRATEGIC GOAL:
Strategy: Stewards of Public Infrastructure.
Goal: Conduct the best practice preventative maintenance
activities.
LEGAL IMPACT:
None.
Attachment A: Committee Action Form
Attachment B: FY 2017 As-Needed Paving Services Score Sheet
ATTACHMENT A
SUBJECT/PROJECT: AUTHORIZE AGREEMENT WITH KIRK PAVING FOR ANNUAL AS-
NEEDED PAVING SERVICES
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee reviewed
this item at a meeting held on April 19, 2016, and the following
comments were made:
Staff reviewed the staff report with the Committee and stated
that the purpose of this item is to present bid results and
request that the Board authorize entering into an agreement with
Kirk Paving, Lakeside, CA for as-needed asphalt paving services
from July 1, 2016 through June 30, 2017 in an amount not to
exceed $200,000.
In response to a question by the Committee, staff indicated that
the the overall total score for Kirk Paving dropped from 501 last
year to 397.34 indicating that the overall unit cost has
decreased.
The Committee inquired if staff has looked into multi-year
agreements for paving services as opposed to single-year
agreements. Staff stated that they have considered multi-year
agreements for paving services but determined that based on the
current workflow and process the costs have continued to trend
lower each year rather than be locked for two years. Most
importantly, single-year agreements also make it easier to
project various costs for raw materials as they are looked at
annually.
Following the discussion, the Committee supported staffs’ recommendation
and presentation to the full board as a consent item.
ATTACHMENT B
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: May 4, 2016
SUBMITTED BY:
Dan Martin
Engineering Manager
PROJECT:
R2084-001103
DIV. NO. 1
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Reimbursement Agreement with Baldwin & Sons, LLC, a California
Limited Liability Company, for a Portion of the Capital
Improvement Program Project RecPL - 20-Inch, 680 Zone,
Village 2 – Heritage/La Media, Project Location Santa Victoria
Road
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
approve the request for the General Manager to execute a
Reimbursement Agreement with Baldwin & Sons, LLC, a California
Limited Liability Company (Baldwin & Sons) for the construction of a
20-inch recycled water pipeline on Santa Victoria Road between Santa
Carolina Road and Santa Alexia Avenue, for a portion of the Capital
Improvement Program Project RecPL - 20-Inch, 680 Zone, Village 2 –
Heritage/La Media, in an amount of $265,994.40 (see Exhibit A for
Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a
Reimbursement Agreement (see Attachment C) with Baldwin & Sons, for
reimbursement of construction costs for a 20-inch recycled water
pipeline on Santa Victoria Road between Santa Carolina Road and Santa
2
Alexia Avenue, for a portion of the Capital Improvement Program
Project RecPL - 20-Inch, 680 Zone, Village 2 – Heritage/La Media, in
an amount of $265,994.40.
ANALYSIS:
Baldwin & Sons is developing Otay Ranch Village 2. As part of this
development, the District required the developer to prepare a Sub-
Area Master Plan (SAMP) to document the potable and recycled water
demands, existing facilities, and recommended facilities associated
with servicing the development. The Otay Ranch Village 2 SAMP was
approved by the District in June 2006. The approved SAMP also
identified the District’s Capital Improvement Program (CIP)
facilities, as defined by the District’s approved Water Resources
Master Plan, that are to be constructed concurrent with the Otay
Ranch Village 2 improvements. The Otay Ranch Village 2 CIP
facilities eligible for reimbursement includes the construction of a
20-inch recycled water pipeline in Santa Victoria Road).
Since the Developer is currently required to improve Santa Victoria
Road, the Developer has agreed to install approximately 2,000 linear-
feet of the 20-inch recycled water pipeline and enter into a
Reimbursement Agreement (see Attachment C) per Policy No. 26 with the
District.
In compliance with Policy No. 26, the Developer has received three
responsive bids for the pipeline construction and submitted copies to
the District. Staff evaluated and certified that the bids are in
compliance with Policy No. 26 requirements. The total reimbursable
bid items and soft costs for each of the responsive bidders is as
follows:
CONTRACTOR BID AMOUNT SOFT COSTS
(5% PER POLICY 26)
TOTAL
Cass Construction Inc. $253,328.00 $12,666.40 $265,994.40
LB3 Enterprises Inc. $276,972.00 $13,848.60 $290,820.60
Shilling - Paradise $296,774.00 $14,838.70 $311,612.70
In accordance with Policy No. 26, Baldwin & Sons is responsible for
selecting the lowest responsive and responsible bidder and will be
reimbursed for the CIP portions of the Project based on the unit
prices submitted with the lowest responsive responsible bid.
The District will inspect the contractors work for compliance with
the District’s approved plans and facilitate coordination with the
contractor and developer.
3
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP R2084, as recommended in the draft Fiscal
Year 2017 budget is $365,000. Expenditures to date are $599. Total
commitments to date, including this Agreement, are approximately
$330,994 (see Attachment B for budget detail).
The Project Manager anticipates that, based on the attached financial
analysis, the proposed budget, if approved by the Board will be
sufficient to support this Project.
Finance Department has determined that, under the current rate model,
100% of the funding will be available from the Expansion Fund.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
the best quality of water and wastewater service to the customers of
the Otay Water District in a professional, effective, and efficient
manner” and the District’s strategic goal, “To satisfy current and
future water needs for potable, recycled, and wastewater services.”
LEGAL IMPACT:
None.
DM/RP:mlc
P:\WORKING\CIP R2084 Santa Victoria Reimbursement\Staff Reports\BD 5-4-16, Staff Report, Baldwin
Reimbursement
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Attachment C – Reimbursement Agreement
Exhibit A – Location Map
ATTACHMENT A
SUBJECT/PROJECT:
R2084-001103
Reimbursement Agreement with Baldwin & Sons, LLC, a
California Limited Liability Company, for a Portion of the
Capital Improvement Program Project RecPL - 20-Inch, 680
Zone, Village 2 – Heritage/La Media, Project Location Santa
Victoria Road
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on April 19, 2016,
and the following comments were made:
Staff reviewed the staff report with the Committee and stated
that the purpose of this item is to obtain Board authorization
for the General Manager to enter into a Reimbursement Agreement
(See attachment C) with Baldwin & Sons, for reimbursement of
construction costs for a 20-inch recycled water pipeline on
Santa Victoria Road between Santa Carolina Road and Santa Alexia
Avenue.
In response to several questions from the Committee, staff
stated that the reimbursement agreement for the construction of
regional Capital Improvement Program (CIP) facilities as
included in this Developer project is routine and very standard.
The District had processed similar reimbursement agreements back
in 2006 and 2007 when there were many active developer projects.
Staff indicated that more new developments are beginning
construction in the City of Chula Vista, and that some developer
projects will require these type of reimbursement agreements.
In response to a question that was asked from the Committee
about prevailing wage requirements associated with the
reimbursement of the CIP project, Legal Counsel responded
affirmatively that the Developer is responsible for complying
with all federal, state, and local laws, including the
California Labor Code. The agreement (Attachment C to the staff
report) includes language regarding compliance with applicable
laws.
Following the discussion, the Committee supported staffs’
recommendation and presentation to the full board as a consent item.
5
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
R2084-001103
Reimbursement Agreement with Baldwin & Sons, LLC, a
California Limited Liability Company, for a Portion of the
Capital Improvement Program Project RecPL - 20-Inch, 680
Zone, Village 2 – Heritage/La Media, Project Location Santa
Victoria Road
Date: April 5, 2016
Budget
365,000
Planning
- - - -
- - - -
Total Planning - - - -
Design 001102
- - - -
- - - -
Total Design - - - -
Construction
Conversion Cost Type - - -
Labor 65,000 599 64,401 65,000
Reimbursement Agreement 265,994 - 265,994 265,994 Baldwin & Sons, LLC
Total Construction 330,994 599 330,395 330,994
Grand Total 330,994 599 330,395 330,994
Vendor/Comments
Otay Water District
R2084-RecPL - 20-Inch, 680 Zone, Village 2-Heritage/La Media
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
Page 1 of 6
REIMBURSEMENT AGREEMENT
For
CAPITAL IMPROVEMENT PROGRAM WATER FACILITIES
Associated With
BALDWIN & SONS, LLC AT OTAY RANCH VILLAGE 2 SOUTH BBIP
R2084
This Reimbursement Agreement (“Agreement”) is entered into as of this _____ day of
___________, 2016, by and between the Otay Water District, a Municipal Water District formed
under the Municipal Water District Act of 1911 (“District”) and Baldwin & Sons, LLC a
California Limited Liability Company, with an address at 610 West Ash St., Suite 1500, San
Diego, CA 92101 (“Developer”), in view of the following facts and for the following purposes:
RECITALS
A. District’s Board of Directors has adopted a Master Plan and approved a Capital
Improvement Program (“CIP”) for all regional water facilities (“Planned CIP Facilities”)
throughout the District. There are a number of Planned CIP Facilities within and adjacent to Otay
Ranch Village 2 South BBIP (the “Development”), which Developer will construct within
District’s service area in the City of Chula Vista, California (the “Required CIP Facilities”).
B. In connection with the Development and the Required CIP Facilities, Developer
was required to complete a Sub-Area Master Plan (the “SAMP”) upon which the Required CIP
Facilities are identified. If required, the SAMP has been completed, is entitled “Subarea Water
Master Plan of Potable and Recycled Water for Otay Ranch Village 2,” dated June 1, 2006, and is
incorporated herein by reference. Developer will complete the Required CIP Facilities as
identified in the SAMP, if any, or/and as depicted or described in Exhibit A attached hereto.
C. Developer intends to develop its property, which will include substantial public
improvements, including the construction of certain Required CIP Facilities, as more fully
depicted or described in Exhibit B.
D. Developer recognizes that District will need to construct regional facilities to
support this Development, typically in advance of the Developer paying all capacity fees.
E. Developer shall conform to, and comply with, all of the conditions set forth in
District’s current Policy 26, attached hereto as Exhibit C.
F. Developer shall comply with all terms and conditions in the current District’s Code
of Ordinances and in the District’s Standard Specifications.
G. Developer agrees to encourage participation by Emerging Business Enterprises on
construction contracts related to this Agreement.
H. In coordination with this Agreement, Developer and District have entered into that
certain Agreement Otay Ranch Village 2 South BBIP for Construction of a Water System dated
March 16, 2016 (“Construction Agreement”), wherein Developer’s obligations regarding the
construction and completion of the Required CIP Facilities are more fully set forth. The Parties
Page 2 of 6
acknowledge that, where the terms and conditions of this Agreement conflict with the Construction
Agreement on matters pertaining to construction and completion of the Required CIP Facilities,
the Construction Agreement will control. Similarly, where the terms and conditions of the
Construction Agreement conflict with this Agreement on matters pertaining to the reimbursement
of Developer by District, this Agreement will control.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the above Recitals and of the promises and
agreements contained herein, and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, District and the Developer do hereby promise and
agree as follows:
1. Project Cost and Construction
Developer shall design, construct, install, and complete the Required CIP Facilities
in the manner more fully set forth in the Construction Agreement, and shall provide all funds
needed for the design, construction, installation, and completion of the Required CIP Facilities. In
order to remain eligible for reimbursement as provided under this Agreement, the Required CIP
Facilities must be constructed and completed within the time provided in the Construction
Agreement. Furthermore, to remain eligible for reimbursement, Developer must construct the
Required CIP Facilities in compliance with all applicable laws, rules and regulations. The
estimated cost of the Required CIP Facilities, as set forth in the Construction Agreement, is Two
Hundred Sixty-Five Thousand Nine Hundred Ninety-Four Dollars and forty cents ($265,994.40).
2. Reimbursement
Developer shall be entitled to reimbursement for the cost and expense of
constructing and completing the Required CIP Facilities consistent with District’s Policy No. 26
and consistent with the Construction Agreement. Except as provided in Policy 26, the District will
pay 100% of the reimbursement cost after the General Manager accepts the project and the Board
approves the request for reimbursement.
Developer shall submit a request for reimbursement in writing to District and shall
attach all documents necessary to demonstrate, to the satisfaction of District, that the Required CIP
Facilities have been completed and accepted and the costs and expenses have been actually and
reasonably incurred. The necessary documents shall include (i) copies of bid documents, (ii)
invoices, (iii) unconditional lien releases, and (iv) any other documentation as requested by the
District.
3. Termination
If not otherwise earlier terminated, this Agreement shall terminate on the earlier of
(i) the date on which the reimbursements contemplated herein have been paid, or (ii) five (5)
calendar years from the date first set forth above, which shall be the date of Board approval;
however, all of Developer’s warranties and indemnification obligations shall remain in effect until
terminated in accordance with their respective terms. District may terminate this Agreement and
its obligations upon thirty (30) days written notice to Developer, if the General Manager
Page 3 of 6
determines that Developer has failed to comply with its obligations under this Agreement or under
the Construction Agreement.
4. Plan Submittal
Developer shall be required to adhere to District’s process for submittal of
improvement plans, which includes securing bonding for all facilities to be constructed,
construction agreements, deposits for District staff time and project acceptance.
5. Record Keeping
Developer shall keep an accurate record of the actual costs to construct the Required
CIP Facilities for which reimbursement is requested, in accordance with generally accepted
accounting procedures. Developer shall allow an authorized District representative, during
Developer’s regular business hours and upon reasonable notice, to examine and duplicate any
records relevant to verifying the actual cost to construct the Required CIP Facilities, including,
without limitation, all contract bids and invoices. Any changes occurring during construction shall
be properly documented. Back-up documentation shall be kept by Developer for four (4) years
after the completion of the Required CIP Facilities and be provided to District for its review upon
its request.
6. Change Orders
No change orders will be permitted unless the change order results from a change
in the work, design or specifications initiated by District during the construction of the Required
CIP Facilities.
7. General Provisions
a. Incorporation of Recitals and Exhibits. The recitals set forth above and all
exhibits referenced in this Agreement are hereby incorporated by reference into this
Agreement to be given the same force and effect as if fully set forth herein.
b. Amendments. No amendment, modification, supplement, termination or
waiver of any provision of this Agreement shall be effective unless executed in writing by
both parties and then only in the specified instance and for the specific purpose given.
c. Notices. Any demand upon or notice required or permitted to be given by
one party to the other party shall be in writing. Except as otherwise provided by law, any
demand upon or notice required or permitted to be given by one party to the other party in
connection with this Agreement shall be effective (i) on the date a personal delivery is
accepted; (ii) on the date a facsimile of the notice is sent, or on the next business day if the
fax is sent after 5:00 p.m. or on a Saturday, Sunday or holiday, provided that receipt and
confirmation of the facsimile transmission is attached to a copy of the faxed notice; (iii)
on the second business day after mailing by certified or registered United States mail, return
receipt requested; or (iv) on the succeeding business day after mailing by Express Mail or
after deposit with a private delivery service of general use (e.g., Federal Express), postage
or fee prepaid as appropriate, addressed to the party at the address shown below:
Page 4 of 6
If to District: Otay Water District
2554 Sweetwater Springs Boulevard
Spring Valley, California 91978-2004
Attn: General Manager
If to Developer: Nick Lee
Baldwin & Sons, LLC
A California Limited Partnership
610 West Ash St
San Diego, California 92101
Telephone: (619) 234-4050
Facsimile: (619) 234-4088
Notice of change of address shall be given by written notice in the manner set forth in this
paragraph.
d. Indemnity. Developer agrees to defend (with attorney’s approved by
District), indemnify, protect, and hold harmless District, its elective and appointive boards,
officials, officers, agents, and employees from and against any and all claims asserted or
liability established after actual trial which arise from or are connected with or are caused
or claimed to be caused by Developer or its agents, officers or employees, in the
construction of the Required CIP Facilities, or any part thereof, and all expenses of
investigation and defending against same; provided, however, that Developer’s duty to
defend, indemnify and hold harmless shall not include any claims or liability determined
to be due to the sole or active negligence of the District, its elective and appointive boards,
officials, officers, agents, and employees.
e. Applicable Law and Venue. This Agreement and each provision herein
shall be interpreted in accordance with the laws of the State of California without regard to
its conflict of laws principles. The Parties agree that the proper venue for the resolution of
any disputes under this Agreement shall be with the Superior Court of the County of San
Diego.
f. Successors and Assigns. This Agreement and all of the terms, conditions,
and provisions hereof shall inure to the benefit of and be binding upon the parties hereto,
and their respective successors and assigns; provided, however, that no assignment of this
Agreement shall be made without written consent of the parties to this Agreement. Any
attempt by the Developer to assign or otherwise transfer any interest in this Agreement
without the prior written consent of the District shall be void.
g. Counterparts. This Agreement may be executed in multiple counterparts,
each of which counterpart, if fully executed, shall be deemed an original. No counterpart
shall be deemed to be an original or presumed delivered unless and until the counterpart
executed by the other party to this Agreement is in the physical possession of the party
seeking enforcement thereof.
Page 5 of 6
h. Effective Date. This Agreement shall not bind the parties and become
effective until such time as the authorized representative of Developer has executed the
Agreement, and District has approved and the authorized representative of District has
executed this Agreement.
i. Corporate Authority. The persons executing this Agreement on behalf of
the parties hereto represent and warrant that: (i) such party is duly organized and existing;
(ii) they are duly authorized to execute and deliver this Agreement on behalf of said party;
(iii) by so executing this Agreement, such party is formally bound to the provisions of any
other Agreement to which said is bound.
j. Waiver. The waiver of any term, condition or provision of this Agreement
is valid only as to that specific waiver and does not constitute a waiver of, and shall not be
construed to waive, any other term, condition or provision of this Agreement.
k. Compliance with Applicable Laws. Developer agrees to comply with all
federal, state and local laws, rules, regulations and ordinances that are now or may in the
future become applicable to Developer, Developer’s business, equipment and personnel
engaged in activities covered by this Agreement or arising out of the performance of such
activities, including the California Labor Code. Where approval by the District or a District
official is required, it shall be deemed general approval only and does not relieve Developer
of responsibility for compliance under this Section.
[Remainder of page intentionally left blank]
Page 6 of 6
IN WITNESS WHEREOF, this Agreement is executed by District and by Developer as of
the date first above written.
OTAY WATER DISTRICT
A California Municipal Water District
By: ___________________________
General Manager
Approved as to Form:
_________________________________
General Counsel
BALDWIN & SONS, LLC
A CALIFORNIA LIMITED LIABILITY COMPANY
By: ___________________________
Its Vice President
Date: ___________________________
OTAY WATER DISTRICT20-INCH RECYCLED WATER MAINLOCATION MAP
EXHIBIT A
CIP R2084F
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R2084RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media
Stephen Beppler
6/2/2004
R2083, R2085
1
22
2
$365,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
I.D. LOCATION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Construction of approximately 2,000 feet of 20-inch pipeline within the 680 Pressure Zone in Village 2 in Santa Victoria Road
from Santa Carolina Road to Santa Alexia Avenue.
JUSTIFICATION OF PROJECT:
This project will provide transmission capacity for the recycled water supply pumped from the 680-1 Pump Station to the 680 and
higher pressure zones. Significant energy savings will occur due to lower total dynamic head requirements for the 680-1 Pump
Station. Funding opportunity is the United States Bureau of Reclamation Water Reclamation and Reuse Program, Title XVI of
P.L. 102-575.
COMMENTS:
This is a developer driven project. A reimbursement agreement is expected to be considered by the Board in FY 2017.
Developer budget is 2,000 LF at a cost of $150 per foot for a total of $300,000
Inspection and staff budget is $65,000
This CIP budget was reduced from $970,000 to $365,000 for the FY 2017 CIP budget.
FUNDING SOURCE: Expansion Betterment Replacement New Water Supply Total
Expansion 100 % 0 %0 % 0 % 100 %
TOTAL:100 % 0 % 0 % 0 % 100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2017 2018 2019 2020 2021 2022 Total
$10 $40 $315 $0 $0 $0 $365
PRIOR YEARS:
TOTAL
$0
OTAY WATER DISTRICT
CAPITAL IMPROVEMENT PROGRAM
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
PURPOSE
This policy establishes guidelines for how the District will
administer reimbursement agreements for facilities, both Master Plan
and Non-Master Plan. It also describes when and how the District will
participate in the cost of such facilities.
BACKGROUND
Policy 26 requires that development which creates the need for new
facilities must bear all costs to construct and finance the on-site,
in-tract and off-site water, wastewater, and recycled water systems.
“On-site” facilities are defined as those pipelines, pump stations and
reservoirs required within a developer’s project boundaries. “Off-
site” facilities are those facilities located outside a project's
boundary that are required to serve the project. “In-tract”
facilities are defined as those non-regional facilities that serve
only the project being constructed. These facilities are typically 6
inch through 12 inch pipelines. In-tract facilities are the sole
responsibility of the developer/property owner until the facilities
and all required property easements are dedicated to, and accepted by,
the District pursuant to authority granted by the Board to the General
Manager.
The District's Master Plan includes all regional on-site and off-site
facilities anticipated to be necessary to provide service throughout
the District. The District's capacity fees have been calculated to
pay for the cost of all the regional facilities identified in the
Master Plan including the developer/property owner portion of such
facilities. The District does not subsidize development but it does
undertake responsibility to insure that those regional facilities
necessary to serve a particular development are constructed and that
the costs associated with the construction of said facilities is
fairly distributed among all users.
POLICY
A. Master Plan Facilities-Reimbursement by the District: For
facilities identified in the Master Plan, both on-site and off-site,
the District may reimburse the developer for construction and design
costs if the project meets the following guidelines:
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page2of7
1. The project must be in the District’s approved five-year Capital
Improvement Program (CIP) at the time of the request, and shall
not exceed the CIP budget amount without prior Board approval.
2. The District has approved a Sub-Area Master Plan (SAMP) and any
required maps, upon which the facilities are clearly described.
3. The developer makes an irrevocable offer to dedicate the
facilities and any easements required for the operation and
maintenance of the facilities to the District, which offer is
accepted by the General Manager and all applicable language and
documentation of the dedication(s) is prepared and recorded, all
in the manner authorized by the Board.
4. The developer enters into an Agreement for Construction of a
Water System with the District.
5. The developer/property owner obtains bids from qualified
contractors and provides copies of the bids to the District. The
developer/property owner is responsible for selecting the lowest
responsive responsible bidder. The developer/property owner will
be reimbursed for the CIP portions of the project based on the
unit prices submitted with the lowest responsive responsible bid.
6. The cost of addressing environmental issues, such as burying a
reservoir, shall not be reimbursable unless they are currently
addressed in the District's Master Environmental Impact Report
and CIP.
7. All soft costs, such as engineering, inspection, bonds, etc.,
will be included in the reimbursement cost at five percent of the
construction costs.
8. Except as provided below, the District will pay 100 percent of
the reimbursement cost after the General Manager accepts the
project.
9. The District may elect to finance the facilities by borrowing if,
after analysis by the Finance Department, it is determined that
the borrowing fits into the District's financial plan as outlined
in Policy 25.
10. If for any reason reimbursement funds are not vailable at the
time the project is operationally complete, the District may
elect to defer or a portion of the reimbursement the District
determines is due the developer until the General Manager accepts
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page3of7
the dedication of the project and until all liens, claims and/or
bonds, as applicable, have been released in the manner provided
under the Agreement for Construction of a Water System.
11. Funds for reimbursement shall be carried as a CIP until the
reimbursement is made.
12. Each reimbursement agreement requires approval by the Board. A
Staff Report will be prepared and reviewed with the Finance
Department prior to presentation to the Board for approval.
13. This type of reimbursement agreement ends five (5) years after
Board’s original approval. The reimbursement agreement may be
terminated prior to said (5) year term by the General Manager
upon a determination that the developer has failed to comply with
its obligations under the Reimbursement Agreement or the
Agreement for Construction of a Water System.
14. If the reimbursement agreement expires prior to the facilities by
the District or prior to payment of reimbursement, the Developer
shall no longer be entitled to reimbursement. The Developer may
submit new documentation andrequest that the District enter into
a new reimbursement agreement. If the District agrees to enter
into a new reimbursement agreement for the facilities, however,
the District may revise the terms and amounts of reimbursement at
its discretion based on information available at the time of the
request.
15. All reimbursement requests shall be submitted to the Board for
consideration and shall not be processed without prior Board
approval.
B. Non-Master Plan Facilities-Reimbursement to Developer by Future
Users: Occasionally, a developer/property owner requests the District
to administer a reimbursement agreement to collect money from future
customers who connect to the facility built by the developer/property
owner. If the District agrees, the District collects the
reimbursement amount from each customer connecting to the facility,
together with any other District connection fees. The reimbursement
portion of the customer’s payment is forwarded by the District to the
developer/property owner as reimbursement.
The District may administer this type of reimbursement agreement if
the developer/property owner's project meets the following criteria
and guidelines:
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page4of7
1. The developer/property owner demonstrates the facilities to be
constructed have adequate capacity to serve future customers.
2. The developer/property owner requests and executes a
reimbursement agreement, which is presented to the Board for
approval in conjunction with the presentation of an agreement to
construct.
3. The property owner deposits with the District the estimated cost
for District staff to prepare a nexus study and obtain Board
approval for the reimbursement agreement. District staff will
provide a written estimate of the required deposit to the
property owner within 15 days of the property owner’s request.
4. The property owner provides three (3) bids from qualified
contractors for the purpose of establishing the cost of the
facilities and the portion of the reimbursement amount which is
to be allocated to future connections.
5. A nexus study shall be performed by District staff to identify
those who may benefit from the construction of the proposed
facility and the amount they shall reimburse the
developer/property owner who constructed the facility.
6. Prior to the public notice being sent to those property owners
affected by the reimbursement agreement, an informational staff
report will be presented to the Board.
7. The District shall notice all those property owners that will be
subject to the reimbursement charge. These property owners will
then be responsible to pay their fair share of the cost of the
facilities at such time as they connect to the system. The fair
share will be based on their Assigned Service Unit/Equivalent
Dwelling Unit (ASU/EDU) contribution to the total projected
ASU/EDU to use the system. The reimbursement charge will be in
addition to any other fees a property owner would pay to the
District to obtain service.
8. Each reimbursement agreement requires approval by the Board.
Prior to presenting a reimbursement agreement to the Board, staff
must obtain two originals signed by an authorized representative
of the developer/property owner. A Staff Report must then be
prepared and reviewed with the Finance Department prior to
presentation to the Board for approval.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page5of7
9. This type of reimbursement agreement shall be valid for 10 years
from the date of Board approval. After the 10 year period has
lapsed the collection of the reimbursement amount by the District
shall cease.
10. Concurrently with submission of a signed reimbursement agreement,
the developer/property owner must pay an administrative fee to
the District to defray costs related to the review of the request
and the negotiation and execution of the reimbursement agreement.
The amount of the administrative fee will be calculated at the
staff rate existing at the time of said submission.
11. In addition, concurrently with payment of the fee described
above, developer must pay a fee to defray costs estimated to be
incurred per each connection to be established during the term of
the reimbursement agreement. The amount of this fee will be
calculated based on an estimated 6 man hours per connection. The
staff rate in existence at the time the reimbursement agreement
is executed will be used as a base and it will be projected to
change each year to account for changes in the COLA, as
determined by the District’s finance department.
12. The District will not distribute any reimbursement funds to the
developer/property owner until the project has been accepted by
the Board. The distribution of reimbursement funds will occur as
the District collects the funds from new customers who connect to
the facility, but not more frequently than once per year.
13. District staff shall collect the reimbursement amount due at the
same time the standard District capacity fees for the new service
are collected.
14. If the reimbursement agreement expires prior to the facilities by
the District or prior to payment of reimbursement, the Developer
shall no longer be entitled to reimbursement. The Developer may
submit new documentation andrequest that the District enter into
a new reimbursement agreement. If the District agrees to enter
into a new reimbursement agreement for the facilities, however,
the District may revise the terms and amounts of reimbursement at
its discretion based on information available at the time of the
request.
15. All reimbursement requests shall be submitted to the Board for
consideration and shall not be processed without prior Board
approval.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page6of7
C. Non-Master Plan Facilities-Reimbursement to Developer by the
District: Normally the District would not participate in the cost of
facilities which are not identified in the Master Plan. These
facilities are of benefit only to the adjoining property and should
ordinarily be financed solely by the developer/property owner
proposing the new facility. Nonetheless, there may be circumstances
where the General Manager determines that it is appropriate for the
District to participate in the cost of a non-Master Plan facility.
Typical reasons would be in order to accommodate future growth or
betterment of the system. In these instances, the District may
establish special fees to recover the reimbursement costs from
benefiting property owners as they connect to the system.
The District may reimburse the developer/property owner for
construction costs if the project meets the following criteria and
guidelines:
1. The General Manager has determined that it is appropriate for the
District's customers to participate in the construction of the
project.
2. The developer/property owner shall obtain three (3) bids from
qualified contractors and provide copies of the initial bids to
the District. The developer/property owner is responsible for
selecting the lowest responsive bidder. The developer/property
owner will be reimbursed for the CIP portions of the project
based on the unit prices submitted with the lowest responsive
bid.
3. A nexus study will be performed by the District to identify those
property owners who may benefit from the construction of the
proposed facility.
4. Prior to the public notice being sent to those property owners
affected by the reimbursement agreement, an informational Staff
Report shall be presented to the Board.
5. The District shall notice all those property owners which will be
subject to the reimbursement charge. These properties will then
be responsible to pay their fair share of the cost of the
facilities, plus interest, at such time as they connect to the
system.
6. The developer/property owner shall request and execute the
reimbursement agreement with the District prior to awarding any
contracts for construction.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page7of7
7. Each reimbursement agreement requires approval by the Board. A
Staff Report shall be prepared and reviewed with the Finance
Department prior to presentation to the Board for approval.
8. Except as provided below, the District will pay 100 percent of
the reimbursement cost after the General Manager accepts the
project.
9. The District may elect to finance the facilities by borrowing, if
it is determined that borrowing is in the best interest of the
District's customers.
10. If for any reason reimbursement funds are not available at the
time the project is operationally complete, the District may
elect to defer the reimbursement until the General Manager
determines that it is appropriate to make payments.
11. Funds for reimbursement shall be carried as a CIP until the
reimbursement has been made.
12. This type of reimbursement agreement contains no end date for the
collection by the District of its contributed share of the cost,
and shall be the responsibility of all current and subsequent
property owners.
13. District staff shall collect the reimbursement amount due at the
same time the standard District capacity fees for the new service
are collected.
14. If the reimbursement agreement expires prior to the facilities by
the District or prior to payment of reimbursement, the Developer
shall no longer be entitled to reimbursement. The Developer may
submit new documentation andrequest that the District enter into
a new reimbursement agreement. If the District agrees to enter
into a new reimbursement agreement for the facilities, however,
the District may revise the terms and amounts of reimbursement at
its discretion based on information available at the time of the
request.
15. All reimbursement requests shall be submitted to the Board for
consideration and shall not be processed without prior Board
approval.
OTAY WATER DISTRICT20-INCH RECYCLED WATER MAINLOCATION MAP
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STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: May 4, 2016
SUBMITTED BY: Kevin Koeppen, Finance
Manager
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4300 Amending Policy No. 6, the Annual
Capital Improvement Program Development, of the District’s
Code of Ordinances
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4300 amending Policy No. 6, the
Annual Capital Improvement Program Development, of the District’s
Code of Ordinances.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To request that the Board adopt Resolution No. 4300 amending Policy
No. 6, the District’s Annual Capital Improvement Program Development,
which will increase the efficiency of the CIP process for Board
approved projects.
ANALYSIS:
As a normal course of business, the District reviews its policies to
ensure they are effective and efficient. During a recent review of
the District’s Annual Capital Improvement Program Development Policy
No. 6, staff noted that the General Manager’s authority to
redistribute CIP funds across projects was limited in that the annual
CIP budget was not exceeded. This limitation could result in undue
delays in the natural progression of these projects.
External circumstances such as environmental constraints, the economy
or developer plans can significantly impact the timing of CIP
projects. These circumstances can result in projects being
accelerated or delayed by months or even several years.
The District has set a strategic planning goal to spend 95% of the
annual CIP budget. As the District strives to attain the 95% goal,
it is more likely that the total fiscal year budget will be exceeded.
Circumstances may arise and could prevent the efficient progression
of CIP projects due to the need to obtain Board approval of projects
that are ready to move forward within their individual approved
budgets. This amendment is being recommended to prevent potential
delays in the prudent progression of CIP projects.
Staff is recommending that the General Manager be allowed to
redistribute CIP funds across projects as long as the expenditures do
not exceed the total individual Board approved project budgets and
the District has adequate reserves to fund the accelerated projects.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Demonstrate financial health through formalized policies, prudent
investing, and efficient operations.
LEGAL IMPACT:
None.
General Manager
Attachments:
A) Committee Action Form
B) Resolution No. 4300
Exhibit 1 – Policy No. 6 (Strike-through)
C) Proposed Policy No. 6
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4300 Amending Policy No. 6, the Annual
Capital Improvement Program Development, of the District’s
Code of Ordinances
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee
reviewed this item at a meeting held on March 17, 2016 and the
following comments were made:
Staff is proposing that the Board amend Policy 6, Annual
Capital Improvement Program (CIP) Development, of the
District’s Code of Ordinances, to increase the efficiency of
the CIP process for Board approved projects.
Staff indicated that a CIP project’s progression can be
impacted by environmental contraints, the economy, development
plans, etc. which can slow or speed up the project.
The General Manager currently has the authority to
redistribute CIP funds across projects and move budgets
forward as long as the annual CIP budget for individual
projects are not exceeded.
The District has modified its Strategic Plan goal for CIP
projects, setting a target of expending 95% of the fiscal year
CIP budget by the end of the fiscal year. With a more
aggressive CIP program, circumstance may arise that may
require that the fiscal year CIP budget be exceeded because a
project is now ready to be moved forward.
To prevent potential delays in moving a project forward due to
the need to obtain board approval, staff is proposing that the
General Manager be authorized to redistribute CIP funds, as
long as the expenditures do not exceed the total individual
Board approved project budgets and the District has adequate
reserves to fund the accelerated projects.
Staff noted that if the required funding to move a project
forward would exceed the project’s total approved budget, the
project would be presented to the board for approval of the
additional funding.
There was further discussion that funding is available in the
CIP reserves, they are just not budgeted to be expended in the
particular fiscal year. The committee felt the language in
the proposed policy was too general with regard to which
reserves would be utilized. The committee requested that
staff revisit this language and put in more narrow language.
Staff has revised the language to read, “as long as the total
budget of the project is not exceeded and there is adequate
funding in the CIP reserves.” The amended strike-thru
(Exhibit 1) and proposed (Attachment C) copies of Policy 6 is
attached to the staff report .
Upon completion of the discussion, the Committee supported staffs’
recommendation with the proposed language change to the policy
noted above. The committee supported presentation to the full
board on the consent calendar.
RESOLUTION NO. 4300
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT AMENDING POLICY 6
THE ANNUAL CAPITAL IMPROVEMENT PROGRAM
DEVELOPMENT OF THE DISTRICT’S CODE OF
ORDINANCES
WHEREAS, the Otay Water District Board of Directors has been
presented with an amended Policy No. 6 of the District’s Code of
Ordinances for the management of the Otay Water District; and
WHEREAS, the amended Policy No. 6 has been reviewed and
considered by the Board, and it is in the interest of the
District to adopt the amended policy; and
WHEREAS, the strike-through copy of the proposed policy is
attached as Exhibit 1 to this resolution; and
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by
the Board of Directors of the Otay Water District that the
amended Policy No. 6, incorporated herein as Attachment C, is
hereby adopted.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
Otay Water District at a board meeting held this 4th day of May
2016, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Attachment B
Page 1 of 2
________________________
President
ATTEST:
____________________________
District Secretary
Page 2 of 2
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
ANNUAL CAPITAL IMPROVEMENT PROGRAM
DEVELOPMENT
06 10/15/84 6/4/145
/4/16
Page 1 of 2
PURPOSE
To define the policy on the preparation and approval of the
annual Capital Improvement Program.
BACKGROUND
District staff develops and maintains a Water Resources Master
Plan (WRMP), an Integrated Water Resources Plan (IRP), and
Strategic Plan that collectively are used to prepare the annual
Capital Improvement Program (CIP) and to identify the CIP
projects required for ultimate build out. The WRMP is revised
every five years and adopted by the Board. Annually, staff
prepares a six-year moving window CIP that provides information
on budget assumptions, source of funds, allocation of funds,
project costs, project location, description, justification,
scheduling, etc. The six-year CIP is submitted and presented to
the Board of Directors to obtain approval for staff to proceed
with implementation to plan, design, and construct facilities and
programs necessary to meet the needs of the District.
POLICY
The General Manager, or his designee, shall prepare a proposed
six-year CIP for submission to the Board of Directors for their
review prior to and approval by June 30 of each fiscal year.
The CIP projects shall be reviewed and updated annually to
consider appropriate revisions based on the most recent WRMP,
IRP, Strategic Plan, and market condition information. The
timing of projects shall be based on necessity and availability
of financing. The intent is that new CIP projects will be
installed as development requires the facilities. With regard to
all CIP projects, it is acknowledged that compliance with the
California Environmental Quality Act adds a measure of unpre-
dictability with regard to the timing of CIP projects.
The WRMP, IRP, and the CIP projects shall be divided into two
phases: Phase I - one to six years; and Phase II - seven to
ultimate buildout. CIP project sheets for projects in Phase I
shall be prepared and identify estimated total cost, cash
expenditure timing, location, description, justification, funding
allocation, and schedule. For the Phase II CIP projects, the CIP
shall identify the need for the projects, along with their
estimated total cost and funding allocation.
Upon approval by the Board of Directors of the annual six-year
CIP, staff is authorized to proceed with planning, design,
construction, etc. of those projects that have budgets within the
current fiscal year. The General Manager is authorized to
Exhibit 1
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
ANNUAL CAPITAL IMPROVEMENT PROGRAM
DEVELOPMENT
06 10/15/84 6/4/145
/4/16
Page 2 of 2
redistribute funds between approved CIP projects as long as the
total fiscal yearproject budget is not exceeded and the District
has adequate CIP reserves to fund the project. In addition, the
General Manager is authorized to exceed the budget for specific
CIP projects under the following conditions:
a. For CIP projects less than or equal to $50,000, the
cumulative amount of the specific CIP project
expenditures does not exceed that authorized under Code
of Ordinances Section 2.01, Authority of the General
Manager.
b. For CIP projects more than $50,000, the amount being
authorized does not exceed the lessoer of 25% of the
specific CIP project budget amount or that authorized
under Code of Ordinances Section 2.01, Authority of the
General Manager.
c. The total fiscal year CIP budget is not exceeded.
Formatted: Font color: Red
Formatted: Font: Not Italic, No underline
Formatted: Font: Not Italic, No underline
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
ANNUAL CAPITAL IMPROVEMENT PROGRAM
DEVELOPMENT
06 10/15/84 5/4/16
Page 1 of 2
PURPOSE
To define the policy on the preparation and approval of the
annual Capital Improvement Program.
BACKGROUND
District staff develops and maintains a Water Resources Master
Plan (WRMP), an Integrated Water Resources Plan (IRP), and
Strategic Plan that collectively are used to prepare the annual
Capital Improvement Program (CIP) and to identify the CIP
projects required for ultimate build out. The WRMP is revised
every five years and adopted by the Board. Annually, staff
prepares a six-year moving window CIP that provides information
on budget assumptions, source of funds, allocation of funds,
project costs, project location, description, justification,
scheduling, etc. The six-year CIP is submitted and presented to
the Board of Directors to obtain approval for staff to proceed
with implementation to plan, design, and construct facilities and
programs necessary to meet the needs of the District.
POLICY
The General Manager, or his designee, shall prepare a proposed
six-year CIP for submission to the Board of Directors for their
review prior to and approval by June 30 of each fiscal year.
The CIP projects shall be reviewed and updated annually to
consider appropriate revisions based on the most recent WRMP,
IRP, Strategic Plan, and market condition information. The
timing of projects shall be based on necessity and availability
of financing. The intent is that new CIP projects will be
installed as development requires the facilities. With regard to
all CIP projects, it is acknowledged that compliance with the
California Environmental Quality Act adds a measure of unpre-
dictability with regard to the timing of CIP projects.
The WRMP, IRP, and the CIP projects shall be divided into two
phases: Phase I - one to six years; and Phase II - seven to
ultimate buildout. CIP project sheets for projects in Phase I
shall be prepared and identify estimated total cost, cash
expenditure timing, location, description, justification, funding
allocation, and schedule. For the Phase II CIP projects, the CIP
shall identify the need for the projects, along with their
estimated total cost and funding allocation.
Upon approval by the Board of Directors of the annual six-year
CIP, staff is authorized to proceed with planning, design,
construction, etc. of those projects that have budgets within the
current fiscal year. The General Manager is authorized to
Attachment C
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
ANNUAL CAPITAL IMPROVEMENT PROGRAM
DEVELOPMENT
06 10/15/84 5/4/16
Page 2 of 2
redistribute funds between approved CIP projects as long as the
total project budget is not exceeded and the District has
adequate CIP reserves to fund the project. In addition, the
General Manager is authorized to exceed the budget for specific
CIP projects under the following conditions:
a. For CIP projects less than or equal to $50,000, the
cumulative amount of the specific CIP project
expenditures does not exceed that authorized under Code
of Ordinances Section 2.01, Authority of the General
Manager.
b. For CIP projects more than $50,000, the amount being
authorized does not exceed the lesser of 25% of the
specific CIP project budget amount or that authorized
under Code of Ordinances Section 2.01, Authority of the
General Manager.
c. The total fiscal year CIP budget is not exceeded.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: May 4, 2016
SUBMITTED BY: Rita Bell,
Finance Manager
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT:
Adopt Resolution No. 4301 Amending Policy No. 27, the
Investment Policy, of the District’s Code of Ordinances and
Re-Delegating Authority for All Investment Related Activities
to the Chief Financial Officer
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4301 amending Policy No. 27, the
Investment Policy, of the District’s Code of Ordinances and re-
delegating authority for all investment related activities to the
Chief Financial Officer, in accordance with Government Code Section
53607.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
Government Code Section 53646 recommends that the District’s
Investment Policy be rendered to the Board on an annual basis for
review. In addition, Government Code Section 53607 requires that for
the Chief Financial Officer’s delegation of authority to remain
effective, the governing board must re-delegate authority over
investment activities on an annual basis.
ANALYSIS:
The primary goals of the Investment Policy are to assure compliance
with the California Government Code, Sections 53600 et seq. The
primary objectives, in priority order, of investment activities are:
1. Protect the principal of the funds.
2. Remain sufficiently liquid to enable the District to meet
all operating requirements which might be reasonably
anticipated.
3. The District’s return is a market rate of return that is
commensurate with the conservative investments approach to
meet the first two objectives of safety and liquidity.
The code provides a broad range of investment options for local
agencies, including Federal Treasuries, Federal Agencies, Callable
Federal Agencies, the State Pool, the County Pool, high-grade
corporate debt, and others. Over recent years, the size of the
District’s portfolio has declined from $110 million in 2010 to $83
million as of February 29, 2016. The reduction is primarily due to
planned outlays for construction projects.
Because of the District’s adherence to a conservative range of
authorized investments, we have been able to maintain a healthy and
diversified portfolio with no investment losses despite an extended
period of turmoil and instability in the national financial markets.
The policy is consistent with the current law and the overall
objectives of the policy are being met.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Demonstrate financial health through formalized policies, prudent
investing, and efficient operations.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action Form
B) Resolution No. 4301
Exhibit 1 - Policy No. 27 (Strike-through)
C) Policy No. 27 Proposed
D) Presentation
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4301 Amending Policy No. 27, the
Investment Policy, of the District’s Code of Ordinances and
Re-Delegating Authority for All Investment Related
Activities to the Chief Financial Officer
COMMITTEE ACTION:
The Finance, Administration and Communications Committee reviewed
this item at a meeting held on April 20, 2016 and the following
comments were made:
Staff is requesting that the board receive the District’s
Investment Policy (Policy No. 27) for review, and re-
delegates authority for all investment related activities to
the Chief Financial Officer, in accordance with Government
Code Section 53607.
It was indicated that the District’s current Investment
Policy complies with California Government Code Sections
53600 through 53692 and the policy has received certification
from the Association of Public Treasurers of the United
States and Canada (APT US&C).
Staff is recommending two changes to the Investment Policy:
- Indicate that qualified brokers must prove certification
with the Financial Industry Regulatory Agency (FINRA)
which replaced the National Association of Securities
Dealers.
- An increase in the LAIF deposit limit from $50 million
to $65 million.
Based on the Government Code, the District’s fund objectives
in order of priority are: 1) Safety; 2) Liquidity; and 3)
Yield.
The following are the various instruments in which the
District invests in:
- Bank Deposits
- LAIF
- County Pool
- Government Sponsored Entities(GSE’s)
Staff reviewed the objectives of (1) Safety and (2) Liquidity
and how they relate to each of the District’s investment
categories (please see slides 6 and 7 of Attachment D to the
staff report).
The annual yield on the District’s various investments, as of
February 29, 2016, and compared to FY 2015 follows:
FY16 FY15
Otay 0.78% 0.64%
LAIF 0.47% 0.27%
County Pool 0.68% 0.48%
The District reconciles cash and performs a rolling seven (7)
day forecast on a daily basis to determine the District’s
immediate cash needs. Staff noted the target levels kept in
each investment category (please see slide number 9 of
Attachment D to the staff report).
Staff presented a breakdown of the District’s investment
portfolio, as of February 29, 2016, which totaled
approximately $84.3 million (please see slide 10 in
Attachment D to the staff report).
In response to an inquiry from the committee, staff indicated
that LAIF is where the District holds 30 to 60 days of its
cash needs. At the end of February, the District’s LAIF
account was higher than normal because two of the District’s
investments had been called and they were placed in the LAIF
account until they were reinvested. Today, the investment in
LAIF is approximately $6 million and the San Diego County
Pool remains at about $16.5 million. Staff noted that as
interest rates drop, the District is receiving more calls on
its existing investments which will need to be reinvested.
Following the discussion, the committee supported staffs’
recommendation and presentation to the full board on the consent
calendar.
RESOLUTION NO. 4301
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY 27 THE INVESTMENT POLICY OF THE DISTRICT’S CODE OF ORDINANCES
WHEREAS, the Otay Water District Board of Directors has been
presented with an amended Policy No. 27 of the District’s Code of
Ordinances for the management of the Otay Water District; and
WHEREAS, the amended Policy No. 27 has been reviewed and
considered by the Board, and it is in the interest of the
District to adopt the amended policy; and
WHEREAS, the strike-through copy of the proposed policy is
attached as Exhibit 1 to this resolution; and
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by
the Board of Directors of the Otay Water District that the
amended Policy No. 27, incorporated herein as Attachment C, is
hereby adopted.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
Otay Water District at a board meeting held this 4th day of May
2016, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Attachment B
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________________________
President
ATTEST:
____________________________
District Secretary
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1.0: POLICY
It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest
return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds.
2.0: SCOPE
This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include:
2.1) General Fund
2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund
2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund
2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB)
2.4) Debt Reserve Fund
Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of
participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by
the legal documents that govern the terms of such debt issuances.
3.0: PRUDENCE Investments should be made with judgment and care, under current
prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
Exhibit 1
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The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in
accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
4.0: OBJECTIVE
As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and
managing public funds, the primary objectives, in priority order, of the investment activities shall be:
4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water
District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.
4.2) Liquidity: The Otay Water District’s investment portfolio
will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated.
4.3) Return on Investment: The Otay Water District’s investment
portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio.
5.0 DELEGATION OF AUTHORITY
Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through
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53692. Management responsibility for the investment program is hereby delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials
and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons
responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO.
6.0: ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall
refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions.
Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions
with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall
refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the
District.
7.0: AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Chief Financial Officer shall maintain a list of financial
institutions authorized to provide investment services. In addition, a list will also be maintained of approved security broker/dealers who are authorized to provide investment services in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1
(Uniform Net Capital Rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the District with the following, as appropriate:
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Audited Financial Statements.
Proof of National Association of Security Dealers (NASD) Financial Industry Regulatory Authority (FINRA)
certification.
Proof of state registration.
Completed broker/dealer questionnaire.
Certification of having read the District’s Investment Policy.
Evidence of adequate insurance coverage.
An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the District invests.
8.0: AUTHORIZED AND SUITABLE INVESTMENTS
From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law
and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code,
Sections 53600 through 53692, to invest in the following types of securities, as further limited herein:
8.01) United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United
States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity
limitation is applicable.
8.02) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $5065 million). The
District may also invest bond proceeds in LAIF with the same but independent maximum limitation.
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8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers:
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Federal Home Loan Bank (FHLB)
Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac")
Federal National Mortgage Association (FNMA or "Fannie Mae")
Government National Mortgage Association (GNMA or “Ginnie Mae”)
Federal Farm Credit Bank (FFCB)
Federal Agricultural Mortgage Corporation ( FAMCA or “Farmer Mac”)
There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A”
rating or higher by a nationally recognized statistical rating organization.
8.04) Interest-bearing demand deposit accounts and Certificates of Deposit (CD) will be made only in Federal Deposit
Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral
shall be required in accordance with California Government Code, Section 53652. Investments in CD’s are limited to 15 percent of the District’s portfolio.
8.05) Commercial paper, which is short-term, unsecured
promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 10 percent of the outstanding paper of an issuing corporation, and maximum
investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code,
Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio and no more than 10 percent of the outstanding commercial paper of any single issuer.
8.06) Medium-term notes defined as all corporate debt
securities with a maximum remaining maturity of five years or less, and that meet the further requirements of California
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Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the District’s portfolio. 8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury
securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio.
8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category.
8.09) Under the provisions of California Government Code
53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any
investment that may result in a zero interest accrual if held to maturity. Also, the borrowing of funds for investment purposes,
known as leveraging, is prohibited.
9.0: INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/fund is required prior to
investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:
A description of eligible investment securities, and a written statement of investment policy and objectives.
A description of interest calculations and how it is distributed, and how gains and losses are treated.
A description of how the securities are safeguarded
(including the settlement processes), and how often the securities are priced and the program audited.
A description of who may invest in the program, how often,
and what size deposits and withdrawals are allowed.
A schedule for receiving statements and portfolio listings.
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Are reserves, retained earnings, etc., utilized by the pool/fund?
A fee schedule, and when and how is it assessed.
Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
10.0 COLLATERALIZATION
Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and
accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.
11.0: SAFEKEEPING AND CUSTODY
All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis.
Securities will be held by a third party custodian designated by the District and evidenced by safekeeping receipts.
12.0: DIVERSIFICATION
The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested
in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government
agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial
institution.
13.0: MAXIMUM MATURITIES
To the extent possible, the Otay Water District will attempt to match
its investments with anticipated cash flow requirements. Unless
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matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the date of purchase. However, for time deposits with banks or savings and loan associations, investment maturities will not exceed two years.
Investments in commercial paper will be restricted to 270 days.
14.0: INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of
independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures.
15.0: PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles,
commensurate with the investment risk constraints and the cash flow needs.
The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields
are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark.
16.0: REPORTING
The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should
include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by
categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following:
A listing of individual securities held at the end of the
reporting period by authorized investment category.
Average life and final maturity of all investments listed.
Coupon, discount or earnings rate.
Par value, amortized book value, and market value.
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Percentage of the portfolio represented by each investment category.
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17.0: INVESTMENT POLICY ADOPTION
The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be
reviewed annually by the Board and any modifications made thereto must be approved by the Board.
18.0: GLOSSARY
See Appendix A.
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APPENDIX A: GLOSSARY
ACTIVE INVESTING: Active investors will purchase investments and
continuously monitor their activity, often looking at the price
movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits.
AGENCIES: Federal agency securities and/or Government-sponsored
enterprises.
BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BENCHMARK: A comparative base for measuring the performance or risk
tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.
BROKER/DEALER: Any individual or firm in the business of buying and
selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a
broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or
other firms, or become a part of the firm's holdings.
CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing,
FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low
risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years.
COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
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COMMERCIAL PAPER: An unsecured short-term promissory note, issued by
corporations, with maturities ranging from 2 to 270 days.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual
report for the Otay Water District. It includes detailed financial
information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section.
COUPON: (a) The annual rate of interest that a bond’s issuer promises
to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt.
Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose return profile is linked
to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an
underlying index or security (interest rates, foreign exchange rates, equities or commodities).
DISCOUNT: The difference between the cost price of a security and its
maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments
that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills.
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DIVERSIFICATION: Dividing investment funds among a variety of
securities offering independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to
supply credit to various classes of institutions and individuals,
e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that
insures deposits in member banks and thrifts, currently up to $100,000
per deposit.
FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the
financing programs of several related farm credit agencies and corporations.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are
traded. This rate is currently pegged by the Federal Reserve through
open-market operations.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title
VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market
for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac
guarantees that all security holders will receive timely payments of principal and interest.
FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks
(currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A
stockholder owned, publicly traded company chartered by the United States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets
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backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD).
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like
GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The
corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL RESERVE SYSTEM: The central bank of the United States created
by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.
FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent,
not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and
market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National
Association of Securities Dealers, Inc. (NASD).
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A
government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors.
Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities.
INTEREST-ONLY STRIPS: A mortgage backed instrument where the investor
receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that stated if all loans within the pool are pre-paid. High prepayments on
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underlying mortgages can return less to the holder than the dollar amount invested.
INVERSE FLOATER: A bond or note that does not earn a fixed rate of
interest. Rather, the interest rate is tied to a specific interest rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment.
LEVERAGE: Investing with borrowed money with the expectation that the
interest earned on the investment will exceed the interest paid on the borrowed money.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money
market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from
political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
MARKET VALUE: The price at which a security is trading and could
presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future
transactions between the parties to repurchase/reverse repurchase
agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of
the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.
MATURITY: The date upon which the principal or stated value of an
investment becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills,
commercial paper, bankers’ acceptances, etc.) are issued and traded.
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MUTUAL FUNDS: An open-ended fund operated by an investment company
which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then
take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds, and money market instruments.
MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper.
NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD): A self-regulatory
organization of the securities industry responsible for the operation and regulation of the NASDAQ stock market and over-the-counter
markets. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.
PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase
investments with the intention of long term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy.
PRIMARY DEALER: A designation given by the Federal Reserve System to
commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions
and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers
include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms.
PRUDENT PERSON RULE: An investment standard. In some states the law
requires that a fiduciary, such as a trustee, may invest money only in
a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
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PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by
the Public Deposit Protection Commission to hold public deposits.
RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized
yield to maturity on a bond the current income return.
REGIONAL DEALER: A securities broker/dealer, registered with the
Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these
securities to an investor with an agreement to repurchase them at a
fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the
agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank
reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of
outstanding securities issues following their initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
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SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises
(FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the
yield curve.
TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities
issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.
TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial
maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission
requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital
of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues
are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as
a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any
premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
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1.0: POLICY
It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest
return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds.
2.0: SCOPE
This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include:
2.1) General Fund
2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund
2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund
2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB)
2.4) Debt Reserve Fund
Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of
participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by
the legal documents that govern the terms of such debt issuances.
3.0: PRUDENCE Investments should be made with judgment and care, under current
prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
Attachment C
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The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in
accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
4.0: OBJECTIVE
As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and
managing public funds, the primary objectives, in priority order, of the investment activities shall be:
4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water
District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.
4.2) Liquidity: The Otay Water District’s investment portfolio
will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated.
4.3) Return on Investment: The Otay Water District’s investment
portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio.
5.0 DELEGATION OF AUTHORITY
Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through
53692. Management responsibility for the investment program is hereby
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delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO.
The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an
investment transaction except as provided under the terms of this policy and the procedures established by the CFO.
6.0: ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the
proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General
Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any
personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the
same individual with whom business is conducted on behalf of the District.
7.0: AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Chief Financial Officer shall maintain a list of financial institutions authorized to provide investment services. In addition,
a list will also be maintained of approved security broker/dealers who are authorized to provide investment services in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule). No public deposit shall be made except in
a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the District with the following, as appropriate:
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Audited Financial Statements.
Proof of Financial Industry Regulatory Authority (FINRA) certification.
Proof of state registration.
Completed broker/dealer questionnaire.
Certification of having read the District’s Investment Policy.
Evidence of adequate insurance coverage.
An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the District invests.
8.0: AUTHORIZED AND SUITABLE INVESTMENTS
From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to
handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of
securities, as further limited herein: 8.01) United States Treasury Bills, Bonds, Notes or those
instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There
is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable.
8.02) Local Agency Investment Fund (LAIF), which is a State
of California managed investment pool, may be used up to the maximum permitted by State Law (currently $65 million). The District may also invest bond proceeds in LAIF with the same but
independent maximum limitation.
8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers:
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Federal Home Loan Bank (FHLB)
Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac")
Federal National Mortgage Association (FNMA or "Fannie Mae")
Government National Mortgage Association (GNMA or “Ginnie Mae”)
Federal Farm Credit Bank (FFCB)
Federal Agricultural Mortgage Corporation ( FAMCA or “Farmer Mac”)
There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A”
rating or higher by a nationally recognized statistical rating organization.
8.04) Interest-bearing demand deposit accounts and Certificates of Deposit (CD) will be made only in Federal Deposit
Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral
shall be required in accordance with California Government Code, Section 53652. Investments in CD’s are limited to 15 percent of the District’s portfolio.
8.05) Commercial paper, which is short-term, unsecured
promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 10 percent of the outstanding paper of an issuing corporation, and maximum
investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code,
Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio and no more than 10 percent of the outstanding commercial paper of any single issuer.
8.06) Medium-term notes defined as all corporate debt
securities with a maximum remaining maturity of five years or less, and that meet the further requirements of California Government Code, Section 53601(k). Investments in medium-term
notes are limited to 10 percent of the District’s portfolio.
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8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market
mutual funds are limited to 10 percent of the District's portfolio. 8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the
Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09) Under the provisions of California Government Code
53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range
notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero interest accrual if held to maturity. Also, the borrowing of funds for investment purposes,
known as leveraging, is prohibited.
9.0: INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to
investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:
A description of eligible investment securities, and a written statement of investment policy and objectives.
A description of interest calculations and how it is distributed, and how gains and losses are treated.
A description of how the securities are safeguarded
(including the settlement processes), and how often the securities are priced and the program audited.
A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed.
A schedule for receiving statements and portfolio listings.
Are reserves, retained earnings, etc., utilized by the pool/fund?
A fee schedule, and when and how is it assessed.
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Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
10.0 COLLATERALIZATION
Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate
market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and
accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.
11.0: SAFEKEEPING AND CUSTODY
All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis.
Securities will be held by a third party custodian designated by the District and evidenced by safekeeping receipts.
12.0: DIVERSIFICATION
The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government
agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial
institution.
13.0: MAXIMUM MATURITIES
To the extent possible, the Otay Water District will attempt to match
its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the date of purchase.
However, for time deposits with banks or savings and loan associations, investment maturities will not exceed two years.
Investments in commercial paper will be restricted to 270 days.
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14.0: INTERNAL CONTROL
The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide
internal control by assuring compliance with policies and procedures.
15.0: PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of
obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this
strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency
Investment Fund (LAIF) as a comparable benchmark.
16.0: REPORTING
The Chief Financial Officer shall provide the Board of Directors
monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions,
discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward
and thoughts on investment strategies. Schedules in the quarterly report should include the following:
A listing of individual securities held at the end of the reporting period by authorized investment category.
Average life and final maturity of all investments listed.
Coupon, discount or earnings rate.
Par value, amortized book value, and market value.
Percentage of the portfolio represented by each investment category.
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17.0: INVESTMENT POLICY ADOPTION
The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be
reviewed annually by the Board and any modifications made thereto must be approved by the Board.
18.0: GLOSSARY
See Appendix A.
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APPENDIX A: GLOSSARY
ACTIVE INVESTING: Active investors will purchase investments and
continuously monitor their activity, often looking at the price
movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits.
AGENCIES: Federal agency securities and/or Government-sponsored
enterprises.
BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BENCHMARK: A comparative base for measuring the performance or risk
tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.
BROKER/DEALER: Any individual or firm in the business of buying and
selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a
broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or
other firms, or become a part of the firm's holdings.
CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing,
FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low
risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years.
COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COMMERCIAL PAPER: An unsecured short-term promissory note, issued by
corporations, with maturities ranging from 2 to 270 days.
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COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual
report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to
demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section.
COUPON: (a) The annual rate of interest that a bond’s issuer promises
to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all
transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of
securities: delivery versus payment and delivery versus receipt.
Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of
securities with an exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose return profile is linked
to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial
contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).
DISCOUNT: The difference between the cost price of a security and its
maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments
that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds among a variety of
securities offering independent returns.
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FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to
supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that
insures deposits in member banks and thrifts, currently up to $100,000 per deposit.
FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are
traded. This rate is currently pegged by the Federal Reserve through open-market operations.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established
under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market
for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is
authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest.
FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks
(currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A
stockholder owned, publicly traded company chartered by the United States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of
Housing and Urban Development (HUD).
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FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like
GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the
largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and
guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL RESERVE SYSTEM: The central bank of the United States created
by Congress and consisting of a seven member Board of Governors in
Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.
FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent,
not-for-profit organization authorized by Congress to protect
America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and
market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD).
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A
government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and
credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities.
INTEREST-ONLY STRIPS: A mortgage backed instrument where the investor
receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that
stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested.
INVERSE FLOATER: A bond or note that does not earn a fixed rate of
interest. Rather, the interest rate is tied to a specific interest
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rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment.
LEVERAGE: Investing with borrowed money with the expectation that the
interest earned on the investment will exceed the interest paid on the borrowed money.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from
political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future
transactions between the parties to repurchase/reverse repurchase
agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of
the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.
MATURITY: The date upon which the principal or stated value of an
investment becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills,
commercial paper, bankers’ acceptances, etc.) are issued and traded.
MUTUAL FUNDS: An open-ended fund operated by an investment company
which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase
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various investment vehicles, such as stocks, bonds, and money market instruments.
MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only
in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper.
PASSIVE INVESTING: An investment strategy involving limited ongoing
buying and selling actions. Passive investors will purchase investments with the intention of long term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy.
PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria,
including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New
York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities
broker/dealers, banks, and a few unregulated firms.
PRUDENT PERSON RULE: An investment standard. In some states the law
requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal
list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of
capital.
PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not
claim exemption from the payment of any sales or compensating use or
ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 9/15/93 5/4/16
Page 16 of 17
RANGE NOTE: An investment whose coupon payment varies and is dependent
on whether the current benchmark falls within a pre-determined range.
RATE OF RETURN: The yield obtainable on a security based on its
purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return.
REGIONAL DEALER: A securities broker/dealer, registered with the
Securities & Exchange Commission (SEC), who meets all of the licensing
requirements for buying and selling securities.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the
“seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP
extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee
whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of
outstanding securities issues following their initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to
protect investors in securities transactions by administering
securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons,
derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 9/15/93 5/4/16
Page 17 of 17
TREASURY BILLS: A non-interest bearing discount security issued by the
U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.
TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities
issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission
requirement that member firms as well as nonmember broker-dealers in
securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital
includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET
YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price,
with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
INVESTMENT POLICY
No. 27 & PERFORMANCE
REVIEW
May 4, 2016
Attachment D
POLICY REVIEW
Purpose:
Annual Policy Review
Delegation of Investment Authority
INVESTMENT POLICY GUIDELINES
A. California Government Code:
Sections 53600 through 53692.
B. Investment Policy Certification:
Association of Public Treasurers of the United
States & Canada (APT US&C).
Benefits of Certification:
•Trust and confidence that the District’s Investment
Policy is a professionally accepted policy.
•Assurance that the District is abiding by professional
standards to ensure prudent management of public
funds.
Policy Changes
Changes have been made in the past
when they are needed. There are two
recommended changes to the Investment
Policy dated May 6, 2015.
•Qualified brokers must prove certification with
the Financial Industry Regulatory Agency
(FINRA).
•LAIF increased the deposit limit from $50
million to $65 million.
INVESTMENT OBJECTIVE
To safeguard principal, maintain
liquidity, and to achieve a market
investment return.
Fund Objectives (in order of priority)
Safety
Liquidity
Yield
Safety
Category Safety
Bank Deposits Amounts in excess of $250,000 FDIC limit are required by
California Government Code to be 110% collateralized by the
bank.
LAIF Mandated by applicable State Statutes* and State law, invested
in a conservative manner and limits the investments to fixed-
income securities.
County Pool Mandated by State law, invested in a conservative manner and
limits the investments to fixed-income securities.
S&P Rating of AAAf/S1, indicates extremely strong protection
against losses and low sensitivity to changing market
conditions.
GSE’s Guaranteed by the Federal Government.
*Applicable State Statutes
•No. California Government Code 16429.3 states that monies placed with the Treasurer for deposit in the LAIF by cities, counties, special districts, nonprofit corporations, or qualified quasi-governmental agencies shall not be subject to either of the following:(a) Transfer or loan pursuant to Sections 16310, 16312, or 16313.(b) Impoundment or seizure by any state official or state agency.
•California Government Code 16429.4 states that the right of a city, county, city and county, special district, nonprofit corporation, or qualified quasi-governmental agency, to withdraw its deposited money from the LAIF upon demand may not be altered, impaired, or denied in any way by any state official or state agency based upon the States failure to adopt a State Budget by July 1 of each new fiscal year.
Liquidity
Category Availability
Bank Deposits Immediately
LAIF Same day
County Pool 2-3 days
GSE’s Can be converted to cash in
2-3 days
Maintain highly liquid investments
with a hold strategy.
Annual Yield Performance
YTD as of February 29, 2016
FY16 FY15
Otay 0.78% 0.64%
LAIF 0.47% 0.27%
County Pool 0.68% 0.48%
Cash Management
The District reconciles cash and performs a rolling
7-day forecast on a daily basis.
Levels by Investment Type
Category Target Levels
Bank Deposits Outstanding checks and current
days electronic payments
LAIF Short-term (30-60 days)
obligations
County Pool Amounts in excess of bank
deposit and LAIF targets that are
to be invested using the laddering
approach or fund short-term
obligations such as current year
debt payments
GSE’s Target 2-3 year issuances with a
laddering approach
INVESTMENT PORTFOLIO
Authorized
$(‘000s) $ / % Actual %
LAIF (Operating) $11,814 $65 mil 14.53%
Govt. Agency Bonds $52,933 100% 65.11%
Bank Deposits & CDs $82 15% 0.10%
San Diego County Pool $16,465 50% 20.25%
TOTAL $84,294
As of February 29, 2016
REQUESTED BOARD ACTION
Re-delegate authority for all investment
related activities to the Chief Financial
Officer (CFO), in accordance with
Government Code Section 53607).
Questions?
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: May 4, 2016
SUBMITTED BY: Armando Buelna
Communications Officer
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Mark Watton, General Manager
SUBJECT: Revising the Emergency Drought Action Plan
GENERAL MANAGER’S RECOMMENDATION:
That the Board of Directors authorize the General Manager to lift the
two-day per week limit on outdoor irrigation effective immediately.
Irrigation would be set at no more than three days per week, and up
to 15 minutes per irrigation station. All other mandatory water
conservation measures under the Level 2 – Drought Alert would remain
in effect.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To give customers more flexibility to deep-water trees to maintain
the urban forest, establish water-wise landscaping, protect
investments in residential and commercial landscaping, and
maintaining fire-safe buffers in wildland-urban interface areas.
BACKGROUND:
Because of extreme drought across the state of California, on August
6, 2014, the Board of Directors declared a Water Shortage Response
Level 2- Supply Alert condition. Under the Level 2 – Supply Alert,
many voluntary water conservation measures become mandatory and the
District increased its conservation messaging to all customers.
As emergency drought conditions persisted into 2015, on April 1,
2015, Governor Jerry Brown issued an executive order requiring
2
mandatory water conservation for all urban residential and commercial
customers. The Governor also directed the State Water Resources
Control Board (SWRCB) to take immediate action to achieve a 25
percent reduction in urban potable water use.
On May 5, 2015, the SWRCB adopted emergency regulations mandating all
urban water suppliers to cut potable water use by 8 to 36 percent
depending on their residential gallons-per-capita-per-day average in
2013. The SWRCB set the Otay Water District’s water conservation
target at 20 percent of 2013 levels.
In June, 2015, the District adopted Ordinance No. 551 which declared
a state drought emergency and called for mandatory conservation
measures to achieve the state mandated conservation target and
implemented Section 40 of the District’s Code of Ordinances. In
adopting Ordinance No. 551, the District noted that it did not have a
water supply shortage. Rather, because of the SWRCB mandate,
Ordinance 551 was to reduce potable water use 20 percent based on
2013 levels in compliance with the SWRCB action.
In February, 2016, the SWCRB began allowing urban water suppliers to
request credits for investments made in drought-resilient water
supplies, as well as growth and climate adjustments, but extended the
mandatory conservation regulations through October 31, 2016.
CONSERVATION OUTREACH
In response to the SWRCB mandate, staff took a variety of actions to
advise customers of the conservation target including calls and
emails to all District customers; letters to the District’s top 10
percent of residential users as well as all potable commercial
irrigation customers; conservation messages on the outside of the
bill envelopes, inserts and messages on the bill itself; online
target usage tracking; leak alarm notifications; water waste
tracking; and community outreach to numerous homeowners and
commercial customers.
While containing a number of elements, the District’s response to the
state drought emergency was designed to be scaled up or down based on
customer response to conservation messages and meeting the state’s
conservation targets. For example, following an initial high level of
outreach that resulted in the District exceeding its conservation
goal, the campaign was scaled back to bring conservation levels more
in line with the cumulative target.
3
As a result, despite February 2016 being one of the hottest months on
record in San Diego County, the District ended the initial
measurement period (June 2015 to March 2016) with its cumulative
conservation level within one percent of the state’s 20 percent
target.
IMPACT OF CONSERVATION MANDATE
The SWRCB conservation target, unfortunately, did not give credit to
agencies that had already made significant gains in water
conservation or to regions that had worked to develop drought-proof
water supplies. For example, as a result diversifying its water
supplies over the past 25 years, in 2015, the San Diego County Water
Authority (SDCWA) had enough water to meet 99 percent of its typical
water demands for its member agencies despite four years of record
drought. When the Claude “Bud” Lewis Desalination Plant came online
in late 2015, the region had 107 percent of the water it would need
to meet typical demand.
Another consequence of the state action resulted in limiting outdoor
irrigation to no more than two days per week. This neglected to take
into consideration the possible impact reduced irrigation would have
on the health of trees in the urban forest. Trees already stressed
due to years of drought, were they to die, represent not only a lost
investment to owners and a diminishing of a region’s quality of life,
but can be costly to remove, create a hazard and resulting liability
to homeowners, and can become a fire danger particularly in areas
within the wildland urban fire interface.
4
Moreover, irrigation limited to two days a week is inadequate to deep
water trees, to establish drought tolerant landscaping, maintain the
health of plants used in fire-safe buffers, and this can be
especially problematic in areas with little precipitation and high
evapotranspiration rates such as San Diego County.
REVISED CONSERVATION TARGET
Based on numerous statewide requests to make conservation standards
more equitable, in February 2016, the SWRCB began allowing urban
water suppliers to request credits for investments made in drought-
resilient water supplies, along with adjustments for growth and
climate.
Suppliers in San Diego applied for and, because of investments made
in the Claude “Bud” Lewis Carlsbad Desalination Plant, were approved
for the maximum credit of 8 percent toward achieving their
conservation target. The revised conservation standards in San Diego
County were lowered to between 8 to 29 percent, with a regional
aggregate target of 13 percent. No agency, however, can go below 8
percent. Otay received the maximum 8 percent reduction credit,
reducing its conservation target from 20 percent to 12 percent based
on 2013 levels.
The timeframe for the cumulative savings calculation will be from
June 2015 until October 2016. To date, the District is exceeding the
state mandated target with a cumulative savings of 19 percent.
In response to obtaining the drought-resilient supply credit, on
March 24, 2016, the SDCWA Board of Directors voted to rescind its
previous ordinance declaring a regional drought response Level 2 or
requiring member agencies to limit outdoor watering to no more than
two days per week. This action gives member agencies the flexibility
to choose the most appropriate drought level for their individual
agency and their unique state-mandated water conservation standard.
RECOMMENDATION:
Staff recommends the Board authorize the General Manager to lift the
two-day per week limit on outdoor irrigation effective immediately.
Outdoor irrigation would be permitted up to three days per week, and
up to 15 minutes per irrigation station. All other mandatory water
conservation measures under the Level 2 – Drought Alert condition
would remain in effect.
5
Staff believes that returning to a traditional three-day per week
irrigation schedule authorized under a Level 2 – Drought Alert
condition will enable the District to meet its 12 percent cumulative
conservation target while also permitting customers more flexibility
to deep-water trees to maintain the urban forest, protect investments
in residential landscaping, establish new water-wise landscaping, and
maintaining fire-safe buffers in wildland-urban interface areas.
Staff will then advise customers of the new conservation target via
its newsletter, bill inserts, and social media, but will also
continue to closely monitor the rate of conservation and will react
accordingly to ensure customers remain mindful of the cumulative
conservation target.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
It is expected that water sales will gradually increase as result of
this action, though the rate of that increase is difficult to
predict. The proposed FY 2017 budget projects a slight recovery in
sales, which would be in line with the staff recommendation.
STRATEGIC GOAL:
Actively manage water supply and demand.
LEGAL IMPACT:
None
Attachments: Attachment A – Committee Action
ATTACHMENT A
SUBJECT/PROJECT:
Revising the Emergency Drought Action Plan
COMMITTEE ACTION:
The Finance, Administration and Communications Committee reviewed this
item at a meeting held on April 20, 2016 and the following comments were
made:
Staff is requesting that the Board authorize the General Manager to
lift the two-day per week limit on outdoor irrigation. While the
statewide drought is not over, supply conditions have improved this
year.
Additionally, based on numerous requests to make conservation
standards more equitable, in February, the State Water Resources
Control Board began allowing urban water suppliers to request
credits for investments made in drought-resilient water supplies,
along with adjustments for growth and climate.
Suppliers in San Diego applied for and, because of investments made
in the Carlsbad Desalination Plant, were approved for the maximum
credit of 8 percent toward achieving their unique conservation
target.
Otay received the maximum credit of 8 percent, reducing its
conservation target from 20 percent to 12 percent. The timeframe
for the new conservation target is from June of 2015 until October
31, 2016. To date, the District is exceeding its target with a
cumulative savings of 19 percent.
After state action in March, CWA’s board of directors rescinded its
ordinance declaring a regional drought Level 2, and requiring
member agencies to limit outdoor watering to no more than two days
per week. This action was taken to give member agencies the
flexibility to choose the most appropriate drought response for
their individual agency and their unique conservation target. As a
result of this action, staff recommends returning to a traditional
three-day per week irrigation schedule, as authorized under Otay’s
Level 2 – Drought Alert condition.
With the board’s authorization, outdoor irrigation would be
permitted up to three days per week, and up to 15 minutes per
irrigation station. All other mandatory water conservation measures
under the Level 2 – Drought Alert condition would remain in effect.
It is felt that even with the return to a three-day per week
schedule, the District would still meet its 12 percent cumulative
conservation target, while giving customers more flexibility to
deep-water their trees, protect their investments in residential
landscaping, establish new water-wise landscaping, and maintain
fire-safe buffers in wildland-urban interface areas.
Staff will advise customers of the new conservation target via its
newsletter, bill inserts, and social media, as well as, continue to
closely monitor the rate of conservation. The District will react
accordingly to ensure customers remain mindful of the cumulative
conservation target of 12%.
Staff noted that the State Water Resources Control Board would be
holding a workshop today, April 20, to discuss possible changes to
the State-wide Standards from input received from water agencies
throughout the State. There may be additional changes to the
State-wide Standards in the next month or so.
Following the discussion, the committee supported staffs’
recommendation and presentation to the full board on the consent
calendar.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: May 04, 2016
PROJECT: DIV. NO. ALL
SUBMITTED BY: Michael Kerr
Information Technology Manager
APPROVED BY:
Adolfo Segura, Chief, Administrative Services
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: ADOPT RESOLUTION #4299 TO REVISE BOARD POLICY #05-A, RECORDS
POLICY AND PROCEDURES – RECORDS RETENTION AND DESTRUCTION
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution #4299 in support of revisions to Board
Policy #05-A, Records Policy and Procedures – Records Retention and
Destruction, including modification of policy/subject title to “#05-A
Records Retention and Destruction”.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To request that the Board adopt Resolution #4299 (Attachment B) and
approve revisions to Board Policy #05-A, Records Policy and Procedures
– Records Retention and Destruction (Exhibit 1).
ANALYSIS:
Consistent with the District’s Strategic Plan, the District regularly
reviews policies and procedures to ensure they are streamlined and are
clear and consistent with applicable laws.
Updates deemed appropriate at this time are detailed below and revisions
are shown in the attached strike-through versions of the policy (Exhibit
1).
Board Policy #05-A, Records Policy and Procedures – Records Retention
and Destruction
In cooperation with General Counsel, staff has reviewed the current
Records Retention and Destruction program as well as those of some of
our neighboring agencies and determined that some changes would be
appropriate at this time. The most significant proposed change is that
most email communication does not create records that must be preserved
under the law. Retaining only email that is directly relevant to District
business and/or required by law, will streamline and minimize overhead
associated with the management of email and cost.
Based on researched policies and referenced email management practices
by neighboring agencies, staff is recommending an email lifecycle or
retention of 100 days from origination (sent or received) to destruction,
unless otherwise noted in the District’s Records Retention Schedule
(Attachment D). Staff also conferred with General Counsel to ensure the
District’s retention and destruction practice is aligned with applicable
laws. Staff concludes that this modification of the email retention
policy is both applicable for statutory and regulatory compliance as
this policy addresses both business and non-business email in a
transitory state.
Non-business/transitory emails do not qualify as official records as
they are temporary and non-substantive in nature to include copies or
reproduced or printed documents, preliminary work materials, and
information only items, therefore can be deleted when no longer needed.
Business email that needs to be preserved will be profiled according to
the records retention schedule and maintained accordingly. For example,
substantive emails related to a contract and/or a project will be placed
in the contract or project file and kept for the same duration of time
as the official record series.
Other proposed changes to streamline the District’s records management
practice is the merging of similar record types with same or similar
retention periods.
Based on the above, it is requested that the Board of Directors adopt
Resolution #4299 in support of the proposed revisions to be effective
July 1, 2016.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Optimize the District’s Operating Efficiency.
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report
Attachment B – Resolution #4299
Exhibit 1 – Draft Copy, Board Policy #05-A, Records Policy
And Procedures – Retention and Destruction
Attachment C – Proposed Copy, Board Policy #05-A, Records Retention and
Destruction
Attachment D – Otay Water District – Records Retention Schedule
ATTACHMENT A
SUBJECT/PROJECT: ADOPT RESOLUTION #4299 TO REVISE BOARD POLICY #05-A, RECORDS
POLICY AND PROCEDURES – RECORDS RETENTION AND DESTRUCTION
COMMITTEE ACTION:
The Finance, Administration and Communications Committee reviewed this
item at a meeting held on April 20, 2016 and the following comments were
made:
Staff is requesting that the Board approve revisions to Board
Policy 05-A, Records Policy and Procedures – Records Retention and
Destruction and approve a title change to ‘Records Retention and
Destruction’.
Staff regularly reviews policies and procedures to ensure that they
are streamlined, clear, and consistent with applicable laws.
Staff, in consultation with the District’s counsel, has reviewed
the current Records Retention and Destruction program, as well as,
those of other neighboring agencies and determined that changes
would be appropriate at this time. Based on researched policies
and email management practices, staff is recommending an email
retention period of 100 days from origination to destruction or
unless otherwise noted in the District’s Records Retention
Schedule. This policy would be implemented on 7/1/2016.
According to the California Public Records Act, a ‘record’ is
defined as ‘any writing containing information relating to the
conduct of the public’s business prepared, owned, used or retained
by any state or local agency regardless of physical form or
characteristics.” Emails that meet this criteria are currently
saved by District staff in the appropriate location, thus,
preserving its retention period according to the District’s Records
Retention Schedule. Some examples of these email records include
those related to Capital Improvement Projects, Financial Records,
or other supporting documents referenced in the retention schedule.
In conferring with Counsel, staff has determined that the current
13-month retention period of non-business emails can be costly due
to the volume, associated storage, and administrative costs. Staff
also concludes that 13 months retention of email is unnecessary for
transitory non-business emails.
In modifying the policy, staff has also made a distinction between
an email ‘record’ and emails that are ‘non-records’. Emails that
do not meet the criteria of a ‘record’ are defined as transitory in
nature. Some examples of transitory e-mails include routine
requests for information or publication, personal notes or replies
where no administrative action is needed, and miscellaneous
informational communications with no substantive information.
These ‘transitory’ emails do not qualify as records based on its
content and should be deleted when they are no longer needed.
Should the Board approve and adopt this resolution, transitory
emails that are past the 100-day threshold will be automatically
deleted per the new policy effective July 1. This change in the
policy will also affect voicemail and/or voice recordings, and
other created inbox folders within the email system.
Staff indicated in response to an inquiry from the Committee that
the most substantive change to the policy is the reference to the
administrator of the policy. The administrator was the Chief of
Information Technology. As that position was eliminated when the
individual in the position retired earlier this year, the title of
the administrator required updating. The proposed policy
identifies the General Manager as the administrator of the policy.
Staff also wished to inform the Board of the change in retention
for business and non-business related emails before the changes
where implemented.
The committee noted that this policy recognizes the District’s
responsibility to produce records and allows it to manage costs
associated with the maintenance of records. The Committee
commended staff for their proactive approach to balance the
public’s right to know and the costs associated with the Public
Records Request Act.
Following the discussion, the committee supported staffs’
recommendation and presentation to the full board on the consent
calendar.
1
RESOLUTION NO. 4299
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT
TO REVISE AND UPDATE VARIOUS DISTRICT BOARD POLICIES
WHEREAS, the Board of Directors of Otay Water District have
established policies, procedures, ordinances, and resolutions for the
efficient operation of the District; and
WHEREAS, it is the policy of the District to establish procedures
to review policies, procedures, ordinances, and resolutions
periodically to ensure they are current and relevant; and
WHEREAS, District staff has identified policy number 05-A, as
requiring revisions as per the attached strike-through copy. All other
required Board policies do not require updates and are current at this
time;
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of
the Otay Water District amend policy number 05-A in the form presented
to the Board at this meeting.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay
Water District at a regular meeting held this 4th of May, 2016.
_______________________________
President
ATTEST:
____________________________
Secretary
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS POLICY AND PROCEDURES - RECORDS
RETENTION AND DESTRUCTION
05-A 2/3/10 7/1/16
Page 1 of 5
I. PURPOSE
To ensure that necessary records and documents of the Otay Water
District are adequately protected and maintained and to ensure that
records that are no longer needed or are of no value are discarded at
the proper time. This Policy is also serves as assistance in providing
management with the information necessary for andthe purpose of aiding
of District employees in understanding their obligations in retaining
electronic documents that are developdeveloped during phases of records
creation and to assist in controlling the life cycle of all District
records, including e-mail, Web files, text files, sound and movie files,
PDF documents, and all Microsoft Office or other formatted files.
II. SCOPE
This policy is applicable to all District departments and offices
directly responsible to the General Manager. The objectives of the
Records Retention Policy are:
To ensure that all legal, historical, fiscal, and administrative
requirements are satisfied before records are destroyed.
To conserve District resources, such as space and staff time, by
managing records and removing inactive or obsolete material from
office files.
To maintain a regular, controlled flow of records from offices
to destruction or archive storage.
III. POLICY
This policyPolicy represents the District’s policy regarding the
retention and disposal of records, including electronic documents.
Attached as Appendix 1 is a Record Retention Schedule that is approved
as the District’s maintenance, retention and disposal schedule for
physical records and the retention and disposal of electronic documents.
IV. DEFINITION
(a) Public Record – Any writing as set forth in California Government
Code Section 6252, but generally shall include 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.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS POLICY AND PROCEDURES - RECORDS
RETENTION AND DESTRUCTION
05-A 2/3/10 7/1/16
Page 2 of 5
(b) Records Management – The planned and systematic control of business
records from their creation or receipt, through final disposition.
(c) Records Retention Schedule – The document that outlines how long a
document must be kept by law, or longer, if needed for District
operations.
(d) Official Record - The records to which retention schedules apply.
(e) Retention Period – The length of time a record needs to be
maintained to satisfy the purposes for which it was created, and to
fulfill legal, fiscal, and administrative requirements of the
District.
(f) Transitory Records – Records that are of informal communications
produced via a computer (E-mail), routine requests, posted notes or
other temporary medium. Transitory records are designed to have a
limited retention period and as such, are not considered records
unless they are in relation to another document or project.
(g) Abbreviations – The following abbreviations are used in the Records
Retention Schedule:
A = Active Financial Audit
ACT = Active (e.g., while the contract is active or while an
employee is still working for the District)
C = Closed, Expired
CY = Calendar Year
FY = Fiscal Year
L = Life of Facility
P = Permanent
R = Revised, Cancelled, Obsolete, or Superseded
T = Termination, Death
V. ADMINISTRATION
A. General
1. The District’s Chief Information Officer (the
‘‘Administrator’’)General Manager is the officer in charge
of the administration of this Policy and the implementation
of processes and procedures to ensure that the Record
Retention Schedule is followed.
2. The General ManagerAdministrator is also authorized to, in
consultation with the General Manager: make modifications
to these procedures and to the Record Retention Schedule
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS POLICY AND PROCEDURES - RECORDS
RETENTION AND DESTRUCTION
05-A 2/3/10 7/1/16
Page 3 of 5
from time to time to ensure that it is in compliance with
local, state and federal laws and includinges policies and
procedures, the appropriate documents and record categories
for the District; work with the District’s General Counsel
to monitor local, state and federal laws affecting record
retention; periodically annually review the record
retention and disposal program; and monitor compliance with
this Policy.
B. Suspension of Record Disposal due to Litigation or Claims
In the event the District is served with any subpoena or
request for documents or any employee becomes aware of a
governmental investigation or audit or the commencement of any
litigation against or concerning the District, such employee
shall inform the General Manager Administrator and any further
disposal of documents shall be suspended until such time as
the General ManagerAdministrator, with the advice of counsel,
determines otherwise. The General ManagerAdministrator shall
take steps to promptly inform all staff of any suspension in
the further disposal of documents.
CC.. Records Retention Schedule Organization
1. The Record Retention Schedule is organized by type of
records and reflects each department’s responsibility,
description of records, governing authority, and its
retention period.
D. Records Management, Filing and DestructionIf deemed necessary
by the Administrator and the General Manager, a person, firm or
service may be retained to assist the District with the
management, filing, retention and destruction of records. If the
aggregate payments under the contract do not exceed the General
Manager’s contracting authority, the General Manager is authorized
to determine the terms and conditions of such contract in
consultation with the General Counsel.
D. Destruction of Records
All records shown on the Records Retention Schedule shall be
retained for the period indicated on the Records Retention
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS POLICY AND PROCEDURES - RECORDS
RETENTION AND DESTRUCTION
05-A 2/3/10 7/1/16
Page 4 of 5
Schedule and may be destroyed thereafter. The General Manager
or designee of the District is authorized to destroy records
of the District according to the Records Retention Schedule
without further authorization from the Board of Directors.
E. Method of Destruction of Records
Official records at the end of their retention period are
eligible for destruction. A destruction approval report is
used to list eligible records and obtain appropriate
approvals. Official records shall not be destroyed if any
legal action, audit or government investigation involving
those records is identified. Destruction of paper records
shall be by shredding or other legally acceptable method. A
Certificate of Destruction or other accepted form of
documentation shall be prepared and saved permanently within
the District’s Retention Management System. Electronic
records shall be deleted by removing those records from the
system on which they reside and erasing the data. Deleted
electronic records, including emails are considered to have
been disposed/destroyed once they are deleted from the active
computer system and any storage devices.
CITATIONS
B & P – Business and Professions Code
CCP - Code of Civil Procedures
CCR - Code of California Regulations
CEQA - California Environmental Quality Act
CFR - Code of Federal Regulations
CVC - California Vehicle Code
GC - Government Code
H&S - Health & Safety
LC - Labor Code
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS POLICY AND PROCEDURES - RECORDS
RETENTION AND DESTRUCTION
05-A 2/3/10 7/1/16
Page 5 of 5
OMB - Office Management & Budget
OPS - Opinion Attorney General
OSHA - Occupational Safety & Health Act
PC - Penal Code
USC - United States Code
WC - Water Code
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS RETENTION AND DESTRUCTION 05-A 2/3/10 7/1/16
Page 1 of 4
I. PURPOSE
To ensure that necessary records and documents of the Otay Water
District are adequately protected and maintained and to ensure that
records that are no longer needed or are of no value are discarded at
the proper time. This Policy also serves as assistance in providing
management with the information necessary for and aiding of District
employees in understanding their obligations in retaining electronic
documents that are developed during phases of records creation and to
assist in controlling the life cycle of all District records, including
e-mail, Web files, text files, sound and movie files, PDF documents, and
all Microsoft Office or other formatted files.
II. SCOPE
This policy is applicable to all District departments and offices
directly responsible to the General Manager. The objectives of the
Records Retention Policy are:
To ensure that all legal, historical, fiscal, and administrative
requirements are satisfied before records are destroyed.
To conserve District resources, such as space and staff time, by
managing records and removing inactive or obsolete material from
office files.
To maintain a regular, controlled flow of records from offices
to destruction or archive storage.
III. POLICY
This policy represents the District’s policy regarding the
retention and disposal of records, including electronic documents.
Attached as Appendix 1 is a Record Retention Schedule that is approved
as the District’s maintenance, retention and disposal schedule for
physical records and the retention and disposal of electronic documents.
IV. DEFINITION
(a) Public Record – Any writing as set forth in California Government
Code Section 6252, but generally shall include 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.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS RETENTION AND DESTRUCTION 05-A 2/3/10 7/1/16
Page 2 of 4
(b) Records Management – The planned and systematic control of business
records from their creation or receipt, through final disposition.
(c) Records Retention Schedule – The document that outlines how long a
document must be kept by law, or longer, if needed for District
operations.
(d) Official Record - The records to which retention schedules apply.
(e) Retention Period – The length of time a record needs to be
maintained to satisfy the purposes for which it was created, and to
fulfill legal, fiscal, and administrative requirements of the
District.
(f) Transitory Records – Records that are of informal communications
produced via a computer (E-mail), routine requests, posted notes or
other temporary medium. Transitory records are designed to have a
limited retention period and as such, are not considered records
unless they are in relation to another document or project.
(g) Abbreviations – The following abbreviations are used in the Records
Retention Schedule:
A = Active Financial Audit
ACT = Active (e.g., while the contract is active or while an
employee is still working for the District)
C = Closed, Expired
CY = Calendar Year
FY = Fiscal Year
L = Life of Facility
P = Permanent
R = Revised, Cancelled, Obsolete, or Superseded
T = Termination, Death
V. ADMINISTRATION
A. General
1. The District’s General Manager is the officer in charge of
the administration of this Policy and the implementation of
processes and procedures to ensure that the Record Retention
Schedule is followed.
2. The General Manager is also authorized to make modifications
to these procedures and to the Record Retention Schedule
from time to time to ensure that it is in compliance with
local, state and federal laws including policies and
procedures, the appropriate documents and record categories
for the District; work with the District’s General Counsel
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS RETENTION AND DESTRUCTION 05-A 2/3/10 7/1/16
Page 3 of 4
to monitor local, state and federal laws affecting record
retention; periodically review the record retention and
disposal program; and monitor compliance with this Policy.
B. Suspension of Record Disposal due to Litigation or Claims
In the event the District is served with any subpoena or
request for documents or any employee becomes aware of a
governmental investigation or audit or the commencement of any
litigation against or concerning the District, such employee
shall inform the General Manager and any further disposal of
documents shall be suspended until such time as the General
Manager, with the advice of counsel, determines otherwise. The
General Manager shall take steps to promptly inform all staff
of any suspension in the further disposal of documents.
C. Records Retention Schedule Organization
1. The Record Retention Schedule is organized by type of
records, description of records, governing authority, and
its retention period.
D. Destruction of Records
All records shown on the Records Retention Schedule shall be
retained for the period indicated on the Records Retention
Schedule and may be destroyed thereafter. The General Manager
or designee of the District is authorized to destroy records
of the District according to the Records Retention Schedule
without further authorization from the Board of Directors.
E. Method of Destruction of Records
Official records at the end of their retention period are
eligible for destruction. A destruction approval report is
used to list eligible records and obtain appropriate
approvals. Official records shall not be destroyed if any
legal action, audit or government investigation involving
those records is identified. Destruction of paper records
shall be by shredding or other legally acceptable method. A
Certificate of Destruction or other accepted form of
documentation shall be prepared and saved permanently within
the District’s Retention Management System. Electronic
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS RETENTION AND DESTRUCTION 05-A 2/3/10 7/1/16
Page 4 of 4
records shall be deleted by removing those records from the
system on which they reside and erasing the data. Deleted
electronic records, including emails are considered to have
been disposed/destroyed once they are deleted from the active
computer system and any storage devices.
CITATIONS
B & P – Business and Professions Code
CCP - Code of Civil Procedures
CCR - Code of California Regulations
CEQA - California Environmental Quality Act
CFR - Code of Federal Regulations
CVC - California Vehicle Code
GC - Government Code
H&S - Health & Safety
LC - Labor Code
OMB - Office Management & Budget
OPS - Opinion Attorney General
OSHA - Occupational Safety & Health Act
PC - Penal Code
USC - United States Code
WC - Water Code
Otay Water District - Records Retention Schedule
No. Record Series
Title
Record Series Description Authority Retention (Yrs)
Legal OWD
Event Codes: Printed 4/14/2016 7:37 PM Page 1
A=Annual Financial Audit CCR=Code of Cal. Reg. FY=Fiscal Year OMB=Office Mgmt & Budget R=Revised, Cancelled, Obsolete, Supersede
ACT=Active CEQA=Cal Env Quality Act GC=Cal Goc Code OPS=Opinion Attorney General T=Termination, Death
B&P=Business & Profes Code CFR=Code Fed Regulations H&S=Health & Safety Code OSHA=Occup. Safety & Health Act USC=United States Code
C=Closed, Expired CVC=Calif Vehicle Code L=Life of Facility P=Permanent WC=Water Code
CCP=Code of Civ. Proc. CY=Calendar Year LC=Labor Code Cal PC=Penal Code
1 Accounts Payable Records relating to payment of financial obligations. Includes benefit billing, vendor
invoices, check requests, receiving documents and blue copy of checks.
WC §50942; GC §60201; GC
§12236 FY+7 FY+7
2 Annexation Records relating to Annexation and De-Annexation or Detachment. WC §50942; GC §60201; GC
§12236; WC §60201(d)(10) P P
3 Audits Supporting documentation for financial audits. Records include reports, notes,
account reconciliation, and backup information.
WC §50942; GC §60201; GC
§12236 FY+7 FY+7
4 Availability Listing of Availability Charges. WC §50942; GC §60201; GC
§12236 A+3 A+3
5 Backflow
Compliance
Records include notifications, reports of testing and maintenance of backflow
preventors.
WC §50942; GC §60201; GC
§12236, GC 17 CCR § 7605(f) CY+3 CY+3
6 Bankruptcies Court documents reflecting Otay as a creditor in customer's bankruptcy. WC §50942; GC §60201 A+2 A+2
7 Bank Statements
and Reconciliation
Records relating to banking activities. Includes statements reflecting deposits,
withdrawals, reconciliations, check registers for operating and payroll bank accounts.
GC § 34090; 26 CFR 1.6001-1 A+5 A+5
8 Benefit
Administration
Documentation related to medical benefits including, but not limited to, third party
benefit administrators, medical/prescription drugs, dental insurance, life insurance,
deferred comp, flexible spending accounts, disability insurance, COBRA
administration, retiree billing summary, benefits consultants, CalPERS retirement,
employee assistance program, and pre-paid legal plan.
GC § 6250 et seq.;
OMB A-129;
29 CFR 1602.30, 1602.32
R+7 R+7
9 Benefit Summary
Plan Descriptions Records related to medical, dental, and flexible benefit summary plans. GC § 6250 et seq.; 29 USC §§
1027, 1037; 45 CFR § 160.414 ACT+6 P
10 Board of Directors
Records relating to the Board of Directors including agenda, minutes of the Board of
Directors, staff reports, audio and video recordings, minutes of Board Standing and
Ad Hoc Committee Meetings, and board adopted Resolutions and Code of
Ordinances (code policies and code sections)
WC §50942; GC §60201; GC
§12236; WC §60201(d)(2)&(3) P P
11 Budget - Published
Budgets
Published operating and capital budgets as adopted by the Board of Directors to
include District Strategic Plan, Employee Survey, and Customer Satisfaction
Surveys.
WC §50942; GC §60201; GC
§12236 P P
12 Claims Records related to liability claims and OWD property losses, liability due to vehicle
accidents, property damage due to water main breaks, and FEMA claims.
WC §50942; GC §60201; GC
§12236 ACT+3 ACT+5
13 As Built Plans Includes plans for Potable Water, Sewer, Recycled Water and related facilites WC §50942 P P
Otay Water District - Records Retention Schedule
No. Record Series
Title
Record Series Description Authority Retention (Yrs)
Legal OWD
Event Codes: Printed 4/14/2016 7:37 PM Page 2
A=Annual Financial Audit CCR=Code of Cal. Reg. FY=Fiscal Year OMB=Office Mgmt & Budget R=Revised, Cancelled, Obsolete, Supersede
ACT=Active CEQA=Cal Env Quality Act GC=Cal Goc Code OPS=Opinion Attorney General T=Termination, Death
B&P=Business & Profes Code CFR=Code Fed Regulations H&S=Health & Safety Code OSHA=Occup. Safety & Health Act USC=United States Code
C=Closed, Expired CVC=Calif Vehicle Code L=Life of Facility P=Permanent WC=Water Code
CCP=Code of Civ. Proc. CY=Calendar Year LC=Labor Code Cal PC=Penal Code
14a Contracts and
Agreements (A)
Records relating to obligations under contracts and/or agreements between OWD
and outside parties. Includes banking services, blanket POs, deferral agreements,
financial services, general consulting, general contracts, general services, general
interagency agreements, Joint Participation Agreements (JPA), lobbying files, labor
services, leases, legal services, service/maintenance, sewer contracts and non-CIP
warranties.
WC §50942; GC §60201; GC
§12236; CCP §§ 336a, 337, 337.2,
343; B&P §7042.5; GC §4004;
H&S § 19850
T+5 non
capital T+10
14b Contracts and
Agreements (B)
Records relating to obligations under contracts and/or agreements between OWD
and outside parties. Includes contruction services, design consulting, environmental
consulting, management construction, professional engineering services, professional
environment services, and reimbursement agreements, CIP, development agreements
and warranties.
WC §50942; GC §§ 4004, 12236,
60201; CCP §§ 336a, 337, 337.1,
337.2, 337.5, 337.6, 337.15, 343;
H&S § 19850
T+10 T+20
14c Contracts and
Agreements (C)
Records relating to obligations under contracts and/or agreements between OWD
and outside parties. Includes permanent interagency agreements, Land Use and
Memorandums of Understanding (MOU)
WC §50942; GC §§ 4004, 12236,
60201; CCP §§ 336a, 337, 337.1,
337.2, 337.5, 337.6, 337.15, 343;
H&S § 19850
P P
15a Correspondence
(A)
Records relating to internal and external communications including, but not limited
to, memos, reports, faxes and letters. Correspondence of a general nature, not related
to any specific projects or contracts.
WC §50942; GC §60201; GC
§12236 3 3
15b Correspondence
(B)
Records relating communications including, but not limited to, memos, reports, faxes
and letters related to potential or future development normally generated by Public
Services.
WC §50942; GC §60201; GC
§12236 3 10
16 Corrosion Control
Records
Records relating to corrosion control tests, methods, procedures, test data, reports
and cathodic protection.
WC §50942; GC §60201; GC
§12236; 40 CFR 141.91 CY+12 CY+12
17 County Collected
Revenues
Revenues collected through the county tax rolls including portion of the 1% property
tax, availability fees, debt related assessment and delinquencies.
WC §50942; GC §60201; GC
§12236 A+3 A+3
18 Debt
Records relating to long-term debt having to do with bonds and loans, including but
not limited to Certificates of Participation (COPS), General Obligation Bond, Water
Revenue Bond, State Sewer Loan and State Water Resource Control Board
WC §50942; GC §60201; GC
§12236; CCP §337.5 C+10 P
19 District Policies &
Guidelines
Records providing administrative procedures and guidelines that are approved by the
Board of Directors, including but not limited to Human Resources policies and
purchasing manual.
WC §50942; GC §60201; GC
§12236 R+2 R+5
Otay Water District - Records Retention Schedule
No. Record Series
Title
Record Series Description Authority Retention (Yrs)
Legal OWD
Event Codes: Printed 4/14/2016 7:37 PM Page 3
A=Annual Financial Audit CCR=Code of Cal. Reg. FY=Fiscal Year OMB=Office Mgmt & Budget R=Revised, Cancelled, Obsolete, Supersede
ACT=Active CEQA=Cal Env Quality Act GC=Cal Goc Code OPS=Opinion Attorney General T=Termination, Death
B&P=Business & Profes Code CFR=Code Fed Regulations H&S=Health & Safety Code OSHA=Occup. Safety & Health Act USC=United States Code
C=Closed, Expired CVC=Calif Vehicle Code L=Life of Facility P=Permanent WC=Water Code
CCP=Code of Civ. Proc. CY=Calendar Year LC=Labor Code Cal PC=Penal Code
20 DMV Driving records including DMV Pull notice.
WC §50942; GC §60201; GC
§12236; CVC 1808.45/ .46/.47;
GC §12946; 8 USC 1324(a)
CY+7 CY+7
21 Drug & Alcohol
Tests
Confidential records relating to drug and alcohol testing (random and suspicious,
excluding pre-employment and previous employer).
WC §50942; GC §60201; GC
§12236; USDOT title 49 CY+7 CY+7
22
Employee
Eligibility &
Benefit Files
Records relating to individual employee benefits. Files may include, but are not
limited to, enrollment forms and change requests for health, life, dental, vision,
deferred comp pension, long term disability insurance, leave of absence, computer
loan and tuition reimbursement. Records relating to immigration documentation,
eligibility to work in the U.S. (I-9 form).
WC §50942; GC §60201(12); GC
§12236; WC §60201(d)(10); GC
6250 et seq.; OMB A-129; 29 CFR
1602.30; 29 CFR 1602.32
T+7 T+7
23 Employee MOU
Employee MOU. Records including negotiations and amendment to MOU (side
letter agreement). Documentation related to employee association negotiations,
current enforced MOU and history.
WC §50942; GC §60201; GC §
12236; 29 USC §§ 203, 207, 211 P P
24 Employee
Personnel Files
Records relating to individual employees. Includes employment applications,
employment actions (e.g., promotions, reclassifications, transfers, discipline, and
salary information), performance evaluations, educational documents, and separation
documents. Upon employee separation, additional information such as reference
checks, ethnicity and disclosures.
WC §50942; GC §60201; GC
§12236 T+7 T+7
25 Employee
Relations
Records relating to association representatives including correspondence, employee
association financial statement, employees’ association election representation,
reported grievances and actions taken, and documents related to employee
investigations.
WC §50942; GC §60201; GC
§12236; GC § 12946; 29 USC
211; 29 CFR 1602
C+2 C+10
26 Employee Surveys
Records may include, but are not limited to, forms completed by OWD employees in
response to questions regarding OWD administrative policy, departmental policy or
amenities.
WC §50942; GC §60201; GC
§12236; GC § 12946; 29 USC
516.6(2); 29 CFR 1602.14
CY+2 CY+10
27 Employee Training
Records related to employee training on district policies, procedures, and
orientations including training logs/sign-in sheets. Training includes, but is not
limited to, safety, tailgate, HAZWOPER and employee trainings.
WC § 50942; GC § 60201; GC §§
6250 et seq.; GC § 34090
CY+7 or
T+7
CY+7 or
T+7
28
Environmental
Studies
Records related to environment studies not specific to projects such as Multiple
Species Conservation Program and Habitat Management Area (HMA) reports.
WC §50942; GC §60201; GC §
12236; CCP § 338; GC § 34090;
14 CCR §§ 15000 et seq.
CY+7,
C/CY+2 or
P
P
Otay Water District - Records Retention Schedule
No. Record Series
Title
Record Series Description Authority Retention (Yrs)
Legal OWD
Event Codes: Printed 4/14/2016 7:37 PM Page 4
A=Annual Financial Audit CCR=Code of Cal. Reg. FY=Fiscal Year OMB=Office Mgmt & Budget R=Revised, Cancelled, Obsolete, Supersede
ACT=Active CEQA=Cal Env Quality Act GC=Cal Goc Code OPS=Opinion Attorney General T=Termination, Death
B&P=Business & Profes Code CFR=Code Fed Regulations H&S=Health & Safety Code OSHA=Occup. Safety & Health Act USC=United States Code
C=Closed, Expired CVC=Calif Vehicle Code L=Life of Facility P=Permanent WC=Water Code
CCP=Code of Civ. Proc. CY=Calendar Year LC=Labor Code Cal PC=Penal Code
30 Financial Reports
and Statements
Records relating to audits performed by contracted auditors including
Comprehensive Annual Financial Report (CAFR), State Controller’s Report and
Single Audit Report.
WC §50942; GC §60201; GC
§12236
ACT+4/7
* P
31a Fixed Assets
(Infrastructure)
Purchase of infrastructure assets, equipment, and facilities, related to Bond Debt WC §50942; GC §60201; GC
§12236
P P
31b Fixed Assets (Non-
infrastructure)
Purchase of non-infrastructure assets, equipment, and facilities, not related to Bond
Debt
WC §50942; GC §60201; GC
§12236; GC §§ 6250 et seq.
L+2 L+2
32 Fuel and Oil Usage
Files Records documenting the amount of fuel delivered and dispensed. WC §50942; GC §60201; GC
§12236; CCP §337 A+3 CY+7
33 Fuel Storage Tanks Records relating to leak detection monitoring, cleanup, and condition of fuel storage
tanks.
WC §50942; GC §60201; GC
§12236 P P
34a GL Journal Entries Records including General Journal Entry Posting (Located in IG General Ledger). WC §50942; GC §60201; GC
§12236
P p
34b GL Journal
Vouchers Records including General Journal Vouchers and supporting documentation. WC §50942; GC §60201; GC
§12236 A+4 A+4
35 Grants
Records relating to City, State, and Federal requests and approvals for new and on-
going District projects whether as an individual agency or in conjunction with
member agencies. This includes grant applications, grants and grant agreements.
This excludes CIP related grants.
WC §50942; GC §60201; GC
§12236 C+5 C+5
36 Hazardous
Compliance Plans
Documents related to compliance plans for hazardous material including
Underground Storage Tank (UST) Monitoring System Certification, UST Response
Plan, UST Monitoring Plan and Spill Prevention and Countermeasure (SPCC) Plan
WC §50942; GC §60201; GC
§12236; Cal OSHA; 40 CFR
122.21; GC § 34090
CY+2,
CY+10 or
P
P
37 Hazardous
Material
Records related to the use of hazardous waste, hazardous materials, chemicals leaks
and spills, chlorine, and asbestos records. Includes asbestos training records, asbestos
medical records, handling, transportation, use, generation and disposal of hazardous
waste, chemical spill cleanup, disposal manifests, removal receipts, sludge reports
and fees, pesticides/herbicide, material safety data sheets and environment workplace
safety sampling and studies
WC §50942; GC §60201; GC
§12236; Cal OSHA; 40 CFR
122.21
P P
38 Incident Reports
Records relating to accidents/incidents, including vehicle, property and personnel.
Includes but is not limited to, investigation reports, public complaints, traffic
collision coding, and report of traffic accidents occurring in CA.
29CFR 1904.2, 29 CFR 1904.6 C+7 C+7
39 Incorporation
Records State approved formation documents creating the Otay Municipal Water District. WC §50942; GC §60201(1); GC
§12236 P P
Otay Water District - Records Retention Schedule
No. Record Series
Title
Record Series Description Authority Retention (Yrs)
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Event Codes: Printed 4/14/2016 7:37 PM Page 5
A=Annual Financial Audit CCR=Code of Cal. Reg. FY=Fiscal Year OMB=Office Mgmt & Budget R=Revised, Cancelled, Obsolete, Supersede
ACT=Active CEQA=Cal Env Quality Act GC=Cal Goc Code OPS=Opinion Attorney General T=Termination, Death
B&P=Business & Profes Code CFR=Code Fed Regulations H&S=Health & Safety Code OSHA=Occup. Safety & Health Act USC=United States Code
C=Closed, Expired CVC=Calif Vehicle Code L=Life of Facility P=Permanent WC=Water Code
CCP=Code of Civ. Proc. CY=Calendar Year LC=Labor Code Cal PC=Penal Code
40 Insurance Policies
Records relating to contracts for liability coverage involving employee on the job
injuries, OWD property, or third property liability, owner - controlled insurance
program, aircraft, crime, travel accident and contracts for insurance brokers.
WC §50942; GC §60201; GC
§12236 P P
41a Interagency Files
(General)
Records such as correspondences, reports, interagency billing relating to cities and
other interagencies including but not limited to San Diego County Water Authority,
Metropolitan Water District, sister agencies (Padre, Helix, Sweetwater, etc.), City of
Chula Vista, City of San Diego, County of San Diego, State of California, Water
Conservation Garden JPA, and California Urban Water Conservation Council
WC §50942; GC §60201; GC
§12236 CY+2 CY+2
41b Interagency Files
(Permanent)
Records such as correspondences, reports, including election card filing, and
statement of economic interest relating to cities and other interagencies including but
not limited to San Diego County Water Authority, Metropolitan Water District, and
LAFCO
WC §50942; GC §60201; GC §
34090; GC §§ 6250 et seq.; GC §
81009
T+7 or P P
42 Investment Records relating to purchase contract documentation of investments.
WC §50942; GC §60201; GC
§12236; WC §60201(d)(10); 26
CFR 1.6001-1
A+5 A+5
43 Job Descriptions Current and historical job descriptions. WC §50942; GC §60201; GC
§12236 SU+2 R+10
44 Laboratory
Analysis
Records of all laboratory analysis performed by the District or external laboratories.
Analysis for potable, reclaimed water systems, and reclamation plant. Receipt of
samples, tracking sheets, lists and logs showing locations and dates of samples. This
excludes CIP related lab analysis.
WC §50942; GC §60201; GC
§12236 CY+12 CY+12
45 Land Surveys
Records relating to information on control and boundary monuments, above and
below ground structures including but not limited to survey books, field books, and
data.
WC §50942; GC §60201; GC
§12236; 40 CFR 141.33 CY+10 P
46 Legal Opinions
(Confidential) Records relating to legal opinions on issues, problems and policies impacting OWD. GC § 34090; GC § 6254 R+2 R+2
47 Liens Liens on Properties/Parcels for unpaid debts. WC §50942; GC §60201; GC
§12236 A+3 A+3
48 Litigation Records relating to threatened, pending or settled litigation. This excludes CIP
related claims.
WC §50942; GC §60201; GC
§12236; CCP §583.320(a)(3) C+3 C+6
49 Medical and
Exposure Records
Records related to medical examination/exposure including, but not limited to,
substance, hearing, and respirator testing.
WC §50942; GC §60201; GC
§12236; 29 CFR 1910.1020 T+30 P
Otay Water District - Records Retention Schedule
No. Record Series
Title
Record Series Description Authority Retention (Yrs)
Legal OWD
Event Codes: Printed 4/14/2016 7:37 PM Page 6
A=Annual Financial Audit CCR=Code of Cal. Reg. FY=Fiscal Year OMB=Office Mgmt & Budget R=Revised, Cancelled, Obsolete, Supersede
ACT=Active CEQA=Cal Env Quality Act GC=Cal Goc Code OPS=Opinion Attorney General T=Termination, Death
B&P=Business & Profes Code CFR=Code Fed Regulations H&S=Health & Safety Code OSHA=Occup. Safety & Health Act USC=United States Code
C=Closed, Expired CVC=Calif Vehicle Code L=Life of Facility P=Permanent WC=Water Code
CCP=Code of Civ. Proc. CY=Calendar Year LC=Labor Code Cal PC=Penal Code
50 Payroll Records related to employee payroll file including garnishment/court orders,
employee deduction (W-4 Form), tax levies and CalPERS Summary Report.
WC §50942; GC §60201; GC
§12236; 29 CFR 516.6 T+7 T+7
51 Pension Records related to employee pensions prior to 1995, excluding CalPERS. WC §50942; GC §60201; GC
§12236; 29 CFR 516.6 30Y 2025
52 Permits, Licenses
and Certifications
District-wide permits, licenses and certifications required for business including, but
not limited to, hazardous material permit, radio station authorization, APCD, storm
water general permit, waste discharge requirement, master reclamation permit, EPA
identification number, RW site certification, underground storage tank operating
permit, lab certification and permit to operate air pressure tank.
WC §50942; GC §60201; GC
§12236; T+4 T+4
53 Procedures &
Guidelines
Records providing administrative procedures and guidelines that are approved by the
General Manager or at the departmental level for operating day-to-day business.
This includes departmental procedures, guidelines, standard operating procedures,
employee handbook, performance evaluation manual, records retention schedule, and
other required program for disaster and emergency management plans such as
National Incident Management System (NIMS) Emergency Management Plan,
Standardized Emergency Management Plan (SEMS), Injury Illness Prevention
Program (IIPP), Fire Department Emergency Plans, evacuation plans, vulnerability
assessment, emergency response inspection requirements and first response training
records.
WC §50942; GC §60201; GC
§12236
R+2
(while
active)
R+5
54 Projects
Records relating to the construction of OWD projects (CIP, Non-CIP, and
Developer). This includes, but is not limited to, engineering test records,
environmental reports, daily construction reports, study reports, task orders, design
reports, developer bonds, reimbursement request, claims, grants, warranties, and
miscellaneous project files.
GC § 34090; CCP § 337.15 C+10 C+20
55 Public Notices Notices pertaining to public hearings for availability fees, rate increases,
annexations, detachments, water conservation, and environment impact.
WC §50942; GC §60201; GC
§12236 P P
56
Public Services
District Fees and
Deposits
Calculation of Public Services District Fees and Deposits filed quarterly by fiscal
year. This includes annexation and capacity fees.
WC §50942; GC §60201(d)(10);
GC §12236 P P
57 Real Property
Records related to the property and structural purchase including drawings, grant
deeds, title transfers, beneficiary, escrow instruction, appraisal, quitclaims, easement,
outside user easements, exclusive easement, encroachment and use of private laterals
(sphagetti lines).
WC §50942; GC §60201; GC
§12236; 24 CFR 570.502(b)(3) P P
Otay Water District - Records Retention Schedule
No. Record Series
Title
Record Series Description Authority Retention (Yrs)
Legal OWD
Event Codes: Printed 4/14/2016 7:37 PM Page 7
A=Annual Financial Audit CCR=Code of Cal. Reg. FY=Fiscal Year OMB=Office Mgmt & Budget R=Revised, Cancelled, Obsolete, Supersede
ACT=Active CEQA=Cal Env Quality Act GC=Cal Goc Code OPS=Opinion Attorney General T=Termination, Death
B&P=Business & Profes Code CFR=Code Fed Regulations H&S=Health & Safety Code OSHA=Occup. Safety & Health Act USC=United States Code
C=Closed, Expired CVC=Calif Vehicle Code L=Life of Facility P=Permanent WC=Water Code
CCP=Code of Civ. Proc. CY=Calendar Year LC=Labor Code Cal PC=Penal Code
58 Recruitment /
Selection Files Records relating to the interview and selection process for prospective employees.
GC §12946; GC §6250 et. seq.; 29
CFR 1602, et. seq.; 29 CFR 1607,
29 CFR 1627.3
C+3 C+3
59 Regulatory
Compliance
Regulatory compliance records required by outside agencies to include, but not be
limited, to Air Pollution Control District (APCD), Air Resource Board (ARB),
Bureau of Automotive Repair (BAR), Division of Drinking Water (DDW) of the
California Water Board, California Highway Patrol (CHP), California Occupational
Safety and Health Program (CalOSHA), California Regional Water Quality Control
Board (CRWQCB), California State Board of Equalization (BOE), Department of
Environmental Health (DEH), Employment Development Department (EDD),
Environmental Laboratory Accreditation Program (ELAP), Equal Employment
Opportunities Commission (EEOC), Internal Revenue Service (IRS), Local Agency
Formation Commission (LAFCO). San Diego Regional Water Quality Control Board
(SDWQCB) and Social Security Administration (SSA)
WC §50942; GC §60201; GC
§12236; GC § 34090 CY + 12 P
60a Reports and
Studies
Records related to reports and studies completed by outside vendors or in-house on
areas that impact the operations of OWD. This includes, but is not limited general
reports and studies, customer surveys and appraisals of properties for possible
acquisition. Records related to reports and studies completed by outside vendors or
in-house on areas that impact the operations of OWD. This includes but is not
limited project technical reports, Sub-Area Master Plan (SAMP) and Water Resource
Master Plan. Program Environmental Impact Report (PEIR), Integrated Water
Resources Plan, Urban Water Management Plan and Water Supply Assessment and
Verification Reports.
WC §50942; GC §60201; GC
§12236; GC § 34090; GC § 6294
C+2 or CY
+ 2
P
61
Request for
Proposals (RFP)/
Invitation for Bids
Records related to request for proposals, invitation for bids, proposals, bids and
quotations.
WC §50942; GC §60201; GC
§12236 C+2 C+2
62 Safety
Records relating general nature of safety and risk management, including but not
limited to safety inspection forms, hot permits, confine space entry, lockout/tagout,
ergonomic, full body harness, and trenching/excavation.
WC §50942; GC §60201; GC
§12236; 29 CFR 1904.4; OMB
1220-0029
C+5; R+2 CY+5
63 Salary
Administration
Records relating to collected survey data used in determining and monitoring
compensation for various OWD classifications.
WC §50942(12); GC §60201; GC
§12236; OMB 1220-0029 C+7 C+7
Otay Water District - Records Retention Schedule
No. Record Series
Title
Record Series Description Authority Retention (Yrs)
Legal OWD
Event Codes: Printed 4/14/2016 7:37 PM Page 8
A=Annual Financial Audit CCR=Code of Cal. Reg. FY=Fiscal Year OMB=Office Mgmt & Budget R=Revised, Cancelled, Obsolete, Supersede
ACT=Active CEQA=Cal Env Quality Act GC=Cal Goc Code OPS=Opinion Attorney General T=Termination, Death
B&P=Business & Profes Code CFR=Code Fed Regulations H&S=Health & Safety Code OSHA=Occup. Safety & Health Act USC=United States Code
C=Closed, Expired CVC=Calif Vehicle Code L=Life of Facility P=Permanent WC=Water Code
CCP=Code of Civ. Proc. CY=Calendar Year LC=Labor Code Cal PC=Penal Code
64 Security Records Records relating to the security issues for facilities, includes police incident reports. WC §50942; GC §60201; GC
§12236 CY+2 CY+5
65
Surplus
Declaration and
Disposal
Records related to the surplus declaration and disposal of District minor assets as any
individual items (materials, supplies, and equipment) which had an acquisition cost
of $5,000 or less.
WC §50942; GC §60201; GC
§12236; GC § 34090 CY+2 CY+5
66 Tax Reports
Tax report filing including but limited to Payroll Tax Forms (DE6, W2, 941), AP
Tax Forms (1096, 1099 and W-9 Forms), Form 5500F, Form 990N, Underground
Storage Tank Maintenance Fee Return, Government Entity Diesel Fuel Tax Return,
and State, Local and District Sales and Use Tax Return
WC §50942; GC §60201; GC
§12236; GC § 34090 CY + 15 P
67 Underground
Utilities
Records regarding notices for the location of underground utilities for purpose of
digging.
WC §50942; GC §60201; GC
§12236; GC § 4003, GC § 4004;
H&S § 19850
P P
68 Water
Conservation
Records relating to Water Conservation programs, IAWP (SAWR) Reduction Plan,
large and residential survey reports.
WC §50942; GC §60201; GC
§12236 C+2 C+2
69
Workers'
Compensation
Files
Records relating to Workers' Compensation. Records include checks, injuries,
litigated and non-litigated cases, and ergonomic records of work site
inspections/recommendations (maintained in HR). Includes 300, 300A and 301
forms.
WC §50942; GC §60201; GC
§12236; 8 CCR § 15400.2; Cal.
Labor Code § 110, et seq.
P P
70 Email System
Email and voicemail system backup; transitory records that are informal
communications produced via computer or electronic devices to include routine
requests for information, routine communication containing no substantive
information. Official Email records pertaining to record description (this document)
will be retained according to retention schedule.
GC §60201; GC § 34090
OPS §80-1006 100 Days 100 Days
72 District Services
Permits
Records related to District meter services including but not limited to water, sewer
and recycled services, Service Installation Requests (SIRs), fire services,
annexations, plan checks and legacy Water Sewer Orders (WSOs).
WC §50942; GC §60201(d)(10);
GC §12236 P P
75 Certificate of
Destruction
Records relating to desctruction of documents, including certificate of destruction,
invoices and destruction approval reports.
WC §50942; GC §60201; GC
§12236; GC § 34090 P P
76 Recycled Water
Sites
Records relating to OWD recycled water use sites. This includes, but is not limited
to, test reports, inspection reports, controller charts, recycled water use agreements,
data sheets, approval letters, and general correspondence.
WC §50942; GC §60201; GC
§12236; GC § 34090 P P
77 Records Retention
Program Records – Schedules, Destruction Records, Policy, and Procedures GC §60201 P P
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: May 4, 2016
SUBMITTED BY:
Armando Buelna
Communications Officer
PROJECT: DIV. NO. 5
APPROVED BY:
Mark Watton, General Manager
SUBJECT: Adopt a Position of Support on Assembly Bill 2470 (Gonzalez),
Relating to the Provision of Water Service to Tribal Lands
Outside of a Water District’s Service Area.
GENERAL MANAGER’S RECOMMENDATION:
That the Board of Directors adopt a position in support of Assembly
Bill 2470 (Gonzalez), relating to the provision of water service to
tribal lands outside of a water district’s service area.
COMMITTEE ACTION:
N/A
PURPOSE:
To adopt a position in support of Assembly Bill 2470 (Gonzalez)
relating to the provision of water service to tribal lands outside of
a water district’s service area.
ANALYSIS:
If enacted, Assembly Bill 2470 would facilitate the provision of
water service to tribal lands while recognizing tribal sovereignty.
Authored by Assemblywoman Lorena Gonzalez, AB 2470’s principal co-
author is State Senator Joel Anderson. AB 2470 is sponsored by the
Sycuan Band of the Kumeyaay Nation and only applies to Sycuan tribal
lands.
AB 2470, as amended on April 12, 2016, upon the request of the tribe,
would require an adjacent water district to provide water service to
tribal lands located outside of a water district’s service area, at
substantially the same terms available to other current district
customers, when specific conditions are met. For instance, it would
require Sycuan to make all required payments as if it were annexed
into a municipal water district’s service area, and would make
payments a condition of continued service of water by the district.
AB 2470 would also deem the service area of a municipal water
district, and any public agency providing water service to the
district, to include those tribal lands. In effect, AB 2470 would
create a “virtual annexation” process for Sycuan tribal lands.
BACKGROUND
Sycuan is one of the 18 federally recognized Tribal Nation
Reservations in San Diego County. The Sycuan Band is a sovereign
government and is therefore not subject to state and local laws and
regulations, except for those required under a Compact with the State
of California. Sycuan borders the Padre Dam Water District and the
Otay Water District on three sides.
For years, Sycuan has been interested in securing imported water
service including submitting a petition to annex the original
reservation parcels to Otay in 2008, later withdrawing the annexation
application. It has also paid to extend a water line within the Padre
Dam’s service area to the boundary of the original reservation.
In a document shared by Sycuan outlining the need for this
legislation, it states in part:
“To ensure the public’s safety in the event of a wildfire,
earthquake, prolonged drought or other public emergency, Sycuan
needs legislation requiring either adjoining municipal water
district to serve the developed portions of the original
Reservation, assuming the tribe pays all necessary and
appropriate charges as any other similarly situated development
or government entity. Legislation would also reflect the unique
government-to-government relationship between the tribe and the
state.”
Under existing law, the Cortese-Knox-Hertzberg Act, the state
Legislature delegated the power to control the boundaries of cities
and special districts to Local Agency Formation Commissions (LAFCOs).
The Act prohibits water districts from providing water service to the
lands outside their boundaries, unless the area is annexed within
their boundaries or they obtain written approval to serve territory
outside their boundaries.
Provision of water service would therefore require LAFCO’s approval,
annexation to either Padre Dam or Otay, and annexations to the
Metropolitan Water District of Southern California (MWD) and the San
Diego County Water Authority (CWA). This also subjects the tribe to
MWD's Administrative Code, the County Water Authority Act, CWA's
Annexation Policies and Procedures, as well as those of the retail
water district.
In its communications, Sycuan cites “artificial state-created
processes” that make the provision of water service to the
reservation lengthy, costly, unnecessary, and with uncertain
outcomes. By amending existing law, Sycuan is asking the state
Legislature to recognize a government-to-government relationship with
the tribe, and enact a new relationship that better reflects the
unique circumstances that exist between the tribe and the state.
As noted, this legislation is proposed by the Sycuan Band of the
Kumeyaay Nation and was authored by Assemblywoman Gonzalez with
Senator Anderson as its principle co-author. It is also co-authored
by:
Assemblymember Toni Atkins
Assemblymember Brian Jones
Assemblymember Brian Maienschein
Assemblymember Shirley Weber
Senator Marty Block
Senator Ben Hueso
The number of co-authors suggests local state officials are willing
to create this new relationship between Sycuan and the state.
On April 12, 2016, Metropolitan’s board of directors considered this
legislation and voted to support AB 2470, if amended. On April 20,
2016, CWA also took a Support position on AB 2470.
CWA, Otay, and Padre Dam have been actively engaged in modifying AB
2470 and will continue to work closely with the author’s office. It
is anticipated that, if enacted, a side letter agreement would be
developed to memorialize the terms of water service delivery between
the water district and the Sycuan Band of the Kumeyaay Nation.
This matter was not contemplated when adopting the 2016 Legislative
Program. AB 2470 will be acted upon this legislative session and
could impact Otay Water District, which necessitates bringing this
matter to the Board’s attention.
Staff is recommending that the Board adopt a position in support of
AB 2470.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
There is no direct fiscal impact associated with consideration of
adopting policy positions on legislation.
STRATEGIC GOAL:
Actively manage water supply and demand.
LEGAL IMPACT:
None.
Attachments: Attachment A – Assembly Bill 2470
Attachment B – Legislative Analysis of AB 2470
Attachment C – Sycuan Band of the Kumeyaay Nation’s
Municipal Water Availability
Situational Analysis, page 223.
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: May 4, 2016
SUBMITTED BY: Mark Watton,
General Manager
W.O./G.F. NO: DIV. NO.
APPROVED BY:
Susan Cruz, District Secretary
Mark Watton, General Manager
SUBJECT: Board of Directors 2016 Calendar of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting
calendar for 2016 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2016 Board of Director’s meeting calendar
and amend the schedule as needed.
COMMITTEE ACTION:
N/A
ANALYSIS:
The Board requested that this item be presented at each meeting so
they may have an opportunity to review the Board meeting calendar
schedule and amend it as needed.
STRATEGIC GOAL:
N/A
FISCAL IMPACT:
None.
LEGAL IMPACT:
None.
Attachment: Calendar of Meetings for 2016
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 5-4-16.doc
Board of Directors, Workshops
and Committee Meetings
2016
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 6, 2016
February 3, 2016
March 2, 2016
April 6, 2016
May 4, 2016
June 1, 2016
July 6, 2016
August 3, 2016
September 7, 2016
October 5, 2016
November 2, 2016
December 7, 2016
January 20, 2016
February 17, 2016
March 16, 2016
April 20, 2016
May 18, 2016
June 15, 2016
July 20, 2016
August 17, 2016
September 21, 2016
October 19, 2016
November 16, 2016
December 21, 2016
SPECIAL BOARD MEETINGS:
May 23, 2016, 3:00 p.m. - Fiscal Year 2017 Budget Workshop
STAFF REPORT
TYPE
MEETING:
Regular Board
MEETING
DATE:
May 4, 2016
SUBMITTED
BY:
Mark Watton
General Manager
W.O./G.F.
NO:
N/A DIV.
NO.
N/A
APPROVED BY:
Mark Watton, General Manager
SUBJECT: General Manager’s Report
ADMINISTRATIVE SERVICES:
Purchasing and Facilities:
Trane Tracer Summit Building Management Update – The District’s
Operations and Administrative HVAC systems are managed by Trane’s
Tracer Building Management software. The latest version provides
convenient management tools to more efficiently run each system. By
fine-tuning schedules and room occupancies, the District can expect
summertime air conditioning savings of 15% and more.
Human Resources: 2016 Employee Picnic and Holiday Party – Please mark your calendars
to attend our Picnic and Holiday Party. The Picnic will be held at
Rohr Park in Chula Vista on July 16th from 11:00 am – 4:00 pm., and
the Holiday Party will be held at the Harbor House in Seaport
Village on December 10th from 6:00 pm – 11:00 pm.
Recruitments/New Hires – The District is recruiting for a
Communications Officer and is preparing to recruit for a
Construction Inspector I/II. These positions are critical to
District operations.
New Hires/Promotions – There were no regular new hires/promotions
in the month of April.
Safety & Security:
• Emergency Preparedness WebEOC Training Exercise - Staff completed
the April 2016 monthly exercise, which consisted of assigning a
task/request for emergency resources to the San Diego County Water
2
Authority in Task Tracker and using/attaching the Mutual Aid
request form.
Training – Staff attended/completed the following:
o District Revised Confined Space (CS) Entry Procedures Program –
District staff received refresher training/instruction on the
revised/updated District CS entry procedures program and
associated forms.
o District Hearing Conservation Program - The 2016 annual hearing
testing as part of the District’s regulatory compliance Hearing
Conservation Program was completed. The results were zero cases
reporting occupational hearing Standard Threshold Shifts. There
is no further action required on the part of the District.
INFORMATION TECHNOLOGY AND STRATEGIC PLANNING:
Update on Co-Location and Redundancy Services – As part of our
Disaster Recovery plan, staff has completed the installation of
enterprise redundant computing equipment at a local San Diego co-
location datacenter. Services include, Eden Financials, SharePoint,
GIS and Customer Service systems. Staff will be conducting fail-
over testing and fine-tuning during the next 90 days.
InfraMap for Wachs Machine – Staff has deployed the Wachs mobile
solution for field valve exercising and data collection. The Wachs
mobile solution offers automation of data collection, which allows
field crews to record valve-exercising data (e.g., turns, high
torque) electronically, resulting in greater efficiency.
FINANCE:
FY 2017 Budget – Staff is preparing the FY 2017 Budget and six-year
CIP plan, which is scheduled to be presented to the Board of
Directors on May 23, 2016.
Capacity Fee RFP – Staff is preparing to issue a request for
proposals (RFP’s) to perform a capacity fee study.
Comprehensive Annual Financial Report (CAFR) Award – For the 12th
consecutive year, a Certificate of Achievement for Excellence in
Financial Reporting was awarded by the Government Finance Officers
Association (GFOA), to the Finance Department for the CAFR for the
fiscal year ended June 30, 2015. This is the highest form of
recognition in governmental accounting and financial reporting.
Its attainment is recognized in the industry as a significant
accomplishment by a government agency and its management.
District’s Landscape Contest Winner - Barbara and Nick Amafitano’s
residence at 526 Trailridge Drive, Bonita, was selected as the
District’s 2016 Landscape Contest winner. Participating in turf
removal rebate programs, 4,300 square feet of grass was removed and
replaced with water conserving drought tolerant landscape. In the
14 years they have occupied the home, the water usage has been
3
reduced by an impressive 78% when comparing the highest annual
recorded usage compared to the lowest with all the grass
removed. Due to a previous family commitment, they will not be able
to attend the Landscape Contest Awards Ceremony scheduled for
Saturday, May 7, 2016, at the Water Conservation Garden.
2007 Certificate of Participation (COPs) Advanced Refunding - The
District was successful in the advanced refunding of the 2007 COPs
on April 26, 2016. In March, staff had informed the Board that
based on the then current rates, the estimated savings was 8% or
$170,000 annually. On the day of the sale, there were 8 bids, with
the winning bid from JP Morgan of 2.48%. This favorable bid, in
combination with the general lowering of interest rates, resulted
in a savings of 13.06% or $269,721 annually. The total savings over
the life of the bonds is $5,664,140. Staff is very pleased with the
results of this refinancing and appreciates the support of the
Board in making this happen. Staff also acknowledges the good work
and assistance from Suzanne Harrell, our financial advisor, and Bob
Whalen, our bond counsel for the success of this refunding.
Upcoming Outreach Events:
o May 7, 2016: Landscape Contest Awards Ceremony at the Water
Conservation Garden
o May 14, 2016: Butterfly Festival at the Water Conservation
Garden
Financial Reporting:
o For the nine months ended March 31, 2016, there are total
revenues of $60,307,482 and total expenses of $61,828,163. The
expenses exceeded revenues by $1,520,681. The reduced water
sales from conservation is driving the year-to-date expenses to
exceed the year-to-date revenue.
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of March 31, 2016 total
$81,265,677 with an average yield to maturity of 0.79%. The
total earnings year-to-date are $490,985.
ENGINEERING AND WATER SYSTEM OPERATIONS:
Engineering:
927 Zone, Force Main Assessment and Repair Project: This Project
consists of inspection, condition assessment, and repair of the
existing Ralph W. Chapman Water Reclamation Facility (RWCWRF) 1980
era, 16,000 feet long, 14-inch diameter steel force main. Due to
the presence of cultural resources (artifacts) found at several
work sites, the project was delayed such that Pipeline Inspection
and Condition Analysis Corporation (PICA) will return to inspect
the lower 12,000 feet of force main and construction of force main
improvements on October 2016. Blow off replacements, cathodic
4
protection system rehabilitation, and other improvements will be
publicly advertised for construction bids in late May 2016. (R2116)
SR-11 Potable Water Utility Relocations: This project consists of
the relocation of existing pipelines in Sanyo Avenue and utility
easements and is currently in the construction phase. The
contractor, Coffman Specialties Inc., has relocated the 10-inch,
12-inch, and 18-inch mains and these mains have been tied into the
system. In April 2016, the contractor completed punch list items
consisting of final contract submittals. It is anticipated that
this construction contract will reach contract acceptance in May
2016. A second amendment to both Caltrans Utility Agreement
Numbers 33592 and 33622, and final reimbursement payments, will be
processed after closeout of Coffman’s contract. The overall
project is within budget and on schedule. (P2453)
944-1, 944-2, & 458-2 Reservoir Interior/Exterior Coatings &
Upgrades: This project consists of removing and replacing the
interior and exterior coatings of the 944-1 0.3 MG Reservoir, the
944-2 3.0 MG Reservoir, and the 458-2 1.8 MG Reservoir, along with
providing structural upgrades to ensure the tanks comply with both
State and Federal OSHA standards as well as the American Water
Works Association and the County Health Department standards. The
overall project reached substantial completion on December 3, 2015
(beyond the approved contract date). A credit change order to
complete the assessment of liquidated damages associated with the
project’s late delivery was processed unilaterally, as approved by
the Board in February 2016. Punch list items that consisted of
final administrative deliverables were resolved and contract
acceptance was processed in April 2016. The District has received
a total of four (4) Stop Payment Notices from subcontractors on the
project. The District has been notified that three (3) of the Stop
Payment Notices have been resolved. In accordance with applicable
State law, the District is withholding funds and retaining contract
bonding until the District is notified of resolution associated
with the remaining Stop Payment Notice. The project is within
budget. (P2531, P2532, P2535)
624 Pressure Zone Pressure Reducing Stations (PRSs) and 944-1R
Pressure Reducing Station No. 3 Improvements Projects: This
construction project consists of improvements from two (2) Capital
Improvement Program (CIP) projects, P2541 and R2110. The CIP P2541
improvements will provide two (2) PRSs feeding the 485 Pressure
Zone and 458 Pressure Zones from the 624 Pressure Zone (Terra Nova
Drive 624/485 PRS and Sequoia Street 624/458 PRS, respectively) to
improve fire flow and enhance system reliability. The CIP R2110
improvements include retrofit of an existing PRS vault (944-1R PRS
No. 3) with a sump pump, ventilation system, and hatch drain
improvements to mitigate water intrusion. Construction of the
project facilities was substantially completed in April 2016 and
the facilities have been placed into service. Current work
5
consists of punch list items in preparation for contract
acceptance. The project is within budget and is scheduled for
contract acceptance in May 2016. (P2541, R2110)
Rosarito Desalination: Staff and representatives from NSC Agua
continue to coordinate on complying with the California Water
Resources Control Board Drinking Water Program regulatory
requirements related to source water quality testing. NSC Agua has
chosen Suez as its EPC partner and technology provider for the
proposed Rosarito Desalination project. The State of Baja
California extended the bid deadline for the production and
conveyance of desalinated water Phase I from March 23 to April 21,
2016. Three tenders were submitted. The technical aspects of the
tenders will be evaluated by the Comisión Estatal del Agua de Baja
California (CEA), an agency that is responsible for regulating the
State’s water and sewerage industry and a team appointed by the
Governor of Baja California. The financial tenders will be opened
on May 20, 2016.
The draft EIR/EIS is tentatively scheduled to be ready for its 45-
day public review period in May 2016.
An update of this project was presented to the Desalination
Committee on April 27, 2016. (P2451)
711-1 & 711-2 Reservoir Interior/Exterior Coatings & Upgrades:
This project consists of removing and replacing the interior and
exterior coatings of the 711-1 3.1 MG Reservoir and the 711-2 2.3
MG Reservoir, along with providing structural upgrades, to ensure
the tanks comply with both State and Federal OSHA standards as well
as the American Water Works Association and the County Health
Department standards. The contractor, Advanced Industrial
Services, Inc., has completed the work to coat the interior and
exterior of the 711-1 Reservoir. Current work consists of
cleaning, disinfection, and preparations to test the 711-1
Reservoir and place it into service. It is anticipated that the
711-1 Reservoir will be placed into service and work on the 711-2
Reservoir will begin in May 2016. The project is within budget and
on schedule to complete in September 2016. (P2529 & P2530)
Operations Yard Property Acquisition Improvements:
This project consists of the construction of an approximate 27,700
square-foot asphalt concrete parking lot including storm drainage
facilities, chain-link fence, and area lighting. Work to complete
subgrade and import base material was performed in April. The
project is within budget and on schedule to complete in May 2016.
(P2537)
980-1 Reservoir Interior/Exterior Coatings & Upgrades: This
project consists of removing and replacing the interior and
exterior coatings of the 980-1, 5.0 MG, Reservoir, along with
6
providing structural upgrades, to ensure the tank complies with
both State and Federal OSHA standards as well as the American Water
Works Association and the County Health Department standards.
Structural repairs and replacement of the roof rafters of the 980-1
reservoir are complete. Removal and replacement of the interior
coating began in April 2016. The project is within budget and on
schedule to complete in August 2016. (P2545)
Rancho San Diego Basin Sewer Rehabilitation – Phase 1: This project
consists of sewer system improvements at fourteen (14) locations
within the Rancho San Diego Basin. The work includes replacement of
approximately 3,250 linear feet of 8-inch gravity sewer main and the
installation of four (4) new manholes. Work to replace the sewer
located in Donahue Drive is scheduled to begin in May 2016. It is
anticipated that sewer replacement work located within the existing
sewer easements between Julianna Street and Hillsdale Road will also
begin in May 2016. The project is within budget and construction
completion is anticipated in August 2016. (S2033)
Recycled Water Fire Hydrant Installations: This project consists of
installing fire hydrants/filling stations on the recycled water
system for fire suppression. The project includes meeting Title 22
requirements, obtaining regulatory approval, establishing protocol,
and site selection. On April 13, 2016, a fill station was
constructed at the end of Hunte Parkway. The facility is a locked
enclosure within a District easement with easy access to fire
department trucks and street sweepers (see photos below). Staff
submitted the project to be enrolled in Order WQ 2014-0090-DWQ,
General Waste Discharge Requirements for Recycled Water Use (General
Order). On April 13, 2016, the District submitted an amendment to
the existing permit to update the Rules and Regulations for Recycled
Water Use and submitted a program for training for review and
approval by the Regional Board, DDW, and the County DEH. A yearly
report will also be required to document the use, training, and
inspection performed by the District. The amendment was submitted
on April 11, 2016 for the Agencies’ review. Prior to the
installation, the local HOA was notified with a letter and by phone
to explain the work and construction duration. The HOA thanked the
District for the notification and had no objection to the
installation. The final step is to receive approval for the
Amendment and training program. (R2122)
7
Water Facilities Master Plan Update: This project will update the
District’s existing Water Resources Master Plan that was previously
updated in October 2008 and revised in May 2013. Staff received
and is currently reviewing the consultant’s (Atkins) 90% draft
submittal. Work on the program environmental impact report (PEIR)
for the plan is underway and an environmental field survey of
future CIP projects was completed in late March. A first draft of
the PEIR is expected in early May and the final PEIR should be
ready for Board consideration in the fall of this year. (P1210)
Agency Utility Coordination - Partnering:
On March 30, 2016, District staff participated in an Agency Utility
Coordination and Partnering meeting held at the Caltrans District 11
Headquarters. Attendees included representatives from Caltrans, the
County of San Diego, the City of San Diego, SANDAG, SDG&E, AT&T, and
the Otay Water District. The focus of the meeting was to initiate a
utilities partnering process and begin discussions on best practices
to enhance coordination between agencies. It is anticipated that
the number of participating agencies/utility companies will grow and
that meetings will be held on a quarterly basis. Future meetings
will include improved coordination of project work.
Pure Water Cost Allocation Update: On February 10, 2016, the City
of San Diego Planning Department issued a notice of a draft Program
Environmental Impact Report (PEIR) for the Pure Water Program. The
public notice, PEIR and technical appendices can be found at the
following link: https://www.sandiego.gov/planning/programs/ceqa
On April 7, 2016, the Metro Commission and the Metro Wastewater
Joint Powers Authority (Metro JPA) held a special meeting to
consider submitting a joint response letter on the project. All
comments were due April 11, 2016. Below is a copy of the comment
letter submitted by Metro JPA.
8
9
Groundwater Basin Boundary Modification: On March 3, 2016, the
City of San Diego, Sweetwater Authority, the U.S. Navy, CalAm, and
the District met to discuss a basin boundary modification as a
preliminary step to creating one or more Groundwater Sustainability
Agencies and to develop plans for sustainable management of the San
Diego Formation Water Resource. On March 31, 2016, the City of San
Diego filed an application with the California Department of Water
Resources (DWR) for a scientific-based modification to the
boundaries of the San Diego Formation Groundwater Aquifer, and on
April 8, 2016, DWR classified the application as complete and ready
for public review.
Inspection Status Update: In FY 2016, the Inspection Division is
supporting approximately $9,869,000 of Developer projects and
$7,660,000 of CIP projects under construction, for a combined total
of $17,529,000. As of April 2016, the District’s Inspection
Division staff supported the inspection needs of approximately 55%
of all CIP and Developer work for FY 2016. The District’s As-
Needed Construction Management and Inspection contracts supported
the remaining 45% of FY 2016 inspection needs. Approximately two-
thirds of the consultant inspection in FY 2016 consists of
specialty inspection including, but not limited to, inspections by
National Association of Corrosion Engineers (NACE) certified
inspectors for the District’s reservoir coating projects.
Inspection during FY 2015 resulted in a similar trend when compared
to FY 2016. In FY 2015, the District’s Inspection Division staff
inspected approximately 60% of all inspection work with the
remaining 40% of the inspection work performed by the District’s
consultants. Projects scheduled to go to construction in the next
two years will require greater inspection resources. These CIP and
Developer projects include the following: 870-2 Pump Station
Replacement (CIP-P2083), Campo Road Sewer Main Replacement (CIP-
S2024), 850-2 Reservoir Interior/Exterior Coating (CIP-P2544), Otay
Ranch Village 2 South (Dev-D0740), Otay Ranch Village 3 (Dev-
D0954).
For the month of March 2016, the District sold 4 meters (8 EDUs)
generating $79,389 in revenue. Projection for this period was 14
meters (21 EDUs), with budgeted revenue of $190,542. Total revenue
for Fiscal Year 2016 is $2,997,344, against the annual budget of
$2,286,500.
The following table summarizes Engineering's project purchases and
Change Orders issued during the period of March 16, 2016 through
April 19, 2016 that were within staff signatory authority:
10
Date
Action
Amount
Contractor/
Consultant Project
3/28/16 P.O. $4,995.00 Aerial Mob LLC Drone Inspection
(P2545)
Water Systems Operation (Reporting the month of March):
The Annual Drinking Water Report was submitted electronically to
the State of California Water Boards. Correspondence was received
from the water boards that the report was received and was
acceptable.
On March 10, a planned shutdown on Sequoia Street in Chula Vista
was performed for the construction of a new pressure reducing
station between the 624 and 458 pressure zones. One meter was
highlined and no customers were affected.
On March 16, staff performed a planned shutdown on Blossom Lane in
Spring Valley for the construction of a new emergency interconnect
between Otay Water District and Helix Water District. Three
residential meters were affected. A water trailer was provided.
On April 6, the stand-by generator at the 1296-1 Pump Station in
Jamul ran for its normal weekly testing. During the generator run
test, the fuel solenoid valve opened to transfer fuel from the bulk
tank to the day tank, located inside the generator room. When the
generator turned off and the day tank was full, the fuel solenoid
closed but did not close completely, allowing a leak-by of
approximately 0.03 gpm. Staff arrived on site and noticed the day
tank was full and overflowing. As soon as it was determined that
the drainage went off site, the proper authorities were contacted.
Staff coordinated with regulatory agencies and an outside
contractor to ensure that a proper cleanup of the spilled fuel was
completed.
On April 20, the County performed a follow-up inspection on site at
the 1296-1 Pump Station. The inspector reviewed the District’s
account of the events that led to the spill, the clean-up actions
that were taken, and inspected the pump station site and spill
area. The inspector verbally stated that it appeared that the
District had taken the appropriate measures to report and respond
to the spill and the cleanup of the impacted areas.
On April 14, staff submitted an action plan to the State of
California Water Boards regarding special mandatory lead and copper
sampling for potable water that contains a blend of desalinated
water from the Carlsbad Desalination Plant. The first round of
sampling will be completed prior to June 1 and the second round
will be completed prior to September 30. The samples will be tested
by a state certified contracted laboratory and the results sent to
the State of California Water Boards.
11
Conservation and Water Purchases:
Conservation Target – The District conserved 16% in March over 2013
levels. The cumulative conservation savings from June 2015 through
March 2016 is 19%, surpassing the state’s mandated reduction of
12%.
The March potable water purchases were 1,880.2 acre-feet which is
11.5% above the budget of 1,685.9 acre-feet. The cumulative
purchases through March were 18,568.5 acre-feet which is 11.5% below
the cumulative budget of 20,990.0 acre-feet.
12
The March recycled water purchases and production were 251.2 acre-
feet which is 79.7% above the budget of 139.8 acre-feet. The
cumulative production and purchases through March is 2,649.4 acre-
feet which is 8.8% below the cumulative budget of 2,903.7 acre-feet.
Potable, Recycled, and Sewer (Reporting up to the month of March):
Total number of potable water meters is 49,493.
Recycled water consumption for the month of March is as follows:
o Total consumption was 220.6 acre-feet or 71,852,880 gallons and
the average daily consumption was 2,317,835 gallons per day.
o Total cumulative recycled water consumption since July 1, 2015
is 2504.8 acre-feet.
o Total number of recycled water meters is 714.
Wastewater flows for the month of March were as follows:
o Total basin flow, gallons per day: 1,647,355. This is an
increase of 1.46% from March 2015.
o Spring Valley Sanitation District Flow to Metro, gallons per
day: 544,840.
o Total Otay flow, gallons per day: 1,102,516.
o Flow Processed at the Ralph W. Chapman Water Recycling Facility,
gallons per day: 579,032.
o Flow to Metro from Otay Water District was 523,484 gallons per
day.
By the end of March there were 6,099 wastewater EDUs.
s2,ooo,ooo
s1,500,000
sl,ooo,ooo
s5oo,ooo
-s5oo,ooo
-s1,000,000
-s1,500,000
-s2,ooo,ooo
$o
COMPARATIVE BUDGET SUM MARY
NET REVENUE AND EXPENSES
FOR NINE MONTHS ENDED MARCH 31,2016
YTD Budget Net
Revenues
YTD Actual Net
Revenues
YTD Variance in
Net Revenues
JUL AUG SEP ocT NOV DEC JAN FEB MAR APR MAY JUNE
Actual Net Revenues for March were negative 5166,788, which is S521,965 better than budgeted negative net revenues of 5688,753. The year-to-date net
revenues through March were negative S1,520,681, which is 5180,746 below the year-to-date budgeted negative net revenues of 51,339,935.
OTAY WATER DISTRICT
COMPARATIVE BUDGET SUMMARY
FORNINE MONTHS ENDED MARCH 3I,2016
A.ctual Budget
YTD
Variance
Exhibit A
Yar Vo
REVENUES:
Potable Vy'ater Sales
Recycled Water Sales
Potable Energy Charges
Potable System Charges
Potable MWD & CWA Fixed Charges
Potable Penalties
Total Vy'ater Sales
Sewer Charges
Meter Fees
Capacity Fee Revenues
Non-Operating Revenues
Tax Revenues
Interest
Total Revenues
$ 26,179,865
5,907,849
1,493,495
10,081,290
8,575,544
590,991
52,829,024
$$30,548,600
6,498,500
1,624,700
10,027,200
g,6l6,3oo
657,400
(4,368,735)
(590,651)
(l3l,215)
54,090
(40,756)
rc6.409\
(14.3o/o)
(9.1o/o)
(8.1%)
0.5o/o
(0.5%)
(10.1%)
57 700
2,409,700
49,700
85 1,1 00
1,358,700
2,256,300
.100
2,762,486
(28,482)
381
(250)
174
4l
(38,292)
158,659
(1.1%)
31.4o/o
21.60/o
11.00/o
65%
ll.5o/o
(2.0o/o)
0.0o/o
(0.0%)
0.0o/o
0.0o/o
(6.3%)
rt.8%
(5,143,676)(8.9%\
2,383,771
65,295
1,034,793
1,508,435
2,4o4,ool
82,164
(25,929)
15,595
183,693
149,735
147,701
(35,936)ll8 100 (30.4%)
$ 60,307,482 $ 65,016,300 $ (4,708,818) (7.2o/o)
$$21,342,314
1,474,192
1,447,479
1,341,550
475,026
3,530,659
643,092
l,lgo,44l
24,104,800 $
1,445,700
1,447,800
1,341,300
475,200
3,530,700
604,800
31,444,683 .400 2,954,777 83%
Annual
Budget
$ 41,344,900
9,1 16,000
2,311,300
13,292,300
11,946,600
888,600
78,899,700
3,206,300
66,200
1,1 34,800
l,g73,6oo
3,997,900
157,500
$ 89,236,000
$ 32,332,100
1,705,900
1,93 I ,400
1,777,800
950,400
4,681,800
806,400
1,798,800
45,984,500
3, I 12,800
20,381,000
3,672,900
5,137,800
250,000
2,695,800
2,400,000
3,421,000
35,000
1,006,000
1,199,300
$ 89,236,000
$
EXPENSES:
Potable Vy'ater Purchases
Recycled'Water Purchases
CWA-lnfrastructure Access Charge
C'WA-Customer Servics Charge
C'WA-Reliability Charge
CWA-Emergency Storage Charge
MWD-Capacity Res Charge
MWD-Readiness to Serve Charge
Subtotal Water Purchases
Power Charges
Payroll & Related Costs
Material & Maintenance
Administrative Expenses
Legal Fees
Expansion Reserve
Betterment Reserve
Replacement Reserve
New Supply Fee
OPEB Trust
Sewer Replacement
Total Expenses
2,118,433
14,860,216
2,199,994
2,990,039
156,798
2,021,goo
l,goo,oo0
2,565,900
26,300
754,500
899,500
2,334,500
14,906,250
2,642,900
3,917,785
187,500
2,o2l,9oo
1,800,000
2,565,800
26,300
754,500
899.500
216,067
46,034
452,806
927,746
30,702
9.3%
0.3o/o
17.lo/o
23.7o/o
16.4o/o
0.0o/o
0.0%
0.0o/o
0.0%
0.0%
0.0o/o
$
$
61,828,163
(1,520,681)
66,356,235 $4,528,073
(180,746)$
$
$
6.8o/o
EXCESS REVENUES(EXPENSE)
F:/MORPT/FS2016-0316 412512016 2:23 PM
OTAY WATER DISTRICT
INVESTMENT PORTF'OLIO REVIEW
March 31,2016
INVESTMENT OVERVIE\il & MARKET STATUS:
The federal funds rate has remained constant for over 5 years. On December 16, 2015, at the Federal Reserve Board's regular scheduled
meeting, the federal funds rate was increased ftom0.25o/oto 0.500Á" in response to the nation's gradual economic improvement. The
Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that
inflation will rise, over the medium term, to its 2 percent objective. The stance of monetary policy remains accommodative after this
increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation. There have been no futher
changes made to the federal funds rate atthe Federal Reserve Board's subsequent regular meetings, the most recent of which was held on
March 16,2016. In determining the timing and size of future adjustments to the target range for the federal funds rate, they went on to
say: oothe Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent
inflation. This ossessment will take into account a wide range of information, including measures of labor market conditions, indicators of
inflatíon pressures and inflation expectøtions, and readings onfinancial and international developments. In light of the curcent shortfoll of
inflationfrom 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal. The Committee
expects that economic conditions will evolve in q manner that will warrant only gradual increases in the federal funds rate; the federql
funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the
federalfunds rate will depend on the economic outlook as informed by incoming date."
The District's overall effective rate of return at March 31,2016 was 0.79%o, which was one basis point above the previous month. At the
same time the LAIF return on deposits has improved over the previous month, reaching an average effective yield of 0.506%o for the month
of March 2016. Based on our success at maintaining a competitive rate of return on our portfolio during this extended period of low
interest rates, no changes in investment strategy regarding returns on investment are being considered at this time. The desired portfolio
mix is important in mitigating any liquidity risk from unforeseen changes in LAIF or County Pool policy.
In accordance with the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of
safety, liquidity, and return on investment.
PORTFOLIO COMPLIANCE: March 31,2016
Investment
8.01: Treasury Securities
8.02: Local Agency Investment Fund (Operations)
8.02: Local Agency Investment Fund (Bonds)
8.03: Federal Agency Issues
8.04: Certificates of Deposit
8.05: Short-Term Commercial Notes
8.06: Medium-Term Commercial Debt
8.07: Money Market Mutual Funds
8.08: San Diego County Pool
12.0: Maximum Single Financial Institution
State Limit
100%
$50 Million
t00%
t00%
30%
2s%
30%
20%
t00%
t00%
Otay Limit
100%
$50 Million
t00%
100%
ts%
t0%
t0%
r0%
t00%
50%
Otav Actual
0
$8.71 Million
0
67.87%
.10%
0
0
0
2034%
.92%
Otay Water District
Investment Portfolio: og / gr / zot6
825,169
1.02"/"
s54,932,702
67.87V"
25,179,195
3l.llo/o
Total Cash and lnvestments: 580,937,066
tr Banks (Passbook/Checking/CD)lPools (LAIF & County)trAgencies & Corporate Notes
Target: Meet or Exceed 100% of LAIF
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
o
tro
Eoo
Ecoc
J
oÉ.
Performance Measure FY-1 6
Return on lnvestment
Month
¡LAIF lotay E¡Difference
sep
FYI6
lst Qtr
FYI6
Oct
FYI6
Nov
FYI6
Dec
FYI6
2nd
Qtr
FYI6
Jan
FYI6
Feb
FYI6
Mar
FYI6
3rd Qtr
FYI6
Jan
FY15
Feb
FYI5
Mar
FYI5 FYI5
3rd Apr
FYI5
May
FYI5
June
FYI5
4th Qtr
FYI5
July
FYI6
Aug
FY16
0.47 0.51 0.470.29 0.32 0.33 0.34 0.33 0.36 0.37 0.40 0.38 0.45ILAIF0.26 0.27 0.28 0.27 0.28 0.29 0.30
0.79 0.78 0.80 0.85 0.87 0.840.7 |0.73 0.76 0.73 0.75 0.78 0.78 0.77 0.76 0.79lOtay0.69 0.78 0.70 0.72
0.370.44 0.44 0.40 0.42 0.39 0.40 0.35 0.38 0.36tr Difference 0.43 0.51 0.42 0.45 0.43 0.44 0.46 0.44 0.43 0.45
&
r'
l
t
Pa¡
Month End
Portfolio Management
Portfolio Summary
March 31,2016
Market
Value
Book
Value
%of
Portfol¡o
Days to
Matur¡ty
YTM
360 Equiv.
YTM
365 Equ¡v.lnvestments Value Term
Federal Agency lssues- Callablê
Federal Agency lssues - Coupon
Certificates of Depos¡t - Bank
Locâl Agency lnvestment Fund (LAIF)
San D¡ego County Pool
Investments
50,935,000.00
4,000,000.00
81,833.21
8,714,388.85
16,464,806.1 0
50,959,632.95
4,001,560.00
81,833.21
8,716,315.25
1 6,763,000.00
50,934,588.89
3,998,1 13.33
81,833.21
8,714,388.85
16,464,806.10
1.045
0.610
0.030
0.499
0.650
1.060
0.618
0.030
0.506
0.659
63.51
4.99
0.10
'10.87
20.53
752
253
661
1
1
0.882491
977
7Ãô
731
1
1
66080,196,028.16 80,522,341.41 80,193,730.38 100.00%0.894
Cash
PassbooUCheck¡no
(not included in yiefd calculations)
Total Cash and lnvestments
743,335.46 743,335.46 743,335.46 0.354
0.882
0.359
80,939,363.62 81,265,676.87 80,937,065.84 491660 0.894
Total Earn¡ngs March 3l Month Ending Fiscal Year To Date
Current Year 60,961.71 490,984.52
Average Daily Balance 82,899,450.68 82,178,728.12
Effective Rate of Return 0.87o/o 0,79%
information provided by The investments provide suffìcient liquidity to meet the cash flow requ¡rements of the District for the next six months of expenditures.tt-7r- /ê
Reporting period 03/01/2016-03131 12016
Data Updated: SET_ME8: 0411812016 17:54
Run Date: 04/1812016 - 17:54
Portfolio OTAY
NL! AP
PM (PRF_PM1) 7.3.0
Report Ver. 7.3.5
CUSIP lnvestment #lssuer
Average
Balance s&P
YTM
360
Days to
Maturity
Page 1
Maturity
Date
Month End
Portfolio Management
Portfolio Details - lnvestments
March 31,2016
Purchase
Date Par Value Market Value
StatedBookValue Rate
Federal Agency lssues- Callable
3133EECX6 2313
3134G5A47 2301
3133EELR9 2317
3133EEXC9 2323
3136G23G0 2304
3134G8NM7 2345
3134G6TJ2 2319
3134G7XJ5 2331
3134G7875 2332
3133EEYE4 2320
3130A7H73 2346
3I30A4WT5 2322
313045680 2325
3130A52G3 2324
3134G6V264 2326
3136G2L28 2330
3135G0G64 2336
3134G7D81 2333
3136G2R665 2334
3134G76C0 2335
313046U28 2338
3130472G9 2339
3134G8KL2 2340
3136G22W0 2342
3136G22W0 2343
3134G8Q44 2344
Federal Farm Credit Bank
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Nat¡onal Mortage Assoc
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Mortgage
Fannie Mae
Fânnie Mae
Federal Home Loan Mortgage
Fannie Mae
Federal Home Loan Mortgage
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal National Mortage Assoc
Federal National Mortage Assoc
Federal Home Loan Mortgage
Subtotal and Average
1112512014
0613012014
01t27t2015
04t20t20'15
0811512014
0312912016
04t27t2015
09t18t2015
0912912015
04t16t2015
03t29t2016
0412712015
0510412015
o5t11t2015
06t29t2015
0912812015
10t3012015
10t29t2015
1111912015
1112312015
1212812015
0112912016
0212612016
0212612016
0212612016
03t2et2016
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,200,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,030,000.00
2,705,000.00
2,000,000.00
1,999,660.00
2,003,780.00
1,996,800.00
1,996,740.00
2,001,800.00
2,000,360.00
2,000,740.00
2,000,740.00
2,002,900.00
1,997,640.00
2,001,480.00
2,000,1 00.00
1,200,024.00
2,000,300.00
2,003,060.00
2,003,060.00
2,000,040.00
2,001,140.00
2,000,820.00
2,000,320.00
2,006,320.00
2,003,680.00
2,000,880.00
1 ,030,587.1 0
2,706,541.85
2,000,120.00
2,000,000.00
2,000,000.00
1,999,588.89
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,200,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,030,000.00
2,705,000.00
2,000,000.00
0.602
0.641
0.616
0.681
1.036
AA 0.838
0.863
AA 0.986
1.002
0.986
AA 0.986
1.006
AA 1.105
AA 1.036
AA 1.233
1.233
1.085
1.282
1.134
1.184
1.356
1.479
1.282
1.110
1.110
1.332
11t2st2016
12t30t2016
0112712017
0410612017
08t15t2017
09t29t2017
1012712017
1211812017
1212912017
0111612018
03t2912018
0412712018
0510412018
05t11t2018
o6t29t2018
09t28t2018
1012912018
10t2912018
11t19t2018
1112312018
12t28t2018
0112912019
02t26t2019
0212612019
0212612019
03129t2019
0.610
0.650
0.625
0.690
1.050
0.850
0.875
1.000
I .016
1.000
1.000
1.020
1.120
'1.050
1.250
1.250
1 .100
1.300
1.150
1.200
1.375
1.500
'1.300
1.125
1.125
1.350
238
273
301
370
501
546
574
626
637
655
727
756
763
770
819
910
941
941
962
966
1,001
1,033
1,061
1,061
1,061
1,092
49,063,601.66 50,935,000.00 50,959,632.95 50,934,588.89 1.045 752
Federal Agency lssues - Goupon
3135G0YE7 2286
3133EEC73 2329
Federal National Mortage Assoc
Federal Farm Credit Bank
Subtotal and Average
04t01t2014
0612612015
2,000,000.00
2,000,000.00
2,001,300.00
2,000,260.00
2,000,469.36
I,997,643.97
0.558
AA 0.661
147 0812612016
360 03t27t2017
0.625
0.550
3,998,065.89 4,000,000.00 4,001,560.00 3,998,1 13.33 0.610 253
Portfolio OTAY
AP
PM (PRF_PM2) 7.3.0Run Date: O4nAl2O'16 - 17:58
Report Ver. 7.3.5
Month End
Portfolio Management
Portfolio Details - lnvestments
March 31,2016
Purchase
Date
Page 2
CUSIP lnvestment #lssuer
Average
Balance S&P
YTM
360
Days to
Maturity
Maturity
DatePar Value Market Value
StatedBookValue Rate
Gertificates of Deposit - Bank
2050003183-7 2s41 0112212016 81,833.21 81,833.21California Bank & Trust
Subtotal and Average 81,833.21 81,833.21 81,833.21 81,833.21
81,833.21 0.030 0.030 661 011221201a
0.030 661
Local Agency lnvestment Fund (LAIF)
LAIF 9OO1 STATE OF CALIFORNIA
LAIF BABS 2O1O 9012 STATE OF CALIFORNIA
Subtotâl and Average
07101t2015
8,714,388.85
0.00
8,716,315.25
0.00
8,714,388.85
0.00
0.506
0.267
0.499
0.263
1't,124,066.27 8,714,388.85 8,7't6,3,t5.25 8,714,388.85 0.499 1
San Diego County Pool
SDCOUNTYPOOL 9OO7 I 6,464,806.1 0 16,763,000.00 16,464,806.10 0.659 0.650San Diego County
Subtotal and Average 16,464,806.r0 16,464,806.10 16,763,000.00 16,464,806.10 0.650 1
Total and Average 82,899,450.68 80,196,028.r6 80,522,341.41 80,193,730.38 0.882 491
Portfolio OTAY
AP
PM (PRF_PM2) 7.3.0Run Date: O4nAl2O'16 - 17:58
Month End
Portfolio Management
Portfolio Details - Cash
March 31,2016
Page 3
CUSIP lnvestment #lssuer
Average
Belâncê
Purchase
Date Par Value Market Value
StatedBookValue Rate
YTM Daysto
360 MaturityS&P
Union Bank
UNION MONEY
PETTY CASH
UNION OPERATING
PAYROLL
RESERVE-10 COPS
RESERVE.IO BABS
UBNA-2010 BOND
UBNA-FLEXACCT
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
Average Balance
0.010
0.400
0.010
0.010
0.010
0.000
0.395
0.000
0.010
0.010
0.000
0.000
9002
9003
9004
9005
901 0
901 1
901 3
90't4
071o112015
0710112015
0710112015
10,002.19
2,950.00
666,420.21
27,891.35
2,262.50
5,941.63
0.00
27,867.58
1 0,002.1 I
2,950.00
666,420.21
27,891.35
2,262.50
5,941.63
0.00
27 ,867.58
10,002.'19
2,950.00
666,420.21
27,891.35
2,262.50
5,941.63
0.00
27.467.58
0.00
Total Cash and lnvestments 82,899,450.68 80,939,363.62 81,265,676.87 80,937,065.84 0.882 491
Portfolio OTAY
AP
PM (PRF_PM2) 7.3.0Run Date: 04l'1812016 - 17:58
Month End
GASB 31 Compliance Detail
Sorted by Fund - Fund
March 1,2016 - March 31,2016
Adjustment in Value
CUSIP lnvestment# Fund
lnvestment
Class Matur¡ty
Dâte
Beginning
lnvested Value
Pu¡chase
of Principal
Addit¡on Redempt¡on
of Pr¡nc¡pal
Amortization
Adjustment
Change ¡n
Market Value
Endingto P¡inc¡pal lnvested Value
Fund: Treasury Fund
LAIF 9001
UNION MONEY 9OO2
PETTY CASH 9OO3
UNION OPERATING 9OO4
PAYROLL 9OO5
SD COUNTY POOL 9OO7
RESERVE-IOCOPS 9O1O
RESERVE-10 BABS 9011
LAIF BABS 2O1O 9012
UBNA-2O1O BOND 9013
UBNA-FLEXACCT 9014
3135G0YE7 22A6
3134G5A47 230.1
3136G23G0 23043133EECX6 2313
3133EELR9 2317
313044MF6 2318
3í34G6TJ2 2319
3133EEYE4 2320
3130A4WT5 2322
3133EEXC9 2323
3130452G3 2324
313045680 2325
3134G6V264 2326
3I33EEC73 2329
3136G2L28 2330
3134G7XJ5 2331
3134G7875 2332
3't34G7D81 2333
3136G2R665 2334
Data Updated: SET_ME8: 0411812016 17:54
99
oô
oo
99
ôô
99
ôo
oo
99
99
ôô
99
99
ôô
99
oo
99
99
oÔ
99
99
99
oô
ôo
oo
99
99
99
Fair Vâlue
Amortized
Amortized
Amortized
Amortized
Fair Value
Amortized
Amortized
Fair Value
Amorlized
Amortized
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Amortized
Amortized
Amortized
Fair Vâlue
Amort¡zed
Fair Value
Amortized
0812612016
12t30t2016
0811512017
1112512016
0112712017
0312912018
10t27t2017
o111612018
04t27t20'18
04106t2017
o511112018
05t04t2018
06129t2018
0312712017
091281201A
'1211812017
1212912017
1012912018
1111912018
11,804,783.31
10,002.29
2,950.00
1,443,123.39
27,891.35
16,435,000.00
8,017.53
21,055.87
0.00
0.00
35,981.46
1,999,900.00
2,002,920.O0
2,001,660.00
1,998,480.00
1,995,040.00
2,001,260.00
2,001,360.00
1,995,320.00
2,000,020.00
1,997,1 60.00
2,000,300.00
1,200,012.00
2,000,000.00
1,997 ,445.43
2,000,000.00
2,000,1 00.00
2,000,000.00
2,002,1 00.00
2,000,000.00
1,800,000.00
4,025,252.19
0.00
436,109.72
0.00
0.00
116.28
305.38
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,900,000.00
4,025,252.29
0.00
1,2'12,812.50
0.00
0.00
5,871.31
15,419.62
0.00
0.00
8,1 13.88
0.00
0.00
0.00
0.00
0.00
2,000,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0_00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1 98.54
0.00
0.00
0.00
0.00
0.00
I 1,531.94
0.00
0.00
0.00
0.00
328,000.00
0.00
0.00
0.00
0.00
0.00
1,400.00
860.00
140.00
1,180.00
1,760.00
-1,260.00
-620.00
2,320.00
80.00
-420.00
0.00
12.00
0.00
0.00
0.00
640.00
0.00
-960.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
8,716,315.25
1 0,002.1 9
2,950.00
666,420.21
27,891.35
16,763,000.00
2,262.50
5,941.63
0.00
0-00
27,867.58
2,001,300.00
2,003,780.00
2,001,800.00
1,999,660.00
1,996,800.00
0.00
2,000,740.00
'1,997,640.00
2,000,100.00
1,996,740.00
2,000,300.00
1,200,024.0O
2,000,000.00
1,997.643.97
2,000,000.00
2,000,740.00
2,000,000.00
2,001,140.00
2,000,000.00
Portfolio OTAY
NL! AP
GD (PRF_GD) 7.1.1
Report VeL 7.3.5
Run Date: 04/18/2016 - 17:54
CUSIP lnvestment# Fund
lnvestment
Class Matur¡ty Beg¡nning
lnvested ValueDato
Month End
GASB 31 Gompliance Detail
Sorted by Fund - Fund
Purchase
of Pr¡ncipal
Addit¡on
to Principal
Redemptíon
of Principal
Amortization
Adjustment
Page 2
Adjustment ¡n value
Change ¡n End¡ng
Merket Value lnvested Value
Fund: Treasury Fund
3134G76C0
3135G0G64
3134G87F0
31 30A6UZ8
3130A72G9
3't34G8KL2
2050003183-7
3136G22W0
3136G22W0
3134G8Q44
3134G8NM7
3130A7H73
2335
2336
2337
2338
2339
2340
2341
2342
2343
2344
2345
2346
99
ôo
99
99
oo
oo
oo
99
ôo
99
99
Amortized
Amortized
Fair Value
Amortized
Amorlized
Amortized
Amortized
Amorlized
Fair Value
Fair Value
Amorlized
Fa¡r Value
1112312018
10129120'18
1212812018
1212812018
0112912019
o2t26t2019
01122t2018
02126t2019
0212612019
0312912019
0912912017
o312912018
2,000,000.00
2,000,000.00
2,000,160.00
2,000,000.00
2,000,000.00
2,000,000.00
81,833.21
1,030,000.00
2,698,589.1 5
0.00
0.00
0.00
0.00
0.00
-160.00
0.00
0.00
0.00
0.00
0.00
7,952.70
120.00
0.00
I,480.00
2,000,000.00
2,000,000.00
0.00
2,000,000.00
2,000,000.00
2,000,000.00
81,833.21
1,030,000.00
2,706,541.85
2,000,120.00
2,000,000.00
2,001,480.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,000,000.00
2,000,000.00
2,000,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,000,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Subtotaf 82,792,464.99 6,000,000.00 6,261,783.57 14,167,470.00 198.54 354,056.64 81,241,033.74
Data Updated: SET_ME8: 0411812O16 17:54
Total 82,792,464.99 6,000,000.00 6,261,783.57 14,167,470.00 198.54 354,056.64 81,241,033.74
Portfolio OTAY
NL! AP
GD (PRF_GD) 7.1.1
Report V€r. 7.3.5
Run Dale: O4hBl2O16 - '17:54
Month End
Activity Report
Sorted By lssuer
March 1,2016 - March 31,2016
Par Value Par Value
CUSIP lnvêstment #
Percent
lssuer of Portfolio
Beginning
Balance
Curent
Rate
Transaction
Date
Purchases or
Deposits
Redemptions or
Wthdrawals
End¡ng
Balance
lssuer: STATE OF CALIFORNIA
Union Bank
UNION MONEY
UNION OPERATING
RESERVE.IO COPS
RESERVE-10 BABS
UBNA-FLEX ACCT
9002
9004
9010
901 1
9014
0.010
0.400
0.010
0.01 0
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATË OF CALIFORNIA
STATE OF CALIFORNIA
4,025,252.19
436,109.72
116.28
305_38
0.00
4,025,252.29
1,212,812.90
5,871.31
15,419.62
8,1 13.88
Subtotal and Balance 1,549,02r.89 4,461,783.57 5,267,470.00 743,335.46
Local Agency lnvestment Fund (LAIF)
LAIF 0.506 1,800,000.00 4,900,000.009OOI STATE OF CALIFORNIA
Subtotal and Balance
lssuerSubtotal 11.685%
I r,814,388.85
13,363,410.74
1,800,000.00 4,900,000.00 8,714,388.85
6,261,783.57 10,167,470.00 9,457,724.31
lssuer: Galifornia Bank & Trust
Certif¡cates of Depos¡t - Bank
Subtotal and Balance
lssuer Subtotal
81,833.21
o,101%81,833.21
81,833,21
0.00 0.00 81,833.21
lssuer: Fannie Mae
Federal Agency lssues- Callable
Subtotaf and Balance
Issuer Subtotal
6,000,000.00
7.413%6,000,000.00
6,000,000.00
0.00 0.00 6,000,000.00
lssuer: Federal Farm Credit Bank
Federal Agency lssues- Callable
Subtotal and Balance
Data Updated: SET_ME8: 041'1812016 17:54
8,000,000.00 8,000,000.00
Portfol¡o OTAY
NL! AP
DA (PRF_DA) 7.2.0
Report Ver. 7.3.5
Run Date: 04/18/2016 - 17:54
Month End
Activity Report
March 1, 2016 - March 31,2016
Par Value
Page 2
Par Vâlue
CUSIP lnvestment #
Percent
lssuer of Portfolio
Beginning
Balance
Transact¡on
Date
Purchases or
Depos¡ts
Redemplions or
\^/ithdrawals
Current
Rate
Ending
Balance
lssuer: Federal Farm Credit Bank
Federa! Agency lssues - Coupon
Subtotal and Balance
lssuerSubtotal 12355%
2,000,000.00 2,000,000.00
10,000,000.00 0.00 0.00 10,000,000.00
lssuer: Federal Home Loan Bank
Federal Agency lssues- Callable
31 30A4MF6
31 3047H73
2318 Federal Home Loan Bank
2346 Federal Home Loan Bank
Subtotal and Balance
lssuerSubtotal 13.838%
1.300
1.000
0312912016
03t29t2016
0_00
2,000,000.00
2,000,000.00
0.00
11,200,000.00
I I,200,000.00
2,000,000.00 2,000,000.00 1 I,200,000.00
2,000,000.00 2,000,000.00 I 1,200,000.00
lssuer: Federal Home Loan Mortgage
Federal Agency lssues- Callable
31 34G87F0
31 34G8Q44
3134G8NM7
2337
2344
2345
1.450
1.350
0.850
Federal Home Loan Mortgage
Federal Home Loan Morlgage
Federal Home Loan Mortgage
03t28t2016
0312912016
0312912016
0.00
2,000,000.00
2,000,000.00
2,000,000.00
0.00
0.00
Subtotal and Balance
lssuerSubtotal 24.710%
r8,000,000.00 4,000,000.00 2,000,000.00 20,000,000.00
18,000,000.00 4,000,000.00 2,000,000.00 20,000,000.00
lssuer: Federal National Mortage Assoc
Federal Agency lssues- Callable
Subtotal and Balance 5,735,000.00 5,735,000.00
Federal Agency lssues - Coupon
Subtotal and Balance
lssuer Subtotal
2,000,000.00
9.557%7,735,000.00
2,000,000.00
0.00 0.00 7,735,000.00
lssuer: San Diego Gounty
Data Updated: SET_ME8: 0411812016 17:54
Portfolio OTAY
NL! AP
DA (PRF_DA) 7.2.0
Report Ver. 7.3.5
Run Date: 04/'18/2016 - l7:54
Month End
Act¡vity Report
March l, 2016 - March 31, 2016
Par Value
Page 3
Pâr Value
CUSIP lnvesbnent #
Percent
lssuer of Portfol¡o
Beginning
Ba¡ance
Current
Rate
Transact¡on
Date
Purchâses or
Deposits
Redemplions or\ fthdrâwals
Ending
Balance
lssuer: San Diego County
San Diego County Pool
Subtotal and Balance
lssuerSubtotal 20.342%
16,464,806.10 16,464,806.10
16,464,806.10 0.00 0.00 16,¡164,806.10
Total 100.000%82,845,050.05 12,261,783.57 14,167,470,00 80,939,363,62
Data Updated: SET_ME8: 0411812016 17:54
Portfolio OTAY
NL! AP
DA (PRF_DA) 7.2.0
Report Ver. 7.3.5
Run Dal€: 04/18/2016 - 17:54
Month End
Duration Report
Sorted by lnvestment Type - lnvestment Type
Through 0313112016
lnvestment
Class
Book
Value Value
Market
Value
Cufrent
Rate
Par YTM Current360 Yield
Maturity/ Mod¡f¡ed
Call Date DurationSecur¡tv lD lnvesûnent# Fund lssuer
3134G5A47
31 36G23G0
3133EECX6
31 33EELRg
3't34G6TJ2
3133EEYE4
3l30A4WT5
31 33EEXC9
31 30452G3
31 3045680
3 1 34G6V264
3136G2Lz8
3 1 34G7XJ5
3134G7875
31 34G7D81
3 1 36G2R665
3 1 34G76C0
3 1 35G0G64
3 1 30A6UZ8
31 30A72G9
31 34G8KLz
3't36G2ZW0
3136G22W0
3134G8Q44
3134G8NM7
3130A7H73
230'l
2304
2313
2317
2319
2320
2322
zó¿ó
2324
2325
2326
2330
2331
zJ5¿
2333
2334
2335
2336
2338
2339
2340
2342
2343
2344
2345
2346
99
oo
99
ôô
99
99
oô
99
oo
oô
99
99
oô
99
99
99
99
99
99
oo
ôo
99
oo
99
oo
oo
Fedêral Home Loan Morlgage
Federal National Mortage Assoc
Federal Farm Cred¡t Bank
Federal Farm Cred¡t Bank
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Farm Cred¡t Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Mortgage
Fannie Mae
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Fannie Mae
Federal Home Loan Mortgage
Fann¡e Mae
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal National Mortage Assoc
Federal National Mortage Assoc
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Bank
Fair
Fa¡r
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Amort
Amort
Fa¡r
Amort
Fair
Amort
Amort
Amorl
Amort
Amort
Amort
Amort
Fa¡r
Fair
Amort
Fair
2,000,000.00
2,000,000.00
2,000,000.00
I,999,588.89
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,200,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,030,000.00
2,705,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
I,200,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,030,000.00
2,70s,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,003,780.00
2,001,800.00
1,999,660.00
I,996,800.00
2,000,740.00
1,997,640.00
2,000,100.00
1,996,740.00
2,000,300.00
1,200,024.00
2,003,060.00
2,003,060.00
2,000,740.00
2,002,900.00
2,001,140.00
2,000,820.00
2,000,320.00
2,000,040.00
2,006,320.00
2,003,680.00
2,000,880.00
I,030,587.10
2,706,54't.85
2,000,1 20.00
2,000,360.00
2,001,480.00
.6500000
1.050000
.6100000
.6250000
.8750000
1.000000
1.020000
.6900000
1.050000
1.120000
1.250000
r.250000
1.000000
1.01 6125
'1.300000
I .1 50000
1.200000
1.1 00000
1.375000
1.500000
1.300000
1.125000
1.1 25000
L350000
.8500000
1.000000
1213012016
0811512017
11t25t2016
0112712017
1012712017
01t16t2018
0412712018
0410612017
0511112018
0510412018
0612912018
0912812018
1211812017
12t29t2017
10129t201A
11t19t2018
11t2312018
10129t2018
1212812018
0112912019
0212612019
0212612019
0212612019
0312912019
0912912017
0312912018
0.641
1.036
0.602
0.616
0.863
0.986
1.006
0.681
1.036
1.105
1.233
1.233
0.986
1.OO2
1.282
1.134
1.184
1.085
1.356
1.479
1.282
1.110
1.1 10
1.332
0.838
0.986
0.397
0.984
0.636
0.821
0.851
1.067
1.018
0.852
1.043
1.1'19
1.181
1 .188
0.978
0.932
1.278
't.134
1.194
1.099
1.258
1.434
1.285
1.105
1.'105
1.348
0.838
0.962
o.744
1.357
0.646
0.817
1.552
1.767
2.036
1.004
2.074
2.O52
2.200
2.445
1.691
1.721
2.513
2.574
2.585
2.523
2.674
2.752
2.836
2.845
2.845
2.924
1.482
't.970
Data Updated: SET_ME8: 0411812016 17:54
Portfolio OTAY
NL! AP
DU (PRF_DU) 7.1.1
Report Ver. 7.3.5
Run Date: 04/18/2016 - 17:54 Page I
Month End
Duration Report
Sorted by lnvestment Type - Investment Type
Through 0313112016
lnvestment
Class
Book
Value
Par Market
Value
Current
Rate
YTM Current360 Yield
Matur¡ty/ Modified
Call Date Durat¡onSecuríty lD lnvestment# Fund lssuer Value
3135G0YE7 2286
3133EEC73 2329
2050003183-7 2341
LA|F 9001
LAIF BABS 2010 90'12
SD COUNTY 9OO7
oo
99
99
99
99
oo
Federal National Mortage Assoc
Federal Farm Cred¡t Bank
California Bank & Trust
STATE OF CALIFORNIA
STATE OF CALIFORNIA
San Diego County
Fair
Amort
Amort
Fair
Fair
Fair
0.495
0.537
0.030
0.506
0.267
0.659
2,000,469.36
1,997,643.97
81,833.21
8,714,388.85
0.00
16,464,806.10
2,000,000.00
2,000,000.00
81,833.21
8,714,388.85
0.00
1 6.464.806.1 0
2,001,300.00
2,000,260.00
81,833.21
e,716,3't5.2s
0.00
16,763,000.00
.6250000
.5500000
.0300000
.5060000
.2670000
.6590000
0812612016
0312712017
01t22t2018
0.402
0.984
1.806 t
0.000
0.000
0.000
0.558
0.661
0.030
0.499
0.263
0.650
Report Tota¡
Ì = Duration can not be calculated on lhese ¡nvestments due to incomplete Market pr¡ce data.
Data Updated: SET_ME8: 0411812016 17i54
80,193,730.38 80,196,028.16 80,522,341.41 0.876 1.314 t
Portfolio OTAY
NL! AP
DU (PRF_DU) 7.1.r
Report Ver. 7.3.5
Run Date: 04/18/2016 - 17:54 Page 2
Month End
lnterest Earnings
Sorted by Fund - Fund
March 1,2016 - March 31,2016
Yield on Beginning Book Value
Adjusted lnterest Earn¡ngs
custP lnvesüñent# Fund
Security
Type
End¡ng
Par Value
Beginning
Book Value
Ending Maturity CurrentAnnualized
Book Value Dete Rate Y¡eld
lnterest
Earned
Amort¡zation/ Adjusted lnterestAccretion Earn¡ngs
Fund: Treasury Fund
LAIF 9001
UNION MONEY 9OO2
UNION OPERATING 9OO4
SD COUNTY POOL 9OO7
RESERVE.IOCOPS 9O1O
RESERVE-IOBABS 9011
3'|35G0YE7 2286
3134G5447 2301
3136G23G0 2304
3133EECX6 2313
3I33EELR9 2317
3I30A4MF6 2318
3134G6TJ2 2319
3133ÊEYE4 2320
3130A4WT5 2322
3133EEXC9 2323
3130452G3 2324
313045680 2325
3134G6V264 2326
3133EEC73 2329
3136G2LZ.8 2330
3134G7XJ5 2331
3134G7875 2332
3't34G7D81 2333
3136G2R665 2334
3134G76C0 2335
3135G0G64 2336
3134G87F0 2337
3130A6U28 2338
8,714,388.85
1 0,002.1 9
666,420.21
16,464,806.1 0
2,262.50
5,941.63
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
0.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,200,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
0.00
2,000,000.00
1 t ,814,388.85
10,002.29
1,443,123.39
16,464,806.10
8,017.53
21,055.87
2,000,566.47
2,000,000.00
2,000,000.00
2,000,000.00
1,999,547.22
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,200,000.00
2,000,000.00
1,997,445.43
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
8,714,388.85
10,002.19
666,420.21
16,464,806.10
2,262.50
5,941.63
2,000,469.36 0812612016
2,000,000.00 12t30t2016
2,000,000.00 081 1512017
2,000,000.00 1112512016
1,999,588.89 01t27 t2017
o.00 0312912018
2,000,000.00 10127 12017
2,000,000.00 01 11612018
2,000,000.00 04127 12018
2,000,000.00 0410612017
2,000,000.00 0511 1 12018
1,200,000.00 0510412018
2,000,000.00 06129t2018
1,997,643.97 03127 12017
2,000,000.00 0912812018
2,000,000.00 1211812017
2,000,000.00 1212912017
2,000,000.00 1012912018
2,000,000.00 1 111912018
2,000,000.00 1 1 12312018
2,000,000.00 1012912018
0.00 '1212812018
2,000,000.00 1212812018
qq
99
oo
oo
99
99
99
99
99
99
99
99
99
99
oo
oo
99
99
oo
99
99
99
99
99
99
LA1
PAl
PA1
LA3
PAl
PA1
FAC
MCl
MC1
MC1
MC1
MCt
MCl
MC1
MCl
MC1
MC1
MC1
MC1
FAC
MC1
MC1
MCl
MCl
MC1
MCl
MC1
MCl
MC1
0.506
0.01 0
0.400
0.659
0.010
0.010
0.625
0.650
1.050
0.610
0.625
1.300
0.875
1.000
1.0?0
0.690
1.050
1.120
'1.250
0.550
1.250
1.000
'1.016
1.300
1.150
1.200
1.'100
1.450
1.375
o.476
0.257
0.510
0.659
0.003
0.003
0.556
0.638
1.030
0.599
0.638
1.318
0.859
0.981
1.001
0.677
1.030
1.099
1.226
0.657
1.226
0.981
0.997
1.276
1.153
1.177
1.079
1.470
1.349
4,780.61
2.18
624.99
9,215.33
o.02
0.05
1 ,041.67
1,083.33
1,750.00
'1,016.67
1,041.66
2,02?.22
1,458.33
1,666.67
1,700.00
1,150.00
1,750.00
1,120.00
2,083.33
916.67
2,083.33
1,666.66
1,693.54
2,166.67
1,958.79
2,000.00
1,833.34
2,175.00
2,291.67
0.00
0.00
0.00
0.00
0.00
0.00
-97.11
0.00
0.00
0.00
41.67
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1 98.54
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4.780.61
2.18
624.99
9,215.33
0.02
0.05
944.56
1,083.33
1,750.00
1,016.67
1,083.33
2,022.22
1,458.33
1,666.67
1,700.00
I, I 50.00
1,750.00
1,120.00
2,083.33
1,115.21
2,083.33
1,666.66
1,693.54
2,166.67
1,958.79
2,000.00
1,833.34
2,175.00
2,291.67
Data Updated: SET_ME8: 0411812016 17:54
Portfolio OTAY
NL! AP
rE (PRF_rE) 7.2.0
Report Ver. 7.3.5
Run Date: 04/18/2016 - 17:54
Month End
¡nterest Earnings
March 1,2016 - March 31,20'16
Beginn¡ng
Book Value
Page 2
Adjusted lnterest Earnings
CUSIP lnvestmênt# Fund
Secur¡ty
Type
Ending
Par Valuo
End¡ng MaturityBookValue Date
CurrentAnnualizedRate Yield
lnterest
Êarned
Amort¡zation/ Adjusted lnterestAccretion Earnings
Fund: Treasury Fund
31 30472G9
31 34G8KL2
2050003183-7
3 t36G2ZW0
3136G22W0
3't34G8Q44
3134G8NM7
31 30A7H73
2339
2340
2341
2342
2343
2344
2345
2346
1.500
1.300
0.030
1.125
1.',125
1.350
0.850
1.000
1.472
1.276
0.030
1.'lo4
1.104
0.9't3
0.575
0.676
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
99
99
99
oô
oo
99
oo
99
MCl
MC1
BCD
MC1
MC1
MC't
MC1
MC1
Subtotal
2,000,000.00
2,000,000.00
8l,833.21
1,030,000.00
2,705,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
8l,833.21
I,030,000.00
2,705,000.00
0.00
0.00
0.00
2,000,000.00 01 129t2019
2,000,000.00 0212612019
81,833.21 0'1t22t2018
1,030,000.00 02126t2019
2,705,000.00 0212612019
2,000,000.00 0312912019
2,000,000.00 09 129120'17
2,000,000.00 0312912018
2,500.00
2,166.67
2.'t1
965.62
2,535.93
1 50.00
94.44
111.11
2,500.00
2,166.67
2.11
965.62
2,535.93
150.00
94.44
111.11
80,880,654.69 82,775,786.36 80,878,356.9r 0.866 60,818.6r 143.10 60,961.71
Data Updated: SET_ME8: 0411812016 17154
Total 80,880,654.69 82,775,786.36 80,878,356.91 0.866 60,818.61 143.'10 60,961.71
Portfolio OTAY
NL! AP
rE (PRF_rE) 7.2.0
Report Ver. 7.3.5
Run Dâte: 04/18/20'16 - 17:54
Check Total
217,098.75
6,792.00
25,520.00
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
2045525 03/30/16 11466 A&G INSTRUMENT SERVICE AND 35872 03/08/16 CALIBRATION SERVICES (3/8/16)1,337.60 1,337.60
2045526 03/30/16 08488 ABLEFORCE INC 6341 03/04/16 SHAREPOINT SERVICES (2/4/16)437.50 437.50
2045621 04/13/16 17165 ADRIANA MORALES 1872040816 04/08/16 CUSTOMER REFUND 158.90 158.90
2045622 04/13/16 13901 ADVANCED INDUSTRIAL SVCS INC 403312016 03/22/16 711-1 & 2 RESERVOIR (ENDING 3/31/16)220,970.00 220,970.00
2045527 03/30/16 13901 ADVANCED INDUSTRIAL SVCS INC 102292016 03/04/16 980-1 RESERVOIR (ENDING 2/29/16)126,872.50
302292016 03/04/16 711-1 & 2 RESERVOIR (ENDING 2/29/16)90,226.25
2045528 03/30/16 12174 AECOM TECHNICAL SERVICES INC 38 03/02/16 DISINFECTION SYSTEM (ENDING 2/26/16)5,450.00 5,450.00
2045529 03/30/16 11462 AEGIS ENGINEERING MGMT INC 1411 03/09/16 DEVELOPER PLAN REVIEW (2/1/16-3/4/16)10,654.58 10,654.58
2045530 03/30/16 15024 AIRX UTILITY SURVEYORS INC 30 03/01/16 AS-NEEDED LAND SURVEYING (2/1/16-2/29/16)5,460.00
103012016 03/01/16 UTILITY LOCATING SERVICES (2/1/16-2/29/16)1,332.00
2045576 04/06/16 17158 ALEJANDRO FRANCO Ref002458435 04/04/16 UB Refund Cst #0000161973 205.32 205.32
2045531 03/30/16 14462 ALYSON CONSULTING CM201620 03/07/16 MGMT/INSP (2/1/16-2/29/16)4,410.00
CM201626 03/07/16 MGMT/INSP (2/1/16-2/29/16)4,290.00
CM201623 03/07/16 MGMT/INSP (2/1/16-2/29/16)3,600.00
CM201621 03/07/16 MGMT/INSP (2/1/16-2/29/16)3,360.00
CM201625 03/07/16 MGMT/INSP (2/1/16-2/29/16)3,300.00
CM201624 03/07/16 MGMT/INSP (2/1/16-2/29/16)3,150.00
CM201627 03/07/16 MGMT/INSP (2/1/16-2/29/16)1,760.00
CM201622 03/07/16 MGMT/INSP (2/1/16-2/29/16)1,350.00
CM201619 03/07/16 MGMT/INSP (2/1/16-2/29/16)300.00
2045623 04/13/16 06166 AMERICAN MESSAGING L1109570QD 04/01/16 PAGERS (MAR 2016)213.33 213.33
2045671 04/20/16 17169 ANA ORYAN Ref002458630 04/18/16 UB Refund Cst #0000119061 38.16 38.16
2045577 04/06/16 08967 ANTHEM EAP 55590 03/29/16 EMPLOYEE ASSISTANCE PROG (APR-JUNE 2016)929.91 929.91
2045624 04/13/16 03492 AQUA-METRIC SALES COMPANY 0060188IN 03/23/16 OMNI C2 METERS 7,851.51 7,851.51
2045578 04/06/16 17152 ARMANDO TELLECHEA Ref002458429 04/04/16 UB Refund Cst #0000068921 7.60 7.60
2045579 04/06/16 17105 ARTIANO SHINOFF & HOLTZ APC 213543 03/16/16 LEGAL SERVICES (FEB 2016)20,000.00 20,000.00
2045672 04/20/16 07785 AT&T 000007888201 04/02/16 TELEPHONE SERVICES (3/2/16-4/1/16)5,903.12 5,903.12
2045532 03/30/16 12810 ATKINS 1833644 03/10/16 2015 WFMP UPDATE (8/3/15-1/31/16)21,133.98 21,133.98
2045580 04/06/16 17138 AVALON II CALIFORNIA IV LP Ref002458414 04/04/16 UB Refund Cst #0000185023 501.86 501.86
2045625 04/13/16 06970 BATTIKHA, SAM 040616040716 04/11/16 TRAVEL EXPENSE REIMB (4/6/16-4/7/16)183.73 183.73
2045673 04/20/16 17188 BOBBY JOHNSON Ref002458649 04/18/16 UB Refund Cst #0000222273 18.15 18.15Page 1 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
7,161.37
8,401.60
73.50
1,350.00
2045673 04/20/16 17188 BOBBY JOHNSON Ref002458649 04/18/16 UB Refund Cst #0000222273 18.15 18.15
2045674 04/20/16 17181 BRAD KIDD Ref002458642 04/18/16 UB Refund Cst #0000215644 25.96 25.96
2045626 04/13/16 10970 BRENNTAG PACIFIC INC BPI610599 03/24/16 SODIUM HYPOCHLORITE 3,316.65
BPI608770 03/17/16 SODIUM HYPOCHLORITE 2,435.89
BPI610598 03/24/16 SODIUM HYPOCHLORITE 1,408.83
2045533 03/30/16 10970 BRENNTAG PACIFIC INC BPI605371 03/02/16 SODIUM HYPOCHLORITE 2,906.79
BPI606589 03/09/16 SODIUM HYPOCHLORITE 2,585.10
BPI605741 03/04/16 SODIUM HYPOCHLORITE 1,819.65
BPI607194 03/10/16 SODIUM HYPOCHLORITE 1,090.06
2045581 04/06/16 17156 C EDWARD REED Ref002458433 04/04/16 UB Refund Cst #0000153660 53.85 53.85
2045675 04/20/16 02970 CALIFORNIA LAND SURVEYORS 11077020116 02/01/16 MEMBERSHIP DUES 174.00 174.00
2045627 04/13/16 01432 CALIFORNIA URBAN WATER G12016179 04/11/16 2016 DUES 2,315.81 2,315.81
2045628 04/13/16 01004 CALOLYMPIC SAFETY 349557 03/23/16 HAZWOP SAFETY 256.76 256.76
2045676 04/20/16 17189 CALVIN MILLISON Ref002458650 04/18/16 UB Refund Cst #0000222745 33.34 33.34
2045629 04/13/16 02758 CARMEL BUSINESS SYSTEMS INC 7999 03/22/16 DESTRUCTION SERVICES (3/18/16)38.50
8000 03/25/16 SCANNING SERVICES (3/18/16)35.00
2045534 03/30/16 02758 CARMEL BUSINESS SYSTEMS INC 7997 03/08/16 SCANNING SERVICES (3/4/16)35.00 35.00
2045535 03/30/16 15177 CAROLLO ENGINEERS INC 147618 03/10/16 2015 IWRP UPDATE (ENDING 2/29/16)426.00 426.00
2045630 04/13/16 17022 CASTLE ACCESS INC 0223090887 04/01/16 COLOCATION SERVICES 2,083.25 2,083.25
2045536 03/30/16 02911 CELARTEM INC PSI137746 03/02/16 SOFTWARE MAINTENANCE 655.00 655.00
2045677 04/20/16 16746 CH2M HILL ENGINEERS INC 381060721 03/23/16 2015 UWMP UPDATE (1/30/16-2/26/16)3,327.74 3,327.74
2045678 04/20/16 17172 CHRISTOPHER BOLLES Ref002458633 04/18/16 UB Refund Cst #0000162023 9.71 9.71
2045537 03/30/16 02026 CHULA VISTA ELEM SCHOOL DIST AR045578 03/03/16 GARDEN TOURS (1/21/16)540.00 540.00
2045631 04/13/16 02026 CHULA VISTA ELEM SCHOOL DIST AR045708 03/16/16 GARDEN TOURS (2/11/16-2/25/16)810.00
AR045716 03/23/16 GARDEN TOURS (12/2/15 & 12/3/15)540.00
2045679 04/20/16 15256 CIGNA GROUP INSURANCE / LINA 9267041016 04/10/16 AD&D & SUPP LIFE INS (APR 2016)4,471.35 4,471.35
2045632 04/13/16 12674 CITY OF CHULA VISTA 071060PU0040416 04/04/16 UTILITY PERMITS (7/1/15-3/31/16)11,880.00 11,880.00
2045582 04/06/16 00234 CITY TREASURER 1000161618 03/22/16 LABORATORY ANALYSIS (FEB 2016)1,220.00 1,220.00
2045633 04/13/16 16807 CIVIC LINK STRATEGIES Jan2016OWD 02/09/16 CONSULTANT FOR CITY OF SD RECYCLED WTR 9,000.00 9,000.00
2045680 04/20/16 04119 CLARKSON LAB & SUPPLY INC 83525 02/29/16 BACTERIOLOGICAL TESTING (2/24/16)356.00
Page 2 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
722.00
1,704.00
4,466.35
915.00
925.00
83524 02/29/16 BACTERIOLOGICAL TESTING (2/17/16)188.00
83526 02/29/16 BACTERIOLOGICAL TESTING (2/23/16)178.00
2045583 04/06/16 16030 CORA CONSTRUCTORS INC 00016091 03/03/16 RETAINAGE RELEASE 15,004.35 15,004.35
2045634 04/13/16 12334 CORODATA MEDIA STORAGE INC DS1272735 03/31/16 TAPE STORAGE (MAR 2016)408.65 408.65
2045538 03/30/16 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD021603/10/16 EXCAVATION PERMITS (FEB 2016)604.30 604.30
2045635 04/13/16 00184 COUNTY OF SAN DIEGO 2818032416 03/24/16 UPFP PERMIT RENEWAL (4/30/16-4/30/17)446.00 446.00
2045681 04/20/16 00184 COUNTY OF SAN DIEGO 2003193E602360316 04/04/16 SHUT DOWN TEST (3/30/16)213.00
2003193E602240316 04/14/16 SHUT DOWN TEST (3/30/16)213.00
2003193E602140316 04/04/16 SHUT DOWN TEST (3/30/16)213.00
2003193E602120316 04/04/16 SHUT DOWN TEST (3/30/16)213.00
2003193E616360316 04/04/16 SHUT DOWN TEST (3/30/16)142.00
2003193E616350316 04/04/16 SHUT DOWN TEST (3/30/16)142.00
2003193E602200316 04/04/16 SHUT DOWN TEST (3/30/16)142.00
2003193E616660316 04/04/16 SHUT DOWN TEST (3/15/16)142.00
2003193E616820316 04/04/16 SHUT DOWN TEST (3/18/16)142.00
2003193E616670316 04/04/16 SHUT DOWN TEST (3/15/16)142.00
2045636 04/13/16 02756 COX COMMUNICATIONS INC 6702032616 03/26/16 TELECOMM SVCS / METRO-E (3/24/16-4/23/16)3,866.35
9601032916 03/29/16 INTERNET SERVICES (3/29/16-4/28/16)600.00
2045584 04/06/16 17155 DAVID CISNEROS Ref002458432 04/04/16 UB Refund Cst #0000147842 6.12 6.12
2045539 03/30/16 17023 EH WACHS INV119926 03/08/16 CP #19 VALVE MACHINE 27,939.64 27,939.64
2045682 04/20/16 17173 ELASSAAD WALID Ref002458634 04/18/16 UB Refund Cst #0000163087 38.27 38.27
2045683 04/20/16 17186 ELEAZAR HERNANDEZ Ref002458647 04/18/16 UB Refund Cst #0000217884 16.03 16.03
2045684 04/20/16 17183 ELIZABETH MILLER Ref002458644 04/18/16 UB Refund Cst #0000217538 9.23 9.23
2045685 04/20/16 08023 EMPLOYEE BENEFIT SPECIALISTS 0074886IN 03/31/16 EMPLOYEE BENEFITS (MAR 2016)675.00 675.00
2045585 04/06/16 08023 EMPLOYEE BENEFIT SPECIALISTS 0074317IN 02/29/16 EMPLOYEE BENEFITS (FEB 2016)692.50 692.50
2045540 03/30/16 03227 ENVIROMATRIX ANALYTICAL INC 6030767 03/14/16 LAB ANALYSIS (2/26/16-3/9/16)470.00
6030576 03/07/16 LAB ANALYSIS (2/19/16-2/25/16)445.00
2045637 04/13/16 03227 ENVIROMATRIX ANALYTICAL INC 6030922 03/21/16 LAB ANALYSIS (3/7/16-3/16/16)480.00
6031175 03/28/16 LAB ANALYSIS (3/11/16-3/17/16)445.00
2045586 04/06/16 17161 ESSENCE DAWSON Ref002458438 04/04/16 UB Refund Cst #0000174578 116.36 116.36
2045638 04/13/16 14320 EUROFINS EATON ANALYTICAL INC L0258596 04/04/16 OUTSIDE LAB SERVICES (3/14/16)265.00 265.00
2045639 04/13/16 03546 FERGUSON WATERWORKS # 1083 0547298 03/24/16 INVENTORY 8,767.29
Page 3 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
9,307.84
7,324.41
2,420.05
2045639 04/13/16 03546 FERGUSON WATERWORKS # 1083 0547298 03/24/16 INVENTORY 8,767.29
0547485 03/17/16 HOSE 540.55
2045541 03/30/16 03546 FERGUSON WATERWORKS # 1083 0545666 03/08/16 GATE CAPS 1,296.00 1,296.00
2045640 04/13/16 16469 FIRST CHOICE SERVICES 057201 03/24/16 COFFEE SERVICES 516.38 516.38
2045542 03/30/16 16469 FIRST CHOICE SERVICES 056607 03/10/16 COFFEE SERVICES 353.34 353.34
2045543 03/30/16 11962 FLEETWASH INC x716323 03/04/16 VEHICLE WASHING 58.32 58.32
2045641 04/13/16 11962 FLEETWASH INC x724823 03/18/16 VEHICLE WASHING 70.01 70.01
2045686 04/20/16 01612 FRANCHISE TAX BOARD Ben2458702 04/21/16 BI-WEEKLY PAYROLL DEDUCTION 100.00 100.00
2045587 04/06/16 17149 FRANCISCO RIVERA Ref002458426 04/04/16 UB Refund Cst #0000020025 80.65 80.65
2045642 04/13/16 13563 FRIENDS OF THE WATER 300 03/22/16 GARDEN TOURS (MAR 2016)700.00 700.00
2045687 04/20/16 17182 GABE GONZALES Ref002458643 04/18/16 UB Refund Cst #0000216222 1,755.83 1,755.83
2045688 04/20/16 17166 GLENN JACOB Ref002458627 04/18/16 UB Refund Cst #0000013355 191.57 191.57
2045689 04/20/16 17174 H & H INDUSTRIES INC Ref002458635 04/18/16 UB Refund Cst #0000163106 86.64 86.64
2045544 03/30/16 00174 HACH COMPANY 9836535 03/11/16 HACH APA6000 1,342.99 1,342.99
2045545 03/30/16 00201 HARRINGTON INDL PLASTICS LLC 004G3755 03/14/16 DEFECTION FLANGES 130.06 130.06
2045690 04/20/16 05986 HAVS INCORPORATED 7335 02/24/16 BOARD ROOM MAINTENANCE 1,942.80 1,942.80
2045546 03/30/16 02008 HELIX ENVIRONMNTL PLANNING INC 16 03/07/16 ENVIRONMENTAL SERVICES (2/1/16-2/29/16)10,777.02 10,777.02
2045643 04/13/16 13349 HUNSAKER & ASSOCIATES 2016010070 03/15/16 LAND SURVEYING (1/22/16-2/19/16)10,050.00 10,050.00
2045644 04/13/16 03743 HYDROTEX 271963 03/17/16 OIL 3,402.60 3,402.60
2045645 04/13/16 15622 ICF JONES & STOKES INC 0113690 03/21/16 ENVIRONMENTAL SERVICES (1/30/16-2/26/16)4,326.47
0113685 03/21/16 ENVIRONMENTAL SERVICES (1/30/16-2/26/16)2,738.50
0113681 03/21/16 ENVIRONMENTAL SERVICES (1/30/16-2/26/16)259.44
2045547 03/30/16 08969 INFOSEND INC 102945 03/02/16 BILL PRINTING SERVICES (FEB 2016)2,040.76
103139 03/09/16 BILL PRINTING SERVICES (2/4/16)379.29
2045646 04/13/16 03380 INSIGHT PUBLIC SECTOR INC 1100465788 03/15/16 EMAIL/WEB SECURITY 17,421.50 17,421.50
2045548 03/30/16 02372 INTERIOR PLANT SERVICE INC 13932 02/20/16 PLANT SERVICES (FEB 2016)226.00 226.00
2045647 04/13/16 13899 INTERMEDIA.NET INC 1604001777 04/01/16 EMAIL SERVICES 3,215.35 3,215.35
2045588 04/06/16 17163 INTERNATIONAL INDUSTRIAL PARK 5000032916 04/04/16 CUSTOMER REFUND 1,559.87 1,559.87
2045549 03/30/16 17135 IRENE JACKSON 8133032516 03/25/16 CUSTOMER REFUND 1,071.64 1,071.64
Page 4 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
6,525.00
2045550 03/30/16 14737 IWATER INC 7381 03/08/16 GPS AND GEODATABASE SVCS (2/29/16-3/4/16)3,487.50
7382 03/11/16 GPS AND GEODATABASE SERVICES 3,037.50
2045551 03/30/16 03078 J&R CONCRETE PRODUCTS INC 56952 03/03/16 14-INCH MAIN VAULT 13,500.00 13,500.00
2045648 04/13/16 10563 JCI JONES CHEMICALS INC 683855 03/15/16 CHEMICALS FOR TREATMENT PLANT 1,684.65 1,684.65
2045691 04/20/16 17167 JERRY ZUCK Ref002458628 04/18/16 UB Refund Cst #0000017592 23.57 23.57
2045589 04/06/16 17159 JESSE WATERS Ref002458436 04/04/16 UB Refund Cst #0000163670 35.05 35.05
2045692 04/20/16 17177 JESSICA SHARP Ref002458638 04/18/16 UB Refund Cst #0000205101 14.09 14.09
2045590 04/06/16 17157 JORGE F OJEDA Ref002458434 04/04/16 UB Refund Cst #0000160336 130.66 130.66
2045693 04/20/16 17168 JOSEPH HACK Ref002458629 04/18/16 UB Refund Cst #0000024573 12.08 12.08
2045694 04/20/16 17180 KARIN MILES Ref002458641 04/18/16 UB Refund Cst #0000213920 26.81 26.81
2045591 04/06/16 17151 KIRK LUJAN Ref002458428 04/04/16 UB Refund Cst #0000032509 35.81 35.81
2045552 03/30/16 05840 KIRK PAVING INC 6086 03/08/16 ASPHALT CONCRETE PAVING 4,379.25 4,379.25
2045649 04/13/16 05840 KIRK PAVING INC 6092 03/22/16 ASPHALT CONCRETE PAVING 12,279.75 12,279.75
2045592 04/06/16 12276 KONECRANES INC SDG01099857 03/23/16 HOIST INSPECTION 575.00 575.00
2045593 04/06/16 17147 KURT KING Ref002458424 04/04/16 UB Refund Cst #0000011857 154.11 154.11
2045650 04/13/16 05632 LARSON, BRAD 032816 04/07/16 SAFETY BOOTS 146.45 146.45
2045651 04/13/16 15615 LAYFIELD USA CORPORATION E06450 03/22/16 RESERVOIR FLOATING COVER MAINT (MAR 2016)13,100.00 13,100.00
2045594 04/06/16 17139 LEO GONZALEZ Ref002458416 04/04/16 UB Refund Cst #0000203455 311.51 311.51
2045695 04/20/16 07784 LICON, HECTOR HL041816 04/18/16 PRESCRIPTION GLASSES 470.00 470.00
2045696 04/20/16 13749 LONDON GROUP REALTY ADVISORS 1179 04/04/16 OUTSIDE SERVICES (2/3/16-3/23/16)8,137.50 8,137.50
2045697 04/20/16 17191 LUSARDI CONSTRUCTION CO Ref002458652 04/18/16 UB Refund Cst #0000223528 1,695.85 1,695.85
2045698 04/20/16 17192 LUSARDI CONSTRUCTION CO Ref002458653 04/18/16 UB Refund Cst #0000223531 1,759.85 1,759.85
2045699 04/20/16 17185 MAGDALENA TROCHE Ref002458646 04/18/16 UB Refund Cst #0000217872 10.89 10.89
2045595 04/06/16 17150 MARGO VILLARIN Ref002458427 04/04/16 UB Refund Cst #0000024452 71.69 71.69
2045700 04/20/16 17194 MARIA HARO Ref002458655 04/18/16 UB Refund Cst #0000224429 20.03 20.03
2045596 04/06/16 17154 MARICELA LEON Ref002458431 04/04/16 UB Refund Cst #0000146428 63.34 63.34
2045701 04/20/16 17179 MARIE MORRISON Ref002458640 04/18/16 UB Refund Cst #0000207944 10.64 10.64
2045553 03/30/16 05329 MASTER METER INC 148046 03/02/16 INTERNAL MEASURING CHAMBERS 3,482.33 3,482.33
Page 5 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
1,029.66
1,443.48
546.25
2045553 03/30/16 05329 MASTER METER INC 148046 03/02/16 INTERNAL MEASURING CHAMBERS 3,482.33 3,482.33
2045652 04/13/16 08403 MCR TECHNOLOGIES INC 35460 03/17/16 PRESSURE TRANSDUCER 833.28 833.28
2045702 04/20/16 17171 MICHELLE FLORESCA Ref002458632 04/18/16 UB Refund Cst #0000160151 123.85 123.85
2045597 04/06/16 17162 MIRIAM FIERRO Ref002458439 04/04/16 UB Refund Cst #0000184969 52.06 52.06
2045598 04/06/16 17142 MISSION CAPITAL LLC Ref002458419 04/04/16 UB Refund Cst #0000221785 112.34 112.34
2045599 04/06/16 16613 MISSION RESOURCE CONSERVATION 363 04/01/16 HOME WATER USE EVALUATION 187.50 187.50
2045554 03/30/16 15136 MISSION UNIFORM SERVICE 502043659 03/08/16 UNIFORM SERVICES 405.79
501998569 03/01/16 UNIFORM SERVICES 392.11
502034309 03/07/16 UNIFORM SERVICES 115.88
502080760 03/14/16 UNIFORM SERVICES 115.88
2045653 04/13/16 15136 MISSION UNIFORM SERVICE 502136955 03/22/16 UNIFORM SERVICES 400.99
502089672 03/15/16 UNIFORM SERVICES 387.01
502126794 03/21/16 UNIFORM SERVICES 121.62
502172886 03/28/16 UNIFORM SERVICES 121.62
502136954 03/22/16 UNIFORM SERVICES 105.06
501998568 03/01/16 UNIFORM SERVICES 105.06
502043658 03/08/16 UNIFORM SERVICES 87.84
502089671 03/15/16 UNIFORM SERVICES 76.36
502037239 03/08/16 UNIFORM SERVICES 37.92
2045654 04/13/16 15854 MITSUBISHI UFJ SEC (USA) INC 0408160011 04/12/16 REMARKETING AGENT FEE (1/1/16-3/31/16)1,969.18 1,969.18
2045555 03/30/16 16956 MONTGOMERY CONST SVCS INC 202292016 03/03/16 OPS YARD IMPROVEMENTS (ENDING 2/29/16)74,549.35 74,549.35
2045600 04/06/16 16255 NATIONWIDE RETIREMENT Ben2458483 04/07/16 BI-WEEKLY DEFERRED COMP PLAN 11,680.12 11,680.12
2045703 04/20/16 16255 NATIONWIDE RETIREMENT Ben2458692 04/21/16 BI-WEEKLY DEFERRED COMP PLAN 11,430.17 11,430.17
2045601 04/06/16 16505 NIGHTCLUBPOOL LLC 107 03/25/16 OUTSIDE SERVICES 1,200.00 1,200.00
2045704 04/20/16 17170 NYDA PAMINTUAN Ref002458631 04/18/16 UB Refund Cst #0000121190 44.69 44.69
2045602 04/06/16 03215 O'DONNELL, MICHAEL 04052016MO 04/05/16 TUITION REIMBURSEMENT 93.18 93.18
2045556 03/30/16 00510 OFFICE DEPOT INC 826760020001 03/01/16 OFFICE SUPPLIES 483.98
829524070001 03/11/16 OFFICE SUPPLIES 62.27
2045655 04/13/16 00510 OFFICE DEPOT INC 830998017001 03/24/16 OFFICE SUPPLIES 1,403.33
829107391001 03/18/16 OFFICE SUPPLIES 508.96
829213174001 03/21/16 OFFICE SUPPLIES 286.60
830135986001 03/17/16 OFFICE SUPPLIES 252.58
Page 6 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
2,772.18
830346566001 03/23/16 OFFICE SUPPLIES 123.29
830346973001 03/23/16 OFFICE SUPPLIES 119.43
829092181001 03/18/16 OFFICE SUPPLIES 34.82
829092254001 03/18/16 OFFICE SUPPLIES 25.91
829107476001 03/19/16 OFFICE SUPPLIES 17.26
2045656 04/13/16 06856 ORPAK USA INC 47251 03/21/16 FUEL SYSTEM UPGRADE 2,700.00 2,700.00
2045557 03/30/16 01002 PACIFIC PIPELINE SUPPLY 306891 03/09/16 INVENTORY 1,610.28 1,610.28
2045558 03/30/16 15081 PINOMAKI DESIGN 5157 03/01/16 OUTSIDE SERVICES 85.00 85.00
2045559 03/30/16 03351 POSADA, ROD 032016032216 03/23/16 TRAVEL EXPENSE REIMB (3/20/16-3/22/16)1,110.69 1,110.69
2045657 04/13/16 07161 POULIN, WILLIAM 050116050416 04/11/16 MEAL ADVANCEMENT 131.00 131.00
2045560 03/30/16 13059 PRIORITY BUILDING SERVICES 48031 02/01/16 JANITORIAL SERVICES (FEB 2016)4,199.00 4,199.00
2045603 04/06/16 03613 PSOMAS 116388 03/14/16 AS-NEEDED DESIGN (ENDING 3/5/16)813.75 813.75
2045658 04/13/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2458485 04/07/16 BI-WEEKLY PERS CONTRIBUTION 186,269.92 186,269.92
2045561 03/30/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2457343 03/24/16 BI-WEEKLY PERS CONTRIBUTION 185,780.99 185,780.99
2045604 04/06/16 17160 REBECA TELLEZ Ref002458437 04/04/16 UB Refund Cst #0000171726 146.31 146.31
2045705 04/20/16 17175 RICARDO DIAZ Ref002458636 04/18/16 UB Refund Cst #0000175726 25.79 25.79
2045562 03/30/16 08972 RICK ENGINEERING COMPANY 0047264 03/01/16 CAMPO ROAD SUPPORT (1/1/16-1/31/16)39,547.94 39,547.94
2045706 04/20/16 08972 RICK ENGINEERING COMPANY 0047698 03/25/16 CAMPO ROAD SUPPORT (2/1/16-2/29/16)30,526.23 30,526.23
2045563 03/30/16 00521 RICK POST WELD & WET TAPPING 11131 03/04/16 WELDING 525.00 525.00
2045707 04/20/16 17176 RITA SHAYA Ref002458637 04/18/16 UB Refund Cst #0000188299 108.46 108.46
2045605 04/06/16 17153 ROBERT GONZALEZ Ref002458430 04/04/16 UB Refund Cst #0000073364 94.01 94.01
2045708 04/20/16 17193 ROBERT L. MERRITT LIVING TRUST Ref002458654 04/18/16 UB Refund Cst #0000223822 1,345.91 1,345.91
2045709 04/20/16 16587 ROCHA, DAVID 041016 04/15/16 SAFETY BOOTS 150.00 150.00
2045606 04/06/16 17143 ROGER PARSONS Ref002458420 04/04/16 UB Refund Cst #0000222090 47.40 47.40
2045607 04/06/16 17148 RUBEN PADILLA Ref002458425 04/04/16 UB Refund Cst #0000019971 166.77 166.77
2045659 04/13/16 17164 SABAH ZAKI 0007040816 04/08/16 CUSTOMER REFUND 75.00 75.00
2045660 04/13/16 02683 SAFECHECKS INC 0528396 03/31/16 CHECK STOCK 937.35 937.35
2045661 04/13/16 00003 SAN DIEGO COUNTY WATER AUTH 0000001391 03/24/16 MWD SCWS - HEWS 300.00 300.00
2045564 03/30/16 00121 SAN DIEGO GAS & ELECTRIC 032116 03/21/16 UTILITY EXPENSES (MONTHLY)25,425.95
Page 7 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
26,214.38
84,292.61
1,851.47
600.00
10,985.82
8,000.00
032316 03/23/16 UTILITY EXPENSES (MONTHLY)788.43
2045608 04/06/16 00121 SAN DIEGO GAS & ELECTRIC 032916 03/29/16 UTILITY EXPENSES (MONTHLY)58,011.74
032516 03/25/16 UTILITY EXPENSES (MONTHLY)26,176.87
032416 03/24/16 UTILITY EXPENSES (MONTHLY)104.00
2045662 04/13/16 00121 SAN DIEGO GAS & ELECTRIC 040516 04/05/16 UTILITY EXPENSES (MONTHLY)77,027.98 77,027.98
2045609 04/06/16 16196 SARA ALVIZ Ref002458415 04/04/16 UB Refund Cst #0000196071 100.00 100.00
2045610 04/06/16 17141 SCOT CONWAY Ref002458418 04/04/16 UB Refund Cst #0000207647 29.44 29.44
2045710 04/20/16 17178 SONIA RIVERA Ref002458639 04/18/16 UB Refund Cst #0000205698 32.97 32.97
2045711 04/20/16 17187 SOUZA AND SOUZA CONSTRUCTION Ref002458648 04/18/16 UB Refund Cst #0000222232 1,644.62 1,644.62
2045663 04/13/16 03516 SPECIAL DISTRICT RISK 52792 04/05/16 PROPERTY & LIABILITY INS (PRORATED)1,351.47
0001041116 04/11/16 PROPERTY DEDUCTIBLE 500.00
2045565 03/30/16 04843 SPRING VALLEY KIWANIS 06092016 03/06/16 SPONSORSHIP 500.00 500.00
2045712 04/20/16 13564 STAR-NEWS PUBLISHING CO, THE 4132016 04/13/16 SUBSCRIPTION RENEWAL 90.00 90.00
2045713 04/20/16 05755 STATE WATER RESOURCES 43077041416 04/14/16 CERTIFICATION RENEWAL 80.00 80.00
2045611 04/06/16 05755 STATE WATER RESOURCES 9452040416 04/04/16 CERTIFICATION RENEWAL 300.00
0851040416 04/04/16 CERTIFICATION RENEWAL 300.00
2045714 04/20/16 15974 SUN LIFE FINANCIAL Ben2458690 04/21/16 MONTHLY CONTRIBUTION TO LTD 4,973.18 4,973.18
2045612 04/06/16 17144 SUNDT CONSTRUCTION INC Ref002458421 04/04/16 UB Refund Cst #0000222118 2,465.00 2,465.00
2045613 04/06/16 17145 SUNDT CONSTRUCTION INC Ref002458422 04/04/16 UB Refund Cst #0000223566 2,465.00 2,465.00
2045566 03/30/16 10339 SUPREME OIL COMPANY 421615 03/03/16 UNLEADED FUEL 7,382.27
421616 03/03/16 DIESEL FUEL 3,603.55
2045664 04/13/16 16610 SVPR COMMUNICATIONS 1095 02/01/16 CONSULTANT SERVICES 4,000.00
1094 01/01/16 CONSULTANT SERVICES 4,000.00
2045715 04/20/16 17190 TC CONSTRUCTION COMPANY INC.Ref002458651 04/18/16 UB Refund Cst #0000222814 585.78 585.78
2045567 03/30/16 02376 TECHKNOWSION INC 2642 03/11/16 SCADA UPGRADES 26,051.30 26,051.30
2045716 04/20/16 15926 TEXAS CHILD SUPPORT UNIT Ben2458704 04/21/16 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61
2045614 04/06/16 15926 TEXAS CHILD SUPPORT UNIT Ben2458493 04/07/16 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61
2045568 03/30/16 16668 TRACE3 INC 80308 02/04/16 CISCO ROUTERS 8,414.32 8,414.32
2045665 04/13/16 16668 TRACE3 INC 81366 03/22/16 CISCO DEVICES 29,174.01 29,174.01
2045569 03/30/16 00870 TRANSCAT INC 1079237 03/04/16 ANNUAL CALIBRATION 473.12 473.12
Page 8 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
178.15
79,958.09
1,320.00
6,169.60
1,094.82
2045569 03/30/16 00870 TRANSCAT INC 1079237 03/04/16 ANNUAL CALIBRATION 473.12 473.12
2045570 03/30/16 00427 UNDERGROUND SERVICE ALERT OF 220160488 03/01/16 UNDERGROUND ALERTS (MONTHLY)295.50 295.50
2045666 04/13/16 15675 UNITED SITE SERVICES INC 1143873965 03/25/16 PORTABLE TOILET RENTAL (3/24/16-4/20/16)98.17
1143888778 03/30/16 PORTABLE TOILET RENTAL (3/25/16-4/21/16)79.98
2045615 04/06/16 15675 UNITED SITE SERVICES INC 1143858362 03/16/16 PORTABLE TOILET RENTAL (3/16/16-4/12/16)79.98 79.98
2045717 04/20/16 00350 UNITED STATES POSTAL SERVICE 3951041816 04/18/16 PREPAID POSTAGE MACHINE 6,000.00 6,000.00
2045571 03/30/16 07674 US BANK CC20160322009 03/22/16 CAL CARD EXPENSES (MONTHLY)79,958.09
2045718 04/20/16 06829 US SECURITY ASSOCIATES INC 1042976 11/30/15 PATROLLING SERVICES (NOV 2015)264.00
1081102 12/31/15 PATROLLING SERVICES (DEC 2015)264.00
1127806 01/31/16 PATROLLING SERVICES (JAN 2016)264.00
1170441 02/29/16 PATROLLING SERVICES (FEB 2016)264.00
1208350 03/31/16 PATROLLING SERVICES (MAR 2016)264.00
2045719 04/20/16 01095 VANTAGEPOINT TRANSFER AGENTS Ben2458698 04/21/16 BI-WEEKLY DEFERRED COMP PLAN 14,416.83 14,416.83
2045616 04/06/16 01095 VANTAGEPOINT TRANSFER AGENTS Ben2458489 04/07/16 BI-WEEKLY DEFERRED COMP PLAN 14,498.10 14,498.10
2045720 04/20/16 06414 VANTAGEPOINT TRANSFER AGENTS Ben2458700 04/21/16 BI-WEEKLY 401A PLAN 3,215.77 3,215.77
2045617 04/06/16 06414 VANTAGEPOINT TRANSFER AGENTS Ben2458491 04/07/16 BI-WEEKLY 401A PLAN 4,215.77 4,215.77
2045667 04/13/16 03329 VERIZON WIRELESS 9762510717 03/21/16 CELLULAR & WIRELESS SVCS (2/22/16-3/21/16)1,717.40 1,717.40
2045618 04/06/16 03329 VERIZON WIRELESS 9762510713 03/21/16 CELLULAR & WIRELESS SVCS (2/22/16-3/21/16)4,932.76 4,932.76
2045619 04/06/16 17140 VICTOR MARISCAL Ref002458417 04/04/16 UB Refund Cst #0000205990 141.41 141.41
2045668 04/13/16 15807 WATCHLIGHT CORPORATION, THE 464464 03/22/16 FIRE PANEL (2/25/16 & 3/9/16)1,685.14
463691 03/15/16 MONITORING SERVICES (APR 2016)1,473.92
464465 03/22/16 SECURITY SYSTEM SERVICE CALL (3/10/16)1,321.60
464469 03/22/16 SECURITY SYSTEM SERVICE CALL (3/14/16)623.47
464476 03/22/16 SECURITY SYSTEM SERVICE CALL (3/14/16)623.47
464467 03/22/16 SECURITY SYSTEM SERVICE CALL (3/10/16)238.00
464473 03/22/16 SECURITY SYSTEM SERVICE CALL (3/9/16)136.00
464474 03/22/16 SECURITY SYSTEM SERVICE CALL (3/10/16)68.00
2045572 03/30/16 15807 WATCHLIGHT CORPORATION, THE 463897 03/11/16 SECURITY SYSTEM SERVICE CALL (2/29/16)664.13
463898 03/11/16 SECURITY SYSTEM SERVICE CALL (2/29/16)158.69
463900 03/11/16 SECURITY SYSTEM SERVICE CALL (2/29/16)136.00
463902 03/11/16 SECURITY SYSTEM SERVICE CALL (2/29/16)136.00
2045669 04/13/16 15726 WATER SYSTEMS CONSULTING INC 1833 02/29/16 HYDRAULIC MODELING (ENDING 2/29/16)1,620.00 1,620.00
2045670 04/13/16 03781 WATTON, MARK 030116033116 04/07/16 MILEAGE REIMBURSEMENT (3/1/16-3/31/16)102.06 102.06Page 9 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 3/24/2016 - 4/20/2016
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
345.00
2045670 04/13/16 03781 WATTON, MARK 030116033116 04/07/16 MILEAGE REIMBURSEMENT (3/1/16-3/31/16)102.06 102.06
2045573 03/30/16 01343 WE GOT YA PEST CONTROL 103184 02/18/16 BEE REMOVAL 230.00
103272 02/19/16 BEE REMOVAL 115.00
2045721 04/20/16 01343 WE GOT YA PEST CONTROL 103824 03/16/16 BEE REMOVAL 115.00 115.00
2045620 04/06/16 17146 ZAKER GROUP Ref002458423 04/04/16 UB Refund Cst #0000223649 22.99 22.99
2045722 04/20/16 17184 ZAMIRA TRAVIS Ref002458645 04/18/16 UB Refund Cst #0000217757 25.36
2045574 03/30/16 15567 ZETTA INC INV00027981 03/01/16
03/30/16 03151 ZHAO, MING 020816021116 03/01/16
25.36
STORAGE USAGE (FEB-MAR 2016)2,731.25 2,731.25
TRAVEL EXPENSE REIMB (2/8/16-2/11/16)205.00 205.00
Amount Pd Total:1,792,495.97
Check Grand Total:1,792,495.97
2045575
Page 10 of 10