HomeMy WebLinkAbout06-24-15 Board Packet 1
OTAY WATER DISTRICT
BOARD OF DIRECTORS MEETING
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
WEDNESDAY
June 24, 2015
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 APRIL 29,
2015
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) ADOPT RESOLUTION NO. 4292 TO ESTABLISH THE TAX RATE FOR
IMPROVEMENT DISTRICT NO. 27 (ID 27) AT $0.004 FOR FISCAL
YEAR 2015-2016
b) ADOPT RESOLUTION NO. 4293 TO CONTINUE WATER AND SEWER
AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL
YEAR 2015-2016 TO BE COLLECTED THROUGH PROPERTY TAX
BILLS
c) AUTHORIZE AN AGREEMENT WITH BROWNSTEIN HYATT FARBER
SCHRECK (BHFS) FOR STATE AND FEDERAL LEGISLATIVE ADVO-
CACY SERVICES FOR FISCAL YEARS 2015 THROUGH 2017 IN AN
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AMOUNT NOT-TO-EXCEED $50,000 ANNUALLY ($100,000 TOTAL
ENDING JUNE 30, 2017)
d) CONSIDER CASTING THE DISTRICT’S VOTE TO ELECT A REPRE-
SENTATIVE TO THE CALIFORNIA SPECIAL DISTRICTS ASSOCIA-
TION’S BOARD OF DIRECTORS, REGION 6, SEAT A
e) CONSIDER THE CANDIDATES FOR THE SPECIAL DISTRICT RISK
MANAGEMENT AUTHORITY’S BOARD OF DIRECTORS ELECTION
AND CAST THE DISTRICT’S VOTE BY ELECTING UP TO THREE (3)
CANDIDATES AND ADOPTING RESOLUTION NO. 4291
ACTION ITEMS
7. GENERAL MANAGER
a) AUTHORIZE THE BOARD PRESIDENT, OR HIS DESIGNEE, TO SEND
LETTERS TO LEGISLATORS AND THE GOVERNOR IN OPPOSITION
TO ASSEMBLY BILL 115 AND SENATE BILL 88 RELATING TO WATER
SYSTEM CONSOLIDATION (BUELNA)
8. BOARD
a) DISCUSSION OF THE 2015 BOARD MEETING CALENDAR
REPORTS
9. GENERAL MANAGER’S REPORT
a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE
10. DIRECTORS' REPORTS/REQUESTS
11. PRESIDENT’S REPORT/REQUESTS
RECESS TO CLOSED SESSION
12. CLOSED SESSION
a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS [GOVERN-
MENT CODE §54956.8]
PROPERTY: SALT CREEK GOLF COURSE
525 HUNTE PARKWAY
CHULA VISTA, CA 91914
AGENCY NEGOTIATOR: MARK WATTON , GENERAL MANAGER
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NEGOTIATING PARTIES: BILL McWETHY, PACIFIC HOSPITALITY
GROUP
UNDER NEGOTIATIONS: LEASE AGREEMENT; PRICE AND TERMS
OF PAYMENT
RETURN TO OPEN SESSION
13. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD
MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
14. 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 June 19, 2015, 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 June 19, 2015.
/s/ Susan Cruz, District Secretary
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MINUTES OF A SPECIAL MEETING OF THE
BOARD OF DIRECTORS OFTHE
OTAY WATER DISTRICT
April 29, 2015
1. The meeting was called to order by President Lopez at 3:37 p.m.
2. ROLL CALL
Directors Present: Lopez, Robak, Smith and Thompson
Directors Absent: Croucher (due to a work commitment)
Staff Present: General Manager Mark Watton, General Counsel Dan
Shinoff, Asst. GM German Alvarez, Chief of Engineering
Rod Posada, Chief Financial Officer Joe Beachem, Chief
of Information Technology Geoff Stevens, 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 Thompson, and seconded by Director Smith and
carried with the following vote:
Ayes: Directors Lopez, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Director Croucher
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.
6. DISCUSSION ON THE DISTRICT’S DROUGHT AND WATER CONSERVATION
EFFORTS TO COMPLY WITH THE STATE WATER BOARD’S EMERGENCY
CONSERVATION REGULATIONS AND THE STATE’S MANDATORY
CONSERVATION OF POTABLE URBAN WATER USE
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President Lopez indicated that this issue was brought to his attention last week
and he felt there was a need to inform the board on the matter before the June 3,
2015 board meeting. General Manager Watton also indicated that he felt it was
in the best interest of the District to update the board.
General Manager Watton indicated that staff has prepared a report and a slide
presentation (attached) which is meant to encourage conversation on the drought
mandates and receive the board’s view and where they would like to head with
the budget.
Accounting Manager Rita Bell presented the District’s historical residential
gallons per capita per day (GPCD). She stated that the 2014 GPCD for
residential and master metered customers is 105 and the total annual revenue
for all customer types is approximately $63.7 million. Ms. Bell presented a chart
showing where a majority of potential water savings can be obtained which will
help the District focus its conservation efforts. She noted that tier 2 and tier 3
usage is 68% residential and indicated that the District’s potable irrigation
customers use 13% of the potable water. She stated that this is an area where
conservation efforts can be focused as well.
Ms. Bell presented an example, provided by the State of California, of how they
would track and report each agency’s monthly and cumulative savings once the
reporting process begins in June. She also presented, based on the State’s
example, a chart showing what the District’s report may look like. The chart
indicates the monthly savings at a 16% cutback in water use. Staff can also
provide the monthly savings at a 20% cutback if the board is interested.
Customer Service Manager Andrea Carey reviewed areas where the District may
have additional opportunities for conservation. She indicated that staff is
proposing implementing, in addition to the public outreach campaigns already in
use to promote conservation (such as, bill inserts, social media campaigns, high
usage phone calls, and leak alarm notifications), the following:
Temporary staff to assist with outreach and water conservation violation
enforcement.
Revision to current leak alarm process to increase frequency of
notification and expand contact of customer base.
o The District’s AMR meters will provide a “leak” alarm if there is
continuous water use for 24 hours. The alarm is received when the
meters are electronically read for usage (when a field employee
drives by). Staff noted that the District’s meter software was
updated in 2013 and the new software version allows the District to
pick-up reads every time a field representative drives by. In some
areas the District is picking up reads daily and sometimes weekly.
The District is receiving approximately 3000 leak alarms a month.
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As staff cannot visit all 3000 alarm sites, the District utilizes a
formula for those meters with a leak alarm. The system will review
last month’s and last year’s usage and prorate the new reads that
are causing the leak alarm. If the customer has 120% of usage
over last month or last year, then this customer is contacted. Staff
noted that some leak alarms will resolve themselves (leaking toilet,
a faucet was left running, etc.) or, if usage stops for three (3) hours
or more, the alarm will clear itself. If the customer’s usage is ten
(10) units over their average usage, then the District does a site
visit. If it is less than 10 units, then an automated phone call is
made to the customer.
Autodial and email campaigns to promote conservation and alert
customers to high water usage. The District currently has email
addresses for more than 60% of its customers and has phone numbers on
nearly all accounts. Messages through phone and email are an
inexpensive way to give our customers notifications in a timely manner.
Increase frequency of large meter testing to ensure our largest water
users are accurately billed for all usage flowing through their meters.
Targeted outreach to high residential users via email, autodial and regular
mail.
Targeted outreach to landscape irrigation customers via mail and phone
calls from Water Conservation staff.
Targeted outreach to mixed-use multi-residential customers via mail and
phone calls from Water Conservation staff.
Additional advertising to all customers (bill messaging, emails, bill inserts,
bill envelope messages, social media campaigns, and signage throughout
District).
Individual conservation targets for all customers printed on bills.
Conservation packets to mail or handout to high users or those interested
in conserving more.
Seminars on water conservation tips.
Drought rates.
Increasing the number of CWA water audits.
Accounting Manager Bell indicated that if there were a 16% reduction in water
sales, the impact to rates (using the fiscal year 2015 rate model) in fiscal year
(FY) 2016 is an additional 7.7% increase over the 4.7% increase estimated in the
FY 2015 model. Thus, the total increase required to balance the budget would
be 12.4% in FY 2016. Staff noted that Proposition 218 limits how much rates can
be increased and staff verified that the 12.4% increase would not violate the
District’s Proposition 218 limit. She stated the 12.4% increase assumes no use
of reserves to offset the reduced sales. She indicated that the board does have
the option to draw on reserves to lower the necessary rate increase, however,
the use of reserves is limited by the how much the debt coverage ratio would be
impacted. To keep rates at 4.7% in FY 2016, the estimated required draw on
reserves would be approximately $2.5 million. This would lower the debt
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coverage ratio to 138%, which is below the District’s target of 150%. To maintain
the debt coverage ratio at the District’s target, a partial use of reserves in the
amount of $1.5 million and a rate increase of 7.6% would be required. She
stated that if no reserves are utilized, then a 12.4% increase would be required,
which would provide for a debt coverage ratio of 169%. She explained that
lowering the debt coverage ratio below the 150% target carries the risk that there
may be a negative effect to the District’s credit rating. She noted that the
percentages are rough estimates based on the FY 2015 rate study.
Customer Service Manager Carey shared what neighboring agencies’ were
doing in response to the State mandate. She stated that staff met with
conservation and finance staff from Helix WD, Padre Dam MWD and Sweetwater
Authority last week to discuss each agency’s initial thought on how to address
the mandate. Since this is all happening very quickly and was still evolving at the
time of the meeting, each agency was still in the brainstorming and research
stage. Sweetwater Authority and Helix WD both anticipate hiring temporary staff
to assist with the additional outreach to customers and enforcement of
waterwaste violations and none of the agencies had a firm idea of where they
were headed in terms of rates. Helix WD is exploring the possibility of instituting
a surcharge or penalty for high users to offset some of the revenue decreases
and Padre Dam MW is looking at possibly using reserves and potential penalty
rates to offset revenue reductions. Sweetwater Authority has penalty rates that
can be added into an allocation system that they already have in place. She
stated that at this time, none of these ideas have been discussed with their
board.
She noted that the staff report highlights important conservation efforts that the
District has supported over the years. Unfortunately, these efforts are not being
considered in the State’s regulations. She stated the next steps in the State’s
action is a May 4, 2015 comment deadline for the current draft of regulations
which will be followed by a Water Resources Control Board hearing and
consideration to adopt the regulation on May 5 and 6, 2015.
General Manager Watton indicated that the District was interested in San Diego
County Water Authority (CWA) providing an advisory on its actual supply. He
stated that part of the rates that the agencies pay to CWA have gone:
Back to the agencies
To CWA for CIP projects (San Vicente Dam Raise, Olivenhain Reservoir,
Carlsbad Desalination Project, Imperial Irrigation District Water Transfer,
All American Canal Lining, etc.)
He indicated that a number of years ago, the Governor mandated that all cities
reduce their water use by 20% by 2020. He stated the County of San Diego did
all the planning to meet that goal and prepare for drought and the San Diego
County is no longer vulnerable to MWD supply cuts due to this planning. He
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presented a slide (attached) showing San Diego County’s water supply with a
15% supply cutback that was approved by MWD’s board last month. With
MWD’s supply cut, the San Diego Region would only need to cut back 1% with
the available water supply from CWA. If San Diego County had decided to not
utilize water from the State water project, it would require that the region cut an
additional 2% in their water use for a total 3% cutback. He stated that San Diego
is in good shape despite the drought.
General Manager Watton additionally shared that with drought management
planning, the Urban Water Management Plans for the region and planning for
future water supplies, growth is not an issue. He stated that the Governor’s
proposed cutback suggests that growth is an issue, but from a water supply
planning standpoint it is not an issue in the San Diego region. The San Diego
region has prepared for drought and has sent letters to the State Water
Resources Control Board to consider this preparation in their mandate (copies
attached to staff’s report). However, none of this preparation is receiving credit
from the State Board.
Chief of Operations Pedro Porras presented a review of the District’s Leak
Detection and Repair Program. He indicated that it is one of the main
components for water conservation and it is also an important part of asset
management. The Leak Detection and Repair Program was instituted in early
2013. He reviewed the areas within the District’s service area where the leak
detection program was performed; 70 miles of pipeline in the La Presa System,
108 miles (15% of the potable system) in a portion of the City of Chula Vista, and
148 miles (20% of the potable system) in another part of the City of Chula Vista.
A total of 326 miles of potable pipelines (45%) and 19 miles of recycled pipelines
(18%) have been surveyed. He stated a leak was detected on a main, 26 leaks
were detected on service lines, 119 leaks were at the meter, 1 hydrant leak was
identified and 60 leaks on the customers’ side of the system for a total savings of
214.13 acre feet (AF) a year. The total cost to detect the leaks was $90,156 with
a total savings in water loss of $303,700. He stated with the success of the leak
detection program over the last few years, the District would like to inspect the
remaining 55% of the District’s potable system next year at an approximate cost
of $150,000. He noted that the leaks that have been detected by this program
did not surface and, thus, they would not have been detected. The leaks that are
detected are generally called in by the public due to water pooling on the ground.
He indicated that the Leak Detection and Repair Program has proven to be very
cost effective and would save hundreds of AF of water lost to leaks, as well as,
costly repairs and impacts to the District’s customers. It was noted that water
lost to leaks on the customers side of the meter were not included in the
calculation.
Director Smith noted that the water saved through the Leak Detection Program
represents approximately 1% of the District’s total water purchases. Thus, the
District has saved 1% of the 20% savings mandated by the State Governor. He
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also noted that there is additional savings from leaks detected on the customers’
side of the meter.
In response to an inquiry from Director Smith, Chief of Water Operations Porras
indicated that the District’s staff does handle the repair of any leaks detected by
the program. Staff prioritizes the repair work so it does not impact workload and,
thus, does not require the hiring of additional staff. Staff does not anticipate
finding as much leaks in the remaining 55% of the District’s pipelines as these
pipelines are newer. The program had first concentrated on the District’s older
areas.
General Manager Watton indicated that another thing that the Governor is
targeting is system reliability. A 20% cut in water use is hard to get, but we want
to be able to show the Governor that we are doing all we can to meet the savings
objective.
He indicated that staff will be increasing its communications with customers to
make them aware of the Governor’s mandates and the need to conserve more
water. He noted that the Governor’s mandates/regulations are a draft at this time
and they have a public comment period open through May 4, 2015. The District
will be submitting its comments on the regulations, which will include the District’s
concerns regarding the regulatory structure, for the record. It is anticipated that
the mandates/regulations presented will not be changed and will be adopted by
the State Board of Water Resources on May 5 and 6, 2015.
In response to an inquiry from Director Smith, Accounting Manager Bell indicated
that the District’s Proposition 218 allows the District to pass through 100% of the
increase in cost by the District’s providers (CWA, MWD and City of San Diego) to
its customers. The notice also allows an increase of up to 10% for internal
reasons, which would include lower sales due to conservation. If the District
draws on the reserves temporarily or imposes penalty rates, the rate increase
can be reduced. She stated the District has a lot of options to consider.
General Manager Watton indicated in response to another inquiry from Director
Smith that Governor Brown had indicated that a fine of $500, $1000 or $10,000
per day may be imposed on agencies who do not comply with the drought
mandate. Director Smith suggested that staff add to the District’s water bills the
customers 2013 water use and their use today so customers can determine their
conservation targets. He also suggested that the District include the tier levels in
the bill as he felt that saving money is a good incentive for customers to
conserve. General Manager Watton indicated that staff is exploring these
options and seeking advise from the District’s billing vendor on how we can
reorganize the bill to include this information.
Director Thompson felt that by grading our customers on how they are
contributing towards our conservation goal, similar to grades in school (A, B, C, D
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or F), it could encourage conservation as well. He suggested that it could be
special messaging advising the customer that they are doing average, below
average, etc. in conserving water; a friendly message that encourages them to
continue to try and conserve. The District could also share how they are doing
conservation-wise in comparison to other customers (based on statistics). He
asked that staff come up with some kind of messaging plan and also include in
the messaging how the District is doing overall to conserve (what percentage the
District, as a whole, has conserved).
President Lopez indicated that considering the efforts that the District’s
customers have already done, customers may feel that they have cut as much
water use as they can and now they must cutback another 20%. He stated we
need to consider how we communicate the message to our customers as we do
not want to be hard handed.
Director Robak inquired on the Governor’s legal authority as he feels that there is
a good chance that the District’s customers will not be able to save the additional
20% that is mandated. General Counsel Shinoff indicated that the Governor
does not have unilateral authority. The legal remedy is an agency could file a
petition through a mandate arguing that the Governor has exceeded his
authority. Such a filing will likely come from districts in eastern Sacramento who
have senior pre-1914 water rights who will not want to let those water rights sit as
they risk losing those water rights if they do not utilze them. The board
requested that the District’s legal counsel do some analysis on legal remedies so
the District can be prepared and strategize should its customers not meet their
20% conservation mandate. Director Smith warned that the District needs to be
careful that it does not spend more money on legal fees versus potential fines.
Also, he noted that filing a lawsuit could cause issues with the State.
It was discussed that there is no mandate in the Governor’s order that there will
be or shall be fines. The language is permissive. It is not certain how the
Governor will act if District’s do not meet their conservation mandates. There
may be different results based on the District’s efforts in encouraging its
customers to conserve. It was discussed that this is the first time that a Governor
has ordered mandatory regulations, so there is no precedence on how the State
will act.
General Manager Watton indicated, with regard to the City of San Juan
Capistrano’s lawsuit, that the District has a defensible case as its rates are based
on the rate analysis that was done with the District’s rate study. He stated that
some agencies do not perform a rate study or they do not utilize the outcome of
their rate study and just decided to implement a penalty for their high water users
and keep their low users rates the same. He indicated that this is not a
defensible position because their District’s rates are not based on a cost-of-
service analysis through a rate study. Director Thompson indicated that this
case brings up the fundamental question of what is fair. He stated that he felt the
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system should be fair and inquired if it costs Otay WD less to produce water for
lower users. He also questioned the cost-of-service for multi-residential users
versus single-family users as he feels that the District’s multi-residential
customers are paying more for their water service. General Manager Watton
indicated that the District could review this area in the next cost-of-service study.
Director Smith indicated that he felt customers could self-evaluate, but if there
are customers that the District decides to penalize, that the District should
notify/warn them prior to imposing the fine. Staff should also consider a
temporary staff member to provide support to the conservation office and
enforcement. He stated that he supported staff’s conservation outreach plan, but
he was not certain with regard to the drought rates and asked if staff could clarify
what they are considering for fines.
General Manager Watton indicated that if penalties were implemented, the
District would need an administrative process to handle appeals, up to presenting
appeals for the board’s consideration. District staff is proposing against fines.
Staff is looking at other ways like turning the meter off for those customers who
are really egregious; will not fix leaks or manage their water use. Staff will
discuss this more with the board.
General Manager Watton noted that CWA will be taking all the water it is
allocated from MWD and CWA is not planning to cut its member agencies
allocations.
There was discussion that the Chairman of CWA, Mr. Mark Weston, attended a
meeting with the Governor and the ten largest wholesale agencies in the State.
The Governor was discussing the removal of 50 million square feet of turf or 1.8
square miles and CWA Chairman Weston commented to Ms. Felicia Marcus,
Chairman of the State Water Resources Control Board, that that would only
represent savings of 4000 AF per year. General Manager Watton indicated that
the other side of it is if you look at it on a drought emergency basis, when people
remove their lawns, most are installing low water use landscapes which,
statistically, will take as much or more water to establish the new low water use
landscape. He noted that not many residents are not putting in artificial turf.
Removing turf, thus, is something that should be categorized in the long term
planning for conservation and not for the short term or within the year.
Director Smith indicated with regard to the impact to the District’s rates with a
16% water sales reduction, that his preference would be to spread the increase
over several fiscal years.
Director Thompson indicated that he would like to look at the impact to the
District’s financials if it utilizes its reserves to soften the impact of the reduced
water sales due to conservation and also spread the required rate increase over
a couple fiscal years as suggested by Director Smith. He indicated that he did
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not wish to be close to a 9.15% increase unless it has detrimental impacts to the
District in the long haul. He stated that the District needed to take a hard look at
all parts of the District’s operations and make sure that we are being as efficient
as we can be. Director Smith indicated that the board should also look at
becoming more efficient.
General Manager Watton indicated that the advantage of the drought occurring
during the budget process is the board will have an opportunity to review the
administrative budget next month. The District has a zero based budget and has
reduced staffing from 176 to 138 employees. Some agencies have chosen to do
layoffs, but Otay WD decided to reduce its headcount through attrition. He
indicated that there may be some discreet functions that the board may wish the
District to no longer do to reduce costs and the board will have an opportunity to
review this during the budget workshop. He stated that if there is a perception
that the District is overstaffed or over budgeted, staff certainly wishes to address
this. Staff does not believe that the District is overstaffed or over budgeted and
staff has taken good measures to enhance efficiency. General Manager Watton
stated that staff has received a lot of input from the board and staff will review
and focus on some of the suggestions from the board.
7. ADJOURNMENT
With no further business to come before the Board, President Lopez adjourned
the meeting at 5:35 p.m.
___________________________________
President
ATTEST:
District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: June 24, 2015
SUBMITTED BY:
Jeanette Ziomek,
Senior Accountant
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. 4292 to Establish the Tax Rate for
Improvement District No. 27 (ID 27) for Fiscal Year
2015-2016
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4292 to establish the tax rate
for Improvement District No. 27 (ID 27) at $0.004 for fiscal year
2015-2016.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
Improvement District No. 27 (ID 27) has outstanding general
obligation bonds which mature in fiscal year 2023 and is the only
improvement district with general obligation debt service. As of
July 1, 2015, the outstanding debt will be $5.2 million with interest
rates from 3% to 4%. The bonds are non-callable.
At the beginning of each fiscal year staff must provide the County of
San Diego, Property Tax Services, with the tax rate to be charged
upon all property within ID 27 to ensure the amount of tax
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collections will support the annual debt service requirement. Staff
recommends that the Board adopt Resolution No. 4292 to establish
the tax rate for ID 27 at $0.004 for fiscal year 2015-2016.
BACKGROUND:
In December 1992, the District sold $11,500,000 of general obligation
bonds in ID 27 for the construction of the 30mg reservoir. At the
time of the formation of ID 27, the District intended to have a
maximum tax rate of $0.10 per $100 of assessed valuation. The tax
rate has remained well below the intended maximum rate.
The District refinanced the bonds in fiscal year 1998 and again in
fiscal year 2010 which resulted in a reduction in the annual debt
schedule. Property valuations continued to increase and reached its
peak in fiscal year 2008 at $12.5 billion. With the recession the
assessed values dropped below $10 billion in fiscal year 2011 and is
now valued at more than $11 billion. The combination of the reduced
debt service requirement and the increased assessed values resulted
in the District’s reserve levels to exceed the target.
Since 2009, the tax rate has been $.005 and the District has covered
the tax collection shortfall from the ID 27 reserves.
With new residential development in east Chula Vista and the recovery
of the housing market, it is anticipated that the assessed values
will continue to grow. Therefore, staff proposes to decrease the
fiscal year 2015-2016 tax rate to $.004 and to continue to cover the
tax collection shortfall from the ID 27 reserves. Staff projects
that a $.004 tax rate will maintain reserve levels above the target
until it is time to wind down the reserve for the expiration of the
debt.
FISCAL IMPACT:
The tax proceeds are legally restricted for the sole purpose of the
repayment of this debt. These proceeds will be collected until the
debt obligation is fully paid, at which time the fund will have a
zero balance. The $0.004 tax rate is projected to generate $609,623
in revenue in fiscal year 2016. The projected revenue, given the
recommended tax rate combined with the current fund balance, will
meet the annual ID 27 debt service payment of $751,663. Lowering the
tax rate to $.004 reduces the fund balance and brings it closer to
the target level of six months of bond payments while maintaining a
positive cash balance for the foreseeable future.
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STRATEGIC GOAL:
Through well-established financial policies and wise management of
funds, the District will continue to guarantee fiscal responsibility
to its ratepayers and the community at large.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action Form
B) Resolution No. 4292
C) ID 27 Tables
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4212 to Establish the Tax Rate for
Improvement District No. 27 (ID 27) for Fiscal Year
2015-2016
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee reviewed
this item at a meeting held on June 16, 2015 and the following
comments were made:
Staff presents this item each year to formally set the tax rate for
the outstanding General Obligation Bonds for ID 27.
Since 2009, the tax rate has been set at $0.005 per $100 of assessed
property value.
Staff indicated that the highest assessed property values in ID 27
was $12.5 million. With the recession, assessed property values
dropped below $10 million. Today it has been increasing steadily
and is back over $11 million. Staff believes the assessed property
values will continue to grow.
Staff developed an annual projection (reference Attachment C) based
on what has been collected in taxes to date, the outstanding debt,
and the assessed property values for FY 2016. Staff is proposing
that the tax rate be dropped to $.004. This will allow for the
collection of sufficient revenues to pay the bond debt and maintain
reserve levels at target.
In projecting further out into the future, it is believed that the
tax rate will continue to be reduced and will no longer be collected
before 2023 as the District does not want to over collect as the
funds collected may only be utilized to make payments on the bond.
The District will use the remaining proceeds to pay the remaining
debt.
The committee inquired why the District does not continue to collect
$.005 and just stop collecting the tax early. Staff indicated that
they wished to match the use of the facility to the payment for the
facility as much as reasonably possible, meaning that we would like
to keep the taxes as close to the maturity of the debt as possible
without collecting more than is needed..
In response to another inquiry from the committee, staff indicated
that the tax rate should have been indicated as $0.004 for FY 2016
in Attachment C to staff’s report. Staff will update the tax rate
for FY 2016 and provide a new copy of Attachment C.
It was indicated that the total outstanding debt is $5.2 million.
Upon completion of the discussion, the committee supported staffs’
recommendation and presentation to the board as a consent item.
1
RESOLUTION NO. 4292
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OTAY WATER DISTRICT FIXING TAX RATES FOR
FISCAL YEAR 2015-2016 FOR PAYMENT OF
PRINCIPAL AND INTEREST ON GENERAL OBLIGATION
BONDS OF IMPROVEMENT DISTRICTS (GF 1600)
WHEREAS, California Water Code Section 72091 authorizes the
Otay Water District, as a municipal water district, to levy an ad
valorem property tax which is equal to the amount required to
make annual payments for principal and interest on general
obligation bonds approved by the voters prior to July 1, 1978.
NOW, THEREFORE, the Board of Directors of the Otay Water
District resolves, determines and orders as follows:
1. Findings. It is necessary that this Board of Directors
cause taxes to be levied in fiscal year 2015-2016 for Improvement
District No. 27 of the Otay Water District to pay the amount of
the principal and interest on the bonded debt of such improvement
district.
2. Amounts to be Raised by Taxes. The amount required to
be raised by taxation during fiscal year 2015-2016 for the
principal and interest on the bonded debt of Improvement District
No. 27 is as follows:
Improvement District No. 27 $609,623
3. Tax Rates. The tax rates per one hundred dollars ($100)
of the full value of all taxable property within said improvement
district necessary to pay the aforesaid amounts of principal and
interest on the bonded debt of said improvement district for
fiscal year 2015-2016 is hereby determined and fixed as follows:
Improvement District No. 27 $0.004
Attachment B
2
4. Certification of Tax Rates. Pursuant to Water Code
Section 72094, this Board of Directors hereby certifies to the
Board of Supervisors and the County Auditor of the County of San
Diego the tax rates hereinbefore fixed, and said County Auditor
shall, pursuant to Section 72095 of said Code, compute and enter
in the County assessment roll the respective sums to be paid as
tax on the property in Improvement District No. 27, using the
rate of levy hereinabove fixed for such improvement district and
the full value as found on the assessment roll for the property
therein, and the Secretary of this Board of Directors is hereby
authorized and directed to transmit certified copies of this
resolution, Attachment B, and made a part hereof, to said Board
of Supervisors and said Auditor.
PASSED AND ADOPTED by the Board of Directors of the Otay
Water District at a regular meeting held this 24th day of June,
2015.
Ayes:
Noes:
Abstain:
Absent:
____________________________
President
ATTEST:
________________________________
Secretary
ATTACHMENT C
IMPROVEMENT DISTRICT 27
History
1989 Improvement District 27 was formed with $100,000,000 bonding authorized.
1992 District issued $11,500,000 in General Obligation Bonds primarily for the constructionof a 30 million gallon storage reservoir.
1998 District refinanced outstanding debt of $10,900,000.
2009 District refinanced again outstanding debt of $7,780,000.
TAXES DEBT TAX ASSESSED
COLLECTED SERVICE NET RATE VALUATION INC%
FY03 $725,085 $848,600 ($123,515) $0.01500 $3,837,693,353 37%
FY04 $829,036 $848,700 ($19,664) $0.01400 $5,047,625,296 32%
FY05 $994,501 $840,800 $153,701 $0.01200 $6,454,909,846 28%
FY06 $1,081,991 $840,385 $241,606 $0.01000 $8,579,576,581 33%
FY 07 $862,795 $837,936 $24,859 $0.00700 $10,348,663,242 21%
FY 08 $917,168 $835,017 $82,151 $0.00600 $12,518,643,676 21%
FY 09 $747,175 $830,823 ($83,648) $0.00500 $12,308,043,285 -2%
FY 10 $605,405 $934,674 ($329,269) $0.00500 $10,378,404,507 -16%
FY 11 $606,966 $781,144 ($174,178) $0.00500 $10,131,397,697 -2.4%
FY 12 $597,799 $752,976 ($155,177) $0.00500 $9,941,622,812 -1.9%
FY 13 $650,587 $773,863 ($123,276) $0.00500 $9,869,377,173 -0.7%
FY 14 $664,270 $750,088 ($85,818) $0.00500 $10,226,148,004 3.6%
FY 15 (1)$727,506 $748,663 ($21,157) $0.00500 $11,157,255,925 9.1%
(1) Due to timing of the report, taxes collected is an estimate.
TAXES DEBT TAX ASSESSEDCOLLECTED SERVICE NET RATE VALUATION INC%
Est Fund Balance 6/30/15 $793,925
FY16 $609,623 $751,663 ($142,040) $0.00400 $11,491,973,602 3.0%
Interest $3,562
Est Fund Balance 6/30/16 $655,447
Historical Data
Change in Fund Balance
$0
$2
$4
$6
$8
$10
$12
Bi
l
l
i
o
n
s
ASSESSED VALUATION
10 Year History
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 24, 2015
SUBMITTED BY:
Alicia Mendez-Schomer,
Customer Service 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. 4293 to Continue Water and Sewer
Availability Charges for District Customers for Fiscal Year
2015-2016 to be Collected through Property Tax Bills
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4293 to continue water and sewer
availability charges for District customers for fiscal year 2015-2016
to be collected through property tax bills.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
That the Board consider the adoption of Resolution No. 4293 to
continue water and sewer availability charges for District customers
for fiscal year 2015-2016 to be collected through property tax bills.
ANALYSIS:
State Water Code Section 71630-71637 authorizes the District to
access such availability charges. The District levies availability
charges each year on property in both developed and undeveloped
2
areas. In order to place these charges on the tax roll, the County
of San Diego requires the District to provide a resolution
authorizing the charges. Each year, the District provides a
resolution along with the listing of charges by parcel. Current
legislation provides that any amount up to $10 per parcel (one acre
or less) is for general use and any amount over $10 per parcel ($30
per acre for parcels over one acre) is restricted, to be expended in
and for that Improvement District. The District uses amounts over
$10 per parcel to develop water and sewer systems within the
Improvement Districts where the funds are collected. In accordance
with legislation, the District places amounts up to $10 per parcel in
the General Fund.
FISCAL IMPACT:
The availability charges, as budgeted, will generate approximately
$1.2 million in revenue.
STRATEGIC GOAL:
This revenue source will help the District meet its fiscal
responsibility to its ratepayers.
LEGAL IMPACT:
None.
Attachments: Attachment A – Committee Action Form
Attachment B – Resolution No. 4293
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4293 to Continue Water and Sewer
Availability Charges for District Customers for Fiscal Year
2015-2016 to be Collected through Property Tax Bills
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee reviewed
this item at a meeting held on June 16, 2015 and the following
comments were made:
Staff is requesting that the Board adopt Resolution No. 4293 to
continue water and sewer availability fees in Fiscal Year 2015-2016.
The availability fees are collected through property tax bills and
are authorized through the State Water Code.
In order to place these fees on the property tax bills, the County
of San Diego requires that the District’s Board adopt a resolution
annually authorizing the fees.
The District collects approximately $1.2 million each year through
this assessment.
The fees collected are $10 per parcel that are one (1) acre or less
and $30/acre for parcels larger than one acre. These fees have not
changed for many years.
The committee indicated that following the ruling in the San Juan
Capistrano lawsuit, they wanted to be sure the collection of
availability fees is defensible; that there is a nexus between the
charge and benefit to customers. It was indicated that land
(undeveloped or developed) benefit from having water service
available to the parcels. The availability of water increases
property value. The San Juan Capistrano lawsuit was contending
rates and Proposition 218. The authority to assess availability
fees is in the Water Code and is separate from commodity rates.
In response to an inquiry from the committee, staff indicated that
the first $10 collected in availability fees is unrestricted and any
fees collected after the first $10 goes into a restricted fund which
The above signatures attest that the attached document has been reviewed and to the best of their ability the
signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;
being grammatically correct and free of formatting and typographical errors; accurately presenting calculated values
and numerical references; and being internally consistent, legible and uniform in its presentation style.
may only be utilized for capital facilities (CIP) in their area.
The unrestricted fees go into the Betterment Fund and are used for
upsizing facilities, etc.
Upon completion of the discussion, the committee supported staffs’
recommendation and presentation to the board as a consent item.
1
RESOLUTION NO. 4293
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
OTAY WATER DISTRICT CONTINUING PREVIOUSLY
ESTABLISHED WATER AND SEWER AVAILABILITY
CHARGES FOR FISCAL YEAR 2015-2016; REQUESTING
THE COUNTY TO COLLECT SUCH AVAILABILITY CHARGES
ON THE 2015-2016 SECURED TAX ROLL AND TAKING
OTHER RELATED ACTIONS
WHEREAS, the Otay Water District (herein "District") is a
member of the San Diego County Water Authority and the Metropolitan
Water District of Southern California and, as a member, the
District is entitled to purchase water for distribution within the
District and water so purchased is available to property in the
District that is also within the San Diego County Water Authority
and the Metropolitan Water District of Southern California, without
further need for annexation to any agency; and
WHEREAS, Improvement District No. 18 has been formed within
the Otay Water District (herein "District") and sanitary sewers
have been constructed and sewer service is available to land within
the said district; and
WHEREAS, in consideration of the benefit that water
availability confers upon property within the District, and in
further consideration of the need for revenue to pay the cost of
water storage and transmission facilities which directly and
specifically benefit property within the District, the District has
previously determined that water availability charges be fixed and
established under applicable provisions of law; and
WHEREAS, in consideration of the benefit which sewer
availability confers upon property within Improvement District No.
18, and in further consideration of the need to pay the cost of
Attachment B
2
sanitary sewers which directly and specifically benefit those
properties, the District has previously determined that sewer
availability charges be fixed and established for Improvement
Districts No. 18 as provided under applicable provisions of law;
and
WHEREAS, the District desires to continue the collection of
such water and sewer availability charges without increases or
revisions in methodology or application.
NOW, THEREFORE, the Board of Directors of the Otay Water
District resolves, determines and orders as follows:
1. SCHEDULE OF WATER CHARGES
(A) The water availability charges previously fixed and
established are hereby continued for Fiscal Year 2015-2016 at the
existing rates, as follows:
(1) In Improvement District No. 22 the charge shall be
$30.00 per acre of land and $10.00 per parcel of land
less than one acre.
(2) For land located outside an improvement district and
within one mile of a District water line, the charge
shall be $10.00 per acre of land and $10.00 for each
parcel less than one acre.
(3) For land located outside an improvement district and
greater than one mile from District facilities, the
charge shall be $3.00 per acre of land and $3.00 for
each parcel less than one acre.
(B) Modifications The charges provided for in subparagraphs
(1) through (3) in (A) above shall be modified upon petition by the
3
property owner where the property does not receive water from the
District as follows:
(1) where a parcel of land or a portion thereof is within
an open space easement approved by San Diego County,
the charge for such parcel or portion thereof shall
be fifty percent (50%) of the charge determined
pursuant to paragraph (A), provided the owner files
with the District proof, satisfactory to the
District, that said parcel of land or portion thereof
is within such a designated permanent open space
area;
(2) where a parcel of land or portion thereof is in an
agricultural reserve under a Land Conservation
Contract with the County of San Diego, pursuant to
the Land Conservation Act of 1965 as amended, the
charge for such parcel shall be $3.00 per acre,
provided the owner files with the District proof,
satisfactory to the District, that said parcel of
land or portion thereof is within such an
agricultural preserve;
(3) where a parcel of land or a portion thereof is within
an area designated as a floodplain by the County of
San Diego, the charge for such a parcel or portion
thereof shall be $3.00 per acre, provided the owner
files with the District proof, satisfactory to the
District, that said parcel of land or portion thereof
is within such designated floodplain; and
4
(4) where a parcel of land or portion thereof exceeds a
30% slope, and where such is not within a legal
subdivision, lot-split or planned residential
development, the charge for the slope portion shall
be $3.00 per acre, or if such a parcel is less than
one acre and more than one-half of the area exceeds
30% slope, $3.00 for the parcel, provided the owner
files with the District proof, satisfactory to the
District, that said parcel of land or portion thereof
meets or exceeds the slope.
(C) Exceptions The charges provided for in (A) and (B) above
shall not apply, upon petition by the property owner, to the
following:
(1) land located within an area designated as a floodway
by the County of San Diego;
(2) land designated as a vernal pool area by a govern-
mental agency authorized to make such a designation
and which designation prohibits use of such area for
any purpose;
(3) land owned by non-profit, tax-exempt conservation
organizations specializing in identifying and
protecting the natural habitat of rare species; or
(4) land that is located within the boundaries of the
Otay Water District but not within the boundaries of
the Metropolitan Water District of Southern
California and the San Diego County Water Authority.
2. SCHEDULE OF SEWER CHARGES
5
(A) Sewer standby assessment or availability charges are
hereby fixed and established for Fiscal Year 2015-2016 as follows:
(1) In Improvement District No. 18 the charges shall be
$30.00 per acre of land and $10.00 per parcel of land
less than one acre. The preceding charges shall not
apply, upon petition by the property owner, to the
following:
(a) any portion of a parcel which is undeveloped
and maintained in its natural state within an
Open Space Area as a requirement under the San
Diego County General Plan, provided the owner
of such parcel files proof, satisfactory to the
District, of such designed Open Space Area;
(b) any portion of a parcel located within an area
designated by the County of San Diego as a
floodway or floodplain; or
(c) any portion of a parcel of land which exceeds a
slope of 30% and which is not within a legal
subdivision, lot split or planned lot split or
planned residential development.
3. DEFERRALS
(A) Deferral of Charge, Purpose Situations may arise when an
owner of a parcel of land does not use and has no present intention
of using water and/or sewer provided by the District on a parcel of
land, as defined in Section 4. The purpose of this section is to
permit an evaluation by the District, on a case-by-case basis, of
the circumstances which pertain to such situations to determine
6
whether a deferral of charges should be approved according to the
terms and conditions herein provided.
Any owner of a parcel of land who believes that the amount of
the water and/or sewer availability charges fixed against such
parcel should be deferred may file an application with the District
for deferral of the charge, as follows:
(a) Application The application shall include a
statement describing the circumstances and factual
elements which support the request for deferral.
(b) The General Manager shall consider the request
within sixty (60) days after the filing of a
completed application. If the application for
deferral meets the established criteria, the General
Manager may decide whether to approve the request
and order the charge deferred accordingly. If the
request is denied, the applicant shall be notified
in writing stating the reasons for the denial.
(B) Appeal to Board of Directors If the General Manager
denies a request, the owner may file an appeal with the Board of
Directors within sixty (60) days after such denial. No new
application for deferral need be considered by the General Manager
until expiration of twelve (12) months from the date of a denial,
unless differently directed by the Board of Directors.
(C) Deferred Charges on Restricted Parcels, Criteria The
levy of the charge may be deferred annually as to any parcel of
land which meets each of the following criteria:
7
(a) The owner of such parcel makes a timely application
requesting deferral of the charge.
(b) The parcel, which is the subject of the request,
will become subject to enforceable restrictions
which prohibits the connection to the District sewer
system or use of water on the parcel, except by
means of natural precipitation or runoff; provided,
however, if considered appropriate by the General
Manager, local water may be used for limited
domestic stock watering and irrigation uses.
(c) The owner executed a recordable agreement which
includes provisions that:
(1) set forth the enforceable restrictions
pertinent to the subject parcel;
(2) the agreement may be terminated upon written
request by the owner and payment of all
deferred water and/or sewer availability
charges, plus interest thereon, compounded
annually, and accruing at the legal rate from
the date such charges would have been otherwise
due and payable;
(3) no water and/or sewer service from the District
shall be provided to such parcel for a period
of ten (10) years after the total amount due
for the charges deferred, plus annually
compounded interest, is paid in full to the
District, unless a surcharge penalty as
8
described below is paid to the District prior
to connection of any water and/or sewer
service;
(4) if the surcharge is not paid, during the ten
(10) year period, while water and/or sewer
service is not available to the subject land,
the owner shall pay all annual water or
availability charges as fixed; and
(5) contains such other provisions considered by
the General Manager to be appropriate.
(D) Surcharge Upon termination of the deferral
agreement, an owner may elect to receive water and/or sewer
service prior to the expiration of the ten (10) year penalty
period upon payment of a surcharge. The surcharge shall be
equal to the amount of the annual water and/or sewer
availability charges fixed for the parcel(s) of land in the
year of election to receive water and/or sewer service
multiplied by the number of years remaining of the ten (10)
year penalty period. This surcharge shall also apply if a
property owner develops a parcel that is subject to a deferral
agreement without termination of said agreement.
(E) Enforcement Procedures In order to insure that
terms and conditions of the recordable agreement are being
met, the General Manager shall:
(1) Maintain a record of all parcels approved for
deferral of the water assessments or availability
charges.
9
(2) Report to the Board of Directors any instances where
the terms of the agreement are being violated.
(3) Take such other actions or procedures considered
appropriate.
4. DEFINITION OF PARCEL The term "parcel" as used herein shall
mean a parcel of land as shown on the assessment rolls of the
County Assessor of San Diego County as of March, 2015.
5. NOTICE AND REQUEST TO THE BOARD OF SUPERVISORS AND AUDITOR As
provided in Sections 71634 to 71637, on or before the third Monday
in August, 2015, the Secretary of this District shall furnish, in
writing to the Board of Supervisors of San Diego County and to the
County Auditor, a description of the land within the District upon
which availability charges are to be levied and collected for
Fiscal Year 2015-2016 together with the amount of the assessments
or charges. At the time and in the manner required by law for the
levying of taxes for county purposes, the Board of Supervisors of
San Diego County shall levy, in addition to taxes it levies, water
and/or sewer availability charges in the amounts fixed by this
Resolution for the respective parcels of land described in Section
1 of this Resolution. All County officers charged with the duty of
collecting taxes shall collect the charges with the regular
property tax payments in the same form and manner as County taxes
are collected. Such availability charges are a lien on the property
with respect to which they are fixed. Collection of the charges
may be enforced by the same means as provided for the enforcement
of liens for state and county taxes.
10
6. CERTIFICATION TO COUNTY BOARD OF SUPERVISORS The District
certifies that this Resolution complies with the provisions of
Article XIIID of the California Constitution in that the
availability charges are existing charges first set by the Board of
Directors of the District prior to November 6, 1996. At the time
the availability charges were initially established, the District
followed the applicable provisions of law then in effect, and the
District has continued to comply with such provisions, including
any requirements for notices or hearings, as from time to time in
effect. Therefore, pursuant to Section 71632 and Section 71638 of
the California Water Code, as currently in effect, the District may
continue the availability charges in successive years at the same
rate. The District further certifies that the charge is not
increased hereby and the methodology for the rate is the same as in
previous years. The charge is imposed exclusively to finance the
capital costs, maintenance and operating expenses of the water or
sewer system of the District, as applicable.
7. CERTIFIED COPIES The Secretary of this District shall deliver
certified copies of this Resolution to the Board of Supervisors and
to the Auditor of San Diego County with the list of charges
described in Section 4 above.
8. CORRECTIONS; OTHER ACTIONS The General Manager of the
District is hereby authorized to correct any clerical error made in
any assessment or charge pursuant to this Resolution and to make an
appropriate adjustment in any assessment or charge made in error.
Furthermore, the General Manager and the Secretary of this District
are hereby directed to take any further actions and deliver such
11
documents and certificates as necessary to carry out the purpose of
this Resolution.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the
Otay Water District at a regular meeting duly held this 24th day of
June, 2015.
Ayes:
Noes:
Abstain:
Absent:
___________________________
President
ATTEST:
______________________________
Secretary
12
I HEREBY CERTIFY that the foregoing Resolution No. 4293 was duly
adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at a
regular meeting thereof held on the 24th day of June, 2015 by the
following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 24, 2015
SUBMITTED BY:
Armando Buelna
Communications Officer
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Mark Watton, General Manager
SUBJECT: Authorize Agreement with Brownstein Hyatt Farber Schreck
(BHFS) for State and Federal Legislative Advocacy
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors authorize
the General Manager to execute a two-year agreement with Brownstein
Hyatt Farber Schreck (BHFS) in an amount not-to-exceed $50,000
annually ($100,000 total ending June 30, 2017) for state and federal
legislative advocacy.
COMMITTEE ACTION:
See "Attachment A".
PURPOSE:
To obtain Board authorization for the General Manager to enter into a
consulting services agreement with Brownstein Hyatt Farber Schreck
for an amount not-to-exceed $50,000 annually commencing July 1, 2015
for two years ($100,000 total ending June 30, 2017) for professional
and consulting services for District related state and federal
legislative advocacy.
ANALYSIS:
Procedures governing the selection of general consultants in the
performance of District work are outlined in the District's
Purchasing Procedures Manual.
2
The District has a time and service consulting agreement with BHFS
for legislative advocacy services. This action will replace the
consultant's Legislative Issues and Service Agreement that expires on
June 30, 2015 and authorizes the General Manager to execute a two-
year agreement with BHFS in an amount not-to exceed $50,000 annually
($100,000 total) through June 30, 2017 for state and federal
legislative issues advocacy. This action would provide for a
continuation of services with BHFS acting as the government relations
advocate and counsel in Sacramento and Washington DC.
Based on past work, experience, knowledge, contacts and access to key
legislators both in Sacramento and Washington DC, the District feels
BHFS is uniquely qualified to best meet the District's needs for
state and federal legislative advocacy.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Legislative advocacy is included in the General Manager's Outside
Services budget. The total Fiscal Year 2015 budget for Legislative
Advocacy is $35,000. Due to the increased use of legislative
advocacy, total expenditures to date are $37,672. Recognizing the
increased need for legislative advocacy in coming fiscal year, staff
increased the budget request to $45,000 in FY 2016. Based on a review
of the General Manager's budget, the Communications Officer has
determined that the FY 2016 budget is sufficient to support the
revised legislative advocacy services agreement through the end of
the 2016 fiscal year at the $50,000 level. A funding request at this
level will be included in the FY 2017 proposed budget. Funds will be
expended in FY 2016 and FY 2017.
STRATEGIC GOAL:
This action supports the District's goal for providing the best
quality water service to the customers of the Otay Water District.
LEGAL IMPACT:
None.
Attachments: Attachment A – Committee Action
Attachment B – Contract
ATTACHMENT A
SUBJECT/PROJECT:
Authorize Agreement with Brownstein Hyatt Farber Schreck
(BHYF) for State and Federal Legislative Issues Advocacy
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee reviewed
this item at a meeting held on June 18, 2014 and the following
comments were made:
Staff is requesting that the Board authorize a two-year consulting
services agreement (beginning July 1, 2015 and ending June 20, 2017)
with Brownstein Hyatt Farber Schreck (BHFS) for state, federal and
District-related legislative advocacy services for an amount not-to-
exceed $50,000 or $100,000 over the term of the agreement.
The District has an existing time and service agreement with BHFS.
This action will replace the consultant's existing agreement that
expires on June 30, 2015. By extending the agreement, it provides
for a continuation of services with BHFS acting as the government
relations advocate.
Ms. Chris Frahm would continue to be our primary representation
counsel, supported by Ms. Rosanna Carvacho, Mr. Don Perata and, in
Washington DC, Mr. David Bernhardt for services related to the
Desalination Project.
Based on past work, experience, knowledge, contacts and access to
key legislators both in Sacramento and Washington DC, the District
feels BHFS is uniquely qualified to best meet the District's needs
for legislative advocacy.
The committee inquired how many agencies engage a legislative
advocate firm. Staff indicated that it was not certain, but they
are aware that the City of San Diego, Olivenhain MWD and CWA utilize
legislative advocacy firms.
The committee inquired why the District requires a legislative
advocacy firm. Staff indicated that the District will require BHFS
services on the Desalination project. BHFS also provides the
District notice on upcoming legislation that could impact Otay WD as
they keep abreast of legislation that is being proposed/changed.
This allows the District the opportunity to provide comments and,
hopefully, help shape proposed legislation.
BHFS’contract amount was increased as the District felt that there
will likely be more advocacy and action around the conservation
mandate and possibly lawsuits that are filed by other parties in
response to the mandate.
In response to an inquiry from the committee, staff indicated that
BHFS does work for CWA, however, they are handling CWA’s lawsuit
with MET. CWA does have a handful of legislative advocacy firms
that they engage and 90% of what the District does is complimentary
to CWA. Though it is unusual, sometimes the District and CWA may
have a different view on a matter and it is nice to have a separate
“voice” for the District. It is also helpful for the District to
have a voice in Sacramento. If CWA did not have advocacy services,
Otay WD would likely need to increase it’s use of BHFS.
The committee inquired on the cost of BHFS’ services. Staff
indicated that the cost is a little over $500 an hour. The monthly
expenditures are very low as the District manages the expenditures.
Staff indicated that if the time and cost is reviewed, it is pretty
reasonable given the caliber of the firm.
It was noted that BHFS’ rate did not go up. The committee requested
that they be informed if BHFS’ rate and/or cost goes up
significantly.
Upon completion of the discussion, the committee supported staffs’
recommendation and presentation to the board as a consent item.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 24, 2015
SUBMITTED BY:
Mark Watton,
General Manager
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Mark Watton, General Manager
SUBJECT: California Special Districts Association (CSDA) Region 6 Board
Election
GENERAL MANAGER’S RECOMMENDATION:
That the Board consider casting a vote to elect a representative to
the California Special Districts Association (CSDA) Board of
Directors, Region 6, Seat A.
PURPOSE:
To present for the board’s consideration the ballot to elect a
representative to Region 6, Seat A, on CSDA’s Board of Directors.
COMMITTEE ACTION:
N/A
ANALYSIS:
CSDA is holding an election to fill Seat A of Region 6 on its Board
of Directors. Ms. Jo MacKenzie, Vista Irrigation District, is the
current incumbent of Seat A and is seeking re-election. The
individual elected will serve a three (3) year term. There are a
total of six [6] regions with each region having three seats on the
Board.
Attached is a copy of the mail-in ballot and the candidates’
Statement of Qualifications. The ballot must be mailed and received
by CSDA by 5:00 p.m. on Friday, August 7, 2015.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Participating would support the strategic goal of maintaining
effective communications with other cities, special districts, State
and Federal governments, community organizations and Mexico.
LEGAL IMPACT:
None.
Attachment A: Committee Action
Attachment B: Ballot
Attachment C: Candidates’ Statements (2)
ATTACHMENT A
SUBJECT/PROJECT:
California Special Districts Association (CSDA) Region 6
Board Election
COMMITTEE ACTION:
The Finance, Administration and Communications Committee
reviewed this item at a meeting held on June 16, 2015 and
recommended that the board cast its vote in the CSDA board
election for Ms. Jo MacKenzie, Vista Irrigation District and
presentation to the full board as a consent item.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: July 1, 2015
PROJECT: Various DIV. NO. ALL
SUBMITTED BY: Adolfo Segura
Assistant Chief, Admin & IT Services
APPROVED BY:
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: ADOPT RESOLUTION NO. 4291 TO ELECT UP TO THREE (3) CANDIDATES
FOR SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY’S (SDRMA) BOARD
OF DIRECTORS
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Board consider the candidates for Special District Risk
Management Authority’s (SDRMA) Board of Directors election and cast the
District’s vote by adopting Resolution No. 4291.
COMMITTEE ACTION:
See “Attachment A”.
PURPOSE:
To present for the Otay Board’s consideration, the ballot to elect up
to three (3) candidates for the Special District Risk Management
Authority’s (SDRMA) Board of Directors.
ANALYSIS:
SDRMA is holding an election to fill up to three (3) seats on its Board
of Directors. Presented to the Otay Board in this staff report is each
candidate’s qualifications, background, experience and expertise for
their review (Attachment B).
2
In an effort to provide a good balance of representation (based on
agencies represented) on SDRMA’s Board, staff recommends that the Board
consider the following candidates:
Robert Swan
Director/President, Groveland Community Services District
Ed Gray (Incumbent)
Director/President, Chino Valley Independent Fire District
R. Michael Wright
Director/President, Los Osos Community Services District
Sandy Seifert-Raffelson (Incumbent)
District Clerk, Herlong Public Utility District
Attached are statements of qualifications (Attachment B) as submitted
by each candidate, along with the official election resolution
(Attachment C) and ballot (Attachment D), which SDRMA requires to ensure
the integrity of the balloting process. The ballot requests that the
District select up to three (3) candidates when placing its vote.
The ballot must be sealed and received by 5:00 pm on Tuesday, August
25, 2015.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
Maintaining effective communications with other cities, special
districts, State and Federal governments, community organizations, and
Mexico.
LEGAL IMPACT:
None.
Attachments: Attachment A – Committee Action Report
Attachment B – Candidates’ Statement of Qualifications
Attachment C – Resolution No. 4291
Attachment D – Election Ballot
ATTACHMENT A
SUBJECT/PROJECT:
ADOPT RESOLUTION NO. 4291 TO ELECT UP TO THREE (3) CANDIDATES
FOR SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY’S (SDRMA)
BOARD OF DIRECTORS
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee
reviewed this item at a meeting held on June 16, 2015 and the
following comments were made:
Staff is requesting that the Board consider the candidates for
SDRMA’s Board of Directors and cast the District’s vote by
adopting Resolution No. 4291.
SDRMA has a seven (7) member board and is holding an election
to fill three (3) seats on its Board of Directors.
SDRMA provides the District comprehensive insurance that
includes workers’ compensation insurance.
Attached to staffs’ report is the candidate’s qualifications,
background, experience and expertise.
Incumbent, Terry Burkhart, Director, Bighorn-Desert View Water
Agency, is not running for re-election to his/her seat. The
two incumbents running for re-election are Mr. Ed Gray,
Director/President, Chino Valley Independent Fire District,
and Ms. Sandy Seifer-Raffelson, District Clerk, Herlong Public
Utility District. Staff noted that Mr. Michael Wright, Los
Osos Community Services District, has a background in
insurance.
The committee inquired how the District’s interactions with
SDRMA have been, especially when there are issues to be
resolved, and if staff felt that SDRMA is well run. Staff
indicated that the District has been satisfied with their
rates, rebates, how they administer the policies with regard
to claims, etc. SDRMA has been very responsive and staff has
been happy with the services provided by SDRMA.
The committee inquired about SDRMA’s financial stability.
Staff indicated that SDRMA keeps a good reserve level and have
a well run program. Following the meeting staff acquired a
copy of SDRMA’s financial statements (attached):
- SDRMA’s financial position has declined by $2.2 million
from $55.6 million to $53.4 million. The decline is due
to SDRMA’s decision to utilize reserves and not to raise
rates. SDRMA has done this for the last 6-7 years.
- Regarding SDRMA’s reinsurance to manage risk. The Annual
Report includes the reinsurance information for each type
of coverage along with the reinsurance providers, A.M.
Best Ratings.
- The lowest A.M. Best Rating of the reinsurance providers
is an “A”. An “A” rating means, in A.M. Best’s opinion,
they have an excellent ability to meet their ongoing
financial obligations.
- SDRMA does not have an A.M. Best rating because they are
not an insurance company. SDRMA is a joint-power
authority government risk pool. They do have established
reserve requirements that serve a purpose similar to the
District’s reserve policy. In addition, SDRMA has
established a policy of maintaining an actuarial
confidence level on an undiscounted basis of 90% for
property/liability and 85% for workers’ compensation.
Currently, both the property/liability and workers’
compensation confidence levels exceed 95%. The industry
average is 75% to 85%.
SDRMA’s services is an integral part of the District’s
business. Staff has done some comparison shopping and feels
that it would be very difficult to find a company that could
provide the coverage SDRMA provides for the same rate because
of the District’s claim activity. The District is a good size
organization, but it is much smaller than most organizations.
Also, if the District were to move to another medical
provider, it would get very complicated because of the post-
retirement coverage. The District does shop around to assure
it is getting the best value and the last time the District
bid out the services, the District found that SDRMA’s rates
are competitive. SDRMA also provides the District access to
CSAC Excess Insurance Authority, and thus, they are a very
large pool and are very cost effective. Staff has been very
happy with the services SDRMA provides and they have been good
at maintaining their costs.
Upon completion of the discussion, the committee supported
electing, Mr. Ed Gray, Mr. Michael Wright, and Ms. Sandy
Seifert-Raffelson and presentation to the board as a consent
item.
Special District Risk Management Authority
2013-14 Annual Financial Audit
Financial Statements with Independent Auditor’s Report
www.sdrma.org
800.537.7790
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
FINANCIAL STATEMENTS
WITH
INDEPENDENT AUDITOR’S REPORT
FOR THE FISCAL YEARS ENDED
JUNE 30, 2014 AND 2013
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
BOARD OF DIRECTORS
PRESIDENT
David Aranda
North of the River Municipal Water District
VICE-PRESIDENT
Muril Clift
Cambria Community Services District
SECRETARY
Jean Bracy
Mojave Desert Air Quality Management District
DIRECTORS
Terry Burkhart
Bighorn-Desert View Water Agency
Ed Gray
Chino Valley Independent Fire District
Sandy Seifert-Raffelson
Herlong Public Utility District
Mike Scheafer
Costa Mesa Sanitary District
*******************
Gregory S. Hall, ARM
Chief Executive Officer
C. Paul Frydendal, CPA
Chief Financial Officer
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
TABLE OF CONTENTS
PAGE
Independent Auditor's Report 1
Management’s Discussion and Analysis 4
Basic Financial Statements
Statements of Net Position 17
Statements of Revenues, Expenses, and Changes in Net Position 18
Statements of Cash Flows 19
Notes to the Financial Statements 20
Required Supplementary Information
Reconciliation of Claims Liabilities by Type of Contract 41
Claims Development Information 42
Property/Liability Program
Workers’ Compensation Program
Schedule of Funding Progress for Other Postemployment Benefits 44
Notes to the Required Supplementary Information 45
Supplementary Information
Combining Statement of Net Position 46
Combing Statement of Revenues, Expenses and Changes in Net Position 47
Graphical Presentation of Claims 48
James Marta & Company LLP
Certified Public Accountants
Accounting, Auditing, Consulting, and Tax
701 Howe Avenue, Suite E3 Sacramento, California 95825 Phone: (916) 993-9494 Fax: (916) 993-9489
e-mail: jmarta@jpmcpa.com www.jpmcpa.com
1
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Special District Risk Management Authority
Sacramento, California
Report on the Financial Statements
We have audited the accompanying Statements of Net Position of Special District Risk Management
Authority (Authority) as of June 30, 2014 and 2013, and the related Statements of Revenues, Expenses
and Changes in Net Position, Statements of Cash Flows for the years then ended and the related notes
to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, and the State Controller’s Minimum Audit
Requirements for California Special Districts. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Special District Risk Management Authority as of June 30, 2014 and 2013 and
the results of its operations and its cash flows for the years then ended in conformity with accounting
principles generally accepted in the United States of America, as well as accounting systems prescribed
by the State Controller’s Office and state regulations governing special districts.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s
Discussion and Analysis, Reconciliation of Claims Liabilities by Type of Contract, Claims Development
Information and Schedule of Funding Progress For Other Postemployment Benefits on pages 4 through
16, 41,42 through 43 and 44,respectively,be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board (GASB) who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries,the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the basic financial statements of the
Authority.The Combining Statement of Net Position, Combining Statement of Revenues, Expenses and
Changes in Net Position and the Graphical Presentation of Claims are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
records used to prepare the financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the Combining Statement of Net Position, Combining Statement of Revenues,
Expenses and Changes in Net Position and Graphical Presentation of Claims are fairly stated in all
material respects in relation to the financial statements taken as a whole.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 29,
2014 on our consideration of Special District Risk Management Authority’s internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant
agreements, and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the entities internal control over financial reporting and compliance.
James Marta & Company LLP
Certified Public Accountants
Sacramento, California
October 29, 2014
MANAGEMENT’S DISCUSSION AND ANALYSIS
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
4
Background
The Special District Risk Management Authority (SDRMA)is a Joint Powers Authority (JPA) formed in
1986,under Section 6500 et seq.of the California Government Code for the purpose of providing
coverage protection programs and risk management services including risk financing,risk control and
loss prevention services for California’s local government agencies.On July 1,2003,the Special Districts
Workers Compensation Authority (SDWCA),originally formed in 1982,merged with SDRMA. In August
2006,SDRMA partnered with California State Association of Counties (CSAC-EIA Health), to begin offering
a small group Medical Benefits Program to public agencies with 250 employees or less.In May 2007,
SDRMA again partnered with CSAC-EIA Health to begin offering an Ancillary Coverage Program which
includes dental,vision,life,long-term disability (LTD)and an employee assistance program (EAP).
At fiscal year-end, SDRMA had 476 members in the Property/Liability Program,402 members in the
Workers’Compensation Program and 103 groups participating in the Health Benefits Program.The
public agencies participating in these programs are generally special districts and joint powers
authorities,but also include several cities, counties and Superior Courts of California.
SDRMA is governed by a seven-member Board of Directors.Directors are elected at-large from the
membership to serve four-year terms. The Board of Directors has assigned the organization’s
administrative responsibilities to the Chief Executive Officer (CEO).The CEO is responsible for:
ensuring that SDRMA is meeting its mission statement, strategic business plan goals and commitments
to its members;implementing policies established by the Board of Directors as set forth in organizational
documentsand bylaws; and improving overall operational efficiency and organizational integrity.
Financial Highlights
Net Rental Income decreased by $37,591 or 30.7% from 2012-13 because two suites were vacant
for a combined total of twelve months during the 2013-14 fiscal year.
Investment Income in 2013-14 increased by $1,129,855 or 319% from 2012-13 as a result of
improved interest earnings and an overall net market valuation gain during the 2013-14 fiscal year.
The Property/Liability Program increased $436,529 and the Workers’ Compensation Program
increased $693,326 over 2012-13 earnings.Capital Assets -Gain increased by $103,091 as a result
of insurance proceeds received for partially depreciated property damaged during a flood loss.
Change in Net Position improved in 2013-14 by $873,983 or 28% from 2012-13.The improved
reduction in 2013-14 is primarily the result of investment earnings. These and other line items
are discussed in further detail below.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
5
Membership Programs
SDRMA offers two programs of membership; the Property/Liability Program and the Workers’
Compensation Program.The membership is comprised of public agencies throughout California.SDRMA
serves its members by providing coverage protection related services such as workers’compensation,
property and liability,errors and omissions,and auto comprehensive and collision.Each of SDRMA’s
programs and services are designed to reduce the risks of its members.
Membership Growth
Every 3 years the Board of Directors adopts a new 3-year strategic business plan. One of the primary
goals of the plan is to develop programs and services to help our members with their safety and loss
prevention efforts at their public agencies. Another goal sets member retention levels.
Goals are reviewed annually with the Board to ensure progress and/or determine whether modification
of particular goals may be required.As part of this review,the Board strives to ensure that staff
is properly underwriting exposures and not adversely affecting the pool’s profile.SDRMA believes
that it is meeting the goals and is providing the following information as supporting documentation:
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
6
Services and Programs
SDRMA is generally able to reduce members’risk financing/risk management costs by utilizing the
combined purchasing power and financial size of the pool. Member agencies determine the level of
coverage they need for their general liability,auto liability and public official’s errors and omissions
coverages.
Property/Liability Program
The Property/Liability Program began in 1986 as a self-insured Program and used various third party
administrators (TPAs)to administer the claims until 1998,when claims management moved “in-
house” to be performed by SDRMA staff.
SDRMA purchased excess property insurance through the Alliant Insurance Services,Inc. sponsored
Public Entity Property Insurance Program (PEPIP)with a $200,000 Self-Insured Retention (SIR)for the
year ended June 30,2014.Excess general liability,auto liability and public officials’errors and
omissions coverage was purchased through Genesis Re and Munich Re to provide a layered
program with a $250,000 SIR, an aggregate stop loss limit and coverage limits from $2.5 million to $10
million.Additional excess coverages are available on a per-member basis if requested. In addition to the
major coverage programs,SDRMA makes available coverages for rental interruption,lease purchase,
cyber,course of construction,employee dishonesty coverage, and auto comprehensive/collision
coverage.SDRMA also works with the members and the excess insurance markets to obtain special
coverages for airport liability,earthquake coverage, pollution coverage,and a variety of other special
policies. In 2009-10, the SDRMA Board of Directors approved a 15% rate reduction to help members
financially during the difficult economic times. Rates have remained flat the last four years.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
7
Workers’CompensationProgram
On July 1,2003,the Special Districts Workers Compensation Authority (SDWCA),originally formed in
1982,merged with SDRMA.The merger allowed many members in each program to obtain new
coverage without leaving SDRMA and enticed other members to join who in the past were looking
for an entity to provide all of their coverages. Thus, in the 2003-04 year and a few years after that,
the growth of new membership was significant as shown in the graph below.
For the 2013-14 program year, the Authority purchased excess Workers’ Compensation coverage
through the California State Association of Counties –Excess Insurance Authority (CSAC-EIA) with
a $250,000 Self-Insured Retention (SIR). SDRMA contracts with York Risk Services Group (TPA) to provide
outside claims management services. Also, SDRMA contracted with Company Nurse to formalize the
claim reporting process for all members to reduce First Aid and Medical Only claims.
In 2009-10, the SDRMA Board of Directors approved a 15% rate reduction to help members financially
during the difficult economic times and since then have adjusted rates based on the Workers’
Compensation Insurance Rating Bureau (WCIRB) rate recommendations by class code.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
8
Health Benefits Program
In August 2006,SDRMA partnered with California State Association of Counties (CSAC-EIA Health),to
offer a small group Medical Benefits Program to public agencies with 250 employees or less. In May
2007,SDRMA also began offering an Ancillary Coverages Program including dental,vision,life,long term
disability (LTD)and an employee assistance program (EAP)to public agencies with 50 employees or less.
SDRMA functions as the small group program administrator by marketing the program,signing up new
groups,answering day to day questions,performing monthly billing, collecting monthly premiums and
remitting payments to CSAC-EIA Health.To join either program,entities are required to meet certain
eligibility requirements including executing a Memorandum of Understanding and Resolution.
CSAC-EIA Health sets the rates for both programs based on;the charges by the various carriers,a
review of SDRMA participant’s medical and pharmacy claims experience, the program’s overall
experience and projected increases in medical and pharmacy costs.
As of June 30,2014,there were 87 groups (1,709 employees)participating in the Medical Benefits
Program and 57 groups (549 employees)participating in the Ancillary Coverages Program.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
9
Expanded Services and Programs
SDRMA provides ongoing safety and loss prevention services to its members throughout California and
continues to explore new areas that might provide benefits from the pooling of resources and/or group
purchase arrangements. Such services include:property appraisals, claim services,safety services,online
safety/risk management training,ergonomic reviews, playground inspections, and ADA compliance
services.
Financial Management and Control
SDRMA management is responsible for establishing and maintaining an internal control structure
designed to ensure that assets are protected from loss,theft,or misuse and to ensure that adequate
accounting data is compiled to allow for preparation of financial statements in conformity with
generally acceptedaccounting principles.
SDRMA has adopted a conservative investment policy according to state guidelines designed to ensure
the safety of the funds,optimize the rate of return on available assets not required for current
operations and make these assets readily available to pay claims or meet other needs of the Authority.
At June 30,2014,approximately four percent of these funds were invested in the Local Agency
Investment Fund (LAIF)in Sacramento administered by the State Treasurer’s Office. SDRMA has
contracted with Public Financial Management, LLC as the investment advisor for both the
Property/Liability Program and the Workers’CompensationProgram.
Budgetary control is provided by verification of budgeted amounts prior to expenditure and
quarterly analysis of all account totals compared to budgeted amounts.Detailed reports of the budget-
to-actualcomparisons are provided to the JPA Board at least quarterly.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
10
The Board has also adopted a conservative funding and reserving policy to ensure that both the
Property/Liability or “Package Program”and the Workers’Compensation Program are adequately
funded.This policy established confidence level benchmarks of 90%undiscounted for the
Property/Liability Program and 85%undiscounted for the Workers’Compensation Program and requires
that both programs have at least annual reviews by an independent actuary to confirm the confidence
levels of these programs.
Description of the Basic Financial Statements
The Authority’s financial statements are prepared in conformity with generally accepted accounting
principles and include amounts based upon reliable estimates and judgments.The Statement of Net
Position,Statement of Revenues, Expenses and Changes in Net Position,and the Statement of Cash
Flows are included along with Notes to Financial Statements to clarify unique accounting policies and
financial information.
The Statement of Net Position provides information on all the Authority assets and liabilities,with the
difference reported as Net Position.Net Position may be an indicator of the overall pool financial status.
The Statement of Revenues,Expenses, and Changes in Net Position presents information showing total
revenue and expense and the resulting effect on Net Position.The Statement of Cash Flows presents
information about the cash receipts and cash payments during the year.
James Marta &Company LLP,Certified Public Accountants performed an independent audit of our
financial statements in accordance with generally accepted auditing standards.Their opinion is included
in the Financial Section of this report.
Bickmore Risk Services provides an annual independent actuarial review of both the Property/Liability
Program and the Workers’Compensation Program.Both reviews confirm the adequacy and
reasonableness of the liabilities recorded as outstanding claim reserves for these programs.Bickmore’s
most recent report for their review of the Property/Liability Program is dated December 6,2013 and
their most recent review of the Workers’Compensation Program is dated December 11,2013.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
11
CONDENSEDFINANCIAL INFORMATION
Statement of Net Position Increase/Increase/
Decrease Decrease
June 30, 2014 June 30, 2013 2013 to 2014 June 30, 2012 2012 to 2013
Assets
Current and Other Assets 98,763,849$ 99,327,447$ -0.6%97,380,967$ 2.0%
Capital Assets 4,684,135 4,608,904 1.6%5,294,996 -13.0%
Total Assets 103,447,984 103,936,351 -0.5%102,675,963 1.2%
Liabilities
Accounts Payable & Other Liabilities 50,078,187 48,290,854 3.7%43,880,783 10.1%
Total Liabilities 50,078,187 48,290,854 3.7%43,880,783 10.1%
Net Position
Net Position 53,369,797 55,645,497 -4.1%58,795,180 -5.4%
Total Net Position 53,369,797$ 55,645,497$ -4.1%58,795,180$ -5.4%
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Increase/Increase/
Decrease Decrease
June 30, 2014 June 30, 2013 2014 to 2013 June 30, 2012 2012 to 2013
Operating Revenues
Member Contributions & Other Income 27,619,059$ 25,300,706$ 9.2%24,092,233$ 5.0%
Health Benefits Premiums & Refunds 22,819,070 22,645,770 0.8%20,430,284 10.8%
Total Operating Revenues 50,438,129 47,946,476 5.2%44,522,517 7.7%
Operating Expenses
Claims, Insurance, Admin Expense 32,046,062 29,498,811 8.6%18,794,012 57.0%
Health Insurance Expenses 22,340,180 22,074,406 1.2%19,940,834 10.7%
Total Operating Expenses 54,386,242 51,573,217 5.5%38,734,846 33.1%
Operating Income (Loss)(3,948,113) (3,626,741) 8.9%5,787,671 -162.7%
Other Nonoperating Income
and Expenses
Net Rental Income (Loss)84,911 122,502 -30.7%133,238 -8.1%
Investment Income & Capital Assets - Gain 1,587,502 354,556 347.7%1,991,689 -82.2%
Total Nonoperating Income (Expense)1,672,413 477,058 250.6%2,124,927 -77.5%
Change in Net Position (2,275,700) (3,149,683) -27.7%7,912,598 -139.8%
Beginning Net Position 55,645,497 58,795,180 -5.4%50,882,582 15.6%
Ending Net Position 53,369,797$ 55,645,497$ -4.1%58,795,180$ -5.4%
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
12
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
13
Analysis of Overall Financial Position & Results of Operations
SDRMA’s strong financial position slightly decreased in 2013-14. Although operating revenues
increased by $2,491,653 or 5.2% from 2012-13,operating expenses increased by $2,813,025 or 5.5%
(a majority of which is related to claims) resulting in a net operating loss of $2,275,700 which is a
27.8% reduction from the 2012-13 fiscal year.Most of the loss was due to the approval of the
SDRMA Board of Directors’ to utilize reserves for budgetary shortages to keep rates flat during both
2013-14 and 2012-13 fiscal years.
Total Assets decreased in 2013-14 by $488,367 or .5%from 2012-13 because expenses exceeded
revenues in both 2013-14 and 2012-13 fiscal years. The cash and investments related to claims
liabilities are held on deposit until claims payments are realized, which may be many years in the
future.
Total Liabilities increased in 2013-14 by $1,787,333 or 3.7% from 2012-13 primarily related to higher
actuarial projected losses. Therefore, Net Position decreased in 2013-14 by $2,275,700, as shown in
the Statement of Net Position and in the graph below.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
14
Property/Liability and Workers’Compensation Program contributions increased in 2013-14 by a
total of $2,321,447 or 9%as membership continued to grow.The increase in membership is the result
of the decision of SDRMA’s Board to hold the line on member rates.
Claims, Insurance and Administrative Expenses increased in 2013-14 by $2,863,762 or 10% from 2012-
13, which increased $10,704,819 or 57% from 2011-12. The increase in 2013-14 is primarily related to
two issues: 1) Claims expenses increased for the Property/Liability Program by $2,407,681 or 59.6%
due to adjustments to the actuarial projections of ultimate losses based on claims development at
year-end and 2) Excess Insurance expenses increased for the Workers’ Compensation Program by
$2,254,395 or 101.7%.
The Health Benefits program including the number of enrolled participants continued to grow.As a
result,both the Health Benefits premiums of $22,819,070 and Health Benefits expenses $22,669,942
reflect increases (.77% and 1.06%respectively)over the prior year. The premiums reported are “pass-
through”for group insurance premiums purchased for the participants in this program after amounts
for administrative fees are deducted.
Analysis of Balances & Transactions of Individual Funds
Property/Liability Program
Member contributions increased $842,677 or 6.8% from 2012-13 due to increased exposures and
membership growth. Claims expense increased by $2,407,681 or 59.6% primarily due to the
combined $1.8M increase to the actuarial claims projections for 2012-13 and 2013-14. Contract
Services and CSDA Fees increased by $95,113 or 22.6% as a result of the bi-annual claims audit, the
addition of the new budget item for the employer legal help line which is set up to assist members
with employment issues and mitigate potential claims. Net Rental Income from the SDRMA building
reduced to $43,175 or 28.6%from prior year, due to vacant suites during the 2013-14 year and
Investment Income increased by $436,456 or 351.9%.These factors contributed to the 2013-14
Change in Net Position of ($1,545,858).
The actuarial review required by Board policy continues to verify that this program is funded at a
confidence level in excess of 95%,which is above the Board’s policy of a 90%confidence level for this
program.
Workers’CompensationProgram
Member contributions increased $1,478,770 or 11.5% from 2012-13 due to increased payroll and
membership growth. Claims expense decreased by $2,741,993 or 23.6% due to lowering the SIR (to
$250K) and Insurance expense increased by $2,254,395 or 101.7% because the SIR was reduced from
$500K in 2012-13 to $250K in 2013-14 and member payroll growth. Contract Services and CSDA Fees
increased by $194,941 or 13.4% as a result of the addition of the new budget item for the employer
legal help line which is set up to assist members with employment issues and mitigate potential
claims and increased member safety visits. These factors contributed to the Change in Net Position of
($880,036).
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
15
The actuarial review required by Board policy confirmed that we were able to maintain the
confidence level above 95%on an undiscounted basis,which exceeds the Board’s policy of funding
this program to at least an 85%confidence level on an undiscounted basis.This increase in the
confidence level provides additional comfort the program will consistently have sufficient funds to
pay claims.
Health Benefits Program
As mentioned earlier in this report,SDRMA has partnered with California State Association of
Counties (CSAC-EIA Health),to offer a small group health benefits program to public agencies with
250 employees or less.SDRMA functions as the administrator of the small group program and
receives revenue from a small administrative fee added to the monthly health benefit premiums.
The Health Benefits program and the number of enrolled participants continued to grow, as
previously mentioned.
Description of Facts or Conditions that are Expected to have a Significant Effect on the
Financial Position or Results of Operations
California Economic Condition and Outlook
The state’s economy continues to recover.As a result, the Legislative Analyst’s Office (LAO)notes
California’s substantial progress in addressing prior and persistent budgetary problems. Thereby
allowing debt reduction to be the focus of the 2015-16 proposed budget which proposes a $2.3
billion reserve (surplus) at the end of 2014-15. Despite the positive outlook, caution is warranted as
future changes in assumptions could dramatically lower, or even eliminate projected surpluses.
As a result of this cautious outlook,the pressure on SDRMA’s local agency members “to do more
with less”will undoubtedly remain.Therefore, it’s not entirely clear how or if our member
operating budgets and payroll will be impacted.
Insurance Market Condition and Outlook
SDRMA's mission is to provide its members with stable,"renewable, efficiently priced risk financing
and risk management services ...”.The ability to meet that mission is,in part, dependent on
conditions in the commercial insurance market. The commercial insurance market has business
cycle(s)that result in fluctuating rates,availability of coverage and policy limits.These fluctuations
are referred to as "soft”or "hard”markets.In a soft-market cycle, pricing is lower,competition is
greater,and generally,the market has excess capacity that increases the availability of coverages and
higher policy limits.A soft-market cycle is a favorable condition for pools and insurance consumers.
The trend in a hard-market cycle is higher/increasing rates with fewer options in availability of
coverages and limits.A hard-market cycle is an unfavorable condition for pools and insurance
consumers.Historically,insurance market cycles occur every 3-7 years and we are currently in a fairly
soft market cycle for liability programs and a hardening market cycle for property and workers’
compensation coverage.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
16
For the 2015-16 program year, the property market is expected to soften slightly due to new
competition; falling reinsurance prices and the lack of catastrophic events/losses may allow rates to
decline 5-10% -barring any catastrophic events. In the liability market, we expect the new entrants
that are familiar with the public entity market will manage to keep the downward pressure on liability
pricing resulting in a semi-soft market, regardless of the legal environment or legal cost inflation.
For workers’ compensation coverage, class code rates continue to increase along with retentions. This
is primarily due to medical cost inflation but the number of carriers writing excess workers’
compensation for public entities has been diminishing the last 4 to 5 years as well. The recent
Workers’ Compensation reform in California is still being reviewed to determine the full impact on
future rates which are predicted to increase by as much as 10-20% for the 2015-16 program year.
SDRMA continues to maintain sufficient reserves to adjust the SIR to respond to changes in market
conditions and to explore various options to maintain our goal of rate stability and our mission to
provide our members with stable,renewable,and efficiently priced coverages.SDRMA anticipates
increased marketing interest and continued growth in pool membership.
Respectively Submitted,
Gregory S. Hall, ARM C. Paul Frydendal, CPA
Chief Executive Officer Chief Financial Officer
BASIC FINANCIAL STATEMENTS
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
STATEMENTS OF NET POSITION
JUNE 30, 2014 AND 2013
The accompanying notes are an integral part of these financial statements.17
2014 2013
Assets
Current Assets
Cash and cash equivalents 6,192,822$ 4,984,811$
Current investments 1,463,238 4,062,902
Receivables 1,580,708 1,471,569
Prepaid expenses 2,113,318 1,911,500
Total Current Assets 11,350,086 12,430,782
Noncurrent Assets
Investments, at market 87,228,462 86,631,364
Note receivable 185,301 265,301
Capital assets:
Land 762,850 762,850
Other capital assets, net 3,921,285 3,846,054
Total Noncurrent Assets 92,097,898 91,505,569
Total Assets 103,447,984 103,936,351
Current Liabilities
Accounts payable 247,458 237,200
Accrued payroll 83,119 80,054
Member payable 510,136 1,096,580
Unearned contributions 4,505,887 3,834,731
Current portion of claim-related liabilities 11,500,000 10,500,000
Total Current Liabilities 16,846,600 15,748,565
Noncurrent Liabilities
Noncurrent portion of claim-related liabilities 33,231,587 32,542,289
Total Liabilities 50,078,187 48,290,854
Invested in capital assets, net of related debt 4,684,135 4,608,904
Unrestricted 48,685,662 51,036,593
Total Net Position 53,369,797$ 55,645,497$
Net Position
Liabilities
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
The accompanying notes are an integral part of these financial statements.18
2014 2013
Operating Revenues
Members' contribution 27,618,022$ 25,296,575$
Health benefits premium 22,819,070 22,645,770
Other income 1,037 4,131
Total Operating Revenues 50,438,129 47,946,476
Operating Expenses
Claims expense 15,317,964 15,652,276
Insurance expense 11,446,847 8,839,506
Health insurance expense 22,340,180 22,074,406
Contract services and CSDA fees 2,215,909 1,932,942
Salaries and benefits 1,746,486 1,520,809
General and administrative 929,462 874,888
Depreciation expense 389,394 678,390
Total Operating Expenses 54,386,242 51,573,217
Operating Income (Loss)(3,948,113)(3,626,741)
Nonoperating Revenues and Expenses
Rental revenue 399,821 391,766
Rental expense (314,910) (269,264)
Net Rental Income (Loss)84,911 122,502
Investment income 1,484,432 354,577
Gain (Loss) on sale of capital assets 103,070 (21)
Total Nonoperating Revenues and Expenses 1,672,413 477,058
Change in Net Position (2,275,700)(3,149,683)
Beginning Net Position 55,645,497 58,795,180
Ending Net Position 53,369,797$ 55,645,497$
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
The accompanying notes are an integral part of these financial statements.19
2014 2013
Cash Flows From Operating Activities
Member contributions and dues received 50,814,443$ 48,854,711$
Cash paid for claims (14,064,664)(12,081,740)
Cash paid for insurance premiums (33,988,845)(30,814,808)
Cash paid for salaries (1,743,421)(1,525,043)
Cash paid for administrative expenses (3,135,113)(2,623,723)
Net Cash Provided (Used) By Operating Activities (2,117,600)1,809,397
Cash Flows From Capital and Related Financing Activities
Cash paid for capital expenditures (464,625)(102,519)
Proceeds from sale of capital assets 103,070 -
Net Cash Provided (Used) By Capital & Related Financing Activities (361,555)(102,519)
Cash Flows From Investing Activities
Investment income received 1,662,760 (2,270)
Cash paid for purchase of investments (29,176,275)(63,176,414)
Proceeds from sale of investments 30,965,700 63,792,208
Cash received from lessees 399,821 (654,156)
Cash paid for rent expenses (164,840)(159,043)
Net Cash Provided (Used) By Investing Activities 3,687,166 (199,675)
Net Increase (Decrease) In Cash 1,208,011 1,507,203
Cash, Beginning of year 4,984,811 3,477,608
Cash, End of year 6,192,822$ 4,984,811$
Reconciliation of Operating Income (Loss) to Net Cash Provided
(Used) by Operating Activities
Operating income (loss)(3,948,113)$ (3,626,762)$
Depreciation included in operating income (loss)389,394 678,390
Decrease (increase) in:
Receivables (144,396)198,103
Prepaid expenses (201,818)158,811
Increase (decrease) in:
Accounts payable 10,258 124,421
Member payable (586,444) 1,096,580
Accrued payroll 3,065 (4,234)
Unearned contributions 671,156 (380,483)
Claim related liabilities 1,689,298 3,573,787
Net Cash Provided (Used) By Operating Activities (2,117,600)$ 1,809,397$
Supplemental Disclosures
Schedule of Noncash Investing and Financing Transactions
Unrealized gain (loss) on investments 63,071$ (446,447)$
Adjustments to reconcile operating income (loss) to cash
provided (used) by operating activities:
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
20
1.GENERAL INFORMATION
A.ORGANIZATION
Pursuant to California Government Code Section 6500 et seq. and 990 et seq. the Special
District Risk Management Authority (SDRMA) was formed effective August 1, 1986.
SDRMA provides its members with coverage protection related services such as workers’
compensation, property and liability,errors and omissions, and auto comprehensive and
collision and health benefits. SDRMA was established to provide risk financing coverage
as well as to pay the costs of administration, risk management services, and other such
costs that are approved by the Board of Directors.
B.MEMBERSHIP
The Authority is comprised of special districts, cities, and joint powers authorities located
throughout California.
C.ADMISSION AND WITHDRAWAL OF MEMBERSHIP
Admission
Any public agency organized under the laws of the State of California, which is a member
of the California Special Districts Association (CSDA), is eligible for membership in SDRMA
upon approval of its membership by the SDRMA Board of Directors. Members shall be
required to pay their applicable pro rata contributions and the Board of Directors may
determine assessments.
Withdrawal
Any participating member may voluntarily withdraw from any particular joint projection
program at the end of any coverage year of participation if:
a.They give not less than ninety days advance written notice of withdrawal to the Board
of Directors of the Authority prior to the end of the coverage year; and
b.The entity shall have participated in the Property/Liability or Workers’ Compensation
Program for not less than three full program years.
The effect of withdrawal (or termination), for the pooling programs, does not terminate
the responsibility of the Member to continue paying its share of assessments. Such
Member, by withdrawing or being involuntarily terminated, shall not be entitled to
payment, return or refund of any Contribution, Assessment, consideration, or other
property paid, or donated by the Member to the Authority, or to any return of any loss
reserve contribution, or to any distribution of assets (except payment of any Retained
Earnings). Upon such withdrawal from or cancellation of participation in any Program by
any Member, said Member shall be entitled to receive its pro rata share of any Retained
Earnings distribution declared by the Board of Directors after the date the said Member
withdraws or is involuntarily terminated.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
21
D.REPORTING ENTITY
The SDRMA reporting entity includes all activities (operations of its administrative staff,
officers, executive committee, and board of directors) as they relate to the Authority. This
includes financial activity relating to all of the membership years.
SDRMA has developed criteria to determine whether other entities with activities that
benefit the Authority should be included within its financial reporting entity. The criteria
include, but are not limited to, whether the entity exercises oversight responsibility
(which includes financial interdependency, selection of governing authority, designation
of management, ability to significantly influence operations and accountability for fiscal
matters), scope of public service and special financing relationships.
SDRMA has determined that no other outside entity meets the above criteria, and
therefore, no agency has been included as a component unit in these financial
statements. In addition, SDRMA is not aware of any entity that would exercise such
oversight responsibility that would result in the Authority being considered a component
unit of that entity.
In determining its reporting entity, SDRMA considered all governmental units that were
members of the Authority since inception. The criteria did not require that inclusion of
these entities in their financial statements principally because the Authority does not
exercise oversight responsibility over any members.
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.BASIS OF ACCOUNTING
These statements are prepared using the economic resources measurement focus and
the accrual basis of accounting. Under this method, revenues from contributions and
interest are recognized when earned and expenses are recognized when goods or services
have been rendered, except when a premium deficiency exists where unearned
premiums are recognized currently in accordance with GASB pronouncements.
B.DESCRIPTION OF PROGRAMS
Property/Liability Program
The Property/Liability Program was established in order to provide the members with a
risk sharing pool for general liability, auto liability and property damage risk financing, as
well as public official's errors and omissions coverage’s and crime and fidelity. As of June
30, 2014 and 2013, there were 476 and 469 members, respectively,participating in the
Property/Liability Program.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
22
Property/Liability Program (continued)
The following table reflects the risk financing limits provided by the Program at June 30,
2014:
Per Occurrence
Type of Coverage Deductible
Self-
Insurance
Retention
Total Risk Financing
Limits
PROPERTY/LIABILITY
PROGRAM:
Building and Contents $ 1,000 (8)$ 199,000 (1)
Equipment Floater 1,000 (8)199,000 (1)
Boiler/Machinery (2)10,000 (1)
General Liability (3)250,000 $2,500,000 (6)
Auto Liability (4)250,000 2,500,000 (6)
Public Officials’ and
Employees’:
Errors & Omissions 250,000 2,500,000 (5,6)
Blanket Bond -25,000 400,000
Personal Liability for Board
Members -500,000 (9)
Comprehensive and
Collision 250-1,000 (7)(7)
(1) Repair or replacement cost, if replaced; stated cost less depreciation, if not replaced.
(2) $1,000 deductible for most items; up to $250,000 for very large generators and
transformers.
(3)Subject to a $500 per occurrence deductible for third party property damage; no
deductible for third party bodily injury.
(4)Subject to a $1,000 per occurrence deductible for third party property damage; no
deductible for third party bodily injury.
(5)Public Officials and Employee's Liability is subject to an annual per
occurrence/aggregate per member of $2.5 million.
(6) As of July 1, 2013, the total risk finance limit is $2.5 million and the self-insured
retention is $250,000. Members may also purchase two additional layers of
coverage, $2.5 million to a total of $5 million and an additional $5 million to a total
of $10 million. Higher limits are available upon request. From July 1, 2008 through
June 30, 2011 the self insured retention was $500,000.
(7) The lesser of a.) The actual cash value; b.) The stated value; c.) The actual cost to
repair.
(8) Deductible subject to change due to policy coverage such as flood.
(9) Self insured retention is $500,000 per board member with no limit on the number of
board members covered.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
23
Property/Liability Program (continued)
All of the risk financing limits are subject to change by the Board of Directors and are
subject to specific limitations as specified in the memorandum of coverage provided to
each Member. It is the policy of the Authority to charge to expense the payments to be
made for claims in cases where the amounts are reasonably determinable and where the
likelihood of liability exists. In addition, the Authority has established a contingency
reserve for losses by designation of the risk margin.
Workers’ Compensation Program
The Workers’ Compensation Program was established in 1982 for the purpose of
operating and maintaining a self-insurance or group insurance program. Effective July 1,
2003, this program merged into SDRMA. The Workers’ Compensation fund is established
and maintained for Member contributions, to be used for the payment of, but not limited
to, the following:
Self-insured claim payments
Insurance premiums
Claims administration expenses
Investigative, legal, and audit costs
As of June 30, 2014 and 2013,there were 402 and 395 members, respectively,
participating in the Workers’ Compensation program. The following table reflects the risk
financing limits provided by the Program at June 30, 2014:
Per Occurrence
Type of Coverage Deductible
Self-
Insurance
Retention
Total Risk
Financing
Limits
Workers’ Compensation $ 0 $ 250,000 Statutory
Health Benefits Program
In August 2006, SDRMA partnered with California State Association of Counties (CSAC-EIA
Health), to offer a small group Medical Benefits Program to public agencies with 250
employees or less. In May 2007,SDRMA through CSAC-EIA Health began offering an
Ancillary Coverages Program including dental,vision,life,long term disability (LTD) and an
employee assistance program (EAP)to public agencies with 50 employees or less.SDRMA
functions as the small group program administrator by marketing the program,signing up
new groups,answering day to day questions,performing monthly billing, collecting
monthly premiums and remitting payments to CSAC-EIA Health.As of June 30, 2014 and
2013, there were 87 and 78 groups, respectively,participating in the Medical Benefits
program and 57 groups in the Ancillary Coverage program.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
24
C.FUND ACCOUNTING
The accounts of SDRMA are organized on the basis of funds, each of which is considered
to be a separate accounting entity. The JPA's funds have been combined for the
presentation of the financial statements. The operation of each fund is accounted for by
providing a separate set of self-balancing accounts that comprise its assets, liabilities, net
position, revenues, and expenses. The JPA maintains three funds that are considered
Proprietary-Enterprise Funds.
SDRMA has three enterprise funds: Property/Liability, Workers’ Compensation and Health
Benefits. Enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business enterprises, where the intent is that the
costs of providing services to the members on a continuing basis be financed or recovered
primarily through fees and premiums or where the periodic determination of revenues
earned, expenses incurred, and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes.
D.STATEMENTS OF CASH FLOWS
The Authority considers interest on investments to be nonoperating revenue; therefore,
investment income is presented in the investing section of the Statements of Cash Flows.
E. CASH AND CASH EQUIVALENTS
For purposes of the statement of cash flows, cash and cash equivalents include all
checking and savings accounts, cash in bank, cash with the Local Agency Investment Fund,
and all highly liquid debt instruments purchased with original maturity of three months or
less.
F.RECEIVABLES
All receivables are reported at their gross value, and where appropriate, are reduced by
the estimated portion that is expected to be uncollectible. At June 30, 2014 and 2013, the
total accounts receivable portfolio was considered collectible. Interest on investments is
recorded in the year the interest is earned.
G.INVESTMENTS
The Authority records its investments at fair market value. Changes in fair market value
are reported as revenue in the Statements of Revenues, Expenses and Changes in Net
Position. The effect of recording investments at fair market value is reflected as a net
increase or decrease in the fair value of investments on the Statements of Revenues,
Expenses and Changes in Net Position and on the Statements of Net Position. Fair market
values of investments have been determined by the sponsoring government based on
quoted market prices.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
25
H. FIXED ASSETS AND DEPRECIATION
SDRMA capitalizes all assets costing one thousand dollars ($1,000) or more and records
the asset value at cost. Depreciation is provided for over the estimated useful lives of the
assets using the straight-line method. The estimated useful life used for buildings and
improvements is thirty years. The estimated useful lives used for furniture and equipment
range from three to five years. The original Navrisk Policy software purchased in 2001 is
depreciated over twenty five years. However, software purchases since that time are
depreciated over three years.Land is carried at cost and is not depreciated.
I. CLAIM RELATED LIABILITIES (CLAIMS PAYABLE, CLAIMS INCURRED BUT NOT REPORTED,
AND LIABILITY FOR UNALLOCATED LOSS ADJUSTMENT EXPENSES)
The Authority establishes claims liabilities based on estimates of the ultimate cost of
claims (including future claim adjustment expenses) that have been reported but not
settled, and of claims that have been incurred but not reported (IBNR). The length of time
for which such costs must be estimated varies by the coverage involved. Estimated
amounts of salvage and subrogation and excess insurance recoverable on unpaid claims
are deducted from the liability for unpaid claims. Because actual claims costs depend on
such complex factors as inflation, changes in doctrines of legal liability, and damage
awards, the process used in computing claims liabilities does not necessarily result in an
exact amount, particularly for coverage such as general liability.
Claims liabilities are re-computed periodically using a variety of actuarial and statistical
techniques to produce current estimates that reflect recent settlements, claim frequency,
and other economic and social factors. A provision for inflation in the calculation of
estimated future claims costs is implicit in the calculation because reliance is placed both
on actual historical data that reflects past inflation and on other factors that are
considered to be appropriate modifiers of past experience. Adjustments to claims
liabilities are charged or credited to expense in the period in which they are made.
J.CONTRIBUTION INCOME
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are
those in which each party receives and gives up essentially equal values. Nonoperating
revenues, such as subsidies and investment earnings, result from non-exchange
transactions or ancillary activities.
Revenues mainly consist of premium contributions from members. Contribution
development is performed by actuaries and the Board of Directors based on the particular
characteristics of the members. Contribution income consists of payments from members
that are planned to match the expense of insurance premiums for coverage in excess of
self-insured amounts, estimated payments resulting from self-insurance programs, and
operating expenses. The activities of the Authority consist solely of risk management
programs and claims management activities related to the coverages described above.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
26
J.CONTRIBUTION INCOME (continued)
The reporting entity does not include any other component units with the criterion
prescribed by GAAP.
Member contributions are recognized as revenues in the period for which coverage
protection is provided. If the Board of Directors determines that the funds for a program
are insufficient to pay losses, the Authority may impose a supplemental assessment on all
participating members. Anticipated investment income is not considered in determining
supplemental assessments. Supplemental assessments are recognized as income in the
period assessed.
K. UNALLOCATED LOSS ADJUSTMENT EXPENSE (ULAE)
The liability for ULAE includes all costs expected to be incurred in connection with the
settlement of unpaid claims that cannot be related to a specific claim. For the
Property/Liability Program management has estimated the accrual based upon past
experience and consultation with its actuary and for the Workers’ Compensation Program
management relied on the estimate provided by the actuary.
L. COMPENSATED ABSENCES
Vested or accumulated paid leave is recorded as an expense and liability of the Authority
as the benefits accrue to employees. In accordance with accounting standards, no liability
is recorded for non-vesting accumulating rights to receive sick pay benefits.
M. MANAGEMENT ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the reporting date and revenues and
expenses during the reporting period. Actual results could differ from those estimates.
Material estimates that are susceptible to significant change in the near term are
described elsewhere in this report.
N.INCOME TAXES
SDRMA income is exempt from federal income taxes under Internal Revenue Code Section
115, which excludes income derived from the exercise of any essential governmental
function and accruing to a state political subdivision.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
27
3.CASH AND INVESTMENTS
A.CASH AND CASH EQUIVALENTS
Cash consisted of the following at June 30:
2014 2013
Cash in Bank 2,367,960$ 2,617,396$
Cash on Hand 300 300
Local Agency Investment Fund 3,824,562 2,367,115
Total Cash and Cash Equivalents 6,192,822$ 4,984,811$
Cash in Bank
The carrying amount of the Authority’s cash in bank is covered by federal depository
insurance up to $250,000. Should deposits exceed the insured limits, the balance is
covered by collateral held by the bank in accordance with California law requiring the
depository bank to hold collateral equal to 110% of the excess government funds on
deposit. This collateral must be in the form of government-backed securities.
Local Agency Investment Fund
The Authority is a voluntary participant in Local Agency Investment Fund (LAIF), which is
regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California and the Pooled Money Investment Board. The State
Treasurer’s office pools these funds with those of other governmental agencies in the
state and invests the cash. The fair value of the Authority’s investment in this pool, which
approximates cost, is reported in the accompanying financial statements based upon the
Authority’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio
(in relation to the amortized cost of that portfolio). The balance available for withdrawal is
based on the accounting records maintained by LAIF, which are recorded on an amortized
cost basis. Funds are accessible and transferable to the master account within twenty-four
hours notice. Included in LAIF’s investment portfolio are collateralized mortgage
obligations, mortgage-backed securities, other asset backed securities, and floating rate
securities issued by federal agencies, government-sponsored enterprises and
corporations.
The Pooled Money Investment Board has established policies, goals, and objectives to
make certain that their goal of safety, liquidity, and yield are not jeopardized. This fund
currently yields approximately .22%interest annually and has an average life of 232 days.
The monies held in the LAIF are not subject to categorization by risk category. It is also not
rated as to credit risk by a nationally recognized statistical rating organization.
LAIF is administered by the State Treasurer and are audited annually by the Pooled Money
Investment Board and the State Controller’s Office. Copies of this audit may be obtained
from the State Treasurer’s Office: 915 Capitol Mall, Sacramento, California 95814.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
28
B. INVESTMENTS
Under provision of SDRMA’s investment policy and state statutes, SDRMA may invest in
the following types of investments:
Maximum
% of
Portfolio
US Government & Agency Obligations 100%
Local Agency Investment Fund Maximum allowed by the
Local Investment Advisory Board
Federal National Mortgage Association 100%
Federal Home Loan Mortgage Corporation 100%
Federal Home Loan Banks 100%
Medium Term Corporate Notes 30%
Negotiable Certificates of Deposits 30%
Money Market Funds 20%
Bank Deposits 20%
Commercial Paper 25%
Local Government Investment Pools 10%
Interest Rate Risk
Interest Rate Risk is the risk that the value of investments will decrease as a result of a
rise in interest rates. SDRMA’s investment policy limits its investment portfolio maturities
to no more than five years from purchase date to maturity date unless the legislative
body has granted express authority to exceed that limit. As of June 30, 2014, SDRMA had
the following investments held in a managed portfolio:
Investment Type Fair Value < 1yr 1-3 yrs >3 yrs
US Treasuries 25,043,811$ -$ 19,520,367$ 5,523,444$
Federal Agencies 29,213,428 - 15,756,801 13,456,627
Corporate Notes 24,946,546 - 16,731,342 8,215,204
Municipal Obligations 4,891,517 1,260,156 1,825,178 1,806,183
Certificate of Deposits 4,596,398 203,082 4,393,316 -
Total Investments 88,691,700$ 1,463,238$ 58,227,004$ 29,001,458$
Investment Maturities
Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. It is SDRMA’s general investment policy to apply the prudent
person standard; that is, investments shall be made with judgment and care, under
circumstances then prevailing, 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.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
29
B. INVESTMENTS (continued)
As of June 30, 2014, investments in Federal Agencies had a Moody rating of AAA, and
investments in corporate notes at the time of purchase had a Moody rating of BAA or
better. Investments in US Treasuries carry the explicit guarantee of the US Government.
Certificate of Deposits are not rated but they are covered by FDIC.
Concentration of Credit Risk
Investments in securities of any one issuer consisting of five percent or more of total
investments are as follows:
Fair Value % of Porfolio
Fannie Mae 19,286,877$ 21.75%
Freddie Mac 6,438,535 7.26%
4.NOTE RECEIVABLE
SDRMA has a Note Receivable with David Corporation valued at $185,301 and $265,301 as of
June 30, 2014 and 2013, respectively.The Note Receivable was not paid when it became due on
June 11, 2011. Instead, according to Amendment No. 1 to the Second Amended and Restated
Agreement, SDRMA will off-set annual support costs for NavRisk Claims against this balance. In
addition, based upon contract terms with David Corporation, SDRMA will not be required to pay
$20,000 in annual support costs for NavRisk Policy until the note is paid in full.SDRMA will
continue to use the software and support.
5.CAPITAL ASSETS
SDRMA's capital assets consist of the following:
June 30, 2013 Additions Deletions June 30, 2014
Non-Depreciable Assets:
Land 762,850$ -$ -$ 762,850$
Other Assets:
Building 3,252,150$ - - 3,252,150$
Building Improvements 1,750,292 94,046 - 1,844,338
Software 2,512,031 21,179 36,454 2,496,756
Furniture, Fixtures, and Equipment 712,180 174,581 255,589 631,172
Construction in Progress - 330,905 - 330,905
Total Other Assets 8,226,653 620,711 292,043 8,555,321
Less Accumulated Depreciation (4,380,599)(539,464)(286,027) (4,634,036)
Net Depreciable Assets (1)3,846,054$ 81,247$ 6,016$ 3,921,285$
(1) A portion of these balances is subject to lien imposed under a capital lease obligation as
disclosed in Note 6.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
30
For the fiscal years ended June 30, 2014 and 2013 depreciation expense was $539,464 and
$788,611,respectively. For the year ended June 30, 2014, $389,394 of the depreciation expense
was classified as an operating expense and $150,070 classified as a component of rent expense.
6.OPERATING LEASES REVENUE
On June 30, 2004, SDRMA purchased a 25,076 square foot office building at 1112 I Street in
Sacramento. The Authority occupies approximately 6,864 square feet of the building and leases
out the remainder.
As of June 30, 2014, the cost of the portion of the property leased is $3,701,438. Accumulated
Depreciation on the lease is $1,263,800 as of June 30, 2014. The following is a schedule by
years, based on the minimum revenue amount for future rentals from operating leases as of
June 30, 2014:
Year Ended
June 30 Principal
2014 290,194$
2015 324,091
2016 272,084
2017 190,943
2018 176,835
2019-2022 462,048
Total minimum future rentals 1,716,195$
Lease income for the years ended June 30, 2014 and 2013 was $399,821 and $391,766,
respectively.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
31
7.UNPAID CLAIM LIABILITIES
The Authority establishes a liability for both reported and unreported insured events, which
includes estimates of both future payments of losses and related claims adjustment expenses.
The following represents changes in those aggregate liabilities for all programs during the year
ended June 30:
2014 2013
Unpaid Claims and Claim Adjustment Expenses
at Beginning of Year 43,042,289$ 39,468,502$
Incurred Claims and Claim Adjustment Expenses:
Provision for Insured Events of the Current Year 16,826,000 16,067,000
Increase (Decrease) in Provision of Insured
Events of the Prior Years (41,204) (785,397)
Change in unallocated loss adjustment
expense (ULAE)(1,466,832) 370,673
Total Incurred Claims and Claim
Adjustment Expenses 15,317,964 15,652,276
Payments:
Claim and Claim Adjustment Expenses
Attributable to Insured Events of the
Current Year 3,543,095 2,410,544
Claim and Claim Adjustment Expenses
Attributable to Insured Events of the
Prior Years 10,085,571 9,670,348
Total Payments 13,628,666 12,080,892
Total Unpaid Claims and Claims
Adjustment Expenses 44,731,587$ 43,039,886$
Detail of Claim Related Liabilities:
Claims Payable 22,792,415$ 20,993,903$
Claims Incured But Not Reported 19,657,371 18,299,753
Unallocated Loss Adjustment Expenses 2,281,801 3,748,633
Totals 44,731,587$ 43,042,289$
Current Portion 11,500,000$ 10,500,000$
Long-term Portion 33,231,587 32,542,289
Totals 44,731,587$ 43,042,289$
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
32
8.NET POSITION
Net Position represents the accumulation of funds for unexpected catastrophic losses and
future discounts or reductions of contributions. A reservation of net position has been made to
establish a contingency reserve at June 30, 2014 and 2013. The contingency reserve (which is
not included in current expenses) is established to provide for claims where liability amounts, if
any, are not determinable. The contingency reserve has been established at a certain confidence
level of the estimated outstanding liabilities. For the property/liability program, this is based on
a 90% confidence level on an undiscounted basis. For the workers’ compensation program, this
is based on an 85% confidence level on an undiscounted basis. The balance of the reserve at
June 30, 2014 and 2013 has been determined based on actuarial analysis and management's
past experience.
Based upon Board Policy No. 2014-07, the following are the components of the Authority's Net
Position at June 30, 2014 and 2013 allocated between various reserve fund accounts (RFA’s):
Net Position by program as of June 30, 2014 and 2013 follows:
2014 2013
Deferred Maintenance Fund 3,811,098$ 3,633,307$
Longevity Distribution Funds 600,000 -
Special Projects for Add'l Rate Stabilization 28,875,655 34,386,120
Rate Stabilization Fund 5,564,497 5,037,455
Catastrophic Loss Fund 2,490,000 2,970,000
Risk Margin Fund 7,344,412 5,009,711
Invested in Capital Assets, net of related debt 4,684,135 4,608,904 Totals 53,369,797$ 55,645,497$
Net Position by program as of June 30, 2014 and 2013 as follows:
2014 2013
Property & Liability 24,397,882$ 25,943,740$
Workers' Compensation 27,585,785 28,465,821
Health Benefits 1,386,130 1,235,936 Totals 53,369,797$ 55,645,497$
9.DEFERRED COMPENSATION PLAN
The Authority offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code 457. ING Institutional Plan Services, LLC administers the plan. The plan
permits them to defer a portion of their salary until future years. The deferred compensation is
not available to employees until termination, retirement, death or unforeseeable emergency.
As a result of legislative changes, all amounts of compensation deferred, all property and rights
purchased, and all income, property, or rights are held in trust (until paid or made available to
the employee or other beneficiary) for the exclusive benefit of the participants and their
beneficiaries.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
33
10.RETIREMENT PROGRAMS
A. PLAN DESCRIPTION
The Authority contracts with the California Public Employees Retirement System (CalPERS)
to provide retirement benefits for Authority employees, through its defined benefit pension
plan.
On September 12, 2012, Governor Brown signed into law the California Public Employees’
Pension Reform Act of 2012 (PEPRA) which impacts the retirement benefits that the
Authority offers through CalPERS. Among other provisions, PEPRA adopts a compulsory
formula and mandatory contributions for certain employees that are deemed to be “new
members.” Pursuant to Government Code Section 7522.04(f), the term “New Member”, as
it applies to individuals employed by the Authority, refers to the following:
(1)An employee who enrolls in CalPERS for the first time on or after January 1, 2013 and
who has no prior membership in any other California public retirement system; or
(2)An employee who enrolls in CalPERS for the first time on or after January 1, 2013 and
who was a member of another California public retirement system prior to January 1,
2013 but is not eligible for reciprocity pursuant to Government Code Section 7522.02(c)
and Section 579.3 of Title 2 of the California Code of Regulations; or
(3)An employee who established CalPERS membership prior to January 1, 2013 with a
different CalPERS employer, and who is hired by the Authority after January 1, 2013,
after a break in service of greater than six (6) months.
As a result of PEPRA, the Authority must have two tiers of retirement benefits the
application of which depends on an employee’s status as a New Member. Authority
employees that were enrolled in CalPERS as a result of their employment with the Authority
before January 1, 2013 and CalPERS-eligible employees hired on or after January 1, 2013
that are not New Members, as defined above, are referred to as “Classic Members.”
Tiered Pension Benefits
The monthly retirement allowance of both Classic Members and New Members is
determined by age at retirement, years of service credit and final compensation. To be
eligible for service retirement, a Classic Member must be at least age 50 and have five years
of CalPERS credited service and a New Member must be at least age 52 and have five years
of CalPERS credited service. There is no compulsory retirement age. This retirement benefit
will be paid exclusively by CalPERS in accordance with the Public Employees’ Retirement
Law.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
34
1.Classic Members
The retirement benefit formula for Classic Members is 2% @ 55. The Authority’s contract
with CalPERS provides for calculating final compensation based on the highest average
PERSable compensation for thirty-six (36) consecutive months of employment with the
Authority.
The Authority pays the employer portion of the costs associated with this retirement
program. In addition, the Authority currently pays the seven percent (7%) employee share
known as the normal member contribution on behalf of Classic Members as an employer
paid member contribution (“EPMC”) pursuant to Government Code Section 20691. The
Authority reserves the right to periodically increase, reduce, or eliminate the EPMC, as
authorized by Section 20691.
2.New Members
The retirement benefit formula for New Members is 2% @ 62. Final compensation for
purposes of calculating a New Member’s retirement allowance is equal to the New
Member’s highest average PERSable compensation for thirty-six (36) consecutive months of
employment with the Authority.
As of January 1, 2013, the PERSable compensation of New Members will be capped at
$113,700, an amount that is subject to adjustment by CalPERS. In addition, the items of
compensation used to determine benefits or contributions to CalPERS will be limited to
those items of compensation deemed “pensionable compensation” under Government
Code Section 7522.34.
New Members are required to pay for a portion of the cost of the 2% @ 62 retirement
formula. This mandatory member contribution is not a fixed amount. Rather, it will be set
by CalPERS based on the following formula. The mandatory contribution will be equal to
50% of the total normal costs attributable to the 2% @ 62 benefit plan, rounded to the
nearest quarter of 1 percent. The Authority will inform New Members of the amount of the
mandatory employee contribution when CalPERS informs the Authority of the rate.
B. FUNDING POLICY
The Authority contributes the employees required contribution of 7% of their annual
covered salary for all “Classic”plan members in the Authority's retirement plan. The
Authority is required to contribute the actuarially determined remaining amounts necessary
to fund the benefits for its employees. The actuarial methods and assumptions used are
those by the CalPERS Board of Administration. The required employer contribution rate for
fiscal years 2013-14 was 10.282%, and 2012-13 was 9.716%for all employees. The
contribution requirements of the plan members are established by State statute and the
employer contribution rate is established and may be amended by CalPERS.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
35
C. ANNUAL PENSION COST
For fiscal year 2013-14, the Authority's annual pension cost was $107,112 and the Authority
actually contributed $91,443. The required contribution for fiscal year 2013-14 was
determined as part of the June 30, 2011 actuarial valuation. A summary of principle
assumptions and methods used to determine the annual required contributions is shown
below:
Valuation Date:June 30, 2011
Actuarial Cost Method:Entry Age Actuarial Cost Method
Amortization Method:Level Percent of Payroll
Average Remaining Period:20 Years as of the Valuation Date
Asset Valuation Method:15 Year Smoothed Market
Actuarial Assumptions:
Inflation Rate:2.75%
Investment Rate of Return:7.50% (net of administrative expenses)
Projected Salary Increases:
Payroll Growth:3.00%
Individual Salary Growth:
3.30% to 14.20% depending on Age, Service and type of employment
A merit scale varying by duration of employment coupled with an assumed
inflation growth of 2.75% and an annual production growth of 0.25%.
D.THREE YEAR TREND INFORMATION -AUTHORITY'S RETIREMENT PLAN
Annual Pensions Obligation
Fiscal Year
Ending
Annual
Pension Cost
(APC)
% of APC
Contributed
Net Pension
Obligation
6/30/2012 $ 94,809 135%$0
6/30/2013 $ 102,632 172%$0
6/30/2014 $ 107,112 85%$0
11.OTHER POSTEMPLOYMENT BENEFITS
A.PLAN DESCRIPTION
The Authority provides a defined benefit healthcare plan (the “Retiree Health Plan”). The
Retiree Health Plan provides the medical insurance coverage for the life of eligible retiree
capped at 50% of the single insurance premium. Benefit provisions are established by the
Board of Directors.The plan does not issue a financial report.
B.FUNDING POLICY
The Authority’s Board of Directors will not be fully funding the plan in the current year. The
Board will review the funding requirements and policy annually.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
36
C.ANNUAL OPEB COST
The Authority’s annual other postemployment benefit (OPEB) cost (expense) is calculated
based on the annual required contribution of the employer (ARC). The Authority has elected
to calculate the ARC and related information using the alternative measurement method
permitted by GASB Statement No. 45 for employers in plans with fewer than one hundred
total plan members. The ARC represents a level of funding that, if paid on an ongoing basis,
is projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities (or funding excess) over the remaining period of 29 years. The following table
shows the components of the Authority’s annual OPEB cost for the year, the amount
actually contributed to the plan, and changes in its net OPEB obligation to the Retiree Health
Plan:
Annual Required Contribution 21,508$
Interest on net OPEB Obligation -
Adjustments to annual required contribution -
Annual OPEB Cost 21,508
Estimated Contributions 21,508
Change in net OPEB obligation -
Net OPEB Obligation - beginning of year -
Net OPEB Obligation - end of year -$
The Authority’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan and the net OPEB obligation for the current fiscal year is as follows:
Fiscal Year
Ended OPEB Cost
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
6/30/2012 $ 15,118 100%-$
6/30/2013 15,118 100%-
6/30/2014 21,508 100%-
D.FUNDED STATUS AND FUNDING PROGRESS
As of July 1, 2013, the actuarial accrued liability (AAL) for benefits was $301,391, of which
$63,374 was unfunded. The amount was subsequently paid on August 1, 2014.
The projection of future benefit payments for an ongoing plan involves estimates of the
value of reported amounts and assumptions about the probability of occurrences of events
far into the future. Examples include assumptions about future employment, mortality and
healthcare cost trends. Amounts determined regarding the funded status of the plan and
the annual required contributions of the employer as subject to continual revision as actual
results are compared with past expectations and new estimates are made about the future.
The schedule of funding progress presents multiyear trend information about whether the
actuarial value of plan assets are increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
37
E.ACTUARIAL METHOD AND ASSUMPTIONS
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The methods and
assumptions used include techniques that are designed to reduce the effects of short term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term prospective of the calculations.
The following simplifying assumptions were made:
Valuation Date July 1, 2013
Actuarial Cost Method:Entry Age Normal Cost
Amortization Method:Level Percent of Payroll
Amortization Period:30 Years
Asset Valuation Method:Market value of assets
Actuarial Assumptions:
Investment Rate of Return:6.39%
Payroll Growth Rate:2.0% annually
Healthcare cost trend rate –The expected rate of increase in healthcare insurance
premiums is based on the most recent projections made by the Office of Actuary at the
Centers for Medicare and Medicaid Services as published in National Health Care
Expenditures Projections: 2012-2021. For 2013 and beyond the initial trend rate is 9.0%
decreasing 0.5% until the ultimate rate of 4.5% is reached.
F.PLAN FOR FUNDING
The Authority plans to fully fund its accrued actuarial liability and will continue to fully fund
at least the annual required contributions.
G.SCHEDULE OF FUNDING PROGRESS
Actuarial
Actuarial Accrued
Liability (AAL)
Actuarial
Value of
Unfunded
Liability Funded
Annual
Covered
UAAL
as a %
Valuation Entry Age Assets (UAAL)Status Payroll of payroll
Date (a)(b)(a-b)(b/a)(c)([a-b]/c)
7/1/2013 $ 301,391 $ 238,017 $ 63,374 79% $ 1,066,993 5.9%
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
38
12.JOINT VENTURE
Effective July 1, 2003, SDRMA participated in a joint venture under a Joint Powers Agreement
(JPA) with CSAC Excess Insurance Authority (CSAC EIA). The relationship between SDRMA and
CSAC EIA is such that CSAC EIA is not a component unit of the Authority for financial reporting
purposes.
SDRMA withdrew from LAWCX effective July 1, 2003; however, SDRMA has a continuing
obligation related to potential policy year deficits and related future assessments. Full financial
statements are available separately by contacting these agencies.
A.Entity LAWCX CSAC EIA
B.Purpose
C.Participants
D.Governing Board
E.Payments for the Current Year -$ 4,770,375$
F.Condensed Financial Information
June 30, 2013*June 30, 2013*
Total Assets 65,962,653$ 588,152,525$
Total Liabilities 39,812,621 469,537,129
Net Position 26,150,032 118,615,396
Total Liabilities and Net Position 65,962,653$ 588,152,525$
Total Revenues 9,171,005$ 538,524,288$
Total Expenses (10,963,129)(525,460,712)
Net Income (Loss)(1,792,124)$ 13,063,576$
Member Agencies Share of Year-End
Assets, Liabilities, or Net Position ****
*Most recent information available.
**Has not been calculated.
To provide workers'
compensation coverage and
employers' liability coverage
from $500,000 to $100 million
and $250,000 to $5 million,
respectively.
One hundred sixty-six
members including cities,
school districts, special
districts and JPA's.
One representative from each
member county and seven
members elected by the public
entity membership.
Consisting of one member from
each participating agency.
To self-insure and pool excess
workers' compensation losses.
Twenty-two municipalities, eleven
joint power authorities and two
special districts.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
39
13.THREATENED LITIGATION
Towns v. SDRMA and Frydendal, Sacramento Superior Court, Case No. 34-2013-00156587-CU-
BC-GDS:
Plaintiff James W. Towns is the retired Chief Executive Officer of SDRMA. On June 19, 2013, he
filed a tort claim with SDRMA asserting that SDRMA breached a purported contract by which it
agreed to guarantee that the pension Towns receives from the California Public Employees’
Retirement System (“CalPERS”) would not be reduced. Prior to the claim being filed, CalPERS
had taken administrative action to reduce Towns’ pension. On June 25, 2013, SDRMA rejected
Towns’ tort claim. Towns then filed a civil lawsuit in Sacramento Superior Court on December
24, 2013 against SDRMA, alleging causes of action for breach of contract, estoppel,
constitutional violations and due process violations in an attempt to make SDRMA liable for the
difference should CalPERS implement a reduction of Towns’ pension benefits. CalPERS reduced
Towns’ pension on May 1, 2014. On May 30, 2014, Towns filed a “First Amended” tort claim
with SDRMA and a First Amended Complaint, which added Paul Frydendal as a defendant. On
July 3, 2014, SDRMA and Frydendal filed a demurrer and motion to strike regarding the First
Amended Complaint. The demurrer and motion to strike were heard on July 28, 2014 and the
court sustained the demurrer without leave to amend based, in part, on the fact that Towns
failed to exhaust his administrative remedies, namely the appeal he filed with the CalPERS
Board. The court ordered that the matter be stayed pending resolution of the CalPERS appeal.
Based upon the information presently known, we believe an outcome favorable to SDRMA is
likely.
South San Luis Obispo County Sanitation District v. SDRMA, San Luis Obispo County Superior Court, Case
No. CV130473:
On September 23, 2013, South San Luis Obispo County Sanitation District (the “District”) filed a
complaint alleging that SDRMA failed to defend and indemnify the District in connection with
Administrative Civil Liability Complaint No. R3-2012-0030 (“ACLC”) issued by the Regional Water
Quality Control Board, Central Coast Region (“RWB”) on June 18, 2012, and Order No. R3-2012-
0041 issued by the RWB on October 3, 2012, assessing an “administrative civil liability” award
against the District in the amount of $1,109,812.80 ($1,034,812.80 for “total base liability” plus
$75,000 for “staff costs”). The lawsuit against SDRMA seeks recovery of the amount of the
penalty plus the District’s defense costs, and also seeks “general and special damages” from
SDRMA. SDRMA had previously denied coverage to the District on the grounds that ACLC fails to
seek “damages” under the Liability Coverage Agreement (LCA), a term which is defined by the
LCA, in part, to mean “monetary compensation” and “does not include injunctive relief,
declaratory relief, restitution, attorneys’ fees, fines or penalties.” While SDRMA believes it can
obtain a favorable result, the Court may agree with the District that the LCA was “reasonably
susceptible” to the District’s interpretations. If SDRMA is found liable for the fees and costs
incurred by the District, such amount may be covered by SDRMA’s reinsurance available from
Munich Reinsurance America, Inc. and General Reinsurance, Inc. Further, SDRMA is being
defended under an Errors & Omissions Insurance Policy issued by Certain Underwriters at
Lloyd’s of London with liability limits of $7,000,000 for each claim/aggregate and which may
cover the “general and special damages” alleged.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013
40
14.CONTINGENT LIABILITY -UNEMPLOYMENT INSURANCE
The Authority has elected to cover itself for unemployment insurance under the reimbursement
method. Under this method the Authority does not make periodic payments to the State
Unemployment Compensation Disability Fund but is required to fund any claims as they are
incurred. The amount of the contingent liability, if any, at June 30, 2014 and 2013 is not
determinable. However, the Authority is not aware of any claims currently pending.
15.SUBSEQUENT EVENTS
The Authority’s management has reviewed its financial statements and evaluated subsequent
events for the period of time from its year ended June 30, 2014 through October 29, 2014, the
date the financial statements were issued.Management is not aware of any subsequent events
that would require recognition or disclosure in the accompanying financial statements
REQUIRED SUPPLEMENTARY INFORMATION
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
RECONCILIATION OF CLAIMS LIABILITIES BY TYPE OF CONTRACT
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
41
Property/Liability Workers' Compensation Totals
2014 2013 2014 2013 2014 2013
Unpaid Claims and Claim Adjustment Expenses
at Beginning of Year 9,469,618$ 10,046,806$ 33,572,671$ 29,421,696$ 43,042,289$ 39,468,502$
Incurred Claims and Claim Adjustment Expenses:
Provision for Insured Events of the Current Year 6,183,000 4,792,000 10,643,000 11,275,000 16,826,000 16,067,000
Increase (Decrease) in Provision of Insured
Events of the Prior Years 276,060 (757,795) (317,264) (27,602) (41,204) (785,397)
Change in unallocated loss adjustment
expense (ULAE)(14,771) 2,403 (1,452,061) 368,270 (1,466,832) 370,673
Total Incurred Claims and Claim
Adjustment Expenses 6,444,289 4,036,608 8,873,675 11,615,668 15,317,964 15,652,276
Payments:
Claim and Claim Adjustment Expenses
Attributable to Insured Events of the
Current Year 1,738,216 1,441,040 1,804,879 969,504 3,543,095 2,410,544
Claim and Claim Adjustment Expenses
Attributable to Insured Events of the
Prior Years 3,166,671 3,175,159 6,918,900 6,495,189 10,085,571 9,670,348
Total Payments 4,904,887 4,613,796 8,723,779 7,464,693 13,628,666 12,080,892
Total Unpaid Claims and Claims
Adjustment Expenses 11,009,020$ 9,469,618$ 33,722,567$ 33,572,671$ 44,731,587$ 43,039,886$
Detail of Claim Related Liabilities:
Claims Payable 6,430,973$ 4,891,625$ 16,361,442$ 16,102,278$ 22,792,415$ 20,993,903$
Claims Incured But Not Reported 3,896,246 3,881,421 15,761,125 14,418,332 19,657,371 18,299,753
Unallocated Loss Adjustment Expenses 681,801 696,572 1,600,000 3,052,061 2,281,801 3,748,633
Totals 11,009,020$ 9,469,618$ 33,722,567$ 33,572,671$ 44,731,587$ 43,042,289$
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
CLAIMS DEVELOPMENT INFORMATION –PROPERTY/LIABILITY PROGRAM
AS OF JUNE 30, 2014
42
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Required Contribution and
Investment Revenue 8,103,397$ 9,561,185$ 11,521,258$ 13,659,754$ 14,897,719$ 13,697,652$ 13,000,521$ 12,966,263$ 12,585,662$ 13,950,516$
Ceded 2,691,075 3,126,072 3,529,445 4,155,565 5,227,540 5,820,402 5,955,167 5,834,855 6,681,883 6,975,122
(1)Net Earned Required Contribution
and Investment Revenues 5,412,322 6,435,113 7,991,813 9,504,189 9,670,179 7,877,250 7,045,354 7,131,408 5,903,779 6,975,394
(2)Unallocated Expenses 1,351,667 1,669,079 1,657,176 2,834,329 1,876,696 2,082,912 1,934,215 1,775,769 1,911,616 2,076,963
(3)Estimated Incurred Claims and Expense
End of Year 6,969,278 8,441,294 9,167,032 11,540,833 12,378,169 12,418,027 12,210,167 10,626,855 11,473,883 13,158,122
Ceded 2,691,075 3,126,072 3,529,445 4,155,565 5,227,540 5,820,402 5,955,167 5,834,855 6,681,883 6,975,122
Net Incurred 4,278,203 5,315,222 5,637,587 7,385,268 7,150,629 6,597,625 6,255,000 4,792,000 4,792,000 6,183,000
(4)Paid (Cumulative)
End of Year 1,091,578 894,291 916,982 1,351,156 839,971 1,294,868 917,621 1,441,040 1,820,235 1,738,216
One Year Later 1,792,326 2,102,697 1,546,153 2,418,344 1,533,659 2,094,025 2,302,198 2,186,244 2,566,498
Two Years Later 2,381,253 2,471,041 2,647,337 3,145,693 2,020,075 3,056,088 3,306,542 3,684,372
Three Years Later 3,051,937 2,651,431 3,524,737 3,128,160 2,606,166 3,497,454 3,676,503
Four Years Later 3,336,707 2,652,497 3,773,585 3,142,887 3,110,297 3,714,182
Five Years Later 3,419,347 2,659,443 3,839,720 3,130,457 3,367,673
Six Years Later 3,423,548 2,659,443 3,935,496 3,130,137
Seven Years Later 3,423,548 2,659,443 4,014,465
Eight Years Later 3,423,548 2,659,519
Nine Years Later 3,423,548
(5)Reestimated Ceded Claims and Expenses 1,731,230 948,657 1,729,478 8,104,454 506,089 3,310,003 1,501,573 1,133,869 1,081,909 412,262
(6)Reestimated Incurred Claims and Expense
End of Year 4,278,203 5,315,222 5,637,587 7,385,268 7,150,629 6,597,625 6,255,000 4,792,000 4,792,000 6,183,000
One Year Later 4,469,050 6,112,297 6,316,321 6,530,789 7,082,074 6,518,857 5,379,000 4,982,375 5,629,099
Two Years Later 5,141,360 3,371,413 5,235,166 4,701,431 4,906,809 4,600,876 5,105,920 4,971,530
Three Years Later 4,366,830 4,212,958 4,200,059 4,348,190 3,667,695 4,269,766 4,527,059
Four Years Later 4,841,986 3,011,071 4,164,879 3,407,286 3,452,195 4,165,541
Five Years Later 3,413,995 2,850,597 3,893,879 3,147,668 3,582,218
Six Years Later 3,465,728 2,659,443 4,009,847 3,130,137
Seven Years Later 3,423,548 2,659,443 4,030,681
Eight Years Later 3,423,548 2,659,519
Nine Years Later 3,423,548
(7)Increase (Decrease) in Estimated
Incurred Claims Expense from
End of Policy Year (854,655)$ (2,655,703)$ (1,606,906)$ (4,255,131)$ (3,568,411)$ (2,432,084)$ (1,727,941)$ 179,530$ 837,099$ -$
Fiscal and Policy Year Ended June 30,
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
CLAIMS DEVELOPMENT INFORMATION –WORKERS’ COMPENSATION PROGRAM
AS OF JUNE 30, 2014
43
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Required Contribution and
Investment Revenue 12,268,296$ 14,444,257$ 15,427,234$ 16,653,213$ 16,808,215$ 13,361,572$ 13,215,319$ 13,250,617$ 13,191,133$ 15,399,890$
Ceded 1,812,625 2,138,449 2,500,235 1,629,472 1,205,734 1,311,011 1,379,132 2,045,218 2,217,330 4,471,725
(1)Net Earned Required Contribution
and Investment Revenues 10,455,671 12,305,808 12,926,999 15,023,741 15,602,481 12,050,561 11,836,187 11,205,399 10,973,803 10,928,165
(2)Unallocated Expenses 2,249,413 1,763,538 2,766,089 2,092,995 2,085,983 2,008,593 1,841,551 2,474,138 2,678,429 2,874,526
(3)Estimated Incurred Claims and Expense
End of Year 7,458,797 9,234,917 11,170,235 12,203,786 11,159,034 10,421,011 9,697,132 10,877,218 13,492,330 15,114,725
Ceded 1,812,625 2,138,449 2,500,235 1,629,472 1,205,734 1,311,011 1,379,132 2,045,218 2,217,330 4,471,725
Net Incurred 5,646,172 7,096,468 8,670,000 10,574,314 9,953,300 9,110,000 8,318,000 8,832,000 11,275,000 10,643,000
(4)Paid (Cumulative)
End of Year 901,792 942,376 1,190,701 1,262,398 1,206,540 1,243,562 1,369,701 969,054 1,652,610 1,804,879
One Year Later 1,957,887 2,569,494 2,553,737 2,619,026 2,693,983 2,958,197 2,918,209 3,011,645 4,025,215
Two Years Later 2,615,955 3,439,561 3,406,648 3,437,941 3,395,128 4,203,374 4,160,250 4,693,380
Three Years Later 3,321,389 4,144,924 3,977,034 3,962,948 4,019,600 5,284,201 5,158,034
Four Years Later 3,660,171 4,649,809 4,405,251 4,258,642 4,711,614 6,199,575
Five Years Later 3,988,621 4,906,589 4,613,316 4,505,318 5,128,243
Six Years Later 4,212,062 5,088,993 4,768,208 4,663,864
Seven Years Later 4,274,558 5,237,467 4,851,486
Eight Years Later 4,319,900 5,339,046
Nine Years Later 4,330,848
(5)Reestimated Ceded Claims and Expenses 309,016 122,342 209,884 34,230 22,801 93,349 1,031,223 521,278 7,017 1,417
(6)Reestimated Incurred Claims and Expense
End of Year 5,646,172 7,096,468 8,670,000 10,574,314 9,953,300 9,110,000 8,318,000 8,832,000 11,275,000 10,643,000
One Year Later 6,036,704 7,650,000 8,750,000 8,350,000 8,075,000 8,217,000 7,684,000 8,826,000 11,024,000
Two Years Later 6,350,000 7,600,000 7,500,000 7,081,000 7,445,000 8,283,000 7,785,000 8,678,000
Three Years Later 6,275,000 6,500,000 6,173,000 6,629,000 6,997,000 8,750,000 8,108,000
Four Years Later 5,750,000 6,034,000 6,114,000 6,249,000 7,073,000 8,834,000
Five Years Later 5,453,000 6,078,000 6,040,000 6,018,000 6,994,000
Six Years Later 5,301,000 5,926,000 6,018,000 5,645,000
Seven Years Later 5,156,191 5,779,000 6,172,000
Eight Years Later 4,931,000 5,983,000
Nine Years Later 5,004,000
(7)Increase (Decrease) in Estimated
Incurred Claims Expense from
End of Policy Year (642,172)$ (1,113,468)$ (2,498,000)$ (4,929,314)$ (2,959,300)$ (276,000)$ (210,000)$ (154,000)$ (251,000)$ -$
Fiscal and Policy Year Ended June 30,
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
SCHEDULE OF FUNDING PROGRESS FOR OTHER POSTEMPLOYMENT BENEFITS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
44
Actuarial
Actuarial Accrued
Liability (AAL)
Actuarial
Value of
Unfunded
Liability Funded
Annual
Covered
UAAL
as a %
Valuation Entry Age As sets (UAAL)Status Payroll of payroll
Date (a)(b)(a-b)(b/a)(c)([a-b]/c)
7/1/2010 $ 151,061 $ - $ 151,061 0% $ 1,370,746 11.0%
7/1/2011 $ 211,975 $ 161,548 $ 20,427 90% $ 921,795 2.2%
7/1/2013 $ 301,391 $ 238,017 $ 63,374 79% $ 1,066,993 5.9%
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
45
1) RECONCILIATION OF CLAIMS LIABILITIES BY PROGRAM
The schedules represent the changes in claims liabilities for the current and past year for all of the
Authority’s programs.
2) CLAIMS DEVELOPMENT INFORMATION
The following tables illustrate the Authority's earned revenues (net of reinsurance) and investment
income compared to related costs of loss (net of loss assumed by reinsurers) and other expenses
assumed by the Authority as of the end of the year. The rows of the table are defined as follows:
1.This line shows the total of each fiscal year's earned contribution revenues and investment
revenues, net of ceded premiums.
2.This line shows the Authority's other operating costs including overhead and claims
adjustment expenses not allocable to individual claims.
3.This line shows the Authority's incurred claims and allocated claim adjustment expense
(both paid and accrued) as originally reported at the end of the year, net of claims in excess
of the Authority's self-insured retention.
4.This section shows the cumulative amounts paid as of the end of the year.
5.This line shows the latest reestimated amount of claims assumed by reinsurers as of the
end of the current year for each insured year.
6.This annual reestimation results from new information received on known claims,
reevaluation of existing information on known claims, as well as emergence of new claims
not previously known.
7.This line compares the latest reestimated incurred claims amount to the amount originally
established (line 3) and shows whether this latest estimate of claims cost is greater or less
than originally thought.
As data for individual policy years mature, the correlation between original estimates and
reestimated amounts is commonly used to evaluate the accuracy of incurred claims currently
recognized in less mature policy years.
3) SCHEDULE OF FUNDING PROGRESS FOR OTHER POSTEMPLOYEMENT BENEFITS
This schedule represents funding progress for retiree health benefits (OPEB).
SUPPLEMENTARY INFORMATION
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2014
46
Workers'Health
Property/Liability Compensation Benefits Total
Assets
Current Assets
Cash and cash equivalents 1,627,936$ 3,516,350$ 1,048,536$ 6,192,822$
Current investments 639,916 823,322 - 1,463,238
Receivables 580,971 992,872 6,865 1,580,708
Prepaid expenses 170,025 99,351 1,843,942 2,113,318
Total Current Assets 3,018,848 5,431,895 2,899,343 11,350,086
Noncurrent Assets
Investments, at market 32,484,210 54,744,252 - 87,228,462
Notes receivable 185,301 - - 185,301
Capital assets:
Land 381,425 381,425 - 762,850
Other capital assets, net 1,810,763 2,110,522 - 3,921,285
Total Noncurrent Assets 34,861,699 57,236,199 - 92,097,898
Total Assets 37,880,547 62,668,094 2,899,343 103,447,984
Current Liabilities
Accounts payable 166,777 78,803 1,878 247,458
Accrued payroll 43,222 31,585 8,312 83,119
Member payable 257,476 252,660 - 510,136
Unearned contributions 2,006,170 996,694 1,503,023 4,505,887
Current portion of
claim-related liabilities 4,200,000 7,300,000 - 11,500,000
Total Current Liabilities 6,673,645 8,659,742 1,513,213 16,846,600
Noncurrent Liabilities
Noncurrent portion of
claim-related liabilities 6,809,020 26,422,567 - 33,231,587
Total Liabilities 13,482,665 35,082,309 1,513,213 50,078,187
Invested in capital assets, net of
related debt 2,192,188 2,491,947 - 4,684,135
Unrestricted 22,205,694 25,093,838 1,386,130 48,685,662
Total Net Position 24,397,882$ 27,585,785$ 1,386,130$ 53,369,797$
Liabilities
Net Position
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
47
Workers'Health
Property/Liability Compensation Benefits Total
Operating Revenues
Members' contribution 13,243,784$ 14,374,238$ -$ 27,618,022$
Health benefits premium - - 22,819,070 22,819,070
Other income 19 1,014 4 1,037
Total Operating Revenues 13,243,803 14,375,252 22,819,074 50,438,129
Operating Expenses
Claims expense 6,444,289 8,873,675 - 15,317,964
Insurance expense 6,975,122 4,471,725 - 11,446,847
Health insurance expense - - 22,340,180 22,340,180
Contract services and CSDA fees 515,361 1,678,971 21,577 2,215,909
Salaries and benefits 908,172 663,665 174,649 1,746,486
General and administrative 306,556 489,370 133,536 929,462
Depreciation expense 346,874 42,520 - 389,394
Total Operating Expenses 15,496,374 16,219,926 22,669,942 54,386,242
Operating Income (Loss)(2,252,571) (1,844,674) 149,132 (3,948,113)
Nonoperating Revenues and Expenses
Rental revenue 200,627 199,194 - 399,821
Rental expense (157,452)(157,458) - (314,910)
Net Rental Income (Loss)43,175 41,736 - 84,911
Investment income 560,468 922,902 1,062 1,484,432
Gain on sale of capital assets 103,070 - - 103,070
Total Nonoperating
Revenues and Expenses 706,713 964,638 1,062 1,672,413
Change in Net Position (1,545,858) (880,036) 150,194 (2,275,700)
Beginning Net Position 25,943,740 28,465,821 1,235,936 55,645,497
Ending Net Position 24,397,882$ 27,585,785$ 1,386,130$ 53,369,797$
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
GRAPHICAL PRESENTATION OF CLAIMS
JUNE 30, 2014
48
2013-14 Annual Financial Audit
Financial Statements with Independent Auditor’s Report
1112 Street, Suite 300
Sacramento, California 95814-2865
T 916.231.4141
T 800.537.7790
F 916.231.4111
www.sdrma.org
Special District Risk Management Authority
2013-14 ANNUAL REPORT
Providing Unparalleled Property/Liability, Workers’ Compensation and Health Benefits Programs
www.sdrma.org
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BOARD PRESIDENT’S MESSAGE
Special District Risk Management Authority (SDRMA) remains committed to its founding values of
quality service, fiscal integrity and stability, and member focused programs that maximize protection
and minimize risk.
Our goal is to serve as an extension of your agency’s staff and provide the best value through proactive
loss prevention, effective claims cost containment and enhanced member services. Our partnerships
with CSDA, the CSDA Finance Corporation and the Special District Leadership Foundation provide our
members access to valuable services, resources, education and training opportunities.
Significant Highlights for Fiscal Year 2013-14
44 new members joined
Approved keeping rates flat for the Property/Liability Program for the 4th year in a row
Approved New Complimentary Employment Law Legal Hotline for Property/Liability Members
Received Favorable Opinion on our Annual Financial Audit Report
Received an overall 99% score on our Property/Liability Claims Audit
Approved Longevity Distribution credits of over $257,000 for Property/Liability Program members and
over $252,000 for Workers’ Compensation Program members
Approved 10% rate increase for the Workers’ Compensation Program
Additionally, during the CSDA Annual Conference held in Palm Springs in October, the SDRMA Board
of Directors presented the 2014 Safety Awards. The Earl F. Sayre Excellence in Safety Award was
presented to Property/Liability program members demonstrating a commitment to loss prevention
and public safety including their participation in SDRMA and CSDA safety and governance training
sessions throughout the year. The large member category recipient was Rosamond Community
Services District and the small member category recipient was Grizzly Flats Community Services
District. The McMurchie Excellence in Safety Award was presented to the Workers’ Compensation
program members demonstrating a commitment to employee safety and training to reduce workplace
injuries. The large member category recipient was East Valley Water District and the small member
category recipient was Nipomo Community Services District.
SDRMA is also offering a new Safety Specialist Certificate Program with 2 levels; General Safety
Specialist and Supervisor Safety Specialist. The Certificate Program was developed with specific
course criteria for either individual or member agencies with classes focused on loss prevention and
safety training. Once the required criteria is completed, the individual or member agency will receive
recognition with a special Certificate of Completion. The certificate will be valid for two years and can
be renewed. SDRMA will track this information for the member and the member agency will also
receive Credit Incentive Points.
Finally, we greatly appreciate our members’ excellent safety and loss prevention efforts which
are demonstrated by either reduced claims or no claims and their efforts are recognized through
the No Claims Recognition and President’s Special Acknowledgement Award Programs. The No
Claims Recognition is to recognize members with no “paid” claims during the prior program year.
The President’s Special Acknowledgement Award is to recognize members with no “paid” claims
during the prior 5 consecutive program years. For the Property/Liability Program, 406 members
had no claims for the prior year and 275 members had no claims over 5 years. For the Workers’
Compensation Program, 244 members had no paid claims for the prior year and 115 members had
no paid claims over 5 years.
In closing, on behalf of the Board of Directors, thank you for your support and continued participation
in helping make SDRMA the premier risk management program in California!
Board President David Aranda
“Our partnerships with
CSDA, the CSDA Finance
Corporation and the Special
District Leadership Foundation
provide our members access
to valuable services, resources,
education and training
opportunities.”
2013-14
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 3
TABLE OF CONTENTSBOARD PRESIDENT’S MESSAGE
04 About SDRMA
05 Organization Overview
06 Program Overview
08 Member Profile
09 New Members
10 Property/Liability Package Program
12 Liability Program Structure
13 Property Program Structure
14 Workers’ Compensation Program
15 Workers’ Compensation Program Structure
16 Claims Management and Administration
18 Health Benefits Program
19 MemberPlus ServicesTM
20 Financial Information - Balance Sheet & Income Statement
22 Property/Liability Combined Ratios
23 Workers’ Compensation Combined Ratios
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ABOUT SDRMA
NOT-FOR-PROFIT PUBLIC AGENCY
SDRMA is a not-for-profit public agency formed in 1986, under California Government
Code Section 6500 et seq., and was established to provide property, liability, and workers’
compensation coverage protection and risk management services statewide exclusively for
California public agencies. SDRMA’s primary objective is to serve as a single comprehensive
resource providing quality coverage protection, risk management services, claims
management, as well as a world-class safety and loss prevention program tailored to meet the
complex needs of public agencies.
SDRMA MISSION
SDRMA’s mission is to provide renewable, efficiently priced risk financing and risk
management services through a financially sound pool to CSDA members, delivered in a
timely, cost-efficient manner, responsive to the needs of our members. SDRMA’s professional
expertise, technical knowledge, and understanding of public agency operations, coupled with
our commitment to responsive, in-house claims management, pro-active loss prevention and
cost containment enables our members to allocate more of their vital resources to providing
essential community programs and services to their constituents.
CAJPA ACCREDITATION WITH EXCELLENCE
In order to measure the effectiveness of its services and programs, SDRMA participates in
the California Association of Joint Powers Authorities (CAJPA) Accreditation Program. Since
2005, SDRMA has been awarded their highest designation, “Accreditation with Excellence”.
The CAJPA Accreditation program has been operating since 1989 and reviews the
organizational structure and activities of a joint powers authority (JPA), comparing the JPA
with standards adopted by the Association believed to be advantageous to the preservation
and performance of the individual JPA and JPAs in California as a whole.
Compliance with the standards results in a status of “Full Accreditation” or “Accreditation
With Excellence” for a three-year period. The process included a detailed review by
independent consultants applying a detailed set of standards that have been accepted by the
industry as “best practices.” The consultant prepares a detailed report that is reviewed by
the CAJPA Accreditation Committee. The purpose of the program is to promote professional
management and fiscally sound practices, provide industry standards, assure governing
boards of management’s compliance with accepted standards, and maintain a self-regulating
process that is ultimately less expensive and more meaningful than State or Federal
regulation.
JPAs such as SDRMA operate comprehensive risk management programs and provide
important services for member entities including loss prevention services. CAJPA
Accreditation is a measure of how well a pool is being managed and is evidence of the JPA
Board’s commitment to high standards.
The Accreditation Standards
span 24 pages including nine
broad categories of review
including:
Governing Documents and
Administrative Contracts
Government Rules
Insurance and Coverages
Accounting and Finance
Investment of Funds
Funding and Actuarial
Standards
Risk Control
Claims Management
Operations and
Administrative Management
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 5
Muril Clift Jean Bracy Terry Burkhart Ed GrayDavid Aranda Sandy Seifert-Raffelson Michael Scheafer
ORGANIZATION OVERVIEWABOUT SDRMA
SDRMA MEMBERS
SDRMA BOARD OF DIRECTORS
Fulfills the mission of the Authority by establishing policies
and providing general direction and oversight for the benefit
of our members.
David Aranda, President
Muril Clift, Vice President
Cambria Community Services District
Jean Bracy, Secretary
Mojave Desert Air Quality Management District
Terry Burkhart, Director
Bighorn-Desert View Water Agency
Ed Gray, Director
Chino Valley Independent Fire District
Sandy Seifert-Raffelson, Director
Herlong Public Utility District
Michael Scheafer, Director
Costa Mesa Sanitary District
CHIEF EXECUTIVE OFFICER
Develops programs for the benefit of the pool. Manages the
Authority in accordance with Board policy and direction.
Maintains administrative and operational responsibilities.
Gregory S. Hall, ARM
CLAIMS MANAGEMENT LOSS PREVENTION
Manages entire claims process. Assists
members in reducing and controlling
losses, provides proactive safety
training, member safety inspections.
Dennis Timoney, ARM
Chief Risk Officer
Debbie Yokota
Claims Manager
Karen Lafferty, AIC
Senior Claims Examiner
Jennifer Ng
Claims Assistant
CONTRACT SERVICES
Third Party Administrator – Workers’
Compensation
Safety Consultants
CONTRACT SERVICES
Auditors
Actuaries
ADMINISTRATION
Manages the Authority’s business
operations and ensures continuity and
efficiency in the Authority’s programs
and operations. Coordinates coverages
with carriers. Manages human
resource programs.
C. Paul Frydendal, CPA
Chief Operating Officer
Alana Batzianis
HR/Health Benefits Specialist II
FINANCE
Manages the Authority’s funds and
financial activities. Ensures financial
integrity and accountability.
Monitors budgeted expenses with
actual expenditures.
Nicole Rushing
Finance Manager
Shawn Vang
Accountant
Rajnish Raj
Accounting Technician
MEMBER SERVICES
Serves as the primary contact between
the Authority and its members.
Ensures effective communication and
information for members. Provides
administration and marketing for
member growth and retention.
Ellen Doughty
Chief Member Services Officer
Wendy Tucker
Senior Member Services Specialist
Rachel Saldaña
Administrative Assistant
CONSULTANTS
General Counsel
Defense Counsel
Coverage Counsel
Reinsurance Brokers
CONTRACT SERVICES
Investment Managers
CONTRACT SERVICES
IT Consultants
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org6 | 2013-14 Annual Report
PROGRAM OVERVIEW
SDRMA is a Joint Powers Authority (JPA) with over 28 years of trusted experience. SDRMA
has a proven reputation for stable, competitive rates, actuarial based fiscal management,
and sound underwriting practices. Our goal is to establish a long-term partnership with our
members to postively impact the overall cost of claims and risk management by providing
member focused services and safety training. Members can annually reduce their future
year premiums up to 15% for completion of SDRMA approved risk management and
training programs.
A TRUSTED COMMITMENT TO OUR MEMBERS
Reflecting the Values of Our Members: SDRMA is committed to conducting
business on behalf of our members by doing the right thing in the right way and at
the right time based on the highest professional standards and integrity.
Maximizing Coverage and Minimizing Risk: Since formation, SDRMA has successfully
met its stated mission by working with and on behalf of its members to develop
programs and coverages that provide maximum protection and minimize losses.
Protecting Member’s Assets: SDRMA protects its members by identifying their
exposures, assessing their risks and recommending the optimal deductible and
coverage limits. We aggressively manage and defend claims for damages and
maintain a zero tolerance for fraud.
Covering our Members: Coverage documents are broad form manuscript policies
written on an “occurrence form” to ensure the highest level of coverage and
maximum protection of assets for governmental entities providing municipal
services.
Managing our Financial Responsibility: SDRMA’s expenditures on operations,
claims, excess coverages and other aspects of the financial strategy are continually
monitored and evaluated to ensure a high ranking and ability to surpass industry
benchmarks, which results in consistently lower rates for our members.
YEARS OF
Over
EXPERIENCE
28
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 7
PROGRAM OVERVIEW
Maintaining a Fiscally Sound Pool: SDRMA’s combined ratios are significantly
below the industry average. This consistent performance allows SDRMA to maintain
a fiscally sound pool, as well as provide rates that are on average 15% below the
commercial marketplace.
Providing Confidence in our Programs: SDRMA’s Board of Directors has an
established policy of maintaining an actuarial confidence level on an undiscounted
basis of 90% for Property/Liability and 85% for Workers’ Compensation. Currently,
both our Property/Liability and Workers’ Compensation confidence levels exceed
95%. The actuarial industry average is 75% - 85%.
A seven-member Board of Directors govern SDRMA and possess a firsthand
understanding of the complex issues of operating municipal services. Elected from
within the SDRMA’s program membership the Board establishes policy, direction
and the vision of the organization. Board members are directors or managers of
member agencies.
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org8 | 2013-14 Annual Report
MEMBER PROFILE
A PROPERTY/LIABILITY, WORKERS’ COMPENSATION AND
HEALTH BENEFITS PROGRAM FOR PUBLIC AGENCIES
SDRMA members provide a wide variety of public services ranging from air quality
management to wastewater collection and treatment, as well as municipal services. The
diversity of services and risk exposure is beneficial for obtaining the lowest reinsurance cost
and in providing stable rates.
Property/Liability Members 478
Workers’ Compensation Members 404
Health Benefit Members 105
2013-14 Program Members PLP WCP HBP
Air Pollution Control / Air Quality Management 11 11 2
Airport Districts 3 6 0
Ambulance / Emergency Services / Life Support 0 1 0
Animal Services 2 1 0
Cemetery 19 26 7
Children Services 1 2 1
Community Services Districts 128 90 15
Economic Development Commission 1 1 1
Emergency / Safety Communications 4 3 1
Fire Protection 17 20 1
Flood Control / Levee / Reclamation / Drainage 19 8 1
Harbor / Port 2 5 0
Healthcare / Medical Services / In Home Support 7 5 5
Housing Authority 2 1 0
Irrigation 8 13 1
JPA 19 16 5
Library 10 10 2
Local Agency Formation Commission 19 12 4
Memorial 11 6 0
Municipal Improvement / Resort Improvement 5 3 1
Municipalities 1 4 18
Pest Control / Mosquito Abatement / Mosquito Vector Control 20 11 7
Police Protection 1 1 0
Public Utility 16 14 4
Recreation and Park 15 8 1
Resource Conservation 48 40 6
Sanitary / Sewer / Wastewater 25 18 8
Solid Waste / Waste Management 9 6 2
Transit / Transportation 3 5 5
Water 52 57 7
Totals 478 404 105
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 9
MEMBER PROFILE NEW MEMBERS
NEW MEMBERS
PROPERTY/LIABILITY PROGRAM
Bell Canyon Community Services District
Bethel Island Municipal Improvement District
Buckingham Park Water District
Dixon Watershed Real Property Acquisition JPA
Gold Ridge Resource Conservation District
Imperial Valley Resource Management Authority
Lava Beds/Butte Valley Resource Conservation District
South Placer Municipal Utility District
South Santa Clara Valley Memorial Special District
Special District Risk Management Authority
WORKERS’ COMPENSATION PROGRAM
Alpaugh Community Services District
Exeter Veterans Memorial District
Friant Water Authority
Heartland Communications Facility Authority
Igo-Ono Community Services District
Lower Lake County Waterworks District No. 1
Murphys Cemetery District
Pine Cove Water District
PROPERTY/LIABILITY AND WORKERS’ COMPENSATION
El Camino Irrigation District
Midway City Sanitary District
Mountain House Community Services District
Northern Rural Training and Employment Consortium
Orange County Cemetery District
West Contra Costa Transportation Advisory Committee
HEALTH BENEFITS PROGRAM
Bear Valley Water District
Delano Mosquito Abatement District
Grizzly Lake Community Services District
Groveland Community Services District
Hidden Valley Lake Community Services District
Kern County Local Agency Formation Commission
Lompico County Cemetery District
Northern Rural Training and Employment Consortium
Rodeo Sanitary District
San Miguel Community Services District
Santa Maria Valley Water Conservation District
Susanville Sanitary District
Sutter-Yuba Mosquito Vector Control District
Washington Colony Cemetery District
44
Membership in our programs
continues to grow. We believe
this is a reflection of our quality of
service and programs, member
confidence and competitive rates.
We extend a warm welcome to
the 44 new members that joined
in 2013-14.
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org10 | 2013-14 Annual Report
PROPERTY/LIABILITY PACKAGE PROGRAM
SDRMA offers a straightforward uncomplicated program. Coverage documents are broad
form manuscript policies written on an “occurrence form” to ensure the highest level of
coverage and maximum protection of assets for governmental entities providing municipal
services. Our programs have a proven reputation for stable, competitive rates, actuarially
based fiscal management, and sound underwriting practices. Responsive, in-house claims
management and cost containment, combined with a tailored safety and loss prevention,
provides members an unequaled risk management program.
PROPERTY/LIABILITY PACKAGE PROGRAM COVERAGES:
General Liability
Coverage for claims and losses arising from third-party personal injury, bodily injury and
property damages. Coverage includes: subsidence (associated with main leaks and
breaks), sudden & accidental release of chlorine, water & wastewater as a completed
product (not pollution), failure to supply (except for administrative acts), sewer overflow/
backups, hazardous material loading/unloading and volunteer/employees.
Auto Liability
Auto liability coverage protects members from lawsuits for bodily injury and property
damage to the public arising out of ownership, maintenance or use of a covered vehicle.
Coverage includes: owned vehicles, non-owned and hired vehicles and uninsured/
underinsured motorists.
Auto Physical Damage
Auto physical damage (comprehensive and collision) provides protection for damage
or loss to a member’s owned vehicle. Comprehensive coverage includes: fire, theft,
vandalism, windstorm, hail, flood, glass breakage, damage caused by riot or civil
commotion and damage from hitting or being hit by birds and animals. Collision coverage
provides coverage for repair or replacement for like kind, type and condition based on
actual cash value.
Public Officials Errors and Omissions
Coverage for public officials’ and directors’ “wrongful acts”, alleged or actual negligence,
errors or omissions, breach of duty, misfeasance, malfeasance, nonfeasance and
defamation.
Elected Officials Personal Liability
This highly specialized unique coverage protects elected and/or appointed officials from
claims and settlements arising outside the course and scope of their duties. Coverage
includes invasion of privacy, libel, slander, defamation of character, discrimination, false
arrest and malicious protection.
STRAIGHTFORWARD
UNCOMPLICATED
PROGRAM
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 11
Employment Practices Liability
Coverage for claims and losses arising from “wrongful” employment practices. Coverage
includes wrongful termination, sexual harassment and discrimination.
Employment Benefits Liability
Coverage for claims and settlements resulting from the negligent administration of
employee benefit plans.
Employment and Officials Fidelity Blanket Bond
Coverage protection for member losses resulting from fraudulent or dishonest acts
committed by employees, volunteers or board members. Coverage includes: larceny,
theft, embezzlement, forgery and wrongful misappropriation.
Property Coverage
Coverage provided for the replacement cost value of reported buildings and contents.
Additional extensions provided for accounts receivable, builders’ risk, business
interruption, commandeered property, cost of construction, debris removal, electronic
data processing (items not scheduled) extra expense, fine art (appraised value), flood
coverage (annual aggregate), terrorism, pollution clean-up (related to property loss),
personal property of others and valuable papers. Valuation: Replacement Cost (w/o
depreciation).
Boiler and Machinery
Coverage for the “sudden and accidental” breakdown of mechanical and electrical
machinery. Coverage includes expediting expenses, business income, extra expense,
spoilage, water damage, ammonia contamination, hazardous substances, error in
description and newly acquired property.
Ancillary Coverages
Ancillary coverages are offered on a member-by-member basis (such as: pollution liability
and earthquake).
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org12 | 2013-14 Annual Report
LIABILITY PROGRAM STRUCTURE
An important safeguard and strength of our programs is the use of reinsurance to protect
the membership from catastrophic losses. As a result of the financial strength and
sound financial management of our programs, SDRMA has been able to obtain superior
reinsurance coverage for our membership. Currently, our Liability Program reinsurance
partners Genesis Re and Munich Re are ranked the number one and two reinsurers
worldwide.
Currently, our Liability Program
reinsurance partners are;
Genesis Re (A.M. Best Rating A++
Superior) and Munich Re
(A.M. Best Rating A+ Superior).
SDRMA self-insures the first
$250,000 of each occurrence.
Genesis ReReinsurance Genesis ReReinsurance
Genesis ReReinsurance Genesis ReReinsurance
Genesis ReReinsurance Genesis ReReinsurance
Munich ReReinsurance Munich ReReinsurance
SDRMA Self-Insured Retention
$ 250,000
$ 0 Member Deductible
$ 10,000,000
$ 5,000,000
$ 2,500,000
$ 500,000
$ 250,000
(1) Specific per Occurrence
per Member
(No Annual Aggregate)
General Liability (1) Public Officials E&O (2)
(2) Includes: Employment Practices
Liability, Employee Beneftis
(Annual Aggregate)
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 13
PROPERTY PROGRAM STRUCTURE
Currently, our Property Program reinsurance partner is Public Entity Property Insurance
Program (PEPIP). Formed in 1993 to meet the unique property insurance needs faced
by public entities, they are the largest single property placement in the world.
NOTES: Property Coverage also includes Boiler & Machinery, Contractors Equipment
Schedule, Lease Purchase and Fire Vehicles Scheduled
* The Lexington Insurance Company is the primary carrier for SDRMA’s coverage limits
in the PEPIP program administered by Alliant Insurance Services, Incorporated
INSURED BY: LEXINGTON INSURANCE COMPANY*
(A.M. BEST RATING A EXCELLENT)
$ 1,000,000,000
$ 200,000 SDRMA Self-Insured Retention
$ 1,000 Member Deductible
(misc special deductibles for certain categories)
$ 10,000,000$ 25,000,000
$ 50,000,000
$ 100,000,000
ALL RISK PROPERTY COVERAGE
Real & Personal
Property,
Valuable Papers,
Accounts
Receivable,
Electronic Data
Processing
Business
Interrruption
Rental Income
Domestic
Terrorism (with
additional limits)Extra Expense
Newly Acquired
Property, Course of
Construction,
Increased Cost of
Construction
Flood (including
zones A&V)
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org14 | 2013-14 Annual Report
WORKERS’ COMPENSATION PROGRAM
As California’s trusted risk management advisor, SDRMA provides special districts,
joint powers authorities, cities and other public agencies with comprehensive workers’
compensation coverage. Our Workers’ Compensation Program has a proven reputation
for tremendous stability, competitive rates, actuarially based fiscal management, and
sound underwriting practices. Moreover, our responsive claims management and cost
containment, combined with tailored safety and loss prevention, provide Members an
unrivaled full-service Workers’ Compensation Program.
PROTECTING OUR MEMBERS
Our primary objective is proactive prevention - to control and prevent losses, and to lower
workers’ compensation contributions. Our commitment is to create a safe environment for
your employees - which is why our programs are geared to prevent employee injuries, not
just provide coverage after they occur. Monthly safety and prevention bulletins are sent
directly to all Members and employees.
LOSS CONTROL
Our excellent loss ratio is the direct result of the efforts of our Members and a proactive
loss prevention program. New Members receive a comprehensive on-site safety analysis
by a certified safety officer and are provided a written safety report. We provide our
Members with a safety claims procedure manual and training sessions to assist them
with preliminary claims processing. In addition, if a Member’s Experience Modification
calculations are higher than average, SDRMA takes extra steps to help Members bring
down their Experience Modification Factor (EMOD).
All Workers’ Compensation Programs in California are required by law to provide the
same coverage. The difference is, with an SDRMA Program, you receive superior claims
management and unequaled value-for-value services.
PROVIDING
COVERAGE
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 15
WORKERS’ COMPENSATION PROGRAM STRUCTURE
Statutory
$ 50,000,000
$ 5,000,000
$ 250,000
National Union Fire
Insurance Company
Per Occurrence
(A.M. Best Rating A Excellent)
Ace American Insurance Company
Per Occurrence
(A.M. Best Rating A++ Superior)
Wesco Insurance Company
Per Occurrence
(A.M. Best Rating A Excellent)
CSAC Excess Insurance Authority
SDRMA Self-Insured Retention
$250,000
$0 Member Deductible
Currently, our reinsurance partners, National Union Fire Insurance Company of Pittsburg
A (Excellent), Ace American Insurance Company A+ (Superior), Wesco Insurance
Company A (Excellent) and California State Association of Counties (CSAC) Excess
Insurance Authority provide insurance coverage for the various structured layers of the
Workers’ Compensation Program.
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org16 | 2013-14 Annual Report
CLAIMS MANAGEMENT AND ADMINISTRATION
SDRMA recognizes that claims management is a critical component of a risk management
program. SDRMA takes a pro-active approach to claims management. Responsive claims
management and cost containment, combined with tailored safety and loss prevention,
provides our members unequaled full-service programs.
POSITIVELY IMPACTING CLAIMS COST
We consider claims our product: Our primary program objective is to provide responsive
claims management, cost containment, loss control and prevention services that positively
impacts the overall cost of property/liability coverages.
Claims Philosophy: Our philosophy and established practice is to work with and
on behalf of our members to satisfactorily resolve claims, not only within the self-
insured retention level, but also within the excess insurance layers.
Claims Management: We aggressively manage and defend claims for damages.
SDRMA maintains a zero tolerance for fraud.
Claims Communication: All claims activity is closely communicated and discussed
with our members.
State-of-the-Art Claims Software: SDRMA uses state-of-the-art claims management
software to provide accurate, up-to-date status of each claim, loss run reports and
financial information.
Claims Activity Evaluation: SDRMA member’s loss activity is continually monitored
and evaluated by our claims management professionals. In the event that a
member’s loss activity exceeds the pool average, our claims management team will
develop an action plan to assist members in claims reduction.
Claims Settlement Authority: SDRMA’s Board of Directors and management team
retain ultimate settlement authority and approval of claims within the self-insured
retention. We defend claims aggressively and the Board of Directors has instructed
staff to make every effort to resolve claims to the benefit of our members.
Claims Education: SDRMA believes the key to a successful risk management
program is quality and relevant education. Our members are provided with a
variety of seminars, online and local regional training such as: confined spaces,
employment practices and board member ethics and responsibilities.
Claims Manual: Members are provided with a Claims procedure manual and the
necessary forms.
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 17
RESOLVING
CLAIMS
CLAIMS ARE OUR PRODUCT
Our philosophy and established practice is to work with and on behalf of our members to
satisfactorily resolve claims, not only within the self-insured retention level, but also within
the excess insurance layers.
Property/Liability Claims Management Program: Property/Liability claims are
processed, managed and adjusted “in-house.” SDRMA utilizes state-of-the-art claims
management software and members have online access to claims and loss history
information.
Workers’ Compensation Claims Management Program: Under the direct
supervision of SDRMA’s Chief Risk Officer, we utilize the third-party administrator
expertise of York Risk Services Group, Inc. for our workers’ compensation claims
management. Members have online access to claims and loss history information.
Industry Average Cost Per Workers’ Compensation Indemnity Claim: $86,845
SDRMA Average Cost Per Workers’ Compensation Indemnity Claim: $7,131
Average Cost per Claim
Program Year Workers’ Compensation
(Indemnity only) Property/Liability
2013-14 $7,131 $17,730
2012-13 $15,148 $19,898
2011-12 $16,156 $19,110
2010-11 $24,681 $15,998
2009-10 $20,605 $19,619
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org18 | 2013-14 Annual Report
HEALTH BENEFITS PROGRAM
SDRMA in partnership with California State Association of Counties (CSAC-EIA Health -
current life pool with over 80,000 participants), offers a small group Medical Benefits
Program to public agencies with 250 employees or less. Blue Shield is the network
provider and there are 8 plan offerings; Two HMOs, Platinum PPO, Gold PPO, Silver PPO,
EPO and two High Deductible HSA Compatible Plans. Express Scripts and Blue Shield are
the prescription providers.
SDRMA also offers an Ancillary coverages package including Delta Dental, VSP Vision,
VOYA Financial Life, Long Term Disability (LTD) and an MHN Employee Assistance
Program (EAP). There are several available options for each coverage providing maximum
flexibility and savings.
SDRMA functions as the administrator of the small group program by marketing the
program, enrolling new groups, answering day to day questions, billing (using a third party
TPA, Employee Benefit Specialists - EBS), collecting and remitting the monthly medical
premiums. Since SDRMA only serves as the administrator of the Health Benefits Programs,
there is no liability risk to SDRMA members.
Groups must be public agencies and are not required to participate in other SDRMA
programs.
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 19
HEALTH BENEFITS PROGRAM MEMBERPLUS SERVICESTM
In an effort to help our members prevent and reduce claims, SDRMA provides
Complimentary MemberPlus Services.™ These are just a few of the types of MemberPlus
Services™ provided to our members:
Personalized Online Member Resources – MemberPlus Online™ Portal
State-of-the-Art Online Safety/Compliance Training – TargetSolutions™
Employment Law Legal Hotline
Telephone Triage - Company Nurse (Workers’ Compensation members only)
Discounts for CSDA training including Webinars
Training Workshops (safety, loss prevention)
Safety, Claims Handling and Risk Reduction Training
On-site Loss Control Visits and Risk Analysis
Comprehensive Safety & Risk Management Multimedia Library
Contribution-reduction Credit Incentive Program (CIP)
Occupational Safety & Health Program
Hazard Identification Survey
Claims Policy/Procedure Manual
Monthly Review of Claims Loss Reports
Monthly Safety Management Meeting Materials
Ergonomic Evaluations of Work Areas
Contract Review and Transfer of Risk Analysis
DMV Record Review - EPN Pull Notice Program
Defensive Driver Training Program*
Special Events Liability Assistance*
* Additional fees may apply
ESTABLISHING A
STRATEGIC
PARTNERSHIP
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org20 | 2013-14 Annual Report
FINANCIAL INFORMATION
STATEMENT OF NET POSITION – JUNE 30, 2014 AND 2013
ASSETS 2014 2013
CURRENT ASSETS
Cash and cash equivalents $ 6,192,822 $ 4,984,811
Current investments 1,463,238 4,062,902
Receivables 1,580,708 1,471,569
Prepaid expenses 2,113,318 1,911,500
Total Current Assets 11,350,086 12,430,782
NONCURRENT ASSETS
Investments at market 87,228,462 86,631,364
Note receivable 185,301 265,301
Capital assets:
Land 762,850 762,850
Other capital assets, net 3,921,285 3,846,054
Total Noncurrent Assets 92,097,898 91,505,569
Total Assets $ 103,447,984 $ 103,936,351
LIABILITIES
CURRENT LIABILITIES
Accounts payable 247,458 237,200
Accrued payroll 83,119 80,054
Member payable 510,136 1,096,580
Unearned contributions 4,505,887 3,834,731
Current portion of claim-related liabilities 11,500,000 10,500,000
Total Current Liabilities 16,846,600 15,748,565
NONCURRENT LIABILITIES
Noncurrent portion of claim-related liabilities 33,231,587 32,542,289
Total Noncurrent Liabilities 32,231,587 32,542,289
Total Liabilities $ 50,078,187 $ 48,290,854
NET POSITION
Invested in capital assets, net of related debt 4,684,135 4,608,904
Unrestricted 48,685,662 51,036,593
Total Net Position $ 53,369,797 $ 55,645,497
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 21
2014 2013
OPERATING REVENUES
Members’ contributions $ 27,618,022 $ 25,296,575
Health benefits premiums 22,819,070 22,645,770
Other income 1,037 4,131
Total Operating Revenues 50,438,129 47,946,476
OPERATING EXPENSES
Claims expense 15,317,964 15,652,276
Insurance expense 11,446,847 8,839,506
Health insurance expense 22,340,180 22,074,406
Contract services and CSDA fees 2,215,909 1,932,942
Salaries 1,746,486 1,520,809
General and administrative 929,462 874,888
Depreciation expense 389,394 678,390
Total Operating Expenses 54,386,242 51,573,217
Operating Income (3,948,113) (3,626,741)
OTHER NONOPERATING REVENUES AND EXPENSES
Rental revenue 399,821 391,766
Rental expense (314,910) (269,264)
Net Rental Income (Loss) 84,911 122,502
Investment income 1,484,432 354,577
Gain (Loss) on sale of capital assets 103,070 (21)
Total Nonoperating Income 1,672,413 477,079
Change in Net Position (2,275,700) (3,149,683)
Beginning Net Position 55,645,497 58,795,180
Ending Net Position $ 53,369,797 $ 55,645,497
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION – JUNE 30, 2014 AND 2013
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org Special District Risk Management Authority | 800.537.7790 | www.sdrma.org22 | 2013-14 Annual Report
PROPERTY/LIABILITY COMBINED RATIOS
Combined ratios are a statistical measurement used to evaluate an organization’s
underwriting performance and takes into consideration annual operating costs, including
claims and excess insurance expenditures compared to premiums collected.
SDRMA’s high ranking exceeds industry benchmarks resulting in lower rates for our
members. This graphical illustration demonstrates that SDRMA's combined pool losses are
consistently below the combined ratio of the commercial insurance market.
LOWER RATES FOR
MEMBERS
101%99%101%106%
96%95%
83%
80%
97%
100%
PROPERTY/LIABLITY PROGRAM
COMBINED RATIO TREND ANALYSIS
Industry Standard Combined RatioSDRMA Combined Ratio
Program Year
Co
m
b
i
n
e
d
R
a
t
i
o
P
e
r
c
e
n
t
a
g
e
102%
93%
105%
99%100%97%
Special District Risk Management Authority | 800.537.7790 | www.sdrma.org 2013-14 Annual Report | 23
WORKERS’ COMPENSATION COMBINED RATIOS
Combined ratios are an indicator of the organization’s sound underwriting principles and
skill at mitigating risk. Combined ratios provide a measurement of expenses to premiums
collected - ratios greater than 100% indicate that more is paid out in claims and expenses
than is collected in premiums. Typically the combined ratio’s goal is 90% - 92%.
SDRMA
SURPASSES
INDUSTRY
BENCHMARKS
WORKERS' COMPENSATION PROGRAM
COMBINED RATIO TREND ANALYSIS
WCIRB Industry Average Combined RatioSDRMA Combined Ratio
Co
m
b
i
n
e
d
R
a
t
i
o
P
e
r
c
e
n
t
a
g
e
Program Year
122%
116%
123%
116%117%
73%
85%
101%110%
92%
103%
94%
79%
67%71%
113%
1112 Street, Suite 300Sacramento, California 95814-2865T 916.231.4141T 800.537.7790F 916.231.4111www.sdrma.org
2013-14 ANNUAL REPORT
Maximizing Protection. Minimizing Risk.
www.sdrma.org
Page 1 of 2
RESOLUTION NO. 4291
A RESOLUTION OF THE GOVERNING BODY OF THE
OTAY WATER DISTRICT
FOR THE ELECTION OF DIRECTORS TO THE
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
BOARD OF DIRECTORS
WHEREAS, Special District Risk Management Authority (SDRMA) is
a Joint Powers Authority formed under California Government Code
Section 6500 et seq., for the purpose of providing risk management
and risk financing for California special districts and other local
government agencies; and
WHEREAS, SDRMA’S Sixth Amended and Restated Joint Powers
Agreement specifies SDRMA shall be governed by a seven member Board
of Directors nominated and elected from the members who have
executed the current operative agreement and are participating in a
joint protection program; and
WHEREAS, SDRMA’s Sixth Amended and Restated Joint Powers
Agreement Article 7 – Board of Directors specifies that the
procedures for director elections shall be established by SDRMA’s
Board of Directors; and
WHEREAS, SDRMA’s Board of Directors approved Policy No. 2015-
01 Establishing Guidelines for Director Elections specifies
director qualifications, terms of office and election requirements;
and
Page 2 of 2
WHEREAS, Policy No. 2015-01 specifies that member agencies
desiring to participate in the balloting and election of candidates
to serve on SDRMA’s Board of Directors must be made by resolution
adopted by the member agency’s governing body.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the
Otay Water District selects the following candidates to serve as
Directors on the SDRMA Board of Directors:
(continued)
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 24, 2015
SUBMITTED BY:
Armando Buelna
Communications Officer
PROJECT: DIV. NO. ALL
APPROVED BY:
Mark Watton, General Manager
SUBJECT: Oppose Assembly Bill 115 and Senate Bill 88, Water System
Consolidation
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District’s Board of Directors authorize the Board
President, or his designee, to send letters to legislators and the
governor in opposition to Assembly Bill 115 and Senate Bill 88
relating to Water System Consolidation.
COMMITTEE ACTION:
Legislative matters are normally considered by the Finance,
Administrative and Communications Committee. The request from the
California Special Districts Association to send letters in
opposition to Assembly Bill 115 and Senate Bill 88 was received after
the Committee met on June 16, 2015.
PURPOSE:
To obtain authorization from the Board of Directors for the Board
President, or his designee, to send letters to legislators and the
governor in opposition to Assembly Bill 115 and Senate Bill 88
relating to Water System Consolidation.
ANALYSIS:
Otay Water District maintains a set of legislative policy guidelines
to direct staff and legislative advocates on issues important to the
District. While the guidelines can be used when responding quickly to
proposed legislation, potentially complicated legislation or
sensitive matters are to be presented to the Board directly for
guidance in advance of any position being taken.
Assembly Bill 115 and Senate Bill 88 are being rushed through the
legislative process, however, each is politically complex and both
are highly sensitive.
The proposed legislation would authorize the State Water Resources
Control Board to order consolidation of water districts. The
legislation would grant the Water Board the ability to bypass the
Local Agency Formation Commission’s public review process,
potentially order the extension of service to an area that does not
have access to an adequate supply of safe drinking water, and
potentially impose new unfunded mandates on local agencies. It also
provides no guarantee the State will cover the costs involved with
consolidation, strips away the right of self-determination for local
residents who would be forced into new agencies with no opportunity
to vote, and although framed as a response to the drought, the
legislation has no sunset date and is in no way limited to the
drought state of emergency.
The California Special Districts Association (CSDA), the Association
of California Water Agencies (ACWA), as well as other local
government associations, have asked member agencies to contact their
local legislators asking that they oppose AB 115 and SB 88. They feel
strongly that consolidation of essential local services, such as
water systems, is a highly complex endeavor with a multitude of long-
lasting health, fiscal and legal consequences. The issues under
consideration in AB 115 and SB 88 are too important to be rushed
through the legislative process and ill-conceived alterations to this
area of law could exacerbate, rather than resolve, the plight of
local communities.
The 2015 Legislative Program states, in Governance/Local Autonomy
secton, that it is the District’s policy to oppose legislative
efforts that:
(a) Assume the state legislature is better able to make local
decisions that affect special district governance;
(d) Usurp local control from special districts regarding
decisions involving local special district finance, operations
or governance;
(e) Limit the board of directors’ ability to govern the
district;
(f) Create unfunded local government mandates; and
(g) Create costly, unnecessary or duplicative oversight roles
for the state government of special district affairs.
This action would authorize the District to send a letter to
legislators and the governor in opposition to AB 115 and SB 88.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None
STRATEGIC GOAL:
This action supports the District's goal for providing the best
quality water service to the customers of the Otay Water District.
LEGAL IMPACT:
None.
Attachments: Attachment A – Draft letter in opposition to AB 115
and SB 88 – Water District
Consolidation
Attachment B – Materials from the California Special
Districts Association urging opposition
to AB 15 and SB 88
Attachment C Copies of AB 115 and SB 88
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: June 24, 2015
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 2015 Calendar of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting
calendar for 2015 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2015 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 2015
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 6-24-15.doc
Board of Directors, Workshops
and Committee Meetings
2015
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 7, 2015
February 4, 2015
March 4, 2015
April 1, 2015
May 6, 2015
June 3, 2015
June 24, 2015
August 5, 2015
September 2, 2015
October 7, 2015
November 4, 2015
December 2, 2015
January 21, 2015
February 18, 2015
March 18, 2015
April 15, 2015
May 20, 2015
June 17, 2015
July 15, 2015
August 19, 2015
September 16, 2015
October 21, 2015
November 18, 2015
December 16, 2015
SPECIAL BOARD MEETINGS:
STAFF REPORT
TYPE
MEETING:
Regular Board
MEETING
DATE:
June 24, 2015
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:
Purchase Orders – There were 130 blanket and regular purchase
orders in effect during May with an adjusted total value of
$363,130. In addition, there were 193 Cal-Card transactions
totaling $56,798. By value, Cal-Card represents 13% of all
purchases; blanket orders 42%; and regular PO’s 45%.
Human Resources: Benefits Pre-Renewal Meeting – HR staff met with Alliant, our
benefit Consultant, in preparation for our annual renewal and
benefits open enrollment that is held in October. Alliant
provided information to the District regarding the new 2016
requirement to provide each employee with a benefit summary
statement (similar to a W-2 form). HR will be working with
Finance and IT in preparation for this new requirement.
Recruitments – In response to the drought, San Diego County
Water Authority (SDCWA) developed an Intern program. The
District is currently interviewing temporary employees through
this program to assist with increased workload. In addition,
the District is also working with SDCWA again this year on
their Wastewater Intern program.
New Hires/Promotions – There was one (1) position filled in the
month of June: Senior Utility Worker/Equipment Operator.
2
Safety & Security:
Inspections:
o Successful completion of the annual regulatory Operations
building HMBP inspection conducted by the County of San
Diego.
o Successful completion of the 870-1 Pump Station and
Disinfection Facility fire inspection.
Emergency Preparedness:
o Department emergency Coordinators and Monitors have been
identified. o A review of the Emergency Action and Fire Prevention
Plans was completed with the group.
o Trauma kits were distributed to 5 coordinators.
o Designated evacuation areas were reviewed and updated.
o The San Diego County emergency smart phone application
was shared with staff. The application includes
information on preparing for disasters, making a family
plan, building a kit, emergency maps, shelters, and
recovery sources.
Training:
o Emergency: Staff attended the 2015 InfraGard and Capstone
tabletop exercise “Power Outage” and the “10th Annual
Association of Contingency Planners” workshop.
o Safety: OSHA’s Heat Illness Prevention smartphone
application was sent to field staff for use as part of
the tools used in the prevention of heat illness.
o WebEOC Training Exercise: Staff completed the June
monthly exercise, which consisted of finding the
telephone/contact information for the Navy San Diego base
EOC and submitting an e-mail to Carol Olvera from SDCWA.
INFORMATION TECHNOLOGY AND STRATEGIC PLANNING:
Drought Public Outreach - In support of water conservation
efforts, staff is working with a vendor to develop an Otay
Water District mobile application, similar to the City of
San Diego’s, to report water waste. The mobile application
will allow Otay customers to take photographs of water waste
and provide location information to the District’s
conservation group. The mobile application will be made
available for both iPhone and Android devices, and will also
use GPS functionality to identify the request location. In
addition, the application will also provide useful water
usage and general resource information. We expect to have a
beta version of the application in July of this year.
3
FINANCE:
Water Conservation Update - Customer response to the various
drought communications implemented by the District has been
high. As of June 12th, Customer Service and Water
Conservation staff have received over 600 calls and emails
directly related to the drought. Water waste reports have
increased as well. Since the beginning of June, there have
been more than 60 reports of water waste, which is more than
any other month since the creation of the water waste
reporting system.
SWRCB Reporting – The May 2015 potable water purchases were
26% less than May of 2013. This is due to the 2.5 inches of
rainfall in 2015 as compared to less than .25 inches in 2013
as well as customers reacting to the conservation message.
The state is also requiring new reporting for agricultural
and commercial customers. For the state prison and
Caltrans, the May usage was down only 8% compared to the
2013 usage.
Board of Directors Expenses – Attached is the Board of
Directors Expenses for the 3rd Quarter of Fiscal Year 2015
(FY 2015). Expenses for the quarter totaled $9,346.58 for a
total of $19,988.84 for the first three quarters of FY 2015.
Other Post Employee Benefits (OPEB) Actuarial Study – Staff
has begun the OPEB actuarial study for fiscal Years 2016 and
2017. The District is required to have an actuarial study
of its OPEB plan performed every 2 years. The last OPEB
actuarial valuation was performed in 2013.
Financial Reporting:
o For the eleven months ended May 31, 2015, there are total
revenues of $83,541,363 and total expenses of $81,871,960.
The revenues exceeded expenses by $1,669,403.
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of May 31, 2015 total
$84,122,647 with an average yield to maturity of 0.66%.
The total earnings year-to-date are $506,442.55.
ENGINEERING AND WATER 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, further site
4
investigations and consultation with affected Native American
communities are needed to fully understand the potential impact
to cultural resources and the mitigation and monitoring
required for work to continue. As a result, the pace of this
project will be slowed such that Pipeline Inspection and
Condition Analysis Corporation (PICA) inspection of the lower
12,000 feet of force main and construction of force main
improvements will commence October 2016. (R2116)
SR-11 Potable Water Utility Relocations: This project consists
of two (2) groups of potable water relocations to accommodate
the construction of the future SR-11 right-of-way and connector
ramps. The first group includes 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 and 12-inch mains
and has completed a majority of the work to lower the
District’s 18-inch transmission main to accommodate the
Caltrans freeway retaining wall footings. It is anticipated
that this construction contract will reach substantial
completion in June 2015 (ahead of schedule). The second group
consists of relocating a 6-inch blow off in Otay Mesa Road.
The contractor, TC Construction Co., Inc., completed the blow
off relocation last month and staff is working to close out
TC’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 contractor, Olympus & Associates,
has completed the interior and exterior coating of the 944-2
Reservoir and is preparing to place this reservoir into
service. The contractor has completed the removal of the
existing coating from the interior floor, roof, and walls at
the 458-2 Reservoir. An assessment completed on the interior
of this 48 year old reservoir during the month of May indicated
needed structural repairs to the floor and column bases. The
structural repairs are in progress. It is anticipated that
work to apply the new interior coating at the 458-2 Reservoir
will begin in July 2015. Work on the 944-1 Reservoir is
contingent upon placing the 944-2 Reservoir back into service.
The overall project is behind schedule. The contractor’s
current project schedule indicates an early September 2015
completion. The overall project is within budget. (P2531,
P2532, P2535)
5
Ralph W. Chapman Water Reclamation Facility (RWCWRF) Return
Activated Sludge (RAS) Pumps Replacement Project: This Project
consists of removal and replacement of the existing 5
horsepower (HP) RAS pumps with upgraded 20 HP units. On
January 7, 2015, the Board awarded a construction contract to
Cora Constructors, Inc. Pumps have been ordered and are on-
site. Activities are projected to start in August 2015 now due
to a manufacturer’s delay in pump production. It is
anticipated that the pumps will be replaced August through
October 2015. The project is within budget and still scheduled
to be completed in November 2015. (R2111)
Calavo Basin Sewer System Rehabilitation: This project
consists of removing and replacing approximately 1,200 linear
feet of 8-inch PVC sewer pipeline and construction of 220 feet
of new 8-inch PVC sewer pipeline in the residential streets of
the Calavo Gardens area near Avocado Boulevard. The
contractor, Arrieta Construction, has completed sewer repairs
and CCTV inspection. Remaining work to be completed consists
of surface restoration. The project is on budget and scheduled
to be completed in June 2015. (S2033)
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. The work on the EIR/EIS document for the project
is proceeding. All of the technical reports to support the
EIR/EIS are complete and being reviewed by staff and the State
Department and the EIR/EIS chapters are being written. The
draft document for public review is anticipated to be ready in
late June 2015. (P2451)
850-3 Reservoir Interior Coatings: This project consists of
removing and replacing the interior coatings of the 850-3 3.0
MG Reservoir. On April 1, 2015, the Board awarded a
construction contract to Abhe & Svoboda. The contractor has
erected scaffolding within the reservoir and is completing the
surface blasting of the interior steel. The project is within
budget and scheduled to be completed in August 2015. (P2542)
450-1 Disinfection Facility Rehabilitation: This project
consists of replacing two (2) sodium hypochlorite tanks,
relocating the chlorine feed pumps, installing a new roll-up
door, and constructing a containment area. During the month of
June the contractor has completed foundation work for the
tanks, installation of the roll-up door, and the relocation of
the chlorine feed pumps. The project is within budget and is
anticipated to be substantially complete in early July 2015.
(R2112)
6
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. District Staff is
working on the contract documents for the project, which is
scheduled to go out to bid in mid-July 2015. (P2529 & P2530)
Recycled Water Fire Hydrant Installations: This project
consists of installing several fire hydrants on the recycled
water system for fire suppression. The project includes
meeting Title 22 requirements, obtaining regulatory approval,
establishing protocol, and site selection. A draft engineering
report prepared by fourteen local agencies including Otay Water
District was submitted on June 10, 2015 to the San Diego
Regional Water Quality Board, The San Diego office of the
Division of Drinking Water, and the San Diego County to provide
a framework for approval of the expanded use for recycled
water, including fire suppression. A meeting with these
regulatory agencies was held on June 18, 2015 to discuss the
application. (R2122)
Disposal of Real Estate Properties Declared Surplus by the
Board: The District, through a competitive process based on
qualifications and pricing, secured the real estate brokerage
services of the Norberg Group to support the disposal of six
(6) properties declared surplus by the Board. On March 13,
2015, the District entered into listing agreements with the
Norberg Group for the six (6) properties. The District has
closed escrow for three (3) of the surplus properties which are
located at Steele Canyon Road, Wild Mustang Place, and
Sweetwater Springs Boulevard.
Southwestern Community College: The engineer for Southwestern
College has submitted recycled water plans to tie into the
recycled water supply located in Otay Lakes Road for the
purposes of supplying recycled water to their Central Plant
cooling systems. Additionally, on May 26, 2015 an audit of the
irrigation systems and water use at Southwestern Community
College was performed through the San Diego County Water
Authority’s Water Smart program. Southwestern Community
College will use this information to guide their conservation
efforts.
EastLake County Club: The District received correspondence
from the EastLake Country Club regarding concerns over the
quality of recycled water supplied to the EastLake Country Club
7
Golf Course including salt and chlorine levels. In the
correspondence, the EastLake Country Club requested that the
District enhance the quality of recycled water through blending
with potable water.
In response to the concerns expressed, staff reviewed the
agency testing performed on the source recycled water which
includes recycled water produced by the District’s Ralph W.
Chapman Water Reclamation Facility (RWCWRF) and the City of San
Diego’s South Bay Water Reclamation Plant (SBWRP). Staff
confirmed that the District’s reclamation facility is providing
recycled water that meets the permitted requirements with
respect to Total Dissolved Solids (TDS) and Chlorides. To
investigate concerns expressed over chlorine levels, District
staff also sampled and tested the chlorine level of the
recycled water from a point adjacent to the southern end of the
EastLake Golf Course and found the chlorine levels to be within
the permitted levels. Staff also reviewed the information made
available by the City of San Diego for the recycled water
produced by the SBWRP and supplied to the District. Overall
the City’s reports indicate that the TDS for recycled water
produced by the SBWRP are within the City’s permitted levels.
The City has indicated concerns regarding chloride levels from
the SBWRP. To address this concern, the City of San Diego is
currently constructing a demineralization facility at the SBWRP
which is intended to reduce TDS, chloride, and other salt
concentrations in the final product recycled water supplied to
the District. The City anticipates that the construction of
the demineralization facility will be completed in the spring
of 2016.
Staff has responded to the EastLake Country Club and shared the
results of the District’s review. Staff also noted that under
the present drought conditions and the Governor’s mandated
conservation plan, the District is not in a position to enhance
the quality of recycled water through blending with potable
water as proposed by the EastLake Country Club.
For the month of May 2015, the District sold 4 meters (25 EDUs)
generating $232,861 in revenue. Projection for this period was
12.8 meters (15.3 EDUs), with a budgeted revenue of $140,758.
Total revenue for Fiscal Year 2015 is $3,549,574 against the
annual budget of $1,689,093.
8
The following table summarizes Engineering's project purchases and
Change Orders issued during the period of May 21, 2015 through June
11, 2015 that were within staff’s signatory authority:
Date
Action
Amount
Contractor/
Consultant
Project
5/26/15 P.O. $1,742.68 Pacific
Pipeline Supply
RecPL - 14-Inch,
927 Zone, Force
Main Assessment and
Repair (R2116)
6/2/15 Change
Order $19,879.09
Arrieta
Construction,
Inc.
Calavo Basin Sewer
Rehabilitation,
Phase I (S2033)
Water Operations:
Total number of potable water meters is 49,415.
The May potable water purchases were 2,163.2 acre-feet which is
15.6% below the budget of 2,563.1 acre-feet. The cumulative
purchases through May is 27,976.4 acre-feet which is 1.5% above
the cumulative budget of 27,555.7 acre-feet.
9
The May recycled water purchases and production was 255.6 acre-
feet which is 17.4% below the budget of 309.5 acre-feet. The
cumulative production and purchases through May is 3,894.0
acre-feet which is 12.0% above the cumulative budget of 3,475.5
acre-feet.
Recycled water consumption for the month of May is as follows:
o Total consumption was 344.9 acre-feet or 112,352,592 gallons
and the average daily consumption was 3,624,277 gallons per
day.
o Total recycled water consumption as of May for FY 2015 is
3887.7 acre-feet.
o Total number of recycled water meters is 708.
Wastewater flows for the month of May were as follows:
o Total basin flow, gallons per day: 1,537,003.
o Spring Valley Sanitation District Flow to Metro, gallons per
day: 508,733.
o Total Otay flow, gallons per day: 1,028,270.
o Flow Processed at the Ralph W. Chapman Water Recycling
Facility, gallons per day: 991,842.
o Flow to Metro from Otay Water District was 36,428 gallons
per day.
By the end of May there were 6,092 wastewater EDUs.
Attachment: Board of Directors’ Expense Summary, Third Quarter
3rd Quarter
(1/1/15 - 3/31/15)
YTD
(7/1/14 - 3/31/15)
CROUCHER, GARY 600.00$ 1,600.00$
GONZALEZ, DAVID - 1,000.00
LOPEZ, JOSE 3,145.98 6,618.18
ROBAK, MARK 1,016.08 3,190.30
SMITH, TIM 1,839.62 2,179.94
THOMPSON, MITCHELL 2,744.90 5,400.42
9,346.58$ 19,988.84$
FY2015
REVENUES:
Potable Water Sales $
Recycled Water Sales
Potable Energy Charges
Potable System Charges
Potable MWD & CW A Fixed Charges
Potable Penalties
Total Water Sales
Sewer Charges
Meter Fees
Capacity Fee Revenues
Betterment Fees for Maintenance
Non-Operating Revenues
Tax Revenues
Interest
Transfer from Potable General Fund
Total Revenues $
EXPENSES:
Potable Water Purchases $
Recycled Water Purchases
CWA-Infrastructure Access Charge
CWA-Customer Service 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
Transfer to Sewer General Fund
OPEB Trust
Potable General Fund
Sewer Replacement
Total Expenses $
EXCESS REVENUES(EXPENSE) $
F:/MORPT/FS2015-0515
OT A Y WATER DISTRICT
COMPARATIVE BUDGET SUMMARY
FOR ELEVEN MONTHS ENDED MAY 3 I, 20 I 5
Annual
Budget Actual Budget
45,669,500 $ 40,943,634 $ 40,553,700
8,826,600 8,262,306 7,843,000
2,145,600 1,987,929 1,926,700
12,337,500 11 ,252,638 11 ,216,000
10,936,200 9,964,816 10,043,500
870,300 848,369 774,500
80,785,700 73,259,692 72,357,400
3,007,700 2,741,180 2,738, I 00
51,500 84,349 47,200
1,150,600 1,!30,785 1,054,700
301,800 188,123 301,800
1,947,800 1,748,275 1,756,400
3,763,700 3,767,881 3,726,000
77,400 113,378 71,000
553,800 507,700 507,700
91,640,000 $ 83,54I,363 $ 82,560,300
34,52I,500 $ 3I,224,475 $ 30,819,400
1,601,500 1,233,335 1,428,450
1,90I,400 I,739,601 1,740,600
I,792,200 1,646,036 I,642,200
4,741 ,200 4,324,094 4,341,200
701,400 634,813 634,300
1,800,000 I,665,888 1,650,000
47,059,200 42,468,241 42,256,150
2,838,400 2,816,I43 2,543,900
I9,747,600 I7,813,1 I5 I8,077,400
3,619,800 3,059,475 3,418,174
5,009,200 3,648,364 4,589,098
410,000 I90,42I 375,833
2,538,900 2,327,300 2,327,300
3,530,000 3,235,800 3,235,800
3,270,200 2,997,700 2,997,700
705,000 646,300 646,300
553,800 507,700 507,700
647,100 593,200 593,200
1,583,800 1,451,800 1,451,800
I27,000 I 16,400 116,400
91 ,640,000 $ 81 ,871,960 $ 83,136,755
$ 1,669,403 $ (576,455)
Exhibit A
YTD
Variance Var 0/o
$ 389,934 1.0%
419,306 5.3%
61 ,229 3.2%
36,638 0.3%
(78,684) (0.8%)
73,869 9.5%
902,292 1.2%
3,080 0.1%
37,149 78.7%
76,085 7.2%
(113,677) (37.7%)
(8, 125) (0.5%)
41,881 1.1%
42,378 59.7%
0.0%
$ 981 ,063 I.2%
$ (405,075) (1.3%)
195,I I5 I3.7%
999 0.1%
(3,836) (0.2%)
17,I07 0.4%
(5 I 3) (0.1%)
(15,888) {1.0%2
(212,091) (0.5%)
(272,243) (10.7%)
264,285 1.5%
358,699 10.5%
940,734 20.5%
185,4I2 49.3%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
$ I,264,796 1.5%
$ 2,245,858
6/17/2015 9:32AM
OT A Y WATER DISTRICT
INVESTMENT PORTFOLIO REVIEW
May 31,2015
INVESTMENT OVERVIEW & MARKET STATUS:
The federal funds rate has remained constant now for over 5 years. On December 16, 2008, at the Federal Reserve Board's regular
scheduled meeting, the federal funds rate was lowered from 1.00% to "a target range of between Zero and 0.25%" in response to the
nation's ongoing financial crisis, as well as banking industry pressure to ease credit and stimulate the economy. This marked the ninth
reduction in a row since September 18,2007, when the rate was 5.25%. There have been no further changes made to the federal funds rate
at the Federal Reserve Board's subsequent regular scheduled meetings, the most recent ofwhich was held on April29, 2015. In
determining how long to maintain the current 0 to Yt percent target range for the federal funds rate, they went on to say: "the Committee
will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment
will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and
inflation expectations, and readings on financial and international developments. The Committee anticipates that it will be appropriate to
raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that
inflation will move back to its 2 percent objective over the medium term. "
Despite the large drop in available interest rates, the District's overall effective rate of return at May 31, 2015 was 0.66%, 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 of0.290% for the month of May 2015. Based on our success at maintaining a competitive rate of return on our
portfolio during this extended period of interest rate declines, no changes in investment strategy regarding returns on investment are being
considered at this time. This 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: May 31, 2015
Investment State Limit Ota:y Limit Ota:y Actual
8.01: Treasury Securities 100% 100% 0
8.02: Local Agency Investment Fund (Operations) $50 Million $50 Million $7.6 Million
8.02: Local Agency Investment Fund (Bonds) 100% 100% 0
8.03: Federal Agency Issues 100% 100% 80.51%
8.04: Certificates of Deposit 30% 15% .10%
8.05: Short-Term Commercial Notes 25% 10% 0
8.06: Medium-Term Commercial Debt 30% 10% 0
8.07: Money Market Mutual Funds 20% 10% 0
8.08: San Diego County Pool 100% 100% 9.28%
12.0: Maximum Single Financial Institution 100% 50% 1.09%
Target: Meet or Exceed 100% of LAIF
Ul 0.90 ... c Q)
E 0.80 ... Ul Q) 0.70 >
-= c 0.60
0 c 0.50 ...
:::s ... Q)
a:::
Performance Measure FY-15
Return on Investment
Month
liiLAIF •Otay c Difference
$67,737,270
80.51%
OtayWater District
Investment Portfolio: 05/31/2015
Total Cash and Investments: $84,133,120
$997,255
1.19%
C Banks (Passbook/Checking/CO) •Pools (LAIF & County) CAgencies & Corporate Notes
$15,398,595
18.30%
Investments
Federal Agency Issues-Callable
Federal Agency Issues-Coupon
Certificates of Deposit -Bank
Local Agency Investment Fund (LAIF)
San Diego County Pool
Investments
Cash
Passbook/Checking (not included in yield calculations)
Total Cash and Investments
Total Earnings
Current Year
Average Daily Balance
Effective Rate of Return
Par
Value
59,735,000.00
8,000,000.00
81,784.76
7,590,662.10
7,807,932.62
83,215,379.48
915,470.55 --
84,130,850.03
May 31 Month Ending
53,540.22
86,248,819.80
0.73%
Month End
Portfolio Management
Portfolio Summary
May 31, 2015
Market Book
Value Value
59,734,227.15 59,735,829.49
8,005,590.00 8,001 ,440.46
81,784.76 81,784.76
7,593,574.85 7,590,662.10
7,792,000.00 7,807,932.62
83,207,176.76 83,217,649.43
915,470.55 915,470.55
84,122,64 7.31 84,133,119.98
Fiscal Year To Date
506,442.55
84,101,806.91
0.66%
%of Days to YTM YTM
Portfolio Term Maturity 360 Equiv. 365 Equiv.
71.78 993 747 0.869 0.881
9.62 925 142 0.395 0.400
0.10 730 235 0.030 0.030
9.12 1 1 0.286 0.290
9.38 1 1 0.447 0.453 ---
100.00% 803 550 0.730 0.740
1 1 0.209 0.212 ---
803 550 0.730 0.740
I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on May 7, 2014. The market value
information provide~orporation. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures.
Jose
Reporting period 05/01/2015-05/31/2015
Data Updated: SET_ME8: 06/16/201511:56
Run Oate: 06/1612015 -11:56
!~
Portfolio OTAY
NL! AP
PM (PRF _PM1) 7.3.0
Report Ver. 7.3.5
CUSIP Investment#
Federal Agency Issues-Callable
3134G4PXO
3133EDKF8
3134G4UCO
3135GOXR9
3134G4WJ3
3133EECX6
3134G55T8
3130A25S1
3136G1XZ7
3134G5A47
3133EELR9
3134G55X9
3134G4WH7
3133EEXC9
3134G56A8
3134G56NO
3136G23GO
3130A3MH4
3134G6TJ2
3134G5LH6
3133EECG3
3133EECG3
3134G5PP4
3130A3N59
3133EEYE4
3130A4MF6
3130A4WT5
3136G2GN1
3130A56BO
3130A52G3
2277
2291
2305
2269
2284
2313
2295
2299
2274
2301
2317
2298
2285
2323
2297
2300
2304
2314
2319
2307
2311
2312
2310
2315
2320
2318
2322
2321
2325
2324
Issuer
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Home Loan Mortgage
Fannie Mae
Average
Balance
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Home Loan Mortgage
Federal Home Loan Bank
Federal National Mortage Assoc
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal National Mortage Assoc
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Home Loan Mortgage
Federal Home Loan Bank
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal National Mortage Assoc
Federal Home Loan Bank
Federal Home Loan Bank -------
Subtotal and Average 62,251,994.67
Federal Agency Issues -Coupon
3133EC6F6
3133EC7H1
2258
2260
Federal Farm Credit Bank
Federal Farm Credit Bank
Data Updated: SET _ME8: 06/16/2015 11:56
Run Date: 06/1612015-11:56
Month End
Portfolio Management
Portfolio Details -Investments
May 31, 2015
Purchase
Date
12127/2013
04/29/2014
09/08/2014
06/06/2013
03/19/2014
11/25/2014
06/1212014
06/19/2014
12119/2013
06/30/2014
01/27/2015
06/10/2014
03/20/2014
04/20/2015
06/16/2014
06/26/2014
08/15/2014
12129/2014
04/27/2015
10/30/2014
11/20/2014
11/20/2014
1211212014
12129/2014
04/16/2015
03/30/2015
04/27/2015
04/30/2015
05/04/2015
05/11/2015
12105/2012
12117/2012
Par Value
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
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
59,735,000.00
3,000,000.00
3,000,000.00
Market Value
1,998,760.00
2,000,040.00
2,001,300.00
2,000,080.00
2,000,500.00
1,998,640.00
2,000,300.00
2,000,560.00
2,000,500.00
2,000,100.00
1,997,380.00·
1,997,260.00
2,000,720.00
1,996,500.00
2,000,660.00
1,999,560.00
2,005,520.00
2,005,880.00
1,999,280.00
2,002,000.00
1,032,770.70
2,712,276.45
2,000,340.00
1,993,460.00
1,996,760.00
2,010,980.00
1,995,080.00
1,995,540.00
1,995,680.00
1,995,800.00
59,734,227.15
3,000,000.00
3,001 ,470.00
Stated
Book Value Rate
2,000,000.00
2,000,000.00
2,001,657.27
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
1,999,172.22
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
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
59,735,829.49
3,000,000.00
3,000,000.00
0.500
0.550
0.650
0.550
0.625
0.610
0.700
0.700
0.670
0.650
0.625
0.810
0.900
0.690
1.000
1.000
1.050
1.000
0.875
1.100
1.140
1.140
1.250
1.125
1.000
1.300
1.020
1.150
1.120
1.050
0.350
0.340
S&P
Page 1
YTM Days to Maturity
360 Maturity Date
0.493
0.542
0.570
AA 0.542
0.616
0.602
AA 0.690
392 06/27/2016
424 07/29/2016
424 07/29/2016
463 09/06/2016
476 09/19/2016
543 11/25/2016
560 12112/2016
0.690 567 12119/2016
0.661 567 12119/2016
0.641 578 12130/2016
0.616 606 01/27/2017
0.799 648 03/10/2017
0.888 658 03/20/2017
0.681 675 04/06/2017
0.986 746 06/16/2017
0.986 756 06/26/2017
1.036 806 08/15/2017
0.986 851 09/29/2017
0.863 879 10/27/2017
1.085 882 10/30/2017
1.124 903 11/20/2017
1.124 903 11/20/2017
1.233 925 1211212017
1.110 942 12129/2017
0.986 960 01/16/2018
1.282 1,032 03/29/2018
1.006 1,061 04/27/2018
1.134 1,064 04/30/2018
AA 1.105 1,068 05/04/2018
AA 1.036 1,075 05/11/2018
0.869
AA 0.345
0.335
747
0 06/01/2015
77 08/17/2015
Portfolio OT A Y
NL! AP
PM (PRF _PM2) 7.3.0
Report Ver. 7.3.5
Average
CUSIP Investment# Issuer Balance
Federal Agency Issues -Coupon
3135GOYE7 2286 Federal National Mortage Assoc
Subtotal and Average
Certificates of Deposit-Bank
2050003183-6 2283 California Bank & Trust
Subtotal and Average
Local Agency Investment Fund (LAIF)
LAIF 9001 STATE OF CALIFORNIA
LAIF BABS 2010 9012 STATE OF CALIFORNIA
Subtotal and Average
San Diego County Pool
SD COUNTY POOL 9007 San Diego County
Subtotal and Average
Total and Average
Data Updated: SET_MEB: 06/16/201511 :56
Run Date: 0611612015 -11:56
8,001,485.88
81,784.76
4,003,565.33
9,049,868.10
86,248,819.80
Month End
Portfolio Management
Portfolio Details -Investments
May 31, 2015
Purchase
Date Par Value Market Value
04/01/2014 2,000,000.00 2,004,120.00
8,000,000.00 8,005,590.00
01/22/2014 81,784.76 81,784.76
81,784.76 81,784.76
7,590,662.10 7,593,574.85
07/01/2014 0.00 0.00
7,590,662.10 7,593,57 4.85
7,807,932.62 7,792,000.00
7,807,932.62 7,792,000.00
83,215,379.48 83,207,176.76
Book Value
2,001,440.46
8,001,440.46
81,784.76
81,784.76
7,590,662.10
0.00
7,590,662.10
7,807,932.62
7,807,932.62
83,217,649.43
Stated
Rate
0.625
0.030
0.290
0.267
0.453
Page 2
YTM Daysto Maturity
S&P 360 Maturity Date
0.558 452 08/26/2016 ----------------0.395 142
0.030 235 01/22/2016 ----------------
0.030 235
0.286
0.263 ----------------0.286
0.447 ----------------0.447
0.730 550
Portfolio OT A Y
NL! AP
PM (PRF _PM2) 7.3.0
CUSIP Investment# Issuer
Union Bank
UNION MONEY 9002 STATE OF CALIFORNIA
PEITYCASH 9003 STATE OF CALIFORNIA
UNION OPERATING 9004 STATE OF CALIFORNIA
PAYROLL 9005 STATE OF CALIFORNIA
RESERVE-10 COPS 9010 STATE OF CALIFORNIA
RESERVE-10 BABS 9011 STATE OF CALIFORNIA
UBNA-2010 BOND 9013 STATE OF CALIFORNIA
UBNA-FLEX ACCT 9014 STATE OF CALIFORNIA
Average Balance
Total Cash and Investments
Data Updated: SET _ME8: 06/16/2015 11:56
Run Date: 06/1612015-11:56
Average
Balance
0.00
86,248,819.80
Month End
Portfolio Management
Portfolio Details -Cash
May 31, 2015
Purchase
Date Par Value
10,004.60
2,950.00
773,388.89
07/01/2014 27,891.35
12,815.42
34,266.96
07/01/2014 0.00
07/01/2014 54,153.33
84,130,850.03
Market Value Book Value
10,004.60 10,004.60
2,950.00 2,950.00
773,388.89 773,388.89
27,891.35 27,891 .35
12,815.42 12,815.42
34,266.96 34,266.96
0.00 0.00
54,153.33 54,153.33
84,122,647.31 84,133,119.98
Stated
Rate S&P
0.010
0.250
0.010
0.010
Page 3
YTM Daysto
360 Maturity
0.010
0.000
0.247
0.000
0.010
0.010
0.000
0.000
0.730 550
Portfolio OT A Y
NL!AP
PM (PRF _PM2) 7.3.0
CUSIP Investment #
Fund: Treasury Fund
LA IF
UNION MONEY
PETrY CASH
9001
9002
9003
UNION OPERATING 9004
PAYROLL 9005
SO COUNTY POOL 9007
RESERVE-10 COPS 9010
RESERVE-10 BABS 9011
LAIF BABS 2010 9012
UBNA-2010 BOND 9013
UBNA-FLEX ACCT 9014
3133EC6F6 2258
3133EC7H1 2260
3135GOXR9
3136G1XZ7
3134G4PXO
2050003183-6
3134G4WJ3
3134G4WH7
3135GOYE7
3133EDKF8
3134G55T8
3134G56A8
3134G55X9
3130A25S1
3134G56NO
3134G5A47
3136G23GO
3134G4UCO
3134G5LH6
2269
2274
2277
2283
2284
2285
2286
2291
2295
2297
2298
2299
2300
2301
2304
2305
2307
Fund
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
Data Updated: SET _ME8: 06/16/2015 11 :56
Run Date: 06/16/2015-11:56
Investment
Class
Fair Value
Amortized
Amortized
Amortized
Amortized
Fair Value
Amortized
Amortized
Fair Value
Amortized
Amortized
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
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
Fair Value
Maturity
Date
06/01/2015
08/17/2015
09/06/2016
12/19/2016
06/27/2016
01/22/2016
09/19/2016
03/20/2017
08/26/2016
07/29/2016
12/12/2016
06/16/2017
03/10/2017
12/19/2016
06/26/2017
12/30/2016
08/15/2017
07/29/2016
10/30/2017
Month End
GASB 31 Compliance Detail
Sorted by Fund -Fund
May 1, 2015-May 31, 2015
Beginning
Invested Value
4,792,500.41
221,006.98
2,950.00
598,740.18
27,891.35
11,302,000.00
6,944.42
18,848.16
0.00
0.00
17,679.00
3,000,540.00
3,001 ,950.00
1,998,080.00
2,001 ,020.00
1,998,580.00
81,784.76
2,001 ,300.00
2,001 ,880.00
2,004,200.00
2,000,080.00
2,001 '140.00
2,001,940.00
1,997,820.00
2,001 ,460.00
1 ,999,180.00
2,000,780.00
2,004,440.00
2,002,940.00
2,001,600.00
Purchase
of Principal
~00
~00
~00
~00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
~00
~00
0.00
~00
~00
~00
~00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Addition
to Principal
6,200,000.00
8,113,980.95
0.00
1,675,537.74
0.00
0.00
5,871 .00
15,418.80
0.00
0.00
50,000.00
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
Redemption
of Principal
3,400,000.00
8,324,983.33
0.00
1,500,889.03
0.00
3,500,000.00
0.00
0.00
0.00
0.00
13,525.67
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
Adjustment in Value
Amortization
Adjustment
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
~00
0.00
0.00
0.00
~00
~00
0.00
~00
~00
~00
~00
~00
~00
~00
~00
~00
0.00
~00
Change in
Market Value
1,074.44
0.00
0.00
0.00
0.00
-10,000.00
0.00
0.00
0.00
0.00
0.00
-540.00
-480.00
2,000.00
-520.00
180.00
0.00
-800.00
-1,160.00
-80.00
-40.00
-840.00
-1,280.00
-560.00
-900.00
380.00
-680.00
1,080.00
-1,640.00
400.00
Ending
Invested Value
7,593,574.85
10,004.60
2,950.00
773,388.89
27,891.35
7,792,000.00
12,815.42
34,266.96
0.00
0.00
54,153.33
3,000,000.00
3,001,470.00
2,000,080.00
2,000,500.00
1,998,760.00
81,784.76
2,000,500.00
2,000,720.00
2,004,120.00
2,000,040.00
2,000,300.00
2,000,660.00
1,997,260.00
2,000,560.00
1,999,560.00
2,000,100.00
2,005,520.00
2,001,300.00
2,002,000.00
Portfolio OTAY
NL! AP
GD (PRF _GO) 7.1.1
Report Ver. 7.3.5
CUSIP Investment# Fund
Fund: Treasury Fund
3136G2A23 2308 99
3130A3FY5 2309 99
3134G5PP4 2310 99
3133EECG3 2311 99
3133EECG3 2312 99
3133EECX6 2313 99
3130A3MH4 2314 99
3130A3N59 2315 99
3133EELR9 2317 99
3130A4MF6 2318 99
3134G6TJ2 2319 99
3133EEYE4 2320 99
3136G2GN1 2321 99
3130A4WT5 2322 99
3133EEXC9 2323 99
3130A52G3 2324 99
3130A5680 2325 99
Data Updated: SET _ME8: 06/16/2015 11 :56
Run Date: 06/16/2015-11:56
Investment
Class
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Fair Value
Month End
GASB 31 Compliance Detail
Sorted by Fund -Fund
Maturity Beginning Purchase
Date Invested Value of Principal
11/28/2017 2,001 ,040.00 0.00
11/25/2016 1,997,300.00 0.00
12/12/2017 2,000,420.00 0.00
11/20/2017 1,032,595.60 0.00
11/20/2017 2,711,816.60 0.00
11/25/2016 1,998,920.00 0.00
09/29/2017 2,006,660.00 0.00
12/29/2017 1 ,993,160.00 0.00
01/27/2017 1,992,500.00 0.00
03/29/2018 2,010,440.00 0.00
10/27/2017 1,998,940.00 0.00
01116/2018 1,995,740.00 0.00
04/30/2018 1,995,640.00 0.00
04/27/2018 1,994,380.00 0.00
04/06/2017 1,996,960.00 0.00
05/11/2018 0.00 2,000,000.00
05/04/2018 0.00 2,000,000.00
Subtotal 84,815,787.46 4,000,000.00
Total 84,815,787.46 4,000,000.00
Adjustment in Value
Addition Redemption Amortization Change in
to Principal of Principal Adjustment Market Value
0.00 2,000,000.00 0.00 -1,040.00
0.00 2,000,000.00 0.00 2,700.00
0.00 0.00 0.00 -80.00
0.00 0.00 0.00 175.10
0.00 0.00 0.00 459.85
0.00 0.00 0.00 -280.00
0.00 0.00 0.00 -780.00
0.00 0.00 0.00 300.00
0.00 0.00 0.00 4,880.00
0.00 0.00 0.00 540.00
0.00 0.00 0.00 340.00
0.00 0.00 0.00 1,020.00
0.00 0.00 0.00 -100.00
0.00 0.00 0.00 700.00
0.00 0.00 0.00 -460.00
0.00 0.00 0.00 -4,200.00
0.00 0.00 0.00 -4,320.00
16,060,808.49 20,739,398.03 0.00 -14,550.61
16,060,808.49 20,739,398.03 0.00 -14,550.61
Page 2
Ending
Invested Value
0.00
0.00
2,000,340.00
1,032,770.70
2, 712,276.45
1,998,640.00
2,005,880.00
1,993,460.00
1,997,380.00
2,010,980.00
1,999,280.00
1,996,760.00
1,995,540.00
1,995,080.00
1,996,500.00
1,995,800.00
1,995,680.00
84,122,647.31
84,122,647.31
Portfolio OTAY
NL! AP
GD(PRF_GD)7.1.1
Report Ver. 7.3.5
Month End
Duration Report
Sorted by Investment Type -Investment Type
Through 05/31/2015
Security ID
3135GOXR9
3136G1XZ7
3134G4PXO
3134G4WJ3
3134G4WH7
3133EDKF8
3134G55T8
3134G56A8
3134G55X9
3130A2551
3134G56NO
3134G5A47
3136G23GO
3134G4UCO
3134G5LH6
3134G5PP4
3133EECG3
3133EECG3
3133EECX6
3130A3MH4
3130A3N59
3133EELR9
3130A4MF6
3134G6TJ2
3133EEYE4
3136G2GN1
3130A4WT5
3133EEXC9
3130A52G3
Investment# Fund
2269
2274
2277
2284
2285
2291
2295
2297
2298
2299
2300
2301
2304
2305
2307
2310
2311
2312
2313
2314
2315
2317
2318
2319
2320
2321
2322
2323
2324
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
Issuer
Fannie Mae
Federal National Mortage Assoc
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal National Mortage Assoc
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal National Mortage Assoc
Federal Home Loan Bank
Federal Farm Credit Bank
Federal Home Loan Bank
Data Updated: SET _ME8: 06/16/2015 11 :56
Run Date: 0611612015 -11:56
Investment
Class
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Book
Value
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
2,000,000.00
2,001 ,657.27
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
1,999,172.22
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
Page 1
Par
Value
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
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
Market Current
Value Rate
2,000,080.00 .5500000
2,000,500.00 .6700000
1,998,760.00 .5000000
2,000,500.00 .6250000
2,000,720.00 .9000000
2,000,040.00 .5500000
2,000,300.00 .7000000
2,000,660.00 1.000000
1,997,260.00 .8100000
2,000,560.00 .7000000
1,999,560.00 1.000000
2,000,100.00 .6500000
2,005,520.00 1.050000
2,001 ,300.00 .6500000
2,002,000.00 1.100000
2,000,340.00 1.250000
1,032,770.70 1.140000
2,712,276.45 1.140000
1,998,640.00 .6100000
2,005,880.00 1.000000
1,993,460.00 1.125000
1,997,380.00 .6250000
2,010,980.00 1.300000
1,999,280.00 .8750000
1,996,760.00 1.000000
1,995,540.00 1.150000
1,995,080.00 1.020000
1,996,500.00 .6900000
1,995,800.00 1.050000
YTM Current
360 Yield
0.542
0.661
0.493
0.616
0.888
0.542
0.690
0.986
0.799
0.690
0.986
0.641
1.036
0.570
1.085
1.233
1.124
1.124
0.602
0.986
1.110
0.616
1.282
0.863
0.986
1.134
1.006
0.681
1.036
0.542
0.654
0.558
0.606
0.880
0.548
0.690
0.984
0.888
0.682
1.011
0.647
0.923
0.594
1.058
1.243
1.029
1.029
0.656
0.872
1.254
0.705
1.102
0.890
1.063
1.228
1.106
0.786
1.123
Maturity/ Modified
Call Date Duration
09/06/2016
12/19/2016
06/27/2016
09/19/2016
03/20/2017
07/29/2016
12/12/2016
06/16/2017
03/10/2017
12/19/2016
06/26/2017
12/30/2016
08/15/2017
07/29/2016
10/30/2017
12/12/2017
11/20/2017
11/20/2017
11/25/2016
09/29/2017
12/29/2017
01/27/2017
03/29/2018
10/27/2017
01/16/2018
04/30/2018
04/27/2018
04/06/2017
05/11 /2018
1.256
1.535
1.065
1.291
1.781
1.154
1.515
2.006
1.750
1.534
2.034
1.565
2.169
1.153
2.373
2.469
2.429
2.429
1.473
2.286
2.520
1.640
2.765
2.372
2.580
2.853
2.851
1.829
2.889
Portfolio OTAY
NL! AP
DU (PRF _DU) 7.1.1
Report Ver. 7.3.5
Month End
Duration Report
Sorted by Investment Type -Investment Type
Through 05/31/2015
Investment Book Par
Securi~ ID Investment# Fund Issuer Class Value Value
3130A56BO 2325 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00
3133EC6F6 2258 99 Federal Farm Credit Bank Fair 3,000,000.00 3,000,000.00
3133EC7H1 2260 99 Federal Farm Credit Bank Fair 3,000,000.00 3,000,000.00
3135GOYE7 2286 99 Federal National Mortage Assoc Fair 2,001,440.46 2,000,000.00
2050003183-6 2283 99 California Bank & Trust Amort 81,784.76 81,784.76
LA IF 9001 99 STATE OF CALIFORNIA Fair 7,590,662.10 7,590,662.10
LAIF BABS 2010 9012 99 STATE OF CALIFORNIA Fair 0.00 0.00
SD COUNTY 9007 99 San Diego County Fair 7,807,932.62 7,807,932.62
Report Total 83,217,649.43 83,215,379.48
t = Duration can not be calculated on these investments due to incomplete Market price data.
Data Updated: SET _ME8: 06/16/2015 11 :56
Run Date: 06/16/2015-11:56 Page 2
Market Current YTM
Value Rate 360
1,995,680.00 1.120000 1.105
3,000,000.00 .3500000 0.345
3,001 ,470.00 .3400000 0.335
2,004,120.00 .6250000 0.558
81,784.76 .0300000 0.030
7,593,574.85 .2900000 0.286
0.00 .2670000 0.263
7,792,000.00 .4530000 0.447
83,207' 176.76
Current
Yield
1.195
0.350
0.242
0.458
0.030
0.290
0.267
0.453
0.736
Maturity/ Modified
Call Date Duration
05/04/2018 2.866
06/01/2015 0.000
08/17/2015 0.210
08/26/2016 1.228
01/22/2016 0.640 t
0.000
0.000
0.000
1.482t
Portfolio OTAY
NL! AP
DU (PRF _DU) 7.1.1
Report Ver. 7.3.5
CUSIP Investment #
Issuer: STATE OF CALIFORNIA
Union Bank
Issuer
Percent
of Portfolio
UNION MONEY 9002
UNION OPERATING 9004
RESERVE-10 COPS 9010
RESERVE-10 BABS 9011
UBNA-FLEX ACCT 9014
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
Subtotal and Balance
Local Agency Investment Fund (LAIF)
LA IF 9001 STATE OF CALIFORNIA
Subtotal and Balance
Issuer Subtotal
Issuer: California Bank & Trust
Certificates of Deposit -Bank
Subtotal and Balance
Issuer Subtotal
Issuer: Fannie Mae
Federal Agency Issues-Callable
Subtotal and Balance
Issuer Subtotal
Issuer: Federal Farm Credit Bank
Federal Agency Issues-Callable
Subtotal and Balance
Data Updated: SET _MEB: 06/16/2015 11:56
Run Date: 0611612015-1 1:56
10.111%
0.097%
2.377%
Month End
Activity Report
Sorted By Issuer
May 1, 2015-May 31, 2015
Par Value
Beginning Current Transaction
Balance Rate Date
0.010
0.250
0.010
0.010
894,060.09
0.290 --
4,790,662.10
5,684,722.19
81,784.76
81,784.76
2,000,000.00
2,000,000.00
13,735,000.00
Purchases or
Deposits
8,113,980.95
1,675,537.74
5,871.00
15,418.80
50,000.00
9,860,808.49
6,200,000.00
6,200,000.00
16,060,808.49
0.00
0.00
Par Value
Redemptions or
Withdrawals
8,324,983.33
1 ,500,889.03
0.00
0.00
13,525.67
9,839,398.03
3,400,000.00
3,400,000.00
13,239,398.03
0.00
0.00
Ending
Balance
915,470.55
7,590,662.10
8,506,132.65
81,784.76
81,784.76
2,000,000.00
2,000,000.00
13,735,000.00
Portfolio OTAY
NL! AP
DA (PRF _DA) 7.2.0
Report Ver. 7.3.5
-
Percent
CUSIP Investment# Issuer of Portfolio
Issuer: Federal Farm Credit Bank
Federal Agency Issues -Coupon
Subtotal and Balance
Issuer Subtotal 23.458%
Issuer: Federal Home Loan Bank
Federal Agency Issues-Callable
3130A3FY5 2309 Federal Home Loan Bank
3130A52G3 2324 Federal Home Loan Bank
3130A56BO 2325 Federal Home Loan Bank
Subtotal and Balance
Issuer Subtotal 16.641%
Issuer: Federal Home Loan Mortgage
Federal Agency Issues-Callable
Subtotal and Balance
Issuer Subtotal 28.527%
Issuer: Federal National Mortage Assoc
Federal Agency Issues-Callable
3136G2A23 2308 Federal National Mortage Assoc
Subtotal and Balance
Federal Agency Issues -Coupon
Subtotal and Balance
Issuer Subtotal
Issuer: San Diego County
San Diego County Pool
Data Updated: SET _ME8: 06/16/2015 11 :56
Run Date: 06/16/2015-11:56
9.509%
Month End
Activity Report
May 1, 2015-May 31,2015
Par Value
Beginning Current Transaction
Balance Rate Date
6,000,000.00
19,735,000.00
0.700 05/26/2015
1.050 05/11/2015
1.120 05/04/2015
12,000,000.00
12,000,000.00
24,000,000.00
24,000,000.00
1.200 05/28/2015
8,000,000.00
2,000,000.00
10,000,000.00
Par Value ------
Purchases or Redemptions or
Deposits Withdrawals
0.00 0.00
0.00 2,000,000.00
2,000,000.00 0.00
2,000,000.00 0.00
4,000,000.00 2,000,000.00
4,000,000.00 2,000,000.00
0.00 0.00
0.00 2,000,000.00
0.00 2,000,000.00
0.00 2,000,000.00
Page 2
Ending
Balance
6,000,000.00
19,735,000.00
14,000,000.00
14,000,000.00
24,000,000.00
24,000,000.00
6,000,000.00
2,000,000.00
8,000,000.00
Portfolio OTAY
NL! AP
DA (PRF _DA) 7.2.0
Report Ver. 7.3.5
CUSIP Investment# Issuer
Percent
of Portfolio
Issuer: San Diego County
San Diego County Pool
SO COUNTY POOL 9007 San Diego County
Subtotal and Balance
Issuer Subtotal 9.281%
Total 100.000%
Data Updated: SET _ME8: 06/16/2015 11:56
Run Date: 06/16/2015-11:56
Month End
Activity Report
May 1, 2015-May 31,2015
-------'Par Value
Beginning
Balance
11 ,307,932.62
11,307,932.62
84,809,439.57
Current Transaction
Rate Date
0.453
Purchases or
Deposits
0.00
0.00
0.00
20,060,808.49
Par Value
Redemptions or
Withdrawals
3,500,000.00
3,500,000.00
3,500,000.00
20,739,398.03
Ending
Balance
7,807,932.62
7,807,932.62
84,130,850.03
Page 3
Portfolio OTAY
NLI AP
DA (PRF _DA) 7.2.0
Report Ver. 7.3.5
CUSIP Investment#
Fund: Treasury Fund
LAIF 9001
UNION MONEY 9002
UNION OPERATING 9004
SO COUNTY POOL 9007
RESERVE-10 COPS 9010
RESERVE-10 BASS 9011
3133EC6F6 2258
3133EC7H1 2260
3135GOXR9 2269
3136G1XZ7 2274
3134G4PXO 2277
2050003183-6 2283
3134G4WJ3 2284
3134G4WH7 2285
3135GOYE7 2286
3133EDKF8 2291
3134G55T8 2295
3134G56A8 2297
3134G55X9
3130A25S1
3134G56NO
3134G5A47
3136G23GO
3134G4UCO
3134G5LH6
3136G2A23
3130A3FY5
3134G5PP4
3133EECG3
2298
2299
2300
2301
2304
2305
2307
2308
2309
2310
2311
Fund
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
99
Data Updated: SET _ME8: 06/16/2015 11 :56
Run Date: 06/1612015-11:56
Security
Type
LA1
PA1
PA1
LA3
PA1
PA1
FAG
FAG
MC1
MC1
MC1
BCD
MC1
MC1
FAG
MC1
MC1
MC1
MC1
MC1
MC1
MC1
MC1
MC1
MC1
MC1
MC1
MC1
MC1
Month End
Interest Earnings
Sorted by Fund -Fund
May 1, 2015-May 31, 2015
Yield on Beginning Book Value
Ending
Par Value
Beginning
Book Value
Ending Maturity CurrentAnnualized
7,590,662.10
10,004.60
773,388.89
7,807,932.62
12,815.42
34,266.96
3,000,000.00
3,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
81,784.76
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
2,000,000.00
0.00
0.00
2,000,000.00
1,030,000.00
4,790,662.10
221 ,006.98
598,740.18
11,307,932.62
6,944.42
18,848.16
3,000,000.00
3,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
81,784.76
2,000,000.00
2,000,000.00
2,001,537.57
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
2,001 ,776.21
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,030,000.00
Book Value Date Rate Yield
7,590,662.10
10,004.60
773,388.89
7,807,932.62
12,815.42
34,266.96
3,000,000.00 06/01/2015
3,000,000.00 08/17/2015
2,000,000.00 09/06/2016
2,000,000.00 12/19/2016
2,000,000.00 06/27/2016
81 ,784.76 01/22/2016
2,000,000.00 09/19/2016
2,000,000.00 03/20/2017
2,001,440.46 08/26/2016
2,000,000.00 07/29/2016
2,000,000.00 12/12/2016
2,000,000.00 06/16/2017
2,000,000.00 03/10/2017
2,000,000.00 12/19/2016
2,000,000.00 06/26/2017
2,000,000.00 12/30/2016
2,000,000.00 08/15/2017
2,001 ,657.27 07/29/2016
2,000,000.00 10/30/2017
0.00 11/28/2017
0.00 11/25/2016
2,000,000.00 12/12/2017
1,030,000.00 11/20/2017
0.290
0.010
0.250
0.453
0.010
0.010
0.350
0.340
0.550
0.670
0.500
0.030
0.625
0.900
0.625
0.550
0.700
1.000
0.810
0.700
1.000
0.650
1.050
0.650
1.100
1.200
0.700
1.250
1.140
0.242
0.024
0.929
0.363
0.014
0.014
0.343
0.334
0.540
0.657
0.491
0.031
0.613
0.883
0.556
0.540
0.687
0.981
0.795
0.687
0.981
0.638
1.030
0.567
1.079
1.217
0.710
1.226
1.119
Interest
Earned
986.09
4.57
472.53
3,481.84
0.08
0.22
875.00
850.00
916.66
1,116.67
833.34
2.12
1,041.67
1,500.00
1,041.66
916.67
1,166.66
1,666.67
1,350.00
1,166.67
1,666.67
1,083.34
1,750.00
1,083.34
1,833.33
1,800.00
972.22
2,083.33
978.50
Adjusted Interest Earnings
Amortization/ Adjusted Interest
Accretion Earnings
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
-97.11
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-118.94
0.00
0.00
0.00
0.00
0.00
986.09
4.57
472.53
3,481.84
0.08
0.22
875.00
850.00
916.66
1 '116.67
833.34
2.12
1,041.67
1,500.00
944.55
916.67
1,166.66
1,666.67
1,350.00
1,166.67
1,666.67
1,083.34
1,750.00
964.40
1,833.33
1,800.00
972.22
2,083.33
978.50
Portfolio OTAY
NL!AP
IE (PRF _IE) 7.2.0
Report Ver. 7.3.5
CUSIP Investment# Fund
Fund: Treasury Fund
3133EECG3 2312 99
3133EECX6 2313 99
3130A3MH4 2314 99
3130A3N59 2315 99
3133EELR9 2317 99
3130A4MF6 2318 99
3134G6TJ2 2319 99
3133EEYE4 2320 99
3136G2GN1 2321 99
3130A4WT5 2322 99
3133EEXC9 2323 99
3130A52G3 2324 99
3130A5680 2325 99
Data Updated: SET _ME8: 06/16/2015 11:56
Run Date: 06/1612015-11:56
Security Ending
Type Par Value
MC1 2,705,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
MC1 2,000,000.00
Subtotal 84,045,855.35
Total 84,045,855.35
Month End
Interest Earnings
May 1, 2015-May 31, 2015
Beginning Ending Maturity CurrentAnnualized
Book Value Book Value Date Rate Yield
2,705,000.00 2,705,000.00 11/20/2017 1.140 1.119
2,000,000.00 2,000,000.00 11/25/2016 0.610 0.599
2,000,000.00 2,000,000.00 09/29/2017 1.000 0.981
2,000,000.00 2,000,000.00 12129/2017 1.125 1.104
1 ,999,130.56 1,999,172.22 01/27/2017 0.625 0.638
2,000,000.00 2,000,000.00 03/29/2018 1.300 1.276
2,000,000.00 2,000,000.00 10/27/2017 0.875 0.859
2,000,000.00 2,000,000.00 01/16/2018 1.000 0.981
2,000,000.00 2,000,000.00 04/30/2018 1.150 1.128
2,000,000.00 2,000,000.00 04/27/2018 1.020 1.001
2,000,000.00 2,000,000.00 04/06/2017 0.690 0.677
0.00 2,000,000.00 05/11/2018 1.050 1.014
0.00 2,000,000.00 05/04/2018 1.120 1.095 ---
84,763,363.56 84,048,125.30 0.722
84,763,363.56 84,048,125.30 0.722
Interest
Earned
2,569.75
1,016.66
1,666.66
1,875.00
1,041 .67
2,166.67
1,458.34
1,666.67
1,916.67
1,700.00
1,150.00
1,166.67
1,680.00
53,714.61
53,714.61
Page 2
Adjusted Interest Earnings
Amortization/ Adjusted Interest
Accretion
0.00
0.00
0.00
0.00
41 .66
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-174.39
-174.39
Earnings
2,569.75
1,016.66
1,666.66
1,875.00
1,083.33
2,166.67
1,458.34
1,666.67
1,916.67
1,700.00
1,150.00
1,166.67
1,680.00
53,540.22
53,540.22
Portfolio OT A Y
NL! AP
IE (PRF _IE) 7.2.0
Report Ver. 7.3.5
Check Total
960.00
8,617.04
3,533.13
19,998.83
3,432.00
3,432.00
434.18 434.18
TEMPORARY EMPLOYMENT (4/13/15-4/16/15)1,544.40 1,544.40
2043351 06/10/15 16289 AGM ELECTRONICS INC B2057 04/29/15 ALARM MODULE
2043293 06/03/15 11803 AEROTEK ENVIRONMENTAL OE01147289 04/30/15
TEMPORARY EMPLOYMENT (5/18/15-5/22/15)1,887.60
OE01156536 05/28/15 TEMPORARY EMPLOYMENT (5/11/15-5/14/15)1,544.40
2043350 06/10/15 11803 AEROTEK ENVIRONMENTAL OE01158922 06/04/15
TEMPORARY EMPLOYMENT (5/4/15-5/8/15)1,887.60
OE01151929 05/14/15 TEMPORARY EMPLOYMENT (4/27/15-4/30/15)1,544.40
1321 05/12/15 DEVELOPER PROJECTS (4/11/15-5/8/15)4,160.25
2043213 05/27/15 11803 AEROTEK ENVIRONMENTAL OE01154247 05/21/15
18,175.48
2043349 06/10/15 11462 AEGIS ENGINEERING MGMT INC 1403 05/12/15 DEVELOPER PLAN REVIEW (4/11/15-5/8/15)15,838.58
4,317.55 4,317.55
2043348 06/10/15 12174 AECOM TECHNICAL SERVICES INC 28 05/12/15 DISINFECTION SYSTEM (ENDING 5/1/15)18,175.48
UB Refund Cst #0000214038 21.98 21.98
2043347 06/10/15 03317 ADVANCED CALL PROCESSING INC 20153459 06/05/15 PHONE MAINTENANCE (6/5/15)
965298 05/14/15 SODIUM HYPOCHLORITE 239.33
2043404 06/17/15 16497 ADAM VIZCONRONDO Ref002444801 06/15/15
965741 05/21/15 SODIUM HYPOCHLORITE 458.07
965299 05/14/15 SODIUM HYPOCHLORITE 446.30
965472 05/18/15 SODIUM HYPOCHLORITE 511.04
965297 05/14/15 SODIUM HYPOCHLORITE 462.98
SODIUM HYPOCHLORITE 755.28
965740 05/21/15 SODIUM HYPOCHLORITE 660.13
2043346 06/10/15 01910 ABCANA INDUSTRIES 965649 05/20/15
964398 04/30/15 SODIUM HYPOCHLORITE 539.48
964868 05/07/15 SODIUM HYPOCHLORITE 473.77
964399 04/30/15 SODIUM HYPOCHLORITE 579.70
964869 05/07/15 SODIUM HYPOCHLORITE 546.35
965078 05/11/15 SODIUM HYPOCHLORITE 715.06
964830 05/04/15 SODIUM HYPOCHLORITE 632.67
965077 05/11/15 SODIUM HYPOCHLORITE 1,053.47
964798 05/06/15 SODIUM HYPOCHLORITE 893.58
SODIUM HYPOCHLORITE 1,892.12
964921 05/08/15 SODIUM HYPOCHLORITE 1,290.84
2043212 05/27/15 01910 ABCANA INDUSTRIES 964552 05/01/15
SCHEDULED FIRE TESTING 540.00
19148 04/01/15 ELEVATOR MAINTENANCE (APR 2014)420.00
2043211 05/27/15 15416 24 HOUR ELEVATOR INC 19353 04/01/15
1,842.61
2043345 06/10/15 15876 1903 SOLUTIONS LLC OWD150406VDI 06/01/15 VDI IMPLEMENTATION 2,400.00 2,400.00
Amount
2043403 06/17/15 15645 (W)RIGHT ON COMMUNICATIONS INC 12202410 04/30/15 COMMUNITY OUTREACH (A) (APR 2015)1,842.61
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
Page 1 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
6,013.80
413.88
21,202.50
23,876.94
REFUND SPECIAL ASSESSMENT 205.20 205.20
06/15/15 UB Refund Cst #0000198557 13.92 13.92
2043219 05/27/15 16439 ARNOLD G KENT 1812052115 05/21/15
12,099.67
0056271IN 05/07/15 INVENTORY 11,777.27
2043407 06/17/15 16488 ARACELI GONZALEZ Ref002444791
EMPLOYEE ASSISTANCE PROGRAM (JUNE 2015)312.20 312.20
2043218 05/27/15 03492 AQUA-METRIC SALES COMPANY 0056270IN 05/07/15 INVENTORY
2043297 06/03/15 08967 ANTHEM BLUE CROSS EAP 41310 05/25/15
19.66
2043296 06/03/15 00002 ANSWER INC 11583 05/22/15 ANSWERING SERVICES (MONTHLY)1,260.00 1,260.00
204.87 204.87
2043295 06/03/15 16460 ANDREW BAYLOR Ref002442829 06/01/15 UB Refund Cst #0000213291 19.66
UNIT 208 2,255.52 2,255.52
2043354 06/10/15 06166 AMERICAN MESSAGING L1109570PF 06/01/15 PAGERS (MAY 2015)
2043353 06/10/15 16437 AMERICAN HYDRAULIC COMPRESSOR AMHC1967 04/21/15
CM201529 05/04/15 MGMT/INSP R2109 (4/1/15-4/30/15)750.00
CM201531 05/04/15 MGMT/INSP R2112 (4/1/15-4/30/15)370.00
CM201527 05/04/15 MGMT/INSP P2542 (4/1/15-4/30/15)1,050.00
CM201530 05/04/15 MGMT/INSP R2111 (4/1/15-4/30/15)850.00
CM201523 05/04/15 MGMT/INSP P2453 (4/1/15-4/30/15)2,100.00
CM201526 05/04/15 MGMT/INSP P2453 (4/1/15-4/30/15)1,500.00
CM201524 05/04/15 MGMT/INSP P2532 (4/1/15-4/30/15)5,260.00
CM201525 05/04/15 MGMT/INSP S2033 (4/1/15-4/30/15)3,600.00
100.00 100.00
2043217 05/27/15 14462 ALYSON CONSULTING CM201528 05/04/15 MGMT/INSP S2024 (4/1/15-4/30/15)5,722.50
UB Refund Cst #0000175101 456.79 456.79
2043406 06/17/15 16456 ALNEMS AYMAN Ref002444788 06/15/15 UB Refund Cst #0000175101
9004391869 04/17/15 ELECTRICAL ACCESSORIES 81.51
2043294 06/03/15 16456 ALNEMS AYMAN Ref002442825 06/01/15
6,750.00
2043216 05/27/15 01463 ALLIED ELECTRONICS INC 9004433700 04/28/15 INSTRUMENT WIRE 332.37
18,707.00 18,707.00
2043405 06/17/15 14256 ALLIANT INSURANCE SERVICES INC 301399 04/10/15 CONSULTING SERVICES (QUARTERLY)6,750.00
AIR BOTTLES 46.35 46.35
2043352 06/10/15 15024 AIRX UTILITY SURVEYORS INC 19 05/12/15 LAND SURVEYING (4/1/15-4/30/15)
131383247 04/28/15 AQUA AMMONIA 325.20
2043215 05/27/15 13753 AIRGAS USA LLC 9926983239 04/30/15
131383248 04/28/15 AQUA AMMONIA 1,532.40
131383245 04/28/15 AQUA AMMONIA 1,300.20
434.18 434.18
2043214 05/27/15 07732 AIRGAS SPECIALTY PRODUCTS INC 131383246 04/28/15 AQUA AMMONIA 2,856.00
2043351 06/10/15 16289 AGM ELECTRONICS INC B2057 04/29/15 ALARM MODULE
Page 2 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
7,076.86
274.24
721.75
UB Refund Cst #0000206266 38.51 38.51204341506/17/15 15490 CHELSEY CLAIR Ref002433138 03/24/14
1,758.27
2043414 06/17/15 16489 CHARMELJUN GALLARDO Ref002444792 06/15/15 UB Refund Cst #0000198774 12.83 12.83
420.00 420.00
2043300 06/03/15 16459 CES INC Ref002442828 06/01/15 UB Refund Cst #0000209032 1,758.27
DESTRUCTION SERVICES (5/4/15)104.00 104.00
2043227 05/27/15 16446 CAROLE G MARQUEZ TR (DCSD)1601052115 05/21/15 REFUND SPECIAL ASSESSMENT
2043226 05/27/15 02758 CARMEL BUSINESS SYSTEMS INC 7884 05/05/15
28.53
2043299 06/03/15 02758 CARMEL BUSINESS SYSTEMS INC 7885 05/11/15 SCANNING SERVICES 18.36 18.36
208.88 208.88
2043413 06/17/15 16490 CARLA SNEAD Ref002444794 06/15/15 UB Refund Cst #0000204360 28.53
TUITION REIMBURSEMENT 1,484.12 1,484.12
2043412 06/17/15 11057 CAREY, ANDREA 060815061015 06/15/15 TRAVEL EXPENSE REIMB (6/8/15-6/10/15)
2043411 06/17/15 15447 CANNON, LARRY LC06092015 06/09/15
SAFETY SUPPLIES 452.79
340176 05/11/15 SAFETY SUPPLIES 268.96
340377 05/13/15 SAFETY SUPPLIES 45.73
2043225 05/27/15 01004 CALOLYMPIC SAFETY 340167 05/07/15
7,573.40
2043359 06/10/15 01004 CALOLYMPIC SAFETY 3401671 05/19/15 SAFETY SUPPLIES 228.51
3,800.00 3,800.00
2043224 05/27/15 08490 CALIFORNIA BANK & TRUST 404302015 05/07/15 RETENTION/ARRIETA (ENDING 4/30/15)7,573.40
LEGISLATIVE ADVOCACY (APR 2015)1,766.00 1,766.00
2043358 06/10/15 08156 BROWNSTEIN HYATT FARBER 601866 05/21/15 LEGISLATIVE ADVOCACY (MAR 2015)
2043298 06/03/15 08156 BROWNSTEIN HYATT FARBER 602753 05/28/15
250.23
2043357 06/10/15 02977 BROWN, VINCENT 060115 06/04/15 SAFETY BOOT REIMBURSEMENT 150.00 150.00
205.20 205.20
2043410 06/17/15 15654 BRANDON MIZUHARA Ref002434502 06/16/14 UB Refund Cst #0000144938 250.23
WEBSITE SUPPORT (3/1/15-6/1/15)4,565.00 4,565.00
2043223 05/27/15 16445 BLACK LIVING TRUST 02-02-11 1846062115 05/21/15 REFUND SPECIAL ASSESSMENT
2043356 06/10/15 15570 BEYOND IDEAS LLC OWD05 06/01/15
102.30
2043409 06/17/15 06970 BATTIKHA, SAM 060615 06/11/15 SAFETY BOOT REIMBURSEMENT 150.00 150.00
1,414.00 1,414.00
2043222 05/27/15 16390 BARRY J & STAR SLIPOCK 1910051815 05/21/15 REFUND SPECIAL ASSESSMENT 102.30
TEMP METER BACKFLOWS 4,557.60 4,557.60
2043221 05/27/15 11519 BACKFLOW APPARATUS & VALVE CO 710245 04/30/15 BACKFLOW GAUGE
000006654061 06/01/15 TELEPHONE SERVICES (MAY 2015)1,229.08
2043355 06/10/15 11519 BACKFLOW APPARATUS & VALVE CO 712121 05/13/15
143,894.60 143,894.60
2043408 06/17/15 07785 AT&T 000006655439 06/02/15 TELEPHONE SERVICES (5/2/15-6/1/15)5,847.78
2043220 05/27/15 05753 ARRIETA CONSTRUCTION INC 404302015 05/07/15 CALAVO PHASE 1 (ENDING 4/30/15)
Page 3 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
540.00
358.00
1,719.00
284.00
4,984.00
2003193E613090515 06/11/15 SHUT DOWN TEST (5/7/15)142.00
SHUT DOWN TEST (5/6/15)142.00
2003193E612530515 06/11/15 SHUT DOWN TEST (5/6/15)142.00
3169052115 05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)292.00
2043418 06/17/15 00184 COUNTY OF SAN DIEGO 2003193E612520515 06/11/15
0296052115 05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)292.00
0295052115 05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)292.00
2786052115 05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)292.00
0297052115 05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)292.00
0294052115 05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)405.00
0351052115 05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)375.00
05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)2,298.00
0405052115 05/21/15 UPFP PERMIT RENEWAL (6/30/15-6/30/16)446.00
142.00
2003193E612530415 05/21/15 SHUT DOWN TEST (4/3/15)142.00
2043362 06/10/15 00184 COUNTY OF SAN DIEGO 0891052115
EXCAVATION PERMITS (APR 2015)2,475.70 2,475.70
2043233 05/27/15 00184 COUNTY OF SAN DIEGO 2003193E612520415 05/21/15 SHUT DOWN TEST (4/3/15)
2043361 06/10/15 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD041505/10/15
803.26
2043232 05/27/15 12334 CORODATA MEDIA STORAGE INC DS1267712 04/30/15 TAPE STORAGE (APR 2015)438.37 438.37
6,094.00 6,094.00
2043231 05/27/15 08160 COMPLETE OFFICE 17216990 04/30/15 COPY PAPER 803.26
SR-11 RELOCATIONS (ENDING 4/30/15)100,500.40 100,500.40
2043417 06/17/15 15616 COGENT COMMUNICATIONS INC 0001060115 06/01/15 INTERNET CIRCUITS (JUNE 2015)
2043230 05/27/15 15395 COFFMAN SPECIALTIES INC 5 05/01/15
78888 04/30/15 BACTERIOLOGICAL TESTING (P2507)479.00
78887 04/30/15 BACTERIOLOGICAL TESTING (D0876-090139)136.00
BACTERIOLOGICAL TESTING (D0876-090137)552.00
78885 04/30/15 BACTERIOLOGICAL TESTING (D0720-090159)552.00
78889 04/30/15 BACTERIOLOGICAL TESTING (D0936)166.00
2043302 06/03/15 04119 CLARKSON LAB & SUPPLY INC 78886 04/30/15
16,830.00 16,830.00
2043229 05/27/15 04119 CLARKSON LAB & SUPPLY INC 78890 04/30/15 BACTERIOLOGICAL TESTING (D0740)192.00
UB Refund Cst #0000215433 20.69 20.69
2043360 06/10/15 12674 CITY OF CHULA VISTA U004051115 05/11/15 UTILITY PERMITS (7/1/14-2/28/15)
06/10/15 AD&D & SUPP LIFE INS (JUNE 2015)4,351.59 4,351.59
2043301 06/03/15 16465 CIPRIAN INVESTMENTS Ref002442834 06/01/15
270.00
AR044581 05/08/15 GARDEN TOURS (04/08/15)270.00
2043416 06/17/15 15256 CIGNA GROUP INSURANCE / LINA 9267061015
UB Refund Cst #0000206266 38.51 38.51
2043228 05/27/15 02026 CHULA VISTA ELEM SCHOOL DIST AR044580 05/08/15 GARDEN TOURS (04/15/15)
2043415 06/17/15 15490 CHELSEY CLAIR Ref002433138 03/24/14
Page 4 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
710.00
8,270.32
17,120.00
1,335.00505046905/11/15 LAB ANALYSIS (4/25/15-5/1/15)445.00
LAB ANALYSIS (4/11/15-4/17/15)445.00
5050344 05/05/15 LAB ANALYSIS (4/18/15-4/24/15)445.00
2043237 05/27/15 03227 ENVIROMATRIX ANALYTICAL INC 5040931 04/28/15
697.50
2043365 06/10/15 14602 ENVIRO-CARE CO EC214053 05/14/15 SCREENINGS WASHER COMPACTOR 52,088.67 52,088.67
102.30 102.30
2043308 06/03/15 08023 EMPLOYEE BENEFIT SPECIALISTS 0069340IN 04/30/15 EMPLOYEE BENEFITS (APR 2015)697.50
RECYCLING SERVICES (MAY 2015)95.00 95.00
2043236 05/27/15 16391 EDWARD L & EVELYN C SINGER 1912051815 05/21/15 REFUND SPECIAL ASSESSMENT
2043307 06/03/15 02447 EDCO DISPOSAL CORPORATION 5458053115 05/31/15
33.34
2043425 06/17/15 16496 DOUGLAS SITTER Ref002444800 06/15/15 UB Refund Cst #0000213373 37.64 37.64
296.87 296.87
2043424 06/17/15 16494 DOUG BROWN Ref002444798 06/15/15 UB Refund Cst #0000212312 33.34
CONVERTER REPAIR 575.00 575.00
2043423 06/17/15 15717 DORNELIEO WAITS Ref002435025 07/14/14 UB Refund Cst #0000182344
2043364 06/10/15 15050 DISCOUNT INSTRUMENTATION SVCS 8523 05/12/15
22.13
2043306 06/03/15 16458 DIANA RUSACKAS Ref002442827 06/01/15 UB Refund Cst #0000208893 5.23 5.23
74.42 74.42
2043422 06/17/15 16498 DAVID MCINTOSH Ref002444802 06/15/15 UB Refund Cst #0000214270 22.13
UB Refund Cst #0000217193 740.83 740.83
2043421 06/17/15 15461 DAVID BENSOUSSAN Ref002432954 03/10/14 UB Refund Cst #0000203315
2043305 06/03/15 16466 DAVID BACK Ref002442835 06/01/15
TRAFFIC SVCS P2267 (3/20/14-11/22/14)8,760.00
140203 05/05/15 TRAFFIC SVCS P2453 (3/20/14-11/22/14)8,360.00
I20150227 03/19/15 W&T MICRO2000 MOTOR 528.23
2043235 05/27/15 11150 DARNELL & ASSOCIATES INC 150102 05/05/15
4,257.23
I20150315 04/22/15 W&T MICRO2000 MOTOR 2,621.36
I20150381 05/11/15 REGULATOR EXTENSIONS 863.50
UB Refund Cst #0000216827 50.98 50.98
2043234 05/27/15 11797 D & H WATER SYSTEMS INC I20150200 03/10/15 W&T MICRO2000 MOTOR
2043420 06/17/15 16500 CYPREXX SERVICES LLC Ref002444804 06/15/15
150.00
2043304 06/03/15 16463 CYNTHIA GIRON Ref002442832 06/01/15 UB Refund Cst #0000213754 50.46 50.46
30.00 30.00
2043419 06/17/15 00693 CSDA, SAN DIEGO CHAPTER 1528 05/29/15 MEMBERSHIP RENEWAL 150.00
CALAVO SEWER REPAIRS 11,675.00 11,675.00
2043303 06/03/15 00693 CSDA, SAN DIEGO CHAPTER 05212015 05/28/15 BUSINESS MEETING
2003193E613110515 06/11/15 SHUT DOWN TEST (5/8/15)142.00
2043363 06/10/15 08479 COUNTY OF SAN DIEGO 0508215 05/08/15
2003193E613100515 06/11/15 SHUT DOWN TEST (5/7/15)142.00
Page 5 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
1,524.64
1,206.40
205.20 205.20
LANDSCAPING SERVICES (APR 2015)8,909.50 8,909.50
2043247 05/27/15 16440 GUY J WILKERSON 1820052115 05/21/15 REFUND SPECIAL ASSESSMENT
2043246 05/27/15 12907 GREENRIDGE LANDSCAPE INC 13010 04/29/15
9724432084 04/23/15 RULE PUMP 384.91
9714567345 04/13/15 TOOLS 361.86
6,777.90 6,777.90
2043245 05/27/15 00101 GRAINGER INC 9728241010 04/28/15 ELECTRICAL WIRE 459.63
GARDEN TOURS (4/8/15-4/23/15)1,860.00 1,860.00
2043244 05/27/15 14948 GPS INSIGHT LLC 9303828 05/01/15 GPS MODEMS
2043243 05/27/15 13563 FRIENDS OF THE WATER 255 05/04/15
93.91
2043312 06/03/15 16448 FRIENDS OF DISCOVERY 0518151 05/19/15 GARDEN TOUR (03/04/15-03/11/15)1,080.00 1,080.00
88.00 88.00
2043311 06/03/15 16457 FRANCIS RIVERA Ref002442826 06/01/15 UB Refund Cst #0000175529 93.91
BI-WEEKLY PAYROLL DEDUCTION 88.00 88.00
2043429 06/17/15 02344 FRANCHISE TAX BOARD Ben2444862 06/18/15 BI-WEEKLY PAYROLL DEDUCTION
2043310 06/03/15 02344 FRANCHISE TAX BOARD Ben2442882 06/04/15
390.00
2043428 06/17/15 01612 FRANCHISE TAX BOARD Ben2444860 06/18/15 BI-WEEKLY PAYROLL DEDUCTION 350.00 350.00
52.08 52.08
2043309 06/03/15 01612 FRANCHISE TAX BOARD Ben2442880 06/04/15 BI-WEEKLY PAYROLL DEDUCTION 390.00
VEHICLE WASHING 45.57 45.57
2043427 06/17/15 11962 FLEETWASH INC x500706 05/22/15 VEHICLE WASHING
2043242 05/27/15 11962 FLEETWASH INC x483159 05/01/15
340.28
2043369 06/10/15 11962 FLEETWASH INC x495195 05/15/15 VEHICLE WASHING 40.36 40.36
99.00 99.00
2043241 05/27/15 04066 FIRST CHOICE SERVICES - SD 039561 05/11/15 COFFEE SUPPLIES 340.28
INVENTORY 4,518.94 4,518.94
2043240 05/27/15 12187 FIRST AMERICAN DATA TREE LLC 9003400415 04/30/15 ONLINE DOCUMENTS
2043368 06/10/15 03546 FERGUSON WATERWORKS # 1083 0515317 05/21/15
0512200 04/28/15 SERVICE SADDLE 425.74
0512533 04/28/15 WAREHOUSE SUPPLIES 25.65
WAREHOUSE SUPPLIES 573.80
05117031 05/08/15 WAREHOUSE SUPPLIES 499.45
2043239 05/27/15 03546 FERGUSON WATERWORKS # 1083 0511703 04/28/15
1,250.00
2043238 05/27/15 15396 EVOQUA WATER TECHNOLOGIES LLC 902103153 03/25/15 BIOXIDE DELIVERY 1,636.47 1,636.47
50.00 50.00
2043367 06/10/15 14320 EUROFINS EATON ANALYTICAL INC L0217045 05/21/15 OUTSIDE LAB SERVICES (4/15/15)1,250.00
LAB ANALYSIS (5/2/15-5/7/15)400.00 400.00
2043426 06/17/15 16414 ERIC BANKER Ref002444789 06/15/15 UB Refund Cst #0000176825
2043366 06/10/15 03227 ENVIROMATRIX ANALYTICAL INC 5050654 05/18/15
Page 6 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
2,565.60
2,604.66
3,808.11
11,629.60
21,708.20
315.07
22.00 22.00
TRANSMITTER PARTS 43.18 43.18
2043434 06/17/15 15400 JAMES MALCOLM Ref002432476 02/10/14 UB Refund Cst #0000051627
93241315 05/15/15 TRANSMITTER PARTS 90.92
2043254 05/27/15 03368 INVENSYS SYSTEMS INC 93238472 05/07/15
226.00 226.00
2043374 06/10/15 03368 INVENSYS SYSTEMS INC 93241904 05/18/15 TRANSMITTER PARTS 224.15
INFOMASTER SOFT LICENSING (MAY 2015-MAY 2016)29,000.00 29,000.00
2043253 05/27/15 02372 INTERIOR PLANT SERVICE INC 10890 04/20/15 PLANT SERVICES (APR 2015)
2043433 06/17/15 13644 INNOVYZE INC 1683584 05/19/15
92401 04/30/15 PRINTING & INSERTS 2,988.03
92094 05/04/15 BILL PRINTING SERVICES (APR 2015)1,971.24
BILL PRINTING SERVICES (APR 2015)12,350.00
91933 04/30/15 BILL PRINTING SERVICES (APR 2015)4,398.93
0107715 05/15/15 ENVIRONMENTAL SVCS REPAIRS (4/1/15-4/24/15)268.75
2043252 05/27/15 08969 INFOSEND INC 91934 04/30/15
0107710 05/15/15 ENVIRONMENTAL SVCS SWPPP (4/6/15-4/24/15)734.70
0107713 05/15/15 ENVIRONMENTAL SVCS P2083 (4/1/15-4/24/15)268.75
ENVIRONMENTAL SVCS R2116 (4/1/15-4/24/15)7,098.75
0107716 05/15/15 ENVIRONMENTAL SVCS MONITORING (4/1/15-4/24/15)3,258.65
2043373 06/10/15 15622 ICF JONES & STOKES INC 0107717 05/15/15
3,157.50
0106497 03/20/15 ENVIRONMENTAL SVCS P1253 (1/31/15-2/27/15)330.82
0106500 03/20/15 ENVIRONMENTAL SVCS P2083 (1/31/15-2/27/15)319.79
OIL 3,544.19 3,544.19
2043432 06/17/15 15622 ICF JONES & STOKES INC 0106499 03/20/15 ENVIRONMENTAL SVCS R2116 (1/31/15-2/27/15)
2043251 05/27/15 03743 HYDROTEX 237388 05/06/15
17,281.83
2043431 06/17/15 02096 HELIX WATER DISTRICT HWD060115-otay-jr 06/02/15 LANDSCAPE CONTEST WINNER 29.45 29.45
48,903.75 48,903.75
2043372 06/10/15 02008 HELIX ENVIRONMENTAL 6 05/15/15 ENVIRONMENTAL SERVICES (4/8/15-4/30/15)17,281.83
FIRE HOSE & CONNECTIONS 235.31 235.31
2043250 05/27/15 10973 HDR ENGINEERING INC 15 05/04/15 CORROSION SERVICES (2/22/15-3/28/15)
D814805 05/06/15 ECODER XTR FOR METERS 972.00
2043371 06/10/15 06640 HD SUPPLY WATERWORKS LTD D821300 05/14/15
6,319.40
2043249 05/27/15 06640 HD SUPPLY WATERWORKS LTD D646159 05/06/15 4" VIC PLUG VALVES 1,632.66
22.04 22.04
2043430 06/17/15 05986 HAVS INCORPORATED 72371 06/11/15 OUTSIDE SERVICES 6,319.40
MOBILE INTERFACE 2,677.00 2,677.00
2043313 06/03/15 16455 HAI TRAN Ref002442824 06/01/15 UB Refund Cst #0000126266
9389758 05/22/15 HACH APA6000 REPAIR FEE 1,263.00
2043248 05/27/15 00174 HACH COMPANY 9332061 04/15/15
2043370 06/10/15 00174 HACH COMPANY 9389748 05/22/15 HACH APA6000 REPAIR FEE 1,302.60
Page 7 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
1,123.10
123.10
82.50
2043377 06/10/15 02882 MAYER REPROGRAPHICS INC 0093767IN 05/27/15 REPROGRAPHIC SERVICES (R2109)375.00 375.00
13.91 13.91
2043263 05/27/15 02882 MAYER REPROGRAPHICS INC 0093484IN 05/13/15 REPROGRAPHIC SERVICES 82.50
REFUND SPECIAL ASSESSMENT 102.30 102.30
2043444 06/17/15 16485 MAUREEN ORTIZ Ref002444786 06/15/15 UB Refund Cst #0000075835
2043262 05/27/15 16393 MARYZELLA JUAREZ URIBE 1914051815 05/21/15
381.45
2043261 05/27/15 16444 MARVELLIN ALGARIO 1842052115 05/21/15 REFUND SPECIAL ASSESSMENT 205.20 205.20
141.89 141.89
2043443 06/17/15 16504 MARROKAL CONSTRUCTION CO MTR15064061515 06/15/15 REFUND 381.45
UB Refund Cst #0000213394 20.81 20.81
2043442 06/17/15 16484 MARCO GARMO Ref002444785 06/15/15 UB Refund Cst #0000067420
2043315 06/03/15 16461 LYNN RUIZ Ref002442830 06/01/15
102.30
2043441 06/17/15 16487 LOURDES CORONA Ref002444790 06/15/15 UB Refund Cst #0000184939 58.51 58.51
6.45 6.45
2043260 05/27/15 16387 LOUIS S & EVELYNE Y MARKEL 1905051815 05/21/15 REFUND SPECIAL ASSESSMENT 102.30
HOIST INSPECTION 500.00 500.00
2043440 06/17/15 16483 LISA MCCOLL Ref002444784 06/15/15 UB Refund Cst #0000048467
2043376 06/10/15 12276 KONECRANES INC SDG01013201 05/20/15
75.00
2043439 06/17/15 14808 KOEPPEN, KEVIN 111715112015 06/15/15 TRAVEL EXPENSE REIMB (11/17/15-11/20/15)206.20 206.20
115.00 115.00
2043438 06/17/15 16501 KITTY HAWK REALTY Ref002444805 06/15/15 UB Refund Cst #0000217452 75.00
DRUM SCREEN BEARINGS 574.58 574.58
2043437 06/17/15 10089 KENNEDY, ROBERT 38336061515 06/15/15 REIMBURSEMENT
2043259 05/27/15 00056 KAMAN INDUSTRIAL TECHNOLOGIES O25605 05/07/15
102.30
2043436 06/17/15 16482 JUNE JENSEN Ref002444783 06/15/15 UB Refund Cst #0000026264 187.63 187.63
75.00 75.00
2043258 05/27/15 16392 JIM D COSKUN 1913051815 05/21/15 REFUND SPECIAL ASSESSMENT 102.30
DUSTO INSPECTIONS (APR 2015)100.00 100.00
2043435 06/17/15 15531 JESSICA COBARRUBIAS Ref002433434 04/07/14 UB Refund Cst #0000199242
2043257 05/27/15 02269 JENAL ENGINEERING CORP 15923 04/30/15
CREDIT MEMO -3,000.00
652692 04/29/15 CHLORINE TP 3,123.10
-2,000.00
654956 05/20/15 CHLORINE TP 3,123.10
2043314 06/03/15 10563 JCI JONES CHEMICALS INC 652719
2043375 06/10/15 10563 JCI JONES CHEMICALS INC 655021 CREDIT MEMO
1,159.35
2043256 05/27/15 10563 JCI JONES CHEMICALS INC 652692 04/29/15 CHLORINE TP 3,123.10 3,123.10
22.00 22.00
2043255 05/27/15 03077 JANI-KING OF CALIFORNIA INC SDO04150129 04/01/15 JANITORIAL SERVICES (APR 2015)1,159.35
2043434 06/17/15 15400 JAMES MALCOLM Ref002432476 02/10/14 UB Refund Cst #0000051627
Page 8 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
1,448.16
1,334.21
1,151.79
BI-WEEKLY DEFERRED COMP PLAN 11,553.27 11,553.27204331906/03/15 16255 NATIONWIDE RETIREMENT Ben2442868 06/04/15
225.53
2043318 06/03/15 09587 NAMBA, RICHARD 052815 05/28/15 LANDSCAPE CONTEST 250.00 250.00
205.20 205.20
2043381 06/10/15 09227 MOORE INDUSTRIES-INTRNTL INC 619354 05/21/15 PID REPAIR 225.53
UNIFORM SERVICES 93.98 93.98
2043266 05/27/15 16441 MOISES A CUEVAS JR 1821052115 05/21/15 REFUND SPECIAL ASSESSMENT
2043449 06/17/15 15136 MISSION UNIFORM SERVICE 500104643 05/11/15
500060551 05/04/15 UNIFORM SERVICES 93.98
500026879 04/28/15 UNIFORM SERVICES 29.32
500025058 04/28/15 UNIFORM SERVICES 122.28
500069448 05/05/15 UNIFORM SERVICES 122.28
UNIFORM SERVICES 392.04
500025059 04/28/15 UNIFORM SERVICES 391.89
500149224 05/19/15 UNIFORM SERVICES 91.52
2043265 05/27/15 15136 MISSION UNIFORM SERVICE 500069449 05/05/15
500149867 05/18/15 UNIFORM SERVICES 93.98
500195815 05/25/15 UNIFORM SERVICES 93.98
500159227 05/19/15 UNIFORM SERVICES 133.76
500115736 05/12/15 UNIFORM SERVICES 122.28
UNIFORM SERVICES 406.80
500115737 05/12/15 UNIFORM SERVICES 391.89
2043380 06/10/15 15136 MISSION UNIFORM SERVICE 500159228 05/19/15
102.83
2043448 06/17/15 16491 MIRNA SANTANA Ref002444795 06/15/15 UB Refund Cst #0000204632 78.60 78.60
518.07 518.07
2043447 06/17/15 15171 MIRNA RIVERA Ref002444793 06/15/15 UB Refund Cst #0000203182 102.83
UB Refund Cst #0000014848 53.54 53.54
2043379 06/10/15 00887 MIRAMAR TRUCK CENTER-SAN DIEGO 80234 04/30/15 REPAIR
2043317 06/03/15 16452 MING CHE LAI Ref002442821 06/01/15
16.39
2043378 06/10/15 00103 MILLER PAVING CORP 151161 06/02/15 ASPHALTIC CONCRETE PAVING 15,500.00 15,500.00
35.87 35.87
2043316 06/03/15 16450 MILA RABANAL Ref002442819 06/01/15 UB Refund Cst #0000003433 16.39
CLARIFIER BAFFLE WALL MATERIALS 351.21 351.21
2043446 06/17/15 16499 MICHAEL KIRBY Ref002444803 06/15/15 UB Refund Cst #0000216799
0093988IN 06/04/15 REPROGRAPHIC SERVICES (R2109)62.50
2043264 05/27/15 01183 MCMASTER-CARR SUPPLY CO 29578451 05/07/15
REPROGRAPHIC SERVICES 866.28
0094012IN 06/05/15 REPROGRAPHIC SERVICES (P1210)519.38
2043445 06/17/15 02882 MAYER REPROGRAPHICS INC 00904011IN 06/05/15
2043377 06/10/15 02882 MAYER REPROGRAPHICS INC 0093767IN 05/27/15 REPROGRAPHIC SERVICES (R2109)375.00 375.00
Page 9 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
827.90
279.96
742.03
7,848.96
223.29 223.29
CHLORINE GAS DETECTORS 1,517.40 1,517.40
2043388 06/10/15 16133 R J SAFETY SUPPLY CO INC 33635300 05/20/15 FACE MASK RECERTIFICATION
2043271 05/27/15 16133 R J SAFETY SUPPLY CO INC 33496700 04/14/15
176,336.38
2043387 06/10/15 10294 QWIKPRINTS 15152958 06/01/15 LIVE SCAN SERVICES 20.00 20.00
174,034.88 174,034.88
2043386 06/10/15 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2442870 06/04/15 BI-WEEKLY PERS CONTRIBUTION 176,336.38
AS-NEEDED DESIGN (ENDING 4/2/15)4,694.50 4,694.50
2043270 05/27/15 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2442651 05/21/15 BI-WEEKLY PERS CONTRIBUTION
43192 03/01/15 JANITORIAL SERVICES (MAR 2015)3,924.48
2043385 06/10/15 03613 PSOMAS 106630 05/14/15
255.00 255.00
2043323 06/03/15 13059 PRIORITY BUILDING SERVICES 42770 02/01/15 JANITORIAL SERVICES (FEB 2015)3,924.48
PHONE PAYMENT SVCS (APR 2015)54.10 54.10
2043384 06/10/15 15081 PINOMAKI DESIGN 4830 05/16/15 GRAPHIC DESIGN
2043269 05/27/15 05497 PAYPAL INC 40683641 04/30/15
1,736.83
2043268 05/27/15 06527 PADRE DAM MUNICIPAL WATER 050515 05/11/15 MEAL REIMBURSEMENT 31.80 31.80
600.00 600.00
2043452 06/17/15 16502 PACIFIC GREEN LANDSCAPE LINC Ref002444806 06/15/15 UB Refund Cst #0000217813 1,736.83
RESERVOIR COATING (ENDING 5/31/15)69,098.73 69,098.73
2043322 06/03/15 01718 OTAY MESA CHAMBER OF COMMERCE 562015 05/28/15 MEMBERSHIP RENEWAL
770127818001 05/12/15 OFFICE SUPPLIES 38.83
2043451 06/17/15 15856 OLYMPUS AND ASSOCIATES INC 6 06/08/15
771631559001 05/20/15 OFFICE SUPPLIES 116.91
772096041001 05/22/15 OFFICE SUPPLIES 75.97
OFFICE SUPPLIES 261.09
770823522001 05/15/15 OFFICE SUPPLIES 249.23
769512408001 05/07/15 OFFICE SUPPLIES 20.00
2043383 06/10/15 00510 OFFICE DEPOT INC 768928176001 05/12/15
OFFICE SUPPLIES 230.85
765692921001 04/15/15 OFFICE SUPPLIES 29.11
2043321 06/03/15 00510 OFFICE DEPOT INC 769829982001 05/08/15
761592691001 03/23/15 OFFICE SUPPLIES 97.17
768031875001 04/29/15 OFFICE SUPPLIES 18.01
OFFICE SUPPLIES 529.23
764862168001 04/09/15 OFFICE SUPPLIES 183.49
2043267 05/27/15 00510 OFFICE DEPOT INC 768312139001 04/30/15
25.26
2043382 06/10/15 07447 NTU TECHNOLOGIES INC 9030 05/13/15 POLYMER 908 9,135.00 9,135.00
10,053.27 10,053.27
2043320 06/03/15 16462 NORMAN MILES Ref002442831 06/01/15 UB Refund Cst #0000213415 25.26
2043450 06/17/15 16255 NATIONWIDE RETIREMENT Ben2444848 06/18/15 BI-WEEKLY DEFERRED COMP PLAN
Page 10 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
127.00
237.60
4,898.10
UTILITY EXPENSES (MONTHLY)65,364.15
052715 05/27/15 UTILITY EXPENSES (MONTHLY)51,418.84
502368 04/28/15 BID ADVERTISEMENT P1438 85.80
2043394 06/10/15 00121 SAN DIEGO GAS & ELECTRIC 052815 05/28/15
OUTSIDE SERVICES LEGAL ADVERTISING 4,710.00
502370 04/28/15 BID ADVERTISEMENT P2541 102.30
505010 05/12/15 BID ADVERTISEMENT 112.20
2043278 05/27/15 00247 SAN DIEGO DAILY TRANSCRIPT 00129703 05/14/15
4,076.00
2043393 06/10/15 00247 SAN DIEGO DAILY TRANSCRIPT 506055 05/18/15 BID ADVERTISEMENT 125.40
460.90 460.90
2043392 06/10/15 00003 SAN DIEGO COUNTY WATER AUTH 0000001222 05/12/15 MWD SCWS - HEWs 4,076.00
BI-WEEKLY PAYROLL DEDUCTION 460.90 460.90
2043457 06/17/15 03752 SAN DIEGO COUNTY SHERIFF Ben2444858 06/18/15 BI-WEEKLY PAYROLL DEDUCTION
2043326 06/03/15 03752 SAN DIEGO COUNTY SHERIFF Ben2442878 06/04/15
ASSESSOR DATA (5/5/15)125.00
201503627a 06/02/15 RECORDED MAPS (5/20/15)2.00
2043456 06/17/15 02586 SAN DIEGO COUNTY ASSESSOR 201503627 06/02/15
332.64
2043391 06/10/15 09148 S & J SUPPLY COMPANY INC S100051471001 05/12/15 INVENTORY 3,539.51 3,539.51
384.91 384.91
2043325 06/03/15 16453 ROSA MARIA AGUIRRE Ref002442822 06/01/15 UB Refund Cst #0000054867 332.64
REFUND SPECIAL ASSESSMENT 420.00 420.00
2043324 06/03/15 16174 ROCK STRUCTURES CONSTRUCTION 11084 04/30/15 RIP-RAP 12" MINUS
2043277 05/27/15 08020 RIESGO FAMILY TRUST 10-26-96 1602052115 05/21/15
1,090.00
2043390 06/10/15 08972 RICK ENGINEERING COMPANY 0042610 05/13/15 CAMPO ROAD SUPPORT (4/1/15-4/30/15)11,692.72 11,692.72
37.00 37.00
2043276 05/27/15 15600 RICHARD J THORMAN 043015 04/28/15 CONSULTING SERVICES 1,090.00
TRASH SERVICES 192.71 192.71
2043455 06/17/15 16495 RICARDO HERNANDEZ Ref002444799 06/15/15 UB Refund Cst #0000212317
2043389 06/10/15 15857 REPUBLIC SERVICES INC #509 0509006035639 05/25/15
5,289.49
2043454 06/17/15 15857 REPUBLIC SERVICES INC #509 0509006034125 05/25/15 TRASH SERVICES (JUNE 2015)530.33 530.33
18,064.50 18,064.50
2043275 05/27/15 15414 REGENTS BANK 5 05/01/15 RETENTION/COFFMAN (ENDING 4/30/15)5,289.49
INSPECTION SVCS (12/1/14-4/26/15)1,026.00 1,026.00
2043274 05/27/15 01890 RECON 51301 05/01/15 SUBAREA PLAN (6/28/14-4/24/15)
2043273 05/27/15 02041 RBF CONSULTING 906361 05/07/15
3,113.88
2043272 05/27/15 00334 RANDOLPH MANUFACTURING CO 3008466 03/02/15 REPAIR PART 58.92 58.92
223.29 223.29
2043453 06/17/15 16507 RABAGO INVESTMENT GROUP LLC 0833060815 06/08/15 W/O REFUND D0833-090093 3,113.88
2043388 06/10/15 16133 R J SAFETY SUPPLY CO INC 33635300 05/20/15 FACE MASK RECERTIFICATION
Page 11 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
117,688.83
57,257.10
490.00
1,753.00
415.00
16,968.74
46.61 46.61
UB Refund Cst #0000208403 42.34 42.34
2043334 06/03/15 16451 SYLVIA GINWRIGHT Ref002442820 06/01/15 UB Refund Cst #0000013188
2043463 06/17/15 16492 SYDNEY HUMPREY Ref002444796 06/15/15
UNLEADED FUEL 12,039.37
410909 04/28/15 DIESEL FUEL 4,929.37
2043282 05/27/15 10339 SUPREME OIL COMPANY 410908 04/28/15
17,846.21
2043462 06/17/15 15974 SUN LIFE FINANCIAL Ben2444846 06/18/15 MONTHLY CONTRIBUTION TO LTD 4,996.08 4,996.08
205.20 205.20
2043397 06/10/15 12809 STUTZ ARTIANO SHINOFF 97983 05/26/15 LEGAL SERVICES (APR 2015)17,846.21
UB Refund Cst #0000214900 1,696.86 1,696.86
2043281 05/27/15 16442 STEPHEN R NAVES 1828052115 05/21/15 REFUND SPECIAL ASSESSMENT
05/28/15 CERTIFICATION RENEWAL 80.00 80.00
2043333 06/03/15 16464 STEINY AND COMPANY Ref002442833 06/01/15
280.00
33126 05/15/15 ADVERTISING 135.00
2043332 06/03/15 05755 STATE WATER RESOURCES 0923052815
MEMBERSHIP RENEWAL 500.00 500.00
2043331 06/03/15 13564 STAR-NEWS PUBLISHING CO, THE 32704 05/08/15 ADVERTISING
2043330 06/03/15 01717 SPRING VALLEY CHAMBER OF 062015 05/28/15
C56095 05/15/15 AC MAINTENANCE (MONTHLY)480.00
C56088 05/15/15 AC MAINTENANCE (MONTHLY)205.00
4,000.00
2043396 06/10/15 15176 SOUTHCOAST HEATING &C56081 05/15/15 AC MAINTENANCE (MONTHLY)1,068.00
205.00 205.00
2043395 06/10/15 13327 SILVA-SILVA INTERNATIONAL 1506 05/27/15 DESAL PROJ CONSULTANT (MAY 2015)4,000.00
LABORATORY SERVICES (5/20/15)205.00 205.00
2043280 05/27/15 15307 SIERRA ANALYTICAL LABS INC 5E20003 05/20/15 LABORATORY SERVICES (5/13/15)
5F08008 06/08/15 LABORATORY SERVICES (5/27/15)230.00
2043329 06/03/15 15307 SIERRA ANALYTICAL LABS INC 5E28007 05/28/15
844.66
2043461 06/17/15 15307 SIERRA ANALYTICAL LABS INC 5F10013 06/10/15 LABORATORY SERVICES (6/3/15)260.00
141.45 141.45
2043460 06/17/15 15446 SCOTT, ADAM 060115060515 06/09/15 TRAVEL EXPENSE REIMB (6/1/15-6/5/15)844.66
UB Refund Cst #0000160143 136.52 136.52
2043328 06/03/15 07442 SCHULTZ, ALEXANDER 051315 05/22/15 MILEAGE REIMBURSEMENT (5/13/15)
05/21/15 PREARRANGED POWER OUTAGE 2,570.00 2,570.00
2043459 06/17/15 16486 SANG YOONG LEE Ref002444787 06/15/15
53,977.75
052915 05/29/15 UTILITY EXPENSES (MONTHLY)3,279.35
2043279 05/27/15 00871 SAN DIEGO GAS & ELECTRIC 271573
UTILITY EXPENSES (MONTHLY)29,708.97 29,708.97
2043458 06/17/15 00121 SAN DIEGO GAS & ELECTRIC 060315 06/03/15 UTILITY EXPENSES (MONTHLY)
052615 05/26/15 UTILITY EXPENSES (MONTHLY)905.84
2043327 06/03/15 00121 SAN DIEGO GAS & ELECTRIC 052015 05/20/15
Page 12 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
104.65
319.97
178.15
319.97
56,798.48
UB Refund Cst #0000206134 179.81 179.81204346806/17/15 15637 VALDEZ FAMILY SURVIVORS TRUST Ref002434294 06/03/14
7,732.91
2043399 06/10/15 07674 US BANK CC20150522141 05/22/15 CAL CARD EXPENSES (MONTHLY)56,798.48
1,066.65 1,066.65
2043467 06/17/15 00335 UNITED STATES POSTMASTER 61515 06/15/15 POSTAGE - PERMIT 700 7,732.91
PREPAID POSTAGE MACHINE 6,000.00 6,000.00
2043341 06/03/15 00335 UNITED STATES POSTMASTER 05292015 05/29/15 POSTAGE - PERMIT 700
2043340 06/03/15 00350 UNITED STATES POSTAL SERVICE 3951052815 05/28/15
1142910270 05/06/15 PORTABLE TOILET RENTALS (5/1/15-5/28/15)79.98
1142911092 05/06/15 PORTABLE TOILET RENTALS (5/2/15-5/29/15)79.98
05/06/15 PORTABLE TOILET RENTALS (5/1/15-5/28/15)80.03
1142910271 05/06/15 PORTABLE TOILET RENTALS (5/1/15-5/28/15)79.98
98.17
1142938045 05/13/15 PORTABLE TOILET RENTALS (5/13/15-6/9/15)79.98
2043288 05/27/15 15675 UNITED SITE SERVICES INC 1142910272
PORTABLE TOILET RENTALS (5/22/15-6/18/15)79.98 79.98
2043339 06/03/15 15675 UNITED SITE SERVICES INC 1142958744 05/21/15 PORTABLE TOILET RENTALS (5/21/15-6/17/15)
2043398 06/10/15 15675 UNITED SITE SERVICES INC 1142961619 05/22/15
1142980978 05/29/15 PORTABLE TOILET RENTALS (5/29/15-6/25/15)79.98
1142986706 05/31/15 PORTABLE TOILET RENTALS (5/30/15-6/26/15)79.98
PORTABLE TOILET RENTALS (5/29/15-6/25/15)80.03
1142980977 05/29/15 PORTABLE TOILET RENTALS (5/29/15-6/25/15)79.98
2043466 06/17/15 15675 UNITED SITE SERVICES INC 1142981105 05/29/15
408.00
2043287 05/27/15 16036 UNISOURCE SOLUTIONS INC 621452 03/03/15 WALL TRACKS & PULLS 1,171.07 1,171.07
8,707.78 8,707.78
2043286 05/27/15 00427 UNDERGROUND SERVICE ALERT OF 420150487 05/01/15 UNDERGROUND ALERTS (MONTHLY)408.00
MILEAGE REIMBURSEMENT (5/12/15)162.15 162.15
2043285 05/27/15 00870 TRANSCAT INC 981847 05/05/15 754 CALIBRATOR
2043338 06/03/15 08159 TORRES, LEONEL 051215 05/27/15
MILEAGE REIMBURSEMENT (MAY 2015)81.65
050115053115 05/26/15 EXPENSE REIMBURSEMENT (MAY 2015)23.00
2043337 06/03/15 14177 THOMPSON, MITCHELL 050115053115a 05/29/15
184.61
2043284 05/27/15 16443 THOMAS & KATHRYN HADFIELD 1834052115 05/21/15 REFUND SPECIAL ASSESSMENT 205.20 205.20
184.61 184.61
2043465 06/17/15 15926 TEXAS CHILD SUPPORT UNIT Ben2444864 06/18/15 BI-WEEKLY PAYROLL DEDUCTION 184.61
INSTALL GEAR DRIVE 2,150.00 2,150.00
2043336 06/03/15 15926 TEXAS CHILD SUPPORT UNIT Ben2442884 06/04/15 BI-WEEKLY PAYROLL DEDUCTION
2043283 05/27/15 03608 TELLIARD CONSTRUCTION OWD82014 12/10/14
7.84
2043464 06/17/15 01834 TC CONSTRUCTION CO INC 405312015 06/08/15 BLOW OFF RELOCATION (ENDING 5/31/15)29,484.20 29,484.20
46.61 46.61
2043335 06/03/15 16454 TASHA GINET-MACK Ref002442823 06/01/15 UB Refund Cst #0000122331 7.84
2043334 06/03/15 16451 SYLVIA GINWRIGHT Ref002442820 06/01/15 UB Refund Cst #0000013188
Page 13 of 14
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 5/21/2015 - 6/17/2015
Check #Date Vendor #Vendor Name Invoice Inv. Date Description
7,708.67
17,273.22
12,157.13
230.00
9,844.38 9,844.38
Amount Pd Total:1,776,289.72
Check Grand Total:1,776,289.72
CUSTOMER REFUND 194.17 194.17
2043292 05/27/15 14857 YSI INCORPORATED 603246 05/08/15 NITRATE SENSOR TIP REPLACEMENTS
04/22/15 DESKTOP COMPUTERS 19,575.00 19,575.00
2043472 06/17/15 16503 WILLIAM SARAVA 3811051515 06/12/15
115.00
96856 05/14/15 BEE REMOVAL 115.00
2043291 05/27/15 15596 WEBB INFORMATION SYSTEMS 6877
HYDRAULIC MODELING (ENDING 4/30/15)1,575.00 1,575.00
2043402 06/10/15 01343 WE GOT YA PEST CONTROL 96684 05/06/15 BEE REMOVAL
2043344 06/03/15 15726 WATER SYSTEMS CONSULTING INC 1390 04/30/15
421420 05/08/15 HARDWARE INSTALLATION 299.11
424085 05/11/15 SERVICE RESERVOIR ALARM 143.00
OPERATIONS SECURITY & ACCESS (ENDING 5/8/15)9,539.02
421418 05/08/15 OPERATIONS SECURITY & ACCESS (ENDING 5/1/15)2,176.00
424019 05/15/15 MONTHLY SERVICES (JUNE 2015)1,288.92
2043290 05/27/15 15807 WATCHLIGHT CORPORATION, THE 421419 05/08/15
102.30 102.30
2043401 06/10/15 15807 WATCHLIGHT CORPORATION, THE 424331 05/15/15 WAREHOUSE SECURITY AND ACCESS 15,984.30
UB Refund Cst #0000208578 21.66 21.66
2043289 05/27/15 16388 WALTER M & MARIA A SHAW 1906051815 05/21/15 REFUND SPECIAL ASSESSMENT
9746039941 05/21/15 WIRELESS SERVICES (4/22/15-5/21/15)184.66
2043471 06/17/15 16493 VICENTE VALADEZ Ref002444797 06/15/15
5,937.98
9746039939 05/21/15 WIRELESS SERVICES (4/22/15-5/21/15)1,152.10
9746039940 05/21/15 WIRELESS SERVICES (4/22/15-5/21/15)433.93
BI-WEEKLY 401A PLAN 1,729.77 1,729.77
2043400 06/10/15 03329 VERIZON WIRELESS 9746039935 05/21/15 WIRELESS SERVICES (4/22/15-5/21/15)
2043470 06/17/15 06414 VANTAGEPOINT TRANSFER AGENTS Ben2444856 06/18/15
14,282.93
2043343 06/03/15 06414 VANTAGEPOINT TRANSFER AGENTS Ben2442876 06/04/15 BI-WEEKLY 401A PLAN 2,075.77 2,075.77
14,230.54 14,230.54
2043469 06/17/15 01095 VANTAGEPOINT TRANSFER AGENTS Ben2444854 06/18/15 BI-WEEKLY DEFERRED COMP PLAN 14,282.93
UB Refund Cst #0000206134 179.81 179.81
2043342 06/03/15 01095 VANTAGEPOINT TRANSFER AGENTS Ben2442874 06/04/15 BI-WEEKLY DEFERRED COMP PLAN
2043468 06/17/15 15637 VALDEZ FAMILY SURVIVORS TRUST Ref002434294 06/03/14
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