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HomeMy WebLinkAbout09-03-14 Board Packet (Part 2) 1 OTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY September 3, 2014 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF JULY 2, 2014 AND AUGUST 6, 2014 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 RECESS TO CLOSED SESSION 6. CLOSED SESSION a) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE §54957.6] AGENCY DESIGNATED REPRESENTATIVES: PRESIDENT LOPEZ AND DIRECTOR THOMPSON EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION AND ALL REPRESENTED AND UNREPRESENTED PERSONNEL INCLUD- ING MANAGEMENT AND CONFIDENTIAL EMPLOYEES 2 b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION [GOVERNMENT CODE §54957.6 TITLE: GENERAL MANAGER RETURN TO OPEN SESSION REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 7. ADOPT RESOLUTION NO. 4242 TO APPROVE THE MEMORANDUM OF UN- DERSTANDING (MOU) BETWEEN THE OTAY WATER DISTRICT AND THE OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION EFFECTIVE JULY 1, 2014 THROUGH JUNE 30, 2017, FOR THE FIELD EMPLOYEES AND ADMIN- ISTRATIVE EMPLOYEES BARGAINING UNITS AND APPROVE EXTENDING THE SAME COST-OF-LIVING ADJUSTMENTS AND RELATED BENEFITS FOR THE MANAGEMENT AND CONFIDENTIAL EMPLOYEES; AND ADOPT ORDINANCE NO. 547 TO AMEND THE EMPLOYER-EMPLOYEE LABOR RE- LATIONS PROVISIONS OF THE CODE OF ORDINANCES (WILLIAMSON) 8. APPROVE A NEW AGREEMENT WITH THE GENERAL MANAGER WITH A TERM ENDING SEPTEMBER 3, 2017 AND PROVIDING A 2.5% COST-OF-LIV- ING ADJUSTMENT 9. LEGISLATIVE UPDATE (CHRIS FRAHM AND ROSANNA CARVACHO, BROWNSTEIN HYATT FARBER AND SCHRECK) CONSENT CALENDAR 10. 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) AWARD TWO (2) PROFESSIONAL AS-NEEDED ENGINEERING DE- SIGN SERVICES CONTRACTS TO ARCADIS AND PSOMAS, EACH IN AN AMOUNT NOT-TO-EXCEED $300,000 FOR FISCAL YEARS 2015 AND 2016. THE TOTAL AMOUNT TO BE AWARDED OVER THE DU- RATION OF THE CONTRACT WILL NOT EXCEED $300,000 WITHOUT ADDITIONAL BOARD AUTHORIZATION b) REQUEST AUTHORIZATION TO EXECUTE AND RECORD GRANT DEEDS NECESSARY TO PERFECT TITLE ON THE OTAY WATER DIS- TRICT (APN 597-041-50-00) AND THE GORE (APN 597-041-51-00) PROPERTIES c) ADOPT RESOLUTION NO. 4240, FIXING TERMS AND CONDITIONS FOR THE ANNEXATION OF CERTAIN REAL PROPERTIES OWNED BY 3 THE OTAY LAND CO., LLC, APNs: 644-070-12, 14, 16, 17 AND 19-00 INTO THE OTAY WATER DISTRICT IMPROVEMENT DISTRICT NOS. 22 AND 27 d) APPROVE THE ADOPTION OF A MITIGATED NEGATIVE DECLARA- TION FOR THE 870-1 RESERVOIR ACCESS ROAD PAVING PROJECT ACTION ITEMS 11. ADMINISTRATION, FINANCE AND INFORMATION TECHNOLOGY a) ADOPT ORDINANCE NO. 545 AMENDING SECTION 9, ANNEXATIONS AND DETACHMENTS 9.04 B AND C.4; SECTION 28 CONNECTION FEES AND CHARGES FOR POTABLE OR RECYCLED WATER SER- VICE 28.01 A AND B; SECTION 53, CONDITIONS FOR SEWER SER- VICE 53.03 A.1; AND APPENDIX A OF THE DISTRICT’S CODE OF OR- DINANCES WHICH WILL INCORPORATE THE FOLLOWING CHANGES: (BELL) i. UPDATE THE CURRENT WATER CAPACITY FEE (INCLUDING THE TRIAD FEE) AND NEW WATER SUPPLY FEE TO REFLECT THE VALUE OF THE DISTRICT’S CURRENT AND FUTURE ASSETS ii. UPDATE THE WATER ANNEXATION FEE TO REFLECT THE UPDATED “BUY-IN” FOR NEW CUSTOMERS ANNEXING INTO THE OTAY WATER DISTRICT BOUNDARIES iii. MODIFY THE SEWER CAPACITY FEE TO A NEW “COMBINED” METHODOLOGY OF CHARGING CAPACITY FEES WHICH IS CONSISTENT WITH THE METHODOLOGY USED FOR WATER, WHICH REFLECTS THE VALUE OF THE DISTRICT’S CURRENT AND FUTURE ASSETS 12. BOARD a) DISCUSSION OF THE 2014 BOARD MEETING CALENDAR INFORMATIONAL ITEM 13. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA- TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) FISCAL YEAR 2014 FOURTH QUARTER CAPITAL IMPROVEMENT PROGRAM REPORT (MARTIN) b) INFORMATIONAL REPORT ON THE DISTRICT’S INTENT TO REDE- SIGN THE CURRENT DISTRICT WEBSITE (KERR) 4 REPORTS 14. GENERAL MANAGER’S REPORT a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE 15. DIRECTORS' REPORTS/REQUESTS 16. PRESIDENT’S REPORT/REQUESTS 17. 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 August 29, 2014, I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time be- ing at least 72 hours in advance of the regular meeting of the Board of Directors (Gov- ernment Code Section §54954.2). Executed at Spring Valley, California on August 29, 2014. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 3, 2014 SUBMITTED BY: Rita Bell, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Ordinance No. 545 Amending Section 9, Annexations and Detachments; Section 28 Connection Fees and Charges for Potable or Recycled Water Service; Section 53, Conditions for Sewer Service; and Appendix A of the Code of Ordinances to Adjust the District’s Water Capacity Fee, New Water Supply Fee, and Annexation Fee; Create a Sewer Capacity Fee and Modify the Sewer Annexation Fee, with all Changes to be Effective October 1, 2014 GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 545 amending Section 9, Annexations and Detachments 9.04 B. & C.4; Section 28 Connection Fees and Charges for Potable or Recycled Water Service 28.01 A & B; Section 53, Conditions for Sewer Service 53.03 A.1; and Appendix A of the Code of Ordinances which will incorporate the following changes effective October 1, 2014. 1) Update the current water capacity fee (including the Triad fee) and new water supply fee to reflect the value of the District’s current and future assets. 2) Update the water annexation fee to reflect the updated “buy-in” for new customers annexing into the Otay Water District boundaries. 3) Modify the sewer capacity fee to a new “combined” methodology of charging capacity fees which is consistent with the methodology used for water, which reflects the value of the District’s current and future assets. 4) Modify the sewer annexation fee to reflect a new “buy-in” methodology which will only be charged to new customers annexing into a sewer improvement district (ID). This is also consistent with the current water annexation fee. COMMITTEE ACTION: See Attachment A. PURPOSE: To obtain approval of Ordinance No. 545 that would modify the water and sewer capacity and annexation fees the District charges. SUMMARY: At the time of connection to a public agency’s utility system, customers are typically charged a capacity fee to “buy in” to the water and wastewater systems. The capacity fee requires new users to pay for their share of the costs to construct the facilities required for providing their water and sewer service. Revenues generated through the proposed capacity fees can be used to directly offset system expansion costs, repay debt issued for the water system expansion, or for renewal and replacement of capital projects. Use of capacity fee revenues to offset these capital and debt service costs reduces the amount of revenue required from rates assessed to existing users. In this way capacity fee revenues, in effect, reimburse the existing users (through lower rates) for the costs they have incurred to provide capacity for new users. In addition, the new water supply fee pays for the expansion cost of capital for new water supply projects. This fee could be incorporated into the capacity fee; however, the recommendation is for it to remain separate from the general capacity fee to highlight how the District is charging new users for the new supply. An annexation fee is based on all availability fees and property taxes paid by existing users. For water customers it is charged to all properties annexing into the Otay Water District boundaries. For sewer customers it is proposed to be charged to all properties annexing into a sewer ID. This fee compensates the existing users for their past investment in the District’s water and sewer systems. The proposed fees, effective October 1, 2014, are applied per Equivalent Dwelling Unit (EDU) and are as follows: Current Fee Proposed Fee Change Water Capacity Fee $8,237 $7,984 ($253) New Water Supply Fee $949 $989 $40 Annexation Fee $1,622 $1,777 $155 Total $10,808 $10,750 ($58) Triad Capacity Fee $6,164 $5,990 ($174) Sewer (in ID) Capacity Fee (buy-in) $0 $4,092 $4,092 Sewer (outside ID) Capacity Fee (buy-in) $5,986 $4,092 ($1,894) Capacity Fee (debt) $0 $2,308 $2,308 Annexation Fee $0 $1,018 $1,018 Total (outside ID) $5,986 $7,418 $1,432 BACKGROUND: A District objective is that growth pays for growth. This is achieved by charging capacity and annexation fees to new customers. Periodically, these fees are reviewed and updated to ensure equity and accuracy of the fees. In 2010, a Capacity and Annexation Fee study was performed. In May of 2010, the Board changed the fee structure for water. The capacity fee structure was changed from an incremental to a combined fee methodology. A new water supply fee was established to separately identify the cost of new water supply projects and is essentially a subcomponent of the capacity fee that we choose to show separately. The water annexation fee methodology was also modified in 2010 to reflect both the changes in the capacity fee study and to use an industry accepted method for calculating the fee. This fee is charged to new customers annexing into the Otay Water District boundaries. The purpose was to collect from new water customers their fair share of taxes (1% property tax and availability fees) already paid by the existing customers in the District. In the 2010 study, the sewer capacity and annexation fees were not updated. Currently, the District has what is called a sewer annexation fee, a more industry standard name for this fee would be the “buy-in” portion of a capacity fee. No expansion of this system was or is planned so the expansion component of the capacity fee was not necessary. In October 2013, an RFP was issued to retain a consultant to conduct a water and sewer capacity and annexation fee study for the District. Three firms responded and, in December 2013, under the General Manager’s authority, the firm of HDR was retained to perform a capacity and annexation fee study for the District. The results of this study are presented below. STUDY RESULTS: Fee Analysis: There are several industry accepted methodologies to use when calculating capacity and annexation fees which are viable under California law. The first capacity fee method is the Combined Capacity Fee, which is what the District currently uses for the water capacity fee. Under this methodology, the cost of the current system plus the cost of all future expansion projects is divided by all customers existing and future. The following illustrates the combined fee methodology. Existing and Future Asset Values Existing and Future Equivalent Meters The second is the Incremental Capacity Fee method where the cost of all future expansion projects is divided by all future customers. Currently, this is the method used by the District for calculating the sewer capacity fee. Since 1998 there have been no sewer expansion projects therefore, the sewer capacity fee is essentially zero. The following illustrates the components of this calculation. Value of Future Facilities Future Equivalent Meters The third capacity fee method is called the Buy-in Fee, where the cost of the current system, including the excess capacity, is divided by the existing customers. This fee is charged to all new customers and reflects how much existing customers have paid for the current system. The current sewer annexation fee uses this method and therefore, is essentially a sewer Buy-in Capacity Fee. The calculation is illustrated below. Existing Asset Value Existing Equivalent Meters Annexation fees are commonly used by cities and districts and ensure that existing users are compensated for their past investment in the water system. Under this methodology, all property taxes paid by the existing District property owners (1% property tax and availability fees) is divided by the total number of existing EDUs within the District. The calculation is illustrated below. Total Taxes Collected Existing EDUs Asset Valuation: There are two ways to value the cost of existing facilities. The first valuation methodology is reproduction cost. This method uses the original cost of existing facilities adjusted for inflation. The second valuation methodology is replacement cost or what it would cost today to build the same functional infrastructure (which means it may not be identical in construction methods or materials, but that it performs the same function). Staff and the consultant’s recommendation is to use replacement cost using depreciated value as the basis for valuation of water and sewer pipelines. Reproduction cost using depreciated value is recommended for all other assets such as reservoirs and pump stations. Water Capacity and Annexation Fees: This study’s recommendation is to continue to use the Combined Capacity Fee methodology for the calculation of the water capacity fee. The current water capacity fee is $8,237.03 after being adjusted for the ENR Index through June 1, 2014. Based on the most up-to-date capital improvement plan, the newly calculated water capacity fee is $7,984. A discounted capacity fee of $5,990 was calculated for the Triad developers by excluding future potable storage, thereby recognizing their prepayment of storage. In May 2010, the Board authorized a New Water Supply fee which separately identifies the cost of new water supply projects. The current study recommends continuing the same methodology as the basis of the fee and to update the current fee of $949.03, inflated by ENR, to the recommended fee of $989 which reflects the current capital plan. This study also recommends to continue the current industry accepted water annexation fee methodology. This fee is charged to new customers that want to annex into the Otay Water District boundaries, since they have not historically paid their share of these fees or taxes. Thus, existing users are compensated for their past investment in the District’s water system. The current water annexation fee is $1,622.36, after being adjusted for the ENR Index through June 1, 2014, and the new recommended fee is $1,777 reflecting the updated cumulative tax collections. Sewer Capacity and Annexation Fees: The sewer capacity and annexation fees were last updated in November 1998 as part of a fee study. Currently, the District has no sewer capacity fee (based on the 1998 study) and an annexation fee of $5,985.73. The annexation fee currently charged is really a “buy-in” capacity fee meant to reimburse the sewer customers who built the sewer infrastructure. The current annexation fee is only charged when a customer is annexed into a sewer ID. At the time of the 1998 study it was thought that some customers, up to one-third, would not pay the annexation fee or capacity fee. But in fact, in the past five years only 5 of 27 new sewer connections paid an annexation fee because these 5 customers were outside a sewer ID. The flaw in the prior thinking did not anticipate that so many new sewer customers would pay no connection fee. Based on this current study, staff recommends that all new sewer customers should have to “buy-in” to the sewer system to ensure all customers pay their fair share. Additionally, because customers who were already in a sewer ID paid debt (used for the construction of sewer facilities) that was collected through the tax role, it is necessary to create two separate capacity fees. The first capacity fee applies to parcels within an ID that paid prior tax debt, which is recommended to be set at $4,092. The second capacity fee applies to parcels outside an ID that have not paid tax debt and it is recommended to be set at $6,400 ($4,092 + $2,308 see table above). By establishing two separate sewer capacity fees it ensures that each new customer pays their fair share of facilities and that no customer is overcharged. The new recommended sewer annexation fee is set at $1,018 based on the availability fees paid via the tax role by existing customers. The new annexation fee would only be paid by new customers that are not currently in a sewer ID and therefore, are required to annex into a sewer ID prior to any sewer connection. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The fiscal impact for Fiscal Year 2015, based on the projected meter sales, is an estimated decrease in capacity fees and an increase in new water supply fees of approximately $46,178 and $7,295, respectively. There is no expected fiscal impact for the new water annexation fee in Fiscal Year 2015 since the District does not anticipate any new annexations. All long-term fiscal impacts of these rate changes will be assessed and considered in the future rate modeling. The proposed changes in these fees are not expected to have a significant long-term fiscal impact because of the minimal change in the amounts. Because new sewer connections are minimal, on average less than two a year, it is difficult to determine the fiscal impact. However, based on the history of sewer, the assumption is that there will be an increase in sewer capacity and annexation fees that will offset future sewer rate increases and debt. STRATEGIC GOAL: To ensure that the costs of service are born by responsible parties. This revenue source will help the District meet its fiscal responsibility to its ratepayers. LEGAL IMPACT: None. General Manager Attachments: A) Committee Action Form B) Ordinance No. 545 Exhibit 1 Strike-through Section 9 Exhibit 2 Strike-through Section 28 Exhibit 3 Strike-through Section 53 Exhibit 4 Strike-through Appendix A C) Proposed Section 9 D) Proposed Section 28 E) Proposed Section 53 F) Proposed Appendix A G) Fee Study by HDR H) Presentation by HDR ATTACHMENT A SUBJECT/PROJECT: Adopt Ordinance No. 545 Amending Section 9, Annexations and Detachments; Section 28 Connection Fees and Charges for Potable or Recycled Water Service; Section 53, Conditions for Sewer Service; and Appendix A of the Code of Ordinances to Adjust the District’s Water Capacity Fee, New Water Supply Fee, and Annexation Fee; Create a Sewer Capacity Fee and Modify the Sewer Annexation Fee, with all Changes to be Effective October 1, 2014 COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on August 18, 2014 and the following comments were made:  Staff indicated that the District updates its capacity and annexation fees every four (4) to six (6) years. The purpose of updating the fees is to assure that growth pays for growth and to verify that the rates are based on cost.  The last capacity and annexation fee study was completed in 2010 and, at that time, the District modified the methodology of some of the District’s fees which is explained in the staff report.  The District had met with the Developers in April 2014 and shared with them the capacity and annexation fee study and the updates to the fees that are being proposed.  Mr. Tom Gould of HDR reviewed the results of the study they had prepared on the District’s Capacity and Annexation fees. He stated that it is prudent to review the fees on a regular basis as conditions change (growth, facilities, time value of money, etc.) and the fees should reflect the current environment.  It was indicated that capacity and annexation fees are different from rates. Rates are charged for the operation and maintenance of the water and sewer systems. Capacity and annexation fees are for new customers who wish to connect to the system. The fees:  Are to charge new customers an equitable share of the cost of infrastructure to serve their needs (“growth paying for growth,” that is, new customers pay for new facilities and their proportionate share of the existing distribution system)  Shelters existing customers from impacts of system expansion for growth  Generates revenue for growth related facilities  The methodology for determining the water capacity and annexation fees is consistent with the District’s 2010 study. The past studies have used generally accepted practices.  The study looked at capital improvement projects that would provide for new capacity or expansion on the system. It was indicated that in situations where an existing facility will be upsized, the portion that is upsized would be included in the expansion fee. Replacement of a facility would be borne by the existing ratepayers.  It was explained that the Capacity Fee is used to fund existing facilities along with any expansion to serve growth and the New Supply Fee is for funding new water supply projects. The fees are based on connection size/meter size and the number of equivalent EDU’s (Equivalent Dwelling Units – the safe operating capacity of the water meter) required to serve a customer’s property. It was indicated that a 2-inch water meter has eight (8) times the capacity of a 3/4-inch meter (or a 2-inch meter is equivalent to eight [8] 3/4-inch meter connections). The capacity and new supply fee increase in relation to the amount of capacity (meter size) the customer is requesting from the system. The study’s review of the District’s Capacity fee proposes that it be lowered slightly and the Water Supply fee be increased a little (see page 8 of presentation for the new proposed Capacity and New Supply fees by meter size).  For a 3/4-inch meter (1 EDU), the Capacity and New Supply fee together would decrease from $9,186 to $8,973 or -$213. Staff noted that the capacity and new supply fees are adjusted each quarter based on the ENR index and is the reason there is a small change in the proposed fees between studies. The fees are kept fairly updated through the quarterly inflation adjustments. The proposed rates were calculated using June 30, 2013 data, which was the most up- to-date data available. The proposed fees were then adjusted to June 1, 2014 using the ENR index. If approved, the proposed fees will be adjusted further as per in the Code of Ordinance using the September 1, 2014 ENR index. Therefore, the October 1, 2014 implementation will use the June 30, 2013 calculated fees adjusted by the ENR values to September 1, 2014.  Staff indicated that the board has been conscientious to assure that the ratepayers are not paying for the cost of expansion. The District has been preparing Cost of Service Studies for many years to assure that this objective is met.  It was indicated that the District currently has an annexation fee for sewer and is not charging a capacity fee presently. The annexation fee, however, is more of a capacity fee rather than an annexation fee. The study proposes that the terminology be made consistent between water and sewer. Thus, what the District termed as an annexation fee, will now be termed a capacity fee and an annexation fee will be established for sewer.  The new sewer capacity fee will be changed to a similar methodology as the water capacity fee. It will not include future planned assets/improvements and considers only existing sewer assets. The present sewer capacity fee “former annexation fee” for a Residential unit outside a sewer ID per EDU is $5,986. The fee is based on the capacity requirements that a new customer places on the system (see page 13 of presentation).  The proposed policy for sewer capacity fees was presented:  Customers within an ID area: o would pay the capacity fee less a debt credit (the 1% general tax [availability fee] which they have paid in the past) o would receive reductions recognizing their previous payments of debt o pay a fee for their share of facilities paid for through rates  Customers outside of an ID area: o Would pay a capacity and annexation fee  The study proposes that the sewer capacity fee for a residential unit (1 EDU) for customers within an ID area be set at $4,092 and if the customer is outside an ID area, the fee will be set at $6,400. Staff noted that the District had a sewer State loan which was paid off approximately four (4) years ago. This debt was paid through the tax rolls. Thus, if a customer was within a sewer ID, he/she was paying for this sewer debt on their property taxes. If the customer was outside a sewer ID, he/she was not paying for this sewer debt.  The purpose of an Annexation fee is to bring equity to existing customers who have paid the general tax and availability fees into the system over the years and those that have not. The District has established an annexation fee for water, however, an annexation fee was never established on the sewer side.  In comparing the present and new proposed sewer fees, for parcel outside an ID, there will be a $415 increase in the fee. The present fee is $5,986 (this fee was titled an Annexation fee, but was really a Capacity fee) and the new proposed Capacity fee is $6,400. For parcels within an ID who formerly paid no capacity fee the new sewer capacity fee will be $4,092.  Any customer outside of the District’s service area or ID areas who annexes into the District’s system is subject to pay an annexation fee. The fee is a one-time fee and a share is equal to the value of the past fees and taxes paid by existing customers. The fee is determined by accumulating the past taxes and availability fees and bringing them into current day dollars (applying CPI), and dividing by current EDU’s. This will determine the “buy- in” share per EDU.  The current water annexation fee for a 3/4-inch meter is $1,622. It is proposed that the fee be increased slightly to $1,777 for a 3/4-inch meter. It is proposed that the District implement a new annexation fee for sewer. The new sewer annexation fee for a residential customer (1 EDU) is $1,018 (see page 20 of the presentation for the new proposed annexation fees by meter size and EDU’s). Staff indicated that this fee is only for customers who are annexing into an ID. If a customer is already in an ID, they would not pay this fee.  In response to an inquiry from the committee, staff confirmed that all the District’s sewer customers are located within Division 5.  It was discussed that the Sewer Annexation fee is a new proposed fee and it is a policy decision by the board if they wished to implement the new fee. It was noted that approximately 90% of customers are already within an ID. Over the last five (5) years the District has received 27 customer requests to connect to the District’s sewer system. Of the 27 only 3 paid a sewer capacity fee (formerly known as the annexation fee).  It was indicated that if the District charged less than what is proposed by the study, then in effect, the District would be sharing the cost of growth between the existing customers and the new customers.  The District’s attorney explained in response to an inquiry from the committee, that if the District under-collected fees, it cannot go back and collect back fees. The fees would become a proposed tax which would be voted on by the sewer ratepayers.  The committee requested that the developers be made aware that this item would be presented to the board for consideration at the September 3 board meeting. Upon completion of the discussion, the committee received staffs’ report and supported presentation to the full board as an action item. 1 ORDINANCE NO. 545 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 9, ANNEXATIONS AND DETACHMENTS; SECTION 28, CONNECTION FEES AND CHARGES FOR POTABLE OR RECYCLED WATER SERVICE; SECTION 53, CONDITIONS FOR SEWER SERVICE; AND APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Section 9, Annexations and Detachments; Section 28, Connection Fees and Charges for Potable or Recycled Water Service; Section 53, Conditions for Sewer Service; and Appendix A be amended as per Exhibits 1, 2, 3 & 4 to this resolution. NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 9, Annexations and Detachments (Attachment C); Section 28, Connection Fees and Charges for Potable or Recycled Water Service (Attachment D); Section 53, Conditions for Sewer Service (Attachment E); and proposed Appendix A (Attachment F) of the Code of Ordinances shall become effective October 1, 2014. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 3rd day of September 2014, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Attachment B 2 ________________________________ President ATTEST: __________________________ District Secretary 9-1 CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 ANNEXATIONS AND DETACHMENTS 9.01 REQUIREMENT OF ANNEXATION FOR SERVICE Except as provided elsewhere in this Code, whenever utility service is requested for land outside the boundaries of an improvement district, the land to be serviced must first be annexed to an improvement district(s). If the land is located outside the boundaries of the District, the land must also be annexed to the District. 9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS DISTRICTS An owner or owners of land within the District desiring to annex to or detach land from an improvement district within the District must file a petition for such proceeding with the District. Annexation proceedings shall be con- ducted pursuant to Chapter I (commencing with Section 72670) of Part 11, Division 20 of the California Water Code. Detachment or exclusion proceedings shall be conducted pur- suant to Part 8.5 (commencing with Section 72080) of Divi- sion 20 of the California Water Code. If the land proposed to be annexed is outside the boundaries of the territory served by the Metropolitan Water District of Southern California and the territory served by the San Diego County Water Authority, and no local sources of water are available to serve such land, the District will require that the land be annexed to those entities as well. 9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO An owner or owners desiring to annex land to or to detach land from the District may either (i) file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii) request the District to file the petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox Local Government Reorganization Act of 1985, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including Exhibit 1 9-2 without limitation any conservation or local supply use requirements. 9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS A petitioner requesting an annexation to or detachment from the District or within the District shall pay the following applicable fees and charges: A. Administrative Processing Fees 1. District Processing Fee. A District processing fee (see Appendix A, Section 9.04 A.1. for fee) shall be paid to the District for each annexation or detachment proceeding, regardless of the number of parcels involved, provided all parcels are included in one proceeding. This fee shall constitute the "base rate" on March 3, 1997. The base rate shall be adjusted annually for fluctuations in the Con- sumer Price Index (Urban Wage Earners and Clerical Workers - Los Angeles) and subsequent cost-of-living adjustment (COLA). 2. Additional Processing Fees or Charges. The peti- tioner shall pay all processing fees and charges due LAFCO, the State Board of Equalization and any other applicable government agency. 3. Concurrent Annexations to or Detachments from the District and an Existing Improvement District. No additional processing costs or fees will be charged to a petitioner for an annexation to or detachment from an existing improvement district when the proceeding is part of an annexation to or detachment from the District. 4. Payment of Fees and Charges. The District processing fees and charges shall be paid to the District at the time the petition for such proceeding is filed. Where a petition is filed with LAFCO, the District shall notify LAFCO that payment of all required fees and charges to the District shall be a condition for District approval of the annexation or detachment. B. Water Annexation Fees. for Annexations into the Otay Water District Boundaries. The annexation fee (see Appendix A, Section 9, 9.04 B.) shall constitute the "base rate" on August 6October 1, 2014). The base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 9777.1910,739.43 on July Formatted: Underline 9-3 1, 2009 June 1, 2014 shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 10, 2009June 1, 2014 to the date of payment. 1. No water annexation fee shall be required for existing and future agricultural water service furnished by the District under the COMMERCIAL AGRICULTURAL category of Section 25 of the Code. 2. Non-permanent irrigation water service furnished by the District under Section 30 of the Code shall be available without payment of a water annexation fee. 3. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a water improvement district. 4. Water Meter Type Exclusions. Annexation fees shall be collected on all water meters sold except for temporary water meters, water tank truck meters, nonpermanent irrigation water meters and outside user meters, all as defined elsewhere in this Code. 5. Effective Date. Annexation fees shall be col- lected on all lands annexing into the Otay Water District boundaries on or after March 5, 1997. 6. Basis for Determination. For annexations of land into the Otay Water District boundaries, the petitioner shall pay an annexation fee. The fee shall be paid at the time of petition to be annexed. There shall be no water annexation fee charged for parcels already within District boundaries that are applying to be annexed into a water ID. For permanent water meters, except for commercial agricultural meters, the annexation fee shall be determined on the basis of the demand to be placed on the District-wide water system. The fee will be determined on the basis of the size of the water meter required, as set forth in Section 27 of the Code. The fee shall be determined by multiplying the demand factor for the meter size, as set forth in Section 28 of the Code, by the annexation fee per EDU. See Appendix A, , Section 99.04 B. for fees. 9-4 C. Sewer Annexation Fees for Annexations to Sewer Improvement Districts 1. Improvement District Annexation. All annexation for sewer service shall be into Improvement District No. 18 on or after December 16, 1998. 2. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a sewer improvement district. 3. Effective Date. Annexation fees shall be collected on all lands annexing to a sewer improvement district on or after December 16, 1998. 4. Basis for Determination. For annexations of land to a sewer improvement district within the Dis- trict, the petitioner shall pay an annexation fee. The fee shall be determined on the basis of the demand to be placed on the District sewer system. The fee shall be paid at the time of sewer service connection request or General Manager's approval of plans, whichever occurs earlier. The extent of the demand will be determined on the basis of each equivalent dwelling unit (EDU) of service which is to be connected to the District sewer system. The number of EDUs prescribed in Section 53 of the Code shall be the basis for computation of the amount of the annexation fee. The fee will be determined by multiplying the number of EDUs by the annexation fee per EDU. See Appendix A, Section 9, 9.04 C.4 for fees. This annexation fee shall constitute the "base rate" on December 16, 1998October 1, 2014. The base rate shall be adjusted quarterly for fluctuations in construction costs as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of $6,859.451,01810,739.43 (as of November 9, 1998June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from November 9, 1998June 1, 2014 to the date of payment. D. Detachment Fees For each detachment of land from an improvement district, the petitioner shall pay such fees as the General Manager determines are appropriate for Formatted: Indent: Left: 0", Hanging: 1.5", Line spacing: single, Tab stops: 1", Left Formatted: Underline Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight 9-5 the detachment. Determinations shall be made by the General Manager on a case-by-case basis. 9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT DISTRICT Where property is annexed by a petitioner, other than a tax-exempt agency, the property in the annexed area shall be subject to taxation after the annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district authorized and outstanding at the time of the annexation. The Board of Directors shall provide as a condition of the annexation that the annexed area shall be subject to taxation as if the property had always been a part of the improvement district. 9.06 OTHER CONDITIONS OF ANNEXATION By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 28-1 SECTION 28 CONNECTION FEES AND CHARGES FOR POTABLE OR RECYCLED WATER SERVICE 28.01 COLLECTION OF FEES AND CHARGES A. Fees and Charges to be paid by the Customer. The following fees and charges shall be paid by the customer to connect to a District water system for potable water or recycled water service; these are in addition to the fees and charges in Section 9 and 25. Fees and charges shall include, but not be limited to, District fees, San Diego County Water Authority fees, applicable zone charge and charges for work performed by District personnel on behalf of the customer. These charges may include the installation by District personnel of a water service lateral, and inspections required due to the requirement of a back flow device. These charges may also include a meter fee, installation fee (where laterals exist), lateral fee, meter box fee, and excavation permit fee. B. Basis for Determination of Connection Fees and Charges. The fees and charges shall be determined as follows: For permanent water meters, including potable or recycled irrigation service, the total water connection fee shall be determined on the basis of the demand to be placed on the District water system. The extent of demand will be determined on the basis of the size of the water meter, as set forth in Section 27 of the Code. For individually metered residential fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The water connection fee will be determined by multiplying the demand factor for the meter size, as set forth below, by the total of the District-wide capacity fee and applicable zone charge. Meter Size Demand Factor 3/4" 1 1 2-1/2 1-1/2" 5 2" 8 3" 16 4" 25 6" 50 8" 80 10" 115 Exhibit 2 28-2 1. 1. The District-wide capacity fee and the applicable zone charge shall constitute the "base rate." For fees or charges after July 1, 2010August 6, 2014October 1, 2014, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 9777.19 10,739.43(as of July 1, 2009June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 10, 20091, 2014 to the date of payment. (See Appendix A, Section 28, 28.01 B.1. for fees.) 2. The District-wide new water supply fee shall constitute the “base rate.” For fees or charges after July 1, 2010August 6, 2014October 1, 2014, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 9777.1910,739.43 (as of July 1, 2009June 1, 2014) shall be deemed the “base index.” The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 10, 20091, 2014 to the date of payment. (See Appendix A, Section 28, 28.01 B.2. for fees.) 28.02 INSTALLATION CHARGES FOR WATER METER AND WATER SERVICE LATERALS The determination of the water meter or service lateral size shall be based upon the information provided by the customer as detailed in Section 27 of the Code. The meter fees and installation charges are set forth in Appendix A, Section 28, 28.02. Where a new water lateral is required, a customized, written estimate of the District's costs will be prepared. The customer shall deposit the estimated costs with the District prior to commencement of the work. If actual costs incurred by the District are less than the amount deposited, the District shall refund the excess to the customer. If the actual costs incurred exceed the amount deposited, the customer shall reimburse the District for the additional costs. Formatted: Numbered + Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment: Left + Aligned at: 1.5" + Indent at: 2" Formatted: Indent: First line: 0" 28-3 A. The meter fees and installation charges shall be set effective September 1, 2012, and then adjusted in the same manner as capacity fees as described in Section 28.01 B.1 above (See Appendix A, Section 28, 28.01 B.2. for fees). 28.03 METER FEE REFUND A. If a water meter/service has been paid for but not installed, a customer may receive a refund of the District’s capacity fee and charges. If San Diego County Water Authority capacity fees have been paid to San Diego County Water Authority, the customer shall request a refund from San Diego County Water Authority. B. If the customer wants to change the meter/service size, they will be credited with the number of equivalent dwelling units they have previously purchased and will be refunded any balance per Section 28.03 A, above. If additional equivalent dwelling units are required, the customer will be charged based on 28.01 and 28.02. C. If a water meter/service has been previously paid and installed, and the customer requests a different meter size, the customer shall pay for the new meter and installation fees, plus any differential in capacity and new water supply fees as described in Section 28.03 B above. 53-1 SECTION 53 CONDITIONS FOR SEWER SERVICE 53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY Sewer service capacity may be acquired only for service to a specific address, parcel of land, or a land development project covered by an approved map. An approved map shall mean a recorded final map, a recorded parcel map or a tentative sub- division map that has been approved by the County or by a City, as applicable. A. District Acceptance of Sewer Facilities for Russell Square Area - Under an Agreement with Cal Dorado Development, Inc., dated June 28, 1981, the District accepted title to a sewer pump station, force main and appurtenances for a sewage system to provide sewer service to the residential dwelling units to be constructed within the parcels of land in San Diego County Tentative Parcel Map 17150. Under an Agreement with Cal Dorado Development, Inc., dated June 18, 1981, the District agreed to provide service to such parcels on the terms and conditions contained therein. On October 1, 1984, pursuant to Resolution No. 2139, the District Board of Directors accepted title to the facilities. 53.02 SERVICE AREAS Sewer service shall be furnished by the District only to property located in Improvement District No. 14 (ID 14), Improvement District No. 18 (ID 18), and Assessment District No. 4 (AD 4), and the Russell Square Sewer Service Area. Sewer service to property located outside such areas may be furnished only upon annexation to ID 18 and payment of all applicable annexation fees. (Appendix A, Section 9, 9.04 C.4.) A. Designation of Russell Square Sewer Area - The geographical area described on the District Map entitled "Russell Square Sewer Service Area," dated October 11, 1988, on file with the District Secretary, constitutes the Russell Square Sewer Service Area. 53.03 53.03 ACQUISITION OF SEWER CONNECTIONS FOR SERVICE A. A. ID 14, ID 18 and AD 4 Prior to December of 1998 the sewer customers who have been in an ID but not yet connected to the sewer system have paid sewer tax debt. Effective SeptemberOctober 1, 2014 two separate sewer capacity fees have been established to ensure sewer customers do not pay for facilities twice. The first capacity fee applies to parcels within an ID that paid prior tax debt. The second capacity fee applies parcels outside an ID that have not paid the tax debt. The sewer capacity fees shall constitute the "base rate." For fees or charges after October 1, 2014, the base rate shall Exhibit 3 Formatted: Outline numbered + Level: 2 + Numbering Style: 01, 02, 03, … + Start at: 3 + Alignment: Left + Aligned at: 0.38" + Indent at: 0.89" Formatted: Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Aligned at: 1" +Indent at: 1.5" Formatted: No underline Formatted: Indent: Left: 1.5", First line: 0" 53-2 be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43(as of June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. 1. Sewer ConnectionCapacity Fee within an ID - There shall be no connection capacity fee for sewer service to parcels already annexed into Improvement District No. 14, Improvement District No. 18 and Assessment District No. 4 on or after December 16, 1998.All new sewer connections for parcels within a sewer ID shall pay a connection fee (Ccapacity Ffee) for each Equivalent Dwelling Unit (EDU) of sewer service provided. The connectioncapacity fee is due at the time an application for sewer service is submittedrequested. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. (See Appendix A, Section 53 for fees) In addition, the customer for such service shall pay the monthly service charge for sewer service set forth in Section 53.10 A and B. 2. Sewer ConnectionCapacity Fee outside an ID All new sewer connections for parcels not within a sewer ID (requiring to be annexed into a sewer ID18 per code Section 9.04 C.) shall pay a connection fee (Ccapacity Ffee) for each Equivalent Dwelling Unit (EDU) of sewer service provided. The connectioncapacity fee is due at the time an application for sewer service is submittedrequested. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. (See Appendix A, Section 53 for fees) B. Russell Square Pump Station 1. Sewer Connection Fee A connection fee (see Appendix A, section 53, 53.03 B.1. for fee) for each Equivalent Dwelling Unit (EDU) of sewer service provided through Russell Square Pump Station shall be collected. The connection fee is due at the time an application for sewer service is submitted. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. (a) Exempt Parcels - The connection fee shall not apply to connections for sewer service to the parcels within the Tentative Parcel Map 17150. Such exempt parcels are currently identified as Formatted: No underline Formatted: Indent: Left: 1.5", First line: 0" Formatted: Numbered + Level: 2 + Numbering Style: 1, 2,3, … + Start at: 1 + Alignment: Left + Aligned at: 1.5" + Indent at: 1.75" Formatted: Underline Formatted: Underline Formatted: Underline Formatted: Indent: Left: 1.5" Formatted: Indent: Left: 0", Hanging: 1.5" Formatted: Indent: Left: 1.5" 53-3 Assessor Parcel Nos. 497-011-41, 497-011-42, 497- 011-44, 497-011-46 and 497-011-47. 2. Monthly Sewer Service Charge A monthly sewer service charge (see Appendix A, Section 53, 53.03 B.2 for charge) to cover normal operational costs of the Russell Square Pump Station and force mains shall be collected. This charge shall be reviewed by the Board of Directors from time to time to assure that such charges cover the costs for operation of the sewer facilities. The proceeds of the fees and charges received by the District under 53.03 B.1 and 53.03 B.2 shall be used by the District solely for maintenance, replacement or repair under 53.03 B.1 and for the operation of the facilities under 53.03 B.2. In addition, the customer for such service shall pay the monthly service charge for sewer service set forth in Section 53.10 A and B. 53.04 CHARGES FOR INSTALLATION OF SEWER LATERALS Upon application for construction of one or more sewer laterals, the customer shall deposit with the District the estimated costs to be incurred by the District in connection with the instal- lation of the facilities required, as determined by the District. Upon completion of the work, the District shall calculate the actual costs incurred by the District in performing the work. If actual costs are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If actual costs exceed the amount deposited, the customer shall reimburse the District for the additional costs. 53.05 PAYMENT OF FEES All fees prescribed in the Code shall become owing, due and payable at the time application is made to connect a premise to the sewer system of the District. The fees shall be paid to the District prior to the issuance of any permit authorizing the connection of such premise to the District sewer system. If the proposed connection cannot be made, the fee may be refunded when approved by the General Manager. 53.06 SEWER SERVICE USE CHANGES RESULTING IN INCREASED SYSTEM UTILIZATION The use of a sewer connection shall be limited to the type and number of EDUs authorized by the original wastewater discharge permit. Before adding any additional equivalent dwelling units, buildings, modifying existing buildings, or change of occupancy type, the property owner shall make a supplementary wastewater 53-4 permit application to the District for such change in use and pay additional sewer annexation fees per EDU, if necessary, as may be applicable. Periodic inspection of the premises may be made by the District and if actual use is greater than estimated use, an assessment for additional annexation fees shall be assessed in accordance with the fee schedule in the then current Code of Ordinances. 53.07 WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION A. A wastewater discharge permit shall be required for any property for which a request is made to discharge into the District sewage system. B. Every wastewater discharge permit shall expire by limitations and shall become null and void, if the construction or work authorized by such permit is not commenced within 120 days from date of issuance of such wastewater discharge permit or if the construction or work authorized by such wastewater discharge permit is suspended or abandoned for a period of 120 days at any time after the work is commenced. C. Before such work can be recommenced, a new wastewater discharge permit application must be filed with the District. The District may reactivate the previous wastewater discharge permit provided that wastewater quantity and type is the same as the wastewater discharge allowed under the original permit, and provided further that such suspension and abandonment has not exceeded one year. Fees paid for the previous wastewater discharge permit may be credited toward the total permit fees required on the new permit application. Reactivation of the previous wastewater discharge permit shall be subject to District sewer capacity being available at the time of new application and subject to any additional costs or charges imposed during the period of such suspension or abandonment. 53.08 BASIS FOR DETERMINATION OF EQUIVALENT DWELLING UNITS (EDUs) The number of EDUs for sewer service shall be determined on the following basis: A. Residential Facilities EDUs Description 53-5 1  Single-family residence (Includes manufactured homes and mobile homes which are on private lots.)  A secondary structure with a kitchen is considered an additional EDU  Each individual living unit in apartments, multiple family housing and residential condominiums  Each individual space in mobile homes and trailer parks B. Commercial/Industrial Facilities 1. Food Service Establishments EDUs Description 3  Take-out restaurants with disposable utensils, no dishwasher and no public restrooms  Take-out restaurants with disposable utensils, no dishwasher and no public restrooms  Miscellaneous food establishments -- ice cream shops, yogurt shops, bakeries (sales on premise only)  Take-out/eat-in restaurants with disposable utensils, but with seating and public restrooms  Restaurants with reusable utensils, seating and public restrooms (0-18 seats) o Add 1.0 EDU for each additional 6 seat unit, or portion thereof 2. Hotels and Motels EDUs Description .38 Per living unit without kitchen .60 Per living unit with kitchen 3. Commercial, Professional, Industrial Buildings and Establishments not specifically listed herein EDUs Description 1.2 +0.7 For first 1,000 square feet AND For each additional square feet or portion thereof Applies to any office, store or industrial condominium or establishments 1.2 +0.7 For first 1,000 square feet AND For each additional 1,000 square feet of gross building floor area. Portions less than 1,000 sq. ft. will be prorated. 53-6 Applies to situations where the occupancy type or usage is unknown at the time of application for service. This shall include, but not be limited to, shopping centers, industrial parks and professional office buildings. 1.0 Self-service laundry per washer 4. Convalescent Homes EDUs Description 0.7/bed Skilled nursing care facilities, psychological hospitals, convalescent hospitals; licensed by the applicable Governmental Agency. 0.5/bed Community Care Facilities with 16 or more beds licensed by the applicable Governmental Agency. 1.0 Community Care Homes with six or fewer total residents, including resident staff and housekeepers (to be the same EDU as a single family residence). C. Other commercial, industrial and other types of business establishments not included in 53.08 B.1 through 53.08 B.4 If the establishment is not included in 53.08 B.1 through 53.08 B.4 or if the EDUs specified in 53.08 B.1 through 53.08 B.4 are not representative of actual flow due to the number of employees or type of operation, the number of EDUs shall be determined in each case by the list of commercial strengths as defined by the State Water Resources Control Board (SWRCB) or by the General Manager and shall be based upon the estimated volume and type of wastewater discharge into the sewer. Examples of commercial, industrial and other business establishments include, but are not limited to, bottling works, supermarkets, markets, deli/markets, convenience stores, hospitals, laundries (other than self-service laundries), automobile service stations, mortuaries, day- care centers, bars and pool halls. 53.09 TRANSFER, ASSIGNMENT, OR RESALE OF SEWER CONNECTION RIGHTS EDU sewer connection rights obtained by a customer may not be sold, transferred, or assigned separately from ownership of the real property for which they were obtained, unless otherwise stated in an agreement with the District. 53.10 DEFINITIONS OF RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to residential and multi-residential sewer services billed on or after January 1, 2014 and may apply 53-7 to sewer services as early as the beginning of December 2013 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers - All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. Set-up Fees for Accounts - A set-up fee (see Appendix A, Section 53, 53.10 for fee) shall be charged for each account transferred to another customer. Winter Average Determination - Sewer service usage fee shall be based on the ‘‘Winter Average’’ water consumption, measured in units of hundred cubic feet (HCF). The winter average period is January through April. The winter average is calculated by adding the four months of water consumption for the preceding winter and dividing the resulting amount by four. This average is then reduced by a 15% usage discount, recognizing that not all water used flows into the sewer system, to determine the ‘‘Winter Average’’ for billing purposes see Appendix A, Section 53, 53.10. Usage Fee - The usage fee rate (see Appendix A, Section 53, 53.10) is multiplied by the ‘‘Winter Average’’ calculation for each customer (after the above noted 15% discount) and the resulting amount is added to the System Fee applicable to the size of meter. The resulting fixed fee shall be charged on a monthly basis for an entire calendar year, until a new ‘‘Winter Average’’ is determined for the following year. Residential Sewer System Fee - The monthly system fee is set forth in Appendix A, Section 53, 53.10. A. Residential Rate Charges 1. Defined as: Sewer service for individually metered residential households. 2. The monthly sewer bill is calculated by adding the system fee plus the usage fee as described in 53.10 above. 3. The maximum ‘‘Winter Average’’ for individually metered residential customers is 30 units (after the 15% discount). 4. Monthly Residential Sewer Rate without Consumption History: The average residential sewer rate shall be determined by calculating the total usage fee for all residential customers and dividing by the number of residential customers. Then the monthly average usage 53-8 fee is added to the system fee and this shall be used to determine the total monthly fee to be used for residential customers with no prior winter consumption, customers using well water or other unmetered water. See Appendix A, Section 53, 53.10 A. B. Multi-Residential Rate Charges 1. Defined as: Sewer service for master metered water service for multiple-residential households including for example; duplex, townhomes, apartments, and mobile homes. 2. The monthly sewer bill for the complex is calculated by adding a system fee based on meter size (as set forth in Appendix A, Section 53, 53.10 B.2.) plus the usage fee (as set forth in Appendix A, Section 53, 53.10 B.2.) multiplied by the winter average, for the entire complex. Note: There is no cap on consumption for the multi-residential customers. 3. Monthly Multi-Residential Sewer Rate without Consumption History: The multi-residential sewer rate shall be determined by calculating the total usage fee for all multi-residential customers and dividing by the number of multi-residential dwelling units. The usage fee per dwelling unit is multiplied by the new customer’s number of dwelling units and this shall be added to the monthly system fee, based on meter size, to determine the monthly rate. This is applicable to new complexes that do not have a prior winter consumption history. See Appendix A, Section 53, 53.10 B. 53.11 DEFINITIONS OF COMMERCIAL AND INDUSTRIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to commercial and industrial sewer services billed on or after January 1, 2014 and may apply to sewer services as early as the beginning of December 2013 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers - All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. 53-9 Set-up Fees for Accounts - A set-up fee (see Appendix A, Section 53, 53.11 for fee) shall be charged for each account transferred to another customer. Average Annual Consumption - The Average Annual Consumption, measured in units of hundred cubic feet (HCF). The annual consumption period is January through December of the preceding year divided by the number of months of consumption. This average is reduced by a 15% usage discount which recognizes that not all water used flows into the sewer system. Usage Fee - The usage fee rate (see Appendix A, Section 53, 53.11 for rate) is determined by the commercial customer’s sewer strength category in which they are assigned (low strength, medium strength or high strength). System Fee - The monthly system fee is determined by the commercial customer’s water meter size (as set forth in Appendix A, Section 53, 53.11). Strength Factor - The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single‐family residence (SFR). A SFR has strength factor of 1. (As set forth in Appendix A, Section 53, 53.11) A. Commercial Rate Charges 1. The monthly sewer bill for commercial sewer customers is calculated by multiplying the average annual consumption, reduced by 15%, by the usage fee based on strength (as set forth in Appendix A, Section 53 53.11) plus the monthly system fee based on the customer’s water meter size. 2. For new commercial sewer customers without consumption history, staff shall make a determination of the average annual consumption to be used until a year’s consumption data can be collected. The determination shall be based on the prior owner or tenant of the sewer connection, or based on the most similar type of current business operation. If the customer does not agree with staff’s recommendation, the customer may request an adjustment, in writing, and direct it to the General Manager. B. Industrial and Other Users 1. Charges determined by the Board of Directors on a case-by-case basis. 53-10 Monthly sewer service charges shall commence upon installation of the water meter to serve the premises receiving the sewer service, upon connection to the District sewer system, upon start of occupancy of the premises to be served, or one year after the date the application for sewer service is filed. If a sewer service connection has been obtained and if sewer service will not be used until sometime after installation of the water meter, commencement of the sewer service charge may be deferred until the later date only upon prior approval of the General Manager. C. Commercial User Classifications Commercial sewer service customers are subject to periodic inspection of the premises by the District for verification of proper sewer strength classification. In addition to such periodic inspections, strength classifications will be reviewed periodically, at the discretion of the District. If warranted following a periodic inspection, periodic classification review, or a change in the nature of a customer’s business and/or use of the property, customers may be reclassified to reflect their current business operations and proper sewer strength, at the discretion of the District and consistent with the standards set forth herein and in the State Water Resources Control Board (SWRCB) listing for sewer strength. 1. Low-Strength Commercial = 1.0 Strength Factor Car wash General office and buildings Barber and beauty shops Department, retail stores and general commercial Hospitals and convalescent homes Public Laundromats and dry cleaners Professional office or office building Warehouse Bars without dining facilities Churches Schools (Elementary, junior & High Schools, Colleges) Other uses having a similar strength as determined by the District 2. Medium-Strength Commercial = 2.0 Strength Factor Hotels without dining facilities or cooking facilities Auto repair/sales shop and service station Shopping centers Other uses having a similar strength as determined by the District 3. High-Strength Commercial = 4.0 Strength Factor 53-11 Bakery or bakery with deli Hotel with dining facilities Restaurants and bars with food Grocery stores with onsite butcher and/or bakery Other uses having a similar strength as determined by the District 53.12 ISSUANCE AND PAYMENT OF SEWER BILLS A. Issuance of Statements: Statements for sewer service or other charges will be mailed monthly or as soon as practical, after the applicable charges have been determined. B. Due Date: Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date: All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Place of Payment: Payments shall not be credited to a customer’s account until cash, check, credit card, draft, electronic funds transfer, money order or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer’s account until received at the business office. E. Returned Check Charges: A returned payment charge (see Appendix A, Section 34, 34.01 D.2 for charge) shall be added to a customer’s account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 53.13 DELINQUENT ACCOUNTS A. Requirement of Deposit Due to Repeated Delinquencies: If payments on a customer account have become delinquent five or more times, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief Financial Officer, but shall not exceed two times the 53-12 highest bill during the twelve (12) months preceding the date of demand for a deposit. B. Handling of Deposit: A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. C. Refund of Deposit: A deposit required under this Section shall be refunded to the customer as provided in Section 25.04 B. Section #Code #Fee Description Meter Size 9 9.04 A.1. District Annexation Processing Fee $763.83 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries District-wide Annexation Fee 3/4" $1,622.36 1"$4,055.90 1-1/2" $8,111.80 2" $12,978.88 3" $25,957.76 4 $40,559.00 6" $81,118.00 8" $129,788.80 10" $186,571.40 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts $5,985.73 . 10 10.01 Filing of Petition $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Reconnection (service resumed) $50.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers) Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4" $16.19 $14.45 $30.64 1" $22.87 $26.79 $49.66 Exhibit 4 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2" $39.58 $60.61 $100.19 2" $59.62 $103.08 $162.70 3" $113.08 $219.23 $332.31 4" $173.22 $351.09 $524.31 6" $340.29 $718.69 $1,058.98 8" $540.76 $1,160.59 $1,701.35 10" $774.64 $1,670.55 $2,445.19 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $1.86 toward the first five units of water when 6-10 $2.90 overall consumption is ten units or less.) 11-22 $3.77 23 or more $5.80 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $2.86 5-9 $3.71 10 or more $5.73 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10" 0-185 $3.06 186-1,400 $3.14 1,401 or more $3.19 10" & larger 0-7,426 $3.06 7,427-14,616 $3.14 14,617 or more $3.19 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $4.17 55-199 $4.25 200 or more $4.32 1.5" & 2" 0-144 $4.17 145-355 $4.25 356 or more $4.32 3" & larger 0-550 $4.17 551-1,200 $4.25 (1) All Water used in December and billed in January 2014.1,201 or more $4.32 Section #Code #Fee Description Meter Size Charges 25 25.03 E.5. (c)Recycled Water (1)3/4" - 1" 0-32 $3.56 Landscape Irrigation and Certain Non- 33-75 $3.61 Irrigation Purposes Rates 76 or more $3.68 1.5" & 2" 0-130 $3.56 131-325 $3.61 326 or more $3.68 3" & 4" 0-440 $3.56 441-1,050 $3.61 1,051 or more $3.68 6" & larger 0-4,000 $3.56 4,001-10,000 $3.61 10,001 or more $3.68 25 25.03 E.6.(c)Recycled Commercial (1)under 10" 0-173 $2.56 174-831 $2.64 832 or more $2.66 10" & larger 0-7,426 2.56 7,427-14,616 $2.64 14,617 or more $2.66 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (continued) (1)3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $21.14 more than 4" $28.49 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.31 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.048 25 25.03 G.1. Additional Water Charge for Service in the North District Per unit charge except for the first 5 units of residential $0.08 25 25.03 H.1. Additional Water Charges for Service in the Improvement District 9 Water Service Zone Per unit charge except for the first 5 units of residential $0.27 25 25.03 H.2. Additional Monthly System Fee for Improvement District 9 $2.00 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 I.1.(b) Additional Water Charges for Services in Improvement District 10 Per unit charge except for the first 5 units of residential 0.27 per H.C.F. Effective Jan 1st 2011-2018 25 25.04 A. Deposits for Non-Property Owners 3/4" $75.00 1" $150.00 1-1/2" $200.00 2" $360.00 3" $800.00 4" $1,350.00 6" $3,300.00 8" $4,400.00 10" $5,500.00 28 28.01 B.1.Capacity Fees and Zone Charge District-wide Capacity Fee - I.D.'s 1,2,3,5,7,9,10,20,22,22/27,25 3/4" $8,237.03 (excluding Triad) and only I.D. 22/27 1"$20,592.58 require reclaimed irrigation meters.1-1/2" $41,185.15 2" $65,896.24 3" $131,792.48 4 $205,925.75 6" $411,851.50 8" $658,962.40 10" $947,258.45 28 28.01 B.1.Capacity Fees and Zone Charge - 22/27 TRIAD 3/4" $6,164.32 1" $15,410.80 1 -1/2" $30,821.60 2" $49,314.56 3" $98,629.12 4 $154,108.00 6" $308,216.00 8" $493,145.60 10" $708,896.80 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $949.03 1" $2,372.58 1-1/2" $4,745.15 2" $7,592.24 3" $15,184.48 Section #Code #Fee Description Meter Size Charges 28 28.01 B.2. New Water Supply Fee, continued 4" $23,725.75 - All IDs including Triad 6" $47,451.50 8" $75,922.40 10" $109,138.45 28 28.02 Installation Charges for Water Meter and Water Service Laterals Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) Potable (Non-Irrigation) 3/4" x 7.5" $210.94 $100.10 $311.04 $84.98 3/4" x 9" $224.59 $100.10 $324.69 $84.98 1" $272.20 $100.10 $372.30 $84.98 1.5" $442.43 $100.10 $542.53 $192.65 2" $633.96 $100.10 $734.06 $192.65 3" $1,975.66 $602.69 $2,578.35 $3,436.57 4" $3,431.41 $602.69 $4,034.10 $3,436.57 6" $5,926.98 $951.99 $6,878.97 $3,436.57 8" $7,405.32 $1,459.79 $8,865.11 $4,930.00 10" $10,650.23 $1,459.79 $12,110.02 $4,930.00 Potable/Recycled Irrigation 3/4" x 7.5" $210.94 $100.10 $311.04 $216.57 3/4" x 9" $224.59 $100.10 $324.69 $216.57 1" $272.20 $100.10 $372.30 $216.57 1.5" $442.43 $100.10 $542.53 $216.57 2" $633.96 $100.10 $734.06 $216.57 3" $1,367.36 $602.69 $1,970.05 $3,436.57 4" $2,662.04 $602.69 $3,264.73 $3,436.57 6" $4,792.53 $951.99 $5,744.52 $3,436.57 8" $6,384.51 $1,459.79 $7,844.30 $4,930.00 10" $9,060.10 $1,459.79 $10,519.89 $4,930.00 Combined Fire and Domestic 4" $8,163.63 $602.69 $8,766.32 $3,436.57 6" $10,865.08 $951.99 $11,817.07 $3,436.57 8" $15,797.04 $1,459.79 $17,256.83 $4,930.00 10" $21,557.73 $1,459.79 $23,017.52 $4,930.00 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4" $150.00 1" $180.00 1-1/2" $330.00 2" $2,046.00 Section #Code #Fee Description Meter Size Charges 31 31.03 A.1. Requirement of Deposit for Temporary Meters, continued 3" $850.00 4" $1,986.00 6" $2,465.00 - Construction Trailer Temporary Meter 2" $2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2" $850.00 31 31.03 A.4. Temporary Meter Install & Removal $128.00 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 2" $64.00 3" and larger No backflow test $64.00 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1" $25.00 1-1/2" & 2 " $50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B. Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d) Delinquency Tag $10.00 34 34.02 G.3.(a) Meter "Turn-On" Charge During regular business hours $35.00 34 34.02 G.3.(b) Meter "Turn-On" Charge After regular business hours $65.00 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.35 (2) Sewer billed beginning January 1, 2014. Section #Code #Fee Description Meter Size Charges 53 53.10 Residential Sewer System Fee (2)5/8" & 3/4" $14.38 1" & larger $14.38 53 53.10 A. Residential Sewer Without Consumption History (2)5/8" & 3/4" $42.35 1" & larger $42.35 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $27.97 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.35 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75" $25.83 1" $38.03 1.5" $68.53 2" $105.12 3" $190.52 4" $312.51 6" $617.48 8" $983.46 10" $1,410.42 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2) Rate multiplied Low Strength $2.35 by annual Medium Strength $3.37 avg. units High Strength $5.37 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75" $25.83 1" $38.03 1.5" $68.53 2" $105.12 3" $190.52(2) Sewer billed beginning January 1, 2014. Section #Code #Fee Description Meter Size Charges 4" $312.51 6" $617.48 8" $983.46 10" $1,410.42 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2" $170.00 - Broken Curbstop or Tabs 3/4" - 1" $192.00 - If Customer uses Jumper 3/4" - 1" $149.00 - Broken Lock/Locking Device 3/4" - 1" $56.00 - Cap Lock (Welded) 3/4" - 1" $158.00 - Broken Curbstop or Tabs 1.5" - 2" $265.00 - To Pull and Reset Meter 3" $351.00 - To Pull and Reset Meter 4" $454.00 - To Pull and Reset Meter 6" $454.00 - To Pull and Reset Meter 8" $600.00 - To Pull and Reset Meter 10" $600.00 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 72 72.05 D. A. (continued)Type III Fine $500.00 Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Section #Code #Fee Description Meter Size Charges Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter Fine up to amount specified per each day the violation is identified or continues. Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 Less than one acre I.D. 4, 14, & 18 Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25,& 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. 9-1 CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 ANNEXATIONS AND DETACHMENTS 9.01 REQUIREMENT OF ANNEXATION FOR SERVICE Except as provided elsewhere in this Code, whenever utility service is requested for land outside the boundaries of an improvement district, the land to be serviced must first be annexed to an improvement district(s). If the land is located outside the boundaries of the District, the land must also be annexed to the District. 9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS DISTRICTS An owner or owners of land within the District desiring to annex to or detach land from an improvement district within the District must file a petition for such proceeding with the District. Annexation proceedings shall be con- ducted pursuant to Chapter I (commencing with Section 72670) of Part 11, Division 20 of the California Water Code. Detachment or exclusion proceedings shall be conducted pur- suant to Part 8.5 (commencing with Section 72080) of Divi- sion 20 of the California Water Code. If the land proposed to be annexed is outside the boundaries of the territory served by the Metropolitan Water District of Southern California and the territory served by the San Diego County Water Authority, and no local sources of water are available to serve such land, the District will require that the land be annexed to those entities as well. 9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO An owner or owners desiring to annex land to or to detach land from the District may either (i) file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii) request the District to file the petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox Local Government Reorganization Act of 1985, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including Attachment C 9-2 without limitation any conservation or local supply use requirements. 9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS A petitioner requesting an annexation to or detachment from the District or within the District shall pay the following applicable fees and charges: A. Administrative Processing Fees 1. District Processing Fee. A District processing fee (see Appendix A, Section 9 for fee) shall be paid to the District for each annexation or detachment proceeding, regardless of the number of parcels involved, provided all parcels are included in one proceeding. This fee shall constitute the "base rate" on March 3, 1997. The base rate shall be adjusted annually for fluctuations in the Consumer Price Index (Urban Wage Earners and Clerical Workers - Los Angeles) and subsequent cost-of-living adjustment (COLA). 2. Additional Processing Fees or Charges. The peti- tioner shall pay all processing fees and charges due LAFCO, the State Board of Equalization and any other applicable government agency. 3. Concurrent Annexations to or Detachments from the District and an Existing Improvement District. No additional processing costs or fees will be charged to a petitioner for an annexation to or detachment from an existing improvement district when the proceeding is part of an annexation to or detachment from the District. 4. Payment of Fees and Charges. The District processing fees and charges shall be paid to the District at the time the petition for such proceeding is filed. Where a petition is filed with LAFCO, the District shall notify LAFCO that payment of all required fees and charges to the District shall be a condition for District approval of the annexation or detachment. B. Water Annexation Fees. The annexation fee (see Appendix A, Section 9) shall constitute the "base rate" on October 1, 2014). The base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 on June 1, 2014 shall be deemed the "base index." The adjustment shall be in an amount equal to the 9-3 percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. 1. No water annexation fee shall be required for existing and future agricultural water service furnished by the District under the COMMERCIAL AGRICULTURAL category of Section 25 of the Code. 2. Non-permanent irrigation water service furnished by the District under Section 30 of the Code shall be available without payment of a water annexation fee. 3. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a water improvement district. 4. Water Meter Type Exclusions. Annexation fees shall be collected on all water meters sold except for temporary water meters, water tank truck meters, nonpermanent irrigation water meters and outside user meters, all as defined elsewhere in this Code. 5. Effective Date. Annexation fees shall be col- lected on all lands annexing into the Otay Water District boundaries on or after March 5, 1997. 6. Basis for Determination. For annexations of land into the Otay Water District boundaries, the petitioner shall pay an annexation fee. The fee shall be paid at the time of petition to be annexed. There shall be no water annexation fee charged for parcels already within District boundaries that are applying to be annexed into a water ID. For permanent water meters, except for commercial agricultural meters, the annexation fee shall be determined on the basis of the demand to be placed on the District-wide water system. The fee will be determined on the basis of the size of the water meter required, as set forth in Section 27 of the Code. The fee shall be determined by multiplying the demand factor for the meter size, as set forth in Section 28 of the Code, by the annexation fee per EDU. See Appendix A, Section 9 for fees. 9-4 C. Sewer Annexation Fees 1. Improvement District Annexation. All annexation for sewer service shall be into Improvement District No. 18 on or after December 16, 1998. 2. Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a sewer improvement district. 3. Effective Date. Annexation fees shall be collected on all lands annexing to a sewer improvement district on or after December 16, 1998. 4. Basis for Determination. For annexations of land to a sewer improvement district within the Dis- trict, the petitioner shall pay an annexation fee. The fee shall be determined on the basis of the demand to be placed on the District sewer system. The fee shall be paid at the time of sewer service connection request or General Manager's approval of plans, whichever occurs earlier. The extent of the demand will be determined on the basis of each equivalent dwelling unit (EDU) of service which is to be connected to the District sewer system. The number of EDUs prescribed in Section 53 of the Code shall be the basis for computation of the amount of the annexation fee. The fee will be determined by multiplying the number of EDUs by the annexation fee per EDU. See Appendix A, Section 9 for fees. This annexation fee shall constitute the "base rate" on October 1, 2014. The base rate shall be adjusted quarterly for fluctuations in construction costs as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 (as of June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. D. Detachment Fees For each detachment of land from an improvement district, the petitioner shall pay such fees as the General Manager determines are appropriate for the detachment. Determinations shall be made by the General Manager on a case-by-case basis. 9-5 9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT DISTRICT Where property is annexed by a petitioner, other than a tax-exempt agency, the property in the annexed area shall be subject to taxation after the annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district authorized and outstanding at the time of the annexation. The Board of Directors shall provide as a condition of the annexation that the annexed area shall be subject to taxation as if the property had always been a part of the improvement district. 9.06 OTHER CONDITIONS OF ANNEXATION By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 28-1 SECTION 28 CONNECTION FEES AND CHARGES FOR POTABLE OR RECYCLED WATER SERVICE 28.01 COLLECTION OF FEES AND CHARGES A. Fees and Charges to be paid by the Customer. The following fees and charges shall be paid by the customer to connect to a District water system for potable water or recycled water service; these are in addition to the fees and charges in Section 9 and 25. Fees and charges shall include, but not be limited to, District fees, San Diego County Water Authority fees, and charges for work performed by District personnel on behalf of the customer. These charges may include the installation by District personnel of a water service lateral, and inspections required due to the requirement of a back flow device. These charges may also include a meter fee, installation fee (where laterals exist), lateral fee, meter box fee, and excavation permit fee. B. Basis for Determination of Connection Fees and Charges. The fees and charges shall be determined as follows: For permanent water meters, including potable or recycled irrigation service, the total water connection fee shall be determined on the basis of the demand to be placed on the District water system. The extent of demand will be determined on the basis of the size of the water meter, as set forth in Section 27 of the Code. For individually metered residential fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The water connection fee will be determined by multiplying the demand factor for the meter size, as set forth below, by the total of the District-wide capacity fee. Meter Size Demand Factor 3/4" 1 1 2-1/2 1-1/2" 5 2" 8 3" 16 4" 25 6" 50 8" 80 10" 115 Attachment D 28-2 1. The District-wide capacity fee shall constitute the "base rate." For fees or charges after October 1, 2014, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43(as of June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. (See Appendix A, Section 28 for fees.) 2. The District-wide new water supply fee shall constitute the “base rate.” For fees or charges after October 1, 2014, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43 (as of June 1, 2014) shall be deemed the “base index.” The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. (See Appendix A, Section 28 for fees.) 28.02 INSTALLATION CHARGES FOR WATER METER AND WATER SERVICE LATERALS The determination of the water meter or service lateral size shall be based upon the information provided by the customer as detailed in Section 27 of the Code. The meter fees and installation charges are set forth in Appendix A, Section 28. Where a new water lateral is required, a customized, written estimate of the District's costs will be prepared. The customer shall deposit the estimated costs with the District prior to commencement of the work. If actual costs incurred by the District are less than the amount deposited, the District shall refund the excess to the customer. If the actual costs incurred exceed the amount deposited, the customer shall reimburse the District for the additional costs. 28-3 A. The meter fees and installation charges shall be set effective September 1, 2012, and then adjusted in the same manner as capacity fees as described in Section 28.01 B.1 above (See Appendix A, Section 28 for fees). 28.03 METER FEE REFUND A. If a water meter/service has been paid for but not installed, a customer may receive a refund of the District’s capacity fee and charges. If San Diego County Water Authority capacity fees have been paid to San Diego County Water Authority, the customer shall request a refund from San Diego County Water Authority. B. If the customer wants to change the meter/service size, they will be credited with the number of equivalent dwelling units they have previously purchased and will be refunded any balance per Section 28.03 A, above. If additional equivalent dwelling units are required, the customer will be charged based on 28.01 and 28.02. C. If a water meter/service has been previously paid and installed, and the customer requests a different meter size, the customer shall pay for the new meter and installation fees, plus any differential in capacity and new water supply fees as described in Section 28.03 B above. 53-1 SECTION 53 CONDITIONS FOR SEWER SERVICE 53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY Sewer service capacity may be acquired only for service to a specific address, parcel of land, or a land development project covered by an approved map. An approved map shall mean a recorded final map, a recorded parcel map or a tentative sub- division map that has been approved by the County or by a City, as applicable. A. District Acceptance of Sewer Facilities for Russell Square Area - Under an Agreement with Cal Dorado Development, Inc., dated June 28, 1981, the District accepted title to a sewer pump station, force main and appurtenances for a sewage system to provide sewer service to the residential dwelling units to be constructed within the parcels of land in San Diego County Tentative Parcel Map 17150. Under an Agreement with Cal Dorado Development, Inc., dated June 18, 1981, the District agreed to provide service to such parcels on the terms and conditions contained therein. On October 1, 1984, pursuant to Resolution No. 2139, the District Board of Directors accepted title to the facilities. 53.02 SERVICE AREAS Sewer service shall be furnished by the District only to property located in Improvement District No. 14 (ID 14), Improvement District No. 18 (ID 18), and Assessment District No. 4 (AD 4), and the Russell Square Sewer Service Area. Sewer service to property located outside such areas may be furnished only upon annexation to ID 18 and payment of all applicable annexation fees. (Appendix A, Section 9) A. Designation of Russell Square Sewer Area - The geographical area described on the District Map entitled "Russell Square Sewer Service Area," dated October 11, 1988, on file with the District Secretary, constitutes the Russell Square Sewer Service Area. 53.03 ACQUISITION OF SEWER CONNECTIONS FOR SERVICE A. ID 14, ID 18 and AD 4 Effective October 1, 2014 two separate sewer capacity fees have been established to ensure sewer customers do not pay for facilities twice. The first capacity fee applies to parcels within an ID that paid prior tax debt. The second capacity fee applies parcels outside an ID that have not paid the tax debt. The sewer capacity fees shall constitute the "base rate." For fees or charges after October 1, 2014, the base rate shall be adjusted quarterly for fluctuations in construction costs, as measured by the Attachment E 53-2 Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 10,739.43(as of June 1, 2014) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from June 1, 2014 to the date of payment. 1. Sewer Capacity Fee within an ID All new sewer connections for parcels within a sewer ID shall pay a capacity fee for each Equivalent Dwelling Unit (EDU) of sewer service provided. The capacity fee is due at the time an application for sewer service is requested. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. (See Appendix A, Section 53 for fees) 2. Sewer Capacity Fee outside an ID All new sewer connections for parcels not within a sewer ID (requiring to be annexed into a sewer ID18 per code Section 9.04 C.) shall pay a capacity fee for each Equivalent Dwelling Unit (EDU) of sewer service provided. The capacity fee is due at the time an application for sewer service is requested. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. (See Appendix A, Section 53 for fees) B. Russell Square Pump Station 1. Sewer Connection Fee A connection fee (see Appendix A, section 53for fee) for each Equivalent Dwelling Unit (EDU) of sewer service provided through Russell Square Pump Station shall be collected. The connection fee is due at the time an application for sewer service is submitted. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. (a) Exempt Parcels - The connection fee shall not apply to connections for sewer service to the parcels within the Tentative Parcel Map 17150. Such exempt parcels are currently identified as Assessor Parcel Nos. 497-011-41, 497-011-42, 497- 011-44, 497-011-46 and 497-011-47. 2. Monthly Sewer Service Charge A monthly sewer service charge (see Appendix A, Section 53 for charge) to cover normal operational 53-3 costs of the Russell Square Pump Station and force mains shall be collected. This charge shall be reviewed by the Board of Directors from time to time to assure that such charges cover the costs for operation of the sewer facilities. The proceeds of the fees and charges received by the District under 53.03 B.1 and 53.03 B.2 shall be used by the District solely for maintenance, replacement or repair under 53.03 B.1 and for the operation of the facilities under 53.03 B.2. In addition, the customer for such service shall pay the monthly service charge for sewer service set forth in Section 53.10 A and B. 53.04 CHARGES FOR INSTALLATION OF SEWER LATERALS Upon application for construction of one or more sewer laterals, the customer shall deposit with the District the estimated costs to be incurred by the District in connection with the instal- lation of the facilities required, as determined by the District. Upon completion of the work, the District shall calculate the actual costs incurred by the District in performing the work. If actual costs are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If actual costs exceed the amount deposited, the customer shall reimburse the District for the additional costs. 53.05 PAYMENT OF FEES All fees prescribed in the Code shall become owing, due and payable at the time application is made to connect a premise to the sewer system of the District. The fees shall be paid to the District prior to the issuance of any permit authorizing the connection of such premise to the District sewer system. If the proposed connection cannot be made, the fee may be refunded when approved by the General Manager. 53.06 SEWER SERVICE USE CHANGES RESULTING IN INCREASED SYSTEM UTILIZATION The use of a sewer connection shall be limited to the type and number of EDUs authorized by the original wastewater discharge permit. Before adding any additional equivalent dwelling units, buildings, modifying existing buildings, or change of occupancy type, the property owner shall make a supplementary wastewater permit application to the District for such change in use and pay additional sewer annexation fees per EDU, if necessary, as may be applicable. Periodic inspection of the premises may be made by the District and if actual use is greater than estimated use, an assessment for additional annexation fees shall be 53-4 assessed in accordance with the fee schedule in the then current Code of Ordinances. 53.07 WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION A. A wastewater discharge permit shall be required for any property for which a request is made to discharge into the District sewage system. B. Every wastewater discharge permit shall expire by limitations and shall become null and void, if the construction or work authorized by such permit is not commenced within 120 days from date of issuance of such wastewater discharge permit or if the construction or work authorized by such wastewater discharge permit is suspended or abandoned for a period of 120 days at any time after the work is commenced. C. Before such work can be recommenced, a new wastewater discharge permit application must be filed with the District. The District may reactivate the previous wastewater discharge permit provided that wastewater quantity and type is the same as the wastewater discharge allowed under the original permit, and provided further that such suspension and abandonment has not exceeded one year. Fees paid for the previous wastewater discharge permit may be credited toward the total permit fees required on the new permit application. Reactivation of the previous wastewater discharge permit shall be subject to District sewer capacity being available at the time of new application and subject to any additional costs or charges imposed during the period of such suspension or abandonment. 53.08 BASIS FOR DETERMINATION OF EQUIVALENT DWELLING UNITS (EDUs) The number of EDUs for sewer service shall be determined on the following basis: A. Residential Facilities EDUs Description 1  Single-family residence (Includes manufactured homes and mobile homes which are on private lots.)  A secondary structure with a kitchen is considered an additional EDU  Each individual living unit in apartments, multiple family housing and residential condominiums  Each individual space in mobile homes and trailer parks 53-5 B. Commercial/Industrial Facilities 1. Food Service Establishments EDUs Description 3  Take-out restaurants with disposable utensils, no dishwasher and no public restrooms  Take-out restaurants with disposable utensils, no dishwasher and no public restrooms  Miscellaneous food establishments – ice cream shops, yogurt shops, bakeries (sales on premise only)  Take-out/eat-in restaurants with disposable utensils, but with seating and public restrooms  Restaurants with reusable utensils, seating and public restrooms (0-18 seats) o Add 1.0 EDU for each additional 6 seat unit, or portion thereof 2. Hotels and Motels EDUs Description .38 Per living unit without kitchen .60 Per living unit with kitchen 3. Commercial, Professional, Industrial Buildings and Establishments not specifically listed herein EDUs Description 1.2 +0.7 For first 1,000 square feet AND For each additional square feet or portion thereof Applies to any office, store or industrial condominium or establishments 1.2 +0.7 For first 1,000 square feet AND For each additional 1,000 square feet of gross building floor area. Portions less than 1,000 sq. ft. will be prorated. Applies to situations where the occupancy type or usage is unknown at the time of application for service. This shall include, but not be limited to, shopping centers, industrial parks and professional office buildings. 1.0 Self-service laundry per washer 53-6 4. Convalescent Homes EDUs Description 0.7/bed Skilled nursing care facilities, psychological hospitals, convalescent hospitals; licensed by the applicable Governmental Agency. 0.5/bed Community Care Facilities with 16 or more beds licensed by the applicable Governmental Agency. 1.0 Community Care Homes with six or fewer total residents, including resident staff and housekeepers (to be the same EDU as a single family residence). C. Other commercial, industrial and other types of business establishments not included in 53.08 B.1 through 53.08 B.4 If the establishment is not included in 53.08 B.1 through 53.08 B.4 or if the EDUs specified in 53.08 B.1 through 53.08 B.4 are not representative of actual flow due to the number of employees or type of operation, the number of EDUs shall be determined in each case by the list of commercial strengths as defined by the State Water Resources Control Board (SWRCB) or by the General Manager and shall be based upon the estimated volume and type of wastewater discharge into the sewer. Examples of commercial, industrial and other business establishments include, but are not limited to, bottling works, supermarkets, markets, deli/markets, convenience stores, hospitals, laundries (other than self-service laundries), automobile service stations, mortuaries, day- care centers, bars and pool halls. 53.09 TRANSFER, ASSIGNMENT, OR RESALE OF SEWER CONNECTION RIGHTS EDU sewer connection rights obtained by a customer may not be sold, transferred, or assigned separately from ownership of the real property for which they were obtained, unless otherwise stated in an agreement with the District. 53.10 DEFINITIONS OF RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to residential and multi-residential sewer services billed on or after January 1, 2014 and may apply to sewer services as early as the beginning of December 2013 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases 53-7 related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers - All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. Set-up Fees for Accounts - A set-up fee (see Appendix A, Section 53 for fee) shall be charged for each account transferred to another customer. Winter Average Determination - Sewer service usage fee shall be based on the “Winter Average” water consumption, measured in units of hundred cubic feet (HCF). The winter average period is January through April. The winter average is calculated by adding the four months of water consumption for the preceding winter and dividing the resulting amount by four. This average is then reduced by a 15% usage discount, recognizing that not all water used flows into the sewer system, to determine the “Winter Average” for billing purposes see Appendix A, Section 53. Usage Fee - The usage fee rate (see Appendix A, Section 53) is multiplied by the “Winter Average” calculation for each customer (after the above noted 15% discount) and the resulting amount is added to the System Fee applicable to the size of meter. The resulting fixed fee shall be charged on a monthly basis for an entire calendar year, until a new “Winter Average” is determined for the following year. Residential Sewer System Fee - The monthly system fee is set forth in Appendix A, Section 53. A. Residential Rate Charges 1. Defined as: Sewer service for individually metered residential households. 2. The monthly sewer bill is calculated by adding the system fee plus the usage fee as described in 53.10 above. 3. The maximum “Winter Average” for individually metered residential customers is 30 units (after the 15% discount). 4. Monthly Residential Sewer Rate without Consumption History: The average residential sewer rate shall be determined by calculating the total usage fee for all 53-8 residential customers and dividing by the number of residential customers. Then the monthly average usage fee is added to the system fee and this shall be used to determine the total monthly fee to be used for residential customers with no prior winter consumption, customers using well water or other unmetered water. See Appendix A, Section 53. B. Multi-Residential Rate Charges 1. Defined as: Sewer service for master metered water service for multiple-residential households including for example; duplex, townhomes, apartments, and mobile homes. 2. The monthly sewer bill for the complex is calculated by adding a system fee based on meter size (as set forth in Appendix A, Section 53) plus the usage fee (as set forth in Appendix A, Section 53) multiplied by the winter average, for the entire complex. Note: There is no cap on consumption for the multi-residential customers. 3. Monthly Multi-Residential Sewer Rate without Consumption History: The multi-residential sewer rate shall be determined by calculating the total usage fee for all multi-residential customers and dividing by the number of multi-residential dwelling units. The usage fee per dwelling unit is multiplied by the new customer’s number of dwelling units and this shall be added to the monthly system fee, based on meter size, to determine the monthly rate. This is applicable to new complexes that do not have a prior winter consumption history. See Appendix A, Section 53. 53.11 DEFINITIONS OF COMMERCIAL AND INDUSTRIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to commercial and industrial sewer services billed on or after January 1, 2014 and may apply to sewer services as early as the beginning of December 2013 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers - All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. 53-9 Set-up Fees for Accounts - A set-up fee (see Appendix A, Section 53 for fee) shall be charged for each account transferred to another customer. Average Annual Consumption - The Average Annual Consumption, measured in units of hundred cubic feet (HCF). The annual consumption period is January through December of the preceding year divided by the number of months of consumption. This average is reduced by a 15% usage discount which recognizes that not all water used flows into the sewer system. Usage Fee - The usage fee rate (see Appendix A, Section 53 for rate) is determined by the commercial customer’s sewer strength category in which they are assigned (low strength, medium strength or high strength). System Fee - The monthly system fee is determined by the commercial customer’s water meter size (as set forth in Appendix A, Section 53). Strength Factor - The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single‐family residence (SFR). A SFR has strength factor of 1. (As set forth in Appendix A, Section 53) A. Commercial Rate Charges 1. The monthly sewer bill for commercial sewer customers is calculated by multiplying the average annual consumption, reduced by 15%, by the usage fee based on strength (as set forth in Appendix A, Section 53) plus the monthly system fee based on the customer’s water meter size. 2. For new commercial sewer customers without consumption history, staff shall make a determination of the average annual consumption to be used until a year’s consumption data can be collected. The determination shall be based on the prior owner or tenant of the sewer connection, or based on the most similar type of current business operation. If the customer does not agree with staff’s recommendation, the customer may request an adjustment, in writing, and direct it to the General Manager. B. Industrial and Other Users 1. Charges determined by the Board of Directors on a case-by-case basis. 53-10 Monthly sewer service charges shall commence upon installation of the water meter to serve the premises receiving the sewer service, upon connection to the District sewer system, upon start of occupancy of the premises to be served, or one year after the date the application for sewer service is filed. If a sewer service connection has been obtained and if sewer service will not be used until sometime after installation of the water meter, commencement of the sewer service charge may be deferred until the later date only upon prior approval of the General Manager. C. Commercial User Classifications Commercial sewer service customers are subject to periodic inspection of the premises by the District for verification of proper sewer strength classification. In addition to such periodic inspections, strength classifications will be reviewed periodically, at the discretion of the District. If warranted following a periodic inspection, periodic classification review, or a change in the nature of a customer’s business and/or use of the property, customers may be reclassified to reflect their current business operations and proper sewer strength, at the discretion of the District and consistent with the standards set forth herein and in the State Water Resources Control Board (SWRCB) listing for sewer strength. 1. Low-Strength Commercial = 1.0 Strength Factor Car wash General office and buildings Barber and beauty shops Department, retail stores and general commercial Hospitals and convalescent homes Public Laundromats and dry cleaners Professional office or office building Warehouse Bars without dining facilities Churches Schools (Elementary, junior & High Schools, Colleges) Other uses having a similar strength as determined by the District 2. Medium-Strength Commercial = 2.0 Strength Factor Hotels without dining facilities or cooking facilities Auto repair/sales shop and service station Shopping centers Other uses having a similar strength as determined by the District 53-11 3. High-Strength Commercial = 4.0 Strength Factor Bakery or bakery with deli Hotel with dining facilities Restaurants and bars with food Grocery stores with onsite butcher and/or bakery Other uses having a similar strength as determined by the District 53.12 ISSUANCE AND PAYMENT OF SEWER BILLS A. Issuance of Statements: Statements for sewer service or other charges will be mailed monthly or as soon as practical, after the applicable charges have been determined. B. Due Date: Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date: All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Place of Payment: Payments shall not be credited to a customer’s account until cash, check, credit card, draft, electronic funds transfer, money order or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer’s account until received at the business office. E. Returned Check Charges: A returned payment charge (see Appendix A, Section 34for charge) shall be added to a customer’s account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 53.13 DELINQUENT ACCOUNTS A. Requirement of Deposit Due to Repeated Delinquencies: If payments on a customer account have become delinquent five or more times, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the 53-12 General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief Financial Officer, but shall not exceed two times the highest bill during the twelve (12) months preceding the date of demand for a deposit. B. Handling of Deposit: A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. C. Refund of Deposit: A deposit required under this Section shall be refunded to the customer as provided in Section 25.04 B. Section #Code #Fee Description Meter Size 9 9.04 A.1. District Annexation Processing Fee $763.83 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries District-wide Annexation Fee 3/4" $1,777.00 1" $4,443.00 1-1/2" $8,885.00 2" $14,216.00 3" $28,432.00 4 $44,425.00 6" $88,850.00 8" $142,160.00 10" $204,355.00 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,018.00 . 10 10.01 Filing of Petition $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Reconnection (service resumed) $50.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers) Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4" $16.19 $14.45 $30.64 1" $22.87 $26.79 $49.66 Attachment F Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2" $39.58 $60.61 $100.19 2" $59.62 $103.08 $162.70 3" $113.08 $219.23 $332.31 4" $173.22 $351.09 $524.31 6" $340.29 $718.69 $1,058.98 8" $540.76 $1,160.59 $1,701.35 10" $774.64 $1,670.55 $2,445.19 25 25.03 E.1.(b) Domestic Residential Water Rates(1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $1.86 toward the first five units of water when 6-10 $2.90 overall consumption is ten units or less.) 11-22 $3.77 23 or more $5.80 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $2.86 5-9 $3.71 10 or more $5.73 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10" 0-185 $3.06 186-1,400 $3.14 1,401 or more $3.19 10" & larger 0-7,426 $3.06 7,427-14,616 $3.14 14,617 or more $3.19 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $4.17 55-199 $4.25 200 or more $4.32 1.5" & 2" 0-144 $4.17 145-355 $4.25 356 or more $4.32 3" & larger 0-550 $4.17 551-1,200 $4.25 (1) All Water used in December and billed in January 2014.1,201 or more $4.32 Section #Code #Fee Description Meter Size Charges 25 25.03 E.5. (c)Recycled Water (1)3/4" - 1" 0-32 $3.56 Landscape Irrigation and Certain Non- 33-75 $3.61 Irrigation Purposes Rates 76 or more $3.68 1.5" & 2" 0-130 $3.56 131-325 $3.61 326 or more $3.68 3" & 4" 0-440 $3.56 441-1,050 $3.61 1,051 or more $3.68 6" & larger 0-4,000 $3.56 4,001-10,000 $3.61 10,001 or more $3.68 25 25.03 E.6.(c)Recycled Commercial (1)under 10" 0-173 $2.56 174-831 $2.64 832 or more $2.66 10" & larger 0-7,426 2.56 7,427-14,616 $2.64 14,617 or more $2.66 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.10.(b) Tank Trucks Water Rates (1), continued 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $21.14 more than 4" $28.49 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.31 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2" 0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.048 25 25.03 G.1. Additional Water Charge for Service in the North District Per unit charge except for the first 5 units of residential $0.08 25 25.03 H.1. Additional Water Charges for Service in the Improvement District 9 Water Service Zone Per unit charge except for the first 5 units of residential $0.27 25 25.03 H.2. Additional Monthly System Fee for Improvement District 9 $2.00 25 25.03 I.1.(b) Additional Water Charges for Services in Improvement District 10 Per unit charge except for the first 5 units of residential 0.27 per H.C.F. Effective Jan 1st 2011-2018 (1) All Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.04 A. Deposits for Non-Property Owners 3/4" $75.00 1" $150.00 1-1/2" $200.00 2" $360.00 3" $800.00 4" $1,350.00 6" $3,300.00 8" $4,400.00 10" $5,500.00 28 28.01 B.1. Capacity Fees District-wide Capacity Fee - All IDs excluding Triad 3/4" $7,984.00 1" $19,960.00 1-1/2" $39,920.00 2" $63,872.00 3" $127,744.00 4 $199,600.00 6" $399,200.00 8" $638,720.00 10" $918,160.00 28 28.01 B.1. Capacity Fees 3/4" $5,990.00 - TRIAD 1" $14,975.00 1 -1/2" $29,950.00 2" $47,920.00 3" $95,840.00 4 $149,750.00 6" $299,500.00 8" $479,200.00 10" $688,850.00 28 28.01 B.2. New Water Supply Fee 3/4" $989.00 - All IDs including Triad 1" $2,473.00 1-1/2" $4,945.00 2" $7,912.00 3" $15,824.00 4" $24,725.00 6" $49,450.00 8" $79,120.00 10" $113,735.00 Section #Code #Fee Description Meter Size Charges 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation) 3/4" x 7.5" $210.94 $100.10 $311.04 $84.98 3/4" x 9" $224.59 $100.10 $324.69 $84.98 1" $272.20 $100.10 $372.30 $84.98 1.5" $442.43 $100.10 $542.53 $192.65 2" $633.96 $100.10 $734.06 $192.65 3" $1,975.66 $602.69 $2,578.35 $3,436.57 4" $3,431.41 $602.69 $4,034.10 $3,436.57 6" $5,926.98 $951.99 $6,878.97 $3,436.57 8" $7,405.32 $1,459.79 $8,865.11 $4,930.00 10" $10,650.23 $1,459.79 $12,110.02 $4,930.00 - Potable/Recycled Irrigation 3/4" x 7.5" $210.94 $100.10 $311.04 $216.57 3/4" x 9" $224.59 $100.10 $324.69 $216.57 1" $272.20 $100.10 $372.30 $216.57 1.5" $442.43 $100.10 $542.53 $216.57 2" $633.96 $100.10 $734.06 $216.57 3" $1,367.36 $602.69 $1,970.05 $3,436.57 4" $2,662.04 $602.69 $3,264.73 $3,436.57 6" $4,792.53 $951.99 $5,744.52 $3,436.57 8" $6,384.51 $1,459.79 $7,844.30 $4,930.00 10" $9,060.10 $1,459.79 $10,519.89 $4,930.00 - Combined Fire and Domestic 4" $8,163.63 $602.69 $8,766.32 $3,436.57 6" $10,865.08 $951.99 $11,817.07 $3,436.57 8" $15,797.04 $1,459.79 $17,256.83 $4,930.00 10" $21,557.73 $1,459.79 $23,017.52 $4,930.00 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4" $150.00 1" $180.00 1-1/2" $330.00 2" $2,046.00 3" $850.00 4" $1,986.00 6" $2,465.00 - Construction Trailer Temporary Meter 2" $2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2" $850.00 31 31.03 A.4. Temporary Meter Install & Removal $128.00 Section #Code #Fee Description Meter Size Charges 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 2" $64.00 3" and larger No backflow test $64.00 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1" $25.00 1-1/2" & 2 " $50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B. Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d) Delinquency Tag $10.00 34 34.02 G.3.(a) Meter "Turn-On" Charge During regular business hours $35.00 34 34.02 G.3.(b) Meter "Turn-On" Charge After regular business hours $65.00 53 53.03 A.1. Sewer Capacity Fee per EDU for parcels within a Sewer ID $4,092.00 53 53.03 A.2. Sewer Capacity Fee per EDU for parcels not within a Sewer ID $6,400.00 53 53.03 B.1. Sewer Connection Fee - Russell Square Annexing $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.35 53 53.10 Residential Sewer System Fee (2)5/8" & 3/4" $14.38 1" & larger $14.38 53 53.10 A. Residential Sewer Without Consumption History (2)5/8" & 3/4" $42.35 1" & larger $42.35 Section #Code #Fee Description Meter Size Charges 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $27.97 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.35 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75" $25.83 1" $38.03 1.5" $68.53 2" $105.12 3" $190.52 4" $312.51 6" $617.48 8" $983.46 10" $1,410.42 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2) Rate multiplied Low Strength $2.35 by annual Medium Strength $3.37 avg. units High Strength $5.37 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75" $25.83 1" $38.03 1.5" $68.53 2" $105.12 3" $190.52 4" $312.51 6" $617.48 8" $983.46 10" $1,410.42 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 (2) Sewer billed beginning January 1, 2014. Section #Code #Fee Description Meter Size Charges 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2" $170.00 - Broken Curbstop or Tabs 3/4" - 1" $192.00 - If Customer uses Jumper 3/4" - 1" $149.00 - Broken Lock/Locking Device 3/4" - 1" $56.00 - Cap Lock (Welded) 3/4" - 1" $158.00 - Broken Curbstop or Tabs 1.5" - 2" $265.00 - To Pull and Reset Meter 3" $351.00 - To Pull and Reset Meter 4" $454.00 - To Pull and Reset Meter 6" $454.00 - To Pull and Reset Meter 8" $600.00 - To Pull and Reset Meter 10" $600.00 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Will not exceed per each day the violation is identified or continues. Section #Code #Fee Description Meter Size Charges State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 4, 14, & 18 Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25,& 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Draft Final Report Otay Water District Capacity, New Water Supply, and Annexation Fees for Water and Sewer August 2014 Prepared by HDR 500 108th Avenue NE Phone: (425) 450-6200 Suite 1200 Bellevue, WA 98004-5549 www.hdrinc.com August 21, 2014 Ms. Rita K. Bell Finance Manager Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, California 91978-2004 Subject: Draft Final Report for the Updated Capacity Fees, New Water Supply Fee, and Annexation Fees for the Water and Sewer Utilities Dear Ms. Bell: HDR was retained by the Otay Water District (District) to develop cost-based capacity, new water supply, and annexation fees for the District. Enclosed please find HDR’s draft final report for this project. The conclusions and recommendations contained within this report should enable the District to implement cost-based capacity, new water supply, and annexation fees that meet the District’s financial goals and objectives. The District has historically established cost-based fees and this report is a continuation of those past practices. This report has been prepared using “generally accepted” financial, rate setting and engineering principles. The District’s financial, budgeting and engineering data were the primary sources for much of the data contained in this report. This report was developed with significant participation and input by District management and staff. Prior to adoption of the calculated capacity, new water supply, and annexation fees, HDR recommends that the District have its legal counsel review the report to ensure compliance with California law. HDR appreciates the opportunity to assist the District in this matter. We also would like to thank you and your staff for assistance provided to us. If you have any questions, please call. Very truly yours, HDR Engineering, Inc. Thomas E. Gould Vice President HDR’s Business Leader for Finance and Rates Enclosure Contents i Otay Water District – Capacity and Annexation Fee Updates Executive Summary Introduction ............................................................................................................... 1 Summary and Conclusions ......................................................................................... 1 District Board Review ................................................................................................. 3 Summary .................................................................................................................. 3 1 Introduction 1.1 Introduction ............................................................................................................... 5 1.2 Organization of Report............................................................................................... 5 1.3 Disclaimer ................................................................................................................. 6 2 Overview of Capacity, New Water Supply, and Annexation Fees 2.1 Introduction ............................................................................................................... 7 2.2 Defining Capacity, New Water Supply, and Annexation Fees...................................... 7 2.3 Economic Theory and Capacity, New Water Supply, and Annexation Fees ................. 8 2.4 Capacity, New Water Supply, and Annexation Fee Criteria......................................... 8 2.5 Overview of the Capacity and New Water Supply Fee Methodology ........................ 11 2.6 Summary ................................................................................................................ 13 3 Legal Considerations in Establishing Fees for the District 3.1 Introduction ............................................................................................................. 15 3.2 Requirements under California Law ......................................................................... 15 3.3 Proposition 218 and 26 and Capacity, New Water Supply, and Annexation Fees...... 17 3.4 Summary ................................................................................................................ 18 4 Determination of the District’s Capacity and New Water Supply Fees 4.1 Introduction ............................................................................................................. 19 4.2 Overview of the District’s Water and Sewer System................................................. 19 4.3 Current Water and Sewer Capacity Fees .................................................................. 20 4.4 Calculation of the District’s Capacity and New Water Supply Fees ........................... 21 4.4.1 System Planning Criteria ............................................................................... 22 4.4.2 Equivalent Meter Units ................................................................................ 22 4.4.3 Calculation of the Capacity Fee for the Major System Components .............. 23 4.5 Allowable Capacity Fees and New Water Supply Fee ............................................... 25 4.6 Key Assumptions...................................................................................................... 26 4.7 Implementation of the Capacity Fees, New Water Supply and Annexation Fees ...... 30 4.8 Conformance of the District’s Fees with Critical Legal Elements ............................... 30 4.9 Consultant Recommendations ................................................................................. 33 4.10 Summary ................................................................................................................. 33 Contents Contents ii Otay Water District – Capacity and Annexation Fee Updates 5 Determination of the District’s Water and Sewer Annexation Fees 5.1 Introduction ............................................................................................................. 35 5.2 Current Water Annexation Fee ................................................................................ 35 5.3 Calculation of the District’s Water and Sewer Annexation Fee ................................. 36 5.4 Key Assumptions...................................................................................................... 38 5.5 Implementation of the Annexation Fees .................................................................. 38 5.6 Consultant Recommendations ................................................................................. 39 5.7 Summary ................................................................................................................. 39 Technical Appendices Water Exhibits Exhibit W-1 Development of Capacity Fee – Buy In Exhibit W-2 Development of Pipe Replacement Cost Exhibit W-3A Development of Water Debt Exhibit W-3B Development of Past Interest Payments Exhibit W-4 Summary of Reserve Funds Exhibit W-5 Development of Equivalent Dwelling Units Exhibit W-6 Development of Capacity Fee - Future Exhibit W-7 Current and Proposed Capacity Fee Exhibit W-8 Development of Capacity Fee - New Supply Fee Sewer Exhibits Exhibit S-1 Development of Capacity Fee – Buy In Exhibit S-2 Development of Pipe Replacement Cost Exhibit S-3A Development of Water Debt Exhibit S-3B Development of Past Interest Payments Exhibit S-4 Summary of Reserve Funds Exhibit S-5 Development of Equivalent Dwelling Units Exhibit S-6 Development of Capacity Fee - Future Exhibit S-7 Current and Proposed Capacity Fee Exhibit S-7A Discounted Sewer Capacity Fee for Inside ID Area Customers Annexation Exhibits Exhibit A-1 Summary of Annexation Fee Calculation Exhibit A-2 Summary of Water and Sewer EDUs Exhibit A-3 Summary of Tax Collections and Availability Charges Abbreviations and Acronyms i Otay Water District – Capacity and Annexation Fee Updates Abbreviations and Acronyms CCP Cast-in-place Concrete Pipe CF Capacity Fee CIP Cast-iron pipe CIP Capital Improvement Plan COP Certificate of Participation DIP Ductile iron pipe EDU Equivalent dwelling unit G.O. General Obligation (Bond) HDPE High density plastic pipe MGD Million gallons per day OC Original Cost OCLD Original Cost Less Depreciation PVC Polyvinyl Chloride Pipe RC Replacement/Reproduction Cost RCLD Replacement/Reproduction Cost Less Depreciation RCNLD Replacement/Replacement Cost New Less Depreciation RCNLD Reproduction/Replacement Cost New Less Depreciation RCP Clap pipe STL Steel pipe VCP Vitrified clay pipe Executive Summary 1 Otay Water District – Capacity and Annexation Fee Update Introduction HDR was retained by the Otay Water District (District) to review and update the capacity, new water supply fee, and annexation fees for the water and sewer utilities. The purpose of capacity, new water supply fee, and annexation fees is to bring equity between existing customers and new customers connecting to the District’s utility systems. The objective of this study was to calculate cost-based fees for new customers connecting to the District’s water and sewer system. By establishing cost-based new water supply, capacity and annexation fees, the District attempts to have “growth pay for growth” and existing utility customers will, for the most part, be sheltered from the financial impacts of growth. The District currently has a new water supply fee, water capacity fee, water annexation fee and a sewer annexation fee which is actually the sewer capacity fee. For this study, the proposed fees were developed to be cost-based and bring consistency in the naming and application of the fees across both utilities. The current capacity, new water supply, and annexation fees have not been formally updated since June 2010. Since 2010, the annexation fees, new water supply and capacity fees have been updated quarterly based on the Engineering News Record Construction Cost Index for Los Angeles. The capacity fees were recently updated as of June 2014 ENR and the fees are effective July 1, 2014. 1 Summary and Conclusions The new water supply fee is based on the future capital improvements needed to serve growth divided by the equivalent dwelling units (EDUs) that will be served by the new capacity. For the capacity fees, the District has previously used the “combined methodology” for calculating the capacity fees (CFs) and this methodology is in conformance with generally accepted rate making practices and is based on the District’s water and sewer system planning and design criteria. The calculations also take into account the financing mechanisms of capital improvements. Based on the sum of the existing and future component costs, the net allowable utility CF is determined. “Net” refers to the “gross” capacity fee, net of any debt service credits. “Allowable” refers to the concept that the calculated capacity fee is the District’s cost-based charge. The District, as a matter of policy, may charge any amount up to the cost-based capacity fee, but not over that amount. Charging an amount greater than the allowable capacity fee would not meet the nexus test of a cost-based capacity fee related to the benefit derived by the customer. 1 The adjustment of these types of fees using a price index is a generally accepted utility practice and a best industry practice. Executive Summary Executive Summary 2 Otay Water District – Capacity and Annexation Fee Update Capacity fees must be implemented according to the capacity requirement or impact each new development has on the utility system. This way, the capacity fee is related to the impact the customer places on the system, and to the benefit they derive from the service provided. The existing and maximum allowable capacity and new water supply fee for the water utility system, as calculated within this report, for a new single-family residential meter connection is presented in Table ES-1. The maximum allowable fee has been adjusted to reflect the recent ENR adjustment made in June 2014. Further detail can be found in Section 4 of this report. Table ES – 1 Existing and Maximum Allowable Water Capacity and New Water Supply Fee Fee Description Existing Fee Maximum Allowable Capacity Fee $8,237 $7,984 New Water Supply Fee $949 $989 Larger sized meters pay a higher dollar amount, based on industry established (American Water Works Association – AWWA) weighting factor standards for single family meter equivalencies. The capacity fees for these larger sized meters are presented in Section 4 of this report. The existing and maximum allowable capacity fee for the sewer utility, as calculated within this study, for one Equivalent Dwelling Unit (EDU), or one single-family dwelling unit, is presented in Table ES-2. The maximum allowable fee has been adjusted to reflect the recent ENR adjustment made in June 2014. Table ES – 2 Existing and Maximum Allowable Sewer Capacity Fee ($/EDU) Existing Fee Maximum Allowable $5,986 $6,400 The sewer capacity fees, charged based on various numbers of EDUs, are presented in Section 4 of this report. The annexation fee is charged to new customers annexing into the District boundaries. The annexation fee reimburses existing customers for past contributions so that all customers have contributed equally to the District’s water and sewer system. Currently the District only charges a water annexation fee. The current sewer “annexation fee” is actually a capacity fee. This study has proposed a standardization of the use of the term “capacity” and “annexation” fees between the water and sewer utility. Executive Summary 3 Otay Water District – Capacity and Annexation Fee Update The calculation of the District’s water annexation fee is based on the original value of 1% General Tax and availability charges received to date, escalated to present day values based on the Consumer Price Index, from San Diego, from 1959 to present (through 2013). The 1% general tax is only for water and is not included in the sewer calculation. The existing and proposed annexation fees are shown below in Table ES-3. Table ES – 3 Existing and Maximum Allowable Annexation Fee Utility Existing Fee Maximum Allowable Water Annexation Fee $1,622 $1,777 Sewer Annexation Fee N/A $1,018 District Board Review On August 18, 2014 the findings of this study were presented to the District’s FA&C Committee. Results of the study will be presented to the District’s Board September 3rd. Summary The capacity and annexation fees developed and presented in this report are based on the planning and engineering design criteria of the District’s water and sewer systems, the value of the existing assets, past financing of the system and “generally accepted” ratemaking principles. Adoption of the proposed capacity fees and annexation fees will provide multiple benefits to the District and will continue the District’s practice of establishing equitable and cost-based charges for new customers connecting to the District’s utility systems. Executive Summary 4 Otay Water District – Capacity and Annexation Fee Update This page intentionally left blank. Introduction 5 Otay Water District – Capacity and Annexation Fee Update “The objective of this study is to calculate cost- based capacity, new water supply, and annexation fees for new customers connecting to the District’s water and sewer system.” “By establishing cost-based fees for water and sewer the District maintains an approach of having “growth pay for growth” and existing utility customers should, for the most part, be sheltered from the financial impacts of growth.” 1.1 Introduction HDR was retained by the Otay Water District (District) to review and update its capacity fees, new water supply fee, and annexation fees for water and sewer. The objective of this study is to calculate cost-based capacity, new water supply, and annexation fees for new customers connecting to the District’s water and sewer system. These fees provide the means of balancing the cost requirements for new utility infrastructure between existing customers and new customers. The portion of existing infrastructure and future capital improvements that will provide service (capacity) to new customers is included in the capacity fees. In contrast to this, the District has future capital improvement projects that are related to renewal and replacement of existing infrastructure in service. These infrastructure costs are typically included within the rates charged to the District’s customers, and are not included within the capacity fee. By establishing cost-based fees the District maintains an approach of having “growth pay for growth” and existing utility customers should, for the most part, be sheltered from the financial impacts of growth. 1.2 Organization of Report This report documents the methodology, approach and technical analysis undertaken by HDR and the District to develop the District’s capacity, new water supply, and annexation fees for water and sewer. For purposes of ease in understanding the fees and proposed adjustments, the sewer capacity fee, which is currently the sewer annexation fee, is referred to in this report as the existing sewer capacity fee. The report is divided into five sections. Section 1 provides a brief introduction and overview of the study. Given this brief introduction, Section 2 provides an overview of capacity, new water supply, and annexation fees and the criteria and general methodology that should be used to calculate and establish cost-based fees. Next, Section 3 provides an overview of the requirements under California law for determining capacity, new water supply, and annexation fees. Section 4 reviews the District specific calculations of the cost-based water and sewer capacity fees and the new water supply fee. Finally, Section 5 and provides a summary of the water and sewer annexation fees. Section 1 Introduction Introduction 6 Otay Water District – Capacity and Annexation Fee Update 1.3 Disclaimer HDR, in its calculation of the capacity, new water supply, and annexation fees for water and sewer presented in this report, has used “generally accepted” engineering and ratemaking principles. This should not be construed as a legal opinion with respect to California law. HDR recommends that the District have its legal counsel review the new water supply, capacity and annexation fees for water and sewer as set forth in this report to ensure compliance with California law. Overview of Capacity, New Water Supply and Annexation Fees 7 Otay Water District – Capacity and Annexation Fee Update 2.1 Introduction An important starting point in establishing capacity, new water supply, and annexation fees is to have a basic understanding of the purpose of these fees, along with the criteria and general methodology that is used to establish cost-based fees. Presented in this section of the report is an overview of these fees and the criteria and general methodology that is used to develop cost-based capacity, new water supply, and annexation fees. 2.2 Defining Capacity, New Water Supply, and Annexation Fees The first step in establishing cost-based capacity, new water supply and annexation fees is to gain a better understanding of the definition of a system development charge (SDC) [i.e. a capacity fee (CF)]. For the purposes of this report, an SDC is defined as follows: “System development charges (capacity fees) are one-time charges paid by new development to finance construction of public facilities needed to serve them.”1 Simply stated, capacity fees are a contribution of capital to either reimburse existing customers for the available capacity in the existing system, or help finance planned future growth-related capacity improvements. At some utilities, capacity fees may be referred to as system development charges, impact fees, connection charges, infrastructure investment fees, etc. Regardless of the label used to identify them, their objective is the same. That is, these charges are intended to provide funds to the utility to finance all or a part of the capital improvements needed to serve and accommodate new customer growth. Absent those fees, many utilities would likely be unwilling to build growth-related facilities (i.e., burden existing rate payers with the entire cost of growth-related capacity expansion). In the specific case of the District, annexation fees are a separate fee applied to new outside- District connections to account for the contributions existing District customers have made to the system through payment of general taxes and availability fees over the years. New outside District customers pay a one-time fee based on past general taxes, availability fees and past debt payments (for sewer) that bring the new outside-District customer connecting to the District’s system to an equal financial footing with existing customers of sharing the cost of developing the utility systems to provide services. The District currently has a policy in place for the sewer utility that only customers outside of an ID area pay the annexation fee. 1 Arthur C. Nelson, System Development Charges for Water, Wastewater, and Stormwater Facilities, Lewis Publishers, New York, 1995, p. 1, Section 2 – Overview of Capacity, New Water Supply and Annexation Fees Overview of Capacity, New Water Supply and Annexation Fees 8 Otay Water District – Capacity and Annexation Fee Update It is important to note that the current sewer “annexation fee” is actually a buy-in capacity fee. To avoid confusion regarding these fees and their purpose, an objective of this study was to establish consistent terminology between the utilities regarding these fees. Given that, the sewer “annexation fee” is changed in name primarily. It has been updated, to reflect the current value of the system based on District data and asset values, to a sewer capacity fee. A new sewer annexation fee, based on prior availability fees paid, is calculated for any new customers connecting to the system who are not located within an existing ID area. These fees are further explained in Section 5, along with the updated water annexation fees. 2.3 Economic Theory and Capacity, New Water Supply, and Annexation Fees Capacity, new water supply, and annexation fees are generally imposed as a condition of service. The objective of a capacity fee is not merely to generate money for a utility, but to ensure that all customers seeking to connect to the utility’s system bear an equitable share of the cost of capacity that is invested in both the existing system and any future growth-related expansions. Through the implementation of fair and equitable capacity, new water supply, and annexation fees, existing customers will not be unduly burdened with the cost of new development. By establishing cost-based fees, the District will be taking an important step in assuring adequate infrastructure to meet growth-related needs, and more importantly, providing this required infrastructure to new customers in a cost-based, fair and equitable manner. 2.4 Capacity, New Water Supply and Annexation Fee Criteria In the determination and establishment of the capacity new water supply, and annexation fees, a number of different criteria are often utilized. The criteria often used by utilities to these fees are as follows: „ Customer understanding „ System planning criteria „ Financing criteria, and „ State/local laws Annexation fees differ from capacity and new water supply fees in that annexation fees are based solely on fees and taxes previously paid by other customers. In that sense, system planning criteria does not apply to annexation fees. Capacity and new water supply fees are based on capacity needs of new customers, capacity available in the system, and the cost to provide a unit of capacity. With these differences in mind, a majority of the discussion below relates primarily to capacity and new water supply fees. The component of customer understanding implies that the charge is easy to understand. This criterion has implications on the way that the fees are implemented and assessed to the customer. For water systems, the charge is generally based on meter size or specific customer usage (demands). The other implication of this criterion is that the methodology is clear and concise in its calculation of the amount of infrastructure necessary to provide service. Overview of Capacity, New Water Supply and Annexation Fees 9 Otay Water District – Capacity and Annexation Fee Update “System planning criteria provides the “rational nexus” between the amount of infrastructure necessary to provide service and the charge to the customer.” The use of system planning criteria is one of the more important aspects in the determination of the new water supply and capacity fees. System planning criteria provides the “rational nexus” between the amount of infrastructure necessary to provide service and the charge to the customer. The rational nexus test requires that there be a connection (nexus) established between new development and the new or expanded facilities required to accommodate new development, and appropriate apportionment of the cost to the new development in relation to benefits reasonably received. To comply with the rational nexus test the calculated fees require the following: 1. “A connection be established between new development and the new or expanded facilities required to accommodate such development. This establishes the rational basis of public policy. 2. Identification of the cost of these new or expanded facilities needed to accommodate new development. This establishes the burden to the public of providing new facilities to new development and the rational basis on which to hold new development accountable for such costs. This may be determined using the so-called Banberry factors. [Banberry Development Company v. South Jordan City (631 P.2d 899, Utah 1981)]. 3. Appropriate apportionment of that cost to new development in relation to benefits it reasonably receives. This establishes the nexus between the fees being paid to finance new facilities that accommodate new development and benefit new development receives from such new facilities.”2 The first bullet of the rational nexus test requires the establishment of a rational basis of public policy. This implies the planning and capital improvement studies that are used to establish the need for new facilities to accommodate growth. Adopted master plans or facility plans should firmly meet this first test since these plans assess existing facilities and capacity, project future capacity requirements and determine the future capital infrastructure and new facilities needed to accommodate growth. The second portion of the ration nexus test discusses the Banberry Factors. In summary, “consideration must be given to seven factors to determine the proportionate share of costs to be borne by new development: „ The cost of existing facilities „ The means by which existing facilities have been financed „ The extent to which new development has already contributed to the cost of providing existing excess capacity 2Ibid, p. 16 and 17. Overview of Capacity, New Water Supply and Annexation Fees 10 Otay Water District – Capacity and Annexation Fee Update “One of the driving forces behind establishing cost- based capacity, new water supply, and annexation fees is that “growth pays for growth.” „ The extent to which existing development will, in the future, contribute to the cost of providing existing facilities used community wide or non-occupants of new development „ The extent to which new development should receive credit for providing at its cost facilities the community has provided in the past without charge to other development in the service area. „ Extraordinary costs incurred in serving new development „ The time-price differential inherent in fair comparisons of amount of money paid at different times.”3 The final portion of the rational nexus test is the reasonable apportionment of the cost to new development in relation to benefits it reasonably receives. This is accomplished in the methodology to establish the capacity and new water supply fees, which is discussed in more detail within this section. One of the driving forces behind establishing cost-based capacity, new water supply, and annexation fees is that “growth pays for growth.” Therefore, these fees are typically established as a means of having new customers pay an equitable share of the cost of their required infrastructure. The financing criteria for establishing the fees relates to the method used to finance infrastructure on the system and assures that customers are not paying twice for infrastructure – once through the development fees and again through rates. The double payment can come in through the imposition of growth-related infrastructure debt service within a customer’s rates. The financing criteria also reviews the basis under which main line extensions were provided and assures that the customer are not charged for infrastructure that was provided (contributed) by developers. Many states and local communities have enacted laws which govern the calculation and imposition of these types of development fees. These laws must be followed in the development of these types of fees. Most statutes require a “reasonable relationship” between the fee charged and the cost associated with providing service capacity to the customer. (California legal requirements are described in Section 3 of this report.) The fees do not need to be mathematically exact, but must bear a reasonable relationship to the cost burden imposed. As discussed above, the utilization of the planning and financing criteria and the actual costs of construction and the planned costs of construction provide the nexus for the reasonable relationship requirement. 3Ibid, P. 18 and 19. Overview of Capacity, New Water Supply and Annexation Fees 11 Otay Water District – Capacity and Annexation Fee Update 2.5 Overview of the Capacity and New Water Supply Fee Methodology There are “generally-accepted” methodologies that are used to establish capacity and new water supply fees. Nelson describes eight different methodologies that may be used to establish capacity fees. “They include: „ Market capacity method „ Prototypical system method „ Growth-related cost allocation method „ Recoupment value method, also known as the buy-in method „ Replacement cost method „ Marginal cost method „ Average cost method „ System-wide and growth-related cost-attribution method”4 As Nelson notes, each of these methods may have certain advantages and disadvantages and should be applied in a manner that reflects circumstances and conditions of the utility. As an example, a utility which has significant capacity in their existing system and can accommodate future growth would likely use the recoupment (buy-in) method. In contrast to this, a utility with no existing capacity which requires expansion of capacity to accommodate growth could potentially use the growth-related cost allocation method or the marginal cost method. For utilities that have some existing capacity available to serve a portion of new development, but must build additional capacity to serve all future development, the system-wide and growth- related attribution method may be appropriate. In the case of the District, this is essentially the circumstance for water, in which there is available capacity, but also the need for future expansion to accommodate build-out. Sewer, on the other hand, has available capacity for the foreseeable future to accommodate anticipated customer growth. Regardless of the overall methodology selected, a common denominator of the technical analyses is the various steps undertaken. These steps are as follows: „ Determination of system planning criteria „ Determination of equivalent dwelling unit equivalents (EDUs) „ Calculation of existing system costs „ Determination of any credits The first step in establishing capacity fees is the determination of the system planning criteria. This implies calculating the amount of water or sewer capacity required by a single-family residential customer. For water systems, water demand per equivalent meter is most often used, since this represents the basis for system design. The number of existing customers is expressed in equivalent meter units. The American Water Works Association (AWWA) has a standardized method for determining meter equivalency for larger meter sizes. 4Ibid., P. 71. Overview of Capacity, New Water Supply and Annexation Fees 12 Otay Water District – Capacity and Annexation Fee Update For the sewer system, the amount of flow for one dwelling unit is determined and used to assess the number of equivalent dwelling units, or EDUs. The number of dwelling unit equivalents or equivalent meters can be determined based on a single family meter capacity. This provides the linkage between the amounts of infrastructure necessary to provide service to a set number of customers. Once the number of equivalent meters, or capacity components for the system are determined, a component by component analysis is undertaken to determine the portion of the capacity fee attributable to each component in dollars per equivalent meter. In this process, the existing assets must be valued. Existing assets may be valued in a number of different ways. These methods may include the following: 9 Original Cost (OC) 9 Original Cost Less Depreciation (OCLD) 9 Replacement Cost (RC) 9 Replacement Cost Less Depreciation (RCLD) Given these four different methods for valuing the assets, the selection of the valuation method certainly arises. The American Water Works Association M-1 manual notes the following concerning these various generally accepted valuation methods: “Using the OC and OCLD valuations, the SDC [capacity fee] reflects the original investment in the existing capacity. The new customer “buys in” to the capacity at the OC or the net book value cost (OCLD) for the facilities and as a result pays an amount similar to what the existing customers paid for the capacity (OC) or the remaining value of the original investment (OCLD). Using the RCN and the RCNLD valuations, the SDC [capacity fee or new supply fee] reasonably reflects the cost of providing new expansion capacity to customers as if the capacity was added at the time the new customers connected to the water system. It may be also thought of as a valuation method to fairly compensate the existing customers for the carrying costs of the excess capacity built into the system in advance of when the new customers connect to the system. This is because, up to the point of the new customer connecting to the system, the existing customers have been financially responsible for the carrying costs of that excess capacity that is available to development.”5 As a point of reference for this study, the District capacity fee analysis will use a RCNLD methodology for all assets and the District references this as “reproduction” not “replacement” cost in the study. The District’s existing assets are escalated to current dollars using a cost index (e.g. the Engineering New Record, Construction Cost Index; ENR CCI) and then depreciated using a simple straight-line method based on the useful life of each historical asset, 5 AWWA M-1 Manual, 6th Edition, p. 268 Overview of Capacity, New Water Supply and Annexation Fees 13 Otay Water District – Capacity and Annexation Fee Update respectively. The pipes are valued at “replacement” cost based on current inventory of the system at the current time and a current dollar per lineal foot. This value is also depreciated and is referred to as “replacement” cost. After the existing infrastructure is analyzed then the future expansion projects are added to the total cost component. This total existing and future cost is divided by the total existing and future equivalent meters to determine the “gross capacity charge”. The last step in the calculation of the capacity charge is the determination of any credits. This is generally a calculation to assure that customers are not paying twice о once through capacity fees and again within the local water and sewer rates. 2.6 Summary This section of the report has provided an overview of capacity, new water supply, and annexation fees; the basis for establishing cost-based fees, considerations in establishing the fees, the burden development places on the system and the steps typically taken in the development of the technical analyses. In the development of the District’s capacity, new water supply, and annexation fee study, the issues identified in this section of the report have been addressed and will be discussed in more detail in later sections of the report. The next section of the report provides a brief overview of the legal considerations in establishing new capacity, water supply, and annexation fees as they relate to California law. Overview of Capacity, New Water Supply and Annexation Fees 14 Otay Water District – Capacity and Annexation Fee Update This page intentionally left blank. Legal Considerations in Establishing Fees for the District 15 Otay Water District – Capacity and Annexation Fee Update “The laws for the enactment of capacity charges in California are found in California Government Code sections 66013, 66016, and 66022 within the ‘Mitigation Fee Act.’ 3.1 Introduction An important consideration in establishing capacity, new water supply, and annexation fees is any legal requirements at the state or local level. The legal requirements often establish the methodology around which the capacity, new water supply, and annexation fees must be calculated or how the funds must be used. Given that, it is important for the District to understand these legal requirements and develop and adopt fees which comply with those legal requirements. This section of the report provides an overview of the legal requirements for establishing capacity, new water supply, and annexation fees under California law. A discussion of the applicability of Proposition 218, as it relates to these fees is also provided. The discussion within this section of the report is intended to be a summary of our understanding of the relevant California law as it relates to establishing capacity, new water supply, and annexation fees. It in no way constitutes a legal interpretation of California law by HDR. 3.2 Requirements under California Law In establishing capacity, new water supply, and annexation fees, an important requirement is that they be developed and implemented in conformance with local laws. In particular, many states have established specific laws regarding the establishment, calculation and implementation of development fees. The main objective of most state laws is to assure that these charges are established in such a manner that they are fair, equitable and cost-based. In other cases, state legislation may have been needed to provide the legislative powers to the utility to establish the charges. The laws for the enactment of capacity charges in California are codified in California Government Code sections 66013, 66016, and 66022, which are interspersed within the ‘Mitigation Fee Act.’ The Mitigation Fee Act is comprehensive legislation dealing mainly with development impact fees, although the above sections set forth the various requirements for imposition of capacity fees in California: calculation of the fees, noticing, accounting and reporting requirements, and processes for judicial review. Section 3 – Legal Considerations in Establishing Fees for the District Legal Considerations in Establishing Fees for the District 16 Otay Water District – Capacity and Annexation Fee Update A summary of the relevant statutes required in the calculation of capacity fees is as follows: “66013 (a) Notwithstanding any other provision of law, when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed, unless a question regarding the amount of the fee or charge imposed in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue.” “66013 (b) (3) ‘Capacity charge’ means a charge for facilities in existence at the time a charge is imposed or charges for new facilities to be constructed in the future that are of benefit to the person or property being charged.” In addition to the determination of “the estimated reasonable cost of providing the service for which the fee is imposed,” California law also requires the following: „ That notice (of the time and place of the meeting, including a general explanation of the matter to be considered) and a statement that certain data is available be mailed to those who filed a written request for such notice, „ That certain data (the estimated cost to provide the service and anticipated revenue sources) be made available to the public, „ An opportunity for public input at an open and public meeting to adopt or modify the fee, and „ That revenue in excess of actual cost be used to reduce the fee creating the excess. The basic principle that needs to be followed under California law is that the charge be based on a proportionate share of the costs of the system required to provide service and that the requirements for adoptions and accounting be followed in compliance with California law. For annexation fees, California has provided the authority to charge an availability charge for water and sewer utilities. Within the California water code Section 71631.6 there is a provision for availability charges, as follows: “71631.6. Notwithstanding the provisions of Section 71631, in any improvement district situated within the Otay Municipal Water District in San Diego County, the standby assessment or availability charge shall not exceed thirty dollars ($30) per acre per year for land on which the charge is levied or ten dollars ($10) per year for a parcel less than one acre. In any such improvement district the proceeds from any standby assessment or availability charge in excess of ten dollars ($10) per acre per year shall only be used for the purposes of such improvement district. This section, applicable only to the Otay Municipal Water District of San Diego County, is necessary because of the unique and special water management problems of the area included within such district.” Legal Considerations in Establishing Fees for the District 17 Otay Water District – Capacity and Annexation Fee Update Additionally, the California Public Utilities Code Section 164751, while not applicable to the District, provides further authority and clarification of this fee. “16475.(a) A public utility district which acquires, constructs, owns, operates, controls or uses works for supplying its inhabitants with water, may, pursuant to the notice, protest, and hearing procedures in Section 53753 of the Government Code, fix and collect a water standby or immediate availability charge on all land within its boundaries to which water is made available for any purpose by the district, whether the water is actually used or not, except that such charge shall not supply to lands permanently dedicated exclusively to transportation of persons or property. If the procedures set forth in this section as it read at the time a standby charge was established were followed, the district's board of directors may, by resolution, continue the charge pursuant to this section in successive years at the same rate. If new, increased, or extended assessments are proposed, the district shall comply with the notice, protest, and hearing procedures in Section 53753 of the Government Code…. (c) If a person for more than one year obtains substantially all of his or her water requirements for the contiguous parcels of land which he or she occupies from rainfall, springs, streams, lakes, rivers, or wells, and if the person's primary economic activity on such land is the commercial extraction or processing of minerals, such land shall be exempt from any water standby or availability charges. d) Any funds derived from the charges levied pursuant to this section may be used by the district for all purposes which a public utility district is authorized to expend funds insofar as said purposes relate to the acquisition, construction, operation, control, or use of works for supplying its inhabitants with water.” These Sections of California law indicate the authority to levy the availability fee, which is the key financial input to the annexation fees, properties exempt from such fees, and directives and authority of how such fee revenue should be used. 3.3 Proposition 218 and 26 and Capacity, New Water Supply, and Annexation Fees In 1996, the voters of California approved Proposition 218, which required that the imposition of certain fees and assessments by municipal governments require a vote of the people to change or increase the fee or assessment. Of interest in this particular study is the applicability of Proposition 218 to the establishment of capacity fees for the District. In Richmond v. Shasta Community Services Dist., 32 Cal.4th 409 (2004), the California Supreme Court held that water connection fees (capacity and new water supply fees) are not “assessments” under Proposition 218 because they are imposed only on those who are voluntarily seeking water service, rather than being charged to particular identified parcels, and therefore such fees are not subject to the procedural or substantive requirements of 1 Generally the Public Utilities Code does not apply to the District. Legal Considerations in Establishing Fees for the District 18 Otay Water District – Capacity and Annexation Fee Update Proposition 218. The court also held that such fees can properly be enacted by either ordinance or resolution. In November 2010 the voters of California passed Proposition 26, an initiative based state constitutional amendment, the Supermajority Vote for Passage of New Taxes and Fees Act. Proposition 26 requires a two-thirds supermajority vote of the California State Legislature or local legislative Board, to pass many fees, levies, charges and tax revenue allocations that previously could be enacted by a simple majority vote. However, the changes of this legislation do not apply to most user fees, property development charges, and property assessments, per exemption 6 of the legislation. Exemption 6 states that a charge imposed as a condition of property development are exempt. This language is similar to the fees’ exemption from Proposition 218. Property development charges, such as capacity fees and annexation fees, which are imposed as a result of property development in order to provide services directly to the fee payer, and are associated with level of benefits directly received by the fee payer, are exempt from this legislation because they are determined based on the benefit the fee payer directly receives from the services, or have a reasonable nexus to the benefits derived by the fee payer. 3.4 Summary This section of the report has provided an overview of the legal requirements under California law for the establishment of capacity, new water supply, and annexation fees. As was noted above, an important legal requirement is that the fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. The next section of the report provides the District’s calculation of the fees, which provides the basis for the establishment of a reasonable cost (capacity fee). Determination of the District’s Capacity and New Water Supply Fees 19 Otay Water District – Capacity and Annexation Fee Update 4.1 Introduction This section of the report presents the details and key assumptions in the calculation of the District’s capacity fees for water and sewer and the new water supply fee for water. The calculation of the District’s capacity and new water supply fees is based upon District specific accounting and planning information. Specifically, the fees are based upon the District’s fixed asset records; the District’s current capital improvement plans, existing equivalent dwelling units (EDUs) and projection of future EDUs. For the water utility, the Water Resources Master (WRM) Plan Update, of October 2008 (and revised in 2010 and 2013) was used. This document will be referred to as the “WRM Plan” throughout this section of the report. Additionally, for the sewer utility, the latest Plan used for planning criteria, was the Wastewater Management (WWM) Plan, 2013, referred to as the WWM Plan in this report. As was noted in Section 2 of this report, these planning documents and projections of future EDUs provide the required support for a “rationally based public policy” to support the imposition of cost-based capacity and new water supply fees. To the extent that the cost and timing of future capital improvements change, then the capacity and new water supply fees presented in this section of the report should be updated to reflect the changes. 4.2 Overview of the District’s Water and Sewer System The Otay Water District is a water, recycled water and sewer service provider. The District was established in 1956. The District is located in the southern portion of San Diego County and includes approximately 137 square miles of which 125.5 miles are within the District’s boundaries. The service area includes both urban and rural development. The District provides water within 125.5 square miles of the southeaster San Diego County. The water service planning area comprises three distinct land use planning agencies. They are the City of San Diego, the City of Chula Vista, and the County of San Diego. It serves the communities of Spring Valley, La Presa, Rancho San Diego, Jamul, eastern Chula Vista, and eastern Otay Mesa along the international border of Mexico. Potable water delivered by Otay Water District is purchased from the San Diego County Water Authority. Most of the water is purchased from the region’s primary importer, the Metropolitan Water District of Southern California. There are approximately 724 miles of potable water lines, 40 potable reservoirs, and 21 potable pump stations. Section 4 – Determination of the District’s Capacity and New Water Supply Fees Determination of the District’s Capacity and New Water Supply Fees 20 Otay Water District – Capacity and Annexation Fee Update The District provides wastewater service to a portion of the land area within the Jamacha Basin, which is located within its North District. The County of San Diego also provides wastewater service in a portion of the Jamacha Basin. Wastewater flows from each agency’s customers are conveyed in joint collection and pumping systems. The District is responsible for approximately 88 miles of sewer line. The District owns and operates the Ralph W. Chapman Water Reclamation Facility (RWCWRF) within the Jamacha Basin. Wastewater flows generated within the Jamacha Basin are pumped to the RWCWRF and treated to produce recycled water, which is used to meet a portion of the District’s existing recycled water demand. All remaining flows are discharged into the Metro System. Wastewater collection, pumping, and treatment costs are shared between the District and the County as provided in the 1998 agreement between the Spring Valley Sanitation District (San Diego County) and Otay Water District. There are two sources of recycled water to the District. The RWCWRF has up to 1.3 MGD (million gallons per day capacity). The District also has an agreement with the City of San Diego which allows the District to purchase up to 6.0 MGD of recycled water generated by the City’s South Bay Water Reclamation Plant (SBWRP). There are approximately 99 miles of recycled water lines, 4 recycled water reservoirs, and 3 recycled water pump stations. The District delivers recycled water to customers through a dedicated distribution system where it is used to irrigate golf courses, playing fields, public parks, roadside landscapes and open space in eastern Chula Vista. 4.3 Current Water and Sewer Capacity Fees The District’s current water capacity and new water supply fees are shown below in Table 4-1. Table 4-1 Current Water Capacity and New Water Supply Fees by Meter Size Meter Size Meter Equivalent Water Capacity Fee New Water Supply Fee 3/4” 1.0 $8,237 $949 1” 2.5 20,593 2,373 1- 1/2” 5.0 41,185 4,745 2” 8.0 65,896 7,592 3” 16.0 131,792 15,184 4” 25.0 205,926 23,726 6” 50.0 411,852 47,452 8” 80.0 658,962 75,992 10” 115.0 947,258 109,138 [1] – District Capacity Fees effective June 2014, ENR on 7/1/2014 Determination of the District’s Capacity and New Water Supply Fees 21 Otay Water District – Capacity and Annexation Fee Update Larger sized meters pay a greater fee which is based upon industry established (American Water Works Association [AWWA]) safe operating capacities of the meters. Weighting factors are created to establish single family meter equivalencies. As part of this study, the District requested that HDR develop a capacity fee for the sewer utility. Currently the sewer capacity fee is referred to as the sewer “annexation fee”, but that fee is based on the buy-in costs of available capacity in the sewer system. Within this study, and for consistency moving forward, the District’s current sewer annexation fee will be appropriately renamed and referred to as the sewer capacity fee. The existing sewer capacity fee is presented in Table 4-2, on a per EDU basis. The District’s Code Section 53.09 indicates the number of EDUs for various types of land uses. Table 4-2 Current Sewer Capacity Fees by Number of EDUs Number of EDUs Sewer Capacity Fee 0.38 $2,275 0.60 3,591 1.00 5,986 1.20 7,183 0.70 4,190 5.00 29,929 15.00 89,786 25.00 149,643 40.00 239,429 [1] – District Capacity Fees effective June 2014, ENR on 7/1/2014 Section 53.09 of the District’s Code provides guidelines for determining the number of EDUs. For example, single-family, multi-family, condos and mobile homes are charged 1.0 EDU per unit. Hotels/motels with rooms with no kitchen are charged 0.38 EDUs per unit, while rooms with kitchens are charged 0.60 EDUs. Commercial uses are charged 1.2 EDUs for the first 1,000 square feet, and 0.70 EDU per 1,000 square feet of additional space. 4.4 Calculation of the District’s Capacity and New Water Supply Fees As was discussed in Section 2, the process of calculating new water supply fee and capacity fees is based upon a four-step process. These steps were as follows: „ Determination of system planning criteria „ Determination of equivalent dwelling units (EDUs) Determination of the District’s Capacity and New Water Supply Fees 22 Otay Water District – Capacity and Annexation Fee Update „ Calculation of the capacity fee for system costs „ Determination of any capacity fee credits Each of these areas is discussed in more detail below. 4.4.1 System Planning Criteria System planning criteria typically involves calculating the amount of water required by a single- family residential customer. Water demand represents the basis for system design. For the District, the American Water Works Association (AWWA) has a standardized method for determining meter equivalency for larger meter sizes. The number of equivalent meters can be determined based on AWWA meter equivalency. The number of customers by meter size was based on data from the District’s utility billing system as of June 2013. Table 4-3 shows a summary of the District’s 2013 water service customers by meter size. Table 4-3 2013 Water Existing Number of Meters Meter Size Residential Master Metered Commercial & Public AG, LDs, Const. Recycled Total 5/8” 1 0 679 -- -- 680 3/4” 43,186 41 336 103 1 43,667 1” 1,463 186 389 262 102 2,402 1–1/2” 14 245 291 383 393 1,326 2” 4 224 404 466 194 1,292 3” -- 34 32 5 4 75 4” -- 61 28 6 7 102 6” -- 6 8 2 2 18 8” -- 3 -- -- -- 3 10” -- -- 5 -- 1 6 Total 44,668 800 2,172 1,227 704 49,571 The total number of water service customers by meter size as of June 2013 is 49,571 units. For the sewer utility, the WWM Plan used 80 gallons per capita day (gpcd) for residential equivalents, and 25 gpcd for employment populations. 4.4.2 Equivalent Meter Units For system planning the number of existing customers by meter size is converted to equivalent meters. Equivalent meters are used to adjust to the total number of customers to reflect the capacity differences associated with different size meter connections. The AWWA has a Determination of the District’s Capacity and New Water Supply Fees 23 Otay Water District – Capacity and Annexation Fee Update standardized method for determining meter equivalency for larger meter sizes. For the District, the AWWA M1 Manual meter equivalency ratios are used for residential connections. The number of dwelling unit equivalents or equivalent meters can be determined based on a single family meter capacity. Table 4-4 shows the 2013 water service customers by meter size converted to a single family meter equivalency. Table 4-4 2013 Water Equivalent Meters Meter Size AWWA Single Family Weighting Total Customers by Meter Size Total Single Family Meter Equivalency 5/8” 1.00 680 680 3/4” 1.00 43,667 43,667 1” 2.50 2,402 6,005 1–1/2” 5.00 1,326 6,630 2” 8.00 1,292 10,336 3” 16.00 75 1,200 4” 25.00 102 2,550 6” 50.00 18 900 8” 80.00 3 240 10” 115.00 6 690 Total 49,571 72,898 The total water residential meter equivalency for the District is 72,898 units. This total will be used in determination of the capacity and annexation fees. For the sewer system, the number of EDUs was determined by using the EDUs in the 2010 study of 6,714, and adding the 27 new connections since 2009, for a total of 6,741 existing EDUs on the sewer system. 4.4.3 Calculation of the Capacity Fee for the Major System Components The next step of the analysis is to review the major functional system infrastructure to determine the capacity fee for the system. In calculating the capacity fees for the District, existing components, debt service for existing facilities, future capital improvements relating to expansion and capital fund reserves were included. The methodology used to calculate each component is described below. EXISTING OR BUY-IN COMPONENT – To calculate the value of the existing assets for the buy-in component, the District’s methodology considered the original cost of each asset. The original cost Determination of the District’s Capacity and New Water Supply Fees 24 Otay Water District – Capacity and Annexation Fee Update of the asset was then adjusted to the value for reproduction cost. The reproduction cost of each asset was then depreciated for the remaining useful life (i.e. reproduction cost less depreciation). A reproduction cost method “is appropriate when the system has been completely built out, or possesses substantial excess capacity to accommodate new development on a fill-in basis. . .”1 The District provided an asset listing for the various existing components and their installation dates. As was noted in Section 2, there are different methods for valuing existing assets. In this case, a reproduction cost new less depreciation method was used. To accomplish this, the original cost of each asset was escalated to current, June 30, 2013 dollars, based on the Construction Cost Index (CCI) for the Los Angeles area published in the City Engineering News & Record (ENR). Then, based on the installation date and an estimated useful life provided by the District for each asset, the reproduction cost for each asset was depreciated. Pipelines were valued at replacement cost new less depreciation. The length and size of pipe was multiplied by an average replacement cost per inch diameter of $25. Including the recycled water components, the total capacity related eligible plant is approximately $631.8 million. The valuation of the existing assets can be seen on Exhibit W-1 for water and Exhibit S-1 for sewer of the Technical Appendix. Given the value of the assets, the next step was to determine the portion of the project costs that were deemed eligible to be included in the calculation of the capacity fee. The term “Capacity fee eligible” simply describes the amount of the asset to be included within the calculation of the fee. Within this study, meters, older computers, and miscellaneous other operational cost items that appeared to be nearly depreciated were not included in the capacity fee calculation. The final value of the assets was reduced by the amount of future principal on the debt associated with the assets as the principal will be recovered via the debt component. As described below (see Debt Service Component discussion), the remaining principal portion of the debt associated with the assets was deducted from the total eligible asset value prior to calculating the capacity fee. This inclusion of a “debt service credit” avoids double charging the customer for the asset value in the existing or buy-in component of the capacity charge, and also in the debt service component of the rates. The principal portion of the debt service balance on existing assets is removed from the value prior to calculating the buy-in portion of the fee. DEBT SERVICE COMPONENT - In addition to the buy-in component, a debt service component was also developed. This component accounts for the principal on existing assets. By segregating the debt service out, the cost can be clearly identified and calculated appropriately. To avoid double-counting of the assets financed with debt, the future principal associated with those assets was deducted from the existing infrastructure value. 1 Arthur C. Nelson, System Development Charges for Water, Wastewater, and Stormwater Facilities, Lewis Publishers, New York, 1995, P. 77 Determination of the District’s Capacity and New Water Supply Fees 25 Otay Water District – Capacity and Annexation Fee Update The District has six outstanding issues for the water system. They are the 1996, 2007 and 2010A Certificates of Participation, 2009 General Obligation Bond, 2010 Build America Bonds, and the 2013 Water Revenue Refunding Bonds. There are no outstanding sewer bonds or State low-interest loans. The District’s total outstanding principal is $110 million, which is all related to water. Details of the debt service are shown on Exhibit W-1 and W-3A. OTHER COMPONENTS - In addition to the existing or buy-in component and debt service component, capital fund reserves, past interest payments from 1959 to 2008 which were not previously capitalized (net of depreciation at 50 year average life) were determined to be capacity fee related. These components are considered to be asset valuation adjustments to the overall water and sewer systems since they are capacity infrastructure costs that relate to the water and sewer systems as a whole. The total capacity eligible fund reserve is $30 million for water. Past interest payments net of depreciation is $40 million for water and $9.9 million for sewer. Further detail can be seen on Exhibit W-1, W-3B and W-4 for water and S-1, S-3B and S-4 for sewer of the Technical Appendix. FUTURE COMPONENTS – An important requirement for a capacity fee study is the connection between the anticipated future growth on the system and the needed facilities required to accommodate that growth. For purposes of this study, the District’s most current Capital Improvement Plan was provided. This plan came from the District’s latest WRM Plan, which is currently being updated, and the District’s Adopted Capital Improvement Program Budget document for 2014 - 2019. District staff reviewed the existing capital improvement plan (CIP) and updated it with information, as available, from the on-going WRM Plan update. Additionally, projected growth was developed within this WRM Plan for the water system, and within the WWM Plan for the sewer system. The projects necessary to meet demand for the water system were included in the CIP, along with a projection of the number of future EDUs. For the sewer system, it was determined that no expansion projects are needed at this time to meet the needs of projected growth. The updated CIP detailed projects as expansion, betterment, new supply or replacement projects. Capital improvements that were expansion related were included in the capacity fee calculation. The total capacity eligible future projects for water totaled $280 million. Exhibit W-6 of the water Technical Appendix contains the details of this portion of the fee. 4.5 Allowable Capacity and New Water Supply Fees Based on the sum of the component costs calculated above, the allowable water and sewer capacity fee were determined. “Allowable” refers to the concept that the calculated capacity fees shown on Table 4-5 are the District’s cost-based water capacity fees. The District, as a matter of policy, may charge any amount up to the allowable capacity fee, but not over that amount. Charging an amount greater than the allowable capacity fee would not meet the nexus test of a cost-based capacity fee. Details are provided in Exhibit W-7 for water and S-7 for sewer of the Technical Appendix. Determination of the District’s Capacity and New Water Supply Fees 26 Otay Water District – Capacity and Annexation Fee Update Table 4-5 Summary of Allowable Water Capacity Fee Based on Single Family Meter Equivalent Total “Allowable” Capacity Fee Total Existing Capacity Plant (Repro & Replace. Less Depreciation) $592,228,550 Total Future Capacity Plant 283,405,230 Total Capacity Plant $875,633,780 Existing EDUs 72,898 Future EDUs 41,405 Total EDUs 114,303 Total Allowable Capacity Fee per 3/4” Equivalent Meter $7,661 Index to June 2014 ENR 1.0422 Total Allowable Capacity Fee per 3/4” Equivalent Meter $7,984 As can be seen in Table 4-5, the water capacity fee is $7,661 for a 3/4” equivalent meter as of June 2013 data. The maximum allowable fee has been adjusted to reflect the recent ENR adjustment made in June 2014. The final allowable fee is $7,984. The fee is then placed in the context of the size of meter. The water capacity fee varies based upon the safe operating capacity of the customer’s meter, which is shown below in Table 4-7. Table 4-6 shows the new water supply fee calculation. This fee used the same methodology as described above, but is based only on future CIP projects that were identified as necessary for new water supply. The cost of these future projects were divided by the projected growth they are estimated to serve, to determine a total allowable new water supply fee per EDU for an equivalent meter. Determination of the District’s Capacity and New Water Supply Fees 27 Otay Water District – Capacity and Annexation Fee Update Table 4-6 Summary of Allowable New Water Supply Fee Total “Allowable” Water Supply Fee Total Future Capacity Plant (Expansion) $39,279,000 Future EDUs 41,405 Total Allowable Capacity Fee per 3/4” Meter Equivalent $949 Index to February 2014 ENR 1.0422 Total Allowable Capacity Fee per 3/4” Equivalent Meter $989 Table 4-7 provides a summary of the calculated and allowable new water supply and water capacity fees by meter size. Table 4-7 Calculated Water Capacity and New Water Supply Fee by Meter Size Meter Size Meter Equivalent Water Capacity Fee Water New Water Supply Fee 3/4” 1.0 $7,984 $989 1” 2.5 19,960 2,473 1- 1/2” 5.0 39,920 4,945 2” 8.0 63,872 7,912 3” 16.0 127,744 15,824 4” 25.0 199,600 24,725 6” 50.0 399,200 49,450 8” 80.0 638,720 79,120 10” 115.0 918,160 113,735 As can be seen in Table 4-7, the water capacity fee is $7,984 for a 3/4” meter, the new water supply fee is $989 for a new water supply fee. The capacity and new water supply fee varies based upon the safe operating capacity of the customer’s meter. The capacity charges for the larger meter sizes are determined by multiplying the capacity charge for a 3/4” meter by the meter capacity weighting factors in the AWWA M1 manual. The weighting factors are determined based on the AWWA safe operating capacities for the size of meter. The safe operating capacity of each meter is divided by the safe operating capacity for a single family displacement type meter to determine the weighting factor for each meter. For example, the safe operating flow capacity of a 2” displacement meter is eight (8) times the safe operating Determination of the District’s Capacity and New Water Supply Fees 28 Otay Water District – Capacity and Annexation Fee Update flow capacity of a 3/4” meter. Stated another way, the capacity of a customer with a 2” displacement meter has the equivalent capacity of eight (8) single-family homes. The District’s current fee schedule has a separate fee for the Triad Development area. For this study, District staff researched the purpose of the fee reduction back to its inception and determined that when the Triad Development initially was developed the developers paid for the storage the area would need. Therefore, the capacity fees for the Triad area are credited the portion of the fee that relates to potable water storage. HDR reviewed the discount provided to Triad and concluded that the discount of 25% of the fee fairly reflects the time value of the $17 million paid for storage facilities. This is also consistent with the District’s current approach to providing a Triad credit on the fees. Table 4-8 presents the calculated water capacity fees along with the reduced Triad Development fees. New connections within the Triad area still pay the annexation fee (as appropriate) and the new water supply fee, as presented within this report. Table 4-8 Calculated Water Capacity and Triad Capacity Fees by Meter Size Meter Size Meter Equivalent Water Capacity Fee Triad Water Capacity Fee 3/4” 1.0 $7,984 $5,990 1” 2.5 19,960 14,975 1- 1/2” 5.0 39,920 29,950 2” 8.0 63,872 47,920 3” 16.0 127,744 95,840 4” 25.0 199,600 149,750 6” 50.0 399,200 299,500 8” 80.0 638,720 479,200 10” 115.0 918,160 688,850 SEWER CAPACITY FEES – The allowable sewer capacity fee is shown below in Table 4-9. There were no future sewer capacity related projects. There is ample capacity within the existing sewer system to serve the anticipated growth on the system. Details are provided in Exhibit S-7 of the Technical Appendix. Determination of the District’s Capacity and New Water Supply Fees 29 Otay Water District – Capacity and Annexation Fee Update Table 4-9 Summary of Allowable Sewer Capacity Fee Based on One EDU Total “Allowable” Capacity Fee Total Existing Capacity Plant (Repro & Replace. Less Depreciation) $41,397,911 Total Future Capacity Plant 0 Total Capacity Plant $41,397,911 Existing EDUs 6,741 Future EDUs 0 Total EDUs 6,741 Total Allowable Capacity Fee per EDU $6,141 Index to June 2014 ENR 1.0422 Total Allowable Capacity Fee per EDU $6,400 Table 4-10 provides a summary of the calculated and allowable sewer capacity fee by number of EDUs, based on Section 53.09 of the District’s Code. The District’s current resolution also specifies that customers within an ID area would not pay the “annexation fee”. Since the current sewer annexation fee is actually the buy-in capacity fee, it was determined by District staff who researched the historical aspects of the Resolution, that customers within an ID area should pay an equitable portion of the costs of available capacity, but should not pay an actual annexation fee, and should receive a credit for debt payments they have paid through debt assessments applied to parcels within the ID areas. Therefore, the sewer capacity fee is listed for those customers outside an ID area, who would pay the full capacity fee and an annexation fee for sewer, and those inside an ID area who would pay only a reduced capacity fee, which is reduced by the principal paid on the 1990 State loan for treatment plant, and all past interest payments. Table 4-10 Calculated Sewer Capacity Fee by Number of EDUs Number of EDUs Sewer Capacity Fee Outside ID Area Sewer Capacity Fee Inside Sewer ID Area 0.38 $2,432 $1,555 0.60 3,840 2,455 1.00 6,400 4,092 1.20 7,680 4,911 0.70 4,480 2,865 Determination of the District’s Capacity and New Water Supply Fees 30 Otay Water District – Capacity and Annexation Fee Update 4.6 Key Assumptions In the development of the capacity fees for the District’s water and sewer utilities, a number of key assumptions were utilized. These are as follows: „ The District’s capacity fees were developed on the basis of planning documents, anticipated future connections and the needed capital improvements to serve those future connections. „ The District developed their projections of future EDUs based upon an analysis of available land area and type of development, and assumed meter sizes. „ The District’s asset records were used to determine the existing infrastructure assets. „ The District provided financial records related to capital reserves available, past interest payments, billing system reports for number of meters by size, and pipeline inventories. „ The District provided the current cost per lineal foot for pipelines for each utility. „ The District provided the most recent CIP for future expansion improvements. „ The District determined the portion of future improvements that were growth-related. „ The base year for the CIP was assumed at 2014. „ The calculation of the debt credit component included current outstanding principal on existing assets. 4.7 Implementation of the Capacity, New Water Supply Fees, and Annexations Fees The District currently escalates capacity, new water supply, and annexation fees based on the Engineering News Record Construction Cost Index (ENR-CCI) on a quarterly basis. The ENR-CCI tracks changes in municipal construction costs. The methodology used to calculate these fees takes into account the cost of money or interest charges and inflation. Therefore, HDR would recommend that the District continue to adjust the fees at least annually, or quarterly, using the local ENR-CCI to reflect the cost of interest and inflation. This method of escalating the District’s fees should be used for no more than a five-year period. After five years, HDR recommends that the District update the fees based on the actual cost of infrastructure and any new planned facilities that would be contained in an updated master plan or capital improvement plan. 4.8 Conformance of the District’s Fees with Critical Legal Elements In calculating the District’s capacity fees, significant thought and consideration was given developing a fair and reasonable methodology that would meet the critical legal elements for capacity fees. These critical elements were previously discussed in Section 2. In summary form, the three tests to comply with the rational nexus test for the calculated fees require the following: Determination of the District’s Capacity and New Water Supply Fees 31 Otay Water District – Capacity and Annexation Fee Update 1. A connection be established between new development and the new or expanded facilities required to accommodate such development. This establishes the rational basis of public policy. In the development of this study, the District’s capacity fees were based upon District specific accounting and planning information. Specifically, the capacity fees are based upon the District’s fixed asset records; and the District’s current capital improvement plan (CIP) and projection of future EDUs. The use of this data and information was the “best available” and “reasonable” information and provides the required support for a “rationally based public policy” to support the imposition of capacity fees. 2. Identification of the cost of these new or expanded facilities needed to accommodate new development. This establishes the burden to the public of providing new facilities to new development and the rational basis on which to hold new development accountable for such costs. This may be determined using the so-called Banberry factors. Banberry states that “consideration must be given to seven factors to determine the proportionate share of costs to be borne by new development: x The cost of existing facilities The District’s analysis considers the existing assets with a combined component. The assets are valued using a depreciated reproduction cost value for all assets and a replacement cost value for pipes. x The means by which existing facilities have been financed The District’s analysis considered the debt service component related to the expansion component. The methodology provided a debt credit for outstanding principle related to existing assets. x The extent to which new development has already contributed to the cost of providing existing excess capacity The District’s methodology excluded all contributed capital from the calculation of the combined component of the capacity fee. The Triad credit (discount) reflects this requirement. x The extent to which existing development will, in the future, contribute to the cost of providing existing facilities used community wide or non-occupants of new development The District’s future expansion considers all future projects for the benefit of future expansion. Absent growth, the District’s existing facilities are sufficient to serve existing District customers. x The extent to which new development should receive credit for providing at its cost facilities the community has provided in the past without charge to other development in the service area. The District is not aware of any situation or condition that would receive a credit for this test. No credits have been included within the calculation of the District’s Determination of the District’s Capacity and New Water Supply Fees 32 Otay Water District – Capacity and Annexation Fee Update capacity fee for new development providing at its cost facilities the community has provided in the past without charge to other development in the service area. x Extraordinary costs incurred in serving new development No extraordinary costs are assumed to have been incurred in the past, nor are any extraordinary costs assumed to be incurred in the future and included within the calculation of the District’s capacity fee. x The time-price differential inherent in fair comparisons of amount of money paid at different times. By using a depreciated reproduction cost for assets and depreciated replacement cost for pipes, the methodology for the combined method, the District has acknowledged the age and remaining useful life of the facilities. The adjustment for the Engineering News Record takes into consideration the time-price differential as a customer connects to the system. 3. Appropriate apportionment of that cost to new development in relation to benefits it reasonably receives. This establishes the nexus between the fees being paid to finance new facilities that accommodate new development and benefit new development receives from such new facilities. The District’s methodology considered the value of existing and future assets to determine the fee. The value of those assets were divided by the number of EDUs that would be served by those assets. Based upon the above, HDR is of the opinion that the District’s calculated capacity, new water supply and annexation fees meet the rational nexus test. While different parties may agree or disagree on certain assumptions or approaches, the overall test is a reasonableness relationship between the fee imposed and the benefit derived. The other perspective to consider is the following finding by the Florida Supreme Court. The court ruled the fees were valid when they: „ “Do not exceed that which is reasonably required to fund expansion to benefit future connections „ Are needed to finance expansion that accommodates new development „ Are earmarked for expansion”2 The answer to these three tests for the District are “yes.” As calculated the proposed fees will be no greater than the calculated fees. The District’s calculated capacity fees may be used to not only pay for debt on past expansion projects, but also to fund future planned expansion projects. Finally, the District has a separate and segregated expansion fund and all capacity 2 Florida Supreme Court, Contractors and Builders Association of Pinellas County v. City of Dunedin [329 So. 2nd 314 (Fla. 1976)] Determination of the District’s Capacity and New Water Supply Fees 33 Otay Water District – Capacity and Annexation Fee Update fees collected will remain in the expansion fund and be used to fund existing expansion related debt and future expansions. 4.9 Consultant Recommendations Based on our review and analysis of the District’s fees, HDR makes the following recommendations: „ The District should revise and update their capacity and new supply fees for new connections to the water and sewer systems that are no greater than the fees as set forth in this report. „ The District should continue within their resolution or ordinance the provision for periodic (annual or quarterly) adjustments to the fees based on changes in the Engineering News Record Construction Cost Index. „ The District should update the actual calculations for the capacity and new supply fees based on the methodology as approved by the resolution or ordinance setting forth the methodology for capacity fees at such time when a new capital improvement plan, facilities plan, master plan or a comparable plan is approved or updated by the District. 4.10 Summary The capacity and new supply fees developed and presented in this section of the report are based on the engineering design criteria of the District’s water and sewer system, the value of the existing assets, future capital improvements, current debt service on existing assets and “generally accepted” ratemaking principles. Adoption of the proposed fees will provide multiple benefits to the District and create equitable and cost-based charges for new customers connecting to the District’s water and sewer system. Determination of the District’s Capacity and New Water Supply Fees 34 Otay Water District – Capacity and Annexation Fee Update This page intentionally left blank. Determination of the District’s Water and Sewer Annexation Fee 35 Otay Water District – Capacity and Annexation Fee Update 5.1 Introduction This section of the report presents the details and key assumptions in the calculation of the District’s water and sewer annexation fee. The annexation fee is charged only to new customers annexing into the District’s service area boundaries (i.e. customer’s currently outside the District’s boundaries). The annexation fee reimburses existing customers for past contributions so that all customers have contributed equally to the District’s water and sewer systems. Currently the District only charges a water annexation fee. As noted in the previous section of the report, the District’s sewer “annexation fee” is actually the sewer system buy-in capacity fee. This study proposes separating the sewer fee into an annexation and capacity fee, in order that both utilities are treated as consistently as possible within the fee structure and schedule. The calculation of the District’s annexation fee is based upon District specific tax and availability charge collections. 5.2 Current Water Annexation Fees The current water annexation fee is based on the original value of the 1% General Tax and availability charges to date. These values are then escalated using the Consumer Price Index, from San Diego, from 1959 to present (2013). The total present value of the 1% general tax and the availability charges are divided by current water and recycled EDUs. The District’s current water annexation fees are shown below in Table 5-1. Table 5-1 Water Annexation Fees by Meter Type and Size Meter Size Meter Equivalent Water Annexation Fee 3/4” 1.0 $1,622.39 1” 2.5 4,055.90 1- 1/2” 5.0 8,111.80 2” 8.0 12,978.88 3” 16.0 25,957.76 4” 25.0 40,559.00 6” 50.0 81,118.00 8” 80.0 129,788.80 10” 115.0 186,571.40 [1] – District Annexation Fees linked to ENR-CCI for Los Angeles and adjusted quarterly. Last updated July 2014. Section 5 – Determination of the District’s Water and Sewer Annexation Fees Determination of the District’s Water and Sewer Annexation Fee 36 Otay Water District – Capacity and Annexation Fee Update As shown, the District’s current annexation charge is based on a 3/4” meter based on the AWWA safe operating capacity of a single family meter. The fees shown are effective July 1, 2014 and were adjusted by the consumer price index June 2014. 5.3 Calculation of the District’s Water and Sewer Annexation Fee The District currently has a water annexation fee and does not have a sewer annexation fee. The District’s current sewer “annexation” fee is a sewer capacity fee. To avoid confusion concerning the purpose or use of the fees, HDR has developed the capacity fee (See Section 4) and in this section of the report will develop a sewer annexation similar to the current water annexation fee. The separate sewer annexation fee established herein has been developed such that it reflects the availability fees previously paid by customers within the ID areas of the sewer service area. The calculation is still based on the current methodology for water of the original value of the 1% General Tax and availability charges to date escalated to present day values based on the Consumer Price Index, from San Diego, from 1959 to present (2013). The 1% general tax is only for the water utility and is not included in the sewer calculation because no customers in the service area have paid the 1% general tax for the sewer system. The calculated water annexation fees are shown below in Table 5-2 and Table 5-3. Table 5-2 Calculation of Water Annexation Fee Item Original Value Present Value 1% General Tax $40,494,657 $62,541,413 Availability Charges 35,605,529 67,000,559 Total Gen. Tax & Availability $76,100,186 $129,541,972 Current EDUs 72,898 72,898 Potable Water Annexation Fee $1,044 $1,777 [1] – District Annexation Fees inked to ENR-CCI for Los Angeles and adjusted quarterly. Last updated July 2014. The resulting proposed annexation fee would be $1,777 for a 3/4” meter size. Table 5-3 shows the water annexation fees for various meter sizes. Determination of the District’s Water and Sewer Annexation Fee 37 Otay Water District – Capacity and Annexation Fee Update Table 5-3 Water Annexation Fee by Meter Type and Size Meter Size Meter Equivalent Water Annexation Fee 3/4” 1.0 $1,777 1” 2.5 4,443 1- 1/2” 5.0 8,885 2” 8.0 14,216 3” 16.0 28,432 4” 25.0 44,426 6” 50.0 88,852 8” 80.0 142,162 10” 115.0 204,359 Similar to the capacity fees and new water supply fees, the annexation fees for larger size meters are assessed based on the size of the meter, using the AWWA safe operating capacities from the AWWA M1 manual. Table 5-4 shows the calculation for the sewer annexation fee. The same methodology is applied to sewer except the 1% general tax is not included for sewer. Table 5-4 Calculation of Sewer Annexation Fee Item Original Value Present Value Availability Charges $2,948,941 $6,861,466 Current EDUs 6,741 6,741 Sewer Annexation Fee $437 $1,018 [1] – District Annexation Fees linked to ENR-CCI for Los Angeles and adjusted quarterly. The resulting proposed sewer annexation fee would be $1,018 per one EDU. EDU's are determined by the District's code, Section 53.09. For example, single-family, multi-family, condos and mobile homes are charged 1.0 EDU per unit. Table 5-5 shows the sewer annexation fees for various EDUs. Determination of the District’s Water and Sewer Annexation Fee 38 Otay Water District – Capacity and Annexation Fee Update Table 5-5 Sewer Annexation Fee by Number of EDUs Number of EDUs Sewer Annexation Fee 0.38 $387 0.60 611 1.00 1,018 1.20 1,222 0.70 713 5.00 5,090 15.00 15,270 25.00 25,450 40.00 40,720 The sewer annexation fee, per District Resolution, applies only to customers who are not currently within an ID area that annex into the District’s service area. Customers within an ID area are assumed to have been paying the availability charges and therefore are considered to be equal to other existing customers in having paid their share of system improvements prior to connecting to the system. 5.4 Key Assumptions In the development of the annexation fees for the District a number of key assumptions were utilized. These are as follows: „ The annexation fees were developed to utilize the same and consistent methodology to both utilities. „ The District’s annexation fees were developed on the basis of 1% General Tax and Availability Charges escalated by the San Diego Consumer Price Index. „ The District water EDUs were based on current number of accounts by meter size calculated into equivalent meters by the AWWA meter equivalency for a single family meter. „ The District sewer EDUs were provided by the District, based on the 2010 EDUs and additional 27 new EDUs since 2009. „ The sewer annexation fees do not include any 1% general tax within the calculation. 5.5 Implementation of the Annexation Fees The methodology used to calculate the annexation fees takes into account the cost of money or inflation. Therefore, HDR would recommend that the District continue the practice of adjusting the annexation fees, each year, by the Consumer Price Index for San Diego. Determination of the District’s Water and Sewer Annexation Fee 39 Otay Water District – Capacity and Annexation Fee Update 5.6 Consultant Recommendations Based on our review and analysis of the District’s annexation fees, HDR makes the following recommendations: „ The District should revise and update their water annexation fees for new connections and annexations to the water system that are no greater than the water annexation fees as set forth in this report. „ The District should establish sewer annexation fee for new connections and annexations to the sewer system that are no greater than the sewer annexation fees as set forth in this report. The sewer annexation fee will be a new fee for the District. „ The District should continue with their resolution provision for periodic (annual or quarterly) adjustments to the annexation fees based on changes in the ENR-CCI. „ The District should update the actual calculations for the annexation fees based on the methodology as approved by the resolution, for annexation fees at least every five years. 5.7 Summary The water and sewer annexation fees developed and presented in this section of the report are based on the District’s customer data and 1% General Tax and availability charges. Adoption of the proposed annexation fees will continue to create equitable and cost-based charges for new customers connecting to the District’s water and sewer systems.     Technical Appendices Otay Water and Sewer Capacity Fees 1  Summary of Revised Results  ‐ 8/5/14  Summary of 8/5/14 Revised Capacity, New Supply and Annexation Fees ($/EDU/3/4-inch meter) Component 2010 Study Fee 2014 Current Fee (1) 2014 Calculated Fee (2) Annexation Fee (3) Water $1,477 $1,622,36 $1,777 Sewer 0 0 1,018 Total Annexation Fee $1,477 $1,622.36 $2,795 Water (4) Buy-In Fee $7,249 $8,467 Expansion Fee $7,803 $7,134 Combined Capacity Fee $7,499 $8,237.03 $7,984 New Supply Fee 864 949.03 989 Total Fee $8,363 $9,186.06 $8,973 Sewer Buy-In Fee for customers not in an ID $6,400 Buy-In Fee for customers in an ID area (5) 4,092 Expansion Fee $0 Combined Capacity Fee $5,804 $5,985.73 $6,400 Combined Capacity Fee (5) $5,804 $5,985.73 $4,092 (1) Fees updated 6/2014 effective 7/1/2014. (2) Calculated based on 6/30/2013 data and 6/30/2013 ENR-CCI for LA. Fee then adjusted to 6/2014 ENR- CCI for LA. (3) Fee adjusted annually by San Diego CPI. (4) Fee adjusted by ENR-CCI for LA. (5) Customers within an ID area should pay for the portions of the system that were not paid for through debt, but were rate funded.                         Water Technical Appendix Otay Water District - Water Page 1 of 2 Exhibit W-1 Development of Capacity Fee - Buy-In Plant Description Original Cost (1) Accumulated Depreciation Original Cost Less Depr. Reproduction Cost (2) Reproduction Cost Less Depr. Pipe Replacement Cost Pipe Replacement Cost Less Depr. OC OCLD RC RCLND RC-Pipe (3) RCLND-Pipe Water Land $12,572,073 $0 $12,572,073 $41,598,728 $41,598,728 $0 $0 $41,598,728 Buildings 18,099,224 8,085,813 10,013,411 28,163,194 14,983,209 0 0 14,983,209 Field Equipment 3,041,431 2,993,891 47,540 4,745,616 89,516 0 0 89,516 Chlorination 703,384 459,632 243,753 1,206,788 365,943 0 0 365,943 Contributed 0 0 0 0 0 0 0 0 Finance (Capitalized Interest)10,593,028 3,078,729 7,514,300 18,392,716 10,620,495 0 0 10,620,495 Maps And Plans 297,875 134,023 163,851 469,644 258,449 0 0 258,449 Main Water System 115,650,206 30,154,998 85,495,208 216,632,115 109,737,686 1,141,184,018 259,757,728 259,757,728 Pump Stations 24,728,324 5,832,833 18,895,491 32,608,021 24,004,786 0 0 24,004,786 Pumps 5,655,878 2,543,094 3,112,784 11,575,265 5,094,109 0 0 5,094,109 Power 440,470 337,324 103,146 601,323 106,243 0 0 106,243 Repairs 18,120,697 5,434,850 12,685,847 21,593,830 13,897,391 0 0 13,897,391 Reservoirs 109,651,677 32,331,864 77,319,813 151,949,303 99,344,198 0 0 99,344,198 Security 133,075 126,174 6,902 242,186 13,942 0 0 13,942 Water System Yearly 14,130,155 9,776,852 4,353,302 37,604,412 10,111,731 0 0 10,111,731 Total Water $333,817,498 $101,290,076 $232,527,421 $567,383,142 $330,226,426 $1,141,184,018 $259,757,728 $480,246,469 Capacity Fee= RCLND + RCLND- Pipe Reference Water 1 of 14 Otay Water District ‐ Water Page 2 of 2 Exhibit W‐1 Development of Capacity Fee ‐ Buy‐In Plant Description Original Cost (1) Accumulated  Depreciation Original Cost  Less Depr.  Reproduction Cost  (2)  Reproduction Cost  Less Depr.  Pipe Replacement  Cost  Pipe Replacement  Cost Less Depr.  OC OCLD RC RCLND RC‐Pipe (3) RCLND‐Pipe   Capacity Fee=  RCLND +     RCLND‐ Pipe    Reference Recycled Water Land $883,418 $0 $883,418 993,363 993,363 0 0 $993,363 Buildings 727,480 103,053 624,427 757,636 651,560 0 0 651,560 Field Equipment 00000000 Chlorination 754,411 93,044 661,367 777,062 681,224 0 0 681,224 Contributed 00000000 Equipment 11,43911,439016,3100000 Jamacha Basin Sewer 6,126,940 960,901 5,166,039 6,686,802 5,293,109 0 0 5,293,109 Maps & Plans 12,601 4,791 7,810 19,877 12,319 0 0 12,319 Main 51,629,411 9,266,266 42,363,146 63,235,595 51,017,085 172,625,600 116,015,111 116,015,111 Pump Stations 8,179,040 900,974 7,278,067 9,179,419 8,168,247 0 0 8,168,247 Pumps 1,388,624 378,470 1,010,153 1,464,519 1,063,829 0 0 1,063,829 Power 34,098 32,338 1,760 50,401 2,599 0 0 2,599 Repair 420,935 11,134 409,801 421,948 410,778 0 0 410,778 Reservoir 18,705,700 3,061,974 15,643,727 22,188,939 18,274,952 0 0 18,274,952 Study 71,82171,821075,3410000 Total Recycled $88,945,919 $14,896,204 $74,049,715 $105,867,211 $86,569,064 $172,625,600 $116,015,111 $151,567,090 Total $422,763,417 $116,186,281 $306,577,136 $673,250,353 $416,795,490 $1,313,809,618 $375,772,840 $631,813,559 Less: Outstanding Debt Principal (4)(110,725,000) See Exhibit W‐3A Plus: Capital Fund Reserves (5)30,735,587 See Exhibit W‐4           Past Interest Payments (6)40,404,404 See Exhibit W‐3B Less:            Excess Storage Capacity ‐ Potable (7)‐           Excess Storage Capacity ‐ Recycled (8)‐           Excess Storage Pump Station ‐ Potable (9)‐           Excess Storage Pump Station ‐ Recycled (10)‐ Total Net Plant $592,228,550 Existing Equivalent Dwelling Units EDU (11)72,898 See Exhibit W‐5 Buy‐In Capacity Fee per EDU (12)$8,124 Plus:  ENR update per Ordinance 534  Current Index 6/2014 10,739.43  Base Index 06/30/13 10,304.68 Total Capacity Fee with ENR Index 1.04 $8,467 (1)  Asset listing as of June 30, 2013.  (2)  Based on specific in service date of asset and June 2013 Engineering News Record, for LA construction cost index. (3)  Based on pipe inventory and $25 per inch diameter. See Exhibit W‐2 (4)  Remaining principal as of June 30, 2013.  See Exhibit W‐3A. (5)  Cash reserves as of December 2013 which are CF eligible.  See Exhibit W‐4. (6)  Past interest payments from 1959 to 2008 which were not previously capitalized; net of depreciation at 50 year average life.  See Exhibit W‐3B. (7)  Potable Reservoir excess capacity 7.75 MGD at $0.95 per gallon equals $7,400,000. (8)  Recycled Reservoir excess capacity 8.49 MGD at $0.84 per gallon equals $7,200,000. (9)  Potable Storage Pump Station estimate to construct four pump stations with a total capacity of 3,600 gpm in today's dollars. (4 X $2,500,000 = $10,000,000) (10)  Recycled Storage Pump Station estimate to construct two pump stations with a total capacity of 11,234 gpm in today's dollars. (11,234 X $1,000 = $11,234,000) (11)  Based on data from the utility billing system as of June 30, 2013.  See Exhibit W‐5. (12)  Based on "buy‐in" methodology established in AWWA M1, Sixth Edition, Table VI.2‐1, page 269. Water 2 of 14 Otay Water District - Water Page 1 of 2 Exhibit W-2 Development of Pipe Replacement Cost Pipe cost based on dollars per inch diameter 2014 = $25 TOTAL DIAMETER MATERIAL LENGTH REPLACEMENT DIAMETER MATERIAL LENGTH REPLACEMENT INCH TYPE FEET COST INCH TYPE FEET COST 4 ACP 24,006 $2,400,600 4 ACP 54 $5,400 4 STL 643 64,300 4 STL 316 31,600 4 PVC 12,177 1,217,700 4 PVC 2,999 299,900 4 CCP 46 4,600 4 DIP 29 2,900 4 RCP 33 3,300 4 CPR 2,715 271,500 6 ACP 228,212 34,231,800 6 ACP 410 61,500 6 STL 2,195 329,250 6 STL 1,163 174,450 6 PVC 9,021 1,353,150 6 PVC 91,288 13,693,200 6 CCP 176 26,400 8 ACP 9,874 1,974,800 8 ACP 822,967 164,593,400 8 STL 259 51,800 8 STL 6,788 1,357,600 8 PVC 124,170 24,834,000 8 DIP 31 6,216 8 DIP 16 3,200 8 PVC 709,345 141,869,000 10 ACP 12,205 3,051,250 10 ACP 384,339 96,084,750 10 PVC 11,229 2,807,250 10 STL 5,375 1,343,750 10 PRM (FRP)5,332 1,333,000 10 DIP 517 129,163 10 STL 22 5,500 10 PVC 82,433 20,608,250 10 CIP 1,999 499,750 12 ACP 11,593 3,477,900 12 STL 9,748 2,924,400 12 ACP 402,530 120,759,000 12 PVC 50,636 15,190,800 12 STL 29,142 8,742,600 12 DIP 195 58,500 12 DIP 6,089 1,826,700 12 PRM (FRP)2,548 764,400 12 PVC 309,300 92,790,000 12 CCP 10,791 3,237,300 14 STL 16,325 5,713,750 12 CIP 6,136 1,840,800 12 RCP 740 222,000 16 ACP 15,799 6,319,600 16 STL 17,917 7,166,800 14 ACP 33,677 11,786,950 16 PVC 67,454 26,981,600 14 STL 7,257 2,539,950 14 CCP 63 22,050 20 ACP 21,548 10,774,000 20 STL 4,922 2,461,000 16 ACP 149,832 59,932,800 20 PVC 28,651 14,325,500 16 STL 36,345 14,538,000 16 DIP 2,820 1,128,168 24 STL 4,726 2,835,600 16 PVC 124,192 49,676,800 24 PVC 1,194 716,400 16 CCP 10,972 4,388,800 16 CIP 14 5,600 30 STL 32,114 24,085,500 16 RCP 1,712 684,800 30 PVC 0 0 18 ACP 14,536 6,541,200 36 PVC 254 228,600 18 STL 1,664 748,800 Total $172,625,600 18 DIP 371 166,991 18 PVC 204 91,800 18 PVC 8,242 3,708,900 18 PVC 5,261 2,367,450 RECYCLED WATER PIPELINESPOTABLE WATER PIPELINES Water 3 of 14 Otay Water District - Water Page 2 of 2 Exhibit W-2 Development of Pipe Replacement Cost Pipe cost based on dollars per inch diameter 2014 = $25 TOTAL DIAMETER MATERIAL LENGTH REPLACEMENT DIAMETER MATERIAL LENGTH REPLACEMENT INCH TYPE FEET COST INCH TYPE FEET COST RECYCLED WATER PIPELINESPOTABLE WATER PIPELINES 20 ACP 55,818 27,909,000 20 STL 18,216 9,108,000 20 PVC 31,480 15,740,000 20 CCP 3,658 1,829,000 20 RCP 1,235 617,500 24 ACP 65,289 39,173,400 24 STL 12,481 7,488,600 24 PVC 30,699 18,419,400 24 CCP 11,949 7,169,400 24 RCP 185 111,000 27 STL 1,183 798,525 30 ACP 1,730 1,297,500 30 STL 88,570 66,427,500 30 PVC 2,420 1,815,000 30 CCP 13,314 9,985,500 30 CIP 1,975 1,481,250 30 RCP 84 63,000 36 ACP 1,433 1,289,700 36 STL 34,737 31,263,300 36 PVC 1,147 1,032,300 36 CCP 29,352 26,416,800 42 STL 15,855 16,647,750 42 PVC 636 667,800 42 CCP 342 359,100 48 STL 66 78,756 60 STL 83 124,500 Total $1,141,184,018 Useful Life Rep. Cost Useful Life Rep. Cost Rep. Cost Contributed Pipelines $695,541,379 Contributed Pipelines $41,401,050 Otay Owned 50 445,518,140 Otay Owned 50 131,221,350 Total $1,141,059,518 Total $172,622,400 $1,313,681,918 Assume for potable 12" inches and smaller was contributed Assume for recycled 8" and smaller was contributed Yearly Depreciation Average Age (1) Accumulated Depreciation Replacement Cost Less Depreciation Yearly Depreciation Average Age (1) Accumulated Depreciation Replacement Cost Less Depreciation Replacement Cost Less Depreciation 8,910,363$ 20.8 185,760,411$ $259,757,728 2,624,427$ 5.8 15,206,239$ $116,015,111 $375,772,840 (1) Average age based on 2010 study information. Water 4 of 14 Otay Water District - Water Exhibit W-3A Development of Water Debt For the Year Ended June 30, 2013 Debt Name 1996 2007 2009 2010 A 2010 B July 5, 2013 TOTAL Principal Interest COP Principal Interest COP Principal Interest G.O.Principal Interest COP Principal Interest BABs Principal Interest Refunding PRINCIPAL I. Debt Status: Original Debt $15,400,000 $42,000,000 $7,780,000 $13,840,000 $36,355,000 $7,735,000 $123,110,000 # of Years/Rate 0.00%0.00%0.00%0.00%0.00%0.00% II. Principal and Interest Payments: 2014 $500,000 $602,900 $1,102,900 $955,000 $1,541,900 $2,496,900 $535,000 $215,088 $750,088 $820,000 $533,538 $1,353,538 $0 $2,371,868 $2,371,868 $660,000 $254,667 $914,667 $3,470,000 2015 500,000 572,700 1,072,700 995,000 1,504,900 2,499,900 550,000 198,663 748,663 845,000 508,563 1,353,563 0 2,371,868 2,371,868 605,000 237,275 842,275 3,495,000 2016 600,000 537,500 1,137,500 1,035,000 1,466,300 2,501,300 570,000 181,663 751,663 870,000 478,488 1,348,488 0 2,371,868 2,371,868 615,000 213,033 828,033 3,690,000 2017 600,000 501,200 1,101,200 1,075,000 1,425,800 2,500,800 585,000 162,969 747,969 900,000 443,088 1,343,088 0 2,371,868 2,371,868 635,000 186,800 821,800 3,795,000 2018 600,000 465,000 1,065,000 1,115,000 1,383,700 2,498,700 605,000 139,633 744,633 940,000 406,288 1,346,288 0 2,371,868 2,371,868 660,000 159,567 819,567 3,920,000 2019 700,000 465,000 1,165,000 1,155,000 1,339,300 2,494,300 635,000 114,433 749,433 975,000 367,988 1,342,988 0 2,371,868 2,371,868 685,000 131,167 816,167 4,150,000 2020 700,000 423,700 1,123,700 1,200,000 1,292,900 2,492,900 650,000 88,533 738,533 1,015,000 323,113 1,338,113 0 2,371,868 2,371,868 715,000 101,567 816,567 4,280,000 2021 700,000 339,200 1,039,200 1,250,000 1,243,400 2,493,400 680,000 61,533 741,533 1,065,000 271,113 1,336,113 0 2,371,868 2,371,868 745,000 70,767 815,767 4,440,000 2022 800,000 291,900 1,091,900 1,300,000 1,191,700 2,491,700 705,000 33,500 738,500 1,120,000 216,488 1,336,488 0 2,371,868 2,371,868 775,000 38,767 813,767 4,700,000 2023 800,000 243,600 1,043,600 1,355,000 1,136,800 2,491,800 720,000 4,800 724,800 1,175,000 159,113 1,334,113 0 2,371,868 2,371,868 805,000 5,567 810,567 4,855,000 2024 900,000 190,200 1,090,200 1,410,000 1,079,300 2,489,300 0 0 0 1,235,000 98,863 1,333,863 0 2,371,868 2,371,868 835,000 0 835,000 4,380,000 2025 900,000 135,900 1,035,900 1,470,000 1,019,200 2,489,200 0 0 0 1,295,000 33,994 1,328,994 0 2,371,868 2,371,868 0 0 0 3,665,000 2026 1,000,000 76,500 1,076,500 1,530,000 955,500 2,485,500 0 0 0 0 0 0 1,365,000 2,328,345 3,693,345 0 0 0 3,895,000 2027 1,100,000 11,100 1,111,100 1,595,000 955,500 2,550,500 0 0 0 0 0 0 1,450,000 2,238,589 3,688,589 0 0 0 4,145,000 2028 0 0 0 1,665,000 818,000 2,483,000 0 0 0 0 0 0 1,545,000 2,143,093 3,688,093 0 0 0 3,210,000 2029 0 0 0 1,735,000 744,800 2,479,800 0 0 0 0 0 0 1,640,000 2,041,540 3,681,540 0 0 0 3,375,000 2030 0 0 0 1,810,000 668,400 2,478,400 0 0 0 0 0 0 1,745,000 1,933,609 3,678,609 0 0 0 3,555,000 2031 0 0 0 1,890,000 588,600 2,478,600 0 0 0 0 0 0 1,855,000 1,818,823 3,673,823 0 0 0 3,745,000 2032 0 0 0 1,970,000 505,500 2,475,500 0 0 0 0 0 0 1,975,000 1,694,728 3,669,728 0 0 0 3,945,000 2033 0 0 0 2,055,000 416,600 2,471,600 0 0 0 0 0 0 2,105,000 1,560,558 3,665,558 0 0 0 4,160,000 2034 0 0 0 2,150,000 323,200 2,473,200 0 0 0 0 0 0 2,245,000 1,417,508 3,662,508 0 0 0 4,395,000 2035 0 0 0 2,245,000 225,700 2,470,700 0 0 0 0 0 0 2,390,000 1,265,086 3,655,086 0 0 0 4,635,000 2036 0 0 0 2,340,000 124,000 2,464,000 0 0 0 0 0 0 2,550,000 1,102,634 3,652,634 0 0 0 4,890,000 2037 0 0 0 2,445,000 17,800 2,462,800 0 0 0 0 0 0 2,715,000 929,495 3,644,495 0 0 0 5,160,0002038000000000000 2,895,000 745,010 3,640,010 0 0 0 2,895,000 2039 0 0 0 0 0 0 0 0 0 0 0 0 3,085,000 548,357 3,633,357 0 0 0 3,085,000 2040 0 0 0 0 0 0 0 0 0 0 0 0 3,290,000 338,716 3,628,716 0 0 0 3,290,000 2041 0 0 0 0 0 0 0 0 0 0 0 0 3,505,000 115,262 3,620,262 0 0 0 3,505,000 TOTAL $10,400,000 $4,856,400 $15,256,400 $37,745,000 $21,968,800 $59,713,800 $6,235,000 $1,200,815 $7,435,815 $12,255,000 $3,840,631 $16,095,631 $36,355,000 $50,683,773 $87,038,773 $7,735,000 $1,399,175 $9,134,175 $110,725,000 Water 5 of 14 Otay Water District - Water Exhibit W-3B Development of Past Interest Payments Year Total Sewer Water CPI Escalation Factor 2008 Present Day Dollars Sewer Present Day Dollars Water CPI Escalation Factor 2013 Present Day Dollars Sewer Present Day Dollars Water Average Age YTD Remaining Depreciated Sewer Depreciated Water Present Dollars Less Depr. Sewer Present Dollars Less Depr. Water 2008 2,601,252 47,277 2,553,975 1.09 51,683 2,791,997 1.07 $50,788 $2,743,663 50 6 44 $6,095 $329,240 $44,694 $2,414,424 2007 950,479 58,066 892,413 1.03 59,948 921,344 1.12 64,783 995,641 50 7 43 9,070 139,390 55,713 856,252 2006 959,225 68,491 890,734 1.06 72,330 940,660 1.14 78,163 1,016,515 50 8 42 12,506 162,642 65,657 853,872 2005 1,327,844 78,562 1,249,282 1.09 85,786 1,364,158 1.18 92,704 1,474,164 50 9 41 16,687 265,350 76,017 1,208,814 2004 1,252,307 88,293 1,164,014 1.13 99,946 1,317,638 1.22 108,006 1,423,893 50 10 40 21,601 284,779 86,405 1,139,114 2003 947,099 97,695 849,404 1.17 114,629 996,632 1.27 123,873 1,077,001 50 11 39 27,252 236,940 96,621 840,061 2002 1,503,063 106,779 1,396,284 1.22 129,973 1,699,564 1.32 140,454 1,836,617 50 12 38 33,709 440,788 106,745 1,395,829 2001 1,543,336 115,556 1,427,780 1.26 145,585 1,798,801 1.36 157,325 1,943,856 50 13 37 40,904 505,403 116,420 1,438,454 2000 1,540,592 124,036 1,416,556 1.32 163,449 1,866,668 1.42 176,630 2,017,197 50 14 36 49,456 564,815 127,173 1,452,382 1999 1,809,747 176,967 1,632,780 1.39 246,694 2,276,112 1.51 266,587 2,459,658 50 15 35 79,976 737,898 186,611 1,721,761 1998 1,952,742 227,266 1,725,476 1.44 328,010 2,490,361 1.56 354,461 2,691,184 50 16 34 113,428 861,179 241,034 1,830,005 1997 2,080,744 274,606 1,806,138 1.47 404,084 2,657,737 1.59 436,669 2,872,057 50 17 33 148,467 976,499 288,202 1,895,558 1996 1,421,139 319,333 1,101,806 1.50 478,077 1,649,525 1.62 516,629 1,782,543 50 18 32 185,986 641,715 330,642 1,140,827 1995 936,716 362,687 574,029 1.54 557,180 881,856 1.66 602,111 952,969 50 19 31 228,802 362,128 373,309 590,841 1994 1,329,706 394,491 935,215 1.56 615,062 1,458,118 1.68 664,660 1,575,701 50 20 30 265,864 630,280 398,796 945,420 1993 749,618 419,512 330,106 1.60 671,011 528,005 1.73 725,121 570,583 50 21 29 304,551 239,645 420,570 330,938 1992 689,412 296,895 392,517 1.63 485,193 641,462 1.77 524,319 693,190 50 22 28 230,700 305,004 293,619 388,186 1991 1,172,353 336,012 836,341 1.68 564,437 1,404,895 1.82 609,953 1,518,186 50 23 27 280,578 698,366 329,375 819,821 1990 1,454,800 372,559 1,082,241 1.74 648,438 1,883,639 1.88 700,728 2,035,536 50 24 26 336,349 977,057 364,379 1,058,479 1989 1,314,494 408,975 905,519 1.84 754,333 1,670,183 1.99 815,163 1,804,867 50 25 25 407,581 902,434 407,581 902,434 1988 1,841,881 444,586 1,397,295 1.95 867,861 2,727,613 2.11 937,845 2,947,568 50 26 24 487,680 1,532,735 450,166 1,414,833 1987 1,339,462 477,707 861,755 2.05 979,340 1,766,671 2.22 1,058,315 1,909,135 50 27 23 571,490 1,030,933 486,825 878,202 1986 1,428,383 509,385 918,998 2.12 1,081,084 1,950,422 2.29 1,168,263 2,107,705 50 28 22 654,227 1,180,315 514,036 927,390 1985 1,508,454 538,914 969,540 2.18 1,175,872 2,115,468 2.36 1,270,694 2,286,060 50 29 21 737,003 1,325,915 533,692 960,145 1984 1,585,069 566,769 1,018,300 2.30 1,302,731 2,340,584 2.48 1,407,783 2,529,329 50 30 20 844,670 1,517,597 563,113 1,011,731 1983 1,614,923 593,048 1,021,875 2.43 1,442,993 2,486,408 2.63 1,559,356 2,686,913 50 31 19 966,801 1,665,886 592,555 1,021,027 1982 1,496,029 601,840 894,189 2.50 1,507,009 2,239,051 2.71 1,628,535 2,419,608 50 32 18 1,042,262 1,548,549 586,272 871,059 1981 1,546,319 118,910 1,427,409 2.67 317,909 3,816,220 2.89 343,546 4,123,960 50 33 17 226,740 2,721,814 116,806 1,402,147 1980 1,689,015 126,371 1,562,644 3.03 383,386 4,740,775 3.28 414,303 5,123,071 50 34 16 281,726 3,483,688 132,577 1,639,383 1979 1,727,910 146,451 1,581,459 3.50 512,015 5,529,024 3.78 553,304 5,974,885 50 35 15 387,313 4,182,420 165,991 1,792,466 1978 846,568 139,706 706,862 4.07 568,464 2,876,224 4.40 614,305 3,108,163 50 36 14 442,300 2,237,877 172,005 870,286 1977 699,346 146,858 552,488 4.48 657,544 2,473,719 4.84 710,569 2,673,200 50 37 13 525,821 1,978,168 184,748 695,032 1976 500,880 152,370 348,510 4.77 726,805 1,662,393 5.15 785,415 1,796,448 50 38 12 596,915 1,365,301 188,499 431,148 1975 505,080 158,245 346,835 5.06 800,816 1,755,196 5.47 865,394 1,896,736 50 39 11 675,007 1,479,454 190,387 417,282 1974 545,897 163,251 382,646 5.54 904,016 2,118,935 5.98 976,917 2,289,806 50 40 10 781,533 1,831,845 195,383 457,961 1973 545,960 166,687 379,273 6.15 1,024,296 2,330,642 6.64 1,106,895 2,518,586 50 41 9 907,654 2,065,240 199,241 453,345 1972 559,456 195,260 364,196 6.55 1,278,131 2,383,950 7.07 1,381,199 2,576,192 50 42 8 1,160,207 2,164,001 220,992 412,191 1971 507,776 19,884 487,892 6.80 135,304 3,319,940 7.35 146,215 3,587,660 50 43 7 125,745 3,085,388 20,470 502,272 1970 399,854 11,322 388,532 7.06 79,979 2,744,620 7.63 86,429 2,965,946 50 44 6 76,058 2,610,033 10,371 355,914 1969 286,268 286,268 7.43 - 2,128,323 8.03 - 2,299,951 50 45 5 0 2,069,956 0 229,995 1968 269,080 269,080 7.82 - 2,104,459 8.45 - 2,274,163 50 46 4 0 2,092,230 0 181,933 1967 237,827 237,827 8.14 - 1,935,438 8.79 - 2,091,512 50 47 3 0 1,966,021 0 125,491 1966 243,112 243,112 8.39 - 2,040,489 9.07 - 2,205,034 50 48 2 0 2,116,833 0 88,201 1965 224,790 224,790 8.54 - 1,920,159 9.23 - 2,075,001 50 49 1 0 2,033,501 0 41,500 1964 199,375 199,375 7.77 - 1,549,240 8.40 - 1,674,171 50 50 0 0 1,674,171 0 0 1963 127,415 127,415 7.87 - 1,003,018 8.51 - 1,083,902 50 51 0 0 1,083,902 0 0 1962 75,500 75,500 7.98 - 602,213 8.62 - 650,775 50 52 0 0 650,775 0 0 1961 75,500 75,500 8.06 - 608,255 8.71 - 657,305 50 53 0 0 657,305 0 0 1960 72,250 72,250 8.14 - 587,971 8.79 - 635,385 50 54 0 0 635,385 0 0 1959 75,500 75,500 8.95 - 675,375 8.95 - 675,375 50 55 0 0 675,375 0 0 $50,311,547 $9,651,623 $40,659,924 $22,421,405 $97,772,150 $24,224,408 $105,328,567 $14,290,716 $64,924,162 $9,933,692 $40,404,404 1. 1959-1962 only id 2 & 3, 1963-1966 - 2,3,5,6,7,9,10, this is the interest which is not already capitalized (previously). Water 6 of 14 Otay Water District - Water Exhibit W-4 Summary of Reserve Funds For the Year Ended June 30, 2013 Account #OPEB New Water Supply Expansion Replacement Betterment Debt Fund Debt Reserve Capital Improvement General Total % CF Eligible (1) Capacity Fee RESTRICTED RESERVES 312201/312241(ID 1)($5,850,335)$9,402,124 $3,551,789 0%$0 312202/312242 (ID 2)(1,683,179)314,727 (1,368,452)0%0 312203/312243 (ID 3)(6,308,107)1,521,924 (4,786,184)0%0 312213/312244 (ID 5)(222,001)114,381 (107,621)0%0 312204/312245 (ID 7)(804,842)780,367 (24,476)0%0 312205/312246 (ID 9)(6,117,475)1,411,602 (4,705,872)0%0 312206/312247 (ID 10)(1,025,174)871,591 (153,583)0%0 312207/312248 (ID 18)0 0 0 0%0 312214/312249 (ID 19)9,404 14,350 23,754 0%0 312208/312251 (ID 20)(12,444,252)3,485,711 (8,958,541)0%0 312209/312252 (ID 22)(7,154,838)4,680,147 (2,474,691)0%0 312210/312253 (ID 25)(17,833)0 (17,833)0%0 312211/312254 (ID 85)(18,741,290)38,724 (18,702,566)0%0 312212/312255 (ID 90)(389,393)237,609 (151,784)0%0 312101 Capacity Fees 5,324,932 5,324,932 100%5,324,932 312102 Capital Improvement Fund 5,081,116 5,081,116 100%5,081,116 312103 New Supply Fund (389,977)(389,977)100%(389,977) 312104 Annex/Developer Fee 0 0 0%0 312111 New Supply Debt Fund 741,513 741,513 100%741,513 312112 Expansion Debt Fund 30,701,201 30,701,201 100%30,701,201 312113 Replacement Debt Fund 6,639,144 6,639,144 0%0 312121 New Supply CIF 0 0 100%0 312122 Expansion CIF 0 0 100%0 312123 Replacement CIF 0 0 0%0 312261 Betterment CIF 0 0 0%0 312413 State Loan Reserve 0 0 0%0 312414 GO Bonds Reserve 917,708 917,708 0%0 312416 Grants - CIP 0 0 0%0 312419 2010 COPs Taxable BABs 13,155,639 13,155,639 0%0 312421 2010 COPs TE - Reserve 1,030,688 1,030,688 0%0 312422 2010 COPs BABs - Reserve 2,707,418 2,707,418 0%0 TOTAL RESTRICTED $0 $351,536 $36,026,133 $11,720,260 ($60,749,316)$22,873,257 $17,811,452 $0 $0 $28,033,323 $41,458,785 DESIGNATED RESERVES 312229 Designated Betterment $41,131,682 $41,131,682 0%0 321203 New Supply Fee Reserve 23,604 23,604 100%23,604 312412 Expansion Reserve (22,544,902)(22,544,902)100%(22,544,902) 321201 Replacement Reserve 15,739,451 15,739,451 0%0 321202 Retiree Health Ins - OPEB (a)0 0 0%0 321202 Retiree Health Ins Reserve (b)149,705 149,705 0%0 TOTAL DESIGNATED $149,705 $23,604 ($22,544,902)$15,739,451 $41,131,682 $0 $0 $0 $0 $34,499,540 ($22,521,297) TOAL RESTRICTED & DESIGNATED $149,705 $375,140 $13,481,232 $27,459,711 ($19,617,634)$22,873,257 $17,811,452 $0 $0 $62,532,863 $18,937,488 GENERAL FUND (UNRESTRICTED) Annexation (Potable)$11,798,099 $11,798,099 100%$11,798,099 Annexation (Sewer)0 0%0 Operating 3,480,529 3,480,529 0%0 11-215101 Developer Deposit 375,057 375,057 0%0 77-215101|215111 Dev/Cell Site Dep 828,445 828,445 0%0 312415 Lakeview Replacement 231,210 231,210 0%0 312424 Highlands Golf Course, LLC 43,320 43,320 0%0 TOTAL GENERAL FUND $0 $0 $0 $0 $0 $0 $0 $0 $16,756,661 $16,756,661 $11,798,099 TOTALS BY FUND CATEGORY $149,705 $375,140 $13,481,232 $27,459,711 ($19,617,634)$22,873,257 $17,811,452 $0 $16,756,661 $79,289,524 $30,735,587 Notes: (1) Balance available unrestricted for expansion and new supply. Betterment Water 7 of 14 Otay Water District - Water Exhibit W-5 Development of Equivalent Dwelling Units For the Year Ended June 30, 2013 Number of Meters (1) Class of Service Billed Usage 5/8"3/4"1"1 1/2"2"3"4"6"8"10"12" Number of Meters Residential 0 1 43,186 1,463 14 4 0 0 0 0 0 0 44,668 Master Metered 0 0 41 186 245 224 34 61 6 3 0 0 800 Commercial & Public 0 679 336 389 291 404 32 28 8 0 5 0 2,172 Ag, Lds & Construction 0 0 103 262 383 466 5 6 2 0 0 0 1,227 Recycled 0 0 1 102 393 194 4 7 2 0 1 0 704 Temporary 0 0 7 9 6 2 0 67 0 0 0 0 91 Total Billed 0 680 43,674 2,411 1,332 1,294 75 169 18 3 6 0 49,662 Less: Temporary 0 7 9 6 2 0 67 0 0 0 0 91 Total Existing Permanent 680 43,667 2,402 1,326 1,292 75 102 18 3 6 0 49,571 Class of Service 5/8"3/4"1"1 1/2"2"3"4"6"8"10"12" AWWA Weighting - 5/8" Meter 1.00 1.00 2.50 5.00 8.00 16.00 25.00 50.00 80.00 115.00 168.75 Total Residential 1 43,186 3,658 70 32 0 0 0 0 0 0 46,947 Master Metered 0 41 465 1,225 1,792 544 1,525 300 240 0 0 6,132 Commercial & Public 679 336 973 1,455 3,232 512 700 400 0 575 0 8,862 Ag, Lds & Construction 0 103 655 1,915 3,728 80 150 100 0 0 0 6,731 Recycled 0 1 255 1,965 1,552 64 175 100 0 115 0 4,227 Temporary 0 0 0 0 0 0 0 0 0 0 0 0 Residential Meter Equivalency 680 43,667 6,005 6,630 10,336 1,200 2,550 900 240 690 0 72,898 Projected Ultimate EDUs (2) 114,303 Expansion EDUs (2) 41,405 Notes: (1) Based on data from the utility billing system as of FY 2013. (2) Based on data from the District on Land Use Demand email April 4, 2014. Total Equivalent Meters Water 8 of 14 Otay Water District - Water Page 1 of 4 Exhibit W-6 Development of Capacity Fee - Future Count Project Type CIPNo Project Title Projected Project Cost (000s)Expansion Betterment Replacement New Supply % CF Eligible Capacity Fee 1 C P2083 PS - 870-2 Pump Station Replacement (11,000 GPM)$16,500 0.0% 0.0%100.0%0%$0 2 RF P2267 36-Inch Main Pumpouts and Air/Vacuum Ventilation Installations 435 0.0%100.0%0%0 3 RF P2282 Vehicle Capital Purchases 5,021 0.0% 0.0%100.0%0%0 4 CF P2285 Office Equipment and Furniture Capital Purchases 589 0.0% 0.0%100.0%0%0 5 C P2286 Field Equipment Capital Purchases 1,758 0.0% 0.0%100.0%0%0 6 P P2366 APCD Engine Replacements and Retrofits 3,488 0.0% 0.0%100.0%0%0 7 P P2382 Safety and Security Improvements 1,758 40.0%0.0%60.0%40%703 8 P P2434 Rancho Del Rey Groundwater Well Development 8,700 0.0%60.0%0.0%40.0%0%0 9 M P2440 I-905 Utility Relocations 1,600 0.0% 0.0%100.0%0%0 10 M P2451 Otay Mesa DesalinaƟon Conveyance and DisinfecƟon SystemOtay Mesa DesalinaƟon Conveyance and DisinfecƟon System30,000 0.0%60.0%0.0%40.0%0%0 11 CF P2453 SR-11 Utility Relocations 2,250 0.0% 0.0%100.0%0%0 12 C P2466 Regional Training Facility 300 40.0% 60.0%0.0%40%120 13 M P2469 Information Technology Network and Hardware 2,509 40.0%0.0%60.0%40%1,004 14 C P2470 Financial System Enhancements 2,322 40.0%0.0%60.0%40%929 15 M P2477 Res - 624-1 Reservoir Cover Replacement 450 0.0% 0.0%100.0%0%0 16 C P2485 SCADA Communication System and Software Replacement 1,974 0.0% 0.0%100.0%0%0 17 P P2486 Asset Management Plan Condition Assessment and Data Acquisition 1,090 0.0% 0.0%100.0%0%0 18 P P2493 624-2 Reservoir Interior Coating and Upgrades 1,950 0.0% 0.0%100.0%0%0 19 M P2494 Multiple Species Conservation Plan 900 100.0%0.0% 0.0%100%900 20 M P2495 San Miguel Habitat Management/Mitigation Area 2,100 100.0%0.0% 0.0%100%2,100 21 C P2504 Regulatory Site Access Road and Pipeline Relocation 900 0.0%50.0% 50.0%0%0 22 M P2507 East Palomar Street Utility Relocation 940 0.0% 0.0%100.0%0%0 23 M P2508 Pipeline Cathodic Protection Replacement Program 300 0.0% 0.0%100.0%0%0 24 M P2511 North District - South District Interconnection System 37,300 40.0% 60.0%0.0%40%14,920 25 M P2515 870-1 Reservoir Paving 550 0.0% 0.0%100.0%0%0 26 M P2518 803-3 Reservoir Interior/Exterior Coating 450 0.0% 0.0%100.0%0%0 27 M P2519 832-2 Reservoir Interior/Exterior Coating 450 0.0% 0.0%100.0%0%0 28 M P2520 Motorola Mobile Radio Upgrade 100 0.0% 0.0%100.0%0%0 29 C P2529 711-2 Reservoir Interior & Exterior Coating 760 0.0% 0.0%100.0%0%0 30 M P2530 711-1 Reservoir Interior & Exterior Coating 940 0.0% 0.0%100.0%0%0 31 C P2531 944-1 Reservoir Interior & Exterior Coating 240 0.0% 0.0%100.0%0%0 32 M P2532 944-2 Reservoir Interior & Exterior Coating 950 0.0% 0.0%100.0%0%0 33 M P2533 1200-1 Reservoir Interior & Exterior Coating 365 0.0% 0.0%100.0%0%0 34 M P2534 978-1 Reservoir Interior & Exterior Coating 270 0.0% 0.0%100.0%0%0 35 M P2535 458-2 Reservoir Interior Coating 640 0.0% 0.0%100.0%0%0 36 M P2537 Operations Yard Property Acquisition Improvements 350 100.0%0.0% 0.0%100%350 37 CF P2538 Administration and Operations Building Fire Sprinkler Replacement Program 110 0.0% 0.0%100.0%0%0 38 MF P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations 375 0.0% 0.0%100.0%0%0 39 MF P2540 Work Management System Replacement 700 40.0%0.0%60.0%40%280 40 M P2541 624 Pressure Zone PRSs 600 0.0%100.0%0.0%0%0 41 M P2542 850-3 Reservoir Interior Coating 480 0.0% 0.0%100.0%0%0 42 MF P2543 850-1 Reservoir Interior/Exterior Coating 460 0.0% 0.0%100.0%0%0 43 MF P2544 850-2 Reservoir Interior/Exterior Reservoir Coating 940 0.0% 0.0%100.0%0%0 44 M P2545 980-1 Reservoir Interior Exterior Coating 1,250 0.0% 0.0%100.0%0%0 45 C P2546 980-2 Reservoir Interior/Exterior Coating 1,250 0.0% 0.0%100.0%0%0 46 M P2547 Main Breaker Instllation at the District Administration Building 105 40.0% 60.0%0.0%40%42 47 C P2548 Sump Pump Installation at the 980-1 & 2 Reservoirs 35 0.0% 0.0%100.0%0%0 48 P P2549 Fuel System upgrade 30 0.0% 0.0%100.0%0%0Water 9 of 14 Otay Water District ‐ Water Page 2 of 4 Exhibit W‐6 Development of Capacity Fee ‐ Future Count Project Type CIPNo Project Title Projected  Project Cost  (000s) Expansion Betterment  Replacement  New Supply   % CF  Eligible  Capacity Fee     49 C P2550 Fuel Island upgrade 75 0.0% 0.0% 100.0%0% 0 50 C P2551 Blossom Lane Helix WD and Otay WD Interconnection 400 0.0% 100.0% 0.0%0% 0 51 CF P2552 South Barcelona Helix WD and Otay WD Interconnection 1,200 0.0% 100.0% 0.0%0% 0 52 CF P2553 Heritage Road Bridge Replacement and Utility Relocation 600 40.0% 0.0% 60.0%40%240 53 CF R2028 RecPL ‐ 8‐Inch, 680 Zone, Heritage Road ‐ Santa Victoria/Otay Valley 600 100.0% 0.0% 0.0%100%600 54 CF R2042 RecPL ‐ 8‐Inch, 927 Zone, Rock Mountain Road ‐ SR‐125/EastLake 140 100.0% 0.0% 0.0%100%140 55 CF R2047 RecPL ‐ 12‐Inch, 680 Zone, La Media Road ‐ Birch/Rock Mountain 450 100.0% 0.0% 0.0%100%450 56 C R2048 RecPL ‐ Otay Mesa Distribution Pipelines and Conversions 2,150 100.0%0.0% 0.0%100%2,150 57 C R2058 RecPL ‐ 16‐Inch, 860 Zone, Airway Road ‐ Otay Mesa/Alta 3,500 100.0% 0.0% 0.0%100%3,500 58 C R2077 RecPL ‐ 24‐Inch, 860 Zone, Alta Road ‐ Alta Gate/Airway 4,500 100.0% 0.0% 0.0%100%4,500 59 R R2082 RecPL ‐ 24‐Inch, 680 Zone, Olympic Parkway ‐ Village 2/Heritage 1,747 100.0% 0.0% 0.0%100%1,747 60 R R2083 RecPL ‐ 20‐Inch, 680 Zone, Heritage Road ‐ Village 2/Olympic 400 100.0% 0.0% 0.0%100%400 61 R R2084 RecPL ‐ 20‐Inch, 680 Zone, Village 2 ‐ Heritage/La Media 970 100.0% 0.0% 0.0%100%970 62 R R2085 RecPL ‐ 20‐Inch, 680 Zone, La Media ‐ State/Olympic 600 100.0% 0.0% 0.0%100%600 63 C R2087 RecPL ‐ 24‐Inch, 927 Zone, Wueste Road ‐ Olympic/Otay WTP 7,000 100.0% 0.0% 0.0%100%7,000 64 C R2107 RWCWRF Screening Compactor and Chlorine Injectors Enclosure 215 0.0% 0.0% 100.0%0%0 65 R R2109 Sweetwater River Wooden Trestle Improvement for the Recycled Water Forcemain 600 0.0% 0.0% 100.0%0%0 66 C R2110 RecPS ‐ 944‐1 Optimization and  Pressure Zone modifications 200 100.0% 0.0% 0.0%100%200 67 C R2111 RWCWRF ‐ RAS Pump Replacement 620 0.0%0.0%100.0%0%0 68 M R2112 450‐1 Disinfection Facility Rehabilitation 190 0.0% 0.0% 100.0%0%0 69 C R2113 Chlorine 1‐ton Cyliner Emergency Close Valve 37 0.0% 100.0% 0.0%0%0 70 M R2114 Large Recycle Pump Replacement 100 0.0% 0.0% 100.0%0%0 1 P2002 PS ‐ Proctor Valley PS (10,000 GPM)11,050 40% 60%0%40%4,420 2 P2017 PL ‐ EastLake Oversizing Reimbursement Agreement 630 40% 60%0%40%252 3 P2033 PL ‐ 16‐Inch, 1296 Zone, Melody Road ‐ Campo/Presilla 1,826 100.0% 0.0% 0.0%100%1,826 4 P2037 Res ‐ 980‐3 Reservoir 13 MG 15,200 100.0% 0.0% 0.0%100%15,200 5 P2040 Res ‐ 1655‐1 Reservoir 0.5 MG 2,055 0.0%50.0%50.0%0%0 6 P2053 PL ‐ 20‐Inch, 944 Zone, Campo Road ‐ 944‐1 Pump Station/944 Reservoirs 725 100.0% 0.0% 0.0%100%725 7 P2056 PL ‐ 16‐Inch, 1296 Zone, Jamul Drive Parallel 1,325 0.0% 100.0% 0.0%0%0 8 P2058 PL ‐ 24‐Inch, 1296 Zone, Proctor Valley Road ‐ Pioneer/Campo 1,200 66.0% 34.0% 0.0%66%792 9 P2066 PL ‐ 30‐Inch, 870 Zone, Otay Mesa R/W ‐ Alta/State Prison 608 50.0% 25.0% 25.0%50%304 10 P2067 PL ‐ 24‐Inch, 870 Zone, Otay Mesa R/W ‐ State Prison/Otay Mesa 810 20.0% 40.0% 40.0%20%162 11 P2104 PL ‐ 12‐Inch, 711 Zone, La Media Road ‐ Birch/Rock Mountain 833 100.0% 0.0% 0.0%100%833 12 P2106 PL ‐ 12‐Inch, 711 Zone, La Media Road ‐ Rock Mountain/Otay Valley 210 100.0% 0.0% 0.0%100%210 13 P2107 PL ‐ 12‐Inch, 711 Zone, Rock Mountain Road ‐ La Media/SR 125 722 100.0% 0.0% 0.0%100%722 14 P2116 PL ‐ 12‐Inch, 711 Zone, Rock Mountain Road ‐ SR 125/EastLake 270 100.0% 0.0% 0.0%100%270 15 P2122 PL ‐ 20‐Inch, 711 Zone, OTC to Hunte Parkway 225 100.0% 0.0% 0.0%100%225 16 P2135 PL ‐ 24‐Inch, 980 Zone, Otay Lakes Road ‐ Wueste/Loop 390 100.0% 0.0% 0.0%100%390 17 P2137 PL ‐ 20‐Inch, 980 Zone, Otay Lakes Road ‐ Loop/P2138 190 100.0% 0.0% 0.0%100%190 18 P2138 PL ‐ 20‐Inch, 980 Zone, Otay Lakes Road to 980‐4 Reservoir 390 100.0% 0.0% 0.0%100%390 19 P2139 PL ‐ 20‐Inch, 980 Zone, Otay Lakes Road ‐ P2138/Loop 535 100.0% 0.0% 0.0%100%535 20 P2142 Res ‐ 1296‐4 Reservoir 10 MG 11,700 100.0% 0.0% 0.0%100%11,700 21 P2146 PL ‐ 20‐Inch, 980 Zone, Otay Lakes Road ‐ P2139/End 535 100.0% 0.0% 0.0%100%535 22 P2148 PL ‐ 16‐Inch, 850 Zone, Jamacha Boulevard ‐ Sweetwater Springs/Trace 550 0.0% 100.0% 0.0%0%0 23 P2150 PL ‐ 16‐Inch, 458 Zone, East Palomar Street ‐ Medical Center/Raven 384 0.0% 100.0% 0.0%0%0 24 P2156 PL ‐ 12‐Inch, 1296 Zone, Olive Vista Drive Parallel 225 0.0% 100.0% 0.0%0%0 25 P2171 PL ‐ 30‐Inch, 1296 Zone, Proctor Valley Road ‐ Pioneer/Melody 563 66.0% 34.0% 0.0%66%372 26 P2174 PS ‐ 1090‐1 Pump Station Replacement (280 GPM)820 0.0% 0.0% 100.0%0%0 27 P2176 Res ‐ 1090‐2 Reservoir 0.5 MG 1,235 50.0% 50.0% 0.0%50%618 28 P2177 PL ‐ 30‐Inch, 1296 Zone, Melody Road to 1296‐4 Reservoir 945 66.0% 34.0% 0.0%66%624 29 P2181 PL ‐ 30‐Inch, 1296 Zone, Proctor Valley Road ‐ Proctor Valley PS/Millar Ranch 5,900 40.0% 60.0% 0.0%40%2,360 30 P2188 PL ‐ 24‐Inch, 832 Zone, Campo Road ‐ Steele Canyon/944‐1 Pump Station 1,485 100.0% 0.0% 0.0%100%1,485 31 P2190 PL ‐ 10‐Inch, 1485 Zone, Jamul Highlands Road to Presilla Drive 228 0.0% 100.0% 0.0%0%0 32 P2195 PL ‐ 30‐Inch, 640 Zone, Campo Road ‐ Regulatory Site/Millar Ranch 2,592 75.0% 0.0% 25.0%75%1,944 33 P2196 PL ‐ 30‐Inch, 640 Zone, Millar Ranch Road to 832‐1 Pump Station 495 75.0% 0.0% 25.0%75%371 34 P2197 PL ‐ 24‐Inch, 832 Zone, 832‐1 Pump Station to 832 Reservoirs 270 100.0% 0.0% 0.0%100%270Water 10 of 14 Otay Water District - Water Page 3 of 4 Exhibit W-6 Development of Capacity Fee - Future Count Project Type CIPNo Project Title Projected Project Cost (000s)Expansion Betterment Replacement New Supply % CF Eligible Capacity Fee 35 P2198 PL - 20-Inch, 832 Zone, 832 Reservoirs to Fair Oaks Drive 810 100.0%0.0% 0.0%100%810 36 P2203 PL - 30-Inch, 1296 Zone, Proctor Valley Road - Millar Ranch/Pioneer 2,700 40.0% 60.0%0.0%40%1,080 37 P2204 PL - 24-Inch, 1296 Zone, Pioneer Way - Proctor Valley/1296 Reservoirs 2,100 40.0% 60.0%0.0%40%840 38 P2228 Res - 870-2 Reservoir 10 MG 11,700 100.0%0.0% 0.0%100%11,700 39 P2233 Res - 640-3 Emergency Reservoir 10 MG 8,000 100.0%0.0% 0.0%100%8,000 40 P2235 Res - 624-4 Emergency Reservoir 40 MG 32,000 100.0%0.0% 0.0%100%32,000 41 P2256 PS - 978-2 Pump Station (1,500 GPM)900 0.0%100.0%0.0%0%0 42 P2258 PS - Lower Otay Pump Station Phase 1 (9,000 GPM)7,805 40.0% 60.0%0.0%40%3,122 43 P2288 Otay WTP Capacity Increase Participation/Purchase (30 MGD)40,000 40.0% 60.0%0.0%40%16,000 44 P2296 Dis - 624-2 Reservoir Disinfection Facility 1,400 40.0% 60.0%0.0%40%560 45 P2298 Dis - 978-1 Pump Station Disinfection Facility 250 0.0%100.0%0.0%0%0 46 P2301 Dis - 1296-1 Pump Station Disinfection Facility 850 40.0% 60.0%0.0%40%340 47 P2303 Dis - 1485 Reservoir(s) Recirculation and Disinfection Facility 450 0.0%100.0%0.0%0%0 48 P2304 Water System Facilities Seismic Upgrades 1,200 40.0% 60.0%0.0%40%480 49 P2306 Engine Power Equipment Repair and Replacement Program 14,000 0.0% 0.0%100.0%0%0 50 P2316 Building Roof Repair and Replacement Program 3,000 0.0% 0.0%100.0%0%0 51 P2318 PL - 20-Inch, 657 Zone, Summit Cross-Tie and 36-Inch Main Connections 600 0.0%100.0%0.0%0%0 52 P2319 Dis - 870-1 Reservoir Phase 2 Chloramination Facility 400 100.0%0.0% 0.0%100%400 53 P2336 Central Area Operations Yard and Facilities 3,500 40.0% 60.0%0.0%40%1,400 54 P2348 Daley Ranch Well Field Development 6,500 40.0% 60.0%0.0%40%2,600 55 P2356 PL - 12-Inch, 803 Zone, Jamul Drive Permastran Pipeline Replacement 765 0.0% 0.0%100.0%0%0 56 P2374 PL - 30-Inch, 870 Zone, 870-2 Reservoir to 870-1 Reservoir 1,061 100.0%0.0% 0.0%100%1,061 57 P2387 PL - 12-Inch, 832 Zone, Steele Canyon Road - Via Caliente/Campo 440 0.0%100.0%0.0%0%0 58 P2388 Flexible Membrane Cover Tension System Repair and Replacement 7,200 0.0% 0.0%100.0%0%0 59 P2390 Siempre Viva Bridge Pipeline Crossings 230 100.0%0.0% 0.0%100%230 60 P2392 PS - Lower Otay Pump Station Expansion Phase 2 (9,000 GPM)450 40.0% 60.0%0.0%40%180 61 P2393 PS - Pointe Hydro Pump Station Expansion (400 GPM)150 0.0%100.0%0.0%0%0 62 P2395 Perdue WTP Capacity Participation/Purchase (5 MGD)15,000 40.0% 60.0%0.0%40%6,000 63 P2399 PL - 30-Inch, 980 Zone, 980 Reservoirs to Hunte Parkway 5,480 100.0%0.0% 0.0%100%5,480 64 P2401 PL - 12-Inch, 624 Zone, Otay Valley Road - Heritage/SR 125 1,251 100.0%0.0% 0.0%100%1,251 65 P2402 PL - 12-Inch, 624 Zone, La Media Road - Village 7/Otay Valley 444 100.0%0.0% 0.0%100%444 66 P2403 PL - 12-Inch, 624 Zone, Heritage Road - Olympic/Otay Valley 925 100.0%0.0% 0.0%100%925 67 P2404 PL - 12-Inch, 624 Zone, Rock Mountain Road - Village 4/Otay Valley 252 100.0%0.0% 0.0%100%252 68 P2405 PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road 125 0.0%100.0%0.0%0%0 69 P2406 PL - 711/624 PRS, EastLake Parkway and Rock Mountain Road 125 100.0%0.0% 0.0%100%125 70 P2407 Dictionary Hill Fire Flow Capacity Pipeline Enhancements 1,500 0.0%100.0%0.0%0%0 71 P2411 PL - 1296/944 PRS Upgrade 1296-1 Pump Station Site 350 0.0%100.0%0.0%0%0 72 P2412 PL - 944/832 PRS Upgrade 944-1 Pump Station Site 550 0.0%100.0%0.0%0%0 73 P2413 PL - 920/803 PRS Jamul Drive - Alta Loma Drive 700 0.0%100.0%0.0%0%0 74 P2415 Raw Water Supply Acquisition Feasibility Assessment 500 40.0% 60.0%0.0%40%200 75 P2426 PL - 1296/920 PRS Jamul Drive - Mexican Canyon Road 700 0.0%100.0%0.0%0%0 76 P2427 PL - 20-Inch, Otay Lakes Road 4,800 40.0% 60.0%0.0%40%1,920 77 P2430 PL - 30-Inch, 980 Zone, Proctor Valley Road - PB Bndy/Proctor Valley PS 10,500 40.0% 60.0%0.0%40%4,200 78 P2431 Res - 980-4 Reservoir 5 MG 5,900 100.0%0.0% 0.0%100%5,900 79 P2433 978-1 Pump Station Sonic Meter 80 0.0%100.0%0.0%0%0 80 P2435 PL - 30-Inch, 980 Zone, Proctor Valley Road to Proctor Valley PS 6,134 40.0% 60.0%0.0%40%2,454 81 P2437 Dis - 624-4 Reservoir Disinfection Facility 1,400 100.0%0.0% 0.0%100%1,400 82 P2450 Otay River Groundwater Well Demineralization Project 11,030 0.0%60.0%0.0%0%0 83 P2454 Vaults and Meter, Alta Road and Use Area 465 0.0% 0.0%100.0%0%0 84 P2456 Air and Vacuum Valve Upgrades 2,624 0.0%26.0% 74.0%0%0 85 P2464 San Diego 17 Pump Station and Flow Control Facility 22,000 40.0% 60.0%0.0%40%8,800 86 P2467 San Diego Formation Groundwater Feasibility Study 1,800 0.0%60.0%0.0%0%0 87 P2471 850/657 PRS at La Presa Pump Station 310 0.0%100.0%0.0%0%0 88 P2472 Water Supply Feasibility Studies 175 40.0% 60.0%0.0%40%70 89 P2476 Dis - 1090-1 Pump Station Disinfection System Upgrade 150 0.0%100.0%0.0%0%0 90 P2478 Administration Building Engine/Generator Set 120 0.0% 0.0%100.0%0%0 Water 11 of 14 Otay Water District ‐ Water Page 4 of 4 Exhibit W‐6 Development of Capacity Fee ‐ Future Count Project Type CIPNo Project Title Projected  Project Cost  (000s) Expansion Betterment  Replacement  New Supply   % CF  Eligible  Capacity Fee     91 P2481 Middle Sweetwater River Basin Groundwater Well System 8,800 0.0% 60.0% 0.0%0%0 92 P2482 Otay Mesa Lot 7 Groundwater Well System 4,500 0.0% 60.0% 0.0%0%0 93 P2483 PS ‐ 870‐1Pump Motor and Switch Gear Replacement 130 0.0% 0.0% 100.0%0%0 94 P2496 Otay Lakes Road Utility Relocations 100 0.0% 0.0% 100.0%0%0 95 P2497 Solar Power Feasibility Study 150 100.0% 0.0% 0.0%100%150 96 P2498 Brine Disposal Pipeline Otay River Demineralization Plant to South Bay Outfall 6,147 0.0% 60.0% 0.0%0%0 97 P2499 Otay Mesa Operations Yard and Facilities 3,000 0.0% 0.0% 100.0%0%0 98 P2500 Padre Dam ‐ Otay Interconnection Dehesa Valley 800 0.0% 100.0% 0.0%0%0 99 P2516 PL ‐ 12‐Inch, 640 Zone, Jamacha Road ‐ Darby/Osage 450 0.0% 0.0% 100.0%0%0 100 P2517 Chase Avenue Helix and Otay Interconnection 400 0.0% 100.0% 0.0%0%0 101 P2522 Potable Water Pipeline Replacement Program 1,200 0.0% 0.0% 100.0%0%0 102 P2523 Potable Water Valve Replacement Program 200 0.0% 0.0% 100.0%0%0 103 P2524 Potable Water Pipeline Appurtenances Replacement Program 80 0.0% 0.0% 100.0%0%0 104 P2525 Potable Water Pump Station Rehabilitation Program 800 0.0% 0.0% 100.0%0%0 105 P2526 Potable Water Reservoir Rehabilitation Program 1,000 0.0%0.0% 100.0%0%0 106 P2528 30‐Inch Potable Water Pipeline Manifold at 624 Reservoirs 7,000 40.0% 60.0% 0.0%40%2,800 107 R2023 RecRes ‐ 450‐2 Reservoir 4 MG 4,800 100.0% 0.0% 0.0%100%4,800 108 R2034 RecRes ‐ 860‐1 Reservoir 4 MG 3,800 100.0% 0.0% 0.0%100%3,800 109 R2035 RecPS ‐ 860‐1 Pump Station (3,400 GPM)5,800 100.0% 0.0% 0.0%100%5,800 110 R2037 RecPL ‐ 8‐Inch, 680 Zone, La Media Road ‐ Rock Mountain/Otay Valley 164 100.0% 0.0% 0.0%100%164 111 R2038 RecPL ‐ 8‐Inch, 680 Zone, Rock Mountain Road ‐ La Media/Otay Valley 296 100.0% 0.0% 0.0%100%296 112 R2043 RecPL ‐ 8‐Inch, 927 Zone, Rock Mountain Road ‐ La Media/SR 125 123 100.0% 0.0% 0.0%100%123 113 R2052 RecPL ‐ 30‐Inch, 450 Zone, Tijuana Valley ‐ Otay Mesa Place/450‐2 Reservoir 14,400 100.0% 0.0% 0.0%100%14,400 114 R2053 RWCWRF ‐ R.O. Building Remodel and Office Furniture 590 100.0% 0.0% 0.0%100%590 115 R2055 RWCWRF ‐ Effluent Meter 90 0.0% 100.0% 0.0%0%0 116 R2067 RWCWRF ‐ Waste Backwash Water Pipeline 220 0.0% 100.0% 0.0%0%0 117 R2068 RWCWRF ‐ Load Equalization Tank 1,200 0.0% 100.0% 0.0%0%0 118 R2072 RecPL ‐ 16‐Inch, 860 Zone, Otay Mesa Road ‐ 860‐1 Pump Station/Heritage 2,500 100.0% 0.0% 0.0%100%2,500 119 R2073 RecPL ‐ 24‐Inch, 860 Zone, Alta Road ‐ Airway/Border 4,750 100.0% 0.0% 0.0%100%4,750 120 R2075 Brine Disposal Pipeline Otay Mesa to South Bay Outfall 22,300 100.0% 0.0% 0.0%100%22,300 121 R2078 RecPL ‐ 8‐Inch, 680 Zone, Otay Valley Road ‐ SR 125/Heritage 560 100.0% 0.0% 0.0%100%560 122 R2079 RecPL ‐ 6‐Inch, 450 Zone, Otay Valley Road ‐ Otay Valley/Entertainment 150 100.0% 0.0% 0.0%100%150 123 R2080 RecPL ‐ 24‐Inch, 680 Zone, Olympic Parkway ‐ Medical Center/Heritage 2,000 100.0% 0.0% 0.0%100%2,000 124 R2081 RecPL ‐ 20‐Inch, 927 Zone, Lane Avenue ‐ Proctor Valley/Pond No. 1 1,210 100.0% 0.0% 0.0%100%1,210 125 R2088 RecPL ‐ 30‐Inch, 860 Zone, County Jail ‐ Roll Reservoir/860‐1 Reservoir 3,500 100.0% 0.0% 0.0%100%3,500 126 R2089 North District Distribution Pipelines and Conversions 14,220 0.0% 60.0% 0.0%0%0 127 R2093 MBR City of Chula Vista 11,000 0.0% 60.0% 0.0%0%0 128 R2094 Potable Irrigation Meters to Recycled Water Conversions 2,000 0.0% 60.0% 0.0%0%0 129 R2095 RWCWRF ‐ Filter Storage Reservoir Cover Replacement 75 0.0% 0.0% 100.0%0%0 130 R2097 RWCWRF ‐ Salt Creek Live Stream Discharge 320 100.0% 0.0% 0.0%100%320 131 R2103 Recycled Water Pump Station Rehabilitation Program 150 0.0% 0.0% 100.0%0%0 132 R2104 Recycled Water Reservoir Rehabilitation Program 100 0.0% 0.0% 100.0%0%0 133 R2105 RWCWRF Systems Replacement/Rehabilitation Program 400 0.0% 0.0% 100.0%0%0 134 R2106 Recycled Water Pipeline Replacement Program 240 0.0% 0.0% 100.0%0%0 135 R2115 RecPS ‐ 944‐1 Pump Station Upgrade Phase 2 (10,000 GPM)1,400 100.0% 0.0% 0.0%100%1,400 Total  $607,915  (in $100s) $283,4050%100%0%   Expansion Equivalent Dwelling Units 41,405 Future Capacity Water Fee (Per EDU)$6,845 Plus:  ENR update per Ordinance 534  Current Index 6/2014 10,739.43  Base Index 06/30/13 10,304.68 Total Capacity Fee with ENR Index 1.04 $7,134   Water 12 of 14 Otay Water District ‐ Water Exhibit W‐7   Current and Proposed Water Capacity Fee Item CF  2013/2014 Existing Capacity Fee Plant $592,228,550   See Exhibit W‐1 Future Capacity Fee Plant 283,405,230   See Exhibit W‐6 Total Capacity Fee $875,633,780  Existing EDUs 72,898   See Exhibit W‐1 Growth EDUs 41,405   See Exhibit W‐6 Total EDUs 114,303     Total Capacity Fee $7,661   Plus:  ENR update per Ordinance 534     Current Index 6/2014 10,739.43     Base Index 06/30/13 10,304.68 Total Capacity Fee with ENR Index 1.04 $7,984 Current Water Capacity Fee (1)$8,237   Calculated Water Capacity Fee (2)7,984   Difference ‐$253        Capacity Fee Meter Meter 2013/2014 Size (3)Ratio (4)Current Calculated 3/4"1.00 8,237 7,984 1"2.50 20,593 19,960 1‐1/2"5.00 41,185 39,920  2" 8.00 65,896 63,872 3"16.00 131,792 127,744 4"25.00 205,926 199,600 6"50.00 411,852 399,200 8"80.00 658,962 638,720 10"115.00 947,258 918,160 Notes: (1)  Current capacity fee as of ENR adjustment on  6/2014. (2)  Based on "Combined" methodology established in AWWA M1, Sixth Edition, Table VI.2‐1, page 273. (3)  Recommended for meter sizes larger than 4‐inch should be based on projected usage. (4)  Based on AWWA meter equivalency from AWWA M1 Manual, Sixth Edition, Table VI.2‐5, page 274.   Water 13 of 14 Otay Water District ‐ Water Exhibit W‐8 Development of Capacity Fee ‐ New Supply Count Project  Type CIPNo Project Title Projected  Project Cost Expansion Betterment  Replacement  New Supply  % CF  Eligible  Capacity Fee    8  P2434 Rancho Del Rey Groundwater Well Development $8,700 0.0% 60.0% 0.0% 40.0%40%$3,480 10  P2451 Otay Mesa Desalination Conveyance and Disinfection System 30,000 0.0% 60.0% 0.0% 40.0%40%12,000 82  P2450 Otay River Groundwater Well Demineralization Project 11,030 0.0% 60.0% 0.0% 40.0%40%4,412 86  P2467 San Diego Formation Groundwater Feasibility Study 1,800 0.0% 60.0% 0.0% 40.0%40%720 91 P2481 Middle Sweetwater River Basin Groundwater Well System 8,800 0.0% 60.0% 0.0% 40.0%40%3,520 92 P2482 Otay Mesa Lot 7 Groundwater Well System 4,500 0.0% 60.0% 0.0% 40.0%40%1,800 96 P2498 Brine Disposal Pipeline Otay River Demineralization Plant to South Bay Outfall 6,147 0.0% 60.0% 0.0% 40.0%40%2,459 126 R2089 North District Distribution Pipelines and Conversions 14,220 0.0% 60.0% 0.0% 40.0%40%5,688 126 R2093 MBR City of Chula Vista 11,000 0.0% 60.0% 0.0% 40.0%40%4,400 128 R2094 Potable Irrigation Converting to Recycled Water Conversions 2,000 0.0% 60.0% 0.0% 40.0%40%800 $98,197 $39,279 Total  $98,197 $39,279 Expansion Equivalent Dwelling Units  (1)41,405 New Supply Water Fee per EDU $949 Plus:  ENR update per Ordinance 534  Current Index 6/2014 10,739.43  Base Index 06/30/13 10,304.68 Total New Supply with ENR Index 1.04 $989 Notes: (1)  Based on data from the utility billing system as of June 30, 2013 and Land Use Demand email April 4, 2014.  See Exhibit W‐5.   Water 14 of 14              Sewer Technical Appendix Otay Water District ‐ Sewer Exhibit S‐1 Development of Capacity Fee ‐ Buy‐In Plant Description Original Cost (1) Accumulated  Depreciation Original Cost  Less Depr.  Reproduction Cost  (2)   Reproduction Cost  Less Depr.  Pipe Replacement  Cost  Pipe Replacement  Cost Less Depr.  OC OCLD RC RCLND RC‐Pipe (3) RCLND‐Pipe  Sewer Land $28,200 $0 $28,200 $29,724 $29,724 $0 $0 $29,724 Field Equipment 27,298 24,075 3,223 32,833 3,877 0 0 3,877 Chlorination 181,718 117,164 64,554 266,143 94,115 0 0 94,115 Contributed 0 0 0 00000 Capitalized Interest 862,003 337,631 524,372 1,373,971 821,589 0 0 821,589 Jamacha Sewer Basin 17,750,516 14,284,838 3,465,678 35,047,045 6,443,818 0 0 6,443,818 Maps & Plans 235,966 185,504 50,462 825,150 188,093 0 0 188,093 Main Pipe 604,156 229,236 374,919 974,880 554,612 101,982,000 13,952,550 13,952,550 Pump Stations 3,624 3,624 0 6,472 0 0 0 0 Pumps 22,304 21,526 778 37,856 979 0 0 979 Power 225,767 166,109 59,659 316,710 83,045 0 0 83,045 Repairs 0 0 0 00000 Security 26,267 26,267 0 71,914 0 0 0 0 Jamacha Sewer Basin 520,959 166,365 354,593 1,022,636 645,256 0 0 645,256 Sewer Pipes 3,235,551 13,352 3,222,199 3,250,273 3,232,006 0 0 3,232,006 Sewer Pumps and Valves 224,650 174,554 50,096 317,331 54,685 0 0 54,685 Sewer Plastic Water Service 99,166 32,721 66,445 192,204 77,114 0 0 77,114 Pump Stations 6,123,709 3,905,678 2,218,031 19,617,649 5,430,564 0 0 5,430,564 Spring Valley Sanitation District 779,470 385,122 394,349 856,775 406,803 0 0 406,803 Total Sewer $30,951,324 $20,073,766 $10,877,558 $64,239,566 $18,066,280 $101,982,000 $13,952,550 $31,464,219 Total $30,951,324 $20,073,766 $10,877,558 $64,239,566 $18,066,280 $101,982,000 $13,952,550 $31,464,219 Less: Outstanding Debt Principal (4)0           Capital Fund Reserves (5)0           Past Interest Payments (6)9,933,692 Total Net Plant $41,397,911 Existing Equivalent Dwelling Units (7)6,741 Buy‐In Capacity Fee per EDU (8)$6,141 Plus:  ENR update per Ordinance 534  Current Index 06/01/14 10,739.43  Base Index 06/30/13 10,304.68 Total Capacity Fee with ENR Index 1.04 $6,400 (1)  Asset listing as of June 30, 2013.  (2)  Based on specific in service date of asset and June 2013 Engineering News Record, for LA construction cost index. (3)  Based on pipe inventory and $25 per inch diameter. See Exhibit S‐2 (4)  Remaining principal as of June 30, 2013.  See Exhibit S‐3A. (5)  Cash reserves as of December 2013 which are CF eligible.  See Exhibit S‐4. (6)  Past interest payments from 1959 to 2008 which were not capitalized; net of depreciation at 50 year average life.  See Exhibit S‐3B. (7)  Based on 2010 study information,  See Exhibit S‐5 with added EDUs 2009 to Feb 2014 per District email 4/2014. (8)  Based on "buy‐in" methodology established in AWWA M1, Sixth Edition, Table VI.2‐1, page 269.  Capacity Fee=  RCLND +     RCLND‐ Pipe  Sewer Page 1 of 9 Otay Water District - Sewer Exhibit S-2 Development of Pipe Replacement Cost Pipe cost based on dollars per inch diameter 2014 = $25 TOTAL DIAMETER MATERIAL LENGTH REPLACEMENT DIAMETER MATERIAL LENGTH REPLACEMENT INCH TYPE FEET COST INCH TYPE FEET COST 3 PVC 350 $26,250 2 PVC 340 $17,000 4 ABS 442 44,200 3 PVC 29 2,175 4 VCP 31 3,100 4 PVC 455 45,500 4 PVC 1,830 183,000 6 DIP 2,612 391,800 6 PVC 1,624 243,600 6 PVC 38 5,700 12 DIP 116 34,800 8 ABS 143,030 28,606,000 12 PVC 4,909 1,472,700 8 STL 91 18,200 Total $1,953,275 8 HDPE 199 39,800 8 PVC 191,430 38,286,000 8 VCP 35,249 7,049,800 10 PVC 21,828 5,457,000 10 VCP 3,045 761,250 12 ABS 2,612 783,600 12 DIP 355 106,500 12 PVC 5,005 1,501,500 15 PVC 19,813 7,429,875 18 PVC 10,013 4,505,850 21 PVC 2,501 1,313,025 27 PVC 5,413 3,653,775 Total $100,028,725 Useful Life Rep. Cost Useful Life Rep. Cost Rep. Cost Contributed Pipelines $74,516,350 Otay Owned 50 25,512,375 Total $100,028,725 Assume no contributed assets 50 $1,953,275 $101,982,000 Assume 8" and smaller were contributed Yearly Depreciation Average Age (1) Accumulated Depreciation Replacement Cost Less Depreciation Yearly Depreciation Average Age (1) Accumulated Depreciation Replacement Cost Less Depreciation Replacement Cost Less Depreciation $510,248 24.6 $12,552,089 $12,960,287 $39,066 24.6 $961,011 $992,264 $13,952,550 (1) Average age based on 2010 study information. GRAVITY SEWER MAINS SEWER FORCE MAINS Sewer Page 2 of 9 Otay Water District - Sewer Exhibit S-3A Development of Sewer Debt For the Year Ended June 30, 2013 Debt Name TOTAL Principal Interest (1) I. Debt Status: Original Debt $0 $0 # of Years/Rate 0.00% II. Principal and Interest Payments: 2014 $0 $0 $0 $0 2015 0 0 0 0 2016 0 0 0 0 2017 0 0 0 0 2018 0 0 0 0 2019 0 0 0 0 2020 0 0 0 0 2021 0 0 0 0 2022 0 0 0 0 2023 0 0 0 0 2024 0 0 0 0 2025 0 0 0 0 2026 0 0 0 0 2027 0 0 0 0 2028 0 0 0 0 2029 0 0 0 0 2030 0 0 0 0 2031 0 0 0 0 2032 0 0 0 0 2033 0 0 0 0 2034 0 0 0 0 2035 0 0 0 0 2036 0 0 0 0 2037 0 0 0 0 2038 0 0 0 0 2039 0 0 0 0 2040 0 0 0 0 2041 0 0 0 0 TOTAL $0 $0 $0 $0 (1) The sewer debt was paid off in 2011. Sewer Page 3 of 9 Otay Water District - Sewer Exhibit S-3B Development of Past Interest Payments Year Total Sewer Water CPI Escalation Factor 2008 Present Day Dollars Sewer Present Day Dollars Water CPI Escalation Factor 2013 Present Day Dollars Sewer Present Day Dollars Water Average Age YTD Remaining Depreciated Sewer Depreciated Water Present Dollars Less Depr. Sewer Present Dollars Less Depr. Water 2008 2,601,252 47,277 2,553,975 1.09 51,683 2,791,997 1.07 $50,788 $2,743,663 50 6 44 $6,095 $329,240 $44,694 $2,414,424 2007 950,479 58,066 892,413 1.03 59,948 921,344 1.12 64,783 995,641 50 7 43 9,070 139,390 55,713 856,252 2006 959,225 68,491 890,734 1.06 72,330 940,660 1.14 78,163 1,016,515 50 8 42 12,506 162,642 65,657 853,872 2005 1,327,844 78,562 1,249,282 1.09 85,786 1,364,158 1.18 92,704 1,474,164 50 9 41 16,687 265,350 76,017 1,208,814 2004 1,252,307 88,293 1,164,014 1.13 99,946 1,317,638 1.22 108,006 1,423,893 50 10 40 21,601 284,779 86,405 1,139,114 2003 947,099 97,695 849,404 1.17 114,629 996,632 1.27 123,873 1,077,001 50 11 39 27,252 236,940 96,621 840,061 2002 1,503,063 106,779 1,396,284 1.22 129,973 1,699,564 1.32 140,454 1,836,617 50 12 38 33,709 440,788 106,745 1,395,829 2001 1,543,336 115,556 1,427,780 1.26 145,585 1,798,801 1.36 157,325 1,943,856 50 13 37 40,904 505,403 116,420 1,438,454 2000 1,540,592 124,036 1,416,556 1.32 163,449 1,866,668 1.42 176,630 2,017,197 50 14 36 49,456 564,815 127,173 1,452,382 1999 1,809,747 176,967 1,632,780 1.39 246,694 2,276,112 1.51 266,587 2,459,658 50 15 35 79,976 737,898 186,611 1,721,761 1998 1,952,742 227,266 1,725,476 1.44 328,010 2,490,361 1.56 354,461 2,691,184 50 16 34 113,428 861,179 241,034 1,830,005 1997 2,080,744 274,606 1,806,138 1.47 404,084 2,657,737 1.59 436,669 2,872,057 50 17 33 148,467 976,499 288,202 1,895,558 1996 1,421,139 319,333 1,101,806 1.50 478,077 1,649,525 1.62 516,629 1,782,543 50 18 32 185,986 641,715 330,642 1,140,827 1995 936,716 362,687 574,029 1.54 557,180 881,856 1.66 602,111 952,969 50 19 31 228,802 362,128 373,309 590,841 1994 1,329,706 394,491 935,215 1.56 615,062 1,458,118 1.68 664,660 1,575,701 50 20 30 265,864 630,280 398,796 945,420 1993 749,618 419,512 330,106 1.60 671,011 528,005 1.73 725,121 570,583 50 21 29 304,551 239,645 420,570 330,938 1992 689,412 296,895 392,517 1.63 485,193 641,462 1.77 524,319 693,190 50 22 28 230,700 305,004 293,619 388,186 1991 1,172,353 336,012 836,341 1.68 564,437 1,404,895 1.82 609,953 1,518,186 50 23 27 280,578 698,366 329,375 819,821 1990 1,454,800 372,559 1,082,241 1.74 648,438 1,883,639 1.88 700,728 2,035,536 50 24 26 336,349 977,057 364,379 1,058,479 1989 1,314,494 408,975 905,519 1.84 754,333 1,670,183 1.99 815,163 1,804,867 50 25 25 407,581 902,434 407,581 902,434 1988 1,841,881 444,586 1,397,295 1.95 867,861 2,727,613 2.11 937,845 2,947,568 50 26 24 487,680 1,532,735 450,166 1,414,833 1987 1,339,462 477,707 861,755 2.05 979,340 1,766,671 2.22 1,058,315 1,909,135 50 27 23 571,490 1,030,933 486,825 878,202 1986 1,428,383 509,385 918,998 2.12 1,081,084 1,950,422 2.29 1,168,263 2,107,705 50 28 22 654,227 1,180,315 514,036 927,390 1985 1,508,454 538,914 969,540 2.18 1,175,872 2,115,468 2.36 1,270,694 2,286,060 50 29 21 737,003 1,325,915 533,692 960,145 1984 1,585,069 566,769 1,018,300 2.30 1,302,731 2,340,584 2.48 1,407,783 2,529,329 50 30 20 844,670 1,517,597 563,113 1,011,731 1983 1,614,923 593,048 1,021,875 2.43 1,442,993 2,486,408 2.63 1,559,356 2,686,913 50 31 19 966,801 1,665,886 592,555 1,021,027 1982 1,496,029 601,840 894,189 2.50 1,507,009 2,239,051 2.71 1,628,535 2,419,608 50 32 18 1,042,262 1,548,549 586,272 871,059 1981 1,546,319 118,910 1,427,409 2.67 317,909 3,816,220 2.89 343,546 4,123,960 50 33 17 226,740 2,721,814 116,806 1,402,147 1980 1,689,015 126,371 1,562,644 3.03 383,386 4,740,775 3.28 414,303 5,123,071 50 34 16 281,726 3,483,688 132,577 1,639,383 1979 1,727,910 146,451 1,581,459 3.50 512,015 5,529,024 3.78 553,304 5,974,885 50 35 15 387,313 4,182,420 165,991 1,792,466 1978 846,568 139,706 706,862 4.07 568,464 2,876,224 4.40 614,305 3,108,163 50 36 14 442,300 2,237,877 172,005 870,286 1977 699,346 146,858 552,488 4.48 657,544 2,473,719 4.84 710,569 2,673,200 50 37 13 525,821 1,978,168 184,748 695,032 1976 500,880 152,370 348,510 4.77 726,805 1,662,393 5.15 785,415 1,796,448 50 38 12 596,915 1,365,301 188,499 431,148 1975 505,080 158,245 346,835 5.06 800,816 1,755,196 5.47 865,394 1,896,736 50 39 11 675,007 1,479,454 190,387 417,282 1974 545,897 163,251 382,646 5.54 904,016 2,118,935 5.98 976,917 2,289,806 50 40 10 781,533 1,831,845 195,383 457,961 1973 545,960 166,687 379,273 6.15 1,024,296 2,330,642 6.64 1,106,895 2,518,586 50 41 9 907,654 2,065,240 199,241 453,345 1972 559,456 195,260 364,196 6.55 1,278,131 2,383,950 7.07 1,381,199 2,576,192 50 42 8 1,160,207 2,164,001 220,992 412,191 1971 507,776 19,884 487,892 6.80 135,304 3,319,940 7.35 146,215 3,587,660 50 43 7 125,745 3,085,388 20,470 502,272 1970 399,854 11,322 388,532 7.06 79,979 2,744,620 7.63 86,429 2,965,946 50 44 6 76,058 2,610,033 10,371 355,914 1969 286,268 286,268 7.43 - 2,128,323 8.03 - 2,299,951 50 45 5 0 2,069,956 0 229,995 1968 269,080 269,080 7.82 - 2,104,459 8.45 - 2,274,163 50 46 4 0 2,092,230 0 181,933 1967 237,827 237,827 8.14 - 1,935,438 8.79 - 2,091,512 50 47 3 0 1,966,021 0 125,491 1966 243,112 243,112 8.39 - 2,040,489 9.07 - 2,205,034 50 48 2 0 2,116,833 0 88,201 1965 224,790 224,790 8.54 - 1,920,159 9.23 - 2,075,001 50 49 1 0 2,033,501 0 41,500 1964 199,375 199,375 7.77 - 1,549,240 8.40 - 1,674,171 50 50 0 0 1,674,171 0 0 1963 127,415 127,415 7.87 - 1,003,018 8.51 - 1,083,902 50 51 0 0 1,083,902 0 0 1962 75,500 75,500 7.98 - 602,213 8.62 - 650,775 50 52 0 0 650,775 0 0 1961 75,500 75,500 8.06 - 608,255 8.71 - 657,305 50 53 0 0 657,305 0 0 1960 72,250 72,250 8.14 - 587,971 8.79 - 635,385 50 54 0 0 635,385 0 0 1959 75,500 75,500 8.95 - 675,375 8.95 - 675,375 50 55 0 0 675,375 0 0 $50,311,547 $9,651,623 $40,659,924 $22,421,405 $97,772,150 $24,224,408 $105,328,567 $14,290,716 $64,924,162 $9,933,692 $40,404,404 1. 1959-1962 only id 2 & 3, 1963-1966 - 2,3,5,6,7,9,10, this is the interest which is not already capitalized (previously). Sewer Page 4 of 9 Otay Water District - Sewer Exhibit S-4 Summary of Reserve Funds For the Year Ended June 30, 2013 Account #OPEB New Water Supply Expansion Replacement Betterment Debt Fund Debt Reserve Capital Improvement General Total % CF Eligible (1) Capacity Fee RESTRICTED RESERVES 312201/312241(ID 1)($5,850,335) $9,402,124 $3,551,789 0%$0 312202/312242 (ID 2)(1,683,179) 314,727 (1,368,452)0%0 312203/312243 (ID 3)(6,308,107) 1,521,924 (4,786,184)0%0 312213/312244 (ID 5)(222,001) 114,381 (107,621)0%0 312204/312245 (ID 7)(804,842) 780,367 (24,476)0%0 312205/312246 (ID 9)(6,117,475) 1,411,602 (4,705,872)0%0 312206/312247 (ID 10)(1,025,174) 871,591 (153,583)0%0 312207/312248 (ID 18)0 0 0 100%0 312214/312249 (ID 19)9,404 14,350 23,754 0%0 312208/312251 (ID 20)(12,444,252) 3,485,711 (8,958,541)0%0 312209/312252 (ID 22)(7,154,838) 4,680,147 (2,474,691)0%0 312210/312253 (ID 25)(17,833)0 (17,833)0%0 312211/312254 (ID 85)(18,741,290) 38,724 (18,702,566)0%0 312212/312255 (ID 90)(389,393) 237,609 (151,784)0%0 312101 Capacity Fees 5,324,932 5,324,932 0%0 312102 Capital Improvement Fund 5,081,116 5,081,116 0%0 312103 New Supply Fund (389,977)(389,977)0%0 312104 Annex/Developer Fee 0 0 0%0 312111 New Supply Debt Fund 741,513 741,513 0%0 312112 Expansion Debt Fund 30,701,201 30,701,201 0%0 312113 Replacement Debt Fund 6,639,144 6,639,144 0%0 312121 New Supply CIF 0 0 0%0 312122 Expansion CIF 0 0 0%0 312123 Replacement CIF 0 0 0%0 312261 Betterment CIF 0 0 0%0 312413 State Loan Reserve 0 0 0%0 312414 GO Bonds Reserve 917,708 917,708 0%0 312416 Grants - CIP 0 0 0%0 312419 2010 COPs Taxable BABs 13,155,639 13,155,639 0%0 312421 2010 COPs TE - Reserve 1,030,688 1,030,688 0%0 312422 2010 COPs BABs - Reserve 2,707,418 2,707,418 0%0 TOTAL RESTRICTED $0 $351,536 $36,026,133 $11,720,260 ($60,749,316) $22,873,257 $17,811,452 $0 $0 $28,033,323 $0 DESIGNATED RESERVES 312229 Designated Betterment $41,131,682 $41,131,682 0%$0 321203 New Supply Fee Reserve 23,604 23,604 0%0 312412 Expansion Reserve (22,544,902)(22,544,902)0%0 321201 Replacement Reserve 15,739,451 15,739,451 0%0 321202 Retiree Health Ins - OPEB (a)0 0 0%0 321202 Retiree Health Ins Reserve (b)149,705 149,705 0%0 TOTAL DESIGNATED $149,705 $23,604 ($22,544,902) $15,739,451 $41,131,682 $0 $0 $0 $0 $34,499,540 $0 TOAL RESTRICTED & DESIGNATED $149,705 $375,140 $13,481,232 $27,459,711 ($19,617,634) $22,873,257 $17,811,452 $0 $0 $62,532,863 $0 GENERAL FUND (UNRESTRICTED) Annexation (Potable)$11,798,099 $11,798,099 0%$0 Annexation (Sewer)0 100%0 Operating 3,480,529 3,480,529 0%0 11-215101 Developer Deposit 375,057 375,057 0%0 77-215101|215111 Dev/Cell Site Dep 828,445 828,445 0%0 312415 Lakeview Replacement 231,210 231,210 0%0 312424 Highlands Golf Course, LLC 43,320 43,320 0%0 TOTAL GENERAL FUND $0 $0 $0 $0 $0 $0 $0 $0 $16,756,661 $16,756,661 $0 TOTALS BY FUND CATEGORY $149,705 $375,140 $13,481,232 $27,459,711 ($19,617,634) $22,873,257 $17,811,452 $0 $16,756,661 $79,289,524 $0 Betterment Sewer Page 5 of 9 Otay Water District - Sewer Exhibit S-5 Development of Equivalent Dwelling Units Number of EDUs Number of 2009 EDUs (1)6,714 EDUs added 2009 to Feb 2014 (2)27 Current EDUs 6,741 Expansion EDUs 0 (1) Based on 2010 study. (2) Based on 2010 study information with added EDUs 2009 to Feb 2014 per District email 4/4/2014. Sewer Page 6 of 9 Otay Water District - Sewer Exhibit S-6 Development of Capacity Fee - Future Count Project Type CIPNo Project Title Projected Project Cost (000s)Expansion Betterment Replacement % CF Eligible (2) Capacity Fee 71 S2024 Campo Road Sewer Main Replacement $5,500 0.0%100.0%0.0%0%$0 72 S2027 Rancho San Diego Pump Station Rehabilitation 3,500 0.0%0.0%100.0%0%0 73 S2033 Sewer System Various Locations Rehabilitation 6,000 0.0%0.0%100.0%0%0 74 S2043 RWCWRF Sludge Handling System 1,500 0.0%100.0%0.0%0%0 134 S2001 PL - 8-Inch, Russell Square Sewer Lift Station to City of El Cajon System 385 0.0%100.0%0.0%0%0 135 S2002 PL - 8-Inch, Hidden Mountain Sewer Lift Station to City of El Cajon System 460 0.0%100.0%0.0%0%0 136 S2012 SVSD Outfall and RSD Replacement and OM Reimbursement 3,030 0.0%0.0%100.0%0%0 137 S2018 RWCWRF - Secondary Process Automation 50 0.0%100.0%0.0%0%0 138 S2021 Jamacha Road 8-Inch Sewer Main Replacement 180 0.0%100.0%0.0%0%0 139 S2035 Sewer Collection System Main Replacement Program 600 0.0%0.0%100.0%0%0 140 S2036 Sewer Manhole Rehabilitation Program 80 0.0%0.0%100.0%0%0 141 S2037 Sewer Lift Station Rehabilitation Program 160 0.0%0.0%100.0%0%0 142 S2038 Sewer Force Main Replacement Program 40 0.0%0.0%100.0%0%0 $21,485 $0 Total $21,485 (in $000s)$0 Expansions Equivalent Dwelliing Units 0 Future Sewer Fee (Per EDU) $0 Sewer Page 7 of 9 Otay Water District ‐ Sewer Exhibit S‐7 Current and Proposed Sewer Capacity Fee Item CF  2013/2014   Reference Existing Capacity Fee Plant $41,397,911   See Exhibit S‐1 Future Capacity Fee Plant 0   See Exhibit S‐7 Total Capacity Fee $41,397,911  Existing EDUs 6,741   See Exhibit S‐1 Growth EDUs 0   See Exhibit S‐7 Total EDUs 6,741 Total Capacity Fee $6,141 Plus:  ENR update per Ordinance 534   Current Index 06/01/14 10,739.43   Base Index 06/30/13 10,304.68 Total Capacity Fee with ENR Index 1.04 $6,400 Current Sewer Capacity Fee (1)$5,986 Calculated Sewer Capacity Fee (2)6,400 Difference $415   Capacity Fee Example Customer Number of 2013/2014 Classification EDUs (3)Current Calculated Hotel/Motel w/o kitchen; /unit 0.38 $2,275 $2,432 Hotel/Motel with kitchen; per unit 0.60 3,591 3,840 Residential units (single & multi‐1.00 5,986 6,400    family, mobile homes ‐ per unit) Commercial ‐ first 1,000 sq.ft.1.20 7,183 7,680 Commercial ‐ addt'l 1,000 sq.ft.0.70 4,190 4,480 Notes: (1)  Current capacity fee as of ENR adjustment on  6/2014, fees effective 7/1/2014. (2)  Based on "Combined" methodology established in AWWA M1, Sixth Edition, Table VI.2‐1, page 273. (3)  EDU's are determined by the District's code, Section 53.09. For example, Single‐family, multi‐family, condos and         mobile homes aer charged 1.0 EDU per unit.  Churches are charged prorated as 150 seats = 1.0 EDU.        Schools range between 24 to 50 students = 1.0 EDU, depending on the type of school (Elementary to High School). *Churches, theatres, auditoriums ‐ does not include office space, school rooms, day‐care facilities, food prep areas,  Additional EDUs are assigned for these supplementary/types of uses. Sewer Page 8 of 9 Otay Water District ‐ Sewer Exhibit S‐7A Calculation of Inside ID Area Capacity Fee ‐ Accounting for Principal and Interest Payments $6,400 Calculated Sewer Capacity Fee $6,400 Calculated Sewer Capacity Fee 1,535                        $9.933 M past Interest removed from model (Exh. 3)773                  Past Principal discount $4,865 Calculated capacity Fee without past interest $5,627 Calculated capacity Fee without past principal For $5 M 1990 state loan  $6,400 Calculated Sewer Capacity Fee (1,535)                      Reduction for past interest payments (773)                          Reduction for past principal payments $4,092 Calculated fee for inside ID areas Sewer Page 9 of 9       Water and Sewer Annexation Fees Otay Water District Exhibit A‐1 Summary of Annexation Fee Calculation (A)(B)                                                            (C)            (D)        Line No.Item Original Amount Present Value  Resource Water & Recycled Annexation Fee 1 Total 1 % General Tax*$40,494,657 $62,541,413 Exhibit 3 - Present Value in 2013 Dollars of Tax Collections 2 Availability Charges 35,605,529 67,000,559 Exhibit 3 - Present Value in 2013 Dollars of Water Availability Charges 3 Total Gen Tax & Availability $76,100,186 $129,541,972 4 Current EDUs 72,898                   72,898                   Exhibit 2 ‐ Water EDUs 5 Water & Recycled Annexation Fee $1,044 $1,777 Exhibit 1 ‐ = Line 3 divided by Line 4  Current Fee 1,622  Total Increase (Decrease) to Current Fee $155 Sewer Annexation Fee 6 Total 1 % General Tax*$0 $0 1% general tax for water only 7 Availability Charges 2,948,941 6,861,466 Exhibit 3 - Present Value in 2013 Dollars of Sewer Availability Charges 8 Total Gen Tax & Availability $2,948,941 $6,861,466 Exhibit 1 ‐ =  Line 4 + Line 7 9 Current EDUs 6,741                     6,741                     Exhibit 2 ‐ Sewer EDUs 10 Sewer Annexation Fee $437 $1,018 Exhibit 1 ‐ = Line 8 divided by Line 9  Current Fee 0  Total Increase (Decrease) to Current Fee $1,018 Annexation Fees Page 1 of 5 Otay Water District Exhibit 1A Summary of Water Annexation Fee by Meter Size Meter  Size (inch) Hydraulic  Capacity Factor  [1] Proposed  Water  Annexation Fee 5/8" 1.00 $1,777 3/4" 1.00 1,777 1" 2.50 4,443 1‐1/2" 5.00 8,885 2" 8.00 14,216 3" 16.00 28,432 4" 25.00 44,425 6" 50.00 88,850 8" 80.00 142,160 10" 115.00 204,355 [1] Based on AWWA capacity rating for 5/8" meter. Annexation Fees Page 2 of 5  Otay Water District  Exhibit A‐2   Summary of Water and Sewer EDUs Number of Meters (1) Class of Service 5/8" 3/4" 1" 1.5" 2" 3" 4" 6" 8" 10" Total Number of Water Meters Residential 1 43,186 1,463 14 4 0 000044,668 Master Metered 0 41 186 245 224 34 61 6 3 0 800 Commercial & Public 679 336 389 291 404 32 28 8 0 5 2,172 Ag, Lds & Construction 0103262383466 5 62001,227 Recycled 0 1102393194 4 7201704 Temporary 0796206700091 Total 680 43,674 2,411 1,332 1,294 75 169 18 3 6 49,662 Less: Temporary 0796206700091 Total Existing Permanent 680 43,667 2,402 1,326 1,292 75 102 18 3 6 49,571 AWWA Weighting ‐ 5/8" Meter 1.00 1.00 2.50 5.00 8.00 16.00 25.00 50.00 80.00 115.00 Permanent Existing Water EDUs 680 43,667 6,005 6,630 10,336 1,200 2,550 900 240 690 72,898 Number of Sewer ASUs (2)6,741 Notes: (1)  Based on data from the utility billing system as of FY 2013.   (2)  Based on estimate provided by District for FY 2013.   Annexation Fees Page 3 of 5 Otay Water District Exhibit A‐3 Summary of Tax Collections and Availability Charges   Year  State Share of  Tax Coll PV Factor Present Value in  Today's Dollars Water Avail Present Value in  Today's Dollars Sewer Avail Present Value  in Today's  Dollars FY 1959 1959 34,446                 8.95 308,128$             ‐$                    ‐                     FY 1960 1960 69,628                 8.79 612,327$             ‐$                    ‐                     FY 1961 1961 95,352                 8.71 830,136$             ‐$                    ‐                     FY 1962 1962 73,400                 8.62 632,674$             ‐$                    ‐                     FY 1963 1963 71,693                 8.51 609,883$             41,883               356,293$            ‐                     FY 1964 1964 74,297                 8.40 623,879$             59,677               501,114$            ‐                     FY 1965 1965 65,485                 9.23 604,482$             66,763               616,279$            ‐                     FY 1966 1966 75,554                 9.07 685,277$             66,175               600,210$            ‐                     FY 1967 1967 82,050                 8.79 721,569$             96,460               848,294$            ‐                     FY 1968 1968 57,645                 8.45 487,194$             94,834               801,501$            ‐                     FY 1969 1969 58,675                 8.03 471,410$             94,876               762,258$            3,086                24,794               FY 1970 1970 ‐                        7.63 ‐$                     112,789             861,000$            20,804              158,812             FY 1971 1971 ‐                        7.35 ‐$                     105,577             776,349$            24,549              180,518             FY 1972 1972 120,000               7.07 848,837$             141,692             1,002,278$         44,112              312,032             FY 1973 1973 128,000               6.64 849,992$             114,084             757,582$            54,132              359,467             FY 1974 1974 150,000               5.98 897,621$             123,266             737,641$            60,748              363,524             FY 1975 1975 222,000               5.47 1,214,051$         83,416               456,177$            60,800              332,497             FY 1976 1976 262,000               5.15 1,350,519$         105,200             542,270$            60,800              313,403             FY 1977 1977 272,018               4.84 1,316,153$         130,708             632,427$            60,906              294,692             FY 1978 1978 327,000               4.40 1,437,861$         162,949             716,508$            58,611              257,720             FY 1979 1979 163,271               3.78 616,852$             379,294             1,433,005$         67,365              254,511             FY 1980 1980 3.28 ‐$                     595,000             1,950,686$         68,000              222,936             FY 1981 1981 2.89 ‐$                     682,000             1,970,382$         68,000              196,460             FY 1982 1982 137,863               2.71 373,047$             757,885             2,050,780$         69,000              186,709             FY 1983 1983 110,000               2.63 289,233$             909,659             2,391,852$         69,000              181,428             FY 1984 1984 108,391               2.48 269,230$             766,718             1,904,431$         68,000              168,903             FY 1985 1985 107,173               2.36 252,701$             837,736             1,975,281$         67,000              157,978             FY 1986 1986 94,431                 2.29 216,576$             797,498             1,829,046$         66,000              151,370             FY 1987 1987 110,000               2.22 243,694$             759,875             1,683,430$         65,000              144,001             FY 1988 1988 200,000               2.11 421,896$             897,269             1,892,772$         64,000              135,007             FY 1989 1989 300,000               1.99 597,956$             856,702             1,707,566$         63,000              125,571             FY 1990 1990 400,000               1.88 752,341$             893,639             1,680,803$         62,000              116,613             FY 1991 1991 500,000               1.82 907,636$             1,010,761          1,834,806$         61,000              110,732             FY 1992 1992 550,000               1.77 971,306$             904,588             1,597,512$         60,000              105,961             FY 1993 1993 600,000               1.73 1,037,092$         1,086,662          1,878,280$         52,166              90,168               FY 1994 1994 650,000               1.68 1,095,155$         959,193             1,616,101$         54,000              90,982               FY 1995 1995 714,965               1.66 1,186,942$         1,167,150          1,937,633$         56,995              94,620               FY 1996 1996 734,935               1.62 1,189,006$         1,162,252          1,880,335$         56,995              92,209               FY 1997 1997 752,852               1.59 1,197,159$         1,095,138          1,741,450$         56,995              90,631               FY 1998 1998 778,739               1.56 1,214,580$         1,072,577          1,672,873$         63,353              98,810               FY 1999 1999 852,078               1.51 1,283,590$         1,015,615          1,529,946$         64,899              97,766               FY 2000 2000 962,353               1.42 1,370,406$         1,015,422          1,445,977$         64,899              92,417               FY 2001 2001 1,105,495            1.36 1,505,080$         1,113,297          1,515,702$         68,512              93,276               FY 2002 2002 1,283,514            1.32 1,688,284$         1,100,080          1,447,002$         69,381              91,261               FY 2003 2003 1,554,975            1.27 1,971,630$         1,076,548          1,365,009$         69,381              87,971               FY 2004 2004 1,781,421            1.22 2,179,143$         1,113,609          1,362,235$         82,392              100,787             FY 2005 2005 947,347               1.18 1,117,878$         1,091,674          1,288,185$         82,588              97,455               FY 2006 2006 1,338,279            1.14 1,527,258$         1,085,726          1,239,041$         85,310              97,356               FY 2007 2007 2,930,494            1.12 3,269,474$         1,111,263          1,239,806$         90,370              100,824             FY 2008 2008 3,279,923            1.07 3,523,529$         1,118,075          1,201,116$         114,259            122,745             FY 2009 2009 3,429,830            1.07 3,685,224$         1,103,565          1,185,739$         92,029              98,882               FY 2010 2010 3,053,504            1.06 3,238,237$         1,125,125          1,193,194$         89,313              94,717               FY 2011 2011 2,946,521            1.03 3,032,735$         1,097,832          1,129,954$         89,801              92,428               FY 2012 2012 2,875,801            1.01 2,913,293$         1,127,195          1,141,890$         86,951              88,085               FY 2013 2013 2,901,260            1.00 2,901,260$         1,118,557          1,118,557$         92,439              92,439               40,494,657$       1.00             62,541,413$       35,605,529$      67,000,559$      2,948,941$       6,861,466$         PV factor calculated based on San Diego CPI.  See Exhibit 4. Annexation Fees Page 4 of 5 Otay Water District Exhibit 4 Summary 20 City Average ENR-CCI to ENR-CCI for LA 2013 10,738.68 CPI 260.31 Year 20 City Average ENR-CCI Change of 20 City CCI ENR -CCI for LA PV Factor San Diego CPI PV Factor 1959 797.00 5.0% 882.87 12.16 29.10 8.95 1960 824.00 3.4% 912.78 11.76 29.60 8.79 1961 847.00 2.8% 938.26 11.45 29.90 8.71 1962 872.00 3.0% 965.96 11.12 30.20 8.62 1963 901.00 3.3% 998.08 10.76 30.60 8.51 1964 936.00 3.9% 1,036.85 10.36 31.00 8.40 1965 971.00 3.7% 1,075.62 9.98 28.20 9.23 1966 1,019.00 4.9% 1,128.79 9.51 28.70 9.07 1967 1,074.00 5.4% 1,189.72 9.03 29.60 8.79 1968 1,155.00 7.5% 1,279.45 8.39 30.80 8.45 1969 1,269.00 9.9% 1,405.73 7.64 32.40 8.03 1970 1,381.00 8.8% 1,529.80 7.02 34.10 7.63 1971 1,581.00 14.5% 1,751.35 6.13 35.40 7.35 1972 1,753.00 10.9% 1,941.88 5.53 36.80 7.07 1973 1,895.00 8.1%2,099.18 5.12 39.20 6.64 1974 2,020.00  2,279.66 4.71 43.50 5.98 1975 2,212.00  2,585.93 4.15 47.60 5.47 1976 2,401.00  2,923.33 3.67 50.50 5.15 1977 2,576.00  3,161.75 3.40 53.80 4.84 1978 2,776.00   3,421.25 3.14 59.20 4.40 1979 3,003.00  3,638.81 2.95 68.90 3.78 1980 3,237.00  4,102.37 2.62 79.40 3.28 1981 3,535.00  4,530.96 2.37 90.10 2.89 1982 3,825.00  4,934.14 2.18 96.20 2.71 1983 4,066.00   5,063.89 2.12 99.00 2.63 1984 4,146.00  5,259.93 2.04 104.80 2.48 1985 4,195.00  5,446.69 1.97 110.40 2.36 1986 4,295.00  5,452.20 1.97 113.50 2.29 1987 4,406.00  5,474.14 1.96 117.50 2.22 1988 4,519.00  5,770.84 1.86 123.40 2.11 1989 4,615.00  5,789.77 1.85 130.60 1.99 1990 4,732.00  5,994.55 1.79 138.40 1.88 1991 4,835.00  6,090.12 1.76 143.40 1.82 1992 4,985.00  6,348.55 1.69 147.40 1.77 1993 5,210.00  6,477.84 1.66 150.60 1.73 1994 5,408.00  6,532.95 1.64 154.50 1.68 1995 5,471.00  6,626.22 1.62 156.80 1.66 1996 5,620.00  6,558.44 1.64 160.90 1.62 1997 5,826.00  6,663.55 1.61 163.70 1.59 1998 5,920.00  6,851.95 1.57 166.90 1.56 1999 6,059.00  6,825.97 1.57 172.80 1.51 2000 6,221.00  7,068.04 1.52 182.80 1.42 2001 6,334.00  7,226.92 1.49 191.20 1.36 2002 6,538.00  7,402.75 1.45 197.90 1.32 2003 6,694.00  7,531.77 1.43 205.30 1.27 2004 7,115.00  8,192.14 1.31 212.80 1.22 2005 7,445.98  8,567.42 1.25 220.60 1.18 2006 7,751.20  8,878.97 1.21 228.10 1.14 2007 7,967.25  9,181.67 1.17 233.32 1.12 2008 8,311.12  9,823.19 1.09 242.31 1.07 2009 8,574.84  9,760.69 1.10 242.27 1.07 2010 8,802.40  10,004.30 1.07 245.46 1.06 2011 9,074.08  10,088.80 1.06 252.91 1.03 2012 9,308.15  10,270.93 1.05 256.96 1.01 2013 9,546.61  10,738.68 1.00 260.31 1.00 Current Year ENR-CCI Annexation Fees Page 5 of 5 Water and Sewer Capacity and Annexation Fees Attachment H Overview of Presentation •Purpose and methodology of fees •Review the results of the District’s study •Capacity fees •Water •Sewer •New supply fee •Annexation fees •Water •Sewer •Summary and Next Steps 2 Purpose of the District’s Study Review and update the fees to reflect existing conditions and value of the assets in place and capacity available To apply the same methodology to both utilities Update the existing sewer “annexation fee” to the sewer buy-in capacity fee; develop a sewer annexation fee based on availability fees Review administrative and implementation of the fees 3 Capacity Fees and New Supply Fees - Purpose To charge new customers an equitable share of the cost of infrastructure to serve their needs “Growth pays for growth” Provides equity between new and existing customers These one-time fees pay an equitable share of system capacity equal to the value of the funds paid by others Shelters existing customers from impacts of system expansion for growth Generates revenue for growth related facilities 4 Criteria in Determining Capacity Fees •Easy to understand •Asset value •System financing •System planning criteria •Customer acceptance 5 Methodology for Determining Capacity Fees Methodology used is consistent with past District studies District uses “generally accepted methods Only capital improvements that provide new capacity are included Fees are segregated by new supply and other capacity improve. Does not include operations or maintenance Not intended for renewals and replacements Methodology considers: Existing and future assets needed to serve growth System Planning Defining and equivalent dwelling unit (EDU) Method of financing – Debt credit 6 Review of the Water Capacity and the New Water Supply Fees 7 Present Water Capacity Fee and New Supply Fee By Meter Size 8 •Connections in the Triad development area receive a credit (lower fee) for storage facilities. Meter # of Capacity New Water Size Equiv. EDUs Fee Supply Fee 3/4" 1.00 $8,237 $949 1" 2.50 20,593 2,371 1-1/2" 5.00 41,185 4,743 2" 8.00 65,896 7,589 3" 16.00 131,792 15,177 4" 25.00 205,926 23,715 6" 50.00 411,852 47,430 8" 80.00 658,962 75,887 10" 115.00 947,258 109,088 Present Water Capacity and New Supply Fee Calculated Water Capacity Fee and New Supply Fee By Meter Size 9 •Connections in the Triad development area receive a credit (lower fee) on the capacity fee for potable storage facilities. The credit is approximately 25%. Meter # of Capacity New Water Size Equiv. EDUs Fee Supply Fee 3/4" 1.00 $7,984 $989 1" 2.50 19,960 2,473 1-1/2" 5.00 39,920 4,945 2" 8.00 63,872 7,912 3" 16.00 127,744 15,824 4" 25.00 199,600 24,725 6" 50.00 399,200 49,450 8" 80.00 638,720 79,120 10" 115.00 918,160 113,735 Calculated Water Capacity and New Supply Fee Comparison of Present and Calculated Water Fees For 3/4-inch meter; 1 EDU: 10 Capacity New Supply Capacity New Supply $ Fee Fee Total Fee Fee Total Difference $8,237 $949 $9,186 $7,984 $989 $8,973 ($213) Present Fees Calculated Fees Sewer Capacity Fees 11 Overview of Sewer Capacity Fees Methodology similar to the water capacity fee No future planned assets/improvements Considers only existing sewer assets Planning criteria – same as in last study Move from “annexation” fee to capacity buy-in fees Provides consistency in fees between the utilities Reviewed implementation by EDU versus meter size Maintain EDUs approach Changing nomenclature 12 Sewer Capacity Fee* Per EDU 13 * This fee is described as an annexation fee on the current fee schedule. However, it is based on the value of the assets divided by EDUs served. EDUs are determined based on District code Section 53.08. Residential units = 1.0 EDU. Example Customer Number of Capacity Classifications EDUs Fee Hotel/Motel w/o kitchen 0.38 $2,275 Hotel/Motel w/ kitchen 0.60 3,591 Residential units - per unit* 1.00 5,986 Commercial - first 1,000 sq.ft. 1.20 7,183 Commercial - addt'l 1,000 sq.ft. 0.70 4,190 Present Sewer Capacity Fee Key Policy Issue for Sewer Capacity Fees Customers within ID areas: Would pay the capacity fee less a debt credit Reductions recognize their previous payments of debt Fee for their share of facilities paid for through rates Customers outside of an ID area: Would pay capacity fee and annexation fee Provides consistency between utilities Example to illustrate the issue: Since 2009, 27 new connection to sewer system 3 have paid the “annexation” capacity fee None have paid an annexation fee such as the water utility’s annexation fee 14 Calculated Sewer Capacity Fee* Per EDU 15 •EDUs are determined based on District code Section 53.08. Residential units = 1.0 EDU •Customers within an ID area would pay a lower capacity fee, accounting for debt payments paid previously through debt assessments to their property. Example Customer Number of Capacity Fee Capacity Fee Classifications EDUs Outside ID area Inside ID area Hotel/Motel w/o kitchen 0.38 $2,432 $1,555 Hotel/Motel w/ kitchen 0.60 3,840 2,455 Residential units - per unit* 1.00 6,400 4,092 Commercial - first 1,000 sq.ft. 1.20 7,680 4,911 Commercial - addt'l 1,000 sq.ft. 0.70 4,480 2,865 *Includes multi‐family, mobile homes ‐ per unit. Calculated Sewer Capacity Fee Comparison of Present and Calculated Sewer Fees 1 EDU (likely a 3/4-inch meter size) 16 •Currently no capacity fee is charged to a new connection within an ID area. Present Fees Calculated  Annexation Capacity $ (Capacity) Fee Fee Difference $5,986 $6,400 $414 Annexation Fees 17 Annexation Fees Purpose: To bring equity to existing customers who have paid the general tax and availability fees into the system over the years and those that have not. Anyone outside of the service area or ID areas that annexes into the system is subject to pay these fees These are a one-time fee to pay into the system, a share equal to the value to the past fees and taxes paid by others Calculation: The fee is determined by accumulating the past taxes and availability fees, bringing them into current day dollars (applying CPI), and dividing by current EDUs to determine the “buy-in” share per EDU. 18 Water Annexation Fee By Meter Size 19 Present Water Annexation Fee Meter Annexation Size Fee 3/4" $1,622 1" 4,056 1-1/2" 8,112 2" 12,979 3" 25,958 4" 40,559 6" 81,118 8" 129,789 10" 186,571 •Currently, there is not a similar annexation fee for sewer; part of this study. Water and Sewer Annexation Fee 20 •Under current policy: Sewer annexation fees are collected only for new customers connecting to the system and being added into an ID area. •New connections to the sewer system already within an ID area do not pay the annexation fee. They have already been paying availability fees and debt. Calculated Sewer Annexation Fee Number of Capacity EDUs Fee 0.38 $387 0.60 611 1.00 1,018 1.20 1,222 0.70 713 5.00 5,090 15.00 15,270 25.00 25,450 40.00 40,720 Calculated Water Annexation Fee Meter Annexation Size Fee 3/4" $1,777 1" 4,443 1-1/2" 8,885 2" 14,216 3" 28,432 4" 44,425 6" 88,850 8" 142,160 10" 204,355 Comparison of Present and Calculated Fees for 1 EDU 21 New water connections – same as previously implemented New sewer connections inside the sewer ID areas should pay their share of portions of the sewer system rate funded over the years Customers outside the sewer ID areas should pay their buy-in share of availability fees and system capacity costs by paying both fees Utility Service Capacity New Annex. Capacity New Annex. $ Area Fee Supply Fee Fee Total Fee Supply Fee Fee Total Difference Water $8,237 $949 $1,622 $10,808 $7,984 $989 $1,777 $10,750 ($58) Sewer in ID area $0 $0 $0 $0 4,092      $0 $0 $4,092 $4,092 Sewer Out of ID $5,986 $0 $0 $5,986 $6,400 $0 $1,018 $7,418 $1,432 Present Fees Calculated Fees Summary and Next Steps •Capacity fees are an equitable method to finance the cost of growth and expansion facilities •Updated fees reflect the District’s current costs and value of capacity •Full Board presentation September 3rd 22 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: September 3, 2014 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 2014 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2014 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2014 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 2014 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 8-6-14.doc Board of Directors, Workshops and Committee Meetings 2014 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 7, 2014 February 5, 2014 March 11, 2014 April 8, 2014 May 7, 2014 June 4, 2014 July 2, 2014 August 6, 2014 September 3, 2014 October 1, 2014 November 5, 2014 December 3, 2014 January 21, 2014 February 19, 2014 March 17, 2014 April 16, 2014 May 21, 2014 June 18, 2014 July 16, 2014 August 20, 2014 September 17, 2014 October 15, 2014 November 19, 2014 December 17, 2014 SPECIAL BOARD MEETINGS: BOARD WORKSHOPS: STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 3, 2014 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Informational Item – Fourth Quarter Fiscal Year 2014 Capital Improvement Program Report GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) accept the Fourth Quarter Fiscal Year 2014 Capital Improvement Program (CIP) Report for review and receives a summary via PowerPoint presentation (see Attachment C). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Board about the status of all CIP project expenditures and to highlight significant issues, progress, and milestones on major projects. ANALYSIS: To keep up with growth and to meet our ratepayers' expectations to adequately deliver safe, reliable, cost-effective, and quality water, each year the District staff prepares a Six-Year CIP Plan that identifies the District’s infrastructure needs. The CIP is comprised of four categories consisting of backbone capital facilities, replacement/renewal projects, capital purchases, and developer's reimbursement projects. 2 The Fourth Quarter Fiscal Year 2014 update is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget of $13.9 million. Expenditures through the Fourth Quarter totaled approximately $8.5 million. Approximately 61% of the Fiscal Year 2014 expenditure budget was spent (see Attachment B). The expenditures versus forecast for Fiscal Year 2014 were influenced in part by the changes in the economy, external agency driven projects, as well as budgeting flexibility for “Just in time” delivery for District projects as noted below. 1. A majority of the projects contained in the annual CIP budget are multi-year projects that required the project manager to forecast how expenditures would occur over several future fiscal years. Development of the Fiscal Year 2014 budget occurred approximately sixteen months in advance of the fiscal year’s completion. 2. The FY 2014 CIP budget contained Developer reimbursement projects and District transmission projects that were programmed into the budget based on the Developer timelines for project delivery. Changes in the economy influenced Developer decisions on when to implement these projects. Staff worked with the Developers to incorporate the best project delivery information into the budgeting process, however, as the economic climate changed during this fiscal year, Developers revised their project delivery schedules. 3. Fifteen (15) percent of the FY 2014 CIP budget consisted of projects that were driven by external agencies including the County of San Diego, the City of Chula Vista, Caltrans, and the San Diego Association of Governments. 4. The CIP also contained a number of projects that experienced reprioritization during the course of this fiscal year. The Otay Mesa Desalination Conveyance and Disinfection System project is an example of this concept, as the District worked with Mexico, California State agencies, and United States Federal agencies on moving the project forward. FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. 3 STRATEGIC GOAL: The Capital Improvement Program supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM/RP:jf P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2014\Q4\Staff Report\BD 09-03-14, Staff Report, Fourth Quarter FY 2014 CIP Report, (DM-RP).docx Attachments: Attachment A – Committee Action Attachment B - Fiscal Year 2014 Fourth Quarter CIP Expenditure Report Attachment C – Presentation ATTACHMENT A SUBJECT/PROJECT: Various Informational Item – Fourth Quarter Fiscal Year 2014 Capital Improvement Program Report COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a Committee Meeting held on August 14, 2014, and the following comments were made:  Staff provided a PowerPoint presentation to the Committee and indicated that the expenditures through the fourth quarter of FY 2014 totaled approximately $8.5 million, which is about 61% of the District’s fiscal year budget.  Staff indicated that the District’s FY 2014 CIP budget consists of 63 projects that total $13.9 million and is divided into four categories: o Capital Facilities= $4.4 million o Replacement/Renewal= $7.7 million o Capital Purchases= $1.6 million o Developer Reimbursement= $0.2 million  The PowerPoint presentation included the following: o Total Life-to-Date Expenditures o CIP Budget Forecast vs. Expenditures o Annual CIP Expenditures vs. Budget o Factors that Influence CIP Expenditures o Major CIP Projects o CIP Projects in Construction o Construction Contract Status of projects, contract amount with allowances, net change orders, and percent of project completion o Consultant Contract Status of contract amounts, approve payments to date, change orders, dates when contracts were signed and the end date of contracts  Staff provided a slide that showed how annual expenditures over the five-year period from FY 2009 to FY 2014 ranged from 57% to 78% of the fiscal year budgeted amount. Expenditures for FY 2014 is projected at 61%.  Staff discussed factors that influenced the CIP expenditures during the fiscal year. Changes in the economy, external agency driven projects, and budgeting flexibility for “Just in time” delivery for District projects found to influence the rate of expenditure. Details of these influential factors are provided on page 2 of the staff report.  It was also discussed that a majority of projects in the annual CIP budget are multi-year projects that require the project manager to forecast how expenditures will occur over several future fiscal years. Development of the fiscal year budget occurs on average sixteen (16) months in advance of that fiscal year’s completion.  Staff provided an update of the following: o 624-2 Reservoir Interior/Exterior Coating & Upgrades. Staff indicated that this project has already been tested and placed into service as of July 2014. o 927-1 Recycled Water Reservoir Cover and Liner Replacement was completed and placed into service on June 30, 2014. o SR-11 Utility Relocations Sequence I project will relocate existing water to support the construction of SR-11 being performed by Caltrans. Staff indicated that this project is going through submittal review and stated that construction began in July 2014. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an informational item. FISCAL YEAR 2014 4thQUARTER REPORT (Expendituresthrough6/30/2014) ($000) CIPNo. p2083 P2190 P2267 P2403 P2434 P2451 P2466 P2486 P2511 P2514 P2528 P2537 P2539 P2541 P2542 P2543 P2544 R2028 Description CAPITAL FACILITYPROJECTS PS -870-2PumpStationReplacement(28,000GPM) PL-10-Inch,1485Zone,JamulHighlands 36-InchMainPumpoutsandAir/VacuumVentilationInstallations PL-12-Inch,624Zone,HeritaqeRoad-Olympic/OtayValley RanchoDelReyGroundwaterWellDevelopment OtayMesaDesalinationConveyanceandDisinfectionSystem RegionalTrainingFacility AssetManagementPlanConditionAssessmentandDataAcquisition OtayInterconnectPipeline PL -30-Inch,980Zone,HunteParkway-ProctorValley/UseArea 30-InchPotableWaterPipelineManifoldat624Reservoirs OperationsYardPropertyAcquisitionImprovements SouthBay BusRapidTransit(BRT)UtilityRelocations 624 PressureZonePRSs 850-3ReservoirInteriorCoating 850-1 ReservoirInterior/ExteriorCoating 850-2ReservoirInterior/ExteriorReservoirCoating RecPL -8-Inch,680Zone,HeritageRoad-SantaVictoria/OtayValley R2042 IRecPL-8-Inch.927Zone,RockMountainRoad-SR-125/EastLake R2047 R2048 R2058 R2077 R2087 R2091 R2107 R2108 R2110 S2039 S2043 P2366 P2382 P2440 RecPL -12-Inch,680Zone,LaMediaRoad -Birch/RockMountain RecPL -OtayMesa DistributionPipelinesandConversions RecPL-16-Inch,860Zone,AirwayRoad -OtayMesa/Alta RecPL -24-Inch,860Zone.AltaRoad-AltaGate/Airway RecPL -24-Inch.927Zone.WuesteRoad -Olympic/OtayWTP RecPS-927-1Pump StationUpgrade(10,000GPM)andSystem Enhancements RWCWRF ScreeningCompactorandChlorineInjectorsEnclosure Res-927-1 ReservoirCoverReplacement RecPS-927-1Optimizationand PressureZonemodifications HiddenMountainLiftStationEnclosure RWCWRF SludgeHandlingSystem TotalCapitalFacilityProjects REPLACEMENT/RENEWALPROJECTS APCD EngineReplacementsandRetrofits SafetyandSecurityImprovements I-905UtilityRelocations Project Manager Marchioro Martin Vasquez Martin Marchioro Kennedy Coburn-Boyd Zhao Marchioro Martin Marchioro Almgren Cameron Marchioro Cameron Cameron Cameron Martin Martin Martin Martin Martin Beppler Cameron Martin Stalker Martin Marchioro Stalker Beppler Total: Rahders Ramirez Marchioro FISCALYEAR-TO-DATE,06/30/14 FY 2014 Budget $540 5 100 1,500 14 75 600 130 50 80 300 10 - - - 100 100 135 5 250 60 100 150 8 50 4,362 5 500 10 Expenses $316 - - 9 932 4 24 306 71 16 29 207 - - - - 5 1 61 1 173 29 1,064 63 7 37 3,355 31 116 4 Balance $224 - 5 91 568 10 51 294 59 - 34 51 93 10 - _ - - - 95 99 74 4 77 31 (964) 87 1 13 1,007 (26) 384 6 Expenseto Budget% 59% 0% 0% 0% 9% 62% 29% 32% 51% 55% 0% LIFE-TO-DATE,06/30/14 Budget $12,581 228 435 925 8,700 30,000 300 1,090 37,300 1,815 7,000 32%I 300 36% 69% 0% 320 600 440 0%475 0% 0% 0% 0% 5% 1% 45% 20% 69% 48% 1064% 1075 600 140 450 2,200 3,500 4,500 7,000 2,130 130 1,400 42%!150 88% 74% ■Hum 620% 23% 40% 37 1,500 127,321 3,488 3,397 1600 Expenses $928 3 234 3,607 2,561 285 818 1,980 1.740 18 37 29 207 _ - _ - - _ 475 1.340 2.804 1,032 2,068 101 1,064 63 37 37 21,468 2,513 2,019 1.584 Expenseto Balance Budget% $11,653 225 201 925 5093 27,439 15 272 35,320 75 6,982 263 291 393 440 475 1,075 600 140 450 1,725 2,160 1,696 5,968 62 29 336 87 1,463 105,853 975 1,378 16 7% Comments Projectscheduleadjustedtoadda3D modelto theconsultant'sscopeofwork.Value engineeringworkshop isscheduledforAugust 2014. 1%|NobudqetforFY2014. 54%IProjectmovedtoFY2015. 0%INobudqetforFY2014. 41% 9% 95% 75% 5% 96% Desiqnisonhold. TheProjectschedulehasbeenadjustedtomatch proqresswiththeRosarttoBeachDesalProiect Proiectisonhold. Theassetmanagementdecision-makingsoftware willbepurchasedinFY2015. EnvironmentalsubconsultantwillamendEIRto ncludenewalignment.Desiqnisonhold. Constructioncompleted.Claimsresolutionwork scompleted. 0%No budqetforFY2014. 12%'Projectisproqressinqto30%desiqn 9%!SANDAGdrivenoroiect.Designisat90%. 35% ConstructionbidswererejectedattheJuly3, 2014Boardmeeting.Projecttobere-bidata futuredate. 0%iProjectmovedtoFY2016. 0%NobudqetforFY2014. 0%INobudqetforFY2014. 0%'NobudqetforFY2014 0%NobudqetforFY2014. 0%NobudqetforFY2014. 22%Developerdrivenproject. 38%Developerdrivenproject Projectisonholdas aresultofthetemporary 62%recycledwatermoratorium. Projectisonholdas aresultofthetemporary 15%recycledwatermoratorium. 97% 78% 76% 42% Constructioncompleted.Claimsresolutionwork iscompleted. TheremaininqbalancewillbeusedinFY2015. Projectwasaccelerated.Construction completed. Distributionsystem improvementscompleted; however,pump station controlstrategy improvementspostponeduntilFY2015. 100%'Proiectcompleted. 2% iiilKIM 72% 59% Projectisonholdpendinginternalreviewand outcomeofMetrocostanaysisofthe PointLoma PermitRenewalUpqrades. Duetodelaysinmanufacturing,$16,500willbe movedtoFY2015budqet. $83Kinsystemupgradeswerecompletedbythe endofFY2014.Theremaining balancewillbe expensed inphaseprojectsduringFY2015and forward. StaffanticipatesthatCaltranswillissuean additional$33,493credittotheDistrict;however, the$33kcreditonholdispendingCaltrans' receiptoffinalaccountingnumbersfromtheCity 99%ofSanDiego'ssewercontractor Y:\Board\CurBdPkg\ENGRPLAN\2015\BD09-03-14\FY2014FourthQuarterCIPReport(Dan)\COMMENTS-FY144thqtrexpjdma FISCALYEAR 2014 4th QUARTER REPORT (Expendituresthrough 6/30/2014) ($000) CIPNo. _p2453 P2477 P2485 P2493 P2494 P2495 P2496 P2504 P2507 P2508 P2513 P2515 P2518 p2519 P2520 P2521 P2529 P2530 P2531 P2532 P2533 P2534 P2535 P2538 R2109 R2111 Description SR-11 UtilityRelocations Res-624-1ReservoirCoverReplacement SCADA CommunicationSystemandSoftwareReplacement 624-2ReservoirInterior/ExteriorCoatinq MultipleSpeciesConservationPlan SanMiquelHabitatManaqement/MitiqationArea OtayLakesRoad UtilityRelocations RequlatorvSiteAccessRoadandPipelineRelocation EastPalomarStreetUtilityRelocation PipelineCathodicProtectionReplacementProqram EastOrangeAvenue BridgeCrossing 870-1ReservoirPaving 803-3ReservoirInterior/ExteriorCoatinq 832-2Reservoirinterior/ExteriorCoating MotorolaMobileRadioUpgrade LarqeMeterVaultUpqradeProqram 711-2 ReservoirInterior&ExteriorCoating 711-1 ReservoirInterior&ExteriorCoatinq 944-1 ReservoirInterior&ExteriorCoatinq 944-2ReservoirInterior&ExteriorCoatinq 1200-1 ReservoirInterior&ExteriorCoating 978-1 ReservoirInterior&ExteriorCoatinq 458-2ReservoirInteriorCoating Administrationand OperationsBuildingFireSprinklerReplacement Proqram SweetwaterRiverWoodenTrestleImprovementfortheRecycledWater Forcemain RWCWRF -RAS Pump Replacement Project Manager Marchioro Martin Stalker Cameron Coburn-Boyd Coburn-Boyd Martin Cameron Cameron Marchioro Cameron Almqren Cameron Cameron Martinez Mendez- Schomer Cameron Cameron Cameron Cameron Cameron Cameron Cameron Cameron Beppler Beppler FISCALYEAR-TO-DATE,06/30/14 FY2014 Budget 125 50 540 1,550 60 140 70 325 230 60 300 490 125 335 30 105 - - 5 5 - 345 100 100 100 Expenses 74 31 400 1,451 12 138 24 13 337 46 142 96 116 376 12 23 7 8 - - 7 22 32 57 Balance 51 19 140 99 48 2 46 312 (107) 14 158 394 9 (41) 18 82 - (2) (3) 338 78 68 43 Expense to Budget % 59% 62% 74% 94% 20% LIFE-TO-DATE,06/30/14 Budget Expenses 2,250 1,000 1,846 1,950 887 99%2,040 34%325 4% 147% 77% 47% 20% 93% 112% 40% 22% 0% 0% 140% 160% 0% 0% 2% 22% 32% 57% 900 300 1,350 550 750 775 100 600 600 725 175 725 325 225 425 400 350 100 233 927 1,168 1,467 811 1,032 300 327 620 49 1.307 153 626 645 77 219 _ _ 7 8 - - 14 22 32 57 Balance 2.017 73 678 483 76 1.008 25 573 280 251 43 397 124 130 23 381 600 725 168 717 325 225 411 378 318 43 Expenseto Budget%Comments 10% 93% 63% 75% 91% 51% 92% 36% 69% 16% 97% 28% 83% 83% 77% 37% 0% ConstructioncontractawardedJanuary2014; however,constructionscheduleistiedtolarge Caltrans'freewayproject.Majorityofwater relocationconstructionanticipatedinFY2015. ProjectacceptedbytheDistrictonJuly1,2013. Thetwo-yearcontractwarrantywillexpireonJuly 1,2015. Spendingwasdelayedduetodelaysinthe SCADA ReplacementandSouthDistrictRadio Installationprojects. Constructionis95%complete.Project acceptanceanticipatedfortheendofJuly2014. ProjectonholdFY2014,butworkwillbegin aqaininFY2015. Thisisacontinuingproject.FiscalYearbudget spentasexpected Constructionissubstantiallycompleted.Project acceptancebytheDistictispendingtheCityof ChulaVista'sacceptanceofthework. Projectison hold. Caltransdrivenproject.Utilityagreementsarein placeforreimbursement.Anticipatedcompletion inJuly2015. PDR completedJune30,2014.Finaldesignof 14-inchforcemaincathodicprotectionrehabwill becompletedto90%levelbyAuqust2014. Projectcompleted. Designcompleted.Constructiontobeginin November2014. Constructioniscomplete.Projectisinwarranty period. Constructioniscomplete.Projectisinwarranty period. $35KwasaddedtoFY2015foranewproject totalof$135K.Theadditionalfundsareto providehandhelddeviceswithincreasedrange durinqanemqerencyresponse Retrofitofthevaultsitesfinishedunderbudget. Afterinspectionsandreviews, theamountofwork neededwaslessthanexpected.Anyadditional workwillbemovedtoaworkorderandthisCIP willbeclosedthisFiscalYear NobudqetforFY2014 0%NobudqetforFY2014. Design90%completed.Constructiontobeginin 4%November2014. Design90%completed.Constructiontobeginin 1%November2014 0%NobudqetforFY2014. 0%NobudqetforFY2014 Design90%completed.Constructiontobeginin 3%November2014. Theproject'sscopewasmodifiedfrom afull replacementtorepairandtreatment.Thiswill significantlyreducethecost.Repairsare complete.Treatmentsystemtobeinstalledin 6%July2014. Preliminarydesignreportisunderwaywithdraft dueAugust2014.Remainingbalancemovedto 9%FY2015. 57% 30%designcompletedinJune2014.Final designanticipatedinSeptember2014 RemaininqbalancemovedtoFY2015 Y:\Board\CurBdPkg\ENGRPLAN\2015\BD09-03-14\FY2014FourthQuarterCIPReport(Dan)\COMMENTS-FY144thqtrexp_dma.xlsx Page2of3 FISCAL YEAR 2014 4thQUARTER REPORT (Expendituresthrough6/30/2014) ($000) CIPNo. S2012 S2024 S2027 S2033 P2282 P2285 P2286 P2469 P2470 P2540 S2042 P2104 P2107 R2082 R2083 R2084 R2085 R2094 Description SanDiegoCountySanitationDistrictOutfallandRSD Outfall Replacement Campo RoadSewerMainReplacement Rancho SanDieqoPump Station Rehabilitation SewerSystem Rehabilitation TotalReplacement/RenewalProjects CAPITALPURCHASE PROJECTS VehicleCapitalPurchases OfficeEquipment andFurniture CapitalPurchases FieldEquipmentCapitalPurchases InformationTechnoloqyNetworkandHardware FinancialSystemEnhancements WorkOrderManaqementSystem Replacement SewerVehicleCapitalPurchases TotalCapitalPurchaseProjects DEVELOPER REIMBURSEMENT PROJECTS PL-12-Inch,711Zone,LaMedia Road -Birch/RockMountain PL-12-Inch.711Zone,RockMountainRoad-LaMedia/SR125 RecPL-24-Inch,680Zone,OlympicParkway-Villaqe2/Heritaqe RecPL-20-Inch 680Zone,HeritaqeRoad-Villaqe2/Olympic RecPL-20-Inch,680Zone.Villaqe2-Heritaqe/LaMedia RecPL-20-Inch.680Zone,LaMedia-State/Olympic PotableIrriqationMeterstoRecycledWaterConversions TotalDeveloperReimbursementProjects GRAND TOTAL Project Manager Kennedy Beppler Beppler Beppler Total: Rahders Payne Rahders Sequra Stevens Stevens Rahders Total: Martin Martin Martin Martin Martin Martin Martin Total: FISCAL YEAR-TO-DATE,06/30/14 FY2014 Budget 450 275 500 800 '"77736" 266 55 149 350 130 300 367 1,617 _ - 1 1 1 1 150 154 $13,863 Expenses 17 136 18 375 4,121 25 20 128 290 52 118 367 1,000 - - 38 38 $8,514 Balance 433 139 482 425 3,609 241 35 21 60 78 182 - 617 - - 1 1 1 1 112 116 $5,349 Expense to Budget% 4% 49% 4% 47% 9% LIFE-TO-DATE,06/30/14 Budget 3,550 5,500 2,900 6,000 47,008 5,021 36%589 86%I 1,758 83% 40% 39% 100% 62% 0% 0% 0% 0% 0% 0% 25% ■EC 25% 2,509 2,322 700 367 13,266 833 722 1,747 400 971 600 1,700 6,973 61%.$- Expenses Balance 834 181 57 607 17,896 2,900 524 1,291 1,675 1,671 118 367 8,546 1 1,603 1,604 $49,514 2.716 5,319 2 843 5,393 29,112 Expenseto Budget% 23% Comments ExpensesonprojectstheCountyplans,designs, andbuilds.Remainingbudgetwillbemoved to FY2015. Preliminarydesignreportisunderwaywithdraft 3%|dueinSeptember2014. 2% 10% 38% 70%designsubmittalreviewedinJuly2014. RemaininqbalancemovedtoFY2015. Designcompleted.Awaitingpermitsfromthe CountyofSanDiego.Constructiontobeginin November2014.Remainingbalancedmovedto FY2015 2,121 65 467 834 651 582 - Duetodelaysinmanufacturing,$175,877willbe 58%|movedtoFY2015budqet. 89%Expendituresunderbudget. 73% 67% 72% CIPcompleted. Toaccommodateabetterandmorethorough biddingprocessforthepurchaseoftheStorage AreaNetworkEquipment,$60K willbemovedto FY2015. Staffingchangesdelayedcontractorspending. 17%MoneywillbespentdurinqFY2015. 100%CIPcompleted. 4,720 833 722 1,747 400 970 600 97 5,369 $145,054 64% 0% 0% 0% 0% NobudgetforFY2014. NobudqetforFY2014. Developerdrivenproject.Nomajoractivity anticpatedforFY2014. Developerdrivenproject.Nomajoractivity anticpatedforFY2014. Developerdrivenproject.Nomajoractivity 0%ianticpatedforFY2014. Developerdrivenproject.Nomajoractivity 0%anticpatedforFY2014. 94%Projectcomplete. ■EL 23% 25% Y\Board\CurBdPkg\ENGRPLAN\2015\BD09-03-14VFY2014FourthQuartetCIPReport(Dan)\COMMENTS-FY144thqtrexp_dma.xlsx Page3of3 Otay Water District Capital Improvement Program Fiscal Year 2014 Fourth Quarter (through June 30, 2014) Attachment C 624-2 Reservoir Exterior Coating 06/06/14 Background The approved CIP Budget for Fiscal Year 2014 consists of 63 projects that total $13.9 million. These projects are broken down into four categories. 1.Capital Facilities $ 4.4 million 2.Replacement/Renewal $ 7.7 million 3.Capital Purchases $ 1.6 million 4.Developer Reimbursement $ 0.2 million Overall expenditures through the Fourth Quarter of Fiscal Year 2014 totaled $8.5 million, which is approximately 61% of the Fiscal Year budget. 2 Fiscal Year 2014 Fourth Quarter Update ($1,000) CIP CAT Description FY 2014 Budget FY 2014 Expenditures % FY 2014 Budget Spent Total Life-to- Date Budget Total Life-to-Date Expenditures % Life-to- Date Budget Spent 1 Capital Facilities $4,362 $3,355 77%$127,321 $21,468 17% 2 Replacement/ Renewal $7,730 $4,121 53%$47,008 $17,896 38% 3 Capital Purchases $1,617 $1,000 62%$13,266 $8,546 64% 4 Developer Reimbursement $154 $38 25%$6,973 $1,604 23% Total: $13,863 $8,514 61%$194,568 $49,514 25% 3 Fiscal Year 2014 Fourth Quarter CIP Budget Forecast vs. Expenditures 4 Annual CIP Expenditures vs. Budget 5 District Map of Major CIP Projects 6 CIP Projects in Construction 624-2 Reservoir Interior/Exterior Coating & Upgrades (P2493) Remove and Replace Deteriorating Reservoir Coating Structural Modifications Including Level Indicator Replacement and Anode Replacement $1.95M Budget Start: January 2014 Estimated Completion: July 2014 7 624-2 Reservoir Completed Exterior Coating 06/30/14 CIP Projects in Construction 927-1 Recycled Water Reservoir Cover and Liner Replacement (R2108) Removal and Replacement of the reservoir liner and cover $1.40M Budget Start: November 2013 Completion: June 30, 2014 927-1 Reservoir Completed Project 8 06/30/14 CIP Projects in Construction SR-11 Utility Relocations Sequence I (P2453) Relocate Existing Water Facilities to support SR-11 Construction $2.25M Budget Start: February 2014 Estimated Completion: July 2016 Aerial View of Project Location Future SR-11/Sanyo Avenue 9 Construction Contract Status 12 PROJECT TOTAL % R2091 944-1R Recycled Pump Station Upgrade & System Enhancements Sepulveda $1,099,423 $1,162,423 $90,505 8.2%$1,252,928 $1,252,928 7.8%100.0% Complete February 2014 R2108 927-1 Recycled Water Reservoir Cover and Liner Replacement Layfield $833,400 $873,400 $5,558 0.7%$878,958 $878,958 0.6%100.0%Complete June 2014 P2453 SR-11 Potable Water Utility Relocations - Sequence 1 Coffman Specialties, Inc.$947,380 $992,380 $0 0.0%$947,380 $0 -4.5%0.0%July 2016 P2493 624-2 Reservoir Coating Advanced Industrial Services $1,169,000 $1,199,000 $0 0.0%$1,180,770 $1,180,770 -1.5%100.0%July 2014 P2514 Hunte Parkway 30" Potable Water Installation Sepulveda $1,172,257 $1,212,257 $126,233 10.8%$1,312,508 $1,312,508 8.3%100.0%Complete June 2013 P2513 Orange Avenue/ I-805 12" Potable Water Installation Basile $767,000 $872,000 $19,290 2.5%$891,290 $891,290 2.2%100.0% Complete August 2013 P2518/ P2519 803-3 & 832-2 Reservoir Coating Advanced Industrial Services $876,900 $946,900 ($3,339)-0.4%$873,561 $873,561 -7.7%100.0% Complete December 2013 TOTALS:$6,865,360 $7,258,360 $238,247 3.5%$7,337,395 $6,390,014 1.1% CURRENT CONTRACT AMOUNT TOTAL EARNED TO DATE **THIS CHANGE ORDER RATE INCLUDES THE CREDIT FOR UNUSED ALLOWANCES *NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT CIP NO.PROJECT TITLE CONTRACTOR BASE BID AMOUNT CONTRACT AMOUNT W/ ALLOWANCES % CHANGE ORDERS W/ ALLOWANCE CREDIT** % COMPLETE EST. COMP. DATE NET CHANGE ORDERS LTD* Consultant Contract Status 11 Consultant Contract Status 12 Consultant Contract Status 13 QUESTIONS? 14 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 3, 2014 PROJECT: DIV. NO.: ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Assistant Chief Admin/IT Services Geoff Stevens, Chief Information Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: REDESIGN OF DISTRICT’S WEBSITE GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To inform the Board of the District’s intent to redesign the current public facing website. ANALYSIS: Continuing our effort to keep the District’s web presence and technology current, IT staff commenced the redesign task of the District’s public facing website. The new website will provide a customer-centric layout that facilitates user-friendly navigation and social media benefits. The new website will continue to address the increasing technological expectations of Otay’s customer base. In addition, the new website will enhance Otay’s ability to provide extensive information and services without requiring physical interaction with customers. 2 The redesign effort is being conducted by internal staff and through a small professional as-needed services agreement of $24,000, which is also used for the District’s Microsoft server support. Cost to host the District’s website externally will remain at $125 per month. The monthly hosting fee includes a server platform, operating system, database, and backup support. No additional cost will be incurred. The new site will provide additional mobile functionality, improved social media interactivity, enhanced visual elements, standardized content, optimized performance, and improved security. Staff continues to hold group meetings with internal stakeholders to obtain feedback on appearance, functionality and presentation. Prior to launch, specific staff will be trained on content administration. Staff expects to launch the new website by the beginning of September 2014. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. This is an informational item only. STRATEGIC GOAL: N/A. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Report ATTACHMENT A SUBJECT/PROJECT: REDESIGN OF DISTRICT’S WEBSITE COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on August 18, 2014 and the following comments were made:  Staff has redesigned the district’s public facing website and it is anticipated that the new site will be launched in the early part of September 2014.  The new website was developed in tandem with the current website and features a new responsive design that will adapt the page layout and content to the size of the user’s display or mobile device, which will improve the accessibility of content on the site for mobile devices, tablets, and traditional desktop computers.  The homepage was redesigned, the content has been standardized, the informational architecture was improved, and the over interactivity has been increased.  The project to redesign the District’s website was started about three (3) months ago with input and assistance from different departments. Staff also benchmarked both commercial companies and government agencies in identifying and establishing website governance.  The District’s new website will provide a customer centric layout that facilitates navigation to key services that will help address the increasing technological expectations of Otay’s technically savvy customer base.  Features of the new site include:  Increased responsiveness  New Layout Redesign  In-Place Video  Simple color schemes  High definition and transitional imagery  Heavier focus on Mobile technology  It was noted that updating or changing content on the website is also easier which will make it easier to maintain.  Staff shared that they found that if video is placed on the homepage versus the YouTube page, the public will view it. Video that was posted on the homepage received 11,000 views versus a few views from the YouTube page. Staff feels the more information that is placed on the homepage, the more information will be received by the public.  It was also discussed that there was an intent to have an automated language translator icon (English to Spanish, etc.) provided on the website, however, there is concern that google and other automated translation services don’t do a very good job with the translations. Instead, the District will have the articles translated which will provide more control over the translations. It was indicated that the customer web pages have been translated into Spanish and there is a limited number of articles available in Spanish. Staff will add to this as the District has more resource options (in-house, an outside vendor and its current Public Relations firm) for translating information to Spanish. Upon completion of the discussion, the committee received staffs’ report and supported presentation to the full board as an informational item. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 3, 2014 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:  Small, Minority and Disadvantaged Business Outreach – As part of its continued commitment to vendor development, the District, through its partnership with the San Diego Contracting Opportunities Center, is holding a “Doing Business with Otay Water District” seminar September 16th for small, minority and disadvantaged businesses seeking opportunities in government contracting.  Purchase Orders – There were 130 purchase orders processed in July with an adjusted total value of $434,350. Thirty-four percent of the value was on blanket orders, exceeding Purchasing’s 15% strategic plan objective. Human Resources:  Employee Recognition Luncheon – Mark your calendars to attend the District’s Recognition Luncheon and BBQ on Wednesday, September 24th, at 12:00 p.m. at the Operations Center. Nominations for “Outstanding Performance” Awards are under review and recipients of the awards will be presented at the Recognition Luncheon.  Recruitments – HR is currently recruiting for Systems Operations Manager and preparing to recruit for a Pump Mechanic.  New Hires/Promotions – There were three new hires in the month of August: Utility Worker II, Reclamation Plant Operator and Senior Civil Engineer. Also, one Customer Service Representative transferred to the IT department as a Data Systems Technician. In addition, the District continues to participate in the San 2 Diego County Water Authority Intern Program and an Intern started in August. Safety & Security:  Security Alarm Testing – District-wide security alarm testing and inspection has been completed for 28 of the District’s facilities. Some of the security enhancements made include: 1. Implemented access and gate control at key District facilities. 2. Upgraded/reprogrammed burglar and fire alarm systems and components. 3. Implemented alarm wireless radio communication. 4. Upgraded solar alarm power to AC. 5. Electrical gate safety upgrades. 6. Remote video capability at Treatment Plant.  Safety Programs – Focused on high hazard work areas and reviewed/updated key safety programs. Programs reviewed include: Confined Spaces, Fall Protection, Heat Illness Prevention, Hazard Communications, and Chemical Safety Data Sheets. This process supports the District’s Illness and Injury Prevention Program, which provides the foundation for the District’s safety & health program.  Emergency Response Plan – This plan is undergoing a refinement/streamlining process. The goal is to make the complexity and scope more user friendly and easy to use. In support of these programs and as part of the District’s Emergency Response Plan training program, staff completed Incident Command System (ICS) 200 and 800 courses. INFORMATION TECHNOLOGY AND STRATEGIC PLANNING:  Waste Water Reporting via District’s Website – In conjunction with Customer Service, IT has enabled a Waste Water Reporting function within the District’s website. Customers will be able to electronically submit wastewater concerns. Information will be automatically collected throughout the day and be delivered electronically to customer service staff for appropriate action. FINANCE:  Compliance with State Water Resources Control Board Reporting Requirement – Beginning August 15th, each public water system is required to submit monthly water use data to the Drinking Water Information Clearing House. This data is being collected to assist the state in the adoption of emergency drought regulations and will be made available to the public. Staff has submitted the District’s data for the months of June and July 2013 and 2014. 3  Standard & Poor’s Rating Review – On August 1, 2014, Standard & Poor’s (S&P) affirmed the District’s AA rating and revised its outlook to stable from negative. The outlook revision was based on S&P’s view of the District’s improved financial performance during the past two fiscal years, which boosted debt service coverage to a level that they consider strong from a level that they consider good. S&P also noted the economy, stable and diverse customer base, rate increases that pass- through rising wholesale water costs, and strong liquidity as strengths of the District. Those strengths were partly offset by S&P’s view of the District’s reliance on expensive imported water supply.  Special Assessment Process - As part of an annual process, approximately $1.2 million in availability charges has been placed on customers’ tax bills which will be collected through San Diego County’s annual property taxes. The District has been collecting water availability charges since 1963 and sewer availability charges since 1969.  Water Waste Tracking - The District has reinstated its efforts to reach out to customers and property owners who violate the Level 2 Drought Alert. With this process in place, the District notifies customers via letters, e-mail, or site visits, based on the severity of the water waste. The District concentrates its efforts on repeated violations and those areas with the most waste. To date the District has contacted 29 customers (residential) and the main reason for the contact is for over watering their landscapes.  Financial Reporting: o For the twelve months ended July 31, 2014, there are total revenues of $8,068,741 and total expenses of $9,034,855. The expenses exceeded revenues by $ $966,114. It was anticipated in the budget that July would have a variance of $1,143,293. The actual variance came in at $966,114, which is better than budget. The main causes of the year-to-date variance are higher water sales in July offset by the timing of the receipt of tax revenues and having three pay periods in July. o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of July 31, 2014 total $82,541,148.60 with an average yield to maturity of 0.59%. The total earnings year-to-date are $ $42,240.67. ENGINEERING AND WATER OPERATIONS: Engineering:  SR-11 Potable Water Utility Relocations: This project consists of two (2) groups of potable water relocations to accommodate 4 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 completed work in Sanyo Avenue to isolate and remove a portion of the existing 12-inch main. The first group is on schedule and within budget and is anticipated to complete in August 2016. The second group of relocations is currently in the design phase. A new utility agreement for relocation of an existing 6-inch potable water blow off will be presented to the September Committee/October Board Meetings. The second group is on schedule and within budget. (P2453)  870-1 Reservoir Access Road Paving: This project consists of paving the existing perimeter dirt road around the 870-1 Reservoir. The project was advertised on July 18, 2014, and bids were opened on August 19, 2014. This item will be presented at the October 2014 Board Meeting to award a construction contract. The project is on schedule and within budget. (P2515)  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 American Water Works Association and County Health Department standards. The project was advertised on July 23, 2014, and bids were opened on August 20, 2014. This item will be presented at the October 2014 Board Meeting to award a construction contract. The project is on schedule and within budget. (P2531, P2532, P2535)  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 design of the project is completed. On August 5, 2014, the County of San Diego issued an excavation permit for the project identifying the County’s requirements for paving and traffic control procedures. The project was advertised on July 31, 2014. The bid opening is scheduled for September 11, 2014. This item will be presented at the November 2014 Board Meeting to award a construction contract. The project is on schedule and within budget. (S2033)  Rosarito Desal: Staff, together with District’s consultants and representatives from NSC Agua, held two telephone conference 5 calls on July 2, 2014 and July 16, 2014 to discuss the project and coordinate on complying with the California Water Resources Control Board Drinking Water Program regulatory requirements. On July 8, 9, and 10, 2014, the NEPA Coordinator for the US Department of State attended meetings with staff, District Consultants, NSC Agua, and Federal and State regulatory agencies. The NEPA Coordinator also visited the proposed conveyance alignments in the United States, and the Desalination Plant site and the power plant intake and outlet structures in Rosarito, Mexico. (P2451)  870-2 Pump Station Replacement: This project consists of a new pump station to replace the existing Low Head 571-1 and High Head 870-1 Pump Stations. The project is currently transitioning from the preliminary design phase to the 30% design level. The design consultant’s (Carollo) 30% design deliverable will be reviewed by staff and Value Engineering at a Constructability Review, and by the Construction Management Consultant (RBF). A Value Engineering Workshop with Carollo, RBF, and District staff will be held August 25, 2014. The project in on schedule and within budget. (P2083)  Temporary Moratorium on the Installation of New Recycled Water Facilities on Otay Mesa: In accordance with the July 2, 2014 Board approved temporary moratorium on the installation of new recycled water facilities on Otay Mesa, staff is working with Developers to close out or suspend development of new recycled water facilities on Otay Mesa. Notification of the temporary moratorium has been posted to the District’s Public Services website. Additionally, project specific correspondence has been sent for all active recycled water Developer projects on Otay Mesa. Staff will provide an update report to the Board on the various impacts and/or observations at the November board meeting.  Water Facilities Master Plan Update: This project will update the District’s existing Water Resources Master Plan that was previously updated in October 2008 and revised in May 2013. The consultant (Atkins) is currently analyzing recent San Diego County Water Authority supply data and District meter billing data to build future demand projections and supply scenarios coordinated with the separate Rosarito Desalination project. The project is on schedule and within budget. (P1210)  Approximately 887 linear feet of both CIP and developer pipeline was installed in July 2014. The Construction Division performed quality assurance and quality control for these pipelines.  For the month of July 2014, the District sold 4 meters (33.5 EDUs) generating $265,621 in revenue. Two of the meters sold 6 were 3-inch master meters for the Lake Point Project located on Olympic Parkway and will supply water to this 220 unit multi- family development. Projection for this period was 12.8 meters (15.3 EDUs) with budgeted revenue of $140,758. Total revenue for Fiscal Year 2015 is $265,261 against the annual budget of $1,689,093. Water Operations:  Total number of potable water meters is 49,283.  The July potable water purchases were 3,491.9 acre-feet which is 12.1% above the budget of 3,114.6 acre-feet. The cumulative purchases through July is also 3,491.9 acre-feet which is 12.1% above the cumulative budget of 3,114.6 acre-feet.   The July recycled water purchases and production was 584.5 acre-feet which is 29.3% above the budget of 452.2 acre-feet. The cumulative production and purchases through July is also 584.5 acre-feet which is 29.3% above the cumulative budget of 452.2 acre-feet. 7  Recycled water consumption for the month of July is as follows: o Total consumption was 541.1 acre-feet or 176,263,208 gallons and the average daily consumption was 5,685,910 gallons per day. o Total recycled water consumption as of July for FY 2015 is 541.1 acre-feet. o Total number of recycled water meters is 707.  Wastewater flows for the month of July were as follows: o Total basin flow, gallons per day: 1,591,816. o Spring Valley Sanitation District Flow to Metro, gallons per day: 527,036. o Total Otay flow, gallons per day: 1,064,738. o Flow Processed at the Ralph W. Chapman Water Recycling Facility, gallons per day: 1,026,935. o Flow to Metro from Otay Water District, not including solids, was 37,845 gallons per day.  By the end of June there were 6,089 wastewater EDUs. 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 toSewer General Fund OPEB Trust Potable General Fund Sewer Replacement Total Expenses $ EXCESS REVENUES(EXPENSE) $ F:/MORPT/FS?015-0714 OT A Y WATER DISTRICT COMPARATNE BUDGET SUMMARY FOR ONE MONTH ENDED JULY 31, 2014 Annual YTD YTD Budget Actual Budget 45,669;500 $ 4,303,450 $ 4,004,900 8,826,600 1,033,480 1,007,900 2,145,600 230,235 201 ,000 12,337,500 937,699 935,000 10,936,200 926,988 926,500 870,300 88,823 86,900 80,785,700 7,520,675 7,162,200 3,007,700 231 ,684 233,000 51 ,500 5,840 4,300 1,150,600 94,000 95,900 301,800 24,000 25,200 1,947,800 119,620 140,200 3,763,700 21 ,221 18,900 77,400 5,500 6,500 553,800 46,200 46,200 91,640,000 $ 8,068,741 $ 7,732,400 34,521,500 $ 3,851,566 $ 3,636,800 1,601,500 172,034 167,150 1,901,400 156,046 156,100 1,792,200 148,658 148,700 4,741,200 390,176 390,200 701,400 49,833 49,800 1,800,000 151 ,445 151,400 47,059,200 4,919,757 4,700,150 2,838,400 314,428 312,200 19,747,600 1,968,910 2,076,400 3,619,800 422,200 459,675 5,009,200 299,760 318,669 410,000 30,000 34,200 2,538,900 211,600 211,600 3,530,000 294,200 294,200 3,270,200 272,500 272,500 705,000 58,800 58,800 553,800 46,200 46,200 647,100 53,900 53,900 1,583,800 132,000 132,000 127,000 10,600 10,600 91,640,000 $ 9,034,855 $ 8,981,093 $ {966,114~ $ {1,248,693~ Exhibit A YTD Variance Var% $ 298,550 7.5% 25,580 2.5% 29,235 14.5% 2,699 0.3% 488 0.1% 1,923 2.2% 358,475 5.0% (1 ,316) (0.6%) 1,540 35.8% (1,900) (2.0%) (1,200) (4.8%) (20,580) (14.7%) 2,321 12.3% (1 ,000) (15.4%) 0.0% $ 336,341 4.3% $ (214,766) (5.9%) (4,884) (2.9%) 54 0.0% 42 0.0% 24 0.0% (33) (0.1 %) {45~ {0.0%~ {219,607~ {4.7%~ (2,228) (0.7%) 107,490 5.2% -, 37,475 8.2% 18,909 5.9% 4,200 12.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $ (53 ,761) (0.6%) $ 282,580 8/26/2014 1 0:02 AM Par Investments Value Federal Agency Issues-Callable 53,735,000.00 Federal Agency Issues -Coupon 2,000,000.00 Certificates of Deposit -Bank 81 ,784.76 Local Agency Investment Fund (LAIF) 9,972,020.57 San Diego County Pool 15,270,913.59 Investments 81,059,718.92 Cash Passbook/CheckinPc (not included in yie d calculations) 1 ,654,130.83 Total Cash and Investments 82,713,849.75 Total Earnings _Jul}' 31 Month Endi~ ____ Current Year 42,240.67 Average Daily Balance 83,721,988.58 Effective Rate of Return 0.59% Reporting period 07/01/2014-07/31/2014 Run Date: 08/20/2014 -11 :01 OTAY Portfolio Management Portfolio Summary July 31, 2014 Market Book Value Value 53,639,233.30 53,737,258.26 1,999,000.00 2,002,411.56 81 ,784.76 81 ,784.76 9,974,999.71 9,972,020.57 15,192,000.00 15,270,913.59 80,887,017.77 81,064,388.74 1 ,654,130.83 1 ,654,130.83 82,541,148.60 82,718,519.57 Fiscal Year To Date --- 42,240.67 83,721,988.58 0.59% %of Portfolio Term 66.29 1,007 2.47 878 0.10 730 12.30 1 18.84 1 100.00% 690 1 690 Days to Maturity 834 756 539 1 1 572 1 572 YTM YTM 360 Equiv. 365 Equiv. 0.722 0.732 0.558 0.566 0.030 0.030 0.241 0.244 0.448 0.454 0.607 0.615 0.216 0.219 0.607 0.615 Portfolio OTAY AP PM (PRF _pM1) 7.3.0 Report Ver. 7.3.3b OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW July 31, 2014 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 of which was held on July 30, 2014. They went on to say: "In determining how long to maintain the current 0 to 114 percent target range for the federal funds rate, 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 developments. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored. " Despite the large drop in available interest rates, the District's overall effective rate of return at July 31, 2014 was 0.59%, which was 2 basis points above the previous month. At the same time the LAIF return on deposits has improved over the previous month, reaching an average effective yield of 0.244% for the month of July 2014. 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: July 31, 2014 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 $9.97 Million 8.02: Local Agency Investment Fund (Bonds) 100% 100% 0 8.03: Federal Agency Issues 100% 100% 67.38% 8.04: Certificates of Deposit 30% 15% 0.10% 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% 18.46% 12.0: Maximum Single Financial Institution 100% 50% 2.00% $55,739,670 67.4% OtayWater District Investment Portfolio: 07/31/2014 Total Cash and Investments: $82,718,520 $1,735,916 2.1% C Banks (Passbook/Checking/CO) •Pools (LA IF & County) CAgencies & Corporate Notes $25,242,934 30.5% Target: Meet or Exceed 100% of LAIF J!l 0.70 c: Cll E 0.60 ... Cll Cll > ..!: c: 0 E :I ... Cll 0:: Performance Measure FY-15 Return on Investment Month LA IF •Otay c Difference CUSIP Investment # Federal Agency Issues-Callable 3135GOXR9 3133EC6F6 3133EC7H1 3133EDKF8 313382YY3 3130AOVG2 3130A1SE9 3130A1RB6 3130A1RB6 3130A1Q84 3130A1XA1 3130A1ZX9 3130A25S1 3130A2HW9 3134G4PXO 3134G4WJ3 3134G4WH7 3134G54N2 3134G55T8 3134G56A8 3134G55X9 3134G56NO 3134G5A47 3134G5BL8 3136G1XZ7 3135GOYW7 2269 2258 2260 2291 2268 2281 2288 2289 2290 2292 2294 2296 2299 2303 2277 2284 2285 2293 2295 2297 2298 2300 2301 2302 2274 2276 Issuer Fannie Mae Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal National Mortage Assoc Federal National Mortage Assoc Average Balance Subtotal and Average Federal Agency Issues -Coupon 53,737,296.26 3135GOYE7 2286 Federal National Mortage Assoc Subtotal and Average 2,002,456.98 Certificates of Deposit -Bank 2050003183-6 2283 California Bank & Trust -------- Subtotal and Average 81,784.76 Run Date: 08/20/2014 -11 :01 OTAY Portfolio Management Portfolio Details -Investments July 31, 2014 Purchase Date 06/06/2013 12/05/2012 12/17/2012 04/29/2014 05/22/2013 02/25/2014 05/19/2014 05/15/2014 05/15/2014 05/08/2014 05/30/2014 05/22/2014 06/19/2014 07/07/2014 12/27/2013 03/19/2014 03/20/2014 05/28/2014 06/12/2014 06/16/2014 06/10/2014 06/26/2014 06/30/2014 07/17/2014 12/19/2013 12/04/2013 04/01/2014 01/22/2014 Par Value 2,000,000.00 3,000,000.00 3,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 53,735,000.00 2,000,000.00 2,000,000.00 81,784.76 81,784.76 Market Value 1,995,120.00 3,005,220.00 3,005,130.00 1 ,996,140.00 1 ,995,240.00 1,998,960.00 1,994,720.00 1,028,743.40 2,701 ,699.90 1,995,240.00 1,994,600.00 1,989,860.00 1,994,200.00 1,995,400.00 1,998,340.00 1,998,580.00 1,993,760.00 1,999,720.00 1,996,320.00 1,996,220.00 1,993,920.00 1,994,280.00 1,994,500.00 1 ,995,180.00 1,990,800.00 1,997,340.00 53,639,233.30 1,999,000.00 1,999,000.00 81 ,784.76 81,784.76 Stated Book Value Rate 2,000,000.00 3,000,000.00 3,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,002,258.26 53,737,258.26 2,002,411 .56 2,002,411 .56 81,784.76 81,784.76 0.550 0.350 0.340 0.550 0.350 0.700 1.000 1.020 1.020 1.010 0.650 1.050 0.700 0.660 0.500 0.625 0.900 0.750 0.700 1.000 0.810 1.000 0.650 1.220 0.670 0.750 0.625 0.030 Page 1 YTM Days to Maturity S&P 360 Maturity Date AA 0.542 767 09/06/2016 304 06/01/2015 381 08/17/2015 728 07/29/2016 570 02/22/2016 AA 0.345 0.335 0.542 AA 0.345 0.690 847 11/25/2016 0.986 1,022 05/19/2017 1.006 1,018 05/15/2017 1.006 1 ,018 05/15/2017 0.996 1,011 05/08/2017 0.641 756 08/26/2016 1.036 1 '117 08/22/2017 0.690 871 12/19/2016 0.651 798 10/07/2016 0.493 696 06/27/2016 0.616 780 09/19/2016 0.888 962 03/20/2017 0.740 850 11/28/2016 AA 0.690 864 12/12/2016 0.986 1,050 06/16/2017 0. 799 952 03/10/2017 0.986 1,060 06/26/2017 0.641 882 12/30/2016 1.203 1,173 10/17/2017 0.661 871 12/19/2016 0.685 847 11/25/2016 0.722 0.558 0.558 0.030 0.030 834 756 08/26/2016 756 539 01/22/2016 539 Portfolio OTAY AP PM (PRF _PM2) 7.3.0 Report Ver. 7.3.3b CUSIP Investment # Issuer Local Agency Investment Fund (LAIF) LA IF 9001 STATE OF CALIFORNIA LAIF BABS 2010 9012 STATE OF CALIFORNIA Subtotal and Average San Diego County Pool SO COUNTY POOL 9007 San Diego County Subtotal and Average Total and Average Run Date: 08/20/2014 -11 :01 Average Balance 9,197,732.45 16,228,975.80 83,721,988.58 OTAY Portfolio Management Portfolio Details -Investments July 31, 2014 Purchase Date Par Value Market Value 9,972,020.57 9,974,999.71 07/01/2014 0.00 0.00 9,972,020.57 9,974,999.71 15,270,913.59 15,192,000.00 15,270,913.59 15,192,000.00 81,059,718.92 80,887,017.77 Stated Book Value Rate 9,972,020.57 0.244 0.00 0.228 9,972,020.57 15,270,913.59 0.454 15,270,913.59 81,064,388.74 Page 2 YTM Daysto Maturity S&P 360 Maturity Date 0.241 0.225 --------- 0.241 0.448 --------- 0.448 0.607 572 Portfolio OTAY AP PM (PRF _PM2) 7.3.0 CUSIP Investment # Issuer Union Bank UNION MONEY 9002 STATE OF CALIFORNIA PETIYCASH 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 Run Date: 08/20/2014 -11 :01 Average Balance 0.00 83,721,988.58 OTAY Portfolio Management Portfolio Details -Cash July 31, 2014 Purchase Date Par Value 10,003.40 2,950.00 1,443,972.46 07/01/2014 27,891 .35 31,968.96 84,618.98 07/01/2014 51.89 07/01/2014 52,673.79 82,713,849.75 Market Value Book Value 10,003.40 10,003.40 2,950.00 2,950.00 1,443,972.46 1,443,972.46 27,891 .35 27,891 .35 31,968.96 31,968.96 84,618.98 84,618.98 51 .89 51.89 52,673.79 52,673.79 82,541 '148.60 82,718,519.57 Stated Rate S&P 0.010 0.250 0.010 0.010 Page 3 YTM Days to 360 Maturity 0.010 0.000 0.247 0.000 0.010 0.010 0.000 0.000 0.607 572 Portfolio OTAY AP PM (PRF _PM2) 7.3.0 CUSIP Investment# Fund Issuer Security Type: Federal Agency Issues-Callable 3134G4WJ3 2284 99 FHLMC 3134G4WH7 3134G4PXO 3134G54N2 3134G55T8 3134G5A47 3134G5BL8 3134G56NO 3134G56AB 3134G55X9 3136G1XZ7 3135GOYW7 3130A1Q84 3130A1SE9 3130A1 RB6 3130A1XA1 3130A2HW9 3130A1ZX9 3130A25S1 3130A1HX9 3130A1RB6 313382YY3 3130AOVG2 3133EC7H1 3133EDKF8 3133EC6F6 3135GOXR9 2285 2277 2293 2295 2301 2302 2300 2297 2298 2274 2276 2292 2288 2290 2294 2303 2296 2299 2287 2289 2268 2281 2260 2291 2258 2269 Run Date: 08120/2014 -11:10 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 FHLMC FHLMC FHLMC FHLMC FHLMC FHLMC FHLMC FHLMC FHLMC FNMA FNMA FHLB FHLB FHLB FHLB FHLB FHLB FHLB FHLB FHLB FHLB FHLB FFCB FFCB FFCB FANM Subtotal OTAY Interest Earnings Sorted by Security Type-Fund July 1, 2014-July 31, 2014 Period Yield on Beginning ~ook Value Ending Par Value Beginning Book Value Ending Maturity Current Yield This 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 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 2,002,339.50 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,705,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 0.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 0.00 2,000,000.00 1,030,000.00 1,030,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 3,000,000.00 3,000,000.00 2,000,000.00 2,000,000.00 3,000,000.00 3,000,000.00 2,000,000.00 2,000,000.00 53,735,000.00 51' 737,339.50 Book Value Date Rate Period 2,000,000.00 09/19/2016 2,000,000.00 03/20/2017 2,000,000.00 06/27/2016 2,000,000.00 11128/2016 2,000,000.00 12112/2016 2,000,000.00 12130/2016 2,000,000.00 10/17/2017 2,000,000.00 06/26/2017 2,000,000.00 06/16/2017 2,000,000.00 03/10/2017 2,000,000.00 12119/2016 2,002,258.26 11/25/2016 2,000,000.00 05/08/2017 2,000,000.00 05/1912017 2,705,000.00 05/1512017 2,000,000.00 08/26/2016 2,000,000.00 10/0712016 2,000,000.00 08/2212017 2,000,000.00 12/19/2016 0.00 01/23/2017 1 ,030,000.00 05/15/2017 2,000,000.00 02/2212016 2,000,000.00 11/25/2016 3,000,000.00 08/17/2015 2,000,000.00 07/29/2016 3,000,000.00 06/0112015 2,000,000.00 09/06/2016 53,737,258.26 0.625 0.900 0.500 0.750 0.700 0.650 1.220 1.000 1.000 0.810 0.670 0.750 1.010 1.000 1.020 0.650 0.660 1.050 0.700 1.000 1.020 0.350 0.700 0.340 0.550 0.350 0.550 0.052 0.075 0.042 0.063 0.058 0.054 0.098 0.083 0.083 0.068 0.056 0.058 0.084 0.083 0.085 0.054 0.055 0.088 0.058 0.086 0.085 0.029 0.058 0.028 0.046 0.029 0.046 0.061 ---Interest Earned 1,041.66 1,500.00 833.33 1,250.00 1,166.67 1,083.33 948.89 1,666.66 1,666.67 1,350.00 1,116.66 1,250.00 1,683.33 1,666.67 2,299.25 1,083.34 880.00 1,750.00 1,166.66 1,222.22 875.50 583.34 1,166.67 850.00 916.67 875.00 916.67 ------ 32,809.19 Adjusted Interest Earnings Amortization/ Adjusted Interest Accretion Earnings 0.00 1 ,041 .66 0.00 1 ,500.00 0.00 833.33 0.00 1,250.00 0.00 1,166.67 0.00 1,083.33 0.00 948.89 0.00 1,666.66 0.00 1 ,666.67 0.00 1,350.00 0.00 1,116.66 -81.24 1,168.76 0.00 1 ,683.33 0.00 1 ,666.67 0.00 2,299.25 0.00 1 ,083.34 0.00 880.00 0.00 1 '750.00 0.00 1 '166.66 0.00 1 ,222.22 0.00 875.50 0.00 583.34 0.00 1 '166.67 0.00 850.00 0.00 916.67 0.00 875.00 0.00 916.67 ------ -81.24 32,727.95 Portfolio OTAY AP IE (PRF _IE) 7.2.0 Report Ver. 7.3.3b Ending CUSIP Investment# Fund Issuer Par Value Security Type: Federal Agency Issues -Coupon 3135GOYE7 2286 99 FNMA 2,000,000.00 Subtotal 2,000,000.00 Security Type: Certificates of Deposit-Bank 2050003183-6 2283 99 CB&T 81 ,784.76 Subtotal 81,784.76 Security Type: Union Bank UNION OPERATING 9004 99 CA 1,443,972.46 UNION MONEY 9002 99 CA 10,003.40 RESERVE-10 COPS 9010 99 CA 31 ,968.96 RESERVE-10 BABS 9011 99 CA 84,618.98 Subtotal 1,570,563.80 Security Type: Local Agency Investment Fund (LAIF) LA IF 9001 99 CA 9,972,020.57 Subtotal 9,972,020.57 - Security Type: San Diego County Pool SO COUNTY POOL 9007 99 soc 15,270,913.59 Subtotal 15,270,913.59 Total 82,630,282.72 Run Date: 06120/201 4 -1 1 : 1 0 OTAY Interest Earnings July 1, 2014 -July 31, 2014 Beginning Ending Maturity Current Yield This Book Value Book Value Date Rate Period 2,002,508.67 2,002,411 .56 08/26/2016 0.625 0.047 2,002,508.67 2,002,411.56 0.047 81,784.76 81 ,784.76 01/22/2016 0.030 0.003 81,784.76 81 ,784.76 0.003 1,879,942.09 1,443,972.46 0.250 0.021 10,007.14 10,003.40 0.010 0.034 31,968.66 31 ,968.96 0.010 0.001 84,618.38 84,618.98 0.010 0.001 --- 2,006,536.27 1,570,563.80 0.020 11 ,364,668.30 9,972,020.57 0.244 0.017 11 ,364,668.30 9,972,020.57 0.017 17,250,908.83 15,270,913.59 0.454 0.036 17,250,908.83 15,270,913.59 0.036 84,443,746.33 82,634,952.54 0.049 Page 2 Adjusted Interest Earnings Interest Earned 1,041 .67 1,041 .67 2.12 2.12 397.89 3.37 0.27 0.72 402.25 1,906.07 1,906.07 --- 6,257.72 6,257.72 42,419.02 Amortization/ Accretion -97.11 -97.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -178.35 Adjusted Interest Earnings 944.56 944.56 2.12 2.12 397.89 3.37 0.27 0.72 402.25 1,906.07 1,906.07 6,257.72 6,257.72 42,240.67 Portfolio OTAY AP IE (PRF _IE) 7.2.0 Report Ver. 7.3.3b CUSIP Investment # Issuer Percent of Portfolio Issuer: STATE OF CALIFORNIA Union Bank UNION MONEY 9002 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-201 0 BOND 9013 STATE OF CALIFORNIA UBNA-FLEX ACCT 9014 STATE OF CALIFORNIA Subtotal and Balance Local Agency Investment Fund (LAIF) LA IF 9001 STATE OF CALIFORNIA Subtotal and Balance Issuer Subtotal 14.056% Issuer: California Bank & Trust Certificates of Deposit -Bank Subtotal and Balance Issuer Subtotal 0.099% Issuer: Fannie Mae Federal Agency Issues-Callable Subtotal and Balance Issuer Subtotal 2.418% Issuer: Federal Farm Credit Bank Run Date: 08/20/2014 -11:11 OTAY Activity Report Sorted By Issuer July 1, 2014-July 31, 2014 Par Value Beginning Current Transaction Balance Rate Date 0.010 0.250 0.010 0.010 2,009,486.27 -- 0.244 -- 11 ,364,668.30 13,37 4,154.57 81 ,784.76 81,784.76 2,000,000.00 2,000,000.00 Purchases or Deposits 6,007,753.40 749,509.00 27,891.35 0.30 0.60 51.89 57,125.12 6,842,331.66 4,607,352.27 4,607,352.27 11,449,683.93 0.00 0.00 Par Value Redemptions or Withdrawals 6,007,757.14 1 '185,478.63 0.00 0.00 0.00 0.00 4,451.33 7,197,687.10 6,000,000.00 6,000,000.00 13,197,687.10 0.00 0.00 Ending Balance 1 ,654,130.83 9,972,020.57 11,626,151.40 81,784.76 81,784.76 2,000,000.00 2,000,000.00 Portfolio OTAY AP DA (PRF _DA) 7.2.0 Report Ver. 7.3.3b Percent CUSIP Investment # Issuer of Portfolio Issuer: Federal Farm Credit Bank Federal Agency Issues-Callable Subtotal and Balance Issuer Subtotal 9.672% Issuer: Federal Home Loan Bank Federal Agency Issues-Callable 3130A1HX9 2287 Federal Home Loan Bank 3130A2HW9 2303 Federal Home Loan Bank Subtotal and Balance Issuer Subtotal 23.859% Issuer: Federal Home Loan Mortgage Federal Agency Issues-Callable 3134G5BL8 2302 Federal Home Loan Mortgage Subtotal and Balance Issuer Subtotal 24.180% Issuer: Federal National Mortage Assoc Federal Agency Issues-Callable Subtotal and Balance Federal Agency Issues -Coupon Subtotal and Balance Issuer Subtotal 7.254% Issuer: San Diego County San Diego County Pool SO COUNTY POOL 9007 San Diego County Run Date: 08120/2014 -11:11 OTAY Activity Report July 1, 2014-July 31,2014 Par Value Beginning Current Transaction Balance Rate Date 8,000,000.00 8,000,000.00 1.000 07/23/2014 0.660 07/07/2014 19,735,000.00 19,735,000.00 1.220 07/17/2014 18,000,000.00 18,000,000.00 4,000,000.00 -- 2,000,000.00 6,000,000.00 0.454 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 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 20,004.76 2,000,000.00 Page 2 Ending Balance 8,000,000.00 8,000,000.00 19,735,000.00 19,735,000.00 20,000,000.00 20,000,000.00 4,000,000.00 2,000,000.00 6,000,000.00 Portfolio OTAY AP DA (PRF _DA) 7.2.0 Report Ver. 7.3.3b CUSIP Run Date: 0812012014 -11:11 Investment # Issuer Percent of Portfolio Subtotal and Balance Issuer Subtotal 18.462% Total 100.000% OTAY Activity Report July 1, 2014-July 31, 2014 Par Value Beginning Balance 17,250,908.83 17,250,908.83 84,441 ,848.16 Current Transaction Rate Date Par Value Purchases or Redemptions or Deposits Withdrawals 20,004.76 2,000,000.00 --- 20,004.76 2,000,000.00 15,469,688.69 17,197,687.10 Page 3 Ending Balance 15,270,913.59 15,270,913.59 82,713,849.75 Portfolio OTAY AP DA (PRF _DA) 7.2.0 Report Ver. 7.3.3b CUSIP Investment# Fund: Treasury Fund 3134G4WJ3 3134G4WH7 3134G4PXO 3134G54N2 3134G55T8 3134G5A47 3134G5BL8 3134G56NO 3134G56A8 3134G55X9 3136G1XZ7 3135GOYE7 3135GOYW7 3130A1Q84 3130A1SE9 3130A1RB6 3130A1XA1 3130A2HW9 3130A1ZX9 3130A25S1 3130A1HX9 3130A1RB6 313382YY3 2284 2285 2277 2293 2295 2301 2302 2300 2297 2298 2274 2286 2276 2292 2288 2290 2294 2303 2296 2299 2287 2289 2268 3130AOVG2 2281 LAIF BABS 2010 9012 UNION OPERATING 9004 PAYROLL 9005 PETTY CASH 9003 UNION MONEY 9002 UBNA-FLEX ACCT 9014 UBNA-2010 BOND 9013 Run Date: 08120/2014 -11:11 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 99 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 Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Amortized Amortized Amortized Amortized Amortized Amortized Maturity Date 09/19/2016 03/20/2017 06/27/2016 11/28/2016 12/12/2016 12/30/2016 10/17/2017 06/26/2017 06/16/2017 03/10/2017 12/19/2016 08/26/2016 11/25/2016 05/08/2017 05/19/2017 05/15/2017 08/26/2016 10/07/2016 08/22/2017 12/19/2016 01/23/2017 05/15/2017 02/22/2016 11/25/2016 OTAY GASB 31 Compliance Detail Sorted by Fund -Fund July 1, 2014-July 31, 2014 Beginning Invested Value 2,001,300.00 1,997,200.00 2,000,120.00 2,002,100.00 1,998,800.00 1,997,180.00 0.00 2,002,600.00 2,001,020.00 1,997,320.00 1,993,540.00 2,001,200.00 1 ,995, 100.00 1,999,680.00 1,999,340.00 2,707,921.40 1,995,480.00 0.00 1,995,600.00 1,996,600.00 2,000,980.00 1,031,112.40 1,995,980.00 2,001,100.00 0.00 1,879,942.09 0.00 2,950.00 10,007.14 0.00 0.00 Purchase of Principal 0.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 27,891 .35 0.00 0.00 57,125.12 51.89 Addition to Principal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 749,509.00 0.00 0.00 6,007,753.40 0.00 0.00 Redemption of Principal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 0.00 0.00 0.00 0.00 1 '185,478.63 0.00 0.00 6,007,757.14 4,451.33 000 Adjustment In Value Amortization Adjustment 0.00 QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO QOO 0.00 0.00 0.00 0.00 0.00 0.00 Change in Market Value -2,720.00 -3,440.00 -1,780.00 -2,380.00 -2,480.00 -2,680.00 -4,820.00 -8,320.00 -4,800.00 -3,400.00 -2,740.00 -2,200.00 2,240.00 -4,440.00 -4,620.00 -6,221 .50 -880.00 -4,600.00 -5,740.00 -2,400.00 -980.00 -2,369.00 -740.00 -2,140.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Ending Invested Value 1,998,580.00 1,993,760.00 1,998,340.00 1,999,720.00 1,996,320.00 1,994,500.00 1,995,180.00 1,994,280.00 1,996,220.00 1,993,920.00 1,990,800.00 1,999,000.00 1,997,340.00 1,995,240.00 1,994,720.00 2, 701,699.90 1,994,600.00 1,995,400.00 1,989,860.00 1,994,200.00 0.00 1 ,028, 743.40 1,995,240.00 1,998,960.00 0.00 1,443,972.46 27,891 .35 2,950.00 10,003.40 52,673.79 51.89 Portfolio OTAY AP GD (PRF _GD) 7.1.1 Report Ver. 7.3.3b OTAY GASB 31 Compliance Detail Sorted by Fund -Fund Investment Maturity Beginning Purchase CUSIP Investment # Fund Class Date Invested Value of Principal Fund: Treasury Fund RESERVE-10 COPS 9010 99 Amortized 31,968.66 0.00 LAIF 9001 99 Fair Value 11 ,364,668.30 0.00 RESERVE-10 BABS 9011 99 Amortized 84,618.38 0.00 3133EC7H1 2260 99 Fair Value 08/17/2015 3,004,950.00 0.00 3133EDKF8 2291 99 Fair Value 07/29/2016 1,997,720.00 0.00 3133EC6F6 2258 99 Fair Value 06/01/2015 3,005,760.00 0.00 20500031 83-6 2283 99 Amortized 01/22/2016 81,784.76 0.00 3135GOXR9 2269 99 Fair Value 09/06/2016 1,996,440.00 0.00 SO COUNTY POOL 9007 99 Fair Value 17,250,908.83 0.00 Subtotal 84,422,991.96 4,085,068.36 Total 84,422,991.96 4,085,068.36 Run Date: 08/20/2014 -11:11 Addition Redemption to Principal of Principal 0.30 0.00 4,607,352.27 6,000,000.00 0.60 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 0.00 0.00 0.00 20,004.76 2,000,000.00 11,384,620.33 17,197,687.10 11,384,620.33 17,197,687.10 Adjustment in Value Amortization Change in Adjustment Market Value 0.00 0.00 0.00 2,979.14 0.00 0.00 0.00 180.00 0.00 -1,580.00 0.00 -540.00 0.00 0.00 0.00 -1,320.00 0.00 -78,913.59 0.00 -153,844.95 0.00 -153,844.95 Page 2 Ending Invested Value 31,968.96 9,974,999.71 84,618.98 3,005,130.00 1 ,996,140.00 3,005,220.00 81,784.76 1 '995, 120.00 15,192,000.00 82,541,148.60 82,541,148.60 Portfolio OTAY AP GD(PRF_GD)7.1.1 Report Ver. 7.3.3b Security ID 3134G5A47 3134G4PXO 3134G56NO 3134G5BL8 3134G55X9 3134G56A8 3134G4WH7 3134G55T8 3134G4WJ3 3134G54N2 3136G1XZ7 3135GOYW7 313382YY3 3130AOVG2 3130A1SE9 3130A1XA1 3130A1Q84 3130A1RB6 3130A2HW9 3130A1ZX9 3130A25S1 3130A1RB6 3133EC7H1 3133EC6F6 3133EDKF8 3135GOXR9 Investment# Fund 2301 99 2277 99 2300 2302 2298 2297 2285 2295 2284 2293 2274 2276 2268 2281 2288 2294 2292 2290 2303 2296 2299 2289 2260 2258 2291 2269 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 Run Date: 08/20/2014 -11:12 OTAY Duration Report Sorted by Investment Type -Investment Type Through 07/31/2014 Issuer Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal National Mortage Assoc Federal National Mortage Assoc Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Fannie Mae 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 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 2,002,258.26 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 3,000,000.00 3,000,000.00 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 2,000,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 3,000,000.00 3,000,000.00 2,000,000.00 2,000,000.00 Market Current Value Rate 1,994,500.00 .6500000 1,998,340.00 .5000000 1,994,280.00 1.000000 1 ,995,180.00 1.220000 1,993,920.00 .8100000 1,996,220.00 1.000000 1,993,760.00 .9000000 1,996,320.00 .7000000 1,998,580.00 .6250000 1,999,720.00 .7500000 1 ,990,800.00 .6700000 1,997,340.00 .7500000 1 ,995,240.00 .3500000 1 ,998,960.00 . 7000000 1,994,720.00 1.000000 1,994,600.00 .6500000 1,995,240.00 1.010000 2,701 ,699.90 1.020000 1,995,400.00 .6600000 1,989,860.00 1.050000 1,994,200.00 .7000000 1,028,743.40 1.020000 3,005,130.00 .3400000 3,005,220.00 .3500000 1 ,996,140.00 .5500000 1,995,120.00 .5500000 YTM Current 360 Yield 0.641 0.765 0.493 0.544 0.986 1.203 0.799 0.986 0.888 0.690 0.616 0.740 0.661 0.685 0.345 0.690 0.986 0.641 0.996 1.006 0.651 1.036 0.690 1.006 0.335 0.345 0.542 0.542 1.100 1.297 0.928 1.067 1.020 0.779 0.659 0.756 0.865 1.017 0.504 0.723 1.096 0.782 1.098 1.065 0.766 1.219 0.823 1.065 -0.002 0.141 0.648 1.041 Maturity/ Modified Call Date Duration 12/30/2016 2.388 06/27/2016 1.893 06/26/2017 10/17/2017 03/10/2017 06/16/2017 03/20/2017 12/12/2016 09/19/2016 11/28/2016 12/19/2016 11/25/2016 02/22/2016 11/25/2016 05/19/2017 08/26/2016 05/08/2017 05/15/2017 10/07/2016 08/22/2017 12/19/2016 05/15/2017 08/17/2015 06/01/2015 07/29/2016 09/06/2016 2.849 3.136 2.571 2.822 2.589 2.337 2.110 2.297 2.356 2.285 1.549 2.286 2.747 2.048 2.716 2.736 2.162 2.993 2.355 2.736 1.041 0.831 1.980 2.072 Portfolio OTAY AP DU (PRF_DU) 7.1.1 Report Ver. 7.3.3b Check Total 8,353.33 12,250.21 9,414.49 3,300.00 3,300.00 5,526.00 UB Refund Cst #0000048756 327.30 327.30204090207/30/14 15735 ALAN GROBMEIER Ref002435267 07/28/14 AQUA AMMONIA 3,529.20 131345388 07/30/14 AQUA AMMONIA 1,996.80 2041046 08/20/14 07732 AIRGAS SPECIALTY PRODUCTS INC 131345389 07/30/14 TEMPORARY EMPLOYMENT (7/7/14-7/11/14)1,650.00 OE01059417 07/31/14 TEMPORARY EMPLOYMENT (7/14/14-7/18/14)1,650.00 OE01064007 08/14/14 TEMPORARY EMPLOYMENT (7/28/14-8/1/14)1,650.00 2040950 08/06/14 11803 AEROTEK ENVIRONMENTAL OE01057115 07/24/14 1,320.00 1,320.00 2041045 08/20/14 11803 AEROTEK ENVIRONMENTAL OE01061687 08/07/14 TEMPORARY EMPLOYMENT (7/21/14-7/25/14)1,650.00 DISINFECTION SYSTEM (ENDING 6/27/14)40,162.50 40,162.50 2040901 07/30/14 11803 AEROTEK ENVIRONMENTAL OE01054971 07/17/14 TEMPORARY EMPLOYMENT (6/30/14-7/3/14) 2040949 08/06/14 12174 AECOM TECHNICAL SERVICES INC 19 07/17/14 948623 07/31/14 SODIUM HYPOCHLORITE 568.91 948002 07/24/14 SODIUM HYPOCHLORITE 458.07 948307 07/28/14 SODIUM HYPOCHLORITE 741.55 948015 07/24/14 SODIUM HYPOCHLORITE 665.04 948625 07/31/14 SODIUM HYPOCHLORITE 863.17 948940 08/04/14 SODIUM HYPOCHLORITE 761.16 948306 07/28/14 SODIUM HYPOCHLORITE 1,061.31 948645 07/31/14 SODIUM HYPOCHLORITE 880.83 SODIUM HYPOCHLORITE 1,901.93 948822 08/01/14 SODIUM HYPOCHLORITE 1,512.52 946879 07/10/14 SODIUM HYPOCHLORITE 395.29 2041044 08/20/14 01910 ABCANA INDUSTRIES 948170 07/25/14 947429 07/17/14 SODIUM HYPOCHLORITE 550.27 946878 07/10/14 SODIUM HYPOCHLORITE 509.08 947155 07/14/14 SODIUM HYPOCHLORITE 623.84 946874 07/10/14 SODIUM HYPOCHLORITE 588.53 947748 07/21/14 SODIUM HYPOCHLORITE 819.03 947428 07/17/14 SODIUM HYPOCHLORITE 687.60 946741 07/09/14 SODIUM HYPOCHLORITE 1,195.69 947057 07/11/14 SODIUM HYPOCHLORITE 841.60 947369 07/16/14 SODIUM HYPOCHLORITE 1,487.99 947649 07/18/14 SODIUM HYPOCHLORITE 1,427.18 SODIUM HYPOCHLORITE 1,590.99 947747 07/21/14 SODIUM HYPOCHLORITE 1,533.12 12202170 07/31/14 COMMUNITY OUTREACH (DESALINATION)3,510.42 2040948 08/06/14 01910 ABCANA INDUSTRIES 947154 07/14/14 Amount 2041043 08/20/14 15645 (W)RIGHT ON COMMUNICATIONS INC 12202169 07/31/14 COMMUNITY OUTREACH (A)4,842.91 CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 6,250.00 6,991.30 4,437.25 4,437.25 DESIGN/CONSTRUCTION 870-2 PS (6/1/14-6/30/14)15,067.50 15,067.50 2040907 07/30/14 15256 CIGNA GROUP INSURANCE / LINA 0952049267071407/28/14 AD&D & SUPP LIFE INS (JULY 2014) 2040960 08/06/14 15177 CAROLLO ENGINEERS INC 135670 07/09/14 444.50 2041053 08/20/14 02758 CARMEL BUSINESS SYSTEMS INC 7808 07/28/14 DESTRUCTION SERVICES (7/22/14)38.50 38.50 152.77 152.77 2040959 08/06/14 01004 CALOLYMPIC SAFETY 330708 07/21/14 CAL-GAS, REG, HOSE 444.50 APCD RETROFIT 16,188.53 16,188.53 2041052 08/20/14 15767 CAH 2014-1 BORROWER LLC UB307861159 08/14/14 CUSTOMER REFUND 2040958 08/06/14 14365 CA ENVIRONMENTAL SOLUTIONS INC 8024 07/08/14 3,769.24 2040957 08/06/14 08156 BROWNSTEIN HYATT FARBER 572527 07/28/14 LEGISLATIVE ADVOCACY (THRU 6/30/14)4,446.00 4,446.00 990.00 990.00 2040906 07/30/14 10970 BRENNTAG PACIFIC INC BPI1430412 06/30/14 SODIUM HYPOCHLORITE 3,769.24 2015 WFMP UPDATE (6/2/14-6/30/14)15,033.98 15,033.98 2041051 08/20/14 03509 BELL, RITA 3509081814 08/18/14 COMPUTER LOAN 2040956 08/06/14 12810 ATKINS 1198217 07/14/14 TELEPHONE SERVICES (7/2/14-8/1/14)5,762.22 000005621660 08/01/14 TELEPHONE SERVICES (7/1/14-7/31/14)1,229.08 2041050 08/20/14 07785 AT&T 000005622785 08/02/14 1,110.00 2040955 08/06/14 08967 ANTHEM BLUE CROSS EAP 41239 07/25/14 EMPLOYEE ASSISTANCE PROGRAM (AUG 2014)312.20 312.20 47.50 47.50 2040954 08/06/14 00002 ANSWER INC 10257 07/22/14 ANSWERING SERVICES (MONTHLY)1,110.00 UB Refund Cst #0000020463 53.32 53.32 2041013 08/13/14 15763 ANNETTE & JEFF MECHLING 081114 08/11/14 CLAIM SETTLEMENT 2040905 07/30/14 15733 ANGELENE LOMAX Ref002435265 07/28/14 219.00 2040953 08/06/14 06973 ANDER, DIANE 080114 08/01/14 REIMBURSEMENT 240.00 240.00 206.95 206.95 2041049 08/20/14 02730 AMERICAN PAYROLL ASSOCIATION 212022 07/17/14 MEMBERSHIP DUES (ANNUAL)219.00 TRASH SERVICES (AUG 2014)530.33 530.33 2041048 08/20/14 06166 AMERICAN MESSAGING L1109570OH 08/01/14 PAGERS (JULY 2014) 2040952 08/06/14 02362 ALLIED WASTE SERVICES # 509 0509005691178 07/25/14 722.31 2041047 08/20/14 01463 ALLIED ELECTRONICS INC 9003330090 07/22/14 POWER SUPPLIES 678.84 678.84 185.95 185.95 2040951 08/06/14 13203 ALLIANCE FOR WATER EFFICIENCY 3554 07/07/14 MEMBERSHIP RENEWAL 722.31 MONTHLY MONITORING (AUG 2014)1,153.00 1,153.00 2040904 07/30/14 15750 ALDINE CORP Ref002435283 07/28/14 UB Refund Cst #0000208522 163985 07/15/14 RE-PROGRAMMING OF FACILITY ALARMS 6,500.00 2041012 08/13/14 14811 ALARMS UNLIMITED INC 164843 08/01/14 UB Refund Cst #0000048756 327.30 327.30 2040903 07/30/14 14811 ALARMS UNLIMITED INC 164047 CREDIT MEMO -250.00 2040902 07/30/14 15735 ALAN GROBMEIER Ref002435267 07/28/14 Page 2 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 6,372.00 743.60 1,876.00 2003193E60215071408/08/14 SHUT DOWN TEST (7/9/14)142.00 SHUT DOWN TEST (7/31/14)355.00 2003193E60242071408/08/14 SHUT DOWN TEST (7/9/14)284.00 2041016 08/13/14 00184 COUNTY OF SAN DIEGO 2003193E60216071408/08/14 DEH2002HUPFP132137108/08/14 PERMIT RENEWAL 487.00 2003193E60890071408/08/14 SHUTDOWN TEST FEE (7/9/2014)142.00 142.00 2041015 08/13/14 00184 COUNTY OF SAN DIEGO DEH2004HUPFP203584108/08/14 PERMIT RENEWAL 1,247.00 229.27 229.27 2040909 07/30/14 00184 COUNTY OF SAN DIEGO DEH140466D11 07/14/14 SHUT DOWN TEST (6/3/14)142.00 EXCAVATION PERMITS (JUNE 2014)1,394.90 1,394.90 2041056 08/20/14 00184 COUNTY OF SAN DIEGO DEH140480OHP08/11/14 INDUSTRIAL HYGIENE (6/16/14-6/30/14) AR170767 07/21/14 SHARP COPIER MAINTENANCE (7/1/14-6/30/15)371.80 2040964 08/06/14 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD061407/10/14 73.12 2040963 08/06/14 03624 COPY LINK INC AR170766 07/21/14 SHARP COPIER MAINTENANCE (7/1/14-6/30/15)371.80 172.00 172.00 2041014 08/13/14 11056 CONCHAS, FREDERICK A000109 08/11/14 TUITION REIMBURSEMENT 73.12 EQUIPMENT MAINTENANCE (7/1/14-6/30/15)4,503.00 4,503.00 2040908 07/30/14 11056 CONCHAS, FREDERICK a000105 07/25/14 TUITION REIMBURSEMENT 2040962 08/06/14 03288 COMPUTER PROTECTION 18897PMA 07/09/14 74417 07/31/14 BACTERIOLOGICAL TESTING SERVICES 154.00 74419 07/31/14 BACTERIOLOGICAL TESTING SERVICES 90.00 74415 07/31/14 BACTERIOLOGICAL TESTING SERVICES 178.00 74407 07/31/14 BACTERIOLOGICAL TESTING SERVICES 161.00 74405 07/31/14 BACTERIOLOGICAL TESTING SERVICES 384.00 74410 07/31/14 BACTERIOLOGICAL TESTING SERVICES 178.00 74408 07/31/14 BACTERIOLOGICAL TESTING SERVICES 449.00 74416 07/31/14 BACTERIOLOGICAL TESTING SERVICES 396.00 74412 07/31/14 BACTERIOLOGICAL TESTING SERVICES 594.00 74406 07/31/14 BACTERIOLOGICAL TESTING SERVICES 490.00 74411 07/31/14 BACTERIOLOGICAL TESTING SERVICES 762.00 74414 07/31/14 BACTERIOLOGICAL TESTING SERVICES 694.00 BACTERIOLOGICAL TESTING SERVICES 1,068.00 74409 07/31/14 BACTERIOLOGICAL TESTING SERVICES 774.00 2041055 08/20/14 04119 CLARKSON LAB & SUPPLY INC 74413 07/31/14 1,000.00 2041054 08/20/14 08895 CITY OF LA MESA 16545 07/24/14 FINGERPRINTING SERVICES 20.00 20.00 4,437.25 4,437.25 2040961 08/06/14 15365 CITY OF CHULA VISTA HARBORFEST CV119 07/16/14 SPONSORSHIP 1,000.00 2040907 07/30/14 15256 CIGNA GROUP INSURANCE / LINA 0952049267071407/28/14 AD&D & SUPP LIFE INS (JULY 2014) Page 3 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,065.00 771.00 3,000.00 890.00 685.00 9,223.55 545.40 15.26 15.26 2041064 08/20/14 03703 FORCE FLOW 26518 07/28/14 WIZARD MOTHERBOARD 545.40 COFFEE SUPPLIES 87.90 87.90 2040913 07/30/14 15737 FLORA ESPINO Ref002435270 07/28/14 UB Refund Cst #0000168333 2041063 08/20/14 04066 FIRST CHOICE SERVICES - SD 023672 07/23/14 4,492.80 0480753 07/14/14 INVENTORY 3,801.60 0480760 07/14/14 INVENTORY 929.15 DI TANK EXCHANGES 394.26 394.26 2040970 08/06/14 03546 FERGUSON WATERWORKS # 1083 0480744 07/14/14 INVENTORY 2041062 08/20/14 15396 EVOQUA WATER TECHNOLOGIES LLC 901795141 07/23/14 20,300.00 2041061 08/20/14 14320 EUROFINS EATON ANALYTICAL INC L0176364 07/23/14 OUTSIDE LAB SERVICES (7/8/14)255.00 255.00 53,989.24 53,989.24 2040969 08/06/14 15711 EPIC FIRE PROTECTION INC 2992 07/15/14 MIC TREATMENT SYSTEM 20,300.00 ANNUAL FEE 2,359.00 2,359.00 2041060 08/20/14 03725 ENVIRONMENTAL SYSTEMS RESEARCH 92848379 07/29/14 ENTERPRISE LICENSE/SUPPORT (7/26/14-7/25/15) 4070419 07/14/14 RECYCLED WATER ANALYSIS (6/30/14)45.00 2040968 08/06/14 12134 ENVIRONMENTAL LAB ACCR PROG BR 10141658 07/11/14 07/21/14 LAB ANALYSIS (7/4/14-7/10/14)505.00 4070420 07/14/14 LAB ANALYSIS (7/1/14-7/3/14)135.00 490.00 4070833 07/28/14 LAB ANALYSIS (7/11/14-7/16/14)400.00 2040967 08/06/14 03227 ENVIROMATRIX ANALYTICAL INC 4070690 SAFETY BOOT REIMBURSEMENT 150.00 150.00 2041059 08/20/14 03227 ENVIROMATRIX ANALYTICAL INC 4080366 08/04/14 LAB ANALYSIS (7/17/14-7/24/14) 2040912 07/30/14 13825 ENRIQUEZ, LUIS O0000000114 07/28/14 1,805.74 2041058 08/20/14 02447 EDCO DISPOSAL CORPORATION 5458073114 07/31/14 RECYCLING SERVICES (JULY 2014)95.00 95.00 16,697.82 16,697.82 2041018 08/13/14 14411 EASTLAKE VILLAGE MARKETPLACE Ref002424554 10/09/12 UB Refund Cst #0000188040 1,805.74 PLAQUE AWARD 135.00 135.00 2040966 08/06/14 15084 DLT SOLUTIONS LLC SI260638 07/18/14 LICENSE AGREEMENT (7/9/14-7/8/15) 07/28/14 UB Refund Cst #0000008509 26.71 26.71 2040965 08/06/14 14008 DELL AWARDS 195375 07/31/14 1,500.00 67010714 07/29/14 INTERNET SERVICES (7/29/14-8/28/14)1,500.00 2040911 07/30/14 15732 DEBRA TANGUMA Ref002435264 INSPECTION DEPOSIT 5,652.75 5,652.75 2041017 08/13/14 02756 COX COMMUNICATIONS SAN DIEGO 96010714 07/29/14 INTERNET SERVICES (7/29/14-8/28/14) 2040910 07/30/14 11745 COUNTY OF SAN DIEGO E000079 07/28/14 PERMIT FEES # 05714 (SEPT 2014-SEPT 2015)413.00 2014062405774 06/24/14 PERMIT FEES # 05774 (SEPT 2014-SEPT 2015)358.00 2003193E60248071408/08/14 SHUT DOWN TEST (7/9/14)142.00 2041057 08/20/14 02122 COUNTY OF SAN DIEGO 2014062405714 06/24/14 2003193E60240071408/08/14 SHUT DOWN TEST (7/9/14)142.00 Page 4 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 4,851.21 7,200.00 18,712.78 3,904.12 2041021 08/13/14 13899 INTERMEDIA.NET INC 1408001833 08/01/14 EMAIL SERVICES (7/2/14-8/2/14)3,699.30 3,699.30 205.00 205.00 2040974 08/06/14 13899 INTERMEDIA.NET INC 1407001536 07/01/14 EMAIL SERVICES (6/2/14-7/2/14 3,904.12 HARDWARE SUPPORT 31,532.62 31,532.62 2041072 08/20/14 02372 INTERIOR PLANT SERVICE INC 8859 07/18/14 PLANT SERVICES (JULY 2014) 82844 08/04/14 BILL PRINTING SERVICES (JULY 2014)1,912.59 2041071 08/20/14 03380 INSIGHT PUBLIC SECTOR INC 1100379648 08/04/14 BILL PRINTING SERVICES (JULY 2014)13,149.04 82557 07/31/14 BILL PRINTING SERVICES (JULY 2014)3,651.15 07/23/14 CL2 B KIT GASKETS 942.00 942.00 2041070 08/20/14 08969 INFOSEND INC 82558 07/31/14 3,600.00 111 06/01/14 BI-NATIONAL CONSULTANT SERVICES (MAY 2014)3,600.00 2041069 08/20/14 15725 INDIAN SPRINGS MFG CO INC 8108 UB Refund Cst #0000004925 21.28 21.28 2040973 08/06/14 04472 HECTOR I MARES-COSSIO 112 07/01/14 BI-NATIONAL CONSULTANT SERVICES (JUNE 2014) 2040919 07/30/14 15731 HECTOR HIDALGO Ref002435263 07/28/14 4,848.77 2040972 08/06/14 10973 HDR ENGINEERING INC 6 07/10/14 CORROSION SERVICES (6/1/14-6/30/14)21,821.94 21,821.94 1,875.48 1,875.48 2041068 08/20/14 06640 HD SUPPLY WATERWORKS LTD C622221 07/29/14 3G REGISTERS 4,848.77 MONTHLY CONTRIBUTION TO LTD 5,243.48 5,243.48 2041020 08/13/14 15265 HAZARD CONSTRUCTION CO Ref002431478 12/03/13 UB Refund Cst #0000176658 8922850 07/14/14 DISTRIBUTION SUPPLIES 250.29 2040918 07/30/14 02795 HARTFORD INSURANCE CO, THE Ben2435323 07/31/14 8953230 07/29/14 HACH PARTS 1,134.54 8951081 07/28/14 HACH PARTS 436.95 8,909.50 2041067 08/20/14 00174 HACH COMPANY 8946043 07/24/14 HACH PARTS 3,029.43 102.52 102.52 2041066 08/20/14 12907 GREENRIDGE LANDSCAPE INC 12202 07/24/14 LANDSCAPING SERVICES (JULY 2014)8,909.50 LICENSES SUPPORT (7/14/14-7/13/15)1,979.10 1,979.10 2040917 07/30/14 15748 GRANITE RANCH OPPORTUNITIES LL Ref002435281 07/28/14 UB Refund Cst #0000207092 2040971 08/06/14 10817 GEXPRO S108203373001 07/17/14 219.00 2041065 08/20/14 10817 GEXPRO S108203269001 07/22/14 RX3I COMMUNICATION MODULE 744.21 744.21 81.00 81.00 2040916 07/30/14 15728 FUNBOUNCE.COM 072814 07/28/14 OTAY PICNIC 219.00 BI-WEEKLY PAYROLL DEDUCTION 81.00 81.00 2041019 08/13/14 02344 FRANCHISE TAX BOARD Ben2435524 08/14/14 BI-WEEKLY PAYROLL DEDUCTION 2040915 07/30/14 02344 FRANCHISE TAX BOARD Ben2435339 07/31/14 545.40 2040914 07/30/14 01612 FRANCHISE TAX BOARD Ben2435335 07/31/14 BI-WEEKLY PAYROLL DEDUCTION 50.00 50.00 2041064 08/20/14 03703 FORCE FLOW 26518 07/28/14 WIZARD MOTHERBOARD 545.40 Page 5 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,684.65 1,684.65 115.00 48.93 48.93 2041079 08/20/14 14364 MARTIN, DAN 49389 08/18/14 LICENSE RENEWAL 115.00 UB Refund Cst #0000207667 48.37 48.37 2040929 07/30/14 15736 MARK SHIVELY Ref002435269 07/28/14 UB Refund Cst #0000159874 2041025 08/13/14 15761 MARIA DOMINGUEZ Ref002435447 08/11/14 17.65 2040928 07/30/14 15741 MAGHEES NAFSO Ref002435274 07/28/14 UB Refund Cst #0000195341 98.88 98.88 128.80 128.80 2040927 07/30/14 15745 MACKENZIE SHARP Ref002435278 07/28/14 UB Refund Cst #0000204196 17.65 UB Refund Cst #0000187679 93.52 93.52 2040978 08/06/14 03019 LOPEZ, JOSE 060114063014 08/05/14 MILEAGE REIMBURSEMENT (JUNE 2014) 2040926 07/30/14 15739 LJ NEPTUNE PROPERTIES LLC Ref002435272 07/28/14 800.00 2040925 07/30/14 09880 LEIGH, ROBERT o0000000113 07/24/14 SAFETY BOOT REIMBURSEMENT 116.62 116.62 10,044.12 10,044.12 2040977 08/06/14 12276 KONECRANES INC SDG00916952 07/09/14 HOIST CERTIFICATION 800.00 AS NEEDED PAVING SERVICES FY15 18,882.38 18,882.38 2040976 08/06/14 05840 KIRK PAVING INC 5603 07/09/14 AS NEEDED PAVING SERVICES FY15 2041078 08/20/14 05840 KIRK PAVING INC 5610 07/25/14 1,880.00 2041024 08/13/14 15759 KATHY PAGE Ref002435445 08/11/14 UB Refund Cst #0000187518 45.20 45.20 75.00 75.00 2041077 08/20/14 15713 KAPISH NORTH AMERICA SVCS INC 3083 06/03/14 ANNUAL MAINTENANCE (7/1/14-6/30/15)1,880.00 UB Refund Cst #0000059612 30.00 30.00 2040924 07/30/14 15743 JUAN MERCADO Ref002435276 07/28/14 UB Refund Cst #0000196451 2041023 08/13/14 15715 JOSE SEGURA Ref002435442 08/11/14 74.60 2040923 07/30/14 15715 JOSE SEGURA Ref002435268 07/28/14 UB Refund Cst #0000059612 30.00 30.00 9.84 9.84 2041022 08/13/14 15756 JOCELYN DELROSARIO Ref002435441 08/11/14 UB Refund Cst #0000027710 74.60 DUSTO INSPECTIONS (JULY 2014)100.00 100.00 2040922 07/30/14 15740 JESSE GARCIA Ref002435273 07/28/14 UB Refund Cst #0000188361 07/28/14 UB Refund Cst #0000197806 86.21 86.21 2041076 08/20/14 02269 JENAL ENGINEERING CORP 141533 08/01/14 -3,000.00 625903 07/22/14 CHLORINE TP 4,684.65 2040921 07/30/14 15744 JEFF STEVENSON Ref002435277 624451 07/08/14 CHLORINE TP 4,684.65 2041075 08/20/14 10563 JCI JONES CHEMICALS INC 625944 CREDIT MEMO 1,159.35 2040975 08/06/14 10563 JCI JONES CHEMICALS INC 624513 CREDIT MEMO -3,000.00 38.28 38.28 2041074 08/20/14 03077 JANI-KING OF CALIFORNIA INC SDO07140140 07/01/14 JANITORIAL SERVICES (JULY 2014)1,159.35 PRESSURE TRANSMITTERS 2,204.76 2,204.76 2040920 07/30/14 15734 JAMES BLAKE Ref002435266 07/28/14 UB Refund Cst #0000040490 2041073 08/20/14 03368 INVENSYS SYSTEMS INC 93133551 07/30/14 Page 6 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 4,581.07 1,218.68 1,218.68 SMARTNET (7/7/14-7/6/15)12,070.25 12,070.25204108208/20/14 14856 NEXUS IS INC JC643962 07/22/14 8,173.44 2040933 07/30/14 14856 NEXUS IS INC JC642303 06/06/14 PROFESSIONAL SERVICES 2,498.18 2,498.18 78.00 78.00 2040985 08/06/14 08531 NEWEST CONSTRUCTION 201405 07/09/14 CONVEYOR INSTALL 8,173.44 BI-WEEKLY DEFERRED COMP PLAN 7,058.27 7,058.27 2040984 08/06/14 00459 NATIONAL NOTARY ASSOCIATION 550869 07/14/14 NNA E&O RENEWAL 3 YRS 2041029 08/13/14 03523 NATIONAL DEFERRED COMPENSATION Ben2435516 08/14/14 450.00 2040932 07/30/14 03523 NATIONAL DEFERRED COMPENSATION Ben2435329 07/31/14 BI-WEEKLY DEFERRED COMP PLAN 7,558.27 7,558.27 78.55 78.55 2040931 07/30/14 15620 MY LITTLE PONY RIDES 62125 A 07/21/14 OTAY PICNIC 450.00 UNIFORM SERVICES 89.75 89.75 2041028 08/13/14 15757 MONICA HERNANDEZ Ref002435443 08/11/14 UB Refund Cst #0000072462 2040930 07/30/14 15136 MISSION UNIFORM SERVICE 340292143 07/01/14 340295364 07/22/14 UNIFORM SERVICES 89.75 340296439 07/29/14 UNIFORM SERVICES 89.75 340295359 07/22/14 UNIFORM SERVICES 114.17 340296435 07/29/14 UNIFORM SERVICES 114.17 UNIFORM SERVICES 405.42 340296436 07/29/14 UNIFORM SERVICES 405.42 340293249 07/08/14 UNIFORM SERVICES 89.75 2041081 08/20/14 15136 MISSION UNIFORM SERVICE 340295360 07/22/14 340294303 07/15/14 UNIFORM SERVICES 114.17 340294307 07/15/14 UNIFORM SERVICES 89.75 405.42 340294304 07/15/14 UNIFORM SERVICES 405.42 340293244 07/08/14 UNIFORM SERVICES 114.17 JANITORIAL SUPPLIES 1,408.40 1,408.40 2040983 08/06/14 15136 MISSION UNIFORM SERVICE 340293245 07/08/14 UNIFORM SERVICES 2040982 08/06/14 00237 MISSION JANITORIAL & ABRASIVE 41928200 07/10/14 8,364.91 2041027 08/13/14 15755 MICHAEL HAMMACK Ref002435440 08/11/14 UB Refund Cst #0000017662 18.55 18.55 466.43 466.43 2040981 08/06/14 01824 MERKEL & ASSOCIATES INC 14071401 07/14/14 ENVIRONMENTAL SERVICES (6/1/14-6/30/14)8,364.91 REPROGRAPHICS SERVICES 1,329.38 1,329.38 2040980 08/06/14 01183 MCMASTER-CARR SUPPLY CO 94631083 07/21/14 SCADA MATERIALS 2041026 08/13/14 02882 MAYER REPROGRAPHICS INC 0088040IN 08/04/14 REPROGRAPHICS SERVICES 2,740.13 0087811IN 07/21/14 REPROGRAPHICS SERVICES 1,840.94 2040979 08/06/14 02882 MAYER REPROGRAPHICS INC 0087913IN 07/25/14 115.00 2041080 08/20/14 12004 MASTER METER SYSTEMS INC 0066137IN 08/01/14 SUPPORT & MAINTENANCE (AUG 2014-AUG 2015)1,500.00 1,500.00 2041079 08/20/14 14364 MARTIN, DAN 49389 08/18/14 LICENSE RENEWAL 115.00 Page 7 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 440.13 13,233.76 6,736.20 94.50O000000011608/08/14 REIMBURSEMENT 8.00 45.37 2041031 08/13/14 02925 RAHDERS, DOUGLAS O0000000115 08/08/14 REIMBURSEMENT 86.50 172,005.39 172,005.39 2040991 08/06/14 01342 R J SAFETY SUPPLY CO INC 32628902 07/11/14 SAFETY SUPPLIES 45.37 BI-WEEKLY PERS CONTRIBUTION 173,241.69 173,241.69 2041091 08/20/14 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2435512 08/14/14 BI-WEEKLY PERS CONTRIBUTION 2040990 08/06/14 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2435325 07/31/14 38.72 2041090 08/20/14 13059 PRIORITY BUILDING SERVICES 40208 07/01/14 JANITORIAL SERVICES (JULY 2014)3,924.48 3,924.48 7,240.00 7,240.00 2041089 08/20/14 15642 PRINT BUTTON, THE 6868 07/31/14 BUSINESS CARDS 38.72 TRAVEL EXPENSE REIMB (7/23/14-7/25/14)1,654.70 1,654.70 2041088 08/20/14 10819 PREDICTIVE MAINTENANCE 141137 07/28/14 VIBRATION TESTING SERVICE 2040934 07/30/14 03351 POSADA, ROD 072314072514 07/28/14 38.12 2041087 08/20/14 15081 PINOMAKI DESIGN 4561 08/01/14 GRAPHIC DESIGN 275.00 275.00 701.97 701.97 2041030 08/13/14 15758 PHYLLIS GRITTS Ref002435444 08/11/14 UB Refund Cst #0000155031 38.12 PHONE PAYMENT SVCS (JULY 2014)54.10 54.10 2040989 08/06/14 00137 PETTY CASH CUSTODIAN 080514 08/05/14 PETTY CASH REIMBURSEMENT 2041086 08/20/14 05497 PAYPAL INC 33836700 07/31/14 INVENTORY 4,693.92 300119 07/18/14 AVK FLOWGUARD 2,042.28 300232 07/31/14 BOLTS & GASKETS 497.32 2040988 08/06/14 01002 PACIFIC PIPELINE SUPPLY 167774 07/18/14 300046 07/30/14 HYDRANT CAPS 2,532.60 300175 07/25/14 AVK FLOWGUARD 2,042.28 104.92 104.92 2041085 08/20/14 01002 PACIFIC PIPELINE SUPPLY 300234 07/31/14 INVENTORY 8,161.56 OFFICE SUPPLIES 53.01 53.01 2041084 08/20/14 03149 ON SITE LASER LLC 48589 08/06/14 PRINTER SERVICE (8/5/14) 720691405001 07/16/14 OFFICE SUPPLIES 11.92 2041083 08/20/14 00510 OFFICE DEPOT INC 722053204001 07/31/14 719863438001 07/11/14 OFFICE SUPPLIES 48.87 719863836001 07/11/14 OFFICE SUPPLIES 11.92 718704449002 07/09/14 OFFICE SUPPLIES 139.70 720879616001 07/18/14 OFFICE SUPPLIES 79.13 36,000.00 36,000.00 2040987 08/06/14 00510 OFFICE DEPOT INC 720691205001 07/16/14 OFFICE SUPPLIES 148.59 SMARTNET (7/7/14-7/6/15)12,070.25 12,070.25 2040986 08/06/14 14856 NEXUS IS INC SVC0075325 07/21/14 PROFESSIONAL SERVICES (7/1/14-6/30/15) 2041082 08/20/14 14856 NEXUS IS INC JC643962 07/22/14 Page 8 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 260.70 346.50 110,760.98 80,696.24 UTILITY EXPENSES (MONTHLY)114,739.92 114,739.92204103408/13/14 00121 SAN DIEGO GAS & ELECTRIC 080414 08/04/14 071814 07/18/14 UTILITY EXPENSES (MONTHLY)8,082.53 072314 07/23/14 UTILITY EXPENSES (MONTHLY)1,033.38 UTILITY EXPENSES (MONTHLY)43,898.63 071814a 07/18/14 UTILITY EXPENSES (MONTHLY)27,681.70 2040939 07/30/14 00121 SAN DIEGO GAS & ELECTRIC 072414 07/24/14 UTILITY EXPENSES (MONTHLY)71,441.91 072414a 08/04/14 UTILITY EXPENSES (MONTHLY)39,319.07 455135 08/01/14 BID ADVERTISEMENT 105.60 2040999 08/06/14 00121 SAN DIEGO GAS & ELECTRIC 072514 07/25/14 BID ADVERTISEMENT 135.30 453328 07/24/14 BID ADVERTISEMENT 105.60 2041096 08/20/14 00247 SAN DIEGO DAILY TRANSCRIPT 453258 07/23/14 BID ADVERTISEMENT (R2116)151.80 452336 07/18/14 BID ADVERTISEMENT 108.90 2040998 08/06/14 00247 SAN DIEGO DAILY TRANSCRIPT 450777 07/09/14 460.90 2040997 08/06/14 00003 SAN DIEGO COUNTY WATER AUTH 0000001048 07/15/14 HOME WATER USE EVALUATION 906.50 906.50 460.90 460.90 2041033 08/13/14 03752 SAN DIEGO COUNTY SHERIFF Ben2435522 08/14/14 BI-WEEKLY PAYROLL DEDUCTION 460.90 ASSESSOR DATA 125.00 125.00 2040938 07/30/14 03752 SAN DIEGO COUNTY SHERIFF Ben2435337 07/31/14 BI-WEEKLY PAYROLL DEDUCTION 2041095 08/20/14 02586 SAN DIEGO COUNTY ASSESSOR 2014053 08/04/14 1,500.00 2041094 08/20/14 09148 S & J SUPPLY COMPANY INC S100041218001 08/04/14 INVENTORY 4,059.73 4,059.73 145.00 145.00 2040996 08/06/14 15753 RUDENCIO BEJA UB623101225 08/04/14 CUSTOMER REFUND 1,500.00 UB Refund Cst #0000177205 37.62 37.62 2041032 08/13/14 01700 RUBALCAVA, GILBERT O0000000117 08/08/14 REIMBURSEMENT 2040937 07/30/14 15738 ROSE GALIBUT Ref002435271 07/28/14 1,102.50 2040936 07/30/14 15742 ROGER APES Ref002435275 07/28/14 UB Refund Cst #0000196250 82.17 82.17 577.50 577.50 2040995 08/06/14 00521 RICK POST WELD & WET TAPPING 9756 07/10/14 WELDING SERVICES (6/24/14 & 6/26/14)1,102.50 CAMPO ROAD SUPPORT (5/31/14-6/30/14)30,551.66 30,551.66 2041093 08/20/14 00521 RICK POST WELD & WET TAPPING 9778 08/04/14 WELDING ON 21"CCP 2040994 08/06/14 08972 RICK ENGINEERING COMPANY 0037948 07/10/14 556.25 2041092 08/20/14 15768 RENATO OPENINAO 250317421 08/15/14 REFUND OF OVERPAYMENT 688.35 688.35 419.50 419.50 2040993 08/06/14 01890 RECON 49604 07/09/14 PREPARATION - SUBAREA PLAN (5/10/14-6/30/14)556.25 COMPUTER LOAN 1,320.58 1,320.58 2040992 08/06/14 15754 REBECCA STACY UB250220895 08/04/14 CUSTOMER REFUND 2040935 07/30/14 13389 RAMOS-KROGMAN, TITA 072114 07/21/14 Page 9 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,753.00 25,037.84 17,000.00 1,683.07 UNDERGROUND ALERTS (MONTHLY)378.00 378.00 890698 07/23/14 PRESSURE MODULE CALIBRATION 287.90 2041102 08/20/14 00427 UNDERGROUND SERVICE ALERT OF 720140483 08/01/14 215.32 215.32 2041101 08/20/14 00870 TRANSCAT INC 892715 07/29/14 PRESSURE MODULE CALIBRATION 1,395.17 CONSULTANT SERVICES (THRU 6/29/14)28,675.42 28,675.42 2041006 08/06/14 00870 TRANSCAT INC 889014 07/17/14 FLUKE 789 CALIBRATION 2041005 08/06/14 15398 TIMMONS GROUP INC 161747 07/10/14 53.53 2041004 08/06/14 14177 THOMPSON, MITCHELL 070114073114 07/30/14 EXPENSE REIMBURSEMENT (JULY 2014)13.00 13.00 36.49 36.49 2040944 07/30/14 15749 THEODORE WILLAMS Ref002435282 07/28/14 UB Refund Cst #0000207542 53.53 SCADA UPGRADES 25,000.00 25,000.00 2040943 07/30/14 15730 TERESA LINDSEY Ref002435262 07/28/14 UB Refund Cst #0000000321 2041037 08/13/14 02376 TECHKNOWSION INC 2519 06/30/14 10,750.00 2521 07/11/14 SCADA UPGRADES 5,250.00 2522 07/11/14 SCADA UPGRADES 1,000.00 UB Refund Cst #0000204668 166.55 166.55 2041003 08/06/14 02376 TECHKNOWSION INC 2520 07/11/14 SCADA UPGRADES 07/31/14 OWD SHARE O&M (11/1/13-10/31/14)28,750.00 28,750.00 2040942 07/30/14 15746 TANIA DELGADO Ref002435279 07/28/14 14,849.98 399995 07/15/14 DIESEL FUEL 10,187.86 2041100 08/20/14 00408 SWEETWATER AUTHORITY 5113.40-7 ANALYTICAL SERVICES (7/1/14-6/30/15)3,500.00 3,500.00 2041002 08/06/14 10339 SUPREME OIL COMPANY 399991 07/15/14 UNLEADED C53999 07/15/14 IT AC MAINTENANCE (MONTHLY)205.00 2040941 07/30/14 10670 STANDARD & POOR'S FINANCIAL 10348649 07/08/14 AC MAINTENANCE (MONTHLY)1,068.00 C54008 07/15/14 AC MAINTENANCE (MONTHLY)480.00 2041099 08/20/14 03103 SOUTHCOAST HEATING &C53990 07/15/14 7.52 2041098 08/20/14 11618 SOUTH COAST COPY SYSTEMS AR156671 07/31/14 COPIER MAINTENANCE (AUG 2014)1,682.59 1,682.59 538.00 538.00 2040940 07/30/14 15747 SOKNIEM DAVIS Ref002435280 07/28/14 UB Refund Cst #0000205973 7.52 DESAL PROJ CONSULTANT (JULY 2014)4,000.00 4,000.00 2041001 08/06/14 03439 SO CAL ALLIANCE OF PUBLICLY 141562 07/01/14 SCAP MEMBERSHIP RENEWAL FY14-15 2041036 08/13/14 13327 SILVA-SILVA INTERNATIONAL 1408 08/01/14 485.00 2041097 08/20/14 14785 SEW-EURODRIVE INC 139196 07/29/14 FILTER GEARDRIVE 4,017.73 4,017.73 48.24 48.24 2041000 08/06/14 15708 SEISMIC SWITCH INC 9975 07/08/14 SEISMIC SWITCH 485.00 UTILITY EXPENSES (MONTHLY)114,739.92 114,739.92 2041035 08/13/14 15760 SCT PROPERTIES Ref002435446 08/11/14 UB Refund Cst #0000205634 2041034 08/13/14 00121 SAN DIEGO GAS & ELECTRIC 080414 08/04/14 Page 10 of 11 Check Total Amount CHECK REGISTER Otay Water District Date Range: 7/24/2014 - 8/20/2014 Check #Date Vendor Vendor Name Invoice Inv. Date Description 6,745.80 903.67 1,539.25 30.24 30.24 Amount Pd Total:1,462,263.70 Check Grand Total:1,462,263.70 BEE REMOVAL 115.00 115.00 2041105 08/20/14 07780 WEBER SCIENTIFIC 641223 07/25/14 LABORATORY SUPPLIES 2041011 08/06/14 01343 WE GOT YA PEST CONTROL 90513 07/09/14 230.76 2041104 08/20/14 03781 WATTON, MARK 060814073114 08/08/14 EXPENSE REIMBURSEMENT (6/8/14-7/31/14)244.48 244.48 230.76 230.76 2041042 08/13/14 15709 WASHINGTON STATE SUPPORT Ben2435526 08/14/14 BI-WEEKLY PAYROLL DEDUCTION 230.76 UB Refund Cst #0000208070 1,735.12 1,735.12 2040947 07/30/14 15709 WASHINGTON STATE SUPPORT Ben2435341 07/31/14 BI-WEEKLY PAYROLL DEDUCTION 2041041 08/13/14 15762 VSS INTERNATIONAL INC Ref002435448 08/11/14 1,765.85 2041040 08/13/14 06414 VANTAGEPOINT TRANSFER AGENTS Ben2435520 08/14/14 BI-WEEKLY 401A PLAN 1,720.85 1,720.85 12,051.02 12,051.02 2040946 07/30/14 06414 VANTAGEPOINT TRANSFER AGENTS Ben2435333 07/31/14 BI-WEEKLY 401A PLAN 1,765.85 BI-WEEKLY DEFERRED COMP PLAN 12,033.37 12,033.37 2041039 08/13/14 01095 VANTAGEPOINT TRANSFER AGENTS Ben2435518 08/14/14 BI-WEEKLY DEFERRED COMP PLAN 546282 07/29/14 ALARM MONITORING 265.40 2040945 07/30/14 01095 VANTAGEPOINT TRANSFER AGENTS Ben2435331 07/31/14 660337 07/29/14 ALARM RESPONSE 351.45 695230 07/31/14 ALARM RESPONSE 351.45 434.24 2041010 08/06/14 06829 US SECURITY ASSOCIATES INC 502508 07/29/14 ALARM RESPONSE 570.95 495.76 495.76 2041103 08/20/14 08402 US POSTMASTER 4805 08/13/14 POSTAGE 434.24 CAL CARD EXPENSES (MONTHLY)691.42 691.42 2041009 08/06/14 08402 US POSTMASTER OWD8941 07/29/14 POSTAGE E000080 07/22/14 CAL CARD EXPENSES (MONTHLY)189.00 2041038 08/13/14 07674 US BANK MW0714 07/22/14 CAL CARD EXPENSES (MONTHLY)457.72 E000081 07/22/14 CAL CARD EXPENSES (MONTHLY)256.95 2041008 08/06/14 07674 US BANK SC0714 07/22/14 3,105.00 13802 08/04/14 ADM FEES 2013 BOND (6/1/14-6/30/15)3,040.80 13579 07/17/14 ADM FEES FOR ID 27 (7/1/14-6/30/15)600.00 2041007 08/06/14 13047 UNION BANK NA 13688 07/17/14 ADM FEES 2010 BOND (7/1/14-6/30/15) Page 11 of 11 OTAY Duration Report Sorted by Investment Type -Investment Type Through 07/31/2014 Investment Book Par Securi~ ID Investment# Fund Issuer Class Value Value 3135GOYE7 2286 99 Federal National Mortage Assoc Fair 2,002,411.56 2,000,000.00 2050003183-6 2283 99 California Bank & Trust Amort 81 ,784.76 81,784.76 LAIF BABS 2010 9012 99 STATE OF CALIFORNIA Fair 0.00 0.00 LA IF 9001 99 STATE OF CALIFORNIA Fair 9,972,020.57 9,972,020.57 SO COUNTY 9007 99 San Diego County Fair 15,270,913.59 15,270,913.59 Report Total 81,064,388.74 81,059,718.92 Run Date: 0812012014 -11:12 Page 2 Market Current YTM Value Rate 360 1,999,000.00 .6250000 0.558 81,784.76 .0300000 0.030 0.00 .2280000 0.225 9,974,999.71 .2440000 0.241 15,192,000.00 .4540000 0.448 80,887,017.77 Current Yield 0.649 0.030 0.228 0.244 0.454 0.667 Maturity/ Modified Call Date Duration 08/26/2016 2.048 01/22/2016 1.473 0.000 0.000 0.000 1.543 Portfolio OTAY AP DU (PRF_DU) 7.1.1 Report Ver. 7.3.3b