HomeMy WebLinkAbout11-07-12 Board Packet 1
OTAY WATER DISTRICT
BOARD OF DIRECTORS MEETING
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
WEDNESDAY
November 7, 2012
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. WATER CONSERVATION GARDEN UPDATE (JOHN BOLTHOUSE, EXECU-
TIVE DIRECTOR, AND RICHARD WRIGHT, PRESIDENT, BOARD OF DIREC-
TORS)
5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
CONSENT CALENDAR
6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
a) ADOPT RESOLUTION NO. 4205 TO AUTHORIZE THE GENERAL
MANAGER TO IMPLEMENT REQUIREMENTS OF THE CALIFORNIA
PUBLIC EMPLOYEES’ PENSION REFORM ACT OF 2013, WHICH WILL
BECOME EFFECTIVE JANUARY 1, 2013; AND ADOPT RESOLUTION
NO. 4206 TO AMEND RETIREE HEALTH BENEFITS FOR UNREPRE-
SENTED EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013
b) ADOPT ORDINANCE NO. 536 AMENDING THE DISTRICT’S CODE OF
ORDINANCES SECTION 2.01, AUTHORITY OF THE GENERAL MAN-
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AGER, TO FORMALIZE THE GENERAL MANAGER’S OR DESIGNEE’S
AUTHORITY TO MANAGE COLLECTION ACTIVITIES
c) APPROVE A 3-YEAR O&M AGREEMENT WITH SOFTCHOICE COR-
PORATION FOR MICROSOFT SOFTWARE LICENSE SUPPORT IN
THE AMOUNT OF $250,638.00, CONSISTING OF THREE (3) ANNUAL
PAYMENTS OF APPROXIMATELY $83,546.00
d) APPROVE A PROFESSIONAL AS-NEEDED GEOTECHNICAL SER-
VICES CONTRACT WITH SOUTHERN CALIFORNIA SOIL & TESTING,
INC. IN AN AMOUNT NOT-TO-EXCEED $175,000 FOR A PERIOD OF
THREE (3) FISCAL YEARS (FY 2013 TO FY 2015)
e) APPROVE CREDIT CHANGE ORDER NO. 1 TO THE EXISTING CON-
TRACT WITH GARCIA JUAREZ CONSTRUCTION, INC. IN THE
AMOUNT OF <$22,040.00> FOR THE CALAVO GARDENS SEWER
REHABILITATION PROJECT
ACTION ITEMS
7. FINANCE, ADMINISTRATION AND INFORMATION TECHNOLOGY
a) APPROVE THE DISTRICT’S AUDITED FINANCIAL STATEMENTS, IN-
CLUDING THE INDEPENDENT AUDITORS’ UNQUALIFIED OPINION,
FOR FISCAL YEAR ENDED JUNE 30, 2012 (KOEPPEN)
8. BOARD
a) DISCUSSION OF 2012 AND 2013 BOARD MEETING CALENDAR
INFORMATIONAL ITEMS
9. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA-
TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING
AGENDA ITEMS:
a) INFORMATIONAL REPORT ON THE EMERGENCY REPAIR COST FOR
A MAIN BREAK AT THE 1400 BLOCK OF TELEGRAPH CANYON ROAD
(WATTON)
b) INFORMATIONAL REPORT ON THE PROPOSED APPLICATION TO
THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFOR-
NIA (CPUC) BY SAN DIEGO GAS & ELECTRIC (SDG&E) FOR THE AU-
THORITY TO UPDATE MARGINAL COSTS, COST ALLOCATION, AND
ELECTRIC RATE DESIGN (KENNEDY)
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REPORTS
10. GENERAL MANAGER’S REPORT
a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE
11. DIRECTORS' REPORTS/REQUESTS
12. PRESIDENT’S REPORT/REQUESTS
13. ADJOURNMENT
All items appearing on this agenda, whether or not expressly listed for action, may be
deliberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the
District’s website at www.otaywater.gov. Written changes to any items to be considered
at the open meeting, or to any attachments, will be posted on the District’s website.
Copies of the Agenda and all attachments are also available through the District
Secretary by contacting her at (619) 670-2280.
If you have any disability which would require accommodation in order to enable you to
participate in this meeting, please call the District Secretary at (619) 670-2280 at least
24 hours prior to the meeting.
Certification of Posting
I certify that on November 2, 2012, 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 November 2, 2012.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2012
SUBMITTED BY:
Kelli Williamson
Human Resources Manager
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Rom Sarno, Chief of Administration
German Alvarez, Asst. General Manager
Mark Watton, General Manager
SUBJECT: ADOPT RESOLUTION #4205 TO AUTHORIZE THE GENERAL MANAGER TO
IMPLEMENT THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES’
PENSION REFORM ACT OF 2013 AND ADOPT RESOLUTION #4206 TO AMEND
RETIREE HEALTH BENEFITS FOR UNREPRESENTED EMPLOYEES HIRED ON
OR AFTER JANUARY 1, 2013
GENERAL MANAGER’S RECOMMENDATION:
Adopt Resolution #4205 to authorize the General Manager to implement
the requirements of the California Public Employees’ Pension Reform
Act of 2013 which will become effective January 1, 2013 and
Resolution #4206 to amend Retiree Health Benefits for Unrepresented
Employees hired on or after January 1, 2013.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To request that the Board of Directors authorize the General Manager
to take steps necessary to implement the requirements of the
California Public Employees’ Pension Reform Act of 2013.
AGENDA ITEM 6a
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ANALYSIS:
The California Public Employees’ Pension Reform Act of 2013 (PEPRA)
was signed into law on September 12, 2012 and will become effective
on January 1, 2013. The purpose of the law is to lower the overall
cost of pensions in California.
The following is a summary of some of the key provisions of the new
law:
New members are defined as any employee new to any public
retirement system on or after 1/1/13, an individual who moved
between retirement systems without reciprocity, or an individual
who moved between retirement systems with more than a six month
break in service
New members will have the following Pension Plan effective
1/1/13:
o 2% @ 62, up to 2.5% @ 67, early retirement 1% @ 52
o Final compensation based on highest 36 months of employment
o Cap based on the social security limit (2012 limit is
$110,100)
o Requires that all new members are offered the same retiree
health benefits vesting schedule
o New members must pay at least 50% of the Normal Cost of
Benefits
Requires employer to contribute the same percentage for all
employees (upon negotiating a new labor agreement)
Prohibits purchase of non-qualified service after 12/31/12,
retro-active Pension increases, and enhanced supplemental
Defined Benefit Plans
Sets limits to Post-Retirement Public Employment
Certain Felony convictions forfeit pension benefits
CalPERS is working to get information to the employers as soon as
possible, given that the law goes into effect on January 1, 2013.
Because of the fast-approaching effective date of the new provisions,
the General Manager requests that the Board of Directors authorize
the General Manager to take any and all steps necessary to implement
the requirements of the California Public Employees’ Pension Reform
Act of 2013 to be in compliance with the law on January 1, 2013
including, but not limited to, executing documents required by
CalPERS, implementing Memorandum of Understanding Side Letter
Agreements, and instituting a uniform retiree health vesting schedule
for all employees hired after January 1, 2013.
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Resolution #4205
This Resolution authorizes and directs the General Manager to take
any and all actions necessary to implement the required changes,
including, but not limited to, adopting resolutions required by
CalPERS, and entering into a Side Letter Agreements with the
District’s Represented Employees.
Resolution #4206
This Resolution authorizes an amendment to the Retiree Health
Benefits for Unrepresented Employees hired on or after January 1,
2013 pursuant to the California Public Pension Reform Act of 2013.
The current Memorandum of Understanding states that the District’s
Represented Employees require 20 years of employment, while the
District’s Unrepresented Employees, Resolution #4183, require 15
years of employment in order to receive Retiree Health Benefits at
retirement. In order to provide an equal vesting schedule for all
employees hired on or after January 1, 2013, newly-hired
Unrepresented Employees will require 20 years of employment in order
to receive Retiree Health Benefits.
Employee Association
The District will meet and discuss the required new provisions with
The Otay Water District Employees Association as necessary and
implement any required Side Letter Agreements.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
There will be no reduction to the existing unfunded liability for the
Pension. There will be small savings in the Annual Required
Contribution in the short term; however, it will take time for any
material savings to appear depending on how much turnover agencies
have. Representatives from CalPERS indicate that it will be 25-30
years to realize significant savings.
With regard to Retiree Health Benefits, the increase in vesting
period for Unrepresented Employees hired after January 1, 2013 will
be provided to the Actuary and included in future actuarial studies
that are conducted every two years. The savings is also likely to be
small in the short term and will increase over time.
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STRATEGIC GOAL:
N/A
LEGAL IMPACT:
N/A
Attachments: Attachment A – Committee Action
Attachment B – Resolution #4205
Attachment C – Resolution #4206
Attachment D – Powerpoint Presentation
ATTACHMENT A
SUBJECT/PROJECT:
ADOPT RESOLUTION #4205 TO AUTHORIZE GENERAL MANAGER TO
IMPLEMENT REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES’
PENSION REFORM ACT OF 2013 WHICH WILL BECOME EFFECTIVE
JANUARY 1, 2013 AND RESOLUTION #4206 TO AMEND RETIREE
HEALTH BENEFITS FOR UNREPRESENTED EMPLOYEES HIRED ON OR
AFTER JANUARY 1, 2013
COMMITTEE ACTION:
The Finance, Administration and Communications Committee reviewed this
item at a meeting held on October 23, 2012 and the following comments
were made:
Staff indicated that the State Governor has signed into law the
California Public Employees’ Pension Reform Act of 2013 which
becomes effective on January 1, 2013.
The objective of the pension reform is to lower the overall cost
of pension in California. It was indicated that there is more of
an impact on new employees/members than on current
employees/members. New members are defined as an individual:
Who becomes a new member to any public retirement system
on or after January 1, 2013
Who moved between retirement systems where there is no
reciprocity
Who moved between retirement systems with more than six
(6) months break in service
If none of these conditions apply, then the individual is
considered a current member.
Staff reviewed the changes implemented by the new Reform Act:
Benefit formulas have been reduced and retirement ages
have been increased for new members:
o 2% at age 62 up to a maximum of 2.5% at age 67
o The new minimum retirement age is 52 with 1%
The current benefit formulas for current members is 2.7%
at age 55 with a minimum retirement age of 50 with 2%
It requires final compensation to be based on the highest
three-year average for new members. Current members final
compensation is based on the highest single year average.
It caps earnable compensation for calculating pension
benefits for new members. The cap for 2012 is $110,100
for those agencies who are in Social Security (this is
100% of the social security limit) and for those not in
Social Security, the 2012 cap is $132,120. These caps are
subject to change based on the CPI each year. The cap for
current members is $250,000 with a COLA up to 2% based on
CPI each year Staff noted that there have been years in
the past when the District’s retirees did not receive a
COLA as the CPI did not reflect inflationary impacts on
goods and services.
Requires new members to pay at least 50% of the Normal
Cost of Benefits or the current contribution rate of
similarly situated employees, whichever is greater. Staff
is waiting to receive this figure from CalPERS which is
expected sometime in December. The District’s current
employees are contributing 8%, which will likely be more
than 50% of the Normal Cost of Benefits for new members.
Requires the agency to contribute the same percentage for
all employees (upon the negotiation of a new labor
agreement). The District’s current MOU is scheduled to
expire in June 2013. The District is not impacted by this
new requirement as its employees are already contributing
the full 8%.
Requires that new members be offered the same retiree
health benefits vesting schedule. The District’s current
vesting schedule for unrepresented is 15 years and
represented employees vest in 20 years. Starting January
1, 2013, all new hired employees’ (unrepresented and
represented) retiree health benefits vesting schedule will
be the same; 20 years.
The following provisions apply to all members:
o The purchase of non-qualified service credits (“Air
Time”) will be prohibited after December 31, 2012.
The District has provided a notice to staff to advise
them of this new provision so those interested in
purchasing “Air Time” may submit their applications
before the end of the year.
o Prohibits employers from creating their own benefits
plan structure that is equivalent to the provisions
that the law just changed.
o Prohibits retroactive pension increases. If agencies
make changes to their existing plan, it may only
become effective going forward and cannot be
implemented retroactively.
o Sets limits to Post-Retirement Public Employment. If
there is less than a six (6) month break in service,
the employment of a retiree must be approved by the
agency’s board in open session. If there is a a six
(6) month break in service, retirees may be hired
subject to:
The need for an emergency required service or
for skills needed to perform work for a
limited time duration.
The retiree may not have received
unemployment within 12 months.
This prevents a retiree from collecting both pension
benefits and a salary by requiring that the retiree
“unretire” before he/she may be hired back.
o Pension benefits are forfeited if an individual is
convicted of certain felony offenses for conduct
arising out of an employee’s duties (ie. bribery,
etc.). This prevents employees, who are convicted of
bribery or other felony charges (arising from their
duties), from collecting pension checks while serving
time.
Staff will meet and discuss the required new provisions with the
District’s Employees Association as necessary and implement any
required Side Letter Agreements.
The committee inquired if there are any potential concerns by the
Association with the implementation of the law. Staff indicated
that they did not feel that there would be any concerns.
Following the discussion, the Finance, Administration and
Communications Committee supported staffs’ recommendation and
presentation to the full board as a consent item.
Attachment B
RESOLUTION NO. 4205
RESOLUTION OF THE BOARD OF DIRECTORS
OF OTAY WATER DISTRICT TO AUTHORIZE
THE GENERAL MANAGER TO IMPLEMENT
REQUIREMENTS OF CALPERS RELATED TO CALIFORNIA
PUBLIC EMPLOYEES’ PENSION REFORM ACT OF 2013
WHEREAS, the California state legislature recently enacted the
California Public Employees’ Pension Reform Act of 2013 (the
“Act”); and
WHEREAS, the Act goes into effect on January 1, 2013 and
requires a number of changes to the employee benefits provided
by the Otay Water District (“District”) to both new and existing
employees; and
WHEREAS, in order to comply with the January 1, 2013 effective
date for some of the changes required by the Act, a number of
actions will likely be required, including, but not limited to,
adopting resolutions required by CalPERS, and entering into side
letter agreements with the District’s Represented Employees,
prior to January 1, 2013,
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of
the Otay Water District authorizes and directs the General
Manager to take any and all actions necessary to implement the
changes required by the California Public Employees’ Pension
Reform Act of 2013.
President
ATTEST:
Secretary
Attachment B
APPROVED AS TO FORM:
District Counsel
I HEREBY CERTIFY that the foregoing Resolution No. 4205 was duly
adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at
a regular meeting thereof held on the 7th day of November, 2012
by the following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
Attachment C
RESOLUTION NO. 4206
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
OTAY WATER DISTRICT TO AMEND
RETIREE HEALTH BENEFITS FOR UNREPRESENTED
EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013,
PURSUANT TO THE CALIFORNIA PUBLIC EMPLOYEES’
PENSION REFORM ACT OF 2013
WHEREAS, in July and August of 2011, the Otay Water District
(“District”) approved changes to the level of Retiree Health Benefits
for both Unrepresented and Represented Employees; and
WHEREAS, subsequent to the approval and implementation of said
retiree health benefits, the California Public Employees’ Pension
Reform Act of 2013 (the “Act”) was enacted; and
WHEREAS, the District endeavors to comply with the Act,
including newly added Government Code section 7522.40 relating to
health benefit vesting schedules; and
WHEREAS, the District’s Represented Employees require 20 years
of employment under the current Memorandum of Understanding while the
District’s Unrepresented Employees require 15 years of employment
under the current resolution in order to receive Retiree Health
Benefits at retirement and, in order to provide an equal health
benefit vesting schedule for all employees hired after January 1,
Attachment C
2013, Unrepresented Employees hired on or after January 1, 2013 will
all require 20 years of employment; and
WHEREAS, this Resolution is intended only to identify the above
changes to the Unrepresented Employees’ Retiree Health Plan and is in
no way intended to nor shall it affect all other compensation and
benefits for Unrepresented Employees, as documented in other
policies, procedures, resolutions and other documents which
specifically identify such compensation and benefits, and which
compensation and benefits shall remain in full force and effect
unless specifically set forth herein,
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Otay Water District as follows:
1. That the Board of Directors hereby approves the changes to
retiree health benefits for any Unrepresented Employees hired on or
after January 1, 2013. These employees will be required to have 20
years of service instead of 15 years of service in order to receive
the Retiree Health Benefits; and
2. The effective date of this resolution shall be November 7,
2012.
BE IT FURTHER RESOLVED that the Board authorizes and directs the
appropriate staff of the District to take any and all actions
necessary to implement the above-referenced changes.
Attachment C
PASSED, APPROVED AND ADOPTED by the Board of Directors of the
Otay Water District at a regular meeting held this 7th day of
November, 2012.
_________________________
President
ATTEST:
__________________________
Secretary
APPROVED AS TO FORM:
District Counsel
I HEREBY CERTIFY that the foregoing Resolution No. 4206 was duly
adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at a
regular meeting thereof held on the 7th day of November, 2012 by the
following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
October 2012
Will go into effect January 1, 2013
Objective is to lower the overall cost of
pensions in California
More impact on new employees/members
than current employees/members
New members defined as:
New to any public retirement system on or after
1/1/13; or
An individual who moved between retirement
systems without reciprocity; or
An individual who moved between retirement
systems with more than six months break in service
Reduced Benefit Formulas and Increased
Retirement Ages (New Members)
2% at age 62 up to max of 2.5% at age 67
New minimum retirement at age 52 with 1%
(Current Members - 2.7% at age 55 with
minimum retirement at age 50 with 2%)
Requires Three-Year Final Compensation (New
Members)
Final compensation based on the highest
three-year average for New Members
(Current Members - Final compensation
based on the highest single year average)
Cap Compensation Earnable for Calculating Pension
Benefits (New Members)
For 2012 cap is $110,100 for those in Social Security
For 2012 cap is $132,120 for those not in Social
Security
Adjusted by CPI each year
(Current Members – Cap at $250,000; Up to 2%
COLA each year unless Agency contracts for higher
level)
Requires all New Members to pay at least 50%
of the Normal Cost of Benefits, or the current
contribution rate of similarly situated
employees, whichever is greater
Requires employer to contribute the same
percentage for all employees (upon negotiating
a new labor agreement)
Requires that all New Members are offered the
same retiree health benefits vesting schedule
Current Employees
Unrepresented – 15 years
Represented – 20 years
New Employees – 20 years for
Represented/Unrepresented
Additional Provisions that Apply to All Members:
Prohibits Purchase of Non-qualified Service after
12/31/12 (“Air Time”)
Prohibits Enhanced Supplemental Defined Benefit
Plans
Prohibits Retroactive Pension Increases
Sets Limits to Post-Retirement Public Employment
Certain Felony Convictions Forfeit Pension Benefits
The District will meet and discuss the required
new provisions with the Association as
necessary and implement any required Side
Letter Agreements.
Authorize the General Manager to implement
requirements of the California Public
Employees’ Pension Reform Act of 2013
Adopt Resolution #4205 to authorize the General
Manager to implement requirements of the Act
which will become effective January 1, 2013
Adopt Resolution #4206 to amend Retiree Health
Benefits for Unrepresented Employees hired on or
after January 1, 2013
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2012
SUBMITTED BY:
Alicia Mendez Schomer,
Customer Service Manager
PROJECT: DIV.
NO.
All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Adopt Ordinance No. 536 Amending the District’s Code of
Ordinances Section 2.01, Authority of the General Manager, to
Formalize the General Manager’s or Designee’s Authority to
Manage Collection Activities
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Ordinance No. 536 amending the District’s Code
of Ordinances Section 2.01, Authority of the General Manager, to
formalize the General Manager’s or designee’s authority to manage
collection activities.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To clarify the General Manager’s or designee’s authority to waive
payments, reduce payments, or extend payment plans for amounts due
the District. These collection efforts are authorized only when it
is in the best interest of the District. This change does not apply
to or limit corrections for billing or meter reading errors, as
outlined in Section 33.07 Adjustment for Meter Inaccuracies.
ANALYSIS:
The General Manager has broad authority to control the
administration, maintenance, operation and construction of the water
AGENDA ITEM 6b
and sewer systems and facilities of the District in an efficient
manner. The inclusion of this language in Section 2.01, Authority of
the General Manager, ensures that the Code of Ordinances expressly
provides authority to the General Manager or his designee to oversee
the collection efforts of all amounts due the District. These
efforts are already a part of the District’s collection efforts and
this recommended code change only memorializes the authority in a
more direct fashion. In the sections below, the internal and
external collection efforts are described, along with the existing
payment arrangement process.
Internal Collection Efforts
Partnered to every billing process is the collection effort. The
District’s finance department, more specifically the customer service
division, has been responsible for the collection efforts since the
District’s inception. The District has had great success in the area
of collections due in large part to the ability of the District to
shut-off water service. This level of success is shared by most
utilities. Below is a listing of the various collection efforts used
by the District:
1. Late Penalty Section 34.02 of the Code of Ordinances
authorizes a late payment charge of 5% of the total delinquent
amount. This charge is applied if full payment is not made on
or before the due date as printed on the customer’s bill. In
FY2012, Otay collected $763,578.00 in late fees.
2. Lock Process
Late notice message on current bill
Post card mailed
Courtesy call made (one call or two)
Account locked
Otay has approximately 50,000 accounts. On average, staff mails
1,750 postcards per month. The approximate cost of each
postcard is $0.74, which includes printing, mailing and
preparation by customer service representatives. An automated
courtesy call is made after the postcard is sent and prior to
the lock day. There is no additional fee to the District for
making this call as it is a standard feature of our phone
system. The District makes approximately 900 of these automated
calls a month. An average of 370 accounts are locked per
month. The cost of locking is offset by the $35 lock fee
assessed to the customer.
Based on these numbers, about 3.5% of Otay’s customers are sent
a delinquent postcard each month and .74% of customers are
locked every month. Over 80% of customers sent a postcard pay
their past due balance before they are locked.
3. Lien Process
Owners who have closed accounts and have a balance greater than
$100 are put into the lien process. In addition, any locked
owner accounts (still active in our system) with a past due
amount of more than $100 are added to this process. These
owners are first sent an “Intent to Lien” letter requesting
payment. If their payment is not received in 30 days, staff
files a lien with the County.
Each lien processed costs the District approximately $8.00 in
staff time and postage. Otay processes between 130 and 185
“Intent to Lien” letters a year and about 30% of customers pay
after receiving this letter. The District collects on
approximately 90% of its liens.
4. Collection via Property Tax Bills
Using the same criteria as the regular lien process, Otay
recovers outstanding owner balances through the property’s
annual tax bill. This listing is mainly comprised of three
groups of customers: (1) Unpaid sewer only accounts (2)
Customers with wells on their property who fail to pay the
monthly flat fee service, and (3) Owners with unpaid balances
and no current account. On May 31st of each year, Otay compiles
a list of owner accounts that are either closed or locked with a
balance greater than $100. These owners are sent a letter
stating that the account balance must be paid in 30 days or the
balance will be rolled over to their property tax bill. In
early July, owners that have not paid are sent a second letter
notifying them that the balance has been sent to the County and
will appear on their next property tax bill. In 2011, Otay sent
112 accounts totaling $35,231.76 in outstanding balances to the
County. To date, the District has received $34,102.72. This is
a collection rate of almost 97%. The cost of processing the tax
liens is approximately $2.30 per account in staff time and
postage.
5. Late Notices for Closed Accounts
Working with IT, customer service staff developed a new notice
to send to customers after their account has been closed and a
balance remains. This process began March 1st. Customers who
have closed their accounts and have not paid their balance by
the due date are sent a final bill. Currently, over 70% of
customers pay after receiving this notice. The cost of this
notice is approximately $1.10 in staff time and postage.
Because this process was recently implemented, the full impact
to the collection process cannot be determined. Based on
preliminary results, staff anticipates that it will reduce the
number of accounts being sent to outside collection agencies.
Prior to this process being implemented, staff would review
reports and manually send copies of closing bills to customers
with outstanding balances 30 days after their account had
closed. This new notice is more than just a copy of an old bill,
it states that the account is delinquent and payment is needed
immediately to avoid further action.
External Collection Efforts
The District uses two external collection agencies. TekCollect is
used for closed accounts that have provided a forwarding address.
They provide what they call their Phase I collection activity.
TekCollect will send three letters to attempt collection of the
balance and do automated calling if the phone numbers the District
provides are valid. They also report to credit bureaus for any
balance over $100.00. TekCollect charges the District $7.00 per
account for this service. Otay sends approximately 70 accounts to
TekCollect each month. The District sent $139,960.89 in uncollected
accounts to TekCollect from April 2011 to March 2012 and recovered
$44,524.40. This is a recovery rate of 31.81%. If the fee of $7.00
is deducted from the collection, the collection percentage is 27.39%.
Continental is used for closed accounts that have not provided a
forwarding address, residential accounts with high balances, or
commercial accounts. These accounts require a greater effort to
locate and the service uses skip tracing, live calling, and internet
research. Like TekCollect, they report to credit bureaus any balance
greater than $100. Continental Credit takes 40% of whatever they
collect and reimburses Otay 60%. Staff sends approximately 60
accounts to Continental a month. From April 2011-March 2012,
$136,006.62 was sent to Continental. Total recovery was $21,198.32
or 15.59%. From that total the 40% fee was kept by Continental,
making Otay’s recovery $12,718.99 or 9.35%.
Current Payment Arrangement Process
If the customer contacts the District during any of the above steps
in the collection process and offers to pay any portion of the amount
that is outstanding, standard industry accepted principals are used
to maximize the collections success. These tools include waiving
payments, reducing payments, and extending payment plans. These are
only used when in the best interest of the District to increase the
likelihood of collection.
As a matter of procedure, waivers or adjustments of fees and charges
up to $25 can be handled by any Customer Service Representative
(CSR). Customer Service Representative II’s and the Senior
Representatives are given authority to handle amounts up to $200.
Waivers or adjustments through this level are executed by the CSRs
and are all reviewed on a weekly basis by one of the Customer Service
Managers. Amounts greater than $200 but less than $1,000 are verified
and authorized by a Customer Service Manager prior to implementation.
On a weekly basis, the Chief Financial Officer reviews amounts
greater than $200 but less than $1,000. The General Manager
authorizes amounts greater than $1,000 but not more than $10,000.
Whenever possible, outstanding amounts due the District are put on
the customer’s water or sewer account making the charges inseparable
from the bill. This effort is the most cost effective as the
collection process is in place for customer accounts.
Neighboring agencies all follow similar methods for collection
recovery which are outlined in California Government Code sections:
Section 60373 Notification prior to disconnect.
Section 72101 Request for satisfactory payment arrangements.
Section 72102 Authority to lien property for delinquent charges.
Code of Ordinances
The addition to Section 2.01 of the Code memorializes the existing
process of collection. This clarifies the General Manager’s or
designee’s authority to waive payments, reduce payments, or extend
payment plans for amounts due the District. These collection efforts
are authorized only when it is in the best interest of the District
and ensures the efficient administration of the District’s
collections and claims activities.
FISCAL IMPACT:
None.
STRATEGIC GOAL:
Streamline customer service business processes.
LEGAL IMPACT:
None.
Attachments: Attachment A – Committee Action
Attachment B – Ordinance No. 536
Exhibit I – Strike-through Section 2.01
Exhibit II – Proposed Section 2.01
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Ordinance No. 536 Amending the District’s Code of
Ordinances Section 2.01, Authority of the General Manager,
to Formalize the General Manager’s or Designee’s Authority
to Manage Collection Activities
COMMITTEE ACTION:
The Finance, Administration and Communications Committee reviewed this
item at a meeting held on October 23, 2012 and the following comments
were made:
Staff wishes to formalize the General Manager’s or his designee’s
authority to manage collection activities. The proposed code
changes memorialize the existing collection process that is
already in practice.
It was indicated that the collection process begins with the
forwarding of a bill to District customers. If a customer does
not make payment by the due date on the bill, they will incur a
late penalty fee of 5% of the customer’s outstanding balance.
This penalty is codified in the District’s Code of Ordinances.
If the customer does not pay his/her next bill, the next step in
the collection process is to discontinue the customer’s water
service.
Prior to discontinuing service, the District will send notices to
the customer, place a message on follow-up bills, and place calls
to the customer. If payment is not received, the customer’s
service will be discontinued.
A majority of the time, when a customer’s service is
discontinued, they will make a payment on their account.
However, in situations where the customer continues to not pay
his/her bill, a lien would be placed on the property and once a
year, the District could place the lien amount on the customer’s
property tax bill.
In situations where the customer moves out of the District’s
service area, the ability to collect through discontinuing water
service will no longer exist. The District will send the
customer a follow-up bill to their forwarding address. If
payment is not received within a set period of time, the District
then will utilize a collection agency.
There are two agencies the District utilizes:
TekCollect is used for closed accounts that have provided
a forwarding address.
Continental is used for closed accounts that have not
provided a forwarding address, residential accounts with
high balances, or commercial accounts.
The committee inquired how collections are handled for properties
that have tenants who are arrears in their payments. Staff
indicated that in this situation there is the property owner and
the owner of the account (the tenant). The owner of the account
is ultimately responsible for the water bill. If the owner of
the property has a tenant and the tenant leaves a bill, the
District cannot go after the owner of the property. If the owner
of a property, however, has tenants that historically leave
without paying their bill, the District does have the option of
placing the account in the owner’s name. The owner then becomes
responsible for their tenants’ water bills. However, if it is
the first time an owner has had a bad tenant, the owner cannot be
held responsible and the District cannot turn the owner down to
initiate service for a new tenant.
If a bill is placed in the owner’s name, they become the
responsible party for their tenant’s water bill. The District
will collect payment from the owner in this case and can place a
lien on the property for unpaid bills as the owner is the
responsible party for the water bill. There are very few
accounts with this situation.
The District can also require a deposit on accounts that are
chronically in arrears.
The committee indicated that the District sends postcards each
month to customers with delinquent accounts at a total cost of
$.74 per postcard and inquired why the District doesn’t send
emails instead with little or no cost. Staff indicated that
emails are sent and it is a practice that is new. The District
has collected approximately 80% of its customer email addresses
and email is utilized for all options to contact customers;
welcome letters, late payments and to notify customers that their
account has been disconnected.
It was clarified on page 3 of the Staff Report that the sentence,
“Each lien processed costs the District approximately $8.00 in
staff time and postage,” does in fact cover all District cost.
Additionally, it should be noted that the District pays no fees
to the County, but only has internal costs related to filing a
lien which is why it may appear that the cost is understated.
Staff is requesting that the Board amend Section 2.01, Authority
of the General Manager, of the District’s Code of Ordinances
memorializing the current collection practices.
The proposed changes allows the General Manager to settle
disputes/claims up to $10,000 consistent with the authority the
board has already granted the General Manager in other cases such
as claims. This formalizes current collection practices within
the District’s Code of Ordinances.
Following the discussion, the Finance, Administration and
Communications Committee supported staffs’ recommendation and
presentation to the full board as a consent item.
1
ORDINANCE NO. 536
AN ORDINANCE OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT
AMENDING SECTION 2.01, AUTHORITY OF THE GENERAL MANAGER
BE IT ORDAINED by the Board of Directors of Otay Water
District that the District’s Code of Ordinances Section 2.01,
Authority of the General Manager, be amended as per Exhibit I
(attached).
NOW, THEREFORE, BE IT RESOLVED that the new proposed
Section 2.01, Authority of the General Manager (Exhibit II) of
the Code of Ordinances shall become effective November 7, 2012.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a regular meeting duly held this 7th
day of November 2012, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
President
ATTEST:
_____________________________
District Secretary
Attachment B
CHAPTER 2 ADMINISTRATION OF THE DISTRICT
SECTION 2 MANAGEMENT OF THE DISTRICT
2.01 AUTHORITY OF THE GENERAL MANAGER Pursuant to Sections 71362 and 71363 of the California Water
Code, and other applicable laws of the State of California, the
General Manager shall, subject to the approval and direction of the Board of Directors, operate and manage the affairs of the
District. The General Manager shall have the following
specifically enumerated powers and authority:
A. To control the administration, maintenance, operation
and construction of the water and sewer systems and facilities of
the District in an efficient manner. B. To employ and discharge all employees and assistants,
other than those referred to in Section 71340 of the California
Water Code, and to prescribe their duties and promulgate specific rules and regulations for such employees and assistants.
C. To promulgate policies and procedures necessary to enhance the security of the District and increase the transparency of District operations, including provisions for the
disclosure of conflicts of interest by employees.
D. To establish the terms and conditions for collection of
receivables, thereby facilitating the efficient administration of
the District’s receivables. The General Manager or designee is
given this authority as well as the authority to waive, adjust, or reduce any receivable for amounts up to $10,000.
DE. To execute agreements, contracts, other documents, or commitments on behalf of the District where the amount involved does not exceed $50,000, provided that Public Works Contracts
shall be awarded in compliance with applicable laws.
EF. To approve change orders to agreements, contracts, or
other commitments on behalf of the District. If the underlying
contract is awarded by the General Manager pursuant to paragraph 2.01-DE above, the cumulative value of the approved change orders and the underlying agreement, contract, or commitment shall not
exceed the General Manager’s signatory authority established
above. If the underlying contract is awarded by the Board, the General Manager may approve change orders thereto in an aggregate
amount not exceeding the General Manager’s signatory authority
established above.
FG. To approve plans, specifications, maps and agreements,
and any other documents involving land development projects
within the District.
Exhibit I
Formatted: Indent: First line: 0.5"
GH. To authorize the use of District Real Property by third
parties if all the following conditions are met: (a) the
consideration is less than the General Manager’s authority; and
(b) the proposed use consists of an easement, license, access
permit or other use of a portion of the District Real Property
that will not interfere with the existing or anticipated uses of
the District Real Property for District purposes; and (c) either
(i) the term of the proposed use is 10 years or less, or (ii) the
entity proposing to use the District Real Property is a regulated
utility, governmental entity or not-for profit organization. All
uses of District Real Property not contemplated herein or
specifically authorized in other sections of this Code of
Ordinance shall be presented to the Board of Directors for
consideration.
1. The General Manager may establish terms and
conditions for the use of and access to District Real Property
contemplated herein, including administrative charges.
2. The use of any District Real Property shall
require consideration satisfactory to the General Manager, which
may be monetary compensation in an amount equal to the fair
market value of the proposed use plus an administrative charge or
may be in the form of a real property interest or other
equivalent compensation or use.
3. “District real property” means and includes real
property and interests thereon, such as fee interests, easements,
licenses and other such interests acquired for various District
purposes including but not limited to the construction,
operation, access or maintenance of pipelines or other facilities
necessary or convenient to the full exercise of the District’s
powers.
HI. To declare an emergency and, in such event, to have the
additional powers specified in the District’s emergency management plan, referred to as the National Incident Management
System (NIMS), and below, pursuant to California Contract Code
Section 22050. An emergency is a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate the loss or impairment of life,
health, property, or essential public services.
1. In a declared emergency, the General Manager may
direct employees, take action to continue or restore service
capability, and execute any contracts for necessary equipment,
services, or supplies directly related and required by the emergency. Notwithstanding the limits imposed in the prior
paragraphs of this Section 2.01, or by any other policy or
guideline of the District, in an emergency, the General Manager may award and execute contracts for goods, services, work,
facility or improvement, without bidding and without regard to
said limits, provided that the goods, services, work, facilities or improvements acquired or contracted for are of an urgent
nature, directly and immediately required by the emergency. Any
contract for goods or services with a value of more than $250,000 shall be subject to ratification by the Board at its first regularly scheduled meeting following the declaration of the
emergency to which the contract relates. Any contract for work,
facilities or improvements with a value of more than $500,000 shall be subject to ratification by the Board at its first
regularly scheduled meeting following the declaration of the
emergency to which the contract relates.
2. The General Manager shall report to the Board not
later than 48 hours after the emergency action or at the next
regularly scheduled meeting, whichever is earlier. The report shall include the details of the emergency and reasons justifying the actions taken, and provide an accounting of the funds
expended or yet to be expended in connection with the emergency.
3. If the emergency action continues for seven days
and a regularly scheduled meeting will not occur within 14 days
from the day the emergency action was taken, the General Manager shall request that the Board review the emergency action and determine by formal action if the need to take emergency action
continues.
4. At each regularly scheduled meeting following the
declaration of an emergency the Board may, by formal action and
pursuant to a vote as required by Section 22050 of the Public
Contract Code, determine if there is a need to continue the emergency action. If the Board does not determine that the
emergency continues, the power to operate under emergency
conditions will terminate and any new work, goods or services not yet procured shall be contracted or acquired in accordance with applicable provisions of this Code.
2.02 ORDER OF SUCCESSION
When the General Manager is going to be absent from the Dis-
trict, the General Manager is authorized to designate an Asst.
General Manager to act on his behalf and said person shall have
the same authority as the General Manager. Any long-term
vacancies (over 30 days) shall be filled by vote of the majority
of the Board.
CHAPTER 2 ADMINISTRATION OF THE DISTRICT
SECTION 2 MANAGEMENT OF THE DISTRICT
2.01 AUTHORITY OF THE GENERAL MANAGER
Pursuant to Sections 71362 and 71363 of the California Water
Code, and other applicable laws of the State of California, the
General Manager shall, subject to the approval and direction of
the Board of Directors, operate and manage the affairs of the
District. The General Manager shall have the following
specifically enumerated powers and authority:
A. To control the administration, maintenance, operation
and construction of the water and sewer systems and facilities of
the District in an efficient manner.
B. To employ and discharge all employees and assistants,
other than those referred to in Section 71340 of the California
Water Code, and to prescribe their duties and promulgate specific
rules and regulations for such employees and assistants.
C. To promulgate policies and procedures necessary to
enhance the security of the District and increase the
transparency of District operations, including provisions for the
disclosure of conflicts of interest by employees.
D. To establish the terms and conditions for collection of
receivables, thereby facilitating the efficient administration of
the District’s receivables. The General Manager or designee is
given this authority as well as the authority to waive, adjust,
or reduce any receivable for amounts up to $10,000.
E. To execute agreements, contracts, other documents, or
commitments on behalf of the District where the amount involved
does not exceed $50,000, provided that Public Works Contracts
shall be awarded in compliance with applicable laws.
F. To approve change orders to agreements, contracts, or
other commitments on behalf of the District. If the underlying
contract is awarded by the General Manager pursuant to paragraph
2.01-E above, the cumulative value of the approved change orders
and the underlying agreement, contract, or commitment shall not
exceed the General Manager’s signatory authority established
above. If the underlying contract is awarded by the Board, the
General Manager may approve change orders thereto in an aggregate
amount not exceeding the General Manager’s signatory authority
established above.
G. To approve plans, specifications, maps and agreements,
and any other documents involving land development projects
within the District.
Exhibit II
H. To authorize the use of District Real Property by third
parties if all the following conditions are met: (a) the
consideration is less than the General Manager’s authority; and
(b) the proposed use consists of an easement, license, access
permit or other use of a portion of the District Real Property
that will not interfere with the existing or anticipated uses of
the District Real Property for District purposes; and (c) either
(i) the term of the proposed use is 10 years or less, or (ii) the
entity proposing to use the District Real Property is a regulated
utility, governmental entity or not-for profit organization. All
uses of District Real Property not contemplated herein or
specifically authorized in other sections of this Code of
Ordinance shall be presented to the Board of Directors for
consideration.
1. The General Manager may establish terms and
conditions for the use of and access to District Real Property
contemplated herein, including administrative charges.
2. The use of any District Real Property shall
require consideration satisfactory to the General Manager, which
may be monetary compensation in an amount equal to the fair
market value of the proposed use plus an administrative charge or
may be in the form of a real property interest or other
equivalent compensation or use.
3. “District real property” means and includes real
property and interests thereon, such as fee interests, easements,
licenses and other such interests acquired for various District
purposes including but not limited to the construction,
operation, access or maintenance of pipelines or other facilities
necessary or convenient to the full exercise of the District’s
powers.
I. To declare an emergency and, in such event, to have the
additional powers specified in the District’s emergency
management plan, referred to as the National Incident Management
System (NIMS), and below, pursuant to California Contract Code
Section 22050. An emergency is a sudden, unexpected occurrence
that poses a clear and imminent danger, requiring immediate
action to prevent and mitigate the loss or impairment of life,
health, property, or essential public services.
1. In a declared emergency, the General Manager may
direct employees, take action to continue or restore service
capability, and execute any contracts for necessary equipment,
services, or supplies directly related and required by the
emergency. Notwithstanding the limits imposed in the prior
paragraphs of this Section 2.01, or by any other policy or
guideline of the District, in an emergency, the General Manager
may award and execute contracts for goods, services, work,
facility or improvement, without bidding and without regard to
said limits, provided that the goods, services, work, facilities
or improvements acquired or contracted for are of an urgent
nature, directly and immediately required by the emergency. Any
contract for goods or services with a value of more than $250,000
shall be subject to ratification by the Board at its first
regularly scheduled meeting following the declaration of the
emergency to which the contract relates. Any contract for work,
facilities or improvements with a value of more than $500,000
shall be subject to ratification by the Board at its first
regularly scheduled meeting following the declaration of the
emergency to which the contract relates.
2. The General Manager shall report to the Board not
later than 48 hours after the emergency action or at the next
regularly scheduled meeting, whichever is earlier. The report
shall include the details of the emergency and reasons justifying
the actions taken, and provide an accounting of the funds
expended or yet to be expended in connection with the emergency.
3. If the emergency action continues for seven days
and a regularly scheduled meeting will not occur within 14 days
from the day the emergency action was taken, the General Manager
shall request that the Board review the emergency action and
determine by formal action if the need to take emergency action
continues.
4. At each regularly scheduled meeting following the
declaration of an emergency the Board may, by formal action and
pursuant to a vote as required by Section 22050 of the Public
Contract Code, determine if there is a need to continue the
emergency action. If the Board does not determine that the
emergency continues, the power to operate under emergency
conditions will terminate and any new work, goods or services not
yet procured shall be contracted or acquired in accordance with
applicable provisions of this Code.
2.02 ORDER OF SUCCESSION
When the General Manager is going to be absent from the Dis-
trict, the General Manager is authorized to designate an Asst.
General Manager to act on his behalf and said person shall have
the same authority as the General Manager. Any long-term
vacancies (over 30 days) shall be filled by vote of the majority
of the Board.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: November 7, 2012
PROJECT: Various DIV. NO. ALL
SUBMITTED BY: Geoff Stevens, Chief Information Officer
APPROVED BY:
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: RENEWAL OF MICROSOFT ENTERPRISE SOFTWARE LICENSE
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to enter into a three-
year (3) O&M service agreement with Softchoice Corporation in the
amount of $250,638, consisting of three (3) annual payments of
approximately $83,546.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To authorize the purchase of Microsoft software license support, from
Softchoice Corporation, for a three-year (3) period ending June, 30
2015.
ANALYSIS:
The Board may remember that in July 2012, as part of a group of
contracts valued at over $50,000 needing Board approval, the Board
approved a one-year contract extension of our enterprise license for
Microsoft Software. The cost was $83,546. Unfortunately, staff
should have identified this FY 2013 expense as the first year cost of
a three-year (3) contract extension with a total three-year value of
$250,638. The level of expenditure for FY 2013 does not change and
the item is budgeted in the O&M budget. As it is a three-year (3)
AGENDA ITEM 6c
2
agreement, however, the total District commitment changes from
$83,546 for just one (1) year, to approximately $250,638 for three
(3) years.
While it is certainly possible to purchase a single year of support
for our Microsoft software licenses, the extension of the current
contract provides significant protection from further price increases
and also preserves the lower cost renewal of our existing licenses.
For example, our software license cost was reduced from $130,000 in
2008 to $75,000 in 2009 because the enterprise level contract had
reached a “maintenance status”. Failure to renew this contract as a
three-year (3) contract extension would put these savings at risk, as
well as price increases for major software upgrades.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
This project will utilize budgeted funds from the IT operating budget
of $83,546 in the current year and a total commitment of $250,638
over three (3) years. These proposed O&M expenditures are funded by
General Fund operations.
STRATEGIC GOAL:
Cost-effective enterprise software is essential to District
operations in meeting our strategic and operational objectives.
LEGAL IMPACT:
None.
Attachments: Attachment A – Committee Action Report
ATTACHMENT A
SUBJECT/PROJECT: RENEWAL OF MICROSOFT ENTERPRISE SOFTWARE LICENSE
COMMITTEE ACTION:
The Finance, Administration and Communications Committee reviewed this
item at a meeting held on October 23, 2012 and the following comments
were made:
In July 2012 staff had presented six (6) contracts, all of which
were over $50,000, for the board’s approval. One of the
contracts was for software services from Softchoice which was
presented as a one (1) year agreement for $83,546.
It was indicated that the agreement should have been presented as
a three (3) year agreement for $250,638 (3 years x $83,546). The
District could move forward with a one (1) year agreement, but it
would not protect the District adequately from further price
increases. The District has software assurance which preserves
the price reductions the District receives from MicroSoft. If
the District enters into a new contract, causing a break in the
contract, the District could lose its software assurance and
could potentially pay higher fees on its existing licenses. By
approving the contract as a three (3) year agreement it will
preserve the price reductions and protect the District from
further price increases.
The funding for this contract is included in the Fiscal Year 2013
budget and there will be no change to the total being funded.
The Softchoice contract covers the District’s database software,
MicroSoft Office Suite, control programs (which provides
information on how the District’s systems are operating), and SQL
(operating systems for the servers); all core enterprise software
that the District purchases from MicroSoft.
When the District first purchased the Softchoice contract, the
cost was $130,000 annually. After the District had achieved the
third year of the contract, it received a discount bringing the
cost down to $83,546 annually. Maintaining the contract, will
preserve this discount.
The above signatures attest that the attached document has been reviewed and to the best of their ability the
signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;
being grammatically correct and free of formatting and typographical errors; accurately presenting calculated values
and numerical references; and being internally consistent, legible and uniform in its presentation style.
The District had bid the services with three (3) vendors and
received identical pricing from each vendor as the pricing is
guaranteed through the Western States Contracting Authority
(WSCA).
Following the discussion, the Finance, Administration and
Communications Committee supported staffs’ recommendation and
presentation to the full board as a consent item.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2012
SUBMITTED BY:
Jeff Marchioro
Senior Civil Engineer
Ron Ripperger
Engineering Manager
PROJECT: VARIOUS DIV. NO. ALL
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Asst. General Manager
Mark Watton, General Manager
SUBJECT: Award of As-Needed Geotechnical Services Contract for Fiscal
Years 2013 through 2015
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
award a professional As-Needed Geotechnical Services contract to
Southern California Soil & Testing, Inc. (SCST) and to authorize the
General Manager to execute an agreement with SCST in an amount not-
to-exceed $175,000 for a period of three (3) fiscal years (FY 2013
through FY 2015).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into
a professional As-Needed Geotechnical Services agreement with SCST
in an amount not-to-exceed $175,000 for a period of (3) fiscal years
(FY 2013 through FY 2015).
AGENDA ITEM 6d
2
ANALYSIS:
The District will require the services of a professional
geotechnical consultant in support of the District’s Capital
Improvement Program (CIP) for three (3) fiscal years. It is more
efficient and cost effective to issue an as-needed contract for
geotechnical services which will provide the District with the
ability to obtain consulting services in a timely and efficient
manner. This concept has also been used in the past for other
disciplines such as engineering design, construction management,
electrical, and environmental services.
The District will issue task orders to the consultant for specific
projects during the contract period. The consultant will then
prepare a detailed scope of work, schedule, and fee estimate for
each task order assigned under the contract. Upon written task
order authorization from the District, the consultant shall then
proceed with the project as described in the scope of work.
The anticipated CIP projects that are estimated to require
geotechnical services for the duration of this contract are listed
below:
CIP DESCRIPTION
ESTIMATED
COST
P2453 SR-11 Utility Relocations $5,000
P2528 30-Inch Potable Water Pipeline Manifold at
624 Reservoirs $20,000
R2048 Otay Mesa Distribution Pipelines $50,000
S2024 Campo Road Sewer Main Replacement $15,000
S2033 Sewer System Various Locations Rehabilitation $20,000
S2040 Calavo Sewer Basin Improvements $20,000
S2041 Rancho San Diego Sewer Basin Improvements $20,000
TOTAL: $150,000
The geotechnical scopes of work for the above projects are estimated
from preliminary information and past projects. Therefore, staff
believes that a $175,000 cap on the As-Needed Geotechnical Services
contract is adequate, while still providing additional capacity for
unforeseen support needs by the District.
This As-Needed Geotechnical Services contract does not commit the
District to any expenditure until a task order is approved to
perform work on a CIP project. The District does not guarantee work
to the consultant, nor does the District guarantee that it will
expend all of the funds authorized by the contract on professional
services.
3
The District solicited geotechnical services by placing an
advertisement on the Otay Water District’s website on July 26, 2012
and with various other publications including the San Diego Daily
Transcript. Nineteen (19) firms submitted a letter of interest and
a statement of qualifications. The Request for Proposal (RFP) for
As-Needed Geotechnical Services was sent to the nineteen (19) firms
resulting in twelve (12) proposals received by September 12, 2012.
Christian Wheeler Engineering
Construction Testing & Engineering, Inc
Fugro Consultants, Inc.
GENTERRA Consultants, Inc.
Group Delta Consultants
Helenschmidt Geotechnical, Inc.
Hushmand Associates, Inc.
MTGL, Inc.
Ninyo & Moore
RMA Group, Inc.
Southern California Soil & Testing, Inc.
URS Corporation
The seven (7) firms that chose not to propose are Allied
Geotechnical Engineers, Inc.; AMEC E&I; GEI Consultants, Inc.;
Geocon Incorporated; Geo-Logic Associates; Twining, Inc.; and VO
Engineering, Inc.
In accordance with the District’s Policy 21, staff evaluated and
scored all written proposals. SCST received the highest score for
their services based on their experience, understanding of the scope
of work, proposed method to accomplish the work, and their composite
hourly rate. SCST was the most qualified consultant with the best
overall rating or ranking. A summary of the complete evaluation is
shown in Attachment B.
SCST submitted the Company Background Questionnaire as required by
the RFP and staff did not find any significant issues. In addition,
staff checked their references and performed an internet search on
the company. Staff found the references to be excellent and did not
find any outstanding issues with the internet search.
Based upon the review of all the hourly composite rates, staff did
not negotiate with SCST to lower their proposed rates because their
composite rate was below the average of the twelve (12) consultants
that submitted proposals.
4
Staff has successfully worked with SCST in the past. SCST previously
held the District’s As-Needed Geotechnical Services agreements from
January 2007 to June 2010.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The funds for this contract will be expended for a variety of
projects, as previously noted above. This contract is for as-needed
professional services based on the District’s need and schedule, and
expenditures will not be made until a task order is approved by the
District for the consultant’s services on a specific CIP project.
Based on a review of the financial budgets, the Project Manager
anticipates that the budgets will be sufficient to support the
professional as-needed consulting services required for the CIP
projects noted above.
The Finance Department has determined that the funds to cover this
contract are available as budgeted for these projects.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the
Otay Water District in a professional, effective, and efficient
manner” and the District’s Vision, “A District that is innovative in
providing water services at affordable rates, with a reputation for
outstanding customer service.”
LEGAL IMPACT:
None.
P:\WORKING\As Needed Services\Geotechnical\FY 2013-2014\Staff Report\BD 11-7-12, Staff Report, As-Needed Geotech Services, (JM-RR).docx
JM/RR:jf
Attachments: Attachment A – Committee Action
Attachment B – Summary of Proposal Rankings
ATTACHMENT A
SUBJECT/PROJECT:
VARIOUS
Award of As-Needed Geotechnical Services Contract for
Fiscal Years 2013 through 2015
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee reviewed
this item at a meeting held on October 24, 2012. The following
comments were made:
Staff requested that the Board award a professional As-Needed
Geotechnical Services contract to Southern California Soil &
Testing, Inc. (SCST) and to authorize the General Manager to
execute an agreement with SCST in an amount not-to-exceed
$175,000 for a period of three (3) fiscal years (FY 2013
through FY 2015).
It was indicated that this contract is one of several As-
Needed contracts actively administered by District staff and
that the current As-Needed Geotechnical contract amount is
nearly fully committed.
Staff noted that an As-Needed Geotechnical consultant will be
needed for upcoming CIP projects in FY 2013 and 2015. A
detailed list of anticipated projects is included on page 2 of
the staff report.
Staff stated that in accordance with Policy 21, a Request for
Proposal was advertised on July 26, 2012. Nineteen (19) firms
submitted a letter of interest and twelve (12) firms submitted
a proposal.
It was indicated that five (5) staff members ranked the
proposals and the result of the analysis are shown in
Attachment B of the staff report.
Staff stated that SCST received the highest score. It was
noted that staff checked the firm’s references, reviewed their
Company Background Questionnaire form, and performed an
internet search on the company and did not find any
significant issues.
It was noted that Staff had successfully worked with SCST in
the past when the firm held the District’s As-Needed
Geotechnical Services agreements from January 2007 to June
2010.
Following the discussion, the EO&WR Committee supported staffs’
recommendation and presentation to the full board as a consent
item.
Qualifications of
Team
Responsiveness
and Project
Understanding
Technical and
Management
Approach
INDIVIDUAL
SUBTOTAL -
WRITTEN
AVERAGE
SUBTOTAL -
WRITTEN
Proposed Rates*
Consultant's
Commitment to
DBE
TOTAL
SCORE
30 25 30 85 85 15 Y/N 100 Poor/Good/
Excellent Consultant Rate Position Score
Ronald Ripperger 26 24 26 76 1. Christian Wheeler Engineering $1,651 14
Dan Martin 28 24 28 80 2. Construction Testing & Engineering, Inc $1,664 14
Bob Kennedy 28 24 28 80 3. Fugro Consultants, Inc.$2,735 lowest 1
Daniel Kay 26 24 28 78 4. GENTERRA Consultants, Inc.$2,012 10
Kevin Cameron 27 23 28 78 5. Group Delta Consultants $2,305 6
Ronald Ripperger 25 23 25 73 6. Helenschmidt Geotechnical, Inc.$2,285 6
Dan Martin 29 20 25 74 7. Hushmand Associates, Inc. $1,807 12
Bob Kennedy 28 23 28 79 8. MTGL, Inc.$1,574 highest 15
Daniel Kay 26 23 27 76 9. Ninyo & Moore $1,742 13
Kevin Cameron 26 23 25 74 10. RMA Group, Inc.$1,913 11
Ronald Ripperger 25 21 23 69 11. Southern California Soil & Testing, Inc.$1,657 14
Dan Martin 25 22 22 69 12. URS Corporation $2,190 8
Bob Kennedy 24 20 24 68
Daniel Kay 21 20 21 62
Kevin Cameron 23 21 22 66
Ronald Ripperger 25 21 24 70
Dan Martin 24 23 21 68
Bob Kennedy 24 20 24 68
Daniel Kay 22 21 21 64
Kevin Cameron 22 21 22 65
Ronald Ripperger 26 24 26 76
Dan Martin 25 23 25 73
Bob Kennedy 27 22 28 77
Daniel Kay 26 22 27 75
Kevin Cameron 25 22 23 70
Ronald Ripperger 25 21 23 69
Dan Martin 24 22 21 67
Bob Kennedy 23 20 23 66
Daniel Kay 24 21 23 68
Kevin Cameron 23 20 21 64
Ronald Ripperger 24 21 23 68
Dan Martin 24 23 21 68
Bob Kennedy 24 20 24 68
Daniel Kay 21 20 20 61
Kevin Cameron 24 20 20 64
Ronald Ripperger 25 21 23 69
Dan Martin 27 23 23 73
Bob Kennedy 24 21 24 69
Daniel Kay 27 21 25 73
Kevin Cameron 25 23 23 71
Ronald Ripperger 25 24 23 72
Dan Martin 27 23 23 73
Bob Kennedy 24 20 24 68
Daniel Kay 28 22 24 74
Kevin Cameron 25 23 22 70
Ronald Ripperger 25 21 23 69
Dan Martin 24 22 22 68
Bob Kennedy 24 20 24 68
Daniel Kay 25 20 23 68
Kevin Cameron 24 21 22 67
Ronald Ripperger 26 25 27 78
Dan Martin 29 24 29 82
Bob Kennedy 28 23 29 80
Daniel Kay 29 24 29 82
Kevin Cameron 27 24 26 77
Ronald Ripperger 25 24 25 74
Dan Martin 28 24 28 80
Bob Kennedy 28 22 29 79
Daniel Kay 26 23 27 76
Kevin Cameron 26 22 26 74
6. Helenschmidt
Geotechnical, Inc.67 6 Y 73
2. Construction Testing
& Engineering, Inc 75 14 89
78
68
67 10 77
REFERENCES
14
Y
Y
78
5. Group Delta
Consultants 74 6
4. GENTERRA
Consultants, Inc.
12. URS Corporation 77 8 85
Y
8. MTGL, Inc.71 15 86
Y
Y
11. Southern California
Soil & Testing, Inc.80 14
Y7. Hushmand
Associates, Inc. 66
Y 84
Y
Y
94 Excellent
3. Fugro Consultants,
Inc.67 1
9. Ninyo & Moore 71 13
12
RATES SCORING CHART
ATTACHMENT B
SUMMARY OF PROPOSAL RANKINGS
As-Needed Geotechnical Services
WRITTEN
Y
MAXIMUM POINTS
1. Christian Wheeler
Engineering 92
*The fees were evaluated by comparing rates for seven positions and the
cost for twelve soil laboratory tests. The sum of these rates are noted in the
above table.
Note: Review Panel does not see or consider rates when scoring other
categories. Rates are scored by the PM, who is not on Review Panel.
10. RMA Group, Inc.68 11 Y 79
80
P:\WORKING\As Needed Services\Geotechnical\FY 2013-2014\Selection Process\Summary of Proposal Rankings.xls
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2012
SUBMITTED BY:
Daniel Kay
Associate Civil Engineer
Dan Martin
Engineering Manager
PROJECT: S2019-001103
S2020-001103
S2022-001103
S2026-001103
DIV. NO. 3
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Change Order No. 1 to the Contract with Garcia Juarez
Construction Inc. for the Calavo Gardens Sewer Rehabilitation
Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
approve credit Change Order No. 1 to the existing contract with
Garcia Juarez Construction, Inc. (GJC) in the amount of <$22,040.00>
for the Calavo Gardens Sewer Rehabilitation Project (see Exhibit A
for Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to execute
credit Change Order No. 1 in the amount of <$22,040.00> to the
contract with GJC for the Calavo Gardens Sewer Rehabilitation
Project.
ANALYSIS:
At the February 1, 2012 Board Meeting, the Board awarded a
construction contract in an amount of $2,316,275 to GJC for the
Calavo Gardens Sewer Rehabilitation Project.
AGENDA ITEM 6e
2
The Project consists of the replacement and capacity upgrades of
approximately 4,500 linear feet of 8-inch and 10-inch sewer in the
streets of Avocado Boulevard, Calavo Drive, Louisa Drive, Challenge
Boulevard, and Hidden Mesa Drive in the Rancho San Diego area. The
Project also includes a new flow control and diversion vault
structure for the Calavo Sewer Lift Station.
GJC has completed the sewer replacement in the streets of Calavo
Drive, Louisa Drive, Challenge Boulevard, Hidden Mesa Drive, and most
of Avocado Boulevard. GJC is approximately 50% complete overall with
the Project. Change Order No. 1 (Exhibit B) includes a variety of
items including time and material for differing site conditions,
additional paving, unknown utilities and various credits for
modifications to the contract.
The following is a table summarizing the items in Change Order No. 1.
The Location column depicts the general location for each item as
shown in Exhibit A:
Item Description Location
(Exhibit A) Amount
1 Open Cut in Lieu of Jack & Bore
Across Avocado Boulevard Site 1 <$20,000.00>
2 Delete Bid Item #5 Manhole
Refurbishments
Sites
1,2,3,4 <$85,000.00>
3 Modify Manhole Replacements in
Avocado Boulevard Site 1 <$56,000.00>
4 Time and Materials Settlement
through 7/31/12 Sites 1,2,4 $125,000.00
5 Revised 15-Inch Alignment in Avocado
Boulevard Site 1 <$10,000.00>
6 Relocate Street Light at Diversion
Vault. Allowance Used to Cover Cost Site 1 0.00
7 Additional Paving in Various Areas Site 1,2,4 $15,960.00
8 Unknown Utilities. Allowance Used
to Cover Portion of Cost
Sites
1,2,3,4 $8,000.00
TOTAL <$22,040.00>
In summary, the net decrease to the Project for Change Order No. 1 is
<$22,040.00>.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Funding for the overall Project comes from four CIP projects - S2019,
S2020, S2022, and S2026. The total budget is $3,335,000.
The total budget for CIP S2019, as approved in the FY 2013 budget, is
$2,275,000. Total expenditures, plus outstanding commitments and
forecast, is $2,182,891. See Attachment B-1 for budget detail.
3
The total budget for CIP S2020, as approved in the FY 2013 budget, is
$600,000. Total expenditures, plus outstanding commitments and
forecast, is $596,047. See Attachment B-2 for budget detail.
The total budget for CIP S2022, as approved in the FY 2013 budget, is
$180,000. Total expenditures, plus outstanding commitments and
forecast, is $175,259. See Attachment B-3 for budget detail.
The total budget for CIP S2026, as approved in the FY 2013 budget, is
$280,000. Total expenditures, plus outstanding commitments and
forecast, is $274,243. See Attachment B-4 for budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that these budgets will be sufficient to support the
Project.
Finance has determined that 100% of the funding is available from the
Betterment Fund for CIPs S2019 and S2022 and 100% of the funding is
available from the Replacement Fund for CIPs S2020 and S2026.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the Otay
Water District in a professional, effective, and efficient manner”
and the District’s Vision, “A District that is innovative in
providing water services at affordable rates, with a reputation for
outstanding customer service.”
LEGAL IMPACT:
None.
DK/DM:jf
P:\WORKING\CIP S2019, S2020, S2022 Avocado Sewer\Staff Reports\Change Order No. 1 to GJC\BD 11-07-2012, Change Order No 1 to Garcia Juarez
Construction, (DK-DM).docx
Attachments: Attachment A – Committee Action
Attachment B-1 – S2019 Budget Detail
Attachment B-2 – S2020 Budget Detail
Attachment B-3 – S2022 Budget Detail
Attachment B-4 – S2026 Budget Detail
Exhibit A – Location Map
Exhibit B – Change Order No. 1
ATTACHMENT A
SUBJECT/PROJECT:
S2019-001103
S2020-001103
S2022-001103
S2026-001103
Change Order No. 1 to the Contract with Garcia Juarez
Construction Inc. for the Calavo Gardens Sewer
Rehabilitation Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee reviewed
this item at a meeting held on October 24, 2012 and the following
comments were made:
Staff requested that the Board approve credit Change Order No. 1
to the existing contract with Garcia Juarez Construction, Inc.
(GJC) in the amount of <$22,040.00> for the Calavo Gardens Sewer
Rehabilitation Project.
The Project consists of the replacement and capacity upgrades to
approximately 4,500 linear feet of 8-inch and 10-inch sewer in
the Calavo Gardens community that is located near the Rancho San
Diego shopping center at the end of Avocado and Highway 94.
Staff noted that at the February 1, 2012 Board meeting, the Board
awarded a contract to Garcia Juarez in an amount of $2,316,275
for this project.
Staff stated that Change Order No. 1 reflects a variety of items,
which are summarized on page 2 of the staff report and explained
in further detail in Exhibit B. Examples of the items include
time and material for differing site conditions, additional
paving, unknown utilities and various credits for modification to
the contract. Staff indicated that Change Order No. 1 results in
a net decrease to the contract in the amount of <$22,040>.
It was indicated that the progress of the work is approximately
50% complete and that sewer replacements in Hidden Mesa, Louisa,
Challenge, and Calavo are complete. Staff stated that sewer
replacement in Avocado is approximately 80% complete.
Staff noted that the remaining work for the project includes a
flow diversion vault and new sewer mains in Avocado in front of
the Rancho San Diego shopping center and the Calavo Sewer Lift
Station.
The Committee inquired about the time frame for the project’s
last phase and its impact to the community. Staff anticipates
that the last phase will be completed by March 2013 and noted
that most of the paving is complete. There will be a one-lane
closure in Avocado near the Rancho San Diego shopping center and
then individual lane closures when trenching begins across
Avocado to install pipelines. Staff stated that the trenching
will lasts approximately 2 weeks, but will save about 1 month
worth of impact to the community. The original contract called
for some tunneling under the road that would have prolonged the
completion of the project.
The Committee inquired about any feedback from the community.
Staff stated that the community has submitted letters to the
District that provided positive feedback about the contractor.
Following the discussion, the EO&WR Committee supported staffs’
recommendation and presentation to the full board as a consent item.
ATTACHMENT B-1
SUBJECT/PROJECT:
S2019-001103
S2020-001103
S2022-001103
S2026-001103
Change Order No. 1 to the Contract with Garcia Juarez
Construction Inc. for the Calavo Gardens Sewer
Rehabilitation Project
Date Updated: September 25, 2012
Budget
2,275,000
Planning 001101
Labor 24,205 24,205 - 24,205
Settlements 2,100 2,100 - 2,100 GARY THOMAS JALATY
Office Supplies 14 14 - 14 PETTY CASH CUSTODIAN
Consultant Contracts 11,287 11,287 - 11,287 LEE & RO INC
Total Planning 37,606 37,606 - 37,606
Design 001102
Labor 155,564 155,564 155,564
Settlements 5,500 5,500 - 5,500 JUAN NAVARRO
Settlements 5,900 5,900 - 5,900 LN REAL ESTATE LLC
Professional Legal Fees 2,632 2,632 - 2,632 STUTZ ARTIANO SHINOFF
Other Agency Fees 27 27 - 27 PETTY CASH CUSTODIAN
Other Agency Fees 3,460 3,460 - 3,460 COUNTY OF SAN DIEGO
Consultant Contracts 4,900 4,900 - 4,900 SAN-LO AERIAL SURVEYS
Consultant Contracts 1,550 1,550 - 1,550 AFFORDABLE DRAIN SERVICE INC
Consultant Contracts 1,947 1,947 - 1,947 CPM PARTNERS INC
Consultant Contracts 60,264 60,264 - 60,264 LEE & RO INC
Consultant Contracts 13,000 13,000 - 13,000 MICHAEL D KEAGY REAL ESTATE
Consultant Contracts 8,830 8,830 - 8,830 DARNELL & ASSOCIATES INC
Consultant Contracts 8,204 8,204 - 8,204 SOUTHERN CALIFORNIA SOIL
Consultant Contracts 525 525 - 525 MWH CONSTRUCTORS INC
Construction Contracts 17,933 17,933 - 17,933 LEE & RO INC
Service Contracts 672 672 - 672 UNION TRIBUNE PUBLISHING CO
Total Design 290,909 290,909 - 290,909
Construction 001103
Labor 200,000 77,990 122,010 200,000
Settlements 5,000 5,000 - 5,000 KIM-THOA THI HOANG
Other Agency Fees 248 248 - 248 COUNTY OF SAN DIEGO - DPW
Consultant Contracts 120,000 99,813 20,188 120,000 VALLEY CONSTRUCTION MANAGEMENT
Consultant Contracts 6,030 6,030 - 6,030 MTGL INC
Consultant Contracts 5,806 5,806 - 5,806 LEE & RO INC
Consultant Contracts 4,000 4,000 - 4,000 RBF CONSULTING
Consultant Contracts 2,685 2,685 - 2,685 DARNELL & ASSOCIATES INC
Consultant Contracts 2,000 2,000 - 2,000 ALTA LAND SURVEYING INC
Consultant Contracts 926 926 - 926 CPM PARTNERS INC
Consultant Contracts 157 157 - 157 SOUTHERN CALIFORNIA SOIL
Construction Contracts 1,438,537 707,587 730,950 1,438,537 GARCIA JUAREZ CONSTRUCTION INC
(11,020) (11,020) - (11,020) Change Order No. 1
Construction Contracts 2,979 2,979 - 2,979 CLARKSON LAB & SUPPLY INC
Construction Contracts 76,507 37,241 39,265 76,507 COMMUNITY BANK
Service Contracts 522 522 - 522 FAVELA PRINTING INC
Total Construction 1,854,377 941,964 912,413 1,854,377
Grand Total 2,182,891 1,270,478 912,413 2,182,891
Vendor/Comments
Otay Water District
S2019 - Avocado Boulevard 8-inch Sewer Main Impr
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
ATTACHMENT B-2
SUBJECT/PROJECT:
S2019-001103
S2020-001103
S2022-001103
S2026-001103
Change Order No. 1 to the Contract with Garcia Juarez
Construction Inc. for the Calavo Gardens Sewer
Rehabilitation Project
Date Updated: September 25, 2012
Budget
600,000
Planning 001101
Labor 2,185 5,352 (3,167) 2,185
Consultant Contracts 2,185 2,185 - 2,185 LEE & RO INC
Total Planning 24,035 7,537 16,498 24,035
Design 001102
Labor 24,152 24,152
Other Agency Fees 3,460 3,460 - 3,460 COUNTY OF SAN DIEGO
Consultant Contracts 8,000 8,000 - 8,000 DARNELL & ASSOCIATES INC
Consultant Contracts 4,430 4,430 - 4,430 MTGL INC
Consultant Contracts 21,588 21,588 - 21,588 LEE & RO INC
Supplier Contracts 188 188 - 188 US BANK CORPORATE PAYMENT
Service Contracts 145 145 - 145 US BANK CORPORATE PAYMENT
Total Design 37,811 61,963 - 61,963
Construction 001103
Labor 40,000 23,743 16,257 40,000
Consultant Contracts 18,240 18,240 - 18,240 VALLEY CONSTRUCTION MANAGEMENT
Consultant Contracts 1,250 1,250 - 1,250 ALTA LAND SURVEYING INC
Consultant Contracts 400 400 - 400 LEE & RO INC
Construction Contracts 433,271 170,172 263,099 433,271 GARCIA JUAREZ CONSTRUCTION INC
(11,020) (11,020) - (11,020) Change Order No. 1
Construction Contracts 22,804 8,956 13,847 22,804 COMMUNITY BANK
Construction Contracts 1,865 1,865 - 1,865 HELIX WATER DISTRICT
Service Contracts 967 967 - 967 MAYER REPROGRAPHICS INC
Service Contracts 735 735 - 735 AFFORDABLE DRAIN SERVICE INC
Service Contracts 1,505 1,505 - 1,505 HELIX WATER DISTRICT
Service Contracts 32 32 - 32 US BANK CORPORATE PAYMENT
Service Contracts - - - - MAIL MANAGEMENT GROUP INC
Total Construction 510,049 216,846 293,203 510,049
Grand Total 571,895 286,346 309,701 596,047
Vendor/Comments
Otay Water District
S2020 - Calavo Drive 8-inch Sewer Main Replacement
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
ATTACHMENT B-3
SUBJECT/PROJECT:
S2019-001103
S2020-001103
S2022-001103
S2026-001103
Change Order No. 1 to the Contract with Garcia Juarez
Construction Inc. for the Calavo Gardens Sewer
Rehabilitation Project
Date Updated: September 25, 2012
Budget
180,000
Planning 001101
Labor 1,321 1,321 - 1,321
Total Planning 1,321 1,321 - 1,321
Design 001102
Labor 22,630 22,630 - 22,630
Other Agency Fees 3,460 3,460 - 3,460 COUNTY OF SAN DIEGO
Consultant Contracts 4,989 4,989 - 4,989 LEE & RO INC
Consultant Contracts 6,000 6,000 - 6,000 DARNELL & ASSOCIATES INC
Total Design 37,080 37,080 - 37,080
Construction 001103
Labor 25,000 20,052 4,948 25,000
Consultant Contracts 403 403 - 403 LEE & RO INC
Consultant Contracts 400 400 - 400 ALTA LAND SURVEYING INC
Construction Contracts 104,522 103,571 951 104,522 GARCIA JUAREZ CONSTRUCTION INC
Construction Contracts 5,501 5,451 50 5,501 COMMUNITY BANK
Service Contracts 1,000 1,000 - 1,000 MAYER REPROGRAPHICS INC
Service Contracts 32 32 - 32 US BANK CORPORATE PAYMENT
Total Construction 136,858 130,909 5,949 136,858
Grand Total 175,259 169,310 5,949 175,259
Vendor/Comments
Otay Water District
S2022 - Hidden Mesa Drive 8-inch Sewer Main Rehabiliation
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
ATTACHMENT B-4
SUBJECT/PROJECT:
S2019-001103
S2020-001103
S2022-001103
S2026-001103
Change Order No. 1 to the Contract with Garcia Juarez
Construction Inc. for the Calavo Gardens Sewer
Rehabilitation Project
Date Updated: September 25, 2012
Budget
280,000
Planning 001101
Labor 1,371 1,371 - 1,371
Total Planning 1,371 1,371 - 1,371
Design 001102
Labor 7,730 7,730 - 7,730
Other Agency Fees 3,460 3,460 - 3,460 COUNTY OF SAN DIEGO
Consultant Contracts 9,581 9,581 - 9,581 LEE & RO INC
Consultant Contracts 4,800 4,800 - 4,800 DARNELL & ASSOCIATES INC
Consultant Contracts 4,000 4,000 - 4,000 MTGL INC
Total Design 29,571 29,571 - 29,571
Construction 001103
Labor 21,952 21,952 - 21,952
Consultant Contracts 270 270 - 270 ALTA LAND SURVEYING INC
Construction Contracts 209,044 198,592 10,452 209,044 GARCIA JUAREZ CONSTRUCTION INC
Construction Contracts 11,002 10,452 550 11,002 COMMUNITY BANK
Service Contracts 1,000 1,000 - 1,000 MAYER REPROGRAPHICS INC
Service Contracts 32 32 - 32 US BANK CORPORATE PAYMENT
Total Construction 243,300 232,298 11,002 243,300
Grand Total 274,243 263,240 11,002 274,243
Vendor/Comments
Otay Water District
S2026 - Challenge Blvd 8-Inch Sewer Main Repl
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
VICINITY MAP
IMPERIAL
CORONADO
CHULA
VISTA
EL CAJON
BEACH
LA MESA
PROJECT
SITES
CIP Title - Calavo Gardens Sewer Rehabilitation Project: S2019/S2020/S2022/S2026
Consultant/Contractor:Garcia Juarez Construction Subproject: 001103
APPROVED
C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O.
1 ($22,040.00)Board
Eight Items: Open Cut in lieu of jack & bore, delete MH
refurbishment, modify MH replacements, T&M settlement,
revised alignment, street light relocation, additional paving,
and unknown utilities
Owner
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
3435
Total C.O.'s To Date: ($22,040.00)-1.0%
Original Contract Amount:$2,316,275.00
Current Contract Amount:$2,294,235.00
Month Net C.O.$Limit Authorization Absolute C.O.$ C.O. %
10/12 ($22,040.00)$2,000 Insp 0.0%
$10,000 PM/Sr. Engr.0.0%
$20,000 DivM 0.0%
$25,000 Chief 0.0%
$35,000 AGM 0.0%
$50,000 GM 0.0%
>$50000 Board ($22,040.00)-1.0%
CHANGE ORDER LOG
P:\WORKING\CIP S2019, S2020, S2022 Avocado Sewer\Construction\Avocado Sewer Project\Change
Orders\COLOG.XLS 1 10/4/2012
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: November 7, 2012
SUBMITTED BY:
Kevin Koeppen, Finance
Manager
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Approve the District’s Audited Financial Statements for the
Fiscal Year Ended June 30, 2012
GENERAL MANAGER’S RECOMMENDATION:
That the Board approve the District’s Audited Financial Statements
(Attachment B), including the Independent Auditors’ unqualified
opinion, for the fiscal year ended June 30, 2012.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To inform the Board of the significant financial events which
occurred during the fiscal year ended June 30, 2012 as reflected in
the audited financial statements.
ANALYSIS:
Diehl, Evans & Company, LLP, performed the audit and found that, in
all material respects, the financial statements correctly represent
AGENDA ITEM 7a
2
the financial position of the District. They found no material
errors in the financial records or statements and had no comments
concerning internal controls, which is presented in their “Management
Letter” (Attachment C). A few financial statement adjustments were
made during the audit and presented in their “Audit Committee Letter”
(Attachment D).
Total Assets:
Total assets decreased by $6.3 million or 1.05% during Fiscal Year
2012, to $592.3 million. Below is a summary of the decrease in total
assets.
$3.2 million Payment of long-term debt
$1.0 million Reduction in grant funds received
$1.4 million Write-off of CIP expenses consisting primary of:
o $737,000 Dorchester demolition
o $251,000 24” Sweetwater Perdue pipeline project
o $141,000 Funding conversion of Potable to recycled meters
$0.7 million All other items
Total Liabilities & Net Assets:
Total liabilities decreased by approximately $3.1 million or 2.22%
from the previous fiscal year, to $135.9 million. This is
attributable to a decrease in long-term debt of $3.2 million.
The decrease in total assets of $6.3 million, along with the decrease
in total liabilities of $3.1 million, yields a decrease in net assets
(equity) of $3.2 million or 0.70%, to $456.4 million.
Capital Contributions:
Capital contributions totaled $6.8 million during Fiscal Year 2012, a
decrease of $1.0 million or 13.22% from Fiscal Year 2011
contributions. This decrease is mainly due to the District receiving
more federal grant monies than expected in the prior year, as a
result of last minute availability of funds from the federal budget.
Results of Operations:
Operating revenues increased $5.2 million or 8.22%, mainly as a
result of the overall increase in water rates from the prior fiscal
year.
While cost of water sales increased $4.1 million or 9.70% due to the
increase in CWA water costs, cost savings achieved in other areas
3
were sufficient to keep total operating expenses from rising
significantly compared to the prior fiscal year.
Non-Operating Revenues & Expenses:
Non-operating revenues increased $0.4 million or 4.36%, to $9.1
million for 2012. While there was a decrease in investment income of
almost $400,000 due to a continuing drop in rates of investment
securities, this was offset by income received from the federal
subsidy of interest expenses related to the 2010 Water Revenue Bonds.
Additional Audit Correspondence:
As a part of completing the audit engagement, the audit firm also
provides the following letters summarizing their observations and
conclusions concerning the District’s overall financial processes:
Management Letter: The auditors did not identify any specific
deficiencies in accounting procedure internal controls that
they considered to be material weaknesses. See Attachment C.
Audit Committee Letter: This letter describes overall aspects
of the audit, to include audit principles, performance,
dealings with management, and significant findings or issues.
The auditors proposed three journal entry adjustments during
the audit to ensure the financial statements were in
conformity with all generally accepted accounting principle
(GAAP) guidelines, all of which were completed by management
and incorporated in the final account balances at June 30,
2012.
There were no disagreements with management concerning
financial accounting, reporting, or auditing matters, and
there were no significant difficulties in dealing with
management in performing the audit. See Attachment D.
Report on Applying Agreed-Upon Procedures: A review of the
District’s investment portfolio at year end, and a sample of
specific investment transactions completed throughout the
fiscal year, disclosed no exceptions to compliance with the
District’s Investment Policy. See Attachment E.
4
FISCAL IMPACT:
None.
STRATEGIC GOAL:
The District ensures its continued financial health through long-term
financial planning, formalized financial policies, enhanced budget
controls, fair pricing, debt planning, and improved financial
reporting.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action Form
B) Audited Annual Financial Statements
C) Management Letter
D) Audit Committee Letter
E) Report on Applying Agreed-Upon Procedures
ATTACHMENT A
SUBJECT/PROJECT:
Approve the District’s Audited Financial Statements for the
Fiscal Year Ended June 30, 2012
COMMITTEE ACTION:
The Finance, Administration and Communications Committee reviewed this
item at a meeting held on October 23, 2012 and the following comments
were made:
Staff indicated that White Nelson Diehl Evans & Company, LLP
(WNDEC) completed the District’s audit for fiscal year ended June
30, 2012. This is their third year performing the District’s
audit.
Overall District assets decreased by $6.3 million due to
decreases of:
$3.2 million for payments on long-term debt
$1 million due to a reduction in grant funds received
$1.4 million due to the write-off of CIP expenses that were
not capitalized for various projects
Capital contributions for FY 2012 was $6.8 million, where $2
million was from capital improvements from permits, $3.5 million
was contributed to fixed assets from developers, and $1.4 million
was from capacity fees.
Operating revenue increased $5.2 million mainly due to the
overall increase in water rates. The overall debt service ratio,
a ratio used to analyze the District’s ability to meet its debt
and interest payments, was 132% for the fiscal year.
Mr. Nitin Patel of WNDEC attended to present the findings of the
audit for FY 2012. He stated his organization’s responsibility
is to express an opinion on the financial statements of the
District. WNDEC’s audit of the District’s FY 2012 resulted in an
unqualified opinion. Mr. Patel indicated that the financial
statement presents fairly, in all material respects, the
financial position of the District in accordance with generally
accepted accounting principles.
Mr. Patel indicated that his organization also issues a report on
internal controls over financial reporting and compliance, known
as the Management Letter. He stated that WNDEC did not identify
any material weaknesses in internal controls.
Communication under Audit Standard No. 114, which discusses the
Qualitative Aspects of Accounting Practices, indicates WNDEC
found no new accounting policies that have been adopted and the
application of existing policies were not changed during the
fiscal year. There were also no noted transactions entered into
by the District for which there is a lack of authoritative
guidance or consensus.
Mr. Patel indicated that his firm did not have any difficulties
in performing the audit.
The last report issued is the Independent Accountants’ Report on
Applying Agreed-Upon Procedures regarding the District’s
investments. There were no findings to report. The investments
tested by WNDEC were in compliance with the District’s Investment
Policy.
The committee inquired with regard to last year’s audit, if the
suggested adjustments/improvements were reported in this year’s
audit indicating that they were completed or brought up to
standard. Staff explained that there were some items noted in
last year’s audit and corrections were implemented by staff prior
to the presentation of the audit findings to the committee one
(1) year ago. Staff had shared what those changes were with the
committee at that time. Mr. Patel noted that they are required
in their audit standards to follow-up on such comments from the
prior year and if those comments were repeated, it would have
been noted in their Management Letter.
In response to an inquiry from the committee regarding the
reduction in the government grant funding, staff explained that
the District for many years had been funding large Capital
Improvement Projects and the U.S. Bureau of Reclamation was very
behind in paying the District the grant funding for those
projects. They have finally caught up this year. In the past
couple fiscal years, the District has not been spending as much
on such projects and there has not been much grant funding to be
received.
The committee also inquired why the District’s cash and cash
equivalents dropped. Staff indicated that the District issued
$51 million in debt last year for capital projects and had spent
approximately $17 million to fund some of those projects.
The committee noted that the District’s finances were reviewed by
a third party representing the public and the audit indicates
that the District’s handling of its finances is sound. The
committee stated that they were very pleased with the audit
results.
Following the discussion, the Finance, Administration and
Communications Committee supported accepting the District’s Audited
Financial Statements and presentation to the full board as an action
item.
OTAY WATER DISTRICT
FINANCIAL STATEMENTS
WITH REPORT ON AUDIT BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
JUNE 30, 2012 AND 2011
TABLE OF CONTENTS
JUNE 30, 2012 and 2011
Page
Number
Independent Auditors’ Report 1 - 2
Management’s Discussion and Analysis (Required Supplementary Information) 3 - 7
Basic Financial Statements:
Statements of Net Assets 8 - 9
Statements of Revenues, Expenses and Changes in Net Assets 10
Statements of Cash Flows 11 - 12
Notes to Financial Statements 13 – 37
Required Supplementary Information:
Schedule of Funding Progress for PERS 38
Schedule of Funding Progress for DPHP 38
2965 Roosevelt Street, Carlsbad, CA 92008-2389 • Tel: 760.729.2343 • Fax: 760.729.2234
Offices located in Orange and San Diego Counties
INDEPENDENT AUDITORS' REPORT
Board of Directors
Otay Water District
Spring Valley, California
We have audited the accompanying basic financial statements of Otay Water District as of and for the years
ended June 30, 2012 and 2011, as listed in the table of contents. These basic financial statements are the
responsibility of the Otay Water District’s management. Our responsibility is to express opinions on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America, the State Controller’s Minimum Audit Requirements for California Special Districts, and the standards
applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal
control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinions.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the
financial position of the Otay Water District as of June 30, 2012 and 2011, and the respective changes in
financial position and cash flows for the years then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated October 15, 2012 on
our consideration of the District’s internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report
is to describe the scope of our testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
1
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, PERS Defined Benefit Pension Plan – schedule of funding progress, and other post-
employment benefit plan – schedule of funding progress, as identified in the accompanying table of contents be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
October 15, 2012
Carlsbad, California
2
Management’s Discussion and Analysis
3
As management of the Otay Water District (the “District”), we offer readers of the District’s financial statements this
narrative overview and analysis of the District’s financial performance during the fiscal year ending June 30, 2012. Please
read it in conjunction with the District’s financial statements that follow Management’s Discussion and Analysis. All
amounts, unless otherwise indicated, are expressed in millions of dollars.
Financial Highlights
• The assets of the District exceeded its liabilities at the close of the most recent fiscal year by $456.4 million
(net assets). Of this amount, $70.0 million (unrestricted net assets) may be used to meet the District’s ongoing
obligations to citizens and creditors.
• Total assets decreased by $6.3 million or 1.05% during Fiscal Year 2012, to $592.3 million, due primarily to the
write-off of CIP projects that were no longer viable as a part of the District’s long range plans for growth and
improvements to infrastructure. Other significant factors were the annual payment of long-term debt and a
reduction in grant funds received.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements, which are
comprised of the following: 1) Statement of Net Assets, 2) Statement of Revenues, Expenses and Changes in Net Assets,
3) Statement of Cash Flows, and 4) Notes to the Financial Statements. This report also contains other supplementary
information in addition to the basic financial statements.
The Statement of Net Assets presents information on all of the District’s assets and liabilities, with the difference between
the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether
the financial position of the District is improving or weakening.
The Statement of Revenues, Expenses and Changes in Net Assets presents information showing how the District’s net
assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused vacation leave).
The Statement of Cash Flows presents information on cash receipts and payments for the fiscal year.
The Notes to the Financial Statements provide additional information that is essential to a full understanding of the data
supplied in each of the specific financial statements listed above.
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the District’s progress in funding its obligation to provide pension benefits to its
employees.
Financial Analysis
As noted, net assets may serve over time as a useful indicator of an entity’s financial position. In the case of the District,
assets exceeded liabilities by $456.4 million at the close of the most recent fiscal year.
By far the largest portion of the District’s net assets, $381.7 million (84%), reflects its investment in capital assets, less any
remaining outstanding debt used to acquire those assets. The District uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the District’s investment in its capital
assets is reported effectively as a resource, however, it should be noted that the resources needed to repay the debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Management’s Discussion and Analysis
4
Statements of Net Assets
(In Millions of Dollars)
2012 2011 2010
Assets
Current and Other Assets $ 111.5 $ 124.1 $ 135.3
Capital Assets 480.8 474.4 469.2
Total Assets 592.3 598.5 604.5
Liabilities
Long-Term Debt Outstanding 111.2 114.5 117.7
Other Liabilities 24.7 24.4 25.5
Total Liabilities 135.9 138.9 143.2
Net Assets
Invested in Capital Assets
Net of Related Debt 381.7 377.7 375.9
Restricted for Debt Service 4.7 4.9 5.2
Unrestricted 70.0 77.0 80.2
Total Net Assets $ 456.4 $ 459.6 $ 461.3
While the District’s operations and population continue to grow, albeit at slower rates than in prior years, the pattern of
reduced growth of the District’s Net Assets is indicative of the reduction in new development projects within the District.
This reduction is a result of the ongoing national housing slump and financial crisis.
In FY-2012 the District continued its use of the $51.2 million of proceeds from the issuance of its 2010 Water Revenue
Bonds program (See Note 5 in the Notes to Financial Statements) for its CIP program (See Note 3 in the Notes to Financial
Statements), as seen by the decrease in Current and Other Assets of $12.6 million, which was partially offset by a
corresponding increase in Capital Assets of $6.4 million. The District also saw a decrease in Long-Term Debt of $3.3
million due to the annual payments of long-term debt.
In response to the prolonged business slowdown, during FY-2011 the District performed a review of Fixed Assets throughout
the system and wrote off $2.9 million of fully depreciated Property, Plant & Equipment that was no longer serviceable or
functioning efficiently. Additionally, the Engineering Department completed an analysis of several Construction-in-Progress
projects that were still in the developmental stages and determined they were no longer viable as a part of the District’s long
range plan for growth and improvements to infrastructure. This resulted in FY-2011 expenses of $1.2 million and FY-2010
expenses of $1.3 million.
For the entire financial reporting period, Fiscal Years 2012 and 2011, total Net Assets decreased approximately $3.2 million
for FY-2012, to $456.4 million, as compared to FY-2011 when Net Assets decreased by $1.7 million. At the end of FY-2012
the District is able to report positive balances in all categories of net assets. This situation also held true for the prior two
fiscal years.
Management’s Discussion and Analysis
5
Statements of Revenues, Expenses, and Changes in Net Assets
(In Millions of Dollars)
2012 2011 2010
Water Sales $ 63.8 $ 58.3 $ 56.3
Wastewater Revenue 2.4 2.4 2.3
Connection and Other Fees 2.2 2.5 2.1
Non-operating Revenues 9.1 8.8 8.9
Total Revenues 77.5 72.0 69.6
Depreciation Expense 15.2 13.9 13.3
Other Operating Expense 66.5 63.4 59.8
Non-operating Expense 5.8 4.3 3.0
Total Expenses 87.5 81.6 76.1
Loss Before Capital
Contributions (10.0) (9.6) (6.5)
Capital Contributions 6.8 7.9 8.8
Change in Net Assets
Prior Period Adjustment
(3.2) (1.7) 2.3
(1.3)
Beginning Net Assets 459.6 461.3 460.3
Ending Net Assets $ 456.4 $ 459.6 $ 461.3
Water Sales increased by $2.0 million in FY-2011 and $5.5 million in FY-2012, mainly due to rate increases in both years.
The slowdown in growth throughout the District was also reflected in the modest increase in Connection and Other Fees of
$0.4 million in FY-2011, followed by a slight decrease of $0.3 million in FY-2012.
Other Operating Expense has increased predominantly due to the increase in Cost of Water Sales, from a combination of the
increased price-per-acre-foot of water obtained from Los Angeles Metropolitan Water District of 7.50%, and 9.97% from San
Diego County Water Authority, brought on by the high cost of supply programs as well as higher energy and operating costs.
The slowdown in the economy appears to have leveled off. However, due to the nationwide housing mortgage crisis
throughout the last several years, developers have either slowed-down or totally stopped work on many projects until
economic conditions improve and the demand for growth returns. This has resulted in Capital Contributions remaining low
over the last 3-years, compared to the extended growth of the previous 10-years. While this slowdown now appears to have
stabilized, the District was aided in its Capital Contributions through the receipt of additional federal grant monies of $1.6
million in FY-2011, and $935,000 in FY-2012.
Management’s Discussion and Analysis
6
Non-operating Revenues
Non-operating Revenues by Major Source
(In Millions of Dollars)
2012 2011 2010
Taxes and assessments $ 3.5 $ 3.9 $ 4.0
Rents and leases 1.2 1.2 1.1
Other Non-operating Revenue 4.4 3.7 3.8
Total Revenues 9.1 8.8 8.9
The District’s non-operating revenues decreased by $0.1 million in FY-2011 and grew $0.3 million in FY-2012. The
increase in FY-2012 was primarily a result of increased miscellaneous income offset by decreases in investment income as
well as taxes and assessments.
Capital Assets and Debt Administration
The District’s capital assets as of June 30, 2012, totaled $480.8 million (net of accumulated depreciation).
Included in this amount is land. The total increase in the District’s capital assets was 1.1% for FY-2011 and 1.4% in
FY-2012.
Capital Assets
(In Millions of Dollars)
2012 2011 2010
Land $ 13.7 $ 13.6 $ 13.6
Construction in Progress 17.5 17.9 35.2
Water System 452.1 441.9 409.5
Recycled Water System 108.0 98.3 97.7
Sewer System 37.8 37.7 37.4
Field Equipment 8.6 9.8 9.5
Buildings 18.6 18.5 18.5
Transportation Equipment 3.2 3.2 3.3
Communication Equipment 2.5 2.4 1.3
Office Equipment 17.2 17.3 18.4
679.2 660.6 644.4
Less Accumulated
Depreciation (198.4) (186.2) (175.2)
Net Capital Assets $ 480.8 $ 474.4 $ 469.2
As indicated by figures in the table above, the majority of capital assets added during both fiscal years were related to the
potable and recycled water systems. In addition, the majority of the cost of construction-in-progress is also related to these
water systems. Additional information on the District’s capital assets can be found in Note 3 of the Notes to Financial
Statements.
Management’s Discussion and Analysis
7
At June 30, 2012, the District had $111.2 million in outstanding debt (net of $3.3 million of maturities occurring in fiscal
year 2013), which consisted of the following:
General Obligation Bonds $ 5.8
Certificates of Participation 55.9
Revenue Bonds 49.5
Total Long-Term Debt $ 111.2
Additional information on the District’s long-term debt can be found in Note 5 of the Notes to Financial Statements.
Fiscal Year 2012-2013 Budget
Economic Factors
Growth in the San Diego area has declined over the last 4 years, but is slowly improving. This modest shift is also being
reflected in the demand for housing. Although San Diego received less than normal rainfall in Fiscal Year 2012, the
District is expecting that San Diego’s rainfall will return to its average pattern and volume in the coming years. Water
sales volumes are expected to increase slightly as the economy is slowly improving, but will be partially offset by
expanded efforts to promote water conservation. The coming years will continue to pose challenges for those in
California’s water community. It is uncertain if the challenges facing the Sacramento-San Joaquin Bay Delta, the source of
30% of Southern California’s water supply, will be addressed. In addition, weather and rainfall always bring a level of
uncertainty to the delivery of water to customers in the arid southwestern states. The combination of these factors add to
the cost of providing a stable supply of water as water providers look to new and more costly sources of water.
The District currently provides water service to about 73% of its projected ultimate population, serving approximately
208,000 people. Long-term, this percentage should continue to increase as the District's service area continues to develop
and grow. Ultimately, the District is projected to serve approximately 285,000 people, with an average daily demand of 46
million gallons per day (MGD). Currently, the District services the needs of this growing population by purchasing water
from CWA, who in turn purchases its water from MWD and the Imperial Irrigation District (IID). Otay takes delivery of
the water through several connections of large diameter pipelines owned and operated by CWA. The District currently
receives treated water from CWA and the Helix Water District (HWD), by contract with CWA. In addition, the District
has an emergency agreement with the City of San Diego to purchase water in the case of a shutdown of the main treated
water source. The City of San Diego also has a long-term contract with the District to provide recycled water for
landscape and irrigation usage. Through innovative agreements like this, benefits can be achieved by both parties by using
excess capacity of another agency, and diversifying local supply, thereby increasing reliability.
Financial
The District is projected to deliver approximately 28,925 acre-feet of potable water to 48,860 potable customer accounts
during Fiscal Year 2012-2013. Management feels that these projections are realistic after accounting for low growth,
supply changes, and a focus on conservation. Current economic conditions throughout America have created an
unprecedented uncertainty for business and economic projections in the current fiscal year. The nationwide housing
mortgage crisis has leveled off, but continues to result in foreclosures within the District. Additionally, the crisis in the
banking and financial industry has had a ripple effect resulting in continued levels of high unemployment. One of the
subsequent results of these two broad events is the relocation of many homeowners and renters into new housing
arrangements throughout San Diego County. Even with the various challenges, people’s need for water remains an
underlying constant. Staff continues working diligently on developing new water supplies as they work through the
financial impacts of conservation and the modest economic turnaround.
Management is unaware of any other conditions that could have a significant impact on the District’s current financial
position, net assets, or operating results.
Contacting the District’s Financial Management
This financial report is designed to provide a general overview of the Otay Water District’s finances for the Board of
Directors, taxpayers, creditors, and other interested parties. Questions concerning any of the information provided in the
report or requests for additional information should be addressed to the District’s Finance Department, 2554 Sweetwater
Springs Blvd., Spring Valley, CA 91978-2004.
2012 2011
ASSETS
Current Assets:
Cash and cash equivalents (Notes 1 and 2) 31,075,455$ 48,563,129$
Restricted cash and cash equivalents (Notes 1 and 2) 4,057,726 5,239,430
Investments (Note 2) 37,069,853 28,691,752
Restricted investments (Notes 1 and 2) 16,124,042 20,622,679
Accounts receivable, net 10,575,970 9,235,138
Accrued interest receivable 106,375 180,113
Taxes and availability charges receivable, net 481,955 454,948
Restricted taxes and availability charges receivable, net 57,313 75,588
Inventories 789,769 835,321
Prepaid expenses and other current assets 1,226,703 1,189,206
Total Current Assets 101,565,161 115,087,304
Noncurrent Assets:
Net OPEB asset (Note 8) 8,321,902 7,416,346
Deferred bond issuance costs (Note 4)1 532 857 1 618 069
STATEMENTS OF NET ASSETS
JUNE 30, 2012 AND 2011
Deferred bond issuance costs (Note 4)1,532,857 1,618,069
Capital Assets (Note 3):
Land 13,703,463 13,636,663
Construction in progress 17,452,274 17,909,282
Capital assets, net of depreciation 449,674,352 442,881,020
Total capital assets, net of depreciaton 480,830,089 474,426,965
Total Noncurrent Assets 490,684,848 483,461,380
Total Assets 592,250,009 598,548,684
(Continued)
See accompanying independent auditors' report and notes to financial statements. 8
2012 2011
LIABILITIES
Current Liabilities:
Current maturities of long-term debt (Note 5) 3,320,000 3,146,010
Accounts payable 10,478,366 13,000,560
Accrued payroll liabilities 2,591,272 2,932,277
Other accrued liabilities 3,932,442 739,868
Customer deposits 1,863,992 2,105,187
Accrued interest 1,639,681 1,656,826
Liabilities Payable From Restricted Assets:
Restricted accrued interest 81,354 86,405
Total Current Liabilities 23,907,107 23,667,133
Noncurrent Liabilities:
Long-term debt (Note 5):
General obligation bonds 5,819,027 6,298,577
Certificates of participation 55 886 449 57 865 531
STATEMENTS OF NET ASSETS (CONTINUED)
JUNE 30, 2012 AND 2011
Certificates of participation 55,886,449 57,865,531
Revenue bonds 49,521,421 50,395,822
Other noncurrent liabilities 721,626 715,037
Total Noncurrent Liabilities 111,948,523 115,274,967
Total Liabilities 135,855,630 138,942,100
NET ASSETS
Invested in capital assets, net of related debt 381,725,015 377,656,762
Restricted for debt service 4,715,904 4,915,555
Unrestricted 69,953,460 77,034,267
Total Net Assets 456,394,379$ 459,606,584$
See accompanying independent auditors' report and notes to financial statements. 9
2012 2011
OPERATING REVENUES
Water sales 63,830,272$ 58,293,184$
Wastewater revenue 2,400,313 2,396,385
Connection and other fees 2,169,764 2,514,647
Total Operating Revenues 68,400,349 63,204,216
OPERATING EXPENSES
Cost of water sales 46,106,403 42,029,819
Wastewater 2,547,929 2,592,823
Administrative and general 17,926,430 18,763,380
Depreciation 15,214,704 13,880,206
Total Operating Expenses 81,795,466 77,266,228
Operating Income (Loss) (13,395,117) (14,062,012)
NONOPERATING REVENUES (EXPENSES)
Investment income 436,596 854,440
Taxes and assessments 3,502,155 3,895,938
A il bili h 696 863 653 012
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 2012 AND 2011
Availability charges 696,863 653,012
Gain (loss) on sale of capital assets (278,540) 55,300
Miscellaneous revenues 4,788,711 3,304,963
Donations (121,617) (120,648)
Interest expense (3,899,927) (3,877,531)
Miscellaneous expenses (1,767,226) (312,649)
Total Nonoperating Revenues (Expenses) 3,357,015 4,452,825
Income (Loss) Before Capital Contributions (10,038,102) (9,609,187)
Capital Contributions 6,825,897 7,866,190
Changes in Net Assets (3,212,205) (1,742,997)
Total Net Assets, Beginning 459,606,584 461,349,581
Total Net Assets, Ending 456,394,379$ 459,606,584$
See accompanying independent auditors' report and notes to financial statements. 10
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 64,648,558$ 60,372,625$
Receipts from connections and other fees 2,169,764 2,514,647
Other receipts 3,566,651 2,119,390
Payments to suppliers (46,620,831) (47,028,888)
Payments to employees (20,521,468) (19,439,549)
Other payments (1,724,744) (269,198)
Net Cash Provided (Used) by Operating Activities 1,517,930 (1,730,973)
CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES
Receipts from taxes and assessments 3,493,423 3,918,750
Receipts from property rents and leases 1,222,060 1,185,573
Net Cash Provided (Used) by Noncapital
and Related Financing Activities 4,715,483 5,104,323
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from capital contributions 3,363,090 7,386,617
Proceeds from sale of capital assets 28,128 81,220
Proceeds from debt related taxes and assessments 696,863 653,012
Principal payments on long-term debt (3,146,010)(2,668,734)
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2012 AND 2011
Principal payments on long term debt (3,146,010) (2,668,734)
Interest payments and fees (5,199,488) (4,696,309)
Acquisition and construction of capital assets (17,276,246) (17,474,142)
Net Cash Provided (Used) by Capital
and Related Financing Activities (21,533,663) (16,718,336)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 580,872 945,888
Proceeds from sale and maturities of investments 108,410,000 114,918,280
Purchase of investments (112,360,000) (110,029,066)
Net Cash Provided (Used) by Investing Activities (3,369,128) 5,835,102
Net Increase (Decrease) in
Cash and cash equivalents (18,669,378) (7,509,884)
Cash and cash equivalents, Beginning 53,802,559 61,312,443
Cash and cash equivalents, Ending 35,133,181$ 53,802,559$
(Continued)
See accompanying independent auditors' report and notes to financial statements. 11
2012 2011
Reconciliation of operating income (loss) to net cash flows provided
(used) by operating activities:
Operating income (loss) (13,395,117)$ (14,062,012)$
Adjustments to reconcile operating income
to net cash provided (used) by operating activities:
Depreciation 15,214,704 13,880,206
Miscellaneous revenues 3,566,651 2,119,390
Miscellaneous expenses (1,724,744) (269,198)
(Increase) decrease in accounts receivable (1,340,832) (275,771)
(Increase) decrease in inventory 45,552 118,686
(Increase) decrease in net OPEB asset (905,556) (632,961)
(Increase) decrease in prepaid expenses and other current assets (37,497) (562,785)
Increase (decrease) in accounts payable (2,522,194) (2,326,805)
Increase (decrease) in accrued payroll and related expenses (341,005) 188,869
Increase (decrease) in other accrued liabilities 3,192,574 101,853
Increase (decrease) in customer deposits (241,195) (41,173)
Increase (decrease) in prepaid capacity fees 6,589 30,728
Net Cash Provided (Used) By Operating Activities 1,517,930$ (1,730,973)$
STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED JUNE 30, 2012 AND 2011
Schedule of Cash and Cash Equivalents:
Current assets:
Cash and cash equivalents 31,075,455$ 48,563,129$
Restricted cash and cash equivalents 4,057,726 5,239,430
Total Cash and Cash Equivalents 35,133,181$ 53,802,559$
Supplemental Disclosures:
Non-cash Investing and Financing Activities Consisted of the Following:
Contributed Capital for Water and Sewer System 3,462,807$ 479,573$
Change in Fair Value of Investments and Recognized Gains/Losses (127,662) (73,092)
Amortization Related to Long-Term Debt 164,101 164,101
See accompanying independent auditors' report and notes to financial statements. 12
NOTE DESCRIPTION PAGE
1 Reporting Entity and Summary of Significant Accounting Policies..… 13 – 15
2 Cash and Investments…………………………………………..……... 16 – 20
3 Capital Assets…………………………………………………..……... 21 – 22
4 Other Noncurrent Assets…………………………………………….. 22
5 Long-Term Debt………………………………………………….…… 23 – 27
6 Net Assets…………………………………………………………….. 27
7 Defined Benefit Pension Plan…………………………………………. 27 – 28
8 Other Post Employment Benefits………………………..…………..... 29 – 31
9 Water Conservation Authority………………………………………... 31
10 Commitments and Contingencies…………………………………….. 32
11 Risk Management…………………………………………………….. 32 – 33
12 Interest Expense……………………………………………………..... 33
13 Segment information……………………………………………..... 34 – 36
Required Supplementary Information:
1 Schedule of Funding Progress for PERS………………………………38
2 Schedule of Funding Progress for DPHP……………………………...38
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 13
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
Otay Water District (the “District”) is a public entity established in 1956 pursuant to the Municipal Water District Law of
1911 (Section 711 et. Seq. of the California Water Code) for the purpose of providing water and sewer services to the
properties in the District. The District is governed by a Board of Directors consisting of five directors elected by
geographical divisions based on District population for a four-year alternating term.
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation
Measurement focus is a term used to describe “which” transactions are recorded within the various financial
statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus
applied. The accompanying financial statements are reported using the economic resources measurement focus, and
the accrual basis of accounting. Under the economic measurement focus all assets and liabilities (whether current or
noncurrent) associated with these activities are included on the Statement of Net Assets. The Statement of Revenues,
Expenses and Changes in Net Assets present increases (revenues) and decreases (expenses) in total net assets. Under
the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows.
The District reports its activities as an enterprise fund, which is used to account for operations that are financed and
operated in a manner similar to a private business enterprise, where the intent of the District is that the costs
(including depreciation) of providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges.
The basic financial statements of the Otay Water District have been prepared in conformity with accounting principles
generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the
accepted standard setting body for governmental accounting financial reporting purposes.
Net assets of the District are classified into three components: (1) invested in capital assets, net of related debt, (2)
restricted net assets, and (3) unrestricted net assets. These classifications are defined as follows:
Invested in Capital Assets, Net of Related Debt
This component of net assets consists of capital assets, net of accumulated depreciation and reduced by the
outstanding balances of notes or borrowing that are attributable to the acquisition of the asset, construction, or
improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt
attributable to the unspent proceeds are not included in the calculation of invested in capital assets, net of related debt.
Restricted Net Assets
This component of net assets consists of net assets with constrained use through external constraints imposed by
creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or
constraints imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Assets
This component of net assets consists of net assets that do not meet the definition of “invested in capital assets, net of
related debt” or “restricted net assets”.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 14
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued
The District distinguishes operating revenues and expenses from those revenues and expenses that are nonoperating.
Operating revenues are those revenues that are generated by water sales and wastewater services while operating
expenses pertain directly to the furnishing of those services. Nonoperating revenues and expenses are those revenues
and expenses generated that are not directly associated with the normal business of supplying water and wastewater
treatment services.
The District recognizes revenues from water sales, wastewater revenues, and meter fees as they are earned. Taxes and
assessments are recognized as revenues based upon amounts reported to the District by the County of San Diego, net of
allowance for delinquencies of $57,465 and $58,948 at June 30, 2012 and 2011, respectively.
Additionally, capacity fee contributions received which are related to specific operating expenses are offset against
those expenses and included in Cost of Water Sales in the Statement of Revenues and Expenses and Changes in Net
Assets.
When both restricted and unrestricted resources are available for use, it is the District’s practice to use restricted
resources first, then unrestricted resources as they are needed.
C) Statement of Cash Flows
For purposes of the Statement of Cash Flows, the District considers all highly liquid investments (including
restricted assets) with a maturity period, at purchase, of three months or less to be cash equivalents.
D) Investments
The District’s investments are stated at fair value, except for short-term investments, which are reported at cost,
which approximates fair value. Investments in governmental investment pools are reported on the fair value per
share of the pool’s underlying portfolio.
E) Inventory and Prepaids
Inventory consists primarily of materials used in the construction and maintenance of the water and sewer system and
is valued at weighted average cost. Both inventory and prepaids use the consumption method whereby they are
reported as an asset and expensed as they are consumed.
F) Capital Assets
Capital assets are recorded at cost, where historical records are available, and at an estimated historical cost where no
historical records exist. Infrastructure assets in excess of $20,000 and other capital assets in excess of $10,000 are
capitalized if they have an expected useful life of two years or more. The District will also capitalize individual
purchases under the capitalization threshold if they are part of a new capital program. The cost of purchased and self-
constructed additions to utility plant and major replacements of property are capitalized. Costs include materials, direct
labor, transportation, and such indirect items as engineering, supervision, employee fringe benefits, overhead, and
interest incurred during the construction period. Repairs, maintenance, and minor replacements of property are
charged to expense. Donated assets are capitalized at their approximate fair market value on the date contributed.
The District capitalizes interest on construction projects up to the point in time that the project is substantially
completed. Capitalized interest for fiscal year ending June 30, 2012 of $1,185,443 is included in the cost of water
system assets and is depreciated on the straight-line basis over the estimated useful lives of such assets.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 15
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
F) Capital Assets - Continued
Depreciation is calculated using the straight-line method over the following estimated useful lives:
Water System 15-70 Years
Field Equipment 2-50 Years
Buildings 30-50 Years
Communication Equipment 2-10 Years
Transportation Equipment 2-4 Years
Office Equipment 2-10 Years
Recycled Water System 50-75 Years
Sewer System 25-50 Years
G) Compensated Absences
It is the District’s policy to record the cost of paid time off (vacation and sick leave) as it is earned. Paid time off is
payable to employees at the time it is taken or upon termination of employment. As of June 30, 2012 and 2011,
total accrued paid time off was $1,991,841 and $2,162,352, respectively.
H) Restricted Assets and Liabilities
Certain current liabilities have been classified as current liabilities payable from restricted assets as they will be
funded from restricted assets.
I) Allowance for Doubtful Accounts
The District charges doubtful accounts arising from water sales receivable to bad debt expense when it is probable that
the accounts will be uncollectible. Uncollectible accounts are determined by the allowance method based upon prior
experience and management’s assessment of the collectability of existing specific accounts. The allowance for
doubtful accounts were $14,461 and $148,047 for 2012 and 2011, respectively.
J) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
K) Property Taxes
Tax levies are limited to 1% of full market value (at time of purchase) which results in a tax rate of $1.00 per $100
assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded
from this limitation.
The County of San Diego (the “County”) bills and collects property taxes on behalf of the District. The County’s tax
calendar year is July 1 to June 30. Property taxes attach as a lien on property on January 1. Taxes are levied on July 1
and are payable in two equal installments on November 1 and February 1, and become delinquent after December 10
and April 10, respectively.
L) Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 16
2) CASH AND INVESTMENTS
The primary goals of the District’s Investment Policy are to assure compliance with all Federal, State, and Local laws
governing the investment of funds under the control of the organization, protect the principal of investments entrusted, and
generate income under the parameters of such policies.
Cash and Investments are classified in the accompanying financial statements as follows:
Statement of Net Assets:
Current Assets 2012 2011
Cash and Cash Equivalents $ 31,075,455 $ 48,563,129
Restricted Cash and Cash Equivalents 4,057,726 5,239,430
Investments 37,069,853 28,691,752
Restricted Investments 16,124,042 20,622,679
Total Cash and Investments $ 88,327,076 $ 103,116,990
Cash and Investments consist of the following:
2012 2011
Cash on Hand $ 2,950 $ 2,950
Deposits with Financial Institutions 1,519,979 981,696
Investments 86,804,147 102,132,344
Total Cash and Investments $ 88,327,076 $ 103,116,990
Investments Authorized by the California Government Code and the District’s Investment Policy
The table below identifies the investment types that are authorized for the District by the California Government Code (or
the District’s Investment Policy, where more restrictive). The table also identifies certain provisions of the California
Government Code (or the District’s Investment Policy, where more restrictive) that address interest rate risk, credit risk,
and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are
governed by the provisions of debt agreements of the District, rather than the general provisions of the California
Government Code or the District’s Investment Policy.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Of Portfolio(1) In One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Government Sponsored Entities 5 years None None
Certificates of Deposit 5 years 15% None
Corporate Medium-Term Notes 5 years 15% None
Commercial Paper 270 days 15% 10%
Money Market Mutual Funds N/A 15% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund
(LAIF)
N/A None None
(1) Excluding amounts held by bond trustee that are not subject to California Government Code restrictions.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 17
2) CASH AND INVESTMENTS - Continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the
general provisions of the California Government Code or the District’s Investment Policy.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest
rates. One of the ways that the District manages its exposure to interest rate risk is by purchasing a combination of shorter
term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or
coming close to maturity evenly over time, as necessary, to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the District’s investments to market interest rate fluctuations are
provided by the following tables that show the distribution of the District’s investments by maturity as of June 30, 2012
and 2011.
June 30, 2012
12 Months 13 to 24 25 to 60 More Than
Investment Type Or Less Months Months 60 Months
U.S. Government Sponsored Entities $ 53,100,166 $ 5,744,244 $24,995,670 $22,360,252 $ -
Local Agency Investment Fund
(LAIF) 11,614,981 11,614,981 - - -
San Diego County Pool 22,089,000 22,089,000 - - -
Total $ 86,804,147 $39,448,225 $24,995,670 $22,360,252 $ -
Remaining Maturity (in Months)
June 30, 2011
12 Months 13 to 24 25 to 60 More Than
Investment Type Or Less Months Months 60 Months
U.S. Government Sponsored Entities $ 49,263,245 $ - $21,821,835 $27,441,411 $ -
Local Agency Investment Fund
(LAIF) 35,876,620 35,876,620 - - -
Corporate Medium-Term Notes - - - - -
San Diego County Pool 16,992,479 16,992,479 - - -
Total $102,132,344 $52,869,099 $21,821,835 $27,441,411 $ -
Remaining Maturity (in Months)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 18
2) CASH AND INVESTMENTS - Continued
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is
the minimum rating required by (where applicable) the California Government Code or the District’s Investment Policy, or
debt agreements, and the Moody’s ratings as of June 30, 2012 and 2011 for each investment type.
June 30, 2012
Minimum
Legal Not
Investment Type Rating AAA AA Rated
U.S. Government Sponsored Entities $ 53,100,166 N/A $53,100,166 $ - $ -
Local Agency Investment
Fund (LAIF) 11,614,981 N/A - - 11,614,981
San Diego County Pool 22,089,000 N/A - - 22,089,000
Total $ 86,804,147 $53,100,166 $ - $33,703,981
Rating as of Year End
June 30, 2011
Minimum
Legal Not
Investment Type Rating AAA AA Rated
U.S. Government Sponsored Entities $ 49,263,245 N/A $49,263,246 $ - $ -
Local Agency Investment
Fund (LAIF) 35,876,620 N/A - - 35,876,620
San Diego County Pool 16,992,479 N/A - - 16,992,479
Total $102,132,344 $49,263,246 $ - $52,869,099
Rating as of Year End
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 19
2) CASH AND INVESTMENTS - Continued
Concentration of Credit Risk
The investment policy of the District contains various limitations on the amounts that can be invested in any one type or group
of investments and in any issuer, beyond that stipulated by the California Government Code, Sections 53600 through 53692.
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent
5% or more of total District investments as of June 30, 2012 and 2011 are as follows:
June 30, 2012
June 30, 2011
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government
will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside
party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-
dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in
the possession of another party. The California Government Code and the Entity’s investment policy do not contain legal or
policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following
provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or
local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law
(unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at
least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure
deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2012, $1,720,135 of the District’s deposits with financial institutions in excess of federal depository insurance
limits were held in collateralized accounts. As of June 30, 2011, $1,308,661 of the District’s deposits with financial
institutions in excess of federal depository insurance limits were held in collateralized accounts.
Issuer Investment Type Reported Amount
Federal Home Loan Bank U.S. Government Sponsored Entities $ 17,991,270
Federal Home Loan Mortgage Corp
Federal National Mortgage Association
Federal Farm Credit Banks
U.S. Government Sponsored Entities
U.S. Government Sponsored Entities
U.S. Government Sponsored Entities
15,753,834
14,993,400
4,361,662
Issuer Investment Type Reported Amount
Federal Home Loan Bank U.S. Government Sponsored Entities $ 17,791,131
Federal Home Loan Mortgage Corp
Federal National Mortgage Association
U.S. Government Sponsored Entities
U.S. Government Sponsored Entities
25,827,735
5,644,380
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 20
2) CASH AND INVESTMENTS - Continued
Local Agency Investment Fund (LAIF)
The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the
District’s investment in this pool is reported in the accompanying financial statements at amounts based upon District’s pro-
rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost-basis.
San Diego County Pooled Fund
The San Diego County Pooled Investment Fund (SDCPIF) is a pooled investment fund program governed by the County of
San Diego Board of Supervisors, and administered by the County of San Diego Treasurer and Tax Collector. Investments in
SDCPIF are highly liquid as deposits and withdrawals can be made at anytime without penalty.
The County of San Diego’s bank deposits are either Federally insured or collateralized in accordance with the California
Government Code. Pool detail is included in the County of San Diego Comprehensive Annual Financial Report (CAFR).
Copies of the CAFR may be obtained from the County of San Diego Auditor-Controller’s Office – 1600 Pacific Coast
Highway – San Diego, CA 92101.
Collateral for Deposits
All cash is entirely insured or collateralized.
Under the provisions of the California Government Code, California banks and savings and loan associations are required to
secure the District's deposits by pledging government securities as collateral. The market value of the pledged securities must
equal at least 110% of the District's deposits. California law also allows financial institutions to secure District deposits by
pledging first trust deed mortgage notes having a value of 150% of the District's total deposits.
The District may waive the 110% collateral requirement for deposits which are insured up to $250,000 by the FDIC.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 21
3) CAPITAL ASSETS
The following is a summary of changes in Capital Assets for the year ended June 30, 2012:
Beginning Balance Additions Deletions Ending Balance
Capital Assets, Not Depreciated
Land 13,636,663$ 66,800$ -$ 13,703,463$
Construction in Progress 17,909,282 19,086,698 (19,543,706) 17,452,274
Total Capital Assets Not Depreciated 31,545,945 19,153,498 (19,543,706) 31,155,737
Capital Assets, Being Depreciated
Infrastructure 577,926,518 20,908,862 (940,451) 597,894,929
Field Equipment 9,847,809 149,661 (1,395,410) 8,602,060
Buildings 18,451,132 198,077 - 18,649,209
Transportation Equipment 3,177,687 221,872 (178,310) 3,221,249
Communication Equipment 2,359,043 155,108 - 2,514,151
Office Equipment 17,332,966 681,123 (812,669) 17,201,420
Total Capital Assets Being Depreciated 629,095,155 22,314,703 (3,326,840) 648,083,018
Less Accumulated Depreciation:
Infrastructure 157,565,903 12,330,306 (637,807) 169,258,402
Field Equipment 8,619,183 149,708 (1,395,410) 7,373,481
Buildings 6,911,291 436,529 7,347,820
Transportation Equipment 2,250,422 234,188 (178,310) 2,306,300
Communication Equipment 644,017 391,829 1,035,846
Office Equipment 10,223,319 1,672,144 (808,646) 11,086,817
Total Accumulated Depreciation 186,214,135 15,214,704 (3,020,173) 198,408,666
Total Capital Assets Being Depreciated, Net 442,881,020 7,099,999 (306,667) 449,674,352
Total Capital Assets, Net 474,426,965$ 26,253,497$ (19,850,373)$ 480,830,089$
Depreciation expense for the years ended June 30, 2012 and 2011 was $15,214,704 and $13,880,206, respectively.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 22
3) CAPITAL ASSETS (Continued)
The following is a summary of changes in Capital Assets for the year ended June 30, 2011:
Beginning Balance
(As Restated) Additions Deletions Ending Balance
Capital Assets, Not Depreciated
Land 13,620,963$ 15,700$ -$ 13,636,663$
Construction in Progress 35,179,104 18,141,296 (35,411,118) 17,909,282
Total Capital Assets Not Depreciated 48,800,067 18,156,996 (35,411,118) 31,545,945
Capital Assets, Being Depreciated
Infrastructure 544,533,985 33,440,219 (47,686) 577,926,518
Field Equipment 9,529,558 489,019 (170,768) 9,847,809
Buildings 18,451,132 - - 18,451,132
Transportation Equipment 3,278,692 347,077 (448,082) 3,177,687
Communication Equipment 1,335,820 1,023,223 - 2,359,043
Office Equipment 18,430,388 1,123,775 (2,221,197) 17,332,966
Total Capital Assets Being Depreciated 595,559,575 36,423,313 (2,887,733) 629,095,155
Less Accumulated Depreciation:
Infrastructure 146,106,000 11,507,589 (47,686) 157,565,903
Field Equipment 8,685,579 104,372 (170,768) 8,619,183
Buildings 6,475,141 436,150 - 6,911,291
Transportation Equipment 2,477,854 203,715 (431,147) 2,250,422
Communication Equipment 468,548 175,469 - 644,017
Office Equipment 10,982,620 1,452,911 (2,212,212) 10,223,319
Total Accumulated Depreciation 175,195,742 13,880,206 (2,861,813) 186,214,135
Total Capital Assets Being Depreciated, Net 420,363,833 22,543,107 (25,920) 442,881,020
Total Capital Assets, Net 469,163,900$ 40,700,103$ (35,437,038)$ 474,426,965$
Depreciation expense for the years ended June 30, 2011 and 2010 was $13,880,206 and $13,297,497, respectively.
4) OTHER NONCURRENT ASSETS
Deferred bond issue costs totaled $1,532,857 and $1,618,069, net of accumulated amortization of $466,081 and $380,418 as
of June 30, 2012 and 2011, respectively. The costs are amortized on the straight-line method based on the estimated term of
the related bond debt. Amortization expense of $85,212 and $85,212 for the years ended June 30, 2012 and 2011 is included
in miscellaneous non-operating expenses.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 23
5) LONG-TERM DEBT
Long-term liabilities for the year ended June 30, 2012 are as follows:
Beginning
Balance Additions Deletions
Ending
Balance
Due Within
One Year
General Obligation Bonds:
Improvement District No. 27 - 2009 $ 7,260,000 $ - $ 505,000 $ 6,755,000 $ 520,000
Unamortized Bond Premium 182,626 - 16,355 166,271 -
Deferred Amount on Refunding (639,049) - (56,805) (582,244) -
Net General Obligation Bonds 6,803,577 - 464,550 6,339,027 520,000
Certificates of Participation:
1996 Certificates of Participation 11,300,000 - 400,000 10,900,000 500,000
2004 Certificates of Participation 9,245,000 - 565,000 8,680,000 580,000
2007 Certificates of Participation 39,550,000 - 885,000 38,665,000 920,000
1996 COPS Unamortized Discount (11,923) - (745) (11,178) -
2007 COPS Unamortized Discount (232,131) - (9,044) (223,087) -
2004 COPS Unamortized Premium 14,170 - 1,165 13,005 -
2004 COPS Deferred Amount on
Refunding (149,585) - (12,294) (137,291) -
Net Certificates of Participation 59,715,531 - 1,829,082 57,886,449 2,000,000
Revenue Bonds:
2010 Water Revenue Bonds Series A 13,840,000 785,000 13,055,000 800,000
2010 Water Revenue Bonds Series B 36,355,000 - 36,355,000 -
2010 Series A Unamortized Premium 985,822 74,401 911,421 -
Net Revenue Bonds 51,180,822 - 859,401 50,321,421 800,000
Notes Payable:
State Water Resource Control Board 6,010 - 6,010 - -
Total Long-Term Liabilities $117,705,940 $ - $ 3,159,043 $114,546,897 $3,320,000
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 24
5) LONG-TERM DEBT – Continued
General Obligation Bonds
In June 1998, the District issued $11,835,000 of General Obligation Refunding Bonds. The proceeds of this issue, together
with other lawfully available monies, were to be used to establish an irrevocable escrow to advance refund and defease in
their entirety the District’s previous outstanding General Obligation Bond issue. In November 2009, The District issued
$7,780,000 of General Obligation Refunding Bonds to refund the 1998 issue. The proceeds from the bond issue were
$7,989,884, which included an original issue premium of $209,884. An amount of $7,824,647, which consisted of unpaid
principal and accrued interest, was deposited into an escrow fund. Pursuant to an optional redemption clause in the 1998
bonds, the District was able to redeem the 1998 bonds, without premium at any time after September 1, 2009. On December
15, 2009 the 1998 bonds were refunded.
The savings between the cash flow required to service the old debt and the cash flow required to service the new debt is
$1,099,110 and represents an economic gain on refunding of $640,925.
These bonds are general obligations of Improvement District No. 27 (ID 27) of the District. The Board of Directors has the
power and is obligated to levy annual ad valorem taxes without limitation, as to rate or amount for payment of the bonds and
the interest upon all property which is within ID 27 and subject to taxation. The General Obligation Bonds are payable from
District-wide tax revenues. The Board may utilize other sources for servicing the bond debt and interest.
The refunding of the 1998 bonds resulted in a deferred amount of $728,989 which is being amortized over the remaining life
of the refunded debt. Amortization for the year ended June 30, 2012 was $56,805 and is included in miscellaneous non-
operating expenses. As of June 30, 2012, the unamortized deferred amount of refunding is $582,244.
The 2009 General Obligation Bonds have interest rates from 3.00% to 4.00% with maturities through Fiscal Year 2023.
Future debt service requirements for the bonds are as follows:
For the Year Ended
June 30, Principal Interest Total
2013 $ 520,000 $ 236,262 756,262$
2014 535,000 220,437 755,437
2015 550,000 204,162 754,162
2016 570,000 187,362 757,362
2017 585,000 169,306 754,306
2018-2022 3,275,000 481,300 3,756,300
2023 720,000 14,403 734,403
$ 6,755,000 $ 1,513,232 $ 8,268,232
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 25
5) LONG-TERM DEBT - Continued
Certificates of Participation (COPS)
In June 1996, COPS with face value of $15,400,000 were sold by the Otay Service Corporation to finance the cost of design,
acquisition, and construction of certain capital improvements. An installment purchase agreement between the District, as
Buyer, and the Corporation, as Seller, was executed for the scheduled payment of principal and interest associated with the
COPS. The installment payments are to be paid from taxes and “net revenues,” as described in the installment agreement.
The certificates bear interest at a variable weekly rate not to exceed 12%. The variable interest rate is tied to the 30-day
LIBOR index and the Securities Industry and Financial Markets Association (SIFMA) index. An irrevocable letter of credit
facility is necessary to market the District’s variable rate debt. This facility is with Union Bank and covers the outstanding
principal and interest. The facility expires on June 29, 2014.The interest rate at June 30, 2012 was 0.15%. The installment
payments are to be paid annually at $350,000 to $900,000 from September 1, 1996 through September 1, 2026.
In July 2004, Refunding Certificates of Participation (COPS) with a face value of $12,270,000 were sold by the Otay Service
Corporation to advance refund $11,680,000 of outstanding 1993 COPS. An installment agreement between the District, as
Buyer, and the Corporation, as Seller, was executed for the scheduled payment of principal and interest associated with the
COPS. The installment payments are to be paid from taxes and “net revenues,” as described in the installment agreement.
The certificates are due in annual installments of $445,000 to $895,000 from September 1, 2005 through September 1, 2023;
bearing interest at 3% to 4.625%.
In March 2007, Revenue Certificates of Participation (COPS) with face value of $42,000,000 were sold by the Otay Service
Corporation to improve the District’s water storage system and distribution facilities. An installment purchase agreement
between the District, as a Buyer, and the Corporation, as Seller, was executed for the scheduled payment of principal and
interest associated with the COPS. The installment payments are to be paid from taxes and “net revenues,” as described in the
installment agreement. The certificates are due in annual installments of $785,000 to $2,445,000 from September 1, 2007
through September 1, 2036; bearing interest at 3.7% to 4.47%.
There is no aggregate reserve requirement for the COPS. Future debt service requirements for the certificates are as follows:
For the Year
Ended June 30,Principal Interest* Principal Interest Principal Interest
2013 $ 500,000 $ 15,725 $ 580,000 $ 349,566 $ 920,000 $ 1,589,020
2014 500,000 14,975 600,000 328,906 955,000 1,553,864
2015 500,000 14,225 625,000 306,388 995,000 1,517,301
2016 600,000 13,350 650,000 281,994 1,035,000 1,479,239
2017 600,000 12,450 675,000 255,819 1,075,000 1,439,408
2018-2022 3,500,000 47,225 3,795,000 828,394 6,020,000 6,529,600
2023-2027 4,700,000 16,325 1,755,000 81,441 7,360,000 5,181,071
2028-2032 - - - - 9,070,000 3,453,857
2033-2037 - - - - 11,235,000 1,271,265
$10,900,000 $ 134,275 $ 8,680,000 $ 2,432,508 $38,665,000 $ 24,014,625
1996 COPS 2004 COPS 2007 COPS
* Variable Rate - Interest reflected at June 30, 2012 at a rate of 0.15%.
The three COP debt issues contain various covenants and restrictions, principally that the District fix, prescribe, revise and
collect rates, fees and charges for the Water System which will be at least sufficient to yield, during each fiscal year, taxes
and net revenues equal to one hundred twenty-five percent (125%) of the debt service for such fiscal year. The District
was in compliance with these rate covenants for the fiscal year ended June 30, 2012.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 26
5) LONG-TERM DEBT - Continued
Water Revenue Bonds
In April 2010, Water Revenue Bonds with a face value of $50,195,000 were sold by the Otay Water District Financing
Authority to provide funds for the construction of water storage and transmission facilities. The bond issue consisted of two
series; Water Revenue Bonds, Series 2010A (Non-AMT Tax Exempt) with a face value of $13,840,000 plus a $1,078,824
original issue premium, and Water Revenue Bonds Series 2010B (Taxable Build America Bonds) with a face value of
$36,255,000. The Series 2010A bonds are due in annual installments of $785,000 to $1,295,000 from September 1, 2012
through September 1, 2025; bearing interest at 2% to 5.25%. The Series 2010B bonds are due in annual installments of
$1,365,000 to $3,505,000 from September 1, 2026 through September 1, 2040; bearing interest at 6.377% to 6.577%. Interest
on both Series is payable on September 1, 2010 and semiannually thereafter on March 1st and September 1st of each year until
maturity or earlier redemption. The installment payments are to be made from Taxes and Net Revenues of the Water System
as described in the installment purchase agreement, on parity with the payments required to be made by the District for the
1996, 2004 and 2007 Certificates of Participation described above.
The proceeds of the bonds will be used to fund the project described above as well as to fund reserve funds of $1,030,688
(Series 2010A) and $2,707,418 (Series 2010B). $542,666 was used to fund various costs of issuance.
The original issue premium is being amortized over the 14 year life of the Series 2010A bonds. Amortization for the year
ending June 30, 2012 was $74,402 and is included in interest expense. The unamortized premium at June 30, 2012 is
$911,421.
The 2011 Water Revenue Bonds contains various covenants and restrictions, principally that the District fix, prescribe,
revise and collect rates, fees and charges for the Water System which will be at least sufficient to yield, during each fiscal
year, taxes and net revenues equal to one hundred twenty-five percent (125%) of the debt service for such fiscal year. The
District was in compliance with these rate covenants for the fiscal year ended June 30, 2012.
The total amount outstanding at June 30, 2012 and aggregate maturities of the revenue bonds for the fiscal years subsequent to
June 30, 2012, are as follows:
For the Year
Ended June 30,Principal Interest Principal Interest
2013 $ 800,000 $ 553,838 $ - $ 2,371,868
2014 820,000 533,538 - 2,371,868
2015 845,000 508,563 - 2,371,868
2016 870,000 478,488 - 2,371,868
2017 900,000 443,088 - 2,371,868
2018-2022 5,115,000 1,584,988 - 11,859,342
2023-2027 3,705,000 291,969 2,815,000 11,682,539
2028-2032 - - 8,760,000 9,631,794
2033-2037 - - 12,005,000 6,275,280
2038-2042 - - 12,775,000 1,747,344
$ 13,055,000 $ 4,394,470 $ 36,355,000 $ 53,055,639
2010 Water Revenue Bond Series A 2010 Water Revenue Bond Series B
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 27
5) LONG-TERM DEBT - Continued
Note Payable
In December 1990, the District entered into a 3.5% note payable to the State Water Resources Control Board. This note is
unsecured and payable in annual installments of $366,325 including principal and interest from 1992 through 2012. The note
was paid off during the year.
6) NET ASSETS
Designated Net Assets
In addition to the restricted net assets, a portion of the unrestricted net assets have been designated by the Board of Directors
for the following purposes as of June 30, 2012 and 2011:
2012 2011
Designated Betterment $ - $ 13,221,595
Expansion Reserve 17,943,825 13,216,223
Replacement Reserve 15,911,850 30,156,082
Designated New Supply Fund 1,593,571 -
Employee Benefits Reserve 1,660,369 4,526,516
Total $ 37,109,615 $ 61,120,416
7) DEFINED BENEFIT PENSION PLAN
Plan Description
The District’s defined plan, (the “Plan”), provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries. The Plan is part of the Public Agency portion of the California Public
Employees’ Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a
common investment and administrative agent for participating public employers within the State of California. A menu of
benefit provisions as well as other requirements is established by State statute within the Public Employees’ Retirement Law.
The Plan selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits
through District resolution. CalPERS issues a separate Comprehensive Annual Financial Report. Copies of the CalPERS’
annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 28
7) DEFINED BENEFIT PENSION PLAN - Continued
Funding Policy
Active members in the Plan are required to contribute 8% of their annual covered salary. By agreement between the employee
union and the District, the represented employees paid 5.25% of covered salaries beginning August 15, 2011. Also by
agreement, the unrepresented employees began paying 4.5% of covered salaries as of July 15, 2011. Prior to these
agreements all employees paid 1% of covered salaries. In these same agreements, all employees, after June 30, 2012 will pay
an additional 3.5% of covered salaries. The District is required to contribute the actuarially determined remaining amounts
necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the
CalPERS Board of Administration. The required employer contribution rate for the fiscal year ended June 30, 2012 was
23.428%. The contribution requirements of the Plan members are established by State statute and the employer contribution
rate is established and may be amended by the CalPERS.
Annual Pension Costs
For the fiscal year ended June 30, 2012, the District’s annual pension cost and actual contribution was $2,951,409. The
required contribution for the fiscal year ended June 30, 2012 was determined as part of the June 30, 2009 actuarial valuation.
The following is a summary of the actuarial assumptions and methods:
Valuation Date June 30, 2009
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method Level Percent of Payroll
Average Remaining Period 21 Years as of the Valuation Date
Asset Valuation Method 15 Year Smoothed Market
Actuarial Assumptions:
Investment Rate of Return 7.75% (Net of Administrative Expenses)
Projected Salary Increase 3.55% to 14.45% Depending on Age, Service, and Type of Employment
Inflation 3.00%
Payroll Growth 3.25%
Individual Salary Growth A merit scale varying by duration of employment coupled with an assumed
annual inflation component of 3.00% and an annual production growth of 0.25%.
Initial unfunded liabilities are amortized over a closed period that depends on the Plan’s date of entry into CalPERS.
Subsequent Plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that
occur in the operation of the plan are amortized over a rolling period, which results in an amortization of 6% of unamortized
gains and losses each year. If the plan’s accrued liability exceeds the actuarial value of the plan assets, then the amortization
payment of the total unfunded liability may be lower than the payment calculated over a 30-year amortization period.
THREE-YEAR TREND INFORMATION FOR PERS
Fiscal Annual Pension Percentage of Net Pension
Year Cost (APC)APC Contributed Obligation
6/30/12 $ 2,951,409 100% $ 0
6/30/11 $ 2,427,744 100% $ 0
6/30/10 $ 2,240,538 100% $ 0
Funded Status and Funding Progress
As of June 30, 2010, the most recent actuarial valuation date, the plan was 70.9% funded. The actuarial accrued liability (AAL)
for benefits was $81,306,934, and the actuarial value of assets was $57,613,987, resulting in an unfunded actuarial accrued
liability (UAAL) of $23,692,947. The covered payroll (annual payroll of active employees covered by the plan) was $12,140,989,
and the ratio of the UAAL to the covered payroll was 195.1%.
The schedule of funding progress, presented as required supplementary information following the notes to the financial
statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over
the time relative to the actuarial accrued liability for benefits.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 29
8) OTHER POST EMPLOYMENT BENEFITS
Plan Description
The District’s defined benefit postemployment healthcare plan, (DPHP), provides medical benefits to eligible retired District
employees and beneficiaries. DPHP is part of the Public Agency portion of the California Employers’ Retiree Benefit Trust
Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’ Retirement System
(CalPERS), which acts as a common investment and administrative agent for participating public employers within the State
of California. CalPERS issues a separate Comprehensive Annual Financial Report. Copies of the CalPERS’ annual financial
report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.
Prior to the plan agreements signed in 2011 the eligibility in the plan was broken into 3 tiers, employees hired before
January 1, 1981, employees hired between January 1,1981 and July 1, 1993 and employees hired on or after July 1, 1993.
Board Members elected before January 1, 1995 are also eligible for the plan. Eligibility also includes age and years of
service requirements which vary by tier. Benefits include 100% medical and dental premiums for life for the retiree for
Tier I, II or III employees, and up to 100% spouse premium for life and dependent premium up to age 19 depending on the
tier. The plan also includes survivor benefits to Medicare.
Subsequent to the agreements in 2011 the represented employees are eligible for the plan after 20 years of consecutive
service while unrepresented employees are eligible after 15 years. Survivor benefits are covered beyond Medicare.
Funding Policy
The contribution requirements of plan members and the District are established and may be amended by the Board of
Directors. DPHP members receiving benefits contribute based on their selected plan options of EPO, HMO or Gold and if
they are located outside the State of California. Contributions by plan members range from $0 to $146 per month for
coverage to age 65, and from $0 to $147 per month, respectively, thereafter.
Annual OPEB Cost and Net OPEB Obligation/Asset
The District’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC),
an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level
of funding that, if paid on an ongoing basis is projected to cover the normal annual cost. Any unfunded actuarial liability
(or funding excess) is amortized over a period not to exceed thirty years. The current ARC rate is 10.5% of the annual
covered payroll.
The following table shows the components of the District’s annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the District’s net OPEB obligation/asset:
2012 2011
Annual Required Contribution (ARC) 1,304,000$ 289,000$
Interest on net OPEB asset (537,685) (525,712)
Adjustment to Annual Required Contribution
(ARC) 473,000 646,000
Annual OPEB cost (expense) 1,239,315 409,288
Contributions made 2,144,871 1,042,249
Increase in net OPEB asset (905,556) (632,961)
Net OPEB asset - beginning of year (7,416,346) (6,783,385)
Net OPEB asset - end of year (8,321,902)$ (7,416,346)$
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 30
8) OTHER POST EMPLOYMENT BENEFITS - Continued
For 2012, in addition to the ARC, the District contributed cash benefit payments outside the trust (healthcare premium
payments for retirees to Special District Risk Management Authority (SDRMA) ) in the amount of $749,871, which is
included in the $2,144,871 of contributions shown above. For 2011 this amount was $654,250, which is included in the
$1,042,249 of contributions shown above.
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation/asset for the fiscal years 2012, 2011 and 2010 were as follows:
Fiscal Annual OPEB Percentage of Net OPEB
Year Cost (AOC) OPEB Cost Contributed Asset
6/30/2012 1,239,315$ 173%(8,321,902)$
6/30/2011 $ 409,288 255% $ (7,416,346)
6/30/2010 $ 455,122 227% $ (6,783,385)
THREE-YEAR TREND INFORMATION FOR CERBT
Funded Status and Funding Progress
The funded status of the plan as of June 30, 2011, the most recent actuarial valuation date, was as follows:
Actuarial Accrued Liability (AAL) $ 18,289,000
Actuarial Value of Plan Assets $ 7,893,000
Unfunded Actuarial Accrued Liability (UAAL) $ 10,396,000
Funded Ratio (Actuarial Value of Plan Assets/AAL) 43.16%
Covered Payroll (Active Plan Members) $ 12,429,000
UAAL as a Percentage of Covered Payroll 83.64%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality,
and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the
benefits.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 31
8) OTHER POST EMPLOYMENT BENEFITS - Continued
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial assets, consistent with the long-term perspective of the calculations.
The following is a summary of the actuarial assumptions and methods:
Valuation Date June 30, 2011
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percent of Payroll
Remaining Amortization Period 26 Year fixed (closed) period as of the Valuation Date
Asset Valuation Method 15 Year Smoothed Market
Actuarial Assumptions:
Investment Rate of Return 7.25% (Net of Administrative Expenses)
Projected Salary Increase 3.25%
Inflation 3.00%
Individual Salary Growth CalPERS 1997-2007 Experience Study
Healthcare Cost Trend Rate Medical: 10% per annum graded down in approximately
one-half percent increments to an ultimate rate of 5%.
Dental: 4% per annum.
9) WATER CONSERVATION AUTHORITY
In 1999 the District formed the Water Conservation Authority (the “Authority”), a Joint Powers Authority, with other local
entities to construct, maintain and operate a xeriscape demonstration garden in the furtherance of water conservation. The
authority is a non-profit public charity organization and is exempt from income taxes. During the years ended June 30, 2012
and 2011, the District contributed $121,617 and $120,648, respectively, for the development, construction and operation costs
of the xeriscape demonstration garden.
A summary of the Authority’s June 30, 2011 audited financial statement is as follows (latest report available):
Assets $ 1,815,887
Liabilities 85
Net Assets $ 1,815,802
Revenues, Gains and Other Support $ 370,012
Expenses (597,808)
Transfer of Assets (367,946)
Changes in Net Assets $ (595,742)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 32
10) COMMITMENTS AND CONTINGENCIES
Construction Commitments
The District had committed to capital projects under construction with an estimated cost to complete of $3,151,775 at June 30,
2012.
Litigation
Certain claims, suits and complaints arising in the ordinary course of operation have been filed or are pending against the
District. In the opinion of the staff and counsel, all such matters are adequately covered by insurance, or if not so covered, are
without merit or are of such kind, or involved such amounts, as would not have a significant effect on the financial position or
results of operations of the District if disposed of unfavorably.
Refundable Terminal Storage Fees
The District has entered into an agreement with several developers whereby the developers prepaid the terminal storage fee in
order to provide the District with the funds necessary to build additional storage capacity. The agreement further allows the
developers to relinquish all or a portion of such water storage capacity. If the District grants to another property owner the
relinquished storage capacity, the District shall refund to the applicable developer $746 per equivalent dwelling unit (EDU).
There were 17,867 EDUs that were subject to this agreement. At June 30, 2011, 1,751 EDUs had been relinquished and
refunded, 14,663 EDUs had been connected, and 1,453 EDUs have neither been relinquished nor connected. At June 30,
2012, 1,751 EDUs had been relinquished and refunded, 15,026 EDUs had been connected, and 1,090 EDUs have neither
been relinquished nor connected.
Developer Agreements
The District has entered into various Developer Agreements with developers towards the expansion of District facilities. The
developers agree to make certain improvements and after the completion of the projects the District agrees to reimburse such
improvements with a maximum reimbursement amount for each developer. Contractually, the District does not incur a
liability for the work until the work is accepted by the District. As of June 30, 2012, none of the outstanding developer
agreements had been accepted, however it is anticipated that the District will be liable for an amount not to exceed $56,000 at
the point of acceptance. Accordingly, the District has accrued a liability as of year end.
11) RISK MANAGEMENT
The District is exposed to various risks of loss related to torts, theft, damage and destruction of assets, errors and
omissions, and natural disasters. Beginning in July 2003, the District began participation in an insurance pool through the
Special District Risk Management Authority (SDRMA). SDRMA is a not-for-profit public agency formed under
California Government Code Sections 6500 et. Seq. SDRMA is governed by a board composed of members from
participating agencies. The mission of SDRMA is to provide renewable, efficiently priced risk financing and risk
management services through a financially sound pool. The District pays an annual premium for commercial insurance
covering general liability, excess liability, property, automobile, public employee dishonesty, and various other claims.
Accordingly, the District retains no risk of loss. Separate financial statements of SDRMA may be obtained at Special
District Risk Management Authority, 1112 “I” Street, Suite 300, Sacramento, CA 95814.
General and Auto Liability, Public Officials’ and Employees’ Errors and Omissions and Employment Practices Liability:
Total risk financing limits of $10 Million combined single limit at $10 Million per occurrence, subject to the following
deductibles:
$500 per occurrence for third party general liability property damage;
$1,000 per occurrence for third party auto liability property damage;
50% co-insurance of cost expended by SDRMA, in excess of $10,000 up to $50,000, per occurrence, for employment
related claims. However, 100% of the obligation will be waived if certain criteria are met, as provided in the
Memorandum of Coverage.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 33
11) RISK MANAGEMENT (Continued)
Employee Dishonesty Coverage: Total of $400,000 per loss includes Public Employee Dishonesty, Forgery or Alteration and
Theft, Disappearance and Destruction coverage’s effective July 1, 2011.
Property Loss: Replacement cost, for property on file, if replaced, and if not replaced within two years after the loss, paid on
an actual cash value basis, to a combined total of $1 Billion per occurrence, subject to a $2,000 deductible per occurrence,
effective July 1, 2011.
Boiler and Machinery: Replacement cost up to $100 Million per occurrence, subject to a $1,000 deductible, effective July 1,
2011.
Public Officials Personal Liability: $500,000 each occurrence, with an annual aggregate of $500,000 per each
elected/appointed official to which this coverage applies, subject to the terms, conditions and exclusions as provided in the
Memorandum of Coverage’s, deductible of $500 per claim, effective July 1, 2011.
Comprehensive and Collision: on selected vehicles, with deductibles of $250/$500 or $500/$1,000, as elected; ACV limits;
fully self-funded by SDRMA; Policy No. LCA - SDRMA - 201111, effective July 1, 2011.
Workers’ Compensation Coverage and Employer’s Liability: Statutory limits per occurrence for Workers’ Compensation and
$5.0 Million for Employer’s Liability Coverage, subject to the terms, conditions and exclusions as provided in the
Memorandum of Coverage, effective July 1, 2011.
Health Insurance
Beginning in January 2008, the District began providing health insurance through SDRMA covering all of its employees,
retirees, and other dependents. SDRMA is a self-funded, pooled medical program, administered in conjunction with the
California State Association of Counties (CSAC).
Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments
that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability
coverage from coverage in the prior year.
12) INTEREST EXPENSE
Interest expense for the years ended June 30, 2012 and 2011, is as follows:
2012 2011
Amount Expensed $ 3,899,927 $ 3,877,531
Amount Capitalized as a Cost of
Construction Projects 1,185,443 1,215,476
Total Interest $ 5,085,370 $ 5,093,007
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 34
13) SEGMENT INFORMATION
During the June 30, 2011 fiscal year, the District issued Revenue Bonds to finance certain capital improvements. While water
and wastewater services are accounted for jointly in these financial statements, the investors in the Revenue Bonds rely solely
on the revenues of the water services for repayment.
Summary financial information for the water services is presented for June 30, 2012.
Water Services
ASSETS
Current Assets 102,545,752$
Capital Assets 464,947,634
Other Assets 9,854,759
Total Assets 577,348,145
LIABILITIES
Current Liabilities 22,900,886
Long-Term Liabilities 111,941,023
Total Liabilities 134,841,909
NET ASSETS
Invested in capital assets, net of related debt 365,842,560
Restricted for debt service 4,715,904
Unrestricted 71,947,772
Total Net Assets 442,506,236$
Condensed Statement of Net Assets
June 30, 2012
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 35
13) SEGMENT INFORMATION - Continued
Water Services
Operating Revenues
Water sales 63,803,099$
Connection and other fees 1,993,555
Total Operating Revenues 65,796,654
Operating Expenses
Cost of Water Sales 46,106,403
Administrative and General 17,901,008
Depreciation 14,367,787
Total Operating Expenses 78,375,198
Operating Income (Loss) (12,578,544)
Nonoperating Revenues (Expenses)
Investment income 416,045
Taxes and assessments 3,487,954
Availability charges 646,278
Gain (loss) on sale of capital assets (278,540)
Miscellaneous revenues 4,788,711
Donations (121,617)
Interest expense (3,899,927)
Miscellaneous expenses (1,755,782)
Total Nonoperating Revenues (Expenses) 3,283,122
Income (Loss) Before Capital Contributions (9,295,422)
Capital Contributions 6,942,986
Changes in Net Assets (2,352,436)
Total Net Assets, Beginning 444,858,672
Total Net Assets, Ending 442,506,236$
For The Year Ended June 30, 2012
and Changes in Net Assets
Condensed Statement of Revenues, Expenses
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 36
13) SEGMENT INFORMATION - Continued
Water Services
Net Cash Provided by Operating Activities 1,295,193$
Net Cash Provided by Noncapital and Related
Financing Activities 3,944,795
Net Cash Provided (Used) by Capital and Related
Financing Activities (20,519,687)
Net Cash Used by Investing Activities (3,389,679)
Net Increase (Decrease) in Cash and Cash
Equivalents (18,669,378)
Cash and cash equivalents, Beginning 53,802,559
Cash and cash equivalents, Ending 35,133,181$
Condensed Statement of Cash Flows
For The Year Ended June 30, 2012
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2012 AND 2011
REQUIRED SUPPLEMENTARY INFORMATION
REQUIRED SUPPLEMENTARY INFORMATION
REQUIRED SUPPLEMENTARY INFORMATION
YEARS ENDED JUNE 30, 2012 AND 2011
See independent auditors’ report. 38
Schedule of Funding Progress for PERS
Actuarial
Accrued UAAL as a
Actuarial Actuarial Liability Unfunded Percentage of
Valuation Value of (AAL) Entry AAL Funded Covered Covered
Date Assets Age (UAAL)Ratio Payroll Payroll
(A) (B) (B - A) (A/B) (C) [(B-A)/C]
6/30/10
Miscellaneous $ 57,613,987 $ 81,306,934 $ 23,692,947 70.9%$ 12,140,989 195.1%
6/30/09
Miscellaneous $ 53,736,612 $ 75,300,790 $ 21,564,178 71.4%$ 11,880,481 181.5%
6/30/08
Miscellaneous $ 49,712,016 $ 65,542,736 $ 15,830,720 75.8%$ 11,174,528 141.7%
Schedule of Funding Progress for DPHP
Actuarial
Accrued UAAL as a
Actuarial Actuarial Liability Unfunded Percentage of
Valuation Value of (AAL) Entry AAL Funded Covered Covered
Date Assets Age (UAAL)Ratio Payroll Payroll
(A) (B) (B - A) (A/B) (C) [(B-A)/C]
6/30/11
Miscellaneous $ 7,893,000 $ 18,289,000 $ 10,396,000 43.16%$ 12,429,000 83.64%
6/30/09
Miscellaneous $ 6,273,000 $ 10,070,000 $ 3,797,000 62.29%$ 11,878,000 31.97%
6/30/08
Miscellaneous $ 5,649,000 $ 11,581,000 $ 5,932,000 48.78%$ 11,307,000 52.50%
REQUIRED SUPPLEMENTARY INFORMATION
YEARS ENDED JUNE 30, 2012 AND 2011
2965 Roosevelt Street, Carlsbad, CA 92008-2389 • Tel: 760.729.2343 • Fax: 760.729.2234
Offices located in Orange and San Diego Counties
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Board of Directors and Management
of Otay Water District
Spring Valley, California
We have audited the financial statements of the Otay Water District as of and for the year ended June 30, 2012, and have
issued our report thereon dated October 15, 2012. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
Management of Otay Water District is responsible for establishing and maintaining effective internal control over financial
reporting. In planning and performing our audit, we considered the Otay Water District’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Otay Water District’s internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Otay Water
District’s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over financial reporting that might be
deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined previously.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Otay Water District’s financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, Board of Directors, others within the entity, and
federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.
October 15, 2012
Carlsbad, CA
1
- 1 -
2965 Roosevelt Street, Carlsbad, CA 92008-2389 • Tel: 760.729.2343 • Fax: 760.729.2234
Offices located in Orange and San Diego Counties
Board of Directors
Audit Committee
Otay Water District
Spring Valley, California
We have audited the financial statements of the Otay Water District for the year ended June 30, 2012.
Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards (and, if applicable, Government Auditing Standards), as well as
certain information related to the planned scope and timing of our audit. We have communicated such
information in our letter dated January 30, 2012. Professional standards also require that we
communicate to you the following information related to our audit.
Significant Audit Findings:
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Otay Water District are described in Note 1 to the financial statements.
No new accounting policies were adopted and the application of existing policies was not changed
during the year ended June 30, 2012. We noted no transactions entered into by the Otay Water District
during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected. The most sensitive estimates affecting the financial
statements were:
a. Management’s estimate of the fair market value of investments which is based on market
values by outside sources.
b. The estimated useful lives for capital assets and depreciation expense which are based on
industry standards.
- 2 -
Significant Audit Findings (Continued):
Qualitative Aspects of Accounting Practices (Continued)
c. The annual required contribution for the District’s Other Post-Employment Benefits was
prepared by an outside consultant.
d. The funded status and funding progress of the public defined benefit plan with CalPERS
which are based on actuarial valuations.
We evaluated the key factors and assumptions used to develop these estimates in determining that they
are reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. The most sensitive disclosures affecting the financial statement were
reported in Note 7 regarding the defined benefit pension plan and in Note 8 regarding the District’s
other post-employment benefit plan. The financial statement disclosures are neutral, consistent, and
clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing
our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during
the audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. The following misstatements
detected as a result of audit procedures were corrected by management:
a. During the course of the audit it was determined that the District had decreased the balance
in the Construction in Process account by $442,015 by removing the balance directly from
an equity account. The District had determined that capital expenditures from a prior year
project (in Construction in Process at the start of the year) were no longer capitalizable.
Rather than expensing the amount in the current year the District had booked the change
directly to equity. An audit adjustment was made to record the $442,015 as a non-operating
expense of the current year.
b. During the course of the audit, it was determined that $108,655 of project costs which the
District had capitalized as infrastructure should have been expensed. An audit adjustment
was made to remove the capital asset and to record the $108,655 as a non-operating
expense of the current year. To match funding revenues to the non-operating expenses
adjusted above, reclassifications were made between capital contributions and non-
operating revenue in the amount of $546,326.
- 3 -
Significant Audit Findings (Continued):
Corrected and Uncorrected Misstatements (Continued)
c. During the course of the audit it was determined that $463,306 of costs which had been
expensed by the District should have been capitalized. An audit adjustment was made to
decrease the non-operating expense and increase capital assets. To match funding sources
to the capital assets, $463,306 was reclassified from non-operating revenue to contributed
capital.
Disagreements with Management
For the purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors’ report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated October 15, 2012.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation
involves application of an accounting principle to the governmental unit’s financial statements or a
determination of the type of auditor’s opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with other
accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the governmental unit’s auditors.
However, these discussions occurred in the normal course of our professional relationship and our
responses were not a condition to our retention.
****
This information is intended solely for the use of the Board of Directors, Audit Committee and
management of the Otay Water District and is not intended to be, and should not be, used by anyone
other than these specified parties.
October 15, 2012
Carlsbad, CA
2965 Roosevelt Street, Carlsbad, CA 92008-2389 • Tel: 760.729.2343 • Fax: 760.729.2234
Offices located in Orange and San Diego Counties
INDEPENDENT ACCOUNTANTS’ REPORT
ON APPLYING AGREED-UPON PROCEDURES
Mr. Joseph Beachem
Chief Financial Officer
Otay Water District
Spring Valley, CA
We have performed the procedures enumerated below, which were agreed to by the Otay Water District
(the “District”) solely to assist the District’s senior management in evaluating the investments of the
District for the fiscal year ended June 30, 2012. The District’s management is responsible for the
evaluation of the investments of the District. This agreed-upon procedures engagement was conducted in
accordance with attestation standards established by the American Institute of Certified Public
Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in
the report. Consequently, we make no representation regarding the sufficiency of the procedures
described below either for the purpose for which this report has been requested or for any other purpose.
Our procedures and findings are as follows:
1. Obtain a copy of the District’s investment policy and determine that it is in effect for the fiscal
year ended June 30, 2012.
a. Findings: At June 30, 2012, the current investment policy (Policy #27) is dated August
10, 2011. This policy was reviewed and approved for the 2011/2012 fiscal year as
Action Item #12 at the August 10, 2011 Regular Board Meeting. Therefore the
investment policy is in effect for the time period under review.
2. Select 4 investments held at year end and determine if they are allowable investments under the
District’s Investment Policy.
a. Findings: Four investments chosen were FHLB – Maturity 12/19/2013, FHLMC –
Maturity 6/4/2014, FNMA – Maturity 9/26/2014, and FFCB – Maturity 2/27/2015
CUSIP 3133EAEG9. All four investments are allowable and within maturity limits as
stated in the District’s Investment Policy at June 30, 2012.
1
Mr. Joseph Beachem, CFO
Otay Water District Page 2
3. For the four investments selected in #2 above, determine if they are held by a third party
custodian designated by the District.
a. Findings: Per discussion with District management and evidenced by Union Bank of
California confirmation, Union Bank does not act as a broker dealer for the District but
acts as a custodial agent of the District holding the investment in a trust department. The
four investments examined are held by a third party custodian designated by the District
in compliance with District Policy.
4. Confirm the par or original investment amount and market value for the four investments selected
above with the custodian or issuer of the investments.
a. Findings: Investment values confirmed with Union Bank of California at June 30, 2012
with no exceptions.
5. Select two investment earnings transactions that took place during the year and recompute the
earnings to determine if the proper amount was received.
a. Findings: Investment earnings recalculated with no exceptions for two transactions
selected.
6. Trace amounts received for transactions selected at #5 above into the District’s bank accounts.
a. Transactions traced into District’s Union Bank of California Money Market account with
no exceptions for the two transactions selected.
7. Select five investment transactions (buy, sell, trade or maturity) occurring during the year under
review and determine that the transactions are permissible under the District’s investment policy.
a. Findings: Reviewed five investment transactions. All transactions were permissible
under the District’s Investment Policy.
8. Review the supporting documents for the five investments selected at #7 above to determine if
the transactions were appropriately recorded in the District’s general ledger.
a. Findings: Five investments selected at #7 above were appropriately recorded in the
District’s General Ledger without exception.
We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of
an opinion on the investments of the District for the fiscal year ending June 30, 2012. Accordingly, we
do not express such an opinion. Had we performed additional procedures, other matters might have come
to our attention that would have been reported to you.
This report is limited solely for the information and use of the Board and senior management of the Otay
Water District and is not intended to be and should not be used by anyone other than those specified
parties.
October 15, 2012
Carlsbad, California
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: November 7, 2012
SUBMITTED BY: Mark Watton,
General Manager
W.O./G.F. NO: DIV. NO.
SUBJECT: Board of Directors 2013 Calendar of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting
calendar for 2013 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2013 Board of Director’s meeting calendars
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.
General Manager
Attachments: Calendar of Meetings for 2013
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 11-7-12.doc
AGENDA ITEM 8a
Page 1 of 1
Board of Directors, Workshops
and Committee Meetings
2013
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 2, 2013
February 6, 2013
March 6, 2013
April 3, 2013
May 1, 2013
June 5, 2013
July 3, 2013
August 7, 2013
September 4, 2013
October 2, 2013
November 6, 2013
December 4, 2013
January 16, 2013
February 20, 2013
March 20, 2013
April 17, 2013
May 15, 2013
June 19, 2013
July 17, 2013
August 21, 2013
September 18, 2013
October 16, 2013
November 20, 2013
SPECIAL BOARD MEETINGS:
BOARD WORKSHOPS:
Budget Workshops:
Board Workshop:
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar Attach A 11-7-12.doc
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: November 7, 2012
SUBMITTED BY:
Jose Martinez
Utility Services Manager
Pedro Porras
Chief Water Operations
PROJECT: DIV. NO. 4
APPROVED BY:
German Alvarez
Assistant General Manager
SUBJECT: Informational Item – October 24, 2012 Telegraph Canyon Road
Water Main Break and Emergency Repair
GENERAL MANAGER’S RECOMMENDATION:
This is an informational item only.
COMMITTEE ACTION:
This report has not gone to committee due to the nature of the
timeframe of the incident and the November 7 Board Meeting.
PURPOSE:
To inform the Board of the General Manager’s execution of an
emergency agreement with Cass Construction in the amount of
approximately $150,000 to repair and place back in service the
District’s 24-inch water main in the 1400 Block of Telegraph Canyon
Road in Chula Vista.
ANALYSIS:
As defined in the District Code of Ordinances Article I, Chapter 2,
Section 2, Paragraph H: An emergency is a sudden, unexpected
occurrence that poses a clear and imminent danger, requiring
immediate action to prevent and mitigate the loss or impairment of
life, health, property, or essential public services.
AGENDA ITEM 9a
At approximately 3:30 AM Wednesday morning, October 24, the District
experienced what appeared to be a break on a 24-inch asbestos cement
water main (ACP) in the westbound lane of the 1400 block of Telegraph
Canyon Road (see Exhibit A). A District crew responded and commenced
excavation for repair on the main line. We also installed a temporary
highline for three affected customers.
The 24-inch line in Telegraph Canyon Road is the primary feed source
to the southerly 624 pressure zone, and the entire 458 and 340
pressure zones. With this primary line down, staff had to construct
high lines to feed 3 meters on Telegraph Canyon Road and activate the
711/624 pressure reducing valve (PRV) located on Heritage Road and
Olympic Parkway. This PRV was then the sole feed for the
aforementioned pressure zones servicing approximately 5,026 meters.
This PRV consists of a 10-inch and a 6-inch PRV that feed a 16-inch
main. At that time it was supplying the pressure zones in a
satisfactory manner; however, if this feed was to exceed its maximum
capacity, or become disabled for any reason, there was little staff
could have done to supply the 624, 458 and 340 pressure zones except
for introducing the 711 pressure zone directly into the 624 pressure
zone without pressure regulation. This has a real potential to cause
more leaks or breaks in the 624 pressure zone and leave a
considerable amount of customers out of water.
As the main line excavation progressed, staff concluded the
excavation required to continue the repair safely was beyond the
capabilities of the District’s equipment which is now 12-feet deep.
The backfill for the existing sewer line to the south of our 24-inch
main was caving into our excavation. Therefore, a contractor equipped
to handle a repair of this type was needed. At the same time, a red
flag warning had been issued by the National Weather Service (NWS)
increasing the possibility of fires and increasing demand on our
system.
Consequently, it was imperative that we declare this situation an
emergency in order to expedite the repair and to prevent the loss or
impairment of essential public services.
If staff had proceeded without declaring it an emergency the repair
would have been delayed for over 90 days due to preparation of
contract documents, advertising, open bids, review of bid packages,
scheduling it for Board approval, execution of contract, etc., which
would have increased our risk exponentially.
Consequently, three construction contractors with a crew and
equipment available to complete the repair were contacted that
afternoon with Cass Construction being the most responsive. In
addition, District staff coordinated with the City of Chula Vista
staff, and kept them informed of the situation and addressed any of
the city’s concerns such as traffic and road damages.
Since this emergency contract has a value of less than $250,000 it is
not subject to ratification by the Board. However, the General
Manager, as required, reported the emergency to the Board no later
than 48 hours after it was declared.
The estimated cost to perform the repair by Cass Construction is
approximately $150,000 which includes the additional costs to
immediately fabricate the custom repair couplings, expedite shipping
from Arkansas, and an extended duration to complete the repair. The
District, however will be considerably reimbursed by our insurance.
FISCAL IMPACT:
N
o fiscal impact as this is an informational item.
STRATEGIC GOAL:
5.3.512 - Water Distribution System Integrity. As well as maintaining
a safe and continuous water supply.
LEGAL IMPACT:
This emergency was enacted in accordance to the District Code of
Ordinances Article I, Chapter 2, Section 2, Paragraph H.
Attachments:
Exhibit A – Location Map
Photos of Repair
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STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: November 7, 2012
SUBMITTED BY: Bob Kennedy
Senior Civil Engineer
Ron Ripperger
Engineering Manager
PROJECT: N/A DIV. NO. All
APPROVED BY:
(Chief)
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Informational Item - Proposed San Diego Gas & Electric
General Rate Case Impacts on the Otay Water District
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
receive as an informational item the Proposed San Diego Gas &
Electric (SDG&E) General Rate Case Impacts on the District for review
and receive a summary via PowerPoint presentation.
Committee Action:
Please see Attachment A.
PURPOSE:
To update the Board on the changes to electric rates proposed by
SDG&E to the California Public Utility Commission (CPUC) and the
potential impact on the District, as well as to report on the
District’s effort on sustainable energy.
AGENDA ITEM 9b
2
ANALYSIS:
Background
On October 3, 2011, SDG&E filed an amended application with the CPUC
entitled, “Amended Application of San Diego Gas & Electric Company
(U902E) for Authority to Update Marginal Costs, Cost, Allocations,
and Electric Rate Design” to become effective January 1, 2013. If
approved, this will have a direct impact on District electric rates.
Proposed Rate Increases
SDG&E is proposing several modifications including increases to the
Basic Service Fee and moving the collection of distribution demand
charges to full recovery through non-coincident demand charges.
SDG&E testimony to the CPUC state that the PA-T rate increase can be
anywhere from 93% to 179%, with Basic Service Fee increasing 100%.
The Water Authority estimated the impact on the District’s
electricity costs and is shown on the following table. Based on
proposed electric rates with this application, an estimated 37%
increase in the cost of electricity could result from these changes.
Estimate of Rate Impact to District
SDG&E
Rate
Current Bill:
Feb 2011-Jan
2012
GRC Published
2014
% Increase
from Current
Bill to 2014
2012 - 2014
Delta
A $123,224 $143,572 17% $20,348
ALTOU $222,621 $237,792 7% $15,172
PA $84,149 $83,294 -1% $(855)
PA-T1 $275,860 $432,297 57% $156,436
PA-T1CP2 $386,781 $598,535 55% $211,755
Total $1,092,634 $1,495,490 37% $402,856
Source: Greg Olsen, San Diego County Water Authority
The Water Authority also applied the proposed rates to their annual
pumping forecast. The result was an increase of $272,500, an overall
increase of 52%. The Water Authority will pass along this increase
in electric costs to member agencies as a rate increase during the
next budget cycle. Similarly, the California Center for Sustainable
Energy did an analysis of two of its member agencies’ pumping history
with a result of the increases being 34% and 48%, as shown in the
table below.
3
PA-T Cost Comparisons
Agency
Present January
2012 Costs
SDG&E Proposed
2014 Costs
Calculated Total
Change (%)
Fallbrook $348,000 $466,300 34%
Valley Center $414,124 $614,055 48%
Water Authority $521,731 $794,288 52%
Source: San Diego County Water Authority Public Participation Hearing Testimony
for Application No. 11-10-002
The variances between each utility’s impacts are due to the different
Time-Of-Use (TOU) characteristics each agency uses to move water.
SDG&E is also proposing to change October from a Winter Peak Period
demand to a Summer Peak Period demand. The rates for October will
increase considerably as a result.
District staff is working with the District’s customer service
representative at SDG&E to look at alternative rate structures to
determine if changing rate structures would be beneficial to the
District. Five meters are currently being considered to be switched
from a PA-T1 rate schedule to a PA rate schedule as a result of this
review. Since the PA rate is not proposed to change substantially
with SDG&E’s rate proposal, this should help reduce the potential
impact if SDG&E is successful increasing the PAT-1 rate schedule.
The CPUC is considering a mediation process between SDG&E and their
stakeholders prior to making a decision on this general rate case,
however, consumer advocate groups are pressuring the CPUC to make
large users pay more for the power they receive.
Sustainable Energy
Over the last few years, the District has looked at ways to decrease
the dependency on SDG&E and develop alternative sources of self-
generated power. In 2008, the District entered into an agreement
with the County of San Diego to purchase electricity generated from
methane gas produced from the landfill adjacent to the Ralph W.
Chapman Water Reclamation Facility. The project, known as the
Jamacha Landfill Gas Utilization Project, was partially funded
through the California Center for Sustainable Energy (CCSE) and from
revenues from the sale of the electricity. At the beginning of the
project, SDG&E imposed a $1,553 per month stand-by demand charge
(SDC) which by the end of the agreement had increased to $2,014 per
month. As a result of the increased cost for the SDC, it was no
longer economical for the District to buy power generated from the
County of San Diego facility so the agreement was not renewed.
The District has also looked for solar power as a source of self-
generated power and contracted with CSE to perform an assessment on
4
several District owned property. On May 6, 2011, CCSE completed the
“Otay Water District Self-Generation Assessment Report” and concluded
it is unlikely that these projects would result in any savings and
the financial performance of such systems would be poor at current
Power Purchase Agreement prices. The rate changes proposed by SDG&E
will target these systems, further lowering their financial
performance, if SDG&E’s rate structure is approved.
Instability in the solar power industry is also a concern, as the
City of San Diego School District recently found out on 24 of their
buildings. Faulty panels installed in 2005 became corroded and posed
a possible fire risk. A repair that is very expensive. The company
that built the panels filed for bankruptcy and left the company that
sold the power directly to the school district with no resources to
service or maintain the solar panels.
The District is looking at ways to reduce power consumption through
increased energy efficiency and also to meet the requirements of
AB32. The goal of AB32 is to reduce emissions in every community an
average of 15% from today’s levels by 2020. To meet these goals, the
District will need to improve water system energy efficiency.
Increasing the use of recycled water in the District is an important
element in meeting this goal. Three CIP projects in the FY 2013
budget are projects that will reduce the District’s power
consumption.
CIP projects P2502 pump station 803-1 modifications and P2503 pump
station 850-2 modifications will result in significant electrical
energy savings due to increased available suction pressure. CIP
project R2091 pump station 927-1 upgrade will install more efficient
pumps resulting in energy savings.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
No fiscal impact as this is an informational item only.
STRATEGIC GOAL:
This report 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 District’s Vision, “A District that is innovative in
providing water services at affordable rates, with a reputation for
outstanding customer service.”
LEGAL IMPACT:
None.
5
BK/RR/RP:jf
P:\Bob Kennedy\Staff Report\BD 11-7-12, SDG&E Electric Rate Change (BK-RR)\BD 11-7-12, Staff Report, SDG&E Electric Rate Change, (BK-
RR).docx
Attachments: Attachment A – Committee Action
Attachment B – Presentation
ATTACHMENT A
SUBJECT/PROJECT:
N/A
Informational Item - Proposed San Diego Gas & Electric
General Rate Case Impacts on the Otay Water District
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee
reviewed this item at a meeting held on October 23, 2012. The
following comments were made:
Staff stated that on October 3, 2011, SDG&E filed
an amended application with the CPUC and if
approved, there will be a direct impact on District
electric rates. A PowerPoint presentation was
provided to the Committee.
Staff indicated that the impacts include:
o higher basic service fees
o an increases to the Power-Agriculture rate
known as PA-T
o shifting October from a winter rate schedule to
the higher summer rate schedule
o changing the rate structure for solar, wind,
and micro turbine projects
Staff presented a 2012 calendar with the current
summer/winter on-peak, semi-peak, and off-peak time
of use periods showing:
o the rate for power will vary with time of use
o peak periods have higher rates than off-peak
periods
o Summer rates are higher than winter rates
Staff noted that one of the changes proposed is to
shift October from a winter rate schedule to a
summer rate schedule, which will result in a higher
October bill to the District.
It was indicated that the Water Authority offered
to estimate the impact of the rate changes to the
District. Mr. Greg Ortega from the Water Authority
took the electricity data from the District and
applied the new propose rates. The Authority
estimates that the cost of electricity could
increase the District’s rates by 37%.
Staff stated that the California Center for
Sustainable Energy estimated the increase for
Fallbrook and Valley Center and determined that
their rate would increase 34% to 52%.
The California Public Utilities Commission (CPUC)
required SDG&E to meet with the stakeholders to
discuss their proposed rate increase. Staff
received a copy of the settlement agreement between
SDG&E and several stakeholders. The committee
members asked staff to provide members of the board
a summary of SDG&E’s proposal.
Settlement Agreement Summary:
SDG&E and several stakeholders recently met and a
settlement was being drafted with buy-in largely
from the City of San Diego and the Farm Bureau.
Basically, the settlement takes the PA-T rate out
of the Large Commercial & Industrial class and puts
it in the Agricultural class which composes a much
smaller cost allocation than the Commercial &
Industrial class. Unfortunately, SDGE has not
produced any illustrative rates, only percent
allocations. However, the settlement proposal was
designed by Bill Monson (City of San Diego
consultant) and all of the interveners accepted
this as a large win on the PA-T rate.
Staff stated that the so called ‘Solar Rate’ (DGR)
will still need to be resolved.
Staff presented a slide showing some of the drivers
for the rate increase:
o To cover the wildfire cost of $1.1 billion
o The recent shutdown of San Onofre
o The deployment of Smart Grid technology (provides
SDG&E the ability to monitor use which allows
them to bill accordingly)
o To increase reliability
o Consumer advocates pressuring the CPUC to have
large users pay more for the power they receive
Staff discussed Sustainable Energy and stated that
over the last few years, the District has looked at
ways to decrease its dependency on SDG&E and
develop alternative sources for self-generated
power.
In 2008 the District entered into an agreement with
the County of San Diego to purchase electricity
generated from methane gas produced from the
landfill adjacent to the District’s Ralph W.
Chapman Water Reclamation Facility. The project was
partially funded through the California Center for
Sustainable Energy (CCSE) and from revenues from
the sale of the electricity.
At the beginning of the project, SDG&E imposed a
$1,553 per month stand-by demand charge. By the
end of the agreement the stand-by demand charge had
increased to $2,014 per month. As a result of the
increase in the stand-by charge, it was no longer
economical for the District to buy power generated
from the County of San Diego facility so the
agreement was not renewed.
Staff indicated that the District had also looked
at solar power as a source for self-generated power
and contracted with the CCSE to perform an
assessment on several District owned property.
On May 6, 2011, CCSE completed the “Otay Water
District Self-Generation Assessment Report” and
concluded it is unlikely that these projects would
result in any savings and the financial performance
of such systems would be poor at the current Power
Purchase Agreement prices.
The rate changes proposed by SDG&E will target
these systems, further lowering their financial
performance if SDG&E’s rate structure is approved.
Instability in the solar power industry is also a
concern, as the City of San Diego School District
recently found out. Faulty panels installed on 24
of their buildings in 2005 became corroded and
posed a possible fire risk. They then found that
the company who built the panels had filed for
bankruptcy which left the company that sold the
power directly to the school district with no
resources to service or maintain the solar panels.
The District is always looking for ways to reduce
power consumption through increased energy
efficiency and also meet the requirements of AB32.
There are three (3) CIP projects in the FY 2013
budget which are expected to reduce the District’s
power consumption:
o CIP projects P2502 and P2503 will result in
significant electrical energy savings due to
increased available suction pressure (saving
$85,000/year).
o CIP project R2091 pump station 927/944 upgrade
will install more efficient pumps resulting in
energy savings.
Staff is working with the District’s customer
service representative at SDG&E to look at ways to
restructure existing rate tariffs on existing
meters to get more economical rate structures
applied to them. This last year Operations staff
had looked at five different meters and the
possibility of shifting the tariff rate from a PA-
T1 rate schedule to a PA rate schedule is being
discussed to get a more beneficial rate at those
facilities.
The Committee commented that the District should
consider solar energy panels if sustainable energy
programs are available to help pay for them. It was
discussed that solar power was considered by the
District and staff had contracted with California
Center for Sustainable Energy (CSE) to perform an
assessment on several District owned property and
CSE concluded that, “it is unlikely that this
project would result in any savings and the
financial performance of such system would be poor
at current Power Purchase Agreement prices.”
Implementing solar power would not provide the
District savings as the majority of the District’s
electrical use is at the low rate as it runs pumps,
etc., during off-peak hours.
In response to a question by the Committee, staff
stated that the District does have a couple of pump
stations that are located near natural gas mains.
Because they are located near a main they are
designed to use natural gas for power.
Staff indicated that the District did consider
using one of its reservoir sites to generate power
and the excess power would be sold to the
Sweetwater Union High School District who had a
school located next to the reservoir site.
However, SDG&E does not allow electricity generated
within one parcel to cross into another parcel.
It was indicated that staff periodically revisits
sustainable energy programs to see if changes (i.e.
tax incentives, higher energy rates, etc.) have
been made that would make them beneficial to the
District.
Following the discussion, the FA&C Committee supported
staffs’ recommendation and presentation to the full
board as an informational item.
November 7, 2012
SDG&E General Rate Case
Impacts on the
Otay Water District
SDG&E has filed an application with the
CPUC to update costs and electric rates to
include:
•Higher basic service fees
•Rate increase to the Power-
Agriculture rate known as PA-T
•Shift October time of use period from
winter to higher summer fees
•Changing the rate structure for solar,
wind, and micro turbine projects
2
Change to
Summer Pricing
3
October Change to Summer Rates
4
Estimate of Rate Impact to District
7/18/2012, by Greg Olsen, Water Authority
SDGE Rate Current Bill: Feb
2011 - Jan 2012
GRC Published
Current Rate
GRC Published
2013
GRC Published
2014
% Increase from
Current Bill to 2014 2012 - 2014 Delta
A $ 123,224 $ 135,830 $ 141,909 $ 143,572 17% $ 20,348
ALTOU $ 222,621 $ 232,772 $ 239,230 $ 237,792 7% $ 15,172
PA $ 84,149 $ 82,520 $ 84,031 $ 83,294 -1% $ (855)
PA - T1 $ 275,860 $ 288,062 $ 439,121 $ 432,297 57% $ 156,436
PA-T1CP2 $ 386,781 $ 332,615 $ 607,547 $ 598,535 55% $ 211,755
$ 1,092,634 $ 1,071,800 $ 1,511,838 $ 1,495,490 37% $ 402,856
Agency Present January
2012 Costs
SDG&E
Proposed 2014
Costs
Calculated Total
Change (%)
Fallbrook $348,000 $466,300 34%
Valley Center $414,124 $614,055 48%
Water Authority $521,731 $794,288 52%
5
Estimate of Rate Impact
to Other Agencies
SDG&E Rate Increase Drivers
•$1.1 Billion to cover wildfires cost
•Recent shutdown of San Onofre
•Deployment of smart grid technology
•System Reliability
•Consumer advocates pressuring CPUC
to have large users pay more for the
power they receive
6
Power Generation Alternatives
7
CIP P2497
California Center for
Sustainable Energy Solar
Power Assessment Report
8
•Operations Building
•Administration Building
•520 Reservoir site
•624-3 Reservoir Site
Major Findings-
May 6, 2011 Report
Administration and Operations Buildings
•“Financial performance would be
poor at current PPA prices.”
Other District Sites
•“It is unlikely that installing PV
behind any District meter will
result in any cost savings.”
9
Other Concerns:
•Future SDG&E rate changes
targeting PV systems
•Instability in the solar power
industry
•Defective equipment
Meeting AB 32 goals means reducing
emissions an average of 15% from today’s
levels by 2020.
•Reduce Non-Renewable Electricity Use for
the Treatment and Conveyance of Water
•Increase Water Recycling
District Projects
•P2502 PS 803-1 Modifications
•P2503 PS 850-2 Modifications
•R2091 PS 927-1 Upgrade
AB 32
11
Next Steps:
•CPUC considering mediation
process between SDG&E and
stakeholders
•Staff working with SDG&E
representative to look at alternate
rate structures beneficial to the
District
12 OTAY WATER DISTRICT
STAFF REPORT
TYPE
MEETING:
Regular Board
MEETING
DATE:
November 7, 2012
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:
Water Conservation and School Education:
Outreach Events:
o WaterSmart Plant Fair -- October 6th. This event was
promoted via the District’s newsletter, September bill
insert, web page, Facebook and Twitter.
o WaterSmart Landscape Programs – The Water Authority
administered rebate program, $1.50/square foot Turfgrass
Replacement, will start up in early December. In the
interim, Otay staff has been working with its residential
and commercial customers who wished to get started on their
landscape projects prior to November. Rebate program
details can be found on the District’s website, under
“Conservation/For Your Home.”
Conservation Programs Activity – A summary of the District’s
fiscal year program activity through the end of September:
o 48 residential surveys conducted by the Water Authority’s
consultant, Mission Resources on the District’s behalf
o 123 rebates provided for high efficiency clothes washers
o 12 rebates for HETs
o 252 rebates for high efficiency sprinkler nozzles
o 5 rebates for weather based irrigation controllers (both
residential and commercial)
o 1 Water Smart Irrigation Upgrade Project was completed,
involving the San Diego Distribution Center in Otay Mesa,
who converted entirely to drip irrigation.
AGENDA ITEM 10
2
School Education Programs – Through the end of October, 16
garden tours were completed and nine more are scheduled to be
completed before the end of June 2013.
Upcoming Events:
Fall Garden Festival -- November 10th, 10 am – 4 pm, Water
Conservation Garden; activities will include landscape design
consultations, watersmart plant sales, workshops, kids’
activities and more.
Human Resources:
Open Enrollment/Flu Shots – Open Enrollment was held during the
month of October. SDRMA made some minor changes to some of the
plan designs for cost-containment and information has been
provided to all participants. Open Enrollment meetings were
held on October 23rd to provide employees with information
regarding the plans. Flu shots were offered on-site as a
convenience for employees who wished to participate.
Employee Information Meetings – The District held Employee
Information Meetings on October 18th. These meetings are held
every six months to provide employees with relevant information
regarding key District projects and updates. Updates on the
following were included: FY12 Year-End Strat Plan results,
computer security, EAP services, emergency generator testing,
and North/South District Interconnection System.
Recruitments/New Hires – HR is currently recruiting for a Lead
Customer Service Representative and a Senior Accountant. Day 2
New Employee Orientation was held on October 30th for three
employees.
New Hires – There were no new hires in the month of October.
Purchasing and Facilities:
Purchase Orders – There were 95 purchase orders processed in
October 2012 for a total of $659,333.97.
INFORMATION TECHNOLOGY AND STRATEGIC PLANNING:
Otay Donates a Goat to OXFAM – The District occasionally
participates with vendors to help document how we use new
products and services. Vendors appreciate this cooperation.
In this case, because of our assistance with our phone system
vendor (Interactive Intelligence Inc.) in providing an
interview and documentation about our positive experience with
their product, we earned enough partner “points” to qualify to
have a goat donated to a needy family through OXFAM and have
the donation sponsored by the Otay Water District. OXFAM
3
America is an international relief and development organization
that creates lasting solutions to poverty, hunger, and
injustice. Together with individuals and local groups in more
than 90 countries, OXFAM saves lives, helps people overcome
poverty, and fights for social justice (www.oxfamamerica.org).
MapBooks Updated – In November, GIS staff will be distributing
a set of updated facilities MapBooks to Operations staff.
While our maps are available online and on the ToughBooks,
staff also produces a hard copy version that is available in
the vehicles and can be used by staff when needed. Staff has
also implemented an electronic updating procedure (red-lining)
to continue to improve map and asset accuracy.
FINANCE:
Water Sales – As of October 24th, water sales are 3.03% above
budgeted units (potable is 2.99% and recycled is 3.25% above
budget). This time last year, the combined cumulative sales
were 3.28% below the budgeted units (potable was 3.05% and
recycled was 4.67% below budget). The primary reason for the
increase is the higher than normal temperatures this summer
compared to a relatively cool summer last year.
Eden Software Upgrade - Staff has begun early testing of the
Eden application upgrade 5.6 to 5.8 with the intent to
implement it in January 2013. This process ensures we are up-
to-date on the latest enhancements provided by our software
vendor.
FY 2012 CAFR - Staff has begun preparation of the FY 2012
Comprehensive Annual Financial Report (CAFR) and are on target
to have the CAFR completed by November 30th. The due date for
completion of the CAFR is December 31st.
Proposition 218 – The required Proposition 218 30-day customer
notices regarding the water and sewer rate increases will be
mailed in November. These increases were approved at the May
15, 2012 Special Board Meeting and are effective January 1,
2013. The bills will include water used as early as December
1, 2012, depending on the customers’ billing cycle.
Financial Reporting:
o For the three months ended September 30, 2012, there are
total revenues of $23,949,814 and total expenses of
$22,113,023. The revenues exceeded expenses by $1,836,791.
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of September 30, 2012, total
$82,362,575.20 with an average yield to maturity of 0.457%.
The total earnings year-to-date are $106,847.29.
4
ENGINEERING AND WATER OPERATIONS:
Engineering:
Rancho del Rey Groundwater Well Development: The design
consultant (Tetra Tech) is proceeding to the 100% design level.
The draft sewer agreement incorporating City of Chula Vista
comments was reviewed by legal counsel. Staff is discussing
changes to the agreement from Legal, Finance, and Operations
with the City of Chula Vista. Additional activities are
underway to secure an Industrial User Discharge Permit from the
City of San Diego, a Hazardous Materials Business Plan from the
County, a power supply from SDG&E, and a storm drain connection
for discharges into the storm drain system. Staff is preparing
a request for a grant from the United States Bureau of
Reclamation. Potentially, 25% of the cost of the project could
be offset if the funds are granted. Staff will make a formal
update of this project at the District’s January Board Meeting.
(P2434)
North District – South District Interconnection System: This
project consists of installing approximately 5.2 miles of 30-
inch diameter pipe from H Street in Chula Vista to Paradise
Valley Road in Spring Valley. A follow up meeting with
Supervisor Cox and CWA has been scheduled on December 10, 2012.
(P2511)
30-Inch, 980 Zone, Hunte Parkway – Proctor Valley/Use Area:
This project consists of the installation of approximately
2,399 linear-feet of 30-inch steel pipe and appurtenances on
Hunte Parkway at Proctor Valley Road, at the entrance to the
Salt Creek Golf Course, in the City of Chula Vista. The
pipeline will increase total water delivery to reduce pressure
losses experienced during periods of high demand. The
Contractor, Sepulveda Construction, began installing pipe at
the intersection of Proctor Valley Rd. and Hunte Parkway on
October 2, 2012 and approximately 500 linear feet of pipe has
been installed. Project is within budget and construction is
anticipated to be completed in February 2013. (P2514)
Avocado, Louisa, Calavo, Challenge, Hidden Mesa Sanitary Sewer
Replacement: This project consists of replacing approximately
4,500 feet of sewer pipeline in Avocado Boulevard and
neighboring residential streets. Work is ongoing in Avocado
Boulevard. The members of the community impacted have been
informed as well as the Valley de Oro Community Planning Group.
Project is within budget and anticipated to be completed in May
2013. (S2019, S2020, S2022, S2026)
5
624-1 Reservoir Cover Replacement: This project consists of
replacing the floating cover on the 624-1 Reservoir. The
existing cover is at the end of its useful life and in need of
replacement. The Board awarded a contract to Layfield
Environmental Systems Corporation at the October 9, 2012 Board
Meeting. A preconstruction meeting was held on October 25,
2012. The project is within budget and expected to be complete
in April 2013. (P2477).
12-Inch Potable Water Pipeline, East Orange Avenue, I-805
Crossing: This project consists of the installation of
approximately 1,915 linear-feet of 12-inch steel and PVC pipe
along with the associated appurtenances from the intersection of
Melrose Avenue and Orange Avenue, east across the I-805
overpass. This new pipeline is needed to meet fire flow
requirements while Caltrans reconstructs the Palomar Bridge
overpass, which contains a 10-inch pipeline that will be
temporarily out of service. Caltrans is currently processing
the encroachment permit. Caltrans mandated that the entire
pipeline segment within its right-of-way be constructed using
steel pipe. The Project is presently within budget; however,
Caltrans’ changes might have a budget impact, which will be
known after bids are open in late November 2012. (P2513)
Approximately 2,433 linear feet of both CIP and developer
project pipeline was installed in September 2012. The
Construction Division performed quality control for these
pipelines.
For the month of September 2012, the District sold 38 meters
(42 EDUs) generating $385,080 in revenue. Projection for this
period was 27.6 meters (33.6 EDUs) with budgeted revenue of
$331,005. Total revenue for Fiscal Year 2013 through September
2012 is $946,050 against the annual budget of $3,972,064.
Water Operations:
Total number of potable water meters is 48,861.
The September potable water purchases were 3,219.1 acre-feet
which is 4.7% below the budget of 3,376.4 acre-feet. The
cumulative purchases through September is 10,034.7, acre-feet
which is 0.1% above the cumulative budget of 10,024.9 acre-
feet.
6
The September recycled water purchases and production was
590.8 acre-feet which is 6.0% more than the budget of 468.2
acre-feet. The cumulative production and purchases through
August is 1,698.6acre-feet which is 2.0% above the cumulative
budget of 1,665.8 acre-feet.
7
Recycled water consumption for the month of September is as
follows:
Total consumption was 579.7 acre-feet or 188,813,900 gallons
and the average daily consumption was 6,293,797 gallons per
day.
Total number of recycled water meters is 703.
Total recycled water consumption as of September for FY 2013
is 1,719.5 acre-feet.
Wastewater flows for the month of September were as follows:
Total basin flow, gallons per day: 1,697,099.
Spring Valley Sanitation District Flow to Metro, gallons per
day: 562,059.
Total Otay flow, gallons per day: 1,134,561.
Flow Processed at the Ralph W. Chapman Water Recycling
Facility, gallons per day: 1,140,953.
Flow to Metro from Otay Water District was calculated to be
a negative number. This indicated that the read from the
County meter is incorrect. Staff is working with the County
to help resolve the Rancho San Diego Pump Station flow meter
readings reported to staff for this month. When staff has a
resolution to this the Board Report will be updated
accordingly.
By the end of September there were 6,084 wastewater
connections/EDUs.
REVENUES:
Water Sales
Energy Charges
System Charges
MWD & CWA Fixed Charges
Penalties
Total Water Sales
Recycled Water Sales
Sewer Charges
Meter Fees
Capacity Fee Revenues
Betterment Fees for Maintenance
Non-Operating Revenues
Tax Revenues
Interest
Transfer from OPEB
General Fund Draw Down
Transfer from 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
Transfer to Sewer Fund Reserve
Transfer to General Fund Reserve
Transfer to Sewer Replacement
Total Expenses
EXCESS REVENUES(EXPENSE)
F:/MORPT/FS2013-0912
Exhibit A
OTAY WATER DISTRICT
COMPARATIVE BUDGET SUMMARY
FOR THREE MONTHS ENDED SEPTEMBER 30, 2012
Annual YTD YTD YTD
Budget Actual Budget Variance Var%
$ 39,110,200 $ 12,981,173 $ 12,496,500 $ 484,673 3.9%
1,809,500 656,270 610,400 45,870 7.5%
10,328,400 2,406,958 2,394,000 12,958 0.5%
9,705,800 2,496,531 2,479,200 17,331 0.7%
800,500 217,467 233,300 (15,833) (6.8%)
61,754,400 18,758,398 18,213,400 544,998 3.0%
7,702,400 2,881,647 2,836,700 44,947 1.6%
2,555,200 623,502 631,800 (8,298) (1.3%)
112,200 33,581 28,100 5,481 19.5%
1,180,600 328,624 315,200 13,424 4.3%
689,400 139,844 152,400 ( 12,556) (8.2%)
1,914,300 431,348 442,400 (11,052) (2.5%)
3,882,600 130,430 127,500 2,930 2.3%
105,700 17,040 21,400 (4,360) (20.4%)
879,500 219,900 219,900 0.0%
946,900 236,700 236,700 0.0%
595,000 148,800 148,800 0.0%
$ 82,318,200 $ 23,949,814 $ 23,374,300 $ 575,514 2.5%
$ 30,552,200 $ 9,603,208 $ 9,493,600 $ (109,608) ( 1.2%)
1,504,000 546,459 558,600 12,142 2.2%
1,818,000 449,139 449,100 (39) (0.0%)
1,687,800 413,238 413,100 ( 138) (0.0%)
4,086,000 955,944 955,800 (144) (0.0%)
504,000 135,771 135,900 129 0.1%
1,610,400 402,428 402,600 173 0.0%
41,762,400 12,506,186 12,408,700 (97,486) (0.8%)
2,368,000 699,940 731,500 31,560 4.3%
18,856,200 4,428,046 4,597,800 169,754 3.7%
3,747,900 876,818 880,375 3,556 0.4%
4,424,900 838,300 852,212 13,912 1.6%
380,000 68,832 85,000 16,168 19.0%
3,936,000 984,000 984,000 0.0%
1,120,000 280,000 280,000 0.0%
743,000 185,800 185,800 0.0%
595,000 148,800 148,800 0.0%
2,285,800 571,500 571,500 0.0%
2,099,000 524,800 524,800 0.0%
$ 82,318,200 $ 22,113,023 $ 22,250,487 $ 137,464 0.6%
$ $ 1,836,791 $ 1,123,813 $ 712,978
10/25/2012 4:55 PM
OTAY WATER DISTRICT
INVESTMENT PORTFOLIO REVIEW
SEPTEMBER 30,2012
INVESTMENT OVERVIEW & MARKET STATUS:
The federal funds rate has remained constant now for over 44-months. 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 ofbetween 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 September 13,2012.
They went on to say: "The Committee currently anticipates exceptionally low levels for the federal funds rate are likely to be
warranted at least through mid-2015. "
Despite the large drop in available interest rates, the District's overall effective rate ofreturn at September 30th was 0.49%, which was
a increase of 4 basis points (0.04%) from the prior month. At the same time the LAIF return on deposits has fluctuated slightly over
the last several months, reaching an average effective yield of 0.348% for the month of September 2012. 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 are being considered at this time.
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: August 31, 2012
Investment State Limit Otay Limit Otay Actual
8.01: Treasury Securities 100% 100% o
8.02: Local Agency Investment Fund (Operations) $50 Million $50 Million $24.6 Million
8.02: Local Agency Investment Fund (Bonds) 100% 100% 4.95%
8.03: Federal Agency Issues 100% 100% 36.56%
8.04: Certificates of Deposit 30% 15% 0.10%
8.05: Short-Term Commercial Notes 25% 15% o
8.06: Medium-Term Commercial Debt 30% 15% o
8.07: Money Market Mutual Funds 20% 15% o
8.08: San Diego County Pool 100% 100% 26.88%
12.0: Maximum Single Financial Institution 100% 50% 1.62%
----
Otay Water District
Investment Portfolio: 09/30/12
$30,095,000". . $1 415751
36.560/0 _~ _i.72%
Total Cash and Investments: $82,311,849 $50,801,098
61.72%
OBanks (Passbook/Checking/CD) • Pools (LAIF & County) OAgencit::s & Corporate Notes
Performance Measure F-12
Return on Investment
Target: Meet or Exceed 100% of LAIF
..41) 0.80 c II 0.70E.. 41) 0.60 ~ 0.50.5 c 0.400 c... 0.30 ::s.. II 0.20 a: 0.10
0.00 . IstQtr 2ndQlr 3rd Qlr
FYI2 FYI2 FYI2
-LAIF 0.39 0.39 0.38
_Olay 0.71 0.64 0.56
C Difference 0.32 0.25 0.18
4lh Qlr IstQlrJul FYI3 AugFYI3 Sepl FY13 Apr FYI2 May FYI2 June FYI2 FYI2 FYI3
0.36 0.36 0.350.37 0.36 0.36 0.38 0.36
0.51 0.510.52 0.49 0.52 0.45 0.49 0.48
0.16 0.15 0.15 0.140.15 0.13 0.07 0.12
Month
-LAIF -Otay CDifference
OTAY
Portfolio Management
Portfolio Summary
September 30, 2012
Par Market Book % of Days to YTM YTM
Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv.
Federal Agency Issues-Callable 30.095,000.00 30,122,314.20 30,095,000.00 37.16 910 748 0.540 0.548
Certificates of Deposit -Bank 81,326.80 81,326.80 81,326.80 0.10 731 478 0.280 0.284
Local Agency Investment Fund (LAIF) 28.671,832.87 28.709,509.73 28,671,832.87 35.41 1 1 0.343 0.348
San Diego County Pool 22,129.264.70 22.115,000.00 22,129,264.70 27.33 1 1 0.490 0.497
Investments 80,977,424.37 81,028,150.73 80,977,424.37 100.00% 339 279 0.457 0.463
Cash
Passbook/Checking
(not included in yiela calculations) 1,334,424.47 1,334,424.47 1,334,424.47 0.227 0.230
Total Cash and Investments 82,311,848.84 82,362,575.20 82,311,848.84 339 279 0.457 0.463
Total Earnings September 30 Month Ending Fiscal Year To Date
Current Year 33,887.96 106,847.29
Average Daily Balance 83,443,239.17 86,797,031.71
Effective Rate of Return 0.49% 0.49%
I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on September 6, 2006. The
market value information provided by Interactive Data Corporation. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of
expenditures. ~
If) -?-;1--{ .;L
Joseph Beache
Reporting period 09/01/2012-09/30/2012 Portfolio OTAY
AP
Run Dale 1011812012 -09:39 PM (PRF_PM1) 7.3.0
Report Ver. 7.3.3b
OTAY
Portfolio Management
Portfolio Details -Investments
Page 1
September 30, 2012
CUSIP Investment # Issuer
Average
Balance
Purchase
Date Par Value Market Value Book Value
Stated
Rate S&P
YTM Days to
360 Maturity
Maturity
Date
Federal Agency Issues-Callable
3133EAEG9
313380AV9
313380AV9A
313380AV9B
3134G3AC4
3134G3AQ3
3134G3BN9
3134G3SS0
3135GOKl6
3135GOKS1
3135GOlF8
3135GOll5
2241
2248
2249
2250
2226
2227
2228
2232
2238
2240
2242
2244
Federal Farm Credit 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 National Mortage Assoc
Federal National Mortage Assoc
Federal National Mortage Assoc
Federal National Mortage Assoc
05/09/2012
08/13/2012
08/13/2012
08/13/2012
12/06/2011
11130/2011
12105/2011
03/22/2012
04/3012012
05/10/2012
05/24/2012
06/04/2012
1,360,000.00
3,000,000.00
1,030,000.00
2,705,000.00
3,000,000.00
2,000,000.00
2,000,000.00
3,000,000.00
3,000.000.00
3,000,000.00
3,000,000.00
3.000,000.00
1,362,080.80
3,001,320.00
1,030,453.20
2,706.190.20
3,001,020.00
2,001,180.00
2,001.680.00
3,005,280.00
3,001,680.00
3,003,480.00
3,004,020.00
3,003,930.00
1,360,000.00
3,000,000.00
1,030,000.00
2,705,000.00
3,000,000.00
2,000,000.00
2,000,000.00
3,000,000.00
3,000,000.00
3,000,000.00
3,000.000.00
3,000.000.00
0.550 0.542 879 02127/2015
0.450 0.444 865 02113/2015
0.450 0.444 865 02113/2015
0.450 0.444 865 02113/2015
0.600 0.592 431 12106/2013
0.710 AA 0.700 606 05/30/2014
0.770 AA 0.759 612 06/05/2014
0.540 0.533 721 09/2212014
0.500 0.493 759 10/30/2014
0.560 0.552 862 02110/2015
0.500 0.493 784 11/24/2014
0.550 0.542 794 12104/2014--------
Subtotal and Average 35,293,925.37 30,095,000.00 30,122,314.20 30,095,000.00 0.540 748
Certificates of Deposit -Bank
2050003183-5 2229 California Bank & Trust 0112212012 81,326.80 81,326.80 81,326.80 0.280 0.280 478 0112212014 --------
Subtotal and Average 81,326.80 81,326.80 81,326.80 81,326.80 0.280 478
Local Agency Investment Fund (LAIF)
LAIF
LAIF BABS2010
9001
9012
STATE OF CALIFORNIA
STATE OF CALIFORNIA
07/01/2004
04/21/2010
24,600,643.33
4,071,189.54
24,632,970.35
4,076,539.38
24,600,643.33
4,071,189.54
0.348 0.343
0.348 0.343 --------
Subtotal and Average 23,848,499.54 28,671,832.87 28,709,509.73 28,671,832.87 0.343
San Diego County Pool
SD COUNTY POOL 9007 San Diego County 07/0112004 22,129,264.70 22,115,000.00 22,129,264.70 0.497 0.490--------
Subtotal and Average 22,129,264.70 22,129,264.70 22,115,000.00 22,129,264.70 0.490
Total and Average 83,443,239.17 80,977,424.37 81,028,150,73 80,977,424.37 0.457 279
Portfolio DTAY
AP
Run Date: 10/18/2012 -09:39 PM (PRF_PM2) 7.3.0
Report Ver. 7.3.3b
OlAY
Portfolio Management
Portfolio Details -Cash
September 30,2012
Page 2
CUSIP
Union Bank
UNION MONEY
PETTY CASH
UNION OPERATING
PAYROLL
RESERVE-10 COPS
RESERVE-10 BABS
UBNA-2010 BOND
UBNA-FLEX ACCT
Investment #
9002
9003
9004
9005
9010
9011
9013
9014
Issuer
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
Average
Balance
Purchase
Date
07/01/2004
07/01/2004
07/01/2004
07/01/2004
04/20/2010
04/2012010
04/20/2010
01101/2011
Par Value
10,000.91
2,950.00
1.187,091.03
27,971.60
6,484.01
17,646.46
70.015.05
12,263.41
Market Value
10.000.91
2,950.00
1,187,091.03
27,971.60
6.484.01
17.648.46
70,015.05
12.263.41
Book Value
10,000.91
2.950.00
1,167.091.03
27,971.60
6,464.01
17,646.46
70,015.05
12.263.41
Stated
Rate
0.010
0.250
0.010
0.010
0.147
S&P
YTM
360
0.010
0.000
0.247
0.000
0.010
0.010
0.145
0.000
Days to
Maturity
Average Balance
Total Cash and Investments
0.00
83,443,239.17 82,311,848.84 82,362,575.20 82,311,848.84 0.457 279
Portfolio OTAY
AP
Run Dale: 10/1812012·09:39 PM (PRF_PM2) 7.3.0
OTAY
Portfolio Management Page 1
Interest Earnings Summary
September 30, 2012
September 30 Month Ending Fiscal Year To Date
CD/Coupon/Discount Investments:
Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
Less Accrued Interest at Purchase During Period
Interest Earned during Period
Adjusted by Premiums and Discounts
Adjusted by Capital Gains or Losses
Earnings during Periods
27.537.30
40,375.67
51,951.31 )
0.00)
15,961.66
45.38
1,633.33
17,640.37
73,626.93
40,375.65
58.130.60)
0.00)
55,871.98
232.97
1,633.33
57,738.28
Pass Through Securities:
Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
Less Accrued Interest at Purchase During Period
Interest Earned during Period
Adjusted by Premiums and Discounts
Adjusted by Capital Gains or Losses
Earnings during Periods
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
Cash/Checking Accounts:
Interest Collected 6.90 62,973.37
Plus Accrued Interest at End of Period 466,525.78 466,525.78
Less Accrued Interest at Beginning of Period 450,285.09) 480,390.14)
Interest Earned during Period 16,247.59 49,109.01
Total Interest Earned during Period 32,209.25 104,980.99
Total Adjustments from Premiums and Discounts 45.38 232.97
Total Capital Gains or Losses 1,633.33 1,633.33
Total Earnings during Period 33,887.96 106,847.29
Portfolio OTAY
AP
Run Dale: 1011812012 -09:39 PM (PRF_PM6) 7.30
Report Ver. 7.3.3b
OTAY
Activity Report
Sorted By Safekeeper
July 1, 2012 -September 30, 2012
Par Value Par Value
Percent Beginning Current Transaction Purchases or Redemptions or Ending
ot Portfolio Balance Rate Date Deposits Withdrawals BalanceCUSIP Investment # Issuer
Safekeeper: Union Bank of California
Federal Agency Issues-Callable
3137EACK3
3137EACK3A
3137EACK3B
31331KZFO
313378KU4
3135GOJG9
3133794G1
313379JC4
313379R84
313379SP5
313379UT4
313380AV9
313380AV9A
313380AV9B
313380BG1
313380BG1
2146
2148
2149
2219
2233
2234
2239
2243
2245
2246
2247
2248
2249
2250
2251
2251
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Home Loan Mortgage
Federal Farm Credit Bank
Federal Home Loan Bank
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
1.125
1.125
1.125
0.481
0.500
0.520
0.500
0.500
0.500
0.450
0.500
0.450
0.450
0.450
0.500
07/27/2012
07/27/2012
07/27/2012
09/05/2012
09/12/2012
09/26/2012
07/15/2012
07/05/2012
07/13/2012
07/19/2012
07/27/2012
08/13/2012
08/13/2012
08/13/2012
08/13/2012
09/13/2012
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,000,000.00
1,030,000.00
2,705,000.00
3,000,000.00
0.00 -
2,000,000.00
1.030,000.00
2.707,000.00
3,000,000.00
3,000,000.00
3,000.000.00
3,000,000.00
3,000,000.00
3.000,000.00
3,000.000.00
3,000,000.00
0.00
000
0.00
0.00
3,000,000.00
Subtotal and Balance 53,097,000.00 9,735,000.00 32,737,000.00 30,095,000.00
Union Bank
RESERVE-10 COPS
RESERVE-10 BABS
UBNA-FLEX ACCT
9010
9011
9014
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
Subtotal and Balance 43,205.47
0.010
0.010
1,035,795.99
2,722,231.23
0.00 --
3,758,027.22
1,030,000.00
2.705,000.00
29,836.81
3,764,836.81 36,395.88
Satekeeper Subtotal 36.606% 53,140,205.47 13,493,027.22 36,501,836.81 30,131,395.88
Safekeeper: Unspecified Safekeeper
Certificates of Deposit -Bank
Subtotal and Balance 81,326.80 81,326.80
Portfolio OTAY
AP
Run Dale: 1011812012 -09:42 DA (PRF_DA) 7.2.0
Report Ver. 7.3.3b
OlAY
Activity Report Page 2
July 1, 2012 -September 30, 2012
Par Value __ ~!_V~.!Je__
Percent Beginning Current Transaction Purchases or Redemptions or Ending
CUSIP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance
Safekeeper Subtotal 0.099% 81,326.80 0.00 0.00 81,326.80
Safekeeper: Not applicable -Cash/Managed Pool Accounts
Union Bank
UNION MONEY
UNION OPERATING
9002
9004
STATE OF CALIFORNIA
STATE OF CALIFORNIA
0.010
0.250
40,426,959.76
1,802,530.88
40.426,964.76
1.906,408.27
Subtotal and Balance 1,401,910.98 42,229,490.64 42,333,373.03 1,298,028.59
Local Agency Investment Fund (LAIF)
LAIF 9001 STATE OF CALIFORNIA
LAIF BABS 2010 9012 STATE OF CALIFORNIA
0.348
0.348
32,317.387.59
3,612.93
15,250,000.00
0.00
Subtotal and Balance 11,600,832.35 32,321,000.52 15,250,000.00 28,671,832.87
San Diego County Pool
SD COUNTY POOL 9007 San Diego County
Subtotal and Balance 22,109,219.22
0.497 20.045.48
20,045.48
0.00
0.00 22,129,264.70
Safekeeper Subtotal 63.295% 35,111,962.55 74,570,536.64 57,583,373.03 52,099,126.16
Total 100.000% 88,333,494.82 88,063,563.88 94,085,209.84 82,311,848.84
Portfolio OlAY
AP
Run Dale: 10/1812012 -09:42 DA (PRF_DA) 7.2.0
Report Ver. 7.3.3b
OTAY
GASB 31 Compliance Detail
Sorted by Fund -Fund
July 1, 2012 -September 30, 2012
Adjustment in Value
CUSIP Investment # Fund
Investment
Class
Maturity
Date
Beginning
Invested Value
Purchase
of Principal
Addition
to Principal
Redemption
of Principal
Amortization
Adjustment
Change In
Market Value
Ending
Invested Value
Fund: Treasury Fund
LAIF 9001 99 Fair Value 7,542,443.62 0.00 32,317,387.59 15,250,000.00 0.00 23,139.13 24,632,970.35
UNION MONEY 9002 99 Amortized 10,005.91 0.00 40,426,959.76 40,426,964.76 0.00 0.00 10,000.91
PETIYCASH 9003 99 Amortized 2,950.00 0.00 0.00 0.00 0.00 0.00 2,950.00
UNION OPERATING 9004 99 Amortized 1,290,968.42 0.00 1,802,530.88 1,906,408.27 0.00 0.00 1,187,091.03
PAYROLL 9005 99 Amortized 27,971.60 0.00 0.00 0.00 0.00 0.00 27,971.60
SO COUNTY POOL 9007 99 Fair Value 22,089,000.00 0.00 20,045.48 0.00 0.00 5,954.52 22,115,000.00
RESERVE-l0 COPS 9010 99 Amortized 688.02 0.00 1,035,795.99 1,030,000.00 0.00 0.00 6,484.01
RESERVE-l0 BABS 9011 99 Amortized 417.23 0.00 2,722,231.23 2,705,000.00 0.00 0.00 17,648.46
LAIF BABS 2010 9012 99 Fair Value 4,072,537.60 0.00 3,612.93 0.00 0.00 388.84 4,076,539.38
UBNA-2010 BOND 9013 99 Amortized 70,015.05 0.00 0.00 0.00 0.00 0.00 70,015.05
3137EACK3 2146 99 Fair Value 07/27/2012 2,001,300.00 0.00 0.00 2,000,000.00 0.00 -1,300.00 0.00
3137EACK3A 2148 99 Fair Value 07/27/2012 1,030,669.50 0.00 0.00 1,030,000.00 0.00 -669.50 0.00
3137EACK3B 2149 99 Fair Value 07127/2012 2,708,759.55 0.00 0.00 2,707,000.00 0.00 -1,759.55 0.00
UBNA-FLEX ACCT 9014 99 Amortized 42,100.22 0.00 0.00 29,836.81 0.00 0.00 12,263.41
31331KZFO 2219 99 Fair Value 12123/2013 3,000,030.00 0.00 0.00 3,000,000.00 0.00 -30.00 0.00
3134G3AC4 2226 99 Fair Value 12106/2013 3,000,600.00 0.00 0.00 0.00 0.00 420.00 3,001,020.00
3134G3AQ3 2227 99 Fair Value 05/30/2014 2,001,980.00 0.00 0.00 0.00 0.00 -800.00 2,001,180.00
3134G3BN9 2228 99 Fair Value 06/05/2014 2,003,140.00 0.00 0.00 0.00 0.00 -1,460.00 2,001,680.00
2050003183-5 2229 99 Amortized 01/2212014 81,326.80 0.00 0.00 0.00 0.00 0.00 81,326.80
3134G3SS0 2232 99 Fair Value 09/22/2014 3,003,870.00 0.00 0.00 0.00 0.00 1,410.00 3,005,280.00
313378KU4 2233 99 Fair Value 09/1212014 3,001,350.00 0.00 0.00 3,000.000.00 0.00 -1,350.00 0.00
3135GOJG9 2234 99 Fair Value 09/26/2014 3,003,000.00 0.00 0.00 3,000,000.00 0.00 -3,000.00 0.00
3135GOKL6 2238 99 Fair Value 10/3012014 2,993,970.00 0.00 0.00 0.00 0.00 7.710.00 3,001.680.00
3133794Gl 2239 99 Fair Value 05/15/2014 2,998,560.00 0.00 0.00 3,000,000.00 0.00 1,440.00 0.00
3135GOKSl 2240 99 Fair Value 02/1012015 2,997,450.00 0.00 0.00 0.00 0.00 6,030.00 3,003,480.00
3133EAEG9 2241 99 Fair Value 02127/2015 1,361,632.00 0.00 0.00 0.00 0.00 448.80 1,362,080.80
3135GOLF8 2242 99 Fair Value 11/24/2014 2,999,640.00 0.00 0.00 0.00 0.00 4,380.00 3,004.020.00
313379JC4 2243 99 Fair Value 06/05/2014 3,000,060.00 0.00 0.00 3,000,000.00 0.00 -60.00 0.00
3135GOLL5 2244 99 Fair Value 12104/2014 2.999,340.00 0.00 0.00 0.00 0.00 4,590.00 3,003,930.00
313379R84 2245 99 Fair Value 06/13/2014 2,996,460.00 0.00 0.00 3,000,000.00 0.00 3.540.00 0.00
Portfolio OTAY
AP
Run Date: 1011812012 -09:41 GO (PRF_GO) 7.1.1
Report Ver. 7.3.3b
OTAY
GASS 31 Compliance Detail Page 2
Sorted by Fund -Fund
Adjustment In Value
CUSIP Investment # Fund
Investment
Class Maturity
Date
Beginning
Invested Value
Purchase
of Principal
Addition
to Principal
Redemption
of Principal
Amortization
Adjustment
Change In
Market Value
Ending
Invested Value
Fund: Treasury Fund
313379SP5 2246 99 Fair Value 12/19/2013 2,996,610,00 0.00 0.00 3,000,000.00 0.00 3,390.00 0.00
313379UT4 2247 99 Fair Value 06/27/2014 2,998,230.00 0.00 0.00 3,000,000.00 0.00 1,770.00 0.00
313380AV9 2248 99 Fair Value 02/13/2015 0.00 3,000,000.00 0.00 0.00 0.00 1,320.00 3,001,320.00
313380AV9A 2249 99 Fair Value 02113/2015 0.00 1,030,000.00 0.00 0.00 0.00 453.20 1,030,453.20
313380AV9B 2250 99 Fair Value 02113/2015 0.00 2,705,000.00 0.00 0.00 0.00 1,190.20 2,706,190.20
313380BGl 2251 99 Fair Value 02/13/2015 0.00 3,000,000.00 0.00 3,000,000.00 0.00 0.00 0.00
Subtotal 88,327,075.52 9,735,000.00 78,328,563.86 94,085,209.84 0.00 57,145.64 82,362,575.20
Total 88,327,075.52 9,735,000.00 78,328,563.86 94,085,209.84 0.00 57,145.64 82,362,575.20
Portfolio OTAY
AP
Run Dale: 10/18/2012 -09:41 GO (PRF_GO) 7.1.1
Report Ver. 7.3.3b
OTAY
Duration Report
Sorted by Investment Type -Investment Type
Through 09/30/2012
Investment Book Par Market Current YTM Current Maturityl Modified
Security 10 Investment # Fund Issuer Class Value Value Value Rate 360 Yield Call Date Duration
3134G3BN9 2228 99 Federal Home Loan Mortgage Fair 2,000,000.00 2,000,000.00 2,001,680.00 .7700000 0.759 0.720 06/05/2014 1.660
3134G3SS0 2232 99 Federal Home Loan Mortgage Fair 3,000,000.00 3,000,000.00 3,005,280.00 .5400000 0.533 0.450 09/2212014 1.962
3134G3AQ3 2227 99 Federal Home Loan Mortgage Fair 2,000,000.00 2,000,000.00 2,001,180.00 .7100000 0.700 0.674 05/30/2014 1.647
3134G3AC4 2226 99 Federal Home Loan Mortgage Fair 3,000,000.00 3,000,000.00 3,001,020.00 .6000000 0.592 0.571 12106/2013 1.173
3135GOKL6 2238 99 Federal National Mortage Assoc Fair 3,000,000.00 3,000,000.00 3,001,680.00 .5000000 0.493 0.473 10/30/2014 2.063
3135GOLF8 2242 99 Federal National Mortage Assoc Fair 3.000,000.00 3,000.000.00 3,004,020.00 .5000000 0.493 0.437 11/24/2014 2.129
3135GOKS1 2240 99 Federal National Mortage Assoc Fair 3,000,000.00 3.000.000.00 3,003.480.00 .5600000 0.552 0.510 02110/2015 2.338
3135GOLL5 2244 99 Federal National Mortage Assoc Fair 3,000,000.00 3.000,000.00 3,003,930.00 .5500000 0.542 0.489 12104/2014 2.156
313380AV9A 2249 99 Federal Home Loan Bank Fair 1,030,000.00 1,030,000.00 1,030,453.20 .4500000 0.444 0.431 02113/2015 2.350
313380AV9B 2250 99 Federal Home Loan Bank Fair 2,705,000.00 2,705,000.00 2,706,190.20 .4500000 0.444 0.431 02113/2015 2.350
313380AV9 2248 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 3,001,320.00 .4500000 0.444 0.431 02113/2015 2.350
3133EAEG9 2241 99 Federal Farm Credit Bank Fair 1,360,000.00 1.360,000.00 1,362,080.80 .5500000 0.542 0.486 02127/2015 2.385
2050003183·5 2229 99 Califomia Bank & Trust Amort 81,326.80 81,326.80 81,326.80 .2800000 0280 0.280 0112212014 1.306t
LAIF 9001 99 STATE OF CALIFORNIA Fair 24,600,643.33 24.600,643.33 24,632,970.35 .3480000 0.343 0.348 0.000
LAIF COPS07 9009 99 STATE OF CALIFORNIA Fair 0.00 0.00 0.00 1.530000 1.509 1.530 0.000
LAIF BABS 2010 9012 99 STATE OF CALIFORNIA Fair 4,071.189.54 4.071,189.54 4.076,539.38 .3480000 0.343 0.348 0.000
SDCOUNTY 9007 99 San Diego County Fair 22,129,264.70 22.129.264.70 22.115,000.00 .4970000 0.490 0.497 0.000
Report Total 80,977,424.37 80,977,424.37 81,028,150.73 0.446 0.756t
t = Duration can not be calculated on these investments due to incomplete Market price data.
Portfolio OTAY
AP
Run Date: 10/1612012 • 09:42 Page 1 DU (PRF_DU) 7.1.1
Report VeL 7.3.3b
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034763 10/03/12 14376 7603 ST ANDREWS AVENUE INC 003922 10/01/12 IRRIGATION UPGRADE PROGRAM 5,000.00 5,000.00
2034764 10/03/12 08488 ABLEFORCE INC 3438 09/04/12 PROGRAMMING SERVICES (8/20/12-8/31/12)7,200.00 7,200.00
2034922 10/17/12 08488 ABLEFORCE INC 3457 09/18/12 PROGRAMMING SERVICES (9/4/12-9/7/12)2,160.00 2,160.00
2035012 10/24/12 14445 ADAN CONTRERAS-LOPEZ Ref002424816 10/23/12 UB Refund Cst #0000186583 118.27 118.27
2035085 10/31/12 14424 ADCO UNDERGROUND SERVICES LLC 496 10/08/12 POTHOLING SERVICES 5,120.00 5,120.00
2034765 10/03/12 11462 AEGIS ENGINEERING MGMT INC 1121 09/06/12 DEVELOPER PLANCHECKS (8/4/12-8/31/12)3,587.11
1034 09/06/12 PLAN CHECKING (8/4/12-8/31/12)1,869.77 5,456.88
2035086 10/31/12 11462 AEGIS ENGINEERING MGMT INC 1122 10/05/12 DEVELOPER PLANCHECKS (9/1/12-9/30/12)11,098.95
1035 10/05/12 PLAN CHECKING (9/1/12-9/30/12)409.73 11,508.68
2034766 10/03/12 07732 AIRGAS SPECIALTY PRODUCTS INC 131258478 09/07/12 AQUA AMMONIA 3,030.50
131258477 09/07/12 AQUA AMMONIA 1,683.74
131258480 09/07/12 AQUA AMMONIA 1,278.90
131258479 09/07/12 AQUA AMMONIA 404.26 6,397.40
2034923 10/17/12 07732 AIRGAS SPECIALTY PRODUCTS INC 131261119 09/28/12 AQUA AMMONIA 3,209.72
131261118 09/28/12 AQUA AMMONIA 1,209.28 4,419.00
2035013 10/24/12 13753 AIRGAS USA LLC 9905037683 09/30/12 BREATHING AIR 39.25 39.25
2034767 10/03/12 06261 ALCANTARA, CYNTHIA 003913 09/28/12 COMPUTER LOAN 1,886.44 1,886.44
2034840 10/10/12 14409 ALEGRIA REAL ESTATE FUND LLC Ref002424552 10/09/12 UB Refund Cst #0000187084 113.47 113.47
2035014 10/24/12 14425 ALEXANDER'S INC 003936 10/23/12 REFUND BID DEPOSIT 8,900.00 8,900.00
2035015 10/24/12 14446 ALEXANDRA VINSON Ref002424817 10/23/12 UB Refund Cst #0000186708 299.37 299.37
2034841 10/10/12 14406 ALEXIS VIVAS Ref002424549 10/09/12 UB Refund Cst #0000184658 21.14 21.14
2035016 10/24/12 14427 ALFREDO AGUILAR Ref002424795 10/23/12 UB Refund Cst #0000040039 33.78 33.78
2034842 10/10/12 02934 ALLEN INSTRUMENTS & SUPPLIES 0119965IN 09/17/12 GPS BASE STATION 13,678.86 13,678.86
2035087 10/31/12 02934 ALLEN INSTRUMENTS & SUPPLIES 0120451IN 10/05/12 EQUIPMENT REPAIR 905.38 905.38
2034924 10/17/12 02362 ALLIED WASTE SERVICES # 509 0509004935285 09/25/12 TRASH SERVICES (10/1/12-10/31/12)109.10 109.10
2034925 10/17/12 12911 ALTA LAND SURVEYING INC 22 09/28/12 SURVEY SERVICES (ENDING 9/28/12)18,400.00 18,400.00
2034843 10/10/12 06166 AMERICAN MESSAGING L1109570MJ 10/01/12 PAGER SERVICES (SEPT 2012)190.35 190.35
2035088 10/31/12 00453 AMERICAN RIGGING & SUPPLY 2187101 10/03/12 CHAIN SLING 481.64 481.64
Page 1 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034844 10/10/12 14378 ANDREA NORIEGA Ref002424520 10/09/12 UB Refund Cst #0000028268 30.19 30.19
2034768 10/03/12 00002 ANSWER INC 7278 09/22/12 ANSWERING SERVICES (MONTHLY)1,100.00 1,100.00
2034845 10/10/12 08967 ANTHEM BLUE CROSS EAP 41083 09/21/12 EMPLOYEE ASSISTANCE PROGRAM (OCT 2012)332.27 332.27
2035089 10/31/12 08967 ANTHEM BLUE CROSS EAP 41090 10/23/12 EMPLOYEE ASSISTANCE PROGRAM (NOV 2012)332.27 332.27
2034846 10/10/12 14386 ANTONIO GONZALEZ Ref002424529 10/09/12 UB Refund Cst #0000082268 92.98 92.98
2034769 10/03/12 03357 APEX ADVERTISING INC 123221 09/07/12 T-SHIRTS 284.68 284.68
2034847 10/10/12 12175 APPLE INC 003927 10/09/12 COMPUTER LOAN 1,399.20 1,399.20
2034770 10/03/12 03492 AQUA-METRIC SALES COMPANY 0044766IN 09/12/12 BY PASS METERS 1,930.36 1,930.36
2035017 10/24/12 14451 ASLAN RESIDENTIAL IV LLC Ref002424823 10/23/12 UB Refund Cst #0000189017 28.59 28.59
2034771 10/03/12 05758 AT&T 61967053090912 09/15/12 PHONE SERVICES (MONTHLY)32.18 32.18
2034772 10/03/12 07785 AT&T 000003662654 09/02/12 PHONE SERVICES (8/2/12-9/1/12)5,751.36
000003664872 09/02/12 PHONE SERVICES (8/2/12-9/1/12)15.85 5,767.21
2034926 10/17/12 05758 AT&T 082164572809251209/25/12 PHONE SERVICE (9/25/12-10/24/12)2,288.41
61942256050912 09/20/12 PHONE SERVICES (9/20/12-10/19/12)57.75
33784130450912 09/07/12 PHONE SERVICES (9/7/12-10/6/12)31.55 2,377.71
2034927 10/17/12 05758 AT&T 61969851400912 09/24/12 PHONE SERVICES (MONTHLY)32.18 32.18
2035090 10/31/12 05758 AT&T 33784130451012 10/29/12 PHONE SERVICES (10/7/12-11/6/12)31.55 31.55
2035091 10/31/12 07785 AT&T 000003744040 10/29/12 PHONE SERVICES (9/2/12-10/1/12)5,732.52
000003746258 10/29/12 PHONE SERVICES (9/2/12-10/1/12)15.57 5,748.09
2035092 10/31/12 08330 AT&T INTERNET SERVICES 8547826250912 09/22/12 INTERNET BANDWIDTH (9/21/12-10/20/12)2,028.00 2,028.00
2034928 10/17/12 12810 ATKINS 1150191 09/19/12 DESIGN SERVICES (PERIOD JULY 2012)18,598.00 18,598.00
2034773 10/03/12 11285 AZTEC FIRE & SAFETY INC 48186 09/10/12 SERVICE MAINTENANCE 564.02 564.02
2034929 10/17/12 11285 AZTEC FIRE & SAFETY INC 48212 09/24/12 RISER PIPE REPAIR 2,301.36 2,301.36
2035093 10/31/12 11285 AZTEC FIRE & SAFETY INC 48277 10/13/12 MIC TESTING 1,937.90 1,937.90
2034774 10/03/12 00586 BADGER METER INC 95912301 09/18/12 REGISTERS & HEAD ASSEMBLY 154.31 154.31
2035094 10/31/12 00586 BADGER METER INC 95912302 10/04/12 REGISTERS & HEAD ASSEMBLY 1,252.92
96095401 10/11/12 2" BADGER BY-PASS METER FOR 10" X 2"674.52 1,927.44
Page 2 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034775 10/03/12 00145 BARRETT ENGINEERED PUMPS 082033 CREDIT MEMO (669.13)
082222 09/11/12 ROTATING ASSEMBLY 8,162.06 7,492.93
2034930 10/17/12 00145 BARRETT ENGINEERED PUMPS 082367 09/19/12 DRUM PUMP 2,340.54 2,340.54
2035095 10/31/12 06834 BAUDVILLE INC 2467737 10/11/12 VISITOR BADGES 369.16 369.16
2034848 10/10/12 14412 BRENDAN THIESSEN Ref002424555 10/09/12 UB Refund Cst #0000188265 95.97 95.97
2034776 10/03/12 10970 BRENNTAG PACIFIC INC BPI232153 09/05/12 SODIUM HYPOCHLORITE 2,978.45
BPI234730 09/13/12 SODIUM HYPOCHLORITE 2,030.80
BPI233009 09/07/12 SODIUM HYPOCHLORITE 1,486.49
BPI235679 09/17/12 SODIUM HYPOCHLORITE 1,418.73
BPI234509 09/13/12 SODIUM HYPOCHLORITE 1,263.51
BPI231792 09/04/12 SODIUM HYPOCHLORITE 1,169.52
BPI235147 09/14/12 SODIUM HYPOCHLORITE 232.82
BPI234510 09/13/12 SODIUM HYPOCHLORITE 1,095.19
BPI231791 09/04/12 SODIUM HYPOCHLORITE 1,082.08
BPI233420 09/10/12 SODIUM HYPOCHLORITE 1,009.94
BPI235146 09/14/12 SODIUM HYPOCHLORITE 837.25
BPI233419 09/10/12 SODIUM HYPOCHLORITE 690.78
BPI235678 09/17/12 SODIUM HYPOCHLORITE 492.95 15,788.51
2034931 10/17/12 10970 BRENNTAG PACIFIC INC BPI239377 09/27/12 SODIUM HYPOCHLORITE 3,273.56
BPI237141 09/20/12 SODIUM HYPOCHLORITE 3,262.63
BPI238022 09/24/12 SODIUM HYPOCHLORITE 1,354.24
BPI239973 09/28/12 SODIUM HYPOCHLORITE 1,260.24
BPI237140 09/20/12 SODIUM HYPOCHLORITE 917.04
BPI238021 09/24/12 SODIUM HYPOCHLORITE 561.81 10,629.52
2035018 10/24/12 10970 BRENNTAG PACIFIC INC BPI240555 10/01/12 SODIUM HYPOCHLORITE 3,116.17
BPI240849 10/02/12 SODIUM HYPOCHLORITE 1,672.30
BPI240554 10/01/12 SODIUM HYPOCHLORITE 1,024.15 5,812.62
2035096 10/31/12 10970 BRENNTAG PACIFIC INC BPI243787 10/11/12 SODIUM HYPOCHLORITE 3,270.28
BPI241880 10/05/12 SODIUM HYPOCHLORITE 3,264.81
BPI243788 10/11/12 SODIUM HYPOCHLORITE 1,290.86
BPI242088 10/05/12 SODIUM HYPOCHLORITE 1,168.44
BPI242506 10/08/12 SODIUM HYPOCHLORITE 682.03
BPI242508 10/08/12 SODIUM HYPOCHLORITE 678.76
BPI241235 10/04/12 SODIUM HYPOCHLORITE 578.20
BPI242507 10/08/12 SODIUM HYPOCHLORITE 343.20 11,276.58
2035019 10/24/12 14440 BRETT HAGEN Ref002424809 10/23/12 UB Refund Cst #0000162402 24.42 24.42
2035020 10/24/12 14447 BRIAN HABIB Ref002424818 10/23/12 UB Refund Cst #0000187141 50.65 50.65
2035097 10/31/12 08156 BROWNSTEIN HYATT FARBER 516296 10/14/12 LEGAL SERVICES (THROUGH 9/30/12)1,755.00 1,755.00
Page 3 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034849 10/10/12 00906 C & M CRANE RENTAL INC 30860 08/28/12 CRANE RENTAL 684.80 684.80
2034777 10/03/12 00223 C W MCGRATH INC 43107 09/05/12 CRUSHED ROCK 117.74 117.74
2034932 10/17/12 00223 C W MCGRATH INC 43194 09/13/12 CRUSHED ROCK 159.30
43235 09/18/12 CRUSHED ROCK 108.54 267.84
2035098 10/31/12 00223 C W MCGRATH INC 43411 10/09/12 CRUSHED ROCK 289.48 289.48
2034778 10/03/12 11048 CABLE PIPE & LEAK DETECTION 461349 09/10/12 LEAK DETECTION SERVICES 570.00 570.00
2034779 10/03/12 02920 CALIFORNIA COMMERCIAL 120299 09/14/12 ASPHALT 2,475.75 2,475.75
2035099 10/31/12 02920 CALIFORNIA COMMERCIAL 121325 10/09/12 ASPHALT 2,065.18
121374 10/10/12 ASPHALT 795.54 2,860.72
2035100 10/31/12 00557 CALIFORNIA SPECIAL DISTRICTS 6061012 10/19/12 MEMBERSHIP DUES 4,925.00 4,925.00
2034933 10/17/12 01243 CALIFORNIA-NEVADA SECTION 2295 09/20/12 AWWA CONFERENCE 868.00
004631012 10/10/12 CERTIFICATE RENEWAL 80.00 948.00
2035021 10/24/12 14455 CANTER INTERNATIONAL RIVERSIDE Ref002424827 10/23/12 UB Refund Cst #0000193872 24.07 24.07
2034850 10/10/12 02758 CARMEL BUSINESS SYSTEMS INC 7534 06/29/12 RECORDS MANAGEMENT SERVICES 663.70
7535 07/01/12 RECORDS MANAGEMENT SERVICES 322.60
7572 09/01/12 RECORDS MANAGEMENT SERVICES 268.15
7554 08/01/12 RECORDS MANAGEMENT SERVICES 72.50 1,326.95
2035101 10/31/12 02758 CARMEL BUSINESS SYSTEMS INC 7582 10/01/12 RECORDS MANAGEMENT SERVICES 228.00
7583 10/01/12 RECORDS MANAGEMENT SERVICES 107.95 335.95
2034851 10/10/12 04653 CARO, PATRICIA 003924 10/02/12 COMPUTER LOAN 922.55 922.55
2034852 10/10/12 14422 CASEY RALSTON Ref002424565 10/09/12 UB Refund Cst #0000193871 41.44 41.44
2034853 10/10/12 14381 CESAR REAL Ref002424523 10/09/12 UB Refund Cst #0000059567 31.01 31.01
2035022 10/24/12 14438 CHAD DULAC Ref002424807 10/23/12 UB Refund Cst #0000158538 5.00 5.00
2035023 10/24/12 14442 CHRIS COLADILLA Ref002424811 10/23/12 UB Refund Cst #0000176763 48.58 48.58
2034854 10/10/12 13752 CHRISTENSEN, MICHAEL 003928 09/21/12 EMPLOYEE PROGRAM 141.59 141.59
2035024 10/24/12 14454 CHRISTINA BERNARD Ref002424826 10/23/12 UB Refund Cst #0000193500 98.84 98.84
2035102 10/31/12 01719 CHULA VISTA CHAMBER OF 12234 10/12/12 MEMBERSHIP RENEWAL 175.00 175.00
2035103 10/31/12 02026 CHULA VISTA ELEM SCHOOL DIST AR040979 10/10/12 GARDEN TOUR 810.00 810.00
Page 4 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034855 10/10/12 12631 CITY OF CHULA VISTA DE2416 10/02/12 PLAN CHECK/INSP SVCS DEP AC #DE-2416 1,500.77 1,500.77
2035104 10/31/12 00446 CITY OF CHULA VISTA APN5933824000101210/24/12 SECURED PROPERTY TAXES 148.98 148.98
2034856 10/10/12 14395 CLARENCE URI Ref002424538 10/09/12 UB Refund Cst #0000174768 19.29 19.29
2034857 10/10/12 14387 CLAUDIA HERNANDEZ Ref002424530 10/09/12 UB Refund Cst #0000087910 20.09 20.09
2034780 10/03/12 08160 COMPLETE OFFICE 14177290 09/04/12 OFFICE EQUIPMENT 326.48 326.48
2034858 10/10/12 08160 COMPLETE OFFICE 14182340 09/07/12 PRINTER CARTRIDGES - PUBLIC SERVICES 646.48 646.48
2034934 10/17/12 08160 COMPLETE OFFICE 14262700 09/26/12 TONER 1,527.38
14245190 09/25/12 OFFICE EQUIPMENT 326.48 1,853.86
2035105 10/31/12 08160 COMPLETE OFFICE 14275590 10/01/12 COPY PAPER 1,068.54 1,068.54
2035025 10/24/12 11056 CONCHAS, FREDERICK 003935 10/22/12 COMPUTER LOAN 1,387.43 1,387.43
2034935 10/17/12 12334 CORODATA MEDIA STORAGE INC DS1253151 09/30/12 TAPE STORAGE 314.86 314.86
2034859 10/10/12 00184 COUNTY OF SAN DIEGO DEH130052D11 09/21/12 SHUT DOWN TEST (8/23/12)994.00
DEH130056D11 09/21/12 SHUT DOWN TEST (8/20/12)923.00
DEH130054D11 09/21/12 SHUT DOWN TEST (8/6/12)497.00 2,414.00
2034936 10/17/12 00184 COUNTY OF SAN DIEGO HK072053640912 09/19/12 HAZMAT PERMIT (10/31/12-10/31/13)852.00
HK072053630912 09/19/12 HAZMAT PERMIT (10/31/12-10/31/13)670.00
HK072053650912 09/19/12 HAZMAT PERMIT (10/31/12-10/31/13)446.00 1,968.00
2034781 10/03/12 00099 COUNTY OF SAN DIEGO - DPW 159769 08/31/12 EXCAVATION PERMITS 4,365.64 4,365.64
2035026 10/24/12 14441 COURTNEY CAMERON Ref002424810 10/23/12 UB Refund Cst #0000174066 20.53 20.53
2034937 10/17/12 02756 COX COMMUNICATIONS SAN DIEGO 27170912 09/30/12 INTERNET SERVICES (9/29/12-10/28/12)1,500.00
28810912 09/30/12 INTERNET SERVICES (9/29/12-10/28/12)1,500.00 3,000.00
2034782 10/03/12 06415 CUMMINS CAL PACIFIC LLC 00419134 08/28/12 NETWORK CARD 1,505.82 1,505.82
2035027 10/24/12 14428 CYNTHIA SAMIN Ref002424797 10/23/12 UB Refund Cst #0000046679 95.01 95.01
2035106 10/31/12 04073 DATA BUSINESS SYSTEMS INC 91379 10/08/12 1099 & W2 FORMS 159.28 159.28
2035028 10/24/12 14456 DAVID BROWN Ref002424828 10/23/12 UB Refund Cst #0000194317 33.00 33.00
2034860 10/10/12 14408 DEBBIE WERMERS Ref002424551 10/09/12 UB Refund Cst #0000186689 248.83 248.83
2034938 10/17/12 03690 DEHESA SCHOOL DISTRICT 1201 10/15/12 GARDEN TOUR (9/14/12)118.50 118.50
Page 5 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034939 10/17/12 00319 DEPARTMENT OF PUBLIC HEALTH 243651012 10/09/12 CERTIFICATE RENEWAL 80.00 80.00
2034783 10/03/12 03417 DIRECTV 18715926908 09/19/12 SATELLITE TV 6.00 6.00
2035107 10/31/12 03417 DIRECTV 18834142375 10/05/12 SATELLITE TV 18.00
18940469578 10/19/12 SATELLITE TV 6.00 24.00
2035029 10/24/12 05134 DYCHITAN, MARISSA 003938 10/23/12 TUITION REIMBURSEMENT 907.95 907.95
2034861 10/10/12 14379 E ROTO Ref002424521 10/09/12 UB Refund Cst #0000031602 132.43 132.43
2034862 10/10/12 14411 EASTLAKE VILLAGE MARKETPLACE Ref002424554 10/09/12 UB Refund Cst #0000188040 1,805.74 1,805.74
2034940 10/17/12 02447 EDCO DISPOSAL CORPORATION 1554580912 09/30/12 RECYCLING SERVICES (SEPT 2012)90.00 90.00
2034863 10/10/12 14401 EDGAR I SAUCEDO Ref002424544 10/09/12 UB Refund Cst #0000183842 16.11 16.11
2034864 10/10/12 14400 EFREN VIZCARRA Ref002424543 10/09/12 UB Refund Cst #0000183575 140.76 140.76
2034865 10/10/12 14399 ELIZABETH IRIBE Ref002424542 10/09/12 UB Refund Cst #0000183112 34.08 34.08
2035030 10/24/12 14426 ELROY KIHANO Ref002424793 10/23/12 UB Refund Cst #0000028728 17.92 17.92
2034866 10/10/12 14382 ELVIRA GARCIA-SOTO Ref002424524 10/09/12 UB Refund Cst #0000067535 75.00 75.00
2035108 10/31/12 08023 EMPLOYEE BENEFIT SPECIALISTS 0058206IN 09/30/12 EMPLOYEE BENEFITS (SEPT 2012)672.50 672.50
2034784 10/03/12 03227 ENVIROMATRIX ANALYTICAL INC 2090527 09/17/12 RECYCLED WTR ANALYSIS (9/1/12-9/10/12)680.00
2090265 09/04/12 RECYCLED WTR ANALYSIS (8/17/12-8/24/12)545.00
2090389 09/10/12 RECYCLED WTR ANALYSIS (8/25/12-8/31/12)500.00 1,725.00
2034867 10/10/12 03227 ENVIROMATRIX ANALYTICAL INC 2010503 01/16/12 RECYCLED WTR ANALYSIS (1/1/12-1/6/12)485.00
2010502 01/16/12 RECYCLED WTR ANALYSIS (12/24/11-12/31/11)380.00 865.00
2034941 10/17/12 03227 ENVIROMATRIX ANALYTICAL INC 2090693 09/24/12 RECYCLED WTR ANALYSIS (9/11/12-9/13/12)290.00 290.00
2035109 10/31/12 03227 ENVIROMATRIX ANALYTICAL INC 2100264 10/01/12 RECYCLED WTR ANALYSIS (9/14/12-9/23/12)805.00
2100439 10/08/12 RECYCLED WTR ANALYSIS (9/22/12-10/1/12)655.00 1,460.00
2034785 10/03/12 03725 ENVIRONMENTAL SYSTEMS RESEARCH92540079 09/06/12 TECHNICAL SUPPORT 25,000.00 25,000.00
2034868 10/10/12 14397 ERNIE RIVERA Ref002424540 10/09/12 UB Refund Cst #0000177373 32.08 32.08
2034869 10/10/12 14398 ESTANCIA SOUTHWEST LLC Ref002424541 10/09/12 UB Refund Cst #0000182537 125.35 125.35
2035031 10/24/12 14443 ESTANCIA SOUTHWEST LLC Ref002424813 10/23/12 UB Refund Cst #0000182538 82.44 82.44
2034786 10/03/12 14320 EUROFINS EATON ANALYTICAL INC L0097005 09/04/12 OUTSIDE LAB SERVICES 750.00
L0096999 09/13/12 OUTSIDE LAB SERVICES 260.00
Page 6 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
L0095336 09/13/12 OUTSIDE LAB SERVICES 170.00
L0095337 09/13/12 OUTSIDE LAB SERVICES 170.00
L0096310 09/13/12 OUTSIDE LAB SERVICES 120.00
L0095335 09/13/12 OUTSIDE LAB SERVICES 70.00
L0096815 09/13/12 OUTSIDE LAB SERVICES 50.00
L0096313 09/13/12 OUTSIDE LAB SERVICES 50.00
L0097599 09/13/12 OUTSIDE LAB SERVICES 50.00 1,690.00
2035110 10/31/12 14320 EUROFINS EATON ANALYTICAL INC I0100583 CREDIT MEMO (169.00)
L0100354 10/02/12 OUTSIDE LAB SERVICES 424.00 255.00
2035032 10/24/12 14437 EVELIA KAHL Ref002424806 10/23/12 UB Refund Cst #0000154353 13.16 13.16
2034870 10/10/12 02639 EW TRUCK & EQUIPMENT 294414 08/13/12 REPAIR PART 2,828.44 2,828.44
2034787 10/03/12 00645 FEDEX 201742418 09/14/12 MAIL SERVICES (9/10/12)13.03 13.03
2034788 10/03/12 03546 FERGUSON WATERWORKS # 1083 0412622 09/11/12 CL-12 21,544.61
0416901 09/12/12 INVENTORY 3,404.67 24,949.28
2034942 10/17/12 03546 FERGUSON WATERWORKS # 1083 0415149 09/27/12 INVENTORY 4,784.10 4,784.10
2035111 10/31/12 03546 FERGUSON WATERWORKS # 1083 0419635 10/11/12 INVENTORY 4,256.13
0419351 10/11/12 SAMPLE STATION 377.13 4,633.26
2034789 10/03/12 13958 FIRETIDE INC 10153 05/29/12 FREIGHT 50.00 50.00
2034943 10/17/12 12187 FIRST AMERICAN DATA TREE LLC 90034092 09/30/12 ONLINE DOCUMENTS (SEPT 2012)99.00 99.00
2034944 10/17/12 05133 FIRST AMERICAN TITLE CO 978497842150 09/27/12 TITLE REPORTS 2,000.00 2,000.00
2034945 10/17/12 05133 FIRST AMERICAN TITLE CO 978497842148 09/27/12 TITLE REPORTS 1,000.00 1,000.00
2035033 10/24/12 05133 FIRST AMERICAN TITLE CO 978497842149 09/27/12 TITLE REPORTS 1,000.00 1,000.00
2034790 10/03/12 04066 FIRST CHOICE SERVICES - SD 196082 09/07/12 COFFEE SUPPLIES 428.05 428.05
2034946 10/17/12 04066 FIRST CHOICE SERVICES - SD 197724 09/24/12 COFFEE SUPPLIES 221.92
198761 09/25/12 COFFEE SUPPLIES 79.07 300.99
2035112 10/31/12 04066 FIRST CHOICE SERVICES - SD 200177 10/05/12 COFFEE SUPPLIES 295.46 295.46
2035113 10/31/12 02591 FITNESS TECH 8115 10/01/12 EQUIPMENT MAINTENANCE (OCT 2012)135.00 135.00
2034791 10/03/12 11962 FLEETWASH INC 3944624 09/14/12 VEHICLE WASH 280.32
3939584 09/07/12 VEHICLE WASH 254.04 534.36
2034947 10/17/12 11962 FLEETWASH INC 3946890 09/21/12 VEHICLE WASH 197.10 197.10
Page 7 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2035034 10/24/12 11962 FLEETWASH INC 3950747 09/28/12 VEHICLE WASH 424.86 424.86
2035114 10/31/12 11962 FLEETWASH INC x52643 10/05/12 VEHICLE WASH 201.48 201.48
2034871 10/10/12 01612 FRANCHISE TAX BOARD Ben2424580 10/11/12 BI-WEEKLY PAYROLL DEDUCTION 90.00 90.00
2034872 10/10/12 02344 FRANCHISE TAX BOARD Ben2424586 10/11/12 BI-WEEKLY PAYROLL DEDUCTION 81.00 81.00
2035035 10/24/12 01612 FRANCHISE TAX BOARD Ben2424846 10/25/12 BI-WEEKLY PAYROLL DEDUCTION 90.00 90.00
2035036 10/24/12 02344 FRANCHISE TAX BOARD Ben2424852 10/25/12 BI-WEEKLY PAYROLL DEDUCTION 81.00 81.00
2034873 10/10/12 14392 FRANCISCO BARRETO Ref002424535 10/09/12 UB Refund Cst #0000169939 7.62 7.62
2034948 10/17/12 07224 FRAZEE INDUSTRIES INC 9530271329250 09/19/12 PAINT SUPPLIES 159.48 159.48
2034949 10/17/12 13563 FRIENDS OF THE WATER 140 10/01/12 GARDEN COSTS (2ND QTR FY 2012-2013)25,521.00
145 09/30/12 GARDEN TOURS (SEPT 2012)2,480.00 28,001.00
2034792 10/03/12 03094 FULLCOURT PRESS 24386 08/10/12 NEWSLETTER 2012 3,732.69 3,732.69
2035115 10/31/12 14206 FURNITURE FOR THE OFFICE 12FF0110 10/02/12 FILE RACK SYSTEM SERVICE 1,485.69 1,485.69
2034793 10/03/12 10817 GEXPRO 580328324 09/13/12 GLOBAL CARE SUPPORT (7/14/12-7/13/13)1,000.69 1,000.69
2034950 10/17/12 10817 GEXPRO 580194391 09/24/12 CABLE PLC BATTERY 211.12 211.12
2034951 10/17/12 12008 GIERLICH-MITCHELL INC SD13369 09/27/12 CLARIFIER CHAIN 12,197.01 12,197.01
2035116 10/31/12 14245 GLASS & SCREENS ETC 92169 10/08/12 STOREFRONT WINDOW 5,040.00 5,040.00
2034794 10/03/12 00101 GRAINGER INC 9929071323 09/17/12 REPLACEMENT BREAKER 1,482.04
9929385772 09/17/12 INVENTORY 873.74
9929462357 09/17/12 WAREHOUSE STOCK 478.41
9929071315 09/17/12 REPLACEMENT BREAKER 433.89
9924482152 09/11/12 TOOLS FOR TRUCKS 367.67
9919185604 09/05/12 TOOLS FOR TRUCKS 127.08
9929385764 09/17/12 WAREHOUSE STOCK 108.74
9924568794 09/11/12 EFFLUENT SAMPLER PARTS 82.19
9924562755 09/11/12 EFFLUENT SAMPLER PARTS 15.02 3,968.78
2034952 10/17/12 00101 GRAINGER INC 9942765877 CREDIT MEMO (82.19)
9942765869 CREDIT MEMO (15.02)
9936086124 09/25/12 SUMP PUMPS 890.83
9937758994 09/27/12 PAINT SUPPLIES 230.09
9930458006 09/18/12 SUPPLIES 121.71
9938208510 09/27/12 MISC ELECTRICAL 87.23
9937238914 09/26/12 OIL PUMP 58.19
9939225141 09/28/12 TOOLS 41.84
Page 8 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
9939225125 09/28/12 TOOLS 20.92
9939225133 09/28/12 TOOLS 15.07 1,368.67
2035117 10/31/12 00101 GRAINGER INC 9941550981 10/02/12 TRUCK TOOLS #218 649.52
9941810526 10/02/12 WAREHOUSE SUPPLIES 463.50
9949421847 10/11/12 SMALL TOOLS 215.01
9941550973 10/02/12 TRUCK TOOLS 198.56
9944546077 10/05/12 BLUE PAINT 176.88
9940305999 10/01/12 PAINT FOR PUMPS 159.56 1,863.03
2035037 10/24/12 03289 GRANGER, WILLIAM 15711012 10/23/12 TRAVEL REIMBURSEMENT (10/3/12-10/5/12)105.44 105.44
2034953 10/17/12 12907 GREENRIDGE LANDSCAPE INC 9923 09/27/12 LANDSCAPING SERVICES (SEPT 2012)8,650.00 8,650.00
2034954 10/17/12 03773 GTC SYSTEMS INC 34194 09/30/12 NETWORK SERVICES (SEPT 2012)343.75 343.75
2035118 10/31/12 03773 GTC SYSTEMS INC 34213 10/01/12 NETWORK SERVICES (OCT 2012)3,173.00 3,173.00
2034795 10/03/12 00174 HACH COMPANY 7928950 09/06/12 HACH ANALYZERS 3,043.01 3,043.01
2034874 10/10/12 00174 HACH COMPANY 7919921 08/29/12 SAMPLER REPAIRS 667.35 667.35
2034955 10/17/12 00174 HACH COMPANY 7958839 09/25/12 LABORATORY SUPPLIES 2,360.06
7961248 09/26/12 LABORATORY SUPPLIES 1,036.60 3,396.66
2035038 10/24/12 02795 HARTFORD INSURANCE CO, THE Ben2424832 10/25/12 MONTHLY CONTRIBUTION TO LTD 5,428.92 5,428.92
2035119 10/31/12 05986 HAVS INCORPORATED 6878 10/16/12 BOARDROOM MAINTENANCE 2,700.00 2,700.00
2034956 10/17/12 00169 HAWTHORNE POWER SYSTEMS S4274601 09/24/12 NEW GEN SETS 54,036.63
PS100214564 09/26/12 REPAIR PARTS 1,735.31 55,771.94
2034957 10/17/12 02096 HELIX WATER DISTRICT 0000292401012 10/10/12 TEMPORARY METER (8/28/12-9/27/12)565.82 565.82
2035120 10/31/12 00062 HELIX WATER DISTRICT 178540011012 10/09/12 WATER PURCHASE (8/7/12-10/4/12)43.57
174639861012 10/09/12 WATER PURCHASE (8/7/12-10/8/12)40.10 83.67
2034958 10/17/12 06843 HI-TECH AIR CONDITIONING 26905 09/18/12 HVAC SERVICE 650.00 650.00
2035039 10/24/12 14070 HOMETEAM PROPERTY MGNT Ref002424819 10/23/12 UB Refund Cst #0000187687 32.31 32.31
2034796 10/03/12 12335 HP ENTERPRISE SERVICES LLC U2984948 09/11/12 CREDIT CARD PYMT SVC (AUG 2012)2,940.00 2,940.00
2035121 10/31/12 12335 HP ENTERPRISE SERVICES LLC U2996544 10/09/12 CREDIT CARD PYMT SVC 2,556.40 2,556.40
2035122 10/31/12 06511 HUDSON SAFE-T-LITE RENTALS 00012575 10/03/12 SAFETY EQUIPMENT 2,303.87 2,303.87
2034959 10/17/12 14250 I AM LOCKSMITH INC 5942 09/24/12 LOCKS 5,252.35 5,252.35
Page 9 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034960 10/17/12 01649 IDEXX DISTRIBUTION INC 262928390 09/25/12 LABORATORY SUPPLIES 13.56 13.56
2034797 10/03/12 08969 INFOSEND INC 61689 09/05/12 BILL PRINTING SERVICES (AUG 2012)5,189.60 5,189.60
2034875 10/10/12 08969 INFOSEND INC 61594 08/31/12 POSTAGE (AUG 2012)12,293.45 12,293.45
2035123 10/31/12 08969 INFOSEND INC 62292 09/28/12 POSTAGE (SEPT 2012)11,119.33
62386 10/02/12 BILL PRINTING SERVICES (SEPT 2012)5,268.60
62291 09/28/12 BILL PRINTING SERVICES (SEPT 2012)4,578.04 20,965.97
2034798 10/03/12 13644 INNOVYZE INC 1483576 09/04/12 SEWER INFO 10,500.00 10,500.00
2034961 10/17/12 14324 INTELLECT IT LLC 6211 09/21/12 NETWORK ENGINEERING (9/5/12-9/19/12)1,800.00 1,800.00
2035040 10/24/12 02372 INTERIOR PLANT SERVICE INC 2079 09/30/12 PLANT SERVICES (ENDING 9/30/12)186.00 186.00
2035124 10/31/12 13899 INTERMEDIA.NET INC 12100080 10/01/12 EXCHANGE OUTSOURCING (9/2/12-10/1/12)4,367.56 4,367.56
2035041 10/24/12 14433 IRENE MALABANAN Ref002424802 10/23/12 UB Refund Cst #0000083729 106.17 106.17
2034962 10/17/12 00646 JACKSON-HIRSH INC 0843116 09/27/12 LAMINATING SUPPLIES 176.48 176.48
2035042 10/24/12 14432 JANET KNISS Ref002424801 10/23/12 UB Refund Cst #0000068685 126.37 126.37
2034963 10/17/12 03077 JANI-KING OF CALIFORNIA INC SDO09120174 09/01/12 JANITORIAL SERVICES (SEPT 2012)1,119.82 1,119.82
2034799 10/03/12 10563 JCI JONES CHEMICALS INC 560321 CREDIT MEMO (2,000.00)
560290 09/13/12 CHLORINE 4,837.80 2,837.80
2035125 10/31/12 10563 JCI JONES CHEMICALS INC 563259 CREDIT MEMO (3,000.00)
563131 10/10/12 CHLORINE 4,837.80 1,837.80
2034876 10/10/12 14384 JEFF CARREON Ref002424527 10/09/12 UB Refund Cst #0000075059 140.04 140.04
2034877 10/10/12 14410 JEFF JENKEL Ref002424553 10/09/12 UB Refund Cst #0000187425 71.03 71.03
2035043 10/24/12 14430 JEFFREY SIEGEL Ref002424799 10/23/12 UB Refund Cst #0000049653 18.73 18.73
2034878 10/10/12 14396 JOCELYN WALRATH Ref002424539 10/09/12 UB Refund Cst #0000175514 100.00 100.00
2035044 10/24/12 14434 JOHN FISCHER Ref002424803 10/23/12 UB Refund Cst #0000086233 183.90 183.90
2035045 10/24/12 14450 JOHN STENBERG Ref002424822 10/23/12 UB Refund Cst #0000188463 31.68 31.68
2034879 10/10/12 14383 JONATHAN PACLEB Ref002424526 10/09/12 UB Refund Cst #0000073886 45.06 45.06
2034800 10/03/12 03172 JONES & STOKES ASSOCIATES INC 0089378 09/08/12 ENVIRONMENT CONSULTING (7/28/12-8/24/12)614.50 614.50
2034880 10/10/12 14385 JONNIE CORREA Ref002424528 10/09/12 UB Refund Cst #0000081383 49.48 49.48
Page 10 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2035046 10/24/12 08789 JOSE CASTILLO Ref002424794 10/23/12 UB Refund Cst #0000030901 128.19 128.19
2034801 10/03/12 12639 KAPISH NORTH AMERICA LLC 3065 09/10/12 TRIM IMPLEMENTATION (7/1/12-8/31/12)900.00 900.00
2034881 10/10/12 14405 KAREN REYES Ref002424548 10/09/12 UB Refund Cst #0000184411 147.55 147.55
2034882 10/10/12 14393 KB HOME COASTAL Ref002424536 10/09/12 UB Refund Cst #0000172036 1,928.55 1,928.55
2035047 10/24/12 14448 KILE DOUBRAVA Ref002424820 10/23/12 UB Refund Cst #0000187852 27.62 27.62
2034883 10/10/12 14415 KIMBERLY ROBEITSON Ref002424558 10/09/12 UB Refund Cst #0000188568 9.87 9.87
2034802 10/03/12 05840 KIRK PAVING INC 5191 09/17/12 PAVING SERVICES 6,654.00
5192 09/17/12 PAVING SERVICES 5,986.00
5190 09/17/12 PAVING SERVICES 4,986.00 17,626.00
2034964 10/17/12 05840 KIRK PAVING INC 5196 09/21/12 PAVING SERVICES 4,597.00
5225 09/28/12 PAVING SERVICES 4,105.00
5194 09/21/12 PAVING SERVICES 3,733.00
5213 09/24/12 PAVING SERVICES 3,389.00
5214 09/24/12 PAVING SERVICES 2,560.00
5197 09/21/12 PAVING SERVICES 2,118.00
5195 09/21/12 PAVING SERVICES 1,485.00 21,987.00
2034965 10/17/12 04996 KNOX ATTORNEY SERVICE INC 106022 09/30/12 DELIVERY SERVICES (8/31/12-9/14/12)211.75 211.75
2034803 10/03/12 14036 KRATOS / HBE 18090112 09/17/12 SOFTWARE SUPPORT 2,885.01
SM38108 07/13/12 ALARM MONITORING (MAY-JULY 2012)165.00
SM38106 07/13/12 ALARM MONITORING (MAY-JULY 2012)165.00
SM38107 07/13/12 ALARM MONITORING (MAY-JULY 2012)120.00
SM38867 09/14/12 ALARM MONITORING (SEPT 2012)55.00
SM38868 09/14/12 ALARM MONITORING (SEPT 2012)55.00
SM38869 09/14/12 ALARM MONITORING (SEPT 2012)40.00 3,485.01
2034966 10/17/12 14036 KRATOS / HBE SM39005 09/27/12 GATE REPAIR 320.00
SM39081 09/28/12 SECURITY MAINTENANCE 170.78
SM38876 09/20/12 LADDER MOTION DETECTOR REPAIR 150.00
SM39082 09/28/12 SECURITY ADJUSTMENTS 80.00 720.78
2035048 10/24/12 14276 KRISTA AZIZ Ref002424814 10/23/12 UB Refund Cst #0000184348 42.84 42.84
2034804 10/03/12 01859 LA PRENSA SAN DIEGO 23891 09/06/12 JOB POSTING 48.00 48.00
2034805 10/03/12 14247 LAB SUPPORT OAI2019626 09/06/12 TEMP EMPLOYEE SVCS (7/30/12-8/31/12)6,290.00 6,290.00
2034806 10/03/12 06497 LAKESIDE LAND COMPANY 265648 09/05/12 LANDFILL 317.28
265769 09/11/12 LANDFILL 296.80 614.08
Page 11 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2035126 10/31/12 06497 LAKESIDE LAND COMPANY 266406 10/11/12 LANDFILL 943.72
266346 10/09/12 LANDFILL 155.20 1,098.92
2035049 10/24/12 13470 LAS PALMAS 56 DEVELOPMENT LLC Ref002424812 10/23/12 UB Refund Cst #0000177376 69.56 69.56
2034807 10/03/12 09880 LEIGH, ROBERT 003914 09/28/12 COMPUTER LOAN 676.04 676.04
2034884 10/10/12 14388 LEO MENDOZA Ref002424531 10/09/12 UB Refund Cst #0000092915 42.34 42.34
2034967 10/17/12 07784 LICON, HECTOR 003932 10/15/12 SAFETY BOOTS 119.61 119.61
2035050 10/24/12 09236 LIFA FAATILIGA Ref002424796 10/23/12 UB Refund Cst #0000045597 28.59 28.59
2034885 10/10/12 06263 LINTNER, JERRY 003923 10/03/12 SAFETY BOOTS 146.79 146.79
2034808 10/03/12 14375 LORENE NICHOLS 003920 10/01/12 CLAIM SETTLEMENT 257.97 257.97
2035051 10/24/12 01054 LYNN'S LOCKSMITH SERVICE 277470 07/10/12 LOCKSMITH SERVICES 689.42 689.42
2034886 10/10/12 14419 M & C INVESTMENTS Ref002424562 10/09/12 UB Refund Cst #0000192933 121.58 121.58
2034887 10/10/12 09609 MARCELLE GARCIA Ref002424525 10/09/12 UB Refund Cst #0000070011 68.18 68.18
2034888 10/10/12 14394 MARIA MORALES Ref002424537 10/09/12 UB Refund Cst #0000174165 23.11 23.11
2035052 10/24/12 09152 MARIA RUBIO Ref002424792 10/23/12 UB Refund Cst #0000023141 12.89 12.89
2035053 10/24/12 14429 MARILYNN ZELJEZNJAK Ref002424798 10/23/12 UB Refund Cst #0000049066 34.96 34.96
2034889 10/10/12 14390 MARISA SANGREY Ref002424533 10/09/12 UB Refund Cst #0000146700 27.50 27.50
2034968 10/17/12 02902 MARSTON+MARSTON INC 2012101 10/01/12 COMMUNITY OUTREACH (SEPT 2012)5,000.00 5,000.00
2035054 10/24/12 02902 MARSTON+MARSTON INC 201292 09/04/12 COMMUNITY OUTREACH (AUG 2012)1,005.00 1,005.00
2035127 10/31/12 03792 MARTINEZ, STEPHEN 003948 10/29/12 SAFETY BOOTS 139.20 139.20
2034969 10/17/12 12004 MASTER METER SYSTEMS INC 0060827IN 09/28/12 EXTENDED WARRANTY 6,300.00 6,300.00
2034890 10/10/12 14377 MCMAHON STEEL COMPANY Ref002424519 10/09/12 UB Refund Cst #0000013718 32.45 32.45
2034809 10/03/12 01183 MCMASTER-CARR SUPPLY CO 36154320 09/05/12 SHOP STOCK 812.44
37071755 09/17/12 CASTER WHEELS 254.70 1,067.14
2034970 10/17/12 01183 MCMASTER-CARR SUPPLY CO 37490573 09/20/12 SAFETY GUARDS 756.67
37661900 09/24/12 HACH PARTS 216.15 972.82
2035128 10/31/12 01183 MCMASTER-CARR SUPPLY CO 38623328 10/05/12 ANCHORS / STRAINERS 265.58
38201085 10/01/12 MAINTENANCE ITEMS 231.90
Page 12 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
39021388 10/12/12 MATERIALS 179.74
38701732 10/08/12 ANCHORS / STRAINERS 148.72 825.94
2034810 10/03/12 01824 MERKEL & ASSOCIATES INC 12091701 09/17/12 ENVIRONMENTAL SERVICES (8/1/12-8/31/12)6,657.04 6,657.04
2034891 10/10/12 14389 MIGUEL MATHEWSON Ref002424532 10/09/12 UB Refund Cst #0000145470 20.37 20.37
2034811 10/03/12 14038 MILLER SPATIAL SERVICES LLC 1016 09/17/12 MAP BOOKS UPDATE 4,095.00 4,095.00
2034812 10/03/12 00237 MISSION JANITORIAL & ABRASIVE 32770200 09/11/12 JANITORIAL SUPPLIES 1,505.49 1,505.49
2034813 10/03/12 02371 MOODY'S INVESTORS SERVICE US12020329 09/19/12 ANNUAL FEE 96 COPS 5,500.00 5,500.00
2034892 10/10/12 03523 NATIONAL DEFERRED COMPENSATION Ben2424576 10/11/12 BI-WEEKLY DEFERRED COMP PLAN 7,438.15 7,438.15
2035055 10/24/12 03523 NATIONAL DEFERRED COMPENSATION Ben2424842 10/25/12 BI-WEEKLY DEFERRED COMP PLAN 8,138.15 8,138.15
2034971 10/17/12 09884 NATIONAL SAFETY COMPLIANCE INC 54393 09/30/12 RANDOM DRUG TESTING (SEPT 2012)461.75 461.75
2034814 10/03/12 13690 NEAL ELECTRIC CORP 57384 09/13/12 CONDUIT INSTALLATION 1,866.00 1,866.00
2035056 10/24/12 14457 NENITA BUENCAMINO Ref002424829 10/23/12 UB Refund Cst #0000194352 53.89 53.89
2035057 10/24/12 14449 NESLI IBRAHIM Ref002424821 10/23/12 UB Refund Cst #0000188185 203.80 203.80
2034972 10/17/12 00745 NEWARK 22760834 09/27/12 5PIN RELAYS 471.19 471.19
2035058 10/24/12 14458 NOBLE REAL ESTATE Ref002424830 10/23/12 UB Refund Cst #0000194722 32.74 32.74
2035129 10/31/12 08656 NORTH STATE ENVIRONMENTAL 203405 10/03/12 WASTE DISPOSAL 302.97 302.97
2034815 10/03/12 00510 OFFICE DEPOT INC 624901909001 09/14/12 TONER 572.96
623641747002 09/10/12 OFFICE SUPPLIES 118.51
623641747001 09/06/12 OFFICE SUPPLIES 29.19
623642218001 09/05/12 OFFICE SUPPLIES 11.84 732.50
2034973 10/17/12 00510 OFFICE DEPOT INC 626079132001 09/24/12 OFFICE SUPPLIES 255.49 255.49
2035130 10/31/12 00510 OFFICE DEPOT INC 628320362001 10/10/12 TONER 320.63
628623250001 10/12/12 OFFICE SUPPLIES 185.87
628175991001 10/09/12 OFFICE SUPPLIES 88.71
627620755001 10/04/12 ELECTRIC STAMPER 72.82
628624318001 10/13/12 OFFICE SUPPLIES 44.93 712.96
2034974 10/17/12 03149 ON SITE LASER LLC 47069 09/22/12 PRINTER SERVICES 279.11
47048 09/18/12 PRINTER SERVICES 79.00 358.11
2034816 10/03/12 13115 ONESOURCE DISTRIBUTORS LLC S3852536002 09/10/12 SAFETY EQUIPMENT 189.42
S3852536001 09/05/12 SAFETY EQUIPMENT 28.93 218.35
Page 13 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034975 10/17/12 13115 ONESOURCE DISTRIBUTORS LLC S3852536003 09/18/12 SAFETY EQUIPMENT 243.08
S3852536004 09/28/12 SAFETY EQUIPMENT 103.98 347.06
2035131 10/31/12 01718 OTAY MESA CHAMBER OF COMMERCE 003942 04/04/12 MEMBERSHIP RENEWAL 600.00 600.00
2034893 10/10/12 03101 OTAY WATER DISTRICT Ben2424572 10/11/12 BI-WEEKLY PAYROLL DEDUCTION 693.00 693.00
2035059 10/24/12 03101 OTAY WATER DISTRICT Ben2424838 10/25/12 BI-WEEKLY PAYROLL DEDUCTION 686.00 686.00
2034976 10/17/12 05118 OTIS ELEVATOR COMPANY SD04041912 08/20/12 ELEVATOR MAINTENANCE (SEPT 2012)458.58 458.58
2034817 10/03/12 01002 PACIFIC PIPELINE SUPPLY 155535 09/13/12 2" CORP 1,961.05
155525 09/07/12 6" SCH 90 317.86
155536 09/13/12 INVENTORY 85.66 2,364.57
2034977 10/17/12 01002 PACIFIC PIPELINE SUPPLY 154629 08/07/12 CHECK VALVES 5,328.24
155830 09/25/12 LG METER TESTING 1,646.60
155829 09/25/12 INVENTORY 463.33
155065 08/07/12 DIGGING BARS 213.35
155817 09/19/12 INVENTORY 130.05
155824 09/25/12 INVENTORY 130.05
155833 09/25/12 INVENTORY 79.20 7,990.82
2035132 10/31/12 01002 PACIFIC PIPELINE SUPPLY 156327 10/09/12 INVENTORY 3,597.77
156326 10/09/12 INVENTORY 2,327.40 5,925.17
2034894 10/10/12 14183 PACIFIC SAFETY CENTER 69373 08/31/12 RESPIRATOR FIT TESTING 250.00 250.00
2034895 10/10/12 14417 PAIGE BLOMQUIST Ref002424560 10/09/12 UB Refund Cst #0000188834 68.79 68.79
2034896 10/10/12 14407 PARISH INVESTMENTS LP Ref002424550 10/09/12 UB Refund Cst #0000184672 75.00 75.00
2035060 10/24/12 14444 PATHFINDER RAINTREE 2 Ref002424815 10/23/12 UB Refund Cst #0000186397 44.88 44.88
2035061 10/24/12 14453 PATRICIA MCKELVEY Ref002424825 10/23/12 UB Refund Cst #0000193405 85.56 85.56
2035062 10/24/12 14439 PATRICIA WELLING Ref002424808 10/23/12 UB Refund Cst #0000159623 82.07 82.07
2034897 10/10/12 14413 PATTI MCKELVEY Ref002424556 10/09/12 UB Refund Cst #0000188288 152.95 152.95
2034818 10/03/12 05497 PAYPAL INC 19053472 08/31/12 PHONE PAYMENT SERVICES (AUG 2012)54.10 54.10
2034978 10/17/12 05497 PAYPAL INC 19601182 09/30/12 PHONE PAYMENT SERVICES (SEPT 2012)54.10 54.10
2034979 10/17/12 12472 PCNATION P051324501011 09/25/12 1500VA UPS 2,170.70 2,170.70
2035133 10/31/12 00227 PELL MELL SUPPLY 67765 10/02/12 STAINLESS STEEL BOLTS 281.12 281.12
Page 14 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034819 10/03/12 03790 PENHALL COMPANY 31723 09/14/12 SAW CUTTING SERVICES 420.00 420.00
2034980 10/17/12 03790 PENHALL COMPANY 31749 09/18/12 CORE DRILL @ 944-1 P/S 272.50 272.50
2034898 10/10/12 00137 PETTY CASH CUSTODIAN 003926 10/09/12 PETTY CASH 392.49 392.49
2035134 10/31/12 00137 PETTY CASH CUSTODIAN 003947 10/30/12 PETTY CASH 577.44 577.44
2034899 10/10/12 00053 PITNEY BOWES INC 500130 09/03/12 POSTAGE METER RENTAL (OCT-DEC 2012)206.88 206.88
2034981 10/17/12 10819 PREDICTIVE MAINTENANCE 1738 09/28/12 VIBRATION TESTING SERVICE 6,360.00 6,360.00
2034900 10/10/12 14404 PREMIUM REALTY SERVICES INC Ref002424547 10/09/12 UB Refund Cst #0000184258 27.97 27.97
2034820 10/03/12 07346 PRIME ELECTRICAL SERVICES INC 10636 09/13/12 CAT6 INSTALL 700.00 700.00
2034982 10/17/12 07346 PRIME ELECTRICAL SERVICES INC 10663 09/20/12 SOLAR INSTALL 4,983.00 4,983.00
2034983 10/17/12 13059 PRIORITY BUILDING SERVICES 32063 09/01/12 JANITORIAL SERVICES (SEPT 2012)3,504.00 3,504.00
2034821 10/03/12 06641 PRUDENTIAL OVERALL SUPPLY 30285588 09/06/12 UNIFORMS, TOWELS & MATS 426.25
30287114 09/13/12 UNIFORMS, TOWELS & MATS 424.42
30285587 09/06/12 UNIFORMS, TOWELS & MATS 207.95
30287113 09/13/12 UNIFORMS, TOWELS & MATS 207.95
30285589 09/06/12 UNIFORMS, TOWELS & MATS 173.33
30287115 09/13/12 UNIFORMS, TOWELS & MATS 173.33
30284670 09/04/12 UNIFORMS, TOWELS & MATS 126.08
30284671 09/04/12 UNIFORMS, TOWELS & MATS 124.04
30286493 09/11/12 UNIFORMS, TOWELS & MATS 124.04
30285590 09/06/12 UNIFORMS, TOWELS & MATS 58.15
30287116 09/13/12 UNIFORMS, TOWELS & MATS 56.15
30286492 09/11/12 UNIFORMS, TOWELS & MATS 52.76 2,154.45
2034984 10/17/12 06641 PRUDENTIAL OVERALL SUPPLY 30290129 09/27/12 UNIFORMS, TOWELS & MATS 395.03
30288631 09/20/12 UNIFORMS, TOWELS & MATS 383.26
30288630 09/20/12 UNIFORMS, TOWELS & MATS 207.95
30290128 09/27/12 UNIFORMS, TOWELS & MATS 207.95
30288632 09/20/12 UNIFORMS, TOWELS & MATS 173.33
30290130 09/27/12 UNIFORMS, TOWELS & MATS 173.33
30288019 09/18/12 UNIFORMS, TOWELS & MATS 124.04
30289533 09/25/12 UNIFORMS, TOWELS & MATS 124.04
30290131 09/27/12 UNIFORMS, TOWELS & MATS 68.09
30288633 09/20/12 UNIFORMS, TOWELS & MATS 56.15
30288018 09/18/12 UNIFORMS, TOWELS & MATS 44.71
30289532 09/25/12 UNIFORMS, TOWELS & MATS 44.71 2,002.59
2035135 10/31/12 06641 PRUDENTIAL OVERALL SUPPLY 30291657 10/04/12 UNIFORMS, TOWELS & MATS 434.56
30293163 10/11/12 UNIFORMS, TOWELS & MATS 378.52
30291656 10/04/12 UNIFORMS, TOWELS & MATS 207.95
Page 15 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
30293162 10/11/12 UNIFORMS, TOWELS & MATS 207.95
30291658 10/04/12 UNIFORMS, TOWELS & MATS 173.33
30293164 10/11/12 UNIFORMS, TOWELS & MATS 173.33
30291041 10/02/12 UNIFORMS, TOWELS & MATS 124.04
30292562 10/09/12 UNIFORMS, TOWELS & MATS 124.04
30293165 10/11/12 UNIFORMS, TOWELS & MATS 57.15
30291659 10/04/12 UNIFORMS, TOWELS & MATS 56.15
30291040 10/02/12 UNIFORMS, TOWELS & MATS 44.71
30292561 10/09/12 UNIFORMS, TOWELS & MATS 44.71 2,026.44
2034822 10/03/12 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2424245 09/27/12 BI-WEEKLY PERS CONTRIBUTION 158,638.69 158,638.69
2034985 10/17/12 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2424570 10/11/12 BI-WEEKLY PERS CONTRIBUTION 158,793.43 158,793.43
2035136 10/31/12 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2424836 10/25/12 BI-WEEKLY PERS CONTRIBUTION 158,913.25 158,913.25
2034823 10/03/12 01342 R J SAFETY SUPPLY CO INC 30506100 09/12/12 SAFETY JACKETS 118.53 118.53
2034986 10/17/12 01342 R J SAFETY SUPPLY CO INC 30574300 09/28/12 EOC SUPPLIES 2,004.15
30583600 09/28/12 SAFETY SUPPLIES 658.03
30470200 09/26/12 HIP PAC REPAIR 152.98 2,815.16
2035137 10/31/12 01342 R J SAFETY SUPPLY CO INC 30583601 10/03/12 SAFETY SUPPLIES 416.88 416.88
2034901 10/10/12 14418 RAUL PEREZ Ref002424561 10/09/12 UB Refund Cst #0000188956 7.47 7.47
2035063 10/24/12 14436 RECON ENVIRONMENTAL Ref002424805 10/23/12 UB Refund Cst #0000126180 929.36 929.36
2034987 10/17/12 03525 REFRIGERATION ENGINEERING 43912 09/27/12 ICE MACHINE REPAIR 740.84 740.84
2034902 10/10/12 14380 RICHARD WEST Ref002424522 10/09/12 UB Refund Cst #0000040519 32.77 32.77
2034988 10/17/12 00521 RICK POST WELDING &9308 09/24/12 field welding- test ports on large 1,370.00 1,370.00
2034903 10/10/12 14414 RISING REALTY Ref002424557 10/09/12 UB Refund Cst #0000188423 32.91 32.91
2035064 10/24/12 03741 RIVAS, JUAN 003939 10/16/12 SAFETY BOOTS 146.79 146.79
2034824 10/03/12 14255 RK CONTROLS 0059624 09/13/12 LEVEL SENSOR 1,090.61 1,090.61
2035065 10/24/12 14431 RODOLFO QUIROZ Ref002424800 10/23/12 UB Refund Cst #0000066862 210.21 210.21
2035066 10/24/12 06412 ROMERO, TANYA 003937 10/23/12 COMPUTER LOAN 499.00 499.00
2034904 10/10/12 14423 ROSS MAGBANUA Ref002424566 10/09/12 UB Refund Cst #0000194106 26.13 26.13
2034905 10/10/12 14416 ROSS MARKOWITZ Ref002424559 10/09/12 UB Refund Cst #0000188784 98.76 98.76
2034989 10/17/12 02620 ROTORK CONTROLS INC RSI42555 09/21/12 AQ ACTUATORS REPAIR 540.00 540.00
Page 16 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2035138 10/31/12 02620 ROTORK CONTROLS INC CI05568 10/11/12 ROTORK ACTUATOR 3,792.80 3,792.80
2034825 10/03/12 00217 RW LITTLE CO INC 109496 09/04/12 POWDER COAT 320.00 320.00
2035139 10/31/12 00362 RYAN HERCO PRODUCTS CORP 7487028 10/10/12 GF UNIONS 97.38 97.38
2034990 10/17/12 05130 SAFARI MICRO INC 221011 09/14/12 MEDIA STORAGE 3,030.47 3,030.47
2034991 10/17/12 10930 SAGE DESIGNS INC 1209465 09/19/12 FIRETIDE BRIDGE 8,215.33 8,215.33
2034826 10/03/12 13204 SAIC ENERGY ENVIR & INFRAS LLC 05906 09/17/12 CONSTRUCTION MGMT (ENDING 8/31/12)10,855.61 10,855.61
2035140 10/31/12 13204 SAIC ENERGY ENVIR & INFRAS LLC 05938 10/09/12 CONSTRUCTION MGMT (ENDING 9/28/12)3,341.81 3,341.81
2034906 10/10/12 14403 SAKALI IATA Ref002424546 10/09/12 UB Refund Cst #0000183865 10.69 10.69
2035141 10/31/12 12470 SAN DIEGO BUSINESS JOURNAL SD1246141012 10/24/12 SUBSCRIPTION RENEWAL 99.00
SD5291801012 10/23/12 SUBSCRIPTION RENEWAL 69.00 168.00
2034907 10/10/12 11596 SAN DIEGO CONSTRUCTION WELDING 8544 09/10/12 WELDING SERVICES 340.00 340.00
2034992 10/17/12 11596 SAN DIEGO CONSTRUCTION WELDING 8556 09/20/12 WELDING SERVICES 467.50
8559 09/20/12 WELDING SERVICES 85.00 552.50
2035142 10/31/12 11596 SAN DIEGO CONSTRUCTION WELDING 8571 10/01/12 WELDING SERVICES 2,610.00 2,610.00
2034827 10/03/12 02586 SAN DIEGO COUNTY ASSESSOR 2012070 09/06/12 ASSESSOR DATA (AUG 2012)125.00 125.00
2035143 10/31/12 02586 SAN DIEGO COUNTY ASSESSOR 2012085 10/09/12 ASSESSOR DATA (MONTHLY)125.00 125.00
2034993 10/17/12 00003 SAN DIEGO COUNTY WATER 0000000602 09/25/12 SOCAL WATERSMART (AUG 2012)2,405.85 2,405.85
2034828 10/03/12 13712 SAN DIEGO FREIGHT LINER W31416a 06/29/12 DUMP TRUCK 31,798.10 31,798.10
2034829 10/03/12 00121 SAN DIEGO GAS & ELECTRIC 003912 09/18/12 UTILITY EXPENSES (MONTHLY)35,117.15 35,117.15
2034908 10/10/12 00121 SAN DIEGO GAS & ELECTRIC 003917 09/26/12 UTILITY EXPENSES (MONTHLY)64,855.29
003918 09/24/12 UTILITY EXPENSES (MONTHLY)46,745.38
003919 09/21/12 UTILITY EXPENSES (MONTHLY)825.01 112,425.68
2034994 10/17/12 00121 SAN DIEGO GAS & ELECTRIC 003929 10/03/12 UTILITY EXPENSES (MONTHLY)82,324.17
003931 10/03/12 UTILITY EXPENSES (MONTHLY)7,729.84
003930 09/24/12 UTILITY EXPENSES (MONTHLY)108.81 90,162.82
2035144 10/31/12 00121 SAN DIEGO GAS & ELECTRIC 003941 10/17/12 UTILITY EXPENSES (MONTHLY)32,655.58 32,655.58
2035067 10/24/12 14452 SDREOSOLD Ref002424824 10/23/12 UB Refund Cst #0000193361 75.00 75.00
Page 17 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2034995 10/17/12 12904 SEPULVEDA CONSTRUCTION INC 5A 09/21/12 30 INCH PIPELINE (ENDING 8/31/12)53,669.30
13 09/21/12 PUMP STATION UPGRADES (ENDING 8/31/12)36,477.08 90,146.38
2035145 10/31/12 12904 SEPULVEDA CONSTRUCTION INC 6A 10/09/12 30 INCH PIPELINE (ENDING 9/30/12)89,316.70 89,316.70
2034830 10/03/12 01651 SHARP REES-STEALY MEDICAL CTRS 252 09/19/12 HEALTH EXAMS (8/13/12-8/22/12)309.50 309.50
2034831 10/03/12 11516 SIEMENS INDUSTRY INC 900907837 09/17/12 MAINTENANCE PARTS 2,278.96 2,278.96
2034996 10/17/12 11516 SIEMENS INDUSTRY INC 900932081 09/30/12 MAINTENANCE PARTS 2,301.87
900907903 09/17/12 V75 CHLORINATOR 299.81
900919463 09/24/12 PROCESSING TANK 40.00 2,641.68
2035068 10/24/12 11516 SIEMENS INDUSTRY INC 900932082 09/30/12 MAINTENANCE PARTS 855.12 855.12
2035146 10/31/12 04544 SIGN CRAFTERS 120222 10/11/12 VINYL SIGNS 108.29 108.29
2035069 10/24/12 13327 SILVA SILVA INTERNATIONAL 1210 10/10/12 PROJECT CONSULTANT (SEPT 2012)4,000.00 4,000.00
2035147 10/31/12 12281 SIR SPEEDY PRINTING 3542 10/04/12 BUSINESS CARDS 41.63
3583 10/11/12 BUSINESS CARDS 38.63 80.26
2034909 10/10/12 05201 SOCIETY FOR MARKETING 003925 10/02/12 LEADER BUSINESS WORKSHOP 500.00 500.00
2034997 10/17/12 03103 SOUTHCOAST HEATING &C49424 09/17/12 AC MAINTENANCE (SEPT 2012)1,068.00 1,068.00
2034998 10/17/12 14373 SOUTHERN PACIFIC TITLE CO 2067 09/27/12 TITLE REPORTS 750.00 750.00
2034910 10/10/12 14421 SOUTHLAND PAVING INC Ref002424564 10/09/12 UB Refund Cst #0000193556 1,174.83 1,174.83
2034832 10/03/12 03760 SPANKY'S PORTABLE SERVICES INC 926529 09/14/12 PORTABLE TOILET RENTAL(9/13/12-10/10/12)98.15
925402 09/05/12 PORTABLE TOILET RENTAL (9/5/12-10/2/12)79.96 178.11
2034999 10/17/12 03760 SPANKY'S PORTABLE SERVICES INC 927229 09/21/12 PORTABLE TOILET RENTAL (9/21/12-10/18/12)79.96
927230 09/21/12 PORTABLE TOILET RENTAL (9/21/12-10/18/12)79.96
927363 09/24/12 PORTABLE TOILET RENTAL (9/22/12-10/19/12)79.96
927228 09/21/12 PORTABLE TOILET RENTAL (9/21/12-10/18/12)79.96 319.84
2035148 10/31/12 03760 SPANKY'S PORTABLE SERVICES INC 929291 10/12/12 PORTABLE TOILET RENTAL (10/11/12-11/7/12)98.15
928481 10/03/12 PORTABLE TOILET RENTAL (10/3/12-10/30/12)79.96 178.11
2035149 10/31/12 09711 SPATIAL WAVE INC 11064852 10/02/12 GIS TECHNICAL SUPPORT 1,920.00 1,920.00
2035000 10/17/12 03516 SPECIAL DISTRICT RISK 41623 10/01/12 PROPERTY & LIABILITY PROGRAM (ANNUAL)6,053.56 6,053.56
2035070 10/24/12 01717 SPRING VALLEY CHAMBER OF 34601 10/05/12 SPONSORSHIP 500.00 500.00
2035071 10/24/12 06510 SPRINT NEXTEL 901500243073 10/12/12 WIRELESS SERVICES (9/9/12-10/8/12)3,525.15 3,525.15
Page 18 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2035001 10/17/12 02354 STANDARD ELECTRONICS 17463 09/28/12 SECURITY MONITORING (MONTHLY)1,352.50 1,352.50
2035150 10/31/12 02354 STANDARD ELECTRONICS 17514 10/05/12 SECURITY MONITORING 1,352.50 1,352.50
2034833 10/03/12 07448 STANLEY STEEMER 1183510 09/11/12 CARPET CLEANING 1,503.00 1,503.00
2034834 10/03/12 13564 STAR-NEWS PUBLISHING CO, THE 00011334 09/07/12 JOB POSTING 126.00 126.00
2034911 10/10/12 06281 STATE DISBURSEMENT UNIT Ben2424584 10/11/12 BI-WEEKLY PAYROLL DEDUCTION 415.38 415.38
2034912 10/10/12 06299 STATE DISBURSEMENT UNIT Ben2424578 10/11/12 BI-WEEKLY PAYROLL DEDUCTION 237.69 237.69
2034913 10/10/12 06303 STATE DISBURSEMENT UNIT Ben2424582 10/11/12 BI-WEEKLY PAYROLL DEDUCTION 802.15 802.15
2034914 10/10/12 08533 STATE DISBURSEMENT UNIT Ben2424588 10/11/12 BI-WEEKLY PAYROLL DEDUCTION 253.85 253.85
2035072 10/24/12 06281 STATE DISBURSEMENT UNIT Ben2424850 10/25/12 BI-WEEKLY PAYROLL DEDUCTION 415.38 415.38
2035073 10/24/12 06299 STATE DISBURSEMENT UNIT Ben2424844 10/25/12 BI-WEEKLY PAYROLL DEDUCTION 237.69 237.69
2035074 10/24/12 06303 STATE DISBURSEMENT UNIT Ben2424848 10/25/12 BI-WEEKLY PAYROLL DEDUCTION 802.15 802.15
2035075 10/24/12 08533 STATE DISBURSEMENT UNIT Ben2424854 10/25/12 BI-WEEKLY PAYROLL DEDUCTION 253.85 253.85
2034835 10/03/12 03738 STEVEN ENTERPRISES INC 0291446IN 09/12/12 BOND PAPER - ENGINEERING 159.30 159.30
2035002 10/17/12 03738 STEVEN ENTERPRISES INC 0291739IN 09/19/12 INK CARTRIDGES - ENGINEERING 120.68 120.68
2034915 10/10/12 14420 STUART MARVIN Ref002424563 10/09/12 UB Refund Cst #0000193272 27.40 27.40
2035151 10/31/12 12809 STUTZ ARTIANO SHINOFF 89473 09/27/12 LEGAL SERVICES (AUG 2012)22,390.35 22,390.35
2035003 10/17/12 02376 TECHKNOWSION INC 2423 09/28/12 SCADA MODIFICATION 12,956.00 12,956.00
2035152 10/31/12 02376 TECHKNOWSION INC 2426 10/12/12 SCADA PROGRAMMING 1,620.00 1,620.00
2035153 10/31/12 06847 THIRD AVENUE VILLAGE ASSN 003946 10/22/12 PARADE ENTRY FEE 150.00 150.00
2035076 10/24/12 14461 TICOR TITLE CO OF CA 003940 10/23/12 CUSTOMER REFUND 328.19 328.19
2035004 10/17/12 00870 TRANSCAT INC 678834 09/28/12 INSTRUMENTS CALIBRATIONS 689.68 689.68
2035154 10/31/12 00427 UNDERGROUND SERVICE ALERT OF 920120476 10/01/12 UNDERGROUND ALERTS (SEPT 2012)322.50 322.50
2034836 10/03/12 14181 UNITED RENTALS (NORTH AMERICA)105369806001 09/05/12 CONCRETE 159.47
105553355001 09/12/12 CONCRETE 139.00 298.47
2035005 10/17/12 14181 UNITED RENTALS (NORTH AMERICA)105811109001 09/21/12 CONCRETE 114.22 114.22
Page 19 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2035155 10/31/12 14181 UNITED RENTALS (NORTH AMERICA)106277803001 10/10/12 CONCRETE 177.79 177.79
2035077 10/24/12 07662 UNITEDHEALTHCARE SPECIALTY 122980000044 10/24/12 AD&D & SUPP LIFE INS (NOV 2012)5,631.10 5,631.10
2034837 10/03/12 07674 US BANK CORPORATE PAYMENT A000026 07/23/12 CAL CARD EXPENSES (MONTHLY)8,335.15
003915 08/22/12 CAL CARD EXPENSES (MONTHLY)629.26 8,964.41
2034916 10/10/12 07674 US BANK CORPORATE PAYMENT E000019 09/24/12 CAL CARD EXPENSES (MONTHLY)412.39
E000018 09/24/12 CAL CARD EXPENSES (MONTHLY)136.01 548.40
2035006 10/17/12 07674 US BANK CORPORATE PAYMENT A000031 08/22/12 CAL CARD EXPENSES (MONTHLY)6,569.29 6,569.29
2035078 10/24/12 07674 US BANK CORPORATE PAYMENT O0000000017 09/24/12 CAL CARD EXPENSES (MONTHLY)15,145.90
O0000000018 10/23/12 CAL CARD EXPENSES (MONTHLY)125.00 15,270.90
2035156 10/31/12 07674 US BANK CORPORATE PAYMENT a000032 09/24/12 CAL CARD EXPENSES (MONTHLY)4,669.03
003945 09/24/12 CAL CARD EXPENSES (MONTHLY)2,735.09
E000020 10/22/12 CAL CARD EXPENSES (MONTHLY)244.00
003943 09/24/12 CAL CARD EXPENSES (MONTHLY)28.49 7,676.61
2035079 10/24/12 08402 US POSTMASTER 4129 09/04/12 POSTAGE 10,188.80 10,188.80
2034838 10/03/12 11606 USA BLUE BOOK 766944 09/12/12 EFFLUENT PARTS 577.20 577.20
2035157 10/31/12 03190 VALCO INSTRUMENTS CO INC 90198393 10/01/12 HACH PARTS 4,393.04 4,393.04
2035080 10/24/12 08028 VALLEY CONSTRUCTION MANAGEMENTSD100127 09/30/12 CONSTRUCTION MANAGEMENT (9/1/12-9/30/12)9,585.00 9,585.00
2034917 10/10/12 14402 VALORIE HALLOCK Ref002424545 10/09/12 UB Refund Cst #0000183863 7.27 7.27
2034918 10/10/12 01095 VANTAGEPOINT TRANSFER AGENTS Ben2424568 10/11/12 BI-WEEKLY DEFERRED COMP PLAN 15,008.59 15,008.59
2034919 10/10/12 06414 VANTAGEPOINT TRANSFER AGENTS Ben2424574 10/11/12 BI-WEEKLY 401A PLAN 1,529.00 1,529.00
2035081 10/24/12 01095 VANTAGEPOINT TRANSFER AGENTS Ben2424834 10/25/12 BI-WEEKLY DEFERRED COMP PLAN 14,733.77 14,733.77
2035082 10/24/12 06414 VANTAGEPOINT TRANSFER AGENTS Ben2424840 10/25/12 BI-WEEKLY 401A PLAN 1,289.00 1,289.00
2034920 10/10/12 03329 VERIZON WIRELESS 1121886428 09/21/12 WIRELESS SERVICES (8/22/12-9/21/12)6,493.76 6,493.76
2035083 10/24/12 07670 VOLVO ROAD MACHINERY INC N501000363 09/25/12 LIGHT TOWER REPLACEMENT 10,451.75 10,451.75
2035158 10/31/12 07595 WALTERS WHOLESALE ELECTRIC CO 874609000 10/05/12 944-1 WIRE 1,312.40 1,312.40
2035159 10/31/12 00264 WATER ENVIRONMENT FEDERATION 9000126648 10/11/12 MEMBERSHIP RENEWAL 220.00 220.00
2035007 10/17/12 01343 WE GOT YA PEST CONTROL 78073 09/22/12 PEST CONTROL 1,100.00
75979 06/04/12 BEE REMOVAL 115.00
77779 09/12/12 BEE REMOVAL 115.00
Page 20 of 21
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2034763 THROUGH 2035160
RUN DATES 10/3/2012 TO 10/31/2012
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
77223 08/15/12 BEE REMOVAL 115.00
76892 07/24/12 BEE REMOVAL 115.00
76228 06/18/12 BEE REMOVAL 115.00
76137 06/18/12 BEE REMOVAL 115.00
78269 09/27/12 BEE REMOVAL 75.00 1,865.00
2035008 10/17/12 07780 WEBER SCIENTIFIC 578265 CREDIT MEMO (8.00)
577819 09/19/12 LABORATORY SUPLIES 608.08
577863 09/19/12 LABORATORY SUPLIES 224.97 825.05
2035160 10/31/12 07780 WEBER SCIENTIFIC 579140 10/03/12 LABORATORY SUPLIES 120.18 120.18
2035009 10/17/12 00517 WESCO DISTRIBUTION INC 664112 09/26/12 MATERIALS FOR TRANSFER SWITCH 711.33
665277 09/28/12 MATERIALS FOR TRANSFER SWITCH 199.95 911.28
2034839 10/03/12 03131 WESTERN HOSE & GASKET 269762 09/10/12 HOSE/FITTINGS 433.90 433.90
2035010 10/17/12 00125 WESTERN PUMP INC 0121444IN 09/25/12 DUSTO INSPECTIONS 350.00 350.00
2035011 10/17/12 13483 WHITE NELSON DIEHL EVANS LLP 128633 09/30/12 AUDIT SERVICES (SEPT 2012)7,000.00 7,000.00
2034921 10/10/12 14391 YOUNG YEON LEE Ref002424534 10/09/12 UB Refund Cst #0000156118 104.70 104.70
2035084 10/24/12 14435 YVONNE URIBE Ref002424804 10/23/12 UB Refund Cst #0000122687 20.92 20.92
GRAND TOTAL 1,899,354.82 1,899,354.82
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