HomeMy WebLinkAbout11-02-11 Board PacketOTAYWATER DISTRICT
BOARD OF DIRECTORS MEETING
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY,CALIFORNIA
WEDNESDAY
November 2,2011
3:30 P.M.
AGENDA
1.ROLL CALL
2.PLEDGE OF ALLEGIANCE
3.APPROVAL OF AGENDA
4.APPROVE THE MINUTES OF THE REGULAR MEETINGS OF JULY 15,2011
AND AUGUST 10,2011
5.PRESENTATION OF EXCELLENCE IN INFORMATION TECHNOLOGY
AWARD FROM THE MUNICIPAL INFORMATION SYSTEMS ASSOCIATION
OF CALIFORNIA (JENKINS)
6.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
CONSENT CALENDAR
7.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)AUTHORIZE THE CREATION OF A NEW CIP PROJECT IN THE
AMOUNT OF $210,000 AND APPROVE A CONSTRUCTION CON-
TRACT WITH SKYLINE SERVICES,INC.IN AN AMOUNT NOT-TO-
EXCEED $109,195 FOR THE RECYCLED FORCE MAIN ACCESS
ROAD REPAIRS
b)APPROVE A PROFESSIONAL ENVIRONMENTAL SERVICES CON-
TRACT TO MERKEL &ASSOCIATES FOR THE MAINTENANCE AND
MONITORING OF THE SAN MIGUEL HABITAT MANAGEMENT AREA
AND CIP-ASSOCIATED MITIGATION PROJECTS FOR CALENDAR
1
YEARS 2012,2013,AND 2014 IN AN AMOUNT NOT-TO-EXCEED
$359,079.56
c)AWARD A CONSTRUCTION CONTRACT TO TC CONSTRUCTION,INC.
FOR THE LA PRESA SYSTEM IMPROVEMENTS PROJECT IN AN
AMOUNT NOT-TO-EXCEED $978,995 AND APPROVE AN INCREASE
TO THE FISCAL YEAR 2012 BUDGET FOR P2370 FROM $960,000 TO
$1,210,000
ACTION ITEMS
8.FINANCE,ADMINISTRATION AND INFORMATION TECHNOLOGY
a)APPROVE THE DISTRICTS AUDITED FINANCIAL STATEMENTS,IN-
CLUDING THE INDEPENDENT AUDITORS'UNQUALIFIED OPINION,
FOR FISCAL YEAR ENDED JUNE 30,2011 (BEACHEM)
9.BOARD
a)DISCUSSION OF 2012 BOARD MEETING CALENDAR
INFORMATIONAL ITEMS
10.THIS ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOS-
ES ONLY.NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM:
a)REVIEW OF THE FY 2012-2014 STRATEGIC PLAN'S FOCUS ON WA-
TER PLANNING AND SUPPLY (STEVENS)
REPORTS
11.GENERAL MANAGER'S REPORT
a)SAN DIEGO COUNTY WATER AUTHORITY UPDATE
12.DIRECTORS'REPORTS/REQUESTS
13.PRESIDENTS REPORT/REQUESTS
RECESS TO CLOSED SESSION
14.CLOSED SESSION
a)CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION
[GOVERNMENT CODE §54956.9]
(I)SALT CREEK GOLF,LLC,UNITED STATES BANKRUPTCY
COURT,CASE NO.11-13898-LA11
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b)CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION
[GOVERNMENT CODE §54956.9]
(I)ABELL MAnER
RETURN TO OPEN SESSION
15.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD
MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
16.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 October 28,2011,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 October 28,2011.
/
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AGENDA ITEM 4
MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT
July 15,2011
1.The meeting was called to order by President Bonilla at 3:35 p.m.
2.ROLL CALL
Directors Present:Bonilla,Croucher,Gonzalez,Lopez and Robak
Directors Absent:None
Staff Present:General Manager Mark Watton,Asst.General Manager of
Administration and Finance German Alvarez,Asst.General
Manager of Engineering and Water Operations Manny
Magana,General Counsel Daniel Shinoff,Chief of
Information Technology Geoff Stevens,Chief Financial
Officer Joe Beachem,Chief of Engineering Rod Posada,
Chief of Operations Pedro Porras,Chief of Administration
Rom Sarno,District Secretary Susan Cruz and others per
attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Croucher,seconded by Director Gonzalez and
carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
to approve the agenda.
5.APPROVE THE MINUTES OF THE REGULAR MEETINGS OF JANUARY 5,2011
AND FEBRUARY 2,2011;AND SPECIAL MEETINGS OF SEPTEMBER 15,2010
AND JANUARY 11,2011
A motion was made by Director Lopez,seconded by Director Croucher and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
1
to approve the minutes of the regular meetings of January 5,2011 and February 2,
2011;and special meetings of September 15,2010 and January 11,2011.
6.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
CONSENT CALENDAR
7.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST IS
MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
Director Lopez requested that agenda item 6e,APPROVE A CONSTRUCTION
CONTRACT TO PARADIGM MECHANICAL CORPORATION IN AN AMOUNT
NOT-TO-EXCEED $53,500 FOR HVAC IMPROVEMENTS AT THE 803-1 AND
850-2 PUMP STATIONS,be pulled for discussion.
President Bonilla presented item 6e for discussion:
e)APPROVE A CONSTRUCTION CONTRACT TO PARADIGM MECHANICAL
CORPORATION IN AN AMOUNT NOT-TO-EXCEED $53,500 FOR HVAC
IMPROVEMENTS AT THE 803-1 AND 850-2 PUMP STATIONS
Director Lopez indicated that staff had provided a memo to the board (attached)
regarding this item and he would like,at this time,to make a motion to reject all bids
on the project and remove this item from the agenda,the motion was seconded by
Director Croucher and carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
to reject all bids and remove this item from the agenda.
President Bonilla presented the consent calendar for board action.A motion was
made by Director Croucher,seconded by Director Robak and carried with the
following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
2
to approve the following consent calendar items:
a)ADOPT RESOLUTION NO.4178 TO CONTINUE WATER AND SEWER
AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL
YEAR 2011-2012 TO BE COLLECTED THROUGH PROPERTY TAX BILLS
b)ADOPT RESOLUTION NO.4177 TO ESTABLISH THE TAX RATE FOR
IMPROVEMENT DISTRICT NO.27 AT $0.005 FOR FISCAL YEAR 2011-
2012
c)APPROVE AGREEMENTS WITH THE FOLLOWING:
•AZTECA SYSTEMS INC.,IN THE AMOUNT OF $95,000 FOR INITIAL
LICENSE AGREEMENT FOR WORK MANAGEMENT SOFTWARE,
SOFTWARE MODIFICATION,AND IMPLEMENTATION SERVICES
•ESRI FOR A THREE-YEAR LICENSE AGREEMENT FOR GIS SOFTWARE
IN AN AMOUNT NOT-TO-EXCEED $163,125 ($54,375 PER YEAR)
•ONE-YEAR SERVICE AGREEMENTS FOR FY 2012 WITH:
-AT&T IN THE AMOUNT OF $110,000 FOR LOCAL AND LONG
DISTANCE TELEPHONE AND INTERNET SERVICE
-VERIZON WIRELESS IN THE AMOUNT OF $108,000 FOR CELL
PHONE AND WIRELESS SERVICES
-SOFTCHOICE IN THE AMOUNT OF $78,490 FOR SOFTWARE
LICENSES UNDER THE MICROSOFT ENTERPRISE AGREEMENT
-EDEN SYSTEMS IN THE AMOUNT OF $139,000 TO COVER THE
COSTS OF A SOFTWARE MAINTENANCE AGREEMENT,ANNUAL
SUPPORT,AND CONSULTING SERVICE
-ESRI IN THE AMOUNT OF $50,000 FOR SOFTWARE
CONSULTING SERVICES
d)ADOPT RESOLUTION NO.4179 TO ELECT THREE REPRESENTATIVES
TO THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY'S BOARD
OF DIRECTORS
f)APPROVE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT
WITH MALCOLM PIRNIE/ARCADIS IN AN AMOUNT NOT-TO-EXCEED
$349,979.36 FOR FISCAL YEARS 2012 AND 2013 (ENDING JUNE 30,
2013)FOR THE WASTEWATER MANAGEMENT PLAN PROJECT
ACTION ITEMS
8.ENGINEERING AND WATER OPERATIONS
a)AWARD A CONSTRUCTION CONTRACT TO NEWEST CONSTRUCTION,
INC.FOR THE RALPH W.CHAPMAN WATER RECLAMATION FACILITY
UPGRADE PROJECT IN AN AMOUNT NOT-TO-EXCEED $3,499,000 AND
APPROVE AN INCREASE TO THE FISCAL YEAR 2012 BUDGET FOR CIP
R2096 FROM $4,700,000 TO $4,950,000
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Environmental Compliance Specialist Lisa Coburn-Boyd indicated that staff is
requesting that the board award a construction contract for the Ralph W.
Chapman Water Reclamation Facility (RWCWRF)upgrade project in an
amount not-to-exceed $3,499,000 and increase the FY 2012 project budget
from $4.7 million to $4.95 million.She indicated that the plant is not meeting
its Regional Water Quality Control Board permit limits for total nitrogen and
explained that the sludge process would need to be modified to achieve
lower nitrogen levels.She reviewed the plant modifications that will be
required in order for the plant to comply with permit requirements and the
reasons for the increase to the project budget.She stated the modifications
will also enhance automation and efficiency.She presented the bid process
and indicated that staff is recommending that the construction contract be
awarded to the lowest responsive bidder,NEWest Construction,Inc.She
stated that staff has checked their references and they were very good.
Newest also worked on two previous projects for the District and their
performance on these projects was very good.
She indicated that the District received a bid protest from the second lowest
bidder,Stanek Constructors,Inc.claiming that NEWest's bid was
unresponsive.Staff reviewed the protest with legal counsel and it was
concluded that the protest was inconsequential.
In response to an inquiry from Director Robak,General Manager Watton
indicated that the San Diego Metro Commission's cost for treating reclaimed
water is increasing and,thus,it is becoming less costly to treat reclaimed
water at the District's RWCWRF.With the eventual growth to build out,the
District will need the capacity from the District's treatment plant beyond the
District's capacity at Metro.It is very expensive to buy additional capacity at
Metro.Environmental Compliance Specialist Lisa Coburn-Boyd added that
the RWCWRF upgrades will lower energy cost and provide for new
automation which will provide better process control that will reduce labor
cost.Director Robak inquired if staff as ever looked at upgrading the
treatment plant to meet drinking water standards.General Manager Watton
indicated that,they have not as the opportunity to place the re-purified water
into a ground basin would not be possible because of the Sweetwater River
groundwater basin issue.
A motion was made by Director Robak,seconded by Director Lopez and
carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
to approve staffs'recommendation.
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9.BOARD
a)CONSIDERATION TO CAST A VOTE TO RE-ELECT MR.DEWEY
AUSMUS TO THE CALIFORNIA SPECIAL DISTRICTS ASSOCIATION'S
(CSDA)BOARD OF DIRECTORS
General Manager Watton indicated that the incumbent,Mr.Dewey Ausmus,
is running for re-election to his seat on the California Special Districts
Association Board.Mr.Ausmus has been doing a good job and staff is
recommending that the board re-elect Mr.Ausmus to CSDA's Board of
Directors.
A motion was made by Director Bonilla,seconded by Director Croucher and
carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
to approve staffs'recommendation.
b)DISCUSSION OF 2011 BOARD MEETING CALENDAR
General Manager Watton noted that the August board meeting has been
rescheduled to August 10,2011.
INFORMATIONAL ITEMS
10.ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES
ONLY.NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS.
a)REPORT ON THE STATUS AND PROGRESS OF THE AUTOMATED
METER READING METER RETROFIT PROGRAM
Chief of Operations Pedro Porras updated the board on the District's Automated
Meter Reading Program (AMR).He stated that AMR is a device which measures
consumer's water consumption and transmits the data via radio frequency to a data
collecting unit.He stated that the automated meters have many benefits which
include reduced labor cost,they allow easy access to meters that are on private
property or are difficult to reach without setting up an appointment with the property
owner,and they enhance the safety of District employees as they no longer are
required to walk the streets and neighborhoods to read meters manually.He
provided a brief history of the development of the automated meter and their various
manufacturers.
5
He stated in the late 1990's,the 2000 census noted that the City of Chula Vista was
the second fastest growing city in the nation.At that time,the District was installing
approximately 2500 meters per year and the District recognized that it needed to
address the maintenance of this growth by either hiring additional staff or look to
technology to enhance efficiency.In January 2002,the District's board approved
the AMR Program and declared that,effective July 1,2001,all new and
replacement meters would have AMR technology.By the end of 2005 the District
had over 3000 3G Master Meters installed Oust below 10%of total installed meters).
He indicated that the meters last about 30 years and the batteries last
approximately 20 years and can be read 24 hours a day regardless of the weather.
The meters can also provide additional data,such as leaks if the meter is running
24 hours in a day,etc.
Chief of Operations Porras indicated that,as of June 2011,the District had a total of
49,057 meters (potable and recycled)installed,of which,35,933 (73.25%)are 3G
Master Meters.The District had 105 manual-read meter routes which,today,have
been reduced to 84 meter read routes due to the implementation of AMR.Fifty-six
(56)of the 84 routes are AMR and 28 are non-AMR.It is projected that an average
of eight (8)routes will be converted to AMR each year.Due to the conversion to
AMR,the District can read 3,500 meters a day versus 1,000 meters a day manually.
This increased efficiency has allowed the District to reduce its labor force by three
(3)full-time employees and one (1)part-time employee.This has provided a total
labor cost savings to date of almost $2 million.He stated that it is expected that by
2014 all meters would be fully AMR capable.Increasing costs savings by 2014 to
approximately $5.02 million (savings from reduced staff,vehicle and fuel needs).It
was noted that the District would start replacing the meters batteries in 2019 and
the full meter and registers in 2034.
General Manager Watton noted that the District did not want to replace all the
batteries at once,so AMR installations were staggered.Chief of Operations Porras
also shared in response to an inquiry by Director Robak,that the unit with the brain
(data portion of meter)will be wholly replaced which will update the technology of
the meter.It is expected,at that time,the data will be collected via the internet and
District staff will no longer need to drive the District's service area to collect water
usage data.
REPORTS
11.GENERAL MANAGER'S REPORT
GENERAL MANAGER'S REPORT
General Manager Watton highlighted information from his report (attached)that
included an update on water conservation outreach,network security,FEMA
Claims,an award received from Government Finance Officers Association (GFOA)
for the District's CAFR,the Rancho del Rey groundwater well development project,
and the Solar Power Feasibility Study.
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SAN DIEGO COUNTY WATER AUTHORITY UPDATE
Director Croucher indicated that CWA's primary focus at their last meeting
continued to be the lawsuit with Metropolitan Water District for multiple issues,not
just the rates,but also incentives provided to those who did not qualify for
incentives.Conservation efforts are also continuing to be a focus,though the
Governor has declared the drought over,there still continues to be a water shortage
due to the Bay Delta issues and the Colorado River's low levels.He stated that
Desalination is also still being discussed and that there will be more to come as the
lawsuits move forward.
12.DIRECTORS'REPORTS/REQUESTS
Director Croucher indicated that he attended the District's Employee Recognition
event.He noted that the District recognized an employee for his assistance in
saving a customer from serious injury or loss of life from a dog attack.He stated
that it is a pleasure to see the District's employees becoming part of the community
and helping in such situations.He indicated that the District also recognized
employees for their service to the District with some being recognized for 25 and 30
years of service.One such employee was Engineering Manager,James Peasley,
who was recognized for 32 years of service to the District.
Director Lopez indicated that he also attended the Employee Recognition event and
it was gratifying to see staff working together and acknowledging their peers.He
congratulated Engineering Manager Peasley for his 32 years of service.He also
shared that he attended the Ad Hoc Unrepresented Employee Compensation
Committee meetings held on June 27 and July 5,2011.On July 11 he attended a
meeting with the Mayor of Rosarito,Javier Robles,to discuss the desalination plant
project.He also noted that he attended the ESRI Conference where staff presented
on the District's GIS and Asset Management Systems.He thanked staff for sharing
their work with the industry.
Director Robak provided an update on the Water Conservation Garden 0NCG)
matters.He stated that there is an ongoing situation that staff is trying to resolve.
The next meeting on the issue will be held in the middle ofAugust.
13.PRESIDENTS REPORT
President Bonilla recognized Engineering Manager Jim Peasley for his 32 years of
service to the District and congratulated him on his retirement and for his election to
the Padre Dam Municipal Water District's Board.He indicated that Mr.Peasley
contributed to the success of the District and the District has much to thank him for
the work he has done.He stated that he was very happy for him,but sad for the
District that he will be leaving.He thanked Mr.Peasley for his time at the District
and indicated that he will be missed.He presented Mr.Peasley a retirement
recognition award to thank him for his services.
7
He reported on meetings he attended during the months of June and July 2011 and
indicated that on June 13 he met with General Manager Watton to review items to
be presented at the June committee meetings.He attended an Ad Hoc
Redistricting Committee meeting on June 14 to discuss the reapportionment of the
District's divisional boundaries as required following a census.On June 25 he met
with Mark Watton to discuss items to be presented at the July board meeting and on
June 30 he met with Congressman Filner along with General Manager Watton and
discussed the Rosarito Desalination Project.He noted that Congressman Filner is
supportive of the project.President Bonilla indicated that on July 2 he met with
Director Croucher and discussed various District matters.On July 11 he along with
Director Lopez,General Manager Watton,Chief of Engineering Rod Posada,
Richard Romero and Hector Mares met with Rosarito Mayor Javier Robles to
discuss the Rosarito Desalination Project.The Mayor was very supportive and felt
that the project would be good for Rosarito Beach and San Diego.He lastly shared
that on July 15 he met with General Manager Watton to discuss items to be
presented at the July committee meetings.
RECESS TO CLOSED SESSION
14.CLOSED SESSION
The board recessed to closed session at 4:28 p.m.to discuss the following matters:
a)CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE
§54957.6]
AGENCY DESIGNATED REPRESENTATIVES:AD HOC
UNREPRESENTED EMPLOYEE COMPENSATION COMMITTEE
EMPLOYEE ORGANIZATIONS:UNREPRESENTED EMPLOYEES AND
REPRESENTED EMPLOYEES'ASSOCIATION
b)PUBLIC EMPLOYEE PERFORMANCE EVALUATION [GOVERNMENT
CODE §54957.6]
TITLE:GENERAL MANAGER
RETURN TO OPEN SESSION
15.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD MAY
ALSO TAKE ADDITIONAL ACTIONS ON ANY ITEMS POSTED IN CLOSED
SESSION
The board reconvened at 5:10 p.m.and General Counsel Shinoff indicated that the
board took no reportable actions in closed session.
16.ADOPT RESOLUTION NO.4182 TO INCREASE THE UNREPRESENTED
EMPLOYEES'CONTRIBUTIONS TO THE CALPERS PENSION PLAN BY SEVEN
8
(7)PERCENT TO PURCHASE ENHANCED RETIREE HEALTH BENEFITS AND
ADOPT RESOLUTION NO.4183 TO AMEND THE RETIREE HEALTH BENEFITS
FOR UNREPRESENTED EMPLOYEES (WILLIAMSON/BEACHEM)
Human Resources Manager Kelli Williamson indicated that staff will be presenting
the staff report that addresses increasing unrepresented employees contributions to
CalPERS Pension over two years to allow these employees to contribute the full
employee's portion of their CalPERS pension.These funds will be used for
unrepresented employees to purchase a level retiree health benefits for all tiers of
unrepresented employees (Tiers I, II and III).She indicated that this exchange
would be cost neutral to the District.
A review of the history of Other Post-Employment Benefits (OPEB)and the current
2011 Retiree Health Actuarial Study was presented (see attached copy of
presentation).Staff also reviewed the proposal presented in the staff report (see
attached copy of staff report).Staff indicated that there are 42 unrepresented
employees and of the 42 employees,13 employees are Tier I and Tier II and these
employees already have the retiree health benefits package.The proposal is to
allow the unrepresented employees to use their Cost of Living Increases (COLA)for
years 2011 and 2012 to increase their contributions to the CalPERS pension plan to
purchase enhanced retiree health benefits and to amend the health coverage to
provide a level retiree health benefit for all Tiers of unrepresented employees.It
was noted that employees are currently contributing 1%for their CalPERS pension
and,if this proposal is approved by the board today,employees will immediately be
contributing 4.5%and on July 1,2012,unrepresented employees'contributions
would increase to 8%.The retiree health benefit would provide unrepresented
employees,who are at least 55 years of age at retirement and have 15 years of
service,with 100%employee premium coverage and 88%of dependent premium
for life (including survivor benefit for life)for health and dental coverage.
Staff indicated that the Annual Required Contribution (ARC)of retiree health for all
unrepresented employees,as determined by the Actuarial Study,is $316,400.The
reduction in the District's contribution to CalPERS is $350,300 due to the
employees contributing additional funds to CalPERS which provides for a total
annual savings to the District of $33,900.It was noted that the $316,400 is the
amount that the Actuarial Study has determined as the cost,on an annual basis,of
the change in the OPEB benefit.The savings of $33,900 will be realized each year
for the next 26 years.This savings incorporates the annual increase in cost of
medical care premiums,salary increases,etc.(all costs).In year 26,the savings
will increase to $90,000 annually.It was noted that that OPEB funding percentage
would be reduced 64%and overtime it will increase steadily.A percentage funding
level of 64%is still a very high level of funding.
It was indicated that a similar proposal was provided to represented employees for
their consideration.They are still considering the proposal and have requested
additional time.If they decide to move forward with a proposal,staff will agendize
the proposal for the board's consideration at the August 10,2011 board meeting.
9
PUBLIC COMMENT:
Ms.Lani Lutar of the San Diego County Taxpayers Association questioned the cost
neutrality of the proposed retiree health benefit and indicated that they would like to
see the assumptions that the costs were based on.She indicated that she felt that
the numbers should be reviewed further and it would be in the District's best interest
to get the complete actuarial analysis and think about how the District can achieve
maximum savings for it's ratepayers.
General Manager Watton indicated that the District will provide a copy of the
Actuarial Report to Ms.Lutar and the public.
District employees Frank Anderson,Operations Department,and Rita Bell,Finance
Department,indicated that they wished to thank the board for the opportunity to
negotiate in good faith and for making available a benefit that unrepresented
employees are willing to purchase for themselves.
Director Gonzalez commended employees for planning for their future and utilizing
their monies to fund their retirement.He indicated that he sees this as a key benefit
that employees have taken upon themselves to purchase.
Director Croucher indicated that the Employee Memorandum of Understanding was
negotiated in 2007 and the COLA increases were part of the negotiated contract.
He stated that the board is not changing the contract.The employees are
requesting that,rather than receiving the COLA increases in their salary,that the
monies be utilized to purchase retiree healthcare benefits.
It was noted that if the board approved this proposal,it would not impact rates.The
District is the eighth (8th)lowest cost water service among the 24 water agencies.
Director Lopez indicated that this proposal was reviewed by the District's Ad Hoc
Unrepresented Employees Committee in detail and the committee wanted to be
sure that the proposal would not increase rates.He stated that this District has
improved tremendously which is very much attributed to its employees.He noted
that it was the employees who brought this proposal forward.The analysis
indicates it will provide cost savings.
Director Robak indicated that the board respects its employees and they have done
a really good job of getting the District through tough times.The fact is,these are
tough times,and if you had asked an actuarial where they think our rates would be
today some years ago,I don't believe that they would be able to predict where we
are today.He indicated that he did not have the information to support this proposal
and has not yet seen the actuary report.He indicated that he respects employees,
but would like to see the information and cannot support this proposal.
President Bonilla thanked Ms.Lutar for attending today's meeting.He stated that
the board respects and takes her comments very seriously.He indicated,if the
board prides itself in something,it is transparency.He stated that the board
10
believes that the well being of its employees benefits the District.This District has
won almost every award from Finance,Engineering,Operations to being
recognized as one of the best places to work in San Diego.He stated that it takes
teamwork and years to develop mutual respect between the employees and the
board.He indicated that when you make a bold statement questioning the accuracy
of the information presented by the District's staff,he has to take exception to it as
he trusts the employees of the District.He stated that he trusts them because they
have proven to him that they have earned the trust.He stated that the District
makes decisions based on information and the board,at times,will respectfully
disagree on issues.But one thing they do agree upon is that they trust the District's
staff.They are not perfect,but they have reviewed the information and based on
the information,this proposal will not cost the District,but instead will save the
District money.The District is in bottom third for lowest cost water provider among
the 24 providers and is recognized by its peers through awards.He indicated that
the District would provide copies of the Actuarial Report immediately to the public
for their review.
A motion was made by Director Croucher,seconded by Director Gonzalez and
carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez and Lopez
Director Robak
None
None
to adopt Resolution No.4182 to increase the unrepresented employee's
contributions to the CalPERS Pension Plan by seven (7%)to purchase enhanced
retiree health benefits.
Director Croucher made a motion,seconded by Director Lopez and carried with the
following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez and Lopez
Director Robak
None
None
to adopt Resolution No.4183 to amend the retiree health benefits for unrepresented
employees.
17.ADJOURNMENT
With no further business to come before the Board,President Bonilla adjourned the
meeting at 5:55 p.m.
11
ATTEST:
District Secretary
12
President
AGENDA ITEM 4
MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT
August 10,2011
1.The meeting was called to order by President Bonilla at 3:35 p.m.
2.ROLL CALL
Directors Present:Bonilla,Croucher,Gonzalez,Lopez and Robak
Directors Absent:None
Staff Present:General Manager Mark Watton,Asst.General Manager of
Administration and Finance German Alvarez,Asst.General
Manager of Engineering and Water Operations Manny
Magana,General Counsel Daniel Shinoff,Chief of
Information Technology Geoff Stevens,Chief Financial
Officer Joe Beachem,Chief of Engineering Rod Posada,
Chief of Operations Pedro Porras,Chief of Administration
Rom Sarno,District Secretary Susan Cruz and others per
attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Croucher,seconded by Director Lopez and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
to approve the agenda.
5.APPROVE THE MINUTES OF THE REGULAR MEETINGS OF MARCH 2,2011
AND APRIL 6,2011
A motion was made by Director Croucher,seconded by Director Lopez and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
1
to approve the minutes of the regular meetings of March 2,2011 and April 6,2011.
6.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATIER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
Public member Tom Harrington addressed the Board members with concerns about
the actuarial report that was utilized for the District retiree health benefit for
unrepresented employees that was approved at the regular Board meeting on July
15,2011.He stated that he believes the report was not of standard sound practice,
is only preliminary and made no conclusions.
RECESSED TO CLOSED SESSION
The Board recessed to a Closed Session at 3:40pm.
7.CLOSED SESSION
a)CONFERENCE WITH LABOR NEGOTIATIONS [GOVERNMENT CODE
§54957.6]
AGENCY DESIGNATED REPRESENTATIVES:AD HOC
UNREPRESENTED EMPLOYEE COMPENSATION COMMITIEE
EMPLOYEE ORGANIZATION:OTAY WATER DISTRICT EMPLOYEES'
ASSOCIATION
b)CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION
[GOVERNMENT CODE §54956.9(a)]
(I)INFRASTRUCTURE ENGINEERING CORP.v.OTAY WATER
DISTRICT,COUNTY OF SAN DIEGO,SUPERIOR COURT,CASE
NO.37-2008-00093876-CU-BC-CTL
(II)MULTIPLE CASES RELATED TO THE FENTON BUSINESS
CENTER AND FILED WITH THE SUPERIOR COURT OF THE
COUNTY OF SAN DIEGO CONSOLIDATED UNDER CASE NO.37-
2007-00077024-CU-BC-SC
c)CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION
[GOVERNMENT CODE §54956.9]
RETURN TO OPEN SESSION
The Board returned to open session at 4:37 p.m.General Counsel Dan Shinoff
indicated that no action was taken in the closed session.
8.ADOPT RESOLUTION NO.4185 TO INCREASE THE REPRESENTED
EMPLOYEES'CONTRIBUTIONS TO THE CALPERS PENSION PLAN BY SEVEN
2
(7)PERCENT AND RESOLUTION 4186 TO AMEND THE MEMORANDUM OF
UNDERSTANDING WITH THE OTAY WATER DISTRICT EMPLOYEES'
ASSOCIATION BY SIDE LETTER AGREEMENT REGARDING RETIREE HEALTH
BENEFITS AND AN ADDITIONAL THREE-QUARTERS-OF-A-PERCENT (.075%)
CAPLERS CONTRIBUTIONS IN EXCHANGE FOR ENHANCED RETIREE
HEALTH BENEFITS
Chief Financial Officer Joe Beachem provided a PowerPoint presentation to note
and correct misinformation that was provided to the public by the San Diego County
Taxpayers Association (SDCTA)relating to the District's actuarial report that was
utilized for the Represented Retiree Health Benefits'proposal.It was discussed
that SDCTA had exaggerated the financial impact on the District's budget.Chief
Financial Officer Beachem stated that staffs'proposed retiree health benefits for
represented employees:
•Has no impact on the District's budget
•Employees will pay the added cost
•Is a fiscally conservative approach
He indicated that in FY 2012,the District will be charged a 9.97%water rate
increase by its water suppliers (County Water Authority,Metropolitan Water District,
and City of San Diego). It was noted that the District significantly reduced internal
costs and the pass-through water rate increase to its customers will only be 7.7%,
not the full 9.97%.
He stated that SDCTA failed to recognize that the employees will pay the full cost of
the benefits.He indicated that when comparing the cost of the benefits and the
employees'contributions,it results in a positive impact to the District's annual
budget after the first year.Chief Financial Officer Beachem stated that over time,it
will result in a cumulative positive impact to the District.
Also noted by Chief Financial Officer Beachem was the fact that medical costs have
been consistently lower than projected in the actuary and that the District has been
funding the medical liability.
In response to a question from President Bonilla,Chief Financial Officer Beachem
stated that the District does have the option to adjust the retiree health benefits if
the environment changes in the future.
Chief of Technology Geoff Stevens provided a PowerPoint presentation of the
District's commitment to strategic planning.He stated that ten years ago the District
recognized an industry in transition with maturing water infrastructure and the costs
of water rising significantly and steadily.He noted that the District's solution was to
invest in technology to increase efficiency and effectiveness,which was fully
supported by the Board and staff.This solution resulted in the following:
•Employee count reduced from 175 to 156
3
•Industry-leading and award-winning Finance,Engineering,Safety,
Operations and IT functions
•Rates and costs below regional average
•Strategic positioning of new technologies,i.e.asset management,wireless
network,automated meter reading
•Intense focus on metrics-driven continuous improvement to further increase
efficiency
Finance Manager Rita Bell provided a PowerPoint presentation that discussed the
District's AA Credit Rating.She provided quotes from creditors about the District:
•Fitch Ratings -"Strong proactive management has resulted in ample
financial flexibility,and solid current resource capacity."
•Standard &Poor's -"Strong management,which includes practices to
ensure solid finances going forward.""Solid historical financial performance."
She stated that the Board's consistent quality governance and strong fiscal
leadership has led the District to multiple awards,such as but not limited to:
•Award Winning Comprehensive Annual Financial Reports (CAFR)
•Government Finance Officers Association (GFOA)Award for Excellence in
Financial Reporting - 7 years in a row
•Auditor Opinion -The District has earned,year after year,a "clean opinion"
in the audit of its financial statements.This is the highest level opinion that
can be issued
Finance Manager Bell discussed the District's financial modeling and rate setting
and stated that it is a zero-based budgeting model where assumptions are tied into
it.She indicated that the District hired an economist to project its growth and from
the economist's report,the District developed its Operating and Capital
Improvement Program Budgets.She noted that the District was able to reduce its
water rate increase by increasing efficiency and also noted that the District
maintains a low rate among other water agencies.
Chief Financial Officer Beachem and Human Resources Manager Kelli Williamson
provided a PowerPoint presentation that included a history of the District's Other
Post-Employment Benefits (OPEB),a review of the District's various tiers,
information about the actuarial study and the proposed retiree health benefits for
represented employees.
Chief Financial Officer Beachem introduced Joseph D'Onofrio,Assistant Vice
President of Bartel Associates,LLC,who assisted in the development of the
Actuarial Study.
Chief Financial Officer Beachem discussed the District's OPEB chronology from
1981 to July 2011.He noted that in March 2008,the Board approved the creation
4
of a trust (CERBT)and was funded $5 million from the District's fund.At that time,
the actuary showed that the liability reduced to $11.4 million (including the new Tier
III benefits)due to the greater return on the trust and the management of the
medical program.These actions freed up $5.5 million to cover costs associated
with a 6-year labor contract including moderate OPEB benefits for Tier III.$6.4
million remains in the Otay fund to pay for OPEB benefits.
Chief Financial Officer Beachem indicated that on July 15,2011,the Board
approved the enhancement of the OPEB benefit for the Unrepresented Employees
in exchange for the employees paying 7%of salary toward their pension.He stated
that this action brought the liability to $15.2 million and the funding level to 64.4%
and indicated that the change is effectively cost-neutral to the District as employees
will be reducing the District's cost of their pensions by an equal amount.
Human Resources Manager Williamson discussed the various Tiers and outlined
the Retiree Health Benefits that was used as a basis for the actuarial study.She
discussed the "Already Negotiated Cost of Living Adjustment"for five (5)years that
was approved by the Board in 2007.This action included a 3.5%Cost of Living
Adjustment (COLA)for employees on July 1,2011 and July 1,2012.She provided
a slide that showed the represented employees who are eligible to retire with 20
years of Service at Age 55.She provided the cost of the Annual Required
Contribution (ARC)of Retiree Health for All Represented Employees and the
amount that the employees will contribute and indicated that the results would be a
cost savings of $28,700 annually to the District,and in 35 years there would be a
savings of $5 million.
Human Resources Manager Williamson indicated that staff is recommending that
the Board adopt Resolution No.4185 to increase the Represented Employees'
contribution to the CalPERS Pension Plan by seven (7)percent and Resolution No.
4186 to amend the Memorandum of Understanding with the Otay Water District
Employees'Association by Side Letter Agreement regarding Retiree Health
Benefits and an additional three-quarter-of-a-percent (0.75)CalPERS Contributions
in exchange for enhanced Retiree Health Benefits.
Prior to voting on staffs'recommendation,President Bonilla provided members of
the public an opportunity to speak on the proposal.The following individuals
submitted a "Request to Speak in Opposition"slip and each asked the board to
oppose the proposed Retiree Health Benefits Program and one requested that the
District retain another actuary organization,Milliman,to perform a peer review of the
actuary report prepared by Bartel Associates:
1.Estela Murillo
2.Marcy May
3.Marilyn Jarman
4.Harold Venable
5.Bob Cederdahl
6.John Smith
7.Mark Schmidt
5
8.Lani Lutar,SDCTA Representative
9.Chris Cates,SDCTA Representative
10.Anne Harris (donated time to Lani Lutar from SDCTA)
11.lsabelle Espino (donated time to Lani Lutar from SDCTA)
12.Cynthis Tait (donated time to Lani Lutar from SDCTA)
13.Evita McCullough
14.Randy Williams
15.Pat Finlay
16.Dan DiValerio
17.Ronald Dahlgren
18.Michael Casinelli
19.Norma Smith
20.Connie Howie
21.Joan Borrelli
22.Lavonne Watts
23.AI Conlin
24.Jessica Hays
25.Mark Liuag
26.Judith Marsh
27.John-Claude Labye
28.E.Moyella
29.John Hayes
30.Edward Mosley
31.R.C?
32.Bob Collins
Director David Gonzalez indicated that he was able to review the information that
was provided by staff about the proposed retiree health benefits.He commended
the District's employees for investing and planning ahead for their retirement.
Director Gary Croucher stated that there have been a lot of misinformation
disseminated to the public through the media and through robo calls and stated that
he would feel the same way as the public members if he had heard the same
information.He indicated that he personally took time to listen to many of the calls
that the District received in response to the SDCTA's campaign because it was
important to him to understand the depth of the public's concerns.He stated that
the Otay Water District has the 6th lowest water and sewer rates among the 24
water agencies in San Diego County and he wanted to clarify that the SDCTA's
robo calls indicated that there was a 40%increase in the District's water rates,but
the increase was actually 30.9%.He also clarified that,although employees will be
receiving lifetime benefits,Medicare will kick in once they turn 65.He stated that in
2007,a cost of living adjustment (COLA)was negotiated as part of the
Memorandum of Understanding with the employees.He stated that the Board is
honoring that contract which will end in 2013.He stated that employees are
proposing to utilize their 2011 and 2012 COLA increases towards their retiree health
benefits.He stated that to be eligible for the retiree health benefits,employees
must maintain 20 years of continuous employment with the District and be of age
6
55.He noted that the District can control the cap on the employees'retiree health
benefits and renegotiate if the environment changes in the future.
Director Croucher discussed the Grand Jury's report released in May 2011
indicated that the reason for water rate increases is Metropolitan Water District
(MWD),the regions wholesale water provider,is imposing water rate increases.He
indicated that he would like to improve public outreach efforts and educate the
District's ratepayers on why water rates are rising.He believes the San Diego
region should increase its water supply through new innovations,such as water
desalination,to be less dependent on MWD and other water suppliers.
Director Lopez indicated that he is a member of the Ad Hoc Committee that
reviewed the proposed retiree health benefits.He wanted to clarify that the 3.5%
increase to employees'salaries is not a raise.It is a COLA that was negotiated and
approved in 2007.He stated the Board is honoring this agreement with employees.
He indicated that he feels comfortable with staffs'recommendation and the
information provided by staff.He believes and trusts the District's staff who have
received multiple awards and has been recognized by state agencies.He also
indicated that the District can re-evaluate the retiree health benefits if the economy
changes.
Director Mark Robak stated that the actuarial report was very detailed and indicated
that he sought counsel to interpret the information.He wanted to make clear that
the District has quality staff and that he trusts them.However,hearing the
comments from the media,SDCTA and public members,he has many questions
about the actuarial report.He indicated that he felt that there was no need to take
action on the proposed retiree health benefits at today's meeting.
President Bonilla stated that he appreciates everyone's comments and indicated
that he has been a ratepayer of the District since 1978 when he moved to the
community.He believes that the District is one of the best water agencies and that
it provides quality water to its customers.He indicated that he welcomes anyone
who would like to come to the District and review its books.He indicated that he felt
that the District's proposed retiree health benefit is being made a political issue,
motivated by an agency who modified the figures in the District's actuarial study and
provided misleading/incorrect information to the public.He noted that,board
members are ratepayer too and staff had to also convince the board of the
soundness of the proposal based on the findings of Actuarial Study.
In response to a question from a member of the public who spoke during the public
participation portion of the meeting,President Bonilla indicated he wished to make it
clear that the proposed retiree health benefits is only for District employees and not
for members of the board.President Bonilla also responded to another comment
from a public member regarding the time that District board meetings are held.He
indicated that the District's regular Board meetings were held at 6:00 p.m.in the
past,but hardly anyone from the public attended.In light of this and for the safety
of staff that closed the District following meetings,the meeting time was changed to
3:30 p.m.
7
With no further discussion by the Board,a motion was made by Director Gonzalez,
seconded by Director Croucher and carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,and Lopez
Director Robak
None
None
to approve staffs'recommendation to adopt Resolution No.4185 to increase the
Represented Employees'contribution to the CalPERS Pension Plan by seven (7)
percent and Resolution No.4186 to amend the Memorandum of Understanding with
the Otay Water District Employees'Association by Side Letter Agreement regarding
Retiree Health Benefits and an additional three-quarter-of-a-percent (0.75)
CalPERS Contributions in exchange for enhanced Retiree Health Benefits.
9.APPROVE AN INCREASE TO THE FISCAL YEAR 2012 BUDGET FOR THE
JAMACHA PIPELINE PROJECT FROM $20,300.000 TO $20,800,000
Associate Civil Engineer Daniel Kay indicated that when the Project budget was
being prepared during the FY 2012 CIP budget process,it was anticipated that a
legal budget of $300,000 would be adequate in FY 2012 to cover all remaining legal
costs associated with the IEC litigation.However,due to the duration of the
discovery process and the numerous depositions to date,future expenses,including
expert witnesses,depositions,attorney fees,and other miscellaneous costs are
expected to exceed the $300,000 allocated for FY 2012.
He stated that an additional $500,000 will be needed to provide adequate funding
within the Project budget and indicated that this estimate was based on the last six
months of the Project's expenditures.
In response to a question from Director Croucher,Engineering Manager Ron
Ripperger stated that the overall expenditures for the Jamacha Pipeline Project
was $1 million under budget.
BOARD RECESSED
The Board recessed at 6:38 p.m.as the media requested to interview General
Manager Watton.
BOARD RECONVENED
The Board reconvened the meeting at 6:48 p.m.
A motion was made by Director Croucher,seconded by Director Robak and carried
with the following vote:
Ayes:Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
8
Noes:None
Abstain:None
Absent:None
to approve staffs'recommendation to approve an increase to the Fiscal Year 2012
Budget for the Jamacha Pipeline Project from $20,300,000 to $20,800,000.
10.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD MAY
ALSO TAKE ADDITIONAL ACTIONS ON ANY ITEMS POSTED IN CLOSED
SESSION
General Counsel Dan Shinoff indicated that no reportable actions were taken in
closed session.
CONSENT ITEMS
11.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST IS
MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
Director Mark Robak requested that Item 10a,Award a Construction Management
and Inspection Services Contract to SAIC in an Amount Not-to-Exceed $359,013.32
for the Ralph W.Chapman Water Reclamation Facility Upgrades Project (Project),
be pulled for discussion.
President Bonilla presented Item 1Oa for discussion.Director Robak stated that out
of the four (4)firms who submitted a proposal for the Project,SAIC had the highest
proposed fee.He inquired about the selection process in determining which firm
should be awarded the contract.Associate Civil Engineer Daniel Kay stated that for
this type of contract,the firms'proposed fees were not seen until the panel
completed its interview process and provided their scores for the candidates.He
indicated that prior to the review of proposals,the project manager was the only
individual who was allowed to see the firms'proposed fees.It is believe that this
process helps avoid skewing the candidates'scores.Mr.Kay stated that SAIC's
reference checks were verified and indicated that the firm was highly rated.
After discussing Item 10a,Director Robak withdrew his recommendation to pull Item
1Oa from the consent agenda.
A motion was made by Director Croucher,seconded by Director Robak and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
None
None
None
to approve the following consent calendar items:
9
a)AWARD A CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES CONTRACT TO SAIC IN AN AMOUNT NOT-TO-EXCEED
$359,013.32 FOR THE RALPH W.CHAPMAN WATER RECLAMATION
FACILITY UPGRADES PROJECT
b)APPROVE A PROFESSIONAL AS-NEEDED LAND SURVEYING
SERVICES AGREEMENT WITH ALTA LAND SURVEYING,INC.IN AN
AMOUNT NOT-TO-EXCEED $175,000 FOR FISCAL YEARS 2012 AND
2013 (ENDING JUNE 30,2013)
c)APPROVE AN AGREEMENT WITH LOGICALIS INTEGRATION
SOLUTIONS,INC.,IN THE AMOUNT OF $69,454 FOR REDUNDANT
CORE NETWORK SWITCHING GEAR
d)ADOPT RESOLUTION NO.4181 TO REVISE AND UPDATE VARIOUS
DISTRICT BOARD OF DIRECTORS POLICIES
ACTION ITEMS
12.ADMINISTRATION,FINANCE AND INFORMATION TECHONOLOGY
a)RECEIVE BOARD OF DIRECTORS POLICY NO.27 INVESTMENT
POLICY,FOR REVIEW AND ADOPT RESOLUTION NO 4184 AMENDING
THE POLICY AND RE-DELEGATING AUTHORITY FOR ALL INVESTMENT
RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER IN
ACCORDANCE WITH GOVERNMENT CODE SECTION 53607
Chief Financial Officer Joe Beachem noted that there are a couple changes
proposed to the Investment Policy:
•The addition of the new Restricted Water Supply Reserve Fund as per the
revisions adopted to the District's Reserve Policy by the board in November
2010.
•Board policy has always authorized the District to invest in LAIF up to the
LAIF limit.The LAIF limit has increased from $40 million to $50 million since
the last Investment Policy review.
Chief Financial Officer Beachem indicated that the objectives of the Investment
Policy are safety,liquidity and return on investment.The District has been able to
achieve a return on investment that has been better than LAIF's return for nearly 4
years.Otay's return on investment for FY 2011 and FY 2010 was 1.25%and
1.35%respectively versus LAIF's return of 0.50%and 0.65%respectively.
A motion was made by President Bonilla,seconded by Director Croucher and
carried with the following vote:
Ayes:Directors Bonilla,Croucher,Gonzalez,Lopez and Robak
10
Noes:None
Abstain:None
Absent:None
to receive Board of Directors Policy No.27 Investment Policy,for review and adopt
Resolution No.4187 amending the Policy and re-delegating authority for all
investment related activities to the Chief Financial Officer in accordance with
Government Code Section 53607
13.BOARD
a)DISCUSSION OF 2011 BOARD MEETING CALENDAR
There were no changes to the 2011 Board meeting calendar.
INFORMATIONAL ITEMS
14.ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES
ONLY.NO ACTION IS REQUIRED ON THE FOllOWING AGENDA ITEMS.
a)NORTH DISTRICT AND SOUTH DISTRICT INTERCONNECTION SYSTEM
PROJECT UPDATE REPORT
Engineering Manager Ron Ripperger stated that the intent of this informational item
is to update the Board on the status of the North District and South District
Interconnection System Project (Project)prior to issuing the Notice of Preparation
(NOP)that formally begins the environmental process with the public.
He indicated that the Project consists of a 5.3 mile,30-inch transmission main and
10,000 gpm pumping station that will connect the la Presa area of Spring Valley
(Paradise Valley Road at Elkekton Place)and the Eastlake area of Chula Vista
(East H Street and Corral Canyon Road).The new facilities will provide the
capability to convey potable water from the North District to the South District and
vice versa.
It was stated that lee &Ro's environmental sub consultant,Helix Environmental,
has prepared the NOP to prepare an Environmental Impact Report (EIR)in
accordance with the California Environmental Quality Act (CEQA).
Engineering Manager Ripperger noted that following the August 10 Board meeting,
the District will publish the NOP in media outlets including the San Diego Union
Tribune -South County Edition,Chula Vista Star-News,and the East County
Californian and send it to the State Clearinghouse and other local agencies.He
stated that the CEQA public notification rules only require that a notice be placed in
a local newspaper of general circulation and that local agencies be notified.
However,similar to the community outreach process for the 36-inch Jamacha
Pipeline Project,the District plans to send a letter to all property owners located
within 1,000 feet of each side of the pipeline alignment and to reach out to
11
community stakeholders including the City of Chula Vista,Bonita Golf Course,
Sweetwater Authority,and area businesses.It was noted that the Project will
include proper construction phases to minimize the impact upon the community.
In response to a question from Director Croucher,Engineering Manager Ripperger
indicated that the District will coordinate its project with other local agencies to
ensure efficiency throughout the construction of the project and to lessen the impact
to the community.
Director Robak inquired if staff received input from neighboring water agencies on
how they transfer water.Staff indicated yes.
REPORTS
15.GENERAL MANAGER'S REPORT
GENERAL MANAGER'S REPORT
General Manager Watton highlighted information from his report that included an
update on Employee Recognition Awards,ESRI Conference,Internal Controls,
Rancho del Rey Groundwater Well Development and the District's potable water
purchases.He indicated that the District's water sales is approximately 4%below
budget.However,August sales are up about 6%,and felt by fiscal year end he
believes that the District will be on budget.
SAN DIEGO COUNTY WATER AUTHORITY UPDATE
General Manager Watton discussed CWA's lawsuit against MWD regarding its rate
increases,which is important because it affects rates at CWA by about $2 billion
over 34 years.He also indicated that CWA be tried in San Francisco due to
possible conflicts.
Director Croucher discussed the Grand Jury's Report which addressed CWA's
issues.He indicated that the report is available on the Grand Jury's website.
16.DIRECTORS'REPORTS/REQUESTS
Director Robak inquired about the check to the California Department of
Transportation in the amount of $99,220.00 for inspection fees (reference page 6 of
GM's Report).Engineering Manager Ripperger stated that throughout the
construction of the 36-lnch Pipeline Project,the California Department of
Transportation provided inspection services and billed the District at the end of the
project.Staff reviewed their invoices and confirmed that the charges were correct.
Director Robak also provided an update on the Water Conservation Garden (WCG)
matters and indicated that the President ofWCG abruptly resigned,as well as two
other board members.He also indicated that he met with the former president of
WCG.
12
Director Lopez commended staff and stated that he was pleased with the outcome
of the Retiree Healthcare Benefit proposal.
Director Gonzalez indicated that he attended the Beads of Courage Golf
Tournament and it was a good event.
Director Croucher stated that he felt the District needs to work on communicating
with the District's ratepayers to assure that they are receiving the correct
information regarding the Retiree Healthcare Benefits proposal.
17.PRESIDENTS REPORT
President Bonilla stated that he is very proud of the District's management staff and
felt that it takes a lot of valor to support the employees Retiree Healthcare Benefit
proposal,while at the same time,represent ratepayers by ensuring that the budget
is balanced.He congratulated them on their professionalism.
18.ADJOURNMENT
With no further business to come before the Board,President Bonilla adjourned the
meeting at 7:30 p.m.
President
ATTEST:
District Secretary
13
AGENDA ITEM 7a
STAFF REPORT
DIV.NO.5R2100-001103PROJECTI
SUBPROJECT:
MEETING DATE:November 2,2011TYPEMEETING:Regular Board
SUBMITTED BY:Daniel Kay'D"-
Associate Engineer
Ron Ripperger ~
Engineering Manager
Rod posad~~
Chief,Engineering
.-
Manny Magana~
Assistant General(~nager,Engineering and Operations
Creation of a New CIP Project and Award of a Construction
Contract to Skyline Services,Inc.for the Recycled Force Main
Access Road Repairs -2011 Project
APPROVED BY:
(Chief)
SUBJECT:
APPROVED BY:
(Ass!.GM):
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District (District)Board of Directors (Board):
1.Authorizes the creation of a new CIP Project,"Recycled Force
Main Access Road Repairs -2011,"in the amount of $210,000
2.Award a construction contract to Skyline Services,Inc.
(Skyline),and
3.Authorizes the General Manager to execute an agreement with
Skyline in an amount not to exceed $109,195 (see Exhibit A for
Project location)
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To create a new CIP project and obtain Board authorization for the
General Manager to enter into a construction contract with Skyline
in an amount not-to-exceed $109,195 for the Recycled Force Main
Access Road Repairs -2011 Project.
1
ANALYSIS:
The District maintains a l4-inch diameter recycled water pipeline
located between the Ralph W.Chapman Water Recycling Facility
(Treatment Plant)and the Jamacha Basin Water Reclamation Site (Use
Area).Operations staff is required to visually inspect the
pipeline twice a week to comply with an agreement with Sweetwater
Authority to ensure that no leaks have developed along the pipeline
route within the Sweetwater Reservoir Basin.The 3.6 mile access
road that allows staff to perform this task crosses several large
drainages and is very steep in some areas.Thus,the visual
inspections are performed by using all-terrain vehicles in order to
traverse the entire pipeline alignment.
The access road was recently improved in the fall of 2008,to
enhance the accessibility of the pipeline and associated
appurtenances.However,during the heavy rains of December 2010 and
January 2011,portions of the access road eroded and developed deep
ruts making access to the pipeline very difficult and unsafe.
The Federal Emergency Management Agency (FEMA)declared the 2010
winter storms a Federal Disaster,and made available funding for
damages caused by the storms.The District submitted the access
road damage,along with damage in different areas,to FEMA for
funding approval.On March 17,2011,Otay received approval from
FEMA stating the projects submitted met their requirements.Since
the approval,representatives from FEMA have been out to the access
road site to get a better understanding of the Project and evaluate
the damages.On May 4,2011,FEMA representatives advised the
District to make the necessary repairs and submit the costs incurred
for reimbursement consideration.Staff is coordinating with FEMA to
determine the final reimbursement amount that will be allowed for
this work.
The road improvements are intended to improve safety for District
staff,reduce damage to District equipment and vehicles,reduce
future maintenance of the road,and improve the reliability of the
pipeline system.
Since the pipeline and access road are located within the San Diego
National Wildlife Habitat Refuge area,a Habitat Conservation Plan
(HCP)was prepared as part of the 2008 road repair project.U.S.
Fish and Wildlife Service has agreed that the existing HCP is still
valid for this new work.As required by the HCP,the new work must
be completed between October 1 and January 15.Skyline will be
required to follow all the rules and regulations imposed by the
USFWS and all requirements specified in the HCP.
2
Staff developed the contract documents and the Project was
advertised for bid on September 7,2011 on the District's website
and several other publications including the San Diego Union Tribune
and San Diego Daily Transcript.
Three (3)addendums were sent out to all bidders and planhouses to
address questions and clarifications to the contract documents
during the bidding period.
Bids were publicly opened on October 4,2011,with the following
results:
CONTRACTOR TOTAL BID AMOUNT
1 Skyline Services,Inc.$109,195.00
2 Waters Edge Construction $145,053.00
3 Seal Right Paving $166,696.00
4 TRI-Group Construction $189,000.00
5 TC Construction $195,595.00
6 Sierra Pacific West $197,000.00
7 FSG General Engineering $199,077.58
8 Moalej Builders $222,050.00
9 PAL General Engineering $246,860.00
The Engineer's Estimate is $219,000.
Staff reviewed the bids submitted for conformance with the contract
requirements and determined that Skyline was the lowest responsive
and responsible bidder.Skyline holds a California Class A
Contractor's License which expires on March 31,2013.The reference
checks indicated an excellent performance record on similar
projects.Skyline has also provided high quality work for the
District in the past.Staff has verified that the bid bond provided
by Skyline is valid.Staff will also verify that Skyline's
Performance Bond is valid prior to execution of the contract.
FISCAL IMPACT:
Instructions for FEMA and the California Office of Emergency
Services (OES)claims require that all work to be completed and
costs incurred documented as a part of submitting a request for
reimbursement.FEMA will then pay 75%and OES will pay 18.5%,for a
total 93.5%reimbursement of all allowed costs.
It is understood that FEMA may not approve a portion of the repairs,
as the officially designated incident period is December 17,2010,
through and including January 4,2011,and some erosion damage was
due to heavy rains that occurred subsequent to these dates.
However,we cannot reasonably estimate the amount of reimbursement
that is likely to be approved at this time.In spite of this,it
3
has been determined that all of the repairs identified in this
Project are required for the District to re-establish and maintain
safe and uninterrupted access between critical District facilities.
Finance has determined that this Project is not included in the
approved CIP budget for FY 2012,and is therefore requesting
approval of this new CIP.100%of the funding is available from the
Replacement Fund.
STRATEGIC GOAL:
This Project supports the District's Mission Statement,"To provide
safe,reliable water,recycled water and wastewater services to our
community in an innovative,cost efficient waterwise and
environmentally responsible manner",as well as the General
Manager's vision,"...prepared for the future..."by guaranteeing the
District will always be able to meet future water supply obligations
and plan,design and construct new facilities.
LEGAL IMPACT:
None.
---M<M/UC
m
General Manager
P:\WORKING\CIP R2100 -Recycled Forcemain Road Storm Repairs\Staff Reports\BD 11-2-11,Staff Report,Forcemain Access Road Repairs Bid
A....ard.doc
KC/DK/RR:j f
Attachments:Attachment A -Committee Action
Attachment B -Budget Detail
Exhibit A -Location Map
4
ATTACHMENT A
SUBJECTIPROJECT:Award of a Construction Contract to Skyline Services,Inc.
R2100-001103 for the Recycled Force Main Access Road Repairs -2011
Project
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee reviewed
this item at a meeting held on October 19,2011 and the following
comments were made:
•Staff requested that the Board authorize the creation of a new
CIP Project,"Recycled Force Main Access Road Repairs -2011,"
in the amount of $210,000 and award a construction contract to
Skyline Services,Inc.(Skyline)in an amount not-to-exceed
$109,195.
•Staff provided a background of the Project and stated that the
Recycled Force Main Access Road is an access road that
operations staff uses to perform inspections and maintenance on
the recycled force main that runs from the Treatment Plant to
the use area,which is north of the Chula Vista Salt Creek Golf
Course.
•Staff indicated that the access road was improved in 2008,but
the rainstorms in December 2010 and January 2011 caused portions
of the road to erode and develop ruts causing access for staff
to the District's pipelines difficult and unsafe.
•Staff stated that the Fema Emergency Management Agency (FEMA)
declared the 2010 storms a federal disaster and made funding
available for damages caused by the storms.It was indicated
that FEMA representatives advised the District to make the
necessary repairs and submit costs incurred for reimbursement
consideration.Staff stated that they are coordinating with
FEMA to determine the final reimbursement amount that will be
allowed for the Project's work.
•Staff discussed the bid process and noted that three (3)
addendums were issued for answers to questions and plan
clarifications.Staff indicated that Skyline submitted the
lowest responsible bid and that results of the bid process are
detailed on page 3 of the staff report.Staff highlighted that
the District has worked with Skyline on past projects and
indicated that they provided high quality work.
•The Committee inquired about the significant difference between
the Engineer's Estimate at $219,000 and Skyline's total bid
amount of $109,195.Staff stated that during the bid process,as
the Project's Scope of Work had already been publicized,it was
discovered that a fabric to be placed underneath the soil was
not necesssary.Since the Scope of Work was already provided to
the public,staff was unable to change the Engineer's Estimate.
It was noted that all bidders were notified about the change
through addendums and had to acknowledge that they read and
received them.
•The Committee inquired if the Sweetwater Authority had any
current projects in the area so that the District could
collaborate its project with them to save money and minimize the
impact to the community.Staff stated that when they acquired an
access permit from the Sweetwater Authority,the Authority
indicated that they do not have any projects currently under
construction in the area.
Following the discussion,the Committee supported staffs'
recommendation and presentation to the full board as a consent item.
6
R2100-001103
ATTACHMENT B-1
ii;uj3jl~C'f~'R(~I~C'r:TAward of a Construction Contract to Skyline Services,Inc.
for the Recycled Force Main Access Road Repairs -2011
ect
Olay Water District
R2100 -December 2010 Storms
Date Updated:October 04.2011
Outstanding Projec/9dFinalBudgetCommittedExpendituresCommitment&Vendor/Comments
210,000 CostForecast
Design
Labor 32,000 31,122 878 32,000
Service Contracts 3,800 1,794 2,006 3,800 MAYER REPROGRAPHICS INC
75 75 .75 SAN DIEGO DAILY TRANSCRIPT
1,380 1,380 1,380 ALTA LAND SURVEYING INC
292 292 292 SAN DIEGO UNION-TRIBUNE LLC
Total Design 37,546 34,662 2.884 37,546
Construction
labor 28.000 -28,000 28.000
Construction Contract 109,195 -109,195 109,195 SKYLINE SERVICES,INC.
Biological Monitor 30,000 30,000 30,000 ICF
Project Closeout 5,000 5,000 5,000
Total Construction 172,195 -172,195 172,195
Grand Total 209,741 34,662 175,079 209,741
Legend
Proposed CI)'lSlrudKlnAccessReule
Proposed Road Re~alrs
8o:isting R!!cyrled Pipeline
=OWD80und'l'f
OTAY WATER DISTRICT
RECYCLED FORCE MAIN ACCESS ROAD REPAIRS -2011
EXHIBITA
r<rs
~
',~',~""
AGENDA ITEM 7b
STAFF REPORT
TYPE MEETING:Regular Board MEETING DATE:November 2,2011
P1253-004000 DIV,NO.4
P2495-001101
APPROVED BY:
(Ass!.GM):
APPROVED BY:
(Chief)
SUBMITTED BY:Lisa Coburn-Boyd ~~PROJECT:
Environmental Compliance
Specialist
Ron Ripperger ~
Engineering Manager
Rod posada~~~
Chief,Engineeringc-'_
Manny Magana ~If',...A ~
Assistant General ~nag';;,Engineering and Operations
Award of a Professional Environmental Services Contract for
the San Miguel Habitat Management Area and
ClP-Associated Mitigation Projects during Calendar Years
2012,2013,and 2014
SUBJECT:
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District (District)Board of Directors
(Board)awards a Professional Environmental Services Contract to
Merkel &Associates for the maintenance and monitoring of the
San Miguel Habitat Management Area and ClP-Associated Mitigation
Projects for calendar years 2012,2013,and 2014 and authorizes
the General Manager to execute an agreement in an amount not-to-
exceed $359,079,56 (see Exhibit A for location map,)
COMMITTEE ACTION:
Please see Attachment A,
PURPOSE:
That the Board authorizes the General Manager to execute a
professional environmental services agreement with Merkel &
Associates in an amount not-to-exceed $359,079,56 for the
maintenance and monitoring of the San Miguel Habitat Management
Area and ClP-Associated Mitigation Projects for calendar years
2012, 2013,and 2014,
ANALYSIS:
The District's Habitat Management Area (HMA)is a 230-acre,
designated biological reserve located within the 509-acre Use
Area property within the City of Chula Vista.The HMA serves
two primary functions:
1.It serves as a mitigation bank that holds
credits that can be utilized to offset Coastal
Sage Scrub habitat impacts associated with the
construction of District projects and
facilities,as part of the requirements under
Section 7 consultation with the U.S.Fish and
Wildlife Service.The 210-acre Coastal Sage
Scrub mitigation bank at the HMA has been in
existence since 1997 and is required to be
monitored and maintained in perpetuity.
2.It serves as a habitat restoration area for
vegetation impacts associated with the
construction of District CIP projects such as
the 3D-Inch Recycled Water Pipeline,450-1
Reservoir,and 680-1 Pump Station,the 850-4
Reservoir,and the 640-1 and 640-2 Reservoirs.
In addition to the maintenance and monitoring for the HMA,the
project consultant will also be responsible for three years of
maintenance and monitoring of the 3D-Inch Recycled Water
Pipeline,450-1 Reservoir,and 680-1 Pump Station restoration
areas,the 640-1 and 640-2 Reservoirs revegetation maintenance
and monitoring and the 850-4 Reservoir restoration maintenance
and monitoring.The District is required to conduct biological
monitoring,provide continuous maintenance,and submit annual
reports to the U.S.Fish and Wildlife Service and the California
Department of Fish &Game for these projects.The consultant
may also be responsible for the maintainence and monitoring of
any revegetation areas as a result of the construction of the
Wueste Road Recycled Water Pipeline.The contract assumes two
years of effort for this work,but states that this work may not
be necessary if the pipeline is not constructed during the time
period of the contract.
ICF International is the firm that currently has the contract
for the HMA maintenance and monitoring.Their contract will
conclude on December 31,2011.In order to have a new
consultant on board immediately following the end of this
2
contract so that maintenance services are not neglected,the
District solicited Professional Environmental Consulting
Services from consulting firms by placing an advertisement on
the District's website and in the San Diego Union Tribune and
Daily Transcript.Twelve (12)firms submitted a Letter of
Interest and Statement of Qualifications.The Request for
Proposal (RFP)was sent to all twelve firms resulting in three
(3)proposals received on September 8,2011,from the following
consulting firms:
CONSULTING FIRM PROPOSED FEE
Chambers Group $1,790,440
IFC International $644,590
Merkel &Associates $359,080
The consultant selection panel was comprised of five District
staff members,four from Engineering and one from Operations.
Staff evaluated and scored the written proposals and interviewed
all three firms.After holding the interviews,the panel
completed the consultant ranking process and Merkel &Associates
was the firm that received the highest overall score.Merkel &
Associates also had the lowest total cost.References for
Merkel &Associates were checked and received high ratings.A
summary of the complete evaluation is shown in Attachment B.
This contract amount includes all work expected to be performed
::::.:a:::::T:",'~mber ""'ehree ca'endar yeara'.
The committed funds for this contract totaling $359,076.56 will
be expended from Calendar Year 2012 through Calendar Year 2014
encompassing Fiscal Years 2012-2015 and are budgeted for in the
Operating Budget (approximately 30%)and the CIP Budget
(approximately 70%).The costs for the remainder of Fiscal Year
2012 are covered by the existing CIP and operating budget.
Costs falling within the future fiscal years will be budgeted
for in the normal budget process accordingly.Staff does not
anticipate that future years'budgets will increase due to this
contract.
Based on a review of the financial budgets,the Project Manager
anticipates that both the Operating Budget and the CIP Budget
will be sufficient to support the CIP Projects.
3
Finance 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 the best quality of water and wastewater service to the
customers of the Otay Water District,in a professional,
effective,and efficient manner."
LEGAL IMPACT:
None.
Gene
P:\WOR NG\CIP P2495 -San Miguel HMA and Assoc.Mitigation Projects\Staff Reports\HMA Services
Contract Staff Report -2012-2014.doc
LCB/RR:j f
Attachments:Exhibit A -Location Map
Attachment A -Committee Action
Attachment B Summary of Proposal Rankings
Attachment C Presentation
4
P1253-004000
P2495-001101
ATTACHMENT A
Award of a Professional Environmental Consulting Services
Contract for the San Miguel Habitat Management Area and
CIP-Associated Mitigation Projects during Calendar Years
2012,2013,and 2014
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee
reviewed this item at a meeting held on October 19,2011 and the
following comments were made:
•Staff requested that the Board award a Professional
Environmental Services Contract to Merkel &Associates for
the maintenance and monitoring of the San Miguel Habitat
Management Area (San Miguel HMA)and CIP-Associated
Mitigation Projects for calendar years 2012, 2013,and 2014
and authorizes the General Manager to execute an agreement
in an amount not-to-exceed $359,079.56.
•The San Miguel HMA is the District's 230-acre designated
biological reserve that surrounds the Salt Creek Golf Course
in Chula Vista,within the District's 509 acre-use area,and
was established in 1994 as mitigation for District impacts
to the California gnatchatcher and it's critical habitate,
coastal sage scrub.
•Staff stated that the San Miguel HMA also includes
restoration areas for other vegetation impacts associated
with District projects,such as the Rickey Pond Area and the
Burrowing owl burrows in the eastern grasslands that were
established because of impacts from the construction of the
711-3 Reservoir.The Maritime Succulent Scrub and the Otay
tarplant restoration areas are also mitigation for impacts
from the 30 R pipeline,450 Reservoir,and 680 Pump Station.
•Staff indicated that maintenance,monitoring and reporting
services would be provided under the contract.It includes
control of invasives,trash and debris removal,fence
repair,coordination with golf course staff,monthly
monitoring and annual surveys,gnatcatcher,LBV,quino,rare
plants,and monthly/annual written reports to U.S.Fish and
Wildlife Service and the California Department of Fish and
Game.
•Also provided in the PowerPoint were CIP-Associated
Mitigation Projects.Staff indicated that the Wueste Road
Revegetation Area is a potential project that may be
included in the contract once it is built.It is understood
by both the District and contractor that if the project is
not built,it will not be included in the services contract.
•Staff discussed the selection,evaluation and ranking
process and indicated that Merkel &Associates received the
highest rating.It was noted that staff checked out the
references of Merkel &Associates and they received high
ratings.Refer to page 3 of the staff report for further
details.
•In response to a question by the Committee,staff stated
that the District had previously worked with Merkel &
Associates and indicated that they had excellent services
and is a well credited company.However,in the past
several years,Merkel &Associates were not selected for
this project because of the competitive process.Staff
stated that they have discussed the District's expectations
with Merkel &Associates and is confident that they will
perform well as they have in the past.
•In response to a question by the Committee,staff stated
that Merkel &Associates was able to submit a lower bid
because a large part of the contract is maintenance and
Merkel uses their own in-house staff rather than
subcontractors like the other two firms.Additionally,when
the HMA contract was previously awarded three years ago,
there were several areas at the HMA that had specific
requirements mandated by the U.S.Fish and Wildlife Service
and the California Department of Fish and Game that needed
more intensive services.These areas have been signed off by
the Agencies and the services are not needed for this
contract.
Following the discussion,the Committee supported staffs'
recommendation and presentation to the full board as a consent
item.
NTS
LOWER OTAY
RESERVOIR
I -*I"640 REGULA TORY
SITE
WUESTE RD
SITE
....
SWEETWATER ............
RESERVOIR ...........__...
•HMA
"\U.S.,t..._
.\_ .J-. - . - .ME·XICO._.-
850-4
SITE
*-----450/680
SITE
_._.
CIP#P2495
DTAY WATER DISTRICT
SAN MIGUEL HMA &CIP-ASSOCIATED MITIGATION PROJECTS
LOCA TION MAP
EXHIBIT A
ATIACHMENT B
SUMMARY OF PROPOSAL RANKINGS
P2495 -San Miguel HMA &Clp·Associated Mitigation Projects
ev~wPaneldeesnot seeor consider Ie"whenSCOring olhercalegorles.Fooisscoredbythe PM,whoIs n01 on Review Panel.
WRITTEN ORAL
Understanding at SOUOOOOS6and INDIVIDUAL AVERAGE Coosultam's AVERAGE AdctI1ional Presentall00,Ouallty01 TOTAL SCORE REFERENCESQuali~cations01 Vwbililyof St,erlg1h 01 INDIVIDUAL AVERAGEe.,Seep",Schedu~Proposoo Pmje<:1 SUBTOTAL·SUBTOTAL-ProlXlsed Foo'C<lmmilmllntto TOTAL Cr"allvltyand ProjectManager Communication Response 10 TOTAL-ORAL TOTAL ORALandResoll'"e"Plan WRITTEN WRITTEN '"WRITTEN Insight Skills Questions
MAXIMUMPOINTS '""'"""",~'"""""""'"Poor/Goodl
Excellenl
Davi(/C~arl8s """""","'"Roger Holly """69 "W ,,"Chambers ---68 1 y 69 38 107GroupBobK,mn~dy "~"00 ""","---
RfJdPosadt,""~""""""------
RonRlpp<.Jrget """""",,"DilVidCharles "-"~69 "",,"RogcrHOfIy """'"""","leFlntl.Bob KelJflBdy ------73 12 N 85 42 127""""""","[---Rod Pos;;;;;--,,--""""",""------Roi'Rrpp9,ger """""",,'"DavidChar/1M """""",,"
-Roge~"""n "",,"---Merkel BobKer1l1edy "n ""73 15 y 88 "",,"43 131 Excellent-----RodPosada ""'"""",,'"Ron R'pPergcr """"",.,,".,
fEE SCORINGCHART
Consultant Proposedfile Position Score
Merk..1 $359.080 lowest "ICfInt!$6~~,590 "Chamoors Group $1.790,440 highest ,
P,\WORKINGICIPP2495 -San Migool HMAand Assoc.MjjigalionProJec1slSlallRe-pons\HMA ConIIaCl2012-2014_$ummaryof ProposalR.nnlJngs -Foe and Int"",klw
Otay Water District
Professional
Environmental
Services for the San
Miguel Habitat
Management Area &
CI P-Associated
Mitigation Projects
for
Calendar Years
2012-2014
San Miguel HMA
230 acre biological reserve
established in 1994 by OWD
as mitigation for District
impacts to coastal California
gnatcatcher and coastal sage
scrub habitat
To date,58 acres have been
committed for existing and
previous OWD projects
Must be maintained in
perpetuity
Rickey Pond Area
OtayTarplant Restoration Area -
Eastern Grasslands Area
Maritime Succulent Scrub
Restoration Area
Burrowing Owl Burrows in
Eastern Grasslands
HMA Maintenance,Monitoring &Reporting Tasks
Maintenance
•Aggressive nonnative plant species removal
•Trash &debris removal in areas adjacent to golf
course
•Perimeter fence upkeep and repairs
Monitoring
-Monthly monitoring to assess efficacy of the maintenance efforts
-Identification of any potential problems or threats to biological
resources
-Protocol California coastal gnatcatcher surveys annually
Reporting
-Monthly monitoring &progress reports for the District
-Annual reports that are submitted to the US Fish &Wildlife Service
and California Dept.of Fish &Game,includes monthly monitoring
reports
U.S.~JSH&WII.J)LJ1'II
~J5",VIe!5
.':""'~~"
'TIIF.,
tl:~
CIP -Associated Mitigation Projects
Three (I P projects and one potential project require
maintenance,monitoring &reporting for mitigation areas both
on-site and at the HMA
•30-inch Recycled Water
Pipeline,450-1 Reservoir &
680-1 Pump Station
Restoration Projects
•640-1 &640-2
Reservoirs Coastal
Sage Scrub
Revegetation Project
•850-4 Munz's Sage
Restoration Project
•Wueste Road Revegetation
Area (when built)
2012-2014 Contract
•Proposals received from three firms
•Consultant selected using Consultant Selection Process and in accordance
with District Policy 21
•Merkel &Associates is the selected consultant
•Contract will be for three years but agreement will require that the
budget for years 2 and 3 be submitted and approved before starting work
each year
Questions?
AGENDA ITEM 7c
STAFF REPORT
3,4
November 2,2011
P2370-01102 DIV.
NO.
MEETING DATE:
PROJECTI
SUBPROJECT:
APPROVED BY:
(Ass!.GM):
SUBJECT:
APPROVED BY:
(Chief)
TYPE MEETING:Regular Board
SUBMITIED BY:Jeff Marchioro 1'(1"
Senior Civil Engineer
Ron Ripperger ~
Engineering Manager
Rod posada~~~
Chief,Engineering
Manny Magana~
Assistant General ~ager,Engineering and Operations
Award of a Construction Contract to TC Construction,Inc.
for La Presa System Improvements
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District (District)Board of Directors (Board):
1.Increase the budget for P2370 by $250,000 (increase the overall
CIP budget from $960,000 to $1,210,000)
2.Award a construction contract to TC Construction,Inc.(TC
Construction),and
3.Authorize the General Manager to execute an agreement with TC
Construction in an amount not-to-exceed $978,995 for the La
Presa System Improvements Project (see Exhibit A for Project
location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a
construction contract with TC Construction in an amount not-to-exceed
$978,995 for La Presa System Improvements.
ANALYSIS:
In 2004,District staff completed a report titled,"North District
Modifications Design Report"(2004 Design Report)to address
deficiencies in the La Presa transmission system and storage capacity
in the North District.Subsequently,in February 2011,staff
completed a preliminary design report titled "La Presa System
Improvements Project Preliminary Design Report"(2011 PDR)to update
portions of the 2004 Design Report and combine the following projects
into the current Project:
•Dorchester Reservoir and Pump Station Demolition (current CIP
P2370)-The existing 1 MG Dorchester Reservoir has not been
used for approximately 10 years.The Dorchester Reservoir was
originally designed to store water from the San Diego County
Water Authority's Second Aqueduct (Pipeline 3)with the inherent
inefficiency of "breaking head"(640 hydraulic grade line)to
the Dorchester Reservoir (451 high water level).A pump station
located at the Dorchester Reservoir site was then utilized to
pump the water to the 590 Pressure Zone.When the Dorchester
Reservoir was taken out of service,the Dorchester Pump Station
was retrofitted to reduce pressure from the District's existing
640 Pressure Zone to the 590 Pressure Zone.The 590 Pressure
Zone currently serves 63 customers.The current Project
includes demolition of the 1 MG steel reservoir,building,pump
station,vaults,piping,and appurtenances and the construction
of a new interconnection located in Dorchester Street.The
existing 590 Pressure Zone will become part of the existing 640
Pressure Zone resulting in an approximate 22 psi increase for 63
customers.Once the new interconnection has been constructed
and demolition completed,the property may be suitable for sale.
•850/657 PRS (formerly CIP P2471)- A new pressure reducing
station (PRS)will be constructed to replace the existing 657-1
pump station located at the La Presa Pump Station site.
Currently,the existing 657-1 pump station draws water from a
forebay reservoir (380 elevation)which is fed from Pipeline 3.
Once the PRS is constructed,the PRS will become the primary
feed for the 657 Pressure Zone.The existing 657-1 Pump Station
has reached the end of its useful life and will be removed.
2
•La Presa Pump Station Demolition (formerly CIP P2357)-The
existing 850-1 pump station is no longer in use and the existing
657-1 pump station will no longer be needed after construction
of the 850/657 PRS.The work includes demolition of a 0.13 MG
forebay reservoir,pump stations,building,chlorine station,
SDG&E owned transformer,hydraulic structures,vaults,piping,
and appurtenances.The demolition work also includes four
disconnections from existing facilities in Jamacha Boulevard
including one disconnection from the existing 18-Inch San Diego
County Water Authority La Mesa Sweetwater Extension (LMSE)and
three disconnections from District facilities.
•Various Interconnections (formerly P2318)-To improve fire
flow,system reliability and water quality,four separate
interconnections will be made from two transmission mains (the
36-Inch La Presa Transmission Main and a 42-Inch Transmission
Main near FCF11)to the distribution system.
Staff prepared the contract documents in-house together with
assistance from the District's As-Needed Corrosion and Electrical
Consultants.
The Project was advertised for bid on September 12,2011.A Pre-bid
Meeting and site visit were held on September 20,2011,which was
attended by four (4)contractors.One addendum was sent out to all
bidders and plan houses on September 28,2011 to address contractors'
questions asked during the bidding period.Staff solicited the
interest of contractors that had performed successfully on District
projects in the past to encourage them to submit a bid.
Two (2)bids were received on October 4,2011.The table below
provides the bid results.
CONTRACTOR TOTAL BID
AMOUNT
1.NEWest Construction $1,087,000Company,Inc.
2.TC Construction Co.,Inc.$978,995
The Engineer's Estimate is $750,000.
Staff reviewed the bids submitted for conformance with the contract
requirements and determined that TC Construction was the lowest
responsive and responsible bidder.TC Construction holds a valid
California contractor's license with multiple classifications
including A and C21,both in good standing.
3
Overall,the reference checks indicated a good performance record by
TC Construction on similar past projects.Staff has verified the bid
bond provided by TC Construction is valid.Staff will also verify TC
Construction's performance bond is valid prior to execution of the
contract.TC Construction has previously worked with the District on
the 450-1 Reservoir/680-1 Pump Station project and the 16-inch and
30-inch 803/850 Transmission Mains project.
Initially,staff estimated the Project scope at $800,000.However,
due to the past favorable bidding conditions since the downturn of
the economy,staff advertised the Project construction cost at
$750,000.During the bid process,staff prepared an addendum to the
Contract Documents increasing the scope of work by approximately
$50,000 for demolition work at the La Presa Pump Station site
(facilities will be completely removed rather than abandoned three-
feet or greater below grade)and for additional requirements to
facilitate compliance with standards and regulations applicable to
demolition of facilities containing lead paint and other hazardous
materials.Staff did not increase the Engineer's Estimate for the
additional complexity of the Project,again due to the recent
experience of receiving low bids 10-20%lower than the Engineer's
Estimate.
The $250,000 budget increase is needed to account for the following
modifications made to the design throughout the preliminary and final
design and bidding process:
Characterization of hazardous coatings at the La Presa Reservoir
site
Complete removal rather than abandonment of existing below grade
piping and structures to facilitate future sale of the
Dorchester property.
Complete removal rather than abandonment of existing below grade
piping and structures to facilitate future improvements and/or
partial sale of the La Presa property.
Refined the disconnect from the San Diego County Water Authority
La Mesa Sweetwater Extension (LMSE)per SDCWA's preference and
complete removal rather than abandonment of associated LMSE
piping in Jamacha Boulevard per the County of San Diego's
preference.
Refined contract requirements to facilitate compliance with
standards and regulations applicable to demolition of facilities
containing lead paint and other hazardous materials.
Refined and combined four CIP numbers (P2318,P2357, P2370,
P2471)into the current project.
Because only two (2)bids were received,staff contacted several
general contractors to inquire as to why they did not bid the
Project.A variety of reasons were given and they are shown in the
table below:
4
CONTRACTOR REASON
l.Falcon General Engineering Too busy with other project
work
2.Spiess Construction Company Estimator was sick
Specialize in large diameter
3.Mladen Buntich Construction pipe and tunneling rather than
this type of work
Specialize in tank building
4.Pacific Hydrotech Corporation and would have subcontracted
out all work
Submitted bid;commented after
bid opening not surprised by
5.NEWest Construction Company,the number of bids because of
Inc.complexity of work and a
recent change in the bidding
climate
6.TC Construction Co.,Inc.Submitted bid
Very busy;picked up a couple
of City of 3D jobs;estimators
7.Cass Construction are swamped;they just bid a
project for Sweetwater
Authority and were the only
bidder
Busy with a design build
Arrieta Construction project;this Project is right8.up his alley,but just doesn't
have the manpower for the work
9.Burtech Pipeline Too busy
10.CCL Contracting No manpower available to meet
the Project deadlines
This Project is more complicated than a typical new installation
where more production can be achieved such as installing linear pipe.
It also involves critical milestones and specialized work components.
At the La Mesa Pump Station site,the demolition of the existing
facilities must occur during the winter and spring months and the new
facilities must be on-line before the higher water demand period
begins.The new PRS must be up and running to ensure that the 657
Pressure Zone will have adequate water in the spring and summer.In
addition,the pipeline disconnections in Jamacha Boulevard,adjacent
to the La Presa site,will need to be completed prior to the County
of San Diego road paving work that is currently scheduled for January
2012.
5
The Project is scheduled to begin in November 2011 and completed in
Fiscal Year 2013.Based on the budget forecast (Attachment B),the
current budget will need to be increased by $250,000 to cover all
projected costs for the Project.
FISCAL IMPACT:
The FY 2012 budget for CIP P2370 is $960,000.Total expenditures,
plus outstanding commitments and forecast,including this contract,
are $1,210,000.See Attachment B for budget detail.
Based on a review of the financial budget,the Project Manager
anticipates that with a budget increase of $250,000 the Project will
be completed within the new budget amount of $1,210,000.
As a part of the 2013 budget process,the reserve where this CIP is
funded from will be assessed and will be allocated the necessary
funds at that time.It is anticipated that the actual overall CIP
expenditures will be well below the overall CIP budget making
sufficient reserves available to fund this budget increase.
STRATEGIC GOAL:
This Project supports the District's Mission statement,"To provide
the best quality of water and wastewater services to the customers of
Otay Water District,in a professional,effective,and efficient
manner."This Project fulfills the District's Strategic Goals No.1
-Community and Governance,and No.5 -Potable Water,by maintaining
proactive and productive relationships with the Project stakeholders
and by guaranteeing that the District will provide for current and
future water needs.
LEGAL IMPACT:
None.
P,\WORKING\CIP P2370 -Dorchester (see P2471)\.,0 300xx\Staff Reports\BD-ll-02-2011,Staff Report,La presa Sys Imp (JM-RRJ .doc
JM/RR:jf
Attachments:Attachment A -Committee Action
Attachment B -Budget Detail
Exhibit A -Location Map
6
P2370-001102
ATTACHMENT A
SDBjECTIF'R(jjE:ci'::.AA~w2aLrr;d of a Construction Contract to TC Construction,Inc.
for La Presa System Improvements
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee reviewed
this item at a meeting held on October 19,2011 and the following
comments were made:
•Staff requested that the Board authorize an increase to the
overall 2011-2012 CIP Budget from $960,000 to $1,210,000 and
award a Construction Contract to TC Construction,Inc.in the
amount of $978,995 for the La Presa System Improvements Project.
•Staff stated that the project includes work at six (6)separate
sites and involves the following:
o Demolition of two (2)reservoirs (Dorchester and La Presa
Forebay)
o Demolition of three (3)pump stations
o Construction of the 850/657 pressure reducing station
o Construction of five (5)640 Pressure Zone
interconnections
•It was noted that staff prepared the contract documents in-house
together with assistance from the District's As-Needed Corrosion
and Electrical Consultants.
•Staff discussed the solicitation and bid process and indicated
that two (2)bids were received on October 4,2011.Staff
stated that TC Construction submitted the lowest responsive bid
and results of the bid process are listed on page 3 of the staff
report.
•As a result of only two (2)bids received by the District,staff
noted that they contacted several general contractors to obtain
some feedback as to why they did not submit bids.A variety of
reasons were given in the staff report including:
o Too busy with existing work
o Lack of sufficient manpower available for the project
o Felt that the project was more complex than similar
projects where more production could be achieved such as
in pipeline construction
The Committee commended staff for their efforts to obtain
feedback as to why other general contractors did not submit
bids.
•Staff stated that the initial Engineer's Estimate including the
work added in Addendum 1 was $850,000.However,with the past
bids coming in at 10-20%lower than the Engineer's Estimate,
staff lowered the Project Engineer's Estimate to $750,000 in the
bid advertisement to account for the present economic
conditions.The $250,000 budget increase is needed to account
for the several items of work added during the design process
including:
o Complete removal rather than abandonment of existing
facilities to facilitate future improvements and/or future
sale of property.
o Refined the disconnect from the SDCWA La Mesa Sweetwater
Extension (LMSE)facility per SDCWA's preference and
complete removal rather than abandonment of associated LMSE
piping in Jamacha Boulevard per the County of San Diego's
preference.
o Field testing of hazardous coatings at the La Presa
Reservoir site
o Refined contract requirements related to hazardous
materials
•The Committee inquired about staff's proposal to combine so many
projects under one (1)project instead of individually.Staff
stated that they combined the different projects to save money
and streamline the contract process.In addition,there is a
similarity in work for all of the projects.All the work is
necessary and is directly related to the implementation of the
new 640 Pressure Zone which includes the two 640 regulatory
reservoirs and the Jamacha Pipeline.
•Staff noted that they had considered removing Site 1 from the
Project to stay within the District's CIP budget.However,they
believe that expediting the work for Site 1 to collaborate with
the County of San Diego's project would be more efficient,save
the District money,and cause less impact to the community
within the Jamacha Blvd.area.
Following the discussion,the Committee supported staffs'
recommendation and presentation to the full board as a consent item.
P2370-001102
ATTACHMENT B
sU~jiEt;TIIPR6jEC:T:'T'AA~w;;a~~r~ddl;o;ff'-"~a;-';C:co:rnstruction Contract to TC Construction,Inc.
for La Presa System Improvements
Olay Water District
P2370 -Res -DorchesterRes &PS Demolition
Dare Updated:October 06,2011
Outstanding ProjectedFinalBudgetCommittedExpendituresCommitment&Vendor,commenfs
1,210,000 CostForecast
Planning
Labor 1,919 1,919 I 1,919
RegulatoryAgency Fees 50 50 ;50 PETTY CASH CUSTODIAN
Service Contracts 204 204 -204 US BANK CORPORATE PAYMENT
Total Planning 2,173 I 2,173 -I 2,173
Design I
Labor 78,045 78,045 -78,045
Consultant Contracts 1,285 1,285 -1,285 ALTA LAND SURVEYING INC
1,330 1,330 -1,330 V &A CONSULTING ENGINEERS
Construction Contracts 2,687 2,687 -2,687 CPM PARTNERS INC
Service Contracts 304 304 -304 SAN DIEGO UNION-TRIBUNE LLC
76 76 -76 SAN DIEGO DAILY TRANSCRIPT
Total Design 83,728 83,728 I -83,728
Construction
Labor 70,384 1,119 69,265 70,384
Construction Contracts 978,995 978,995 978,995 TC CONSTRUCTION INC
Contingency (3%)29,370 29,370 29,370
Closeout 5,000 5,000 5,000
ftJr Monitoring 10,000 10,000 10,000 To be determined
Meter Relocations 30,350 30,350 30,350 PACIFIC METER SERVICES
Total Construction 1,124,099 1,119 1,122,980 1,124,099
Grand Total 1,210,000 87,020 1,122,980 1,210,000
...~0Vl
CIP P2370
SITES
1.LA PRESA RESERVOIR &
PUMP STATION
2.DORCHESTER RESERVOIR
3.KEMPTON ST.INTERCONNECTION
4.GRAND AVENUE INTERCONNECTION
5.MARIA AVENUE INTERCONNECTION
6.OWD FCF#11 INTERCONNECTION
OTA Y WATER DISTRICT
LA PRESA
SYSTEM IMPROVEMENTS
VICINITY MAP
•...-ERIAL
BEACH
Tijuana fstuary \-----e~
,~~•8
0-,ELCAJON-0
Mission
Bay•0-·•
EXHIBIT A
STAFF REPORT
AGENDA ITEM 8a
TYPE MEETING:
SUBMITTED BY:
Regular Boar~/~~
James CUdlir(,~~~Manager
MEETING DATE:
W.O./G.F.NO:
November 2,2011
DIV.NO.All
APPROVED BY:
(Chief)
APPROVED BY:
(Assl.GM):
SUBJECT:
_-..:~7~
Joseph R.Beachem,Chief Financial Officer
German Alvari2,Agsistant General Manager,Finance andAdministr~
Approve the District's Audited Financial Statements for the
Fiscal Year Ended June 30,2011
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 30,2011.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To inform the Board of the significant financial events which
occurred during the fiscal year ended June 30,2011 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 the financial position of the District.They found no
material errors in the financial records or statements.
However,there were specific findings and comments concerning
internal controls,and financial statement adjustments that were
made during the audit,which are presented in their "Management
Letter"(Attachment C)and the "Audit Committee Letter"
(Attachment D)
Total Assets:
Total assets decreased by $6.0 million or 1.00%during Fiscal
Year 2010,to $598.5 million,due primarily to the write-off of
fixed assets that were no longer serviceable,and several CIP
projects that were no longer viable as a part of the District's
long range plans for growth and improvements to infrastructure.
Total Liabilities &Net Assets:
Total liabilities decreased by approximately $4.2 million or
3.00%from the previous fiscal year,to $138.9 million.This is
attributable to a combination of a decrease in long-term debt of
$2.7 million,and a decrease in accounts payable of $2.3
million.Fluctuations of this magnitude are expected given the
nature of accounts payable,and result from the timing of large
payments to vendors and other third parties.
The decrease in total assets of $6.0 million,along with the
decrease in total liabilities of $4.3 million,yields a decrease
in net assets (equity)of $1.7 million or 0.38%,to $459.6
million.
Capital Contributions:
Capital contributions totaled $8.0 million during Fiscal Year
2011,a decrease of $0.8 million or 9.22%from Fiscal Year 2010
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 $2.4 million or 3.89%,mainly as a
result of the overall increase in water rates from the prior
fiscal year.
While cost of water sales increased $2.7 million or 6.84%due to
the increase in CWA water costs,cost savings achieved in other
areas were sufficient to keep total operating expenses from
rising significantly compared to the prior fiscal year.
Non-Operating Revenues &Expenses:
Non-operating revenues were virtually unchanged from the prior
fiscal year,at $8.8 million for 2011 versus $8.9 million for
2010.While there was a decrease in investment income of almost
$500,000 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.
2
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 identified two specific
deficiencies in accounting procedure internal controls
that they considered to be material weaknesses.These
findings and management's responses are in 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 four 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 30,2011.One additional,late finding
was not booked,as management and the auditors agreed the
affect was immaterial to the financial statements taken
as a whole.
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.
FISCAL IMPACT:
None.
STRATEGIC OUTLOOK:
~.
/
The District ensures its continued financial health through
long-term financial planning,formalized financial policies,
3
enhanced budget controls,fair pricing,debt planning,and
improved financial reporting.
LEGAL IMPACT:
None.
General Manager
Attachments:
A)Committee Action Form
B)Audited Annual Financial Statements
C)Management Letter
D)Audit Committee Letter
E)Report on Applying Agreed-Upon Procedures
4
ATTACHMENT A
Approve the District's Audited Financial Statements for the
SUBJECT/PROJECT:Fiscal Year Ended June 30,2011
COMMITTEE ACTION:
The Finance,Administration and Communications Committee
reviewed this item at a meeting on October 19,2011 and the
following comments were made:
•Messrs.Nitin Patel and David Foreman,of Diehl Evans &
Company,LLP (DEC),attended to present the results of the
audit of Fiscal Year Ended June 30,2011.
•DEC's audit of Fiscal Year Ended June 30,2011 resulted in an
unqualified opinion.This is the highest level of ·opinion"
which is commonly known as a ·clean"opinion and they found no
material errors.
•Staff presented some highlights from the audit that included:
o Total assets decreased $6 million.This is partially due
to staff completing an extensive review of assets and
identifying some assets that have been fully depreciated,
but were never removed from the books.Also,as the
economy has slowed,the District has been reducing its CIP
which no longer requires the District to have as much cash
on hand to cover CIP expenditures.
o Total liabilities decreased $4.2 million as the District
has paid down debt by $2.7 million and accounts payable
has decreased by $2.3 million.
o Operating Expenses and Revenues have increased due to the
higher cost of water from the District's wholesalers and
increased rates respectively.
o Non-Operating Revenues and Capital Contributions are
similar to last year.
•One of the areas that the auditor reviews is internal
controls.It was discussed that the District has not had a
management letter for a number of years and this year the
auditors have issued a management letter to the audit
committee.In their letter they identified two (2)issues
with regard to internal controls:
Y:\Board\CurBdPkg\FINANCE\CommMtgAudit11-2-11.doc
•
Journal entry process:Sr.Accountants have the ability
to create and post entries,though they are not
authorized to do both.Over a two-year period
(approximately 6000 entries),two occasions were
identified where a Sr.Accountant created an entry and
posted it.In both cases,the Sr.Accountant had found
an error that another employee had made and reversed the
error and posted the correction.The auditors indicated
that the District's process was fine,if the District had
a way to identify that the process is being followed.
Staff has implemented a new process which was reviewed
with the auditors and they have agreed that the new
verification process is sound.The District should not
have this issue again in future.
Bank reconciliation process:Customer bill payments were
double posted to the District's general ledger in error.
One way in which this can happen is when a customer,
while making an online bill payment,hits the payment
button twice.This generates two payment postings.When
this occurs,the credit card company will notify the
District of a possible duplicate payment and the
District,if the payment is identified as a double
payment,will advise the credit card company to process
only one payment.However,the double payment is
automatically forwarded to the general ledger and both
payments are posted,one correctly and one in error.
There were no monies lost,but this does create an
accounting error.The auditors indicate that the
District's controls should catch this double posting.An
improvement to the monthly reconciliation process was
implemented to capture any credit card errors,such as
these double entries.
In addition to the management letter,the auditors will list
any adjustments that they recommend with regard to accounting
transactions.DEH identified four transactions requiring
adjustments:
Related to the above bank reconciliation process where
double payments were received from on-line bill payments
which then created a double general ledger entry,these
double entries were corrected.
Adjustments were made related to when and how Capital
Projects are booked as fixed assets or expense.Based on
discussions with the District's Engineering Department,
staff identifies how and when a Capital Project is closed
out to an asset or possibly an expense.As a result of
further discussions with the auditors,a number of
Capital Projects were closed out earlier than they
otherwise would have been.Some to fixed assets,and
some,because it was determined that they would not
directly contribute to a future facility,were closed to
expense.An additional entry was required to adjust
capitalized interest.This adjustment was necessary
because the value of Capital Projects remaining in work-
in-process had changed.
The final adjustment was related to reimbursements
received from Caltrans.The facilities were booked at
the net value and they should have been booked at gross
value.
Staff indicated that an entry was found related to the
estimate of capital costs from the Spring Valley
Sanitation District.As this item was found late in the
audit process,and it was considered immaterial to the
financial statements as a whole,an adjustment was not
made .
•Mr.Patel noted that their firm has just merged with another
CPA firm and their firm's new name is White Nelson Diehl
Evans,LLP.He stated that his firm has issued:
Their opinion on the District's Financial Statements
Report on Internal Controls,Financial Reporting and
Compliance in Accordance with Government Auditing
Standards
o This report indicates the two recommendations to
improve internal controls
Report on Communications with those in Charge of
Governance
o It specifically reports the general ledger
adjustments their firm recommended as a result of
their audit.
•DEC indicated that they compared the 2010 and 2011 Financial
Statements.He stated that their responsibility as auditor is
to express their opinion on the District's Financial
Statements.DEC stated that they have issued an unqualified
opinion and indicated that the District's Financial Statements
represent fairly the financial position of the Otay Water
District in accordance with generally accepted accounting
standards.
•DEC stated that did not encounter any difficulties in
performing the audit.
•
•
The committee inquired how much of the water in the District's
pipelines is tracked/identified as an asset.The District has
been booking the water,both in the tanks and in the pipes,as
an asset since 2005.As of June 30,2011,the value of the
District's water,both potable and reclaimed,is $336,645.
The committee indicated that it is good to know that the
system is working in that the audit identified some minor
areas where improvements could be made.They were pleased
with the unqualified opinion and were very proud of the
District's Finance Division and the awards that they have
received.
Following the discussion,the committee supported presentation
to the full board as an action item.
OTAY WATER DISTRICT
FINANCIAL STATEMENTS
WITH REPORT ON AUDIT BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
JUNE 30,20 II AND 2010
Attachment B
JUNE 30,2011 and 2010
Page
Number
Independent Auditors'Report
Management's Discussion and Analysis (Required Supplementary Information)
Basic Financial Statements:
Statements of Net Assets
Statements ofRevenues,Expenses,and Changes in Net Assets
Statements ofCash Flows
Notes to Financial Statements
Required Supplementary Information
Schedule of Funding Progress for PERS
Schedule of Funding Progress for DPHP
I - 2
3 - 7
8 - 9
10
II -12
13 -37
38
38
October 13,20II
INDEPENDENT AUDITORS'REPORT
Board of Directors
Otay Water District
Spring Valley,California
'We have audited the accompanying basic financial statements of Oray Water District as of and for the years
ended June 30,2011 and 2010,as listed in the table of contents.These basic financial statements are the
responsibility of the Gray Water District's management.Our responsibility is to express opinions un these
financial statements based on our audits.
\Ve conducted our audits in accordance with auditing standards generally accepted in th~United States of
America,the State Controller's Minimum Audit Requirements for Califol11ia 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 signi ticant 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 30,2011 and 2010,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 13,201 I 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 ofour 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 tinancial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and
should be considered in assessing the results ofour audit.
2965 Roosevelt Street, Carlsbad,C:\92008-2389 •Tel:760.729.2343 •Fax:760.729.2234
OJ]iax lo~'tJ'ed in Orange alld Sail Diego COlmlicJ·
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 01'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
tinancial 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
infotmation 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 ofthe basic financial statements.\Ve do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with sufticient
evidence to express an opinion or provide any assurance.
2
1I,
•Management's Discussion and Analysis
As management of the Dtay Water District (the "District").we offer readers of the District's financial statements this
narrative overview and analysis ofthe District's financial performance during the fiscal year ending June 3D,2011.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 ofdollars.
Financial Highlights
•The assets ofthe District ex.ceeded its liabilities at the close oflhe most recent fiscal year by $459.6 million
(net asseh).Gfrhis amount,S77.0 million (wlreslricteel net assets)may be used to meet the District's ongoing
obligations to citizens and creditors.
•The District's total net assets decreased by $1.7 million,after a prior period adjustment ofan additional SI.3
million decrease.This is primarily altributable to the write ofT ofselected Fixed Assets identified as no longer
serviceable,and several CIP projects that were no longer viable as a pal1 ofthe District's long range plans for
growth.
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,
J)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 SwteJllellt ofNel Assels presents information on all of the District's assets and liabilities,with the difference between
the two reported as net assels.Over time,increases or decreases in net assets may serve as a useful indicator of whether
the financial position ofthe District is improving or weakening.
The Slatcmell1 of Revel/lies.Expel/sex alld Changes iI/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
gi ving rise to the change occurs,regardless ojthe timing aIrelated cashjlOlIlS.Thus,revenues and expenses are repol1ed
in this statement for some items thaI will only result in cash flows in future fiscal periods (e.g.,uncollected taxes and
earned but unused vacation leave).
The Statement aJCash Flows presents information on cash receipts and payments for the fiscal year.
The Nores to the Financial Statemcms provide additional information Ihat is essential to a full understanding of the data
supplied in each of the specifie financial statements Iisted above.
In addition to the basic financial statements and accompanying notes.this report also presents certain required
supplementary i/lftmll(ftioll concell1ing the District's progress in funding it."obligation to provide pension benefits to its
employees.
Financial Analvsis
As noted earlier.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 $459.6 million at the close ofthe most recent fiscal year.
By far the largest portion ofthe District's net assets.$377.7 million (82%),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 net ofrelated debt,it should be noted that the resources needed to repay this debt must be provided from
other sources,since the capital assets themselves cannot be lIsed to liquidate these liabilities.
3
•Management's Discussion and Analysis
Statements of Net Assets
(In Millions of Dollars)
2011 2010 2009
Assets
Current and Other Assets $124.1 $135.3 $96.8
Capital Assets 474.4 469.2 454.1
Total Assets 598.5 604.5 550.9
Liabilities
Long-Term Debt Outstanding 114.5 117.7 69.1
Other Liabilities 24.4 25.5 21.5
Total Liabilities 138.9 143.2 90.6
Net Assets
[nvested in Capital Assets
Net of Related Debt 377.7 375.9 382.4
Restricted for Debt Service 4.9 5.2 1.8
Unrestricted 77.0 80.2 76.1
Total Net Assets $4596 $461.1 S 4601
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 tinancial crisis.
In response to this prolonged business slO\vdown,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 eHiciently.Additionally,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 current expenses of $1.2 million in
accumulated charges from the current year,and a prior period adjustment of$IJ million.Por the entire tinancial reporting
period,Fiscal Years 2011 and 2010,total Net Assets decreased approximately $1.7 million for FY-2011,to S459.6 million,
as compared to FY-2010 when Net Assets increased by $1.0 million.
At the end of FY-20 II the District is able to repoli positi ve balances in all categories of net assets.This situation also held
true for the prior two fiscal years.
In FY-2010 the District issued of $51.2 million of new Water Revenue Bonds,contributing to the increase in Current and
Other Assets of$38.5 million,and the increase in Long-Term Debt Outstanding of$48.6 million.(See Note 5 in the Notes to
Financial Statements).The use of the 2010 Water Revenue Bonds is also retlected in the increase in Capital Assets of$15.1
million,as the District continued its CIP program.(See Note 3 in the Notes to Financial Statements).These funds continued
to be used in FY-2011,as seen by the decrease in Current and Other Assets of $11.2 million,which was offset by a
corresponding increase in Capital Assets of $5.2 million and a decrease in Long-Term Debt of $3.2 million.
4
•Management's Discussion and Analysis
Statements of Revenues,Expenses,and Changes in Net Assets
(In Millions of Dollars)
Water Sales
Wastewater Revenue
Connection and Other Fees
Non-operating Revenues
Total Revenues
Depreciation Expense
Other Operating Expense
Non-operating Expense
Total Expenses
Loss Before Capital
Contributions
Capital Contributions
Change in Net Assets
Prior Period Adjustment
Beginning Net Assets
Ending Net Assets
2011 2010 2009
$58.3 $56.3 $52.4
2.4 2.3 2.2
2.5 2.1 2.5
8.8 8.9 14.0
72.0 69.6 71.1
lJ.9 13.3 12.5
63.4 59.8 59.0
4.3 3.0 3.1
81.6 76.1 74.6
(9.6)(6.5)(3.5)
7.8 8.8 7.0
(17)2.3 3.5
(1.3)
461.3 460.3 456.8
$459 (,$461 1 S 4601
Water Sales increased by $3.9 million in FY~2010 and $2.0 million in FY-2011,mainly due rate increases in both years,and
olT"et by reduced rainfall during FY-2010.The slowdown in growth throughout the District was also retlectt:d in the
decrease in Connection and Other Fees ofSOA million in FY-20 I0,followed by a slight increase of$0.2 million in FY-2011.
[n FY-201 0,~on-operating Revenue-s decreased by $5.1 million due to a combination of factors.First,there was a decrease
in investment income due to a continuing drop in rates on inwstment securities.Also.in FY-2009 the District received a
large,one-time legal settlement as a member ofa class action lawsuit against a major supply vendor.Finally.in FY-2009 the
District brought in capacity fee revenue to offset the write-off of a capital assct project that was deemed no longer
economically viable for continued operations.
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 7.5%,and 7.7%from San
Diego County Watt:r Authority,brought on by the high cost of supply programs as well as higher energy and operating costs.
Dlle to the nationwide housing mortgClge crisis throughout the last several years,developers have either slo\ved-dowtl or
totally stopped work on many projects until economic conditions improve and the demand for growth returns.This has
resulted in CapitClI Contributions remaining low over the last 3-years,compared to the extended growth or the previous 10-
years.While this slowdown now appears to have stabilized,the District was aided in its Capital Contributions through the
receipt of additionClI federal grant monies of $2.2 million in FY-2010,Clnd $1.6 million in FY-2011,due to last minute
avai labi Iity of funds t1·om the federal budget.
5
•Management's Discussion and Analysis
Capital Assets and Debt Administration
Capital Assets.The District's capital assets as ofJune 30,2011,totaled $474.4 million (net ofaccumulated depreciation).
Included in this amount is land.The total increase in the District's capital assets was 3.3%for FY-2010 and 1.1°/(1 in
FY-2011.
Capital Assets
(In Millions of Dollars)
2011 2010 2009
Land $13.6 $13.6 $13.4
Construction in Progress 17.9 352 18.3
Water System 441.9 409.5 403.1
Recycled Water System 98.3 97.7 96.8
Sewer System 37.7 37.4 37.2
Field Equipment 9.8 9.5 9.5
Buildings 18.5 18.5 18.2
Transpol1ation Equipment 3.2 ',3.3J..'
Communication Equipment 2.4 1.3 08
Office Equipment 17.3 18.4 17.4
660.6 644.4 618.0
Less Accull1ulated
Depreciation (186.2)C175.2)!I63.9)
Net Capital Assets $4744 $469.2 $454.1
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 ofconstruction 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 :'-Jotes to Financial Statements.
Long-Term Deht.At June 30,2011,the District had $114.6 million in outstanding debt which consisted ofthe following:
General Obligation Bonds
Certificates of Participation
Revenue Bonus
Total Long-Term Debt
$
$
6.3
57.9
50.4
114.0
Additional information on the District's long-term debt can be found in Note 5 ofthe Notes to Financial Statements.
6
•Management's Discussion and Analysis
Fiscal Year 2011-2012 Budget
Economic Factors
Growth in the San Diego area has slowed over the last 3 years,and demand for housing is reflected in a similarly reduced
pace.Water sales volumes have gradually decreased as a result of a combination of the slowing economy and expanded
etTorts to promote water conservation.The coming years will continue to pose challenges for those in California's water
community and customers.While the State of California received a greater than normal amount of rainfall this year,
federal COllrt orders continue to curtail watcr deliveries from Northern Califolllia due to environmental factors in the
Sacramento-San Joaquin Bay Delta,and the uncertainty of Colorado River water deliveries continues.In addition,the
political situation in the State Capitol has made it difficult to find the compromise necessary to address the environmental
challenges in the Delta,which brings added uncertainty to the delivery of water through the State Water Project.The
combination ofthese factors will add to the cost of providing water.
The District currently provides water service to about 72%of its total projected future population,serving approximately
206,500 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 235,000 people,with an average daily demand of26
million gallons per day (MGD).Currently,the District services the needs of this growing population by purchasing water
from CWA,who in tum purchases its watcr from MWD and the Imperial Irrigation District (llD).Otay takes delivery of
the water through several connections of large diameter pipelines owned and operated by CWA.The District cLitTently
receives treated water from C\VA 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 \vater in the case of a shutdown of the main treated
water source.The City ofSan Diego also has a long tcrm contract with the District to provide recycled water for landscape
and irrigation usage.Through innovative agreements like this,benetits 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 28,950 acre-feet of potable water to 48,370 potable customer accounts
during Fiscal Year 2011~2012.Management feels that these projections are very 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 resulted in hundreds of foreclosures throughout the District.Additionally,the crisis in the banking and
financial industry has had a ripple effect ofemployee layoffs across a wide swath ofthe business community.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 housing pattern changes throughout the District,people's need
for water remains an underlying constant.Staff continues working diligently on developing new water supplies as it
addresses the financial impacts of conservation.preparing for the possibility of a continued water shortage and prolonged
sales reductions.
Management is unaware of any other conditions that could have a significant impact on the District's current rinancial
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 rinances for the Board of
Directors,taxpayers,creditors,and other interested parties.Questions conce1l1ing 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.
7
~~~STATEMENTS OF NET ASSETS~~.JUNE 30,2011 AND 2010
2011
ASSETS
(As Restated)
2010
Current Assets:
Cash and cash equivalents (Notes I and 2)
Restricted cash and cash equivalents (Notes land 2)
[nvestments (Note 2)
Restricted investments (Notes I and 2)
Accounts receivable,net
Accrued interest receivable
Taxes and availability charges receivable,net
Restricted taxes and availability charges receivable.net
[nventories
Prepaid expenses and other current assets
Total Current Assets
Noncurrent Assets:
$48,563,129 $40,180,519
5,239,430 21.131,924
28,691,752 43.085,300
20,622,679 11,150,549
9,235,138 8,959,367
180,113 239,355
454,948 366,535
75,588 186,813
835,32\954,007
1,189,206 626,421
115,087,304 126,880,790
Net OPEB asset (Note 8)
Deferred bond issuance costs (Note 4)
7,416,346
1.618.069
6.783.385
1,703,282
Capital Assets (Note 3):
Land
Construction in progress
Capital assets,net of depreciation
Total capital assets,net ofdepreciaton
Total Noncurrent Assets
Total Assets
13,636,663 13,620,963
17,909,282 35.179,104
442,881.020 420,Je,3,833
474,426,965 469,163,900
483.461.380 477,650,567
598,548,684 604,531.357
See accompanying independent auditors'report and notes to financial statements.
(Continued)
8
,~STATEMENTS OF NET ASSETS (CONTINUED)~~JUNE 30,2011 AND 2010
20 II
LIABILITIES
(As Restated)
2010
Current Liabilities:
Current maturities of long-term debt (Note 5)
Accounts payable
Accrued payroll liabilities
Other accrued liabilities
Customer deposits
Accrued interest
Liabilities Payable From Restricted Assets:
Restricted accrued interest
Total Current Liabilities
3,146,010 2,668,734
13,000,560 15,327,365
2.932,277 2,743,408
739,868 638,015
2,105,187 2.146,360
1,656,826 1,154,286
86.405 100,326
23,667,133 24,778,494
Noncurrent Liabilities:
Long-term debt (Note 5):
General obligation bonds
Certificates of participation
Revenue bonds
Notes payable
Other noncurrent liabilities
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
6,298,577
57,865,5.11
50,395,822
715,037
115,274,967
138,942.100
6,763,127
59,694,612
51,255,224
6,010
684,309
118,403,282
143,181,776
Invested in capital assets,net of related debt
Restricted for debt service
Unrestricted
Total Net Assets
377,656,762 J75,953,042
4,915,555 5.192,111
77,034.267 80.204,428
S 459,606,584 $461,.149,581
See accompanying independent auditors'report and notcs to tinancial statements.9
'?~.STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS
~;;;;-~.FOR THE YEARS ENDED JUNE 30,2011 AND 2010
(As Restated)
2011 2010
OPERATING REVENUES
Water sales $58,293,184 $56,249,816
\Vastewater revenue 2,396,385 2,299,585
Connection and other fees 2,514,647 2,137,280
Total Operating Revenues 63,204,216 60,686,681
OPERATING EXPENSES
Cost ofwater sales 42,029,819 39,338,495
Wastewater 2,592,823 2,169,988
Administrative and general 18,763,380 18,320,362
Depreciation 13,880,206 l3,297,497
Total Operating Expenses 77,266,228 73,126,342
Operating Income (Loss)(14,062,012)(12,439,661)
NONOPERATlNG REVENUES (EXPENSES)
Investment income 854,440 1,323,844
Taxes and assessments 3,895,938 3,973,328
Availability charges 653,012 670.784
Gain (loss)on sale ofcapital assets 55,300 (143,086)
Miscellaneous revenues 3,304,963 2,921,016
Donations (120,648)(100,240)
Interest expense (3,877,531)(2,404,530)
Miscellaneous expenses (312,649)(303,541 )
Total Nonoperating Revenues (Expenses)4,452,825 5,937,575
Income (Loss)Before Capital Contributions (9,609,187)(6,502,086)
Capital Contributions 7,866,190 8,839,892
Changes in Net Assets (1,742,997)2,337,806
Total Net Assets,Beginning,as originally stated 461,349,581 460,344,871
Prior period adjustment (1,333,096)
Total Net Assets,Begirming,as restated 461,349,581 459,011,775
Total Net Assets,Ending $459,606,584 $461,349,58l
See accompanying independent auditors'report and notes to ~inancial statements.10
t}j:;~,STATEMENTS OF CASH FLOWS
,<-~:ffP.
FOR THE YEARS ENDED JUNE 30,2011 AND 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts !i'om customers
Receipts b'om connections und other fees
Other receipts
Payments to suppliers
Payments to employees
Other payments
Net Cash Provided (Used)by Operating Activities
(As Restated)
2011 2010
$60,372,625 $56,959,013
2,514,647 2,137,280
2,119,390 1,837,028
(47,028,888)(36,816,755)
(19,439,549)(18,659,239)
(269,198)(831,391)
(1,730,973)4,625,l)36
CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES
Receipts from taxes and assessments
Receipts from property rents and leases
Net Cash Provided (Used)by NOnl.::npital
and Related Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
3,911-:,750
1,185,573
5,104,323
4.023,131
1,083,988
5,107,119
Proceeds from capital cuntrihutions
Proceeds from sale of capital assets
Proceeds from debt rehtted taxes and assessments
Net proceeds from issuance of long-tcnn debt
Retirements of long-tclln debt
Principal paymcnts on long-term debt
Interest paymcnts and fccs
Acquisition and construction ofcapital <lssets
Nd Cash Provided (Used)by Capital
and Rdated Financing Activities
CASII FLOWS FROM INVESTING ACTIVITIES
Intcrest received on investments
Proceeds from sale and maturities ofinvestments
Purchase ofinvcstmcnts
Net Cash Provided (Used)by Investing Activities
Net Increase (Decrease)in
Cash and cash equivalents
Cash and cash equivalents,Beginning
Cash nnd cash equivalents,Ending
See accompanying independent auditors'report and notes to financial statements.
$
7,386,617
81,220
653,012
(2,668,734)
(4,69(,,309)
(17,474,142)
(16,718,336)
945,888
114,9IR,2XO
(110,029,066)
5.835,I07
(7,509,884)
61,312,44.3
53,802,559 s
7,717,207
94,118
670,784
57,826,816
(7,231,011)
(2,521,772)
(2,477,158)
(28,420,3(,8)
25,658,616
1,3.36,944
53,997,000
(81,997,040)
(76,663,096)
8,728,575
52,583);68
()1,3 12,443
(Continued)
II
E~~STATEMENTS OF CASH FLOWS (CONTINUED)
~~P
FOR THE YEARS ENDED JUNE 30,2011 AND 2010
2011
Reconciliation of operating income (loss)to net cash flows provided
(used)by operating activities:
(As Restated)
2010
Operating income (loss)
Adjustments to reconcile operating income
to net cash provided (used)by oper<lting activities:
Depreci<ltioll
Ivliscell,meous revenues
iV1 iscellaneous expenses
(Increase)decrease in accounts receivable
(Increase)clccrcusc in inventory
(Increase)decrease in nct OPES asset
(Increase)decrease in prepaid expenses and other current assets
Increase (decrease)in accounts payahle
Increase (decrease)in accrued payroll and related expenses
Increase (decrease)in other accrued liabilities
Increase (decrease)in customerdeposits
Increase (decrease)in prepaid capacity fees
Net Cash Provided (Used)By Operating Activities
$(14,062,012)$(12,439,661 )
13,880,206 13,297,497
2,119,390 1,837,028
(269,198)(261,742)
(275,771)(929,758)
118,686 (137,142)
(632,961)(578,509)
(562,785)349,624
(2,326,805)3,761,412
188,869 194,677
101,853 193,140
(41,173)(660,630)
30,728
$(1,730,973)$4,625,936
Schedule of Cash and Cash Equivalents:
Current assets:
Cash and cash equivalents
Restri(;ted cash and (;;[sh equivalents
Total Cash and Cash Equivalents
Supplemental Disclosures:
Non~cash Investing and Financing Activities Consisted of the Following:
Contributed Capital for Water and Sewer System
Change in Fair Value of Investments lind Recognized Gains/Losses
Amortization Related to Long~Term Debt
See accompanying independent auditors'report and notes to tinnndal statcll1Cnts.
$
$
48,563,129
5,239,430
53,802,559
479,573
(73,092)
164,I0 I
$
$
5
40,180,519
21,131,924
61,312,443
1,111,685
230,747
142,039
12
e~,NOTES To FINANCIAL STATEMENTS~YEARS ENDED JUNE 30,2011 AND 2010
NOTE DESCRIPTION PAGE
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
10
Water Conservation Authority.".."".""..""..".
Commitments and Contingencies."""""",...".."..".
31
32
11 Risk Management".""."""""".""""..""..32 -33
12 Interest Expense..,.."...."",.""."",".,.".."".......33
13 Subsequent Events".".".""..""".......34
14 Prior Period Adjustment."""""""""""""""".....34
15 Segment [nfoLmation.."""""".."...""..."...""".."""".....35 -37
Required Supplementary Information:
Schedule ofFunding Progress for PERS ......."""""""....."38
2 Schedule of Funding Progress tor DPHP".""".."""""".......38
~NOTES To FINANCIAL STATEMENTS~YEARS ENDED JUNE 30,2011 AND 2010
I)REPORTING ENTITY AND SUMMARY OF SIGNlFlCANT 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 Califolllia \Vater Code)for the purpose ofproviding 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 tenn.
B)1\'leasurement Focus,Basis of Accounting and Financial Statement Presentation
Measurement focus is a term lIsed 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 repot1ed 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 ofthe timing of related cash flows.
The District repot1s 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 orthe 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 govel11mental accounting financial reporting purposes.
Net assets of the District are classified into three components:(I)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 a:;sets,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.[fthere arc significant unspent related debt proceeds at year-end,the portion of the debt
attributable to the unspent proceeds are not included in the calculation ofinvested in capital assets,net of related debt.
Restricted Net Assets
This componcnt of net assets consists of constraints placed on net asset 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 componenl of net asset consists of net assets that do not meet the derinition of "invested in capital assets,net of
related debt"or "restricted net assets".
See independent auditors'report.13
0;;;'''&·NOTES To FINANCIAL STATEMENTS.~YEARS ENDED JUNE 30,2011 AND 2010
I)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 fumishing of those services.Nonoperating revenues and expenses are those revenues
and expenses generated that are not directly associated with the !lonnal business of supplying water and wastewater
treatment services.
The District recognizes revenues from water sales,wastewater revenues,and meter fees as they are eamed.Taxes and
assessments are recognized as revenues based upon amounts reported to the District by the County ofSan Diego,net of
allO\vance for delinquencies of$5R,948 and $61,483 at June 30,2011 and 2010,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.
\Vhen both restricted and unrestricted resources are available for use,it is the District's practice to use restricted
resources first,then unrestricted resources as thcy are needed.
The District has elected under GASB Statement No.20,Accounting and Financial Reporting for Proprietary Funds
and Other Govel1lmental Activities That Use Proprietary Fund Accounting,to apply all GASB pronouncements as
well as any applicable pronouncements of the Financial Accounting Standards Board (FASB).the Accounting
Principles Board (APB),or any Accounting Research Bulletins (ARB)issued on or before November 30,1989.
unless they contradict or contlict with GASB pronouncements.
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.lnvestments in governmental investment pools are reported on the fair value per
share of the pool's underlying portfolio.
E)Inventory and Prepaids
InventOly 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
repol1ed 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.lnfrastructure 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 pal1 ofa nev,,'capital program.The cost of purchased and self-
constructed additions to utility plant and major replacements ofpropel1y are capitalized.Costs include materials,direct
labor,transportation,and such indirect items as engineering,supervision,employee fringe benetits,overhead,and
interest incurred during the construction period.Repairs,maintenance,and minor replacements of propel1y 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 30,2011 of SI,215,476 is included in the cost of water
system assets and is depreciated on the straight-line basis over the estimated useful lives ofsuch assets.
See independent auditors'report.14
~~OTAY j'NOTES To FINANCIAL STATEMENTS
~..#"YEARS ENDED JUNE 30,2011 AND 2010
I)REPORTING ENTITY AJ'\'D SUMiI'L,\RY Of SIGNifICANT ACCOUNTING POLICIES·Continued
F)Capital Assets -Continued
Depreciation is calculated using the straight~line method over the following estimated useful lives:
G)Compensated Absences
Water System
Field Equipment
Buildings
Communication Equipment
Transportation Equipment
Office Equipment
Recycled Water System
Sewer System
15-70 Years
2-50 Years
30-50 Years
2-10 Years
2-4 Years
2·10 Years
50-75 Years
25-50 Years
In accordance with GASB Statement No.16,a liability is recorded for unused vacation and sick leave balances since
the employees'entitlement to these balances are attributable to services already rendered and it is probable that
virtually all ofthese balances will be liquidated by either paid time~offor payment upon termination or retirement.
1-1)Restricted Assets and Liabilities
Certain current liabilities have been c1assitied as current liabilities payable from restricted assets as they will be
funded Ji'om 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 Ihe allowance method bast:d upon prior
experit:nce and management's assessment of the collectability of existing specific accounts.The allowance for
doubtful accounts were 5148,047 and $12.937 for 20 II and 2010 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 thaI afTect the reponed amounts of
assets and liabilities and disclosure ofcontingent a"sets and liabilities at the date ofthe financial statements and the
reported amounts of revenues and expenses during the reponing period.Actual results could differ from those
estimates.
K)Propert)'Taxes
Tax levies are limited to I%of full market value (at time ofpurchase)whieh results in a tax rate of SI.00 per $100
assessed valuation,under the provisions of Proposition 13.Tax rates for voter-approved indebtedness are excluded
from this limitation.
The County ofSan Diego (the "County")bills and collects propeny taxes on behalf ofthe District The County's ta.'I\
calendar year is July I to Jun~30.Property taxes attach as a lien on property on January I.Taxes arc levied on July 1
and are payable in two equal installments on November I and February I,and become delinquent after December 10
and April 10,respectively.
L)Reclassilications
CCl1ain reclassitications have been made to prior year amounts to conform to the current year presentation.
See independent auditors'report.15
~~
NOTES To FINANCIAL STATEMENTS~YEARS ENDED JUNE 30,2011 AND 2010
2)CASH AND [NVESTMENTS
The primary goals of the District's Investment Policy are to assure compliance with all Federal.State,and Local laws
goveming 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
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
Investments
Restricted Investments
Total Cash amI Investments
Cash and Investments consist ofthe following:
$
$
2011 20[0
48,563,129 $40,180,519
5,239,430 21,131,924
28,(m,752 43,085,300
20,622,679 11,150,549
103,116,990 $115,548,292
2011 20[0
Cash on Hand S 2,950 $2,8IJO
Deposits with Financial Institutions 981,696 4,158,859
Investments 102,132,344 111,386,633
Total Cash and Investments $lCD,I 16,990 $115,548,292
Investments Authorized by the California Government Code and the District's Investment Policy
The table below identifies the investment types that an: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.
Authorized
[nvcstment Tvpe
U.s.Treasury Obligations
U.S.Government Sponsored Entities
Certificates ofDeposit
Corporate Medium-Tenn Notes
Commercial Paper
Money Market Mutual Funds
County Pooled Investment Funds
Local Agency Investment Fund
(LAir)
Maximum
Maturity
5 years
5 years
5 years
5 years
270 days
N/A
N/A
N/A
Maximum
Percentage
Of Porlfolio[l)
None
None
15%
15%
15%
15%
None
None
Maximum
Investment
In One Issuer
None
None
None
None
10lYo
None
None
None
(I)Excluding amounts held by bond trustee that are not subject to California Government Code restrictions.
See independent auditors'report.16
:~NOTES To FINANCIAL STATEMENTS~~'YEARS ENDED JUNE 30,2011 AND 2010
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 ofthe Califomia Govelllment 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 ofan investment,the greater the sensitivity ofits 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 ofthe portfolio is maturing or
coming close to maturity evenly over time as necessary to provide the cash now 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 30,2011
and 2010.
June 30,2011
Remaining Maturity (in Ivlonths)
13 to 24 25 to 60
Investment Type
U.S.Government Sponsored Entities
Local Agency Investment Fund
(LA[F)
Corporate Medium-Term Notes
San Diego County Pool
Total
June 30,2010
$49.263,245
35.~76,620
[699)479
$[02,132,344
12 Months
Or Less
$
35.876,620
[6992 479
$52,869,099
Months
$21.~21.~35
$21,821,835
Months
$27,441.411
$27,441,411
More Than
60 Months
$
$
Remaining Maturity (in Months)
12 Months IJ to 24 25 to 60 More Than
Investment Type Or Less Months Months 60 Months
U.S.Government Sronsored Entities $53,911,225 $$21 ,~O 1,325 S32,109,900 $
Local Agency Investment Fund
(LA[F)34,561,668 34,561,668
Corrorate Medium-Term Notes 4,0(,2,740 4,062,740
San Diego County Pool [~,851,000 1~,~5I,OOO
Total $111,386,633 $57,475,408 $21 ,~O1,325 $32,109,900 $
See independent auditors'report.17
;~~.NOTES To FINANCIAL STATEMENTS~~,YEARS ENDED JUNE 30,2011 AND 2010
2)CASH AND INVESTMENTS -Continued
Disclosures Relating to Credit Risk
Generally,credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization.Presented below is
the minimum rating required by (where applicable)the California Govemment Code or the District's Investment Policy,or
debt agreements,and the Moody's ratings as ofJune 30,2011 and 2010 for each investment type.
J undO,20 LL
Investment Type
Minimum
Legal
Rating AAA
Rating as ofYear End
AA
Not
Rated
U.S.Government Sponsored Entities
Local Agency Investment
Fund (LAIF)
San Diego County Pool
$49,263,245
35,876,620
!()l)92479
N/A
N/A
N/A
$49,263,246 $$
35,876,620
16 99)479
Total
.June 30,2010
$102,132,344 $49,263,246 $S52,869,099
Investment Type
Minimum
Legal
Rating AAA
Rating as ofYear End
AA
Not
R,nee!
U.S.GoVet11111ent Sponsored Elllities
Local Agency Investment
Fund (LAIF)
Corporate Medium-Term Notes
San Diego County Pool
Total
See independent auditors'report.
$53,911,225
34,561,668
4,0(,2,740
18,851,000
SI I 1,386,633
N/A
N/A
A
N/A
$53,911,225
553,911,225
$
4,062,740
5 4,062,740
$
34,561,(,68
18,851,000
$53,412,M)8
18
~'lloT.A:"J.NOTES To FINANCIAL STATEMENTS
'~'YEARS ENDED JUNE 30,2011 AND 2010
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 anyone type or group
of investments and in any issuer,beyond that stipulated by the Califomia Government Code,Sections 53600 through 53692.
Investments in anyone issuer (other than U.S.Treasury securities,mutual funds,and external investment pools)that represent
5%or more of total District investments as ofJune 30,2011 and 2010 are as follows:
June 30,20 II
Issuer
Federal Home Loan Bank
Federal Home Loan Mortgage Corp
Federal National Mortgage Association
June 30,20LO
[ssuer
Federal Home Loan Bank
Federal Home Loan M0l1gage Corp
Federal National Mot1gage Association
Custodial Credit Risk
Investment Type
u.s.Government Sponsored Entities $
U.S.Government Sponsored Entities $
U.S.Government Sponsored Entities $
Investment Type
U.S.Government Sponsored Entities $
U.S.Government Sponsored Entities $
U.S.Government Sponsored Entities $
Reported Amount
17,791,131
25,827,735
5,(,44,380
RelJOt1ed Amount
20,044,400
11,791,825
22,075,000
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
pal1y.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 ofanother party.The California Government Code and the Entity's invcstmcnt policy do not contain legal or
policy requirements that \vould 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 tinancial 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 tinancial institutions to secure
deposits by pledging tirst trust deed mOl1gage notes having a value of 150%of the secured public deposits.
As ofJune 30,2011,$1,308,661 ofthe District's deposits with tinancial institutions in exces.s of federal depository insurance
limits were held in collateralized accounts.As ofJune 30,2010,$819,689 ofthe District's deposits with rinancial institutions
in excess offederal depository insurance limits were held in collateralized accounts.
See independent auditors'report.19
~NOTES To FINANCIAL STATEMENTS
.~YEARS ENDED JUNE 30,2011 AND 2010
Zj CASH AJ'IIO INVESTMENTS -Continued
Local Agency Investment Fund (LAIF)
The District is a voluntary participant in the Local Agency Investment Fund (LAIF)that is regulated by Califomia
Govemment 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 repor1ed in the accompanying financial statements at amounts based upon District's pro-
rata share of the fair value provided by LAlF for the entire LAIF portfolio (in relation to the am0l1ized cost or that pOlifolio).
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 Califomia
Govemment 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 and Certiticates of Deposit are entirely insured or collateralized.
Under the provisions ofthe Califomia Govel11ment Code,California banks and savings and loan associations are required to
secure the District's deposits by pledging govemment securities as collateral.The market value oflhe pledged securities must
equal at least 110%of the District's deposits.California law also allows rinancial institutions to secure District deposits by
pledging first trust deed mortgage notes having a value of 150%ofthe District's total deposits.
The District may waive the 110%collateral requirement for deposits which are insured up to $250,000 by the FDIC.
See independent auditors'report.20
C~NOTES To FINANCIAL STATEMENTS~~YEARS ENDED JUNE 30,2011 AND 2010
3)CAPITAL ASSETS
The following is a summary ofchanges in Capital Assets for the year ended June 30,2011:
Beginning Balance
(As Restated)Additions Deletions Ending Balance
Capital Assets,Not Depreciated
Land S l3,620,963 S 15,700 $$13,636,663
Construction in Progress 35,179,104 1R,141 ,296 (35,411,118)17,909,2R2
Total Capital Assets Not Depreciated 4R,ROO,067 18,156,996 (35,411,IIR)31,545,945
Capital Assets,Being Depreciated
(nfrastructure 544,533,985 33,440,219 (47,686)577,926,5l H
Field Equipment 9,529,558 489,019 (170,768)9,847,809
Buildings 18,451,132 IR,451,132
Transportation Equipment 3,278,692 347,077 (44R,OR2)3,177,687
Communication Equipment 1,335,820 1,023,223 2,359,043
Office Equipment 18,430,38R 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 (47,6R6)l57,565,903
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 I75,4()9 644,017
Office Equipment 10,982,620 1,452,911 (2,212,2l2)lO,223,319
Total Accumulated Depreciation 175,195,742 IJ,S80,206 (2,R61 ,R 13)1R6,214,135
Total Capital Assets Being Depreciated,Net 420,3(,3,833 22,543,107 (25,920)442,R81,020
Total Capital Assets,Net $469,163,900 $40,700,I03 $(35,437,03R)S 474,426,965
Depreciation expense for the years ended June 30.20 II and 2010 was $I3,880,206 and S13.297,497,respectively,
See independent auditors'report.21
.~NOTES To FINANCIAL STATEMENTS~~YEARS ENDED JUNE 30,2011 AND 2010
3)CAPITAL ASSETS (Contioued)
The following is a summary ofchanges in Capital Assets for the year ended June 30,2010:
Beginning Balance Ending Balance
(As Restated)Additions Deletions (As Restated)
Capital Assets,Not Depreciated
Land S 13,402,840 $280,065 $(61,942)S 13,620,963
Construction in Progress 16,947,182 28,300,354 (10,0(,8,432)35,179,104
Total Capital Assets Not Depreciated 30,350,022 28,580,419 (10,130,374)48,800,067
Capital Assets,Being Depreciated
Infrastructure 537,[88,394 8,508,8S(}(1,163,2()5)544,533,985
Field Equipment 9,473,571 422,577 (366,590)9,529,558
Buildings 18,165,527 299,465 (13,8(0)18,451,132
Transportation Equipment 3,284,639 325,228 (331,175)3,278,692
COll1l11unieation Equipment 7R7,358 548,462 1,]35,820
Otlicc Equipmellt 17,403,147 1,362,848 (3,15,607)18,430,388
Total Capital Assets Being Depreciated 586,302,636 11,467,436 (2,2111,497)595,559,575
Less Acnllllulatcd Depreciation:
lnfrastructun.:135,582,472 11,462,706 (939,178)146,I06,000
Ficld Equipment 8,963,959 9],704 (372,084)8,685,579
Buildings 6,090,921 446,906 (62,686)6,475,141
Tr<lllSport<ltion Equipillent 2,655,866 149,802 (327,814)2,477,854
COllllllunication Equipment 410,205 58,343 468,548
Officc Equipment 10,230,056 1,086,036 (333,472)10,982,620
Total Accumulated Depreciation 163,933.479 13,297,497 (2,035,234)175,195,742
Total Capital Assets I3.::ing Depreciated,Net 4?2,369,157 (I,830,061 )(175,263)420,3(,3,833
Total Capital Assets,Net $452,719,179 S 2(),750,358 S (10,305,637)$469,16],900
Depreciation expense for the years ended June 30,2010 and 2009 was $13.297,497 and S12,475,714,respectively.
4)OTHER NONCURRE:>IT ASSETS
Deferred bond issue costs totaled $1,618,069 and $1,703,282,net ofaccumulatcd am0l1ization ofS380,418 and $295,204 as
of June 30.2011 and 2010,respectively.The costs are amortized on the straight-line method based on the estimated term of
the related bond debt.AmOt1izatian expense ofS85,212 and $(,(,,704 for the years ended June 30,2011 and 2010 is included
in miscellaneous non~operatingexpenses.
See independent auditors'report.22
P NOTES To FINANCIAL STATEMENTS
~~YEARS ENDED JUNE 30,2011 AND 2010
5)LONG-TERM DEBT
Long-term liabilities for the year ended June 30,2011 are as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
General Obligation Bonds:
Improvement District No.27 -2009 $7,78IJ,000 $$520,000 $7,260,000 $505,OIJO
Unamortized Bond Premium 198,981 16,355 182,626
Deferred Amount on Refunding (695,854)(56,805)(639,049)
Net General Obligation Bonds 7,783,1 n 479,550 6,803,577 505,000
Certiticates of Participation:
1996 Certificates of Participation 11,700,00IJ 4IJO,OIJO 11,300,000 400,00IJ
2004 Certiricates of Participation 9,790,000 545,000 9,245,00IJ 565,000
2007 Certificates of Participation 40,400,000 850,IJOIJ 39,550,000 885,000
1996 COPS Unamortized Discount (12,668)(745)(11,923)
2007 COPS Unamortized Discount (241,175)(9,IJ44)(232,131)
2004 COPS Unamortized Premium l5,335 1,165 14,17IJ
20IJ4 COPS Deferred Amount on
Refunding (161,880)(12,295)(149,585)
Net Certificates of Participation 61,489,612 1,774,081 59,715,531 1,850,OOIJ
Revenue Bonds:
2010 Water Revenue Bonds Series A 13,8411,0011 13,8411,11011 785,1100
2010 Water Revenue Bonds Series B 36,355,0011 36,355,11011
2010 Series A Unamortized Premium 1,0611,224 74,4112 985,822
Net Revenue Bonds 51,255,274 74,4112 51,180,822 785,000
Notes Payable:
State Water Resource Control Board 359,744 353,734 ("II 1°6,010
Total Long-Term Liabilities S120,387,707 $$2,681,7(,7 S117,705,940 $3,146,010
See independent auditors'n:port.2J
~.NOTES To FINANCIAL STATEMENTS~'YEARS ENDED JUNE 30,2011 AND 2010
5)LONG-TERJVI DEBT-Cootinned
General Obligation Bonds
In June 1998,the District issued $1 t,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 previolls outstanding General Obligation Bond issue.In November 2009,The District issued
~7,780,OOO of General Obligation Refunding Bonds to refund the 1998 issue.The proceeds from the bond issue were
S7,989,884,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 were refunded.
The savings between the cash tlow required to service the old debt and the cash Ilow 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 [mprovement District No.27 (10 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 JD 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 ofthe 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 30,2011 was $56,805 and is included in miscellaneous non-
operating expenses.As ofJune .10,20II,the unamortized deferred amount ofrefunding is $639,049.
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
2012 $505,000 $251,637 $756/,37
2013 520,000 2.36,262 756.262
2014 535,000 220,437 755,437
2015 550,IJOO 204,162 754,162
2016 570,000 1~7,362 757,362
2017-2021 3,155.0IJO (,07J1J6 3,762,706
2022-2023 1,425,IJOO 57,303 l.48/,303
$7.2(,O.1J1J1J $1,7!J4,~69 S 9.024.869
See independent auditors'report.24
~NOTES To FINANCIAL STATEMENTS
~_.¢"YEARS ENDED JUNE 30,2011 AND 2010
5)LONG-TERM DEBT -Continned
Certificates of Participation (COPS)
In June 1996,COPS with face value ofS15,400,000 were sold by the Gtay Service Corporation to finance the cost ofdesign,
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 cCI1iticates bear interest at a variable weekly rate not to exceed 12%.The variable interest rate is tied to the 30-day
UBOR index and the Securities Industry and Financial Markets Association (S[FMA)index.An irrevocable letter ofcredit
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 30,2011 was 0.10%.The installment
payments are to be paid annually at $350,000 to $900,000 fl'om September I,1996 through September 1.2026.
[n July 2004.Refunding Ce/1iticates ofPat1icipation (COPS)with a face value of$12,270,000 were sold by the Otay Service
Corporation to advance refund $11,680,000 of outstanding 199}COPS.An installment agreement between the District,as
Buyer,and the Coq)oration,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 cCI1ificates are due in annual installments 01'$445,000 to $895,000 from September 1,2005 through September 1,2023;
bearing interest at 3%to 4.625%.
[n March 2007,Revenue Certiricates ofpal1icipation (COPS)with face value 01'$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,3..<;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 cel1iricates are due in annual installments of $785,000 to $2,445,000 from September t,2007
through September I,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 follO\vs:
For the Ye(lr 1996 cors 20114 cors 21107 cors
Ended June 30.Principal Interest*Principal Interest Principal Interest
2012 S 400,000 $10,967 $565,000 $368,607 S 885,001l 5 [,622,864
2013 51l0,1l00 10,483 580,1l01l 349,566 nO,lloo 1,589,020
2014 500,000 9,983 600,000 328,906 955,01l0 1,553,864
2015 500,000 9,483 625,000 306,388 995,000 1,517,301
21116 61l1l,1l00 8,901l 650,000 281,994 1,1l35,1l00 1,479,239
2017-21121 3,31l1l,00O 34,950 3,645,000 985,557 5,795,000 6,759,952
2022-2026 4,41l0,OOO 15,533 2,580,000 180,097 7,065,000 5,479,227
2027-2031 1,100,000 183 8,695,OOIl 3,831,363
2032-2036 10,760,000 1,751,175
2037-2038 2,445,IlOIl 53.484
511,300.IlOO $100,483 $9,245.000 5 2801 115 539.551l,OOO 525,637,489
..Variable Ratl:-Interest ['dlected Jt June 30,20\1 Jl J rJte 01'(1.10%
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 sufticient to yield,during each fiscal year,taxes
and net revenues equal to one hundred twenty-five percent (125%)of the debt service for such riscal year.The District
was in compliance with these rate covenants for the fiscal year ended June 30,2011.
See independent auditors'report.25
@-~
~NOTES To FINANCIAL STATEMENTS
~&"YEARS ENDED JUNE 30,2011 AND 2010
5)LONG-TERM DEBT -Continued
\-Vater Revenue Bonds
[n April 2010,Water Revenue l30nds with a face value of S50,195,000 were sold by the Gray Water District Financing
Authority to provide funds for the construction of water storage and transmission facilities.The bond issue consisted oftwo
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 2011 B (Taxable Build America Bonds)with a face value of
$36,255,000.The Series 20lOA bonds are due in annual installments of $785,000 to $],295,000 Irom September I,2011
through September 1,2025;bearing interest at 2%to 5.25%.The Series 20118 bonds are due in annual installments of
$1,365,000 to $3,505,000 from September 1,2026 through September 1,2040;bearing interest at 6.377%to 6.577%.Interest
on both Series is payable on September 1,20 I0 and semiannually thereafter on March ISI and September 1,1 ofeach year until
maturity or earlier redemption.The installment payments are to be made from Taxes and Net Revenues of the Water System
as described in the installment purchase agreement,on parity with the payments required to be made by the District for the
1996,2004 and 2007 Certificates of P311icipation described above.
The proceeds oCthe bonds will be used to fund the project described above as well as to fund reserve funds of$I,030,688
(Series 201 OA)and $2,707,418 (Series 20]OB).$542,66()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.Arn011ization for the year
ending June 30.2011 was $74,402 and is included in interest expense.The unamortized premium at June 30.2011 is
$985,822.
The 2010 Water Revenue Bonds contains various covenants and restrictions,principally thaI the District fix.prescribe,
revise and collect rates,fees and charges for the \Vater 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 \vas in compliance with these rate covenants for the tiscal year ended June 30,2011.
The total amount outstanding at June 30,2011 and aggregate maturities ofthe revenue bonds for the fiscal years subsequent to
June 30.2011,are as follows:
For the YC£lr 2010 Water Revenue Bond Series A 2010 Water Revenue Bond Series B
Ended .rline 30,Principal Interest Principal Interest
2012 $785,000 $569,6gg $S 2,371,g68
2013 8UO,UOO 553,tUg 2,371,868
2014 820,000 533,538 2,3 71,868
2015 845,000 50R,563 2,371,86g
2016 g7lJ,UOO 478,488 2,371,868
2017-2021 4,895,000 t,SII,SSg 11,859,342
2022*202()4,825,000 508,456 1,365,000 II,g15,g19
2U27-2031 8,235,000 10,I 75,654
2032-2036 11,265,000 7,040,514
2037-2041 15,490,000 2,676,839
$13,g40.000 $4.964.157 $3(,,355.000 $55,427.508
See independent auditors'report.26
@~
NOTES To FINANCIAL STATEMENTS
~,§P'YEARS ENDED JUNE 30,2011 AND 2010
5)LONG-TERM DEBT -Continued
Note Payable
(n 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 incl uding principal and interest from 1992 through 20J2.The total
alnount olltstanding at June 30,2011 and aggregate maturities ofthe note for the fiscal years subsequent to June 30,201 I,are
as follows:
For the Year
Ended June 30,Principal [nterest
6)NET ASSETS
Designated Net Assets
2012 $
$
6,010
6,010
$
$
In addition to the restricted net assets,a portion ofthe unrestricted net assets have been designated by the Board of Directors
for the following plIllJoses as ofJune 30,2011 and 2010:
2011 2010
Designated Betterment $13.221.595 $6,653,909
Expansion Reserve 13,216,223 21,096,749
Replacement Reserve 30,156,082 24,4X3,X77
Insurance Reserve 4,526,516 6,639,953
Total $61,120,416 $58,874,488
7)DEFINED BENEFIT PENSION PL.~\I
Plan Description
The District's detined plan,(the ""Plan"),provides retirement and disability benefits.annual cost-of.-living adjustments,and
death benefits to plan members and beneticiaries.The Plan is part of the Public Agency portion of the California Public
Employees'Retirement System (CaIPERS),an agent multiple-employer plan administered by CaIPERS,which acts as a
common investment and administrative agent for participating public employers within the State of Califol1lia.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 benetit provisions ti'om 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 CaIPERS'
annual financial repoli may be obtained tl'om the CalPERS Executive Oftice,400 P Street,Sacramento,California 95814.
See independent auditors'report.27
C;:~NOTES To FINANCIAL STATEMENTS
~YEARS ENDED JUNE 30,2011 AND 2010
7)DEFINED BENEFIT PENSION PLAN -Continued
Funding Policy
Active members in the Plan are required to contribute 8(Yo of their annual covered salary.The District has elected to
contribute 7%on behalf ofits employees.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 arc those adopted by the
CalPERS Board of Administration.The required employer contribution rate for the fiscal year ended June 30,2011 was
20.4~N%.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 CaIPERS.
Annual Pension Costs
For the tiscal year ended June 30,2011,the District's annual pension cost and actual contribution was $2,427,744.The
required contribution for the tiscal year ended June 30,2011 was determined as part ofthe June 30,2008 actuarial valuation.
The following is a summary ofthe actuarial assumptions and methods:
Valuation Date
Actuarial Cost Method
Amortization Method
A verage Remaining Period
Asset Valuation Method
Actuarial Assumptions:
Investment Rate of Retul11
Projected Salaty Increase
Intlation
Payroll Growth
Individual Salary Growth
June 30,2008
Entry Age Actuarial Cost Method
Level Percent ofPayroll
20 Years as ofthe Valuation Date
15 Year Smoothed Market
7.75%(Net ofAdministrative Expenses)
3.25%to 14.45%Depending on Age,Service,and Type ofEmployment
3.00%
3.25%
A merit scale varying by duration ofemployment coupled with an assumed
annual inflation component of3.00%and an annual production growth of0.25%.
Initial unfunded liabilities are am0l1ized over a closed period that depends on the Plan's date of entry into CaIPERS.
Subsequent Plan amendments are amortized as a level percentage ofpay 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 of6%of unamortized
gains and losses each year.Ifthe plan's accrued liability exceeds the actuarial value ofthe plan assets,then the amortization
payment of the total unfunded liability may be lower than the payment calculated over a 3D-year amot1ization period.
THREE-YEAR TREND INFORlvlATION FOR PERS
Fiscal
Y-:ar
Annual Pension
Cost (APC)
Percentage of
APC Contributed
Net Pension
Obliaation
6/30/!I
6/30/!0
6/30/09
Funded Statlls and Funding Progress
sss
2,427,744
2,240,538
2,I50,579
lU()%
100%
100%
sss
o
oo
As of June 30,2009,the most recent actuarial valuation date,the plan was 71.4%funded.The actuarial (Iccrued liability (AAL)
for bendits was $75,300,790,and the actuarial value of assets was $53,736,612,resulting in an unfunded actuarial accrued
liability (UAAL)of $21 ,564,178.The covered payroll (annual payroll ofactive employees covered by the plan)was $]],880,481,
and the ratio ofthe UAAL to the covered payroll was 181.5%.
The schedule of funding progress,presented as required slIfJp{(!/I/ClI!ary i'i!omwtioll following the notes to the tinancial
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 benetits.
See independent auditors'report.28
~~~NOTES To FINANCIAL STATEMENTS~~YEARS ENDED JUNE 30,2011 AND 2010
8)OTHER POST E:VIPLOYMENT BENEFITS
Plan Description
The District's defined benefit postemployment healthcare plan,(DPHP),provides medical benefits (0 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
(CaIPERS),which acts as a common investment and administrative agent for pal1icipating public employers within the State
of Califol1lia.A menu of benefit provisions as well as other requirements is established by State stmute within the Public
Employees'Retirement law.DPHP 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 CaIPERS'annual financial repo/1 may be obtained from the CalPERS Executive Office.400 P Street,
Sacramento.California 95814.
Funding POlicy
The contribution requirements of plan members and the District are established and may be amended by the Soard of
Directors.DPHP members receiving benefits contribute based on their selected plan options ofEPO,Silver or Gold and if
they are located outside the State of California.Contributions by plan members range from SO to $134 per month for
coverage to age 65,and from $0 to S 133 per month,respectively,thereafter.
Annual OPEB Cost and Net OPEG Obligation/Asset
The District's annual OPES cost (expense)is calculated based on the annual required contribution ofthe employer (ARC),
an amOLlnt 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 amol1;zed over a period not to exceed thirty years.The current ARC rate is 2.9%of the annual
covered payroll.
The following table shows the components of the District's annual OPES cost for the year,the amount actually
contributed to the plan,and changes in the District's net OPES obligation/asset:
$
Annual Required Contribution (ARC)$
Interest on net OPES asset
Adjustment to Annual Required ConrribUlion
(ARC)
Annual OPES co:>t (expen:>e)
Contributions made
Increase in ncr OPES asset
i':el OPES asset -beginning of year
Nct OPES asset -end ofyear
20ll 2010
289,000 S 345,000
(525,712)(480,8n)
646,000 591,000
409,288 455,122
1,042,249 1,033,631
(632,961 )(578.509)
(6,n3,385)(6,204,876)
(7,416,346)$(6,783,385)
For 20 II.in addition to the ARC.the D;strict contributed cash benclit payments olltside the trust (healthcare premium
payments for retirees to Special District Risk Management Authority (SDRMA))in the amount of S654,250.which is
included in the $1,042,249 of contributions shown above.For 2010 this amount was $597.631,which is included in the
$1.033,631 of contributions shown above.
Sec independent auditors'report.29
-""""tr:.;:~~NOTES To FINANCIAL STATEMENTS~YEARS ENDED JUNE 30,2011 AND 2010
8)OTHER POST EMPLOYMENT BEi\EFITS -Continued
The District's annual OPES cost,the percentage of annual OPES cost contributed to the plan,and the net OPES
obligation/asset for the fiscal years 2011,20I0 and 2009 were as follows:
THREE-YEAR TREND INFORMATION FOR CERST
Fiscal Annual OPES Percentage of Net OPEB
Year Cost (AOC)OPES Cost Contributed Asset
6/301201 I $409,288 2551%$(7,416,346)
(,/30/2010 $455,122 22n'()$(6,783,385)
6/30/2009 $925,20 I [60%$(6,204,876)
Funded Status and Funding Progress
The funded status oflhe plan as ofJune 30.2011,the most recent actuarial valuation date,\vas as follo\\'s:
Actuarial Accrued Liability (AAL)
Actuarial Value of Plan Assets
Unfunded Actuarial Accrued Liability (UAAL)
Funded Ratio (Actuarial Value of Plan Assets/AAL)
Covered Payroll (Active Plan Members)
UAAL as a Percentage ofCovered Payroll
$IR,289,001l
$7,893,000
S 10,396,0011
43.L6%
$12,264,OIJO
84.77%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability ofoccurrence ofevents 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
benetits.
See independent auditors'report.30
t;;;?\,NOTES To FINANCIAL STATEMENTS
~~'YEARS ENDED JUNE 30,2011 AND 2010
8)OTHER POST EMPLOYMENT BENEFITS -Conlinned
Actuarial Methods and Assumptions
Projections of benefits for rinancial repol1ing purposes are based on the substantive plan (the plan as understood by the
employer and the plan members)and include the types of benerits provided at the time ofeach valuation and the historical
pattem of sharing of benefit costs between employer and plan members to that point.The actuarial methods and
assumptions llsed 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~tenn perspective of the calculations.
The following is a summary ofthe actuarial assumptions and methods:
Valuation Date
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Actuarial Assumrtions:
Investment Rate of Return
Projected Salary Increase
Intlation
Individual Salary Growth
J-1ealthcare Cost Trend Rate
9)WATER CONSERVATION AUTHORITY
June 30,2011
Entry Age Normal Cost Method
Level Percent of Payroll
26 Year fixed (closed)period as orthe Valuation Date
15 Year Smoothed Market
7.25%(Net ofAdministrative Expenses)
3.25%
3.00%
CalPERS 1997-2007 Experience Study
Medical:10%per annum graded down in approximately
one-half percent increments to an ultimate rate of 5%.
Dental:4%per annum.
[n 1999 the District formed the Water Conservation Authority (the "Authority"),a Joint Powers Authority,\\.Iith other local
entities to construct,maintain and operate a xeriscape demonstration garden in the fUltherance of water conservation.The
authority is a non-profit public charity organization and is exempt from income taxes.During the years ended June 30,2011
and 20 I0,the District contributed $120,648 and $100,240,respectively,for the development,construction and operation costs
of the xeriscape demonstration garden.
A summaJy ofthe Authority's June 30,2010 audited financial statement is as follo\'-/s (lalest report available):
A::;sets
Liabilities
Revenucs,Gains and Othcr SUPPOl1
Changes in Net Assets
See independent auditors'report.
$2,518,545
107,001
],090,595
75,630
31
e-~
NOTES To FINANCIAL STATEMENTS~~J YEARS ENDED JUNE 30,2011 AND 2010
to)COMMITMENTS AND CONTINGENCIES
Construction Commitments
The District had committed to capital projects under construction with an estimated cost to complete of $11 ,894,I08 at June
30,2011.
Litigation
Certain claim:->,suits and complaints arising in the ordinary course of operation have been tiled or are pending against the
District.In the opinion ofthe staff and counsel.all slich matters are adequately covered by insurance,or ifnot so covered,are
without merit or are OfSllCh kind,or involved such amounts,as would not have significant effect on the financial position or
results ofoperations ofthe District ifdisposed ofunfavorably.
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 necessmy 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 [7.867 EDUs that were subject to this agreement.At June 30,2010,1,751 EDUs had been relinquished and
refunded,14.663 EDUs had been connected,and [,453 EDUs have neither been relinquished nor connected.At June 30,
2011,1,751 EDUs had been relinquished and refunded.14,957 EDUs had been connected.and 1.159 EDUs have neither
been relinquished nor connected.
Developer Agreements
The District has entered into various Developer Agreements with developers towards the expansion ofDistrict facilitie.'i.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 30,2011,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 $20,300 at
the point ofacceptance.Accordingly,the District did not accrue a liability as ofyear end.
Il)RISK MA.l\lAGEMENT
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).SDRMJ\is a not-far-profit public agency fanned under
California Government Code Sections 6500 et.Seq.SDRMA is governed by a board composed of members ti'om
participating agencies.The mission of SDRMA is to provide renewable,efficiently priced risk finam;ing and risk
management services through a tinancially 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 tinancial statements of SDRMA may be obtained at Special
District Risk Management Authority,1112 "["Street,Suite 300,Sacramento,CA 95814.
General and Auto Liability,Public Officials'and Employees'Errors and Omissions and Emplovment Practices Liabilitv:
Total risk financing limits of $10 Million combined single limit at $10 Million per occurrence,subject to the following
deductibles:
5500 per OCClllTe-nce for third party general liability propel1y damage;
5I,000 per occurrence for third pal1y auto liability property damage;
50%co-insurance ofcost expended by SDRMA,in excess of SI0,000 up to $50,000.per occurrence,for employment
related claims.However,\Oor}";)of the obligation will be waived if certain criteria are met,as provided in the
Memorandum ofCoverage.
See independent auditors'report.32
~NOTES To FINANCIAL STATEMENTS~YEARS ENDED JUNE 30,2011 AND 2010
tl)RISK MAJ'IAGEMENT (Continued)
Emplovee Dishonestv Covera~e:Total of $400,000 per loss includes Public Employee Dishonesty,Forgery or Alteration and
Theft,Disappearance and Destruction coverage's effective July 1,2010.
Property Loss:Replacement cost,for property on file,if replaced.and if not replaced within t\VO 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,
clTective July L 2010.
Boiler and Machinery:Replacement cost up to $100 Million per occurrence,subject to a $\,000 deductible,effective July 1,
2010.
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 ofCoverage's,deductible ofS500 per claim,effective July 1,2010.
Comprehensive and Collision:on selected vehicles,with deductibles of $250/$500 or $500/$1,000,as elected;ACV limits;
fully seliCfunded by SDRMA;Policy No.LeA -SDIUvlA -201011,effective July 1,2010.
Workers'Compensation Coverage and Emplover's Liability:Statutory limits per OCCUlTence for Workers'Compensation and
$5.0 Million for Employer's Liability Coverage,subject to the terms,conditions and exclusions as provided in the
Memorandum ofCoverage,effective July 1,2010.
Health lnsurance
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
Calirornia State Association ofCounties (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 nu significant reductions in pooled or insured liability
coverage from coverage in the prior year.
12)INTEREST F:XPF:NSE
Interest expense for the years ended June 30,2011 and 2010,is as follows:
2011 2010
Amount Expensed S 3,877,531 S 2,404,530
Amount Capitalized as a Cost of
Construction Projects 1.215.476 510.115
Total Jnterest S 5091007 $2914045
See independent auditors'report.33
~~NOTES To FINANCIAL STATEMENTS~YEARS ENDED JUNE 30,2011 AND 2010
l3)SUBSEQUENT EVENTS
al Security Rating Don'ngrade
In August 2011,Standard &Poor's downgraded the AAA rating of the United States government and all federally backed
agencies to AA+.Moody's (nvestor Service continues to hold its rating of AAA.All securities held by the District are
affected by the downgrade,however the underlying value of the securities has not been affected and interest payments
continue to be received as scheduled.
b)Changes to Other Post Employee Benefits Plan (OPEB):
The District's l30ard of Directors met on 7/15/1 L and again on 8/10/11,ancl approved enhanced retiree health benefits for
employees hired on or after July 1,1993.The immediate financial result is an increase to the District's Annual Required
Contribution (ARC)for fiscal year 2012,from a projected $495,000 to $1.313,000,based on an updated GASB 45
Actuarial Valuation effective as of June 30,2011.Employee contributions to offset this expense are being increased by
3.5%of base pay in FY-2012,and an additional 3.5°;;)in FY-2013,for a continuing total of 7.5%contribution until the
employee retires or othenvise ends District employment.
14)PRIOR PERIOD ADJUSTNIENT
During the fi.')cal year District management evaluated projects capitalized in Construction in Progress and determined that
several projects should not have been capitalized,but rather should have been expensed in the year the expenses occurred.
The District determined that 5\,333,096 of costs in Construction in Progress at June 30.2009 should have been expensed.
As a result,on the Statement of Revenues,Expenses and Changes in Net Assets beginning net assets in the 2010 column
is being restated for this prior period adjustment.
During tiscal year 2010,there was an additional $569,649 of costs capitalized to thcse projects.On the Statement of
Revenues,Expenses and Changes in Net Assets,the operating expense "Administrative and General"has been restated to
include this 5569,649.On the Statement ofNet Assets,the Capital Asset Construction in Progress has been restated in the
20 I0 column to be $35,179,104.
When projects are fully or partially funded by capacity fees and those projects are expensed,the portion of the capacity
fee funding is reclassified n"OIn Capital Contributions to miscellaneous non~operating rev·enlle.The SS(J9,649 of project
expenses during 2010 was partially funded by capacity fees of $229,483.As a result,on the Statement of Revenues,
Expenses and Changes in Net Assets,2010 Capital Contributions and operating revenue '·Connection and Other Fees"
have both been restated by $229,483.
See independent auditors'report.34
t<:;~NOTES To FINANCIAL STATEMENTS
~YEARS ENDED JUNE 30,2011 AND 2010
15)SEGMENT INFOIUvlATION
During the June 30,2010 fiscal year,the District issued Revenue Bonds to finance certain capital improvements.While water
and wastewater services are accounted for in a single fund 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 30.2011.
Condensed Statement of Net Assets
June 30,2011
Water Services
ASSETS
Current Assets $115,292,575
Capital Assets 45R,R66,020
Other Assets 9,034,415
Total Assets 583,193,010
LIABILITIES
Current Liabilities 23,066,871
Long-Term Liabilities 115,2(,7,4(,7
Total Liahilities 138,334,338
NET ASSETS
Invested in capital assets,net ofrelated debt 362,I0 1,827
Restricted for debt service 4,91j,j55
Unrestricted 77,841,290
TotClI Net Assets $444,858,672
See independent auditors'report..15
~NOTES To FINANCIAL STATEMENTS
'~~/YEARS ENDED JUNE 30,2011 AND 2010
(5)SEGMENT INFORMATION -Continued
Condensed Statement of Revenues,Expenses
and Changes in Net Assets
For The Year Ended June 30,2011
Water Services
Operating Revenues
Water sales $58,269,897
Connection and other fees 2,405,515
Total Operating Revenues 60,675,412
Operating Expenses
Cost of Water Sales 42,029,819
Administrative and General 18,761,669
Depreciation 13,IJ63,809
Total Operating Expenses 73,855,297
Operating Income (Loss)(13,179,885)
Nonoperating Revenues (Expenses)
Investment income 844,310
Taxes and assessments 3,530,675
Availability charges 600,742
Gain (loss)on sale ofcapital assets 55,300
Ivliscellaneous revenues 3,304,963
Donations (120,648)
Interest expense (3,872.284)
Miscellaneous expenses (296,959)
Total Nonoperating Revenues (Expenses)4,046,099
Income (Loss)Before Capital Contribution:;(9,133,786)
Capital Contributions 7,840,528
Changes in Net Assets (1,293,258)
Total Net Assets,Beginning,as orginally stated 448,053,976
Prior Period Adjustment (1,902,04(,)
Total Net Asset...,Beginning,as restated 446,151,930
Total Net Assets,Ending $444,858,672
See independent auditors'report.36
~~NOTES To FINANCIAL STATEMENTS
~'YEARS ENDED JUNE 30,2011 AND 2010
15)SEGMENT INFORMATION -Continued
Condensed Slatement of Cash Flows
For The Year Ended June 30,2011
Water Services
Net Cash Provided by Operating Activities
Net Cash Provided by Noncapital and Related
Financing Activities
Net Cash Provided by Capital and Related
Financing Activities
Net Cash Used by Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and cash equivalents,Beginning
Cash emd cash equivalents,Ending
See independent auditors'report.
$
$
(1,824,631 )
4,430,147
(15,940,372)
5,824,972
(7,509,884)
61,312,443
53,802,559
37
REQUIRED SUPPLEMENTARY INFORMATION
YEARS ENDED JUNE 30,2011 AND 2010
;~OT:j REQUIRED SUPPLEMENTARY INFORMATION
~~.YEARS ENDED JUNE 30,2011 AND 2010
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)(AlB)(e)[(B-A)/C]
6/30109
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%$11.174528 141.7%
6/30107
Miscellaneous $44,910.326 $59.412,116 $14.501,790 75HYrl $10 (,63 440 136.0%
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)(AlB)(e)[(B-A)/C]
6/30/11
Miscellaneous $7.893.000 $18.724.000 $10,831.000 42.\(/Yt)$12.264.000 88.32%
6/30109
Miscellaneous $6,273.000 $10.070,000 $3.797.000 62.29%$I1.878.000 31.97%
6/30/08
Miscellaneous $5.649.000 $11,581.000 $5,932.000 48.78%$11.307.000 52S;;;)
See independent auditors'report.38
Attachment C
REPORT ON INTERJ"AL CO TROL OVER FINANCIAL REPORTING ADO"COMPLIANCE AND OTHER
MATTERS BASED ON A AUDIT OF FII ANCIAL STATEME TS PERFORMED II ACCORDANCE WITH
GOVERNMENTII UDITING STANDARDS
Board ofDirectors and Management
orOtay Water District
Spring Valley_California
We have audited the financial statements of the Olay Water District as ofand for the year ended June 30,2011,and have
issued our repol1 thereon dated October 13,2011.We conducted OUf audit in accordance with auditing standards generally
accepted in the United States ofAmerica and the standards applicable to financial audits contained in Cm'erlllllellf Auditing
Standards,issued by the Comptroller General ofthe United States.
Internal Control Over Financial Reporting
[n 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 Gtay Water District's internal control over
financinl reporting,
A deficiency ill il/rcma/COllfro/exists when the design or operation ofa 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 marerial lVeakness is a deficiency,or a combination of deficiencies,in internal control such that there is a
reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented,or detected and
corrected on a timely basis.
Our consideration of internal control over financial reponing was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control o\'er financial reponing that might be
deliciencies.signiticant deficiencies,or material weaknesses.W~did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses.as defined above.However.we identified certain
deficiencies in internal control over financial reponing.described in the accompanying "Schedule of Findings and
Responses",that we consider to be significant deficiencies in internal control over financial reporting..A siguificallt
deficiellcy is a deficiency.or a combination of deliciencies,in internal control that is less severe than a material weakness,
y~(important enough to merit attemion by those charged with governance.
Comoliance and Other Matters
As part ofobtaining reasonable assurance about whether the Otay Water District's financial statements are fi'ee of material
misstatement,we performed tests of its compliance with cel1ain 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 ofour tests disclosed no instances ofnoncompliance or other
matt~rs that are required to be reponed under GOI'Cf'JIlI1e11l ;/If(litiug Standards,
2965 Roosevelt Street,Carlsbad,C\92008-2389·Tel:760.729.2343·Fax:760.729.2234
O./Jit'CJ'located in Orange and San Diego COllllties
The Otay Water District's responses to the findings identified in our audit are described in the accompanying "Schedule of
Findings and Responses".We did not audit the Dtay Water District's responses and,accordingly.we express no opinion on
them.
This report is intended solely for the information and use ofmanagement,City Council.others within Ihe entity,and federal
awarding agencies and pass-through entities and is nol intended to be and should nol be lIsed by anyone other than these
specified parties.
White Nelson Diehl Evans,LLP
Carlsbad,CA
October 13,20I I
2
Schedule of Findings and Responses
Bank Reconciliations
An important element of internal control over cash receipting and disbursing functions is the completion of monthly bank
reconciliations and timely resolution ofany reconciling items identified on the bank reconciliations.During our audit.we
noted that the District reported a reconciling item identified as "Credit Card Timing Float"which was not being
investigated monthly.The District had assumed that this reconciling item was due to the timing of cLlstomer credit card
collections per the District's Utility Billing System and the receipt of those credit card payments on the bank statement.
After fUlther review,the District made an adjustment to reduce cash in the amount ofS29,687 leaving a reconciling item of
$18,979.\Ve recommend that the District establish procedures to investigate and resolve bank reconciling items as they
occur each month to allow for timely correction and adjustment to the accounting records and identify any potential loss.
Management's Response
Staff agrees with the auditor's assessment of the bank reconciliation process.Staff has implemented additional procedures
which have been reviewed with the auditor.The auditors agree that these are sufficient to identify similar errors in the
future.After a detailed review,staff found errors made by customer service staff which resulted in an overstatement of
cash.Duplicate payments by customers,which had been voided prior to processing,were not forwarded to be voided in the
general ledger.Staff made a correcting entry of$29,687.This left the corrected deposit in transit amount of$18,979.It
docs not appear that any monetary loss has occurred.
Journal Entries
Enteringjournal entries into an accounting system is a way that day to day internal controls may be overridden.As a result,
strong controls over journal entry posting and approving is an important element of an entity's internal control system.
During our audit,we noted that certain employees can prepare,post,and approve journal entries directly into the
accounting system.This results in a lack of actual approval before being recorded on the general ledger.The absence of
controls over the approval process can result in inaccurate accounting information being recorded on the general ledger.
We recommend that the District establish procedures to review the journal entries that can be posted by the same employee
who prepares the journal entry.
Management's Response
Staff agrees with the auditor's assessment of the journal entry posting process.Aner a detailed review,staff found two
journal entrees that had been made and posted by the same staff member.While the accountants were not authorized to
create and also post ajournal entry,the District did not have a process to identify when this occurs.Staff has implemented
additional procedures which have been revie\ved with the auditors.The auditors agree that the improved procedures are
sufficient to detect similar errors in a timely manner.The journal entries that did not follow the standard approval process
were reviewed thoroughly by management and found to be appropriate in all other respects.
Attachment D
October 13,201 I
Board of Directors
Audit Committee
Otay Water District
Spring Valley,Califomia
We have audited the fmancial statements of the Otay Water District for the year ended June 3D,20 II.
Professional standards require that we provide you with infomlation about our responsibilities under
generally accepted auditing standards (and,if applicable,Government Anditing Standards and OMB
Circular A-I33),as well as certain information rclated to the planned scope and timing of our audit.
We have communicated such information during a meeting on June IS,20 II.Professional standards
also require that we communicate to you the following information related to our audit.
Significant Audit Findings:
Oualitative Aspects ofAccounting 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 I to the financial statcments.
No new accounting policies were adopted and thc application of existing policies was not changed
during the year ended June 3D,20 II.We notcd 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 bccause of the possibility that future events affccting them
may differ significantly from thosc expccted.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 usen.lllives for capital assets and depreciation expesnsc which are based on
industry standards.
-t -
2%5 Roosevelt Street,Carlsbad,C \92008-2389 •Tel:760.729.2343 •Fax:760.729.2234
OjJit'1!J'/ot(]!ed ill Orange and San Diego Cotmtiu
Significant Audit Findings (Continued):
Oualitative Aspects of Accounting Practices (Continued)
c.The annual required contribution for the District's Other Post-Employment Benefits was
prepared by an olLtside 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 detemlining that they
were reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their signiticance 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.
Difticulties 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 adjustments identified during the
audit,other than those that are trivial,and communicate them to the appropriate level of management.
Management has made all such adjustments.The following adjustments detected as a result of audit
procedures were corrected by management:
a.Capitalized interest on infrastructure capital assets was decreased by $1,168,366.We
detemlined the proper amount to be capitalized through calculations of capital assets
constructed.
b.Caltrans reimbursements of 5582,113 for utility line rclocations were reclassitied from
construction in progress to capital contributions.
c.Certain CIP projects were reevaluated to detennine whether they were completed or still in
progress.As a result $22,23 I,009 of construction in process was reclassitied as a completed
project.$2,167,505 of construction in progress was expensed,including $1,902,745 of
amounts considered to be construction in progress in prior years.In total,$24,398,514 was
removed from CIP.Reclassifications were made between capital contributions and
operating revenue in the amount of $439,448 relating to capacity fee and bettemlent fee
funded operating projects previously accounted for as construction in progress.
- 2 -
Significant Andit Findings (Continned):
Corrected and Uncorrected Misstatements (Continued):
d.$29,687 of adjustments to cash balances related to a credit card float amount was removed
from the District's cash balances at June 30,20 II.
The following item is an uncorrected misstatement of the financial statements.Management has
determined that its effect is immaterial,both individually and in the aggregate,to the financial
statements taken as a whole.
a.Management's estimate of capital costs from the Spring Valley Sanitation District for
$155,000 was not recorded between construction in process and accounts payable.
Disagreements with Management
For the purposes of this letter,professiotlal standards define a disagreement with management as a
financial accounting,reporting,or auditing matter,whether or not resolved to our satisfaction,that
could be significant to the financial statements of the auditors'reporl.We are pleased to report that no
such disagreenlcnts arose during the course ofour audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated October 13,2011.
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 mattcrs,including the applicatioll of accounting principles and
auditing standards,with management each year prior to retention as the goven1mental unit's auditors.
However,these d;scussiolls 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 allyone
other than these speci fied parties.
- 3 ~
Attachment E
DIEHL,EVANS &COMPANY,LLP
CERTIFIED PUBLIC ACCOUNTANTS",CONSULTANTS
..\PART\TRSlllP [1\CLLDJ\GACCOLNTA:-';CY CORPORATIONS
2965 ROOSEVELT STRr::ET
CARLSL3I\D,CALlFORNIA 92008-2389
(760)729-2343.FAX (760)729-2234
\\'ww,dio.::hlcvans.cOlll
September 23,20 II
INDEPENDENT ACCOUNTANTS'REPORT
ON APPLYING AGREED-UPON PROCEDURES
Mr.Joseph Beachem
Chief Financial Officer
Otay Water District
Spring Valley,CA
1'ltILl!'H.IIOLfKA\H'.CPA
'TH()\lAS \1.PERLOWSKL CPA
-'IIARVEY 1.SCHROEDER.CPA
Kb\"ElH R..'\\I£S.CPA
.\I1CllAEL 1<.LUl!".CP.\
("RAIG W.SPRAKER.CI'A
'\ITI'\P.PA rEL ("1',\
ROBERT 1.CAU.A"AN.CPA
\Ve have performed the procedures enumerated below,which were agreed to by the Gtay 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 30,2011.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 sufticiency of the procedures
described below either for the purpose for which this report has been requested or for any other purpose.
Our procedures and tindings are as follows:
I.Obtain a copy of the District's investment policy and determine that it is in effect for the fiscal
year ended June 30,2011.
a.Findings:At June 30,2011,the current investment policy (Policy #27)is dated
September 6,2006.This policy was reviewed and approved for the 2010/2011 Fiscal
year as part of the consent calendar at the September 1,20 I0 Regular Board Meeting.
Therefore the investment policy is in effect for the time period under review.
z.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 FNMA -Maturity t/28/2013;FHLB -Maturity
8/12/2013;FHLMC -Maturity 7/27/2012 and FHU3 -Maturity 11/12/2013.All four
investments are allowable and within maturity limits as stated in the District's Investment
Policy at June 30,2011.
OTIIEROFFICES -\T:(J1-'w.VALLEY I'.--\RK\V,--\Y.Sl'n F .~.\O
ESC·Oi\OIDO.C\LII-"ORN1:\92025-15!J8
(7(,0)7-1-1·,141.F..\X (7(,0)HI-l)H')()
5 CORf'OR.\TE P,-\RK.SlTIT 100
IR\·INE.CALI FOR"!.\'l2(,06-5165
(1)49J-.l99-0600.F.\X 194!J).W9-0(,11l
Mr.Joseph Beachem,CFO
Otay Water District
September 23,2011
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.
3.Findings:Per discussion with District management and evidenced by Union Bank of
California confinn3tion,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.Confinn the par or original investment amount and market value for the four investments selected
above with the custodian or issuer ofthe investments.
a.Findings:Investment values confirmed with Union Bank of California at June 3D,2011
with no exceptions.
5.Select two investment earnings transactions that took place during the year and recompute the
earnings to detennine 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 arc permissible under the District's investment policy.
a.Findings:Reviewed tive investment transactions.All transactions were permissible
under the District's investment Policy.
8.Review the supporting documents for the five investments selected at #7 abovc to determine if
the transactions were appropriately recorded in the District's general ledger.
a.Findings:Five investments selected at #7 above are appropriately recorded in the
District's General Ledger without exception.
\Ve were nOI engaged 10,and did not,conduct an audit,the objective of which would be Ihe expression of
an opinion on the investments of the District for the fiscal year ending June 30,2011.Accordingly,we
do not express such an opinion.Had we perfonned additional procedures,other Inatters might have come
to our attention that would have been reported to you.
This report is limited solely for the infonnation and use of the Board and senior management of the Gtay
\-Vater District and is not intended to be and should not be used by anyone other than those specitied
parties.
AGENDA ITEM 9a
STAFF REPORT
TYPE MEETING:Regular Board Meeting
SUBMITIED BY:Mark Watton,
MEETING DATE:
W.O.lG.F.NO:
November 2,2011
DIV.NO.
SUBJECT:
General Manager
Board of Directors 2012 Calendar of Meetings
GENERAL MANAGER'S RECOMMENDATION:
At the request of the Board,the attached Board of Director's meeting
calendar for 2012 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2012 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.
(MJL~-
Gtneral Manager
Attachments:Calendar of Meetings for 2012
G:\Us.:rO<lt:l\DislS~C\Wjr-.WORD'S I'AFRJ'TS\l3ourJ Meeting Cukl1uar 11-2-1 I.do,
Regular Board Meetings:
January 4,2012
February 1,2012
March 7,2012
April 4,2012
May2,2012
June 6,2012
July 4,2012
August 1,2012
September 5,2012
October 3,2012'
November 7,2012
December 5,2012
Board Workshops:
Budget Workshop:TBD
Board Workshop:TBD
Board of Directors,Workshops
and Committee Meetings
2012
Special Board or Committee Meetings (3'd
Wednesday of Each Month or as Noted)
January 18,2012
February 15,2012
March 21,20 12
April 18,2012
May 16,2012
June 20,2012
July 18,2012
August 15,2012
Septembcr 19,2012
October 17,2012
November 21,2012
G:\UserDjta\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar Attach A for 2012 11-2-II.doc
Page I of J
AGENDA ITEM 10a
W.O.lG.F.NO:
MEETING DATE:TYPE MEETING:
SUBMITIED BY:
APPROVED BY:
(Asst.GM):
SUBJECT:
STAFF REPORT
Regular Boar~(I
Geoff Steve~:19~f
Information offi~r/1;;
German A)~,Assistant General Manager,
Administ~rd.pn and Finance
Strategic Plan -Water Supply Issues
November 2,2011
DIV.NO.
GENERAL MANAGER'S RECOMMENDATION:
This is an informational item.No action required.
Committee Action:
See Attachment "AN
Purpose:
To explain to the Board the portions of the Strategic Plan focusing
on core issues of water supply and infrastructure planning.
Analysis:
At the presentation of the year end 2011 Strategic Plan results,the
Board expressed an interest in further understanding the elements in
the 2012-2014 Strategic Plan that focused on the core issues of water
supply and infrastructure.This presentation is in response to this
request.(PowerPoint attached)
Fiscal Impact
This is an informational item and has no fiscal impact.
Strategic Goal
This item is addressing water supply and infrastructure planning
issues specifically detailed in the FY2012-2014 Strategic Plan.
LEGAL IMPACT:
None.
Attachments:
Attachment A:Committee Action
Attachment B:Presentation
ATTACHMENT A
Review of the FY 2012-2014 Strategic Plan's Focus on Water
SUBJECT/PROJECT:Planning and Supply
COMMITTEE ACTION:
The Finance,Administration and Communications Committee reviewed
this item at a meeting held on October 19,2011 and the following
comments were made:
•
•
•
Staff indicated that this report is in response to an inquiry by
Director Croucher with regard to how the District is handling water
planning and supply;the District's core business.
A subset of the District's Strategic Plan was presented where
planning and supply are the focus.The District identified its Key
Challenge,"From a water supply perspective,this means determing
the optimum mix of water supply,treatment,and delivery solutions
for our customers."This is a key focus and reflects the issue of
buying,storing and building infrastructure for water.
Staff presented four strategies that are specifically devoted to
the core issue of,"Actively manage water supply and demand."
Prepare and implement a Waste Water Management Plan.
Implement the recommendations within the Integrated Water
Resources Plan (IRP)to acquire alternative and/or additional
potable and recycled water supplies and enhance resource
reliability.
Continue working with the City of Chula Vista for the possible
development of an MBR Plant and for a potential agreement with
the City for recycled water supplies from the MBR Plant.
Closely monitor the District's potable water demand to ensure
the District will remain on target to achieve its 2015 gpcd
target as identified in the 2010 Urban Water Management Plan.
•
•
Staff noted that these strategies drive the District's outlook of
where we are going with water resources and the infrastructure that
will be required to provide services.All are essentially,
determined largely by the Water Resources Master Plan (WRMP),the
District's primary planning tool for water resources.The District
also prepares an Urban Water Management Plan (UWMP)which assesses
growth projections and is a factor that impacts the WRMP.
All that the District has been doing before on water planning and
supply is still included in the FY 2012-2014 Strategic Plan.
It was discussed that the above aligns with the Strategic Plan's
Mission and Vision Statements,"To provide high value water and
wastewater service to the customers of the Otay Water District_A
District that is innovative in providing water services at
affordable rates,with a reputation for outstanding customer
service.H
Following the discussion,the committee supported presentation to the
full board as an informational item.
~--
Mission &Vision Statements
MISSION STATEMENT
District's Mission:To provide high value water and wastewater service to the
customers ofthe Otay Water District,in a professional,effective and efficient
manner.
VISION STATEMENT
General Manager's Vision Statement:"A District that is innovative in providing
water services at affordable rates,with a reputation for outstanding customer
."service.
----~
Key Challenge
Our ongoing District challenge is to create value by improving our core business
processes.
From a water supply perspective,this means determining the optimum mix
ofwater supply,treatment,and delivery solutions for our customers.
From a daily operating perspective,efficiency improvements have become the
primary source of competitive advantage and cost optimization for utilities.
Adding value from this perspective means the entire team focusing on not only the
highest priority goals but also examining the details of what we do every day and be
willing to alter how we do it if it makes a positive difference.Our employees have
voiced a high degree of personal and professional satisfaction with our direction
and the entire team is committed to meeting this key challenge with distinction.
"Actively manage water sulm.!.v and demand"
1)Prepare and implement a Waste Water Management
Plan.
2)Implement the recommendations within the Integrated
Water Resources Plan (IRP)to acquire alternative and/or
additional potable and recycled water supplies and enhance
resource reliability.
3)Continue working with the City of Chula Vista for the
possible development of an MBR Plant and for a potential
agreement with the City for recycled water supplies from
the MBR Plant.
4)Closely monitor the District's potable water demand to
ensure the District will remain on target to achieve its 2015
gpcd target as identified in the 2010 Urban Water
Management Plan.
Questions /Concerns /Issues
AGENDA ITEM 11
STAFF REPORT
TYPE
MEETING:Regular Board
MEETING
DATE:October 5,2011
SUBMITTED
BY:
Mark Watton
General Manager
W.O./G.F.
NO:
N/A DIV.
NO.
N/A
SUBJECT:General Manager's Report
ADMINISTRATIVE SERVICES:
Human Resources:
•Healthiest Companies Program -The District was a finalist in
the recent San Diego Business Journal's Healthiest Company
Award Program.This shows that the District is dedicated to
the health and well-being of its employees through wellness
programs,which have allowed our employees to thrive with
higher productivity and morale.
•Retirement Planning Week -The District participated in
Retirement Week.This annual event highlights the need for
employees to focus on ensuring that they are prepared for
retirement.This year,our deferred compensation vendors were
on-site for lunch and learn programs as well as holding
individual meetings with employees.
•Open Enrollment -Open Enrollment is in progress with a
deadline of October 28,2011.SDRMA made some changes to some
of the plan designs for cost-containment and information has
been provided to all participants.In addition,the District
changed dental carries to Delta Dental.
•Employee Information Meetings -The District held Employee
Information meetings on October 20th •These meetings are held
every six months to provide employees with relevant
information regarding key District projects and updates.
Updates included a presentation regarding the Otay
Interconnection Project,lessons learned from the blackout,
training regarding the District's Anti-Fraud Policy,and
various updates.
•New Hires/Promotions There were no new hires/promotions in
the month of October.
Safety and Security
•GETS -The District is now a member of the Government
Emergency Telecommunications Service (GETS)network.GETS is
an emergency phone service provided by the National
Communications System (NCS)in the Department of Homeland
Security.GETS supports Federal,State,local and tribal
government,industry,and non-governmental organization (NGO)
personnel.GETS provides emergency access and priority
processing of local and long distance in emergency or crises
situations when lines are congested,and the probability of
completing a call over normal or other alternate
telecommunications means,has significantly decreased.
Water Conservation and School Education:
•Outreach Events -Water Conservation Specialist,Richard
Namba,staffed the poster sessions at the Water Smart
Innovations Conference in Las Vegas on October 5-6,related to
the District's Cash-for-Plants and Water Smart Irrigation
Update Programs.In addition,the District staffed a booth at
Marshall Elementary's Fall Festival on October 28th •
•Schoo1 Program -Three school tours at the Water Conservation
Garden were completed in October,involving 100 third graders
and 24 adults from Avocado and Vista Grande Elementary
Schools.10 of the 21 scheduled tours have been completed;
the District budgeted to fund up to 32 tours.Staff is also
busy promoting the Splash Lab program.Two Splash Labs have
been scheduled to date and the budget allows the funding of up
to eight labs.
Purchasing and Facilities:
•Purchase Orders -There were 75 purchase orders processed in
October 2011 for a total of $311,190.41.
INFORMATION TECHNOLOGY AND STRATEGIC PLANNING:
•MISAC -The Municipal Information Systems Association of
California (MISAC)established the "Excellence in Information
Technology Practices"Program to recognize exemplary
Information Technology (IT)practices by public agency efforts
2
in the Information Technology arena.MISAC is proud to
announce that Otay Water District has been awarded an
EXCELLENCE in Information Technology practices.This is Otay's
third award in five years.Bill Jenkins received the award in
person in Monterey on October 3~.
FINANCE:
•Paperless Billing -As of October 19th,20,017 customers have
signed up for our online billing services.Of these,9,141,
or 46%,have selected to go paperless.Otay saves
approximately $0.50 for each bill that is sent electronically
instead of through the mail.Beginning in late October,
Customer Service staff will initiate an email campaign to
encourage those customers currently signed up for online
billing and still receiving a paper copy of their bill,to
transition to paperless billing.
•Re-evaluating Staff Duties -As part of the effort to create
greater efficiency within the District,several areas are
being evaluated within the Finance Department.Improvements
to the Rate Model are underway.This is an effort to simplify
and increase the reliability of the rate setting process.
Accounts Payable processes are being evaluated and reassigned
to eliminate redundant work between departments.This is being
done after a thorough review by Management.Additionally,
Finance,Engineering,and IT staff are undergoing the effort
to streamline and automate the CIP budgeting process,leading
to efficiencies by integrating systems and improving
reporting.Finally,an effort is being made to examine and
change the reserve accounting to increase efficiency in
reporting reserve activity.All of these changes will lead to
the ability to do more with less.
•CWA Local Water Supply -The District had a successful audit
by CWA's audit firm,LSL,for the recycled water program for
fiscal years 2008 through 2010.The auditors reviewed the
District's internal control procedures;recycled water sales
and meter fees;CIP expenditures;and O&M costs for this
program.There were no findings noted as a result of the test
work performed and the District is eligible for recycled
incentives from CWA.
•AWWA Fall Conference -Otay was well represented with three
speakers at the AWWA Fall Conference held October 17-20.
Alice Mendez-Schomer and Frank Anderson gave a presentation on
Otay's AMR journey titled "Beginning to the Next Beginning."
Rita Bell gave a presentation on "The Impact of Reduced Sales
and Growth on the Capital Improvement Program and Water
3
Rates."Both presentations were well attended and well
received by their audiences.
•Financial Reporting:
o The financial reporting for September 30,2011,is as
follows:for the three months ended September 30,2011,
there are total revenues of $22,520,848 and total expenses
of $21,471,694.The revenues exceeded expenses by
$1,049,154,which is $156,601 less than planned for this
time due to lower water sales and lower water cost than
budgeted.
o The financial reporting for investments for September 30,
2011,is as follows:the market value shown in the
Portfolio Summary and in the Investment Portfolio Details
as of September 30,2011,total $96,775,785.81 with an
average yield to maturity of .644%.The total earnings
year-to-date are $181,438.14.
ENGINEERING AND WATER OPERATIONS:
Engineering:
•Rancho del Rey Groundwater Well Development:The consultant,
Tetra Tech,Inc.,finalized the preliminary design report on
October 6.Tetra Tech and the District will meet with the
California Department of Health to present the preliminary
design on November 8.Activities are underway to secure a
sewer discharge permit from the City of Chula Vista,power
supply from SDG&E,and other components.The design is
anticipated to be completed in the third quarter of Fiscal Year
2012,with construction completed in the fourth quarter of
Fiscal Year 2013.(P2434)
•North District -South District Interconnections System:This
project consists of installing approximately 5.2 miles of 30-
inch diameter pipe from Proctor Valley Road in Chula Vista to
Paradise Valley Road in Spring Valley.The project is
currently in the early design phase with Lee &Ro,Inc.working
on finalizing the alignment study with two preferred alignments
(Corral Canyon Road and Proctor Valley Road).Activities are
underway to begin initial studies for the Proctor Valley Road
alignment including coordination with the SDCWA and US Fish and
Wildlife.Several community outreach efforts have been
completed including meetings with politicians and/or their aids
including Mayor Cheryl Cox,Senator Juan Vargas,Congressman
Bob Filner,Assembly Member Ben Hueso,and County Supervisor
4
Greg Cox and a presentation to the Sweetwater Valley Civic
Association.(2511)
•657-1 & 2 Reservoirs Coating:The contractor,Blastco,Inc.,
has completed the interior and exterior coating of the 657-1 and
657-2 Reservoirs.The 657-1 and 657-2 Reservoirs are in
service.Project was completed on October 14,2011 under
budget.(P2505,P2506)
•944-1R Recycled Water Pump Station Upgrades &Enhancements:This
project consists of upgrading the 944-lR Pump Station with new
pumps,new pipe configurations,and electrical upgrades to keep
up with current and future recycled water demands.The
contractor,Sepulveda Construction,Inc.(Sepulveda),will start
mobilizing at the end of October.Project is scheduled to be
completed in June 2012.(R209l)
•Ralph W.Chapman Water Reclamation Facility Upgrade:This
project consists of an upgrade to the treatment plant to reduce
the nitrogen levels in the plant effluent.The upgrade includes
modifications to the aeration basins,the addition of energy-
efficient turbo blowers and replacement of corroded air piping,
a new cover for the filter backwash storage tank,a new filter
air scour system,and automation enhancements.The contractor,
NEWest Construction Company,Inc.,continues the investigation
of existing utilities and has completed the over excavation for
the pad of the new air scour facility.Construction is
anticipated to be completed in June 2012.(R2096)
•Avocado,Louisa,Calavo,Challenge,Hidden Mesa Sanitary Sewer
Replacement:This project consists of replacing approximately
4,500 ft.of sewer pipeline in Avocado Blvd and neighboring
residential streets.The project will go out to bid on October
25,2011,and is scheduled for Board award in January 2012.
(S20l9,S2020, S2022,S2023,S2026)
•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 between Proctor Valley Road and 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 project
is anticipated to be awarded in January 2012 with construction
to start soon after.The project will take approximately 7
months to complete.(P25l4)
•As a result of a newspaper article questioning the process for
evaluation and recommendation to the Board for hiring
5
consultants,Engineering staff conducted an informal survey of
twelve local agencies to determine if they conduct background
checks and it was found that Padre Dam Water District was the
only one that does (see attached Agency Consultant Selection
spreadsheet).Engineering staff will add to the normal checks
for technical competence,a background screen (Google type of
search)of the top firm proposing for consulting services to the
District.A Staff Report will be submitted at the November
Committee Meeting/January Board Meeting recommending that a
background check be added to the consultant evaluation process.
•For the month of September 2011,the District sold 65 meters (74
EDUs)generating $448,393 in revenue;which is 59%above
projection.Projection for this period was 23 meters (36.7
EDUs)with budgeted revenue of $281,350.Projected revenue from
July 1,2011 through June 30,2012 is $3,376,200 against a
budget of $1,442,920.
•For the month of September 2011,staff reviewed 2 potential
easement encroachments and will be gathering all the necessary
information prior to informing customers of the removal of the
encroachments.The above is part of an on-going program of
easement monitoring.
•Approximately 369 linear feet of both CIP and developer project
pipeline was installed in September 2011.The Construction
Division performed quality control for these pipelines.
The following table summarizes Engineering's project purchases
and Change Orders issued during the period of September 23
through October 20,2011 that were within staff signatory
authority:
Date Action Amount Contractor/ProjectConsultant
First Rancho del Rey
10/11/11 P.O.$2,500 American Groundwater Well
Title Co.Development (P2434)
United Storm East Orange Avenue
10/19/11 P.O.$8,657 Water Inc.Bridge Crossing
(P2513)
657-1 &657-2
10/20/11 C.O.#5 ($34,125.48)Blastco Reservoirs Coatings
(P2505/P2506)
6
Water qperations:
•The County of San Diego is in the process of disconnecting
microturbines located at the Ralph W.Chapman Water Recycling
Facility.The microtrubines will be removed by the end of this
year.
•Total number of potable water meters is 48,526.
•For September the actual potable water purchases were 2,999.7
acre feet which is 607.0 acre feet or 16.8%less than budget.
This is due to the unusually cool weather for this time of
year.Cumulatively the budgeted water purchases is 3.5%below
budget.
Potable Water Purchases
16.000
14.000 ~12.000 ~10.000-a;~'"L.L 8.000~~u-<6.000 ~-Purchases
4.000 ~_Budget
2.000
-
Jul-11 Aug-11 Sep-11 Oct-11
•Recycled water consumption for the month of September is as
follows:
Total consumption was 507.6 acre-feet or 165,347,644 gallons
and the average daily consumption was 5,511,588 gallons per
day.
Total number of recycled water meters is 691.
Total recycled water consumption to date for FY 2012 is 1,636.9
acre-feet.
7
•Wastewater flows for the month of September were as follows:
•Total basin flow,gallons per day:1,794,708.
•Spring Valley Sanitation District Flow to Metro,gallons per
day:593,882.
•Total Otay flow,gallons per day:1,198,207.
•Flow Processed at the Ralph W.Chapman Water Recycling
Facility,gallons per day:1,084,385.
•Flow to Metro from Otay Water District,gallons per day:
116,442 .
•By the end of September there were 6,081 wastewater
connections/EDUs.
-=---&&~General Manager
8
OTHER AGENCY CONSULTANT SELECTION
AGENCY CONTACT BACKGROUND POLICY
CHECKS?
Vallecitos Water Rob Scholl No Checks the Consultant provided
District 760-744-references only.
0460 x230
Padre Darn Michael Yes Checks the Consultant provided
Hindle 619-references only.They do Google
258-4632 searches for Principals and Project
Managers.
Sweetwater Hector No Checks the Consultant provided
Authority Martinez references only,but have not done work
619-409-recently with Contractors or
6751 Consultants that they don't already
know.
Helix Water Aneld Anub No Only sends proposals to firms they have
District 619-667-pre-approved.
6273
City of Chula Kirk No Checks the Consultant provided
Vista Ammerman references only,but due to the
619-691-Tribune's article,Legal Counsel is
5115 reviewing the process.
Olivenhain George No Checks the Consultant provided
Municipal Water Briest 760-references only.No extensive
District 632-4640 background check.Only send proposals
to firms that the Project Manager
knows.
Lakeside Water Brett No Checks references provided by the
District Sanders 619-consultants
443-3805
Santa Fe Karen Falk No Check three references.No additional
Improvement 858-414-background check.
District 9978
Ci ty of La Mesa Eric Roark No Checks the Consultant provided
619-667-references only.
1118
Ramona Water Philip No Checks the Consultant provided
District Dauben 760-references only.No background checks.
788-2260
San Diego County Mike Kinny No References checked by one individual.
Water Authority 858-522-No extensive background check.Don't
6800 hire people they don't know.
City of Santee Steven No Checks three references provided by the
Miller 619-consultants.No additional background
258-4100 checks.
x176
9
OTAY WATER DISTRICT
COMPARATIVE BUDGET SUMMARY
FOR THREE MONTHS ENDED SEPTEMBER 30,201 I
Exhibit A
REVENUES:
Water Sales
Energy Charges
System Charges
MWD &CWA Fixed Charges
Penalties
Total Water Sales
Reclamation Sales
Sewer Charges
Meter Fees
Capacity Fcc Revenues
Betterment Fees for Maintenance
Non-Operating Revenues
Tax Revenues
IIlterest
Transfer from OPES
Transfer from 8etterment Reserve
Transfer from Replacement
(Jenera!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
Replacement Reserve
Transfer to Sewer Fund Reserve
Transfer to General Fund Reserve
Transfer to Sewer Replacement
Transfer to New Supply Reserve
Total Expenses
EXCESS REVENUES(EXPENSE)
F:lMORPT/FS2012-0911
Annual
Budget
$36,598,I00
1,874,000
9,542,I00
8,98 I,500
913,100
57,908,800
7,395,500
2,336,000
82,000
1,044,000
628,600
2,021,600
3,839,600
158,300
1,380,000
30,000
120,000
522,800
595,000
$78,062,200
$27,793,100
1,452,800
1,756,900
1,562,600
3,585,800
603,900
1,488,600
38,243,700
2,440,900
18,I19,600
4,300,000
4,180,700
380,000
555,000
3,330,000
786,800
2,420,500
1,720,000
1,585,000
$78,062,200
$-
YTD YTD YTD
Actual Budget Variance Var%
$11,983,338 $12,483,000 $(499,662)(4.0%)
626,962 627,100 (138)(0.0%)
2,395,063 2,385,000 10,063 0.4%
2,080,859 2,073,600 7,259 0.4%
186,952 227,600 (40,648)(17.9%)
17,273,174 17,796,300 (523,I26)(2.9%)
2,888,278 2,948,300 (60,022)(2.0%)
580,640 581,200 (560)(0.1%)
46,772 30,500 16,272 53.4%
263,770 261,000 2,770 1.1%
235,380 232,200 3,180 1.4%
421,481 430,200 (8,7 I9)(2.0%)
122,376 125,500 (3,124)(2.5%)
26,980 29,600 (2,620)(8.9%)
345,000 345,000 0.0%
7,500 7,500 0.0%
30,000 30,000 0.0%
130,700 130,700 0.0%
148,800 148,800 0.0%
$22,520,848 $23,096,800 $(575,952)(2.5%)
$8,771,948 $9,109,100 $337,153 3.7%
641,347 611,850 (29,497)(4.8%)
429,189 429,300 I II 0.0%
363,642 363,600 (42)(0.0%)
796,85 I 796,800 (5 I)(0.0%)
163,803 166,200 2,397 1.4%
370,302 372,000 1,698 0.5%
11,537,082 11,848,850 311,768 2.6%
766,684 769,700 3,016 0.4%
4,849,126 4,948,260 99,134 2.0%
806,179 812,000 5,821 0.7%
800,116 817,835 17,718 2.2%
113,108 95,000 (18,107)(19.1%)
138,800 138,800 0.0%
832,500 832,500 0.0%
196,700 196,700 0.0%
605,I00 605,I00 0.0%
430,000 430,000 0.0%
396,300 396,300 0.0%
$21,471,694 $21,891,045 $4I9,350 1.9%
$1,049,154 $1,205,755 $(156,601)
10/24/2011 11:07 AM
OTAY WATER DISTRICT
INVESTMENT PORTFOLIO REVIEW
SEPTEMBER 30,2011
INVESTMENT OVERVIEW &MARKET STATUS:
The federal funds rate has remained constant now for over 33-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 21,20 II.
They went on to say:"The CommiUee carremly anticipates that economic conditions--including low rates ofresource utilization and a
subdued outlookfor inflation over the medium run--are likely to warrant exceptionally low levelsfor thefederalfunds rate at least
through mid-2013.
Despite the large drop in available interest rates,the District's overall effecti ve rate of return at September 30th was 0.64%,which was
a decrease of?basis points (0.07%)from the prior month.At the same time the LAIF rerum on deposits has fluctuated slightly over
the last several months,reaching an average effective yield of 0.38%for the month of September 2011.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:September 30,2011
8.01:
8.02:
8.02:
8.03:
8.04:
8.05:
8.06:
8.07:
8.08:
12.0:
Investment
Treasury Securities
Local Agency Investment Fund (Operations)
Local Agency Investment Fund (Bonds)
Federal Agency Issues
Certificates of Deposit
Short-Term Commercial Notes
Medium-Term Commercial Debt
Money Market Mutual Funds
San Diego County Pool
Maximum Single Financial Institution
State Limit
100%
$50 Million
100%
100%
30%
25%
30%
20%
100%
100%
Otav Limit
100%
$50 Million
100%
100%
15%
15%
15%
15%
100%
50%
Otay Actual
o
$19.20 Million
4.19%
48.91%
0.08%
o
o
o
22.75%
4.24%
Target:Meet orExceed 100%of LAJF
Performance Measure F-12
Return on Investment
0 1.601:~E 1.40 .;;
">1.20.=<0 1.00<,
;;0.80a:
0.60
0.40
0.00 2nd Qtr 3rd Ole 4thQtr lSI Qll"2nd QIl"
FYIO FYIO FYIO FYII FYII
IiILAIF 0.61 0.56 0.56 0.51 0.47
_Otay 1.52 1.35 1.08 1.13 0.92
[]I)ifft:r~nce 0.91 0.79 0.52 0.62 0.45
3rdQtr A FYIIFYIIpr
0.37 0.27
Month
May JUll':4lhQtr July FYI2 A"g Sep FY 12 lSI QII"
FYII FYII FYII FYI2 FYI2
0.41 0.45 0.48 0.38 0.41 0.38 0.39
0.85 0.80 0.84 0.78 0.7\0.64 0.71
0.44 0.,35 0.35 0.40 0.30 0.26 0.32
RLAIF _Qtay DOme"""",]
$47,372,000
48.91 %Otay Water District
Investment Portfolio:09/30/11
$4,187,065
4.32%
$45,288,895
46.76%
OBanks (Passbook/Checking/CD)•Pools (LAIF &County)OAgencies &Corporate Notes
OTAY
Portfolio Management
Portfolio Summary
September 30,2011
PO'Market Book %01 Days to YTM YTMInvestmentsValueValueValuePortfolioTe""Maturity 360 Equiv.365 Equiv.
Federal Agency Issues-Callable 47,372,000.00 47,383,985.29 47,370.892.63 SLOB 840 730 0.800 0.811
Certificates of Deposit·Bank 79,108.00 79,108.00 79,108.00 0.09 730 113 1.380 1.399
Local Agency Investment Fund (LAIF)23,258,761.92 23,301,734.62 23,258,761.92 25.08 1 1 0.373 0.378
san DiegoCountyPool 22,030,133.52 21,903,000.52 22,030,133.52 23.76 1 1 0.592 0.600
92,740,003.44 92,667,828.43 92,738,896.07 100.00%430 373 0.644 0.653
Investments
Cash
4,107,957.38 4,107,957.38 4,107.957.38 0.018 0.019
lnol included in vield calculalions)
Total Cash and Investments 96,847,960.82 96,775,785.81 96,846,853.45 430 373 0.644 0.653
Total Earnings September 30 Month Ending_Fiscal Year To Date
Current Year 52,783.82 181,438.14
Average Daily Balance 99,780,198.36 101,216,146.39
Effective Rate of Return 0.64%1.30%
I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on September 6,2006.The market
value information provided b Interactive Data Corporation.The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures.
/0 -;2-$-/'
InanciaJ Officer
Reporting period 09/01/2011-09/3012011
Roo Date:1012412011 -08:38
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Portfolio Management Page 1
Portfolio Details -Investments
September 30,2011
Average Purchase Stated YTM Days to Maturity
CUSIP Investment #Issuer Balance Date ParValue MarketValue Book Value Rate S&P 360 Maturity Date
Federal Agency Issues-Callable
31331KZFa 2219 Federal Farm Credit Bank 09/2312011 3,000,000.00 2,991,660.00 2,999,257.41 0.481 AA 0.486 814 1212312013
313373QJ4 2196 Federal Home Loan Bank 05/25/2011 2,000,000.00 2,002,220.00 2,000,000.00 1.125 AM.1,110 786 11125/2013
313373UD2 2197 Federal Home Loan Bank 06I09f2011 2,000,000.00 2,002,440.00 2,000,000_00 1.050 AM.1,036 800 1210912013
313374ELO 2201 Federal Home Loan Bank 06/3012011 2,000,000.00 2.001,580.00 2,000,000.00 0.875 0.863 821 1213012013
313374T83 2208 Federal Home loan Bank 07/2812011 2,000,000.00 2,000,540.00 2,000,000.00 0.900 AM.0.888 850 01128/2014
313374ZW3 2209 Federal Home loan Bank 08/0812011 2,000,000.00 2,000,340.00 2,000,000.00 0.650 AM.0.641 677 08108/2013
3133755W3 2210 Federal Home loan Bank 08/2312011 2,000,000.00 2,000,780.00 2,000,000.00 0.700 AM.0.693 692 08/2312013
313375E29 2212 Federal Home loan Bank 09/0712011 2,000,000.00 1,992,880.00 2,000,000.00 0.625 AA 0.616 888 03/0712014
313375H59 2213 Federal Home loan Bank 09/1612011 2,000,000.00 1,995,920.00 2,000,000.00 0.550 0.542 716 09/1612013
313375HZ3 2216 Federal Home loan Bank 09/1912011 2,000.000.00 1,994,960.00 2,000,000.00 0.650 0.641 900 03/1912014
3137EACK3 2146 Federal Horne loan Mortgage 05/2812010 2,000,000.00 2,013,140.00 1,999,635.22 1-147 AM.1.154 300 07127/2012
3137EACK3A 2148 Federal Home loan Mortgage 05/2712010 1,030,000.00 1,036,767.10 1,030.000.00 1.125 AM.1.109 300 07/27/2012
3137EACK3B 2149 Federal Home loan Mortgage 05127/2010 2,707,000.00 2,724,784.99 2,707,000.00 1.125 AM.1.109 300 07/2712012
3134G1Y40 2183 Federal Home loan Mortgage 02/15/2011 2,000,000.00 2.005,420.00 2,000,000.00 1.100 AM.1.085 684 08/15/2013
3134G2QPO 2205 Federal Home loan Mortgage 07127/2011 2,000,000.00 2,003.360.00 2,000,000.00 1.000 0.986 849 01127/2014
3134G2RKO 2206 Federal Home loan Mortgage 07128/2011 2,000,000.00 2,000,920.00 2,000,000.00 1.000 AM.0.986 850 0112812014
3134G2VDl 2211 Federal Home loan Mortgage 08/2412011 2,000,000.00 2,002,940.00 2,000,000.00 0.750 AA 0.740 877 02/24/2014
3134G2B92 2217 Federal Home Loan Mortgage 09/1312011 2,000,000.00 2,001,140.00 2,000,000.00 0.500 0.493 529 03/13/2013
3136FPQG5 2171 Federal National Mortage Assoc 10/26/2010 635,000.00 635,203.20 635,000.00 0.850 AM.0.837 664 07/26/2013
3136FRFMO 2192 Federal National Mortage Assoc 04/27/2011 1,000,000.00 1,001,380.00 1,000,000.00 2.000 AM.1.973 1,670 04/27/2016
3135GOCWl 2214 Federal National Mortage Assoc 09/06/2011 2,000,000.00 1,996,220.00 2,000,000.00 0.500 AA 0.493 706 09/06/2013
3135GODB6 2215 Federal National Mortage Assoc 09/12/2011 2,000.000.00 1,994,560.00 2,000,000.00 0.600 0.592 712 09/12/2013
3135GODK6 2218 Federal Nallonal Mortage Assoc 09/27/2011 2,000.000.00 1,996,500.00 2,000,000.00 0.600 AA 0.592 727 09/27/2013
3135GODNO 2220 Federal National Manage Assoc 09/26/2011 3,000,000.00 2,988,330.00 3,000,000.00 0.500 AM.0.493 726 09/26/2013---------
Subtotal and Average 42,938,085.13 47,372,000.00 47,383,985.29 47,370,892.63 0.800 730
Certificates of Deposit -Bank
2050003183-4 2121 California Bank&Trust 01/2212010 79,108.00 79,108.00 79,108.00 1.380 1.380 113 0112212012---------
Subtotal and Average 79,108.00 79,108.00 79,108.00 79,108.00 1,380 113
Local Agency Investment Fund (LAIF)
LAIF 9001 STATE OFCALIFORNIA 07/0112004 19,202,789.78 19,238,268.70 19,202,789.78 0.378 0.373
LAIF BABS 2010 9012 STATE OFCALIFORNIA 04121/2010 4,055,972.14 4,063,465.92 4,055,972.14 0.378 0.373---------
Subtotal and Average 30,205,428,59 23,258,761.92 23,301,734.62 23,258,761.92 0.373
Run Dale:101241201 t -08.38
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Portfolio Details -Investments
September 30,2011
Page 2
Average Purchase Stated YTM Days to Maturity
CUSIP Investment#Issuer Balance Date Par Value Market Value Book Value Rate S&P 360 Maturity Date
San Diego County Pool
SO COUNTY POOL 9007 San Diego County 07/01/2004 22,030,133,52 21,903,000.52 22,030,133.52 0.600 0.592---------
Subtotal and Average 22,030,133.52 22,030,133.52 21,903,000.52 22,030,133.52 0.592
Total and Average 99,780,198.36 92,740,003.44 92,667,828.43 92,738,896.07 0.644 373
Run Dale.10124/2011 -08:36
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Portfolio Details -Cash
September 30,2011
Page 3
Average Purchase Stated YTM Days to
CUSIP Investment#I Issuer Balance Date Par Value Market Value BookValue Rate S&P 360 Maturity
Union Bank
UNION MONEY 9002 STATE OF CALIFORNIA 07/0112004 3,018,387.94 3,018,387.94 3,018,387.94 0.010 0.010
PETTY CASH 9003 STATE OF CALIFORNIA 0710112004 2,950.00 2.950.00 2,950.00 0.000
UNION OPERATING 9004 STATE OF CALIFORNIA 07/0112004 990,692.60 990,692.60 990,692.60 0.040 0.039
PAYROLL 9005 STATE OF CALIFORNIA 07/0112004 24,100.32 24,100.32 24,100.32 0.000
RESERVE·l0 COPS 9010 STATE OF CALIFORNIA 04/2012010 688.02 688.02 688.02 0.000
RESERVE-l0 BASS 9011 STATE OF CALIFORNIA 04/20/2010 418.14 418,14 418.14 0.001 0.001
UBNA-2010 BOND 9013 STATE OF CALIFORNIA 0412012010 48,994.10 48,994.10 48,994.10 0.147 0.145
UBNA-FlEX ACCT 901.STATE OF CALIFORNIA 01/0112011 21,726.26 21,726.26 21,726.26 0.000
Average Balance 0.00
Total Cash and Investments 99,780,198.36 96,847,960.82 96,775,785.81 96,846,853.45 0.644 373
RunDale.1012412011 -08 38
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Activity Report
Sorted By Issuer
July 1,2011 -September 30,2011
ParValue Par Value
Percent Beginning Current Transaction Purchases Of Redemptions or Ending
CUSI?Investment#Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance
Issuer:STATE OF CALIFORNIA
Union Bank
UNION MONEY 9002 STATE OF CALIFORNIA 0.010 39.770.326.00 36,761,994.55
UNION OPERATING 9004 STATE OF CALIFORNIA 0.040 2,375,785.65 2,271,734.75
PAYROLL 9005 STATE OF CALIFORNIA 350,000.00 349,684.39
RESERVE-1Q COPS 9010 STATEOF CALIFORNIA 5,793.75 13,489.32
RESERVE·1Q BABS 9011 STATE OF CALIFORNIA 0.001 15,228.09 35,452.89
UBNA-Z010 BOND 9013 STATE OF CALIFORNIA 0.147 48,942.21 0.00
UBNA-FlEXACel 9014 STATEOF CALIFORNIA 50,000.00 40,016.50
Subtotal and Balance 964,254.08 42,616,075.70 39,472,372.40 4,107,957.38
Local Agency Investment Fund (LAIF)
LAIF 9001 STATE OF CALIFORNIA 0.378 17,633,803.66 30,200,000.00
LAIF BABS 2010 9012 STATE OF CALIFORNIA 0.378 4,807.91 0.00
Subtotal and Balance 35,820,150.35 17,638,611.57 30,200,000.00 23,258,761.92
Issuer Subtotal 28.257%36,784,404.43 60,254,687.27 69,672,372.40 27,366,719.30
Issuer:California Bank &Trust
Certificates of Deposit -Bank
Subtotal and Balance 79,108.00 79,108.00
Issuer Subtotal 0.082%79,108.00 0.00 0.00 79,108.00
Issuer:Federal Farm Credit Bank
Federal Agency Issues-Callable
31331KZFO 2219 Federal Farm Credit Bank 0.481 09/2312011 3,000,000.00 0.00
Subtotal and Balance 0.00 3,000,000.00 0.00 3,000,000.00
Issuer Subtotal 3.098%0.00 3,000,000.00 0.00 3,000,000.00
Issuer:Federal Home Loan Bank
RU/1 Date'1012412011 ·0911
Portfolio OTAY
AP
DA (pRF_DA)7.2.0
ReportVef.7.3.2
OlAY
Activity Report Page 2
July 1,2011 -September 30,2011
Par Value Par Value
Percent Beginning Current Transaction Purchasesor Redemptions or Ending
CUSJP Investment#Issuer ofPortfolio Balance Rate Date Deposits Witlldrawals Balance
Issuer:Federal Home Loan Bank
Federal Agency Issues-Callable
313371MR4 2174 Federal Home loan Bank 0.700 0812212011 0.00 2,000,000.00
313373CWa 2193 Federal Home loan Bank 1.375 07125/2011 0.00 2,000,000.00
313373K27 2194 Federal Home Loan Bank 1.200 0811212011 0.00 2,000,000.00
313373MC3 2195 Federal Home Loan Bank '.200 08/1212011 0.00 1,775,000.00
313373V2S 2198 Federal Home Loan Bank 0.875 09/0612011 0.00 2,000,000.00
313373INVO 2199 Federal Home Loan Bank 1.100 07/0612011 0.00 2,000,000.00
3133747H7 2202 Federal Home Loan Bank 0.875 09/27/2011 0.00 2,000,000.00
313374G46 2203 Federal Home Loan Bank 1.000 07/08/2011 2,000,000.00 0.00
313374046 2203 Federal Home loan Bank 08108/2011 0.00 2.000,000.00
313374T83 2208 Federal Home loan Bank 0.900 07128/2011 2.000,000.00 0.00
313374ZW3 2209 Federal Home loan Bank 0.650 08108/2011 2,000,000.00 0.00
3133755W3 2210 Federal Home loan Bank 0.700 08123/2011 2,000,000.00 0.00
313375E29 2212 Federal Home loan Bank 0.625 09/07/2011 2.000,000.00 0.00
313375H59 2213 Federal Home Loan Bank 0.550 09/16/2011 2,000,000_00 0.00
313375HZ3 2216 Federal Home loan Bank 0.650 09/19/2011 2,000,000.00 0.00
Subtotal and Balance 19,775,000.00 14,000,000.00 15,775,000.00 18,000,000.00
IssuerSubtotal 18.586%19,775,000.00 14,000,000.00 15,775,000.00 18,000,000.00
Issuer:Federal Home Loan Mortgage
Federal Agency Issues-Callable
3134G1MD3 2153 Federal Home loan Mortgage 1.100 07/22/2011 0.00 2,000,000.00
3134G1PK4 2158 Federal Home loan Mortgage 1.000 oafl1/2011 0.00 2,000,000.00
3134G13K8 2185 Federal Home loan Mongage 1.000 08/24/2011 0.00 2,000,000.00
3134G12U7 2186 Federal Home loan Mortgage 0.750 08f23/2011 0.00 2,000,000.00
3134G14B7 2187 Federal Home Loan Mortgage 1.350 08/23J2011 0.00 2,000,000.00
3134G15C4 2188 Federal Home loanMortgage 1.250 09/0712011 0.00 2,000,000.00
3134G17l2 2190 Federal Home loanMortgage 1.350 09J2312011 0.00 2,000,000.00
3134G2MC3 2200 Federal Home loanMortgage 0.800 09/27/2011 0.00 2,000,000.00
3134G2PE6 2204 Federal Home loanMongage 1.000 07/0812011 2,000,000.00 0.00
3134G2PE6 2204 Federal Home loanMortgage 09/0812011 0_00 2.000,000.00
3134G2QPO 2205 Federal Home loanMortgage 1.000 07J2712011 2.000.000_00 0.00
3134G2RKO 2206 Federal HomeloanMortgage 1.000 07/2812011 2,000,000.00 0.00
3134G2NR9 2207 Federal Home loanMortgage 0.750 07/1312011 2.000,000.00 0.00
3134G2NR9 2207 Federal Home loanMongage 09/0612011 0.00 2,000,000.00
Portfolio OTAY
AP
Run Dale.1012412011 -0911 DA (PRF_OA)7.2.0
ReportVer.7 3.2
OlAY
Activity Report Page 3
July 1,2011 -September 3D,2011
Par Value ParValue
Percent Beginning Current Transaction Purchases or Redemptionsor Ending
CUSIP Investment #Issuer ofPortfolio Balance Rate Date Deposits Withdrawals Balance
Issuer:Federal Home Loan Mortgage
Federal Agency Issues-Callable
3134G2VDl 2211 Federal Home Loan Mortgage 0.750 08124/2011 2.000,000.00 0.00
3134G2B92 2217 Federal Home Loan Mortgage 0.500 09/1312011 2.000,000.00 0.00
Subtotal and Balance 23,737,000.00 12,000,000.00 20,000,000.00 15,737,000.00
IssuerSubtotal 16.249%23,737,000.00 12,000,000.00 20,000,000,00 15,737,000.00
Issuer:Federal National Mortage Assoc
Federal Agency Issues-Callable
3136FPSK4 2172 Federal National MortageAssoc 0.675 07129/2011 0.00 2,000,000.00
3136FP5Xl 2182 Federal National MortageAssoc 0.860 07/28/2011 0.00 2,000,000.00
3135GOCWl 2214 Federal National MortageAssoc 0.500 09/06/2011 2,000,000.00 0.00
3135GODB6 2215 Federal National MortageAssoc 0.600 09/12/2011 2,000,000.00 0.00
3135GODK6 2218 Federal National MortageAssoc 0.600 09/27/2011 2,000,000.00 0.00
3135GOONO 2220 Federal National MortageAssoc 0.500 09/26/2011 3,000.000.00 0.00
Subtotal and Balance 5,635,000.00 9,000,000.00 4,000,000.00 10,635,000.00
IssuerSubtotal 10.981%5,635,000.00 9,000,000.00 4,000,000.00 10,635,000.00
Issuer:San Diego County
San Diego County Pool
so COUNTY POOL 9007 San Diego County 0.600 5,016,961.95 0.00
Subtotal and Balance 17,013,171.57 5,016,961.95 0.00 22,030,133.52
Issuer Subtotal 22.747%17,013,171.57 5,016,961.95 0.00 22,030,133.52
Total 100.000%103,023,684.00 103,271,649.22 109,447,372.40 96,847,960.82
RunDale 1012412011 -0911
Portfolio OTAY
AP
DA {PRF_OAl 7.2.0
Report lief.7.3.2
DTAY
GASS 31 Compliance Detail
Sorted by Fund -Fund
July 1,2011 -September 30,2011
Adjustment in Value
Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending
CUSIP Investment#Fund Class Date Invested Value ofPrincipal to Principal of Principal Adjustment MarketValue Invested Value
Fund:Treasury Fund
LAIF 9001 99 FairVatue 31,819,068.97 0.00 17,633,803.66 30,200,000.00 0.00 -14,603.93 19,238.268.70
UNION MONEY 9002 99 Amortized 10,056.49 0.00 39,770,326.00 36,761.994.55 0.00 0.00 3,018,387.94
PEITYCA5H 9003 99 Amortized 2.950.00 0.00 0.00 0.00 0.00 0.00 2,950.00
UNION OPERATING 9004 99 Amortized 886.641.70 0.00 2,375.785.65 2.271,734.75 0.00 0.00 990.692.60
PAYROll 9005 99 Amortized 23.784.71 0.00 350,000.00 349.684.39 0.00 0.00 24,100.32
SO COUNTY POOL 9007 99 Fair Value 16.992,478.65 0.00 5,016,961.95 0.00 0.00 -106,440.09 21,903,000.52
2050003183-4 2121 99 Amortized 0112212012 79,108.00 0.00 0.00 0.00 0.00 0.00 79,108.00
RESERVE-10 COPS 9010 99 Amortized 8,383.59 0.00 5,793.75 13,489.32 0.00 0.00 688.02
RESERVE-l0 BASS 9011 99 Amortized 20,642.94 0.00 15.228.09 35,452.89 0.00 0.00 418.14
LAIF BASS 2010 9012 99 Fair Value 4,057,550.77 0.00 4,807.91 0.00 0.00 1,107.24 4,063,465.92
UBNA-2010 BOND 9013 99 Amortized 51.89 0.00 48,942.21 0.00 0.00 0.00 48,994.10
3137EACK3 2146 99 Fair Value 07/27/2012 2,015,920.00 0.00 0.00 0.00 0.00 -2,780.00 2.013,140.00
3137EACK3A 2148 99 Fair Value 07/27/2012 1,038,198.80 0.00 0.00 0.00 0.00 -1,431.70 1,036,767.10
3137EACK38 2149 99 Fair Value 07/27/2012 2,728,547.72 0.00 0.00 0.00 0.00 -3,762.73 2,724,784.99
3134G1MD3 2153 99 Fair Value 01122/2013 2.000,960.00 0.00 0.00 2.000,000.00 0.00 -960.00 0.00
3134G1PK4 2158 99 Fair Value 02/11/2013 2,001,820.00 0.00 0.00 2,000,000.00 0.00 -1,820.00 0.00
3136FPQG5 2171 99 Fair Value 07/26/2013 636,270.00 0.00 0.00 0.00 0.00 -1,066.80 635,203.20
3136FPSK4 2172 99 Fair Value 04/29/2013 2,000,780.00 0.00 0.00 2,000,000.00 0.00 -780.00 0.00
313371MR4 2174 99 Fair Value 05/22/2013 1,998,980.00 0.00 0.00 2,000,000.00 0.00 1,020,00 0.00
3136FP5X1 2182 99 Fair Value 01/28/2013 2,000,760.00 0.00 0.00 2,000,000.00 0.00 -760.00 0.00
3134G1Y40 2183 99 Fair Value 08/15/2013 2,009,100.00 0.00 0.00 0.00 0.00 -3,680.00 2,005,420.00
3134G13K8 2185 99 Fair Value 05/24/2013 2,002,200.00 0.00 0.00 2.000,000.00 0.00 -2,200.00 0.00
3134G12U7 2186 99 Fair Value 11123/2012 2,001,040.00 0.00 0,00 2,000,000.00 0.00 -1,040.00 0.00
3134G14B7 2187 99 FairVatue 08/23/2013 2,002,820.00 0.00 0.00 2.000,000.00 0.00 -2,820.00 0.00
3134G15C4 2188 99 Fair Value 06/07/2013 2,003,600.00 0.00 0.00 2,000,000.00 0.00 -3,600.00 0,00
UBNA-FLEX ACCT 9014 99 Amortized 11,742.76 0.00 50,000.00 40,016.50 0.00 0.00 21,726.26
3134G17L2 2190 99 Fair Value 09/23/2013 2,004,420.00 0.00 0.00 2,000,000.00 0.00 -4,420.00 0.00
3136FRFMO 2192 99 Fair Value 04/27/2016 1,006,570.00 0.00 0.00 0.00 0.00 -5,190.00 1,001,380.00
313373CWO 2193 99 Fair Value 10/25/2013 2,001.520.00 0,00 0.00 2,000,000.00 0.00 -1,520.00 0.00
313373K27 2194 99 Fair Value 0811212013 2,001,920.00 0.00 0.00 2,000,000.00 0.00 -1,920.00 0.00
313373MC3 2195 99 FairVaJue 11/1212013 1,776,810.50 0.00 0.00 1,775,000.00 0.00 -1,810.50 0.00
313373QJ4 2196 99 Fair Value 11/25/2013 2,006.360.00 0.00 0,00 0.00 0.00 -4,140.00 2,002.220.00
Portfolio OTAY
AP
Run Dale.1012412011 -09 12 GO (PRF_GO)7.1.1
ReponVer.7.3.2
OlAV
GASS 31 Compliance Detail Page 2
Sorted by Fund·Fund
Adjustment in Value
Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending
CUSJP Investment#Fund Class Date Invested Value of Principal to Principal ofPrincipal Adjustment MarketValue Invested Value
Fund:Treasury Fund
313373UD2 2197 99 FairValue 12109/2013 2,005,440.00 0.00 0.00 0.00 0.00 -3.000.00 2,002,440.00
313373V25 2198 99 FairValue 09/0612013 2,002.080.00 0.00 0.00 2,000,000.00 0.00 -2.080.00 0.00
313373WVa 2199 99 Fair Value 12106/2013 2,000,220.00 0.00 0.00 2,000,000.00 0.00 -220.00 0.00
3134G2MC3 2200 99 FairValue 09/27/2013 1,996.780.00 0.00 0.00 2,000,000.00 0.00 3,220.00 0.00
313374ELO 2201 99 FairValue 12/3012013 1,993.300_00 0.00 0.00 0.00 0.00 8,280.00 2.001,580.00
313374G46 2203 99 FairValue 0110812014 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00
3134G2PE6 2204 99 FairVarue 01/0812014 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00
3134G2QPO 2205 99 FairValue 0112712014 0.00 2,000,000.00 0.00 0.00 0.00 3,360.00 2,003,360.00
3134G2RKO 2206 99 FairValue 0112812014 0.00 2,000,000.00 0.00 0.00 0.00 920.00 2,000.920.00
313374T83 2208 99 Fair Value 0112812014 0.00 2,000,000.00 0.00 0.00 0.00 540.00 2,000,540.00
313374lWJ 2209 99 Fair Value 08/0812013 0.00 2,000,000.00 0.00 0.00 0.00 340.00 2,000,340.00
3133755W3 2210 99 FairValue 08/2312013 0.00 2,000,000.00 0.00 0.00 0.00 780.00 2,000.780.00
3134G2VD1 2211 99 FairValue 02/2412014 0.00 2.000,000.00 0.00 0.00 0.00 2,940.00 2.002,940.00
313375E29 2212 99 FairValue 03107/2014 0.00 2.000,000.00 0.00 0_00 0.00 -7,120.00 1,992,880.00
313375H59 2213 99 Fair Value 09/16/2013 0.00 2.000,000.00 0.00 0.00 0.00 -4,080.00 1,995,920.00
3135GOCWl 2214 99 Fair Value 09/06/2013 0.00 2,000,000.00 0.00 0.00 0.00 -3,780.00 1.996,220.00
3135GODB6 2215 99 Fair Value 0911212013 0.00 2,000,000.00 0.00 0.00 0.00 -5,440.00 1,994,560.00
313375Hl3 2216 99 Fair Value 0311912014 0.00 2,000,000.00 0.00 0.00 0.00 -5,040.00 1.994,960.00
3134G2892 2217 99 Fair Value 03/1312013 0.00 2,000,000.00 0.00 0.00 0.00 1,140.00 2.001,140.00
3135GODK6 2218 99 Fair Value 09/27f2013 0.00 2,000,000.00 0.00 0.00 0.00 ·3,500.00 1,996,500.00
31331KlFO 2219 99 Fair Value 12/2312013 0.00 2,999,250.00 0.00 0.00 0.00 -7,590.00 2.991,660.00
3135GODNO 2220 99 Fair Value 09/26f2013 0.00 3,000,000.00 0.00 000 0.00 -11,670.00 2,988,330.00
3133747H7 2202 99 Fair Value 12/27f2013 2,000,000.00 0.00 0.00 2.000,000.00 0,00 0.00 0.00
3134G2NR9 2207 99 Fair Value 07/05f2013 0.00 2,000,000.00 0.00 2,000,000.00 0,00 0.00 0.00
Subtotal 103,148,877.49 37,999,250.00 65,271,649.22 109,447,372.40 0.00 ·196,618.51 96,775,785.81
Total 103,148,877.49 37,999,250.00 65,271,649.22 109,447,372.40 0.00 ·196,618.51 96,775,785.81
Portfolio OTAY
AP
Run Dale.1012412011 -09.12 GO (PRF_GO)7 1.1
Report Ver.7 3 2
OTAY
Duration Report
Sorted by Investment Type -Investment Type
Through 09/30/2011
Investment Book Par Market Current VTM Current MaturityJ Modified
Security 10 Investment #Fund Issuer Class Value Value Value Rate 360 Yield Call Date Duration
3137EACK3B 2149 99 Federal Home Loan Mortgage Fair 2.707,000.00 2,707,000.00 2,724,784.99 1.125000 1.109 0.324 0712712012 0.816
3134GZQPO 2205 99 Federal Home loan Mortgage Fair 2,000,000.00 2,000,000.00 2,003,360.00 1.000000 0.986 0.927 0112712014 2.266
3134G2RKO 2206 99 Federal Home Loan Mortgage Fair 2,000,000.00 2,000,000.00 2,000,920.00 1.00ססOO 0.986 0.980 0112812014 2.289
3137EACK3A 2148 99 Federal Home loan Mortgage Fair 1,030,000.00 1,030,000,00 1,036,767.10 1.125000 1.109 0.324 0712712012 0.816
3134G2VO,22"99 Federal Home loan Mortgage Fair 2,000,000.00 2.000,000.00 2,002,940.00 .7500000 0.740 0.688 0212412014 2.370
3134G2892 2217 99 Federal Home loan Mortgage Fair 2,000,000.00 2,000,000.00 2,001,140.00 .5000000 0.493 0.461 0311312013 1.443
3134G1Y40 2183 99 Federal Home loan Mortgage Fair 2,000,000.00 2,000,000.00 2,005,420.00 1.100000 1.085 0.954 0811512013 1.846
3137EACK3 2146 99 Federal Home loan Mortgage Fair 1,999,635.22 2,000,000.00 2,013,140.00 1.147196 1.154 0.346 0712712012 0.818
3136FPQG5 2171 99 Federal NationalMortageAssoc Fair 635,000.00 635,000.00 635,203.20 .8500830 0.837 0.832 0712612013 1.799
3135GOCW1 2214 99 Federal NationalMortageAssoc Fair 2,000,000.00 2,000,000.00 1,996,220.00 .5000000 0.493 0.599 09/06/2013 1.917
3135GODNO 2220 99 Federal National MortageAssoc Fair 3,000,000.00 3,000,000.00 2.988,330.00 .5000000 0.493 0.698 09126/2013 1.971
3135GODK6 2218 99 Federal National MortageAssoc Fair 2,000,000.00 2,000,000.00 1,996,500.00 .6000000 0.592 0.689 09127/2013 1.972
3135GODB6 2215 99 Federal National MortageAssoc Fair 2,000,000.00 2,000,000.00 1,994,560.00 .6000000 0.592 0.741 09112/2013 1.931
3136FRFMO 2192 99 Federal National MortageAssoc Fair 1,000,000.00 1,000,000.00 1,001,380.00 2.000000 1.973 1.968 04/27/2016 4.296
313373UD2 2197 99 Federal Home loan Bank Fair 2,000,000.00 2.000,000.00 2,002,440.00 1.050000 1.036 0.994 12109/2013 2.151
313375E29 2212 99 Federal Home loan Bank Fair 2,000,000.00 2,000,000.00 1,992,880.00 .6250000 0.616 0.773 03/07/2014 2.408
313374T83 2208 99 Federal Home loan Bank Fair 2,000,000.00 2,000,000.00 2,000,540.00 .9000000 0.888 0.888 01/28/2014 2,292
313373QJ4 2196 99 Federal Home loan Bank Fair 2,000,000.00 2,000,000.00 2,002,220.00 1.125000 1.110 1.073 11/25/2013 2.111
313374ZW3 2209 99 Federal Home loan Bank Fair 2,000.000.00 2,000,000.00 2,000,340.00 .6500000 0.641 0.641 08/08/2013 1.837
313375HZ3 2216 99 Federal Home loan Bank Fair 2,000,000.00 2,000.000.00 1,994.960.00 .6500000 0.641 0.753 03/19/2014 2.441
313374ElO 2201 99 Federal Home loan Bank Fair 2,000,000.00 2,000,000.00 2,001,580.00 .8750000 0.863 0.840 12130/2013 2.216
3133755W3 2210 99 Federal Home Loan Bank Fair 2,000,000.00 2,000.000.00 2,000,780.00 .7000000 0.693 0.679 0812312013 1.878
313375H59 2213 99 Federal Home loan Bank Fair 2,000.000.00 2,000,000.00 1,995.920.00 .5500000 0.542 0.655 09/1612013 1.944
31331KZFO 2219 99 Federal FarmCredit Bank Fair 2,999,257.41 3,000,000.00 2.991,660.00 .4812160 0.486 0.607 12123f2013 2.211
Run Date:100412011 ·09 26 Page 1
Portfolio OTAY
AP
DU (PRF_DU)7.1.1
Repon Ver.7.3.2
OTAY
Duration Report
Sorted by Investment Type -Investment Type
Through 09/30/2011
Investment Book Pac Market Current YTM Current Maturityl Modified
Security ID Investment #Fund Issuer Class Value Value Value Rate 360 Yield Call Date Duration
2050003183-4 2121 99 California Bank &Trust Amort 79,108.00 79,108.00 79,108.00 1.380000 1.380 1.380 01/22f2012 0.308 t
LAIF COPSO?9009 99 STATE OF CALIFORNIA Fair 0.00 0.00 0.00 '.530000 1.509 1.530 0.000
LAIF BASS 2010 9012 99 STATE OF CALIFORNIA Fair 4,055,972.14 4,055,972.14 4,063,465.92 .3780000 0.373 0.378 0.000
LAIF 9001 99 STATE OF CALIFORNIA Fair 19,202,789.78 19,202,789.78 19,238,268.70 .3780000 0.373 0.378 0.000
SO COUNTY 9007 99 San DiegoCounty Fair 22,030,133.52 22,030,133.52 21,903,000.52 .6000000 0.592 0.600 0.000
Report Total 92,738,896.07 92,740,003.44 92,667,828.43 0.616 1.007t
t =Duration can not be calculated on these investments due to incomplete Market price data.
Run Date:10f2412011 -09:26 Page 2
Portfolio OTAY
AP
DU{PRF_OU)7.11
Report Ver,7.3,2
STAFF REPORT
November 2,2011
DIV.NO.
MEETING DATE:
W.O.lG.F.NO:
TYPE MEETING:
SUBMITIED BY:
Regular Board
Sean Prendergast,Financec};
Supervisor,Payroll &AP 1/
APPROVED BY:Joseph Beachem,Chief Financial Officer
(Ch;e~
APPROVED BY:German Alvarez,.l\ssistant General Manager
(Assl.GM):
SUBJECT:Accounts Payable Demand List
PURPOSE:
Atcached is tr-e list of demands for che Board's information.
FISCAL IMPACT:
SUMMARY
CHECKS (2030558-2030928)
VOID CHECK (1)
TOTAL CHECKS
WIRE TO:
DELTA HEALTH SYSTEMS -DENTAL &COBRA CLAIMS (MONTHLY)
JP MORGAN -RE~ARKETING FEE (QUARTERLY)
SAN DIEGO COUNTY WATER WATER DELIVERIES (MONTHLY)
SPECIAL DIST R:SK MGMT AUTE -INSURANCE PREMIUM (~ON~HLY)
STATE BOARD OF EQUALIZATION -SALES USE TAX (QUARTERLY)
UNION BANK -CERT OF PARTICIPATION 2006 (QUARTERLY)
UNION BANK -CERT OF PARTICIPATION 2006 (MONTHLY)
UNION BANK -PAYROLL TAXES (MONTHLY)
TOTAL CASH DISBURSEMENTS
NET DEMANDS
$2,871,940.02
$(2,000.00)
$2,869,940.02
$15,591.23
$2,533.81
$3,775,614.60
$218,892.25
$1,704.00
$30,796.31
$L 513.21
$277,732.73
$7,194,318.16
RECOMMENDED ACTION:
That the Board receive t~e attached list of demands.
Jb/At achmenc
OTAY WATER DISTRICT
CHECK REGISTER
FORCHECKS 2030558 THROUGH 2030928
RUN DATES 101512011 TO 1012612011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030661 10/12/11 10720 1060 TECHNOLOGY INC 2170 09/07/11 TOUGHBOOK BATTERIES 1,724.00 1,724.00
2030735 10/19/11 10720 1060 TECHNOLOGY INC 2202 09/19/11 APC BACK-UPS 2,068,80 2,068.80
2030851 10/26/11 10720 1060 TECHNOLOGY INC 2213 10/05/11 SCANNERS 3,929.64 3,929.64
2030827 10/26/11 13400 2300 BOSWELLLLC Ref002417572 10/25/11 UB Refund Cst#0000093618 247.76 247.76
2030558 10/05/11 01910 ABCANA INDUSTRIES 889526 09/15/11 SODIUM HYPOCHLORITE 3,008.27
888837 09/06/11 SODIUM HYPOCHLORITE 2,320.95
888836 09/06/11 SODIUM HYPOCHLORITE 988.93
888838 09/06f11 SODIUM HYPOCHLORITE 970,99
889283 09/12111 SODIUM HYPOCHLORITE 805,05
889527 09/15/11 SODIUM HYPOCHLORITE 614.44
889284 09/12/11 SODIUM HYPOCHLORITE 519.13
889528 09/15/11 SODIUM HYPOCHLORITE 355.43 9,583.19
2030662 10/12/11 01910 ABCANA INDUSTRIES 889842 09/20/11 SODIUM HYPOCHLORITE 2,752.63
889979 09/22/11 SODIUM HYPOCHLORITE 1,841.07
889782 09/19/11 SODIUM HYPOCHLORITE 1,230.00
889781 09/19/11 SODIUM HYPOCHLORITE 911.57
889783 09/19/11 SODIUM HYPOCHLORITE 892.50
889981 09/22/11 SODIUM HYPOCHLORITE 784.87
889980 09/22/11 SODIUM HYPOCHLORITE 643.58 9,056.22
2030736 10/19/11 01910 ABCANA INDUSTRIES 890342 09/27/11 SODIUM HYPOCHLORITE 2,963.42
890453 09/29/11 SODIUM HYPOCHLORITE 1,441.91
890343 09/27/11 SODIUM HYPOCHLORITE 1,013,60
890203 09/26/11 SODIUM HYPOCHLORITE 782.63
890204 09/26/11 SODIUM HYPOCHLORITE 761.31
890454 09/29/11 SODIUM HYPOCHLORITE 649.20 7,612.07
2030852 10/26/11 01910 ABCANA INDUSTRIES 890894 10/06/11 SODIUM HYPOCHLORITE 1,296.15
890724 10/03/11 SODIUM HYPOCHLORITE 1,074.14
890725 10/03/11 SODIUM HYPOCHLORITE 987.80
890754 10/04/11 SODIUM HYPOCHLORITE 953.05
890895 10/06/11 SODIUM HYPOCHLORITE 719.83
890755 10/04/11 SODIUM HYPOCHLORITE 235.46 5,266.43
2030663 10/12/11 08488 ABLEFORCE INC 2908 09/20/11 TEMPORARY LABOR (916/11-9/18/11)6,885.00 6,885.00
2030853 10/26/11 08488 ABLEFORCE INC 2935 10/04/11 PROGRAMMING SERVICES (9/19/11-9/30/11)6,970.00 6,970.00
2030737 10/19/11 03317 ADVANCED CALL PROCESSING INC RK0720110WDFP 07/20/11 PBX UPGRADE 38,592.66
20112214 05/19/11 PBX UPGRADE 1,689.16
CR20112275 06/27/11 PBX UPGRADE 1,464.38
RK0720110WDFR 07/20/11 PBX UPGRADE 1,345.80
20112228 05/27/11 PBX UPGRADE 431.65
20112355 09/15/11 PBX UPGRADE 390.00 43,913.65
Page 1 of19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/5/2011 TO 10/26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030559 10/05/11 11462 AEGIS ENGINEERING MGMT INC 1109 09/13/11 DEVELOPER PLANCHECKS (8/6/11-9/9/11)10,507.98
1022 09/13/11 PLAN CHECKING (8/6/11~9/9/11)7,380.12 17,888.10
2030560 10/05/11 07732 AIRGAS SPECIALTV PRODUCTS INC 131212804 09/13/11 AQUA AMMONIA 2,600.64
131212803 09/13/11 AQUA AMMONIA 1,776.88
131212805 09/13/11 AQUA AMMONIA 975.52 5,353.04
2030738 10/19/11 00132 AIRGAS WEST INC 103897886 09/30/11 BREATHING AIR BOTTLES 31.35 31.35
2030854 10/26/11 00132 AIRGAS WEST INC 103499324 09/30/11 BREATHING AIR BOTTLES 174.86 174.86
2030623 10/12111 13372 ALBERTO CHAVARRIA Ref002417230 10/11/11 US Refund Cst #0000175424 41.15 41.15
2030828 10/26/11 13408 ALEGRIA REAL ESTATE I LLC Ref002417581 10/25/11 UB Refund Cst #0000177436 94.62 94.62
2030829 10/26/11 13411 ALEGRIA REAL ESTATE I LLC Ref002417584 10/25/11 US Refund Cst #0000182446 214.16 214.16
2030624 10/12/11 13377 ALEXANDRA VINSON Ref002417235 10/11/11 UB Refund Cst #0000176906 94.88 94.88
2030739 10/19/11 02362 ALLIED WASTE SERVICES #509 0509004525678 09/25/11 TRASH SERVICES (OCT 2011)1,092.40
0509004526917 09f25/11 ASBESTOS CONTAINER (SEPT 2011)233.51
0509004527554 09/25/11 TRASH SERVICES TP (OCT2011)169.06 1,494.97
2030561 10/05/11 12911 ALTA LAND SURVEYING INC 11218404 09/10/11 SURVEY SERVICES 865.00
11220003 09/10/11 SURVEY SERVICES 3,080.00
11215801 09/09/11 SURVEY SERVICES 2,350.00
11215901 09/09/11 SURVEY SERVICES 1,810.00
11217601 09/09/11 SURVEY SERVICES 1,380.00
11216001 09/09/11 SURVEY SERVICES 1,285.00
11219304 09/14/11 SURVEY SERVICES 850.00 11,620.00
2030664 10/12/11 12911 ALTA LAND SURVEYING INC 11219106 09/19/11 SURVEY SERVICES (PERIOD ENDING 9119111)800.00 800.00
2030740 10/19/11 12911 ALTA LAND SURVEYING INC 11220007 10/04/11 SURVEY SERVICES (9/27/11-9/29/11)1,050.00 1,050.00
2030830 10/26/11 13409 ALTISOURCE SOLUTIONS Ref002417582 10/25/11 UB Refund Cst #0000177491 141.47 141.47
2030562 10/05/11 06166 AMERICAN MESSAGING L1109570LJ 10/01/11 PAGER SERVICES (SEPT 2011)137.63 137.63
2030625 10/12/11 13354 ANA ALAMILLA Ref002417211 10/11/11 US Refund Cst #0000080026 24.77 24.77
2030626 10/12/11 13374 ANA BAUTISTA Ref002417232 10/11/11 US Refund Cst #0000176593 41.37 41.37
2030855 10/26/11 10728 ANDERSON,FRANK 17891011 10/26/11 TRAVEL EXPENSES (10/17/11+10/20/11)192.00 192.00
2030563 10/05/11 00002 ANSWER INC 5603 09/22/11 ANSWERING SERVICES 1,000.00 1,000.00
2030856 10/26/11 00002 ANSWER INC 5701 10/22/11 ANSWERING SERVICES 1,000.00 1,000.00
Page2of19
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 101512011 TO 10/2612011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030564 10/05/11 08967 ANTHEM BLUE CROSS EAP 40997 09/23/11 EMPLOYEE ASSISTANCE (OCT 2011)336.73 336.73
2030665 10/12/11 12329 API FUND FOR PAYROLL EDUCATION 116076 10/11/11 REGISTRATION FEE 860.00 860.00
2030565 10/05/11 03492 AQUA-METRIC SALES COMPANY 0039573fN 09/12/11 SENSUS OMNI METERS 23,530.22 23,530.22
2030686 10/12f11 03492 AQUA-METRIC SALES COMPANY 00397491N 09/22/11 SENSUS OMNI METERS 31,998.68 31,998.68
2030627 10/12/11 13360 ARMANDO BRAND Ref002417217 10/11/11 US Refund Cst #0000162546 60.92 60.92
2030741 10/19/11 03340 ASSOCIATION OF PUBLIC 6191 10104/11 MEMBERSHIP RENEWAL (11/1/11-10/31/12)174.00 174.00
2030566 10/05/11 05758 AT&T 082164572809251109/25/11 INTERNET BANDWIDTH (9/25/11~10/24/11)2,253.68 2,253.68
2030567 10/05/11 05758 AT&T 61942256050911 09/20f11 PHONE SERVICE (9/20/11-10/19/11)41.39 41.39
2030667 10/12111 05758 AT&T 61969851400911 09/24/11 PHONE SERVICES (THRU 9/24111)31.56 31.56
2030742 10/19/11 07785 AT&T 000002701673 10102111 PHONE SERVICES (9/2/11-1011/11)5,666.38
00000 10/14f11 PHONE SERVICES (9/2/11-1011/11)15.22 5,681.60
2030857 10/26/11 05758 AT&T 33784130451011 10107/11 PHONE SERVICE (10/7l11-11/6/11)31.38 31.38
2030668 10/12/11 08330 AT&T INTERNET SERVICES 8547826250911 09/22111 INTERNET BANDWIDTH (9/21/11-10/20/11)1,560.00 1,560.00
2030568 10/05/11 12810 ATKINS 1121065 09/09/11 WATER MANAGEMENT (JUNE/JULY2011)1,000.00 1,000.00
2030628 10/12/11 13383 ATLAS DEVELOPMENT Ref002417241 10/11/11 UB Refund Cst #0000182780 1,692.10 1,692.10
2030569 10/05/11 08024 BACKGROUND PROFILES INC 3332 09/30/11 BACKGROUND CHECK 38.00 38.00
2030570 10/05/11 00145 BARRETT ENGINEERED PUMPS 077576 09/13/11 PRICE PUMP 1,136.76 1,136.76
2030743 10/19/11 06970 BATTIKHA,SAM 003265 10/11111 SAFETY BOOTS 150.00 150.00
2030669 10/12/11 06834 BAUDVILLE INC 2289147 07/25/11 VISITOR BADGES 79.49 79.49
2030744 10/19/11 06834 BAUDVILlE INC 2306398 09/08/11 VISITOR BADGES 357.29 357.29
2030670 10/12/11 12577 BLASTCO INC 46038R 09/21/11 RESERVOIR COATING 103,821.30 103,821.30
2030831 10/26/11 13414 BOBBY ENSLIN Ref002417587 10/25/11 UB Refund Cst #0000183228 12.78 12.78
2030671 10/12/11 08156 BROWNSTEIN HYATT FARBER 442595 08/31/11 LEGISLATIVE ADVOCACY (JULY 2011)7,500.00
442982 09/27/11 LEGISLATIVE ADVOCACY (AUG 2011)1,755.00 9,255.00
2030745 10/19/11 03450 BUELNA,ARMANDO 16041011 10/15/11 BOTTLES OF WATER 330.00 330.00
Page 3 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/5/2011 TO 10/26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030571 10/05/11 03721 BULLET LOGISTICS INC 09151103350 09/15/11 EXPRESS COURIER SERVICE (9/9111)26.95 26.95
2030572 10/05/11 00223 C W MCGRATH INC 40139 09/12/11 CRUSHED ROCK 554.29
40160 09/14/11 CRUSHED ROCK 102.13 656.42
2030746 10/19/11 00223 C W MCGRATH INC 40273 09/29/11 CRUSHED ROCK 447.63
40237 09/23/11 CRUSHED ROCK 156.13
40255 09/27/11 CRUSHED ROCK 107.41 711.17
2030747 10/19/11 11044 CALIFORNIA BANK &TRUST 01 09/26/11 RETENTION /NEWEST CONSTRUCTION (9/30/11)15,074.80 15,074.80
2030573 10/05/11 01004 CALOLYMPIC SAFETY 092308 09/13/11 LEL SENSOR 228.84 228.84
2030672 10/12/11 01004 CALOLYMPIC SAFETY 0916081 09/16/11 GASTECH SENSORS 362.22 362.22
2030748 10/19/11 01004 CALOLYMPIC SAFETY 091608 08/30/11 GASTECH SENSORS 220.89 220.89
2030858 10/26/11 01004 CALOLYMPIC SAFETY 093103 10/05/11 CALIBRATION STICKERS 76.36 76.36
2030629 10/12111 13367 CARLOS PENA VALENZUELA Ref002417224 10/11/11 UB Refund Cst #0000172238 42.42 42.42
2030749 10/19/11 02758 CARMEL BUSINESS SYSTEMS INC 7392 10/01111 SERVICES FOR 9129/11 208.87 208.87
2030859 10/26/11 02758 CARMEL BUSINESS SYSTEMS INC 7393 10/01111 RECORD SERVICES (9/17/11-9/30/11)844.03
7391 10/01/11 RECORDS MGMT SERVICES (9/23/11-9/28/11)259.75
7390 10/01/11 RECORDS SUPPORT (9/16/11)111.00 1,214.78
2030750 10/19/11 13389 CAYETANO,TITA 003261 10/12/11 COMPUTER LOAN 1,184.61 1,184.61
2030751 10/19/11 09801 CENTERBEAM INC 15449 09/29/11 TEMPORARY LABOR (8/30/11-9/23/11)12,610.00 12,610.00
2030860 10/26/11 09801 CENTERBEAM INC 138415 09/01/11 TEMPORARY LABOR (SEPT 2011)1,697.00 1,697.00
2030630 10/12/11 13352 CHARITYARELLANO Ref002417209 10/11/11 UB Refund Cst #0000066498 49.32 49.32
2030752 10/19/11 02026 CHULA VISTA ELEM SCHOOL DIST AR039627 10/12/11 GARDEN TOURS (AUG 2011)1,080.00
AR039635 10/12/11 GARDEN TOURS (SEPT 2011)540.00 1,620.00
2030574 10/05/11 00446 CITY OF CHULA VISTA 003238 09122/11 SPONSORSHIP 1,500.00 1,500.00
2030673 10/12/11 08895 CITY OF LA MESA 14070 09/20/11 FINGERPRINTING SERVICES (1/1/11-9/7/11)180.00 180.00
2030832 10/26/11 13394 CLARICE GALLARTE Ref002417566 10/25/11 UB Refund Cst #0000019710 66.58 66.58
2030861 10/26/11 04119 CLARKSON LAB &SUPPLY INC 57999 09/30/11 BACTERIOLOGICAL SERVICES (9/30/11)755.91
58002 09/30/11 BACTERIOLOGICAL SERVICES (9/30/11)578.17
58003 09/30/11 BACTERIOLOGICAL SERVICES (9/30/11)578.17
57680 09/30/11 BACTERIOLOGICAL SERVICES (9/30/11)524.91
58001 09/30/11 BACTERIOLOGICAL SERVICES (9/30/11)392.00
Page 4 of19
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030926
RUN DATES 10{5/2011 TO 10126/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
58000 09/30/11 BACTERIOLOGICAL SERVICES (9/30/11)362.00
58004 09/30/11 BACTERIOLOGICAL SERVICES (9/30/11)337.00 3,528.16
2030575 10/05/11 11520 CLINICAL LABORATORY OF 916799 09/13/11 OUTSIDE LAB SERVICES (AUG 2011)614.00 614.00
2030753 10/19/11 08160 COMPLETE OFFICE 13227690 09/23/11 TONER 2,041.68 2,041.68
2030862 10/26/11 08160 COMPLETE OFFICE 13258310 10/05/11 COPY PAPER 834.79
13264780 10/06/11 TONERS 739.10 1,573.89
2030576 10/05/11 03288 COMPUTER PROTECTION 15974CPT 09/13/11 UPS BATTERIES 920.00 920.00
2030674 10/12/11 03288 COMPUTER PROTECTION 15939PMA 08/17/11 UPS MAINTENANCE (ANNUAL)3,933.00 3,933.00
2030754 10/19/11 11510 CONFERENCECALL.COM 2670709286 09/30f11 CONFERENCE CALLING SERVICE (SEPT 2011)155.35 155.35
2030675 10/12/11 04398 CONSTRUCTION MANAGEMENT 003246 10104/11 REGISTRATION FEE 55.00 55.00
2030863 10/26/11 03706 CONSUMERS PIPE &SUPPLY S1176908001 10/06/11 AIR-VAC UPDATE 1,356.57 1,356.57
2030755 10/19/11 12282 CORELOGIC INFORMATION 50002985 08/15/11 DATASERVICES 6,000.00
50002984 08/15fl1 DATASERVICES 5,400.00 11,400.00
2030756 10/19/11 12334 CORODATA MEDIA STORAGE INC 081246139 09/30/11 BACKUPTAPE STORAGE 279.18 279.18
2030833 10/26/11 13393 CORY SCHWEER Ref002417565 10/25/11 UB Refund Cst#0000004069 209.55 209.55
2030676 10/12/11 02122 COUNTY OF SAN DIEGO 2011092705774 09/27/11 EMISSION &PERMIT FEES 2,530.00
2011092705714 09/27/11 EMISSION &PERMIT FEES 534.00
2011100700233 10/07/11 EMISSION &PERMIT FEES 330.00 3,394.00
2030677 10/12/11 02122 COUNTY OF SAN DIEGO 222224 03/06/11 COUNTY FEE 750.00 750.00
2030757 10/19/11 00184 COUNTY OF SAN DIEGO HK072053640811 08/17111 HAZMAT PERMIT 866.00
HK072053630811 08/17/11 HAZMAT PERMIT 684.00
HK072053650811 08/17/11 HAZMAT PERMIT 460.00 2,010.00
2030758 10/19/11 02122 COUNTY OF SAN DIEGO 81TEID01989 10/11/11 EMISSION FEES (DEC 2009 -DEC 2012)452.00 452,00
2030864 10/26/11 02122 COUNTY OF SAN DIEGO 003278 10/18/11 PERMIT APPLICATION FEE 2,961.00 2,961,00
2030678 10/12/11 00099 COUNTY OF SAN DIEGO-DPW 146314 08/31/11 EXCAVATION PERMITS 3,332.96 3,332,96
2030865 10/26/11 11286 CPM PARTNERS INC 11081 09/30/11 SCHEDULING SERVICES(9/1111-9/30/11)8,025.00 8,025.00
2030834 10/26/11 13412 DAN PERALTA Ref002417585 10/25/11 UB Refund Cst #0000182908 32.72 32.72
2030631 10/12/11 13370 DANA MOYA Ref002417227 10/11111 UB Refund Cst #0000174043 70.05 70.05
Page 5 of19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN OATES 10/5/2011 TO 10/26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030835 10/26/11 13403 DAWNCRIM Ref002417575 10/25/11 UB Refund Cst #0000133933 51.16 51.16
2030632 10/12/11 13382 DELA INC Ref002417240 10/11/11 US Refund Cst #0000182679 281.23 281.23
2030866 10/26/11 02603 DELL MARKETING LP XFJ834NJ3 10/03/11 MONITORS 351.17 351,17
2030759 10/19/11 07680 DELTA HEALTH SYSTEMS P111003 10/04/11 HEALTH ADMINISTRATION (SEPT 2011)1,605.25 1,605.25
2030679 10/12/11 03341 DEPARTMENT OF CONSUMER AFFAIRS 444691011 10/06/11 LICENSE RENEWAL 120.00 120.00
2030760 10/19/11 03744 DEPARTMENT OF JUSTICE 873290 10105/11 FINGERPRINTING SERVICES (SEPT2011)51.00 51.00
2030680 10/12/11 00319 DEPARTMENT OF PUBLIC HEALTH 003249 09/28/11 CERTIFICATE RENEWAL 60.00 60.00
2030867 10/26/11 00319 DEPARTMENT OF PUBLIC HEALTH 1160516 09/30/11 WATER SYSTEMS FEES #3710034 8,638.48 8,638.48
2030868 10/26/11 00319 DEPARTMENT OF PUBLIC HEALTH 262811011 10/26/11 CERTIFICATE RENEWAL 105.00 105,00
2030577 10/05/11 01335 DICKSON COMPANY 842308 09/09/11 PRESSURE DATA LOGGER 1,038.00 1,038.00
2030761 10/19/11 03417 DIRECTV 16167321225 10/06/11 SATELLITE TV (10/4/11-11/3/11)18.00 18.00
2030762 10/19/11 02366 DLT SOLUTIONS INC SI167564 09/29/11 AUTOCAD SUPPORT 11,900.64 11,900.64
2030869 10/26/11 01926 EAST COUNTY URGENT CARE 003282 10/24/11 FLU SHOTS 620.00 620.00
2030633 10/12111 13373 ED LANDSBERG Ref002417231 10/11111 UB Refund Cst #0000176061 149.48 149.48
2030763 10/19/11 02447 EDCO DISPOSALCORPORATION 1554580911 09/30/11 RECYCLING SERVICES (SEPT 2011)90.00 90.00
2030764 10/19/11 08023 EMPLOYEE BENEFIT SPECIALISTS 00541371N 09/30/11 EMPLOYEE BENEFITS (SEPT 2011)562.50 562.50
2030578 10/05/11 03765 ENGINEERING PARTNERS INC,THE 1411392 09/12111 DESIGN SERVICES (6/1/11-8/31111)1,000.00 1,000.00
2030765 10/19/11 03765 ENGINEERING PARTNERS INC,THE 1511417 09/28/11 DESIGN SERVICES (8/1111-9/30/11)7,550.00 7,550.00
2030579 10/05/11 03227 ENVIROMATRIXANALYTICAL INC 1090216 09/12/11 LABORATORY SERVICES (8/27/11-9/6/11)770.00 770.00
2030681 10/12/11 03227 ENVIROMATRIXANALYTICAL INC 1090313 09/19/11 LABORATORY SERVICES (917111-9/9/11)290,00 290.00
2030870 10/26/11 03227 ENVIROMATRIXANALYTICAL INC 1100007 10/03/11 LABORATORY SERVICES (9/17/11-9/27/11)650.00 650.00
2030766 10/19/11 03683 F &L INDUSTRIAL SOLUTIONS INC 13802 10/03/11 SOLENOID VALVES 1,833.53
13774 09/27/11 SOLENOID PARTS 1,094.79 2,928.32
2030767 10/19/11 03757 FANDEL ENTERPRISES INC 1465 08/01/11 CONSULTING SERVICES (JULY 2011)7,230.00
1466 09/01/11 CONSULTING SERVICES (AUG 2011)5,010.00
1468 10101/11 CONSULTING SERVICES (SEPT 2011)3,780.00 16,020.00
Page 6 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/5/2011 TO 10126/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030682 10/12/11 13123 FAVELA PRINTING INC 1672 08/07/11 COVERS &BINDING 451.47 451.47
2030580 10/05/11 00645 FEDEX 763918644 09/23/11 MAIL SERVICES «9/14/11)10.68
764647082 09/30/11 MAIL SERVICES (9/22/11)5.05 15.73
2030581 10/05/11 03546 FERGUSON WATERWORKS #1083 0382510 09/12/11 VIC PLUG VALVES 6,000.92
0387254 09/14f11 REMOVAL TOOLS 64.52 6,065.44
2030683 10/12/11 03546 FERGUSON WATERWORKS #1083 0387257 09/20/11 METER HYDRANT PARTS 4,947.34
0388234 09/20/11 INVENTORY 3,478.17
0386143 09/21/11 REPAIR KITS 234.39 8,659.90
2030768 10/19/11 03546 FERGUSON WATERWORKS #1083 0388581 09/23/11 INVENTORY 4,416.46
0388584 09/26/11 METER PARTS 1,765.55
0388583 09/23/11 METER PARTS 169.00
03885831 09/28f11 METER PARTS 66.81 6,417.82
2030582 10/05/11 09146 FIGUEROA,JIANYNE 003242 09/30/11 TUITION 1,379.50 1,379.50
2030871 10/26/11 12187 FIRST AMERICAN DATA TREE LLC 90034091 09/30/11 ONLINE DOCUMENTS (SEPT 2011)99.00 99.00
2030769 10/19/11 05133 FIRST AMERICAN TITLE CO 627412266 09/26/11 PRELIMINARY REPORTS (9/30/11)1,250.00
627412267 09/26/11 PRELIMINARY REPORTS (9/30/11)1,250.00 2,500.00
2030583 10/05/11 04066 FIRST CHOICE SERVICES -SD 142548 09/14/11 COFFEE SUPPLIES 440.94 440.94
2030770 10/19/11 04066 FIRST CHOICE SERVICES -SD 144502 09/28/11 COFFEE SUPPLIES 477.82 477.82
2030872 10/26/11 02591 FITNESS TECH 7495 10/01/11 EQUIPMENT MAINTENANCE (OCT 2011)135.00 135.00
2030684 10/12/11 11962 FLEETWASH INC 3689305 09/16/11 VEHICLE WASH 350.40 350.40
2030771 10/19/11 11962 FLEETWASH INC 3691397 09/23/11 VEHICLE WASH 196.01 196.01
2030685 10f12/11 01612 FRANCHISE TAX BOARD Ben2417177 10/13/11 BI-WEEKLY PAYROLL DEDUCTION 190.00 190.00
2030686 10/12/11 02344 FRANCHISE TAX BOARD Ben2417179 10/13/11 BI-WEEKLY PAYROLL DEDUCTION 466.56 466.56
2030873 10/26/11 01612 FRANCHISE TAX BOARD Ben2417552 10/27/11 BI-WEEKLY PAYROLL DEDUCTiON 190.00 190.00
2030874 10f26/11 02344 FRANCHISE TAX BOARD Ben2417554 10/27/11 BI-WEEKLY PAYROLL DEDUCTION 466.56 466.56
2030772 10/19/11 13388 GILBERTO R CARBAJAL 003267 10f17/11 CUSTOMER REFUND 853.39 853.39
2030875 10/26/11 09571 GOVERNMENTJOBS.COM INC 076606 1Of03/11 NEOGOV LICENSE 3,600.00 3,600.00
2030584 10105/11 00101 GRAINGER INC 9632857687 09f12/11 BATTERIES 137.01 137.01
2030687 10/12/11 00101 GRAINGER INC 9641245965 09/21/11 GAUGES 472.46
Page 7of19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 101512011 TO 10/2612011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
9642849195 09/22/11 MARKING PAINT 212.05
9631023141 09/08/11 FERRULE AND WHEELBARROWTIRE 82.99
9642132295 09/21/11 REPAIR LIGHTING 34,52
9630084276 09/07/11 FERRULE AND WHEELBARROWTIRE 9.25 811.27
2030773 10/19/11 00101 GRAINGER INC 9650200711 10/03/11 EPOXY TAPE 302.56
9645388548 09/26/11 HPS BALLAST 290.25
9647663179 09/28/11 EPOXY TAPE 27.25 620.06
2030688 10/12/11 03289 GRANGER,WILLIAM E 15711011 10/11/11 TRAVEL EXPENSE (10/5/11-10f7111)147.00 147.00
2030585 10/05/11 12907 GREENRIDGE LANDSCAPE INC 8192 08/30/11 LANDSCAPING SERVICES (AUG 2011)8,650.00 8,650.00
2030876 10/26/11 12907 GREENRIDGE LANDSCAPE INC 8230 09/13/11 LANDSCAPING SERVICES (SEPT 2011)8,650.00 8,650.00
2030774 10/19/11 03773 GTC SYSTEMS INC 32334 09/30/11 CITIRX SUPPORT (SEPT 2011)2,154.38 2,154.38
2030689 10/12/11 00174 HACH COMPANY 7412717 09/09/11 AMMONIA TEST 176.50 176.50
2030775 10/19/11 00174 HACH COMPANY 7443164 09/30/11 LABORATORYSUPPLIES 1,808.15 1,808.15
2030836 10/26/11 13405 HAMANN CONSTRUCTION Ref002417578 10/25/11 UB Refund Cst #0000173962 1,620.33 1,620.33
2030634 10/12/11 13365 HANCOCKCHOI Ref002417222 10/11/11 UB Refund Cst #0000171553 46.20 46.20
2030776 10/19/11 02629 HANSON AGGREGATES INC 1205862 09/27/11 CRUSHEDAGGREGATES 121.72 121.72
2030586 10/05/11 04472 HECTOR 1MARES-COSSIO 76 09/27/11 CONSULTANT SERVICES (JUNE 2011)3,600.00
77 09/27/11 CONSULTANT SERVICES (JULY 2011)3,600.00 7,200.00
2030877 10/26/11 00062 HELIX WATER DISTRICT 174639861011 10/11111 WATER BILl/RUSSELL sa (8/4/11-10/6/11)40.10
17854001xxxx 10/11111 WATER BILl/AVOCADO BLVD (8/4/11-10/6/11)40.10 80.20
2030587 10/05/11 08610 HENRY BROS ELECTRONICS INC 13030111 09/15/11 CAMERA REPLACEMENT 4,908.65 4,908.65
2030635 10/12/11 13369 HENSEL PHELPS CONSTRUCTION CO Ref002417226 10/11/11 US Refund Cst #0000173427 1,848.64 1,848.64
2030777 10/19/11 11874 HERNDON SOLUTIONS GROUP 1237 09/26/11 REGULATORY COMPLIANCE 4,050.00 4,050.00
2030588 10/05/11 06843 HI-TECH AIR CONDITIONING 25359 09/13/11 SERVICE CALL 392.00 392.00
2030690 10/12/11 06843 HI-TECH AIR CONDITIONING 25369 09/22/11 AC SERVICE 353.38 353.38
2030778 10/19/11 06843 HI-TECH AIR CONDITIONING 24889 08/31/11 AC MAINTENANCE 668.21
24893 08/31/11 AC MAINTENANCE 650.00
25368 09/19/11 AC SERVICE 359.38 1,677.59
2030878 10/26/11 06843 HI-TECH AIR CONDITIONING 24894 09/30/11 AC MAINTENANCE (SEPT 2011)650.00 650.00
Page 8 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN OATES 10/5/2011 TO 10f26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030589 10/05/11 09710 HOMESTEAD TREE SERVICE INC 1215 09/14/11 TREE REMOVAL 700.00
1216 09/14/11 TRIM PALM TREES 235.00 935.00
2030779 10/19/11 12335 HP ENTERPRISE SERVICES LLC U2843317 09/12/11 CREDITCARD SERVICES 2,388.40 2,388.40
2030590 10/05/11 08969 INFOSEND INC 52377 08/21/01 BILL PRINTING SERVICES (JULY 2011)4,063.00
53013 09/02/11 BILL PRINTING SERVICES (AUG 2011)3,892.80 7,955,80
2030780 10/19/11 08969 INFOSEND INC 53619 09/30/11 POSTAGE 13,846.07
53618 09/30/11 BILL PRINTING SERVICES (SEPT 2011)5,441.10
53823 09/30/11 PROGRAMMING SERVICES 4,800.00
53703 10/04/11 BILL PRINTING SERVICES (SEPT 2011)3,950.40 28,037.57
2030879 10/26/11 02372 INTERIOR PLANT SERVICE INC 39491 09/30/11 PLANT SERVICES (SEPT 2011)186.00 186.00
2030636 10/12/11 13375 JACKIE T INC Ref002417233 10/11/11 UB Refund Cst #0000176629 49.86 49.86
2030880 10/26/11 03077 JANI-KING OF CALIFORNIA INC SD009110193 09/01/11 JANITORIAL SERVICES (SEPT 2011)1,101.10 1,101.10
2030691 10/12/11 10563 JCI JONES CHEMICALS INC 523372 CREDIT MEMO (3,000.00)
523328 09/21/11 CHLORINE TREATMENT PLANT 4,837.80 1,837.80
2030692 10/12/11 03345 JENKINS,WILLIAM L 003253 10/06/11 TRAVEL EXPENSE (10/2/11-10/4/11)811.66 811.66
2030693 10/12/11 03172 JONES &STOKES ASSOCIATES INC 0082008 09/17/11 CONSULTING SERVICES (7/30/11-8/26/11)17,485.48
0082007 09/17/11 CONSULTING SERVICS (7/30/11-8/26/11)807.50 18,292.98
2030637 10/12/11 13364 JOSE LUIS ALVARADO Ref002417221 10/11/11 US Refund Cst #0000170114 51.51 51.51
2030591 10/05/11 02449 JOSEPH G POLLARD CO INC 13088281N 09/15/11 TRUCK TOOLS 228.14 228.14
2030694 10/12/11 02449 JOSEPH G POLLARD CO INC 13089831N 09/19/11 TRUCK TOOLS 57.24 57.24
2030837 10/26/11 13399 JUAN PLASCENCIA Ref002417571 10/25/11 US Refund Cst #0000093000 28.37 28.37
2030638 10/12/11 13362 JULIANNE HURT Ref002417219 10/11/11 UB Refund Cst#0000170019 63.88 63.88
2030838 10/26/11 13402 KELLY SNODGRASS Ref002417574 10/25/11 UB Refund Cst #0000131475 78.55 78.55
2030781 10/19/11 05840 KIRK PAVING INC 4909 09/23/11 PAVING SERVICES 9,048,00
4910 09/23/11 PAVING SERVICES 2,814.00 11,862.00
2030881 10/26/11 04996 KNOX ATTORNEY SERVICE INC 646109 09/30/11 DELIVERY SERVICES (8/30/11-9/23/11)295.00 295.00
2030592 10/05/11 06497 LAKESIDE LAND COMPANY 254798 09/14/11 LANDFILL 229.80 229.80
2030782 10/19/11 06497 LAKESIDE LAND COMPANY 255229 09/27/11 LANDFILL 256.20 256.20
2030639 10/12/11 13371 LARRY MCKENZIE Ref002417229 10/11/11 US Refund Cst #0000175156 57.66 57.66
Page 9 of 19
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/5/2011 TO 10/26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030839 10126111 13078 LEVY HOME TEAM Ref002417576 10125111 UB Refund Cst #0000155374 54.58 54.58
2030783 10/19111 06263 LINTNER,JERRY 003266 10113111 SAFETY BOOTS 137.00 137.00
2030640 10112111 12804 LITTON LOAN SERVICING RefOO2417228 10/11111 UB Refund Cst#0000174534 70.52 70.52
2030695 10/12111 05220 LQG1CALlS INTEGRATION SOLUTION IN066601 09122111 CORE SWITCH SUPPORT 2,240.00 2,240.00
2030784 10/19111 05220 LOGICALIS INTEGRATION SOLUTION S135977 09130111 SUPPORT SERVICES 4,372.50
S135742 09128111 CISCO SWITCHES 3,750.00
IN068850 09128111 FIBER MODULES 2,763.29
IN068853 09128111 FIBER MODULES 1,403.02
5135881 09130/11 2010 EXCHANGE UPGRADE {9128111-9/29111}525.00
IN068494 09/19111 CORE SWITCH 65,123.32 77,937.13
2030882 10126/11 03019 LOPEZ,JOSE 70100911 10112111 MILEAGE REIMBURSEMENT 13.32 13.32
2030641 10/12111 13351 LUKE SCHRADER Ref002417208 10111/11 UB Refund Cst #0000002240 97.54 97.54
2030642 10/12/11 13380 MARIA OLEA Ref002417238 10/11111 US Refund Cst #0000182317 9.99 9.99
2030840 10/26/11 13397 MARION FOUaUETTE Ref002417569 10/25/11 US Refund Cst #0000066856 55.83 55.83
2030841 10/26/11 13404 MARISACOLLINS Ref002417577 10/25/11 US Refund Cst #0000159178 75.00 75.00
2030883 10/26/11 02902 MARSTON+MARSTONINC 2011101 10/03/11 COMMUNITY OUTREACH (SEPT 2011)2,607.50
2011102 10/03/11 DESAL (SEPT 2011)1,947.50 4,555,00
2030696 10/12/11 05329 MASTER METER INC 01906851N 09/19/11 INVENTORY 476,237.02 476,237.02
2030785 10/19/11 05329 MASTER METER INC 01910631N 09/28/11 INVENTORY 338,011.75 338,011.75
2030593 10/05/11 02882 MAYER REPROGRAPHICS INC 00667481N 09/13111 REPROGRAPHICS SVCS (THRU 9J13/11)1,794.37 1,794.37
2030786 10119/11 02882 MAYER REPROGRAPHICS INC 00671071N 09127/11 SERVICESON 9/27J11 55.72 55.72
2030594 10105/11 01183 MCMASTER-CARR SUPPLY CO 95154014 09/12111 UNISTRUT PARTS 853.98 853.98
2030787 10119/11 01183 MCMASTER·CARR SUPPLY CO 96441451 09126/11 PIPING PARTS 330.41 330.41
2030884 10126111 03169 MENDEZ-SCHOMER,ALICIA 15531011 10124/11 TRAVEL EXPENSES{10/17111-10/20J11}422.07 422.07
2030697 10/12111 03268 MERCHANT,MARCIANO 003245 10105111 SAFETY SHOES 126.05 126.05
2030788 10/19111 13390 MICHAEL CHRISTENSEN 003270 10/18111 IT HARDWARE 237.04 237.04
2030789 10/19/11 09581 MICHAEL R WELCH PHD PE 7139 10/10/11 PLANNING SERVICES (APR 2011-9130/11)2,025.00 2,025.00
Page 10 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/5/2011 TO 10f26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030595 10/05/11 00237 MISSION JANITORIAL &ABRASIVE 27535200 09/12/11 JANITORIAL SUPPLIES 1,960.86 1,960.86
2030643 10/12111 13385 MONICA URIAS Ref002417243 10/11/11 US Refund Cst #0000183242 5.11 5.11
2030596 10/05/11 02371 MOODY'S INVESTORS SERVICE C1810815000 09/20/11 96 COPS ANNUAL FEE (SEPT 2011-AUG 2012)5,500.00 5,500.00
2030597 10105f11 07166 MOSS,PATTY 003234 10/03/11 SAFETYSHOES 87.26 87.26
2030842 10/26/11 13398 MYRLlNDA RANCHES Ref002417570 10/25/11 US Refund Cst #0000088573 31.12 31.12
2030598 10105/11 13347 MYRON NIELSON 003227 09/28/11 LANDSCAPE PROGRAM 1,090.00 1,090.00
2030698 10/12f11 03523 NATIONAL DEFERRED COMPENSATION Ben2417167 10/13/11 Bf-WEEKLY DEFERRED COMP PLAN 10,033.08 10,033.08
2030885 10/26/11 03523 NATIONAL DEFERRED COMPENSATION Ben2417542 10/27/11 BI-WEEKLY DEFERRED COMP PLAN 10,138.08 10,138.08
2030886 10/26/11 09884 NATIONAL SAFETY COMPLIANCE INC 51059 09/30f11 RANDOM DRUG TESTING (SEPT 2011)451.14 451.14
2030887 10/26/11 00745 NEWARK 21209731 10/06/11 RELAY 1POLE 338.16 338.16
2030790 10/19/11 08531 NEWEST CONSTRUCTION 01 09/26/11 RWCWR UPGRADE (THRU 9/30/11)135,673,20 135,673.20
2030791 10/19/11 02848 NEWMAN,PATRICK 003262 10/11/11 SAFETY BOOTS 37,70 37.70
2030792 10/19/11 03467 NIAGARA CONSERVATION CORP INVOOO09471 10/03/11 SHOWERHEADS 1,997.45 1,997.45
2030888 10/26/11 03467 NIAGARA CONSERVATION CORP INVOO010596 10/07/11 SHOWERHEADS 1,106.86 1,106.86
2030843 10/26/11 13396 NNP-SAN MIGUEL RANCH Ref002417568 10/25/11 UB Refund Cst#0000061850 850.00 850.00
2030699 10/12/11 03215 O'DONNELL,MICHAEL 003247 09/27/11 SEMINAR 290.00 290.00
2030599 10/05/11 00510 OFFICE DEPOT INC 580415763001 CREDIT MEMO (19.94)
578867873001 09/12/11 OFFICE SUPPLIES 218.52
579041326001 09/14/11 OFFICE SUPPLIES 118.05
578468702001 09/09/11 OFFICE SUPPLIES 107.37
578469881001 09/09/11 OFFICE SUPPLIES 35.32 459.32
2030700 10/12/11 00510 OFFICE DEPOT INC 580198932001 09/22/11 SUPPLIES 50.76
579943666001 09/22/11 OFFICE SUPPLIES 17.19 67.95
2030793 10f19/11 00510 OFFICE DEPOT INC 580872187001 09f28/11 OFFICE SUPPLIES 358.88
580415764001 09/23/11 SUPPLIES 39.33 398.21
2030889 10/26/11 00510 OFFICE DEPOT INC 581133275001 09f30/11 LOGlTECH HEADSETS 161.59
581402004001 1Of03/11 OFFICE SUPPLIES 92.43
581401761001 10/03/11 OFFICE SUPPLIES 16.47 270.49
2030844 10/26/11 13415 OLGA MOSCOSO Ref002417588 10/25/11 US Refund Cst #0000183317 112.54 112.54
Page 11 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/5/2011 TO 10/26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030794 10/19/11 03149 ON SITE LASER LLC 46016 09120/11 PRINTER SERVICES 69.00 69.00
2030690 10/26111 13115 ONESOURCE DISTRIBUTORS LLC S3625704001 09/30/11 3TIER TERMINALS 752.04
S3628343001 10105/11 TERMINAL JUMPERS 90.04 842.08
2030691 10/26111 07496 ORTEGA-CARRILLO,ALMA PATRICIA 003272 10/19/11 TUITION 399.80 399.80
2030600 10/05111 02334 OTAY LANDFILL 011329 09/15111 WASTE DISPOSAL 75.84 75.84
2030701 10/12111 03101 OTAY WATER DISTRICT Ben2417169 10/13111 BI·WEEKLY PAYROLL DEDUCTION 700.00 700.00
2030892 10/26111 03101 OTAY WATER DISTRICT Ben2417544 10/27/11 BI-WEEKLY PAYROLL DEDUCTION 693.00 693.00
2030795 10/19/11 04463 PACIFIC GREEN LANDSCAPE INC 00609731N 09129/11 LANDSCAPE 2,495.00 2,495.00
2030644 10/12111 13356 PACIFIC ONE LAND HOLDINGS LP Ref002417213 10/11111 UB Refund Cst #0000141514 658.73 658.73
2030702 10/12111 01002 PACIFIC PIPELINE SUPPLY 148697 09/20/11 INVENTORY 12,120.52
148066 09/20/11 APCO CHECKVALVE 6,543,04 18,663.56
2030796 10/19/11 03017 PACIFIC SAFETY COUNCIL 68476 09/22111 SAFETY TRAINING 149.00 149.00
2030645 10/12/11 13381 PATRICIA MCKELVEY Ref002417239 10/11/11 UB Refund Cst #0000182575 97,52 97.52
2030646 10/12/11 13358 PATRIOT GENERAL Ref002417215 10/11/11 UB Refund Cst #0000156227 93,22 93.22
2030693 10/26/11 05497 PAYPAL INC 13656584 09/30/11 PHONE PAYMENT SERVICES (SEPT 2011)54.10 54.10
2030703 10/12/11 03790 PENHALL COMPANY 26918 09/20/11 SAW CUTTING SERVICES 200.00 200.00
2030647 10/12111 13386 PERRY &SHAWINC Ref002417244 10/11/11 UB Refund Cst #0000183379 1,563.46 1,563.46
2030797 10/19/11 03457 PERSONAL TOUCH WEST 22211 08130111 PLASTIC BAGS (OUTREACH)640.94 640.94
2030798 10/19/11 00137 PETTY CASH CUSTODIAN 003271 10/16111 PETTY CASH 512.68 512.68
2030845 10/26/11 13410 PGIINVESTMENTS lLC RefOO2417583 10/25/11 UB Refund Cst #0000161693 26.40 26.40
2030704 10/12111 12188 PHOTO GEODETIC CORPORATION 4255 09120/11 AERIAL MAPPING 3,450.00 3,450.00
2030601 10/05111 13122 PINNACLE BUSINESS SOLUTIONS 33511 08122111 REPLACEMENT BATIERIES 14,905.61 14,905.61
2030705 10/12111 13122 PINNACLE BUSINESS SOLUTIONS 33564 09122111 MEMORY UPGRADE 921.88 921.88
2030706 10/12111 01715 PORRAS,PEDRO 003254 10111111 TRAVEL ADVANCEMENT (10/15/11-10/19/11)282.00 282.00
2030894 10126111 01715 PORRAS,PEDRO 003279 10/24/11 TRAVEL EXPENSES (10/15/11-10119111)2,189.92 2,189.92
Page 12 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/5/2011 TO 10J2612011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030895 10/26/11 05499 PRAXAIR DISTRIBUTION INC 40135335 07/05/11 WELD SUPPLIES 3,455.93
40135334 07/05/11 WELD SUPPLIES 3,162.74
40161215 07/11/11 WELD SUPPLIES 23.71
40229477 07/20/11 WELDING SUPPLIES 13.33 6,655.71
2030799 10/19/11 10819 PREDICTIVE MAINTENANCE 1596 09/29/11 VIBRATION ANALYIS PROGRAM 6,360.00 6,360.00
2030800 10/19/11 07346 PRIME ELECTRICAL SERVICES INC 9734 09/23/11 CAMERAWIRING 5,000.00 5,000.00
2030896 10/26/11 13059 PRIORITY BUILDING SERVICES 27223 09/01/11 JANITORIAL SERVICES (SEPT 2011)3,504.00 3,504.00
2030602 10/05/11 06641 PRUDENTIAL OVERALL SUPPLY 30208337 09/15/11 UNIFORMS,TOWELS &MATS 363.15
30208336 09/15/11 UNIFORMS,TOWELS &MATS 197.34
30208338 09115/11 UNIFORMS,TOWELS &MATS 168.70
30207713 09/13/11 UNIFORMS,TOWELS &MATS 111.33
30208339 09/15/11 UNIFORMS,TOWELS &MATS 58.50
30207712 09113/11 UNIFORMS,TOWELS &MATS 50,20 949.22
2030707 10/12/11 06641 PRUDENTIAL OVERALL SUPPLY 30209855 09/22/11 UNIFORMS,TOWELS &MATS 355.15
30209854 09/22/11 UNIFORMS,TOWELS &MATS 197.34
30209856 09/22/11 UNIFORMS,TOWELS &MATS 168.70
30209218 09/20/11 UNIFORMS,TOWELS &MATS 111.33
30209857 09/22/11 UNIFORMS,TOWELS &MATS 58.50 891.02
2030801 10/19/11 06641 PRUDENTIAL OVERALL SUPPLY 30211337 09/29/11 UNIFORMS,TOWELS &MATS 363.15
30211336 09/29/11 UNIFORMS,TOWELS &MATS 197.34
30211338 09/29/11 UNIFORMS,TOWELS &MATS 168.70
30211339 09/29/11 UNIFORMS,TOWELS &MATS 82.88
30209217 09/20/11 UNIFORMS,TOWELS &MATS 52.20 864.27
2030897 10/26/11 06641 PRUDENTIAL OVERALL SUPPLY 30212854 10/06/11 UNIFORMS,TOWELS &MATS 355.15
30212852 10/06/11 UNIFORMS,TOWELS &MATS 197.34
30212855 10/06/11 UNIFORMS,TOWELS &MATS 168.70
30212211 10/04/11 UNIFORMS,TOWELS &MATS 111.33
30210717 09/27/11 UNIFORMS,TOWELS &MATS 111.33
30212210 10/04/11 UNIFORMS,TOWELS &MATS 66.14
30212857 10/06/11 UNIFORMS,TOWELS &MATS 60.94
30210716 09/27/11 UNIFORMS,TOWELS &MATS 54.20 1,125.13
2030603 10/05/11 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2416911 09/29/11 BI-WEEKLY PERS CONTRIBUTION 155,265.92 155,265.92
2030802 10/19/11 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2417163 10/13/11 BI-WEEKLY PERS CONTRIBUTION 154,609.66 154,609.66
2030604 10/05/11 13252 PUENTES LATINOS 003241 09/22/11 GENERAL CONSULTING 2,000.00 2,000.00
2030803 10/19/11 13252 PUENTES LATINOS 003241 09/22/11 GENERAL CONSULTING 2,000.00 2,000.00
2030708 10/12/11 01342 R J SAFETY SUPPLY CO INC 29250900 09/21/11 GAS CALIBRATION 174.12 174.12
Page 13 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS2030558 THROUGH 2030928
RUN DATES10/5/2011 TO 10/26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030804 10f19f11 01342 R J SAfETYSUPPLY CO INC 29310200 09f29/11 SAFETY SUPPLIES 846.65
29275300 09/23/11 HIP PAC REPAIR 275.57
29250901 09f28/11 GAS CALIBRATION 93.74 1,215.96
2030846 10/26/11 13407 RANCHO BUENA VISTA REAL ESTATE Ref002417580 10f25/11 UB Refund Cst #0000176138 75.00 75.00
2030709 10/12/11 00021 RCP BLOCK &BRICK INC 4349272 08/31/11 CONCRETE 1,045.40 1,045.40
2030605 10f05/11 01722 ROO EQUIPMENT CO P61449 09f13/11 ROO EQUIPMENT CO.665.58 665.58
2030805 10f19/11 01722 ROO EQUIPMENT CO W1052B 09f28/11 SWEEPER SPRINKLER KIT 1,620.56 1,620.56
2030710 10/12/11 13350 RICHARD E GEORGE 003248 10f10/11 CUSTOMER REFUND 786.63 786.63
2030648 10f12/11 13376 RIVERHAWK PROP MGMT Ref002417234 10f11/11 US Refund Cst #0000176740 23.11 23.11
2030847 10/26/11 13395 ROBERT DENUNZIO Ref002417567 10/25/11 UB Refund Cst #0000021909 150.00 150,00
2030848 10/26/11 13401 ROBERTJARDESTEN Ref002417573 10f25/11 US Refund Cst #0000094769 92.66 92.66
2030898 10/26f11 01700 RUBALCAVA,GILBERT 003277 10/20/11 SAFETY BOOTS 150.00 150.00
2030606 10/05/11 00362 RYAN HERCO PRODUCTS CORP 7199754 09f13/11 CPVC VALVES 673.23 673.23
2030711 10/12f11 00362 RYAN HERCO PRODUCTS CORP 7193538 09/02f11 CPVC FITTINGS 177.69 177.69
2030806 10/19/11 00362 RYAN HERCO PRODUCTS CORP 7197603 09/07/11 PVC FITTINGS 388.87
7197970 09/15/11 PVC FITTINGS 6.46 395.33
2030899 10126/11 00362 RYAN HERCO PRODUCTS CORP 7217551 10/06/11 GAUGESW/ISOLATORS 1,006.54 1,006.54
2030807 10/19/11 10930 SAGE DESIGNS INC 1109430 09/23/11 FIRETIDE RADIOS 13,735.42 13,735.42
2030649 10/12/11 13355 SAM ASMAR Ref002417212 10/11/11 UB Refund Cst#0000081481 71.84 71.84
2030712 10/12/11 11799 SAN DIEGO CO SHERIFF'S OFFICE Ben2417183 10/13/11 BI-WEEKLY PAYROLL DEDUCTION 370.84 370.84
2030900 10/26/11 11799 SAN DIEGO CO SHERIFF'S OFFICE Ben2417558 10127/11 BI-WEEKLY PAYROLL DEDUCTION 370.84 370.84
2030713 10/12/11 11596 SAN DIEGO CONSTRUCTION WELDING 8099 09/22/11 WELDING AT PIPE GALLEY 1,980.00 1,980.00
2030901 10f26/11 11596 SAN DIEGO CONSTRUCTION WELDING 8001 10/08/11 WELDING 4,335.00
8111 10/04/11 WELDING 680.00
8112 1Of04/11 WELDING 680.00
8120 1Of06/11 WELDING 680.00 6,375.00
2030902 10f26/11 09991 SAN DIEGO COUNTY SL11012 10f19/11 SPLASH LAB 550.00 550.00
2030808 10/19/11 02680 SAN DIEGO COUNTY TREASURER 003260 10f14/11 SEMINAR REGISTRATION FEE 25.00 25.00
Page 14 of 19
OTAYWATERDISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/5/2011 TO 10/26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030607 10f05/11 00247 SAN DIEGO DAILY TRANSCRIPT 269254 09f12/11 BID ADVERTISEMENT 76.05 76.05
2030714 10/12f11 00247 SAN DIEGO DAILY TRANSCRIPT 270651 09f21/11 BID ADVERTISEMENT 142.70 142,70
2030903 10/26/11 00247 SAN DIEGO DAILY TRANSCRIPT 272932 1Of05/11 BID ADVERTISEMENT 68.30 68.30
2030608 10/05/11 00121 SAN DIEGO GAS&ELECTRIC 003232 09/28/11 UTILITY EXPENSES (8f25/11-9/28/11)55,852.47
003231 09/26/11 UTILITY EXPENSES (8/24/11-9/26/11)32,902.53
003229 09/20/11 UTILITY EXPENSES (8/18/11-9/20/11)26,419.10
003228 09/02/11 UTILITY EXPENSES (8/4111-912/11)1,073.77
003230 09/23/11 UTILITY EXPENSES (8/24/11-9123/11)625.03 116,872.90
2030809 10/19/11 00121 SAN DIEGO GAS&ELECTRIC 003256 10/05/11 UTILITY EXPENSES 73,035.17
003257 09/26/11 UTILITY EXPENSES 27,953.69
003258 09/28/11 UTILITY EXPENSES 880.03 101,868.89
2030609 10/05/11 03809 SAN DIEGO NEIGHBORHOOD 02566661001 08/05/11 ADVERTISING SERVICES 32.50 32.50
2030650 10112/11 13384 SAN DIEGO REALTY INC Ref002417242 10/11111 UB Refund Cst #0000183074 56.83 56.83
2030610 10/05/11 12080 SAN DIEGO UNION-TRIBUNE LLC 0010552618 09/12111 BID ADVERTISEMENT 304.40 304.40
2030715 10/12/11 12080 SAN DIEGO UNION·TRIBUNE LLC 0010555588 09/20/11 BID ADVERTISEMENT 490,00 490.00
2030904 10/26/11 12080 SAN DIEGO UNION-TRIBUNE LLC 0010560339 10/04/11 BID ADVERTISEMENT 294.80 294.80
2030905 10/26/11 03590 SAN JOSE,DELIA 003283 10/24/11 COMPUTER LOAN 919.98 919.98
2030611 10/05/11 10925 SAN MIGUEL CONSOLIDATED FIRE 003239 09/27/11 SPONSORSHIP 1,000.00 1,000.00
2030810 10/19/11 07676 SAN MIGUEL FIRE PROTECTION 003250 09/23/11 TEMPORARY LABOR (AUG 2011)6,685.25 6,685.25
2030811 10/19/11 12333 SCHINDLER ELEVATOR CORPORATION 8102987091 09/01/11 ELEVATORMAINTENANCE (SEPT 2011)449.01 449.01
2030812 10/19/11 07288 SCHMIDT FIRE PROTECTION CO INC 78821 09/22/11 SYSTEM MA!NTENANCE 256.00 256.00
2030651 10/12/11 13357 SCOTT CLINGAN Ref002417214 10/11/11 UB Refund Cst#0000146481 32.01 32.01
2030652 10/12/11 13378 SO COASTLINE THREE LP Ref002417236 10/11/11 UB Refund Cst #0000177227 16.09 16.09
2030612 10/05/11 12904 SEPULVEDA CONSTRUCTION INC 09/08/11 PS UPGRADES(PERIOD ENDING 8131111)53,877.28 53,877.28
2030906 10/26/11 12904 SEPULVEDA CONSTRUCTION INC 2 10f01/11 PUMP STATION UPGRADES (THRU 9/30/11)100,987.02 100,987.02
2030613 10/05/11 01651 SHARP REES-STEALY MEDICAL CTRS 240 09/17/11 RANDOM DRUG TESTING 15.00 15.00
2030907 10/26/11 01651 SHARP REES-STEALY MEDICAL CTRS 2411150669 10/15/11 PRE-PLACEMENT PHYSICAL 88.00 88.00
Page 15 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 10/512011 TO 10/2612011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030849 10126111 13413 SHEA HOMES LP Ref002417586 10125111 UB Refund Cst 110000182976 70.34 70.34
2030653 10/12111 13368 SHELLY AMOS Ref002417225 10/11/11 UB Refund Cst #0000172496 10.80 10.80
2030813 10/19/11 11516 SIEMENS INDUSTRY INC 900290007 07129/11 PCU BOARDS 4,829.28 4,829.28
2030716 10/12111 05627 SIGNA DIGITAL SOLUTIONS INC ARS53916 04/14/11 COPIER PARTS 94.93 94.93
2030908 10126111 13327 SILVA SILVA INTERNATIONAL 1109 10/10111 CONSULTING SERVICES (SEPT 2011)4,000.00 4,000.00
2030717 10112111 12281 SIR SPEEDY PRINTING 46533 09/14/11 BUSINESS CARD 93.42 93.42
2030909 10/26111 12281 SIR SPEEDY PRINTING 46646 09/30111 BUSINESS CARDS 38.63 38.63
2030614 10105111 03592 SOFTCHOICECORPORATION 2801040 09/09/11 BLACKBERRY SUPPORT 2,039.00 2,039.00
2030910 10/26111 03103 SOUTHCOAST HEATING &C46879 09/13111 AC MAINTENANCE(SEPT 2011)1,068.00 1,068.00
2030615 10/05/11 03414 SOUTHERN CALIFORNIA 0914110WD 09/14/11 TRANSCRIPTION SERVICES 40.00 40.00
2030718 10/12/11 03760 SPANKY'S PORTABLE SERVICES INC 891879 09/15/11 PORTABLE TOILET RENTAL(9/15/11-10/12111)98.15 98.15
2030814 10/19/11 03760 SPANKY'S PORTABLE SERVICES INC 892621 09/26/11 PORTABLE TOILET RENTAl(9/24/11-10/21/11)79.96
892551 09/23/11 PORTABLE TOILET RENTAL(9/23/11·10/20/11)79.96
892550 09/23/11 PORTABLE TOILET RENTAL(9/23/11-10/20/11)79.96
892549 09/23/11 PORTABLE TOILET RENTAL(9/23/11-10/20/11)79.96 319.84
2030911 10/26/11 03760 SPANKY'S PORTABLE SERVICES INC 894018 10/06/11 PORTABLE TOILET RENTAL (10/5/11-11/1/11)79.96 79.96
2030719 10/12/11 03516 SPECIAL DISTRICT RISK 37289 09/12/11 WORKERS'COMPENSATION (10/1/11-12/31/11)50,868.00 50,868.00
2030616 10/05/11 01717 SPRING VALLEY CHAMBER OF 34599 09/29/11 SPONSORSHIP 400.00 400.00
2030912 10126111 06510 SPRINT NEXTEL 901500243061 10/12111 WIRELESS SERVICES (919/11-10/8/11)3,521.36 3,521.36
2030654 10/12111 13387 STACY MILLER Ref002417245 10/11/11 UB Refund Cst#0000183412 37.09 37.09
2030815 10/19/11 02354 STANDARD ELECTRONICS 15742 08108111 ALARM MONITORING 1,472.50
15849 09/06/11 ALARM MONITORING 1,472.50 2,945.00
2030720 10/12111 06281 STATE DISBURSEMENTUNIT Ben2417187 10113111 BI-WEEKLY PAYROLLDEDUCTION 415.38 415.38
2030721 10112111 06299 STATE DISBURSEMENTUNIT Ben2417173 10/13111 Bl-WEEKLY PAYROLL DEDUCTION 237.69 237.69
2030722 10/12111 06303 STATE DISBURSEMENT UNIT Ben2417181 10/13111 BI-WEEKLY PAYROLL DEDUCTION 802.15 802.15
2030913 10126111 06281 STATE DISBURSEMENT UNIT Ben2417562 10127/11 Bl-WEEKLY PAYROLL DEDUCTION 415.38 415.38
2030914 10126111 06299 STATE DISBURSEMENT UNIT Ben2417548 10127/11 BI-WEEKLY PAYROLL DEDUCTION 237.69 237.69
Page 16of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN OATES 10/5/2011 TO 10/26/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030915 10/26f11 06303 STATE DISBURSEMENT UNIT Ben2417556 10/27/11 Bl-WEEKLY PAYROLL DEDUCTION 802.15 802.15
2030723 10/12111 02261 STATE STREET BANK&TRUSTCO Ben2417165 10/13/11 Bl-WEEKLY DEFERRED COMP PLAN 5,810.78 5,810.78
2030916 10/26/11 02261 STATE STREET BANK&TRUSTCO Ben2417540 10f27/11 BI-WEEKLY DEFERRED COMP PLAN 4,714.63 4,714.63
2030617 10/05/11 11749 STEPHEN V MCCUE 003243 09f23/11 LEGAL SERVICES (SEPT 2011)35,406.64 35,406,64
2030816 10/19/11 03738 STEVEN ENTERPRISES INC 02761871N 09f23/11 INK CARTRIDGES 362.04 362.04
2030817 10f19/11 12809 STUTZARTIANO SHINOFF 85304 09f26/11 LEGAL SERVICES (AUG 2011)43,429.33
85127 09f08/11 LEGAL SERVICES (JULY 2011)34,712.87 78,142,20
2030724 10/12f11 12223 SUNBELT RENTALS INC 31397130001 09f20/11 TOWABLE MANLIFT 1,865.74 1,865.74
2030618 10/05/11 10339 SUPREME OIL COMPANY 364445 09f09/11 UNLEADED FUEL 20,536.87
364446 09f09/11 DIESEL FUEL 10,098.98 30,635.85
2030850 10/26f11 13406 TEAM TOWNSON INC Ref002417579 10f25/11 UB Refund Cst #0000174577 26.40 26.40
2030725 10/12111 06847 THIRD AVENUE VILLAGE ASSN 003236 09f29/11 APPLICATION FEE 75.00 75.00
2030917 10f26/11 05009 THURGOOD MARSHALL ELEM SCHOOL 003281 10f25/11 SPLASH LAB 100.00 100.00
2030655 10/12111 13361 TINA GUEST Ref002417218 10f11/11 UB Refund Cst #0000169843 17.48 17.48
2030818 10f19/11 03074 TRAFFIC CONTROL SERVICE INC 1043417 09f30/11 EQUIPMENT 1,672.50 1,672.50
2030918 10/26/11 00427 UNDERGROUND SERVICE ALERT OF 920110469 10f01/11 UNDERGROUND ALERTS (SEPT 2011)277.50 277.50
2030726 10/12/11 13121 UNDERGROUND SOLUTIONS INC 2759 09f22/11 POTHOLING SERVICE 10,600.00 10,600.00
2030727 10/12/11 05417 UNITED STATES DEPARTMENT Ben2417185 10/13/11 BI-WEEKLY PAYROLL DEDUCTION 100.00 100.00
2030919 10/26f11 05417 UNITED STATES DEPARTMENT Ben2417560 10f27/11 BI-WEEKLY PAYROLL DEDUCTION 100.00 100.00
2030619 10/05f11 00350 UNITED STATES POSTAL SERVICE 104339511011 10f03/11 REIMBURSE POSTAGE MACHINE 2,100.00 2,100.00
2030920 10f26/11 07662 UNITEDHEALTHCARE SPECIALTY 112990000091 10f26/11 AD&D &SUPP LIFE INS (NOV 2011)5,619.29 5,619.29
2030921 10/26/11 03212 UNUM LIFE INSURANCE Ben2417536 10f27/11 MONTHLY CONTRIBUTION TO LTO 5,829.50 5,829.50
2030620 10/05/11 07674 US BANK CORPORATE PAYMENT 003244 09/22/11 CAL CARD EXPENSES 90.00 90.00
2030819 10/19f11 07674 US BANK CORPORATE PAYMENT 003269 09/22111 CAL CARD EXPENSES 22,308.43 22,308.43
2030922 10/26f11 07674 US BANK CORPORATE PAYMENT a003274 09/22f11 CAL CARD EXPENSES 4,181.13
003280 09/22f11 CAL CARO EXPENSES 601.44
Page 17 of 19
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 101512011 TO 10126/2011
Check#Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
003273 09f22f11 CAL CARD EXPENSES 275.46 5,058.03
2030621 10f05f11 04345 us CONCRETE PRECAST GROUP 01497541N 09f14/11 VAULT 4,728.07 4,728.07
2030820 10/19f11 04345 US CONCRETE PRECAST GROUP 01499661N 09f27/11 INVENTORY 5,151.18 5,151.18
2030923 10f26f11 06829 US SECURITY ASSOCIATES INC 406970 09f30/11 SECURITY SERVICES 461.20 461.20
2030821 10/19f11 13048 V &A CONSULTING ENGINEERS 12966 09f30/11 CORROSION SERVICES (8f27/11-9f30/11)3,051.00 3,051.00
2030656 10/12f11 13359 VANESSA LEE Ref002417216 10f11111 UB Refund Cst #0000161232 10.41 10.41
2030728 10/12111 01095 VANTAGEPOINT TRANSFER AGENTS Ben2417171 10f13/11 BI-WEEKLY DEFERRED COMP PLAN 8,042.28 8,042.28
2030729 10/12f11 06414 VANTAGEPOINT TRANSFER AGENTS Ben2417175 10f13/11 BI-WEEKLY 401A PLAN 829.00 829.00
2030924 10/26f11 01095 VANTAGEPOINT TRANSFER AGENTS Ben2417546 10f27/11 BI-WEEKLY DEFERRED COMP PLAN 8,226.67 8,226.67
2030925 10/26f11 06414 VANTAGEPOINT TRANSFER AGENTS Ben2417550 10f27/11 BI-WEEKLY 401A PLAN 829.00 829.00
2030730 10f12f11 03329 VERIZON WIRELESS 1015167805 09/21111 WIRELESS SERVICES (8/22/11~9/21/11)7,888.08 7,888.08
2030657 10/12111 13353 VICTOR RAMIREZ Ref002417210 10/11/11 US Refund Cst #0000075776 52.05 52.05
2030731 10/12111 10721 VIP RUBBER COMPANY INC 104018 09/21111 METER GASKETS 902.98 902.98
2030732 10/12f11 07595 WALTERS WHOLESALE ELECTRIC CO 856880500 09/21/11 CAN LIGHT LAMPS 135.77
324554301 08/02f11 ELECTICAL MATERIAL 94.82 230.59
2030822 10/19f11 07595 WALTERS WHOLESALE ELECTRIC CO 325084200 09/23/11 180WATT LAMPS 678.83 678.83
2030926 10/26f11 07595 WALTERS WHOLESALE ELECTRIC CO 325084201 10/03/11 180WATT LAMPS 377.13 377.13
2030823 10/19/11 07487 WARRIX,DENNY 003259 10/12111 COMPUTER LOAN 886.44 886.44
2030927 10/26/11 02700 WATER CONSERVATION GARDEN 47 10/01/11 GARDEN COSTS (QUARTERLY)25,300,00 25,300.00
2030824 10/19/11 01343 WE GOT YA PEST CONTROL 71389 09/26/11 BEE REMOVAL 115.00
71388 09/27f11 BEE REMOVAL 115.00
71149 09/23f11 BEE REMOVAL 115.00
70818 09/09f11 BEE REMOVAL 115.00
70816 09/09/11 BEE REMOVAL 115.00
70812 09/08/11 BEE REMOVAL 115.00
70683 08/31/11 BEE REMOVAL 115.00 805.00
2030928 10/26/11 01343 WE GOT YA PEST CONTROL 71313 09/30/11 BEE REMOVAL 115.00 115.00
2030658 10/12/11 13366 WESTERN DIRECT REALTY Ref002417223 10/11/11 US Refund Cst #0000171968 75.00 75.00
Page18of19
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2030558 THROUGH 2030928
RUN DATES 101512011 TO 10126/2011
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2030659 10/12/11 13379 WESTERN DIRECT REALTY Ref002417237 10/11/11 US Refund Cst #0000181826 75.00 75.00
2030733 10/12111 00125 WESTERN PUMP INC 0106330lN 09/19/11 NOZZLE REPLACEMENT 615.14
0106329lN 09/19/11 APCD TESTING 400.00 1,015.14
2030734 10/12/11 03692 WESTIN ENGINEERING INC 744 09/16111 PROJECT CONSULTING (7/30/11-8/26/11)6,990.00 6,990.00
2030660 10/12/11 13363 WILLIAM HOWARD Ref002417220 10/11/11 US Refund Cst #0000170049 40.07 40.07
2030622 10105/11 02230 WILLIAMSON,KELLI 14370911 09/28/11 TRAVEL EXPENSES (9/29/11-10/1111)233.22 233,22
2030825 10/19/11 03283 WILSON BOHANNAN PADLOCK CO 00828651N 09/29/11 PADLOCKS 12,243.06 12,243,06
2030826 10/19/11 03423 WINZER CORPORATION 4070066 09/29/11 SHOP SUPPLIES 294.37 294.37
GRAND TOTAL 2,871,940.02 2,871,940.02
Page 19 of 19